good morning boeing telling airlines to halt some 777 flights after united airlines flight suffered engine failure during flight. the faa is now invest gating. house democrats plan to push forward a vote on a $1.9 trillion covid relief package. the biden administration announcing some changes to the payment protection program. follow the money new rankings have morning on the most successful hedge funds. those guys we'll bring you institutional investors' 20th annual rich list it's monday, february 22, 2021 "squawk box" begins right now.

. good morning, everybody. welcome to "squawk box" on cnbc. i'm becky quick along with joe kernen and andrew ross sorkin. i just heard brian wishing his mother a happy birthday. we would like to add our well wishes to mrs. sullivan, too happy birthday let's take a look at u.s. equity futures this hour. you'll see there are some red arrows dow futures indicated down by 182 points s&p futures off by 28 and the nasdaq down by 163 the s&p and nasdaq had losing weeks last week for the week ended two-week winning streaks but you're still talking all three of these major averages within 3% of their 52-week highs and also talking about all three being ahead of their 50-day and 200-day moving averages. we have seen some serious gains but red arrows treasury yields becoming a big part of that as the yields have moved up, that has made stocks a little

less attractive relatively speaking check this out look at the ten-year note. it's yielding 1.69%. we're on our way towards 1.4%. we'll continue to see how this ticks out. andrew >> thanks. let's talk about today's top corporate story. it follows that scary incident involving united airlines flight over denver. a flight bound for honolulu experienced engine failure shortly after takeoff and was forced to make an emergency landing. you probably saw the images over the weekend. united says it will temporarily ground 24 of its boeing 777 jets meantime, boeing is now telling customers to stop flying certain 777 aircraft equipped with the same pratt & whitney engines u.s. airline is the only type with this engine in its fleet. the faa will order inspection of some jets.

concerning images. there have been problems with the 777, similar situation actually just in the past two years now. of course, this will raise more questions, both about boeing in some instances and perhaps pratt & whitney as well. joe? >> yeah, that's got a lot to do with the dow, obviously, when boeing's down $7 or $8 the previous 777 problems were pratt & whitney problems, andrew, or 777 problems? >> yes, they were. i think they were pratt & whitney problems >> yep one of the two -- i think there's three major producers of the engines, rolls-royce and general electric and pratt & whitney. we'll get to our bitcoin check du juour smashing more records over the

weekend, topping $58,000 some major cryptos this morning -- that's interesting. we'll start showing you more than -- we don't want to be -- just single out bitcoin. elon musk questioning the price of bitcoin after its market value surpassed $1 trillion on friday musk tweeting over the weekend, the prices of bitcoin and ether do seem high, lol. oh, that's his lol i was saying -- oh, no that's his lol but if you want to add an lol or don't add an lol to that that was friday i think when he did it or friday night it's down this morning, as you can see and it's actually come back a little bit. he didn't say that late last night. it held above 57 or 58 after he said that so i don't know what you necessarily attribute this morning's move to. it made such an incredibly ridiculous move over the past month or so.

earlier this month h tesla announced it bought $1.5 billion in the crypto, and revealed it plans to accept it as payment. they must have pretty good -- booked a pretty good profit -- not booked it but have paper profit although the stock is down this morning. wedbush security dan ives estimated tesla has made roughly 1 billion in paper profits from its investment and bitcoin, which would be more than it's made in its normal course of business probably cumulative and he suggests the company is on trajectory to make more from bitcoin profits than ev cars in all of 2020. >> you will remember, there was a time when he talked down his own stock price before and without success. he took to twitter once and said he thought tesla shares were

overpriced and here they are. i'm not sure that the tweets will have an effect. >> but on twitter, remember -- >> not after talking it down with lol. >> maybe not but the real one is when -- remember when he was talking about production and said we should hit that and -- was it 420 or some weird -- remember that one this was like a marijuana reference. and people were actually looking at it to see whether that was -- on twitter it doesn't seem like it would be confidential information. but what happened? there was some type of settlement what did he call the s.e.c.? he had a moniker for what thos initials meant. >> short sellers -- i forget when he's talking about bitcoin, he may be an investor in bitcoin

but he doesn't control bitcoin it's not same as giving insider information when you're tweeting about tesla. that's the one significant difference about him tweeting about this and tweeting about tesla. >> right that's true. >> well, what's interesting, in certain cases -- in certain cases, and this is what's to interesting to me about bitcoin and how it's being used right now because there are corporate officers who are buying bitcoin personally, perhaps, or telling others that their company might consider buying bitcoin and then going public with it if, for example, people knew prior to paypal buying into bitcoin, people would determine that's material information, in the same way if carl a icahn wee to make a big stock, there have been cases brought successfully to suggest unto itself that could be insider information it's more complicated in this case because bitcoin is not a

regulated security in this regard that's why this gets a little interesting. >> it's only $1 trillion now >> it's only $1 trillion if it were to become a much bigger part of the currency markets, and if a corporate manager says, you know, i'm going to keep all my balance sheet on dollars and then suddenly the dollar rallies or if he says, we're looking at gold, i'm worried about all the money printing so we're going to put some of our corporate balance sheet in gold, i don't know if you would really say that's manipulating the price of gold the bitcoin has nowhere near the market cap of any of those things at $1 trillion but you wonder if some day someone wants to be in bitcoin and it's just a choice of what to put in their balance sheet in terms of currency and it's getting closer to that point.

not there yet. but you certainly wouldn't say, hey, this guy is juicing the dollar. >> i don't think anybody is really using this -- i still think it's a myth to think this is being used as a currency at all. at all >> maybe not - >> nobody is using it as a currency i mean, it's - >> they're not using it -- >> right >> they're using it as a currency alternative in terms it of what is the hold on their balance sheet. they may not be using it for transactions to buy or sell their products or to accept bitcoin. that's a small part of it right now but in terms of hedging their balance sheet in what people would see as the basement of the dollar, they're definitely doing that. >> dan revel over the weekend -- you remember, darren rovell who used to work with us, covering sports, he tweeted over the weekend, or maybe it was in the

last week, how originally some guy used $10 in bitcoin to pay for his pizza. this is way back when. >> in the beginning. >> if he hadn't done that, the pizza was $140 million or something ridiculous now >> we used to talk about it at 10 bucks, remember we talked about it at less than that that is $55,000 from $10, once again i would have to use my scientific notation, to get what type of return that is there's a lot of -- it's easy to do that because you just add the exponents, but counting out the zeros gets complicated now people are going to make fun of me for that hard to understand bitcoin if you can't do scientific notation someone said, wow, joe, you

really impress people learn that in middle school i go, really how many people right now could do scientific notation >> i learned a lot of stuff in middle school that i have forgotten. >> you think 10% maybe -- i don't know. our viewers, maybe 80% since we have the smartest viewers around that's why they're watching. 85%. >> exactly let's talk about some other corporate news this morning. there's a group of activists investors taking a 9.5% stake in kohl's "the wall street journal" reports the group is trying to take control of the board nominating nine directors. the activists include mckellom add virs and legion asset managers they teamed up to remake bed, bath & beyond's board.

when we come back, president biden making changes to the paycheck protection program. we've got the details about these changes next plus market watcher mark grant on rising interest rates and the impacts on the broader market first, though, we're going to take a break, as we do, check out this morning's biggest premarket movers you'll see american airlines up by 3.8%. freeport mcmoran and discovery up 2.8%. interesting because we have the head of discovery coming up with us in a little bit, david zaslov you're watching "squawk box" on cnbc it's hard to hope, hard to cope with crisis. so we get to work.

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welcome back to "squawk box. we have breaking news out of washington president biden set to make changes to the payment protection program >> good morning. the white house and small business administration are making tweaks to the way the payment protection operates that they say will allow more small businesses and minority-owned businesses to move up the queue with their lenders in aseries of policies announced this earning month, one is there

will be an exclusive period beginning this wednesday and going through march 9th where the sba will only accept applications from businesses with fewer than 20 employees the administration will also change the funding formula for sole proprietors and self-employed individuals and set aside $1 billion for those in low income areas. and beginning the first week of march, the administration is opening up loans to three types of business owners that had previously been excluded those are prior nonfraud felony charges, those whose federal student loans are delinquent and noncitizens who have a taxpayer id administration officials say these changes would remain under effect in the american rescue plan if it were to be passed they believe the mix of businesses who qualify or those who are actually able to reach these loans need to change but that the program doesn't necessarily need to be larger to that extent. the administration has only suggested a $7 billion addition

to the program under its current legislative proposal congress has authorized $285 billion to this program in the most recent stimulus bill. the white house says less than half of that, only $130 billion has been allocated applications for the program are set to end march 31st. andrew >> in terms of how it all gets out, just to be clear, it's not -- what you're going to see, i'm imagining, but i don't know this, is how are they -- let me take a step back how are they actually deciding which markets to focus on? what's the metric they're looking at >> we're going to look at what's exactly in the federal register when it comes out. we don't know the metric the sba will be focused on the hope is by closing the application in these two weeks to some larger businesses that are previously been qualifying

for the sba loans, they would allow some smaller businesses, which they say make up 98% of main street businesses to move in front of them and access those loans before the money dries out. as you can tell that statistic i referenced, the money is not necessarily a risk in this program because of the way congress wrote it. it's a little stricter for businesses to qualify. they have to prove they saw a material change in their business compared to last year there's an employee threshold they have to qualify for the paperwork hurdle this time around is a little tougher but the administration is trying to prioritize smaller businesses over those who are larger and may have well-healed attorneys on staff and accountants to help them manage the process a little better >> okay. kayla, thank you appreciate it. let's get to the markets right now. joining us is mark grant he's chief global strategist mark, i've been thinking about you as we've been watching

yields rise in the bond market for treasuries, i should say, as we watch the ten-year creep back up this morning it's above 1.36%. those are levels we haven't seen in a really long time. i know historically speaking it's not much but is there anything happening here that's starting to make you rethink your stance on the bonds >> well, becky, you're 100% correct. it's creeping up the cpi indicates inflation rate of 1.4 so treasuries are still less in other words, you're getting a negative return in treasuries. to me is the most interesting things that the high-yield market since it's about at its lowest level, right off its lowest level had in a decade, we're seeing corporate bonds tighten to treasury. you see treasury yields heading up and everything else, risk credit yields heading down and there's very little

appreciation of credit risk, for instance it's a very interesting time in the bond markets, which is why, as you know, i suggest looking at closed end funds and etfs where you can get much higher yields, double digit yields as opposed to straight bonds, which currently have almost no return. >> i know you have a new piece out this morning reiterating those thoughts on etfs and closed-end funds it's not something that's very sexy it's want something that a lot of people focus on what is it you would like people to focus on that maybe they're missing? >> you're right. it's not sexy at all i think everybody's portfolio, whether it's individual, university endowment, should have two components, two basic components one is appreciation, the sexy stuff you talk about on "squawk box" all the time. the second, which is not sexy, which is yield, which is some of

these closed-end funds, becky, as i said, you can get double digit returns and a number of them pay monthly, some quarterly, so it gives you a cash flow and a yield component of your investment strategy, which i think be is very important. not sexy true not sexy but i think it's very important, especially as people start getting a little older here. >> also not created equally. you point price, as with everything, the thing you have to pay attention to and you specifically say watch out for some of those who are priced higher than their net asset value. >> right i don't think anyone should buy these funds, you know, if they're appreciably over their net asset value. what it means to you viewers, if -- it's 5% over you're paying $1.05 for goods, which makes no

sense. these funds are complicated, not sexy, but if you can buy $1 worth of good for 93 cents and you have good assets in the portfolio, whether it's bonds, convertible bonds, equities or a number of different sectors these funds cover, then you're in great shape obviously, if you can pay 90, 92 cents for $1 worth of stuff, you know, you're doing well. some of these, like the equity funds in some of these funds have like amazon and google and all kinds of high-profile growth names and you're still getting this outsized dividend i think they're very attractive. >> you mentioned the price of inflation at 1.4%. do you think inflation is going to push significantly higher in. >> no, beck y i don't. i think what's going to happen eventually, not today or tomorrow, but eventually the fed

is probably going to come back in and lower rates the reason i think they're going to do this is there's going to be tremendous pressure put on during these stimulus packages to keep the rates in the united states government, the amount of interest it's paid, low. if you look at europe, you look at japan, switzerland, all kinds of places, they have negative interest rates i don't know if we're going to go there, but the other thing when we talked, for instance, about the ten-year, which is kind of the bellwether, which you were referencing earlier, if you look at shorter rates, even in the united states, you know, they're just off zero and i think the fed may get more active as the government under the new biden administration proposes more stimulus measures. i think it's going to be a very interesting political play we're going to be facing >> that is really interesting. gives us something to talk about the next time you come back. larry somers is saying he thinks the fed will have to raise rates

sooner than anticipated. maybe it's a game where we're really watching this again maybe not looking at low rates forever but trying to figure out what the next move is. mark, we'll have you back soon good to see you. >> good to see you as always, and everybody on there the whole gang >> take care >> you, too. >> i don't know about etfs, but those glasses are sexy that i can say you know, it's national margarita day. it's a monday. >> really? >> which seems -- yeah, i was sad. i checked to see - >> would it have been better on friday >> it should be floating that's my point. it should be floating. i checked, last year was a saturday actually 2019 gets complicated with leap year, but i think 2019 might have been a friday it should be a floating thing. it should be the first thursday or friday or the last thursday

or friday -- >> like thanksgiving. >> right it should float because this is a waste. i'm frustrated genuinely. tomorrow we have the 3:45 wake-up call it's a day that should be celebrated >> your desire to celebrate this day or your desire to get up at 3:45 tomorrow? we'll see which one wins out >> i may have to have one just because -- just to -- maybe a skinny margarita, which i think i have those anyway since i don't like the mix much. doesn't help because the alcohol is killer. coming up, new rankings. the most successful hedge funds. we'll bring you institutional investors' 20th annual rich list that's next.

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welcome back to "squawk box. institutional investor out with its 20th list of hedge funds, highest paid hedge funds received $32 billion in compensation in 2020, that was up 50% from 2019 top earner was millennium earning $3.8 billion his flagship fund up 26% last year his best return in 20 years. second place is jim simon of renaissance technologies he earned $2.6 billion, but his investors didn't do as well. outside investors were down 20% to 30% but their medallion fund was up

76%. simon retired as chairman on january 1st. meantime, chase coleman of tiger global came in third his big bet on tech stocks like zoom, peloton giving his fund a 48% return and himself a $2.5 billion payday one note in terms of how these things are cal lated and i think it's important to say this, this is not just the fee income that these hedge fund managers started taking in most cases, it is measured in part by including the amount of money they have invested in their own funds. people like so many have in invested in their funds have made lots of money over the last 10, 20, 30 years so, when you're seeing these numbers, part of it is the fee income, meaning the 2 and 20 in some cases it's less these days a lot is coming from their own income making money on top of it

meantime, when we come back on the other side of this break, this morning's top cpoteorra stories including reports of a regional bank deal we'll tell you about it right after this i made a business out of my passion. i mean, who doesn't love obsessing over network security? all our techs are pros. they know exactly which parking lots have the strongest signal. i just don't have the bandwidth for more business. seriously, i don't have the bandwidth. glitchy video calls with regional offices? yeah, that's my thing. with at&t business, you do the things you love. our people and network will help do the things you don't. let's take care of business. at&t. your daily dashboard from fidelity -- a visual snapshot of your investments, key portfolio events, all in one place. because when it's decision time, you need decision tech. only from fidelity. ♪ ♪ (grunts when swinging)

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in corporate news, m&t bank is reportedly nearing a deal to buy people's united financial. "the wall street journal" puts the price tag at more than $7 million. the deal could be announced as soon as this week, about he canny. i saw you -- i saw your excitement before -- with that tease going to break i called my kids and wife in here honey, get in here after the break we're going to talk about a regional bank deal. hurry. bring some popcorn i saw you kind of twitch, right? you were like, whoa. i was going to go to the bathroom but i'm staying, right? >> important news. >> got to do it. >> you know who's excited? you know who's excited like sandler, piper sandler. they're like wow, wow. someone worked on that, right? someone is working on that

it matters it matters i just thought it was -- i thought it was funny think if we were -- think if it was like "entertainment tonight," we'd have something totally where people really do go, oh, my god, who did that what anyway - >> it matters. you have to watch the regional banks being bought up. we saw a lot bought up in the last decade. >> yeah, that's -- >> when we come back -- it's true, right? when we come back, doctor scott gottlieb is going to join us with the latest on the covid headlines and there were a lot of them this weekend plus, a big lineup of guests still ahead this morning we'll be talking to former tennis pro maria sharapova, david zaslav, grammy award winner jay z, mohammed el erian, many more to come. we want both - we want a hybrid.

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welcome back to "squawk box. the world health organization investigating the origins of the coronavirus. that's the subject of former fda commissioner dr. scott gottlieb's latest op-ed in "the wall street journal. joining us to talk more about that and the latest headlines surrounding infections and vaccines, so much to talk to him about. dr. gottlieb, also sits on the boards of pfizer and ilumina

let's talk about this op-ed real quick. you come out fighting, effectively. you say the who, the w.h.o. has a real problem here. >> well, look, i think that they should not have bought into this theory that the coronavirus could have been spread by food packaging. in is a theory china has been advancing based on no evidence nowhere. no one outside of what china claims has contracted the coronavirus through food packaging. more than 100 million infections around the world what i'm told by people close to the w.h.o. process is it was stable steaks for going into china, that the delegation had to agree to invest great these claims but then to come out of china and lend further credence was unfortunate. the delegation will be called upon to dispel a theory around a potential lab leak, which has more credible evidence to support it certainly than food packaging as a theory of how this got into wuhan in the first

place, to the extent we need to rely on their credibility, i think this undermines it i don't think they should have bought into this theory. >> i have two more -- i don't know if they're more important questions but questions i'm very curious, i've been waiting all weekend to talk to you about one is these comments by dr. fauci suggesting we'll all be wearing masks irrespective of whether we've been vaccinated or not into 2022. do you agree with that >> i don't think so. i think they'll -- there might be circumstances where some of us will want to wear masks i don't think this is going to be linear, too dr. fauci also said he thinks things will be normal by december i think things will be normal by the spring and summer. i think in the fall we'll have to take certain precautions but we'll be back doing stuff. as we get into the deep winter, as this starts to circulate again, i think come december we may start to pull back that doesn't mean we'll have shutdowns and doing what we did this december.

it means we might not have holiday parties, board meetings might be zoom. this won't be linear progression over the course of the year where it gets better and then by christmas it's all good. i think this is a pathogen that circulates and when it comes winter 2022, we'll need to take precautions. if there are precautions we need to take over the next 20612 months t will be this spring and summer. >> that lines up with what got a lot of play over the weekend, and that's the gentleman from johns hopkins who pointed out. i don't know how accurate you feel these are, but that the number of cases that just have happened and people have recovered could be 6 1/2 times the number of cases reported you do that math and you get up to 50% or above herd immunity. you add the sa% of people who have gotten one shot i want to ask you about that, too, because there's the article that maybe one shot gives you

pretty good immunity but if you add 50 or 55 plus 15, they're saying maybe april this is much quieter in terms of transmission and hospitalizations and we're assuming and we could be nearing herd immunity. do you think those numbers are too high, that that doctor was estimating >> yeah, he's a good physician i'm not sure i necessarily agree with those numbers but i think the sentiment's right. i suspect we're diagnosing over the course of this, 120 million americans have had this. you start layering on the additional americans we're vaccinat vaccinating. it's at least 10% a month. we probably have more than 40% of the american population with some form of protective immunity they didn't have much of a winter surge, if you actually screen based on that when you get to 40% to 50% of the population with some form of protective immunity, you don't have herd immunity, but you have enough immunity in the

population that this doesn't transfer as readily. i think as we get into the warm weather, vaccinate more of the population, and in view of the fact that at least a third of americans have had this, i do think infection levels will come down dramatically over the course of the spring or summer b-117 will mean prevalence is higher in certain parts of the country. in the uk, b-117 started to take off in a linear fashion once it got to 20% overall prevalence. i don't think it will easily get to 20% overall prevalence in a short period of time here. when you look at states like florida, they already have 50% p prevalence going into this wave so a lot of people have already had it. >> dr. gottlieb, this is important. i'm glad to hear you say he's a good physician i spoke with him yesterday, dr. marty macary, he's a krebter on another network so he can't

come on with us and he laid out these things he says the phrase he wrote that it will be mostly gone by april, he wishes he could have reworded that but i think he lines up with what you've been saying. come spring, come summer, we'll be at a much more normalized pace the biggest thing he pointed out is we're looking at under-reporting of these cases, and then going to studies that have shown based on the antibody tests, he thinks those are under-reporting because the antibodies go out and you still have the t-cells his guesswork is based on the idea that even the antibody counts under-count it by half. it's not a crazy sentiment. >> the modeling shows we're probably diagnosing 1 in 4, maybe 1 in 5 when you talk to certain modelers who are estimating a little higher about a third of the american public has had this infection. i think the only caution here, and dr. fauci was on tv as well

talking about december being normal i just don't think it's going to be a linear progression. i think we'll have a period where it's going to be normal. and i think it's going to be like woodstock in america. i think people are going to be going out and doing a lot of stuff this summer, pent-up demand for consumer spending as you get into the fall, i think we're going to be taking certain precautions. if grade school kids go back to school, maybe you'll see masks in grade school. as we get into the deep winter, remember this is a coronavirus that circulates in the wintertime it's going to start to circulate again. you'll start to see people take precautionses. businesses start to take more precautions. it's not going to be a linear progression. this is a transition year, we're transitioning from pandemic phase to seasonal phase with this virus but it won't be binary we'll have to take certain precautions as with he get into the winter of 2021-2022. >> you mentioned kids. i had an interesting conversation over the weekend with some parents who have kids. we were all talking together about the following issue --

hopefully all of us adults will be vaccinated come this summer, if not sooner. but some of the kids may not, teenagers and the like may not obviously anybody under 16, some of those studies are still taking place my question to you is, as a parent, the parent, quote/unquote, may be safe the kids may not be. how would you think about sleepover parties, all the stuff -- anything indoors, all of the stuff people have been trying to avoid during this thus far? >> look, i think it's going to depend on what the prevalence is if we're in a low pref lens environment this spring and summer, i think i'd be comfortable allowing my kids to get back to normal activity as well and i would expect kids to be in summer camp and doing things that are typical of what kids do in the summertime. i think come the fall and winter, you may need to take some precautions grade school kids in my view won't be vaccinated. the trials are under way they're small trials right now

the companies will probably test lower doses in adolescent kids under the age of, let's say, 10 or 12. those trials are harder to enroll when there's not a lot of infection this summer. i don't know the vaccines are fully ready for adolescent kids come the fall school season. i don't know if they're authorized for kids under 12 there is the possibility it gets put in a high school environment come the fall season in the fall and wisht, at least at the start of the year, we're still taking precautions we know younger kids are at less risk from covid than older kids. they seem to clear the ip fekz much more quickly and don't get as sick on the whole there's still some risk and i don't think that age population is likely to be vaccinated at the start of the school year. >> doctor, thank you for running through all of these, so many different issues we hit you with from over the weekend. we look forward to talking to you very, very soon. >> thanks a lot. coming up, congressman ro

khanna, his district kors parts of silicon valley. we'll talk gamestop and his new tax legislation aimed at cheaters coming right back.

our next guest is up vailing new information to, it says here, fix our tax system we'll explain that targeting in part the ultra wealthy. let's welcome congressman ro khanna of the 17th district of california heart of silicon valley. we should make it clear, from what i can tell you're not talking about necessarily new legislation to tax the wealthy or corporations more, you're trying to fund the irs, which a lot of people, i'm sure this is part of what you're thinking,

think that it's been starved one of the agencies that hasn't gotten enough agencies, the irs, a good way to get a return on your money, if you could make sure everyone is paying their fair share of what they're supposed to pay, congressman. >> exactly this isn't going to raise taxes a dime it's simply saying people shouldn't get away with tax evasion. it's not going after tax avoidance, it's going after people who are simply not paying what they owe. larry somers and natasha dp work saying you could raise $1.2 trillion over the next ten years if you staff the irs and have them audit and enforce the top taxpayers as individuals and corporations who aren't paying their tax. >> i think that's a pretty important point to make. i don't know who wouldn't think that this would be effective legislation, especially if you

can connect the dots between money that it would cost to bolster the irs and what it does versus the kind of expected return that you would get. that seems like kind of a no brainer. >> absolutely. it needs to have a better technology, better expertise in enforcing it here's the shocking thing. there was a report out that the irs actually is auditing the poorest individuals in the delta mississippi at a higher rate than they're auditing people in the wealthiest brackets even though most of the tax evasion is in the higher brackets. there are people who disagree with where i think marginal rates should be, progressive taxation everyone should be able to agree on the simple principle that you ought to pay the taxes that are owed it seems to me that's the essence of the american sense of fairness

>> unfortunately it's conflated a lot. i'm wondering if you're adding to that saying getting corporations to pay their fair share. do you have data to show that corporations are breaking the law routinely in terms of tax evasion? >> this is, again, based on larry somers' economic paper and his view and the research he's done and natasha sari shows when you have some of the wealthiest corporations and wealthiest individuals, that they aren't paying the taxes that are owed and the irs doesn't have the sufficient staff to be able to enforce it so my view is, look, maybe it's not 1.2 trillion i think that's what larry somers thinks it is maybe it's 500 billion the investment is so small, why not do it and ensure people are paying what they owe >> right did he actually give details about what -- what are wealthy individuals, these nasty wealthy

individuals, what are they doing to evade taxes because you can go to jail you go to jail when that happens or you pay a large penalty i can't imagine a corporate cfo would sign anything given the recent regulations that -- if they were just overtly cheating on their taxes >> you make a judgment on the morality certainly i celebrate entrepreneurs and wealth generators he simply says statistically that's where a lot of the people are not paying their taxes now whether it is intentional or whether it is that they aren't complying with the law out of negligence or ignorance, i don't think the paper goes into that, but what it says is these are the people who are not complying with the law and the irs simply doesn't have the staff or the resources to be able to audit them and enforce it.

>> right okay it's a sad number if it's true it's sad $1.2 trillion number, that that's just -- that's saying it might be inadvertent, some of it, i don'tknow. what did you make of the entire gamestop situation, what happened last week, the hearings where do you think that goes from here? is it over >> no. i think the question is where do we go from here? here's where you can get common ground and consensus one place of consensus should be disclosure i mean, when you have an app like robinhood and people are buying or selling on the app, they ought to have clear disclosure that if trade goes above a certain threshold they may have to shut the site down they ought to have certain provisions for capital if it goes too high.

how do we have greater disclosure so we don't have a situation like happened before >> okay. congressman, thanks. keep us updated on the tax cheatchea j che cheaters, and it would be good if they owe, they owe. we have to remember avoidance and evasion and that's a huge issue that's conflated a lot, unfortunately. thanks coming up, a former tennis pro, maria sharapova and all of those other people can you believe this today and that regional bank merger. ce four things at once. so when her car got hit, she didn't worry. she simply filed a claim on her usaa app and said... i got this. usaa insurance is made the way kate needs it - easy. she can even pick her payment plan so it's easy on her budget and her life. usaa. what you're made of, we're made for. usaa.

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markets looking to kick the future off lower futures are down could it be down five days in a row for the s&p 500. boeing in the spotlight again after an engine failure. got the details straight ahead new darling of the reddit crowd, palantir the second hour of "squawk box" begins right now. good morning to "squawk box" right here on cnbc i'm andrew ross sorkin and becky

quick and joe kernen u.s. equities at this hour on monday morning, about 2 1/2 hours. dow down 169 points. boeing a part of that. we'll talk about that. nasdaq looking to open down 168 points the s&p 500 off about 27 points. joe? >> andrew, united temporarily grounding 24 of the 777 jets the agency will order inspection of some of the jets which are powered by the same engine that was on the united plane. united is the only u.s. air line with this type of engine in its fleet. the investigation shows some fan blades on the engine were heavily damaged.

becky? >> yeah, thank you, joe. the resurgence of the virus was expected to put the brakes on first quarter growth but now estimates for growth are surging. phil liesman has a rapid update. how much of that is because we've seen the case amounts come down so quickly? >> left over fiscal stimulus here's the cnbc rapid update showing the average forecast 6% growth this quarter nearly double what it was forecast last month. better growth expected to continue for the next two quarters, between 7 and 9% before coming down to a still pretty strong 4.3% by year end most economists are figuring about 1.6 trillion of new fiscal relief but they're also growing

inflation concerns, something sure to come up this week in fed chair jay pole's testimony in congress barclays writing over the weekend, the continued acceleration in imported and producer prices suggests that core prices remain healthily and this year continue to outperform their historical trend over the decade looking for near 80% growing for the year it also sees a surge in imports relieving price pressures and waning relieve over time goldman sachs writing we are less concerned that some commentators about the risk of the fiscal stimulus, indeed, the combined direct effect of our key imported growth fades in 2022 goldman's forecast, the economy should be back to its potential by the end of the year that's faster than expected.

the surge in forecast returning to normal just above 2% in 2022, becky. >> steve, what are the forecasters saying about the need for additional fiscal relief >> reporter: so two minds. every forecastor who i read says do what you can to help those most in need, but the idea of sending out checks to everybody is very controversial where there's both concern about running the economy a bit too hot. why spend the money on people who may or may not need the money. there is the argument that you're picking up people who don't need it and people who may fall out of the regular system if that's the case, they say, fix the system that gets relief to those who are in need but i will say there's a big debate about the whole inflation outlook with people like jpmorgan, gold man sax saying it's less of a concern but other forecasters saying the economy is about to runpretty hot righ

now. >> thanks, steve good to see you. >> pleasure. earnings just in from discovery communications adjusted profit came in at 76 cents a share ahead of expectations revenue beating analyst forecasts. david zaslav also says the new discovery plus streaming service has 11 million subscribers globally they will likely hit 12 million by the end of the month. that's ahead of expectations joining us later in this hour and it's been a pretty good performer in media we'll do that, that's what i'm talking about right there.

>> thanks, joe when we come back, they arabody back and we'll have a very special guest. investor in therabody, maria sharapova is going to join us. let's get a check on the markets. "squawk" returns right after th is

just breaking. m&t bank has bought rival people's united in an all stock purchase goodyear is buying rival cooper tire in a $2.5 billion cash and stock deal, beck >> joe, thanks. interest in self-care products and services has spiked during the pandemic. over 100 celebrities in the sports and entertainment world are now lining up to invest in tech wellness brand therabody. joining us is former tennis pro maria sharapsharapova. and therabody's ceo benjamin nazarian before we jump into this, let's explain what therabody is. you started out with a theragun. explain what it is and how you

have built on that with cbd and other things. >> thanks for having us. excited to be there. theragun was created in 2016 it's a percussive massage device it relaxes muscle tension. it is used by athletes for recovery and people who go to the gym, work out at home. it's great for pain related to different ailments, such as ms, plantar fas xfasciatis. we rebranded the therabody last year as we're branching into other business lines that is helping people really take control of their own health and treat themselves and we changed the name of the company to therabody last year. >> maria, thank you for joining

us today let's talk a little bit about your involvement with the company. how did you first get involved did you -- have you used, i guess, the theragun? is that your involvement >> part of the purpose of being an athlete, i was very fortunate to have a phsio 24/7 to look after my body. for the weeks out of the year i didn't have someone looking at my back, at my feet, making sure my body is aligned he would hand over a theragun to me. i would go on vacation with this tool later down the line i realized as a retired player having someone next to you all the time is not sustainable when dr. jason invented a tool that can be used in every single household by every single individual, i realized the impact that this was making. >> benjamin, tell us a little bit about this investment. i know you can't give dollar amounts on this, but how did you line up all of these people who

are doing this there's a long list of celebrities and athletes, maria at the top of the list but you also have people like jay z, rihanna, daniel craig. how did you find all of these people >> we're excited to have maria not just as an investor but strategic advisor to the company. beyond that we've had a lot of athletes and celebrities using our products as part of everyday routine and dr. jason works with a lot of them and throughout the years we've asked if they could invest in the company. we thought with our bigger mission also going global it would be great to get their support and expertise in our company. they've, frankly, reached out to us it kind of snowballed, one person mentioning it to another and it's incredible that we are able to get over 100 influential people both in sports,

entertainment and business. >> you mentioned dr. jason a couple of times. maybe you should talk about his own experiences, how he developed this >> sure. he's the inventor of the product and he had a motorcycle accident in 2008. he had severe muscle injury and as a chiropractor he had access to the best technologies but nothing really worked. and he was familiar with vibration they arrapy but it wat strong enough. he thought what if there's something that goes deeper and gets to the root of the matter lucky for us, he's a handy guy he reconfigured different tools that he had access to and he came up with the theragun. eight years later and five prototypes and five generations later we launched the first

generational product and today we are on our fourth generational product line. it has become a whole category for consumers to focus on. >> maria, obviously as a retired player you have a little more time on your hands, but i take it you're being pretty choosey in terms of the ventures you're getting involved with. what time will be spent coming to therabody >> the health and wellness is what i know very well. i was all about taking care of my body, making sure that i recovered well, that i activated my body before the match that's why the opportunity with therabody was so important dr. jason lives close by and comes over with a big bag of technology and uses me as a bit of guinea pig. i love going back and forth creating these pieces that will eventually land in people's

ho homes. >> have you been involved with the massage products >> i love the massage products but they work really well together >> i'm just envisioning sharapova and the candy shops and you wonder if cbd would be available at the candy shops or is that too out there right now? >> we'll see >> let's talk a little bit more, benjamin, about the company. you're a privately held company. you're not releasing the financials about this. what's the game plan

>> anything about how to exit. it's how to get a theragun into every consumer's hand across the world. we're just at the beginning how less than 1% of the people in the world had a theragun right now expanding the company and the process and coming out with new products and address their health care needs and take control of their health care so that they're not so reliant on the health care system, which has been exacerbated during covid. >> we have seen more demand for health care goods during covid what kind of spike have you seen for demand during revenue growth >> you know, when covid first hit, we were very worried about the impact on the economy.

obviously the human impact was unimaginable interestingly enough, even though our retail sales slowed down when covid hit with the slowdown across the country and the globe, our ecommerce sales made up for that we noticed the phenomenon where people bought because they didn't have access to their medical professional again, people started taking more control of their health care with the at-home fitness craze, people were actually working out more often and probably harder and, again, that drove demand for our products last year was a phenomenal year. we tripled our sales we're expected to grow even more this year. >> maria, what have you thought just watching live events as somebody who's recently retired from tennis, watching what this has meant for tennis and live

events everywhere. how has it changed things and how long lasting do you think those changes are going to be? >> well, on a human level, sport brings so much emotion and joy to people's lives, whether live or at home, and i'm seeing it from a different perspective now and i'm seeing the influence that athletes have to the rest of the world and in difficult times and in good times. personally it's so nice to see tennis back and watching bits of the australian open with the time change is a little bit difficult, but to see people in the stands and smiling and going through the up the and downs as a fan with the player and the athlete is remarkable. i do hope that we get that back soon >> what did you think of naomi osaka's win at the australian open >> inspiring you know, to have four grand slams under her belt already and it's just the beginning of her career is incredible so much to look forward to in

her career >> in this latest round of fundraising gets you to when what's the next step does this get you through your plans for the next year or what would you tell us? >> yeah. well, we've been profitable for the past four years and this round of capital is not needed to meet our business needs or our business plan for this year, so it really was about getting the most influential people to be involved in our company and help support us from an expertise standpoint, from just awareness standpoint we are well situated for our business plan this year. we're excited by what's ahead of us. >> benjamin, want to thank you very much for your time. maria, it's great to see you we really appreciate you guys coming on with us. we look forward to hearing updates from the company. >> thank you so much >> thank you

all right. you're welcome oh, you're not thanking me coming up, "the wall street journal" reporting a group of activist investors is taking a big stake in department chain store kohl's we're going to speak to the reporter who broke that story when we come right back. hey you, yeah you. i opened a sofi money account and it was the first time that i realized i could be earning interest back on my money. i just discovered sofi, and i'm an investor with a diversified portfolio. who am i?! i refinanced my student loans with sofi because of their low interest rates. thanks sofi for helping us get our money right. ♪♪ thanks sofi for helping us get our money right. dana-farber cancer institute discovered the pd-l1 pathway. pd-l1. they changed how the world fights cancer. blocking the pd-l1 protein, lets the immune system attack, attack,

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shares of retailer kohl's spiking this morning "the wall street journal"ist with the group of activist investors are attempting to take control of the bored joining us right now is the reporter behind that scoop reporter at "the wall street journal. tell us about where this stands and where you think it's headed. >> yeah, it's really interesting. what we know right now is that this group of activists, four of them in total, have been in talks with kohl's since late last year. together they own 9.5% of the company. collectively they're the largest shareholder kohl's has and they've been trying to press some of their ideas for how kohl's can boost its margins whether this goes all the way to a proxy fight or whether the two sides come to some sort of

settlement agreement, that's what we're going to find out >> in terms of whether you think a settlement is in the offing, sometimes the strategy is bringing these guys in under the tent and i don't want to say muzzle them, but bring them in under the tent and therefore they're more controllable to some degree. >> how do you see that playing out? >> yeah, you're exactly right, andrew a similar group. three of the four, you know, last year -- or two years ago, rather, ran a proxy fight at bed, bath and beyond they struck an agreement to give them some board seats. now with kohl's, the next thing to keep an eye on is that kohl's fourth quarter results will be out early next month i'd be surprised if anything major happened before that that will be a good point for kohl's to kind of tell their story once more to shareholders and we'll see what comes after that >> is there a potential white knight in this scenario?

when i say white niknight, is there somebody who wants to buy kohl's there's been rumors that an amazon would take them out of the picture >> i mean, that's an interesting question definitely something that the two of us will probably be tracking closely that's what's so exciting about activism campaigns anything can happen at any time. the outcome is not predetermined and a range of things can unfold, but for the most part i think right now the focus, at least for this campaign, is not an m&a story, it seems to be more of an operational story that they're pushing for changes operationally at the moment. >> so when you see the stock jump nearly 8% on the back mof that story, you think there's a view and this group of activists can materially change the underlying business or you think this group can say, okay, this

company is now in play >> it's an interesting question. one of the elements that we reported in our story is that the activists are considering whether polls should potentially, you know, do sale leasebacks for some of their major real estate holdings that are not in the business. so perhaps some of those ideas are what are getting investors so excited this morning. >> karen, thanks for joining us. congratulations on the scoop we should tell you don't miss one of the activist investors. he will be joining the gang at noon with scott wapner on the halftime report. becky? >> thanks, andrew. still to come on "squawk box" this morning, discovery ceo will join us to talk about the company's earnings and the progress of the new streaming service. david zaslav straight ahead. later, don't miss the exclusive interview with shawn jay z carter about his latest ventures, music in covid and much more. "squawk bo wl rhtac x"ilbeig bk.

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welcome back to "squawk box. i'm dominic chu. we have a slew of morning movers to talk about right now. check out what's happening first

of all with shares of dish network up 3% so far this after the company beat on both earnings and profit expectations earlier this morning, although subscribers from local wireless and their pay tv customers show declines on a certain basis there keep an eye on the shares of dish network up 3% right now next up you've got an analyst call which is what's happening with american airlines and a slew of other airlines including united, southwest, delta, alaska, everyone out there on a big analyst call upgrading a sector over at deutsche bank watch those shares up 3% and all the other airlines as well then we'll end in some deal chatter. churchill capital 4 or cc iv is the ticker symbol for the special purpose acquisition company or spac, that has been rumored to be hovering around a deal to take lucid motors

public bloomberg is now reporting a deal could be announced earlier this month citing sources and the shares up 12% on nearly 2 million shares premarket they're up 430% year to date so keep an eye on those three stocks in the premarket right now, joe i'll send things over to you >> you've been practicing that a lot, come to walk to your right they look like they're behind you. walk to your right go over.

discovery ceo david zaslav is joining us with the battle of content. bitcoin. volatile trading after hitting highs and over the weekend 53 800 we're coming right back. ♪ now here we go ♪ ♪ i can't help it if i'm poppin' see them watch like ♪ ♪ who that girl ♪ ♪ it's outrageous how this flavour got em shook like ♪ ♪ hold up ♪ ♪ work work work it out ♪ ♪ ah ha ♪ ♪ i hit it back with a brand new style ♪ ♪ like woah ♪ ♪ bring it up into the fold get wild ♪ ♪ we turning up all the way on the dial ♪ ♪ like woah ♪ ♪ baby i'm fabulous so come on ♪ limitless possibilities. the boldly new 2021 nissan kicks. ♪♪

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discovery out with its fourth quarter results this morning beating on the -- both the top and bottom lines discovery stock, as we pointed out earlier, been on a run, up 69% and hitting a 52-week high just last week discovery now here to break down this quarter's numbers david zaslav, president and ceo of discovery i'm just -- wow, that's a good look, zas. that is a good look for you. i like that. so, zas, when the pandemic began and we -- we're closing in on a year, i guess now, we're almost there. did you at that point -- were you optimistic about how you

could manage through it? what i mean is, i think it benefitted because so many people were at home that they're watching, you know, the great content on discovery,but then wonder about how you produce anything and how difficult it is for a lot of content providers who work in this environment did you know that you were going to have a 70% gain in your stock? >> well, we always felt that we were a great global i.t. company and that we owned more content than everyone else we've been readying for the last three years to offer our content direct to the consumer we were being valued as a cable and free to air company that was outperforming the market but we weren't being valued as a global i.p. company when the pandemic started we were able to produce content for food, for home we produced content -- we had mike rowe shooting stuff in his living room. what's interesting is that we

produced over 1500 hours of content and it was almost like comfort food we have an average of 12 channels everywhere in the world, and people started -- because we were producing, people were coming to home, to food, to discovery so we really had that advantage, but the big advantage for us is that we've been readying for the last three or four years for discovery plus so, you know, what we were doing during that year is producing more content because we launched the 50 pod original series we wanted to drive this into the market into a differentiated product. we're global the only other global companies are disney and netflix two, everybody else is doing scripted series and scripted shows. that's what people spent 30% of the time watching. we have most of everything else. our bet was when people get a streaming service, they don't want just scripted series and

scripted movies. what we are proving out, we now have over 11 million subscribers, but we'll -- by the end of this week we'll have 12 million paying subscribers and so we are really in the game we're in the global game and what we've learned so far is people are paying for our product. they love it they are spending more than 2 times the amount of time they spent on cable watching our product. we've got a great demo we're a fantastic value at 4.99, add light $6.99. we reach cord cutters and people who want to watch with no commercials or less commercials. we're off to a great great start. we have to keep doing what we're doing and make discovery plus better, but we couldn't be happier. >> did you have -- i guess some people were saying, what's taking so long there's a difference because a

lot of other people entered the streaming market before that i think all along you said you wanted to do it right. now where were you supposed to be in terms of internal projections. it's been less than 60 days. the products in the market were way ahead of expectations. within the last 60 days, those millions of people watch 93% of the 55 hours we have science, food, home, oprah,

prime. it's a great environment it doesn't have to do with the marketing, it's word of mouth. it's very, very encouraging and it's great to be in this game because this gives us real opportunity for sustainable long-term growth we have an outperforming traditional media company that's been and continues to be a free cash flow machine where we outperform globally but now we have this direct to consumer product that's growing with real subscriber fees. our add light product, we're already making more per sub than we're making on cable. so when you put these two together, it's really a great balance but it gives us an opportunity for sustainable growth and we're just getting

started. >> wondering about the performance. when i said 70%. i figured that was 52 weeks. that's year to date, but if we go back to the depths of 2020, you have more than doubled obviously. is that -- anyone else in media got that return? some have been doing pretty well some have not done well. fox has lagged viacom has done well others have done well. what's the secret sauce, do you think? >> you know, we really focused on building a great company. about five years ago as a company we said even though we're a leading cable and free to air company, we have to focus on the content we own. we need to own content that people will watch and something people will pay for before they pay for dinner

we did our deal. producing a huge amount of content. we did make a bet. our bet was that you have scripted series and scripted movies, but people spend more than 50% of the time watching our kind of stuff. we did a deal where we picked up the history library, a&e library, lifetime so we come to market with a very robust offering of all of that great content that people love our bet was that people will pay for it and that they'll love it and that instead of being one of seven or eight scripted series and scripted movie services, we're one of one and we're a great companion if you have disney or netflix or whatever, hbo. we're off to a good start. we have a lot to do. the great thing about the services, you see what people watch every day. it's helping us domestically and internationally to see what do we need to do more of so, you

know, it's a lot of fun for us >> i'm sorry to interrupt, but i did get some notes on -- beforehand on what was going on in the company in the notes it said we can assume most of the direct to consumer growth in subs is discovery plus, but there is some confusion out there out of the 11 million direct to consumer, what are we talking about is actually discovery plus versus other assets? can you give us some clarity there? >> the overwhelming majority is discovery plus in the u.s.we launched discovery plus on january 4th and of the 7 million subscribers that we added by the end of february, more than -- substantially more than half of that is discovery plus subs in the u.s. and then the majority of the

other subs are subs that are discovery plus outside the u.s we've only launched. we've launched in the u.k. in november, we launched in italy with discovery plus two weeks ago and so we're really just getting started. there's a couple of markets where we had an existing entertainment service that we converted to discovery plus. so the majority is, we're off to a great start. >> what do you have that you could just tease us for in terms of content have you done everything is there no more content really to come up with? >> look, we have original content every week we've got a great documentary coming for easter called "francesca." we have interviews with the pope we have ina garten and melissa mccarthy, they're doing a food

show fixer upper. oprah is coming out. we're doing a lot of work with oprah. she's doing a new series called "super soul" and it's focused on how do we come out of the pandemic, what have we learned and how do we come out stronger and focusing on a different life coming out of pandemic we have ten true crime series. crime is very popular. we have the leading crime library in the world we have ten original crime documentaries coming out so we have a ton of original content. look, the big advantage that we had, we talked about it earlier, we really launched at the perfect time disney did a terrific job. you had netflix begin to plow the road disney did a terrific job and in the pandemic people started to consume more content on every device, domestically and around the world, particularly here in the u.s. when we launched in january with a very big campaign, people were already acclimated to it we learned a lot from disney

we were able to get a great deal done with verizon with hans vesberg, ronan and the whole team has been terrific working with us. their package to verizon customers is apple music, discovery plus, disney+ as three great brands that sit together as a plus, and we love that. and the idea we have -- we have a lot of people like sky and telecom italia pushing us. we're getting started. i think it's going to be a great journey for us we're a new company now. we have a real oar in the ground. >> i thought it was the turtleneck it's not it's the hair. was that pam's idea or was that a pandemic thing what was the decision there? >> i've got a little mullet. this was something i've been working on for a long -- it's like an accomplishment, joe.

at my age -- >> 70% longer. the stock's up -- and it's 70% longer i don't have a problem with that >> a lot of people don't think your hair is real. >> it is. >> i can attest it is real. >> it is real. it is real human hair, that is true thank you. david zaslav, thanks for being on good quarter stock's amazing. thanks >> see you thanks, buddy. >> andrew. thanks, joe. coming up on the other side of this break, palantir co-founder joe lonsdale, the energy crisis d how palantir is becoming one of the hot stocks. "squawk" returns after this.

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we have the endorsement. i'm he curious what you make of the wall street bet's attention? >> well, as a venture capitalist entrepreneur i'm used to

thinking three to five weyears ahead versus a couple of weeks the stock is one of the strongest technology cultures in a world so i think it makes sense people are excited about it. >> as a venture capital investor are you still in the stock do you plan to stay in the stock? typically vcs are in in the beginning and then there is an exit. >> i own a lot of founder shares, i created it with my roommate and i invested a lot more recently and i invdistrictd it to my investors i'm going to hold it for the long term. i think it's important for the long term. >> i appreciate the public market is not your market, but i am curious as someone who's watched the valley and watched valuations what you think of this phenomenon of this sort of

social media enabled investing universe to come together, to talk about a stock, in certain cases talk up a stock and potentially in the future to talk down a stock and how that may shift and change the way companies are evaluated. >> it is wild to watch our friends elon and chamath i never considered showing my abs and talking about stocks technology is clearly the hero of 2020 despite everything that happened it's solving a lot of problems everyone's come to realize this is the area where growth is and this is the area that is solving substantive problems palantir is helping to distribute the vaccines around the world so to me it makes sense people would be excited about it the question really is -- the question really is the modes

they see people that have the very besttechnologists. >> you mentioned elon and chamath. do you think it's responsible or irresponsible for them to either talk up or down stocks i don't know if -- we'll call bitcoin a commodity. some call it a currency. >> you know, i think it's a lot of fun and i think there's a lot of substitute teacher energy from the people in government who don't want people doing it and having fun i think it's perfectly fine. obviously there is a lot of risks for retail investors for anything they're doing in these areas. maybe there's a little bit much risk for people's personal wealth if they're putting all of their wealth into any one thing. that's probably pretty crazy. >> in terms of values, asset values and technology going up, as a venture capital investor,

are you saying for yourself as you're looking at small startups that i imagine are starting with higher valuations as a result, is this the time to be buying or is this the time to be harvesting >> you know, early stage venture capital is almost always a good thing to be doing. you have to make sure you're not over paying for things this is the time to be building. i helped build 12 companies in the last three years now we're launching a lot of companies out of apc this is the time to be working with them because there are a lot of resources out there that's what we're mostly focused on. >> what do you make of the spac environment? i ask because you have a lot of venture and having an opportunity to exit and exit quickly. >> we have a lot of our companies, say, being hunted by spacs. we've had eight ipos in the last three months three with spacs. it's not a bad time for certain companies to get out that said, there's also a lot of

companies that are -- i'm really bullish on over the next five or ten years. the real way you make money in these games is not to just take a bunch off the table. it does make sense spacs, there's a lot building for the longer term. >> joe, you're in texas. you worked over the past week to try to help get some food and water for folks who needed it. i'm curious. >> there's been a lot made depending whether you come from the right or left in terms of the power grid this is truly a new situation. they clearly need to winterize their power grid they're going to winterize the power grid so i'm not worried about it.

>> the governor is going to demand it. they're going to do some help in the state and it's the right thing to do. it's telling us it >> thank you thank you for joining us and thank you for the work that you did in texas over the last week. appreciate it. >> thank you >> becks >> thanks, andrew. when we come back, mohamed el erian gives us his take on the markets and as we head to the break, a quick check on the futures under some pressure. dow down by 200 points "squawk" will be right back.

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and big news in the alcohol business taking a 50% stake in jay z as the final hour of "squawk box" begins right now. good morning and welcome to "squawk box" here on cnbc. umpt s u.s. equities. boeing not helping that average pt o obviously the s&p down nasdaq down 194. treasuries may factor into some of this. we certainly did get fairly complacent in terms of rates not

going up any time soon you can see the t10-year note nw yielding 1.37. i was starting to say down about -- i was talking about bitcoin which is down 7% down $4,000. up more than 8% at one point i think, becky, before we call it corrections or the c word or any of that type of stuff, we just need to factor in in the middle of the weekend. >> i mean 8% at bitcoin. >> when it happens with an automobile, it's an accident, not a correction >> oh. anyway, let's get you caught up

on some of the stories that investors are going to be talking about today on top of what joe just mentioned. discovery communications on the top and bottom line in the latest quarterly report. the cable channel company said discovery plus was on pace to have 12 million subscribers by the end of the month ceo david zaslav joined us in the last hour. >> the big advantage is we've been readying for the last three or four years for discovery plus so, you know, what we were doing during that year is producing more content because we launched the 55 original series and we wanted to really drive this product into the market as a truly differentiated product >> in other news, webbush analyst says tesla has made $1 billion in paper profits he says tesla is on the way towards making more from bitcoin and selling electric vehicles.

we're going to be speaking more. tesla down by 2.46%. bitcoin down by 7.4% it was down by 8% earlier. you're still talking about a price. 53 53,00066 -- retailer kohl's, "the wall street journal" says it was attempting to take control of the board of directors as well. the group is the same one that teemed up to push for changes at bed, bath and beyond kohl's shares up by almost 10% andrew >> thanks, becky meantime, we are paying close attention to stocks this hour. phil lebeau with the latest on boeing and what we know about this weekend's engine accident phil >> andrew, as we speak,

investigators from the ntsb are now in denver. they are preparing to continue an investigation that began on sunday following this incident on saturday. we've all seen this video, dramatic video imagine if you were on this united flight and you looked out the window and you saw this after a bunch of debris flew off of the engine. the faa has ordered engine inspections. while that's going on, united is pulling all 24 of the boeing 777s those are the only 777s here in the u.s. that are flying with these 4,000 engines. there are 69 of these 777s boeing 777s with the pratt and whitney 4000 engines it's put together in part by looking at the engines as well as the debris strewn around suburbs in denver. two fan blades fractured according to the ntsb. it is analyzing the flight data

reporter home that was flown back to washington they're going to have a little more information later on today. in terms of stock impact, united really wasn't a whole lot this morning. they have been pulled out of service. those are on international routes we know that market is there and this isn't going to have a huge impact in terms of boeing and raytheon both are under pressure. boeing says the 777 with the pratt and whitney engines fly in the u.s., japan and korea. they're also taking similar actions that we've seen with the faa and take a look at shares of raytheon under pressure because pratt and whitney, one of its main divisions as we look into exactly what happened with that flight on saturday in denver guys, back to you.

>> okay. thanks, phil appreciate it very, very much. we're going to keep our eyes on that stock joe, i think you're going to kick it maybe over to mike >> i am going to send it over there because we're going to move to the markets now. mike santoli is taking a look at the impact that retail investors are having, specifically how they're up ending once reliable market patterns. good morning, mike >> good morning, joe we've been looking at this activity with the options in the stock market not just moving it but some signals we've gotten used to the parts of the market that seem most preferred by retail investors and the influx of relatively new investors small stock and tech investors this is the nasdaq next generation the s&p looks like it's in a very gentle upturn it may be looking like it's over heated the kinds of stocks, micro cap stock volume this is the smallest of the

small. the 1,000 exchange listed stocks right now. micro cap volume is a percentage of large cap this is where it is right now. obviously used to be trivial you have 1/3 of the share volume in micro cap stocks. penny stocks isn't even measured by this. massive, massive spikes in volume take a look at what it's doing or not doing to the benchmark s&p 500 index etf. they don't want broad indexes, people who are trading you see overall volume going up as the market rallirallies. typically volume would go up when the market was selling off. this is different. higher volume on higher prices look at the modest lower trend in the volume in the s&p 500 also the same with qqqs. broad indexes seem a little bit too boring for this crowd. a lot of ways to gauge this in yoefr heating. >> okay.

very good, mike. let's get to mohamed joining us to talk more about the markets allianz and he's president of queens college cambridge heard something from mike about the internals of the stock market, mohamed. can we start with the 10 year because last time we spoke it's ticked up some more. we know that, what is it, the boiling water with the frog? you know, you start it out just barely warm and it doesn't even notice is that what we're seeing here and sooner or later we're going to be in boiling water >> so, joe, turns out according to adam grant that that story is wrong, but what we're seeing is something very simple. the market mood has changed. it's no longer whether yields are going higher but when is a move too big that is what the masht's trying to figure out and that has three elements it's about the economy, it's about market conditions and

about the fed. so far, so far people think that this move is while not welcome, is fine but keep an eye on it because the faster we move, the more you are going to destabilize all three of these elements that's why i've had it as a risk factor that i've talked to you in the last three months >> the reasons for it, it's a combination, i guess it's all related we could be reopening and earlier a guy like dr. scott gottleib said it's going to be like woodstock i remember, that was crazy if we reopen, or roaring '20s, whatever you want to talk about, but there is some pent-up urge to go let your -- everybody let their hair down. you can just feel it, mohamed. that might be coming we also have some hot inflation numbers and a resurgent economy and a resurgent consumer might

be inflationary. they're related. is that what the 10-year is sniffing out >> yes it's the second one you should worry about. good reasons for yield to go up. economic activity and bad reasons, inflation what we've seen, interestingly, is that economists, even those who have long supported a big fiscal push are saying be careful. going big may be too big over the weekend joining larry somers saying, look, i've always supported fiscal injections, but this may be too much this may result in an output gap, the multipliers are too high and guess what, you'll get inflation. you didn't mention financial stability risk it is the second element that you may destabilize inflation expectation that the markets are really worried about it. >> in the past, mohamed, we're talking years, with the rise in

yields, we were always shocked when it would be followed by yields going back down and a lot of times it was a second wave of the pandemic or it was numbers that we were getting from europe or whatever -- i'm talking about pandemic related you know, i'm hesitant to say that we're almost done with this and, you know, we've got a long way to go, but we're heading into warmer weather eventually and case rates are already down and people are getting vaccinated is there any reason that you can see that would cause yields to come back down and go back down to where they were go back down to 1% >> so there could be two reasons, could one is it is no longer a two horse race, it's a three horse rate we've been focusing on vaccination. we want that one to win. infection, we want that to lose. there is a third one, new

variants keep an eye on the third horse that's what we worry about if -- if -- i don't think that's going to happen, but if that third horse was to outpace the infection horse, that's a problem. the second one is the fed. i can predict that yellow lights are flashing all over the fed because of the moves and the steepening of the curve and the fed may decide to do more to try and control yields i think that would be a bad idea, but that's the other way yields could come down is if the fed moves, either directly or indirectly towards yield curve marketing. those are low probability issues right now, but if you and i are talking next week and the 10-year is at 150, the second element of fed is going to be something we're going to discuss in a lot of detail >> is there a number that -- where the frog is definitely dead, to use an extreme metaphor what would that be, 2%

>> well, that number is not for the economy. i think the economy is higher rates and continue to power forward as long as vaccination spreads. it's for market conditioning at what point does tina get questioned by the fact that we could earn higher yield on risk reallocation that's the question we all need to answer. it's a very big payroll question you're starting to see the rotations going on look how well financials are doing. the first phase of that is in relative trades. the second phase is in the overall level of the equity market >> you can see at the bottom of the screen, it keeps going by. bitcoin at fifty-three four. we talk about it because it's fun to talk about with you you've owned it. where's the el erian buy signal on the way back down does it go, you've got to go all the way down to where you sold it to 20 or do you pull the

trigger before that? where is it? give me a number >> probably where i saw it i sold it at 19, probably there, and i made a mistake of selling too early. >> you're waiting for it to go all the way back down there? what are the chances it does that >> depends on governments. remember, governments are sitting there not comfortable with what they're seeing so it's a private sector issue i'd be buying a lot higher than my team. >> right exactly. who knows. right, who knows what's in the mind -- only the shadow. only the shadow. he's the only guy that knows, 34078d thank you. we'll talk about that. >> take care. >> good discussion thanks becky? >> thanks, joe still to come this morning, new york city mayoral candidate ray mcguire on what it's going to take to rebuild the big apple post covid first, as we head to a break, let's get you caught up on a few of this morning's top headlines.

people's united financial is being brought biagy an all stoc deal they'll have $2 billion in assets. the white house and the small business administration are making some tweaks to the paycheck profession program, including an exclusive two-week period starting today where the sba will only accept applications from businesses that have fewer than 20 employees. those changes are designed and the cue for their lenders. gamestop shares are higher this morning up by about 13% this follows news that keith gill of wall street bets fame, you may know him as rory kitty, double his stake in the retailer to 100,000 shares. yeah, that's the news these days you're watching "squawk box" on cnbc strengthening client confidence in you.

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david faber sat down with him asking why he's re-entering the fray right now. >> i'm wholly unhappy about the narrative that has been created around the ge team i don't think it's been complete i don't think it's been fair and i think it's hurt a lot of people and i felt like a more complete story should be told. and i think in addition to that, david, you know, kind of today all leadership is crisis leadership and i think to a certain extent this team and me, you know, went through a lot together that others can learn from and i wanted to share that as well. >> you can watch much more of david's interview with jeff immelt coming up on "squawk on the street." >> okay. when we come back on the other side of this break, the road back to prosperity for new york city as vaccinations pick up we'll ask new york city mayoral candidate ray mcguire what the fey apple needs and what cit li is like stay tuned, you're watching

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welcome back to "squawk box" this morning coronavirus cases in new york city are going down, but the city still facing a slew of challenges from the crisis including budget deficit, residents decamping from their apartments to the suburbs and beyond and a rising crime. joining us to talk about rebuilding new york, randy mcguire, former vice chairman of

citigroup and democratic candidate for new york city mayor. >> when you look at what new york could look like, even 12 months out from now, 18 months out from now, how different do you see and how -- you know, what does that look like >> thank you good morning that is probably the most important question that is getting asked in the period of this election cycle. what this looks like is let me just give you some numbers we have gone from an $80 billion budget to a $90 billion budget in four years. a $12 billion increase we have seen a projected $4 billion budget deficit that's on the expense side on the revenue side, if you look at property taxes. property taxes down circa 15 to

20% and that contributes, 50% or so to the overall revenue base income taxes are 14% what we need to do going forward, which has been my economic plan for the greatest comeback, the greatest, most inclusive comeback is to grow. you need to be more efficient. you also have to have the resources to pay a bit more taxes. the only way out of this is to tax more out of this what you have to envision going forward is putting new yorkers back to work my plan includes just that. >> ray, we've talked about it before but we keep hearing about literally every week a new group of people, typically very wealthy leaving the city do you get them back >> the a nswer is, yes, we can get them back. new yorkers want to be in new york but what that requires is giving confidence we have a quality of life and returning to the experience all of us have

gotten used to and which all of us have taken pride and the arts and cultures and the restaurants which are fundamental essential part of the small businesses it's how we interact and convene. part of the experience is the identity and the fact that we can interact, where we have the greatest talent. the answer is, yes, i think with the right leadership it requires crisis management, crisis leadership is what i've demonstrated here. if people believe we have the right leadership, new yorkers will stay. those who are here will stay those who will leave will come back and those who inspire to come and compete in the greatest city in the world, they'll also come here. we still will be the magnet of the best and brightest that exist in this country and around the world. >> ray, late last week you announced a plan to reform the police and saved at this issues in new york. i wanted to ask you how you

think about that relative to one of the biggest concerns in new york among the business community. i want to read a letter to you this was from the new york city partnership to de blasio back in the fall saying there's widespread anxiety over public safety, cleanliness and other issues that are deteriorating across the neighborhoods across the five boroughs. how does your plan deal with that >> so, listen, this is one of the fundamental issues this is my safety and justice policy let's go through some of the facts. gun violence gun shootings are up 45% we saw the horrific act of stabbing in the subway we also saw -- i don't have the facts but we also saw some of the most aggressive policing we've seen what my plan intends to do is to have a culture of respect, accountability and

proportionality. we want accountability today the relationship between law enforcement in the community has been breached. why is that? because many of the serial abusers are paid and need to be held accountable i will appoint a deputy mayor over public safety and make sure we have more hands-on management of the police department i also want to make certain as we think about those people who are abusers, the more aggressive ones, that we have a chain of command. we hold a chain of command responsible. i also want to make sure that we empower investigative power for the ccrb and what my planning contemplates is rather than taking 48 days to get police footage, i want them to have 48 hours. i want them to be responsible and held accountable also what you recognize in the plan is we've included an emergency social services which means that we can deploy alongside, if not ahead of, law enforcement those people that

can go in and take care of mr. lopez, make certain that those who are serial -- who have a challenge emotionally, of which this is a growing part, not in large part -- not in small part because of covid, but we have to go in and deal with that expect accountability and proportionality. >> ray, i'm going to be talking to the new york ag, leticia james later today. she is suing the new york public -- the nypd over how they handled the protests that took place over the summer. is that the right way to handle some of this reform? >> the answer is, unless you can get some reform, that is reform for which there is accountability from the leadership of this city, unfortunately we have to resort to the actions the attorney general is taking. we can't have that aggressiveness as many have witnessed. as has been said by everything,

if the only thing you have is a hammer, everything else is a nail when it comes to the black and brown communities, it's a sledge hammer we can't sustain that. that's not acceptable. we need to change the culture. >> ray, i want to show you a topic on the nursing home videos a new york one interview with assemblyman ron kim because it goes to a lot of the issues taking place now >> if he -- i think we could have gotten past it, but it was the moment it was the yelling plus the request to lie about what i heard that made me ultimately speak publicly about it i can't be an accomplice i refuse to lie to cover up on something that is here. >> what do you make of what's been reported now about the

governor, governor cuomo's reaction or not reaction but potentially misleading statements about nursing homes and nursing home deaths? >> andrew, one of the most important groups of people that we have here, we need to show a lot of respect and dignity are the elder. my mother yesterday celebrated her 95th birthday, so as we think about what's taking place with the elderly and think about the responsibility, we all have to be responsible. those who can do less for themselves, we need to make sure we take care much them and treat them with the dignity and the respect and the care that is so necessary. i would say let's make certain that we hold ourselves responsible, that we hold ourselves accountable, that we make certain that we fulfill the kind of contract that we would like to have ourselves and kind

of that's how i think about it there's accountability that needs to be held and we need to make sure those that are responsible are held accountable. >> does that include the governor >> well, listen, i think if the governor's in a leadership position, they ought to make sure the governor is held responsible. by the way, i will tell you that the governor -- the relationship between the city and the governor has to be a constructive relationship. there's never a time where new york city has thrived without having a constructive relationship mine is one i would expect would be one of respect. the governor knows his responsibility i would allow the governor to speak on his behalf and review with us the accounts that occurred here and how we ought to think about it. >> final question for you, ray it's a question that a lot of new york city folks have been talking about, that i've heard over the weekend mayor de blasio shutting down a rink in the middle of central

park because it's operated by the trump family would you shut it down, too? >> you know, at some point we have to get by this divisiveness i thought we were over this. we need to make sure we move forward, give our children the opportunity to go outside and play, give ourselves the opportunity to interact with covid protocol this pettiness, we have to move beyond that. we're in the midst of a crisis we need to do all we can to bring this city together the crisis of covid, the crisis of the economy, the crisis of racial and religious segregation that we're all experiencing. if there's ever a moment in time where the city needs leadership that brings us together, it is now. we can no longer afford to have this type of divisiveness. all it's done is perpetuate the systemic inequities in health care, in the criminal justice

system and in the economy and not enough leadership, stand up and lead and bring us together that's what this is all about. that's what this is all about. >> ray mcguire, we appreciate you joining us look forward to talking to you again. thanks very much >> thanks for having me. >> thank you, ray. good to see you. quick programming note, i'm going to be kicking off dealbook interview with janet yellen at 9 a.m. i will be speaking with new york attorney general leticia james and delta ceo ed bastian and steve ballmer. tomorrow will be ceo karen lynch, robinhood's ceo vlad tenev and jay clay and senator mitt romney at 5:30 p.m. we'll bring you highlights at cnbc you can log on and enter. thanks, andrew when we come back, an interview

with the key players behind a big alcohol deal just announced this morning moet hennessy is taking a 50% stake in jay z's champaign brand. check out shares of lvmh this morning. you'll see that those shares are down but just slightly down by 1/3 of a percentage point. stay tuned you're watching "squawk box" and this is cnbc

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welcome back, everybody. this morning moett hennessy is going to get a stake in jay z's champaign. joining us right now with more on the deal is music mogul shawn jay z carter and philippe who is the ceo of moet. welcome to both of you this morning. it's really great to see you on the news of this deal. >> thank you. >> jay z, i was hoping we could

start with you good morning, good morning to both of you. jay z, i know you are incredibly particular about how you do things you don't do things the easy way. you do things the way you think they're going to have the best results. why moet >> yeah. you know, they just really aligned in our thinking and thoughts and the way they care about products it can't be called champaign so you know when we build the products, whether it be rock nation to monogram to whatever we building, we building luxury products moet hennessy goes about it the same way we are aligned in our thoughts of integrity and passion for the things that we build

it started with alexander. we had conversations october 2019 and, you know, those conversations, you know, escalated pretty quickly most of these guys were men of their words. they say they going to call you thursday, it's thursday. it just started out in a place of respect and it built from there. built pretty quickly >> philippe, i'll ask you the same question. why this brand why did you come to jay z? >> this brand is in the field of prestige which is a very attractive category in which we have several brands but of course what jay z did with his brand, created a new market of its own at a very high level,

high prestige level in the category touched new consumers bringing new consumers to the world of champaign with a very disruptive way of marketing, of bringing the product across and that brand became a huge success. we have been observing it for the last few years so we had a relationship and i was invited to the discussions it was very exciting to us to enter this world, partner. what we felt we could bring to the brand which is already successful is the sheer power of our international distribution network which really can range from asia, europe, latin america and africa and bring that brand further up from the current place where it's very, very successful to even higher levels in the future. >> jay z, this has to be

particularly sweet for those who aren't familiar with the creation of this brand, you used to be a fan of krystal you used to sing about it, talk about how you would drink it and then the head of krystal made some ridiculous comments back in 2006 and you boycotted talk a little bit about that, coming from the insulting comments and being able to build the brand in such a short period of time? >> we were kids celebrating being live there were reports that kids from our neighborhood wouldn't make it past 21 so we were celebrating being alive. we was exploiting luxury products we pap laopularized our brand we were happy being consumers of this brand they made the comments and as the universe would have it, an

opportunity came right shortly thereafter and it was just perfect to, you know, build our own thing. the same way, you know, we built rock nation. the idea was we wanted a record deal it wasn't a plan to build this big media company, it was -- we actually wanted a deal i wanted a record deal when we couldn't get one, we built our own. similar to those comments forced us to do our own thing and, yes, today it's a happy day and i feel very vindicated from that time, yes >> as you should do you see other opportunities, places where your community is not being appreciated and loved, other things you might be able to do? >> well, yeah, we live in america. we have a long way to go towards inclusivity. so there's many sectors.

think about all of the things that we in i may be the highest tech ranking ceo owning title the only one with a luxury -- highest ranking -- maybe that's going too far but definitely champaign. highest ranking african-american owning luxury goods product. so, yeah, there's plenty of room to go from here. >> gentlemen, we know your time is short today, but we do appreciate you being with us we'd love to have you both back to talk more about this partnership and other things you're working on. jay z, phillip, thank you very much. >> thank you >> thank you >> take care when we come back, our next guest says that tesla has made more from the bit coin in a month from all of the ev sales in 2020.

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welcome to "squawk box." the futures have improved. we were down more than 200 we're now down 150 and change. the nasdaq indicated down 160 points or so nasdaq down 25 10-year trading up in yield at about 1.3747

tesla and bitcoin trading in the red this morning after bitcoin had a record hop over the weekend. our next guest says tesla has likely made $1 billion on its bitcoin investment over the last month. more than all of its 2020 ev sales. joining us now, dan ives, analyst at webbush securities. down 7.8% today. i'm talking about bitcoin. tesla is down. i don't know if that's related i'm sure it's not. if bitcoin were to have one of these moves that we've seen in previous years from the high, and i'm not -- i don't know whether things have changed with mass adoption and everything else going on, dan, just for argument's sake, let's say it did go down significantly, could that have a material effect on tesla just like the positive move had on that billion dollar number you were talking about? >> yeah. it's a great question.

it adds to the volatility and the story. it's still contained, 1.5 billion that they've invested. this is not just a fad tesla is going to continue to double down on the bitcoin you're seeing from a transaction perspective. no doubt it made $1 billion on paper from bitcoin that's more from me from a profit and all of ev sales, 2020 it just speaks to what we're seeing in terms of this market >> what if they lost a billion >> that continues to be short. in terms of the risk parameters they've put in, $1.5 billion is tragic in terms of most investors. musk and tesla will dive into the deep end they're not to go it just from an investment perspective, from a transaction perspective. in our opinion, we've thought 3

to 5% of public companies will go down from an investment perspective. regulatory goalposts, until they're put in, we don't think it rachets up too much beyond that. >> 3 to 5% and what's the rationale as a speculative buy as a hedge against the debasement of fiat currency? we had the discussion earlier, it's kind of funny, if someone decides, look, i think bonds are going up and a corporate manager puts everything in five-year notes, is that manipulating the bond market? so i don't, the corporate managers have a lot of reasons for doing things that might not be transactional, do you think that a percentage of a corporate, of a corporation's assets should be in bitcoin? >> well, i think that's going to be for the company as well as the boards to decide but i think we've seen micro strategy, tesla, square, and some other, i think this is a

trend that could become more nature, and i think you need regulatory goal posts put in for more companies to go down this route but i think it is a ripple effect in terms of what musk and tesla have done but i think a bigger story is what we're seeing on block chain, semis and payments, and creating a whole new ecosystem with musk and tesla taking a bit mainstream what we're seeing. >> what about the model y? what can you tell me did you see this headline today, that we're seeing that it's no longer listed on the company's sales web page, the price was slashed last week, unknown where the model y standard is, why it's not listed there, do you have any knowledge what is happening there, dan >> look, you will continue to see some price cuts, especially in china, but if we look overall, to model 3 and model y, this is on track to do 800,000 vehicles this year, and a

million going into 2022, and the haters will continue to hate on tesla, but if we look at evs, the golden age that we're going into, and in our opinion, there is a $5 trillion market, over the next decade. model y is going to play a factor in that, you know, we think that strong look especially in china. >> and $100 a share, just on the china operation, so your price target remains what on tesla >> it's a 950 in both cases, 1250, and stock is taking a bit of a pause here but i think we will see a trillion dollar market cap on tesla and evs, with the green tidal wave in the u.s., that is going to be another feather in the cap, for evs, across the board. >> a green tidal wave, wow, all right, excellent, dan, appreciate your time today thank you. we'll see you soon

thanks becky? when we come back, we'll get jim cramer's first take on the markets, as we get set for the monday morning opening bell. check out the futures this morning, under some pressure but off the worst levels and down 141 points, down 200 earlier and s&p off by 24 and the nasdaq off by 125 you're watching "squawk box" and this is cnbc no one likes to choose between safe or sporty. modern or reliable. we want both - we want a hybrid. so do banks. that's why they're going hybrid with ibm. a hybrid cloud approach helps them personalize experiences with watson ai while helping keep data secure. ♪ ♪ ♪ from banking to manufacturing,

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let's get to cnbc headquarter, jim cramer joins us right now, jim, first of all, welcome back, how you are feeling? >> i kind of went back too soon. you know how i am, surgery, bang, and that was ill-advised and i did some damage, but i'm back, thank you. >> okay, good. we're glad you're back >> thank you. >> of all the things to talk about, maybe we just start talking about the treasuries and

the yield on the ten-year, a little quick of a move, you're seeing it up at 1.37 i think was the last i had seen on that. people are wondering, how much is too much? at least in terms of what the stock market thinks? >> we plan for our show, obviously and what i'm talking about is the roaring 2021, i think that we are now 40 to 70 days away from something that i think none of us is used to, and what you're seeing in the bond market, adjusting to the fact that we may be in some sort of boom, and if we are in a boom, and you add obviously there's many people left behind, by the boom, so i don't mean to be insensitive, but there are a lot of people who are doing pretty well, the blue collar jobs are available, there is a feeling that perhaps there's going to be light at the end of the tunnel, and when you get it, we travel, we do things, we go out and a lot of the research this morning is about the reopening of america, it's happening, becky, and i think that you can't have that without interest rates going higher >> yeah, also, with the stimulus

that's going to be put out. >> yes. >> we know we will get a big package. don't know exactly how big but a big stimulus package that is passed to add up all of that and the case count is coming down, so people will want to get out there again. >> it makes you feel good. i look at the case count every day, like so many other thousands of people and i like the direction. i like what dr. fauci has been saying, and look, i think that having been vaccinated, it's a different world, you go places, you do things, i saw my daughter i mean my daughter, she's been with her friends, no pcr test to see my daughter, it was a remarkable thing, and i think that's going to be the norm, three months from now. >> i hope so, too. >> jim, great to have you back. >> thank you, beck. >> i and see you in a few minutes. >> thank you very much >> thank you. a spac run by activist investor starboard value is moving higher in pre-market

trading, merging with xterra, cyxtera technologies, an operator of data centers, in this transaction, worth about $3.4 billion and check out the shares of cciv, church hill capital iv popping this morning, a spac deal announcement with lucid motors could come, as soon as tomorrow and cooper tire, has agreed to be acquired by rival good year tire in a cash and stock deal $54.36 a share, and that is a 24% premium, over friday's close. good year says the deal will double its presence in both north america and china, a final look at the markets, a final check on the dow, which is indicated off about 150 points, or so, and the, wow, the route

in bitcoin has accelerated, now down 10% 10%, at about $5700, on the session, and below $53,000, where is, it i'm trying to see it, i just saw it a second ago, but i saw 9.95%. 52,177. >> we will see you back here tomorrow thank you, joe bye. we will see you tomorrow. >> thanks. >> right now, "squawk on the street." good monday morning, welcome to "squawk on the street." i'm carl quintanilla with jim cramer, david faber will join us in a minute, we're coming off of four straight s&p loss, the longest streak of the year and futures weak, a big week ahead on j&j vaccine, powell on the hill, possible vote in the house on stimulus, road map begins with boeing shares under pressure, the fa