good tuesday morning welcome to "squawk on the street." i'm carl cant nia with skrim yarm and david faber will join us in a second stocks set to take a breather as the market gets set to focus on vaccine administration comments from p.o.t.u.s. and the economic growth as imf boosts forecast for europe and the u.s. bond market finds footing today too. ro been a begins with the continued archegos fall out. credit suisse taking a $5

billion hit and top executives are out. encouraging signs for the economic recovery as the vaccine rollout. and senator mcconnell delivering a warning to corporate america saying stay out of politics. first we got an update today and firm numbers behind that. >> this is devastating the losses today took versus everybody else i know they are risk control has been --. one of those things unforgivivable if you don't know how to handle a busted client, then you shuttle be handling anyone this is just a really dark day for credit suisse. i can't emphasize this enough. lot of companies dealt with this firm j.p. morgan said we don't want to deal with these guys. they question the character. which i think is absolutely

right. goldman, mosubst morgan stanley very very fast this is remarkable and i think credit suisse has to recompletely reevaluate them i'm not sure they know what they are doing. >> we'll talk about it more with david. but jim, yeah. after a few blocked trades yesterday on some familiar names, suspending the buy back dividend cut by two-thirds we'll talk a lot more about cs by the way they say they have substantially -- the vast bulk of exposure, but not all. >> i kept thinking that is farfetched event and they were hung there is a way to deal with this you get rid of out so quick that your head should spin. but no, these guys, i don't know what they were doing i still don't know what they were doing they don't know what they are

doing. they don't >> jim we'll get to more of it in a minute. the other big story is reports that the president today is going to move up, jim. the deadline in which all american adults would be eligible for the vaccine it was originally may 1. now i think we're going to hear april 19th and a new benchmark of 150 million doses administered in the first 75 days of the biden white house. jim, our vaccination rate is five times the global average. it is really remarkable the pace we're setting. >> it really is. we lost j&j. 4.5 million they got from the netherlands. we would have expected j&j to have just a flood of vaccines right now. but instead because emergent screwed up i know j&j took ownership of that they didn't have that. it's emergent. but these other companies, pfizer, they are unbelievable. moderna.

these companies were unstoppable in getting this out. and the governments, the state governments seem to have gotten the hang of things i just -- you can't applaud them enough it really is incredible. and the whole system ended up being super charged. there was no rancor. no for state versus fed. and look, i got to applaud what happened at cvs walgreens and walmart. they just figured it out once you got into the private sector they really did a really good job. >> there was quick a realization in the beltway people would rather go to their local pharmacy or drugstore. glup has some new numbers out this morning they have been asking how worried are you about contracting the disease ever since covid began. it's now 35% of americans say they are worried about getting covid. ads vaccinations roll in and see

the summer and the risk as a lot less than last year. >> basically said listen no one should be dieing of this anymore. we have so many weapons against it that it is a severe flu that doesn't mean something we should be mindful of 60,000 people got it just the other day but there is a sense that you are not going to die from it. that it can be treated and that our country is getting a handle where you can go and where you can't. and if you really feel you are younger, you want to go out i think that there is a propensity to say in large parts of the country, go enjoy yourself talked about it the other day. with so many seniors so many people with co-morbidities have been vaccinate. it really is like. all right. when i look at these other

country, i cannot believe every day goes by and nothing happens. nothing. and the astrazeneca fiasco oh my. this is something our country did. say we were arbitrary at the beginning but now we're authoritative. and you are so right you go to -- my wife got vaccinated at walmart. which is really incredible she said, jim. walmart. not bad looking. maybe we should get our plants there. next thing you know we're going to walmart it is rather amazing these companies put on a good show, while they have done an excellent job. and now i think, i got my new jersey thing today look everyone is going to be vaccinated in couple of weeks. this is incredible carl. think where we were. there is a -- there are j&j vaccines in the system but we know the fda is looking very hard at this emergent plant

where you really did expect the vast majority of j&j vaccines would come from. zblif know i got my first dose on friday at a cvs very little friction in and out in a few minutes. i think a third of new yorkers now have had at least one dose and leads us to some stock stories. southwest bringing back about 200 pilots from voluntary leave. of course, goldman talking about bringing some traders back and london starting this week. and then norwegian talked to you about this two prong plan to get sailing going both in and out of the u.s. later on this summer. here is what they told you on mad. >> it is time to get back to cruising we have a solid plan the plan we put out to the cdc today is comprehensive it is robust it has at its cornerstone every on board is going to be vaccinated i challenge you to tell me of

another venue anywhere that has this kind of ironclad health and safety protocols in place. >> pretty forceful argument there, jim >> there are some behind the scenes some really terrible things how could the cdc not be talking to frank del roe the ceo they are not even talking. not willing to talk. what would you need? you can go a casino and nobody is vaccinated. 40,000 people in a baseball game if everyone is vaccinated? what are you worried about the variant. 400,000 people have taken trips away from here just a handful of covid. they know how to handle it now i think the cdc has to say we got to reward companies that are saying you cannot get on our, in this case, ship, unless you have been vaccinated. i don't know what the cdc wants beyond what can frank del roeio do.

he's changed the filters can't take kids. he knows they are not being vaccinated 60 people of willing able to go. they won't even talk to this man? what do they want? versus going to a casino and a saying anything goes i think it is wrong. they should at least open a dialogue i think it is outrageous they won't even pick up a phone and say frank let me tell you something, we are on board if you co-xyz but i don't know what else he can do >> the letter he wrote is intended to at least start that conversation, david. jim mentioned some fears about a fourth wave or various variants. fauci was on msnbc this morning and was asked are we in store for a fourth surge

and he said i think the vaccine is probably going to prevent that from happening. >> good. i certainly hope that's the case, as we all do guy. i mean, i don't know jim, listen. did you see the cdc coming out about surfaces, less than a 1/10,000 chance of getting the virus from --. i thought that was helpful is that going to hurt clorox and lysol sales. >> about time they recognized that it is aerosol now clorox has been hurt already because people stockpiled. but the cdc emphasis on surfaces killed people. it was about air the you watch the searing documentary on hbo about the diamondprincess. all people -- they just told everybody listen it is the surface, the surface, the surface. no it wasn't the surface. sure you have to be careful but it was aerosol it was the air and because they were so wrong, and i understand and david you are going say jim it was a novel

illness we don't know. but their insist ns. their dogmatic insist ns that it was surfaces really threw people off and causedeath. >> i don't know what the chances are anymore whether you can actually catch the virus from passing somebody on the sidewalk in that millisecond. that's my next question of course continue to watch people wear masks outside everywhere in new york but we'll see. we're making great progress. i guess is the key, right carl >> definitely getting more intelligence and it would have been nice to know a year ago. i wonder guys, remember when we all talked about the handshake being dead i think we were thil post nine i think that comment from walensky yesterday means it is back or maybe that ship sailed

already or not. >> i don't know. depends on whether you like the person or not. >> we'll take a break here we got some good calls this morning. snap, chevron, morgan stanley cutting the price on apple talk about credit is ia mite nu susen in the romo household we take things to the max oh yeah! honey, you still in bed? yep! bye! that's why we love skechers max cushioning footwear.

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course that carl and jim with your talking about at the top of the show significant losses by credit suisse and prime brokerage operation result of the winding down of the family office archegos of course we still have so many questions about so much of what went went on here. including how archegos was able to even amass what at this point seems to have certainly been as much as a 30, perhaps even 40% position in shares of viacom and very significant positions in shares of a number of other major companies as well. as you take a look at shares of credit suisse. by way, those shares have suffered and if you are an employee there. you got your compensation to a certain extent comes in stock. you got it not that long ago and you have watched it decline ever since not just because of archegos but also the greensal problems they have had there with unwinding that fund as well and relationship between credit suisse and that well-documente

by the "wall street journal. but jim on this one, i heard your comment you wonder it's risk management and also terrible trading decisions they were sitting on this position we saw goldman sachs blow it out. morgan stanley p and viacom the farfetch at 27 the vip at 29 and their own stock suffered as well they say it is stanley all now but why do these firms even have brokerage. i wonder sometimes does nam ra really need to have it when they lose $2 billion and there is county party risk for the hedge funds that do business with them too remember leanmen when they do the swaps. so even may be hesitant to do

business with some of them in the future. >> if you are trying to crack into the business maybe you offer prime brokerage or give a rebate something that attracts them i totally agree david. one of the things you learn at one of these firms is that if someone can't pay, you better get rid of it so fast whatever you own. it is never i remember there was a cline client i had and i went to the person in charge of my division. i said i don't know. i think the stock is too low i think we ought to hold it. and the guy said absolutely. picked up the phone and sold it. i thought you agreed he goes only idiots hold stock what are you trying to do? play the market what do you know about these -- >> i don't know where they got their culture. everyone i've ever dealt with at goldman knows you don't shoot first you. shoot the person first you tell the person who is in charge, you're done. okay and then you sell it and i can't believe that anyone -- anyone who touched this trade

their heads, they should be out on the street right now. because this was fundamental, david you. never do this you don't play the market request w the fetch. the farfetch >> to your point. >> -- high end passion we like it >> so your point solomon, ceo goldman sachs was on with "squawk box" can this morning. take a listen. goldman did exactly what you said they saw signs of trouble and they blew it out >> this is not the first time this has happened. and it is certainly not going to be the last. we'll certainly see this again from my perspective. our risk controls worked well. we identified risk early on. we took prompt corrective action to lower our risk, according to the contract we have with the client and i can't really speak to what other banks are done and how they have handled the situation, but i'm very pleased with the way our team handled it. >> there is that culture you were talking about now, it is interesting, morgan

stanley also is interesting here they also got, obviously -- by the way when you add up these blocks it does get to system enormous number. you have to be careful no double counting but enormous number how archegos had. how this was allowed continues to be a key question morgan stanley was a lead on share offering at the same time their prime brokable only a day or two later was say we've got a real problem he >> credit suisse had some inkling that this company was completely overwhelmed, with viacom archegos had so much viacom. and credit suisse must have known they had it. how could they not have finished their viacom

were they hoping for a bounce? i think they were literally hoping for a bounce. which is just elemental that you don't do that. remember when tencent and goldman blew it out -- i i thought there was some rule that made it that there was some seller that was just orchestrated by the government no it was goldman saying look we don't care what price you get out. -- a joke. >> credit suisse owned, i think they were down 55 million. again this is archegos economic control but i think may may have blown -- maybe they did get out because we didn't see any big block trades of it yesterday but your point is well taken by the way credit suisse has been doing really well on investment banking. a leaders in spacss skpsmts advising a decent amount of deals in terms of m and a. this though has just come back to crush them.

and of course they have dismissed a number of people associated with it but it never fails to just wonder what were they thinking >> did someone actually say, you know, guys, look, if we hold on. paramount plus is doing really well or if we hold on maybe -- i mean really there had sob someone in that room who literally was making one of the dumbest arguments hey -- i think we ought that make -- let's just make a stand here i mean that's not your job it doesn't matter. wouldn't you love to know someone saying you know i have historically really like cbs programming. they are the number 1 network. i think we ought to let it right because "criminal minds" remember that, that was worth a fortune. and let's see if we can't get'em to do something to do, i don't know, a csi wall street.

there had to be stupid people there. because you would never do what t they did never. >> it's easy to chuckle at if you took a dark view you would argue this reflects the difference between valuations across assets right now and fundamentals right? that disconnect. how can this be happening given what we know about the business itself. >> well when it came to viacom and discovery to a certain extent we ask that question every day. and again these are strong businesses, but, you know, the idea that free cash floe at cy viacom is going to approach what it was no they are going to be spending that for some time to go and did manage to get a lot of more money to do it with given they were able to sell that stock at far higher level, carl your point is a good one well taken we see it a lot in the market right now of course. which we'll get back to taking a broader look at, i guess in a few moments. >> david you left one thing. the nft they might have gotten

for "i love lewis. >> ahucy." >> ah. t>>hat would have been something. >> back anyway a moment. ♪♪ ♪♪

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all right. less than two minutes before we get started with trading let's squeeze in a "mad dash," jim. it's apple. >> two notes today cowin talking about the surfaces stream doing much better and really just basically saying this thing

growing to the point that it is a needle mover and the other piece is curious by katie uberte raising forecasts. but there is a price target cut. if you read through this the cut is about the compression of price to earnings multiples in the peers. and might think bying about the microsoft. might be thinking a google i do question how much to emphasize the cut versus the forecast i wouldn't be surprised if apple has an upside surprise and that does matter and so i would read less into the price target cut and more into the service revenue forecast going up and not care about the price compression, david let that take care of itself.

>> okay. kind of been flat, we can see, for quite a while now and down about 5% this year >> it is the bargain in the group. one of the things that's really incredible that faang really had lag. ao i think people really jumping on it because they are cheaper than the highest growth stocks you know and selling at price to sales not sustainable for the average institution. >> we're going to watch it as we keep our eye on faang. there is the opening bell. jim, some of the other growthy names that have seen a little bit of compression is peloton. and today it is cs that initiates outperform but 164. they talk about the company outinvesting peers margins at 40 this year going to 45, 46 by fiscal 25. >> this is one of those things where i love the headline,

beauty in the eye of the bike holder ha ha a, credit suisse, comedian on two different things. risk control and research. but i do like the call only because we're know now seeg who's made a stand and able to carry out what they had during the stay at home i will saythis though. it's not been the way that people are investing if it is stay at home it is being sold if it is a company that got any strength from being at home, taifd. people don't want it.david people don't want it foley i know a very terrific guy, runs peloton. because he stands for a great brand but it is going to be a while whether we see people stop ordering because they are going to spin classes. spin classes, david. >> yes imagine that so again for the larger question of the stay at home trade, for lack of a better term at this point.

you still would stay away. even though many of those stocks have come down from highs. >> we keep getting price target boosts for united airlines southwest. people want to go away so much they want to go out so much. what they don't want to do is ride on a peloton inside they want to take a bike trip outside and then they want to be with their friends this is a big change and these airlines reminds me of the chip shortage, carl took everybody by surprise there was so much buying in cars and now you are going to see a shortage of planes and these components don't want to admit it on southwest, which came through with some big orders. >> that's one reason delta started selling the middle seat sooner than planned. because they were having to cancel flights on lack of staff. i see ual says they are going to hire 10,000 new pilots by 2030 obviously a long range target. and tsa passenger throughput

we monitor that pretty closely 1.5 almost 1.6 million yesterday. we've had about three weeks of one million plus every day that's the longest stretch of the pandemic. >> and this is without being able to go to europe think about it and with flights operating to asia, half the number of flights are operating. they are gonna have to boost everything the cdc has been pretty good about going outside but i think that we're going to see a remarkable resurgence in air traffic when they get things, look at that when they get things under control in europe whenever that happens. i think those people are ready to come here i wouldn't be surprised if macy's, which is heavily reliant on tourism, has a fantastic quarter once things open up. that is the one that has the best leverage. david i think something is happening people are underestimating. and that is the amount of people money have in their pockets. if you have a job, you haven't

spent the money. it is time you are going somewhere. >> you are ready to go yeah that said, jim, as we watch some of these stocks regain a great deal of what they lost, and obviously we pointed out many times they have sold a lot of stocks, so they had certainly increased their share count substantially over this last year i still wonder we bring the ceos on we talked to gary kelly about the future we talked to so many of them briz travel continues to be a real question mark business and gets to the larger question of as we finally get back to reopening, how many people will be coming back to the office 70, 80%, 90? how many executives and salespeople and everybody else will take back to going for the meeting, getting on the airplane all the time i think about road shows, for example, that have been going on lately, many times for spaces. nobody is traveling for these

things and they are perfectly happy. they can do a zoom throughout the day. and i just wonder to come back to airlines here, business travel, you know, could be years before it really fully recovers, at all. >> how about you are a major bank and call your top people in and say i want everyone who is vaccinated to call different clients and say get out there and see them listen we want to come see you we miss you. can then take you out to a fancy restaurant and they have you go to a show or whatever. and next thing you know, that firm is doing more business. i think that's what's going to happen i think it is going to be -- >> you do? >> yes i do. >> so you think this goes right back -- so you do believe it goes back to what it was. >> yes. >> so many of these companies, they have been doing business and extraordinarily well by not leaving their homes.

and saving a great deal of money as a result. >> but they boosted the expense structure for the fourth quarter because he expects people to go out. i don't know he's about as good as it gets. he had a major quarterback and i think he's playing defense he doesn't want people to stray. so look, look it is not going to be as much but they have raised the tickets very substantially for individuals. and i think there will be lot of competition again and next thing you know we're going to be saying, goldman went to see that client you get on board that client obviously is willing to see someone who's vaccinated. so it may not get back to all the way. but i do think that there is going to be fear that j.p. morgan is going to get the client if goldman doesn't go carl -- >> -- interesting. i was going to say, at what point does darwinism between firms and employees return

when is it an edge when you are closer to the boss david the journal has got a great piece today about commercial real estate an exclusive where they look at some office leasing trends and their general takeaway is that big companies are committing to big cities but with a lot less space and lower reb re rents for longer periods of time as they do a big cost reset. >> and that is going continue for some time. it is funny. i had a couple of conversations with experts in the air yesterday. and i think the thought is that a lot of space will be reconfigured for the new reality in some fashion. so you are going to have to as a landlord at least there is going to be a cap exinvolved and you are going toexcept lower rent, stanley ubstantiallr in many of the key metropolitan areas. and hard top imagine you are going to fill the same space as you did previously or at least

have a need for a great deal of additional space which does get back to commercial tenancy and what that looks like for the landlords, and even hotels and the like, jim. again, we talking about what we expect potentially and hope will be a boom in leisure travel and it may very well happen quick. but longer term many of those hotels also rely on business customers. so i guess your thinking is it will eventually come back, given what you said earlier. but i think there are still a lot of question marks. >> look, i'm not denying that kind of customer won't be back i just think we tend to take it for granted that zoom worked and i thzoom is real good. i use zoom all the time. but i also think that if i were in business, i would say, look, it is too significant. why don't you go to that city. why don't you see if that person is willing to see you. just fly there give it a shot because we're so concerned that morgan stanley is going to get

that business. i'm using the financials because i've been in a world where i know you want to see them face to face. if i worked at one of these giant software company, i would be concerned it won't be as good. but i think it will be made up by the individual person who is catching up and going to a wedding every weekend. you don't have a wedding every weekend. some people are very con vifl and they have something to do and carl there's people who have been so cuooped up i just think that it is going to be remarkable. >> we'll see i do want to get you on oil briefly here a lot of the oil companies leading the charge in what is a pretty tepid tape. goldman cuts cvx to neutral. they talk about it being an

outperformer since 2016 and better upside elsewhere they argue. >> cvs, i think chevron is the best in the group. i understand they like exxon more what i think is most interesting is we're really getting people dumping on pioneer j.p. morg saying buy the hold. why? because pioneer is going back to m and a and issuing 22 million shares and people don't want to see that what happened here is that there was a shy away from m and a move and there was a return of capital to shareholder move. i think people are concerned it is going to lead to a wave of m and a and that is going to hurt the group. i don't think so so but that is what people are worried about. >> interesting as you know we're going to get an opportunity to talk about a

lot of different things involving oil and gas. and carbon capture and sequestration. because we are going to be joined by darren woods ceo of exxon mobil right here on the program. looking forward to that conversation certainly i know we all are. so did want to let our viewers know. >> and your -- >> -- woods. my colleague >> i didn't know. >> you didn't know >> no i didn't know. >> you can't tell people you didn't know. well, if we were together in the office you would have known. >> okay. >> but cnbc won't let me come back. >> -- >> because i crossed the boarder and that's it. we can never go back i'm never allowed back. >> i broke all the tv rules by saying that, speaking truth that i didn't know -- fantastic great job, david great job. good get david. >> i'll call you later we'll discuss it now that they all know

>> live example of what gets lost, guys what gets lost when we're not sort of in the hallway together. chatting at our desks. >> diamond hands favors got a good one >> let's get to bob. >> we'll all be back at one time and i look forward to that as well flattish open but don't kid yourself this is a very powerful rally we're in the middle of the limit movement from energy which has had trouble recently but industrial, banks, tech, the stuff that you look for to move the market, kind of on the flat side but when i say this is a powerful rally, i mean, like what are we doing? are we buying travel entertainment stocks because we're going to all go out in the second half of the year? are we biefing stay at home stocks and the answer is we're buying a little bit of everything look at the stay-at-home stocks. i know they are not supposed to be popular anymore but you know

yesterday there it was home depot and lousywe's and tae at new highs people still apparently have money to buy things for their home and are continuing that lot of the big technology names. the growth sectors value a new high yesterday and growth names at new highs. microsoft and alphabet and facebook at new high texas instruments. new highs yesterday. and many of the chip stocks slammed research constantly at new highs. beneficiaries stay at home but these have been market leaders a long time. at the same time most of the travels are not new highs but awfully close. as the close yesterday most of the big names were 1-5% from new highs. delta, marriott, carnival, most of the big airlines as well. not new highs but darn close to

it so everything is rising at this point. industrial stocks they keep pointing out every day the old school stalwarts, 3m, for example, honeywell, all the railroads, eaten and dover these are really deep big global cyclicals benefitting from the reopening story. what's going on? are we staying home? buying things for the home are we all going out and travel and the answer is a bit of both and that is why the rally has within so powerful so broad and so much participation. the s&p is up about 5% the last seven days today the s&p is up close to 9% for the year the earnings growth up close to 5% thanks to my friend nick coalis at data tyreek for pointing that out. so the s&p is moving faster than the earnings growth and the earnings growth is pretty good once again it looks like the analysts are a little too conservative in the numbers. that is what the market is saying we'll see if that happens. remember we start earnings

season next week and the only thing folks anybody wants to hear about is the reopening story. normally ceos are going to be very cautious. this time i think people want to hear about the reopening story going to be a very exciting earnings season starting next week carl back dwrousmt. >> bob thank you. and of course that narrative is going to have an impact on what central banks around the world may say. rick santoli >> you know carl, it doesn't seem to have a huge impact on what central banks are saying yet because of course we had on yesterday and all the strength and acknowledged how strong the jobs report but nae nae shall we put the stimulus away is what she said and i guess that is what's going to get exciting in the future. because it doesn't matter what they say now it is what the future reality is that they are going to have to deal with that will matter

as we start to dip under 6% with regard to unemployment and we will do that in the future and of course the notion that we're going to have seven figure jobs reports, it almost seems inevitable look at the treasury drift. a chart of one week of 10-year rates and seems as though once again we're drifting from the mid 170s high close which was on the 31st 177 the high intraday. and maybe you see the drift in the most longest security, 30-year bond end of february look and 245 is the high close and we continue to drift away u. you can see it in the note over bond spread known as the nob the nob spread back one year it is basically the widest its been in a year and maybe it will find footing here or not

what many traders like to look at the nob spread for is momentum on long data treasury yields when that spread was flattening out, many said hey, probably tends are going to zoom through the 175. so we want too see if it starts to make a footing of consolidation in the mid-60s level. and if we consider the fact that foreign exchange and strength in the dollar has altered some perceptions the last couple of months but is starting to weaken again. it is weakening because of the euro currency. a two week in the euros. you can see we're starting to pop through the recent range open the chart to february, end of february and you can clearly see that if we start to trade on the drop above the willed of the chart that was 118:50 we'll start getting momentum and we're about ready to test it intraday right about now. guys, back to you. >> rick santoli. so as rick said santelli.elli.

so as rick said santelli vix below 18 for third straight day. we're back in a moment

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i found it completely discouraging to find a bunch of corporate ceos getting in the middle of politics my advice to the corporate ceos of america is to stay out of politics don't pick sides in these big fights. >> that's senator mcconnell weighing in on the ceos outspoken about issues such as the new voting laws in georgia jim, people largely reflecting on the fact that mcconnell has spent most of his career giving corporations more political voice, not less, but also this as "the washington post" this morning puts it, an ongoing fraying between the gop and corporate america. >> yeah. look, i think that what's happened during this period is to quote marc benioff, business

has been the biggest force for social change. it's incrediblehow well business has done in trying to influence things now, you could see business is left wing. i come back and say business is trying so hard to become a force of good. now, again, david, a force of good may mean a force of bad to some people, but we've seen corporations get very involved in order to be able to be pro social change and i think that you could argue that if you're a gay lesbian, you're happy. if you're anti-gay lesbian, you're not i do think anti-gay lesbian is not in the keeping of constitution >> no. listen, it's so interesting, jim. and let's not forget, we've been following this long before the pandemic sort of overtook us, the growth of esg investing the pressure being brought on many corporations in terms of their carbon footprint, in terms of their governance and the way

they approach the world. social justice perhaps being a part of that as well and the feeling on their part that it wasn't just about shareholders but their other constituencies including the consumers of their products and their employees that made them feel as though they needed to engage, but there's a danger there. it's something i've spent a good amount of time talking to ceos about for our evolved series online, including chuck robins from sysco take a listen to what he had to say. >> when we decided to talk externally, what are we trying to achieve in some cases the just a fundamental agreement that our country and others need to hear leaders trying to speak to issues to bring around hopefully more unity than we see in the country. it depends on the issue, but we spend a lot of time talking through, and we don't do it lightly, and some of them are super clear and some of them are

not, and some are more controversial than others. it's a complicated world we live in >> mitch mcconnell may not want to hear from ceos, but the sense is i think certainly when you listen to mr. robins that you are going to continue to see many corporations engega we'll be right back on "squawk on the street.

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good tuesday morning welcome to another hour of "squawk on the street. i'm carl quintanilla with david faber and morgan brennan we're about one point away from 40.83. rick santelli is with us this morning. >> this is going to give people a big jolt because jolt really is a hugely strong number. we are expecting a number around

6.9 million job openings we ended up with 7,367,000 it is the biggest job openings number for jolt going all the way back to january of 2019. 2019 when it was 7,478,000. needless to say it's the first number over 7 million since february of last year. no matter how you slice this number, it's solid and as the revisions come in, i have to make a revision. it's the second number since february to be over 7 million because last month's 6,917,000 pops up just shy of 7.1 million on a revision. if you're looking for the jobs number last friday to be even more meaningful, this gives you the context of strong growth that may continue, of course, to effect the economy in a positive way. david faber, back to you okay

thank you, rick santelli, and now let's get to creditsuisse. taking advantage of the meltdown of a capital company leslie has more. >> david that's right massive indeed credit suisse down they've been down 20 % over the last month amid a slew of announcements this morning the big number is $4.7 billion that's the charge the firm expects to take from the forced unwinding of arkhegos capital management it's expected to trickle down to the bottom line causing a nearly $1 $1 billion pretax loss in order to get capital ratios back to the target levels, credit suisse is cutting the dividends. several executives are taking the fall the head of investment banking

will step down to be replaced by christian misner the firm is launching a set of investigations one aimed to pinpoint exactly what happened with archegos. the other on another issue, green sill it collapsed last month. credit suisse had to close about $10 billion worth of funds they called the loss in prime services unacceptable noting that in combination of the recent issues around supply chain finance funds the firm has caused, quote, significant concern among all stake holders. in a statement it was said that, quote, serious lessons will be learned from these situations. >> yeah. leslie, of course one wonders what the serious lessons will be i guess that certainly is a key question here. we have so many continued questions about archegos and

what was going on there. and what the asset manager who ran that fimpl was thinking amassing as much as a 30 or perhaps -- it seems inconceivable, 40% economic position in vie come but when it comes to credit suisse, i wonder does this raise questions yet again as to whether they're better off merging with ubs and becoming one giant bank >> you have to look at the risk controls taken among some of their peers versus what was taken at credit suisse that's something that a lot of people are talking about whether or not they had the appropriate internal controls in place now, does a change in leadership help that? does it improve the situation for them the question remains to be seen. if the new people who in terms of the risk in compliance, they're going to be there on an interim asis, it's unclear exactly who they will be replacing to a more permanent role that said, is it something that's kind of emblematic of the culture, or can it be tweaked

with new blood in those roles? that i think is something that the various stake holders as the ceo is mentioning will be keenly focussed on. >> i thought it was interesting "the wall street journal" this morning had an article, archegos saga, suggesting that the collapse we saw has shed a light on prime brokerage and that it's a situation that could end up playing to the biggest bank's advantage in how important that is as basically a nerve center for business at some of the key banks and that you really sue sau the strengths and weaknesses based on how it shook out among the big banks over the last couple weeks >> prime brokerages are a very lucrative part of these banks. it's also a very competitive part of the banks economies of scale play out. we saw it with the firms that have not experienced losses. i mean, it's basically binary. you have the goldman sachs and

morgan stanleys taking effectively no losses as a result of this and then you have the credit suisse who are on the complete opposite side of the spectrum, and jpmorgan had a note out saying the losses globally among all the banks could total 10 billion. it's remarkable to see a situation like this where some firms have come out unscathed. they've collected their fees presumably from the clients and then others have just had some significant issues adds a result of this. >> leslie picker, thank you for bringing us the latest the imf releasing the latest world economic outlook this morning. projecting a stronger global recovery than the previous forecast with world output growing by 6 % this year but the group is predicting a divergence in growth rates due to the pandemic. the u.s. is expected to grow by 6.4% the euro by 4 .4 and china by 8.4% let's bring in sara eisen along

with economist geeda sara, take it away >> morgan, thank you so much good morning, geeta, thank you for joining us >> a pleasure as always. >> 6% growth i don't think we've seen that a rate like that for the global economy since the early 80s. what's driving the forecast? >> so a big chunk of that is a consequence of the u.s. 1.9 trillion stimulus that was deployed that's half of the upgrade and the remaining half is if you look around the world, it's still very much the case that countries continue to adapt to living with the pandemic and so even though virus cases are high, the effect on economic activity has not been as bad as one might have anticipated i would say these are the two big factors. >> for the u.s., the outlook

some say is a little conservative at 6.4 % growth for 2021 is it vaccine in stimulus? talk us through what could get us even faster along some of the wall street firms have us north of 7 % growth for this year. >> we haven't included anything from the more recent proposal of the infrastructure package, the kind of jobs plan. so we don't have that. so i don't know what the other institutions are doing 6.4 % is a very strong growth rate in fact, if you look at large economies, the u.s. is the only large economy that in 2022 was expected to have a higher gdp than it would have had in the absence of the pandemic based on the prepandemic projections. so that, there isn't another major economy in that situation. so this is a very strong recovery >> i noted that 2022 growth rate goes down to in the threes for the u.s. are you factoring in a tapering

of the extraordinary asset purchases, the stimulus plan from the federal reserve and potential liftoff from zero interest rates in the forecast between this year and next year? >> no. our assumption is that interest rates will stay where they are into 2023. so the assumption is that the fed will follow through on what it's been saying and that there will neither be a substantial tapering of asset purchases or there will be interest rates will stay low >> it's morgan i'm curious, i've seen a number of forecasts suggesting the u.s. could actually be the biggest driver of this global recovery this year. yet, you guys have 8.4% growth for china, suggesting china could be why? >> if you took it in, again, still the u.s. economy is much larger and in terms of the impact, growing at 6 .4 % is a big positive if we look to the impact of the 1.9 trillion package on global

growth over two years, that's 1% so both china and the u.s. are very large economies, and the growth certainly is helping juch uplift the focus the difference is in the u.s. in addition what happens to interest rates really matters for the world as a whole and so there is that second aspect to it which is in terms of what's happening with interest rates and possible tightening of financial conditions that might come about if we have very for if we see a faster normalization of monetary policy >> no question a lot of optimism out there. and your numbers reflect that. at the same time, france is in another lockdown many parts of canada including populous places like toronto are in lockdown. we have variants from south africa to brazil and new york which are still a little bit unknown as far as the vaccine's ability to protect against

ho howdy -- >> that's a really big feature of our focus this time, very different recoveries even within advanced economies, within emerging and developing economies. and one factor is, indeed, the pandemic and the speed of vacci vaccinations the rollout is not the same pace everywhere that is slowing down recoveries in some advanced recoveries and in other parts of theworld, most of the fiscal support that was provided in 2020 has been unwound or is unwinding at this point. so there's much less support in the system we're seeing divergent recoveries and the only income group for which we have a downgrade are low income countries where we have a significant minus .8 percentage downgrade this time round. >> you mentioned that the new stimulus plan from the biden administration is not in the numbers. is that growth rate in the u.s. on firm enough ground to

implement corporate tax increases, individual tax increases? can we handle that with still so many pockets of our economy under pressure and so many millions of jobs still gone during the pandemic? do you think we can handle it? >> well, so the infrastructure, the package, jobs package has a big component of spending on infrastructure and bridges, roads, water, and that would be very positive for the economy. on the tax front, of course, taxes going up can have some negative effect. we haven't fully done the analysis, but we did look at what happened in 20 17 when you went in the opposite direction when corporate tax rates were cut from 35 % to 21%, and we were exposed, actually, a bit surprised at the supply side effects in the sense that we expected that to have a big boost on investment and it did not. if we kind of go in the reverse direction, we don't expect the negative effects to be that large, especially -- i don't

think it will offset the spending boom we should expect >> why do you think that happened money was spent more on buybacks >> that's what we saw. money was spent more on buybacks i think one expla night is the fact that over time because of rising market power, the profit shares of companies are very high these corporate tax rates at margin didn't seem to be a big determining factor for how much of investment to do. >> you came out this morning in support of treasury secretary yellen's new proposal, the global minimum tax rate. isn't that difficult to implement? so many tax systems for countries around the world, not to mention are countries really going to want to give up their competitive edge when it comes to attracting corporations when it comes to lower taxs is that realistic? >> you're right. i think there is -- we have always been in favor of having a global minimum corporate tax to prevent kind of tax avoidance

and tax shifting but the practical challenges are immense. i mean, there's a reason it hasn't happened. it's not easy. you have the iecd plan to have some kind of a minimum global tax, but those are at much lower numbers than the 21 % proposed here it is a big challenge. there's no doubt about that. >> thank you so much for joining us chief economist of the imf new forecasts driving a lot of the action today we appreciate it an all star panel for the imf debate on the global economy. the head of the federal reserve, the brand new head of the wto, and of the euro group. you can watch it live thursday, 12:00 p.m. eastern on cnbc.com and cnbc's facebook, twitter and youtube pages. a plug there for that. >> sara, thank you

still to come this morning, a closer look at airline stocks taking off as the industry ramps up the hiring. plus just what could billions in new tax hikes from the proposed new york state budget mean for new york city? we're going to check in with nyc controller and candidate and former cnbc colleague. and the crypto craze tops 2 trillion we're break down the rally in bitcoin and ether. big show still ahead on squawk in the street. don't go anywhere. 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

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could billions in new tax hikes bring an exodus of wealthy people from new york city under the new york state budget plan milli millionaires would pay the highest combined state and local tax rate in the country. we are joined by a familiar face to long-time viewers michelle is cnbc's former chief international correspondent. my former colleague for so many years and still, of course, a good friend. michelle, good to see you. you know, first off, why are you running for controller certainly in an environment like this where one would imagine the difficulties just mount every day. >> david, i am running for controller because as you well know, i have covered financial crisis all over the world. and what i saw over and over again, and i'm seeing it here now in new york city is that

those who can least afford to pay always end up paying the most so many people get left behind, and i'm running for controller because that has to stop here in new york city. the controller's job is to follow the money and that's what i did for decades. i have been following the money, investigating how it's being spent. we have got to spend better. the budget under de blasio has gone up from $72 billion to $92 billion a year and ask yourself does the city feel $20 billion a year better to you it's not that we're spending too much it's that what we spend, we spend badly. i saw at the height of the pandemic before i lived in queens hundreds of people in line desperate for care at elmhurst hospital even though the spending went up by more than 400%. we're going to have a comeback for new york city that's equitable and just, we have got to spend better and make sure we

don't leave anybody behind >> yeah. well, you are talking to somebody who did know those numbers moved up to that level and of course, city employment by the city is also enormous, 315,000. you may know the current number, 320,000 on the municipal payroll. essentially the city of cleveland works for the city of new york but now we want to raise taxes again. now, i know you well, and i heard you for many years when we would talk in the hallways, not just on air. i can't imagine you're necessarily in favor of raising a tax rate to a level at which it would seem might drive wealthy new yorkers to consider leaving particularly now that they know given the pandemic and what they can do with zoom that they probably can leave and still be fine. >> listen, david, you know, i am all for the wealthy paying their fair share when it comes to taxes, there's a huge difference between what is done at the federal level versus what is done at the state or city level. and my position has been that

while everything needs to be on the table, anything we do in new york really has to pass the do no harm test and by that i mean that we should not be pursuing policies that are going to drive more people, more businesses out of new york city. now, thanks to the biden stimulus plan, new york city has been given two years of brooelting room. but a strong and sustainable recovery after that for new york city has to attract investment, businesses and people back to the city and my concern is that the tax increases from albany do not pass the do no harm test >> michelle, it's morgan good to see you. >> you too, morgan >> i want to dig into this more. it's not just about spending more it's about how you spend the money. i get that we had the new york state controller on last week. he highlighted the fact the stronger than originally expected wall street bonuses are going to help plug some of the deficit at least for new york city as well as the state. you take that and add in the 12 billion no strings attached from

the federal government to the state bundget as well i guess honing in on the city, how much really needs to be done or really needs to be raised or changed to make those numbers actually work and balance out? >> so like i said, we've gotten two years of breathing room because of the biden stimulus plan then we can figure out what does to use an of the used phrase on cnbc look like, it feels dyst dystopian. people coming in the office at 60% occupancy rates. what does the post pandemic office look like work from home personally, i think it's overrated and overstated but the impact will not be zero. and if there is one spot in the country that is most vulnerable to it, it is midtown manhattan which generates so much of the city's gcp, the gross city product. so we will know what midtown is going to look like how are we going to have to

reinvent it. what do tax revenues look like what do real estate taxes look like when we reassess the value of the building. how about the small buildings that live off the office workers. how much do they pay in taxes? and then we'll know. >> yeah. and of course, as you know, michelle, well, i mean, property tax is the largest single component of revenue for new york city. >> yep >> and we're not just talking residential. we're talking that exact cohort you're discussing, commercial property owners and landlords who are in a much more difficult position i wonder, though, if you win this, one of your pain responsibilities is going to be overseeing the pension fund. pension funds of the city of new york enormous numbers how are you going to approach that particularly from an esg standpoint these days where we see so much more activity on the part of pension funds like those of new york? >> i think esg principals are

extremely important. that's a lens that we should be looking at when we discuss how we're going to invest new york city's pension funds there are five pension funds and, of course, number one you've got to be a good fiduciary. you have to produce the best risk adjusted return you can because our hard working city employees will rely on the money or do rely on the money already for their retirement that being said, there are frameworks that we can look at when we invest to make sure we're not violating the values we have as new yorkers but number one it's making sure that our city employees can retire and as you know, david, i know my way around balance sheets, cash flows i've served on an audit committee of a financial institution. i feel comfortable managing the pension funds. every pension fund also has a board. it's a group decision. i'm not going to be the only person deciding these things, but definitely esg is extremely

important. >> yeah. and final from me is a long-time new yorker, i think i speak for many of my fellow new yorkers. maybe you can try and do something with sanitation? i don't know figure out a way for them to figure out a way to clean the streets and the sidewalks? i know we spent a lot of money on it, but something is not working there, michelle. >> so to highlight one data point that's extremely important and why this upcoming election is so important. maybe you'll remember this the population of new york in 1990 was smaller than it was in 1940 and that is because of the 70s and if we don't get the selection right, we could go back there again and when you have a tax base that is so eroded like it was in the 70s, what happens? all kinds of things fall apart the subway falls apart we can't pay our teachers or firefighters you remember the tax strike where we had garbage on the streets for a full week. i mean, it could get very, very

bad. by the way, though, i'm very optimistic did you know that tomorrow i am going to campaign for 24 hours straight starting at 5:00 a.m. i'm going to go all the way until 5:00 a.m. on thursday because i'm going to prove to you that new york city is back, and we are once again the city that never sleeps. >> all right well, knowing you as i do, nba works harder i know that much as well >> thank you >> good luck on the 24 hours i could not pull that off. we'll be following closely >> follow me on twitter and instagram. we're going to post like crazy >> all right good i'll be watching closely michelle, thank you. >> i feel like there's a no sleep until brooklyn joke to be had. that's great to see. it's time for etf spotlight, looking at ticker fdn. big boosts from the big holdings, amazon, facebook and paypal atlantic equities upgrading the

company from neutral to overweight up 350% over the last few months the s&p hitting a new high, getting a boost from jolt's data we'll be right back. stay with us ♪ ♪ (upbeat music) ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ (vo) nobody dreams in conventional thinking. it didn't get us to the moon. it doesn't ring the bell on wall street. or disrupt the status quo.

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after touring a virginia vaccination site, biden will move up the date by which all states should make all adults eligible for vaccines. oregon and hawaii are the only two states who have not fully expanded eligibility by the 19th tokyo olympics, a water polo test event test for this weekend has been postponed technical officials couldn't get into the country due to covid

restrictions and a website run by north korea sports ministry says that country won't be spending athletes to the olympics to protect them from covid-19 that's a disappointment for south korea which hoped to use the games to improve relations with the north and the montana governor has tested positive for covid-19 he's experiencing mild symptoms and will isolate ten days as his contacts are tested. "squawk on the street" will be right back don't go away.

major averages not moving much this morning. we did get the s&p 500 record high a few moments ago at 48.83. we are joined this morning by the cio of morgan stanley wealth management lisa, welcome back good to see you. >> it's great to see you thank you. >> i wonder we've had some technicians in recent weeks look at the month of april.

it's historically strong we haven't had a down april in about nine years i wonder if you think there's a risk of a blow off top at any point in the next four weeks >> i do. i mean, to your point, april always does have fantastic seasonality. but we're getting to the point where not only are valuations likely to be limited, be a limiting factor. but we think we're going to start to see some negative rates of change. whether we're talking about moving from maximum policy accommodation to something that needs to incorporate the beginnings of taper talk, whether we're talking about the comparisons getting harder i mean, some of the numbers that we're putting up right now whether we're talking about the ism manufacturing data, the job

creation data. sequentially, we're going to start getting into negative derivatives and the rate at which earnings revisions can continue to go up is just going to slow down and so our view is that so much good news, so much good news is priced into this market that at some point we're going to have to take a pause and really start looking forward to 2022 and realizing that we are going to sequentially slow down a lot >> right i wonder if you think the catalyst for all of that is going to be something seasonal, whether or not we start to get a fraying of narratives from the fed itself about tapering, or whether or not as your colleague mike wilson argued, there is still ongoing rotation set to be done out of some of the megacap

tech, for example. that would have an impact on the overall averages >> yeah. i think that that's exactly what the catalysts are going to be. they're going to come at the sector level as we go through the earnings season. and as folks recognize that the work from home winners, many of those megacap tech names who were certainly dominating the last 12-year post great financial crisis cycle are probably not going to be the ones putting up these great, positive up side surprises with great positive earnings revisions. yes, will they be able to grow earnings at a nice, healthy double digit rate? sure but are they going to be the ones putting up the up side surprises? no and that's where people are going to have to continue to seek out those more pro cyclical

names in financials and industrials and the energy sector in some of the consumer discretionary sectors. that's where the action is going to be, and that rotation is going to happen underneath the surface of the index, and the index may get stalled and stuck. >> shifting asset classes for a minute here, crypto currency the fact that morgan stanley became the first major investment bank to start to offer clients a way to invest in this asset class, i think rolled out last month three funds, two with galaxy, one that's a combination of fs investments and nia dig. what is the case you're laying out for clients to invest in bitcoin or other cryptos right now and how are you balancing that or thinking about that against things like stocks >> certainly so i want to be really clear right out of the gate. our analysis is really that crypto currencies is a brand new

and emerging asset class that requires people to understand how it may or may not fit into their particular long-run plans and portfolio strategies the second thing is we make very clear that because we are in the early innings, this is a highly volatile, highly speculative asset class, and it's probably only appropriate for those investors who have an investment profile and a risk tolerance that can endure that now, all of that being said, one of the reasons we're seeing the emergence of the opening for a new real asset, if you will, similar to what we saw in the late 1970 s and early 80s for gold is that many of the traditional asset classes today

are really fully valued. whether we're talking about the extraordinary level of expensiveness of bonds with yields pinned at zero. whether we're talking about 23 times forward endings ratios, price earnings ratios on stocks, or whether we're talking about cash that adjusted for inflation is going to probably produce negative real yields this is an environment where investors not only need to seek out potential stores of value or wealth preservation, quite frankly, but also new vehicles to help them with diversification of those portfolios we're setting ourselves up for a situation where if interest rates go up a lot, it could be that both stocks and bonds are both facing head winds and in that case, wealth

preservation is going to be tough. so what we're saying is we see a value in crypto emerging as a long-term store value, and secondarily as a potential diversifying asset in your portfolios as both stocks and bonds could face head winds. >> so it's the hedge against inflation thesis we've been hearing so much about. i guess in light of that, is inflation a real risk? is that something that you're truly concerned about is something more than, quote, unquote, transitory this year and beyond >> yes, fantastic question we at morgan stanley have been very clear we have a very different view on this than the fed. what we think is really different this time is not only the combination of both monetary stimulus and fiscal stimulus, but it is coming those forces of stimulus are coming at a time where consumers have access

savings, and they have excess credit capacity on their balance sheets one of the things that produced deflation in our humble opinion in the last cycle was the fact that both the u.s. banking system and u.s. households were deleveraging, and repairing their balance sheets this time we're coming out of a crisis where both banks have capacity to lend and households have great capacity to spend and to borrow. >> yeah. lisa, that would make sense, although, then you hear that line of thought and then you get some stories about mortgage credit availability, for example, some people who think that they should be golden in terms of mortgage availability, and it's a little bit harder than some had expected is that just a wrinkle in that, or do you think it means

something? >> no. look, i think remember where we're coming from. right? so we're coming off of a decade where, you know, we had a housing crisis and the banks completely with the help of regulators and the help of the federal reserve repaired balance sheets. and there was an extraordinary amount of pain, and so i think with regard to the housing market, i do think lending is going to be prudent. but i think that what's different this time is that households, the excess savings -- we're looking at $1.5 trillion in excess savings from the stimulus. we're looking at a scenario where a debt obligation as a share of household net worth is at a 40-year low so households have capacity. and i do think slowly over time as this much more robust

economic cycle gets going, i do think that the housing cycle is going to be strong, and that mortgage lending will be solid >> wow amazing. just incredible things that you could not have envisioned at the start of the pandemic, the way in which house holds have chachked their balance sheets. it's great to see you. fascinating note on crypto look forward to talking again soon >> absolutely. take care, guys. well, united and other airlines ramping up their hiring we have the details. >> hey, david, we've been talking about this for some time as the airlinings expand their schedules, they'll need to hire more pilots. that's one reason the optimism behind the reopening trade, that's why you're seeing the airline stocks having a nice day today. generally speaking, almost all of them are up between 1.5% and 3.5% there are airlines that are not far away from these numbers.

you mentioned united airlines. this is what the airline is doing. it is going to be expanding its plans in terms of hiring pilots. now, we've talked about them adding pilots this summer. actually, hiring this summer to increase the schedule. but they're also long-term initiating a pilot academy this is based in phoenix, arizona n. the goal, by 2030 they'll need 10,000 new pilots and the goal is that this academy is where they will train about 5,000 by the end of the decade they are targeting to have 50% of the graduates from the aviate academy women or people of color. so that's the goal for united. don't be surprised if you see other airlines saying look, we need to expand our plans in terms of pilot hiring for the rest of the decade and speaking of pilots being needed, southwest today calling back 20 9 pilots now, this is immediate these are pilots who had been

basically furloughed or essentially taking leaves of absence. not furloughed taking leaves of absence they are being recalled by the airline because they're going to need them when they expand their schedules starting june 1st. back to you. >> so it begins. phil, thank you. those airlines giving lift to the transport average as well. watch shares of tesla, though. roth capital saying the stock is overvalued it's worth only $150 shares are down fractionally right now. the firm's senior analyst says tesla is a, quote, minor player in the u.s. and roaneupe auto makers we'll be right back. stay with us . the rx crafted by lexus. lease the 2021 rx 350 for $439 a month for 36 months. experience amazing at your lexus dealer.

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welcome back it's a relatively quiet start of

the markets with the s&p hovering near record highs energies outperforming after lagging big yesterday. but we want to call your attention to the second biggest mover, consumer discretionary right now. some of the big movers in that category are travel and leisure like caesars and norwegian cruiselines up more than 10 %. always paying attention to the travel and vaccine distribution headlines. we're watching those pick up we'll watch those reopening plays like these particular stocks here. now, david, back to you guys okay thank you. tomorrow, don't miss an exclusive with the ceo of exxon mobile and chairman as well, darren woods he's going to join us at 'lbeig bk.eastern. wel rhtac stay with us

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joining us, chanland mas >> pleasure to be he. >> why sign this letter? emotional, politicized as welling. why did you see it as good business to wade in here >> well, i feel very strongly business leaders cannot remain silent on important issues particularly those that have to deal with fundamental decency, racial equity, gender equity facts and i don't see it as political issue. i think every person in this country who's eligible to vote should have the same chance to have their voice heard, and we signed it, because we believe that, and we believe that by not saying anything you are being complicit. >> i wonder what the conversations look like? i imagine you make them with your team around you, the board, and laws introduced in

other states now do you frame this? the methodology from a company standpoint where do you draw the line >> we kind of go back to our core values as a company and as a team and one of those values is transparency. we've always looked at, how can wish transparent as possible for what we believe in, and what we want to deliver as a company both to our customers, but also shareholders and employees our employees increasingly have really appreciated how we're able to both share information with them, not just about the business, but also what's happening in the world around us, and they can make their own decisions but the information-sharing is important and we want to continue to do more and more of that, and we received great positive feedback because of it. >> shan-lny, mitch mcconnell said yesterday companies will face serious consequences, he

said, if they become a vehicle for far left mobs. how do business leaders process that stapt what kinds of consequences is he talking about and does it make you feel like there's a risk involved in speaking out >> i thinkin the age that we live in today, over the last few years, what has become increasingly important to not just our team but also our customer, couples, vendors is to understand where a certain company stands that you might want to buy from. so increasingly, we know that it's important to the people we serve to be very clear on what we believe in and what our values are and let them make their own decisions, and, again, often in the eyes of the consumer, silence is complicity. we want to be very clear in what we believe. >> david fab er, by the way

you feel you run a risk if you don't speak up, sounds like? that your customers want you to do so and perhaps might not be your customers if you didn't >> absolutely. i think anecdotally we see examples of customers that will call out specific companies on twitter or other social channels to -- to have those companies take a stand so they can make a decision on where they want to spend their money. >> i want to shift gears before we wrap this up, shan-lyn, and ask you how the wedding business is going we're seeing the economy goin reopen are people starting to get married again? >> well, i'm sure you know, we all know that the wedding industry was certainly one that took a big hit in 2020, with lockdowns and events no longer allowed. what we're seeing now, as vaccination rates increase is that the wedding boom is coming. we've seen very strong pent-up

demand from everyone who had to reschedule their wedding from 2020 and the first half of this year to now reschedule into the second half of this year and into next year plus all of the people that are getting engaged now and would normally plan their wedding. so that pent-up demand is really giving us indication that this is going to be, like, the roaring '20s of weddings there is already a lot of wedding weekends, booking out, because we have so much demand here. >> wow all right. looking forward to hearing more about that from you as the wedding season unfolds here. thanks so much for joining us in the meantime. >> thank you so much. "squawk alley" starts right now. ♪ i wish that i knew what i kno now ♪ when i was younger ♪ now or in the future. with an annuity in your plan to help cover essential expenses,

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