congress yesterday highlights straight ahead. then markets taking notice the nasdaq closing at a record high microsoft hitting a major milestone. show you what's new today, this morning. bitcoin went negative for the year, but that didn't last long. the cryptocurrency rallying yesterday. to some extent at least bouncing back and again this morning. less than 24 hours after it went as low as 28,000 and change. wednesday, june 23rd, 2021 and "squawk box" begins right now. good morning, everybody. welcome to "squawk box" here on cnbc as joe mentioned, the markets have been interesting to watch

a day after the major indexes added to monday's gains. the nasdaq closed at a record high it was up .8 of a percent. the dow was up 0.2%. futures, it looks like the dow would open up 50 points. s&p futures up fractionally. nasdaq up by over 3 points that was a record close for the nasdaq it was technology that took off across the board we'll dip deeper into some of those stocks take a look at what's happening in the treasury market jay powell making those comments yesterday. we'll have more on that. the 10-year sitting at 1.473%. the 30-year yield is at 0.25%. it was a wild 24 hours for bitcoin. the cryptocurrency briefly

dropping below 30,000. at one point it was negative for the year and it turned around and for the year to date it's now up by 12% before you see the gains this morning up another 4 1/2 to almost $34,000. we'll talk more about this in a moment, too. let's look at the squawk stack technology growth are what were different. this is worth pointing out because we had talked about this yesterday. they had the stock sale yesterday that we heard about earlier. it was completed they told us yesterday. stock was up 10% yesterday on that and it's up fractionally this morning microsoft was one of the big tech names that really pushed things yesterday it crossed $2 trillion in market cap. apple was the first. around $2.2 trillion you see apple unchanged. apple was one of the biggest drivers yesterday. it added a lot of points to

things like the ishares s&p 500 growth index that set a record high yesterday. so did the russell 1,000 growth index. all things technology pushed things one more look at bitcoin which is trading just about 34,000 >> so much of this driven, becky, of course, by the fed and what jay powell said appearing a little bit different about some things than perhaps jim bullard. fed chair jay powell testifying before congress saying inflation expected to drop back towards the longer run goal despite growing concern. >> i will say that these effects have been larger than we expected and they may turn out to be more persistent than we expected but the incoming data are very much consistent with the view that these are factors that will wane over time and inflation will move down towards

our goals. >> powell said it is very unlikely that the economy is headed towards a 1970s style inflation which peaked above 10%. oh, becky is correct, joe. >> yes it doesn't have to go from where it could be a problem to '70s style. i understand what he's saying. there is some middle ground which might not be good, you just look at things that made the '70s look tame some of the countries in zimbabwe. >> you get a $100,000 bill to remind you what inflation looks like >> wymar, full of money. it matters it's not for free. you can't just -- wouldn't it be great if you could just --

>> is this time different? is this time different >> printing it, it would be the best thing in the world. >> right the one distinction though, i don't know if you think it's a distinction or not this time, everybody's doing it that doesn't make it right the question is whether or not it effectively negates everybody. because everybody's doing it, maybe it changes the dynamic of how it -- what it means. >> like when tech stocks -- >> yeah, versus when tech stocks go up, you have 10 overpriced dogs you're trading for 5 overpriced cats. >> that eventually comes back and reverts to the mean eventually, too. all it takes is for somebody to blink and somebody not to do it for the whole thing to kind of fall apart. >> creating wealth is not about printing, it's about doing what -- we just talked about microsoft. we're going to have a debate coming up about what congress

wants to do to technology. i'm really torn about this i know you guys have looked closely at some of the proposals for what we're going to do to amazon, what we're going to do to alphabet, what we're going to do to technology i'm torn i'm torn i'm really torn because i don't see how we're being harmed i see the rest of the world not creating great companies because of impediments or antitrust concerns based on competition, not on consumers andrew, it's in your genes, the antitrust, at least to think about it >> yeah. >> are the things that these companies are doing favoring their own products, favoring their own apps, is that just good business or is that -- is that a crooked way of doing things >> i'm completely mixed on this. as you know, i don't think it's

bad business i think it's what every business typically is supposed to be doing until potentially this is more of a public policy question there may be a moment where you get to such a scale and size and where you are so large that by doing that, which is as i said what most businesses are supposed to do, maybe you get to a place where it actually is harming equipment. that's the part you don't know >> they're trying to harm competition. >> correct that's the business. >> harming the consumer. like i guess at&t when it was, you know -- >> ma bell. >> ma bell, that was hurting probably customers but you shouldn't -- >> but they also had lots of government reasons for why they got that big they had the rights to the lines. >> right >> they had everything that's kind of handed to them you could make the case that's a monopoly

i guess you could make the case that these big internet companies got there first and by buying up all the competition they keep anybody else from getting bigger which is going to be interesting to see what happens with this amazon purchase of the movie studio is that going to be allowed to go through that's an actual acquisition looking at the companies not making purchases, how do you decide whether to split them up? >> look at what our country. i would argue look at all of the jobs they've created, look at all of the shareholder wealth they've created. there's othersthat say, bezos, don't come back. when you go up there, we don't need billionaires so just stay up there in orbit. >> right. >> that's the dichotomy we're seeing there are people thinking there are not positive data points. >> i think it's impossible to say this has not been remarkable innovation over the last 20 years. >> that has benefitted all of

us. >> i think it's impossible to look -- i will go out -- i don't know if it's going out on a limb and say, look, if you really believe amazon was such a monopoly, it's kind of hard to think we would be having a conversation about shopify and has $100 billion valuation there are some things that don't make sense about making some of these arguments. are there things that are not great? they see somebody selling something on their system, they go over the wall, take the data, start trying to compete with them you have to figure out how you want be to deal with those kinds of things. i don't know but, joe, if i had said the word tiktok to you three years ago, you would have looked at your watch. so when people say -- >> i do that still. >> -- where's the innovation. >> i would still >> you know the point.

the point is there is still innovation in this space. >> i think there is. >> if facebook was such a monopoly, you would still really be looking at your watch, the question is sort of what the damage is to all the developers. maybe i'm -- and apple's system, i don't know but then again if apple didn't have an attached store i don't know if we would have this. >> the reason jay powell can say this is not going to last is in no small part because of all of the disinflationary forces all of this great technology has given all of us. so we're back to square one. >> while we're on this topic, let's tell you about three big stories concerning amazon today. one of the largest labor unions in the united states is going to be voting on a sweeping plan to organize amazon warehouse workers and drooifrs the international team of

brotherhood will be voting on this they want to help them achieve union contract a high priority it would fund and assist workers with organizing. number two, sources say the federal trade commission will review amazon's $8.4 billion deal to buy mgm. lena khan has been critical of mgm in the past. the two-day prime day ended hours ago. monday surpassed $5.6 billion. adobe says that all major retailers got a boost from amazon's prime day celebrations. i didn't realize it at the time. the day that that kicked off i got an email from every small online website i've ever bought anything from. i got sucked into a couple of them before i realized this was

where amazon may list lots of votes. >> not buying? >> i was listening as a viewer >> two-day prime day >> yeah. >> which i didn't buy anything on amazon for a change but i bought from a lot of the other retailers that piggyback off of this. >> i would benefit from watching "squawk box" to know -- >> pay attention >> yeah. but i'm knowing after -- >> too late. >> becky and joe, there's your competition does becky's buying on sites offering lower prices. >> i'd love to see the statistics you had walmart, you had amazon, target, and you had all the little guys doing this too, because they're smart. coming up, we'll talk about that and so much more. tech stocks helping to lift the nasdaq to a high we'll dig into that next.

here's a look at some of the faang names. everything pretty much across the board up companies moving to open up office building by barring nonvaccinated workers. we'll talk about the return to work "squawk" begins right after this

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microsoft is only the second u.s. publically traded company to join the $2 trillion club in the regular trading session. it closed shy of that mark so farr this year most of the big tech stocks have soared with facebook, microsoft and alphabet jumping to 20% joining us is sylvia jablonski there was a view that you were supposed to rotate out of big tech big tech was not where the action was going to be it was going to be in all of the reopening trades now we seem to be moving in another direction, sylvia. >> good morning, andrew. i think what's really

interesting about this is tech has been an underperformer this year until names picked up speed. i think investors were trying to position against the idea of inflation coming i think investors were worried about the 10-year rising and said good-bye to tech and went 100% back into that value trade. from the beginning really when i saw some of these names pull back i thought that it was actually going to be a great opportunity and that they were going to find their way and here we are. >> can we break faang apart for a second we always talk about them as a monolith if you could only own one or two, what would you do >> yeah, i think i actually like -- i like google because i think that they're going to continue to benefit from advertising and the free open trade. i think you're getting technology there and you're getting a little bit of that back to america, back to travel, back to life sort of trade i do like microsoft.

microsoft has 72 billion in cash they're at an all-time high after yesterday. they hit the 2 trillion mark there's a lot of good things going on there they have 1.3 billion users on the cloud. they have 50 million subscribers on microsoft 365 new windows announcement is coming they're getting into ai and health care. they bought nuance and they're trying to expand there i think the world is going in this direction there's so much innovation and development and internet of things and cloud services and data storage off site. i just think that that company's really poised to do well i do like apple. i do like facebook as well i think if you look at apple performance, it's 4 to 5% year to date versus the s&p 13% it's 10 bucks off of all-time highs. that is a discounted stock >> sylvia, the trends may be the friends when it comes to what's happening from an innovation perspective and economic perspective, maybe, we'll see.

there's one place they may not have friends and that's washington, d.c. i don't know if you were listening to the conversation becky, joe and i were having before the segment about compe competition. clearly the pressure that appears to be coming to bear, potentially quite soon on these companies, how do you weigh that as an investor >> yeah. i think you made a lot of great points this morning. as we take this apart, it's going to take some time if there is regulation and sort of infractions imposed. i think they're going to be difficult to pass. it's hard to argue this is bad for the end consumer i think we've benefitted from these companies growing and you made some great points this morning, too other companies have as well shopify exists smaller retailers have sales on prime day and for me it's a tough argument to win. if it happened and there are sort of some restrictions and breakups that come to play, my sense is that it's just going to

cost time and money to figure it out and break it up in different ways i don't think the customer is going to go away i think we'll adjust our habits to how the companies adjust their businesses ecommerce isn't going away software services isn't going away we're used to it. >> completely, but i only raise it because when you look at -- if we were to go back and actually get the chart like the last 30 years of microsoft, you can see a real dip in the post antitrust period there are people who would make the market, potentially bill gates, that folks like google and others would get into the mobile space with android in part because of the focus on antitrust and microsoft was distracted having to work on and deal with that challenge in front of them as opposed to trying to innovate if that is a -- if that distraction is real and you have these three or four companies under pressure like that, the

question is do you want to keep your money with them there was a decade long period as you know almost dead money. >> yeah. in that case it's also lesson learned, right i think these companies sort of know what's coming they had task forces assigned to deal with it yes, it's definitely going to be a distraction for them it's going to be a distraction for the investor i think it's something that's really come upon them in a big way this year. i suspect that they're going to sort of put that aside from the time that they spent on innovation and technology. there will be a different task force, different group focusing on that. it will spook some investors for sure thinking about the future and where the world is going, ai augustments -- augments electric vehicles i want to park my money there. if i have a couple percentage points in apple, i think it will come back and break out. >> sylvia, we have to run. i asked you what was your favorite of those companies. of all that could come under

pressure from washington, who do you think is at the greatest risk >> oh, boy i think facebook is probably going to have some risk. facebook and amazon are probably the top two that are going to draw attention >> interesting more than apple. i think -- >> and, yeah, i think so i think so >> sylvia, great to see you. looking forward to seeing you again very, very soon. >> thank you. >> becky, we'll continue this conversation because it's not going away any time soon. >> it is not in fact, when we come back we've got some new numbers from the faa on incidents of unruly passengers on airplanes. there are more of them as you might have guessed we're going to tell you how flight attendants and industry groups want the government to respond. and as we head to a break, let's check out shares of our parent company, comcast. several reports show that streaming service peacock will be available on amazon fire

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airline industry groups, flight attendants and lawmakers are asking the federal government to do more. this year we've seen an increase in verbal abuse. the faa has received 3100 reports since the start of the year

they have asked for full and public prosecution senator jack reed plans to introduce legislation. we're talking to faa administrator steve dickson coming up at 8 a.m you've all seen the videos you know what happens in these situations there is air rage out there. >> i didn't like watching just now. >> very uncomfortable. people are already anxious. >> i'm driving. >> mask mandates are problems. they have to act like bouncers in the air. >> i'm driving. >> flight attendants. >> you do this you can make a -- >> i do this >> no. >> no. >> you can make a family -- you know, some people think if you drive you're wasting vacation days where you could be vacationing. >> if you have having fun on the

road which is possible -- >> as long as you're together. >> right >> there's a lot of things besides this, but you throw that in in the mix with traveling -- >> well, you get a delay for me, there's -- i don't know -- >> now they're going to cancel your flight. >> if it's less than 10 hours. by the time you drive to the airport. >> 10 hours? >> yeah. if it's less than 10 hours that's about where we go. >> that's a lot. >> sometimes 12. there's not a lot of -- if you can't get there on a direct flight if you have to consider the 2 hours early. if you have to consider your luggage, how far of a drive, it ends up not being that much longer you get to go and come as you please. >> wearing a mask the entire time in the airport and on the plane. >> that's a lot. >> i'm going half that five hours five hour drive.

>> you can't just go in and fill it up. >> you need my idea. you need my waffle house idea. >> you know, you guys glossed over it. i told you that i sat at -- >> i don't have an ev yet. >> coming back >> you did >> pittsburgh, sat in newark three hours coming back. three hours. try that sometimes the gate that no one could leave, no one could leave. >> a weather delay >> they -- >> a weather delay, if you sit in one of those, that will expand your time, andrew, like forget five hours. >> i know. >> if you sit on the tarmac for an hour, two, three. >> got a little scary. some funny -- everybody on the plane was nice the flight attendant was amazing. it was a united flight passengers were volunteering to be the unruly passenger. i will be the unruly passenger they have to take you off. >> i will take it for the rest of the team. >> they'll take you off out on the tarmac.

>> it wasn't you >> no, i wasn't -- no. i was sulking. i was sulking but when i did leave i told the flight attendant you are -- >> amazing >> amazing. >> you feel for what these people have to do. they are tasked with -- >> pilot said they've never seen three-hour wait for a gate whew coming up. like watching an episode of "squawk box" sitting with a mask on we just drove around kept driving around to move out of the way ♪ a three-hour tour ♪ >> we're moving. several new bills in congress aimed to break up big ogch companies like facebook, gole, amazon we'll take you live to washington right after the break. hey lily, i need a new wireless plan for my business, but all my employees need something different. oh, we can help with that.

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the house judiciary committee expected to mark and vote on a number of tech bills to break up google, amazon, facebook are speaking out. i wonder, ylan mui, whether the rare bipartisanship might rear its head on something like this that we don't see. the tech companies aren't -- can't fall back on one or the other parties protecting them at this point >> reporter: yeah.

we are seeing republicans and democrats come together on this, but the companies are fighting back they're saying that this package of bills could mean the end of their most popular services or at least make those services a lot less convenient. google maps, linked-in, even find my iphone could all take a hit. this legislation covers companies with a $600 billion market cap 50 million u.s. users or 100,000 business customers a month only apple, amazon, facebook, google and microsoft actually meet all of those metrics. there are six bills altogether and each one has a slightly different target there are bans on discrimination and self-preferencing. new standards for acquisitions bright lines between different parts of the businesses, even an increase in merger fees. lawmakers say that piecemeal approach helped them build a broader coalition. david cicilline and representative buck introduced this together. each bill has a democrat and

republican co-sponsor. progressives, moderates are in this as well the white house weighed in the president is encouraged by the bipartisan work to address problems created by the big tech platforms. these platforms have transformed our daily lives and showcase our country's ingenuity and pote potential, but they also create real problems for users, small businesses and for tech startups we are expecting the committees's debate over these all day and maybe into the evening. then we'll find out whose strategy will be the most helpful. back over to you guys. >> i thought we were going to have a debate on the set that would last all day into the evening. i don't know what that means for what we're going to see. >> "squawk box" at bedtime >> one thing that just occurred to me, i know sometimes i take the cynical viewpoint, but so only companies that are really successful do we really care

about. 600 billion. if they've built up a company to a market cap of 600 billion, then you're in the crosshairs. if you suck like ge, eastman ko kodak, hey, keep doing what you're doing you guys aren't competing with anyone you see what i'm saying? why is that a metric that we use to go after them. >> that will be a point of contention that's going to be a point of contention during the markup today. why the $600 billion threshold why not 500 billion? why not $700 billion that's certainly going to be one of the questions, the metric around users that's going to be debated as well that brings up the broader point. is this really about rethinking antitrust or is this really about going after a handful of big u.s. companies because over in the senate the leading voice there is senator amy klobuchar. she's the chair of the antitrust subcommittee she came out with her own bill that took a sort of more comprehensive view of antitrust

that changes the burden of proof, it changes the risk standard for when mergers should be reviewed. that could affect more than just the tech industry. that could affect financial services as well what the house judiciary committee is proposing is really about just those handful of companies and that is going to be up for debate during the many, many, many hours of this markup today >> because you know, ylan, if you have a market cap of 600 billion, it's very likely your founder has one of those bil billions, hence, the left has a major problem with that person we're going to see that. anyway -- now i'm editorializing joining us for more, carlos watson >> isn't that a given? >> it's implied. >> special. >> aussie co-founder and alex campowicz. cnbc contributor alex, i saw you nodding when i

said those nasty billionaires. i know i can get you to agree with that. carlos, i'll start with you. my suggestion for you and your business efforts, 599 mp get to 599 billion and then stop. does that make sense to you? >> i love that as a safe point, at least as a starting point and then we'll have a beautiful 18-month run after that. look, i think part of the regulation move is coming. you and i know it's based on economic concerns but certainly what happened in and around the election, what happened in and around january 6th as well as some of the criticisms about social media's maybe more addictive nature, particularly with young people and others i think all of those things are coming into play we talked about that like we talked about microsoft in the late '90s. we have a different animal here. it makes it, i heard you and andrew talking about it earlier, becky talked about it as well, it's tough not a black and white.

you appreciate the innovation and good services. you also know they're having massive societal impact. not all of it good not all of it clear. not just business but societal impact as well >> alex, reading a lot of your notes, i think -- don't you think if we're going to go the european route for antitrust, shunned we admit it's customers we're worried about, new entrants, competitors, job losses when other companies put less agile competitors out of business just admit it if that's what we're heading for. in the past it's we protect consumers and customers which is a different mind set >> i don't think we will go the european route nor should we what we pass will be much more narrow even though the white house is on board with the whole plan at the end of the day i don't think we get here if it isn't

for the small and medium-sized businesses big tech has been using the market power to squeeze them out. at the end of the day, the life blood will be the small and mid-sized businesses i think you're right we're seeing an expansion of what antitrust means in this country. that's what this debate is about today. we want to keep it narrow like we had in the 1890s or do we want to make it more broad and that's what these bills represent. >> alex, being completely honest with what we're talking about. how much of the income inequality debate and the way that the haves versus the have notes benefitted during the pandemic we've seen that number we've seen they've added it up, the net worth of the top 100 people and how it increased during the pandemic. how much of that is factoring into sort of just the overall feelings for these companies that shouldn't --

>> that's a huge part of it. i think that's part of why you're seeing the democrats put it forward it's part of their platform. they're looking at this stuff. i know we can have a debate whether that should factor into the anti-trust stuff or not. it's a big part. it's a big public policy thing the last thing i'll say, i'm not in favor of keeping jeff bezos in space we'll let him come back. >> right we saw when matt damon got stuck up there, you know, without food >> good movie. >> making potatoes we're not telling bezos he needs -- you can't stay up there. he's got to come back. >> that's right. >> carlos, you mentioned january 6th, which i don't know how you tie that into it, but -- i do know how you tie it into it. what i was just eluding to, a lot of this, is it envy about what the haves or the billionaires have? a lot of it, pension plans,

401ks, benefitting in the increase in amazon's price, increase in facebook it does get spread to more than just the founders. >> you know, joe, i don't think we would have had this if two things weren't true. one, president trump wouldn't have been banned at several of the platforms. that brought several republicans into the conversation. you're right the pandemic growth of some of these tech companies, the tremendous growth has brought about a certain level of concern. the opportunity is not for congress to piecemeal four, five, six bills but maybe a real need in laying out a larger roadmap going forward. i think there could be benefit from that in the same way you saw around welfare reform in the '90s, you saw around the balanced budget initiative even though we're talking about the congress and the 16 month investigation into it. in a weird, unexpected way, this

may be a moment where google and facebook, amazon, others may want to see the white house play a bigger role than congress. >> well, we'll end on a positive note it's bipartisan. we've got that going for us. >> yeah. >> both sides are -- cross hair from both sides on the back of these companies. alex, thank you. carlos, good to see you. >> good to see you again. >> see you later. >> take care. >> okay. coming up on the other side of this break, the debate over the return to office buildings companies starting to crack down who works from home and who comes in we've got details straight ahead. as we head to a break, check out the u.s. equity futures. w doup 60 points s&p 500 up a little over 2 points, nasdaq up 11 points. jobs for people like james and lacey and me.

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still to come this morning, what one of wall street's biggest banks is requiring of office workers and clients i bet you can guess. get a check on commodities you've got oil, gold, bitcoin, corn all pushing higher this morning. bitcoin up nearly 5% after dropping under 30,000 yesterday. last couple of days the dollar index is under pressure. that may explain in the commodity prices that are

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morgan stanley told staff yesterday that workers and clients not vaccinated will be barred from returning to new york city offices starting july 12 employees not vaccinated will have to continue working remotely this will allow the bank to lift mask and physical distancing in the offices. joining us now, let's talk about that very story. you see these companies hesitant to require vaccines. now a few are coming forward

saying you can only come to work if you are vaccinated. i keep trying to find out ifs that a reward or punishment. >> the challenge we have is a mindset challenge that they are viewing it as a punishment to come back into the office and they should be viewing it as a perk for social and emotional and career and income growth the vision of the ceo is saying if we are going to be able to compete at a local level, we need to have people together in the office for on boarding new employees and for comradery to make sure people stay around >> i kind of go round and round. it's great being in the office and not be trying to work in a closet at home or a spare bedroom. the commute is not so great if you live in one of the big

cities we've had a lot of discussions about this i'm not sure how to come down on it, especially when you look at the summer and it would be nice to be off somewhere else you think that all changes in the fall >> i missed that chapter in the life book that said we get what we want. part of what we are doing is, we are going to work and someone is paying us. part of that is we are in agreement that i'm going to do what you ask of me and i'll return to work we have lifetime lows none employee buts that going to change we are seeing that whether companies stay in business, go bankrupt or new ones emerge. there will be a time people are paid a little more to go in the office or choose to go some place else the best thing is freedom of choice if you don't like what your

company is doing, you can leave and go to another company. you were talking early about competitive advantage versus amazon this is a social issue companies will offer some remote, others will say get the heck in the office >> tom, i want to go back to the question of mandating vaccines i have been on this issue now probably over a year i'm a big mandate mandating vaccines in the office place i applaud them for doing this and standing up. maybe some employees will end up suing them we will see. if you believe ultimately, if you are the boss, you should be mandating the vaccination? >> i do. i believe mandating the vaccination is safe for the majority we did a survey at my company with just under 300 employees.

92% had the vaccine or are planning to get it by july 12. that date of july 4 is the first step and labor day is the second step the ceo believes the majority of people -- the big point people for get. number one, the vaccines are 97% for moderna and pfizer that still leaves 3.5% of nonpr nonproof of being safe children under 16 have not gotten the vaccine, if they have kids and they get it and carry it back, that's a krob when the majority of employees have the vaccine shouldn't be hurt because they are the reason things are opening up again. >> i want to talk more about it. you wrote a column on linkedin

that was thoughtful. we've had all this discussion about diversity. you are saying we should be inclusive 360 days a year. >> i was a little nervous about it touched a couple of hot buttons. my thought was, we can all change our logos to rainbows and talk about pride month but if people still feel isolated in that month and 11 months a year, have we really accomplished something. if you have one person who is lgbtq and they feel at peace in your company, that's better than having 100 people who feel isolated and not part of the culture and that's terrible. we need a company where people

can feel comfortable a, most importantly, to be themselves and two, if they are guy or any lgbtq, they feel comfortable to come out that's the football player on the raiders recently and these stories that just make it okay to talk about stuff. if i've got a reputation of being a straight talker and making people feel comfortable to say what they are thinking and they shouldn't have dialogue about it and should feel like they are going to be sued for having open dialogue in the work place. >> everybody should be comfortable to be who they are and show who they are. >> absolutely. >> great to see you. coming up, former nyse president tom farley with us later, a big line up to come including the ce

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fed chairman powell calling a kol am the bouncy ride on crypto going negative on the year we'll talk about that much more. the ceo of glaxosmithkline shares business strategy the second hour of "squawk box" begins right now good morning welcome back to "squawk box" here at this hour on a tuesday morning, the dow will open about 32 points higher the nasdaq up and s&p up a margin did i say tuesday morning.

we are not on tuesday morning. it is wednesday. >> it is wednesday >> here is what's making headlines this hour, if i even knew what day it was microsoft is the second company to be worth $2 trillion. apple is the only other company to do so, currently worth $2 trillion wa warby parker filing to go public it may not use the traditional route. also mulling the idea of a direct lifting the teamster's union is launching an effort of unionizing amazon warehouse workers. an amazon warehouse in alabama did hold a union vote but it was defeated, joe. >> yes, yes.

i remember that. i was just googling something, which you'll understand. i wanted to get the exact quote. >> uh-oh >> i know. fed chair jay powell testified before congress yesterday saying inflation is expected to drop back toward the longer run goal despite the growing concern. >> i will say that these effects have been larger than we expected they may turn out to be more persistent than we've expected the incoming data is consistent with the view that these are factors that will wane over time and inflation will then move down towards our goals >> he also said it is very, very unlikely that the economy is headed towards a 1970s style inflation which peaks about 10%.

looking at the comment that said, there is no chance the sub prime mortgage issue would seriously harm the economy with that in mind, fed chairmans say a lot of things. some things are true, some not so true. >> so the markets are moving because yes, there is still that debate playing out along the lines of what fed chair jay powell said with this moderation and waning effect, you are seeing some movement with the idea that if inflation isn't run away, you don't have to slam the brakes to make sure the economy doesn't over heat. with that in mind, yes, you are seeing that tick slightly higher and that gets us back to a hair

below and puts it into perspective year going back to this spring. that is one thing to watch then the bank stocks they do tend to be more levered through. we are seeing jp morgan with a half percent gain. similar moves. city as well for citigroup, we've been calling this trade out it was riding a 12-day losing streak in which it lost 16% of its value riding a three-day winning street watch those big banks. keep an eye on what's happening right now. we are seeing a little bit of a bid for gold about one-third of 1%. copper catching a little bit of a bid here it has been kind of pulling back as of late and freeport and u.s. steel as

well, you can see a lot of green on the screen with the commodity complex overall. we talk interest rates the move higher and the move lower. valuations as well calling on the year to date basis for apple up on the year apple, microsoft and nvidia. you could see tech valuations come back into focus for some traders if valuations do get elevated, maybes that because interest rates have fallen and people will pay a little more. those are the numbers to watch i would say we are also keeping an eye on that differential between what some folks call the yield curve. >> i have a couple really important questions for you with that in mind did you see this

better late than never the back section of the wall street journal today would you expected him to make either one of those putts that you saw in the closing open of the u.s. open? were you blown away? is. >> first of all, i was blown away because those are very difficult putts to make. they are longer and have quite a movement in hind sight, i'm not as disturbed or surprised by it because john rahm has made a career remember the bmw years back against dustin johnson >> he's a gamer. >> even on that course, that first win. the massive putt for eagle on 18 >> his passion in taking the mantle and everything else his passion has worked both

ways his temper and everything. do you take any satisfaction of bryson dechambeau just blowing up >> we've had a lot of conversation in the news room here there is no shock here for me. >> really? >> there's not if you watch the back nine of that leaderboard -- >> normally there would be >> he's so -- whatever really you are not on the brooks koepka side of things >> here's what i say, with the number of names on that leaderboard. everybody had to make a move somehow. >> let's end with how cute was that little baby on father's day, john rahm's baby? >> so cute

>> i guess his brother was his college coach. >> both arizona alum >> comradery he brought his wife and the baby to watch him when we come back, bitcoin's brief drop reigniting more talk about the potential of more down side china's crack down on the country's crypto minors. talking about how he sold most of his bit county because of that china crock down. we'll talk to tom farley about this wild swing we've seen after the break. before the break, let's get a check on the markets the dow indicated up about 30 points nasdaq indicated up close to 9 points s&p up by ouabt half a point stick around "squawk box" will be right back.

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right now the crypto market cap is just over $1 trillion less than 40 basis points of global network the only way it becomes 3%, 4%, 5%, so we are going to get regulation >> that was yesterday discussing

the price of crypto amid a volatile streak. briefly dropping below $30,000 bouncing back throughout the day. deuch coin and others causing concern. crypto winter joining us on his take tom farley with us former president of the new york stock exchange curious to your reaction to the move in large part as a result of what china has done and the context of what we have heard out of the fed >> good morning, andrew. great to be back i t i think novo -- i like the way he thinks about it as a trillion dollar market cap. i like to think of it as a sub

trillion market. the big place is gold now. i'm kind of sang win about them it is very volatile because it is new i have no doubt it will go up and go down. i think it is lower left to upper right trend. i think this thing about energy usage is the conversation but i think it will be resolved. i think the blockchain adds to efficiency and will add to energy efficiency over time. >> higher highs and higher lows usually mean something goes up to 50, pulls back to 40. doesn't mean up to 20,000 back to 2,000

65,000, back to 8,000. you see what i'm saying? >> higher highs and higher lows can be something people would ride out why would you ride this out? >> cramer said yesterday, i'm out. >> i heard his comment and i tuned in and i hoped he would discuss it he didn't. i hope we can talk to him. i didn't understand his justification. he mentioned china >> china is cracking down on bitcoin and anybody who wants to trade it if they crack down and they are one of the biggest traders >> bitcoin is global >> he said no one hates it

everyone still says -- they are like you >> i understand. there is always something really smart of what he says. lower left upper right. >> to me, there is a couple of head winds potential china being one, if you take china completely out of the game, what does that do and do other countries follow we have not figured out what the united states government is going to decide to do. especially now as some of these funds will be allowed inside 401 k programs i image inn this will force the hand of regulators on something. the final thing i want to mention, is the energy piece on that i don't disagree with you at all in terms of the energy component. bitcoin itself requires so much

energy, it is preposterous how much energy it chorequires for all of the companies out there screaming about esg and this and that and the environment, i don't understand how they can get behind this in a meaningful way now or any time in the near future >> there's a lot in your question to unpack let me quickly bitcoin is global. the users are global even if you had an entire crack down in china, it would be huge. bitcoin is an important innovation all crypto currently but in particular bitcoin at the moment with respect to the energy efficiency, about half of the energy that goes into bitcoin is renewable. you'll see different estimates not only is it renewable but often times it is at waste

it is energy that otherwise wouldn't be used the minors have places they can flip them on and off there is really no environmental harm you'll see advancements that make mining for bitcoin more efficient. if we don't want to use energy, we should stop all innovation. >> tom tom. >> if you believe the blockchain itself is an interesting tool and it is going to be efficient, you have to bear some increase in energy use. >> tom, i want to disagree with you wholeheartedly on the facts. which are to say, 50% of bitcoin, i do not believe and i've seen the numbers you are referencing are clean energy i do not believe that. i think there is a lot of data

that suggest that currently is not the case i think it is a goal a goal on elon musk, i believe if it were true, he'd be back using bitcoin tomorrow i want to put that on the table. >> you are saying what elon musk is doing in cryptocurrency is rooted in the facts? and his use of deuce coin is rooted in the facts. >> i think we hear something quite different. two. etherium requires so much less energy than bitcoin, it is not even funny >> one bitcoin transaction is on the order of 750,000 visa transactions like 500 hours or 500,000 hours

of watching youtube. the idea -- i agree, some things are going to take energy some are more energy efficient than others. there are remarkable things going on in blockchain, not crypto but blockchain that do not require the energy if you are a i black rock and you are going to come on our air and scream to companies about the environment. ifs that the position corporate america and the investment community is taking, bitcoin, i would argue to you, is not in keeping with that. >> i think you are underweighting the importance of economic freedom to be able to go buy bitcoin and not be scrutinized. look what's going on in nicaragua right now.

you can go buy bitcoin and leave that country with just a pass word memorized in your head. i understand, there is a good energy use whether it is 40 or 50, you and i can debate >> moving on from the energy the green angel. when does it become less correlated to a risk on trade? even when it appears that the central bankers are going to go on forever, which should play into bitcoin's value if risk assets go down, it goes down on the same day you hear the first rate increase is going to be late 2023. it goes down with the meme stocks and speculative stocks. when does that change? >> is that any different from

most asset classes right now there is so much money sloshing around >> what happened with gold we have the world blowing up in all these different areas. we have this guy in iran and god knows what he would like to do things in the middle east heating up again all of these things and gold is at 1,700 why? >> there is so much money sloshing around and it is lifting boats. >> why is gold going down? >> i don't know. i don't know okay folks. this conversation debate is not ending and tom is not going anyway we'll continue it. coming up, glaxosmithkline ceo getting ready to update. before she does, she speaks to "squawk box. before we go to break, which

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trivia question. ibm, big blue received 130 patents for the year >> investor warren buffett, in 2006, he pledged to give away all his circuberkshirage way shs he's made contributions half way to his goal. he kind of lays this out in june 2006, he had owned $400,000 shares. he owns now half of that the remaining shares are worth billions he's given away half of his berkshire hathaway shares.

the half he gave away, if he held onto it now would be worth $100 billion the age old question of when do you give it away or hold onto it he said he's half way to his goal he makes a lot of comments about fil philanthropy he says he is resigning from the board of the bill and melinda gates corporation. he says they have his full support and his participation is in no way needed to achieve those goals. the five foundations he's given away to are one of those run by his children and one by his late

wife susan thompson buffett. he makes a lot of different points here he said it will likely diminish over time. brings the point that it is a hot topic. res respect to donors, he'll get imaginative with it. >> becky there is a couple of thoughts. one is -- and i'm curious. by stepping off the board as a trustee and stepping off now, what does that mean about his future donations -- planned donations to the foundation?

unclear to me. >> i don't think it would change it >> i only say that in the context that bill and melinda are getting a divorce. i think there is a lot of question about what the future of that foundation looks like. i don't know whether these two things are related they have said they are planning to stay on the board >> i think it would raise a lot more questions if he wasn't making this donation at the time it leads me to think he goes out of his way his physical participation is in no way needed to achieve those goals. he's making that foundation as

he says that >> i think there has been a lot of questions in seattle. look, it is probably the most powerful and influential foundation in the world. they've given away more money than any foundation. i believe if he did it on inflation basis back with the rockefellers and the garnegies it has had a huge impact on health, even in the past year. what the future holds it may be something people will raise eyebrows at. >> it probably plays to that point and says it is fitting for congress to visit. you will see greater scrutiny about what charitable

foundations will be able to do and what big donors will be able to do in terms of big gifts. >> we've talked about it for a long time. i have a view. i wonder if he's moving to this view unrealized gains that get donated those get sent to a charity. charities don't pay taxes. i think there is a question of whether the country should tax some or get some benefit beyond the philanthropic benefit. i've also seen him make comments he believes the money will do better in philanthropic hands than lowering the debt in the united states. >> he's made comments that

philanthropies can do things governments can't. you can think of them as he does say it is worthy of the congressional review i've always said, they are always complaining about the secretary paying more or less. >> is he distancing himself at all? >> i'm looking at his comment. he makes rirchs and says taxes are important and all of my

remaining wealth and with the defensiveness. >> he says in this case, the $41 billion has led to by 40 cents on tax savings for every $1,000 he's given most of his wealth is tied up. he says most of his wealth isn't in income. >> he used to say, i'm not going to give any money away until later because i can compound it so much better that implies once he compounds it, he will give it away >> something about that that reminds me of my own marriage. i wanted to hold it and she wanted to give it earlier, so we

compromised and gave it earlier. >> he said his foot off the accelerator until his wife passed away and then he said okay, we are going to do this annually he said when i gave it, it was $41 billion. every family has their own decision >> if you are warren buffett, you can say the benefits of compounding. that's a convenient excuse >> it is interesting he's said he's half way there. you are right, i'll hold onto it until later and that day may never come he's doing what he said. there is a huge conversation in this country and is about what we do with the tax laws. it will probably get a lot more attention. >> still to come,

glaxosmithkline ceo talks to us. that is next stay tuned you are watching "squawk box" and this is cnbc buy now, pay later, with plan it. one of the many things you can expect when you're with amex. what happens when we welcome change? we can make emergency medicine possible at 40,000 feet. instead of burning our past for power, we can harness the energy of the tiny electron. we can create new ways to connect. rethinking how we communicate to be more inclusive than ever. with app, cloud and anywhere workspace solutions, vmware helps companies navigate change.

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coming up, congressman kevin brady. and trouble in the air passengers attacking passengers, refusing to wear masks and

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consumer business and growth from the pharmaceutical business looking at the stock price, it has been climbing. it seems like people are welcoming the news you've laid out. >> hi. thank you for having me. we announced a step change in growth and performance for new gsk which is building on four years of comprehensive attention set out to address the performance. we have committed to sales growth of more than 5% more than 10% now and set an ambition for more than 33 billion pounds of sales around the decade which is seeing us through the loss and exclusivity of the hiv drug.

this drug is all about a quality vaccine and specialty medicines portfolio. that is really core to the strategy of new gsk being focused on prevention of disease and treatment. obviously according to our competitive advantage. setting out new gsk growth for new ambitions and the chance to impact positively the health of 2.5 billion people the last area of really focused question on share holder valuation is what's happening with the consumer separation this is a tremendous business we've built up through two mergers and very successful

integrations through 10 billion pounds of leading health brands. we've doubled its profits and confirmed today the demerger of that business both to set two companies up for success because that allows us the strength of new gsk's balance sheet so it can keep fuelling itself to deliver competitive and progressive returns to share holders. an exciting day a lot of focus on the dividend tell us how you are balancing through the new gsk.

it does look at the cut. spinning off the consumer. hard to get the apples to apples we know one. overhang questions for gsk is what's going to happen when the separationcomes. paid out between the 30% to 50% range. we wanted to be as resies and clear as possible for our share holders about what was going to happen to the new gsk. the farmer and vaccines. we've been clear on what that will be in 2023. that will be a 45 pence dividend we are committing to a

competitive and progressive dividend in a 40 to 60% pay out. we've laid out obviously in 2022 with a demerger in the middle of the year, share holders will receive in part that dividend today. we've been clear we expect that to be around 55 pence assuming the consumer will pay out at the lower end range. we've laid it out in a chris call clear way everyone can step through. >> all right we are just bumping up at the end of our time. briefly, the covid effort you've had with sanofe, do you expect that to play an important role given that it is behind the others >> absolutely. remember, covid is far from over i read this morning 2.6 million

vaccines distributed we are delighted to see phase three results come through we are looking forward to play our role now but also as the andemic market evolves >> thank you >> wonderful to see you. thank you for having me on the show meg, thank you coming up, states sending billions back to taxpayers thanks to their windfall from federal aid and help from the wealthy. critics say it proves how unnecessarily the federal stimulus was reaction from congressman kevin brady. all of it straight ahead on

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welcome back more than a dozen states are giving billions back to taxpayers in the form of rebates or tax cuts thanks to a windfall of federal aid or help from the wealthy. this is what a lot of people said might happen. >> some of them said it would happen but a year ago, no one

thought this would happen. starting next week, new jersey will start sending out $500 checks to taxpayers. the state will end the year with $ $10 billion surplus. the checks will go to households earning $150,000 or less giving one-time breaks on certain property taxes a total of 29 states took in more revenue during the pandemic than before. more than a dozen have surpluses they are now returning many are spending on infrastructure, education and pay increases. colorado has a $3 billion surplus and will send checks of $120 to eligible families. idaho has a surplus of $4

billion. minnesota planning $1 billion tax cut and north carolina considering teacher bonuses of $300 each. california has the biggest of all of $75 billion it is sending rebate checks of $1,100 and spending money to pay all the overdue rent the state is also for giving certain traffic fines, which unfortunately we are not seeing here in new york >> robert. you just ruined our wholesalt argument for me and becky.

>> that was not confirmed but it was out there and circulating. you have the bipartisan bill and now bernie sanders going with a more progressive option. i blame robert frank sthoez are amazing. new jersey has extra money >> $10 billion >> and part will go to payoff pension funds. mixing that in, that was part of the criticism they were saying you shouldn't be paying states off for it >> joining us now, congressman

from texas introduced a new trade bill yesterday. we'll get to that. in reference to what we saw yesterday. and i'm talking about something totally acseparate that's the 50/50 senate we saw how many of all presidents, and proposed tax credits, how many are still viable do you think, congressman? >> i will tell you i think we'll be able to block many, if not all, president biden tax proposals. mainly because they are crippling proposals. they'll hit families i think more and more moderate democrats understand if they go home and vote for these, they are not coming back to congress next election.

>> if we don't have a gas tax, how is anything going to be paid for? >> great question. we can find a bipartisan solution on. you just saw a lot of covid money. hundreds of billions going to state and local governments that frankly don't need it that could be used instead for infrastructure in fact, they are banned from using those dollars for roads and bridges, which makes no sense at all we are proposing to repurpose trillions of dollars that won't be spent for years we think redesigning the code that has infrastructure expenditures and doesn't go towards those there is a lot of private capital out there. we estimate we can attract between $300 to $400 trillion to

help rebuild these tax increases are not needed >> you said we can and should pass the bill. everyone has said we will it just feels too far apart i'm not sure it is enough. will we will an infrastructure bill >> yes i'm optimistic about it. it has always been bipartisan. as long as the president says enough is enough, we'll go for it >> step one, what are the needed infrastructures to take? as long as we need that. on the pay forward without the crippling tax increases. we've already seen the

economy -- that we are about $550,000 short than we were last year inflation is out and pay increases by double. we really have to pay investments back. unrealized games and the capital using expenses against their taxes. >> everyone should pay their full taxes, as you know. the story, the bigger story here is how are you leaking the private tax information of

taxpayers -- >> congressman, we can have a debate about that or not -- >> and i disagree with this, propublica's views are wrong we want to encourage those who can invest back. >> but they are not paying taxes. but some people are genuinely not paying >> they are not paying it on their wealth, nor should they. >> it is a longer debate congressman, i hope we get a chance to do it again. >> it is what is going on a lot of topics i want to talk to the congressman about

>> okay. when we come back. a lot more on the big hour ahead. faa administrator talking about roudy passengers and canceled flights and dr. scott worries about the delta variant and a new study looking at the covid origin more coming soon

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good morning jay powell acknowledging some hotter inflation measures. he says about inflation like the u.s. saw back in the 1970s, quote, very, very unlikely and breaking this morning, warren buffett resigning from the gates foundation and says he's half way towards a multibillion philanthropic goal. and violence incidents happening in air travel. talking about what can be done about it the final hour of "squawk box" begins right now

good morning welcome to "squawk box" here joining us this morning, tom farley i'd like tom, to get your take whether this is still the fed basically ruining price discovery with all the qe. we don't know or whether this really should be i also was just wondering if you think we should be taxed on realized gang. it is just something we must do.

>> i have behaved myself and bit my tong. he's just proposed a new tax on the interest you new loans i was sitting over here ready to burst. i can't do it anymore. >> tom, we've been texting we have to talk about unrealized gains with philanthropy. and the interest/expense issue on loans against collateral does get interesting and is worthy. i am not a fan of wealth tax but there are certain things that effectively create a loophole in the system but are not in the spirit of the system

>> i think it is bananas to tax charitable contributions you've just created a bigger state lessee fishent to getting help to those less in need i think it is not only a bad idea, i think it is really harmful to those i know you and i want to help the most. i absolutely understand that and recognize there is damage related in certain ways to it. what i suggested to you -- i said, look, if you want to give away up to $5 million annually, taking stock and sending it to a charity, it should be tax-free and you should get the deduction. perhaps after $5 million

annually, there should be realized gains otherwise, that means every w 2er out there is subsidizing the tax and giving them the control that a w 2er should not have >> it can feel good to say tax the rich to some people. give me a charity you support. harlem rbi, breast cancer foundation what happens the next day? >> there are a lot of fabulous charities. but what about all of the school systems crumbling that are not being paid for by the charities. at some point, you have to say we are a democracy we have to pay for what we are doing. we live beyond our means to begin with we take on remarkable debt every

year just to live, this country does >> are you referring to schools? >> to say people of great wealth should not be contributing to that democracy in some way and they are to some degree through philanthropy but to not do it through the democratic system is a question mark we should debate about and we are doing it. >> this is america the school systems by and large are funded by states and localities we are talking federal number two, you talk democracy in this country, we don't rely on the federal government to take care of everything. people have a lot of money given back warren buffett. >> god bless him >> we shouldn't tax him and look to the federal government to

help those who scant make it on their own. >> we should leave it up to individuals to take care of everybody because you believe the government can't that's an argument the truth is, we have a democracy where we are relying on the government to provide a lot of services we can't pay for and the truth is the wealthiest of the government are paying for that i'm suggesting there are parts of this in the spirit of it. people are taking out loans against their own stock so that we pay our own taxes but then use that money to live >> andrew, you have in the past recommended a wealth tax >> i have not ever recommended a wealth tax never. >> let me restate -- >> an estate tax at the end of life, no question. you can call that a wealth tax the idea of what ee liz wedge

warren or aoc have suggested taking a piece every year, i think that is absolutely wrong and doesn't make sense i think the government -- the system will work better done at the end of life if it is done at all. there are parts of the system that are not working to say it is working is impossible >> what do you think happens the day after this policy is enacted? >> first of all, most people don't have $5 million to give every year so not much. >> i disagree. >> i'm not going to win this argument in general, i believe in fewer taxes, a simpler tax code and

efficient government >> i know youdo. i'm not arguing more taxes on the country. i'm just arguing we need to come up with a better system. we'll get back to this conversation in a little bit when we return, we'll have more from the faa administrator about all of those unruly passengers on fghlits joining us to talk about proposals of how to handle that. we'll be right back. what happens when we welcome change? we can transform our workforce overnight out of convenience, or necessity. we can explore uncharted waters, and not only make new discoveries, but get there faster, with better outcomes. with app, cloud and anywhere workspace solutions, vmware helps companies navigate change-- meeting them where they are,

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welcome back, the faa is beefing up effort to bring order back to the skies. joining us with a special guest. good morning >> let's bring in administrator for the faa. joining us live. yesterday, you announced you have proposed fines totaling more than $563,000 despite many of these being more than $10,000 to $15,000 fines, the problem seems to be getting worse. how frustrated are you right now? >> we implemented as you know, a

zero tolerance policy about unruly passengers. as a former commercial airline captain, you don't want me distracted by situations in the back of the aircraft zero tolerance and we are reaching out to the public we are reaching out in ways through your show and social media. we have to correct this. we have the safest aviation system in the world and we want to make sure that it stays that way. >> we are showing video right now of just one of the incidents. there is no shortage of these. more than 60 cases of flight crews being physically assaulted by passengers. as a former captain, when you see that video and you see someone haul off and hit a

flight attendance in the case or throw a small liquor bottle, what's your reaction >> as a captain, you are responsible for your flight crew this is about following crew instructions whether fastening your seat belt, putting your tray table down or complying with the rules around face masks. regardless of the circumstances. it is not acceptable bad behavior doesn't fly >> why not a no-fly list there is a concern about someone being a potential terrorist. i know you can't call someone who won't wear a mask a terrorist. but why not tell these people, you've lost the ability to fly

for the next year? >> back in december, we had an event where we leveed a fine of more than $252,000 for an event on an aircraft we continue to announce these cases as they go forward there can also be jail time with these assault issues we have the bottom line is, you've got to follow the instructions of the crew if i'm your captain, you don't want me distracted you want me focused on things like weather and fuel and getting to the destination safely that's what we've all go to work together on. >> have you had discussions with the head of tsa or others in washington about the possibility of a no-fly list for those unruly and physically assaulting flight crews >> it has been the practice really throughout the last several months, the airlines are

actually putting passengers on internal no-fly lists. i have regular dialogue with the tsa on the no-fly list that is not within the purview but certainly interested in as we go forward. >> steve, why do you think there are so many more incidents of this happening we all have our theories but what is yours? >> this is about behavior and about -- there is a lot of pent-up demand people have been kcouped up. we are a mobil society aviation is a team sport, passengers have a role to play whether you are sitting in an exit row or being compliant with

instructions the flight crew has been responsible for providing safe and reliable instructions. >> steve, this week, you announced the faa handing out about $8 billion in grants to airports around the country. much of this will go to help the airports whether with rent or hiring and concessions within the airport that have been devastated as passenger levels have dropped you still don't see these restaurants drop how much do you think that will improve in terms of the staffing and the ability of airports to handle more people >> you said it very well our airports are an important part of our aviation system. this is all about making sure our aviation system dincluding

our airports are happening leisure travel will be the longest and we know international travel will be an uneven recovery there. we have to make sure that jobs at parents are preserved so we have the staffing at concessions and elsewhere around the airport. we have all those vendors and airline employees. as we support the airports, really it is about making sure the aviation system is ready for takeoff and ready to recover we've worked very hard at the faa, by the way, to make sure the air traffic control system is ready to absorb the increasing demand we are seeing. >> i want to ask you about the remarkable number of plane cancellations we are seeing. in the context of bail outs.

they said one of the reasons they needed the money was not to protect employees but that they would be prepared and ready to help the u.s. economy return they needed to have all of the people in place and take the risks necessary in terms of the financial place. now they don't seem to have the folks in place, how do you think the american public should think about that >> it is a great question. the important point here as i said a moment ago is to make sure our aviation system is safe, reliable and ready to ramp up operations. we've worked very hard to ensure the aviation system from the federal government's perspective, the faa's perspective that they are ready to go. they have a lot to do in terms

of crew training and staffing and we are working closely with them >> the question i ask, is should they have moved faster, especially given the money provided to them in this period? >> i'm not going to speak to the individual business decisions airlines have made we are watching closely from a safety and regulatory compliance perspective. it is important crews are properly trained and that maintenance programs, we've had a lot of airplanes coming out of storage, so a lot of consideration goes into the planning to meet consumer demand speaking of airplanes, boeing has suspended delivery of the 787 dream liner. while they discuss with you the process of final inspection of these before they are turned over to customers. this has been going on a few weeks now but it raises the

question about a relationship between faa and boeing it was strained because of what was going on with the max and that process how would you characterize the relationship now between the faa and boeing >> i have made it clear from the outset that boeing's focus needs to be on safety and producing a quality product. over the last couple of years, they've put products in place. it is something we'll continue to focus on and a message i will continue to deliver to the boeing corporate leadership. >> but real quick, has it improved or do you look at it and say, there are areas that need to get better >> there are always areas around aviation we can never be satisfied. i said we have the safest system

in the world but also the most complex. whether talking boeing or an airline or manufacture or airport, we have to approach safety from a standpoint of hum humility and make sure we are asking the important questions and make sure we are getting better and better. the public's expectations right fully so are that they will have a safe experience on an aircraft and that's what we are always striving for >> steve dixon, administrator for the faa. andrew, we get these lists every week, you read these it's like reading the police files. it is stung every single week. >> phil, thank you for bringing us that important interview. when we return, corona

vaccines for kids and boosters for adults we'll talk to former fda commissioner dr. scott gottlieb about what that looks like ce sym than we do. workday. how do they make better decisions faster? workday. it's got to be something workday. i think i got something. work... hey, rob, you're on mute. hello! hey, rob, there he is. workday. the finance, hr and planning system for a changing world.

welcome back a key panel that advises to the

cdc getting ready to meet. going over benefits and poe tep shal risks for kids. we have more now >> good morning. we are expecting mainly an update on the heart risk issue of those taking the mrna vaccine. detected among 120 million people vaccinated. so rare but we have heard how the advisory committee is looking at this. they'll discuss benefit risk for adolescents or young adults. not so much kids also discussing additional doses or booster shots we've seen the us pick up more to be delivered in the first quarter next year. talking about how and when we'll need booster shots looking at the current situation

with the vaccines and how we'll use them down the line >> what is the latest thing in terms of booster shots do you think we'll be getting them this fall or further down the road >> what a lot of folks are saying is that the most vulnerable and people who got the shots earliest might be the ones to first get boosters we are talking elderly people in nursing homes. for other people talking with the vaccine scientist also on the advisory committee, he thinks it might be a few years i'll be curious what scott gottlieb will say. they are discussing that >> joining us now to talk about more from today's meeting is dr. scott gottlieb, he serves on the board of pfizer and illumina

explain. board member of pfizer, obviously it is an issue there what does this mean? >> it has been an issue already. those involved at the government level have indicated they think w there will be boosters for some is individuals i think we'll see advising those more vulable and further out from completing the original course should get a booster shot at some point this fall. i don't know how they'll break that down. asking me to guess, i think it will look something like if you are over the age of 60 and have one or more risk factor and you

are six or more months, pick your time frame, then you should get a booster. i don't think it will be a broad recommendation that everyone who got vaccinated should get a booster. >> is the booster going to be any different or just another dose to make your antibodies kick into high gear again and get ready for what's coming up does it give you protection from other strains or more the same >> it looks like it will be third dose of the existing vaccines the mrna vaccines do seem to be effective against the variants no reason you want to switch and lose some of the protection you are currently getting from the existing strains that are circulating. i do think it will be the exiting vaccines the data shows so far we've seen

publicly that the response from a third dose of the existing vaccines does look to be he have kay shus and you get a broader response higher levels of antibodies than after the second dose and broader response with more response that should be more protective against some of the variants circulating moderna has put out some data. some small series of getting a third dose does look beneficial. >> scott, there is an article in the journal, the opinion section. are covid vaccines riskier than advertised concerning trends on blood clots, low platelets then in the main body, why they go back to talking vioxx and swine flu.

they sort of conflate those for no reason, just saying those happened in the past that didn't sell me on their basic point. the point i see, what are they talking about now? i don't know how many million you are talking about. you would know something now unless it is some long-term effect the data shows that this is a very safe vaccine. however, when you are taking mandatory vaccines we've been talking morgan stanley and others, even if it is a 10th of a thousandth of a percent is where it gets sticky and what about people who have had covid, why should they be forced to come back to morgan stanley to get a vaccine and you

don't necessarily need to introduce the vaccine? >> we do believe the immunity you get through the vaccine is more than you get acquired i don't see a lot of businesses mandating the vaccine. some health care and hospitals are doing it health care workers have to get flu, chicken pox and hepatitis b. it is unclear why health care are treating this any differently other than it is putting health care workers at risk >> right now, it is still emergency use authorization. maybes that the difference, scott? >> i think when this gets a full approval, i think that could tip the balance for some i don't think it will tip the balance for nonhealth care businesses what i'm seeing mostly is some being able to mandate it

i think large corporations will be reluctant to mandate as a return to work tool. i see some businesses saying if you want to return to office, you have to be vaccinated but they are providing accommodations for those who don't want to. >> making mention of this that got top billing that sted on 310 billion doses, there have been 321 cases of minus row -- myocarditis. i read that and am thinkings that effectively zero. like 321 people could gethit b lightening >> look, the cohort of people we are concerned about are younger

people people are 16 to 24 where most cases are observed this seems to be affecting young people particularly males 80 to 20 percent are males 300 cases in millions. that's about a rate .001%. looking at the rate consider coronavirus it is about 2.1% >> sounds pretty safe. >> say 2.3% if you did get covid, how many myocarditis cases would you have with the virus? i didn't do the math but it is a much greater number. so you are better not to have covid if you are worried about myocarditis, right >> look. the vaccine is a definable risk.

getting natural infection is an unbounded risk we are learning new things about the natural infection every day. >> thank you, doctor you need no introduction or goodbye, doctor. well-known pro democracy newspaper in china is shutting 'lwn as china puts new pressure. wel get a new report with the latest details stay tuned you are watching "squawk box" on cnbc sales are down from last quarter but we are hoping things will pick up by q3.

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apple daily, that's a prominent prodemocracy newspaper in china shutting down. joining us now with the latest from beijing >> this is significant move. this is a 26-year-old tabloid paper really seen as an insurance institution of prodemocracy thursday, the paper's current said it had to close due to current situation in hong kong the move comes after 500 police raided the offices of the paper

founded by media tycoon and fierce beijing critic jimmy lie who is currently in jail the paper's financial assets were frozen. columnists were detained for violating the year-old national security law allegedly for clueding with forces the media scene in hong kong has been famous here for being very robust this is the first time media arc k articles are being sited this comes as hong kong is holding a trial of a protester who is really seen as more of an average protester and not really somebody who has any big name.

cook, who had ridden his motorcycle while flying a flag with a protest slogan now banned in hong kong and ended up colliding with police. that trial is being watched now as a test for the dozens of other regular protesters who have been arrested or in some way punished because of this national security law. >> you are reporting this story for us obviously very effectively just wondering, is this story being reported in china? do the chinese people -- are they hearing about this shut down are they going out over the airwaves in china? >> definitely not officially on the air waves there is absolutely no coverage

>> you are not on right now? >> right now, we are on. were you walking on shaky ground, i think. >> i bet i didn't want to bring that up things are adding up for me in terms of -- yesterday, i saw a senior official in the ccp said the wuhan lab not only had nothing to do with covid but should be awarded a noble prize for sequencing the genome. >> did you see what the sequence lab reported gottlieb tweeting too saying this is more evidence of the lab theory >> i saw something from a former professor who said it is possible to occur naturally but it is weird and saying with a

straight face that the united states created it in a lab here. you wonder about that. that's probpaganda squared and o say that with a straight face makes me think this is going to be a tough future as far as relations between the united states and the ccp >> yes but you'd be surprised because here in china, that propaganda effort -- as you would call it, from the chinese perspective, they just say they are speaking the truth. that effort is very effective here there is no shortage of people who are pointing their finger at the united states and saying that the us is the one that hasn't been truthful that this could very well have come from a lab in the united states and there is constant

citing of the out breaks of covid coming before december of 2019 in other countries including the united states as well as italy. that constant chatter here has been quite effective among the population here. >> okay. thank you. you do a great job thanks for walking that fine line when we come back, we'll get jim cramer's first take on the trading day ahead and warren ab buffett and what else he's saying about taxes stay tuned

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us now jump ball for you. we could go back to bitcoin a day later. curious where you land we've seen some reaction maybe the trade is returning backwards. what is happening? >> it seems when people buy it, it comes down a little i think there will be some profit taking. other than the banks, i think there is a lot of talk every bank will be doing this. it won't be as cold as the public this is the backlash which is that employers are taking care of this. probably where 50% of new people will be getting new strains. i've got to take you, your discussion today with farley was

electric i love it. between people who are haves and have notes >> we'll talk to robert frank on the news and his giving. what do you think are unrealized tax gains and that they typically don't go taxed at some point, where some of that should get taxed and where people who have unrealized gains to use it as collateral. incentivizing it what should we do about it >> i thought the latter should be taxed to some degree. the blow black i got from the billionaires saying, listen, you take

advantage of it. we should say maybe this is tax evasion. people said the american way, jim, this is how businesses are formed i just thought the billionaires should protect themselves. we are in an ear owe they don't seem to realize the pitch forks are coming this is certainly not procapital it is pro labor. more than the obama administration a lot of the billionaires should be on guard and protect themselves saying, listen, we are going to celebrate that we are billionaires and give things away look out saying that this administration doesn't like you come up with something

proactively so you are not taxed the way elizabeth warren wants to it is not the american way keep the torch, andrew >> we are very aligned on these things >> you and i, there is no distance between each other. i listen to you ever day there is no distance >> thank you >> no problem. >> this is going to get looked at by congress it is a bigger issue it won't stop with the billionaires i think it will be at large charitable foundations what you can deduct going down the line look, it is a fair point it is worth looking at these things and deciding charities have done what they have done. there is a lot being done in

s secrecy. would you be okay with that too? >> there are certain advantages in stock they are not selling the stock but giving it away they are going to come after thes why do they not realize this >> jim, in general, in terms of going back to john locke or thomas paine and property rights and everything else, if you've paid taxes on the income as you've earned it and you're not borrowing against it to fund your income, if you're not doing any of that stuff, your tax rate, based on the money you've accrued and paid taxes on is by definition going to be much lower than looks good in a pro publica expose should we start taxing that again just willy-nilly that you've got too much? >> no. >> that's what i'm hearing from most people. that's what i'm hearing from

people -- >> that's what i think is going to happen, joe, if people aren't careful. i think that's what's going to happen >> i think that's going to happen too >> that's not what should happen, but that's what's going to happen because there's tremendous momentum against people who have done well in this country >> i read it and i said i know it >> the tax was carried forward, weren't counted. >> some of that stuff, in terms of when you leave it, maybe do something with an estate, with the stepping up to your heirs, do something -- >> i like that >> i'm ready for a flat tax where everybody pays whatever. but don't do unrealized gains, don't do wealth tax, don't tax -- >> unless people -- look, there is going to be an assault on the rich in this country that we are in complete denial about we're in total denial about it the haves are under fire >> if the assaulters are wrong and we know, that we shouldn't

say well, they're coming anyway so let's not -- >> one point of clarification, especially in my conversation with tom, i'm with jim in this case, which is i actually don't think a wealth tax is the right answer but i think if we don't button up what i would describe as the loopholes, how much unrealized wealth is not getting taxed because of these issues, then you're going to have a true assault on the tax system and the wealthy that would not be beneficial to the system >> not us. >> my name has been invoked five times here one, i think we can all agree, important to really underpin the confidence in the system is to eliminate croney capitalism. make sure people are paying taxes, increase enforcement at the state and local level, interest and so forth. my debate with andrew was on a single issue -- should we tax

charitable donations in this country? and i think it's bananas to say yes. >> i don't want to do that >> that was the debate i had a single issue >> i want to do what becky said, examine these to be sure they're right. but i think andrew and i were trying to figure out a way to make it so society is more equal. >> go ahead. >> look, the tax codes were the only opportunity elizabeth warren is going to win this if the billionaires try to fight it too much. because america is not made of billionaires we are not an oligarch klepp tock ra si in this country, but there are people who are going to characterize it as that >> i understand what you're saying let me throw out something add additional enforcement officer at the irs so they can audit anybody. don't audit people who are making $50,000

audit anybody who's making over $3 million, over $1 million, whatever it's going to be. do the enforcement there, crack down hard, put the most at the very top so they stop doing things that play in the gray lines where you don't know if it's fraud or thinsomething else that's happening if you crack down on the people who play these games and find the loopholes, they will be less likely to use the loopholes if they're awe difficulted every single year. that's what private and public companies do those of us who are audited are very careful if you know you're going to be audited -- >> scared to death who's not scared to death by the irs? new jersey and new york, i have to file for both, very powerful. we agree on issues about enforcement. >> if you're paying a lot of taxes, you want to see people who make more money than you pay more taxes too enforce the actual tax rules >> exactly that's what i think the oligarchs don't understand is

they are not the majority and they're not protected by anybody. they're not. and they're very tone deaf to what this country is right now and president biden does not care for these people. how do they not realize a guy who is the poorest man in the senate is not in favor of oligarchs? they're tone deaf. >> let's bring robert frank into this conversation too. we got away from ourselves with this conversation, but you've been looking through this and know all of this better than any of us do what's your take-away? >> well, look, i think it was huge news this morning that warren buffett, who has been one of the global ambassadors for fiphilanthropy is looking at calling congress to periodically revisit the tax policy on charitable deductions. he and gates have gone around the world for over ten years preaching to the world's billionaires to give more and also upholding the u.s. commitment to deducting

charitable deductions. remember, that charitable deduction has been a feature of the tax code for over 100 years. even democrats have never wanted to touch that. so the fact that he is now calling for a second look at t that is huge the second thing i would add is that currently to andrew's point, maybe you put an exemption of $5 million, right now the tax code, at least prepandemic, allowed you to only deduct 50% of your income for charity. that was suspended for one year, allowing people to deduct all of their income for charity but the question will be one way to solve this is to say, look, you can only deduct up to let's say 30% or 20% of your income with the charitable deduction. that would allow people no longer to wipe out their whole income tax with charitable deductions so i think this is going to raise a lot of questions about that deduction, of course, step up in capital gains is one way to solve that and perhaps have an exemption, but i think this is a 100-year-old pot si that

for the first time is being called into question i just think that is huge, especially that warren buffett is now among those calling far change >> yeah. robert, great to see you this morning. i think we have lots of days of this very discussion in front of us so we'll have you back soon to chat more about it. good to see you, though. >> thanks. >> okay. want to thank tom farley for being with us this morning ready to -- you'll come back someday? ce on back. >> he won't be back, but we'll be back. "squawk on the street" is coming up after a quick break

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good morning i'm carl quintanilla at the new york stock exchange. welcome to "squawk on the street." record closes for the s&p, the nasdaq, get some fresh legs. s&p needs about 11 points for a fresh intraday high. powell speaks, the market listens, why the fed chair isn't ready to sound the alarms on surging consumer prices just yet. >> plus, quote, rat poison what