back to you. >> thanks for that make sure you join us tomorrow, "squawk on the street" begins rit now. . good monday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer david faber will join us in a moment we are expecting some chop to start the week futures are bit soft as we monitor the fallout following friday's block trades. busy week ahead. jobs on friday and our road map begins with the massive margin call. some banks warning of significant losses and the latest on the container ship still stuck in the suez canal. and boeing rallies as southwest orders at least 100, 737 max planes >> jim, great to see you in general, how are you viewing

this event, el-erian saying it appears to be a one-off but we don't want a pile-up in his woods. >> when you get harsh statements out of nomura andcredit suisse saying highly significant losses and people will shoot first and ask questions later and they take the whole group of brokers down and it doesn't matter if they were quick to evade archegos which is apparently the office in question, family office, or did everyone get completely smoked? and i have to tell you, carl, some people are saying goldman made money on the trade. having executed margin call, you just get out of this stuff they're not playing the market and say i will buy tencent and see how it does, it's boom, it's out, which is why you're seeing, i'm sure everybody is doing that, why you're seeing such declines i remember hearing from david, david was lose to it because his tweets pretty much defined the story, but i'm not going to say one-off only because we have to go through the who really had it, before we had it, before we complete the day and you'll see

us with morgan stanley, very unlike them to get really hurt here but look what they're doing and etfs that connect them all, so if you want to buy these stocks, i would wait until later today, because a lot of them, would he have to hear from, before we buy. >> right and that process, jim, of course, comes not just through disclosures but through a lot of solid reporting and speaking of which david faber was covering this since the block trades hit last week david joins us on the phone. happy vacation what's to know. what is going on this morning? >> and it seems inevitable, first vacation in eight months, it always happens and literally, on the plane, 7:00 a.m., my phone starts to light up with calls from people saying there's some very strange block trades that wasn't yet viacom and discovery, which of course, as we know are sort of at the center of this, but it was any of these other names, tencent, you heard dom mention at the end of "squawk box," block after

block, and people starting to wonder, what was going on, it's friday, and friday went along, and we started to see the enormous blocks with discovery and vye cox. we all three of us talked endlessly as you know the last few month, the enormous move up in viacom and discovery and in particular two companies that i happen to know very well far beyond what many at least had anticipated would be the fundamental strength of these comes. even with accounting for their success so far if you want to call it that in trekt to excuse meer and now we have an answer what was going on, but we have an awful lot of questions as to how this was allowed to happen and if i would back up for a minute and try to explain to our viewers what is going on it appears that the archegos, family office, hedge fund, whatever you want to call it, has swap agreements across wall street with all sorts of different client brokers, whether it's goldman sachs whether it's morgan stanley, whether it's credit suisse which jim just mentioned may have significant losses, whether it's nomura and on and on and none of

them seem to have an understanding of how exactly the size of the other firms and the stock is held in the street name but the drierivatives so the economic value is to the owner and we now hear that archegos had 15% ownership of discovery and rye skom and those numbers are aft nommic and bringing them all through, the main reason they play have moved up to the levels they did, and then having been thrown, as viacom proceeded to do that offering early last week at $85 a share and the stock suffering, that may have started this cascade, where the selling began. by the way, it's not just owning it on swap, where there is no transparency and nobody really knows, including the company, who their true owners are, and it's also leverage being provided by the client brokerage, jim, five, maybe as much as seven times, and that's what where we are right now, and

this may not be over i've heard from numerous people this morning, that wells fargo may be shopping a large block of viacom as well we'll see. they did the 45 million last night of what was it 47 i think it was but there may be more down side and we'll have to wait and see. this is a fascinating story, jim, both from the lack of transparency, the leverage that was being used and the size, nobody who knows what this guy who runs archegos was thinking, it seems almost insane his behavior. >> when i think about this, i think about what would have happened if you had done, i mean let's say, i ran a hedge fund and you borrowed money and you didn't tell the other brokers that you were doing this, and you just had everybody on the hook so i think people at home, david, are wondering how is it possible that this man could have fooled every single broker? >> yeah, there are, you know, you are supposed to say that you don't, you will not own more

than 10% of any one company period apparently, he didn't listen to those rules. and didn't obey those rules. i mean that's all i can think. now there are various rules as well, but you know, the swap market perhaps is more opaque as we've said, it's unknown to the other prime brokers if you don't disclose it, what your economic position is with others, so clearly he seemed to be above 10%, clearly, well, he very well may not have been obeying rules at least set by the prime broker, jim, and then why he would make the decision to buy and buy and buy, over those last weeks and months of that stock, when it went ever higher and many shorts covered, it's not clear exactly what his thinking was and here we are. >> david, i think people at home are trying to figure out how $3 billion offering of viacom, of which by the way, you talked about viacom doing one every day, if they had a brain, how $3 billion, viacom could send a domino, like you could actually

have the language of a credit suisse saying look, these are highly-significant losses, david, these are very big banks. i mean i think people say, are they all that fragile? >> i know. i mean listen, if prime brokerage, certain ones are much more focused on the leverage of providing a client, but at the same time, it's the client, if the client is not being straightforward with them, and they don't understand the exposure the client has across wall street, with one name or two names, and how large they are in that name, it's very difficult for them to ascertain. and again, it's both the lack of transparency and the leverage here that conspired to bring this, this firm down, clearly, and it's going to result in the enormous losses that we're seeing in the nomura last night, as much as 2 billion, we don't know the number on chris suisse, we have other suspects who perhaps were, that there was some concern about and we'll learn a lot more, there is going to be guy, there is going to be have be an investigation of some kind and most likely a re-writing of rules and regulations, around swap, and so

that there is more transparency, and you know, that's why this is an important story, even if it doesn't spread far beyond. and obviously, it's already impacted the stocks that we're talking about, and it's not as though tone tencent is not an enormous company it's frightening given how important it is in china and how enormous it is in china. >> last night, you tweeted that that there could be more viacom done, and viacom was up earlier today. and again, what this shows is that this opaque world is going to freak out a lot of the younger people who really didn't even know this could happen. so david, we don't know who the prime broke rarage is because t prime brokerage,s in it was off the books should have been able to detect there was some sort of violation there. >> it's funny, jim, with these company, i was asking them, trying to understand, do you know who was doing all this buying and frankly, they didn't because when you would look, if

you were running ir, at any of these companies, you would see a lot of the stock in the street name, right? you would say oh, okay, credit suisse owns our stock and why, and you might ask, or jpmorgan and some of this is we're putting together a reopening basket and your name is one of the reopening basket names, but you didn't know who the underlying economic interest was tied to. and that was the problem here. even the companies in question didn't really know who was behind this buying >> but david, one of the things that's happening right now, is you watch the crawl underneath us, you're seeing stocks of companies just being tossed out. jpmorgan morgan stanley would everyone have to address this, david? will everyone have to say here is my loss from this as if it is some sort of whale because these stocks are being carried out. not everyone could have been hurt -- could everyone be hurt by this?

>> i don't know. still early days of the story. and i think you're right, i think all of them will have to address it and this is our potential loss and what it could be as a result of unwinding these positions. and that's whatis so interesting here, is that we still don't know how much more stock there is to sell and they may not even know again, back to what i'm hearing this morning wells fargo may have more stock to sell. or wells fargo, that's not, okay, on viacom, we'll see, i haven't confirmed that with well but i want to make it clear, i have been talking to, due -- you don't even know, did he have another prime brokerage account at another firm we are not aware of and we are just not sure. we just don't know. >> carl, i think what this does is create another level of distrust, it's been bad enough that some of the high growth stocks have been annihilated

here but i think there is a group of people, the younger set in particular, we're suits so to speak, well, sorry, i apologize, i'm a boomer, but i think what people are going to say, it's rigged, and you know, it's rigged in favor of hedge funds, because remember, hedge funds have been the villain so to speak, over at the reddits of the world, and now, they really have a definitive villain that is taking down everyone, carl, and i got to tell you, it is of great interest to me, whether morgan stanley should be down three, maybe jpmorgan had control of the situation, but now, you're going to have to deal with one of these situations where, does jpmorgan want to come out and say we were not hurt you know, that's something that historically jpmorgan himself would say, if you have to say that, then you obviously are in trouble. so i think there's a level of distrust right now, that is going to make it so that the market could be down more than people realize, and as right now, just because i think there's going to be a sense, wow, this game, it is just a mug

scape, i think that's a shame, it's not, but i understand >> it is cloudy. right now, bloomberg's got a story about deutsche bank, guys, even though they agreed to exit prime brokerage a couple of years ago still maybe exposed to some of these losses including those from archegos. david, i wonder, are we giving goldman this morning credit for being a little bit nimble and maybe exiting early? or are we wondering why they were doing business with, long in the first place, given that he was long in the penalty box. >> i think we can ask both questions. i think we know the track record wasn't the best and that becomes a question for everybody who did business with him. at the same time it appears at least that goldman may have been able to side-step some of the significant losses that others may be facing, as a result of perhaps being more focused on the leverage, and more understanding of the risk at hand we just don't know, carl and i think what's going to be interesting about the story is how it unholds in the next few day, weeks and even months, as

we understand more and as perhaps the regulators move in to take a closer look at this particular market, which again is lacking in transparency and we can all see what that means. >> keep the phone close. >> where is the s.e.c., carl where is the s.e.c.? >> how about a statement from the s.e.c. saying that not as many teams got to the final eight, the elite eight, well, we need to see the s.e.c. say something. now we know the s.e.c. isn't necessarily staffed right but i think the people, the american people are trying to figure out, are these, is there regulation so right now, the s.e.c. should be saying, we are looking into it because otherwise, people are going to say, you know what, it's self regulating carl, and it doesn't work. >> right david, thanks, as always we miss you. and we hope to talk to you obviously later today. or later in the week that's our david faber on the phone. >> running with the headline that says the stranded suez canal ship has been freed. that's reuters citing some

sources. of course, we'll be waiting for some confirmation on that and less check in with our correspondent dan murphy who is in egypt and on the cnbc news line hey, dan. >> i think a pretty significant break through at the suez canal, rescue operators have been able to partially refloat the ever-given, stuck in the canal since tuesday. look, earlier today, authorities said that the vessel had responded well to push and pull maneuvers in high tide and we know they're using tugs and sophisticated dredging equipment to pump sand and muck from underneath the ship to clear the engine and propellers. right now, i'm looking at it, and the ship is really starting to maneuver in the right direction, actually i'm not sure if you can hear that bind behind me but it is sounding the horn in celebration, perhaps sending a message to the pillar of ships it has been holding up over the last week or so. you have to look at the economic impact and the market impact, too, this blockage has held up about $9 billion a day in global

trade and according to some estimates it has caused big disruptions to supply chains and the suez canal carries about 10% of global trade and 7% of the world's oil as well and we've been speaking with analysts that say if the ship is cleared soon, it will probably take ten days to clear the bag lock of some 400 -- backlog of some 400 ships still waiting to pass through. so this mishap underscoring how vital the suez canal is and india, which has lost about $95 million in canal revenue as a result of this incident. i'm looking at the ship right now. it does appear to be moving. we're not sure if the ship is under way by itself or pushed and pulled by those tugs, but those are the significant developments emerging on the suez canal as we speak, guys back over to you >> dan, really quick, before we let you go, is there a sense as to how long it will take to move some of those tugs out of the way, so that those 400 ships

could at least begin to follow through "ever given "path? >> it is a great question. we understand the ship will have to go into mechanical inspections from this point on it's unlikely that it is fit to sail it's been stranded on the banks of the suez canal. so it needs to be given a once-over to ensure it is seaworthy we understand it will be taken north and put in a separate holding area in the suez canal and not until it is in the suez canal will we see other ships move through the suez canal themselves as i mentioned analysts say it could take up to ten days to clear that backlog and ten days is also a pretty optimistic forecast when you consider just how many boats are out there, and how much cargo they're carrying. so it's likely that this issue could really extend, the blockage could perhaps even extend into the coming days, and maybe even another couple of weeks. but it looks like good progress is being made on the ground here right now.

>> dan, jim cramer fabulous reporting and there i a story that's captivated the whole world, but i wanted to ask you, a lot of people are saying, how come oil isn't higher, the shipping companies i contacted all say it's diferivatives of o, liquefied natural gas, ethane, and not necessarily oil itself, the oil doesn't dmel going through the suez canal could that explain why we're not seeing oil speak on that >> you got it, jim as soon as the headline broke this morning, we actually saw oil prices falling, and that's curious, right, because normally, this blockage would have resulted in a spike in prices, that you've been referring to and news that the ship could perhaps be showing signs of becoming unstock, sent the oil price lower. now the suez canal is not necessarily a huge conduit for oil and lng, it only carries about 5 to 7% of total seaborn supply of course, other lines carry

bigger lines of crude and i would say there is potentially other factors influencing the price of oil and this is probably more of a headline driven event >> dan, perfect timing to have you on as we begin to see stom real, some real progress here with your reports and your own eyewitness account thank you very much, for joining us on cnbc on the news line. take a break here. a bunch of individual calls to get to, including calls on twitter, gm, facebook, and news on draftkings and the boeing ouwee order from sthst back in a minute

so you're a small business, or a big one. you were thriving, but then... oh. ah. okay. plan, pivot. how do you bounce back? you don't, you bounce forward, with serious and reliable internet. powered by the largest gig speed network in america. but is it secure? sure it's secure. and even if the power goes down, your connection doesn't. so how do i do this? you don't do this. we do this, together. bounce forward, with comcast business.

watch boeing in the premarket, looks to ep up about 2% here as southwest announces 100 firm orders, for the 737 max, takes an option for about 155 additional jets, jim, it was on our show, in 2019, where gary kelly said look, the board's going to look at maybe diversifying into airbus, and it was later that boeing's dave calhoun says we let them down. >> this is a surprise. phil lebeau with an excellent report earlier you remember how angry gary kelly was, who could blame him but this plus a note from goldman sachs saying 787

deliveries resume, but the stock may return to one of the you about blue whips with the great reopening trade and the reopening trade is very strong and capital america closed trade is diminishing by the day and this is a big deal and when i look at the 737 max and i feel like no one would ride it again and i don't think anyone knows whether they're in a 737 max >> yeah, speaking of which, jim, american had some updated guidance on net bookings, the seven-day moving average of net bookings at american is 90% of the 2019 total. >> wow. >> and they see that continuing through q2, but, jim, capacity is down 40%. so i don't know how we work the way out of that, except for higher fares >> yes, absolutely, the fares are going up and what is really incredible is

you can't go to europe so i mean, these companies are going to make a lot of money, good for them, i know when people say, wait a second, they got a government bailout, but if we recall, at this time last year, we thought that the way that you got covid was to go on a plane, it took a long time for boeing and for the airlines to be able to state their case, which is that the airflow is 16 times better than a building, and so i absolutely, absolutely feel that this is again a sign that you got to own the airlines i don't think people understand that when europe comes back, it's just going to be really bountiful, and southwest, obviously right here, right now, levered to the price of oil, too, but expanded. some of these companies took advantage of this moment, carl and really, really expanded and i think that's why southwest needs so many planes >> yes, certainly jet blue, and gary kelly, southwest, have been pretty opportunistic about entering some markets they weren't in previously and it kind of brings to mind, jim,

this goldman note on the economy, that is actually titled "anatomy of a boom" and they say, accelerating sequential growth is transitioning from our forecast to a fact, and they lead two-one gdp at 7.5 because of the weather drag but take q2 up to 10.5, a full point, as they say the timing of the stimulus payments and the reopening is going to mean the springtime is just going to be hot. >> oh, wow, that's a good note and i think again, that is what the story is, in our markets, and restaurants, travel, i saw disney down, because people felt that maybe disney is caught up with the great, the archegos swoop. i don't want to call it fraud, because that would be too strong but i do think that anything that is opening, anything that is in the mall, i mean how about this lag trade, this is the trade that matthew boss made, lb is doing great, american eagle is doing great, gap is doing

great, carl, i don't want to say we're back, but we're close to it we're close to it. >> right we're going to talk about some of those calls and some names, including big call by jpmorgan on the internet space. a short break here opening bell in about five minutes.

we see breakthrough medicines getting to patients in record time. at emerson, our automation software is empowering pharmaceutical companies to accelerate their production of critical vaccinations for the world. emerson. consider it solved. of critical vaccinations for the world. hey lily, i need a new wireless plan for my business, but all my employees need something different. oh, we can help with that. okay, imagine this... your mover, rob, he's on the scene and needs a plan with a mobile hotspot.

we cut to downtown, your sales rep lisa has to send some files, asap! so basically i can pick the right plan for each employee... yeah i should've just led with that... with at&t business... you can pick the best plan for each employee and only pay for the features they need.

let's get cramer's mad dash this morning, watching some lulu this morning. >> carl, this is, i think this is the fulcrum moment, we have to find out if the stay at home trade is completely over or not, is there any hope for it, lululemon which reports tomorrow has been widely viewed as a work at home, stay at home clothing play and you can have lulu and sit there at home and be on the computer and suddenly the world is opening and lulu doesn't fly if we go back to central office. piper says a very good quarter the question isn't a good quarter, lulu always does good

quarters and the question is, does anybody care? and i don't know, the stay at home trade was a good one but notice i'm using past tense. it is the grand opening trade only >> and i saw some discussion last week asking the question, how can the reopening trade be a pure thesis when hd and rh are doing so well? >> i think history d and rh are -- i think hd and rh, i'm looking at a note, they're linked to the stimulus, we're finding out a lot of people feel that the stimulus dollars go to, and wells also saying that it goes to tractor supply, an outfit that you use if you move to the country, and those are being viewed, lowe's and home depot are viewed as the exceptions because you get the stimulus check and you don't go to robinhood, you go to home depot. quite a switch you lose less money if you go to home depot >> interesting

yeah, i mean i guess at this point, jim, the take away would be that there is, there are so many stimulus dollars afloat that maybe these households can do both, right or vacation. and upgrade the pool >> i think that they are going to vacation. they spend a lot of money in a lot of different ways, and things that are hold up. and home depot, people feel if you invest in your house, the house goes up in value and it is a big winner to invest in your house. >> the opening bell of course and a look at the s&p 500 at the bottom of the screen, coming off a record close on friday jim, we discussed the margin event with david at the top and we have seen some upgrades this morning of viacom, over there, and tencent, a billion dollar buy back, the biggest ever, do you think there is value in some of these names essentially cut in half? >> i think viacom, one of the things that viacom/cbs got is that the streaming biz may have

a lot of value talking about $45 in value one of the funniest things, carl, they kept their price target at $70 and they unfortunately didn't change so they're using that price target, and i do think that there is value with viacom, but i do think again, you have to wait for things to settle, because don't know where viacom is obviously, if someone could be as nefarious as they were to a couple of firms, they could be nefarious to everybody, and i say nefarious, trying to find a word which describes taking out, you borrow a lot of money from everyone and not disclosing that you're doing it, because carl, had they, then these firms would have closed it out a long time ago. obviously, the firms were clueless you can't detect fraud i remember when i was at goldman, i learned, you can't detect fraud it's just too hard i do think that it was important to recognize that if you got out of it first, as goldman did in the morning, i couldn't figure out the trades, i thought maybe

something with the prc, but if you got out at first, the firms tend not to hang around, they tend not to hope that tencent will come back, a lot of people feel oh, man goldman must have cleaned up i know from my time on the desk and spending some time in margin, that the goal is not to make money the goal is to get out as fast as possible. because you don't know what's wrong with tencent obviously you don't know it's owned by everybody so those are things that goldman made a lot of money on this, no, goldman may have been limited its losses but the goal is not to profit from a margin call the goal is to save your skin. >> right, right. morgan stanley jim, is the worst performing s&per, and that's going to be, that's going to take you below the 50 day for the first time since february 1st. and wells is not far behind. off of the heels of david's comments at the top of the show. >> i think these might be opportunities, if you believe that interest rates continue to trend higher, at jpmorgan, really great firm, big balance sheet, morgan stanley, not a big

risk taker, wells fargo, charlie sharp, remember we're waiting to see the banks, they were up last week because they are more in kroeflt dividends and they got the right regulatory structure but i do think, if rates are going to go up, pick your timing and make wait until after margin call, say 2:00, and i think you might have a good investment here, and these companies are doing quite well and they're part of the reopening trade, carl. so i would look at citi, and see how they're doing, but wells fargo, doing okay, and if you want to bet against jamie dimon, those guys know how to handle this stuff >> speaking of jpmorgan a 240-page report oust bank this morning on the internet space their top picks are google, facebook, amazon, peloton and twitter. and at the same time, jim, deutsch takes facebook to 38 a,

that's going to be a street high, and the face of what we know is ongoing regulatory scrutiny. >> i think that this is precisely what i would do as an analyst. you let the ceos get grilled people start worrying about regulation a couple of days go by people recognize that that show is over. how are the companies doing? and it turns out the companies are doing quite well facebook, the numbers are too low. one of the things that is amazing about facebook, it's cheaper than almost every growth company out there. not the same for amazon. i think amazon is doing well apple is obviously service revenue. and twitter, what a great opportunity. jack dorsey on the hill, jack dorsiy gets grilled, nothing really happen, but we realize that twitter is doing quite well, and it's just kind of a great opportunity. and i think that people have been holding back from buying these because they didn't know what washington would do, and now we look at the numbers and realizing the numbers are coming in really good, carl and once again people switching from linear tv, going to these guy, and it's been, i think it's

happening even quicker, more quickly, than it was happening even six months ago. >> yes yes, you might be right, jim i know, i missed snl over the weekend but i watched essentially all of the big clips on snl's twitter account, on sunday morning, and by the way, twitter, which has come down from 80 back to 62, gets upgraded today, and they say it is the most exciting product road map we've ever seen from the company, and i know you've got an sneak peek at some of the things they're rolling out earlier this year. >> i talked to ned segal, a beta for places, for their, you know, their parent their equal clubhouse and it's crushing it it's just crushing it. and one of the things to realize is, ned comes on every quarter and ned is always like, i think it's going to be pretty good no, he exploded this time. he was like man is it coming together and you know, ned is a great barometer because he is a very steady cfo, and i just feel like, you know, you could barely contain the man.

there's a lot of good things happening at twitter they are getting, remember, they had something like 40 out of 44, maybe, i'm sorry if i get the ned wrong, ned will tweet me quickly, but i do think that they will, ned, go ahead, go ahead, they crushed it, in the, at the super bowl, and if you want to start a campaign, people go to twitter, and this has been an amazing time, because a lot of people felt that when the real donald trump left twitter, it would hurt. nope, it helped. i think that people feel twitter has been very good at getting rid of hate. really good at getting rid of, trying to get rid of bullying. are they there perfectly not yet. but they're doing a great job. and i think that what matters is that the daily average users are pretty good. i think numbers are coming back. you know, carl, one of the things when we talk to the consumer product companies, they're kind of like how do we reach the even younger than millennials, well, you can also leverage, you can reach them with snap, all of these

companies are doing quite well but it is at the expense of the tv, where people feel it is not a bargain anymore. >> that's right. the cord cutting >> yes. >> the phenomenon is something we've covered for years. jim, i wanted to get quickly on cannabis, the new york lawmakers of course reached an agreement over the weekend, on expanding state regulation for medical to recreational they could vote on it as early as tomorrow. the dems have a veto-proof majority in the state legislature, 350 million in annual revenue and steeples is out this morning with a potential $5 billion potential opportunity, as it would be the 15th state to go recreational. >> look, i do think that this is one of those where the devil's in the details massachusetts got it and you thought that massachusetts would just line up there. would be like, south of the border, like dealing with fireworks, south carolina, no, i mean there's just a lot of

different towns that get involved i want to see exactly how big had is going to be new jersey did it and impossible to find. i've been recommending grow generation because that's the company that sells very special equipment that allows you to grow it. but the recreational so far has not been a great thing for these stocks that we're showing. so don't get too excited i mean people do tend to rush into these, they rush into the bottom one, sundial growers, they pull it to $1.80 and the sellers come out and pro-generation i spoke with them last week, they got a good model, and a lot of what you need to do to grow a lot of cannabis is spend a lot of money because it's not easy to do. well, the stores come out and the buyers come out, and i don't know, i think there's still a stigma, and my favorite has been canopy, because they're mostly owned by constellation, so they apparently have a great taste no filling drink, i had that, it will be separate in bars, and i

don't think regular bars will carry it, but canopy has a lot of money even though they burn through a lot of money, they still have money to burn, if they need to constellation is doing really well >> yes, and it brings to mind, jim, tap, this morning, reiterating their guidance saying a dividend is possible in the second half. that's going to be about a two-month high on molson coors. >> that's very interesting, that the companies that sold beer, they do quite well in the stay at home trade. like peloton did quite well with the stay at home trade but i think people feel, i'm getting a lot of heat from my negative piece in peloton, well, it was at 120, so maybe i rest my case, so there were a couple of the stay at home trades that are trying to morph into go out trades and i think beer's real i think that people love beer. i think they would love to try the cannabis drinks. but i do think that when you get

these bars open, carl, it is going to be the roaring 20s. and if you get that 10% growth in the roaring 20s, this time no prohibition. >> yeah, you may be right, jim, obviously, you know, i read something the other day that they called it the roaring '20s to a degree because the the people who had lived through the prior pandemic at the time felt like, well, i survived that, nothing can kill me, and that was sort of what led to those incredible animal spirits. >> well, i had dr. eric topele on, i regard as being the greatest follow at scripps and he said to me, no one should die anymore. we have the meds no one should die from covid if everything is done right and i was saying, look, i think that covid is back and it is surging, he said be careful, if you're vaccinating more than 1% of the people a day, don't be surprised when we get to may, and everybody's got it >> jim, you're right, we just

did, we just did three million for the third straight day we've now got almost half of americans who are 65 plus fully vaccinated not one dose fully vaccinated and a good piece this morning, jim, in "politico," that the white house may rejigger some of their vaccination strategy because they're finding that americans don't necessarily want to go to a mass vaccination site they would rather go to a drugstore or a pharmacy. and that may be a better way to get this thing finally done, to your point to those americans who actually want it. >> yeah, my wife got it at walgreen's in florida and she said, i know this sounds strange, but it was a pleasant experience i think that's what happens when she had the j&j, it was pleasant, she got vaxed, she didn't feel wellbut now queen, queen of florida and i think if you see cvs and wall green, i think they're getting business i was surprised. i didn't think they would. we heard from roz brewer, the

unbelievable executive who lost starbucks, big loss for starbucks, and running walgreen's and i think she has a big story to tell this week and a lot of it you feel good, you buy something when you're there, and it's real, i mean carl, i think that the numbers are incredible those numbers are amazing. three million. amazing. think about. >> it the population of the country is 330 million i mean we're going to be there and people are going to go out and i'm targeting cinco de mayo is the day that everybody goes out. >> yup, yup, we are going to be there. david and i are going to be there on that day, jim. >> it's going to be 5:00 >> by the way, moderna this morning, announces the shipment of the 100 millionth dose to the government so those are numbers that we used to talk about sort of a pie in the sky targets but it's actually in the mail. >> moderna has proven to be the most amazing company, because moderna didn't exist not that long ago and now, people, when you ask people, which one they got, they're always very proud when they got moderna

i got moderna. me, i got moderna. okay so it was two shots and the second shot, i was really tired. but i think moderna's got really good numbers johnson & johnson's got great numbers, too but this thing is just incredible it's what people, if you're not talking about the suez canal, you're talking about what shot you had. >> it's true is your arm sore and congratulations. those are the two big topics of discussion in the country right now. >> overall, financials down about 1% but as you can see, some limited selling this morning let's get to rick santelli today. hey, rick. >> good morning, carl. welcome back you know, i'm scratching my head look at the 20-year chart of the s&p and dow and if you haven't realize the it by now they're having a stellar run friday, and both closed in record territory and the nasdaq may be having a tougher time and amidst all of this, there's actually head scratching and questions as to whether some of these areas of

capital loss and overmargin and leverage are one-offs. and they're not one-offs, it's the plan, it's what central banks and our fed have been seeding, they've been seeding these clouds, leverage is what saves the system this is what they want and to think that the ceos of many of these companies that are stay at home, were tellings that you this is the new normal, did we really believe them did you really think that is the way it is going to turn out? i'm very impressed the market is doing as well as it is and if you look at interest rates on the 10-year going back to 2012, this 1.5% area is huge look at it whether it's from 140 up to 160. 2012, 2016 the fact of the matter is, if you could look at that chart and make a very easy blanket 2021 statement. we're probably going to do most of our work between 1.a and 2% if we get on the extremes in either case to the upside or the down side, it could have some follow-through the down side is easier to quantify i can tell you for sure it's

going to stop in the mid 1.30s, et those were the all time bottoms of 2012 and 16 and stop at 1.19, 1.20, that's where it stopped early in covid. those are key points now, if you look at the 20-year yart of boons, it looks completely different it keeps going down, down, down. they haven't closed above zero, they haven't closed in positive territory since may of 2019 and we're scratching our heads that the firms that have margin calls and have overleveraged and ceos aren't going to tell you about it come on. in foreign exchange, it's always the dollar will have problems and i agree to some extent but however, you know who will have bigger problems? europe look at the euro the last couple of years and what you see on the chart going back to 2010, it looks heavy, take the name off that, it is a stock that you would be putting your money in it yons and a picture of the dollar index since september 20620, it

looks like the momentum is to the upside you could look at fundamentals but sometimes easier to look at a chart. jim and carl, back to you. >> rick, thank you very much. some mild selling here, dow is briefly positive at the open but basically flat and s&p, 3966, as we take a look at the heat map here on our way to break. we're back in a moment

with a bang, energy and change came to every part of our universe. seismic or small, it continues. change is all around us. shaped by technology and human ingenuity, we can make it work for you and your business.

>> i didn't understand a word you just said. >> hey, thanks >> that's the "snl" gang over the weekend with their take on nfts, jim, which is sort of a generally accepted sign of cultural acceptance.

>> you know, interviewing the unbelievable ceo of the art museum and asked him about it and the guy punted and talked about digital need for video, but i know i entered this "time" magazine thing to try to buy the token nft for the cover, and i thought i was going to get it for, i don't know, 12 ethereum, and someone buys it for 100,000. obviously the people, the beauty is in the eye of the nft holder, here, carl, and i think that there's a little too much excitement, but then people who pay up and the guy who flips the "time" magazine cover says, jim, you're an idiot, should have bought it for 20. >> speaking of all things crypto, i saw governor abbott say count me in as a crypto law

supporter. texas should take the lead like we did with the gold depository. i saw that 12, 13% of americans now have some format of ownership in crypto related currency. >> that's interesting, because that does get to the point where it really is an asset class like gold i don't know if gold, people have that much gold. i totally get it i know that it's very easy the ease with which you can get digital wallet is pretty amazing. pay safe on tonight. digital wallet company affiliated with coin base. the easier it gets, the more people will have, and the more people will feel like, you know what, this is not only legitimate but companies should be buying it i find that the place hitters that have done the most is square with their cash app they have been terrific because they like to let you buy slivers of bitcoin because buying bitcoin is expensive you buy a sliver, put it away, people regard it as a great

repository storage of wealth that's an astonishing number. >> 58 k, i think it was b of a the week before last that did argue too volatile to be a mechanism of payment, too volatile to be a store of growth you're buying on price appreciation and that's about it >> well, i mean, sometimes that's enough. look, if they're saying it's tulips, i planted mine they're looking good >> they do look good, jim, and spring is coming we'll take a break here as we kick off this holiday shortened week we're back in a me mont

so you're a small business, or a big one. you were thriving, but then... oh. ah. okay. plan, pivot. how do you bounce back? you don't, you bounce forward, with serious and reliable internet. powered by the largest gig speed network in america. but is it secure? sure it's secure. and even if the power goes down, your connection doesn't. so how do i do this? you don't do this.

we do this, together. bounce forward, with comcast business. take a look at some of the biggest laggards on the ndx. baidu has gotten wrapped up in block trades, and moderna, not far behind the biggest gainer, by the way, this morning on the nasdaq is facebook we're back in just a couple of minutes. don't go ay.wa

it's hard to hope, hard to cope with crisis. so we get to work. we mend, fighting for every person in every neighborhood; we, the coming of the common good. so dare to care, to be hope-sided. we're never divided, when we live to give, we always live united.

let's get to jim and stop trading. >> goldman sachs has told people and they're out, saying look, it was nothing major to goldman, they got out with minimal losses if you're looking as i was at the top of the show as a way to be able to play the rebound, goldman has been very articulate about what happened to them, credit suisse, obviously, you don't necessarily want to go

there, we obviously don't know the extent, and nanmay not be a to cover claims. goldman got out very quickly if you're a believer that this is an opportunity, you go with goldman because that's the one that's already quantified this, said not to worry about it >> jim, you said it a few mi minutes ago, bloomberg is citing an e-mail, saying the s.e.c. is monitoring the capital situation. >> there we go, monitoring that's what we need. i think they ought to call, i don't know if this will come in, but they should all all the firms to quantify the losses and then move on so that people are not trading on lack of information, and that would be terrible, so they ought to get their stuff out and let's see what happens. >> all right how about tonight, jim >> okay, bill foley, who is doing a couple of successful spacs, and dan mondor, inseego

missed the quarter bad a lot of people were not happy about it it would be the only semiconductor company that's not doing weal we -- well find out if they're coming back. people believe in infrastructure, now, carl, they're playing infrastructure. >> we might get some more details later in the week. >> it's big. >> that's the scuttlebutt this morning. >> it's big. >> jim, we'll see you tonight. >> thank you >> jim cramer, mad money welcome to "squawk on the street." i'm carl quintanilla, with morgan brennan, david faber has the day off. limited fallout as we watch the margin event, recorded at credit suisse and goldman, the cargo ship in the suez has been refloated and a big week our road map begins with that once in a decade margin call

shares of credit swituisse and nomura are tumbling. >> and we're live with the suez canal, and the path forward for live music after lock downs caused a screeching halt for the industry we're going to speak to the founding member of the band guster as they look to get back on the road. >> we cannot wait for that >> i thought you would be excited. >> in the meantime, though, we'll keep our eye on credit suisse and nomura, and viacom, cbs and discovery. our leslie picker has all the details. good morning, leslie. >> hey, good morning, carl one source described a size and scale of friday's sales as a once in a decade event it all started first thing friday morning when goldman sachs in a note out to clients offering block trades in several chinese internet names at steep discounts, baidu, tencent music,

and throughout the day, stock sales kept coming. discovery, farfetched, gsx, all into the market. traders scrambled to find out whafrs going on here -- what was going on here, and what was driving this, and signs pointed to the a family office managed by bill wong cnbc reported over the weekend that the firm faced a for forced liquidation the "wall street journal" reported that they run a concentrated highly levered book, and holds some positions through swap these aren't disclosed so traders are trying to figure out where else wong was exposed. many are bracing for potential volatility as a result today the situation is also raising broader questions about risk in the system we have been talking about it all morning here on cnbc as you mentioned, nomura, credit suisse, warned that they could face material losses in some cases, billions of

dollars of losses due to transactions with that firm. now, goldman and morgan stanley are trading lower adds well today, although it appears they may be less affected by what happened another question, though, is what other hedge funds in particular will be impacted by some of these large moves that we've seen we already know that at least one other firm has been hit, one called 10 u, archagos was exposed to a significant amount of chinese tech and media names, guys >> exactly where i was going with my question for you, leslie, was the fact that could we see the ripple effects to other hedge funds, family offices, et cetera if there's one thing we have seen over the past decade plus, and gamestop was another recent example. you do see these big moves, these big leveraged positions in names, they tend to be crowded positions with other funds also doing similar things >> they do tend to be crowded

names, and it's been a curious rise for names like viacom, cbs and discovery over the past few weeks. people were wondering who was pushing the shares higher. it's been talked about a lot on "squawk on the street" in particular it appears we know who had been behind at least a key driver behind that specific move higher but the question now is going to be the contagion, because these are not small names that suffered significant declines on friday, and therefore, it could be that we see some other investors that have been highly levered to these names as well that start to get hit, and that's something that we're going to keep a close eye on today as more of the fallout, you know, starts to work its way through the markets. >> that is exactly where we're going to start with our next guest, leslie. thank you. our leslie picker. bill cohen, a vanity fair special correspondent, and cnbc contributor. it's good to see you thanks for the time this morning. >> sure. >> i wonder if your focus right

now is on sort of episodic risk regarding these particular names or the long-term fallout from either other names or general hedge fund deleveraging. >> well, it's probably a little early, carl, to try to figure out how contagious this is going to be. obviously this one hedge fund is wiped out pretty much. you're seeing the fallout at credit suisse and nomura in some ways to me, carl, this is life affirming because, you know, for the last year, i have been wondering what the heck has been going on at viacom cbs. the stock has gone from 14 to 100 in the last year without any noticeable reason why. last week i was talking to rich greenfield who i know was on your show, on cnbc this morning talking about this, and we were just scratching our heads, how could this be happening. what is the reason for the rise in cbs viacom, you know, could

it be this paramount plus streaming and, it turns out it was just this crazy buying by this hedge fund without any disclosure, and i think, you know, one thing jim cramer, a point he was making at the top of the hour is there should be nor disclosure, and it's a good thing the s.e.c. is monitoring this the fact of the matter is this hedge fund did not disclose its positions. they were very large and this fallout is huge and is affecting all the shareholders who bought viacom cbs at $100 a share, and now it's 45. that's huge losses. >> so do you think, i mean, do you think we're going to be talking about a bedrock of hidden risk in family offices across the country or across the world? >> obviously there needs to be more disclosure by these family offices. there's no reason at all that they should be able to use swaths or derivatives to hide their positions. other hedge funds have to

disclose their positions once they get over a certain ownership threshold, and if this family office was able to hide those positions, that's not information that's getting to shareholders in the market, and so people see this sort of momentum rise in via come cbs, and they think, well, what's going on here, is it a takeover stock, red stone finally selling this company as people have thought for a long time. it turns out it's this over levered play without proper disclosure, and interestingly, this all started, one of the reasons it started was because viacom was taking advantage of the rise in its stock by doing the secondary, announcing it was doing this secondary, and that caused the stock to move down and cause margin calls to kick in, which, you know, had this huge cascading effect, and now wee we see the fallout i don't see this, you know, in the same way as the bear sterns hedge funds collapsing in 2007, which was a debt related

investment issue this is equity related, investors, and equities, often realize stocks can go down, and they're not guaranteed any kind of return. at the moment, it feels isolated there could be contagion, with big positions in these names that have now collapsed. >> i think to your point, the fact that we did see the major averages close higher despite all of this shakeout, starting to really materialize on friday afternoon. kind of speaks to that, but i want to go back to the disclosure piece of this the ot pacity of the otc d derivative market, after everything with the gamestop, reddit, run up frenzy, targeting hedge funds that were short, et cetera, earlier in the year, could there be other instances of this that maybe could have been incentivized and what i mean is when you saw what happened with gamestop, that happened on the heels of

closures by hedge funds, has that incentivized more family offices, funds to take on this investing tact that maybe is sitting in the market right now. >> you know, morgan, you know, after the 2008 financial crisis, there was a huge effort to put into place to have more transparency in the otc derivatives markets and more disclosure about who was on both sides of trades, and you know, it's not clear to me that that really had the progress that many people hoped, and this is another example where you just don't know what is going on. investors see momentum in stocks like viacom, cbs, they want to get in on it is it another reddit gamestop, fear of missing out moment, you only live once moment or is there something more to it these family offices must be required to disclose their

trading positions if they're not. this is information that investors need so they can understand when a big investor is moving into a stock, and not be surprised by these huge margin calls that have taken everybody by surprise, you know, this morning so more disclosure is needed >> yeah. you clearly were not the only one looking for reasons for the price appreciation prior to this episode. people thought, well, is it the fundamentals, is it strictly a reddit leveraging scenario i wonder if you think we're going to be talking about bill wong, who was a bigger influence than perhaps the reddit trade in general. does it make the reddit trade just positive? >> i mean, there's been talk, carl, you know, that hedge funds were behind some of the reddit trades, the some of the game stop trading you know, don't forget, last year there was the hertz trading where the stock ran up even though hertz was in bankruptcy, and the s.e.c. essentially put a

stop to that when hertz decided it was going to try to do -- sell some stock out of bankruptcy basically, carl, my feeling is that for the last four years that the s.e.c. has been nonexistent in its oversight in regulatory responsibilities, and i think we're going to see a change in that now this is, you know, exhibit 1 or exhibit 2, along with gamestop that gary is going to have to focus on and, you know, frankly, i take a lot of comfort from him being there, and being the guy who's now going to get to the bottom of why these things happen there needs to be more disclosure about these kinds of trading activity, as well as strange trading that happened at chicago board of options i, another series of trades that occurred all through the trump administration that have people scratching their heads that were never really properly investigated there's a lot to do. >> yeah, no, it's going to be fascinating to watch him put his

mark on the commission, and maybe this is the first chapter here bill, always good to get your take we truly appreciate it see you later. >> thank you >> sounds like another book in the making we'll see. playing into the volatility, we're seeing a rule, which is exempt family offices from disclosing trades to the s.e.c robert frank has more on how the market is being impacted, though robert >> yeah, morgan, you guys just hit on the key question, why didn't we know more about what this family office was doing, and there are now more than five to 10,000 family offices around the world. they managed more than 6 trillion in assets, so they're just huge, those numbers expected to increase even more in the coming years, but despite their growing size and their impact on the market they're actually exempt from s.e.c. disclosure requirements, those requirements that are usually imposed on other hedge funds and private funds. why is that? back in 2010, as part of the

dodd-frank legislation, family offices fought hard and won a special carve out from congress that allowed them to avoid registration with the s.e.c. as long as they serve a single family and don't give investment offices. family offices at the time made the case that they only make quote conservative investments to preserve family wealth and they don't try to leverage or beat the markets we saw in this case of course that was wrong now, archegos did not make a filing with the s.e.c. in its entire history despite billions of dollars in bets some big family offices do have file occasional 13 fs with their stock holdings those are rarely filed, and when they do file them, they're only visible to the s.e.c., not public investors, so you can guarantee there will be calls today for more closures around family offices given their numbers and their size and of course their impact on the

market, carl. >> remarkable story. we'll take a break we're going live after the break to the suez canal as the ever green line does confirm that the ever giv h scefuy enenasucssllbe refloated in the suez. we're back in a couple of minutes. we see smarter software delivering cleaner power. emerson's breakthrough technology enables the power industry to integrate renewable energy sources to modernize and improve the electric grid. emerson. consider it solved. if you wake up thinking about the market and want to make the right moves fast... get decision tech from fidelity. [ cellphone vibrates ] you'll get proactive alerts for market events before they happen... and insights on every buy and sell decision. with zero-commission online u.s. stock and etf trades.

for smarter trading decisions, get decision tech from fidelity. see every delivery... for smarter trading decisions, every yikes...

and even every awwwwwwww... wait, where was i? introducing self protection from xfinity. designed to put you in control. with real-time notifications and a week of uninterrupted recording. all powered by reliable, secure wifi from xfinity. gotta respect his determination. it's easy and affordable to get started. get self protection for $10 a month.

welcome back to "squawk on the street," continuing higher after the addition to the s&p 500 just last week can the growth continue, ceo aaron joins us to discuss. great to see you. >> last time you and i spoke, one of the conversations we had is you can't make generators for residential use fast enough, given how strong the demand is, especially since we have seen so many bad weather events in recent months and recent years, but there's a bigger broader strategy afoot for your company as well, the shift to more clean energy, whether it's the solar energy battery storage systems or through the embala acquisition, the idea of virtual power plants, distributed energy networks that could help plug the gap given what we have seen in places like california and texas with utilities in recent months in a week when we're talking

about infrastructure, how should we think about changes or upgrades to the power grid >> the grid is certainly changing and that's really where we have been leaning into that with the decarbonization of the grid you think about the grid, you'v got supply which has been the traditional power plants format, big centralized power plants, distributing power to homes and businesses, that's changing. on the supply side you're seeing more decentralized power, you're seeing more renewables, solar, wind, you know, we're decarbonizing our energy usage, which is great, but that creates volatility on the supply side and on the demand side, there's also big changes going on, we're electrifying everything, right, so as we bring evs, as adoption continues, that's going to put tremendous stress on the grid. the grid is not built for those types of loads you're going to have more volatility on the demand side as well it's a formula, right, so if yo put more data on both sides of the formula, utility companies

and grid operators are having a tough time keeping that balance. >> in light of that, when president biden unveils his infrastructure plans in the middle of this week, is your expectation that we're going to see more focus on power infrastructure and if so, just how likely is it that we actually get something passed by lawmakers. >> the likelihood of that i'll leave to those who follow the political arena probably a little bit closer than me. >> fair enough. >> but as far as what the bill contains, there's a tremendous amount of spending around the grid, and in fact around renewables, and you know, the federal tax credit that is available to homeowners today and businesses, that's been curtailing, and i think the bill would basically renew that, and hopefully restore it for a longer period of time, because it's going to take a long time to shift the grid from its current format to the next format, the next, you know, grid 2.0 or whatever you call it, the grid of the future we're going to need incentives we're going to need a lot of incentives to continue that

journey. >> aaron, i wonder, on the demand side at least within residential, is the growth really coming from new construction or is this about the after market, people trying to upgrade the homes they already have >> it's both, carl what we're seeing is, you know, look, the last 12 months has been, you know, a game changer, i guess, if you will, in terms of the focus on the way we work and the way with e learn. what it's done is it's put this tremendous focus on the home we refer to it as home is a sanctuary. whether you're in an existing home or thinking about building a new home one thing is true is that you're thinking about the continuity of your power, the importance of power in your home we have all become hyper sensitive to it, and we have seen that hypersensitivity, and what that has done at least in our demand for our products but also, you know, you have seen it in demand for other products in the home people are investing in their homes, thinking about what they're going to do as they continue to work from home, and learn from home, they're entertaining from home, shopping from home. really home has become the focal

point of having power makes all of that possible >> you're standing up more manufacturing on the east coast as well, how quickly can you do that, and i realize that assembly would be taking place state side, but have you been impacted by what we're seeing in the suez canal >> not so much in the suez canal, thankfully, that seems to be more of a european asia impact i'm sure there may be some impact here eventually, but we've got our own supply chain challenges with just the snap back in demand that a lot of manufacturers in the u.s. have seen if you go out and shop for anything today, anything in your home, particularly appliances, you've got obviously the micro processors shortages, we're standing up your own demand here, in terms of new capacity that we're bringing online we have a factory online in south carolina, around mid year this year, and newscathat's goi improve our own ability to rent capacity as we said before, when we talked last time, we can't make

enough of them, and the texas event, he's only a month old here, the demand is incredible. >> quickly, higher prices is that what consumers can expect. >> inflation has been creeping into everything. irrespective of what the fed may be saying to us, we're seeing, it's certainly our business, materials, labor, logistics, all of those costs will be going high and at some point that's passed on to the consumer. consumers are definitely going to be seeing high prices going forward. >> aaron jagdfeld, thank you for joining us >> thank you for having me. taking a look at the s&p aerospace, atr, up 8% on the year up fractionally, a half percent. a few names in the sector getting a boost. ahead of ark invest's debut, the space exploration, arkx, that

will begin trading, there are moves from cathie wood and the ark fund that are closely followed not surprising to see the up side moves in some of the space. top ten holdings of that new etf. we're going to speak with the ceo of virgin galactic tomorrow in the 10: a. ur00.mho as the company unveils its new spaceship. "squawk on the street" will be right back it's game time, let's meet the defending champs. g. hargrave thomas, point guard. bryce matthias, forward. kim kietz, investor. oh, i invested in invesco qqq. a fund that invests in the innovations of the nasdaq-100. like next gen 3d rendering software. you don't have to be an advanced graphics architect to help realize a more vibrant future. become an agent of innovation with invesco qqq. ♪

become an agent of innovation with invesco qqq. labradoodles, cronuts, skorts. (it's a skirt... and shorts) the world loves a hybrid. so do businesses. so, today they're going hybrid with ibm. a hybrid cloud approach lets them use watson ai to modernize without rebuilding, and bring all their partners and customers together in one place. that's why businesses from retail to banking are going with a smarter hybrid cloud using the tools, platform and expertise of ibm.

all the things, all around you where you learn, work, and fly we help make them healthier. we are the people of abm. for more than 100 years, we've been a leader in making spaces cleaner, from the things you touch to the air you breathe. today, more than 100,000 of us are innovating to ensure spaces are more efficient, healthier and safer. abm. making spaces healthier for you. new projects means new project managers. spaces are more efficient, hyou need to hire.r. i need indeed. indeed you do. the moment you sponsor a job on indeed you get a short list of quality candidates from our resume database. claim your seventy five dollar credit, when you post your first job at indeed.com/home. cal: our confident forever plan is possible with a cfp® professional. a cfp® professional can help you build a complete financial plan. visit letsmakeaplan.org to find your cfp® professional. ♪♪

turning to the situation in the suez canal where cargo traffic is resuming where the ship blocked the canal for nearly a week. ra ralph habben jansen is the ceo of hapac, finally on the move in the suez canal, but hundreds of ships have been waiting and stuck given this situation over the past almost week how has this impacted your

company? >> well, of course it's impacting us because we have also up to ten ships waiting and, then we have a couple also around the cape of good hope, and it's a short-term impact because now we need to make sure we get things going as quickly as possible and not face too much congestion as we unload the ships in europe and asia. >> how long do you think it's going to take to move past this bottleneck. >> difficult to estimate the canal is optimistic, they are estimating that they can resolve this traffic jam within four to six days, if they would be able to do that, i think that would be a fantastic achievement. i think we're counting on the fact that it may take a couple of days more. >> i guess the question we have been asking for days now is does there need to be a rethink of logistics through the canal? can this happen again? or was this just a particular set of circumstances that led to a very rough outcome >> i think that remains to be

seen i mean, people will need to investigate what really happened i mean, in fairness, we have 19,000 ships that have been going through the canal every year that's gone without any major incidents for a very long time, so i don't think we should jump to conclusions there, but of course, a thorough investigation is definitely needed to understand what possibly needs to be done to ensure that this can't happen again. >> all right i assume you do not think this has any long-term implications for the percentage or share of freight that is seaborn? >> no, i don't expect that i mean, one would expect in the upcoming weeks, the situation will normalize, and yes, it will take some time before all ships are back into their original positions and before all the boxes get back to asia, but that's unfortunately that's what these things take sometimes to get results because it is after all, a disruption of anywhere between 7 and 14 days. >> i realize, rolf, this is a finite situation, and now hopefully perhaps we're through the worst of it.

you take it and couple with what we have seen globally in terms of supply chain issues, container shortages, ports overrun with gridlock. the west coast has been in focus, for example, how would you assess, i guess, the global shipping landscape in general right now, and thousand easy or difficult it is to move goods around >> well, the situation is definitely difficult i mean, in the second half of last year, we saw a totally unexpected surge in demand, and then combine that with quite a lot of covid related restrictions in many countries, and of course you have a recipe for congestion in the supply chain. on the other hand, if you take a step back, the global shipping industry last year has still managed to ship almost as many containers as they did the year before, despite the world facing a pandemic, so it's certainly not all bad, and when you look spec especially at the 4th quarter, pretty much almost every available ship was sailing. >> that puts it in context

what's the outlook for rates, shipping rates, whether it's because of the situation in the canal or because of the fact that the global economy is coming back to life, especially when you start to factor something like insurance into it >> i don't know, it's always very difficult to predict, you know, i would always hope that we could get back to a somewhat more normal situation than we have seen over the past couple of quarters. we are working very hard to make sure we come back to some kind of normalcy, hopefully towards the end of the second quarter, beginning of the third quarter, and then one would also hope that the market normalizes. >> all right rolf habben jansen, thank you for joining us today. >> you're welcome. it's time for a covid update rahel solomon has that for us. >> good morning, everyone. the national ban on housing evictions has been extended through the end of june. it was due to expire this week the cdc says keeping people in their homes and out of homeless shelters is a key step to help

stop the spread of covid the chinese government will say the covid pandemic probably started with the transmission of the novel coronavirus from bats to another animal, and then to humans in wuhan. that's according to the associated press which has seen a draft of that report that's going to be released tomorrow the report also says that it's extremely unlikely that the virus escaped from a laboratory in wuhan the tsa reminding everyone to mask up as it reports that almost 1.6 million people went through airport check points yesterday, its busiest day in a little more than a year. and a small batch of astrazeneca covid vaccines has arrived in kosovo, the only country in europe that has not yet started inoculations the united states backed the vaccine, used for health care workers, elderly, and some people with underlying conditions you're now up to date. carl, i'll send it back to you. >> rahel, thank you very much. a lot more on credit suisse and

nomura as though shares move lower. nasdaq down almost 1%. we're back in a moment - [narrator] at southern new hampshire university, we're committed to making college more accessible by making it more affordable, that's why we're keeping our tuition the same through the year 2021. - i knew snhu was the place for me when i saw how affordable it was. i ran to my husband with my computer and i said, "look, we can do this." - [narrator] take advantage of some of the lowest online tuition rates in the nation. find your degree at snhu.edu.

we continue to monitor credit suisse and nomura, warning of significant losses in the wake of those positions with a large u.s. hedge fund that defaulted on margin calls last week it's widely reported that a archegos capital, amy, welcome back, it's great to see you again. >> thank you, carl, it's good to be on the show again. >> obviously early days, obviously, we'll warn our viewers there's a lot we do not know, we hope to learn in the coming weeksment can we talk about to what degree compliance failed here? >> compliance definitely had a part in this, and i think it's too soon to say whether or not compliance failed. as a matter of fact, there are some reports that the compliance department at goldman sachs

actually got in touch with management and said, hey, you should not open this account due to the previous fraudulent activity that was discovered with the associated individual so they could have made their case, and got overridden by the business line managers, and unfortunately, that does happen all too often in our industry. but let's say, for example, they didn't do what they were supposed to do and that is conduct the initial due diligence on the account during the account opening process, find out who the beneficial owners o owners of the account are, and conduct their kyc, know your customer, and anti-money laundering reviews to determine if there was any previous nefarious activity by those individuals associated with the account. and if they had done that, they would have found that mr. wong had previous s.e.c. sanctions g against him, and that should

have been a huge red flag for the firm >> right so how should we be thinking about or what do you say to those who are worried about the notion that that lure of revenue stream for the equities business, said multiple banks was too seductive, and in fact that there is ongoing exposure to losses that we may not know about yet? >> right so the business manager's could have said, okay, we're willing to take this risk. we understand the risk, and we're going to take the account, and then in that case, what compliance could have done would be to put the account on a heightened surveillance program which means that they are taking a look at the account and monitoring it frequently, more frequently than other accounts and specifically looking for unusual trading activity, looking for high amounts of leverage or changes in types of securities being traded, so anything they could flag out as being unusual to that account or

particularly high margin, high volume of transaction activity, would flag out and then be looked at by the trade compliance staff >> amy, i'm curious if you think regulators are going to take a much closer look now at credit suisse specifically. obviously there's the news of the day that we're talking about but that's of course on top of everything we have seen with the green sale fallout the factual that the company is looking for asset management division in general, there seem to be some fault lines appearing, at least within certain parts of the bank specifically >> yes, it is possible i know credit suisse has been in the news a lot lately for its asset management division, and some of the missteps that have been taken there, and the s.e.c. will look into all of these firms for this activity, and when they do an investigation, they're looking at the firm in general. so it would be their opportunity to take a look at those other

instances as well, why they're looking at this one. >>we are getting some reports that the s.e.c. put out any mail saying they're monitoring the situation. i guess my question to you would be what should we be looking for in the days or weeks to come that could maybe give us more granular detail on what that means, what that means when they say we are monitoring anything >> right, so right now, they have jurisdiction over the prime brokers that are trading in this account. so this firm, archegos is not registered with the s.e.c. it is a family office which is exempt from registration so it's hard to get into that firm through the front door. they're going to go in through the back door, which means going into those prime brokers and taking a look at the trading activity in the account, and they will certainly be doing that, and now, if they see that there is a potential fraud activity or anything nefarious

going on, that will give them the in around to the front door to get into our archebas, and look at what they're doing there during the firm because they do have the anti-fraud statutes to rely upon for any firm, whether they are registered or not >> amy, this is probably a pretty general question, and probably relates more to the banks than anything else, but what will the fed's role be in all of this in terms of review and assessing the possibilities of more risk, hidden risk within the market >> the fed is looking at the banking side front line compliance specializes in securities regulation, so i'll leave that to the federal reserve. >> okay. finally, amy -- oh, sorry, morgan, i was going to ask you, amy, we've had a couple of guests now who suggest that the gensler era is going to be a lot more progress and aggressive in terms of regulation. do you think that's overstating it, or do you think he can

actually, as commissioner, change the color and nature of the commission >> most certainly. i fully expect the incoming chairman gensler is going to make for a tougher s.e.c., and he will put the industry on notice that that's exactly what he intends to do so i would suspect there would be an increase in enforcement actions against firms and hopefully the examination program gets some focus and they can step up the number of examinations they're able to conduct because they're only looking at about ten to fifteen percent of the registered investment advisers every year, and that's simply not enough >> remarkable, and eye opening situation, amy, that obviously we're just getting our sea legs on right now we'll be talking about it for a while with your help we love turning to you thanks so much, amy lynch. >> thanks for having me, carl, thank you. >> wow, 10 to 15%. >> we're keeping our eye on energy today, as the blockage in

the suez canal begins to ramp up plus, coronavirus lock kdowns in europe have oil and gas producers under pressure today, you can see right there, different names and asset classes, wti crude down, for example, about 4/10 of a percent. there's more "squawk on the street" after this break, though, stay with us

why market bull lists inflation as top market risk despite earn couraging -- encouraging academic data. find that information more on cnbc.com more "squawk on the street" ahead.

welcome back to "squawk on the street," i'm dominic chu, stocks are mostly lower to start out the week with a few sectors in positive territory, consumer staples one of them, utilities as well. among the worst performing sectors, financials, energy, and real estate, leading to the downside over here within the real estate sector, in particular, it's largely the

office and shopping center leading us to the downside, includes names like kimco, outperformers on a year-to-date basis, but with covid cases on the rise in certain parts of the country there's a renewed focus on how much of the pandemic optimism is being factored into those parts of the sector. keep an eye on those, carl, i'll send it back over to you guys on "squawk on the street." >> dom, busy morning thank you very much, dominic chu, when we come back, a concerts cancelled, tours postponed, covid's real life impact for those who made a career playing music on the road we're going to discuss that with the founding members of the guster in a minute

- [narrator] grubhub perks give you deals on all the food that makes you boogie. (upbeat music) get the food you love with perks from- - [crowd] grubhub.

we've all been really challenged by this thing, but as an artist, and a live performing

artist, i think we have been almost as hard as anybody because our job is contingent on getting large amounts of people in this small space, which is not the current reality of this pandemic, and won't be for a while. >> that is a clip from a new documentary by the band guster highlighting the impact of covid for both the band and its fans but for an industry whose life blood obviously is live performances, what is the path forward. joining us this morning, two of guster's founding members, ryan miller, and adam gardner, the founder of the music nonprofit, reverb we're so glad to have you with us good morning, thanks for joining us. >> carl, you made it happen. >> yes, yes, we did, ryan. first off, i got to ask you, i'm going to watch the doc tonight, i'm just back and i can't wait to see it, but what would you tell people about t it's called "things come around," it's on you tube ryan, why was this important to document >> i mean, we were coming from a

band who's been playing a hundred plus shows a year for coming on 30 years, and we were only going to play one show in a year, and we thought it would be an important moment for our band and for our guifans to kind of be done very artfully, kind of capture this -- this moment and hopefully this -- this very strange moment that would happen only once, before everything kind of transformed into something else. >> yeah. adam, seems like an emotional project for all of you guys. i wonder if there's a moment you can point to in the doc where, i don't know, where maybe the band realizes that this is not going to be a short-term highatus and the path out is complex and complicateded for you, producers and fans and the venues? >> honestly, right from the beginning, let's see how this

goes no idea when music can actually come back the way it was, or if it ever will come back the way it was the whole thing was a grand experiment i don't know -- we knew it would be different there's a line in there from ryan, let's set expectations here this is not going to be normal this will be an attempt to re-create something live and have a special moment in this weird, bizarre time. >> just in terms of normal, i guess a new normal, ryan what is that going to look like as more get vaccinated, more venues begin to open up? what do you expect touring and concerts to look like and how quickly do you expect that to come back online >> i mean, you know, i think that this rolled out a lot more quickly than i would have imagined three months ago. i think this summer will be super sporadic i mean, if you live in texas or florida, maybe exactly like it was in the before times, but i think for the rest of the states, summer and fall are going to be a bit of a scramble.

i know a few festivals have gone up and toll tickets, sold out immediately. the demand is there and a huge amount of willingness from the band's part to kind of get out there and start their lives again, but a lot of us have, after having done this so long, are in no rush to be unsafe at this last moment summer and fall will be weird and i have a feeling by the time winter comes around we'll be back the first things we have on the books-books are in january and february of next year. in between now and then i think we'll do whatever we can to make it happen, but it will be a scramble for everybody. >> wow january and february of next year curious. obviously, touring is a significant source of revenue for artists and for content creators like yourselves and start the question with adam but i could ask both of you, the other piece of the puzzle is publishing seen quite a number of songwriters actually sell their catalogs recently. how are you thinking about alternative revenue streams? obviously, just made this

documentary. without the touring, how would you continue up to this point? >> a lot of us, because this is our -- year-to-year, a side hustle a lot of us focusing on that also, i mean, for ow band, kind of operated in these two or three-year cycles between writing, recording and touring we had to push up our cycle a little bit we're going to the studio, having these week-lon sessionwes test up, bubble up, record in the middle of touring, a touring cycle but have to do a phased shift into writing and recording and we'll hopefully pick up again. kind of used to the longer-term cycle. >> right no i think that's a fascinating point. how all of this is going to alter the creative choices, ryan, you'll make in probably the next at least couple of years. i wonder logistically, would it alter the bookings you would

accept would you ask fans to be vaccinated when they come in i know rutgers university, for example, telling students, look, coming back in the fall, got to be vaccinated. i don't know whether or not that's off-putting to a fan base or not. >> i mean, it's such a mine field and there are people that are on the front lines of this like promoters, who are -- i have a lot of friends who are promoters and they're worried about the legal aspects of this. people show up and get covid is this going to put a promoter out of business? you know, that's why i think we're doing exactly what we're going to be doing. we're going to take things very slowly this summer at least personally. they'll be social distanced shows that probably come up. not unlike the one we filmed in the documentary and i think anything that's not socially distanced will probably be a much smaller thing, or something that's been vetted like, we won't be on the bleeding edge of this stuff. mostly for just our own safety you know, i'm really hoping that

the vaccine will give mealities bit of super power you know, i've remained cautiously optimistic throughout this. so i'm hopeful once we get the -- the fauci-ouchy, we'll be able to get back to normal as things progress. so -- >> adam, you know, there's a couple other headlines this morning. the tribeca film festival, live events, from new york city the mayor of new york, at least where we are, says broadway's going to return in september, with spacing live music with musicians right in front of you, it's kind of hard to sit five rows back, three seats away from somebody else i imagine you agree? it's going to be a slightly different calculus >> yeah. i mean, hopefully better than the drive-in situation where people are really far apart. yeah, the energy of a concert everyone is shoulder to shoulder, they can feel that we're connected. even physically, because you're

touching yeah it definitely disperses that excitement and energy but on the performances and performers to reach out much as possible the fact people are dying to see live music, it will overcome whatever weird transition back to being shoulder to shoulder, whenever that can happen >> yeah. finally, ryan before we let you guys go, i don't know if -- morgan mentioned catalog sales we've had other bands on airborne toxic event talked nfts being the answer to songwriters making money once again. off of their work. are you guys thinking that far ahead, at least from a technology standpoint? >> i mean, i've been intrigued with the nft stuff the last few moss because i'm a super nerd and i exist in this. i think they're really bad for the earth. sorry, adam. we'll have to figure out a way to deal with that, but i don't actually -- personally, my

interfacing with the nfts as relates is i don't think it will be like, here comes this huge, new nshg stream for us i think it's going to be a way to take some of the -- take some power back in the bands hands and put it directly to their fans and make take out of some spotifies and facebooks we have to go through these filters, but i personally, i don't think there's going to be a lot of millionaires out of the nft space and i really don't think there's going to be that many that are musicians, but i'm learning a lot about it all right now. >> yeah. no we hope it's an exciting time for you guys i know i can't wait to see you live again and we reality aply appreciate coming on the show best of luck to both and congratulations on the doc. >> thanks. >> thanks, carl! safe to meet you >> bye, morgan. >> bye "squawk alley" is coming um in a minute. don't go away.

this is how you become the best! [music: “you're the best” by joe esposito] [music: “you're the best” by joe esposito] [triumphantly yells] [ding] don't get mad. get e*trade and take charge of your finances today.

good morning 8:00 a.m. at amazon headquarters and 11:00 a.m. on wall street and "squawk alley" is live. >> one, two, three, four -- ♪