breached the halls of congress, four people died amid the riot and earlier this morning, congress completed the task of counting the electoral votes an affirming joe biden's victory. president trump suspended from twitterreleasing a statement saying that there will be an orderly transition on january 20th we'll bring you the full coverage of the impact of the events on the final 13 days of the trump presidency the future of the republican party, the economy, the markets, how to fix your money. it is thursday, january 7, 2021. "squawk box" begins right now. good morning, welcome to "squawk box" here on cnbc. i'm becky quick along with joe kernen and andrew ross sorkin and the sun is coming up this morning after an incredibly day

and night in washington, d.c the seat of democracy for the nation and the world those troubles not reflected on wall street at least not as far as the markets are concerned through all the incredible and terrible scenes from yesterday, the stock market continued to make new highs the dow closed higher by 438 points the s&p was up by 21 points. although the nasdaq did fall by about 78 points. and this morning those gains that we saw the markets make are continuing if you check it out, right now the dow futures are indicated up by 35, they had been indicated up by triple digits in the last hour but have given back some of the bigger gains s&p 500 futures still indicated up by close to 10 and nasdaq up by about 55. and then if you are watching the treasury market where yesterday we saw the ten year note yield above 1% for the first time since march, this morning you will see the ten year is yielding even higher, 1.044% big bank stocks all rising once again this morning after making

those gains yesterday, part of that of course being higher interest rates that is how the banks make money. and if you see higher interest rates, that is good news for them the other issue being if the democrats have control of the senate, the expectation is that you will see additional stimulus going out and that of course means more money for consumers and businesses jpmorgan chase up by about 1.1%. similar gain for bank of america. and you can see wells fargo up by about 1.65& and bitcoin trading near a new high you will see that at least right now bitcoin up by another 4.5%, a gain of about almost $1600 and then there is tesla, also hitting a new high with the market cap at this point above $725 billion tesla right now up by about 3%, again a market cap of above $725 billion as we continue to see those gains particularly among some of the clean energy stocks and of course this is the leader of the echlev stocks.

>> let's talk about some of the fallout from the breach at the u.s. capital and i want to get to catie beck at the capitol covering the aftermath of this riot good morning >> reporter: good morning. it is a much different scene here today than the chaos we saw erupting here yesterday. it is all quiet and all clear at the capitol. and there is an enormous police presence this morning on every corner surrounding the capitol state police, national guard, d.c. police, capitol police are now out in full force with a very quiet, very secure capitol. d.c. is still under curfew until 6:00 a.m. this morning that started at 6:00 p.m. last night given all of yesterday's events, the city looks ererily quiet. you can't travel more than a few blocks without hitting a barricade or police vehicle with

blue and red lights flashing and given what happened yesterday, the illegal activity at the capitol, police say their work is far from duone. there were 52 arrests made but they are still looking for a lot of the illegal actors that participated yesterday they have enlisted the help of the fbi who through their washington field office has released online form asking the public to help identify any of these people that they can see in t pictures and video from the siege. and so continuing with that, the d.c. mayor has also extended her public emergency another 15 days to try to cover inauguration day as well. and keep the security and the peace here in the nation's capitol. >> thanks, catie just an unbelievable past 24 hours. earlier this morning what has already become ceremonially

official at 3:41 a.m., vice president pence read the electoral vote count acknowledging that biden will be the next president eamon javers is joining us with more on that it was an awful day but it came to a conclusion just as the constitution said it must with mike pence the vice president of the united states officially announcing the results of the election, announcing his own defeat and the victory of joe biden. here is that moment. >> the announcement of the state of the vote by the president of the senate shall be deemed a sufficient declaration of the persons elected president and vice president of the united states, each for the term beginning on the 20th day of january 2021 >> just minutes after that, we had a statement online on twitter from the social media

director at the white house, the president of course has been banned from twitter for election misinformation and inciting violence so the president was not able to issue a tweet on his own dan scavino issuing it on his behalf, saying even though i totally disagree with the outcome of the election, and the facts bear me out, nevertheless there will be an orderly transition on january 20th we while it represents the end of the greatest first term, it is only our beginning of the fight to make america great again. so not an official c-- it is an official concession and now the president signaling that there will be an orderly transition. not clear where we go from here today. we saw a raft of resignations from the white house staff last night as staffers were appalled by the conduct of the president and what they saw in the streets

of the nation's capital yesterday. we can expect i think more of that there has been talk of where to go next. is there an impeachment up on capitol hill someone in the cabinet, will they try to invoke the 25th amendment and end the president's term early before january 20th all of that seems embryonic at best at this point and unlikely at this point. but those conversations we're told have taken place at various levels nothing significant to tell you about this morning but i can tell you, i spoke to white house aides yesterday who were agonizing with the decision of whether or not to continue to serve this president after his language and what happened with his supporters storming the capitol yesterday. back over to you >> in terms of the rebuke and we saw rebaukine ins of the presidd

the extremists that took the capitol from ceos across america yesterday. i think like so many other americans, they were just disgusted with what was on display. when you think about the enablers that have allowed a lot of this to happen, do you think this changes any of the dynamic in washington going forward? >> you know, for the enablers themselves, i don't think so the hardest core group is living in a reality in which this all makes sense in their brains, right? you saw rudy giuliani yesterday calling for trial by combat. speaking to the very group that would then march down to the capitol and storm it and fight capitol police and storm the house and senate floors, the very temple of our democracy rudy giuliani is not likely to

be transformed by what happened yesterday. i think if anything there will be a hardening and my concern frankly is that these trumpist forces had success yesterday and they were able to stop the constitutional process, they were able to force the vice president of the united states and the senate to scurry for cover. they took the floors, they have controlled them unrestricted for a long period of time yesterday. and i think that they will view that as a big win. and i think that is a big recruiting calling card for that group to say look, we're the ones standing up, join us. i think their ranks might swell as a result and i think that is the concerning thing four people died yesterday it wasn't just a harmless prank. >> and it was on the same day that -- it had to be apparent to president that his pet uhe husband at not accepting the results -- and what was it, november 4, go two weeks,

exhaust your possibilities with lawsuits, with the courts, you didn't like the outcome, it should have been clear at that point. so taking to the next level again and again and again and again to the point where you lose georgia for your party, essentially burning the house down and now you've lost the senate and still not to be realize, you know, that your words and actions have effects and then to incite that yesterday, i mean, it is beyond the pale i did see someone yesterday, and this is nothing keep in mind, the people that elected donald trump and the people that voted for him the second time, winning half the states, there are different types of trump supporters there is the hardcore maga people and some of those stormed the capitol, and then there are everyday republicans that knew about trump's down side but

liked the supreme court appointments, liked what went on in the middle east, with corporate taxes, with t deregulation and backed the nominee of the republican party when was the nominee again. so those people are all gone i think at this point. the only people left are the maga types that doesn't matter what he does i think at this point. but -- >> i'm not sure that is right. in the sense that we saw scores of republicans yesterday after the attack on the capitol continue to vote to object to the electoral college count of the election results from yesterday. >> they have constituents too though >> that's right. they are looking at the base saying we need to be on the side of this base there is a large group of american po americans that want to stop the election results >> yeah, still a lot of people

that aren't sure that -- and for whatever reason and trump inspired a lot of that obviously. >> because they have been lied to they have been lied to they have been fed lies. and they belief them because they are in an ecosystem where that is all they get that's the problem these claims were rejected by court after court. there is no evidence of any fraud in this election that is significant enough to overturn this result. if there was, it would have been presented in court and it would have moved forward in the legal process. that didn't happen those claims were laughed out of those courts and yet the core group of trump supporters continue to try to block the election results and the reason is because there is a largegroup in american politics that believes this stuff and those politicians are currying to that group as a political force for the future so when you say this is done and this is over, i don't think that that is right. i think that there are

politicians and you saw them on display last night who are trying to take the mantle of this movement into the next election cycle and be the vanguard of that in a post trump sort of political future >> i wasn't talking about politicians. i'm talking about the number of votes and voting public, whatever you had last time, it has been cut at least in half for most people. for everyday republicans that espouse conservative values and have already espoused those. so running again in four years, impossible will he be a factor with his base next four years and perhaps in a media fashion that is possible as well but the legacy, what was left of it, and there were some everyday republicans would say there were good things that happened. but the legacy is gone at this point because of the petulance

and childest in addition now there are repercussions and the stain will never come off from what happened yesterday. ever >> no. no, it won't and i think the short term concern now is what happens over the next 13 days because i spoke to people close to the president last night who i can tell you are expressing deep, deep concerns about the president's association with reality right now, the president's mindset, what he is willing to do over the next 13 days and there is real frustration and fear about how the next 13 days can go. it is not clear at all that the president has been daunted by this we have not seen him speak to this on camera we saw the statement from sdan dan scavino, but frankly, it is not entirely clear that the president saw or knew about that

at the same time we assume that dan would not astrona put that out unless the president blessed it at 3:44 in the morning but we don't know that for sure and we have not seen the president and we don't see -- not getting a sense yet that the president has cowed at all by what happened >> that was going to be my point, the future of the two party system it wasn't just scores of republicans, it was 138 members of the ohhouse who voted to overturn pennsylvania's result fwrs the from the electoral colleges and seven senators and trump will be sticking around trying to fight for those voters, but it makes you wonder what happens to the republican party and to the democratic party as a result. >> there is a deep submit in pln i guess you could say the mitch mcconnell faction which views all this as detruck stiff to

american democracy and you saw mcconnell sort of throw his entire political force against this yesterday on the senate floor trying to stop this. even before we saw the riot and insurrection behavior by the trump supporters he was trying to stop the effort to block the electoral college count as a travesty to american democracy. so that group is sort of for lack of a better word call it the republican establishment and then you have the sort of trump loyalists who are acting, you know, in their own self interests trying to harness the political power of that group that you saw storming the capitol yesterday. because they represent a much broader group in american society and trying to harness that to what end i don't know other than advancement of their own political careers. what is the sort of i'd loddeodl

group? i don't know because the focus on trump himself. they are waving trump flags at the u.s. capitol as they stormed it yesterday and there were some american flags there, and there were some don't tread on me flags there, but is thisthis is a move aboutd policy >> how concerned are you about an almost separatist style movements in the united states and speak if you could, because i know there are so many people with questions including myself about the security on capitol hill and if there is anything we've learned overnight about what clearly went wrong along the way. >> well, i mean, look, there is sort of a separatist effort here we saw it in the civil war we haven't seen it since then in

any real way i mean, what we're seeing is fringe sort of qanon fueled conspiracy theory movement trying to establish itself in the mainstream of american politics there doesn't seem to be any company here rent goal to that right now. it is entirely focused on the personality of president trump himself. but at some point, you know, that movements could be harnessed by some perhaps more able politician to do unknown things at this point so that is alarming. and what was your second question i'm sorry. >> just the complete lack of policing during this remarkable and sad episode. >> yeah, look, i've spent years of my career working in the

capitol building and that is a secure complex there are very few entry points to the capitol building itself, relatively, more wide open than the white house complex for example. but the capitol police is a large robust police force with all of the security that you can think of they are used to big security events, states of the union events, all sorts of things. they would have been on the highest alert yesterday because this was known that this group was rallying in town, there were visible threats to the capitol on social media among these supporters of this group yet they were still overwhelmed. and the question is why. was it sifrnltit simply incompe which the capitol police did not deploy enough officers to the right locations to stop the perimeter from being breached, or was there any other failure

here i think that there will be an investigation and we'll find out a lot more about what happened here so they will try to figure out what happened at these entry points when the protestors stormed it were the capitol police on duty simply dwreeoverrun. we saw one video of a kach police officer in full retreat run backwards up the stairs just outside the senate floor being chased by a group of trump supporters and clearly afraid for his physical safety, retr t retreating and calling on his communications twice, cadevice u support. he was alone outside the senate steps. feet from the senate floor the last man defending the senate floor in that video and he was backed up by about four other capitol police officers soon, but that force

was woefully insufficient for the threat that they were facing and the question is, why clearly there was a tactical failure. and clearly there was a leadership failure yesterday of the capitol police >> we'll follow of course all of this and we'll be doing it all morning. thank you for helping us through it right now smooeocial media companies responding, from twitter safety account, in their words as a result of unprecedented and ongoing violent situation in washington, d.c. we have required the removal of three at real donald trump tweets posted earlier today for repeated and severe violations of our civic integrity policy and this means that the account of at real donald trump will be blocked for 12 hours following the removal of these tweets. if the tweets are not removed, the account will remain locked future violations of the twitter rules including our civic integrity or vie lents threat policies will result in

permanent suspension of the at real donald trump account. facebook for its part also condemning the actions blooking president trump from posting his facebook page for 24 hours in response to policy violations. becky. corporate america reacting yesterday as well. condemning the breach of the capitol and calling for an orderly transition of power. gold m saying for years our democracy has built a reservoir of goodwill around the world. and recently we've squandered that at a record pace. today's attack on the u.s. capitol does further damage. it is time for all americans to come together and move forward with a peaceful transition of power. we have to begin investing in our democracy and rebuilding the institutions that have made america an exceptional nation. johnson & johnson ceo saying as an american, as a colleague to tens of thousand of employee in

the country and u.s. military veteran w.h.o. served overseas to protect our democracy, i'm devastated by this assault on what our country has stood for since its founding free fair and peaceful elections. now is the time to stand shoulder to shoulder in unity. and this coming from blackstone steve schwartz man. the insurrection that followed the president's remarks is appalling and im shocked and horrified by the attempt to undermine ourconstitution. as i said in november, the outcome of the election is very clear and there must be a peaceful transition of power meantime head of the national association of manufacturers, a group representing 14,000 u.s. companies, calling on vice president mike pence to seriously consider invoking the 25th amendment to remove the president from office. the group ceo saying that the events of wednesday were not the

vision of mirk thamerica that manufactures believe in. joining us now to talk about what comes next for our country, let's bring in former u.s. senator judd gregg and also donna edwards. thank you for joining us i'm trying to figure out how we go forward from this as well january 20th looks like everything will go forward i'm hoping i'm hoping that that tweet describes exactly what will happen then what do we do >> i think it is important to move forward and i certainly support the president-elect's desire to do that. but i think that it is also important for us to look backwards. because we have to look at what happened, we have to look at

what has transpired frankly the last four years that brought us to this point. because we don't want to happen again and you can't do that by closing your eyes to what is going on in this country and, you know, yesterday was deeply concerning. and disturbing to see a place that i used to work with the wwindows smashed d the destruction that was taking place and breach of the capitol. and i don't think that we can ignore that. i think it is appropriate for the fbi and other investigators to try to find these people and to prosecute them because that has to send a message to the future in the future, that these things are simply not acceptable. the president of the united states is a clear and present danger to america and to the constitution and i think that he has to be

held accountable as well he was the proximate cause of the insurrection that took place yesterday in the kapts of tcapie united states and there has to be accountable for that. >> what do you think, judd gregg, does he stay until the 20th, would you back efforts to end that that is 13 days. >> well, i think first we have to recognize that beyond the draw practice and the horror of this invasion of our capitol, we are still inherently a resilient country.practice and the horrorf this invasion of our capitol, we are still inherently a resilient country. vast majority of americans don't this unfortunately the president demeaned our country and i think he appears to be unhinged. were we a private citizen, we say we hope he gets help

unfortunately, he is the president and's acted in a manner that if he had any self respect, he would resign there is nothing that can repair this damage in my opinion in the short run. only thing that we can do now is hope that we have leaders on both sides of the aisle, because remember this type of violence is occurring in other places in our country, whether it is in seattle or portland or now most significantly in washington, have leaders who speak to reinforce our national strengths as a country and say to our people, listen, we're at great and unique country, we believe in the rule of law, we believe in our constitution and we'll pursue a country that is orderly and that is what we need is leadership right now >> we were just discussing the capitol police and unless it is one for one, i don't know how you stop a mob because you are not willing -- you amay be armed

but you can't use deadly force so i understand how it happened. i think there certainly should have been more planning, but once you are being overwhelmed, unless you are willing to use deadly force that is what happens. and so they are brave men and women. how else could that have happened if you didn't fortify it before hand >> you know, the capitol hasn't been invaded since 1814. i don't think that anybody conceived that no matter how aggressive and strongly people felt in their protests that they would pursue an attack on the capitol, an insurrection as president-elect joe biden has called it. so i won't blame the capitol police they put their life on the line just like all of the law enforcement officers in this country. obviously in hindsight you can say they should have been

reinforced but i wasn't there, i don't know what the on the ground situation was. and i don't think that really it is all that relevant to the whole issue of the fundamental attack on our values being instigated by a president who doesn't seem to comprehend behind that his job is to lead the country in a positive way, rather than lead a country -- i think eamon javers hit it right on the head. he is a cult figure and unfortunately our party has become dominated by a cult figure and the worst elements are being brought forth. >> well, on top of all this, this was after the same day that really the actions of president trump caused a loss in the senate which probably wasn't necessary to happen or would not have happened without -- go ahead, congresswoman >> i was going to say, i think that, you know, what really

we're dealing with here is that it is really important for us to look back at the planning and pre-planning that went into the decisions of the capitol police. because assu sure as anything, those who would do harm who are foreign actors or other domestic terrorists could see how they could breach the capitol and so we can't just stay, you know, let's not look at this and i think that the oversight and government reform committee will take a look at this as well as appropriations committees and others and i think that that is the appropriate forum for that but i also believe that it is really important for us to look at this element that has taken place in this country because it won't go away even on january 20th i think the president's statement where he didn't concede the election but acknowledged the transition but

said we'll continue the fight. and i think that he will be a private citizen there. and so our ability to police that i think will be greater than it has been while he has been president and the reluctance on the part of republicans to not hold him to account until yesterday. so we have a long way to go here to begin to repair what has gone wrong in this country and the first start of course is for joe biden and kamala harris to be sworn in and to get to the business of doing the business of the country and i think that it is good for us not to have divided government to do that at this time. because the american people need to see that we can get some things done for them >> all right, thank you both for coming on and sharing your th thoughts with us

andrew coming up, we'll talk about the market risks after stocks shrugged off the violence pushing to new highs and also a look at yesterday's s&p 500 winners and losers see every delivery...

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futures are up about 92 points almost 500 point gain in the dow yesterday and the nasdaq did end lower, but less than 100 points. and you might recall almost across the board that the averages continued to gain with the become drop of what was happening at the capitol which is -- i don't know fed looking beyond january 20th. it is hard to understand but the market doesn't necessarily move based on its conscience i don't know if it has a conscience maybe not. let's get back to washington for an update on where things stand. leigh ann caldwell is joining us now.

>> reporter: it was 15 hours after the process began with of course a six to seven hour violence interruption that killed four people the congress finally verified the election of president-elect joe biden and vice president-elect kamala harris. what changed, there is a clear indication of what changed with senator james lankford who when the interruptions began was speaking on the floor in favor of these objections to the electoral college count and they returned from this interruption because of the days on that was happening here in the capitol, this is what he said he had a completely different change of tune take a watch >> transparency in government just doesn't seem like a bad idea obviously the commission that we have asked for is not going to happen at this point and i understand that and we're headed towards tonight toward

the certification of joe biden to be the president of the united states. and we will work together in this body to be able to set a peaceful example the days ahead. >> reporter: so he was the last to speak before the insurrection and the first to speak after and his tune was completely changed. now both the house and the senate have adjourned, they will not be back until just before inauguration and there is still a lot of questions what happened with the capitol police, how these rioters were able to enter the building and those questions will remain and lots of lawmakers are wanting answers. >> okay. thank you for that report. meantime, we'll get some market reaction to what has taken place. the market hasn't really reacted too much to what has happened, though maybe in some ways it has. joining us right now is galaxy

digital ceo. mike, good to see you. we can talk about bitcoin in a moment, but talk about the markets more broadly because we continue to hit new highs despite what has been playing out on our tv screens over the past 24 hours >> it is kind of shocking in some ways. we have an insurrection in our own capital. we have democrats winning and will probably lead to higher marginal taxes at the top, higher corporate taxes and maybe higher capital gains tax but it is being overwhelmed by liquidi liquidity. there is a ton on the sidelines. i heard a stat recently that 78% of all dollars ever printed have been printed in the last ten years. the amount of money being generated by the federal reserve and other central banks is dominating everything in markets. and, you know, stocks continue to go up, bitcoin continues to go up, gold for the most part

continues to go up and you know, we're in a mania of sorts it won't last forever. i do think that there is a ballet that come april or may or june once the vaccine gets rolled out all of a sudden there will be a surgery in came holdity prices, surge in activities and says not sure if three years of zero rates makes a lot of sense so maybe that changes things but until we get some shift from the fed, it feels like the market just has the bit between its teeth and wants to run >> and i was going to ask, it does look like it wants to run to the degree that you see risks ahead ahead, is the only risk what mr. powell may or may not do >> listen, there are always risks that you are not seeing straight in front of you i would have thought that the democrats and this potential new shift in taxes -- now, there is

two sides to that story. a lot of dems even think that they will hold off for that until 2022 just because of the fragility of the economy so maybe we're getting the democrats that falls a little writ mo bit on the progressive tax reform and maybe the market is sensing that you know, i've been in the markets 30 odd years and i've never seen america with as much political fragility, economic instability, that the solution, the medicine that both democrats and republicans, secretary of treasure i are, are feeding the economy every time it gets sick, continues to exacerbate the rich/poor gap and that the inequality in america becomes a bigger and bigger issue. you look at last year, you know, the wealthy class, the wall street and rich guy class has had one the best years they have had in decades

when the rest of america is not doing well and we have 56 million peopled food insecurity. you saw that instability play out yesterday on the capitol and that continues to i think weigh on me certainly, but i think that it is a risk that is underappreciated in the market there is a tremendous amount of instability, socially, politically and economically in our country. >> really smart analysis on so many levels just in terms of the liquidity that is coming in, how the fed is really controlling this there is less spec laulation tag place in the market too. and all these things, it can ignore them until it suddenly decides not to and i guess for anybody who is kind of seeing things collapse before you, you get a little nervous not knowing what the underpinnings are and how steady things may be. and all of these risks getting

bigger and bigger. how do you kind of look at this, how do you position yourself in the market to protect irs from such things? >> you know, it is -- it is a brutally durifficult question to answer because we're gone parabolic in lots of things. look at bitcoin, rarely you see it looks like that, straight up. and you look at lots of equity markets looking similar. so for me, i'm buying puts on interest rates in two to three years. so put spreads on euro-dollars just in case powell changes hi slowly taking some chips off the table. i put on my instagram a picture of some pigs i saw in the dominican republic, the famous adage pigs get fat, hogs get slaughtered. but you kind of need to stay with the market while it is going. so you ride the airplane but you keep the seat clothes to tsest

door is the other tradie adage. so on maybe hedge yourself we will have a correction. when i don't know but markets don't go up every day forever. we're in a new paradigm though we've never ever in our careers experienced this i mean, they dumped a wash of money on to the system and where that finds its home and when that gets extended, right, even the new stimulus package where now people expect the dems will give you $2,000 per citizen. some of that if not a lot of that will get -- find its way into the markets certainly when it comes to the young people's hand, they are going right to their robinhood accounts one of the most unique things last tithe time was seeing home people bought bitcoin with the exact amount of still will you also stimulus. so the market is sensing that.

and there is speculation all over the place you look at option buying in stocks like tesla, it is to the point of insanity. but i said that four and three months ago and so you have to watch for the cracks one day we'll wake up and markets will be reversing hard but i don't know when that is. >> the bitcoin, if you think about it, it is almost like a conflict in terms. number one, it seems to be going up in your view based on automatically liquidity, but it is supposed to be the answer to hedging against all liquidity. so is it going up as a result of the liquidity or as a solution to how to play the liquidity i guess both >> in some ways it is the same thing. 77% of all dollars in circulation that exist have been printed in the last tencoin hasd

so just the relative value of what bitcoin is worth versus a dollar and people project that governments aren't going to son with this rich/poor inequality, people will say we need to pay for college, we need to get people $2,000, maybe 2 240ud eve $2,000 every three months. the mindset shifts and the money is free idea, hard money, something like bitcoin or gold becomes more and more appealing. >> so can it come down when the bubble bursts? if the speculative bubble bursts, is bitcoin still the solution >> if the speculative bubble bursts, bitcoin will go down for a while. there is just too much correlation. if you made a ton of money here and you are losing a ton of money here, at one point you will take some profits where you make money and so if the s&p was down 20% in the next three days, bitcoin

would bel lower not higher. but there is anned a donks ps going on there is hard to see a way out for central banks, for this giant deficit that we continue to grow. it is why millennials and gen z are buying bitcoin because they know they are kind of screwed. the baby boomers have eaten all their future lunches in lots of ways by building these giant did he ever sits so i do think that bitcoin will stay correlated to risk assets in the short run but that correlation breaks do you know down over time and it will continue to go up as more people get into this community the viral nature can't be underestimated it is shocking to me how many institutions are lining up to try to get bit coin into their

portfolios >> mike, appreciate it request to s good to see you. thank you for helping us try to understand what is happeningen about becky. yeah, really complicated game right now you are not just playing chest, you are playing 3d chest smart analysis when wce mkcome back frank lunt will join us don't settle for silver 7 moisturizers 3 vitamins 24 hours hydration gold bond champion your skin

welcome back, everybody. let's talk now about what that breach at the capitol means for the future of the republican party. joining us right now is frank

luntz, of course he's a political pollster and strategist, and frank was with us just 24 hours ago, just over 24 hours ago, and warned us that the party could be facing the toughest few days of its history. frank, that was before any of this chaos really played out in washington, d.c., what do you think now? >> well, in talking to the average trump voter, i have been attending these rallies since the election and i was attending trump rallies before the election to try to understand the anger and the frustration that they have in the country, in the elites and what happened at the capitol is predictable, but it is not at all defensible and i don't understand what took the president so long to tell these people to get out of the capitol and to stop acting the way that they were the ramifications are significant. there are people on the hill who

changed their votes last night on the electoral college because they were so angry and so embarrassed about what was happening in their own building. we have never seen a situation where americans are attacking their critical institutions, and i think that's going to have reverberations among swing voters the chamber of commerce, business round table, manufacturers association, all three of them are important core groups in the economy. they said enough is enough these pictures you're showing right now, the members were very quiet and not political at all they knew something horrible had happened they knew their own voters back home, very upset over the photographs and videos that you're showing right now, how upsetting it was to them i think that the republicans have a lot to do now to repair

this breach. they have a lot to do to explain why they did not stand up to the president before this, why it was allowed, why these protests were allowed to get out of control like this. it's a bad time for this country, it's a bad time for the people's thousands it's a b -- house it's a bad time for the republican party there's people with a lot on their hands and hopefully the person who regrets it the most is the president of the united states. >> hey, frank, there were a lot of republicans who changed their votes after what we saw happen yesterday, but there were still 138 members of the house of representatives and 7 senators who voted to overturn or to not accept, not certify, the electoral college results from pennsylvania a slightly smaller number from arizona. i was a little surprised to see

that many who were still saying no, we won't accept the electoral college votes of a state. it shows to me that there's still a pretty big divide, and i know a lot of times the dirty little secret in congress is you can vote for things that you know aren't going to pass just so you can then go back to your base and say, see, i supported you, knowing it's not going to happen but this seemed like a much more consequential vote that could have long-term impacts. >> you saw in some of those photographs i took, the ones that were outside the capitol in watching that, i wonder how and whether the elected representatives truly understand that video right there in front of you i was in the middle of that. that's my video, and people relati yelling, and i know you can't play sound because of the language being used and my greatest shock is there was a woman who was carrying a sign, and i sent it to you guys, where she said that republicans don't

or trump voters don't protest, they don't act this way. they're not anti-police, and yet that's exactly what you see right there. protesters yelling at the cops, standing in the way of the vehicles it's horrible. and i wonder if the members themselves understood the anger and frustration that was happening outside and whether they understand that those who are not trump voters, the other greater than half of america that looking at these videos how upset they will be about what happened in the streets of washington, d.c. yes, you're correct. that sometimes people cast votes that they really don't mean, but last night, i will say this, they do believe that there's voter fraud. they do believe that the election process is not being waged, and if i can give you one statistic, 80% of americans believe our democracy is the number one issue facing congress going forward. the integrity, and the accuracy

of our election process, and it's not just republicans or it would not be the number one issue. the democrats have their issues as well. i think that the business community is expecting washington to get its act together it's expecting republicans and democrats to figure out what went wrong in these various states, address it, so we never have an election process like we had right now, and so that we can put our focus not just on the economy but also on covid. >> frank, looking ahead at the state of the two parties and everything else in the country, and the republican party, which is, you know, the house has been burned down, and it's like rubble after what happened with the senate, and then what happened yesterday, so but we know how quickly, you know, political cycles seem to swing there will be another election in two years, and i'm wondering about the republican party, and i'm wondering whether a

mainstream republican, like we were used to forever, if that were, if someone like that returns, do you see regular republicans just sort of breathe a sigh of relief and return to the party, the ones that said i can't support donald trump, so they come back to the republican party with republican values but you know who's not coming back, maybe the maga people that are still mad about what happened to donald trump so how does that play out? does the republican party survive by adding the people that they lost or do they -- are they going to miss the trump base? >> well, the truth is your question is very -- is exactly the question that the gop will have to ask itself, not today, because today they have to address what happened in the last 24 hours. but going forward, the only way that the republican party is the majority party is that trump voters and traditional republicans have to vote for the same candidate conservatives and what i call trump sters, have to be on the same side because if the trump

vote stays home, even 10% of, you have an outcome just like you had in georgia and joe, you and i talked about this, the republicans did not participate in georgia the way that they had back in november and they were very discouraged by what they were hearing from washington and from the white house, and so enough of them stayed home to give georgia what had been a reliably republican state, enough of them stayed home, they gave georgia two democratic senators as you and i talked about the challenge for the gop is that you must create a party big enough that it has the pro business republicans or pro trump republicans, and what i would call the traditional republicans. all three of them are required. >> and it could have been, after a week or two weeks of making his concerns about the election known, he could have spent the rest of the time in georgia, frank. saying it's not going to happen for me now my job is to keep the senate to have any of my, you know, or anything i did, to maintain that

legacy i need to be in georgia. could have gone county to county saying look, i know you're upset, but i want you out to make sure we keep this -- and instead, you know, you're holed up seething about the election, and this is what happened. now it's gone. >> he could have played golf in augusta. >> i don't know about that >> the core of the trump voter isn't a wall street voter anymore. the core of the trump voter is a small business person, is someone who, works on a farm i rural area the core trump person is a democratic voter a small economy, and i don't think that the average republican or the average viewer may understand that they may think the party is the party of the rich. in fact, the rich voted for the democrats in 2020. the viewer may think that the republican party used to be the party of wall street

that's not true. wall street voted for joe biden and wall street voted democratic in the election that happened on tuesday. we've had a fundamental shift of political parties. >> frank, it strikes me that the republicans don't entirely control their fate part of this is up to the democrats, too, and if this is true, that what we have been talking about, the moderates have more strength, then that empowers the democrats and puts more pressure on the republicans. if the further elements, you know, the more extreme elements of the left take over, then you probably have a different scenario coming up in two years where some of the people you just mentioned, the wall street people, the rich people, feel less comfortable voting again with the democrats it strikes me as this is an issue that is not entirely in the republicans' control. >> you're correct. if bernie sanders and elizabeth warren are in control of the senate democrats, we'll have a

very different environment in 2022 if they're raising taxes, raising regulations, if they're trying to force new states in. if they're changing their environmental policy, if the green new deal becomes law, that changes the entire dynamic, and we talked about this yesterday, i really believe the problem solvers caucus, which has a lot of financial support, and the no labels organization, that is the center of america. that is the center of politics that's where the heat is right now. they are in control of the future of the house, the senate, the congress, joe biden, and the american people. the question is which party does it a better job listening to the problem solvers caucus the party that does the better job at that, because the senate is 50/50, the house is virtually 50/50. whoever does a better job at bringing in those centrists, that's the person who or that's the party that governs for the

next few years >> frank, thank you very much for your time, and just as a little bit of a precursor, we do have the cochairs of the problem solvers caucus in the house who are going to come on and join us coming up just an hour from now at 8:00 a.m. eastern time. representative josh gottheimer, and representative tom reed, and frank, thanks for your time. we appreciate it this week, especially andrew >> okay. thank you, becky, it is just after 7:00 a.m. eastern time in washington right here on the east coast, you're watching continuing breaking news coverage right here on "squawk box. i'm andrew ross sorkin along with becky quick and joe kernen. i want to show you u.s. equity futures at this hour after what has been a tumultuous 24 hours in washington, but not so much in the markets the dow is up, dow looks like it would open up higher this morning as well, up about 53 points, the nasdaq looking to open higher, 86 points higher.

the s&p up 13 1/2 points i want to take a look at bonds the ten year is remaining above 1% oil remaining steady after the u.s. capitol drama as well wti rising a little over 1% yesterday, wti crude at 50.69 and bony hitting a value of a trillion dollars, breaking the $37,000 mark in trading near a new high so a lot, and now at 38,000, literally as we speak. meantime, breaking overnight, congress confirming the presidential election, paving the way for joe biden as the next president ammon j eamon javers, joins us this morning. >> what we saw yesterday was the constitution and the rule of law coming under violent attack in the united states of america but in the end, andrew, both the constitution and the rule of law held fast and in the end, the constitutional process was followed into the wee hours of the morning ending up with the

official declaration of the presidency of joe biden, and the vice president of kamala harris. here's a statement from vice president mike pence who was presiding over the joint session of congress in his role as the vice president of the united states and the president of the senate he was the person who reconvene the session after that violent attack on the capitol last night, and these werehis words >> to those who wreaked havoc in our capitol today, you did not win. violence never wins. freedom wins and this is still the people's house. >> and shortly after the vote counting was finished in the wee hours of the morning, a statement from the social media director of the white house on twitter, the president himself has been banned from twitter for election misinformation, and inciting violence. he was unable to tweet this statement himself. his social media director tweeted this in his stead.

here's the statement from the president saying even though i totally disagree with the outcome of the election and the facts bear me out, nevertheless, there will be an orderly transition on january 20th i have always said we would continue our fight to ensure that only legal votes were counted. while this represents the end of the greatest first term in presidential history trks t, it the beginning of the fight to make america great again his staff issued it on his behalf, and i can tell you that i have been in contact with white house staffers who are at all levels agonizing over their decision about whether or not to continue their service in the white house given the president's conduct yesterday and what that does to tarnish their own reputations as servants of him. there's a lot of soul searching going on in the white house overnight tonight i know a number of people were sleeping on their decisions about whether or not to resign we could expect to see some of

those decisions come to fruition this morning, and this leaves a relatively open question about where we proceed now as an american democracy, as the biden administration comes in at the end of the this month with an enormous task of somehow finding a way to pull this country together, andrew. >> specifically let's talk about some of the names that might be on that list but i also want to, and i don't know if thoohe's on list or not but what do we know about treasury secretary steven mnuchin. >> we don't know anything about his state of mind, we know that there have been low level conversations among some of the members of the president's cabinet. we're told about the 25th amendment, the possibility of moving the president, that seems embryonic at best, and unlikely in the extreme, given that you would have to have a large number of members of the cabinet to move forward with something like that. we know that there have been

some conversations with republican senators about the idea of impeaching the president and removing him from office that seems unlikely given the timing that would take and the congressional process that would be involved there. might be simply longer than the time has remaining in office so i think there are, you know, any number of officials that you can look at. i was speaking to folks inside the white house yesterday. i was told that robert o'brien, the national security adviser is considering resignation. others were weighing it last night. i would look at somebody like a chris ladell who is working on the transition for the trump administration, and see what he decides this morning any number of others who have already resigned we saw a resignation yesterday from stephanie gresham who is the white house spokesperson for the first lady this was the breaking point for stephanie grisham yesterday.

she had had a number of problems previously and yesterday was the end of it, and she resigned. i think we could see more of that today you know, people are doing soul searching and trying to pick up the pieces inside the white house and figure out what this means for their own personal legacies as having been associated with what happened yesterday. andrew. >> eamon javers, thank you for your reporting, for your reporting all yesterday, overnight, and i know we'll be talking to you throughout today. joe. >> thanks, andrew. president trump faces widespread condemnation from political and business leaders after yesterday's storming of the capitol by pro trump protesters steve liesman joins us now, as i look at the futures, steve you think address both i mean, january 20th, we know how markets work, what is that, less than two weeks. i mean, the market can look at nine months sometimes. it can do two weeks in its sleep, and also address the other issue, the liquidity

continues. that's what novogratz was just talking about. maybe it's not that difficult to understand why the market somehow goes up with this backdrop. >> none of that changes, joe, you're right, and i'll come wbak to the issue of the market being up yesterday let me talk about what you initially introduced, the president and the riot ranged across industries of political leanings the conservatives manufacturers association called for vice president pence to consider invoking the 25th amendment to remove president trump from office, even the president's strongest allies, like steven schwarzman of blackstone said the insurrection that followed the president's remarks is appalling and affront to the democratic values we hold dear as americans i am shocked and horrified by this mob's attempt to undermine our constitution as i said in november, the outcome of the election is very clear, and there must be a peaceful transition of power jamie diamond, our elected

leaders have a responsibility to accept the results and support the peaceful transition of power. david solomon of goldman sachs also weighing in, i spoke to him yesterday, he said the behavior in washington, d.c. today is unacceptable and completely undermines who we are as a nation now, i talked to former imf chief economist, the former governor of the bank of india. he tells me there are global implications to what happened. the world looks to the united states as a beacon of democracy, which is a reason to trust the markets and have faith that the rule of law would be expected. what is happening today weakens that trust, worse, it undermines the fight against authoritarians around the world almost 30 years ago, as a reporter, i watched the storming of the white house in russia in moscow but communists opposing democracy. a big question was the importance of democracy, and the economy, and i never thought i would have to report that story in the united states but the

reaction of business leaders shows they understand how markets and businesses rely on democratic stability and the peaceful transfer of power, and joe, to come back to your question there, david solomon told me he thinks there's a lot of goodwill in markets when it comes to our democracy, and we can draw on that he said we made a big draw down on that account. and we have to put some money back in. >> they came back and did it you know, and i heard some commentary yesterday that sometimes we, unlike the rest of the world, a peaceful transition of power isn't always something that you can just assume is going to happen. and i heard someone ronald reagan saying that it's miraculous, it's not every day, and it happens again and again for 250 years, and i assume it's going to happen again, and i think the markets assume that too. i understand what you're saying, maybe some of that currency was

debased yesterday around the world, but then they did come back, and they did confirm the election result and it's going to happen on january 20th. and it's all disstabilizing for markets, but i think the markets voted with the seat by going up 4, 500 points yesterday, and being up again today, so you know, fingers crossed. >> i agree, joe, i think there was tremendous symbolic importance to what the congress did yesterday. the speech by majority leader mcconnell was really on point in terms of saying you tried to stop a democracy here, you have failed at it i think that's important and i think the market takes the lead from that and looks at those things, okay, what do i have to think. you know, joe, let's not hope we're in a place where we have to look for democratic safe havens and that's not the united states but i live that difficult transition, that issue of democratic institutional

stability and saw how important it is, and simply put, just being very clinical about it, you build in a discount for the risk, and i don't think america is that place right now, but nor of this, and perhaps it will be. >> right we have someone to talk to now, steve. you might want to watch, that knows the president well, and we'll see what he has to say we watch in shock as the demonstrators, pro trump demonstrators stormed the capitol in the midst of a sacred constitutional process our next guest, mick mulvaney has called on the president to take action. but two months ago, he wrote in the "wall street journal" trump would concede gracefully if the lost t he lost the election we're joined by mick mulvaney, former director of the office of management and budget. if your prediction had been right, mick, the senate might still be in the gop's hands, and that isn't what happened >> i think that's right.

no one likes to be wrong you especially don't want to be wrong on something of the level of import. the tweet you saw dan scavino put out last night which i can only assume was authorized by the president, not to be at all expected that dan scavino would put out a tweet on his own of something of that gravity. that should have been out six weeks ago to say look, we're going to continue to investigate this there will be investigations after the january 20th, but there will be a smooth transition of power, what should have come out six weeks ago. you're right, i think the republicans would control the senate if that had happened, and certainly we would not have had that embarrassment, international travesty from last night. that's a little bit too late from the president overnight last night >> were you surprised at how far -- how do you think it happened we've been inundated with a lot of the president's character flaws, they're well known that

we have seen over the past four years. have you been surprised by the extent of how those have manifested themselves post election >> yeah, two things i think caught me as i was watching yesterday, number one, the president had always until the past had sort of, you know, thrown out hyperbolic ideas, say something in a meeting, why won't we do x, and everybody that's a bridge too far. mr. president, that's not how it works. he thinks out loud, that's what he does. that's one of his mannerisms what i think you saw yesterday was the result of an entirely different group of advisers inside the white house instead of saying mr. president, let's talk about that, oh, yeah, that's a great idea, mr. president. you've got folks like peter navarro, lynnwood, and rudy giuliani in the inner circle in the white house and saw a manifestation of that. that was much different than i expected the thing we need to talk about as a country, there was a large number of people, a large group of people yesterday who were

willing to do this, the president of the united states went on stage and said go march down the street, and invade the capitol, and they did. that's what stunned me because that was not the group of people that was working with the president when i was there the president never asked us to do anything unethical or certainly illegal, and if he had, wait a second, stop, we're not going to do that for some reason, there's a group of people in this country, and a large section of this country that is so angry and disconnected that they were willing to do that yesterday, and i think that's as much of the story from yesterday if not more so. the country is much more divided than i expected. i never thought, i had dinner last night with me children, i never thought i would see the day when american citizens would invade the capitol in order to prevent a transition of power. and as right as we are i think we are to be condemning the president for his role in this last night, i think we all have a lot of soul searching to do as

to what allowed that to happen it will be a long time before we fully digest what happened yesterday. >> andrew. >> mick, i have a personal question for you, and we have known each other for a long time, and i have enjoyed our conversations. i want to ask it to you straight up do you feel at all in retrospect that you were an enabler, as one of the people who ultimately supported the president, knowing what you knew about his character flaws, you know, joe just mentioned the character flaws. the character flaws were well known, the proclivity for lying was well known, the proclivity to incite was well known, and while i know you agree id logically, i think, with a lot of the economic proposals, and other things, it did require a lot of people to look the other way. i wonder what you think about that today >> andrew, it's a fair question. listen, like i said, i talked about this at great length with my family. we have three adult children who turn 21 next week, it was a good conversation as a family, and the answer is i don't know what

i feel yet entirely. i can tell you this, there are, most of us, almost all of us, except i guess the people on the inner circle right now who didn't sign up for what you saw last night we signed up for making america great again. we signed up for lower taxes and less regulation. the president has a long list of successes that we can be proud of for example, you could go and talk about the lowest unemployment rate for afric african-americans in history, and the first president not to start a war overseas during his term there's great successes there that we can take pride in. all of that went away yesterday, and i think you're right to ask the question, how did it happen. all i can tell you is when i was in the building the president that you saw, i'll ask you a fair question, do you think that maybe donald trump that came across in the media over the course of the last four years was the real donald trump. there are parts and pargssions that you saw him through a filter we didn't.

there's high perk lyperbole, tht loud but i never saw that in the white house, i'm so angry, i'm going to blow the whole place up, burn the whole place down. he didn't have that. the thing i wrote in the "wall street journal," i wrote we came to him with ideas, i'm not going to do that those are true stories that's the president we knew when we were there clearly he is not the same as he was eight months ago, and certainly the people advising him are not the same as they were eight months ago, and that leads to a dangerous sort of combination as you saw yesterday. it's a fair question i don't know entirely how i feel, and i imagine a lot of folks in the building, a lot of folks who served him from the beginning who are no longer in the beginning are asking the same things this morning. >> you bring up the point you don't think he's the same person that he was eight months ago, there has been this talk, this reported talk at least among some people who were in the

building, potentially some cabinet members, and potentially some republican senators the idea of invoking the 25th amendment to remove a president that they don't think is capable of serving would you put yourself in that category or you just don't know enough about what's happening right now? >> i haven't talked to the president enough in the last eight months, three or four, a couple of texts here and there that type of thing i don't have an insight into what's going on in his mind. i talk to friends who are in there. it's not at all surprising you don't get to where you got to yesterday with something that's normal. that's not normal activity for any citizen let alone a president of the united states so it's not surprising that you're hearing that discussion this morning in fact, i caught a little bit of the interview before me about whether or not members of the cabinet would be leaving, and i certainly think that a lot of folks are wondering if i do resign today who's going to take my place, and will it make it better or will it make it worse,

replace me with somebody who's closer to the folks guiding him inside the white house there's soul searching going on at a bunch of different levels it does not surprise me at all that the 25th amendment is being discussed. it did surprise me that the house introduced articles of impeachment yesterday, it surprised me that they went home they wouldn't stick around and debate that for a while. nothing is off the table when a president of the united states encourages people to interrupt a constitutional process and violently have an insurrection against the government of the united states, then nothing is off the table in terms of a discussion that comes after that. >> let's talk a little bit more about the tweet from scavino that came out. a lot of people from dan scavino has pointed as a concession speech it's not even though i totally disagree with the outcome of the election and the facts bear me out, nevertheless there will be an orderly transition on january

20th i have always said we would continue our fight to ensure that only legal votes were counted. while this represents the end of his presidency, and probably is from the president when you read the language, the greatest first term in presidential history, it's only the beginning of our fight to make america great again. that's not a concession speech he's conceding he's going to be leaving the white house on january 20th, and there will be this orderly trarns sinsition of power. i went back and looked at hillary clinton's concession speech last night i congratulated donald trump and offered to work with him on behalf of our country. i hope that he will be a successful president for all americans. this is not the outcome we wanted or worked so hard for, and i'm sorry that we did not win this election for the values we share and the vision we hold for our country. i mean, that's just totally different. do you think we'll ever get a concession from this president >> it's unlikely, and again, with all due respect, i think you're splitting hairs

it was never likely the president was going to issue a traditional concession speech. i'm waiting for concession speeches from politicians ten years ago. it doesn't make a difference legally. it's a custom in this country but it doesn't have any legal bearing. go back to the import of that statement, though, that statement that came out last night needed to come out six weeks ago, and if it had, the republicans would control the senate, we would not have had this event yesterday it's a timing issue. that statement i guess is fine, assuming it came six weeks ago as of last night, i don't think it changes anything. i think the legacy of the president was ruined yesterday instead of looking back now at all the things that he achieved, and yin his tweet, the greatest first term in presidential history, certainly he had an argument for a bunch of successes in the first four years. we talked about the taxes, economic growth, the lack of overseas wars. those are tremendous successes, all of that is gone.

the legacy of donald trump is now what happened yesterday at 1:00 in afternoon. and that's a real shame. by the way, and that's where i really think it hurts us who worked so hard to make it happen, folks who spent time away from our families, put our careers on the line to go work for donald trump, and we did have those discusses to look back at. now it will always be you worked for the guy who tried to overtake the government. the legacy is gone as of yesterday, and that's extraordinarily disappointing to those of us who worked for him. >> you want to make the point you're still part of the administration, but not as of when. >> yeah, you know, again i talked about it last night with my family. i called pompeo, special envoy to northern ireland, and it's a small job, a part-time gig but it's all i've got in the administration i called mike pompeo last night to tell him i would be resigning from that. i can't do it. i can't stay it's a nothing thing it doesn't affect the outcome. it doesn't affect the

transition it's what i've got and it's a position i really enjoy doing, but you can't do it. i wouldn't be surprised to see more of my friends resign over the course of the next 24 to 48 hours. it would be completely understandable if they did those who choose to stay, and i have talked to a couple of them, are choosing to stay because they are concerned that the president might put someone in to replace them that could make things even worse. i'm not condemning those who choose not to resign i understand that. but i can't stay here. not after yesterday. you can't look at that yesterday, and think i want to be a part of that in any way, shape, or form there's real heroes yesterday. mike pence really proved himself yesterday. that was a historic thing that he did to stand up for the constitution robert o'brien, backing the president, i don't think folks understand how hard it is for robert to do that, to back the vice president yesterday at a time when i'm sure the vice president was not very popular inside the oval office stephanie grisham, i thought her symbolic gesture was important

the capitol police are heroes from yesterday but there's a lot of folks today -- >> mitch mcconnell pretty heartfelt speech, i thought, yesterday >> a good question >> mick mulvaney, thanks, appreciate all the frankness and honesty. thanks for being with us today. >> thanks, guys. >> andrew. >> absolutely. absolutely thank you, joe. meantime coming up on the other side of the break, mohammed alarian is going to join us to talk about the markets and we are watching bit county this morning. the cryptocurrency topping $1 trillion, touching $38,000 this morning "squawk box" returns with so much more in just a moment

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you are looking at a live shot of the capitol building in washington, d.c. the sun is rising and hopefully it is a better day today as we're watching all of this, the futures are pointing to a higher opening on wall street, even as washington, d.c.'s curfew was extended for 15 days after yesterday's assault on the capitol. people are allowed out and about

now but as of 6:00 p.m. tonight, the curfew continues the dow actually finished at a record high yesterday. the s&p 500 also rising even amid a siege and the prospect of a democratic senate. congress did resume its session after protesters were cleared and formalized joe biden's victory in the 2020 presidential election in the middle of the night. about 3:44 a.m. to be precise. we'll be speaking to mohamed el-erian after the break about the market move and what it means for investors, what we should be focusing on as we head toward inauguration day. "squawk box" will be right back.

welcome back to "squawk box" this morning now to some news outside of washington, the "wall street journal" reporting that the u.s. is considering adding china's two most valuable public companies to the stock band list i want to get straight to eunice yoon in beijing who has more. >> reporter: those two valuable companies are alibaba and ten cent the "wall street journal" is reporting that trump administration officials are considering adding those two tech giants to an already existing blacklist that was announced back in november of

chinese companies that are suspected of having ties to the chinese military now, if that decision does go through, that would mean that u.s. investors would have to stop trading those two stocks from january 11th, so that's just next monday, and also their existing share holdings would have to be totally unwound by november so as you can imagine, investors out here were spooked by the news, the shares sold off in hong kong, and also the decision threatens to escalate tensions with china even further. the chinese foreign ministry today said that if it does go through that china would take counter measures and also said this u.s. mulling of a blacklist for alibaba and ten cent just shows the u.s.'s hypocrisy becky. >> eunice, thank you very much a lot of things to think about today, including this, in fact, joining us to talk about all of this, allianz's mohamed

el-erian your thoughts, people keeping look at this and say why is the market going up when there is so much obvious chaos that's takesitaking place. i guess the answer is the market looks past the next couple week and is more focused on the economy, and what's coming next. what do you think is the most important, and does it make sense to you to see the market up 100 points after 450 points yesterday? >> becky, i hope that is the reason why i'm not so sure. it does make sense that the market is higher i told you on monday, the path of least resistance is up. there is so much liquidity around the system, becky, that it is finding an outlet in financial assets and you're seeing this across the board day after day, week after week, so we will continue to have this contrast between what the market is doing and what conditions on the grounds

are telling you. >> yeah, we had mike november gratz on earlier, and he made that same point at the liquidity finding its way into the markets, and said that in some cases, you saw people who got the stimulus accounts, and dropped it immediately into bony you see some of the charts go up is there a firm foundation underneath the massive increases in some equities and some classes. >> there is some foundation but there's a massive layer of speculation about that and it's what someone called a rational bubble. this is not an irrational bubble it's rational because the fed and ecb keep on signaling that they will continue to inject massive liquidity, and as long as the market is confident that that's the case, it will drive prices higher. >> that's the huge question,

trying to figure out how much longer this can run, and it can be a long time remember that phrase, irrational exuberance was uttered years before the market declined, and in this case, there's a rational reason why so many of these prices keep going up i guess it raises so many questions for investors, though, on how to protect themselves, how to make sure that they're not caught when the water starts rushing the other direction. >> yeah, and keep an eye on the u.s. treasury curve in particular that for me has become the most important thing to look at every morning. yields have been going up and the curve has been steepening, and that's going to put the fed in a tough position if it continues, so if you're looking for one thing to start giving you some indication as to how much mitigation you should have

and where should it be, i would look at that, but let me just stress, this is a liquidity driven rally, and they are very powerful we also completely forgot about the adp number, which was a big miss yesterday and printed negative and that shows you the power of liquidity. >> i want to continue one of our gentleman's arguments that we had, discussion that we had last time, and then i thought you know what, it's not from last time, it's from like ten years we have been talking about this same thing you have always wanted fiscal or congress or the government to help the fed by enacting policies but we always disagree. i always tell you, you know, there's republican policies and there's democrat policies, and i think it makes a difference in the long run which one we want obviously this is the way of the world when people have disagreements, so you recently made the point that even if you had the senate, house and presidency, that that would be

good to be able to sort of deal with the pandemic and some of our other problems, and i kind of pushed back on you. you've got that now, and the market has been going up is it going up because it's expecting big things to get done or is it going up because even with the makeup where it is, it's so narrow that essentially we still have de facto gridlock? >> i think it's going up because it expects liquidity to continue it now believes that fiscal will pump in even more supporting monetary, and it got a very clear message from the fed yesterday, something else we haven't talked about, understandably, because there's so much going on, but the fed told you, they're not going to taper anytime soon, and when they taper, it's going to be very gradual, and they're going to do it extremely careful the market is saying this is wonderful. central banks pumping in liquidity, fiscal is going to pump in liquidity, and we know

what's going to happen, the markets are going to go up we don't fundamentally disagree on one thing, we have to promote growth, economic activity. where you and i disagree is does the private sector need some support from the government or not, that's the disagreement >> some find what i'm talking about, medicare for all, forgive all student debt, $3 trillion new green deal go over some of the wish lists that we have heard and in my view, those would be -- the outcome would not be great the intentions might not be great that we know where good intentions lead. that's what ai'm talking about, if you had carte blanche to enact some of those policies, i don't think that would be good for the country. >> yeah, i don't think anybody wants carte blanche but what a lot of people do want, and i'm among them, is some bold

economic measures that put us back on a path of high inclusive growth. >> that means stimulus >> we're going to have a test within the next two to three weeks. when the biden administration comes in, it's going to face a covid situation whereby it's going to have to make big decisions and compare us to other countries, we are sleep walking eninto a really really g health crisis. we got to figure out, are we going to do something about it or just continue doing what we're doing now. >> okay. mohammed, thank you, and that mention of covid, that might be the first time we have mentioned that in the first hour and 40 minutes of the show today, and i can't remember a time that's happened over the last ten months mohammed, it's great to see you, and we'll talk to you again soon. >> thank you, becky. >> trying to figure out whether -- what it was preempted with was, i don't know, i don't know if that's necessarily great or not, becky. right, it's something so bad

that it preempted covid. coming up, reaction to yesterday's protests on capitol hill, the presidential transition process, and much muchor me with j.h.b., john hope bryant coming up we'll be right back.

welcome back to "squawk box," everybody. we have a couple of stock calls to tell you about this morning, yes, on top of everything else happening, there's business underneath rbc upgrading tesla from sector to perform to under perform and raising their target price to $700 price is already at $770 the analyst there saying in his note we got tesla stock completely wrong like i said, it's now $777 this

morning. rbc now says that the higher stock price is somewhat self-fulfilling to tesla's growth potential in the meantime, jp morgan downgrading coke because of the increasing risk that the company loses its current dispute with the irs. the u.s. tax court ruled in favor of the irs which determined that the company would owe $3.3 billion in taxes. that stock despite this still up by about $0.23 this morning. and then there's oppenheimer, serving up two different views in the fast food sector, the firm upgrading mcdonald's, and downgrading wendys top 2021 picks are starbucks, papa johns mckonl mcdonald's up by 1%. wendy's down. when we come back on the peryr side of the break, john ho bant is going to join us on yesterday's protests, plus a live report from capitol hill. we're right back after this. see every delivery...

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when i moved to this apartment after six months, we need to connect with the world. i use the internet to keep him in the language, because that's the way to connect to my family's traditions. he has to know where he comes from. we need internet essentials. there's no excuse to not get connected. it was a dark day in american history catie beck is at the capitol covering the after math of the riot good morning, catie. >> reporter: good morning, a much different scene today than yesterday. a peaceful, quiet scene on capitol hill as we start to see sunlight on the nation's capitol, and a little bit of life stirring after that curfew expired at 6:00 a.m. this morning. still heavily guarded, high

police presence here from all agencies, several states around and the national guard on bike and in vehicles surrounding the capitol, trying to ensure that this threat does not rise again. right now, it seems to be under control, peaceful and calm in d.c., obviously police are taking this seriously, and saying their work isn't done here yet there were 52 arrests made in yesterday's riot, but they say they are pursuing other illegal actors who participated, and they are using the fbi to help them do that the washington field office putting out an online form asking for anyone in the public with information that could identify some of theseillegal actors to please respond and come forward the d.c. mayor last night indicating that the pursuit of these individuals will continue and that they will be prosecuted primarily because she has concerns about the upcoming inauguration day, and what could happen there now, she has extended the public emergency she put into place to

last for another 15 days and that is so it will cover inauguration day as well, as a way to ensure the violence will not erupt again. as sun right starts to come to the nation's capitol, a very peaceful, guarded scene here at the capitol. andrew >> thank you for that report we're going to continue this conversation right now and we are joined by john hope bryant, the head of operation hope, of course, to get his thoughts about what took place yesterday but also where we go from here john, give us your initial impressions as you watched this play out yesterday >> hi, andrew. i was heartbroken, and i talked to ambassador andrew young immediately after, those not totally familiar, he was on the balcony with dr. king when he was assassinated in 1968, pointing to the shooter. but he had been pointing, he and

dr. king, a decade for that. they have been warning, they had come to washington on a march. they were here to present a check, nonsufficient funds, that march was totally nonviolent they called for the best of america, andrew, and he and i agree on several things. number one, america is an idea, she's a country. we can make her whatever we want to make her, and yesterday we made a mockery of our democracy. and we're better than this number two, what became clear, i got a text from the future leader, the king of one of the countries in europe who is an investor, and he said what's going on in your country, this is heartbreaking, and what became clear is this is bad for business what i want your audience to understand clearly is this became broadcast around the world. this is very much like the '60s.

you had local leaders, governors, mayors, who stood in that walkway and said you will not get past me, beyond my dead body, who have access. you're having that happen at the federal level now. but it was the private sector, andrew, that stepped up and integrated the south it was the private sector, not government, that said enough of this, knock it off take down the whites only sign, it's bad for business. it's bad for investment. it's bad for our brand, it's bad for our business it's immoral, repugnant. it's disgusting, and it's also for those who just bottom line watching this who want a reason to act, it's just bad for business it's bad for america it's not how we sell the growth of our country i think the last thing that hits me, and i in no way do anything but condemn what happened yesterday with these rioters, but i do understand this is a

70-year-old broken ladder that we saw in washington yesterday, andrew this is poverty. this is white, frustrated, high school educated, i have been left behind, seven years ago plus with the industrial revolution poverty that has been lied to and given misinformation, and obviously some people are easily manipulated. you have blacks and whites here in different ways expressing their frustration. there's something wrong with our businessman for this country, andrew we need to get our vision back, our hope back. we need a plan, as i keep saying, we need a business plan for this country that includes all of god's children, and includes rising up in a positive way of people like sam walton who started wallet mamart with h school education, not rioting. and all the black entrepreneurs who came from nothing, and built tens of thousands of jobs and

opportunity and created wealth the color has to become green again, not red or blue but the color of u.s. currency, the color of aspiration, what we did in atlanta to turn that city into a place of prosperity for all. now, as you know, andrew, one of the ten largest economies in the u.s., international city in the whole south. because we decide to argue over things that were important like who got the prosperity, and how to spread it around. not over stupid stuff like who goes to a water fountain this would happen in washington, d.c., already over a nonissue. beating each other up, killing each other over a nonissue, over one man who's not even a republican in my opinion. he's about himself we got to knock it off we got to stop it. i like that the business leaders came out i think it was the "wall street journal" this morning, and

people i know, black rock, jamie diamond of j.p. morgan chase, and others, and this is not the america that they know and it's immoral, unethical, and we need a plan i proposed a new marshal plan, and i know you have the problem solvers caucus coming on your program later. i commend them it's because of them we have the latest stimulus. these are republicans and democrats working together i call it the get it done party. reasonable people. this vibrant middle. this country is really not red or blue, it's fuchsia. a republican head, democratic heart, saying how do we bring this country together. that's what makes this country great, man, and i'm heartbroken but also hopeful, rainbows after storms, and i'm hoping the program is the beginning, and the conversations you're having

is the beginning of the conscience of capitalism, and a rainbow after the storm, and public sector leaders who create jobs and opportunities and a rebuild ladder again for all >> john, you know, there's some people who are hoping that even that yesterday's events could somehow become cathartic and create a new moment here which is i know something that you're hopeful for. the question i would ask, though, is whether you look at the prospect of almost separatist style movement now taking place on one side in this regard, around trump, but we have had lots of quote unquote protests, sometimes protests that have turned into riots and other things, how you think the public should think about that, and how should business think about it. >> i think that's a false choice i know why you say it.

as a good journalist, you're asking these questions people need to understand that in the long arc of history, bad people movements have never succeeded. they have had a moment, five years, three years, ten years, 20 years, from the middle east, to europe, we can name the names. to latin america, to the u.s but they have never succeeded. it's always fallen because we are basically a nation and a world made for good, and we learn bad. badness is nothing more than failed goodness. darkness has no definition except for light we are a nation of values, of spe spirituality, hope, opportunity. in my blood, my veins, i have white blood, and latino blood, and asian blood, and black blood, and africa blood. if we take a dna test, we would probably pass out because most people watching the program are mixed race, and probably have black blood in their body too. we got to knock it off, and

understand that we're having a transactional conversation we're in relationship with each other. you can take no pleasure in the fact that the hole in my hand, what's going on now is a fight without a premise, in fact, it's a fight without a positive outcome that's even possible this leads nowhere this is nothing more than a symptom of the problem and so i don't think that this is a separatist movement we need to put nut cases in jail we need to do what mayor of atlanta, black mayor of atlanta said to black leaders, i respect your protest, do that. when you start rioting, i'll put you in jail. stand down we're the city of civil rights how dare you now, if a black leader in atlanta can say that to black people, then surely my white brothers and sisters can say that to their fellow white brothers and sisters wrong is wrong, right is right

i think that there's no vision here, andrew dr. king can go to a mall and say i have a dream that gdp will grow by 2% each year he said i have a dream we need a decade of infrastructure that will put people to work who have a high school education, and rebuild our infrastructure we need a decade of internships, and i'm talking about millions of entrips that repair the ladder from high school to opportunity. like the marshall plan, after world war ii we need education for all, and we get the majority of people who have a college education right now, just under half have a high school education, the leaders of the free world, and have half of your people with a high school education. financial literacy for all i'm already working with leaders on trying to get legislation to fund financial literacy, so people understand the capitalist system they watch this program. they don't know what you're

talking about because they were never taught how the system works, wealth works, they want to tear it up because they don't understand how to build it up for themselves i reject a separatist movement it doesn't even make any sense to me. >> john hope bryant, i want to thank you this morning for putting this in context, and for offering a plan and maybe some hope as well, and we always appreciate having the opportunity to speak with you and especially on days like this thanks, john. >> yep thank you, andrew. >> very very much appreciated. >> thanks, john, thanks andrew we are approaching 8:00 a.m. eastern. about 50 seconds, 40 seconds or so capitol hill is quiet. as you can see there futures are higher this morning, now up triple digits after yesterday's violence in washington, and we've got all the angles covered for you mike santoli is going to join us in just a moment on the market

reaction or lack thereof. lack of a downside reaction. it did go up and first, though, let's get back to eamon javers and the latest from the capitol. it's a loaded term now when we say the capitol. back in d.c., eamon. >> that's right. look, the constitution and rule of law in america came under violent attack yesterday here in washington, d.c. but at the end of the day, both held fast these were the words of mitch mcconnell the senate majority leader who will be vacating the post in the wake of the democratic election in november and the follow up runoff earlier this week. mcconnell addressing the senate chamber just after rioters breached the perimeter of the capitol, stormed the chamber, and desecrated the capitol grounds. here's what he said. >> the united states senate will not be intimidated

we will not be kept out of this chamber by thugs, mobs or threats. we will not bow to lawlessness or intimidation. >> reporter: shortly after that, the senate continued counting the electoral college votes in the constitutional process that was interrupted by the violence and rioting in the senate chamber. they moved forward with that process into the wee hours of the morning, ultimately officially declaring joe biden and kamala harris the winners of the election in november according to the constitutional procedure that was followed last night. shortly after that, minutes after that final determination was read aloud by mike pence, the vice president in the house chamber in the joint session of congress we got a statement from dan scavino, the social media director of the white house. he put out a statement on twitter, the president of the

united states has been banned from twitter this statement posted on his account under the president's name saying even though i totally disagree with the outcome of the election and the facts bear me out, nevertheless there will be an orderly transition on january 20th the statement goes on to defend the president's arguments. this is the first official concession we have seen from the president of the united states it doesn't come on camera. it doesn't come in the president's own voice. it doesn't even come from the president's own twitter account. we can't assure you at this hour, joe, that the president saw and authorized that statement before it was released on twitter last night. kwh what i can tell you is a number of white house staffers resigned in frustration with the president's conduct yesterday. a number of staffers are considering resignation into this morning we may see continued fall out from that from the white house there are conversations at a very low level we're told about the 25th amendment, and removing

the president from office in response to his behavior yesterday, and conversations on capitol hill about an impeachment effort both seem embryonic at it state, not moving forward in any serious way as of right now, given the logistical and timing hurds. -- hurdles. i have spoken to people deeply concerned about his mindset. there are deep concerns about the president's sort of appreciation of the real world at this point. and what he will do given that he is in control of the most powerful government in the world. we're seeing an effort today to rally the country in response to what happened yesterday. we'll see a press conference from the speaker of the house nancy pelosi at 1:00 p.m she'll take some questions, and then we'll see where we go from here a new low moment in american

history, and now we move on, joe. >> i thought it was a bounce off the bottom when that tweet came out. that's something, and i think the market saw that as something as well because after yesterday, that was the question somehow what's january 20th mean at least there was that, and you make the right point, scavino, he should be able -- i mean, that should be from the president. the president knows he's going to say that, and hopefully we can assume that's the way it's going to work out. >> reporter: look, the president has the opportunity to issue a press release from the white house. >> you're right. >> reporter: he has a white house staff. he could call them and issue a press release but he would have to do that, right. scavino has control of that account, he can do that on his own. the president could call the white house press staff. one member resigned yesterday. he could go to the briefing room, and make an address on national television and say this he has not done those things we'll see what he does today.

>> we will thanks, eamon. and let's talk about the behavior of the markets yesterday, this morning and the days ahead mike santoli joins us now. kind of weird yesterday. i kept checking the dow to see what was going to happen, and it was a little odd and there's a lot of liquid clidtclity >> and the market did come off its highs exactly at that moment when the folks went inside the capitol building it's not as if the market was oblivious. what the market has been doing for months is hunting for indications there will be an acceleration in the economy. it found plenty in the democratic retaking of the senate arguably, and yesterday it just sort of continued on the premise that that was going to be the case and there was going to be an early transition in the white house. very steady uptrend we have seen recently yesterday's high, by the way, is something about 37.80.

as it's indicated, you open below yesterday's highs. that's talking around the edges of it. in terms of the market, how it's trying to price in the economic acceleration, take a look at the russell 2,000 against the nasdaq in the last six months there's a liftoff. this didn't just happen yesterday. before the november election, these are more sickly call, mcy remember how the narrative changes, joe, it was supposedly on october 30th, the market sniffing out a blue wave, and a split government, and now it's democratic control, not too extreme. whatever it is, the market wanted to go in the direction. it was seeing the inthis was gog to be the case seems like today it's going to be outperformed by the nasdaq. the volatility index is what you're seeing the concerns registered, atmospheric worries about things going on in

washington that are not directly financial. we did pop up toward the 28 area it's elevated relative to what the market has been doing, people locking in gains by buying downside protection through options. there's a lot of excitable activity in parts of the market, and maybe people are hedging ahead of 4th quarter earnings. i want to finish by saying this is not usual for the market to place to the side unsettling events that are going on outside of it immediate purview. the market went straight up in the last three years of world war ii we didn't know if we were going to win we have to keep those things in mind the market is not always in tune with people's mood based on the headlines. >> that's a really good point, mike because we have the benefit of hindsight but that must have been unbelievable. i hadn't thought of it that clearly. thanks, mike i know becky was going to thank you but that was an interesting point you made

beck, sorry. >> that's okay thanks, joe. with washington and the rest of america trying to chart a path forward after yesterday's violence on capitol hill we are joined by the founders of the bipartisan house problem solvers caucus new jersey representative josh gottheimer who's a democrat, and new york representative tom reed who is a republican, problem solvers, got more problems than ever to try and solve ticht. wh -- tonight. >> thanks for having us. it was obviously a very late night but the election was certified around 3:30 in the morning after as you know, lawless thugs stormed the capitol, tried to up end our constitution and democracy, and the results of the election. they failed. they failed to obstruct our democracy. i was in the house chamber when they stormed it.

it was upsetting is a massive understatement couldn't believe what happened in our capitol yesterday but at the end of the night, tom and i stood together on the house floor and delivered remarks about how we have to come together as a nation, and 13 days we'll have a new president. president-elect biden will be sworn in, and we'll have a peaceful transition of power. >> congressman reed, that message of unity is one a lot of us are searching for right now how was that message met by the other congressional people on the floor? >> i have to echo first of all that yesterday was one of the most heartbreaking moments in my life, watching an institution i love being attacked, and that's not only congress, that's america, and i tell you, i went to the floor last night to speak, had my five minutes, opposed the objection to the electoral college, and literally walked across the floor to my best friend in congress, a democrat, josh gottheimer, and

we stood together, and i couldn't have been prouder to stand together as a proud republican and him a proud democrat, and tell my colleagues in the chamber, this has to end. we are one nation. we are proud republicans and democrats. but we will not let america die on our watch, and what i saw yesterday, an attack by a mob on our country, and the resounding support i got from our side of the aisle, as well as the democratic side of the aisle, and josh received the same, and we embraced as american citizens last night was heartwarming to me by the end of the night, and everybody out there today should wake up today and say you know what, we start in a new era. we start in a new era where our nation overcomes what happened yesterday stronger and more committed to democracy now more than ever. >> a lot of the people we talked to think that the problem

solvers caucus, you two and everyone who's joined you in that caucus is going to have a stronger voice just because the margin is so slim between the democrats and the republicans in the house right now. i certainly hope that's the case and i certainly hope your message of unity gets out, but congressm congressman reed, there were 138 of your colleagues who voted to overturn pennsylvania's electoral college results last night. were you surprised to see that after everything that happened yesterday. >> to be honest, yes but that is democracy. it tells you it's not perfect, even after a moment like that. we still have a lot of work to do we in the problem solvers caucus, will be 56 members strong with leadership like josh gottheimer on the democratic side and the 56 members equally divided at 28 democrats and republicans to governing, and with a slim majority of only four members difference in the house, we are not only going to

impact the policies of america's futures. we will put the american people first, influence the process of the house to make sure that extremism is kept in check, so that what we are doing is the people's biusiness and not the partisan politics that has divided this country for way too long. >> you know, it's not democracy to some extent when this happens. it's representation from 435 house members and 100 senators doing this, but it was to overrule the electoral college based on the actual democratic vote from millions of americans. i mean, that's the one thing that kind of catches me on this, it wasn't really democracy. >> i totally agree with you, and josh, please >> no, i was just going to say, becky, you're right. and it failed, right, it was an attempt to offend and overturn the outcome of an election, and it failed miserably, and resoundingly, and i think the

country spoke, and the fact that tom, you know, walked over to the democratic side, and stood, when we stood together, just tells you the kind of person he is you know, to say this is unacceptable what happened yesterday is un-american, there's no place for it. this is not how we, you know, standing -- you can protest in america, which is about what we are, but you don't storm the capitol to try to upend the election that to me is the last thing that represents the values we stand for, and now, becky, to your point, we have to move forward, and in 13 days, we'll have a new administration. we have to come together to get things donefor the american people, and i know tom and i and the problem solvers caucus working with colleagues in the senate, a bipartisan group of them will focus on common sense solutions that we've got to get done we have a lot of work to do. and an economy in a very fragile

state. >> let's talk about that very quickly, josh. what are the first goals that you all are going to be pushing forward. obviously the pandemic's front and center, if you had to pick maybe three priorities beyond the pandemic, what would they be >> i think of course the pandemic as you point out especially in the state and local, and we've got a lot of issues that continue there i think infrastructure is something that we have been talking about is an area where we can find agreement and obviously you can borrow low costs right now, and low rates, and it will help stimulate the economy and jobs we have talked about taking action on the health care front, and, you know, i defer to tom also, but there's a lot of interest in getting right to work, and working in a bipartisan way, and getting as you said, becky, we've got a very slim majority in the house, and obviously in the senate as well now it's going to take us democrats and republicans sitting down and

working together to get things done common sense things that the country wants us to get done, and by the way -- >> you're from new york and josh -- sorry, go ahead, sir. >> i was going to say, reinstating the state and local tax deduction is at the top of my list. >> you're from new york, and josh is from new jersey, you guys have 57 members in the problem solvers caucus is it representative of the rest of the country is this something that's pretty broad based or more of an urban or kind of coast based situation? >> that's the beauty of this caucus it's four years strong when we founded it four years ago. we wanted it to be diverse we have members from the east coast, west coast, north and south of the country and what we have done, put together members some of the farthest left districts, farthest right districts, we're a lot of

moderate centrist individuals, but the commonality is we're pragmatic. we recognize how you work forward, work with tip o'neill, find that common ground and 80% is not a defeat it's a victory, and you continue to debate to support the hearts and minds of people to support the agenda that's what we are so proud four years worth of work we trust each other, we speak to each other out of respect, and we vote as a block when we get to that 75%. when you can bring 58 members of congress to the floor of the house united and voting as a block, you can influence the agenda when you have a four member delta between the democratic and republican majority. >> gentlemen, we wish you luck and we would love to hear updates from you because i think you're going to have an awful lot of sway. congressman gottheimer, congressman reed, we want to thank you for your time today. >> thanks, becky. >> thank you, becky.

>> thanks, beck. coming up, when we return, "new york times" foreign affairs columnist tom friedman is going to join us, talking to us about the context on the shocking scenes we saw in the nation's capitol yesterday. > carlyle group's cofounder, david rubenstein is going to talk about the response from american business leaders. stay tuned you're watching "squawk" right here on cnbc

coming up, twitter and facebook locking president trump out of his own account, and twitter threatening a permanent thlastn. e te details coming up next ♪ ♪ ♪ ♪

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social media platforms taking unprecedented action to restrict president trump from using his own accounts following posts yesterday, and julia boorstin joins us now with more. hi, julia. >> good morning, joe twitter took its biggest step to limit president trump's reach for the first time locking his account, now twitter said he can not tweet to his 88 million followers until 12 hours after he deletes the tweets and warns that he could be permanently suspended if he continues violating policies against election misinformation. facebook is blocking trump from posting for 24 hours and is moving any posts that suggest the storming of the capitol, including trump's video about the protests, and misleading posts about election results and you tube removed the president's video as well, alleging fraud saying it's removing any content that breaks

its rules. now, these platforms are also drawing criticism for serving as tools to organize and incite yesterday's riots. a facebook group called red state secession asked its 8,000 followers to share the addressesovaddresse of enemies, including members of the congress an early investor in twitter tweeted that jack dorsey, and facebook's mark zuckerberg have blood on their hands, and former security chief criticized facebook for not silencing trump sooner joe. >> that begs the question, i think, so does parler benefit from this, or is parler, i don't know, that would be a home maybe to at lot of, i don't know whether you call untoward element, but parler, does it get thrown in with all the protesters or does it become a place where you go if you want to express yourself from that point of view? >> parler, which has been a home

for the right wing conservative viewpoints, the people who have been frustrated that they say that facebook and twitter were censoring them, of course facebook and twitter have said they are just following their rules. parler did see a big leap in users around the election, around complaints that there was censorship there i would expect parler to see some growth but it is still much much smaller than a twitter and certainly than facebook. we are waiting for numbers from parler to see how this impacted their user base. >> julia, thank you, appreciate it very very much. we will be seeing you soon meantime, joining us right now is tom friedman, "new york times" foreign affairs columnist, to help put some of this in context and get your thoughts i would love to also get your thoughts, tom, about this moment in history in the united states but also the role of business

and the way business leaders should think about this. >> thank you, andrew it's good to be with you i think the most important thing right now, andrew, for the country and for the country going forward is that what happened since this election, and what happened yesterday in washington, d.c., not be normalized we don't just say, well that was a bad day or we don't just say, you have to humor trump after the election we don't just say it was a small minority that was not that was an insurrection inspired by the president and enabled by many many of his enablers in his party who did not draw red lines long before when they should have. that cannot stand. so my hope would be, my hope was that business leadership in this r country, but most importantly, i hope that the republican leadership in this country would get a group together, go down to the white house this morning and

tell president trump that he must resign immediately or republicans will join in impeaching him if we do not draw a red line under what happened yesterday, god save us. >> do you think that's realistic? do you think that's probably at this point >> we know from reports that republicans are talking about invoking the 25th amendment. for the cabinet to basically ouster the president, i don't think any of it's likely that said, i certainly hope shareholders, if you're listening to this show tell every one of these companies with political pacs that you will sue them if they give donations to the people who supported this insurrection in the congress these people need to wear the

scarlet letter seditious as george will argued for in his column this morning. these people were engaged in an effort to undermine the constitution, to supplant the will and votes of the people by an act of congress based on a gigantic lie and i think people like josh hawley and ted cruz are traitors and they should carry that label forever more, wherever they go, and i hope shareholders will tell companies if you use your pac to support these people, we'll sue you. >> tom, question about business and i wonder whether in retrospect and it's not even retrospect to me, but whether you think a bargain was made between the business community and the president over the past four years and i'm not just talking about the enablers, who publicly spoke on behalf of the president and supported his

campaign, i'm talking about so many of the ceos who privately would say, and even snicker at the president or say how uncomfortable they were, but then would stand either next to him in a photo op or frankly just be silent, and at a time when we're talking about values and social responsibility of business, and leadership, how we should think about that in the end. >> you know, donald trump, you know, never stopped at red lights he never stopped at red lights when he was in business, and he certainly didn't stop at red lights in government and simply too many people in his party and in the business community and in the media did not call him out on that and it ended up yesterday in what happened in the capitol when you allow someone, andrew, to get away with bald face lying, and when you allow them

then to do what trump did, to get away with a big lie, a nazi scale big lie that we just had an election, the results of which were affirmed in many cases by republican secretaries of state by republican judges, by republican dominated supreme court. and yet trump was there in skp still is this morning saying i won, it was stolen if me that is a scale of a big lie that we have never ever seen anyone perpetrate in the history of democracies around the world, let alone in the world's most important democracy. and it was enabled by too many people letting him get away with little lies from beginning to end, and that's in the media, that's in business, that's in academia, that's in politics, he had his enablers from beginning to end. >> tom, i want to press pause just for a quick moment. i hope you'll stay with us steve liesman has breaking

economic data, and i want to get to that and come back to you in just a second, steve. andrew, i'm sorry, the servers here are a little slow this morning i'm waiting for the moment where the blue line that shows the page loading to come up right now. it looks like it is right here claims, 787,000, is that the week of -- i'm sorry, this is a week earlier this is the wrong stuff. i'll toss it back to you, andrew, and you can come back whiff t-- when i have the numbe. i have it now, andrew, down 3,787, unemployment rate, 3 1/2% come back and i'll get you the data on the total unemployment it's around where the economists were expecting, still a very high number. back to you. >> all right okay thanks, steve. hey, tom, the next place i wanted to go with this, what you think happens next, not just over the next ten or fifteen days as we get to the

inauguration, and may or may not be what happens in between but what you think is going to happen in this country in the future, the president putting out a statement by all accounts from him effectively suggesting this is the beginning of something, not the end of something, and how you think that and what you think that looks like. >> you know, andrew, to maintain a democracy, our democracy is built on two things, truth and trust. we have to agree on what's true. otherwise we don't know what road to go down. if we don't trust each other, we can't go down the road together, and we can't get anything done basically what's been eating away and beginning to destroy our country is we have normalized and monetized the destruction of truth and trust you had a report on earlier about facebook, twitter, you know, you tube, now, you know, taking action. these people have been monetizing the destruction of

truth. and for many, in so many cases, we have normalized it as well. if we don't find a way to address that, we're going to have -- i don't see how we're going to be able to make real progress in the next four years. what i have written and what i hope is there were a lot of principled republicans, principled conservatives, who from the day after the election stood up and told the truth. they told it in their party. they told it in their states they told it in the courts they told it in the supreme court. i do not see how a mitt romney, you know, or some of the more prominent and outspoken principled republicans go back into a party tomorrow with the unprincipled josh hawley, and ted cruz, who they have accused of insurrection. and my hope would be the principled republicans would break off from a party that has become a trump cult, and would start their own principled

conservative movement. if they did that, andrew, tomorrow, they would immediately become the swing faction in the u.s. senate and in combination with your previous guests, the problem solvers group in the house, which is principled democrats and republicans working together i think we could actually get some big things done but this party, this republican party is going to have to have a reckoning because if you look at what liz cheney said about her colleagues in the house who went along with this trump effort, when you look at what cruz said, when you look at what ben sasse says, i don't see how they stay -- how they work together my hope is that we'll actually get a problem solvers faction in the senate and in the house and maybe can make progress on some big issues like infrastructure that said, i'll just add one

more thing, andrew, we have a huge problem now we have talked about it, you and i. you've talked about it on the show we have people living in completely different information universes. different e miuniverses. i don't doubt that the protesters at the capitol yesterday actually believe this election was stolen from trump they believe that because of social networks, because of talk radio, because of politicians who fed them that information, and they live in that universe we have people on the left who live in completely different universes from me, frankly, let alone from people on the right and this is a general problem for which i do not have the answer if we cannot agree as a society on what is basically true without truth and trust, we

cannot thrive as a democracy ever again i don't have -- i don't know what is suspicioned to fix that, but i know what is necessary when i see facebook announcing we're going to adjust our news feed so it will elevate more credible news for the two weeks before the election, and then after the election turn it back to what it was, that is outrageous you mean, you have told us you can dial up and dial down the elevation of more or less credible news, and you're not dialing it up to 100 all the time no, they're not because mark zuckerberg would lose money if he did, and what is going on with fox news, enabling people who went out and accused these voting machine companies and software companies of perpetrating a fraud so much so that these companies sued them or threatened to sue them and knuckle heads like maria

barataroma and lou dobbs had to read out the truth in order to avoid being sued how do these people have jobs. this isn't a joke, folks, if you think it's funny, rerun what happened yesterday, because what happened yesterday was people who were fed lies. they were fed lies over and over by people who profited from it >> hey, tom, i spoke with a very smart and thoughtful leader yesterday who pointed back to the message of unity, the same thing as the problem solvers kaus kus, hoping to get reasonable people in both parties. and he pointed to ulysses grant, who chose not to go after former general lee and the confederate troops even though he had been

fighting with them, slugging it out, losing men to them, and really fighting fist to fist for years, chose not to go after them to try and bring the country back together and to have that moment of unity. two minds of this is one is you want to push back where you hear these things, the other is you want to try and heal and heal the nation, and i just wonder how you come down on that, where we move forward, how we move forward, and what that message should be and who should be giving it >> becky, it's a really good question i was thinking about it listening to your show this morning, again, i do believe that republicans should demand that the president resign or that he be impeached because i think there has to be just a huge red line drawn under what happened yesterday that said, when he leaves office, i let him be on his own. i think he will shrink

i certainly would not be banning him from twitter or facebook unless he violates their rules but the most healthy thing that can happen is that donald trump not be turned into a martyr and be allowed to shrink to the puny size that he really is and i think he will after he leaves office, especially in light of what happened yesterday, so i would be very wary, becky, about doing anything that will elevate him, and also create precedence that could get very complicated down the road >> okay. tom friedman, thank you. it's always good to see you, especially during these moments. >> you all as well thanks, andrew >> let's get to cnbc headquarters, jim cramer joins us now jim, one of the things we have been talking about, back to the markets just briefly here.

you saw yesterday people scratching their heads, it was up i have been trying to figure it out. it's like the markets are bigger than every individual obviously, and the markets don't necessarily have a conscience but the market is made up of a bunch of individuals, all of whom have consciences but then again there's so much trading and everything else going on, that maybe it is machines. maybe it isn't individuals anymore, but how do you put that together to decide, wow, it's really agnostic to these new backdrops, and just does its own thing, goes up again today. >> i think you're right about the idea that it's machines. if you listen to all the people from 5:00 a.m. and on, you're hearing inflation trade, sell tech and buy the industrials because they're allegedly valid. they have moved up so much, it doesn't seem like value. you don't buy north book 6, 7

points, caterpillar up 9, 10, 11 i don't want to say the market is immune. there's individual stocks that are way too high, but they're in the value side, not the tech side, so you see it come back. i think people were stunned, the individuals were stunned, joe, as you and i were, your whole team is, but the machines don't get stunned because the machines don't have a conscience. i don't think that the market is divorced i think there's a lot of companies doing quite well, but i think the machines are divorced they didn't see what was happening in the capitol they weren't shook like a lot of the guests that you've had this morning because in the end, again, they are machines and they don't think they just do >> i think i've called you a machine many times >> any machine broke yesterday when i watched what happened. >> your machine needs three hours of sleep, and then it's set on ten, and then it gets another three hours of sleep.

>> i'm proud of that, but i watched yesterday, obviously, i don't know how much to add, i mean, everybody feels pretty much the same, except for we have to figure out what the goal is i heard tom friedman, and there's a lot that i agree with, but we have to go forward, we have to go forward does that mean we go forward in the stock market my goal is to help people make money and not lose money in the context of what happened yesterday. i'm glad there's a blast zone that i didn't have to come on and talk about it. it would have been crude to do so that's the word i have been searching for. >> hard to exile half the country, i guess anyway, 25 states. >> it's good to be back after a quarantine, and i urge people to take quarantine seriously. don't try to cuff that i thought becky's comments about we hadn't talked about covid for

a long time. covid is very much in front of us, regardless of what happened in masks people must take quarantining, i don't feel safe here so i think people should not feel safe. >> jim, thank you, machine, see you later. beck thanks, joe. joining us right now is david rubenstein he's the cofounder and coexecutive chairman of the carlyle group, and david, i want to thank you for joining us this morning and coming on. we have had statements that we have heard from lots of ceos, lot of chairmen, business leaders, but quite frankly it's been very difficult to convince any of them to come on air and talk understandably, they're trying to sort out what we saw yesterday. understandably, they do have concerns about what their customers are feeling and i just wonder why did you agree to come on with us this morning. why did you think that this was so important

>> i think it's important for the business community to make it clear that we are americans who care about the democratic process. profit isn't the only thing we care about we care about our system of democracy working well i have been very involved in democracy related matters for quite some time, and to me, it's clear that democracy had a bit of a melt down yesterday and we need to fix the system my view is we should have a commission to figure out how to deal with the problem of the security with the capitol. that's easy to say we can have the security, the commission doesn't analyze that i think we should also have a commission analyze how we can include the democratic voting process. for example, it's not a given in the constitution that the vote count has to occur in january. you could have a certification right after that or within a week or two. it was set up this way in the 1870s when it was harder to get things community katcated. we can see what happens. it enabled people to foster

agitations things like that. i think the remaining days of the administration, we don't have to worry, i think, about national security. i think the national security apparatus will work well i do think we should take a longer term perspective to make certain that we become a beacon for democracy and not a laughing stock, and that's what we've become today. >> david, there are a lot of questions about the integrity of the election, and again, those were things that were propagated by the president, and by some politicians and by some areas of media, and by social media how do you convince the americans who have bought into this idea that this is not a legitimate election, that they're wrong, how do we do that would you recommend a commission that looks into the election process as well? >> the election process, remember, we have an election process that was put together hundreds of years ago. it's been improved somewhat over

the years. still, it's a bit antiquated, but most importantly, we should remember the big lie theory, and what that is the big lie theory is that if you say something long enough that's so outrageous, people will say it must be true because why would people say something so outrageous. we have been engaged in a big lie theory there wasn't fraud of any measure or magnitude in this election nobody has found that. no court has found that. it's a sad situation nothing we're going to be able to do is to correct the fact that you have a 55/45 split in the country. presidential elections do not tend to be 70/30, they tend to be relatively close. this election was not a landslide in the sense that ronald reagan had a landslide in 1984 or lyndon johnson in 1964 this wasn't a landslide. i do think that the country needs to heal. we need to get the best leaders

that we can in the country to come together. some distinguished american should head up a commission on the election process, and another distinguished american head up the commission on how to deal with the security or the capitol in the entire federal government the remaining days of this administration, i think it's important that the country be assured that in the event of a national security attack of some kind, we should respond and people that control the military and military leaders should be affirmative in that. i don't think in the end that resignations are going to make a big difference right now i think most importantly is we work towards january 20th make certain a new administration can take over and deal effectively when it does effectively get power on january 20th. >> we have watched the markets move higher this morning after gaining about 450 points yesterday for the dow. as somebody who is a business leader, looking behind the scenes and making decisions about whether to buy or sell companies and do things. has it made any difference to

your approach to things? >> if you were to come into mars today, and say given what happened yesterday, and yesterday is something that will scar everybody's memory for quite some time. we remember where we were in john kennedy's assassination, 9/11, and what happened yesterday. people would say the markets will go south because it's so uncertain of what's going on the truth is markets are smart, and they recognize that we have certainty going forward, there's predictability we'll have a new presidential, and i think what markets want is predictability and certainty and that's what i think happened yesterday or this morning with the vote to elect joe biden or confirm the vote to elect joe biden. wouldn't be surprised if the markets go up because i think the certainty people want in the markets is now there for sure. >> we have heard a lot of condemnation from business leaders in the statements they have put out saying this can't continue we have also heard calls for businesses to make sure they put

their money where their mouth is on this front, and they don't work with politicians trying to upend the drartemocratic proces. do you think any of that will play out or do you think this too will pass? >> between now and january 20th, the focus ought to be to get us there as safely as possible, and without uncertainty about where the markets are and where the congress is and national security apparatus is. post january 20 is a time, our democratic system works pretty well but it's never been perfect. we have had problems before. nothing quite like this, but i do think a real examination of how we elect presidents, how each state certifies the election how the voting process can be improved is warranted and i think everybody would agree that something can be done better than what we're doing right now. >> david, you have mentioned three or four times just in the last few minutes that, you know, we need to focus and keep our

eye on the ball over the next 13 days before the inauguration of joe biden. is this a serious concern that people in washington are really gaming out at this point, what can go wrong in the next 13 days >> foreign enemies always want to advantage of weak spots right now the united states looks a little weak overseas if you're planning a military attack, i'm not sure that's probably something that is going to happen, but a cyberattack is something that maybe we're more vulnerable than we were a few days ago we need to be careful and i do think that if the democrats and republicans can work together for a change, that would be a good thing for the country and the markets would like that. let's see if over the next 13 days if democrats and republicans in the congress and around the country can say we have a higher priority which is to make certain our democratic system works and works well. that's the highest priority. democracy is something that fought for, many people have given their lives for this

democracy and i think over the next 13 days we can put aside some of our differences, come together and i think the leadership in congress, the democrats and republicans really want that. they have been through a scare yesterday. and a scare they're not going to forget for some time i think if they want to really help the country, they ought to come together and make certain through statements to the public over the next day or so that the country is working well, and that the system of democracy we have is not perfect, but it is working well and will get us through the next 13 days and hopefully the next four years at least. >> david, question for you, so many of the comments and statements that have been put out by business leaders have condemned the events of yesterday, but have not condemned the president. in some cases with the exception of the manufacturers association which call for the impeachment or 25th amendment to be considered, would you condemn the president on air right now and do you believe he should either be impeached or the 25th

amendment should be put in place and used right now >> the 25th amendment was set up for a different purpose. that became the law in 1967 and has worked in some cases, for example, when a vice president resigned, like spiro agnew and we had a new vice president come in, gerald ford. but i don't think that condemnation today is the most important thing. it is easy to condemn somebody not very difficult to say, somebody has done something wrong, it is terrible. what we want to do is protect our democracy. and the most important thing that we should do is worry about what work going to do over the next 13 days, how to make sure the government works well, we're protected against foreign enemies, cyberattacks and other kinds of things and the next four years we make certain that we have a process that works better than this process clearly having a -- >> but, david -- >> -- counting votes is probably longer than we -- >> do you think you should have

condemned what was taking place before this then take the 13 days out of it what do you think tom friedman would say, there should be a red line put down right now on what took place so we don't ever have it happen again. >> i would hardly hold myself out as a perfect person. i'm not a public official and not a member of congress and so forth. but as a person in the business world, i wasn't happy with what is happening but i don't know my voice means as much as the voices of the people that have been elected to hold positions in government and so forth, or people that have been confirmed by the congress and so forth i think the most important thing now is to figure out -- >> david, david -- >> -- get through the next 13 days and make sure we have a healthy new administration >> david, but, here's the thing, this is the thing i've been trying to just grapple with all morning, you know, over the last several years, business leaders like yourself have talked about values and social responsibility, all of this. and it can't be that all of a sudden your voice doesn't matter on this issue, but it does

matter on the other issues that's the thing i don't understand >> well, i wish my voice mattered on all issues, i wish people would listen to me all the time i don't think they do. on certain matters they might. i don't want to make myself as a business person sound as if i have all the answers to solve the government problems. that's not the general role of business but business can do a pretty good thing in weighing in at appropriate times. i think the business community is weighing in now saying enough is enough, let's figure out how to get the democrats and republicans to work together, not worry about petty differences and improve the electoral process so this doesn't happen again >> okay, david, i do want to thank you for joining us this morning. as i said, it is very difficult to convince ceos and business leaders to come on and talk now, because they're still trying to weigh what happened yesterday. but we appreciate your coming on and for the very thoughtful ideas you have about how to change this.

we hope to be back in touch with you again soon to hear more about it thank you. >> thank you very much okay, back to the futures, futures now indicated up just under 100 points joining us, jim paulsen, chief investment strategist at the loo loosehold group. is it people or machines and i think back on a lot of the conversations we had, jim, and you try to versdivorce a lot of normal feelings and look at statistics and market history. and trends and try to base a lot of your decisions there. are you still doing that today at -- are you still bullish given all the backdrop of what we have seen this week >> you know, joe, i think the big elephant in the room is the economy. and i hate to say it is the economy, stupid, but i think that's the driving force here, will be throughout this year,

and, you know, tragic political event we had yesterday it is one of many we have been having, i think, for the last few decades to tell you the truth of just despicable, disrespectful behavior among both sides of the aisle. but the reality is, we grew 33% in the third quarter in real gdp, the fastest quarterly growth ever, we according to gdp now estimate we're growing around 9% in the fourth quarter. we just passed a $900 billion fiscal relief package that is going to hit in the first quarter, blooming disposable income, probably another blowout first quarter number i think we're going to grow the fastest that we have grown maybe in 35 years this year. and when you're doing that, with the policy support, and very low interest rates, very low inflation, i just don't know how the stock market can't probably keep going up. >> we have a better idea now, it is not a divided government.

it is -- i don't know what you call it, quasi divided, pretty close. anything in terms of the makeup of congress that was finally decided this week? anything there give you pause or you think that essentially it is going to be hard to do a lot >> well, i think for 2021, probably not going to be a lot done more than just maybe additional stimulus, making sure we do get the economy back, that we get covid behind us, and i don't think there will be much else that will be passed this year there certainly could be more influence of a tripower when we get to 2022 or 2023. but i really think the biggest risk and issues we may deal with is the abuse and overuse of policy monetary and fiscal, and what are the long-term implications of that, we're going to solve

our short-term problems, no doubt here, but will there be latent fallout, maybe unintended consequences from that, whether it is inflation, whether it is overheat, whether it is necessity to raise rates much faster than we would have had to do it otherwise. whether we have to raise taxes very significantly whether there is a loss of confidence in economic policies in general all of those could become significant issues in 2022, '23 and beyond i think this year, the economy is just going to overwhelm most of those concerns. >> and you're okay until rates hit 3% that's not going to be what puts a governor on the upside for the dow? or for the averages? >> yeah, i think it is going to be a bloody year for the bond market i think the ten-year yield, consensus expects it to go up to 1.25%. i think it may go up to 2.

i think it may be one of the worst bond markets we had in a long time. rising yields will add to the sense of rebuilding confidence, of rebuilding the economy, maybe fueling animal spirits more than anything there is a lot of concern today that sentiment is so high. i think it is. it is very strong by all indicators think about this, if it is -- if all the indicators are off the charts today, where are they going to be this fall? this fall, we're going to have most people inoculated, and covid cases, hospitalizations and deaths are going to fall away, and people are going to be free again to roam, to social gatherings, entertainment, leisure and travel, and industries that were killed last year are going to restart and jobs lost are going to be regained, the sun is going to come out in a big way on both wall and main, simultaneously. and where the most job losses were in low sorcial paying jobs come back, that will come down

faster, my point is, if you think sentiment is too giddy today, how giddy is it going to be by the fall. >> the sun came out this morning. probably will come out as you say in the future as well. can do it today. thanks, jim. we appreciate it we're out of time. futures are up again that will be new highs, i think. we'll do it all again tomorrow unbelievable make sure you join us tomorrow "squawk on the street" is next good thursday morning, welcome to "squawk on the street". i'm carl quintanilla with jim cramer and david faber the world reacts today to one of the darkest days in the history of our democracy futures resilient, but more important this morning, we'll talk about how u.s. assets and corporate leaders will adjust to yesterday's assault. our road map begins with the historic moment for american democracy, congress confirms joe biden as president-elect after a trump-fueled mob