background dow down 125 points. s&p off 3 points nasdaq up .50% this morning, dow figutures indicated down 13 points if we were to close up 5 points, andrew, a point away from an all-time high. nasdaq indicated up 44 points. let's look at the treasury market you see the 10-year is yielding 1.56%. that same range we have been stuck in for months at this point. we should take a look at the "squawk stack. there are individual stories bitcoin is down another 7.5% this morning it is down below $33,000 this is the first time in two weeks it has been below that level. this is coming as u.s. officials are making moves to get back some of the ransom that has been

paid in the recent cyber attacks. oil still near the two-year highs. transports are weaker this morning. they had four sessions in a row of the losing streak that's worth paying attention. the transports tend to be an indication of what is to come. you could tie that to higher crude prices more expensive to do business in transport. amc shares up 4% closed up 15%. it was up 25% during the trading day yesterday. that came despite news of insider selling taking place since the end of may they had nine insiders who sold in the first quarter three in the second and none in 2020 however, worth pointing out the ceo adam aron has never sold any of his shares since 2016. >> it would be hard legally for him to sell a share today. >> it would be bad optics.

>> class action lawsuit from the shareholders. >> pointing out a lot of insider selling. not the ceo. you don't want to look at that look at shares at bio dprgen. incredible news for anybody who knows somebody with alzheimer's. incredible hope because of the new drug aduhelm this is the first treatment for alzheimer's in 18 years. providing a lot of hope and questions. >> there are a lot of questions. a lot of doctors and analysts who have severe questions and doubts about whether it works. >> offering hope we will see what happens the big question is what do insurance do do they pay for it when there are questions about the effe effectiveness. we will have more at 6:50

eastern time. we have news from the white house in the last hour the biden administration launching a government effort to tackle disruption that plagued supply chains during the pandemic establishing a task force focusing on semiconductors and home building and transportation and agriculture. it is tis to convene to diagnos problems and how it plans to address bottlenecks. it is using the defense production act to manufacture more active pharmaceutical ingredients in the u.s $17 billion going to advance batteries. did i say -- $17 billion and 60 million. im i meant $60 billion. these disruption have not resulted in consumer shortages and price increases, but you are seeing administrations now and

officials saying they pose a national security threat >> it is pretty obvious. let's talk bitcoin >> update on the colonial pipeline ransomware attack law enforcement were able to recover $2.3 million in bitcoin paid to the criminal cyber group involved in the attack that is more than half of the $4.4 million in crypto paid to hackers from dark side here is deputy u.s. attorney general lisa monaco. >> to leaders of cop rrporations and communities alike, the threat of ransomware attacks pose a clear and present danger to your company and customers and shareholders and to your long-term success. >> fbi officials say agents identified a virtual currency wallet used by the hackers and

obtained a court order to seize funds. this raises questions if the united states can be more effective and try to track this down it is not impossible to track cr cryptocurrency exchanges and movements through it there are a handful ofsites where this ransomware is taking place. you heard about investigations and wonder if this is the united states government really starting to crackdown and follow what is happening. >> bulls on bitcoin say it is trackable. to so good edegree some degree,t the speculation of how you they did it did they hack the wallet that was a big issue what they did appear to do is effectively take over the server where the wallet existed and effectively hacked that.

i don't know how you have done that >> maybe the vault was safe, but what was around the vault was not safe like a bank. >> if you take over the bank, what happens i don't know that is putting pressure on bitcoin. the pressure is should it? one argument is that it undoes the benefit of what it does. it makes them vulnerable it goes to both sides. i don't know i thought if it was more regulated, you would become a more stable coin hard to know let's talk apple doubling down on privacy protections. that's the take away from the presentation from the developer conference the company rolling out tracker blockers to help hide your ip address and location and prevent senders to see if and when you

open an email. it can track a report to see how apps are using your info it has a feature called private relay route. webs traffic to mask the sites you are browsing like a vpn. apple has features to use the same mouse, which i like, this is for me. and keyboard across a mac and ipad if you are here, it can go to that screen. i think that is a great thing. turns the ipad into a second screen other announcements include facetime calls scheduled sort of a zoom feature and interface to use facetime with windows and android. that is a big deal you can watch movies or show people your stuff and talk about it at the same time. if you want to watch a netflix film or just about any other

app, you can you can't do that with netflix yet. you may -- i don't think so. netflix doesn't run its system through apple. >> it is on netflix. >> no, no, no. this program works for disney plus and the others. it doesn't appear, at least at the beginning, to be hooked into netflix. you can use your apple wallet as your id. it will support driver's license andaccepted by the tsa it is only accepted in some states for now we will talk about the apple features at 6:30 a.m. eastern time. >> one interesting thing is tim cook addressing the avatar audience >> he is pushing farther into the privacy space. >> that's cute >> it was a clever and well done video. they managed to produce a cool

thing. the question, i assume, they want people back in the theater. they spent a fortune building the original theater >> things are slowly rolling back it depends where you are with the conferences. i know brian was talking about how he is headed out today for an oil conference in-person tomorrow. >> i don't know if you have seen the whole brouhaha at apple. employees don't want to come back. >> campus where they invested so much money marc talked about how salesforce is probably not going to see most employees come back they spent so much money on the campus as well. >> fascinating how many news letters do you get a day? >> countless >> nobody is talking about this. the privacy feature that apple just put into this will have an impact on advertising for news letters. you can't track if they are

opened anymore >> i like that i hate that people can track when i open things when i get complaints from people who realize i'm not opening it i haven't blocked you. leave me alone >> okay. it is every news letter. anybody who is in the news letter franchise. >> that is the broader concern anybody who has been using apple for delivery has complained about it it changes the advertising structure for anybody who relies on it. >> it hurts facebook and everybody else i always thought the email tracking was the most benign version of it. you can't track -- nobody i know actually tracks things on a per person basis >> i heard from a few people for not opening their news letter. i'm a fan. as a user. i didn't know you could see those things until i heard from them

>> interesting i want to hear who that is later. maybe i'll find out in commercial. when we return, meme stocks active check out shares of ame. apes are at it adding 15% in yesterday's session. bringing the june gains to 120%. we'll have more on that after the break. later, avenue capital chairman marc lasry joins us milwaukee bucks got demolished last night we're right back after this. >> announcer: this cnbc program is sponsored by ibm. the world is going hybrid with ibm. cutting edge made user friendly. in other words, we want a hybrid. and so do retailers. which is why they're going hybrid, with ibm. a hybrid cloud approach with watson ai helps manage supply chains while predicting demands with ease. from retail to healthcare,

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welcome back to "squawk. yesterday, amc was the most ak actively traded stock. for the mania, we are joined by amy wu and craig branch. good morning to both of you. amy, what do we make of this what do we make of the apes? >> they're back. they're not just trading amc stock. they don't just like this stock, they like the options. we look at the stats from last

week over 10 million amc contracts traded over $1 trillion in premium. when you actually break that down, you know, more than 50% of that is what we characterize as small op trades. 10 or 11 option contracts. those are retail size. >> in your mind, what percentage is driven by retail? what percentage is driven by institutions trying to play retail >> it is over half is retail because those are basically based on the small lot sizes and the rest is institutional and obviously people who get the playbook and are chasing momentum >> just one final point on that. when you say 50% retail, is that options or equity or both in your mind? >> that's in options that's in contract sizes we can deduce based on sizing whether

it is a block or large options trade or retail trade which you is 10 or 11 contract sizesizes. >> greg, is this a short squeeze or something else? >> this is not a short squeeze we do our selves a disservice when we call it a meme phenif hphen phenomena. when you look at the activity, the meme stocks we are seeing are heavily retail when you look at every theme that was seen a pronounced spike over the last year, first starting with reopening trade and then starting with growth and then starting with esg and the electric vehicles. all of that has been retail driven when you look at the names that have driven those themes, the data points out that about 50% in those most pronounced names was retail activity. this is not a short squeeze. if you asked me a year ago, i

would say stay away from the names that are heavily retail involved now professional managers have to make it part of the formula we have to take into account the impact that the retail trade has. >> if you are you taking this into your calculus, how would you trade gamestop are we trading gamestop or investing in gamestop? >> i would like to think of myself as the latter investor what i think for professional in investors, this is causing a more net long position than we otherwise would have you have to think twice of shorting stocks in the environment. the movement is fully divorced from any fundamental analysis. gamestop is trading nine times the value we saw for it in 2017. even if you believe a full recovery to pre-pandemic levels and you can make an argument that post-pandemic peak is lower

than that, given short windows and inflationary pressures a nine-time value is reserved for some change. that's not what is happening here this is nine times the value pre-2017 there is no fundamental case for that for me, i'm staying away from shorting or being negative on names i previously would have thought. >> to be clear, greg, you are not going long these names just to play or ride them >> no, that's not the strategy we employ at my firm i'm sure there are people who capitalize on short-term movements. we are long names with a fundamental long-term case for it >> amy, how does the music stop? >> you know, look. when you look to other peak

periods of exhuberance, you hav the guide down of momentum volatility is an asset you cannot sustainably at 500-to-1 volatility. people are buying to suggest amc is moving 30% to 60% per day that is not sustainable. we are seeing people on the institutional side play for the die down in voluatilityvolatili. gamestop is not back to earth, but at a lower level we see right now. >> amy and greg, thank you, both it's wild. nothing else to say about it >> that's for sure thanks >> one headline as we head to break. long-time tesla executive jerome guillen has left the company

he has been head of the trucking company since march. this move was announced on monday in the security filing. no reason given for his departure. stock is up 2.5% this morning. "squawk box" will be right back.

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we are tracking an internet outage taking place across global web sites this includes reddit and the uk and more the guardian is down we are working to gather more information. we will bring it to you as soon as we get it the future is taking a leg down right now. unclear if it is related or not. you are looking at the dow

looking down 100 points. s&p 500 is down about 7.5% >> nasdaq was up 44 when we started the show the s&p was up by 5 points when we started the show. that tells you the move we have seen we will continue to look at it also in today's executive edge corporate america making an effort to increase diversity in the board room progress has been slow for the lgbtq community. leslie picker has more on that good morning, leslie >> reporter: good morning, becky. slow is an understatement here 25 seats .4% of fortune 500 director roles are held by those who identify lgbtq plus. some seats are held by the same individuals. that .4% compares with 7% of the population in the u.s. that identifies as a member of the

community. a portion that is higher on younger demographics lgbtq has faced hurdles for board membership companies have not given leaders the opportunity to self identify meaning there is minimal data to identify lgbtq plus representation this group tends to be ignored with 448 of the fortune 500 companies excluding lgbtq plus communities for leadership >> i don't think these companies are anti-lgbtq, but when the board policies were written 10 or 15 years ago, lgbtq leaders were less visible than now companies did not think to add lgbtq. it is up to them to revise policies to start to see more outbo board members

>> reporter: nasdaq and goldman sachs added lgbtq plus as part of the board diversity initiatives. guys >> leslie, if you have nasdaq moving to do this, that is probably something that will make companies sit up and pay attention to it, correct >> reporter: exactly now a big part of it is raising awareness. bringing attention to the fact that there are so few board members of lgbtq self identification and the fact you see big companies like nasdaq start to include it in its listing requirements for companies. goldman sachs has a diversity statement in it. as we are starting to see more prominent initiatives on the front include lgbtq plus, there is a push for pension funds to include that in the initiatives.

it is startingto catch fire, but it is a slow progress on this front >> just in terms of people who self identify, the chart you show explains younger generations are more likely to identify as much and board members tend to be older maybe this is something that really gets cleared up with time and progress on things, too. >> reporter: exactly that's what todd sears said. he said that we are starting to see more progress as more people feel comfortable being out in the board room a lot of that has to do with the sheer demographic aspect the fact that younger people feel more comfortable being out and being out at the companies they work for whereas older generations have not ahad that ability or luxury. he is hopeful as younger people startgoing into the boardroom and in the decades to come, we will see more progress.

>> leslie, thanks. update on the news we brought you about the web sites including cnn and guardian and uk web site and reddit and others speculation of some kind of targeted hack. it doesn't appear that way a company called fastly is a content data network that under pins so many web sites apparently their operations are down and that is what may very well be affecting so many of the sites. we will keep our eyes on this. coming up, reaction to the big slate of announcements from apple from new privacy products to expansion of facetime calling. it is next later, everything we know about the alzheimer's drug approved yesterday by the fda. the stock higher by 38%. as we head to break, a look at the s&p 500 winners and losers

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good morning let's check at the futures things have gotten weaker since we started a half hour ago dow futures are down 150 points. we are looking at the s&p 500. down 11.5. this comes after the s&p had been up about 5 points a swing of 16 points in the last half hour. the nasdaq had been indicated up 44 points. it was in positive territory it is now down 12 points we will monitor the futures this morning. apple announcing software updates at the worldwide developer conference yesterday taking aim at zoom with changes to facetime and giving users ability to store state issued identification cards using facetime on other phones

is big joining us to talk about this is todd hazelton. good morning >> good morning, andrew and becky. >> what do you think to you, what was the biggest thing? i was shocked, not shocked, but surprised how they let facetime out of the apple garden. >> me, too it seems like cracks in the wall of the garden. the news is allowing people on android or windows to join facetime calls previously apple locked that down i checked it out last night on the data you can start a facetime call on iphone and ipad or mac you can share the link and they can join the call. it is like apple saying we see all of these people using zoom or microsoft teams

why not keep them using fa facetime i think it is smart. it brings them in, but opens it up. >> the question i would ask is is it any better than zoom? one challenge apple has is they are trying to compete in so many different software areas and then there are companies like zoom that are just focused on one single thing >> yeah. i think of them as more of a consumery fun app you use to call your friends and family that's how i used it in the past that is how most people use it at home. when you use zoom, you need to talk to 25 people across different devices. for work or a football draft and you don't know which device they are using. this is smart. somebody can host the call and you don't have to go to zoom and they can take market share

i don't think of apple as that type of app. >> anything game changing? >> the id was interesting. i would go back and reflect on the event. last year, it was a bigger event. apple said they are moving away from intel we didn't get a huge announcement a lot of medium announcements. i think the wallet one with the id is cool i was talking about that what it will do is allow you to put your driver's license in your phone with the apple card now or your credit cards when you go to the tsa at the airport, you can show them your phone. you don't have to take out your wallet and license that is bringing the idea that we will get rid of our wallets closer to reality. the problem is it has to be rolled out state by state. apple hasn't said which state will support it first. it might take time you know, if you are taking off in new jersey and landing in

california and what happens if california doesn't use it? and police departments what happened if you get pulled over you need your wallet for your driver's license there also a lot of other big changes to facetime to get back to that which are fun. a shared feature that let's you start a video. whether hulu or disney and watch it with your friends which is neat >> todd, on that story, i was trying to explain to becky i said netflix you can't do it with netflix why not? >> good question that comes down to the agreements either netflix hasn't built it yet. it is the developer conference they have the tools. they can build them in that's one thing or it comes down to the agreements where you see different platforms supporting and not supporting other services

if netflix sees apple as a potential competitor, i don't think a very big one, but maybe they start to not support each other services that is what you see with google the and roku are fighting. youtube tv was pulled off roku >> todd, i was wondering because of the regulatory scrutiny on apple right now. i would guess it is netflix deciding not to do this. if apple is not allowing a competitor on, you think it would draw more eyeballs from washington >> that's what i would think apple probably wants as many services as possible on it again, it brings more users while developers might not want to build it yet. they might want to see what is going on before they support these sorts of things. >> anything else in the opening up of the walled garden? the issue that becky was talking

about with the regulation and all of the spotlight on the company right now? >> there wasn't anything huge in terms of regulation issues one thing that stood out in the walled garden. they are allowing third-party developers for siri. i know this sounds weird you can say, siri, set the temperature to 86 degrees or 76 degrees in the house the thermostat would respond the way this works from amazon does this with alexa, it has to route it through home pod in your house and through apple's secured system with siri through the cerservers and back it is the first time i have seen siri on a device that apple hasn't made. a breakdown there. >> todd, you want to weigh in on the privacy measures that apple

put in place we were talking about it in email and news letters and the like -- some of the privacy features available in most of the world except china >> right that is par for the course with a lot of privacy features and the way that works we can break it down into two things app privacy report on iphone and ipads. it shows you, you turn it on and it collecting data over a week and shows you what the apps are doing. web cam, microphone or servers they were contacting that app seems to contact this server somewhere else a lot. it shows consumers what the apps are doing. icloud plus. apple talked about it yesterday. it has three features. private relay which is like a virtual private network or vpn

for work it locks down the data that is between you and the computer surfing the web or it makes it harder for others to see what you are doing. it has how me secured video unlimited amount of those around the one you are talking about is the email blocking if you are signing up for, you know, news letter or site you don't care that much about and you are buying goods from a retailer, you can sign up and give them a junk email address if you want the information, they will send it to your email address. it will be forwarded to you, but still a throw away i thought that -- >> i have been doing that for years. >> now you don't have to make up the junk email address >> i don't make it up. i have one >> i just like make one up for another service.

i thought that was fun it is not an added service i thought you would have to pay more for it. it is built on the icloud platform the paid one starts at 99 cents a month. you get these included it is called icloud plus now it is not a new service like fitness plus or tv plus. >> todd, andrew and i have been talking about privacy in the customer breaks for the last 40 minutes at this point. you know, debate we're having. i'm of the opinion if i opt in, i'm fine i didn't know what was happening with things in the past and what i was signing up to do it is getting back to the discussion of opt in or opt out. >> it does i like the idea that apple is doing. it makes you aware of what you

are opting into before you opt in it is like the app privacy report you have apps installed, but you may not know what they are doing. you can delete the app if you don't like what it is doing. it is a very different tactic from what google has done in the past google makes money off these things it says it doesn't make money off your private information the way you browse the web, which is what apple started doing this year. >> todd, thank you for helping us through the apple products. i'll have -- you can't get them yet. is it worth downloading or will it crash the phone >> i just installed them last night. i would not install the developer beta the public beta will come out in a month and then everybody gets the software in the fall

i would wait until the fall. unless you are really an enthusiast like me. >> todd, you look good >> thanks. doing a lot of running good job when we come back, executives sound off of jeff bezos' decision of hopping into the seat of blue origin. and coming up next, thomas farley talks about taxes and spacs and much more. help cover essential expenses in retirement, so you can live the life you want. this is what an annuity can do. learn more at protectedincome.org.

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welcome back, everybody. let's take another look at the futures. we are seeming to go around trip from the last 20 or 30 minutes the s&p futures are flat barely in positive territory nasdaq up 30 points. this is bouncing back. dow futures are down, but only by 60 points

bouncing back after a sharp move lower this morning we talked about that internet outage hitting web sites questions over what happened. an outage with the new york times and cnn and reddit and pinterest and more the cloud computing service had an issue with the service. the issue has had a fix and we will monitor and bring you updates on that. fastly shares down this morning. coming up when we return, what experts are saying about the biogen's new alzheimer's drug just approved by e thfda. we have a lot more on all of it when we come back after this edi. fermentation? yes. formulated to help you body really truly absorb the natural goodness. new chapter. wellness, well done.

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welcome back, everybody.

biogen shares up the first new therapy for alzheimer's in nearly two decades. we have more on this landmark surprise decision. meg, good morning. >> reporter: good morning, becky. this was a surprise and it was a landmark as you mentioned, the first new alzheimer's drug approved in the u.s. since 2003 and the first ever that targets what's thought to be a potential cause of the underlying driver of the disease. there are 6 million americans diagnosed with alzheimer's disease now and 2 million who are in the early stages of the disease which is where biogen tested the drug. we spoke with biogen's ceo yesterday and here's what he said. >> we are delighted about this approval and we are committed to study the product. this was the plan in any case so having to do another study is nothing extraordinary. we are committed to learn even

more it's a new beginning >> what he was eluding to there is another study the fda is requiring of the company because as you mentioned, this was a controversial decision because of mixed clinical trial data what the fda did was grant accelerated approval based on the fact that the drug clears these amyloid plagues from the brain. so as this drug gets out onto the market, the company will be required to run a trial confirming that clinical benefit. now we talked with michele yesterday. he said the company has up to 9 years to produce the results to the fda. the fda could pull the drugs off the market if they don't confirm the benefit, however, we don't often see that this happens. this is a pathway most often seen with cancer drugs, guys as they run this confirmatory

trial and launches this drug it has set a price of $56,000 per year per patient for this medicine which was four times higher than what many expected and what some say could be the largest drug of all time given the sheer number of people with alzheimer's disease. some say this could lead to push back as so many alzheimer's patients are covered by medicare eli lilly in particular has a similar alzheimer's drug following biogen's in the pipeline as well as other names. you can see the massive moves as many in the space thinks this means increased flexibility on alzheimer's and neurology in general. >> meg, thank you so much. so much to talk about. i want to have you back very soon we have another guest joining us to talk about the impact of this decision kevin wang is a cfra, senior equity research analyst who covers biotech and med tech. you raised your price target

yesterday but you raised it to $363 from 228. your new price target is still below where that stock traded yesterday. should we count you in the camp of the skeptics for the company getting reimbursed or making a go. >> i'm certainly still a bit of a skeptic. i think the launch will be slower than most people anti anticipate there are only 18,000 neurologists in the u.s. whereas there's over 5 million patients who might be treatable there are protocols in place such as mri scans before treatment and during treatment and also constant monitoring that are going to increase the burden of the physicians and keeping track of patients. this confirmatory study is also going to probably make some payers and physicians hesitant to prescribe the drug. i think there are challenges before it's widely reimbursed. >> you know, let me play devil's

advocate and take the other side of this. for the loved ones of patients of alzheimer's, this is incredible hope. the first time there's something new, new treatment, new therapy in 18 years. you can imagine that people are going to be lining up behind this hoping that their relatives can qualify for this, that they can start taking this. i do realize it's an incredibly expensive price, $56,000 versus the 10 to $25,000 watchers and analysts expected. alzheimer's is such a costly disease. you can live forever while your brain is not there so you can't take care of yourself. it's something like $600 billion a year that the united states spends on trying to care for alzheimer's patients i guess that comes down to it. when do you think we'll have a clearer idea about the efficacy, about whether this works

>> i think the confirmatory studies are going to take a few years to see if there is efficacy or not. even if it does prove to be efficacious, we think that it's not a clinically meaningful amount as we saw from the results from the earlier results that biogen ran. we are looking for a decline of 1 to 2 points on the cdr sv scale but they only had a decline of 0.5 which suggests that this might be giving patients false hope by approving this early and it's going to cost u.s. taxpayers a lot as well. >> the earlier you take it, the more likelihood of success that also seems pretty tricky. how do you convince somebody to pay for this before you are showing huge signs and strains of alzheimer's at the onset? >> yeah, it's definitely very tricky they need to be identified early that they have -- are a risk of

alzheimer's disease and they're going to need brain scans early because if they're caught too late, the drug doesn't help too much. >> i guess finally, kevin, if there was something that would change your mind, what would you have to see before you thought, okay, this has a better shot than i had anticipated. >> i think while they're running the confirmatory studies we see in the subgroup of patients that had a strong response to the drug, if we see that, that gets the responses higher than what we had seen previously, perhaps it could prove to be clinically meaningful and in that case i think, yeah, this might be beneficial and payers might be willing to reimburse it. we think improving it in its form is kind of a risk because now other competitors are going to be submitting similar drugs that sort of meet this low bar and imagine the competitive

landscape is going to change drastically over the decade. >> if the fda is opening up with patients who have very few options, i'm kind of all in favor of that. we'll see what that means for the broader industry thank you for your time this morning. >> thanks for having me. >> you, too. former nyse president tom farley will join us. the era of knucklehead sponsors is over for the spacs. and an update. most of the sites that suffered outages in the last hour appear to be back online. we'll continue to monitor. stick around "squawk box" will be right back. sgt. houston never expected this to happen. or that her grandpa's dog tags would be left behind. but that one call got her a tow and rental... ...paid her claim... ...and we even pulled a few strings. making it easy to make things right: that's what we're made for. usaa. what you're made of, we're made for.

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working towards a new high the push to reach herd immunity can it be reached? data showing a falloff on the number of people getting out. meme stocks, spacs and taxes. tom farley will join us with his perspective on what's moving the markets. the second hour of "squawk box" begins right now.

good morning welcome back to "squawk box. i'm andrew ross sorkin i'm here with becky quick. joe is off today there's a lot moving around this morning. after two points we had the news about some of these websites going down that appears to be an outage things come back and here's what's making head lines this hour they're going to proposal global tax deal the deal struck at the weekend g7 meeting calling for a minimum global tax senator john borossea usaid the

deal is anticompetitive and harmful he says to the u.s micro strategy continuing to bet big on bitcoin and selling $400 million in junk bonds. we talked about this late yesterday in the show. to buy more bitcoins this is micro strategy's third related bond sale in less than a year micro strategy paid more than $24,450,000 for bitcoin. it's sort of like a leveraged bitcoin bet at this point. people say can you invest in bitcoin in the stock market? this is kind of how you would do it as bitcoin and other cryptocurrencies grow so have scams. consumers lost $82 million to crypto scams during the six months ending in march that's more than 10 fold increase over the same period a year earlier >> we've got some breaking news from boeing. let's get right over to phil

lebeau what's happening this morning? >> becky, this is actually from southwest airlines it has to do with boeing southwest is converting 34 options for 737 max aircraft, those will now be firm orders. so those 34 actually an acceleration of options that the company had for 2022 as well as 2023 the company's order book, both firm and options, now stands at 616. they're all 737s this is southwest again as we have heard from them over the last months. they have said as revenue trends continue they will accelerate their fleet with fuel efficient. they're converting from options to firm. >> phil, thank you for that. apple ceo tim cook doubling down on privacy features during a kickoff of its developers

conference >> so, andrew, apple's big software let's start with i0s 15 their changes to face time are worth highlighting pages will improve audio and visual face time calls can be made on the browser. what does that mean for zoom in the long run messaging has bells and whistles before this event, mark zuckerberg thought of apple's arrival because of that messaging system apple offering additional social features there beyond the iphone, the ipad received a software upgrade to make that device more efficient and productive and useful like an improved multi-tasking system the ipad enjoyed tremendous

systems as people played, worked from home trying to keep that momentum going another clear theme as you mentioned, privacy they can prevent a marketer from knowing if an email is open. apple sees itself as a core value. >> josh, are there any features that you think are going to get attention from regulators or going to take attention away from apple in that regard? >> well, i mean, i think in terms of -- obviously there's been a lot of heat on the app store from regulators, questions from lawmakers and obviously from developers. i think it's one reason this software show felt a bit different than others, because you had this developer show and you new apple was having a fight with some high profile developers, epic and spotify and match. apple didn't directly address any of that in the show, but they did highlight some stats

that they thought maybe developers needed to hear. for example, highlighting the fact that nearly 600 million people now visit that store every week apple pointed out we've paid developers $230 billion since the store launched in 2008. >> josh lip ton, always good to see you. thank you. when we come back, a lot more on "squawk. surgeon and professor at johns hopkins, marty makery has been critical of the cdc's handling of the pandemic. he'll talk herd immunity, issues in response to the pandemic and so much more. before we head to break, the market is down 24 points, nasdaq up 47 potsin s&p 500 up 4 points. we're back after this. ingredie. fermentation? yes. formulated to help you body really truly absorb the natural goodness. new chapter. wellness, well done.

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reaction from the c suite. jeff bezos will be on the first passenger flight of the space company blue origin. here's salesforce ceo marc benioff yesterday on closing bell. >> i think it's very exciting that he's willing to basically say, if you want to use my product, i will use it first and i think that that's 100% the right move i think i might have to take a couple of ativans before i climb in there. >> benioff is bullish on space he noted he's an investor in astro which is going public in a

spac he invested in elon musk's spacex and planet labs that was an admission or at least a hint that he wants to go on one of these flights, too, andrew. >> with a little bit of ativan >> i don't even think the ativan would get me there he's braver than i am. the vaccination rate in the united states is slowing they have a 70% amount of americans by july 4th. joining us is marty mccarry of johns hopkins university he predicted the united states would reach herd immunity by april. his new book "the price we pay, what broke american health care and how we fix it. it looks back on covid-19. thanks for being with us you were with us very early on just warning about the concerns and dangers that were there. you wrote very early on about the need for universal masking

but you've kind of come full circle to say maybe things need to move more quickly >> well, good morning, becky it's good to see you i think there's a lot of good news out there people need to hear that good news right now people have an entirely distorted risk covid has a different case fatality because it's circulating and it's similar to seasonal flu in the past comparisons are not fair now we're seeing 1/50th the cases of flu on a daily basis compared to a mild flu season. right now we've got 1/50 the daily number of cases of this virus. people have a distorted perception of risk we need to move on at some point. >> you have written in the past, talked about how you think we'd

reach herd immunity by april >> very high levels of population immunity right now. i think the concept of herd immunity was one that got misinterpreted as eradication. i said very clearly in the projection we were going to see covid circulate for decades to come and we need to be prepared for the fall we're using the term population immunity so people don't misconstrue as a finish line and something that's binary. i think we're going to see it circulating. that's different from the threat that was posed say two months ago. >> would you not encourage younger populations to go out and get vaccinated do you think it's not a risk and something you would tell people to do? we are seeing vaccinations drop off rapidly. >> i think people need to recognize there are two reasons to get vaccinated. death from covid is so exceptionally rare it would be

considered a case report there's never been a documented case of a young healthy person dying of could he individual we've done that research at johns hopkins. all the kids have had a co-morbidity if they have any pre-existing condition, get the vaccine otherwise the case to get it is there, it's just not compelling. the reason to get it is to prevent the multi-system inflammatory syndrome which has affected 4,000 kids in the united states so far. >> the other reason to get it is to protect other people you come in contact with. what about if you come in contact with grandparents or someone with an immune compromise situation i mean, marty, that's pretty different than what they are telling people right now are you okay with the dropoff we've seen you think this is not a big deal you also said look out for the fall what do we do to brace ourselves for the fall that we haven't already done >> very good point, becky.

first of all, about 86% of seniors in the united states have had the vaccine and half of the unvaccinated have natural immunity from prior infections if children are around anyone who is not vaccinated, has not had the infection -- >> if children are around teachers and school administrators who have gotten vaccinated, is that not a big deal either? we know the vaccines aren't perfect, but they have been very good at preventing death and incredible sickness. >> the case is there but i would say it's not compelling for a healthy kid. most of the kids they're in contact with are already immune. i think they need to recognize everyone is going to make their own individual risk. we need to push things hard when we see a very strong survival benefit and in young, healthy kids, i think the case is there, it's just not overwhelming. >> do you have concerns about the vaccines themselves? >> well, we have seen a series

of my owe car deities. it w -- myocarditis there are no serious adverse events the safety profile appears to be the same vaccine safe in adults is safe in kids when dosed appropriately. >> what would your recommendation be for the fall right now most schools are still requiring masks for kids in the age group where there's not a vaccine available. that won't be available when school starts in the fall. do you think masks should be there or that's not a problem at all? >> on the one hand, we're trying to reduce community transmission on the other hand, we need to re-establish the human

protection in life if we need masks now, we need them in perpetuity seasonal flu poses the same risk it's based on the background level in the community we've long said when we're below 5 or 10 cases per 100,000 that we'll live a normal life we're there. we're there, becky the silver lining of this pandemic is it will never be acceptable to show up to school, work, coughing, sneezing, slobbering next to somebody. hopefully our hygiene is better. >> let's talk a little bit about that though. just in terms of community spread, if you think it gets worse in the fall, what would be the threshold where you say this is where we have to go back to some places where we really take care >> i think if there's more than, say, two or three children in a particular classroom or pod that have been tested positive, that's when you take a reactionary approach you say, look, we've got to close this down. delay school for a week or two

we've done that for influenza. that's not something that's foreign. that threshold, i would put it 5 to 10 cases per 100,000 is the background rate in the community. >> your new chapter of the book takes a look back at what happened with a little bit of time and space from this what's the biggest lesson we should take away with what we know now >> health care is the biggest business in the united states. it officially became the largest industry in january of 2018. a $3 trillion industry and yet that entire industry was unable to pivot quickly, not just in terms of expandability and capacity management but also in doing the most basic clinical research asking the questions doctors and every american was asking. how does it spread do masks work? when are you most contagious how many people are asymptomatic these questions could have been answered with rapid trials and basic research the nih was unable to pivot one

penny in the early months. as a result you had a vacuum of information and therefore political opinions filled that we got behind the 8 ball mrna technology for vaccines have been around since the 1990s. it took this to accelerate things i think we need to talk about how can we use these same processes to develop an mrna vaccine for this, some types of cancer, hiv and antimicrobial existence. >> dr. mckary, thank you for being with us. good to see you. >> thanks so much, becky. meantime, stocks to watch before we head to a break. stitchfix lost 18 cents per share. online clothing styling companies saw revenue come in above estimates. stitch fix also issuing up beat forecast in the 20% growth in the active client base compared to a year ago.

vail resorts beating estimates. they saw revenue top forecasts, vail said past sales were up 50% and they slashed prices by 20% have you gotten an epic pass >> no. >> not yet >> no. >> we're on it we are also on meme watch this morning. amc entertainment insiders have been selling shares in the media theater operator shares. according to a study of filings insider score. 7 amc insiders sold parts since may 28th there were no amc insider sales in 2020. quk x"etnsig"sawbo rur rht after this (it's a skirt... and shorts) the world is going hybrid. so, why not your cloud? a hybrid cloud with ibm helps bring all your clouds together.

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that stock got hit on the news earlier this morning most of the sites that were impacted are now back up and running at this point, but fastly shares down by 1.7%. >> welcome back. i couldn't need to welcome everybody back. >> never hurts. >> and they never went anywhere hopefully. tesla said jerome gillian, head of the heavy trucking had left the company after three months of being often the job i'm sure teslarians will be speculating. still to come, far peak's tom farley will be here. he'll talk about spacs and taxes. the ceo of the avatar maker genies will talk about the rise of online assets and the business of representation looks a little bit like what we

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welcome back to "squawk box. watching the futures nasdaq futures up by 53. the s&p futures up by 5. this is where we started an hour and a half ago dow futures down but only down by 21 points should point out that the s&p 500 if it were to close where it's indicated right now would

only be up a point from the all-time high. dow right now would be off by a little over 100 points maybe 120 points from an all-time high. latest survey of millionaires ask where they stand when it comes to infrastructure spending and potential hack sites robert frank joins us with the results. rob sfwhert. >> good morning, andrew. a majority of investors believe they pay their fair share of taxes. they say companies don't pay enough the cnbc millionaire survey is a poll of investors of $1 million or more in assets. 2/3 of millionaires expect higher taxes and deficits ind biden. when it comes to his infrastructure plan, a majority support that $2.5 trillion plan. most supported his plan to pay for it with a corporate tax hike to 48% 41% oppose it. a majority support the tax hike.

the reason is they say majority of companies don't pay their fair share when it comes to their own taxes, 3/4 of millionaires say they do already pay their fair share, including 3/4 of democratic millionaires. additional one in five say they pay more than their fair share in total, 94% of millionaires say they pay their fair share or more they are split down the middle when it comes to capital gains tax. half support it and half are against it some plan to sell stocks for property in advance of the tax hike with 19% planning to sell stocks that will all depend, guys, on, a, whether we get any tax hike and whether that capital gains tax is in fact retroactive back to you. >> robert, doesn't everybody think they pay their fair share no matter who you are, where you are? >> it seems like it.

the broader population thinks the wealthy don't pay enough the wealthy thinks companies don't pay enough companies would say, look, they're only 25 companies that paid zero federal income taxes most pay an effective rate of about 25%. so you're absolutely right everyone thinks they pay enough but it's the other guy when you actually look at the other guy, whether it's the wealthier companies, they do pay higher effective rates than most people think >> yeah, they do >> okay. robert, thank you. we're going to continue a little bit of this conversation with tom farley, he's here. he's the former president of the new york stock exchange. tom, if you were being surveyed, what would you say >> what a setup. what a setup, andrew, for you and i to yell at each other right off the back on taxes.

>> they certainly feel like they pay enough in my community i'm far more focused on corporate income taxes the biden original proposal was ridiculous i think both parties have acknowledged that. he could lose a lot of his legislative agenda as a result of putting forward some kind of, i don't know, i want to not use a pejorative term but some nutty proposals like he did with respect to corporate income taxes. >> i'm not sure what she did

>> it doesn't include. ireland's below 15% not to mention cayman islands, many other places expanding this to the g 20 or beyond, i think it's dead in the water. i tend to think it was much to do about nothing i don't think it set a great example.

>> proving it. it's quite effective >> then would you do anything. >> i'd be able to do it. >> you know, there's two things that matter, right revenue and efficiency as long as there's a conversation about efficiency, i'm open to revenue. the infrastructure plan that biden put together wasn't efficient and now you have the republicans coming forward saying let's create the biggest infrastructure ever. if that conversation were to result in something, some reasonable compromise, bipartisan compromise around infrastructure, in order to fund that in part, we're going to bump up the individual income taxes especially those who can

pay, i think that's a reasonable conversation. >> tom, two issues here though i think, which is one is what does it take to actually just even pay for a balanced budget, right? to the degree you have a balanced budget. the other which nobody is addressing is to the extent you want to raise revenue to pay down some of the debt we already have incurred. >> you can have a balanced budget, that's been proven this on both sides of the aisle. so i don't want to be a straw man for republican or conservative policy. we didn't exactly see terrible efficiency under a republican president for the last four years. you can have a balanced budget and you need to attack health care when i say attack, more transparent prices i'm even open to things like means testing on, for example, social security. the very most wealthy people having means testing on government programs, perfectly willing. then you look at tax loopholes

there are obvious tax loopholes in real estate tax loopholes on carried interest there's an adult conversation to be had it starts with efficiency. i thought to myself, biden has really shot himself in the foot. the honeymoon is over. it's possible he loses entirely on infrastructure, he loses entirely on voting rights, he's certainly going to lose on his corporate tax proposal this is going to be a make or break moment is he going to go with the left most woke wing of the party which so far he's done or is he going to get real and look for bipartisan compromise and create an efficient economy this is the week for him to decide. >> we often use this word fairness and we often ask the question what does fairness mean and does fairness matter i ask you that question, which is does quote, unquote fairness matter fairness might be in the eye of the beholder to the extent there are people in the country that don't believe the system unto itself

is fair, they're watching us right now and they're saying, you guys don't get it. this whole thing is not fair it's not working for us and clearly the 1% are doing not only way better but they're also paying on a percentage basis way less that's the way a lot of country looks at this. >> look, there's only one system ever been proven to be fair, that's called free enterprise, andrew we all agree on fairness but the vision of the left of how you get to fairness has failed what you really need to do is create a free enterprise system that provides incredible opportunity and it starts with great education. it starts with great education and incentives our government is providing incentives that don't lead to a more productive, efficient, fair economy. >> there are incentives as you know, you mentioned it, for the private equity, for real estate. you can talk about incentives. there are lots of incentives out there. >> yeah, sure.

that's why i offered it up i'm not sure what you are responding to, but if the idea is, hey, let's just keep taxing the wealthy, you and i know that has the exact opposite impact. if you keep going -- there's only two tax tlats don't work, 100%, one is zero. if the idea is fairness, you keep taxing companies, job creators, that is for sure worse for america at some point and for corporations we're close to that point for individuals, i don't think we're as close to that point. >> you mentioned you think this is a make or break week for biden in terms of the infrastructure package if you're a betting man, do you think an infrastructure package of any sort passes >> if i had to put probabilities, i suspect he folds and goes with something that looks like the republican vision, bridges, tunnels, roads, 300 billion. maybe the republicans agree to bounce it up 400 million of new spending but maybe that's just me being hopeful. i shake my head with what he's

doing. he had such an opportunity to unite, put in place some central policy the stuff he's proposing, it is nuts i'm trying to be friendly. it's first thing in the morning. it is nuts even this morning he put out something about i'm going to solve the supply chain disruption wow, that's going to be great. the second sentence says, you are just looking to create union jobs forget about my grandfather's company that is brick, we want to create jobs for them. it's only union jobs the polarizing, very kind of woke policy making is seeping into the biden administration and ultimately it's going to bite him in the behind. >> tom, can we talk spacs. corporate health is up it's come back 33% you've had a number of spacs that have started to get back marginally in the green after taking a hit for a while what's happening

>> spacs are here to stay. hear me out, it's nuanced. we had spac mania. everybody came out to be a part of it. a lot of people do not deserve to be running spacs and the washout has occurred it is occurringand spacs will be here for the foreseeable future because they are a very viable way of getting public but they're going to be in a much smaller way, andrew and becky. as somebody who's created and run multiple spacs, i think that's a good thing. the sec is paying closer attention. i think that's a good thing because you had knuckle heads that were putting out numbers that weren't based in reality and i think like i said that has washed throughout the system this story about cloifr, also the fin tech company backed by mark cuban, robert kraft, even bill ackman's deal -- >> what's your reaction to the bill ackman deal it's a complicated one for

universal music. it was going to go public anyway lots of questions about the structure. it almost looks like it's a two or three-part spac where he will get universal music. then he'll take $1.5 billion and do effectively another spac. he's going to have a third bite at the apple with things called a spar or spark that's like an opt-in version of the spac in general i prefer less complicated deals. let me tell you what i like about the deal it bugged me when i was running the new york stock exchange, even before, that investing in great pre-ipo companies was the exclusive province of rich people you know, or hedge funds or vehicles where others that retail did not have access so i find it pretty interesting that he's putting $4 billion into a great, effectively a private company, pre-ipo company and giving his spac investors

the opportunity to do that or not and then he's giving them the opportunity to stay around or not he's clear about what the deal is, providing opt in for those reasons i think it's interesting. >> two things that are fascinating about that deal, if you buy it through percy, you get a tax discount if you own vivendi you end up paying 30% in taxes. he's not getting warrants in this case. what do you make of that >> i'm not sure. i didn't look into the particulars of it. i wouldn't -- having looked at hundreds of spac deals, i wouldn't get too wrapped up in the particulars of any one deal. one of the nice things about spacs, they are flexible, they have warrants, they have shares, you can detach the warrants, detach the shares. you have to provide transparency to the shareholders. i give gary gensler credit to provide transparency

i think it's a healthy development. that's why spacs will be here to stay. >> tom, thank you. going to be with us to talk about other knuckle heads. >> we didn't yell at each other? >> no yelling. i know that you know -- >> sometimes you guys yell >> we still have some time. >> this time you did not >> yelling involved. just maybe -- >> louder voices than this >> louder voices maybe more intense voices sometimes. >> maybe maybe. the morning's young. we still have a ways to go when we come back, genie's creates virtual identities in the digital world. the company's ceo will join us in just a few minutes. as we head to a break, let's take a look at this morning's winners and losers in the s&p 500. tesla leading the way up by 3.2% "squawk box" will be right back. retirement income is complicated. as your broker, i've solved it. that's great, carl. but we need something better.

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you sean mendes, cardi b., and more, these are avitars created by genie

they are partnering with gucci and the ceo akash nikum joins us to talk about what he's working on it's great to see you. thanks for being here. >> good morning. how are you doing in. >> great first off, explain this. there are a lot of people that don't know what aggenies are what are they and how does it work >> genies are avitars that allow you get up to your authentic self they have been leveraging genies to showcase a different side of their personality, they are memorializing them for music droppings, anything big that's going on in their life they're using their avitar to do things that they're unwilling or uncomfortable to do. they use it in ticktock, snap

chat, more to build out the second virtual identity that their fans and following become infatuated with over time. >> we've been talking about avitars for 20 years, 25 years this is a little different now there's a growing market that's being built up around this, brands that are willing to get involved, celebrities that are there. oh, yeah, there's some money involved in this, too. we hear about the rise of nfts you've got a very similar thing where these are things that you can buy actual skins or clothing to go along with the avitars what's happened now? >> 20 years ago -- look, this isn't new. second life has been around. there are a lot of avitars 20 years ago avitars were considered for an underground audience at that time gaming was considered underground everything has been flipped on its head gaming is cool

avitars are a prerequisite gen z has grown up on the internet they're getting back to the founding philosophies of the internet which is a place to be who you are. places like instagram, twitter gets away with that where you're flexing two notches above who you are in the real world and you can't therapeutically be exactly who you want to be i think people are looking for this next medium in communication. the avitar wearables fortnite generated $1.8 billion just in selling avitar skins we're trying to extrapolate that bring digital goods, skins, avitars that have been prevalent in the world, bring it to culture, social circles and communities. >> you've got some big names mary meeker, jim bryar what are you getting from them for advice >> we're very transparent with

our investors. bring them on board. we want them to invest in us as creatives to go through our own creative process in developing this company we've taken our time in developing the perfect art style that we think resonates with the gen z community and we took around a year and a half, two years to build out the top tier art team we're doing the same thing with the art team we passionately believe the next facebook event is going to be a network of advisers. we think a network will connect ourselves. they're excited to be part of the ride jim bryar has been part of it. mary meeker is no newbie to this she was pitching us to the ideas of after have i tars are she understands where gen z and millenians are going. >> one of the reasons i wanted to talk to you was because of

this interesting interview you did with "forbes." you opened up and talked about mental health issues and your struggles with that while you were building a startup. probably not something that gets attention. drive to do faster, better, move harder and stay up all hours working all the time what kind of reaction have you gotten from that >> very warm and welcoming i think it was very embracing which is the right word which made me feel more comfortable. a big reason i came out with that story is everything i've been building throughout my entire life has been around social interactions, optimizing a chat feature, optimizing video messaging. i felt more comfortable behind the keyboard and why avitars struck a chord with me there's a metaverse of

encapsulating a new body and not having the limitations of the real world coming out with my anxiety and depression has allowed myself to be more vulnerable and authentic connections. what i realize is a lot of people are struggling with this. just to make it an open conversational louse other people to feel comfortable to talk about it as well. i think that should result in less posturing, less flexing and more so just true, honest awareness and just being able to have real connections with people that you actually have like-minded interests with. >> yeah. i want to thank you for opening up about that. i think it's a really important lesson and one that others will learn from too i want to thank you for your time today. >> thank you so much for having me >> he's the ceo of genies. coming up when we return, we'll have an exclusive interview on ark's thoughts on the markets. kevin o'leary talks about raising the corporate tax rate,

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good morning, so-called meme stocks are taking a hit. we'll ask marc lasry semiconductors are one of the problems we'll speak with one of president biden's top economic advisers about how the administration is planning to right the ship. here's something you don't usually see. the u.s. recovers millions from the digital ransom paid to hackers of the colonial pipeline could this be the start of a promising new trend? final hour of "squawk box" begins right now. good morning, everybody. welcome back to "squawk box"

here on cnbc we are live from the nasdaq market site in times square. i'm becky quick along with andrew ross sorkin joe's out today but joining us is far peak founder tom farley tom, good to have you here. >> good morning, becky. >> ready to go for another hour? >> let's go. let's come up with something controversial for andrew. >> he's thinking about it right now, hope you are, too >> i'm coming up with something. >> got something cooking let's take a look at the u.s. equity futures dow futures are still down but only by about 14 points. come back quite a bit from where we were around 6:30 this morning when things were down by over 100 points s&p futures up by 7.5. the treasury yield's, same old story here same range bound trade that we've been watching. the 10-year is a little bit

weaker. >> meantime, the widespread internet outage we saw appearing to be mostly resolved at this point. multiple websites built by fastly were out. they identified the problem and said a fix is implemented. the stock getting hit on that news this morning. it's come off of the lows. the markets have moved a little bit higher after moving down originally there was speculation maybe there was a hack attack or something. meantime, u.s. law enforcement have said they've been able to recover $2.3 million to bitcoin involved in last month's colonial pipeline. more than half of the money paid to hackers from dark side. here's lisa monaco. >> to leaders of corporations, communities alike, the threat of severe ransomware attacks

present a clear and present danger to your organization, to your company, to your customers, to your shareholders and to your long-term success. >> fbi officials said that agents identified a virtual currency wall late and obtained a court order to seize the funds. bitcoin is down as a result of that in a way. lots of questions about how they ended up doing it. they took over a server as opposed to hacking into a wallet which is what some people had worried about. nonetheless, lots of questions about what this all means. the head of tesla's heavy trucking unit has left the company after three months on the job. he had been with the company for more than a decade no reason given for his departure. let's get to the markets right now with an investing expert our guest this hour is here to talk about the recent volatility in meme stocks crypto's latest up and down moves and the economic recovery

from the pandemic. what it's doing to stock markets everywhere joining us is marc lasry he's the co-founder, ceo and chairman he's the co-owner of the milwaukee bucks. great to see you how have you been? >> pretty good back at the nasdaq and raring to go it seems like economies everywhere are starting to open up that kind of is what i've been thinking about with you. you're somebody who's very opportunistic, often looking for distressed arenas, looking for opportunities where people don't see it the markets around the globe have been incredibly strong as things reopen. so i just wonder, is it a lot harder to find opportunities these days where do you go? >> it is harder. you know, it's been great for everyone because the economy -- it's exactly what you said, everything has gone really well. so for us, what we're doing is a lot of special situations and a

lot of specialty lending so the part of our business that's really grown a lot is shockingly people still need money. and if they can't access it, you were talking about where treasuries are if you can't borrow at 1 or 2%, then you've got to come to someone like us. we're lending you money somewhere around, you know, i would say 8 to 15%, depends on the situation. >> wow. >> yeah, so it's -- for us this has been one of the best times ever just because of the tremendous amount of need for capital and the fact that people need that capital. we've been able to lend at pretty good rates. >> that's kind of shocking because we talk about how much money is sloshing around out there. what industries? what types of companies can't get access to the money at their incredibly low rates who has to pay 10, 15% >> you know what it is, there's always a special situation there's always a problem because you're absolutely right, there's

so much capital. so the reason a company can't access the capital markets is either it just came out of bankruptcy or the banks are not going to lend because the ebitda number is low but they've got a lot of assets. so you're able to end up lending money to all these different companies and it's throughout the world. for us it's been in asia, it's been in europe, it's been here in the u.s so, you know, i mean, examples obviously would be in aviation in the aviation field. it's been in the oil sector, in the energy sector. it's been out in the u.k it's actually just being on the home building where developers can't get access to capital to buy sites. you can always borrow money to buy home but you can't borrow money to buy the sites and build the homes. for us it's actually been great. >> marc, when you say it like

that, i think your competition these days must be retail investors who are driving up the meme stocks because they look at situations where you'd never be able to get money in the past whether that's hertz, amc, somebody else, so they're jumping in what do you think of retail investing and what's happening with the meme stocks >> for us when i look at that, it's just too volatile for us. we don't really get involved in that i would tell you, i'm amazed you take a look at sort of what's happening to a number of those companies and the value of those companies. amc is a great example it's just moved up and you look at what those companies are making relative to the value and it makes no sense but i'm not going to fight it. we're not going to get involved in it. it's just illogical what's happening there. >> what's different from the retail investors and amc and what you'd be doing with an airline, hotel company or somebody else if you get access to capital >> i would tell you the

difference is really simple. we're senior we're secure we're lending at the top of the capital structure and we think we've got all the asset. the retail investors are putting money into the equity and they're -- if there is a problem, there's no way they're going to do well if there's a liquidation or if all of a sudden there's a change in sentiment. for us if there's a change in sentiment, it's fine we think we're over collateralized that would be the difference. >> what did you think what mudrick did with amc last week >> i think he was hedging it i don't know the full situation, but i think what jason's been doing has actually been brilliant. he's been doing a great job of lending money to these companies and also ending up getting some

equity he's been playing that exceptionally well >> start looking around the globe, united states is probably a much tougher place to find opportunities. >> it is. >> i've always thought of you as looking to europe and doing a lot of research there. i think lately you've turned more towards china what are you seeing? >> that's exactly it we're seeing a huge amount of opportunities in asia, in china, in europe. it's really the same thing it's the lending the reason for that is really our competition is really private equity firms or direct lending firms so -- and there just isn't as much capital out there as there is here in the u.s. here in the u.s. it's gotten very, very hard. i will tell you in china and asia it's a lot easier to make those investments.

>> bitcoin went to 40,000, now it's back below 40,000 what are your latest thoughts? >> when i get that, once a market is created, it's there. that to me was the reason why i thought it was interesting on bitcoin. and i thought that as soon as you had institutional investors coming in, the price would move up i think today -- i don't -- i honestly don't know where it's going to go, but you've got that market it's there i can make an argument it could go to 100, 100,000 i could make an argument it could go to 20,000 i think the probability as more and more people keep using bitcoin, it's going to keep moving up. but, yeah, it's happened a little bit quicker than i thought it would i should have bought a lot more. my mistake. >> in terms of that delta, the

100,000 and 20,000, can it go more than that the reason i ask is when it was 5,000, going from 5,000 to potentially 100,000, that was actually a great thing if you believe that it's harder today to make that -- you know, people didn't have to make some decisions about whether they want to do this in bitcoin, maybe they want to try another currency or buy something else in the market that could do better. >> yeah, it's a great question because right now you're sort of looking at it and saying, okay, it could go up 2 or 3 times or it could go down 50% you've got that with a lot of stocks sort of changed.

i don't see that happening there is a little bit of currency >> kevin ward, squawk guest, has an op ed in the wall street journal talks about what he calls the risky, fill the punch bowl strategy. growth is surging. the housing market is high it's time for the fed to pull

back i just wonder where you come down on this in terms of what the fed is doing do you think their actions are inflating. the market's beyond inflation? >> it's clear their actions are inflating the market is it beyond what people think it should be that i don't know. look, at the end of the day you look at it and you tell me when in the history of what we know where the government is going to put out somewhere between 3 to $5 trillion into an economy where the market is an all-time high, the savings is an all-time high i think if you're an investor, it's great i try not to figure out. the fed will tell you so we're

not buying treasuries, so we're not worried about the movement as you see rates move up, that's when you'll start seeing the market coming in a little bit. i think you want to be an investor you've got so much money coming into the system. >> do you think there's a risk of a taper tantrum if the fed starts to signal that, okay, it's not going to be holding on to things? the quantitative easing is going to be out the window is it until the fed starts to raise rates? how does the market read this? is it going to be different than a few years ago? >> i think it's when rates start moving up. right now capital is just so easy to get. so for companies that don't have issues, and that's the majority of companies so for people buying homes for everything, it's fabulous. as we're moving up, that means you'll have more money in the

system the other issue is to be blunt, one nobody really talks about. higher rates is higher interest rates on all the debt that we have outstanding you'll have more and more money going to pay off that debt and pay off that interest. so you'll have less money to do social services. i think the fed is in a little bit of a box, at least for the next year or two i don't know what happens a couple years from now. >> marc, onto the business of sports the milwaukee bucks playing the brooklyn nets who don't miss what is the coach telling the team after last night seeing the nets make 55% of their three-point shots? >> play a little more defense.

try to make sure they don't make those shots. i think it's -- you know, basketball is a bit of a simple sport. make your shots and make sure the other guy doesn't. yesterday that didn't happen after the game i went out to dinner with the owners of the bucks and we're eating and they're like, hey, we're really sorry. don't worry about it, as soon as we get to milwaukee, things are going to be totally different. i hope they are. at the end of the day, if we make our shots, it will be fine. yesterday we didn't make our shots and that's exactly what you said the nets couldn't miss kyrie and kevin durant did a phenomenal job our job is to stop them. until that happens, things aren't going to change. >> you're living the dream you didn't grow up with much, worked your tail off, own a sports team. i think a lot of us fantasize in

being in your position is it a little awkward do you have taking the fan hat off, business hat on, making tough business decisions are you more ceo or more super fan? >> i think you're a super fan. you don't really have a choice you really don't if you want to make money and cut costs, you're not going to have a great team. at the end of the day what happens is you buy a team and you start focusing on how you're going to make money and very quickly you realize that you want to win. you want to end up trying to win an nba championship and to do that is going to cost money. as you look at what's happening with the nets and with us, you're going to be in the luxury tax. the reason for that is because everybody is trying to win so you become a super fan because really your desire to win overcomes your desire to end up making money on these things.

by the way, you'll make money if you win the championship because then you've got all of these playoff games so everybody in their model goes, well, if we have 12 playoff games, everything will be great that means you have to get to the nba finals hopefully we get there. >> hey, marc, wanted to get you to weigh in, if you could, on the summer olympics and what you think should happen in tokyo lebron james has now said he's not going to be playing. steph curry says he might still. what do you think should happen? >> look, i think ultimately it is a personal decision it's just how much risk do people want to take. i think if you're vaccinated, it should be fine and i think at that point people have to decide what they want to do my view is, look, i've been vaccinated and i think once you're vaccinated, you feel a lot more comfortable i'm willing to take a lot more risks because of that.

others may not. >> do you want your players playing though >> look, for me i would love them to rest but i think it's -- you know, it's their decision. i think part of the reason lebron and a couple others don't want to play is they've been playing for quite some time and their bodies need some rest. but, look, i'm available if anybody needs me to get to the olympics and to play, i think it would be great to have somebody who's 60 years old playing in a basketball game. >> let us know if the offers come forward, marc. >> they're not coming. great to see you thank for your time. >> my pleasure take care. bye-bye. coming up when we return, top analyst take on apple's newly revised productivity features the biden administration has talked about supply chain procedures jared bernstein will join us

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they're going down to 10 micrograms that's 13 used for kids the age of 12. then in a few weeks they'll start the phase 2-3 portion from 2 to 4 and 6 months to 2 and for that they're using 3 micrograms. so 1/10 of the dose they're using for kids over 12 and for adults two doses. rolling 4500 participants in the u.s., finland, poland and spain assessing the efficacy in kids under 12 the company is saying people this age do get covid, spread

covid. they're hopeful they can protect them as well it will be slightly more complicated because they're testing doses. we'll wait to see how they shake out. >> more complicated because you have to see the efficacy two things you're testing, efficacy and safety. you want to give a lower dose for the safety you want to be sure it actually is enough to get the immune system kicked in and working for the kids, right? >> absolutely. i'll be eager to see the im immunogenicity clearly they chose them based on seeing signs that the doses are just what you need, 1/3 for kids under 5 to 11 and 1/10 for even younger kids that's enough they think to provide protection >> the time line for this, what we've heard to this point, pfizer and moderna, we're expecting results that could be submitted to the fda end of september. does that still look like the

time frame >> yeah. for kids in the older age group of this under 11 group, by september. then even younger kids, i believe, in november is the time frame. so we'll have to see what the data look like and how long the fda takes to evaluate it since they are looking at different doses, it's slightly more complicated for the 12 to 15-year-olds >> thanks so much. appreciate the update. >> when we come back the kevin o'leary will join us he'll tell us why he's ringing the nasdaq closing bell today. up next, it's been a tough year so far for apple investors. yesterday the big software reveal moved the needle in the right direction. that conversation is next when "squawk box" returns guests and all their devices. or it could be the day there's a cyberthreat.

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welcome back to "squawk. news just out, the master card foundation with a 1.3 b$1.3 biln vaccine initiative

this will provide vaccines for 50 million people in africa. according to the master card foundation, less than 2% of africans have received one or more doses of a coronavirus vaccine. meantime, apple unveiling new software updates at its worldwide developer conference things like improved email and functionality. what about investors joining us is tony stekanagi what do you think? >> look, everything sounded good i don't think it ultimately changes investor opinions. the developer's conference is really for developers. the keynote highlights what apple has developed over the last year. i'm not sure we're getting

features from apple aunched. >> it's something they historically tried to avoid doing. they opened up the face time app so people on androids can do it. maybe that could have been in and of it self-.

what we've observed is ecosystems are generally sticky. there's a big churn among android vendors. there isn't a ton of churn between mac and windows and not a ton of churn between android and i0s. how do you think about the stock? it has underperformed this year. obviously it was in a bit of a rocket last year during the pandemic a lot of folks holding it right now trying to figure out what to do >> sure. so you're absolutely right the stock was up 70% last year at the beginning of this year it was trading at about 32 times future earnings. that's really the highest that apple's traded in the last seven years since it stopped growing at 30, 40% per year.

the stock was richly valued relative to its history and it's had tremendous numbers this year numbers have gone up and the stock, as you mentioned, has underperformed i think there's two things that investors are struggling with. one is what is the right valuation for apple. so it's trading at 23 times earnings that's a modest premium to the market right now it's still a little bit high versus its history apple on average has traded about a market multiple. one can argue it's a better company. it has a higher services revenue mix and services is a better set of businesses. i think the other thing that investors are struggling with is what might next year bring as strong a year as apple is having this year, the worry is that much of the growth for mac and ipads has been pan dem mix yield and the iphone cycle is a pretty strong cycle particularly with regard to average selling prices

so, you know, i talked to investors who worry apple's revenues could be down 5% or more next year that's a more extreme view there is real question marks about how apple might fare compared to a strong year this year it's a combination of two things that the market is trying to work out now we feel better about the valuation, gone from 32 times to 23 times we're still a little nervous that estimates, particularly for revenue growth for this year, might be a little high. >> toeb tony, if apple reduces m 30 to 20 or even 10, is that a big deal small deal no deal? >> it's a very big deal if that were to occur because ultimately we think almost 20% of operating profits of apple is coming from the app store today. if you cut that in half, that's a substantial impact i think the real question --

>> pardon me go ahead, tony >> i think the real question is is that a likely result of regulatory action? and my belief is no in that i don't believe that the app store's a regulated industry i think what would be a more adverse reaction regulatorily would be to force apple to open itself up to accept other app stores and i think if that were the case, the impact would be much more for giving. >> do you have a sense that one or the other of those is already priced into the stock giving the judge's harsh comments and given a sense that something needs to budge? >> my sense is no because ultimately the outcomes from most regulatory action takes years. so even if there is an adverse ruling against apple, it will be appealed and ultimately might go

to the supreme court even then if we use, for instance, the press dcedent of google in europe where it had to open up and allow people to have a choice of what search engine they're going to use on android in europe, even after the final ruling it still took another 2 years to implement it. i think most investors say, yes, there could be an adverse ruling here but it will be contested and then ultimately it could be several years, three to five is sort of the number that most people think before you actually had any kind of impact on apple. and, again, that outcome is a question. >> they're playing the music i have to ask you quick about tesla. long-time head of manufacturing stepping down leaving. meantime, shares are up i should say this morning after china's vehicle sales. looks like they rose about 30% after some of those reports that suggested they had been halved

what do you make of it >> yeah, the manufacturing departure, tesla has a lot of turnover i don't look into that uniquely as something that's worrisome. and i think, look, the stock follows -- is a growth stock and so when people get anxious about growth as they did about initial china main numbers, stock fares poorly. >> great to see you. appreciate your perspective. >> have you back on the other side of this the white house weighing in. what's wrong and how do we fix it new recommendations out. we'll bring you in the details stay tuned watching "squawk" on cnbc. ople o build it a solid foundation. wealth is shutting down the office for mike's retirement party. worth is giving the employee who spent half his life with you, the party of a lifetime. wealth is watching your business grow.

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the white house announced a new task force with the u.s. supply chains. this comes in the way of a pandemic joining us to talk more about it is jared bernstein he's a member of president biden's economic advisers. this is a problem we all know and it comes to roost in a big way. what does this proposal plan to do >> first of all, thanks so much. talk about it, the old beer ad, tastes great, less filling we touched on this it's more resilient, less

fragile. bring back advanced manufacturing. making a strong play for a global share in large battery capacity diversifying access to critical inputs and as you suggested, task force making a near term and longer term and the near term we have a task force. they're getting together to try to alleviate some of the bottlenecks in home building and construction, semiconductors, transportation and foods over the longer term, semiconductors and manufacturing, the president and the congress, the senate in particular, again, standing up a large capacity battery electrical vehicle sector. critical minerals and pharmaceuticals which very much connects to your initial comment about the way the supply chain store does poorly in the early pandemic. >> jared, manufacturing here in the united states is a big issue, especially when it comes

to things like semiconductors. go ahead and build a plant what about looking at tariffs. when you look at things like lumber, aluminum, steel, those are issues that have really plagued american companies more than their european counterparts when you talk to a lot of people, a lot of economists will say it's part of the trump administration and they have been upheld and increased by the biden administration >> i was one of those economists and was probably talking about it on this very station. i think you're bringing up a fair point i think when it comes to tariffs, there are lots of stakeholders, folks on different sides of the issue from a white house, that's an issue that's going to take some negotiation. but when it comes to seriously attacking the supply chain problem, if you look at what we put out today, we talk about this both in the near term and

we put everything on the table long-term interventions. using the defense production act. going to do a deep dive into the areas to figure out the constraints. there are many misaligned and short term think about some of the industrial areas that the competitors use. this is where the main semiconductor fabs are and why when that nonresilient supply chain took a hit, it got us into the situation we are now this deserves, as you suggested, a deep dive that's both long term and near term. >> let's talk more about the tariffs because you, yourself, have said you were opposed to them the biden administration has increased some of the tariffs that were put in, specifically when it comes to steel why? >> well, i think when you're in the white house, it's a much

more complicated set of issues than when you're an economist coming on to talk about pure economics. this is not just economics, this is political economics and international economics. there are groups within both our administration and u.s. trade representative, of course part of our cabinet that have all kinds of stakeholders that they have to deal with in this case on the pure economics side, sure, we need to make sure that everything that could help alleviate some of the supply chain bottlenecks, particularly in the near term, is there let's not make this simpler than we think we can. we can't change it overnight. >> the supply chain disruptions are real i read the press release optimistic right there in the first sentence you say you're looking to create union jobs not just jobs but -- i'm really

keir curious. as a policy matter, is that all the administration is looking to do is create union jobs or are we just looking to create jobs most americans are not differentiating between union jobs and jobs. as a policy maker, how are you thinking about that? >> let me challenge some of that >> please. >> when it comes to jobs, we want high quality jobs in middle class people fls a significant union premium. the thing i would push back on is if you actually ask americans if they want more say at work, which means more collective bargaining, majorities tend to say yes. now when it comes to the announcement we're making today, we're talking about trying to deal with what i think we all agree is a lack of resiliency in supply chain some means domestic onshoring.

some means globalizing the portfolio. if you read the report, it is quite clear that nobody is talking about producing everything domestically. if you listen to president biden, i don't mean over the last few weeks or months, i mean over his career. when he talks about jobs, he talks about job quality. that takes him to unionization i know from decades as a labor economist, he's right about that. >> trade deficit out rick santelli writing about the numbers. last month's trade deficit was $75 million. what does this tell us at this point? how would you respond to that? >> that's a good question. it tells us something that we already knew, which is that we're growing not just faster than many of our trading partners but considerably faster so we've had numerous -- this is something i track. we achieve full employment with

large trade deficits that doesn't mean you can ignore that, particularly the communities that are so hard hit by that. again, that takes you right back to this supply chain announcement today we are serious about bringing a manufacturing foot print back to this country not just old manufacturing, not just medium term, long-term advanced manufacturing in clean energy, advanced batteries making sure that we are a player in that field. global share global market share in an area like battery production which hasn't yet been claimed by any other country. that is a goal of this administration you don't get there by accident. you get there by planning like we have announced today. >> thanks for your time today. great to see you. >> my pleasure, becky. we have shark tank's kevin o'leary on the biggest issues facing businesses today. n'gher taxes and how u.s. firms cat find enough workers. stay tuned, you're watching

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a spac on the nasdaq today under the ticker dwe he's also going to ring the nasdaq closing bell. we're going to get to all of that in a moment first, kevin, want to talk about you and taxes. you think this is a terrible idea, i know >> it's not only a terrible idea, it's never going to happen let me explain why

i'm an irish citizen as well this is an irish passport. i'm very familiar with the rules of engagement in ireland it's still a member of the e.u. and yet it's beside the largest financial market which is in london it's a perfect not zr a 15 perct minimum corporate tax rate and they never will. their advantage of getting domiciled company there is and nexus of a lot of digital servers etc. is extremely higher they are going to go to the cocktail party at the g7 and smile at everybody and say this is great you raise your tax to 15% and luck of the irish will be there. meanwhile they will probably crop their rates what. people don't understand about this proposal is every country except the use as the value added tax. when they want to dial in revenues they raise the vat tax but they never ever mess with corporate taxes. because that is how you create

jobs every politician gets their mandate by creating jobs in a growing economy. they would love the u.s. to raise their corporate tax rate and make them the highest tax jurisdiction in the world. singapore, uae, ireland. places i do business with every day. why? because they have very advantageous corporate tax policy that is not going change doesn't matter how much squawking. in addition many of the leaders that attended the meeting. trudeau, for instance. doesn't matter what he commits to now the next administration is going to be that wasn't us >> so this is all theater. >> absolutely. the idea they are going to listen to that in a global competitive time i must remind people of something as well. all this discussion saying look back decades ago when corporate taxes were higher, how well america did. it was not a digital economy

then it was not an opportunity to have your nexus in one and services in ireland and delivered all around the world digitally. we have to be competitive. this talk of tax increases is crazy. it's just not going happen it will devastate our competitiveness in the u.s the as crazy concept. >> i'm wrestling with the similar thoughts it is seven of the wealthiest nations on earth in fact i think 7 of the 8 wealthiest nations on earth getting together and essentially trying to fix prices it. feels a little inappropriate if you did that in your wine business with the other seven largest similarly situated wine businesses in the u.s. wouldn't that feel similarly inappropriate? >> it would illegal on top of that we want competition. in every way we can. including corporate policy i'm of the belief that the lower you make corporate tax rates, i think yellen should have said look, the u.s. is going to lower tax rates to 15 to be more competitive. that would be a great idea right now we're in the middle of

the g 20 we're not at top, not at the bottom if the proposals go through it would be number one. and living in new york, massachusetts and california will be the highest taxed individuals on earth that doesn't sound good to be. sounds like a really, really bad idea >> let's talk spac you got a spac going today lots of questions about spacs. tell us about yours but also les talk about how the investing community should comp it and against what >> i'm an investor in many spacs. my wine business which has been a growing for years and years, heres a on old adage about wine? how do you become a millionaire in the wine business start as a billionaire the only way to make wmoney is t scale it what's changed in the digital economy is i can now take a bottle of wine and this is shameless promotion. this is an o'leary wine going to

be delivered direct to consumers in 46 states we're going to be announcing that today we have the ability now with the laws changed a quire customers online, ship direct and keep 100% of the gross margins less the manufacturing costs and customer acquisition, and we use the spac to buy the rest of the wine companies going out of business because they are too small. because our strategy is scale. direct to consumer and full retail logistics if you want 150,000 cases at costco tomorrow. we got it. we can do it i'm a big believer in spac zwls. >> why did you pick a stack as opposed to traditional ipo >> speed to market speed to scale access to capital and we're able too drive a great deal i just became an investor through the spac, the warrants, the units and i have many, many, many other spacs i have invested in as well

i think tom you have talked about this about the history of the management team. the execution skills the history of doing deals in the private equity market. if they have a good history like the goers brothers have, you know, even ackman, i'm happy to invest in those deals because they have great deal floe and i like the attribute of a spac in terms of all the different ways and i can approach it. all my option. i think it is a great vehicle. >> what should we make in the fact that there is no pipe investor >> that there is no what investors? >> pipe investor typically in most spacs these days there is an additional investment made at the time of the deal is often seen as the krenlzing mechanism, long term investors who are deciding they want in. >> because the company has lots of capital it is a matter of how much capital you need when you raise more capital you are diluting yourself. you want to get the balance. the company has a long track record and basically growing and expanding the business, i'm not

worried about that at all. it will have plenty of access to markets. and now a stack trading on nasdaq we can acquire other companies with we have leverage i think people should open their eyes up to what a spac is. it is a faster way to go public. and it is an option. you don't have to use it but by the way let me give you some numbers there or over 200 spacs that have to despac by the quarter of 2022 there are going a ton of good deals and bad deals. because they are going to be forced to actually do these respaccings before lose their seed capital that may be one issue you can bring up in the spac market but not every spac is bad. that's for sure. >> appreciate it good luck with it. and programming note new prime time series called "money court." guess who's running it kevin o'leary. premiers wednesday august 11, 10:00 p.m. eastern on cnbc you do not want to miss it

>> he put on a beret i think but i was hoping for barristers wig maybe to go with money court. >> i -- it was so short. i wanted to see more >> want to thank tom farley for being with us today. good to see you. folks, thank you very much for being with us today. we really appreciate we'll see all of you rhtig back here tomorrow. right now though it is time for "squawk on the street. ♪ ♪ (upbeat music) ♪ ♪ ♪ ♪ ♪ ♪

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good tuesday morning welcome to "squawk on the street." i'm carl quintanilla, and jim cramer and david faber the new york stock exchange. ahead of inflation data on thursday, futures flat bitcoin down 7%. lots of news in airlines, pharma, retail and tech. crypto crumble bitcoin's terrible run apparently not over. tanking roughly 8% this morning. 40% the past month other digital currency also down >> plus just what it is is true tax rate for america's best known multi billionaires