game on again. we will slhow you. biden in brussels. getting ready for the face-to-face with vladimir putin. we are on the ground with a re report it is monday, june 14th, 2021. "squawk box" begins right now. good morning welcome to "squawk box" here on cnbc i'm becky quick along with andrew joe is out today andrew is reporting live from new york city. andrew, we have a big guest coming up today. nice haircut, by the way. >> we will spend time together we have a lot of big guests. we will spend time with paul tudor jones in the 8:00 hour

we will talk about markets and inflation and if this is transitory or if this is the new normal we will get into bitcoin he bought into bitcoin in the middle of the pandemic he was one of the first as you know to spend time with us in the middle of davos talking about the pandemic he called it right when he came on with us a couple of months after in the midst of what seemed like that almost hellish downturn and said we would be flying and back flying look where the s&p is today, becky. boy, is it flying. here we are. >> flying more than the numbers the tsa show we are looking at markets. s&p actually closing at 28th record for this year on friday if you want to check things out, the dow indicated up by 29 points dow was down for the week to date down 0.8%. cat er pillar was down by 10%.

a drop of 9.5% the worst week for that component in over a year s&p closed at a 28th record close. it was up by 0.4% for the week nasdaq, up for the fifth day in a row on friday, up 1.8% year to date, dow up 12.6% s&p up 13% nasdaq up over 9% for the year to date. check out treasury yields. this has been a phenomenon we watch prices continue to creep up cpi numbers hotter than anticipated. 10-year is 1.465%. that is down from the yield a week ago a week ago friday, the 10-year yielding 1.56% the pressure on yields coming in as we look at the inflationary pressures. i guess the market is thinking the fed is right this is transitionary. we will see.

the "squawk stack" here this morning. up three weeks in a row. russell 2000 up 2% last week dow transports were down 1% last we week that is concerning when you consider dow transports can be an indication of where things are this morning real estate was the strongest sector up 2% financials were the weakest down by 2.4%. real estate giving back a bit. and, andrew, we talk about wti continuing to climb. the highest levels in two and a half years every time we check on the chart, it was friday again prices at the pump going up. $3.07 a gallon it was up 9 cents according to aaa. and the biggest is natural gas up slightly. the biggest gainer last week we saw prices pull back.

lumber and other things. gasses is where you saw the higher prices last week at l least. >> it has been an incredible ride talking about incredible rides i don't know what you make of this, becky. i'm curious to hear what you think of it. the price of bitcoin surged last night. this after elon musk said tesla could resume bitcoin transactions in the future bitcoin soared in february this after musk said it would accept the payment it plunged in may when musk halted payments citing concerns over mining. and yesterday, musk tweeted in response to the market manipulation that tesla would resume bitcoin transactions when there is confirmation of reason able 50% clean energy by miners with positive future trends.

i only have one comment. i don't think we learned anything yesterday zero i'm actually surprised it would have moved in any direction insofar as effectively said he wasn't selling and he hasn't he said he was looking for a cleaner version of this and hoping they would get there. is that just what he said -- he said that months ago i'm unsure why this is the rallying cry i don't know >> i guess he is not completely out. i agree with that assessment of it the only thing we learned is he sold 10% to say you do this and it doesn't move the market. the market was under pressure if you look at prices the last couple weeks hard to know exactly what this means. i guess he doesn't want to say not for never, but this is what he had before. i'm not sure why the market looks at it differently.

this time, i guess, he said it this way. >> that's the thing i don't understand by the way, he already said he sold 10% i don't think that piece of it was new. the one piece was he hadn't sold more there was speculation they were selling down stake maybe that was something that was an overhang on the market or psychology of the market if elon is not in, we're not in. i don't know we'll talk to paul tudor jones about this he bought into bitcoin when you have one human being who says bitcoin is decentralized. sure one person can move the market of bitcoin by 10% in either direction with a tweet and a tweet that says nothing new. i'm losing points. i should stop talking. the bitcoiners will come after us. >> yes, they will.

let me save you from yourself in the meantime, boris johnson, the prime minister of uk, is expected to delay the england reopening by up to four weeks. that announcement could come today. the country is facing the delta outbreak with cases up 240% in the last week. the extension would mean that venues like nightclubs would remain shut. limits on gatherings staying in place. face mask rules will not be lifted 80% of people in the uk received at least one dose of the vaccine. we spoke with dr. scott gottlieb about that last week they made the decision to give more people the initial dose and not worry about the second dose if they could get them back in he said that could have providing the opening for the delta variant to get in there. you need additional protections to protect from the new variants it is not as effective with one

shot as the original strains >> it's a little -- i don't want to say scary, but a lot scary. we have breaking news from novavax. the covid-19 vaccine with the efficacy rate of 90% over 93% of the dominant variants of the virus. it is showing 100% protection against moderate and severe disease. we can add that to the list, becky. >> add it to the list and arsenal of things you can protect. that stock up 11% right now. a lot of people have been watching this for a long time. these latest late-stage trials with good news. when we come back, we will get you ready for the events this week that could move the markets. the squawk planner is next. at 7:00 a.m., the first of the two big news makers. bank of america ceo brian

moynahan will join us live talking about the reopening of new york city and other big cities new hampshire america we will talk to him about what he is seeing with credit card data bank of america banks one out of two americans. they have a very good idea of what is happening with the consumer and small business and big businesses, too. at 8:00 a.m., investor paul tudor jones. we will talk with him about what to expect fr tomhe interviews when "squawk box will" be right back >> announcer: this cnbc program is sponsored by truist wealth. where meaningful relationships matter most. creamy premium ice cream and chasing fireflies. don't worry about me. i'm fine. you can't beat turkey hill memories. wondering what actually goes into your multivitamin? at new chapter, its' innovation, organic ingredients, and fermentation. fermentation? yes. formulated to help you body really

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welcome back to "squawk box. on the "squawk planner." the fed kicking off the two-day policy meeting we have several data points of note consumer price index and the housing prices on wednesday. a light week with earnings we will hear from oracle tomorrow after the bell. lennar reporting on wednesday and kroger on thursday morning adobe reporting thursday after the bell becky. andrew, thanks time for the look at what's working in the markets joining us is greg branch. managing partner at veritas financial. greg, just about everything is working.

you can look anywhere you are going to go with the exception of treasuries. everything else seems to be working. >> working and part of that is due to the fact that we have well underestimated the earnings power in the sectors in the economy. when you look at consensus, still today, it is reflecting 70% to 75% of pre-pandemic levels that's wrong we know that is wrong as we see the upgrades across the board. we know it is wrong because earnings surprises are across the board. consensus is catching up in large part to what the earnings power will be this year. as long as we have the upward revisions and the earnings surprises, they will continue to be a tailwind in some of the sectors. >> greg, there is an interesting piece on the b1 page of "the

wall street journal" today what if the fed is wrong the market is buying it hook, line and sinker. this inflation is transitory it points out if you are looking at even food and energy cpi prices, up over the last few months with 8.2% annualized. that is shocking if that is the case what if the fed is wrong and things have to move faster than they anticipated >> becky, i actually do believe the current view of the fed is probably wrong on two counts the first with regard to inflation. the supporters of the current stance point to base effect. that is largely true with the year over year number. when you look at the month over month still have two of the largest increases in 30 years. 9 90 basis points in april and

may. that has nothing to do with base effect that is price increase it is likely particularly if you look at the commodity ppi which is a good leading indicator and above 17% and this is not transitory i point to the labor market. we have a job consumption problem. not a job growth problem that is what the fed's traditional tools now using and has been meant to solve. it has been meant to stimulate job growth to getlabor market full the labor market is not full because of lack of job optenings it is lack of job consumption. this inflation that we're seeing will be longer in duration than they forecast and if there is different policy we need to look at because easy money in the

accommodative fed is not meant to stimulate growth. >> that is all the way back to the year 2000. is that why you like financials, greg >> i like financials because i expect the fed to change positions this year. i expect there could be a rise in rates earlier than the markets expected in a rising rate environment that makes the net interest environment more positive and multiples are not depressed anymore. you get that in combination with the continued robust capital markets and robust investment banking and advisory and sizeable reserve releases as a tailwind given credit is better than expected. >> i guess we should point out the diversified financials jpmorgan chase and bank of america? >> that's right. i focus on those which show they can do it. jpmorgan chase and morgan stanley and goldman sachs and

the bank of america. >> you like retail i guess that is partly because there's a lot of money that consumers have in their pockets and they are starting to spend it >> partly. i like to focus in on value shopping in particular because as inflation becomes more acute we have to remember that elevated savings rate was concentrated in the higher socioeconomic groups as inflation rises, value shopping will emerge more. the value shopping entities will continue to gain share in particular, i like those that have really invested in the e-retail capabilities during the pandemic target annd walmart which put money fulfillment centers. shortened the duration of delivery and the data they are

collecting with the store platform as well i like the group as a whole, but i think those names will have structure advantage as we move forward. >> greg, good to see you we will talk to you soon >> great to be here. >> see ya' coming up when we return, two big news makers on the way today. first, bank of america's ceo brian moynahan live at 7:00 a.m. eastern time he has the pulse of the consumer around the country i'm live with paul tudor jones. the legendary trader coming up at 8:00 a.m. you don't want to miss either of them "squawk" returns after this. >> announcer: what's working is sponsored by comcast business. bounce forward at comcastbusiness.com.

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welcome back to "squawk box. yesterday was the deadline on the s.e.c. request for comment on corporate climate changes disclosures. diana olick joins us with that >> reporter: good morning, andrew this could have big ramifications for companies and stock prices and investors in the comments to the s.e.c., the business round table reports that they want to disclose the climate considerations annually. it will result in better long-term risk adjusted returns for clients. companies are assessing physical risk, floods, hurricanes and fires. also transition risk that is as the world changes to a lower carbon economy, how will the changes hit operations and

supply chain some of the largest insvesinves are asking for it. >> you have to look at the risk tools and measurements associated through the company engagement, we want companies to disclose and be transparent with us >> reporter: in a recent public filing, krispy kreme listed climate under risk factors the hurdle is to create a standard for climate risk and qualify and quantify for it, andrew >> here is the question i ask. how are they are supposed to assess climate risk without knowing what is going to happen in the future? >> reporter: that is why there is the entire cottage industry of companies doing that. climate service. flood factor putting flood scores are real estate properties around the world. these companies are doing the very high level risk models.

high tech. looking at ten years out and 20 years old looking at global warming and sea level rise and how it affects the companies and putting numbers and stats in risk it is an interesting instrdustrs to watch >> another group of consultants making a lot of money. diana olick, thanks so much. great to see you this morning. we've got more coming up on "squawk box. president biden's overseas trip continues. he's in brussels with a meeting with nato leaders. eamon javers has an update on that after the break back after this. >> announcer: executive edge is sponsored by at&t business our people and network will help keep you connected let's take care of business. thi. oh, we can help with that.

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president biden wrapping up the trip to the g7 summit and shifting gears to brussels for the nato alliance. and we have eamon javers on the

ground eamon, a lot of people are watching this especially the putin meeting. >> reporter: becky, we are looking at the transition of the diplomatic piece of the trip with the g7 and biden arrived at brussels headquarters. we met with the secretary-general and we discussed the military alliance with the united states and europe over the weekend, the g7 agreeds a lot of focus on china and russia and former president trump absence was noted in particular look at the take aways as you look at the agreement. 870 million doses of vaccine to poorer countries they agreed to endorse the global minimum tax

they he cacalled on china over n rights and confirmed the call o russia this a turn away from the america first priorities of the presedecessor and more of ameria engagement with the world. >> the lack of participation in the past and full engagement was noticed significantly. not only by leaders of the countries, but by the people in the g7 countries america is back in the business of leading the world alongside nations who share our most deeply held values >> reporter: one of the most intrigues issues over the weekend is the idea of the global fund to counteract the chinese development around the world. the belt and road initiative in which the chinese government is enacting the marshall plan for the globe.

g7 agreed to a similar fund for a global democracies finance development in poorer countries around the world no details how that will be unveiled we will wait for particulars in an effort to counter balance some of that chinese influence around the world guys, back to you. >> eamon, a bigger question. this is a lot of initiatives and talk they have here. how much of it, you think, is likely to come through the global minimum tax and crackdown on cyber and what they said of russia and china is there a follow through with that or is this enough to make the statements at this point will it have an impact >> reporter: that is the real question, becky. a lot of the agreements are words on paper for right now we don't have the details of the financing agreement in terms of the build back better for the world. to counteract the belt and road initiative from the chinese.

we don't have specifics on that. in terms of the push back on ransomware and russians. that is words on paper we will wait to see how the president's meeting in geneva goes with putin to see if they can put muscle behind it the democratic nations are trying to assert they are acting in concert and there is unity here the president has painted all of this as an opportunity for the world to see the democratic countries come together and choose between democratic leadership of the world and the autocratic leadership of the world. the president said this is the moment where the democratic countries are pushing back against the autocratic autoleaders. becky. >> is this your first business trip >> reporter: first since covid i was in tampa on a story last week this is the first overseas trip.

it is different traveling the world. a lot of masks and permissions inn kcredible amount of paper w we handled to get in the country here a lot of hurdles with overseas travel you get a sense the world is coming back. people are moving about. >> good to see you there good to have you we will check in with you throughout the trip. thanks, eamon. >> you bet when we come back, an eye popping price tag for the first space flight on blue origin. we have the details next. plus, two big exclusive interviews you don't want to miss bank of america ceo brian moynahan will talk about the economy and taxes and how we are seeing the economy reopen. he has the numbers and he'll be here in a few minutes. he is here upstairs right now. plus, paul tudor jones is our special guest in the interview and we will talk about what he is seeing in the markets

and the bounce back. a programming note the cnbc evolve global summit on june 16th. gathering leaders from around the world and sharing tactics for adapting and transforming in the new era of business. i'll speak with the dick's ceo about her retailer's resilience about what they he have seen big numbers at sports stores we will talk about that. if you like to learn more, register at cnbcevents.com/evolve. "squawk box" will be right back. afrnl afrnlts. >> announcer: this cnbc program is sponsored by flex there is shares exchange traded funds. no one likes to choose between safe or sporty. modern or reliable.

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an interesting piece in the wall street journal the journal citing people foregoing to the office lifestyle and people burned out from the workload during the pandemic a andrew, the lowest level of layoffs and 9.3 million job openings you can add this up to being a workers' market right now. >> it is fascinating to see the

confidence that workers have that there will be a job on the other side i wonder what it will do to the unemployment numbers over the next couple months during what i think is a spsuedo transition period whether that is the next couple months or years. the eureka moments over what people want to do and their priorities i think there is something else beyond confidence because of the market itself. >> part of it is the skilled market, too. if this is the same story that i read, it was focused on technology people who have technology jobs. a massive demand there employers having to do all kinds of things to hold on to talent if you have a high turnover rate, it cuts back on productivity you have to find new people and teach them your work place culture.

there is a lot of incentive for employers to try to hold on to the tall ent they have. i looked at75% of workers at one workplace if they were considered high quality. they wanted to hold on to them and they got raises and promotions we have a great story. we have a winner it is not becky quick. it is not becky in this instance because of her views of going to space. anonymous bidder won the auction to join jeff bezos and his brother on the first blue origin trip to space. 7 7,900 people bid on the spot paying $28 million for the 11-minute trip the winner has to pay a 6% buyer's commission bringing the total cost to $30 million. is that not you? >> not me. i don't think i would do it if you paid me $28 million.

the buyer's commission is what i didn't get you find an apartment in new york city before the pandemic? you have to pay that additional renter's or finder's fee >> a little like an auction at sotheby's. you don't pay the bid. you actually often pay commission on top of it. >> for the auction house what was the auction house where does the money go? >> that's a good question. we will have to do a little more reporting on that. i don't know the answer. >> then the other question is are you buying a seat on the space ship and time with bezos more than just the 11.6 minutes of the flight? do you get to spend the several days training with him leading up to that time? >> that's a great question i imagine you have to train. whether you train with jeff bezos or not, i don't know

i imagine the 11.6 minutes still turns into hours i assume the 11 minutes. i imagine there is an hour or two before and after that. i don't know you think that is interesting. you think people are paying to hang out with jeff bezos or do you think they are paying to go to space >> go to space with jeff bezos i guess the time you spend with him ahead of time depends on how annoying you are >> except that for jeff's purposes, he is stuck next to that when they're up in space. for any reason they can't get down in 11 minutes, it could be a long while >> depending on who won the auction. >> what is the most that anyone ever paid to have lunch with buffett? >> that's a good question. millions of dollars. it's not $28 million this is a whole new ball game.

up in space doing this from the ride itself. >> now buffett will have to up his game for next year >> maybe up his game and up his place that they will be doing any of these things. we can tell you new this morning that american michael taylor and his son peter pleaded guilty in tokyo. they helped carlos ghosn escape from 2018 from a box reports say they appeared tired, but otherwise they were in normal health after three months in a japanese jail they were extradited after arrested in massachusetts in may of 2020. i remember there were questions at the time of how he did this and get out. this is the next chapter in that st story. >> a movie like a good movie. when we come back, a lot more ahead on "squawk box.

shares of apple and google japan set to open anti-trust investigation. "squawk box" returns right after this >> announcer: don't forget to subscribe to our podcast you get interviews and behind the scenes access. look for us on apple podcasts or your favorite podcast apps and subscribe to squawk pod today. [sfx]: happy screaming

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welcome back to "squawk box" this morning check it out on monday morning green arrows

these are hesitant moves dow futures up 10 points s&p futures indicated up 3.5 after another record high on friday nasdaq indicated up 40 points as well we're a few minutes away from the interview with bank of america ceo brian moynahan we will talk about a lot of things with the economies reopening and companies calling employees back, we will talk about what he is seeing in consumer data at this point they have one out of two households with a relationship with bank of america he has a good idea of how consumers are feeling and spending and savings and what we can expect from small business loans or are small businesses on the rise again after the trouble they had over the last year yeah we will talk about all of those issues and the global minimum tax proposed by the g7

if it will play out and what it would mean for his company and others >> where has he been where have they been on corporate taxes originally, becky? >> on corporate taxes in terms of the position? >> in terms of the rate? was he somebody -- >> bank of america would be below on a global basis. it would have an impact if they put in the minimum tax of 15%. it would have an impact on bank of america now, if you were looking at london last week, you think this is a done deal when the g7 says it when the chancellor says he wants an incentive for companies based in london. you are already seeing a fracturing as soon as it was announced. the exceptions they want they wanted to make sure they were putting the right taxes on the right companies in the right

places which is concerning once you break it down, it is us versus you i'm not sure how any global minimum tax gets put in at that point. >> it is hard to form a cartel it's not an easy thing to do by the way, who knows a different administration or any one of the countries, two or three years, a prior administerration agreed to that. >> i think everybody is watching to see it will pass u.s. congress at this point no guarantee of that >> meantime, i'm live at the offices of tudor investments this morning at 8:00 a.m., another interview with paul tudor jones will be with us. we will talk about the federal reserve and interest rates and get into the idea of what's transitory and what is the new normal we'll talk bitcoin from somebody who got in and got in relatively

early. we will see what he thinks about it now all that and more in just a little bit up next,ohed mam el-erian joins us "squawk box" returns in a moment wondering what actually goes into your multivitamin? at new chapter, its' innovation, organic ingredients, and fermentation. fermentation? yes. formulated to help you body really truly absorb the natural goodness. new chapter. wellness, well done.

♪ ♪ i had the nightmare again maxine. the world was out of wonka bars... relax. you just need digital workflows. they help keep everyone supplied and happy, proactively. let's workflow it. then you can stop having those nightmares. no, i would miss them too much. whatever you business is facing... let's workflow it. servicenow. frank doesn't need a posh virtual receptionist, because he cloned himself. while his clone does reception work,

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snoozefest into a test of its inflation narrative. joining us, from allianz and gramercy's mohammedelle aryan, also president of queens college. good morning to you, mohamed let's talk about the fed meeting but the second to the last paragraph in the op-ed, the implications of the fed on the biden administration and the policy, infrastructure policy and everything else that we're going to see, or not see, as a result. >> thanks for having me. think about the economy has gone from going uphill to going downhill it's gathering momentum. the recovery is gaining. and now, you have a situation where both monetary and fiscal policy pedal to the metal. so you're accelerating into something going downhill which means there's risk of overheating everywhere

now, if you continue with this policy mix there is a risk that the fiscal which involves major reforms gets crowded out by the monetary that's no longer having the impact it used to have the right thing is to recalibrate a policy mix if you don't, the biden reforms may be sacrificed. >> then the question is, mohamed, you're jay powell, you're supposed to be acting independently of the administration or congress do you say i'm going to put the brakes on here because these folks here are going to press on the accelerator? or do you have to wait for them to press on the accelerator over here, if you will, on infrastructure or whatnot and then i'll put the brakes on? >> we all say we have to wait to put the brakes on the accelerator -- no one is talking about putting the brakes on.

what you want to avoid it slamming of the brakes what we're talking about is easing your foot a little bit on the accelerator. they're in a trap because of three things with normal inflation, inflation is tran transitory secondly, they repeated over and over again, they're not thinking about thinking about it. and thirdly, a backward thinking of monetary framework which makes sense in aggregate demand than supply. and that's why the market is very comfortable despite everything we're seeing every single day, the fed is going to remain pedal to the metal. >> two very quick questions, the

nova vaccine, do you think it's great news and would you think the market would move on it but it doesn't appear to be moving? >> no, because we've embraced the fact that vaccines are effective and it's confirmed it and it's wonderful, wonderful news keeping an eye on what's happening here in the uk, the new variant with the fact that johnson & johnson feels they can't go forward with the reopening because of the delta variant is something to keep an eye on >> just give us your 30-second take on elon musk anded bitcoin, one man moving the price of bitcoin by 10% >> yeah, because suddenly adoption again it's adoption again. remember, it's tug-of-war between adoption and regulation. and elon musk has a huge effect on the adoption side of that equ equation >> but did she say somethings

that was fundamentally different than before? >> yeah, people accepted it saying it's a form of currency and saying, yes, we will, so, yes,ese adopted the whole notion it's a currency. >> the one and only mohammedelle aryan, if you haven't read the op-ed, read it becky. when we come back, bank of america's ceo brian moynahan will join us here in an exclusive interview. he's here in the house "squawk box" will be back. going hybrid, with ibm. a hybrid cloud approach with watson ai helps manage supply chains while predicting demands with ease. from retail to healthcare, businesses are going with a smarter hybrid cloud, using the tools, platform and expertise of ibm.

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the state of financials and the economic reopening of america. bank of america ceo brian moynahan joins us for an exclusive interview. general motors set to give shareholders on the state of that business. we get an update on electric vehicles and ready for takeoff, the winner of an auction to join jeff bezos and his brother for a suborbital ride in the blue origin rocket. for a price tag on the frontier. that story and more coming up as the second hour of "squawk box" begins right now ♪

good morning welcome back to "squawk box" right here on cnbc i'm andrew ross sorkin along with becky quick joe is off today this morning, i'm attituder investments office getting ready for an interview with legendary investor paul tudor jones where we get this thoughts on the fed, monetary policy, maybe a little bitcoin, billionaire taxes perhaps and so much more that interview is just about an hour away. we've got a couple of big interviews this morning. becky's going to have one in just a moment. but take a quick look at futures as we speak. show you where things stand. the dow looks like it will open up 13 points higher. the nasdaq up about 43 points and the s&p 500, towering even higher, once again up about 4 points this morning. s&p 500 up three straight weeks in a row a record close becs >> andrew, thank you as we mentioned joining us

for a "squawk" exclusive interview right here at the nasdaq is bank of america ceo and chairman brian moynahan. brian, you are our first guest back in studio here in the nasdaq since we left march 2020. welcome. and thank you very much for being here >> well, it's great to be here, becky, and see you again and be in person. >> yeah, it's been way too long. but things are starting to open up i get the feeling you probably have pretty big numbers on how good that opening is go, bank of america, one out of every two households has some relationship with them. what are you seeing in the numbers? >> well, we're seeing from this year to date, compared to '19 -- '20, numbers are up high total consumer spending 3 1/2 now. >> for year to date? >> for year to date, it's up 20%. >> how is that possible up 20%

over a prepandemic year? >> if you think about it what happened in '17 and '18 as it started to expand, you went from 5%, 6% level and people got stimulus money and they've been spending it. the unemployment rate is going down people are going back to work. people can go into amusement parks. they can go out to eat seeing everything open the only thing still down is travel pure travel. everything, pandemic credit card spending is up up 19 in double digits >> how far is travel down? >> 10%, 15% down pure travel and debit card we'll see that play out. tsa, 500,000 travelers understand where it was in '19 but a lot higher than where it was last year. those entries will continue to see the recovery if you try to book a hotel went to a wedding this weekend, completely full. >> in terms of what people are

doing with their savings accounts i know savings rates skyrocketed during the pandemic. what are we seeing are people spending their savings at this point? >> kind of interesting if you look at the broad consumer base on the checking accounts, the checking accounts less than $1,000, $2,000, average balances getting money in and out they're up six, seven times before the pandemic. when you go into the level of 2,000, 4,000, 5,000, it's holding in there you'll see them spend a little money, 35% of the last two stimulus, the 600 and 1400 the money is still there and people will snapend that as opposed to opportunities as opposed to hoarding stuff and being stuck in your home to slightly moving out to really you can spend the money any way you want, except for international travel >> right is that an argument for stimulus

checks being necessary what are you saying? >> well, i think they're necessary, in that group of citizens you have some unemployed we've seen the high unemployment level. our experts had the unemployment level go down between 4% and 4.5% over the year but you haven't people who haven't crossed the river yet. the good news as i've talked to you over the last year and a half, more and more industries across the river are back to normal and now we've got to get the last group through the stimulus helps the things hardest to get through, things that had to be in person, venues and restaurants. this great theater district that we're sitting in the middle of that can't happen until we're safe, and those individuals are still struggling is. we've got to help them get through. >> what you just said, the idea that we'll be basically at full unemployment by the end of the year you'd never guess that there are a lot of people who anticipate they're going to have

to move sooner rather than later. maybe not to raise rates but to end quantitative easing. there's an article in the journal today about what happens if the numbers aren't transitory where do you come in on that >> obviously, with the market, the ten-year bond go up and then go down. and everybody is sort of lower for long and are they going to start to remove some of the accommodation. the answer is they'll have to figure this out. as once zrdescribed by a govern, what they are, are mountain climbers, hand holding meeting to meeting what you see, they have the data you had mohamed on earlier saying, wait, do we really need to purchase things and you'll hear chair powell give a major speech at jackson hole i think the reality is the combination is not needed at the same level, clearly. now the question is when do you remove it.

and the great debate is when is transitory not transitory. you'll never figure out on the way in because you say it's temporary in the middle. i think that's the real question i think we have to be much more careful right now than we've been because you're seeing wages grow you're seeing sticky prices grow i was talking to people yesterday, you'll see the ability to get people to come do catering at a wedding. they were talking about how much the prices went up year over year these are things that are real are they transitory? probably, but we don't know until we get there >> it's going to get uncomfortable. you're a regulator, obviously it would be in your interest if rates would rise the financials have been separate but you also see the real pricing increases that come through. and what that means to consumers and businesses what has it meant to small businesses that you all service? >> well, on one hand to get more revenue. on the other hand, expenses are going up i think the real risk, with

small business clients we do a survey every six months. six months ago, it was about pandemic, pandemic, pandemic the good news, through the miracles of companies able to develop the vaccine you'll see that change. what's the word, getting lighter in inflation and shortages the issue on goods and services is shortages the shipping, there's articles on the china side but the u.s. side, the ports are still not back to normal and we see resin shortages to make all kinds of stuff. those are in relationship to small business in six months they went to the pandemic was going to shut them down to i can't get goods and services to sell those are calling the price increases, transitory or not, that's the great debate. but they worry can they pass them along, and those are all of the things of small businesses and we have millions to worry about. the good news, '21, we did about

20% more commitments than '19. you're seeing small businesses start to grow. slowly but barely but growing. which is good news you're seeing the line usage and stuff starting to stabilize in the first quarter. it's still massively different than it was prepandemic. >> how many small businesses did you see close? with loans you had out and waiting for business to come back >> credit quality was -- because of the work that congress and administration and fed did, credit quality was unbelievable during this. we're seeing it recover very strong but it recovered almost two or three quarters ago that's been the interesting thing. we're back with the same credit on the standards since probably march -- since what we had before the crisis. so, you're back out there making credit and that allows you to reach the broader spectrum of credit there were some small businesses that got damaged that was a ppp we did $35 billion of ppp loans

to provide a supplement to those businesses which they needed to get across that river. that's a half million loans, $35 billion is bigger than the balance than we have at bank of america. we have the largest of that impact all of this went on which is all good >> there was an article last week concerns about how big companies are holding a lot more cash not only during the pandemic, but prepandemic, too is that a problem? are they holding on to so much cash, so much uncertainty at this point what does that mean to you >> we went to a trillion $400 billion zbghost deposits to lika trillion 9 the business side is strong. the answer is nobody likes to sit on cash underutilized. businesses figure out, retool a model and make money you saw the profits coming in,

in the first quarter and that money is stored there so they paid down debt with companies 50 million to $2 billion in revenue down to 32% on average before the pandemic that difference is $25 billion in balances on the base of 150 think of that. they don't need a new credit extension. they just needed something to spend the money on that's what's going to happen, as more employees come in, they use those lines. as goods and services come in they use the line. they're being careful because of the supply chain >> how quickly does that ramp up a more or two or longer? >> much longer all of this has to crank through the system, you got to deliver goods and services and raw materials. the chip shortage that you talked about is a very public example of this. i think somebody said the other day they're starting to deliver the trucks in june so people work through it takes six months, a year and

a half these are not simple snap your fingers. and by the way, we cannot forget the virus. being in england in the last week, that country is in pretty good shape, you're starting to see when you talk to people until other countries, it's much different. united states, because of the vaccine and early wave, we're further along. a lot of countries aren't. we got to get the vaccines out there quickly. >> andrew has a question as well andrew >> hey, brian, i'm curious when you talk about the banking system versus the shadow banking system when we see credit emerge in other places especially in the fintech of the world, the affirms of the world, the sofis of the world how they're doing. >> this is going back to the

'90s era there's two credits who do you underwrite and how do you underwrite the second is process speed. we push our process speed. four or five years ago, after, you know, the financial crisis, we had slowed down and made sure we were doing things certain ways we sped up our small business underwriting and that's where we've seen it since '15, '16 change all of the great competitors we study them but i think you do have to be careful, as you watch credit unwind when times get tough it affects the unsecuredbusiness first with spikes. that's where we're careful if you look at our credit losses during this crisis and our stress test test, we'll get another round, at bank of america, that's the strategy we took so we didn't have to worry

about liquidity or capital in a time of tremendous tumult last year in april and may. unbelievable england demands one balance sheet. $75 billion in loans, didn't worry about a thing. >> brian, do you think the fintech should be more regulated? or perhaps less regulated with your bank? i ask that because your peer jamie dimon has made that case before >> we've been consistent ful an activity is done, it's regulated the same way if you make a loan, all mortgages and lenders should have the same regulations. whether that means more or less on one than the other, people can debate that. you can't have that different. and the consumer bill was set up to do that in some areas it's made good progress but at the end of the day, a loan, auto loan, should be regulated the same way, a consumer loan, et cetera

the other question in commercial businesses can you do things without the bank balance sheet that are different on leverage there you get into more specifics on debate because it's an institutional borrower, on the other end, it's net asset value and you know, andrew, if they lose the money, they're not leveraged in unless they borrowed against it. i'm clear on everybody should be on the same regulation >> i heard an ad as i was driving in on an no income check mortgage that's not something that bank of america would be doing, is it >> we've been consistent on that we bought companies in the back that was fun to work through >> it reminded me of 2007. >> we are not going back, quite frankly, we have about 3% retail mortgage loan origination share. it's all the customers, we underwrite them all. we don't do it with anybody else and we do it on a consistent basis. it's a market ebb and flow, we

do it in a way that's good for the borrower and for us. >> mortgage forbearance programs were active during the pandemic. are you getting to the point where you're going to ease coming out and going back to normalized forbearance >> well,we always had loss mitigation programs. because of the federal statute moratorium on foreclosure is up for us it's a nonpoint at the high point, we helped 2 million customers defer their payments a lotauot of those customers go current. everybody got in shock and stopped. and now customers can pay. we've modified those already by taking three payments and sticking it on the back of the loan we'll continue to do that. we've always done it that's one of the reasons why we do the mortgage loans only for ourselves, we have much more flexibility in terms of how we handle the dialogue than a set

of rules back in 2008, 2009 and 2010, it was very different. and we have 50,000 people doing it for a while >> you mentioned you just came back from england. and you were there for the g7. thisis pretty unusual to have ceos sitting down and meeting with the heads of the g7 at one of those meetings. what were you there to talk about? >> we were there to talk about, there's a group called the sustainable markets that prince charles chartered in davos 2020. that was a group of ceos to work to try to move faster to help them live up to the net zero climate commitments and their clients live up to net zero climate commitments. and our statement was to basically talk about the possibility side of that the interesting position, eight

or nine of us talking to them. our position is we don't need money, what we need, take them to the world banks to use them to take political risks away all of the money will flow in from the asset manager banks another one is sustainable aviation fuels if you can create a modest mandate we can start the market and the market will take over. these are things that policies can be done to help drive it we don't need money. there's so much money ready to go here. all of the company's commitments cause that money to go to work now we need enabling principles to make it happen. >> what was the reaction from the political leaders? >> they agreed in the communique, standardizing and simplifying disclosure the fas was more detailed. but the airline industry that we're talking to is ready to go. those companies can make it now. it's got to be scaled but the only way to get it scaled is have a little bit in everybody's tank as opposed to only one

place. >> one of the things that came from the g7 was the idea of a global minimum tax that would impact a company like bank of america. what do you think of it? and how would you react if that actually gets put into place >> well, at the end of the day, banks pay taxes because we don't really have the kind of deductions and ip and what everybody has. it affects our clients the issue of taxes and a tax that impacts a client is more concerning to me and bank of america will be fine either way. >> what's your concern in how it will impact your clients are you talking tech companies in particular? >> well, there's those types of companies but also the ability -- decisions have been made in the past based on a set of rules if you start to vary the rules then you got to remake all of those decisions when things are being moved for purposes that don't change what you do if you sell 100 units but move from country "a" to country "b"

because tax laws change and rules change it gets difficult i think what the world is trying to say there is a minimum bar. that's understandable. i think you're still going to have a little controversy over the next period of time, whether other countries agree with it because this was seven countries but i think it's a chance for a low minimum bar to say, hey, if we don't do this, countries will seek out too far real questions, settle on rules, it's not always for the most productive reasons >> and a race to the bottom is what that was trying to prevent but i did hear the chancellor exchequer say it shouldn't be based on london because they want the right taxes in companies in the right places. if you have are that z disintegration from the g7 leaders what does that tell you? >> even the united states competes with tax rates. it's an age-old thing. it's hard to stop.

and people look and say my big industry ought to be protective on this. but i think it's good you that see the world realize that globalization requires to be more active around lower minimums, things like, lower common denominator i think that's important when you take to things like disclosure it's the same kind of thing. we can't have everybody make up their own disclosure schemes otherwise, the company operates across borders and with the irs and fasb, if they get into the official, then they can follow the rules otherwise people change them on you. and taxes, the same thing, it's the work that ends up getting done as opposed to the real thing. it's tough because everyone wants to protect their industry. >> cyber security attacks have been in focus because there have been a lot of industries they seem to pop up everywhere, the cyber attacks and ransom

in the protective services you guys have been with this for a long time. how much do you spend each year in protecting yourself >> to give you a sense, i became ceo 12 1/2 years ago, we're up $15 billion. >> $15 billion per year. >> per year. by the way, institutions around us, my peers and other institutions spend like amounts and contracting parties send like amounts in other words, we cause spendispend ing in third parties to protect us there's a lot of money being spent. i think one of the things, our industry has done a great job on working in the administration with a cooperative where you can share information, move faster with attacks on the government and our industry is obviously important and they've done a good job what you're seeing is a dialogue switching to realizing who's

doing this and why this is not for any other reason just to make money if you went in a branch and somebody robbed there wouldn't be a debate why they were there. you would call the police. there was a debate how do you handle this. now they realize it's criminal activity that's good because it causes things to move faster. >> brian, your headquarters is just down the street at least your building here in new york is just down the street, how many people are back at this point? and when will you be back in full capacity? >> well in the big arc, what we're saying, we started two or three months ago asking people to tell us their vaccination status we have 60 some thousand that have told us that status we have 7,000, 8,000 outside of the u.s. which is actually quite good now we're in the process of inviting those people back to work we give them 30 days plus notice labor day to september, you're

kind of in that transition mode. the idea is the vaccinated should be back to work for september. >> it sounds like punishment for vaccinated people. >> no, people want to get back to work. i was at this wedding over the weekend, a bunch of young kids, they're tired of working out of their rooms. we have 10%, 15% of them every day. they've done a spectacular job those teammates have done a spectacular job, now we're just saying come back the call centeroperators you got to move people back. there's no punishment. ultimately everybody will be back >> whether they're vaccinated or not? >> the cdc gives the all-clear one of the tricks is to have a mi mixed environment. that's why we're concentrating on the vaccinated people everybody is worried about it, the kids that have graduated '19, they're here all six, eight months before this happened. '20, '21, that's 5,000 kids from

october, including new ones taken through orientation have to be back in their seats. you think of apartments and activity, the key is not to lose track of the virus infection path the number one risk to our economy still is that question because if people react and shut down, the emotional side is that none of the team will be tough i think that's what we hope we'll do right >> andrew, do you got a question >> no, i'm going to follow up on what you asked, becky. this issue of vaccination. i gather some going back to the offices, some, brian, are vaccinated trying to figure out what happens post labor day, i heard you say we're waiting to see what the cdc says. i think a lot of business owners are trying to grapple with this decision do you wait for the cdc? or make the decision saying you can only come back if you're vaccinated does that hold post-labor day,

especially if you don't hear from the cdc they may not come out with a recommendation >> thing that's tricky, andrew, with the density of an office floor and what you can do with a social distance and mask is different than having vaccinated people moving abnormally we've got 60,000 people to get back to work, sheri bronson and the team and the hr team did a great job of hey, let's build a tool and capture it. it's an eerie feeling go back in the office for the first time for the teammates. we've called back all the top people in the company, department presidents. and they're coming back in the office to papers saying march 2020 papers sitting there old newspapers and stuff it's an eerie people we've got to walk people back. we know a lot of people will be some place else in august and

we're fine with that we're concentrated on the vaccinated but we've got to make sure the unvaccinated can come back in a mode that's constructive >> brian moynahan, thank you for being our first guest back in studio we really want to thank you for that appreciate your time. great to see you >> pleasure being here >> great to be back to normal. >> good to be here, too. >> thanks, andrew. >> great conversation, becky we thank brian again news out of lordstown motors we've got details after the break. plus, gm is holding its shareholder meeting today. lots to cover when we return before we head to break, let's take a check on markets. to show you where the dow stands dow down 15 points nasdaq up

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company's board of directors cfo julio rodriguez also resigned as the company announces a change in leadership as it investigates an investigation made by hindenburg research the conclusion most of the claims according to lordstown made by hindenburg research were false and misleading however, they did identify some issues when it came to identifying future orders of the vehicles that lordstown motors will be producing. shares down basically 10% after announcing that the ceo steve burns is out and let's go to virtual meeting of gm, a heck of a move that it's had over the last year what can we expect at the annual meeting? three issues, one an update on the ev game plan and chip production and brightdrop the new

subsidiary created, investment until crews and other ev investments, how do they monetize these and in the future and general motors, they suspended the dividend after the first quarter of last year will they bring back the dividend next year, this year mary barra since in charge since 2015 stocks do anything, last year, it's up 120% one last note, guys, general motors' market cap now stands at near an all-time high which is, i think, 85, 89 million -- there it is, 89 billion. think about that, an all-time high basically it's more than doubled compared to last year. or close to double compared to last year. big day for general motors, we'll be monitoring that virtual annual meeting a little later on this morning >> okay. phil, appreciate it.

on lordstown, do we know what could happen next here before we get to the -- >> sure. >> the next story. >> angela strand who is an independent director has now been put in charge of acting executive chairwoman of the company. they're going to conduct a search for a ceo >> right >> look, they don't have a whole lot of cash, andrew. they have to do something relatively quick here. >> phil, appreciate it meantime, president biden arriving at nato headquarters just moments ago i want to get straight to eamon javers who had more on the events eamon. >> reporter: we saw the president meeting with stoltenberg. the president reaffirming the nato agreement saying that the united states is very much there for its nato allies. the president famil emphasizinge fact that nato came to the aid in 9/11.

he talked to jen staolenberg in face-to-face a few moments ago and in this new world. take a listen. >> i think that there is a growing recognition over the last couple of years that we have new challenges. and we have russia, that is not acting in a way that is consistent with what we had hoped. as well as china >> reporter: and, becky, the reaction of president biden here in europe has been very much one of relief among the nato leaders and leaders of the g7 and uk over the weekend this is a group of leaders that very much views biden as a breath of fresh air after president trump's america first policies but this is a president that is

viewed a little askance,becaus they don't know what to think of biden presidency in the wake of january 6th. they don't know how much the biden administration will be in power. will he be a two-term president? how much will this last, becky you certainty on this side of the pond about the future of american governance and leadership in the world. >> probably on the other side, too. eamon, thank you very much when we come back, investor ul tudor jones on the markets. "squawk box" will be right back.

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all right. here's what's making headlines at this hour bitcoin is moving higher after comments by who else, elon musk. this time an, musk said that tesla may start accepting bitcoin if miners use clean energy the price of bitcoin up two cents over the last two weeks. that's according to the latest lundberg survey. the average price is up $3.25. and an unidentified bidder will join jeff bezos on a trip to space next month. blue origin is the spaceflight company with humans aboard on july 20th. the identity of the winner will be revealed in about two weeks still to come this morning, andrew is speaking to legendary

investor pautul dor jones. that interview is at the top of the next hour. stick around, "squawk box" will be right back. this is hannah, she's a posh virtual receptionist at the ready 24-7 to answer your calls and assist your clients. you can't be in two places at once. let posh answer. posh virtual receptionists.

wondering what actually goes into your multivitamin? at new chapter, its' innovation, organic ingredients, and fermentation. fermentation? yes. formulated to help you body really truly absorb the natural goodness. new chapter. wellness, well done. welcome back to "squawk box. i'm dominic chu here with your market minute on this monday morning. we want to call your attention to what's happening with the overall markets, the s&p hitting that rarefied air on friday. but it's not been the mega tech technology stocks have been a huge part of that story so far this year. the equal-weighted s&p 500 index

that treats everybody the same, microsoft and amazon and apple get don't get as much of that weighting. that cap has grown over the couple of months keep an eye on that gap. also, with stock markets high, you would expect stock market volatility to be low. it is, down 15.96 right now for the cbo volatility index it's a major of overall index of angst and volatility in the markets. could it get lower yes, it could, prepandemic, 11 to 12 at those levels there. if it does go below that we had spoken with katie stockton, a break below 15 and change could signal more highs in the coming months, watch that we're watching the price of bitcoin popping, it hasn't seen 40,000 in a few weeks. it's been a fairly tight trading range. as a result of that, outside of bitcoin in 35,000 and change

keep an eye on the stock that are tied a little more closely to the bitcoin trade the exchange bitcoin operator, 2% upside, square, microstrategy, riot blockchain, all of the names mentioned andrew, back to you. >> dom, thank you for that we've got a big interview coming up in a few minutes paul tudor, getting ready to do an exclusive interview one-on-one, paul tudor jones will be our special guest starting at the top of the hour. so much to discuss with him. the federal reserve, bitcoin, where we are in this transitory versus nontransitory debate. and so much more a reminder you can watch us live on the go, you can do it right now on the cnbc app. we're back in just a moment.

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coming up, flagship pioneering, the firm that founded moderna, raising some big cash to invest look at the details right after the break. first, we want to take a look at some of the biggest gainers across the markets s&p winners right now, chipotle leading the way, up by 1.4%. on the dow, if you're checking things out to see what the biggest gainers are there, at this point, chevron up by half a percent. apples, intel, microsoft and p&g

rounding up the top five and vertex pharmaceuticals leading the way 1% "squawk box" will be back.

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flagship pioneering, that's the firm that founded moderna has raised a $3.4 billion fund to invest in biotech companies. meg tirrell joins you with a special guest. meg, good to see you >> that special guest is the founder and gaye of flagship ceo. thank you for joining us tell us what this fund, $3.4 billion signals about investors' confidence in flagship through what moderna has accomplished? or do you think it signals a greater for biotech overall? >> meg, it's great to be with you. i think it signals both things on the one hand, over the last year, the impact that moderna had with the messenger rna which has developed over that period of time.

wells other companies coming to fruition in that time frame, each having significant impact for their products i think that plus, more broadly bio technology being more and more visible as to the impact it can have in the long term. i think these are things that have attracted both public market investors and in our vase, private investors to allow us to fuel the next generation of these platform companies. >> one of the areas you've highlighted is health security in one sense, i think about this as preventing the next pandemic. i just wonder if you can explain how you see that as an investable air, this surveillance how does this make sense from an investment point of view to focus on this -- obviously it makes sense from a global security point of view, but from flagship pioneering perspective? >> sure, meg i think this is a space just in its infancy, it's all about

the -- we tend to think about health, when it expires we become sick. in fact, there's a fairly long journey in any disease we're seeing in infectious disease, where a lot of things build up to the point where we have a pandemic but as well until cardiovascular disease and alzheimer's and cancer, there is a condition broadly that we view as predisease that the same tools we've been using to try to find new targets to go after the disease can also be used upstream of that thinking about preemptive medicine what we're just inviting folks to think about, how can we make new tools, technologies and interventions that allow us to act much earlier than when the disease is in its full bloom and therefore, very difficult to handle not only do we need capital to do that, we also need solutions. we need innovation and that innovation, in turn, needs capital and a long-term point of view to allow all of this to happen

but i'm quite convinced that this pandemic, with the trillions of dollars of lost economic value, will cause us to reconsider whether our current definition of health care which is largely about sick care, about disease care, should not also be expanded to include upstream, preemptive medicine with the same science being applied to great effect. >> of course, we're still in this pandemic. and you're the chairman of moderna. tell us how you're looking at sort of the future of moderna's vaccine with booster shots, potentially being needed what are you expecting for the timing of those? as well as for the vaccine becoming available more broadly to the rest of the world >> well, indeed, the last year or so has gone from conception and first human data about a year ago in our phase one trials which were the first to show that mrna could even be feasible in this application, to today, the deployment of hundreds of millions of mrna vaccine doses

with a lot more in the type line to come. we are obviously following the variants and their developments. some of them seniorare spreadin relatively quickly and our boosters in particular, are being tested both with new mrna sequences that can attack the variants very specifically but also, we're trying it in combination with the original skrax vaccine seen all of that work, science is battling back with basically newer and newer products even while the virus itself is fighting back. in terms of looking at the rest of the world, we're quite pleased a couple weeks ago we have both received w.h.o. approval to be able to supply vaccine more broadly in the world. but also the covax relationship of 500 million doses.

and we'll have much impact which is a global pandemic, we're not going to solve this by focusing on a few countries we're able to participate in that >> noubar, thanks for being with us this morning. >> thank you for having me and there's some breaking news out from drugmaker novavax this morning they reported earlier that the vaccine had an efficacy rate of 93% overall. aum all of this is coming from a late-stage trial that shows 100% protection when it comes to moderate and severe disease. this is great news great news in terms of another tool in the toolkit, right >> absolutely. and this is the first vaccine that uses sort of more tried and true technology. it's a protein vaccine it's a technology we've seen for other vaccines that are already out there on the market. there's a question whether it

could have a more tolerable safety profile as well but it's going to be delayed they're going to file for approval in the third quarter. emergency use authorization. their supply is a little limited right now. we're actually talking with the novavax ceo in the 10:00 a.m. hour what role they see playing. president biden sees it as potentially one to be donated to other countries in the world but novavax has a future in the u.s. and we're talking to the chairman this is going to happen >> a booster shot meaning it doesn't matter what your first vaccine was, you can get a booster from any of them >> well, we don't know the science on that, but it is under way and there's going to be a lot of competition among the vaccination companies. >> meg, thanks a lot andrew coming up in just a moment, legendary investor paul tudor jones is going to join us with

his take on the markets, the fed, bitcoin and so much more. a quick check of the markets on this hour. ahead of the opening bell, an hour and a half before we open up right back with paul tudor jones right after this to prepare our people for anything. you're late well, cdw amplified services experts will consult with you to design, orchestrate and manage your most complex technologies to help you quickly overcome any obstacle ... without all of this. oh, that is better. who's that? oh, if you want coffee, you gotta get past tantrum. you're in for a brewed awakening. for technology that moves you forward, trust cdw amplified services what if you could have the perspective to see more? at morgan stanley, a global collective of thought leaders offers investors a broader view. ♪♪ we see companies protecting the bottom line by putting people first. we see a bright future, still hungry for the ingenuity of those ready for the next challenge.

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good morning a market legend sounds off on the u.s. inflation debate. also crisp toyptocurrencies and stocks just minutes away from paul tudor jones. and novavax saying its shot is 90% effective in a late-stage trial. we've got the details. and an infrastructure alternative, president biden and a top senator breaking down. we're going to speak about a new bipartisan plan coming together. final hour of "squawk box" beginnings right now ♪ good morning, everybody. welcome to "squawk box" here on cnbc i'm becky quick along with

andrew ross sorkin joe is out today and this morning, andrew is at the offices of tudor investment corporation in downtown new york city he's going to be speaking with legendary hedge fund manager paul tudor jones just a moment earlier we will looking at futures up barely, now the dow off by 32 points s&p hanging in there, up for example fractionally and the s&p closed high on friday and the treasury market, the yields actually pushed lower at this point, ten-year yield sitting at 1.459% which incredible, when you think about what's happened with inflation what the expectations for the fed. 30-year sitting at 2.715%. and the five-year at 0.153%.

andrew >> thanks, becky let's get to the special guest of the hour. i don't know if he likes when i call him legendary legendary trader paul tudor jones. he's also the chairman of just capital and founder and a board member of robinhood foundation paul, we're going to talk about the upcoming robinhood conference happening this wednesday in just a couple minutes. but first, let's start with the markets. i actually want to start with the fed. we had a big debate. raging debate about inflation. whether it's transitory, whether it's a new normal here or what the legendary macro thinks about this >> well, i think this fed meeting could be the most important fed meeting in jay powell's career. certainly the most important fed meeting in the past four or five years. and the reason why is because

we've had so much incoming data that challenges both their mission and their model. so, how they react to that will be extraordinarily important and will be signaling i think, for investors as to how they should deal with their portfolios going forward you have to remember, that the fed right now is really operating with a single mandate. they're stated goal is maximizing employment. and you can almost see how important that is to them. and just the way that they view the difference between employment and inflation with employment, they want to see outcomes we want to see material gains in employment with inflation, they tell you, it's transitory. trust our forecast it's an intellectual incon

gruetty that are wrong on the forecasts. so this meeting is really important because you have a variety of data points to come in that again challenge both their mission and their model. >> so, do you believe that the inflation we're seeing if it is inflation at all is transitory do you believe their credibility is at risk because their model is wrong >> well, first of all, it's somewhat disingenuous for them to say inflation is transitory because if we look at the past episodes where it is transitory, it's a completely different mandate. they had to do a mandate this is focused primary on maximizing employment. how can you use historical antecedents when you've got a different reaction than the feds in the past have had

a great example of that would be take 2013. 2013, they first began to talk about taper, inflation was 1.5%. cpi was 1.5% versus 4.9 now at that time, you had 6.3 million people unemployed, more than there were job offers so, today, we have the same number of people unemployed, 9.3 million people as we have job offers they're exactly equal. so if we go back to 2013 and we look at both inflation which is much greater today than it was then and we look at the number of unemployed, relative to the number of opportunities to be employed, you have a situation that's completely different now. and yet that fed in 2013 was concerned enough about inflation

to begin to taper which they actually did, at the beginning of 2014. so, when you say today that inflation's going to be transitory, and you compare the tape in 2013, they're miles apart. they're miles apart. when you look at the fed today, and the fed back then, you wonder how can you have such wildly different policy views on what constitutes the right levels for employment. the right levels for inflation how can you have that within an eight-year time frame? it's almost like a split personality. and you wonder why bitcoin has a $2 trillion market cap and gold is at $1865 an ounce and the reason why is you have this dichotomy in policy, again, questions, questions the institutional credibility of something. >> i want to talk about bitcoin and gold in just a second.

but if you were jay powell, right now, you would do what >> well, you know, traditionally economic orthodoxcy would call for immediate course direction it would call for, okay, we've had two hugely material sets of data that have occurred since the last meeting we've some two cpi increases the highest in years more importantly, those cpi increases were outside the model forecast i know when we run our models attat tudor, our systematic models when you see something out of bounds you immediately review -- typically, when something is out of bounds, we typically cut capital to it. the second piece of data that came in that's really, really material is the job offers

which is again the highest in 50 years. that's important because if you take the trajectory right now of job offers, you extrapolate that for the next four months and you extrapolate the same type of increases we've been having in enemplmployment in ths four months. and by october, you'll have a surplus of job offers to unemployed that will be exactly the same as january of 2020. before the pandemic hit. so, again, if you think about what they do, they could declare victory and say we've won. we're going to be where we were prepandemic by october and yet, at the same time, right now, we are instead quantitative easing and juicing an economy that is already red hot.

the way i like to think about fed policy right now, imagine a world war ii sherman tank, on top you've got this massive weapon which in this case -- in the case of the fed is monetary policy but your field of vision is this narrow slit in the front and the only thing that you see is you see maximizing employment i really think that fed listens to or they did in may 2020 had a profound effect on it. the problem with that is that on one side, you have got these inherent dangers right you've got inflation on this side and you've got financial stability on this side so when you're looking through that slit, you allow these two to all of a sudden grow in both threat level and importance. and i think that's what's happening right now. >> okay, couple that with what the biden administration and potentially congress want to do

or not on infrastructure spending and other spending. do you think they should take their foot off of that gas pedal? >> well, look, you've got the craziest mix of fiscal monetary policy you know, since the federal reserve board was created. it goes against, again, all traditional economic orthodoxy listen, this really started in 2017 when president trump cut corporate taxes. and gave us a 5% peace time budget deficit when employment was at 4.5%, on the way to 4.1%. that had a really palpable impact because when you have the person at the top say, to heck with -- to heck with orthodoxy, to heck with tradition we're going to do something that's off-pace, it has a

signaling effect to everything else in society. would we be where we're today with the fed and treasury leaning on each other, had we not started back in 2017 would many media outlets be promoting narratives that they know are false, simply because it plays to their audience would we have had the capitol insurrection that we had on january 6th if everyone thought, well, he can do it, they can do it, why can't we, the world's crazy anyway little manifestations of that show up in this world we have today, right meme stocks going up 1500% spacs, spacs, right, there was more money raised in spacs this year in the first four months than raised in all of ipos in 2020 so, think about what that says that says that investors were more willing to put money in

companies where they had no idea what they're going to invest in, than they were into ipos of known businesses that had business plans and were up and viable so, all of a sudden, there is a premium on the perceived scarety of uncertainty it's turned economic orthodoxy upside down. that's why this meeting is so important because things are absolutely bat as crazy, at some point, we have to say, wait, slow down, we're going to get back in the lane and drive like we used to >> here's the real question, if things are as bat as crazy, and you're a trader, where you put your money, i'd actually like to hear about it as consequences of

being a trader bought long-term. what are you supposed to do? >> well, i'm going to watch the fed on friday. if they treat the events nonmaterial, as nonchalants, then i think it's a green light to bet heavily on every inflation trait. the idea that inflation is transitory, to me, is -- that one just doesn't work the way i see the world. so, i will look at $88 trillion of assets under asset managers of that, 670 billion are invested in commodity industrie like bloomberg, that's about three quarters of 1% if i rewind to 2011 when inflation was peaking at 3%, cpi at 4.9, those same investors had

1.2% of their assets which would imply today if they just got back to another $400 billion of buying in commopmodiy i indices. certainly, the commodities that we run would double or triple. if i just look at asset managers, 60/40 types, the one thing they're invested in they're not invested in because they're hearing that inflation is transtransitory you've got a massive short and that makes me think that -- i look at the balances in a variety commodities and they're all razor thin they're all so razor thin. and this is just what happens if institutional money will get to where they should be a level.

what happens if the reddit crowd ever gets into commodities? god forbid if the bullies, the financial markets were ever able to take it on like retail did back in the 1970s. >> explain what you mean by that >> what i mean, commodities, finite supply, small markets, generally speaking, and if we ever get inflationary psychology, for instance, like i did in my 20s back in the '70s, if we ever get that again and if you ever got retail actually nervous about inflation, then the one thing that leads inflation which is commodity prices is the easiest there is those things can literally scream double or trouble >> so you're worried about the reddit crowd getting involved in commodities right now? >> no, i'm saying that right now, i would be a lot -- look, i

think i'm the most conservative investor in the world. a hedge fund manager by definition hates risks loves edges, loves competitive edges does great risk-reward trades i would be really concerned about arguing that inflation is transitory when i know that you've got -- look, think about it, you have a just in time tally we have inventories at record low. we have demand screaming and we have people who are really undervested where they should be given the valuations of financial assets. >> you said if the fed doesn't make any moves this week that it's going to be a green light >> well, for me, it would be a green light. >> the question is it may be a green light temporarily but you're suggesting there is a hard stop and going to create a bigger problem how is the long-term investor think about that >> listen, i have maintained,

i'm so happy i don't have to pun a pension fund i don't know how you invest those assets when valuations for both interest rates and stocks are at -- if you combine the two, they're so overvalued they're at 100-year highs. i don't know what you'd do i know the one thing i'd do, the one thing that could hurt that is inflation i'd have as many inflation hedges on as i possibly could. i sit on the investment company for these not for profits and it's really difficult to try to explain to some of the board members of not for profits, gee, maybe now is not the best time to be invested maybe we should own commodities at this stage of the game. >> can i just say one last thing? the december 2018 meeting, if you think about that meeting that the fed had, was pretty much the same board make-up. they had a lot of incoming data between that meeting and the one

prior to that. stock market was down 12%. gsei was down. commodities were down 20%. the credit markets were frozen but they went on height, because they were locked in to this linear belief that i can have a forecast, and that we should stay with it the predictability was more important than reactivity. so i think they have the same -- seven months later, had to reverse course and take that back i think we're confronted with exactly the same situation right now. >> what do you make, you mentioned earlier, the meme stock phenomenon the social media enabled on mainstream media and wallstreetbets, i know you think it's part of this larger inflationary issue, i imagine, or stimulus, does it needto be

stopped if you're gary ginzler or the fed >> i would have raised if i was the fed, i would have raised margin two years ago i would have said we're going to expand with an unproven, untried, negative real rate economic program, it's going to encourage a lot of leverage. i'm going to raise margin requirements because i am going to signal you need to be prudent. yes, we want asset prices to rises. we want to take risks and extend duration, but you need to be prudent in how you use your leverage and what you invest in. >> what do you make of the meme stock traders, many of whom would argue they're doing what the hedge fund community has long done and their sticking to it >> listen, people can have whatever reasons they want to, to invest. again, i consider myself very, very, very conservative.

i probably would not be pursuing investment pieces as they are. i don't believe trade individual stocks that much but for me, i want to have a sound investment basis, other than just necessarily running shorts in. or necessarily doing things simply because the fact, it's extraordinary and hasn't been done before and it's working for a period of time i don't think i'm smart enough at this point in time to judge whether they're right or wrong more power to them i hope they succeed. >> let me ask you a different question which is around bitcoin. >> right >> because you last -- i want to say last spring, said, you know what i'm getting into crypto for the first time >> again, i thought things were crazy then i think they're crazy now. bitcoin, listen, i like bitcoin. right? bitcoin is math. and math has been around for thousands of years and two plus two is going to

equal four and it will for the next 2,000 years i like the idea of investing in something that's reliable, consistent, honest and 100% certain. so, bitcoin has appealed to me because it's a way for me to invest in certainty. where, again, i look at the difference between the fed of 2013, the fed of 2021. i'm going, how can this -- do i want to have faith, necessarily -- i look at the difference between trump and biden, do i want to have faith in that same reliability and consistency of human nature. and the linear nature of human nature which we know is anything but that >> do you like bitcoin at these prices >> listen -- >> by 10,000 >> i like bitcoin as a portfolio diversifier, everybody asks me what should i do with my

bitcoin? the only thing i know for certain, i want 5% in gold, 5% in bitcoin, 5% in cash, 5% uin commodities at this point in time i don't know what ri want to do with the other 80% until i see what the fed is going to do. >> a tweet by elon musk over the weekend, arguably, i know there's an argument about it pushed it up to 10%. >> yeah. so, i have a lot of friends who are heavily invested in crypto more power to them i have a defensive position for myself personally and my family that i just don't even look at even more. i don't look at it and think oh, wow, i made "x" today or lost "x" today. for me, it's just a way of kind

of foundationally looking at how do i protect my wealth over time it's a great diversifier again, i look at bitcoin as a story of wealth. i look at crypto as a story of wealth others will argue this is a different ecosystem. it's transactional in nature >> you made the argument a moment ago it's math, not that it's risk-free, but in terms of risk, we haven't talked two risks, risks long on your just capital list, things around the environment, for example geopolitical risks, whether the chinese government or other governments decide to even allow -- whether the fed at some point says we're not doing this. how do you peg those risks >> so, again, it costs more to mine gold energywise than it does bitcoin clearly, i'm concerned about the environmental impacts that bitcoin has. if i was -- if i was -- if i was king of the world, i'd ban bitcoin mining >> you would

>> just because of the environmental impact and make the ecosystem figure out a way to do it without expanding supply anymore at all. that's what i would do but can i just say i do think that we are in extraordinary times. i hope that we can -- i hope that we can -- i hope that we'll meme revert back to economic orthodox i get nervous from the economic standpoint when the 2% of gdp and i get nervous when i know that number was 45% higher than the 2000 bubble. and i know it's 90% higher than the 2007 top so if you just look at the amount of quantitative easing that we have planned just between now and december and you think about the 60% correlation between the nasdaq and the

reserves that the fed holds, you could argue the nasdaq is going to go up 20% if we stay on this pace of $120 billion of treasury purchases per month. you could argue that's where we're going to be at year end. and so, i don't know if that's necessarily a good thing i don't know if continuing to increase valuations through monetizization is the right course we're going to talk about robinhood but becky has a question >> paul, a quick question, if the fed is so important and you're waiting to make decisions on 80% of your portfolio based on what they say, what would you do if they don't change their statement? if they kind of roll along as business as usual for the most recent meeting and what would you do if they're saying, okay, we're seeing signs of inflation, maybe it's time to pull back on purchases what would be the two things

you'd wind up doing in that binary situation >> if they treat it with nonchalance, if they say we're on path, things are good, then i would just go all in on the inflation trades i'd probably buy commodities, buy crypto, buy gold if they -- if they course-correct, if they say we've got incoming data, we've accomplished our mission or we're on the way very rapidly to accomplishing our mission, on employment, then you're going to get a taper tantrum. you're going to get a selloff in mixed stocks doesn't necessarily mean it's over in 2013 when they tapered, they ended up rallying. the problem that the fed's gots right now, they're buying about 54% of this year's issuance. in 2013, they were buying 72%.

you can argue that they're going to actually, because they're such a bigger part of the market then, you can argue that they're actually going to have to taper quicker and hike quicker to have the same impact on treasury prices than they did back in 2014 >> i want to talk about robinhood. before we do that, one other question which is around taxes obviously a big question about corporate taxes, 15% floor at the g7 there's also question of taxes among billionaires and you happen to be lucky enough to be one mr. was a propubica report with jeff bezos, not paying anything in taxes and over the weekend, the idea of moving the management fee into carried interest. do you think the tax policy should change in a way that effectively taxes a billionaire class at higher levels >> yes

>> you do? >> absolutely. but i think you got to look at -- so, the ones they picked out have made all of their money through owning stock in their companies. and they've made all their money because of the fact that they haven't realized capital gains to a great extent. in those companies so, it's really, reality difficult. because you cannot, cannot tax unrealized capital gains because of the volatility of it. so, it's really difficult. but should -- should the top 1% pay more absolutely >> so, what would you do >> umm -- next time i come on, i'll have a better answer, how about that >> okay. we'll take that. we'll follow up. >> i have enough trouble trying to figure out what to do come wednesday. >> let's talk about wednesday. robinhood has a big conference coming up. it's a big event for you

i know it's something you're looking forward to what's on tap? >> well, it's the jpmorgan/robinhood investment conference we have it every year. we've got druckenmiller interviewing, we've got cathie wood dawn fitzpatrick jay z, you know, last year at our conference, every single best idea made money, including the shorts, an average of 30% return so, this is one where you can go, get actual ideas and make some money and most importantly, this is the -- the way we're going to rebuild new york, the way we're going to bring the city back is we're going to start in the drenches with the people who

were hurt the most in this pandemic so, i hope everyone, even if you don't watch all of it, sign up, go to robinhood dot -- investor investor robert robertenhood.org. >> thank you for spending a half hour with us appreciate it. >> great to see you. >> thank you very much great to see you becky. when we come back, we're talking infrastructure with one of the top negotiators in the house. new jersey representative josh gottheimer will update us on efforts to reach a bipartisan deal believe it or not, that deal is not there yet. and we want to let you know we've got another big interview tomorrow with alibaba executive vice chairman joe tisei, that's

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still to come this morning, should investors are thinking about a portfolio strategy shift this summer? . plus before do structure talks when president biden returns from his overseas. co-chair representative josh goodheimer is joining us next about what's happening right now. before we head to break, the cnbc evolve global summit coming up gathering leaders from around the world for provocative conversations, in adapting and innovating in this new era of business you can learn more at cnbcevents.com/evolve. "squawk box" will be right back. , keeping us on track for retirement...

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welcome back, everybody. we are approaching the halfway point of 2021 and stocks are holding on to pretty healthy year-to-date gains but there are some shifts taking place below the surface that could challenge current popular beliefs among investors. whose here to tell us is mike santoli. >> holding to gains is where to put it, we got almost nowhere in five weeks but continue to nudge higher on the s&p 500. if you look at the record close it's an unhurried move to that record close up less than half a percent in

five weeks still managing to hold that path here what's happening is confusing people are off balance and the growth versus value leadership question has been very muddled and fickle. if you look at russell 1000 growth versus value, a quarter to base growth on cyclicals stock on huge performance. it's been trading leadership back and forth here's was the growth-out performance there was the value-out performance. both positive for the quarter but still leading people off balance in terms of what might work there are otherss beyond this growth versus value complex. and you look at two etfs, very high profit margins. corporate america does not have hard choices they have so much cash to buy back stocks. give out dividends make m & a,

capital investments. this is a dividend to buy back etf on a year-to-year basis. and the dominant chip companies outperforming in the s&p right now they don't fit that neatly into growth or value but it shows you with loose financial conditions and corporate abundance you do have places to go out there even if nobody can quite figure out -- well, i think you can figure out why yields are lower but it's not necessarily the intuitive move, becky. >> i don't know how much of you heard of that conversation with paul tudor jones, lime looking at the fed meeting saying everything rides on what they say next >> yes >> especially if they do say we are seeing inflation, maybe it's time to stop the purchase of some of these assets he think it's going to be a taper tantrum. is there any way to avoid that >> well, i think there is a way to avoid it, depending how

careful they are with the messaging. i mean, he's completely correct that the fed told you they're using a different framework right now. they want to create inflation. they're not looking to anticipate inflation and then try to head it off at the pass i think that's something that i think the market still has to make peace with. and i think they've largely done that maybe the bond market tells you they don't expect the fed to do much on that front even the taper tantrum in 2015, i think he did a great job of showing the differences with the current backdrop with the one back there it is in theory a pretty consequential meeting even though the fed expects no big moves if they do go against that expect that is the usual line after the past couple meetings then you do have to test the fed response after a massive bond rally. >> mike, good to see you on this monday morning in the meantime, the house bipartisan caucus has put together a 1.4 trillion spending

to help salvage faltering negotiation for a bipartisan plan that plan includes $18 who billion for roads, 64 billions for business and amtrak and much more to talk about this plan is new jersey representative josh g go gottenheimer, josh, good to see you. we kind of thing this is dead on arrival and the bipartisan talks. what kinds of odds would you give on the bipartisan deal at this point. >> i'm going to give it good odds the white house has in each party interested $1.249 trillion over eight years focused on the harder and physical structure side of this the roads, bridges, tunnels, the

rail some climate -- like the gateway tunnel water infrastructure, broadband. one of these very comprehensive packages that i think we were get done in a bipartisan way of course, our colleagues in the senate who have been working closely with it in the last months are putting out their plan actually aut, a lot of improvement. >> and was compared to landing the triple lindy that's how complex this is the senate is working on it with kyrsten sinema to work on it on the other side, it's trying to win over the democrats who say, hold on a second, not so sure about this. nashville predators did make comments over the weekend if this were to happen it would be on the promise that there is a second bill coming if you got your bipartisan deal

now would you then support the democrats on the much wider issues that the administration has laid out and some farther left of your party have laid out too? >> yeah, it's going to depend what's in it, right? in the second reconciliation package, it's complicated because it's a triple lundy, you've got the senate and four-seat in the democratic house, anything you do, pull one way or the other, it moves folks. we've got 58 people in the house i'd the bipartisan package what we talked about before in the problem solver you can see people coming together and both sides have to come together a little bit if there's a second package, becky, it depends on details it's hard to commit on saying what's in the later package until we know. we know what's in the first package and that's where we get folks behind it. >> that's something that caught me, we'll let you go if you promise the second part of this.

what's the point of splitting those deals up but will it be tough to pull in your caucus if there's not that promise of additional spending? you're hearing that from predat pelosi >> i'm newt sure if we got this through and we're working closely with the white house and senators if we're able to get the bipartisan package on the physical infrastructure side of this then, you know, i don't believe really the people in the democratic side are going to vote against it. yes, we have to talk about what we do in a second package when we talked about it before, it's complicated depends on what's it in on the revenue side we've been working on the first package and republicans are not eager to do anything on the tax side but there are a series of other revenues so it's going to depend, as we work on the details here, what would be in the package.

for now, we should focus on getting this first package across the finish line and we've been working on it all eek a lot of calls over the weekend and a lot of discussion and momentum-building. >> we're a couple weeks past the administration deadline. we thought the administration deadline was memorial day, either vote with us and we're going with budget reconciliation or do it ourselves watching it from the outside i'm thinking if they're thought going with it they're not sure they have the votes to do budget reconciliation is that what you think >> well, i think also it's a sign people are still talking, constructive conversations going on why would you walk away in the middle of conversations in a deal you're going to have skeptics firing at it until they deal, there's people questioning it until it gets to the finish line. as long as people are talking about it, there's no way we'll

go away from discussing it whatever we do on reconciliation, it's going to be very tough you've got a lot of different perspectives you're bringing to the table here that's why i think doing this first package is really important. showing there's a lot of support for bipartisanship when it comes to infrastructure as you know, especially on the physical infrastructure side. let's get this done, let's show that unity under the president that wants that them look at a second package let's get this done first and land this plane and i really think we can get there >> congressman ottheimer, grea to see you >> thank you so much, becky. coming up when we return, jim cramer's first ctake what we heard from bank of america's ceo brian moynahan and billionaire p paul tudor jones after the break on cnbc.

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welcome back to "squawk box" this morning hedge fund legend paul tudor jones joined us earlier this hour, here he is talking about how the fed might react to recent inflation data and his own personal response. >> i'm going to watch the fed on wednesday, if they treat these numbers which are material events, they're very material, if they treat it with nonchalance, then i think it's just a green light to -- to bet heavily on every inflation trait. >> let's get down to the new york stock exchange where our good friend jim cramer joins us now. so much to chew on this morning,

jim. i'm curious what you thought of paul tudor jones comments about the market being a little batesque crazy is how they described it >> look, i love him so much, it's hard to criticize in that lineup he's got. i feel like i shouldn't be working i should go into that. i do think inflation trade will be dead-on really if jay doesn't -- if he just stays the course but i don't want the fed to suddenly play this role, okay, we got to raise inflation. i actually think that people make too little in this question i listened to the billionaire question you asked the billionaires have to lose money to the other side. i don't care -- there was a great piece about buffett. he thinks he can allocate the money better i think the country has to change i think that paul tudor jones is a little off from that one, he's so charitable as he is right

now. i'm loathe to criticize him because i do love him. >> what did you make of his position on bitcoin? he had two views, i thought it was interesting, 5% of assets, not 1%, but 5 in the opposite he was saying if he was the king, we shut it down. >> i know. >> but he's not king i wish he were king. but he's not king. i had been advocating on "mad money" 5% gold, 5% crypto, i had always been, since we started 16 years ago, 10% gold, i think you have to be hedged against the printing presses and this is the way to do it i thought his comments on the meme stocks were brilliant where's the fed? why don't they raise the margin rates? instead of raising the actual rates like greenspan did in order to shut down housing, we should be rising the margin rates. i mean the guy has so much sense and can i also say, brian

moynihan was also great and becky's interview, your show was so amazing today and i just shut my work down and decided to listen to you guys. >> well, i thought it was fascinating to hear what brian had to say also about interest rates, but even more about the consumer, i mean what was your big take-away. it's a great time. it's the roaring '20s. there is nothing wrong with everybody in america winning i hate the idea that just we ought to keep rates down, we shouldn't have more loans and that means that many small businesses were saved. small businesses, it's true, the engine of the economy. i like what's going on i find that there are people who are making more money than they used to, who were not making a lot of money, and i don't see why that's wrong i think that's right i'm in favor of it i've been with jay powell the whole way and i am sticking with it he is a, doing a great job

there. i said it. >> you alluded to it briefly, but you alluded to it briefly, you talked about it on friday, there is a piece in the "new york times" today about what they're calling the good billionaire turned the bad billionaire and talked about warren buffett, a fascinating compelling piece. >> i thought it was fabulous. >> my question to you is, how would you, how would you tax unrealized gains that's one of the things i talked about, there is a big question in the market place about even the idea of taxing unrealized gains >> well, i think that we have to get away from the idea that it's okay to avoid taxes. that is everybody's constitutional right it's in the constitution basically, the supreme court has codified it that you have the right to avoid but you can't evade. and i want a new discussion about whether it ask is right to have avoidance and they're so darn rich, if they are in this bracket,

andrew, i want something different from what is happening. i just think it's wrong. i don't want to disincentivize and i love the fact that he said the right thing, let me come back with something, it's wrong, i'm saying we have to start from the concept of getting rid of the idea that avoidance is good, and therefore, find a way to tax these people right now, there's no way. because that's not the way that we're supposed to. and we've got to change that and i think yes, there should be a surtax on wealth and they have to find a way. >> i feel like we're going to be debating this one for a lot longer time. but jim, it's great to see you, we will see you in a couple of minutes. >> great show, guys. we don't say it enough >> we've had a lot of fun this morning. >> thank you. >> don't miss the ceo of american express who jim has on tonight, on "mad money." becky? >> we will be looking forward to it also, new this morning though, ge is outlining some big

investments in cleaner burning aircraft engines phil lebeau has more of those details. hi, phil. >> take a look at shares of general electric, announcing with the french partner saffron, developing newer, more fuel efficient cleaner commercial aircraft engines, what is the game plan they are announcing in a couple of minutes in paris basically comes down this to this these engines will be 20% more fuel efficient have 20% or more lower emissions. that is a huge jump in commercial aircraft engine efficiency, using an open fan architecture, the goal is to have these in service, by the mid 2030s, remember, ge and saffron in this krocfm joint, i has 30% of the commercial engine market and it leads in terms of commercial engines in service around the world, that said, they realize the future is more fuel efficiency, especially as emission requirements are going to be raised around the world.

we're already seeing it in europe and we will see it in other parts of the world as well and this news coming out in a few minutes. bithe way, they have also expanded the joint venture, and that cfm joint venture in place since 1974, now extended to 20 a, and becky, we will be talking to john slattery, ceo of ge innovation, later this morning on "squawk on the street," and big news from ge in terms of developing more fuel efficient aircraft engines. >> stock is up about 7 cents up about half a percent. thanks, phil. when we come back, top stocks that you need to know about ahead of the opening bell on monday morning. stay tuned you're watching "squawk box" and you're watching "squawk box" and this is cnbc let posh answer. posh virtual receptionists.

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welcome back to "squawk. we're just a little more than a half hour away to the opening bell on wall street. we want to get straight to dom chu who joins us with some of the morning's top pre-market movers >> what we're watching right fow are a handful of names that that are moving because of various witness, analysts a part of it as well, lordstown motors getting a lot of attention in the electric vehicle space, down about 15% in the pre-market right now after its ceo and cfo have both resigned, stepping

down from the company, so they're looking for a replacement, those shares off big in the pre-market trade and chipotle getting an upgrade as well, and watch chipotle shares to an outperform and oatly, a mix of upgrades and downgrade, initiation of coverage from various analyst groups, and oatly is a recently public company in terms of oat-based products, milk, and a tension getting attention is corsair, gaming, headsets, microphones, that sort of thing, up 28% right now up over 191% over the last year, because it is now become one of the newest stocks being mentioned on internet chat forums, wall street bets, and it is getting more attention, one to watch, it could be the next meme stock, it's been up big over the course of the pre-market, extending gains right now and one last thing to watch is the cryptocurrency, a bit to the upside, a volatile week or so for bitcoin, leather,

doge coin, an green across the board, and trying to recapture that 40,000 level, i'll send things back to you >> thank you very much, dom. a very quick final check on the markets you will see this morning that the futures for the dow down by close to 35 points right now. it is monday morning andrew, we'll see you back here tomorrow, and folks, we will see you back here then, too. right now time for "squawk on the street." good morning, welcome to "squawk on the street," i'm scott, with jim cramer at the new york stock exchange. carl and david have the morning off. let's look at futures right now as we start this monday morning, dow opened lower by 37 and s&p basically flat, and nasdaq a little bit of a winner this morning up 20 and rates are in check and that's probably the reason why the nasdaq likes that thus far the road map starts with inflation risk to the market

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