it's friday. we will show you what is moving right now. the reopening of america is under way. cruise stocks are higher after sailings from the u.s. this summer. update on the vaccination rates and new incentives and the debut of the new york new park it is friday, may 21st, 2021 "squawk box" begins right now. good morning welcome to "squawk box" here on cnbc i'm becky quick along with joe kernen and andrew ross sorkin is live off the island of mon manhattan. this is a new park opening today. andrew, how was your commute

>> it was great. it was easy. we are at the little island. this is a island that was created by barry diller and donation of $260 million from himself and dbf. it is one of the great gifts to new york it opens today literally at 6:00 a.m. right now as we speak. this park is opening to the public for the very first time it has been more than a decade in the making. you might recall there was a massive fight over the pier which used to be called pier 54. turned into the remarkable tt two-acre park. 232 cement tulips lifted the platform it is a jewel box in new york city barry diller walked away from the project after a lot of battling from folks on the west

side for all sorts of reasons governor cuomo ended up renegotiating a deal with barry diller who put up the money and here we are. dream realized we will spend time with barry diller we will do that at 8:30 this morning. so much to talk to him about in terms of the creation of really one of the newest parks -- once in a generation moments in the city of course, we will talk about the media deal of the week between warner and discovery and how it changed the landscape and so much more that's what we're doing here this morning >> wow do all these people know what time it is i cannot believe how many people there are walking around at 6:00 a.m. >> they are just coming.

during the day, there will be reservations to get on to l little island. much like the highline another gift that barry diller and dvf have given the city. you have to make a reservation the expectation is there are going to be thousands here swarming i'm sure as the morning progresses, you will see more people you are right. it is already beginning just around us. >> just the shot that looked like a nice par 3. put a bunker right on the right. it reminds me of some of the two great golf courses liberty in bayonne that view is all you need. that gazillion dollar view andrew, that jacket is so much better than that t-shirt you look really good you know what i mean >> i got some flack for that

t-shirt yesterday. >> told you. >> i hope we all get to come down here. maybe we should do the show here every day. there is a 700-person outdoor am amphitheater i have to say there's not a lot of things i'll gush about. this is something i'll gush about for a long time. >> green space in new york city. that is something to applaud >> you can see it right there. that's the theater you can see if you are sitting in that audience, what view you really get it is an extraordinary place, i must say >> that's cool >> i have driven by it as they were putting it together it is unbelievable to think of the expansion out into the river. a green space in particular which is a premium in new york city getting out and enjoying the

environment especially after the last 14 months everybody has been living with the lockdown and pandemic and need to get outside. couldn't have been timed more perf perfectly. the gift from dvf and barry diller this is so needed and necessary. i'm glad you are there, andrew >> we have a nice set up cnbc went all out. great lighting looks good >> great lighting. a whole team who has been here way longer than i have they deserve a lot of credit they went to dunkin' donuts. we got coffee. >> doughnuts this is a big deal it's friday. a lot going on there is the par 3 i'm talking about. the tee on the left. >> yeah. >> uphill par 3. that's not that. it reminds me of that. >> as you see that shot there, the whitney behind you

this may explain why barry diller is interested in the pier iac is across the way as well. >> that cool building. >> the headquarters along the hudson river as well it's pretty special. >> we will let you go. i have one more question is that a jacket or a suit it looks like a cool jarcket are the pants the same >> nope. i'm wearing gray slacks and babaz blazer >> i haven't seen that one sdpone. >> what is old is new to you at this point >> no socks! i saw that >> no socks. >> oh, my god. this shot we did not intend to take okay all right. >> this is -- >> i like the look >> by the way, for the last

year, you haven't had to look at my feet. we had our feet massaged on the show. >> that goes down in the annuls of "squawk" awkward moments. that guy had some nerve to do that to touch the dogs. we got to go >> let's talk markets. beautiful shot where andrew is this morning. take a look at u.s. equity futures are in the green after a couple of really crazy and wild days some rough numbers this morning, it is friday markets are taking a breather. dow futures are indicated up 103 points s&p futures up 10 this morning nasdaq indicated up 27 of course, this comes after a relaxing day yesterday where the markets were up across the board. nasdaq was up 1.75%. take a look at what is happening in the treasury market this morning, yields with 10-year at 1.637%.

not much movement there. cryptocurrency is another one we have been watching let's look at things and if you are not paying attention, who knows they may move. bitcoin above $40,000. $40,848. ethereum is down to $2,751 dogecoin is weaker this morning. bitcoin at $40,000 stabilized well above that we will see where things hang. let's look at the "squawk stack" to find out what's up this week. shares of target target out with better than expected numbers earlier this week we spoke with brian cornell. shares closed yesterday at an all-time high back to the ipo of 1967 it is up slightly. $222 is where it is trading. what's down is everything

related to infrastructure. infrastructure plays ran up as we h anticipated big numbers as that has pushed on, the negotiations have pushed on through time you have seen a pullback alcoa down 10% and so is wabash. deere shares are up slightly we will keep an eye on them. that company is reporting this morning an shares up 1% joe. expect states rolling out incentives vaccinated it is the rate of people getting vaccines has dropped shortarply. the seven-day moving rate drops to 1.5 million as of yesterday, 38% of the u.s. population, approximately, fully vaccinated

48% have received one dose that's not enough. that's not enough. let's go after the attention -- this is bizarre for me ohio had $1 million lottery. it generated a pop in the vaccination rate of 28%. new york and maryland following suit they will receive a scratch-off ticket with prices ranges from $20 to $5 million. the prizes, i should say there is a 1 in 9 chance of landing a prize. maryland will award a $40,000 lottery prize each day for the 40 days. culminating in a $400,000 prize on fourth of july. for me, the prize is not ending up on a ventilateor or dying.

is it about money? wait i'll do it i'll go get the vaccine because i can win $20? not the alternative to it? bus bizarre. that is a bizarre story. that is a sad commentary on human nature >> whatever it takes, i guess. we need to look at it that way. >> i'm all-in. exactly. we are watching the cruise stocks this morning as well. >> it benefits -- the benefits -- >> i guess >> i just can't get my head around it. >> playing it out to the highest extent we are watching the cruise stocks this morning. all rising after carnival announced three brands announce sailing in july. passengers will be required to show proof of vaccination 14 days ahead of the cruise date.

norwegian selling for august cruises. a bill would eliminate a requirement for stops in canada between washington state and alaska carnival is up 1.3%. andrew a little bit of "squawk booze" news. southwest bringing booze back to the skies. airlines will resume alcohol sales on june 24th on flights to hawaii of all places after suspending alcohol and coffee on flights during the pandemic united and alaska air announced flights would stop being dry that flight to hawaii is a long flight i don't know i don't know, guys maybe you need it on a long flight alcohol at all titude is not a great idea. >> it's a great idea >> just given the tension there about mask waearing and beyond.

then alcohol added to the mix? it is interesting. >> sad commentary on our show. used to be booze news. now we focus on milk news mostly. >> booze news. we also do pot >> it's not milk, joe. >> it isn't. you don't lactate it it's a drink it is deceptive. it is clear. you are right. >> nothing against it. i have oat milk or drink in my fridge. >> lactating mammals milk if you are not lactating, it's not milk >> what was the line i have nipples, greg, can you milk me? >> that's right. "meet the fockers. you get to say focker in the

sequel coming up, a wild week on wall street. dig in the volatility and crypto and everything else. as we head to break, how did i know the look at the shares of oatly. not booze news milk news. not milk news. shares jumped in the public market debut ipo price at $17 stock closed at $20.20 we'll be right back. >> announcer: this cnbc program is sponsored by truist wealth. we focus on investor relations while you focus on what matters most

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big swings in the indicies

this week. the dow and s&p down slightly. the nasdaq is up nearly .80% joining us now is the ceo of tiff investment management did i call that? tiff you want me to call it tiff? >> tiff is terrific. that's the acronym >> okay. you have a, i think, in the back of your mind, more of a fiduciary responsibility it is a fine line to try to maximize returns you need to be in equity, but you have one foot out or at least do an asset mix that might try to minimize being caught too exposed in one area? >> look, we've been serving

endowments and foundations for 30 years we recently polled them and said what do you think the chances of the 60/40 portfolio will meet the return target of inflation plus buy roughly 60% said they have no chance that is because we are equity starting valuations today as well as interest rates it is hard to price out of the market because people need to take risk. it is hard to get the return it has never been harder than it is today it is hard to be fully out of the markets despite risks out there. >> never been harder because of rates being so low and as a result, valuations are high. i think ten years ago i heard that they would be muted average returns per year you are talking more muted for the next ten 3% is what you are trying for?

>> i think so. after inflation, we think they are closer to 3% you are right, equity are priced reasonably interest rates used to be 3% or 4% until a month or two ago, they were 50 basis points it is really hard to get the level of returns you need from markets. first thing we do with the clients is we go through the portfolio and balance sheet and income state and say how much risk can you take. once we figure that out, we tell them you should take as much risk as you can, point one secondly, you are still unlikely to get there with passive returns. you need active returns. as a quick digression, this is a narrative the market gets completely wrong everyone says you cannot out perform with active and get access returns we think that is valid

we have been getting active returns. >> you are 40% dogecoin? did i read that right? maybe not. that's not it. some of these -- here are the sectors you are leaning. taiwan and china and emerging markets. you have to use hedge funds if you use the right ones i guess you need to do private investment as well all of that put together minimizes risk and maximums return to a very fairly low goal. >> it used to be fixed income did two things one, pulled its weight in returns and secondly, it acted as a negatively correlated asset. fixed income doesn't do those two things today we split it in half. in the first half, we say how do you get access returns we are looking at multiple places one is because we are worried

about inflainflation, let's havs fixed income two, let's look outside the u.s. particularly if the dollar is devalued china and europe today after five years of underweight, we closed that short. let's look outside the u.s let's look at places that will benefit like financials and you are right. hedge funds and private equity have a role in that. >> you try to hedge dollar bets. you would not do gold orbi bitcn or crypto? >> a lot of clients ask about bitcoin. that is the most frequent question less after the recent vol volatility they are tryingto find a replacement for fixed income trying to find something that is

negatively correlated when equities go down that is not a good substitution. bitcoin is not an equity hedge for those what say it will save your portfolio that does not fit our definition of a hedge >> against the dollar. against the money printing and what we're seeing. i'm not sure you said you go to europe maybe you can hedge a little that way you don't have a dollar hedge against what we are seeing unprecedented qe. >> we are worried about inn flakes we don't think it will get as rampant as your with guests said of 7% or 8%. we think it is slower than that. we not calling for the dollar to depr depreciate in our mind, the bets and

traditional commodities are a better way to protect yourself than a more recent venture. >> i don't know about live cattle you have to feed them. maybe growing things is tough. think more about this. kane, thank you. former goldman guy tiff investment guy. thank you for coming on. >> thank you for having me. >> you're welcome. coming up, we have a special report from robert frank on the wealthy tech tax deadbeats and coming up, more of new york's newest park developed and paid for by barry diller barry will join us in the 8:00 hour on "squawk box. there's more rolling on as we come back after this just over a year ago, i was drowning in credit card debt. sofi helped me pay off twenty-three thousand dollars

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♪ womelcome back to "squawk box. it is time now for executive edge the irs says the amount of uncollected taxes will be in the trillions in the next decade because of wealthy tax cheats. robert frank has that story this morning. good morning >> reporter: a gorgeous shot this morning the treasury department saying the amount of uncollected taxes could reach $7 trillion in the next decade because of wealthy

tax cheaters the number of non filers those who make more than $100,000 a year and don't file or pay on time, that number is surging 50% over the past d decade the irs and inspector general looked at non filers and found the irs would have collected $10 billion from just 300 of them if they had better compliance audits of people making over $1 million have fallen 60%. another source of taxes is pass throughs that ex-mploded in recent years it is $200 billion a year in taxes. pass throughs have few reporting requirements and are rarely audited. the treasury saying the pass-throughs filed in 2018,

only 140 were audited. biden is proposing $80 billion for the irs in the next decade he wants to double the staff and require more account information from banks, crypto exchanges and payment services andrew, this goes back to something you and becky said let's collect what we are already owed before we start talking about raising rates. >> exactly the question i was going to ask, robert, if the biden administration were to put more money in the irs and more investigators and the like, would they be able to re retroactively go back? how many years can you go back to try to collect the past taxes? not just future. >> reporter: that's a good question i think they have gone back as far as ten years in some cases i don't know the statute of limitations. they can go back and they often do when they find these things the irs, for every dollar they spent on auditors, they get $4

back from the bipartisan view, it is hard to argue that is not a good investment. >> robert frank, good to see you. i appreciate it. thanks for bringing the story. becky. >> i thought the statute of limitations was seven years. i could be wrong you are supposed to save your taxes for at least seven years because you could get audited. i think they could raise money by bringing them back and auditors going back. we will see. when we come back, an update on supply chain issues and congestion at ports. we talk to the head of the port of los angeles he is up early for us or maybe he stayed up late. we get to him next. as we head to break, look at yesterday's s&p winners and losers

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good morning checking the futures again up 122 on the dow. crazy week not a lot of sound and fury. signi signaling nothing. there i go again quoting shakespeare. someone smarter than me said it was falkner. s&p up 12. nasdaq up about 30 deere adjusted earnings at $5.68 a share. the consensus was $4.52. revenue was up above wall street forecast recovering economy helped boost demand for deere construction farm equipment andrew, how big a job? that was a big deal where you

are. that seems like a modern marvel of engineering >> this has taken six years of actual construction. thomas is the architect. also, by the way, did the vessel which is at hudson yards the famous vessel and so many other things in the uk >> the beehive >> $260 million to build this. the upkeep is remarkable the dillers have underwritten that for the next 20 years as well this is -- we will try to get you the stats on what it took to put this together. there are hundreds of trees and plants it is one of the great gifts to the city by the way, thousands of people are already arriving here just this morning we're just being told, i think you know at 6:00, there will be

a reservation system from noon to 8:00, you need a reservation. you cannot get a reservation until next tuesday by 9:00 this morning, you won't be able to get a reservation until later in the week w we are seeing thousands of people arriving. >> there's the shot. >> the time lapse construction shot >> yup sdp >> really cool to watch. >> it is as the economy reopens, demand is roaring back delays at the parts are slowing efforts to get the goods where they need to go. in march, 40% of container ships arrived on time. that compares to 70% of the previous two years joining us now to talk about what this means for business and

consumers is gene saroka he is the executive director of the port of los angeles. thank you for getting up early for us it is good to see you. >> good morning, becky good to see you. >> what is causing this problem? we hear about delays at the ports. what is the issue? >> it's a pandemic-induced buying surge that we have never seen before. as we hit the beginning of the lockdown and covid-19, we found we would buy more as american consumers go online. we go to the big box retailers and home improvementstores lik we have not seen in the past that continues through today >> when did things start stacking up? is this a problem that started a year ago or is this something that is more recent? >> we saw cargo volume dip to 50% of normal last march then during the summertime, we began to see imports really pick up

we have now been averaging 900,000 container units a month for nine straight months cargo ships backed up starting in november and sitting for three days we peaked in february with 40 container vessels outside of the breakwater at anchor the average time sitting was eight days >> what's the solution how long will this last? we may have seen things peak, but you are still talking about big problems you think this lasts the rest of the year or beyond >> this is a broad east/west problem across the world my friends in hamburg and singapore and dubai are reporting similar activities becky, in the last eight weeks, we improved where we dropped the anchored ships by 2/3. the velocity of containers moving in and out of the port is 20%. we still have work to do on the rail side. we are gaining strong traction >> have there been any hold-ups

with not getting workers on the docks during the pandemic or is this purely an incredible surge of ships coming in faster than you can unload them? >> more of the latter. the dock workers and work force on the ground here are so important to us. like many coming out of the e year-end holidays, we got hit with covid 40% was ill or isolated. that moved forward and we started a mass vaccination center at the port of los angeles. dock workers are averaging 5 to 6 days a week on the job incredible work since the pandemic began. >> we were just looking at the ratio of imports versus exports. 4.3 to 1 of imports to exports how does that differ in normal times and what type of problems

does that create >> normally we are 2.5 to 1, becky. the supply chain has been chopping for three years with the tariffs and trade tensions that started in the spring of 2018 what it impacts is the round-trip economics for the service providers. shipping companies and railroad and truckers. we are not moving as many export as as we should. we talked about a national strategy the issue is the impact of vessels three miles away once one vessel is completed, we have another ship come in. we have to recycle that power back in. boosting exports and balancing trade to an extent where we can cycle the round-trip economics is extremely important to us. >> why aren't we exporting more? are we not making things or other countries don't want our

products because they are too expe expensive? >> three contithings the strength of the u.s. dollar is important in each sector, it impacts us on exports. versus competing nations, our goods are more expensive than those of others. second, the lingering trade policies and retaliatory policies in china impacted farmers and auto sector on the exports. lastly, the recent phenomena the shipping companies are evacuating empty containers to get ready for the next round of imports back to the u.s. >> wow gene, what would fix things if you could wave a magic wand and create a solution here what would it be >> a couple of things we are working on right now we implored importers to pick up as soon as possible. we need more room.

picking up productivity in every hour of operation. including the night side where we are seeing gate activity unused and then digitalzation we need a national information sharing system where cargo owners can see where they are and match up with ships. aligning that to deliver value to the customers is an ongoing effort >> gene, great to see you this morning. we appreciate you getting up early. hope to talk to you again soon sdplchltsoon >> thank you, becky. >> take care joe. the s.e.c. signaling it is ready to regulate the crypto market that's next. cryptocurrency right now bitcoin of what we are looking at is positive up 2.2%. later, mickey drexler joins us

to talk about the impact of the stimulus on the bounceback reminder, you can watch or listen to us live anytime on the cnbc app you can't really see that shot there which is better to watch watch us on the go or listen in business, it's never just another day. it's the big sale, or the big presentation.

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s.e.c. chairman gary gensler says they are ready to take on new cases involving cryptocurrency they should be ready to bring cases on crypto and cyber and fintech. his aim is to ensure the bad actors are not playing with working families' savings and the rules enforced aggressively and consistently

andrew, it is probably not surprising to hear he is somebody who understands crypto really well caught those classes at m.i.t. about it and knows what he is speaking of. >> he does it will be interesting to see how they attack this and how they do it because they probably have to make determinations of how they define crypto as an asset or security. underlying issues they have to grapple with before enforcing it it will be interesting to see how he ultimately does that. when we come back, a lot more on "squawk box. new york city real estate bouncing back in a major way we will talk about the reopening of the big apple and luxury real estate from new york's newest park little island. next

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welcome back to "squawk

box. i am here in little island park. it is the long awaited opening it's notthe only opening new yorkers have been waiting for. return to hopefully normal what does that mean for the real estate market? joining us with more on that is the ceo of brown harris stevens, luxury real estate firm with listings right here of course, also in the hamptons, miami and palm beach where things are hot, hot, hot let's talk about manhattan right now. i don't know where manhattan stands in terms of heat relative to i'm sure the business you have in florida right now, but what are you seeing? >> you know, andrew, the market has come back much stronger than anyone could have predicted. year ago we were in lockdown and now today the market is performing -- outperforming any of our expectations. i think there was a lot of pent-up demand i think we have still historically low rates there's a lot of opportunity now with the vaccine people are feeling empowered and people want to take advantage of the

market >> you know, we hear constantly a narrative of from new york to miami and florida. when you look at both of those markets, how do they compare right now? >> there's no surprpply new york city has ample supply none in miami. prices are correcting which has helped the fluidness people have returned and come back to the city from the hamptons, from connecticut, from florida. we still have a reckoning to deal with. we have a mayor's race, a lot of legislators in albany pushing for egregious taxes that would hurt the city. we have to keep our eyes on all of those things.

>> when you look at the supply though in terms of the city, prices are where up by 10%? off by more? how does that relate also to the hamptons and some of the other areas, westchester, new jersey, around the city itself >> so if i had to give a good estimate, i would say prices have corrected roughly 6%, maybe 10 give or take. depends. obviously not all square feet are created equally. i would say around there it makes about the right number and, you know, the hamptons and palm beach and those areas, westchester, that market is just on fire. the prices have gone up. in palm beach we had a buyer who bought something for $17 million, closed on it, put it on the market for 23 million the next week and sold it without doing anything to it so that's kind of like another world. new york city is not in that environment. we're still in a buyer's market. we're still on the planet earth, which is a good thing, and we're

fluid. it's a fluid market which is very good. >> one of the things we are seeing and "the wall street journal" just reported on it rentals. one in ten rental homes is vacant that's a remarkable statistic. >> it is the rental market was really suffering during the pandemic. landlords were giving concessions, three months free the vacancy rate was something like 30% and growing and so that was really scary, but it's come down there's less leverage that tenants have right now the rental market is still very soft that's another place where people can take advantage of the market and get a good deal new york is coming back. >> but let me ask you. you also reference this sort of i don't know if you were saying it's not realistic but what's happening in palm beach, what's happening in florida, what's happening in the hamptons. would you not be buying at this point?

would you say i'm buying as an investment per se but if it was supposed to be an investment, is this a bad investment, is that what you're suggesting >> i don't think it's a bad investment buying your home is different than buying stock. it's an investment and you hope it's appreciated it's connected to your existence. it's sometimes where you have shah pbat dinners. it's not a bad investment. it matters greatly to people it's sacred, their homes no, it just depends. it's much more discretionary obviously if you're spending $23 million, that's discretionary purchases. >> but i guess the question is is there going to be a rotation back do you believe there's going to be a rotation back or is this a permanent rotation are there people that are going to go to the hamptons, palm beach, wherever they're going, you know what, i like the city, i'm going back to the city and

therefore the values in the city may increase again and maybe some of those other places don't or do you think this is a pull forward permanent situation? >> i think it's more of a pull forward. it's very hard to tell, but i do think people are going to come back to new york city. but i think those investments will -- it will take time, you know, to see what really -- how that -- what happens how it sort of sorts itself out. i'm confident though in new york city. >> well, i can tell you from the little island this morning, it looks like new york is back so we appreciate you being here and look forward to checking with you again very, very soon. >> thanks, andrew. be safe. >> thank you you, too becky, back to you >> thanks, andrew. when we come back we have much more on this morning's market move. we've been watching the futures this morning and there's a little relief on this friday dow futures are indicated up by

about 103 points s&p futures up by 10 the nasdaq up by 26. nasdaq was up by 1.77% yesterday. so, you know, the end of a very wild week. we'll see if these trends hold as we get closer to the opening bell. plus, new york city's newest public park open today the little island right by 14th street and flowing over the hudson andrew's there he's checking it all out as the park opens it. the man behind the park, barry diller, will join us live from the little island. don't go anywhere. you're watching cnbc

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tim cook heads to court. what you can expect is straight ahead as the second hour of "squawk box" begins right now.

good morning and welcome back to "squawk box" here on cnbc i'm joe kernen along with becky quick and andrew ross sorkin who's on the little island off the west side of manhattan this morning. andrew, i couldn't believe how many people were there at 6 a.m. it's before or after 14th street if you go down the west side highway? >> it's just off 13th street here in new york this park opening for the first time at 6 a.m. this morning. a once in a generation moment. a new park in new york a gift from media mogul barry diller who's going to be joining us this morning at 8:30 eastern time to talk about this remarkable park. 2.5 acres here on 132 what look like cement tulips of sorts. it's already booked. you can walk onto the island now but starting at noon you need a reservation and you actually need a reservation -- you can't

get one already until about tuesday and it seems to be getting even harder to get a reservation as we speak. there are helicopters all around us taking shots of this island this morning as you might imagine, but we're going to talk to barry diller who has donated $235 million to build this remarkable place it's about a decade in the making there was battles over putting this all together. at one point he walked away from it governor andrew cuomo and him came to an understanding to bring it back and we will talk to him about that. the big media deal of the week, discovery and warner and so much more this morning. we're looking forward to that conversation in the 8:00 hour. >> purely a park, andrew is there any concessions can i get a hot dog or anything? >> there are concessions -- >> a park and you want to know where the hot dogs are. >> by the way, they have a license for alcohol. >> they do >> they have an amphitheater as we discussed in the 6:00 hour.

700 people with a view that is beyond -- is really a remarkable gift to the city something i think -- i hope new yorkers appreciate >> admission >> no admission fee. there is no admission fee. i think some of these folks, yes, are waiting for coffee which is about to open up over there. there's -- you can see a lot of runners already trying to run the stairs there's a lot of stairs. >> what's it cost a year, you think? what's the outlay going to be for barry and his wife per year? >> yeah. >> i think -- we're going to talk to him about that i think there's -- over the next 20 years there's another $100 million in donations coming, and i think the hope is to find other non-profits and benefactors to help support this park it is a very special place it's unusual in its design,

architected by one of the great british designers who designed this, the vessel famously. >> could i bring a fishing pole, andrew do you know, could i bring -- probably not >> i don't know if that's allowed. i will say, it's high up unlike some of the other piers, this used to be called pier 54 it's pretty high i know there have been some snarky comments online already this morning about, you know, what happens when the water rises. we're pretty high up i don't know you probably have to have a pretty long -- we can get steve liesman who is our professional fi fisherman here you'd need a big pole and long line. >> i think since grant was president it grew up 11 inches you have a couple hundred years, the water might rise a little. i think you'll be fine i think it will be okay.

at least for today's show. they want us to get to the markets. u.s. equity futures at this hour are up and if you look at the weekly chart of what happened, it's like, whew! then back to -- if you weren't away on m-- went away on monday and came back today, it's like nothing happened a lot of it in crypto, too also the nasdaq. the nasdaq sort of made the stand. we did see that ark etf that we watch so closely that made a stand. we'll see next week. going to be the summer doldrums, they will set in eventually. i think some people might this summer maybe relax a little bit more than -- you know, after a 14-month non-relaxing thing that the entire planet's been through. so we'll see maybe we'll still get a lot of trading. money never sleeps, pal. andrew. >> absolutely. and it does feel like things are

back, at least by the looks of what's going on around me right now. let's bring you up to date on some of the headlines this hour. apple ceo tim cook is going to be taking the stand today in a trial that pitts apple against fortnite games cruise lines can resume alaska sailing this summer following passage of new legislation from the house and senate it temporarily lifts the requirements that alaska cruise needs to make a stop in canada carnival, princess and holland america all plan to resume in july uber and lyft are pushing back against a newly implemented clean air rule in california the state will require almost 90 of the ride hailing to take place in 90% electric vehicles

they will try to incentive advise their drivers to buy and lease green cars we'll see where that debate goes becky? >> andrew, i was thinking about that that's a pretty big move you think that's a bigger deal or the contractor, you know, you can't treat these people as contractors, they're mployees. both of them are major impacts on when and if these companies can turn a profit with their businesses. >> huge. i think all of these become massive headwinds to the company and would they end up having to subsidize vehicles, how they would do that, what the cost is. there will be a move towards electric vehicle, no question. the question is how quickly that's going to happen again, you can see those companies already suggesting if 2030 is the deadline, that there should be public subsidies to get there. >> all right let's move on. the economy experienced a productivity boom during the

pandemic it did so with 8 million fewer workers and it could have a lasting impact steve liesman joins us right now. he's got more on that front. good morning, steve. >> hey, good morning, becky. yeah, it's an astonishing fact of the pandemic that output from the u.s. economy has topped the level from before the pandemic but we did it with 8 million fewer workers. it's the result of booming economy. it's good for workers and corporate profits. covid caused us to shut down labor intensive businesses which were inherently less productive. it then forced the rapid adoption of automation in nearly every sector of the economy. deep down we actually had the ability to produce so much more per worker than anyone would have thought possible a year ago. here are some of the sources of that productivity. more ecommerce more efficient more working from home, also more efficient fewer input costs in the work.

doing more with fewer workers. business automation and you have the creative destruction process that took place. productivity booms after recessions all the time because unproductive businesses close down and often the lowest productivity workers go back down the difference this time, new technological businesses virtual real estate sales. sales per real estate worker have soared. not seen to go away. work from home has mobilized the part of the household capital stock. much like what uber and airbnb did for cars and second homes. so here are the second results, higher wages are possible and higher profits are also possible potential growth could be higher, but it could mean slower employment gains because we'll bring back a whole bunch of people quickly but for another group of people you may not have the jobs that are available because they were automated away

but also it could mean really challenges the inflation story because there could be lower inflation. university of chicago professor steven davis and colleagues in a survey of 30,000 workers, he thinks that as a result full work days at home will end up rising from 5% before the pandemic to 20% permanently. paper essentially argues having been forced to find ways of doing things more efficiently, workers and businesses are just not going to give them up, becky. >> steve, i've been thinking as you've been talking about that, part of it makes sense and i think there's some truth in some of it but i don't think it tells or explains the whole truth. i mean, some of the industries that were shut down will come back some of the things like ecommerce, look, ecommerce may be part of productivity but it hurts marge beginnings we talked to target this week. part of the reason they're doing so well right now and they're so much more profitable in the first quarter of this year than

last year, things that are sold in the store or deliveries where you go and pick it up at the store yourself is a much higher margin business for them than using a third party shipper to get it to your door. profitability. they want to go where the customer is but they want to find the profits, too. i'm not convinced that all of this stuff is automated. you know people want to get out and start shopping again they want the socialbility of being outside. i'm not sure i believe it 100% i do think it's a real trend there are other trends that are kind of colliding at the same time we'll see which one wins out. >> you should not believe it 100% any of the papers that i have read suggest that 100% of the gains from the pandemic are not going to remain. for a lot of reasons that you just specified there, becky. people don't want to do all of their shopping online, they want to go see things they want to feel things they want to see things and companies are going to want

things to go to sell things. the question is do we have a recity sid dual gain from it that remains the numbers that i cited from steven davis's paper, for example, we went up to like 38 or 40% work at home. he says it comes back down to 20% and some of the gains remain not all of it. and that ends up being a permanent -- not a one time but a permanent long-term boost to productivity >> i would agree with that yeah it's not zero sum. yeah, i agree with that. that makes sense it's going to be interesting to watch and see how this plays out. things have changed. >> yeah. >> i don't think we're going back to completely where we were but we're not staying where we've been the last year either. >> right exactly. >> steve, thank you. >> becky, one -- one way to do this is you can also take your higher productivity and leisure time and i'm going to do that starting next week. >> you should, steve.

>> going fishing >> you should, steve if it's your birthday today, it says -- >> yes. >> is it your birthday >> i'm reading from your who are row scope and i looked this up for you. you were going to be game for anything for the next 12 months but you could also exhaust yourself if you try to do everything so it basically is saying take it easy next week. i cannot believe you're that in s sync you're a taurus, right that's good for you. >> joe, it depends on what new hampshire. it depends on what new hampshire you read i think in the post i'm a gemini and in the daily news i'm a taurus. >> so conflicting. >> you're on the cusp. happy birthday, steve. >> you're conflicted. >> happy birthday, steve >> your mother, your sister. >> that's awful. >> fishing here. >> happy birthday. >> coming up, eamon javers

talked about this, conservative nonprofit group, consumers research been around since 1929 rolling out some ads that are designed to find what it calls woke capitalism. the group's executive director shnd join us next to discuss the pu a response they're getting from corporations. "squawk box" will be right back. dave can work on his code. and lead his team. dave trusts his clone like he trusts himself. so, in summary, we're going to sell the company. who's in favor?... perfect. but if cloning isn't an option for you, just get posh. virtual receptionists who can answer and transfer your calls, because you can't be in two places at once.

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now the answer to today's aflac trivia question. no president has ever died in the month of may however, there have been two presidents born in the month who are they the answer, harry truman and john f. kennedy. a conservative nonprofit is targeting some of the nation's most powerful chief executives as we reported earlier this week it's launching an ad campaign called woke capital. calling out ceos of coke, nike t. will run on cnbc, fox, joining us the head of the group, will hill will, i want to start by pointing out, consumer's research is one of the oldest consumer advocacy groups in the country. founded in 1929 and during the

depression in the '30s to educate consumers about some of the bad things that were happening with products. then in 1981 you had a product focused one that gets laws, regulations and that's what the latest thing falls under you are loathe to identify anyone who's funding it, but my question, maybe you will for us, but if not, my question is did a group or a number of groups come to you with this campaign or did you come up with the campaign yourself and then raise the money to do it >> as you noted, we're the nation's oldest consumer protection and we speak up for consumers. we develop this campaign because we saw increasingly companies trying to distract from their miss treatment of customers in the marketplace, problems with

their supply chains being tainted with potentially forced labor like nike and coca-cola and we thought it was time that someone stood up for the consumer. >> i think i read during eamon's report that you thought that a lot of ceos were getting a license to virtue signal, and we know the virtue signaling is usually on one side of the aisles where a lot of it comes from you thought they weren't being called on and there has to be i guess the hypocrisy of some of the things that go on with the country. it's a weird thing to decide to take it. it seems it adds more fire to the culture wars if on the one side it's bad that they're so woke and, you know, letting everyone know about it, but then to come at it from the other side, you know, it's just like throwing gasoline on the whole fire and the culture wars get heated up. can't we all just get along, will >> no one gave these ceos a

license. what happened is they decided they want to distract from their failures take ceo of american airlines, doug parker, for example he's driven that airline into a state of disrepair it was just rated the nation's worst airline by wall street journal. they lose the most bags and passengers off of their flights. we were able to confirm by reaching out to them during the covid pandemic they continued to decrease leg room. this is when they've taken a multi-billion dollar taxpayer bailout and the ceo got an eight figure paycheck from that company. we think it's time they stop being allowed to distract from those things. >> that seems like -- will, that's something you did after -- did american airlines, i know you think coke during the georgia law debate, you didn't like the stance they took. this was an answer to that why does there have to be the initial move of american -- what

did american airlines do that raised your ire to look into all of these snings why didn't you look into all of these things beforehand it almost seems like a reprisal for things they did and now you're looking at companies to find things and targeting the ones that you didn't like because of the -- they took the woke side. >> these companies are increasingly using positions in politics to distract from their own failures they need to be focused on their own businesses and serving customers. that's the phenomenon we saw. >> you focus on other companies that didn't get woke or -- >> absolutely. >> and do their commercial failings as well >> absolutely. yeah, let me be very clear, consumer first initiative has a very civil message not just these three companies, forced labors, ceos getting taxpayer funded paychecks, if you are a company and think why don't we take a position on a

political issue we have no expertise in, we are coming after you. you are now on notice. absolutely this is an ongoing campaign and we will be coming after a lot of other companies if they continue to engage in this type of behavior. >> if they don't engage in that type of behavior, if they are crappy companies, you'll go after them too >> it's not a pay back >> we have a 91-year history of speaking up for the consumer in the marketplace and as you noted, we are founded on that principle and continue that. we are going to continue to do that just like the consumer's first initiative is doing for consumers today. >> hey, will, i know that you're loathe to disclose who your donors are, but don't you think from the purpose of transparency in the same way that i think you want to improve or you say you want to improve things at corporations, which also requires transparency, that you should be telling the public right now on this very program who's supporting this effort >> we have an ethical obligation

to protect the privacy right of our donors, but i can tell you that every single one of our supporters is an american consumer just like you and your view zblers but clearly there's a political bent to what you're doing so to -- >> no, clearly there's a political distraction bent to what these companies are doing. >> that may very well be look, we can have a meaningful debate about whether there's virtue signaling going on. >> the companies are distracting from what they're doing wrong. >> i'm not sure. i think there's a debate about that as well, but i think if you're going to come on television and attack companies, it's worth knowing who is attacking whom, don't you think? in the same way that we would want to know who's investing and backing certain companies. i would think that you'd be calling for that as well is it okay for companies and the investors behind those companies to hide in the shadows i don't think that's okay

either >> as i said, we have an ethical obligation to protect our supporters rights and privacy. >> don't you think that you have an ethical -- i don't -- you have an ethical obligation to protect your donors. don't you think if you're going to come out publicly and make the statements you're saying, that you have an ethical obligation, talk about ethical obligations. don't you think you have an ethical obligation to say where you stand, where you sit and who's backing you. i don't understand -- >> you asked about transparency. we know where doug parker got his paycheck last year >> but, will, i have no idea who is paying your paycheck. i don't know -- >> plenty of nonprofits -- >> a political party, i don't know if you're being supported by another airline i don't know what's going on here. >> we're an independent 501c3 who protects our supporters rights to privacy but every

single one of our supporters is an american consumer. >> not going to get anywhere with this, i don't think will, thank you. who's next you've got three how many total are you talking about? >> well, this is phase 1 as i said, this is phase 1 of an ongoing campaign like i said, any corporation right now that's thinking that they might be able to distract from their own miss treatment of customers or problems with forced labor tainting their production chain, you are now on notice it's not going to work i'd be happy to come back and talk about phase 2 when we're ready to launch. >> we'll do that thank you. >> great. >> okay. see you. becky. all right. let's get to dom chu he's got some stocks to watch this morning dom, what's going on >> becky, let's talk a little bit about the corporate fundamentals that drive some of the action that we see so far today. we'll start with the earnings catalyst for sure. this is coming from deere. one of the largest makers of construction equipment and agricultural equipment in the

world. they just beat profit forecast, beat revenue and they raised their full year profit forecast. this is a stock in deere run up by 151% in the course of the last year. it's fallen by roughly 11% in just the last few days roughly a 4-day losing streak for deere as well. that may be an indicator of the recovery demand around the world. more people want that construction equipment, they want the farm equipment. that's what's causing them to raise their profit forecast. this could have an effect, ripple effect on caterpillar shares then watch shares of tesla bank of america is keeping the neutral rating but they're lowering that i recall target price from $900 down to $700 and they say that it's largely driven because of the prospect that tesla could continue to sell more stock to help finance its efforts so more stock, more dilution for stockholders. that could be a headwind they've lowered that price target to 700 bucks.

that's still roughly 20% above where it is. $900 is also the all-time high for tesla. some other stocks to watch in terms of overall analyst actions watch at&t and bloomin brands at&t up 1.2% bloomin brands think it's a buy rated stock. outback steakhouse and others they own could have an up side with the covid recovery. we're watching a couple, the bitcoin cryptocurrency related stocks, coinbase and microstrategy, coinbase 1u7.2% microstrategy down 1.5%. the new treasury department/irs scrutiny, that could play into the trade. we'll keep an eye on those stocks to watch. back over to you. >> so i guess tesla could sell more shares as that analyst was

positing or they could sell some crypto, bitcoin. >> you can raise cash however you want that's up to those managers. >> interesting that call on tesla. even though they're bringing down their price target, more than 100 bucks from where the stock is today >> $900 is where the stock was at the record high so you're talking about a price target right now roughly 20% above where it was it's not even back to recovering nearly what it was when it lost. lower off the record high. >> i want to know when that analyst moves the price target to $900. is that when stock was there >> likewise. >> good to see you retail veteran mickey drexler talks retail resurgence and whether it could keep up the momentum even as stimulus ends. right now let's check out the futures this morning things are looking up this friday morning dow futures up by 152 points s&p futures up by 15 the nasdaq now up by 46 and that

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welcome back, everybody. several major retailers reported quarterly results this week, including macy's, target, l brands and ralph lauren. the stocks didn't all outperform as you might have anticipated. our next guest says retailers are doing well right now the big test will come in the winter after the stimulus checks stop joining us is the legendary retailer mickey drexler. he's the executive chairman of alex mill and it's great to see you this morning >> good to -- i don't see you, but nice to be here. >> i see you out of the corner

of my eye. >> okay. good >> let's talk a little bit about retail and what's happening now. the numbers have been phenomenal i think a lot of people have been caught up saying, okay, shoppers are back. you're not so convinced that this is going to last. >> no. this is a once in a lifetime year we're up against, all of them, and it's kind of like being up against a snowstorm 365 days yes, you're going to beat last year i know most retailers are looking at 2019, but on the other hand, there's a lot of euphoria i don't know what it's out there for long term. i don't look at the market like that, but maybe that's why the stocks haven't responded you're not beating your numbers, then you are really not doing well it gets close to last year, frankly, has issues. no, i'm not euphoric i think the business really

starts again when the storm is over and certainly '22 would be the measuring point for me this year a lot of expense cuts, a lot of unprofitable store closings, a lot of inventory -- not excess inventories we all kind of under bought and -- it's kind of a perfect storm, no pun intended, but we'll wait and see to what happens. i'm not sure i'm not optimistic about long term things necessarily changing until i see more excitement in the marketplace, until i see a lot different or better choices in the apparel world i'm in and so we'll wait and see. >> when you say the long-term trends continuing, you mean

things like the mall being a place out of date and not as desirable? you mean department stores are going to have trouble? explain what you mean by the long-term trends what do you think the biggest pain is going to be? >> i don't think you're going to see retail be the way you've seen it over the last -- it's been changing for years in terms of the business meaning companies that have a unique position and companies, frankly, that sell -- that own their labels are to me the future. it's kind of been the future for many years i think this year intensifies that plus, what's interesting is you have a lot of wholesale companies learning how to go direct to the consumer you know, nike, for example, has learned how to be a pretty good direct retailer because the online business exploded this year

stores weren't there shopping malls, my friends aren't always happy with my comments, but until there's a reason to go physically, until there's an intense excitement is probably the wrong word, but until the assortment is very good of retailers, you can go online everyone's learned to buy online the numbers are extraordinary in terms of online and everyone, frankly, is using -- i say everyone their home as a fitting room so why go? >> you know, there have been a lot of people who have kind of watched what has happened and who think that maybe, maybe people are dying to get back out there and this is a change you just disagree with that entirely, right? you think this is a brief moment where people want to get back out there but after that --

>> yeah. >> -- i think we've all thought there's pent-up demand. >> 100%. we've all been locked up for a year we're trying to figure out in our tiny company how much sweats to buy i mean, i can't imagine it continuing as it was we're starting to -- well, we're so small that, you know, we haven't been in the active or the sweat business in an important way, but i think in terms of pent-up demand, it's nice to get out of being home all day and getting away from the zoom, which drove us crazy in our business. you know, trying to tell a color on a zoom or a style i learned one thing is go back to the office and start looking at the merchandise again and it's amazing how many companies are -- in my world where product is important --

important, it's everything they're not going back to work until labor day. you're going to start on product and look at it and make evaluations on the color, on the style, on the fit in zoom? can't do it. so i'm not -- i'm not optimistic, no, but i'm optimistic for the companies that, in fact, are doing what should get done in this environment. you know, it kind of reminds me of -- i look back -- i've been around a long time if anyone would have told me 90% of my tv is being watched on netflix, on hulu, on amazon prime, like, hello you know, i never would have -- that's where we watch tv when people talk about tv i don't hear anyone talking about network tv and i saw a great show or even great movies. so i'm a product person. i learned from my first day, that's what it's about, along with great marketing and along with good operations and all of

that, but, no. it's pent-up demand by definition doesn't last forever then we'll get to normalcy again, i say 2022, but that's i think when the reset begins. >> you are the king of style people look to you to figure out what trends are coming next, and i've heard so much that as we come out of this people are going to want to dress up more, they're going to want to look fancier than we have for the last 14 months or so but what you're wearing today doesn't necessarily signal that. where do you think we are going? where do you think people want to be? what are the stielts right now >> well, the reality is i'm wearing denim, which is the american fabric and the worldwide -- it's the biggest fabric in the world. i'm wearing alex mills, special washed, longer jean jacket i'm very comfortable in it i'm not sure what dressed up means anymore, but i think for

us there's a definition and, you know -- by the way, style, it's all just about good taste in the sense and what people emotionally connect to so for us, we see nice clothes, well made, very important. good colors and an involvement of style but my mission in all the years i've been in business is i want things to stay in the closet you know, that's our version of sustainability in a sense. save your clothes because there's no need to trade in your wardrobe every week unless you're buying cheap clothes. our prices are very affordable i'm stunned, stunned at the prices i see on so-called better clothes because i know their pricing. i know it's a double markup business, but i've always -- i learned early on in my career,

one profit not two the consumer. hopefully you don't throw anything from alex mill out because it's going to be in style hopefully always i think women today, men always, they wear the same uniforms. i think women want things that they can -- are seasonless and wearable and look nice we're not in the high fashion, high risk business i think you'll see evolving changes. >> jacket, i like it yeah >> that's what we're working on. >> yeah. it looks great mickey, thank you for being with us today it's great to get your insights. we'll talk to you again soon. >> thank you take care. >> "squawk box" will be right back

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fast and easy. - [announcer] learn more at grammarly.com/business. john deere reporting strong earnings for the second quarter. a 170% surge in quarterly profit as the reopening of the economy. it continues to fuel demand for farm equipment like tractors and combines deere also raising its full year outlook. ceo john may warning that he expects increased supply chain pressures through the balance of the year

it's a comment echoed by other industrial companies like caterpillar and honeywell. key questions on the earnings call which starts two hours. how fast can deere build up the inventory to meet rising demand. infrastructure talks heat up in washington, deere is seen as one of the key beneficiaries of an infrastructure bill. also an update on the newest technology combines that use artificial intelligence and robotics to testing drones to spray crops and identify weeds deere spends about $2 billion a year on research and development. that's 40% more than its key competitor cnh industrial. that's one of the reasons investor kathy wood added to ark's etf. shares of deere up 1.6% in pre-market trade "squawk box" will be back in two.

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coming up, barry diller is going to be joining me live right here at little island to discuss the development of this beautiful once in a generation new park it's the reopening of new york and ofou crse business "squawk box" returns right after this at pgim, the pursuit is on for outperformance.

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university wrote the biography of steve jobs in 2011 walter, a lot is at stake here the question i'd ask you is how you'd handicap the trial thus far and what tim cook needs to say or not today >> i think the trial is leaning in apple's favor as they describe, it's part of apple's dna historically that it cure rates an app store. that it's not a monopoly in terms of cell phones it gets to curate the store that's safe, guards your privacy. they have a monopoly it's an iphone.

developers should be paying that quote unquote 30% tax or not >> yes i think that if apple is able to say we do our policies in order to help the consumer, we do it to be safe, keep privacy, to pay for the store in a reasonable way, that's fine when you're putting a 30% tax and other taxes that go on it, too. for example, in the name of privacy, if i were at "time magazine" like i once were and we wanted to put an app on the

apple store and we wanted to know who the customers are, what they were doing, apple would say, no, that violates the privacy. that's actually hard for a magazine or any -- fortnite, any gaming company that wants to have some of that data i think that that's where you get into this larger problem that you're talking about in the second trial it goes all the way back to standard oil versus microsoft 100 years ago. are you leveraging your dominance in one field in order to hurt competition in another field? >> and what's your answer to that >> i think that all the big tech companies are doing that now i think that 20 years ago, 30 years ago anti-trust law shifted to focus too narrowly on harm to consumer, especially on price harm to consumer google, facebook, apple say we're not charging you more or things like that

i think we also have to look at the other prong of the original sherman antitrust act, the original u.s. versus standard oil which is harm to competition. it's clear to me there's harm to young -- i'm teaching at tulane, just meeting with my students, graduating this week they all want to start companies but they're all afraid if it's successful they could get crushed by apple, facebook, amazon, google >> walter, it's all the good to see you. we appreciate your perspective and i look forward to continuing this conversation with you very, very soon. >> thank you, andrew. meantime, coming up this morning -- thank you, walter -- barry diller is going to be joining us right here on the little island to discuss the development of a once in a generation new park right here in new york. the reopening of the city and so much more "ua" llonassqwkros a big hour ahead about the f, she'll say she's got goals.

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good morning new airline launch and then we'll have some boston consulting group's rich lesser as workers return to the office and timely iac chairman barry diller joins us right here at new york's newest public park. it's his nine figure brainchild and highlights america's renewed love affair with being outside the final hour of "squawk box" begins live from the little island right now.

so long since we've had any other music. is that "jurassic park". >> it sounds like jon williams. >> good morning and welcome to "squawk box" here on cnbc. i didn't even consider that, andrew, that you had to worry about that i'm joe kernen along with becky quick and andrew ross sorkin andrew's on little island. i don't think there's any agar dna, newly designed dinosaurs anywhere. >> not yet just thousands of people just thousands of people and helicopters everywhere it's a big morning here on little island. >> there could be one dinosaur i think on 2.5 acres, otherwise

you'd be cleaning up just constantly really, i don't think that's a good place to try that u.s. equity futures -- >> thousands and thousands of people yum, lunch. >> it looks like an amusement park not just a public -- looks great. it almost looks like you're expecting those cars go across the top. or even better universal plan. far superior amusement park. dow jones up 155 points or so. nasdaq up 52 and s&p's up 17 treasury yields up again not the story. he hasn't been the story that's exactly 1 5/8 have i got that right? i'm not sure

>> i think you're right. yeah let's start this hour with the choppy week we've had in the markets. cnbc's senior markets commentator mike santoli is here to join us about what's going on under the surface of all of this mike, all i can say is tgif. no doubt about that. you know, this week though as we sit here on friday, very similar ribbons to last week you had a quick down draft in the market at the start of the week bottomed in the s&p around the same level 40/50, 40/60 you had the snap back with tech stocks participating we'll see if this carries on into next week you see it's all happening though in this 5 or 6-week sideways period, chopping around, no net progress. not too different from what we've seen in prior periods. i keep pointing it out so far this isn't really distinguishing itself, this choppy period from the ones that came before that were less than 7% pull backs. we'll see if that changes. look at some of the sector

specific moves here in some of the leadership groups. itb is home builders and kbe is s&p banks. they've curled lower even though they should theoretically be moving in opposite directions in response to yields this is fatigue in leadership group. a little bit of strength here in semiconductors and internet stocks so this doesn't really look like a big sea change in terms of the leadership of the market it looks like selling one thing where you have high exposures and picking up some of the stuff and maybe a little bit under invested it's a waxing and waning of strength big picture. take a look at this chart. comparing the run since march of 2020 to prior huge rallies off of a major market low in 2009 and this is the chart making the rounds from strategis. we've been running way ahead 70% move

it flattens out or chops down. we are ahead of the game here. one thing i'll mention quickly two instances is not significant from the past. those prior markets flattened out around the time that the fed started to withdraw some stimulus, either hiking rates or the end of qe 1 in 2010. that will set the broader scene for you, joe >> okay, mike. thanks stay with us joining us now for more on the markets is sarat sethi and he's a cnbc contributor. how do you view the week, sarat? you've been -- i think you've been ready and willing and able to go with the flow and the momentum and stay long anything happening this week whether these are preshocks or whatever they might be in crypto and whether that affects -- i don't know whether you think that affects the equity markets. but it all seems related anything got you with like a baby toe out the door ready to

head out or are you full speed ahead? >> no, i'm not ready to head out. in fact, what i'm looking for, joe, is opportunities to buy specific stocks that just get thrown out you know, for example, this week when the at&t deal was announced, you know, stocks like charter and comcast were for sale for no reason other than they were just in the same sector so i'm looking for opportunities as we go forward where there will be money to be put to work. also, i'm also looking at where i want to now reduce some exposure and put it into other areas that i'm going to grow for example, home building stocks they have done everything you wanted them to do since last march and what you're facing now is tougher comps, potentially higher interest rates and an opening of the economy i think investors are doing the right thing, taking money out of areas that have done really well we couldn't say that a year ago other than if you were looking at internet cloud stocks the opportunity is there for secular growth and for companies that i think will do well for the next two, three years even

if the fed decides to come n. for example, in american tower or go daddy will do well and then you also want to look at other sectors like health care where i think you'll get some more secular growth because it's been so depressed over the last couple of months you have to be patient what we saw in the last two weeks you're going to get more of especially if the economy gets stronger with europe picking up, people are going to be questioning when the fed is going to be stepping in in any type of capacity whether it's reducing bond exposure or just talking interest rates. >> you referenced the fed. that's what i was getting at, whether we are moving along towards more normalization the slightest indication does seem to give edge to the market. you're still dancing you're still dancing but you're only dancing with certain partners. >> exactly i'm dancing in specific parts of the dance floor where i think

there's going to be opportunity, and i do think we have to look for indications globally as the economy gets stronger. joe, you know this, we still have huge fiscal stimulus in the system and monetary. at some point, you know, the fed is going to have to indicate just as the rest of the world has, that could be that hiccup in the short term. it's not that growth is going to slow, you have to find the right part of the dance floor. >> even in a macro sense, you don't think the s&p or even the nasdaq as far as valuation goes is that excessive in terms of where interest rates are and with all of the stimulus so it's not just an accident waiting to happen in your view. >> no, but i'd be careful on the nasdaq just because it's propped up by a lot of high growth stocks that have earnings that are projected out 10 rks 15 years. i think the s&p, which is fairly valued, again, you have to pick your pockets there, but if rates do move up, i'm not talking 10

year on 4% 2 to 2.5%. they're so sensitive that you will get rotations and you have to be careful. i think this is that time where, a, if you've made a lot of money in the high flying stocks, it's okay to take profits and redeploy in other areas. >> all right so you can have some speculation in crypto and dogecoin, it doesn't necessarily translate into overall the equity markets? >> right i think it's -- on those two you'd have to be careful where investors have leverage. the spac market, i think which is also speculative. so there are some of those areas where, you know, you're looking at some extreme valuations and really there are no earnings underneath them. some stocks that are trading at price in sales over 10 you need to be careful >> you've played the ocean course, sarat, or never have >> i have. it's a beautiful course and it's tough. >> two different courses depending on the wind. can make grown men cry. >> right.

>> remember the ryder cup down there? there's no crying in golf. >> i do. if the weather shifts, that's going to be even worse the wind is horrible. >> i love that it's like -- oh. when those guys -- if there's no wind, they make it so clear that they're different than we are, than you and -- they're different. >> completely. >> they're different they're like not human >> completely. different ball game completely. >> i know. >> thank you. >> all right we'll see you. becky. thanks, joe. americans want to get out and travel after more than a year of the pandemic now they will have one more way to do it thanks to an airline industry veteran phil lebeau joins us right now he has a special guest with him. phil >> reporter: good morning, becky. let's bring in david neilman founder of a new airline, breeze david, thank you for joining us this morning

i'm curious, give people sort of a back of the envelope idea of what they can expect from brees. you -- breeze you're primarily targeting under served markets, correct? >> exactly our first routes, we have 39 routes we'll be flying this summer from 16 cities and 95% of those routes we have no non-stop competition. it's pretty exciting thing >> we'll let you get that earpiece in. >> sorry about hat. >> yeah, i got it. >> it's live tv. doing it on the fly here you guys are targeting primarily the southeast right now but i know you plan to expand over time in the past it was -- for a startup, you know this from your days at jetblue, you could pick off markets and say, look, we are going to serve you because the big boys are ignoring you.

this time around some of the executives for the veteran airlines are saying, oh, no, we're not letting the upstarts come in. how do you convince the public we're going to be here and we are the airline you want to choose >> we've got a great management team we've done this so many times. this is my fifth airline i've started. you know, i mean, covid's been tough on our industry, but we've been able to take advantage of low aircraft prices. so we have really low prices we have -- we're flying in routes that, you know, haven't been flown non-stop really ever and with really low trip costs we can move around if somebody decides they want one of our routes, we can move somewhere else we have hundreds of markets on our list it's really time we have a great team we have great technology i don't know why this earpiece keeps flipping out of my ear >> that's okay

>> ear's bigger than the earpiece everything's set up for -- one thing i heard yesterday. one of the things i heard from one of the airline analysts, there were $16 trillion that weren't spent during covid on travel, entertainment, live events and all of that kind of stuff. not only is there a pent-up demand but people have the money to spend that they haven't spent for over a year. i'm here in charleston, the place is full. people are having a great time thank goodness for vaccines. >> david, we're running up against a break. i have a quick question. what is your sense as soon as you start selling these tickets, how full do you expect these ember air jets to be once you start flying by the end of the month. >> we can start flying next week, next thursday. $39 fares is going to hopefully get people going even when we get rid of the 39, it's going to be 49, 59. as long as people know it's

happening. we're going to have 12 cities here from charleston there's a lot of people that are going to visit charleston this summer and don't even know it yet. you know, obviously low fares, convenient air service we can get you there for half the price, get you there twice as fast by going nonstop we'll bring a lot of great people here and vitality to the cities we're so excited about it. >> david neleman who is the founder and ceo of brees airways. thank you for joining us from charleston joe, as you take a look at what's happening in the airline industry, you're starting to see the startups come in you have the big boys adding more leisure flights you can tell there is a lot of pent-up demand and people are moving in to meet that demand. >> amazing yeah it is. wish him luck. when's graduation, phil? is it over >> it's over it's over. >> yeah. >> all right >> the arch. st. louis. i'm still -- you weren't

impressed yesterday when i knew where you were coming up, reopening hour rolls on iac chairman barry dillner will join us from new york's little island excitement over his project and great example of the surging interesting in outdoor activities maybe a short par 3 course no, that's probably not -- next, how will executives handle their workplaces when some have the vaccine and some don't we're going to talk to boston consulting group rich lesser stay tuned, you're watching "squawk box" on cnbc

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many companies have been wrestling with how to get the right balance and trusting their employees and customers from many businesses and on the other hand giving assurances, particularly to colleagues who are really still very nervous health wise and who are going to be coming back into the office i think that balancing point is what many, many companies are wrestling with >> i think maybe one of the most interesting points has been that a lot of companies have taken

the stance that you don't ask people if they're vaccinated, that it's a violation of privacy to be asking your employees if they've been vaccinated, not to mention your guests and your customers. if that's the case, do we just take it on the honor system that people show up either for work or show up to your business without a mask, do we just assume that they've been vac sin nated? >> i think i personally haven't seen this as a privacy issue, meaning the choice to take off a mask in a public setting by the rules that have been set by the cdc and reinforced across most states in the country, not all states say that if you're taking off your mask you're declaring yourself to be vaccinated. i think that the privacy concerns to me are less than i think many companies have high trust. they expect them to follow the rules. certainly when it comes to customers it's much more difficult. we see many that are not ready

to force their customers to declare their vaccination status even if it isn't a privacy issue, it's still a difficult issue and that is what -- >> wait a minute rich, i don't understand what you just said. does that mean companies should ask employees or they should assume that they're following the rules? if they show up without a mask, that's fine, that's enough >> i suspect from the data we've seen so far, i think the majority so far are choosing to ask about vaccination status for their employees, not customers but i suspect we'll see a range of different views about that. i think some ability to confirm that people understand the rules, that they're committing potentially in writing that they're following the rules, for many to show their vaccination status, i think that's where most companies are going to end up >> what's the biggest concern, question, maybe uncertainty that you hear from ceos that you've talked to? because you've talked to a lot of them. >> in all honesty right now, the

biggest concern is just managing this very hot economy with all the challenges on the supply and the people side that people are seeing right now that supply chains are disrupted in many industries and, you know, a year ago -- exactly a year ago right now all we were thinking about was demand. would the market come back and how fast and how far would things drop? right now people feel very confident on the demand side it's about supply. it's about getting enough people it's about inflation concerns that are lingering we are personally on the more optimistic side. we're not heading to a breaking of this inflation regime we've had for so long. those are the top of my concerns and navigating the short-term challenges about how to get people back to work, how to do it safely, how to give assurance to people that are worried to come back, that they are coming back to safe environments. those are really the top of mind issues >> we had an interview earlier

this morning with the head of the port of l.a. he talked about how the demand picture haed out in time, the supply chain issues that you've talked about i think he imagines that this will last for a time and part of the big problem is that there are so many more imports coming into this country than there are exports. you know, that balance has been disrupted in terms of whether you can get the shipments in the right place, whether you can get all of the equipment in the right place at the right time. he said part of the longer term answer is trying to get rid of some of the tariffs that were put in several years ago when you look at the supply chain problems, where do you see the big eggs hangups what would you think the potential solutions could be >> well, i think we just have to recognize, we're coming off a severe shock to supply chains around the world they're very complicated they cut across geographies.

they cut across different sectors. it's not surprising when you come out of it and as quickly as we've come out of it there's going to be disruptions and gaps and because things are so interconnected a gap in one sector can easily flow through others so i think time is going to help us work through this and i don't think this is a permanent situation we're in the next quarter will continue to be tricky also by the fall when kids are back in school, when we're past this period around extra unemployment support, i think we'll see a rebound in the labor force. i really feel like the next few months will still be a bit challenging but that we'll be in a much more normal place by the fourth quarter this year but busy normal in a positive sense. >> pleasure. >> pleasure, becky. >> normal of anything we'll take at this point. >> thanks. bye-bye. coming up, a wide ranging interview with iac's barry dill

l dillner. so happy finally happening. they're going to talk about everything from the city's reopening to surging travel demand to time -- to warner media's tie up with discovery. don't miss an exclusive interview with microsoft's ceo salt satya nadella. stay tuned, you're watching "squawk box" on cnbc before investing consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully.

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when we come back, "squawk box" heads to the little island. what does that mean? andrew can tell us he's there andrew, what do you have coming up >> we have the introduction of a once in a generation moment right here in new york city. little island and its benefactor and creator barry dillner is going to be with us after the break. we're going to talk about the reemergence in new york, the biggest media deal of the week and tim cook's testimony and what barry dillner thinks about it and more right after this

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you have a crowd here with folks screaming thank you, barry. >> thank you, barry. >> you can hear it right now. >> embarrasses me. >> it's quite something. >> but it's nice to hear >> this is a decade in the making. >> actually, the other day i wanted to find out the date so i did get. it's literally to the month ten

years since we had our first discussion for this. >> hundreds of millions of dollars. this is you and dvf together. >> yeah. >> when you came up to me i almost asked you how you felt. i wanted to wait because i could see it in your face. this is day one. >> yes. >> opened at 6 a.m. >> actual humans on the place. i mean, it's -- >> at one point you pulled back. there was a fight over whether this could even happen. >> oh, yes yeah we went through. it was not actually a pony ride. i mean, we went through three years almost, maybe even four years of litigation and got to the point where my family said to me, will you please stop this nonsense i mean, go where you're wanted go someplace else. we'll do whatever. and we got to one point where they were going for an injunction, and it was the day we had to order $80 million of i think cement or whatever and i

imagined this big pile of cement embargoed, i said, okay, enough. we stopped that was it for about six, eight weeks. until governor cuomo really did reach out and say -- and i -- you know, i was -- everybody who worked on it was like -- they went into mourning because they had more than -- they had their fobs in it, they had their hearts in t. they loved the idea when cuomo called me i said, gee, we've now closed this thing down we've written off this 45 million we've already spent. i don't know if we can get it back together. so then spent a week trying to gather the forces back, which was actually great because everybody came back. so it was a siege. >> so we're sitting on now -- it's 132 almost tulip like petals supporting this structure. what's it feel like to have all of these people around here.

>> it's hard -- it's not hard. it's the easiest thing in the world to say -- truth. to see people say why did you do this and it's my family, my wife certainly, we love public art and public places and we're lucky enough because we have some resources but the real reason to do it is this. it's to see people being really happy in the city. they come, they cross that bridge from new york, all that new york is, and they kind of walk up the bridge and they enter this place an it's a little bit kind of like oz it's another -- it's another dimension, a bit i mean, i tonight want to go too far with it, but it makes people happy. >> it's a very special thing it really does capture, i think, the reimagining and reawakening of new york. i know that we spent some time together on "squawk" right in the aftermath of the beginning of the pandemic and to describe you as down, as somebody who's not usually down, you are

usually an optimist about all things sort of take us through where your head was then to now because i can see the excitement. >> for me it's actually -- i mean, i see it in people, i'm sure you do in new york now. for a year, first of all, we were completely deserted you remember when, you know, it looked like a nuclear blast had taken out all of the humans. there was nothing on the streets. so we've gone from that and all of that to in the last -- i think it's in the last days. i think it's actually once the dumb cdc finally said take those masks off that there's been this explosion of people who have lived in the eye of it where you're never really centering in it. >> right >> now you're coming out of it and you just see it on the streets. people are happy i'm happy. >> i want to talk about the media deal of the year perhaps and all of these other issues, but your friend joe who's back

in the studio wants to say hello and i think has a question for you. >> hey, joe. >> hey, barry. it's not really a question i just wonder whether you needed a moment somewhere on that island just to collect your -- i mean, i'm feeling emotional for you and i'm wondering -- >> i'll tell you -- all right, joe. >> barbara walters is always trying to get people to cry. i know that it costs double what you thought it was going to cost that's not what i'm talking about crying for -- >> joe, i would settle for double. >> after the last 14 months and opening this today and seeing those people, i'd have to go off to the side and i think i might start bawling like a little kid. i don't want you to do that. >> thank you so much >> it's amazing. >> no, actually, i will tell you the truth, before i came here i snuck around and i went up to the -- one of the highest parts and i hid in a little corner and, yeah, how could it not get you. >> that's what i mean. i knew it. i knew it. >> yeah, so, you got it.

it happened. it won't happen now, i hope, unless you keep goading me and then i'll bawl like a baby. >> thank you >> thank you >> no, it's a very, very special thing. as i said, it's a once in a generation moment. this is something that's going to be here forever that's the thing. >> the reason -- people said to me, i thought to -- not thought, i thought for a long time, any time i come to something anyplace in the world that's been there for a long time, a park, a statue, a something i go, gee, how did that actually happen 80, 100, whatever years ago, and usually it is somebody's initiative, you snow. >> right >> some oddball or some whatever ball said, you know, there's an idea here. so the idea that maybe 100 years from now people will come on it and say, h'm, that's something

i mean, if i could push myself, there's where i'd go. >> i can see -- >> yeah, don't go there. >> he may cry, ladies and gentlemen. >> no, he's not. he's strong. deceivingly. >> there was objections to this island >> oh, yeah. >> and even if you read some of the critiques today, there are critiques about this being built by a billionaire and we are in a unique moment in our politics, in our history -- >> yeah. >> -- where having the success that you've had and being able to do this, as fabulous as so many people here may think it is, there are others who don't how do you think about that? >> well, you know, everybody's entitled to an opinion and i respect people having the ability to say anything for sure, but as to that issue, i think that public/private partnerships, the ability -- we did this with the hudson river

park, we did this with the city. we have definitely bloomberg and de blasio to thank whom we worked with. we worked with community boards, et cetera, but i don't think you get much done unless you have both public and private and, you know, it's true. we're -- you know, i'm lucky enough my family's lucky enough that we've got resources and people can -- look, yeah, it's going to happen nothing i -- one of the things is that when we had the lawsuits, which were completely unfounded. they were revenge lawsuits, but when we had these lawsuits people would say no good deed goes unpunished. the truth is, that's terrible. if that's actually the truth -- >> right. >> -- but it isn't the truth look, it's here. people are happy. >> you're going to continue funding the maintenance of this because this is not a cheap

operation to keep rolling. >> no. >> what happens after ten years? >> no, we're doing it for 20 years. >> 20 years. >> we extended it another 10 years. >> how much money are you going to have to spend just to maintain this? >> probably for the maintenance over 20 years, about 160 million, something like that including -- you know, we're also subsidizing -- we're putting on 525 performances starting in june >> right. >> in the three places where you can perform here and we're doing that, and that will transition over time to institutionalized. the maintenance we're going to do it. >> it's a remarkable thing i do want to talk to you about the world of media the entire media world was shaken earlier this week with this big transaction with the spinoff of warner media from at&t and of course the merger with discovery what did you think when you heard it >> the great escape.

>> the great escape for whom >> well, the great escape for time warner -- for at&t. i mean, a -- a remarkable thing. you know, it's the thing -- you think about it, it's the power of monopoly. ma bell should have been dead and buried by now. they go into cable only a few years later to say, oh, my god, we make a mistake and they sell it they go into buying direct they go into buying time warner with, you know, an idea but certainly not fully fledged and then they go about basically, i think, hurting time warner assets they drive zucker out of the building basically though he gave them a time lapse which he's not going to have to exercise they literally drove him out you have a company you're in charge of cnn. >> right. >> they call him up and say, by the way, hr no longer reports to

you, nothing reports to you except the programming you get to tell the people on the air what to do, which is such an incredible insult to do to a company, to a person running a company. then they drive out all the talented people. not all of them, there are a few left of time warner. then they say, okay, never mind, and then they sell it, although they didn't sell it. actually people say discovery bought it. no, at&t basically bought discovery. at&t shareholders. >> right. >> but discovery management, the scrappy mr. zaslav gets to operate it malone and the new houses get to control it, and i think it's now -- it's certainly in better hands. how could it have ever been in worse hands? it's in better hands now zaslav is the kind of creative executive. he's scrappy he built discovery from relatively nothing to something. >> right >> he's exactly the right person

to -- you know, to try and develop it >> you once said that nobody would really be able to ever compete against netflix. >> yeah. >> given its success >> yeah. that's true. >> still true? >> yeah. >> so warner media, discovery, this doesn't change that >> i don't think it changes the -- look, netflix won this several years ago. they're the only ones who have the scale and the momentum to keep making these somewhat lunatic investments in programming, and it's not that disney -- look, iger now being pushed to the sidelines by his successor, not very nicely by the way, but -- certainly doesn't deserve it but -- >> you think he's pushed bob iger away? >> oh, yeah. but the thing is that these -- yeah, i do, by the way, but these assets, you cannot --

netflix -- disney is certainly going to do okay whether, by the way, when you balance it all out five, ten years from today and you say what they gave up and what they received from the middleman to what they get in direct is ever going to actually pay off, it may just be survival for them. >> right >> they're okay. it's not that they're terrible you cannot compete with the momentum and the scale no one will ever be able to do that. >> i want to go back about -- bob iger's chosen successor was bob chapak. >> that's what happens at companies. >> what do you mean? >> age old thing the successor usually -- you know, it's edible in a way usually kills the father, kills the boss i don't mean he's killed him listen, i'm not by any -- but i do know that he's now kind of forgotten. it is bob and his guts and

courage that actually said i've got to go direct to the consumer no matter what it costs. by the way, it's hugely expensive. you just total up -- >> but you don't think bob iger has the influence he used to have at disney anymore >> i don't think so. i don't know, but i doubt it. >> you think that's to the benefit or the detriment of the company. >> detriment without -- i mean, if there's anything you could do to induce bob to continue to want to run that place, whatever. >> right >> but by the way, and also, you're sitting on a kind of melting ice cube he said he's leaving in december so what do you think they would do >> tell me about the other chess pieces -- >> that's none of my business. sorry. >> tell me about the other chess pieces on the board. earlier this week we heard that amazon may try to buy mgm. interestingly you have a stake

in mgm resorts the stock of mgm resorts went up because people mistake -- >> come. think amazon's going to buy mgm. >> can that change the dynamic >> no. >> how do you see all of this playing out? >> it's all catchup. everybody's saying -- look, amazon is in a different world than anyone else they are not in the media business they're in the prime business and if they give media, meaning if they give their consumers who like prime really good video, that's justifiable, but that's -- for someone who's been in the entertainment business, you know, where your job is to, as they say, put asses in seats, old vernacular in theaters, amazon doesn't care. they care if you subscribe to prime. side result is you might get to see john krasinski.

>> you are sherry redstone, brian roberts -- >> brian's got a different thing. the thing is, do you have a route to the sea brian roberts and comcast have a route to all markets they're -- by the way, they are the perfect hedge of all of them because they're the only ones who really are now in both feet in both sides of it. so it's a great hedge and they've, i think, gone about the streaming thing smarter than anybody. what they've done is say, no, no, no, no, no, we are not going to unplug all the profitable routes we've had we are going to have a streaming service. it's going to be ad supported which we know something about. and our invest will be relatively moderate. they have -- >> if you're -- do you think you need to buy something else >> what do i know?

>> a lot >> no. i mean, i just think if you -- it seems like they're in a perfect position because they do have a route to all markets that's not been endangered they have been i any sane about their program investments so i think they're -- yeah. i think they -- what other >> i want to pivot to the other news of the day. tim cook is going to be testifying in this case with epic you obviously have a lot of apps on the app store. >> we do overcharged disgustingly. >> say that again. >> overcharged in a disgusting manner if you go through let's call it the equivalent of an app store credit card, the transmission cost is about 2% that's what credit card companies cost for putting up that whole system and doing all of that stuff. that's what they charge to the person -- to the producer, let's

say. here app, apple says, oh, no, 30%. 30%. i mean, it's -- it's -- i mean, the idea that they actually justify it by saying oh, we spent all this money protecting our little app store i our little app store. i mean it'scriminal. well, not criminal >> let me ask you this though. >> it will be criminal. >> i want to get there, potentially, but what do you make of the argument that they built it if you had built the iphone and the app store and developed all of the - >> look, i build a highway and i charge you $100 to pass it i built it why can't i? look the only way you can get from here to there is over my bridge you can't get there any other way. and by the way, that really is the truth. they have a quasi--moan pole which they share with google. >> if it is 15%, we would have a

debate whether it was 15% and if it is 10%, we would have a debate whether it would be 5%. >> and first of all, it'sish rational 30%, it makes no -- it's irrational 30%, it makes no sense, i make something, i offer it to you, these people basically in the middle provide a service but that service has an analogy, the analogy really is credit cards. or you could even say, you can't, that's the analogy. >> you don't think it's a store? >> of course it's not a store. if you said to me that like a, you know, by the way, supermarkets, let's do that. what do you think their margins are? >> in fy tess mall, unfortunately. >> they make out okay. they have a profit the idea that you would actually be able to get tribute of,

match.com, little match.com pays $500 million a year to apple to go through their store does that seem rational to you >> so as the department of justice, has the department of justice called you yet >> yes, sure they have. >> and have you -- i mean me personally, hello justice department, no. >> but you've made this case to them >> sure. >> do you think they've made the case >> we've made the case to everybody. look, i believe that when you get to sufficient size, regulation is good i grew up in the television business, which was regulated completely by the fcc, and really tight regulations everybody by the way prospered to say the least but you really knew that if you had a program, in the broad public interest or they'd take your license away. i think regulation, proper regulation, makes sense. i don't want to bust them up i don't think that's such a

smart idea but i would certainly do, when you have size and power, you've got to have regulation. >> what do you do? you regulate apple, i know you regulate google, would you regulate amazon? >> i don't know, because i can't -- as i, you know, look, please, you're talking to a dope here, if you think about again markets, i'm not, i don't know about -- i believe amazon is a very small part actually of consumer spending, and the things that you buy through amazon, so i don't know enough to make that case. but by the way, regulation anybody who reaches size has got -- because the natural impulse, there's no mon pollistic who is not a kind monopolist it doesn't exist. >> we will talk about travel and your other business and there was a moment we were worried that travel would never come back and now it feels like you can't get a reservation. what's it going to look like

is this a one-year period. is this a five-year period what do you think is about to happen here? >> what is happening here, around us in a while, there is an explosion coming out of the pandemic there is an explosion of people saying oh, my god, i can travel, i can do this, i can come out on the park, i can take my mask off, i can do whatever, it's going to last for a while, for sure i mean travel is definitely, i mean you just see, first consumer travel, and then a couple of years, all of those people say, business travel is dead, they're all dopes, business travel is going to come back, of course it is, because people need to be with other people in distant locations. >> and broadly speak can, given all the conversations we've been having recently about interest rates, i think there is a real issue about interest rates and when the - >> we're going to have inflation. >> we're going to have inflation. you're seeing it but then the question is, what

is the federal reserve going to do do they tamp it down do you think there is a bubble that is about to effectually get punctured here >> yes. >> yes, the question of course is when then >> i don't know. >> and what does that look like? >> i haven't got a clue. you're talking to again, i mean, look, this is what i do right now. >> this is what you do right now but you do invest. so as an investor, what are you thinking about now >> well, i mean listen, in our travel company, in expedia, we're thinking about how do we fulfill this demand in the best way. that's what we're thinking about, and at isc, we're thinking about is there anything we can buy at a rational price because really we have tons of capital and all of that, and prices are somewhat crazy right now. that forces us, which i'm not happy about is to say okay, let's invent stock, let's start very small, since everything else is priced out, although you

know, we're right now thinking of buying something for several billion that i think we can rationally buy so we're just doing what the next person on the corn ser doing. >> we almost can't get away without asking you somehow about cryptocurrency >> you can't ask me about cryptocurrency. >> i'm going to do. >> you can ask me about it but -- >> what do you think of it >> i think it's a con. >> you think it's a con. >> yeah, absolutely. i watched some of the people you have on and they talk about it, 40,000, 12,000, whatever, and i think this is nuts so far, but, but -- >> when this is over, we have to wrap in a second, what are you going to do next can you walk around here, do you think? >> look, i love, can you imagine what it's like - >> i know. >> to all this time to actually see people, humans, enjoying themselves here? i want them to enjoy themselves.

i don't want them to think they have some obligation to say thank you because by the way their faces are thank you. >> well, let me thank you on behalf of all new yorkers, and everybody that has an opportunity to get here, not just this year, but perhaps over the next century, and talk about how do these things happen, they happen because of people like you and we appreciate you being here this morning. congratulations. thank you. >> thank you. >> joe, back to you, my friend. >> new jersey thanks you there are other place, not just new yorkers. thank you. the whole country thanks you beautiful. we g toto go that is it it's the biggest thing that ever happened to small. lease the gla 250 suv for just $399 a month at your local mercedes-benz dealer.

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. welcome to "squawk on the street." i'm david faber. i'm just talking to you. >> how have you been >> i'm okay. >> that was pretty cool. joe was pretty cool. >> the road map this morning starts with wall street's wild week major averages set to continue to claw back the week's losses crypto trading, for a second straight day plus the biden administration, it proposes a local minimu