and jeff bezos is preparing for blast off and new era for andy jassy it wasn't just a long weekend, but longer. "squawk box" begins right now. good morning welcome to "squawk box." i'm melissa lee. andrew and becky are off today >> we are in times square. not on this level. >> not on the ground level this is big leagues. >> very quiet today for you. what did you do? >> cleaned it up >> sweep of the area you made everyone do into the hotel. let's check on the u.s.

equity futures stock markets reopen after what joe called a long weekend. quiet here longer weekend relative basis >> not long enough. >> friday, all three closed at record highs we settle in as we head back to the morning. treasury yields. 10-year is 1.42% still there. relatively low here. >> you will be here all week >> yes. >> what did it take? >> they asked me and i said yes. >> 3:00 a.m. it is nice you are ready to do this i'm happy you are here you do that great show at 5:00 and individual investment. this is unbelievable this is unbelievable for so many reasons. where is the money coming from $28 billion. >> households have saved >> pandemic savings. stimulus fed.

jay powell where is it going? meme stocks? >> i call them reddit favorites. retail favorites not meme >> crypto. the meme stocks coming back down to the normal price. they are still there >> down relative to the recent highs, but higher than before the whole thing started. what is remarkable in june, retail investors put more money to work than january at the height of the gamestop frenzy. that says this is not a flash. this is after dogecoin has come down not a flash in the pan. >> that savvy rogue gallery list of people on your show i love all of them they are all unique and distinctive and funny. they all have their own positives and not necessarily negatives. who has the best feel? is everybody surprised by this

>> everybody has been surprised. they have good feels in different ways >> do they still use what they used to use to try to decide on with what is going up and down? >> in terms of valuation absolutely you have to look at price momentum and what the market is giving you for instance, based offenn fundamentals, you might want to go amc you can be right and wrong in the market >> how is your twitter feed? >> if i utter naked shorts >> i have seen you do that i have seen the hoopla from that you acknowledged >> that tells you how fervently this group says there is something systemic in the markets working against them. >> i'm glad we have until friday to work out this

crude is one thing and sully has been all over this story crude prices hitting the highest in three years opec and allies. some of the allies are frenemies. talks were postponed member countries voted on 400,000 barrels a day from august to december uae rejected the proposal. telling cnbc that it wasn't a good deal. the biden administration, meanwhile, urging opec and allies to find a compromise to increase production of fossil fuels. the biden administration -- your mother, your csister the minute price goes up, they say, wait. this is negative for the economy. we will have a report from brian sullivan who is so good at 5:00.

do you watch him >> of course, i do >> how do you do that at 5:00 a.m. all that energy. >> exactly imagine him at 2:00 p.m. >> we need to harness that energy they could stop offering services in the cities with data protection law changes that is according to "the wall street journal" report after they could be held libel for the personal information online. users shared percensonal information of police officers so they can be harassed. the government has handled thousands of cases since then. and the sing le largest ransomware attack on record.

revil targeted kaseya. revil is demanding $70 million in bitcoin to decrypt the impacted devices it suggests it is willing to bargain. kaseya said 1,500 businesses have been impacted by the breach we will have more on the story throughout the morning we will talk to kyle handslovan this morning >> i like revil. if it were mission impossible, it would be r. evil. ethan hunt -- you know, i don't want to give tom or tell him how to do his business that may be a good idea. he wants to go into space? >> why not >> he was on top of that build

pi building he had 100 jumps >> he could go to space and a ransomware attack to prevent him from returning to earth. right? check this out why was this bad facebook ceo mark zuckerberg got hammered for this. i thought it was nice. posting a video on instagram on sunday with the caption happy july 4th skimming over on the electric surfboard. i tried to think why the woke twitter mob. 5,000 angry twitter people living in the basement they get mad and "the new york times" says this is the perspective. why is that bad? they said he is trying to act like normal people

>> maybe this is just what he does. >> i'm sorry he made $1 billion. not everyone has $1 billion. >> he made it. >> he is he is. why? >> why do they hate him? >> i don't know. i tweeted out i love this country. i love high school fireworks i love the americana >> did you get hate tweets back? do you mute people >> we looked up how many mutes >> what is the ratio >> i started muting. some people use a block as a bad thing. i got about 5,000 blocks >> 5,000 blocks? mutes? >> a couple month. those are increasing >> that's a high ratio >> i didn't start doing the

mutes. i thought blocking was fun i like doing it. i feel good when i do that >> that's aggressive >> it is >> yeah. >> you think i'm not aggressive compared to these people they say whatever they want. >> that's true >> the anonymous stuff >> you have to take the hate along with the love. >> hair, fatness and teeth >> i don't care. if it is racist or sexist, i will block you that's a warning anything else is fair game. >> that goes without saying. then i have minor things you dye your hair. >> i don't like your tie >> yeah. grounds for suck your gut in >> shirt is too baggy. >> you are laughing at that? you are laughing at that really kyle, my soul mate >> kyle's blocked. >> you're blocked. >> blocked

coming up, shares of didi plunging after china launched the cyber probe into the company that prevents it from signing up for new users. we will take you live to china when "squawk box" returns. >> announcer: this cnbc program sponsored by truist wealth where meaningful relationships matter most. em whoo, what a ride! i invested in invesco qqq a fund that invests in the innovators of the nasdaq 100 like you you don't have to be a deep learning engineer to help make the world a smarter place does this come in blue? become an agent of innovation with invesco qqq does this come in blue? ♪ ♪ ♪ digital transformation has failed to take off. because it hasn't removed the endless mundane work we all hate.

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♪ me and you we are the same ♪ ♪ me and you have all the fame we need ♪ ♪ indeed, you and me are we ♪ ♪ me and you singing in the park ♪ ♪ me and you, we're waiting for the dark ♪ a big developing story in china. didi shares plunging after the

cybersecurity probe. didi shares down 21% eunice yoon has more with us eunice >> reporter: melissa, i'm outside of the training center for didi drivers drivers told us they are worried this investigation could affect their paycheck at the end of the day. for most of us, the app is still functioning regularly. authorities said they will extend the cybersecurity reviews to two companies listed in the u.s. full truck alliance. that is uber for trucks and the online platform. they will look at national security risks and for more on the state media, beijing's main concern is data sovereignty. in the state press, they say data trove for didi and the u.s. ipo in combination is a risk to

national security. the argument is the u.s. can demand to see sensitive data from u.s. listed chinese firms the pressure in congress is becoming greater, which means there is greater risk of the scrutiny for the chinese firms other chinese media have been pointing out why didi and mm is a target it is critical infrastructure drivers. didi has highly accurate maps of china that ymm has details of logistics networks and toll collection the back drop of this is beijing is looking more and more to try to get control of big data here and get it out of private hands so there is not necessarily one big player which is more influential than the government. the communist party paper said

data standards must be in the hands of the state we expect stronger legislation which was discussed by lawmakers recently, will go into effect on september 1st. that restricts the information that chinese companies can send overseas back to you. >> eunice, thank you eunice yoon in china let's bring in gene munster with loup investments >> good morning, melissa >> we have seen this with alibaba and others is this a permanent cloud over this group >> it is as i contemplated the headlines in the news today. there was a sense of vodeja vu had.

there was closely concern when following these companies since 2007 baidu and others this will continue to answer your question. the cloud over these stocks. if i can take us back to 2010 and the big question was around the structure that u.s. in investors actually hold. there was this dynamic that kept investors up at night. they wake up in the morning and equity holdings within the companies would be revoked from chinese leadership that has not happened. things have changed in the past decade i'm not a political position person, but i sense greater tension with the countries i believe that will continue this gets back to your question. when does this end and the simple answer is it doesn't. any investor participating in the chinese companies should take this as these difficult

days and for those that believe more strongly, if you think about didi down 20% to own these companies over the long haul >> how do you work out the discount valuation these companies should have? whether didi or alibaba if they are under the scrutiny of the chinese regulators >> in china, there is 1.4 billion people the u.s. has 330 million you think about the valuation difference of any of the companies, you look at the addressable market if we just take didi it will open at 55 billion market cap maybe the best comp is lyft. didi is exclusive to china with

$20 billion market cap there is an exercise you can do. wi what i would caution investors, when chinese companies talk about companies outside of the u.s., be skeptical of that tiktok is a company with tremendous success outside of china. i've delivered or worked first hand with baidu when they expanded outside to japan or latin america or russia. that never happened. i think as investors contemplate what the right valuation is, you need to adjust these companies are not going to be operating outside. there is good news for some of the investors, of course the silver lining on investment companies that cannot invest outside of china, it is a state-sponsored m ed monopoly.

>> there was a reason to be invested thinking they were state champions. that hasn't p n n't panned out ge gene, if you think about the flip side. the chinese government serious about containing data and in control of the data of the country. that gives china the leg up on ai because of that data. >> it is eunice touched on this on the back end of herpes t her piece it reads more like an action movie than tech headlines. that is, in facts, one of the biggest plays here i'm a believer that artificial intelligence will change how humans s live i think this plays into what is going on with 5g and networks and it is all related.

i think that is part of the tensions when eunice talked about beijing money and more control of data and concern that u.s. would somehow get access to that, keep in mind these companies have been listed in the u.s. for a long time. that risk had been out there it feels different today because of the ai and starting to get into the data gathering mode for these governments. i suspect that this is going to be the invisible political front between the two giants in the future >> gene, thank you great to see you >> thank you joe. >> thanks. melissa, coming up changing of the guard at amazon as andy jassy takes over from jeff bezos bezos plans to blast off here sis a big look at the s&p gainers.

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the torch has been passed at amazon yesterday, andy jassy is the new ceo. jeff bezos is the chairman of the board. grieve grieveances from employees led to issues with the company before running amazon's cloudy

vision, jassy served at bezos's shadow shadow known as technical assistants act as a brain double. offering another set of eyes and ears and copied on every email or flight and help recap the events to prepare for the next one. i like it. you know why i like it >> you do not have a shadow. what would it be like to be joe kernen's shadow? >> i like people to say yes, yes, yes that is what is bad about yes men. >> you think the shadow says no? >> no. that's the benefit that's why bezos is where he is and i think every manager, and i'm not naming names, but surrounded by so many yes men. they didn't -- >> or manager says do this they go ahead and do it without

questioning. >> they do things that they think are right. the worst thing you can have is yes men. bezos' next challenge is the final frontier he and his brother are the passengers on the space flight with great power comes great responsibility no, that was "spider-man." with great power, you need to think about how you are yielding it and if the assssumptions you made everything works out for both people >> you see how bezos' mind works. if you do that long enough, you understand how that mind works

that is an advantage imagine led into bezos' mind for a week. >> i realized i have a shadow. >> is his name max >> no, it's a her. >> your better half? >> suddenly, i never even considered that angle of something. >> that's what it should be. that's what work should be that's what every experience should be. >> i do have a shadow. i just figured that out. >> you are a better person for it >> you have one, too he's not chopped liver >> i question myself constantly. >> i don't need no stinging shadow chinese automaker byd sold fewer ev cars in 2019 than 2020.

reported sales of 93,000 cars in the first half of the year that is double from a year ago, but fewer than the 95,000 in 2019 >> token white on display. >> doesn't that -- >> single best idea. only one best idea >> right the best of the best coming up, return to work. employers scrambling to get workers back in the office putting new hybrid plans in place. we'll talk about the electric vehicle race with former ford ceo mark fields. "squawk box" will be right back. >> announcer: executive edge is sponsored by at&t business our people and network will help keep you connected let's take care of business. yee something different. oh, we can help with that. okay, imagine this... your mover, rob, he's on the scene and needs a plan with a mobile hotspot.

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good morning let's check on the futures here. a mixed bag at the open after the long july 4th weekend. friday, all three indices closed at record highs. the fact we are quiet this morning, joe, could be a good

sign >> unless it is too quiet. no, no too quiet. quiet. the market has been for a while, really, in the last three months, the default move higher. >> grind higher. >> it looks like more money chasing fewer things >> look at the vix 14 and change. >> things can turn quickly as you know >> all of a sudden, crude up and inflation concerns the market on any given day. >> who is controlling the 10-year? remember tupper said the chinese will buy that flipped they didn't raise the band

next thing there is money coming around this is one. do you like the hybrid work model? >> we're here. >> i like being here companies are deciding on how best to bring employees back to the office as we approach a largely vaccinated work force. uber backtr tracking on the original plans and committing a fully remote schedule. the white house planning for a return to work schedule. joining us is shelli boudreax. you think we are never going back you think there is an adaptation or hybrid model? this is a revolutionary tr transf transformation should we have predicted this?

>> i think pre-pandemic, no. it would have been hard to pry ti pred predict. studies show it sttakes seven weeks to form a habit. hybrid work is here to stay. >> there will come a time where called a quitter is not a negative thing someone taking their future into their own hands and looking at the lands escape acape and sayi do better. it gave them the courage or wherewithal to make that decision >> i don't know if quitter is the right word i look at people taking control of their career. the power base is shifting from companies to individuals now with hybrid work options,

people are not limited by the geography of where they commute employers have to work harder to create environments in which people want to work. they will absolutely have more choices. >> what does that mean for -- i don't want to get into it. in terms of making money is travel coming back? business travel will never come back we need to put that into the calculus with the hotels and airlines investments where are the winners and losers for where that is happening? ceos need to think about this. >> yes, travel is coming back. we are still human beings. we still build businesses based upon relationships will it be the same? it will take a while withfor it come back to the same levels before business travel is coming back in terms of who is the winner

andloser the winner goes to people who bring skills to the marketplace. they will have more choices. winners will go to companies that actually are intentional about the environments they create if i just say, okay, you can work where you want and when you want i still operate my company and office in the same way i'll not do very well. the neighborhood of the office of coming to a place to work is now changing it is not just create a space to go to work and be productive it is how do i create an environment where people are collaborative? it is not helpful if the days i come into the office and my team is not in the office i need to be intentional and allow people to know the days i'm in the office and leverage technology and allow the space in the office allows for penople to actively participate. how we think about office structure and how we think about

management needs to change out of sight, out of mind. managers have to include remote and workers have to be more intentional to actively engage and involve. >> the shift in influence to employees to employers, will that help the wage gap as you said, it is for people attractive to employers which will have leverage obviously, we still need to train people for the jobs we are going to have. will we see low-end wages go up so we can stop talking about the wealth gap and income inequality will that be positive if the companies are paying more than before >> first of all, stanford studies show people paid more are more productive. i have a margin to do this right

to distribute dollars where they are important. i don't know if this solves the wage gap that is a deeper issue however, it will create an environment of age pressure for increased wages as employees have more power. >> shellye, are you concerned the opposite will happen the wage gap worsens we found during the pandemic, the lower-income workers did not have the wherewithal to work from home. the higher income workers had the ability to work from home. to the extent they are empowered to work from home more, does thatwiden? >> the flexibility goes to those who have roles that typically can be done remote those are higher skilled roles

we are seeing an upward move of wages. >> would you, if you were a ceo, would you be hesitant to give a speech of go-getters and hu hustlers can they still manage that way or is that a backlash to this point? you could see where the hard chargers, whatever industry you talk about, that was valued. you know, there you have it. i didn't want to call out gorman some ceos saying you need to get back here and hustle if you want to advance in this company are you allowed to do that now >> well, i think making

statements that are saying there's one way to operate is going be a challenge people are looking for multiple choice on how they operate we don't have to go back to the past of this is how we work. we need to come to the office, then you need to say why what is the value that it gains? how do you ensure you are interacting with other people? if i have flexibility, how do i ensure i create an environment i'm not just out of sight and out of mind. we actually increased productivity during the overall pan pandemic has innovation suffered? i believe it has i believe there is value to people coming together in person and bouncing ideas off we need to figure out how we balance that across the board. i think going back to, okay,

roll the clock back. we operate the way we did two years ago. that's a mistake employees have tasted the value of flexibility they want it companies that create that environment and figure out how to drive productivity and innovation and made a hybrid arena are the winners. s >> you are talking about the board meetings >> every meeting, we talk back to the office or hybrid work how do you enable it to happen not just technology, but process. and management skills. management skills are more important in the space than they were before. i'm remote my interaction and my leadership from my management is what i see the most if we end up with weak managers, we will change studies show they leave managers before the company.

>> shellye, thanks if you come back, i want a sh shadow i heard bezos had the shadow telling him no i want a shadow. i want a shadow. i think all managers should have a shadow otherwise they are surrounded by yes people way to go, j.r great idea let's talk about that next time. >> i'd be happy to direct feedback is important to overall growth >> and not be fired with the direct feedback. shellye, thanks. >> i'll be your shadow i'll say, bad idea, joe. >> between 6:00 and 9:00 you do you do tell me you have when you come on. >> no, i don't. >> sometimes you do. >> i do. coming up, new numbers on the surge of retail investors

jumping into the market. later, dr. scott gottlieb joins us forll n update and a reminder, you can watch or listen to us live on the cnbc app. save, spend, borrow, invest, and earn cash back rewards, all in one app. that's how you get your money right with sofi.

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welcome back check on u.s. equity fighutures from the long weekend.

fairly quiet over the week in brent and wti. wti is up $76 a barrel gold is trading higher this is the sixth straight day of gains for gold. retail investors continue to pour money into the stock market investments in june totaled $28 billion. he highest monthly amount since 2018 even the meme stock frenzy more than 10 million new br brokerage accounts were opened. check this out relative of rock 'n' roll royalty represents the united states at the summer olympics in tokyo. the equestrian team with the familiar name on the list. jessica springsteen.

daughter of bruce springsteen. she has trained in riding since she was 4 years old on her famous father's new jersey farm. you have to hand it to parents that watch their kids jump on horses it's very -- i saw a little of it you are on edge of your seat the entire time. some say she was born to ride. >> i like that humor you think that is funny? >> it was okay as my shadow, should i think it was funny? >> i think as your is shadow, if you deliver it on tv, you deliver with verve >> she won't be the only child with a famous father representing the u.s daughter of former nfl quarterback randall cunningham she will be competing in the high jump for the track and field team

coming up, espn assuming the heat from the most recognizable stars. the story getting a lot of play ekd.ocial media over the ween details coming up next

president biden visited surfside and said help is on the way. they're st

disney owned espn dealing with fallouts over comments from a star reporter. rachel nichols during last year's bubble in orlando a new report over the weekend from the "new york times" detailing the remarks from nichols about espn's decision for her colleague, maria taylor, to host the 2020 nba finals coverage nichols said taylor won the job because espn was feeling pressure on diversity.

join us now on the potential fallout for espn, sarah fisher, axios media reporter this is one of the stories where this happened to be espn, but i think across all media, dealing with the same type of issues i don't know if all our viewers are familiar with what happened, so you might give us a brief summary of the story itself. >> yeah. over the weekend, "the new york times" put out this bombshell report, basically explaining leaked recordings of rachel nichols, an anchor at espn, her conversation with a third party, not at espn, about the network giving maria taylor a contract to host the nba finals, something she said was in her contract it is causing controversy. the way nichols framed it said, look, i don't wish this person ill, but she's only getting the job because she is a person of color. now, the issue brings to light a lot of problems at espn. as you know, joe, the network has struggled when it comes to

issues of diversity. it really, really shows that these types of problems are no longer just things you have to address externally they're issues you have to address internally, as well. when you have a leak like this, clearly, it speaks to how frustrated employees are, that people are speaking like this behind closed doors. >> right so what's the lesson to be learned, you know, across the entire media landscape, in your view, sarah? how do you approach this >> so we always say you have to sort of put your money where your mouth is, or you have to actually do the walk, not just do the talk. i think the lesson here is you can do the walk all you want, but your talk has to back it up, too, right it's not just about where you put your money, but it's also about what comes out of your mouth. words hurt people, joe, and they're going to cause this internal backlash. it's bad for the company so every star, every talent, anchor, no matter what, needs to be actively preaching what the

network says are priorities about diversity. if things like this continue to come out from the network, it is facing very long-term damage in terms of how it could recruit employees, how it's perceived by its audience, et cetera. >> wasn't the only story over the weekend, though. sarah, we like to have you on to talk about all the different things happening in media. i saw one of your pieces last week, i can't remember which one it was, but i figured your ears were burning it was a great piece what else was on your radar? we're still obviously watching who gets to go to suborbital space, which you point out we need to make sure that we're not thinking these guys are headed to the international space station. not quite the same thing >> yeah, i think a lot of the media coverage has been so excited about the billionaire battle to get to space that the media could do a better job of explaining to people, these guys aren't actually going to other planets. they're going to suborbital

heights, floating around for a little while and coming back down, which minimizes the risk other things on my radar, speaker sun valley i'm sure there will be a lot of conversations about whether or not redstone is open to selling viacom cbs the other thing is the fallout of big tech, obviously saying they might pull out of hong kong due to data laws it'll be an active week in the space, joe. >> i just realized why some people are mad at zuckerberg you know, you can pick your reason i like the video i like the flag. i like john denver i like what was happening with him, you know, on july 4th but then one of -- a viewer that follows me, i don't know whether that tells you anything, but he said, maybe it's because they're censoring all this -- maybe people are mad because he is

pretending he is waving the flag and trampling all over constitutional rights of a whole group of people. whether it's facebook, twitter, whatever i think people from the more woke side or here's this billionaire trying to pretend it is a normal guy, and he's not. he can't do anything without -- and i think everything is that way nowadays, sara you get it from both sides. >> especially if you're a corporate executive. a ton of people work on his message, try to make sure he seems relatable, et cetera my personal take, joe, is i don't own a fancy surfboard. to me, it felt unrelatable i'm eating barbecue. mark zuckerberg has to be especially careful with anything he puts out, to your point facebook is under pressure with the way it handles things externally, speech, censorship even the smallest thing, like someone riding a surfboard holding an american flag, can cause controversy online >> i don't have one either i've tried just a normal paddle

board, and i lost my sunglasses. i fell so hard on top of it, they flew off and -- i think it needs to be pretty calm water. i think you need abdominal strength i need to work on that, sara that's more information than anybody needs to know probably sara, thanks >> thank you, joe. >> thanks for coming on today. we can talk about anything air travel hitting a milestone last week, july 1st. the 2nd saw more travels pass through tsa checkpoints than the same days in pre-pandemic 2019 how can you play the sector? we have that discussion next

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oil, the fed minutes, and key economic data in focus fn investors on the holiday-shortened week a welcome at what to watch is a ahead. hundreds of companies around the world are left scrambling. packed bars, beaches, and barbecues. will there be a spike in covid cases after the fourth of july festive festivities? dr. scott gottlieb will join us as the second hour of ""squawk box" continues now

good morning and welcome back to "squawk box" here on cnbc don't want to adjust your set. it's not "fast money," not yet, but there will be. >> in about ten hours. >> i'm joe kernen. won't even add that up along with melissa, signed on for four days, and is happy about it that's nice. warms my heart a little bit. it does, and you need to be here >> otherwise, you'd be left to your own devices. >> i would be left. >> the world would be in danger. >> nobody needs that and you are here, so this is not the hybrid work model. you are at the nasdaq, and it's quiet. it's quiet this morning. >> quiet. >> last week was bonkers you get distracted sometimes u.s. equity futures at this hour are indicated down a little bit,

not a whole lot going on this morning in the nasdaq. diverging from the other two, the s&p and the dow, up about 3 points. here's what's making head hines at this hour in china, the communist party cracks down on tech. the latest target, u.s. ridehailing giant dd global. down 20% the app is pulled from app stores in china. cybersecurity teams around the world are working to contain what is called the single largest global ransomware attack on record. the group, r evil, is being blamed for the attack. products are used by i.t. companies. r evil is demanding 70 million in bitcoin to decrypt the impacted devices, though it is suggested it is willing to bargain. kaseya says 1,500 businesses globally have been affected by the breach, and they've met with

the fbi and other officials on the matter we'll be speaking to huntress in the next hour about this take a look at what investors will be paying attention to globless lless claims out thursy fed minutes is out wednesday, joe. >> crazy, dd cyberspace, which is a weird administration to have over in china, says they told you. that's the headline, they warned it, don't do it. don't do it. >> delay the listing. >> dd says, on the other hand, in a response, it doesn't comment on speculation and had no knowledge before the ipo of the regulators decision. who is telling the truth >> as an investor, i would be really upset i would be wondering, who is telling the truth? if dd dididi got a warning, was properly disploclosed

>> they're saying there was no heads-up. >> could be an issue. >> funny how it is swirling around, all these hong kong issues and just the increasing -- this is a cold war. this is the new cold war between the united states and china. >> yes they're targeting u.s.-listed companies specifically their headlines from shxinhua, h chinese media organization, saying it is u.s.-listed companies. >> we're worried about the same thing here with our data they're worried about their data coming here. it is a new cold war, all about cyberspace. >> all about information. >> it is, which is used to make money. everything now is about money. breaking news. neighborhood network in next door, public via spac. a combined company will be listed under the ticker symbol kind, k-i-n-d. next door connects neighbors to

those nearby i don't want that. >> i don't want to be connected. >> good fence. that's why we have good neighbors. the deal is valued at $4.3 billion. next door says the transaction will help the company accelerate its product growth, increase hiring, and expand into new territories. the executives, by the way, behind the deal been on ""squawk on the street"" later this morning. opec leaders hitting an impasse with no agreement on raising production limits. the price of crude right now is higher we've got wti up by 1.7% brent is higher, as well let's get to brian sullivan with more on this developing story. brian? >> yeah, melissa, thanks and good morning i guess call this the epic opec impasse. it's got oil prices at multi-year highs right now, as you just showed. all right. opec was scheduled to meet again virtually yesterday, but they called it off after my sources told me saudi arabia and russia declined to participate in the

video call because they felt it wasn't going to amount to anything what is dmgoing on is complicat, and it depogoes beyond oil. here are the key takeaways opec has a deal to raise output august to december that was all but agreed upon before last thursday's planned one-day meeting, which is now a five-day saga. remember, opec cut production by millions of barrels a day during the height of the pandemic with each member country of opec and opec plus taking a share of those cuts now, those cuts are based on specific baseline levels of what they're able to produce. bring the graphic we just showed you back up. as part of the deal opec tried to get done last week, they were going to extend those so-called baseline levels from may of next year all the way through the end of next year, the end of 2022. now, that part of the deal, not

the output increase, angered the united arab emirates, one of opec's most important members. it argues that those baseline levels do not reflect its current ability to produce more oil. they've spent billions upgrading the capacity, and they want to use it they've also got a new oil futures contract that they need to promote for that, you need more barrels of oil the uae also simply says, look, why do we need to tie the extension of time to our deal to add more barrels let's just split the two apart we agree, add more barrels to the market as soon as possible then later on, we can talk about the timing of this baseline thing. but opec, led by saudi minister bin salman, says it is necessary because the world may not be out of the woods yet with variants, potential new lockdowns, oil

coming back online, and things still being shaky. he doesn't want to overproduce and send the global markets crashing again like early last year like we said, this is complicated. here's the takeaway. having spoken extensively with both sides over the last few days, i can report that all opec members do agree they're okay adding 400,000 more barrels per day to the global oil markets. that's not an issue. demand up, prices up, and the world can easily absorb the extra barrels. so they are aligned with that. if they can agree on this baseline extension issue, we may see more barrels per day coming online if not, if the two sides cannot come together, oil prices in the near term can certainly keep moving higher. the biden administration taking notice, prodding opec to get a deal done, to add more barrels, guys, 5 buck a gallon gas, not

politically palatable to anybody. one thing that hasn't been talked enough about is the market is so worried and flexing on 400,000 more barrels of oil per day, the u.s. was producing nearly 2 million more barrels of oil per day just three years ago. our output collapse has put opec back in the price driver's seat. melissa, as you know, it's benefitting investors. you talk about it on "fast money. 5:00 p.m. eastern. the xop, xle, other etfs, oil and gas stocks, they have all been soaring over the past year. >> top performers for the year, brian. good to see you. thank you. let's talk opec and the broader markets now. futures are flat as stocks get ready to kick off a holiday-shortened week with the s&p at a record high joining us now, managing partner and portfolio manager at d.ccla, as well as a cnbc contributor. we do talk about the "t" world,

transitory, all the time how does this news from opec and looking at oil at multi-year highs, how does it play into the whole notion, that it is something we need to watch >> it is transitory. i think what's going to happen is if you look at oil today, it's back to 2014 prices as soon as you see this happen, joe, oil reaching close to 80, 85, there are so many producers out there that are non-opec, whether it's russia, iran, and then us, as well pause because it's a commodity, the production will come onstable. at this point, the win rerners e the producers. the middle east needs the prices for oil to go down from here is actually not positive, but i do think as oil goes into the 80s, you'll get a lot more production just like we saw last year when oil went to negative

i'm not really concerned longer term, but i think shorter term, this will, you know -- obviously, companies will have to pass prices on to consumers. >> brian was talking about, you know, how much additional oil domestically we were producing that got shut down, and it takes time to bring it back online >> it does, but if you look at how fast it can come on, joe, it'll be pretty quick. some of these drills, i mean, we're in depletion mode. we really haven't drilled for new oil. we still have oil here, and this is why some of the big boys, the chevrons, the pioneers, they're going to do really well. they can produce this oil pretty quickly really at good profit margins, too i'm not concerned about it i just think in the short term, could this just be an additional tax on the consumer just as we're getting our economy ramping up i do think those companies that can pass this through are going to do really well. those that can't, i think you're going to see some effect on

profit margins. >> the ten-year, as we reopen, was supposed to go above 2%, and it hasn't. meanwhile, individual investors plowed $23 billion into the markets last month you saw that on -- in the -- $2 billion, sorry what are we to think about that? the other problem would be if interest rates went up for government funding and for individuals and everything that's not happening either. so it's just clear sailing >> you know, all these signs to me is everything is perfect, and that worries me. we've had since october a 5% correction that's it. last month, the market maximum movement was 1%. i do think we're in a little bit of a euphoria individual investors are coming after returns they probably maybe didn't get the last year i think we have to be careful. economy is in great shape. things like high oil prices and

interest rates which are lower is actually good i do think companies will do well, but we need to be careful. you want to be in secular growth companies, not just chasing the market here. i do think the market is going to be picky as to what sectors are going to do well if you have pricing, whether you're in industrials, energy, and even financials, i think those are going to do well no question, tech is going to do well, too, but we have to be careful. i do think at 1.44, 1.1, rates are probably going to head up higher than lower. if that happens, the movement on especially the higher speculative stocks could be very, very sensitive so -- >> do you talk about -- >> i am positive, but -- >> do you talk about washington? would an infrastructure deal be a positive for you, if it was followed by another two, three, $4 trillion in spending? would that be positive for the markets, or does there come a tipping point, where we worry about funding all that >> you know, it's one of those

things where i think the market will interpret a little bit negatively if you do have $3 trillion or $4 trillion coming, how are we going to pay for that? i think that could put an effect on interest rates that we're not expecting. at the same time, the saving rate for the consumers is so high we are going to have a lot of money then chasing products in a supply/demand imbalance. that could be one of those things where you think it's good for the market, and it could actually be bad for the market >> sarat, dcla, thank you. >> thank you. >> good to have you on we'll see you again. coming up, air travel soaring past pre-pandemic levels as travel returned to the skies. over 2 million people screened by the tsa on friday ahead of the july 4th holiday we'll get an outlook for the sector after this break. "squawk box" will be right pack.

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♪ me and you listening to the rain ♪ ♪ me and you we are the same ♪ ♪ me and you have all the fame we need ♪ ♪ indeed, you and me are we ♪ ♪ me and you singing in the park ♪ ♪ me and you, we're waiting for the dark ♪ is air travel back to normal the transportation security saying it's climbed to 2019 levels, the first time since the p pre-pandemic jets is still off its share, though it is up. joining us is hellene. business travel hasn't resumed

what is your outlook for a baseline travel recovery here? >> yeah, thanks for the -- thanks for having me, and thanks for the question we basically think we've seen about as good as it is going to get without more international and business traffic coming back the fact that we're above pre-pandemic levels on some days just means to us that domestic leisure travel is very strong, number one, and number two, a lot of people who might have gone to europe this summer are staying domestic and at this point, we think it's going to be really difficult to get back to those t2.5 to 3 million passengers a day we were seeing pre-pandemic on busy summer days. so, you know, we think pricing will start to move higher, actually, and we should have a pretty good summer, whether there's legs to it or not after labor day is another question. >> so in that context, helane,

i'm wondering what you think of, for instance, united airlines plans to increase the number of aircraft out there in the next five years the massive spending plan was just announced, i think, last week you know, what scares airline investors in general, and you know this, is the boom/bust cycle. things look good, a lot of capacity, then it bites investors in the you-know-what are you concerned we're falling back into that pattern >> of course, yes. but the longer answer to that question really is that united has a relatively old fleet they have some of the original a-320s from united that were delivered back in the 1990s. they have 767s, 777s, and at some point, they'd have to replace them we were expecting a $20 billion to $30 billion capex plan to be announced, they came in the middle of that a lot of the aircraft they're

taking will be a replacement the other thing is, too, remember, they're going to their coastal hubs in newark and san fran francisco, and there's really no way to expand, other than seats per departure. newark, new jersey turnpike and a highway on either side of it san francisco, you have the water and a highway. so the other way you're going to grow those airports is by more seats per departure, meaning bigger planes. that's what they're doing here i think the plan, though, to your point is, you know, order aircraft at the top of the cycle, take delivery at the bottom in this case, they're kind of doing it a little bit differently, but it speaks to sustainability the aircraft that are coming in will replace aircraft that are older and less efficient so there's probably a lot of good there they're just doing it in this decade, whereas american did it in the last decade. >> do you think domestic airlines that are not as exposed

to business travel, is that the way to go from an investing standpoint, seeing that business travel is a question mark, international travel is a question mark, as well >> yes in the short term, we definitely agree with that. the longer term, though, at some point, business traffic will start to come back, probably after labor day, right, as people go back to school people go back to work, we think they'll take some trips. then international will come back probably in 2022. >> helane, great to see you. thank you. >> thanks. coming up, packed bars, packed parties will there be a spike in covid cases after all the fourth of july festivities we're going to ask dr. scott gottlieb about that and much more check out the shares of amazon this morning. andy jassy taking over the role from jeff bezos. bezos takes on the company's executive chair role with plans to focus on new products and to improve amazon's wkpceorla

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didi shares plunging after a regulator launched a cybersecurity probe. now, more companies are facing

the same type of probes. eunice joins us now with more. hi, eunice. >> hey, joe. we have a much more formal guidance from beijing about what their concerns are about chinese companies listing overseas the cabinet just issued this new guidance requiring, tightening the requirements for overseas ipos, saying ing authorities a going to focus on data security, cross-border data flow, and confidential information in order to try to prevent possible leaks during the listing process. it also requires a principle of reciprocity and to deepen further auditing supervision with other countries of course, the backdrop of all of this is that didi shares have been hit hard after the government here had launched an investigation into didi, as well as other companies, because of concerns of national security l leaks, and also after the state

media has indicated what the main motivations are of beijing. that is data sovereignty in fact, state media had indicated that didi's data trove, plus the u.s. ipo, so in combination, is a risk to national security. with the logic being that the u.s. could potentially demand access to data of these chinese companies that are listed in the united states. joe? >> i wonder if you can, nobody knows at this point, but how much of a heads-up do you think didi really got at this point, eunice they were saying they were blindsided by what happened. if i were an ininvestor, i'd be mad at somebody. >> yeah. they say they were not aware of this sicybersecurity review befr the listing.

there has been discussion about the timing and exactly what happened this is, again, all speculation, but what people have been saying is that didi had been told by beijing not to list at that time that there needed to be more time for the government to go through all these national security risks, if they were worried the u.s. government, through audits, could potentially try to demand access to vendors or to look at other companies and third parties that work with didi and potentially could get access to what the media here described as highly detailed maps of china, which would be seen as sensitive to beijing. but what has been discussed is that the founder of didi pushed ahead anyway with this ipo, and the reason being was that he was under tremendous pressure from his investors for a big payoff he was thinking a lot about the

investors. i think that's another thing that has been discussed here and highlighted a lot on social media. you know, was he, in some way, betraying china? instead, he was thinking more about investors and foreign investors, at that, you know, as opposed to the government. as we now know, and probably has been very clear to many, and especially today within the tech community, one of the main messages is that you have to answer to beijing. >> eunice, do you think that there is a pain point for regulators for beijing, in that right now, pre-market, we're seeing shares of other u.s. listed chinese companies, jd, alibaba, china internet, etf, all trade lower in sympathy on this news, but there is a pain point in which these state champion companies, beijing doesn't want them to fail. they don't want them to continue declining. yet, here we are

>> yeah. i mean, that's a big question. you know, a lot of people have been saying that at the end of the day, beijing doesn't care. they want to be able to make sure that they protect their data sovereignty they make sure that national security is protected. that that's the most important, even if it does have an impact on these listings. it is, you know, a very difficult balancing act. on the one hand, you know, they're saying they want to protect national sovereignty -- or national security and this data, and they don't want to have this information handed over to foreigners at the same time, you know, they want to be able to have these companies list, you know, get a lot of money from overseas, raise money, have -- you know, be able to expand and be global players. this is an issue that we've seen for quite a while in china, the struggle between the private sector and the state sector. you know, it's just coming to the floor at this point. >> all right

eunice, thanks we're going to get all our discussions to think about how we can approach some of this stuff. i don't know how you operate anymore over there i'd like to be able to -- you know, i'd like all our viewers to see us talk about it, but i'm not sure it'd happen, the minute we start broaching these subjects thanks, eunice we'll check back with you. appreciate it. still to come on "squawk box," dr. scott gottlieb gives us an update on the delta variant after the lihoday weekend. stay tuned you're watching "squawk box" on cnbc

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the delta variant is now found in all 50 states, and it accounts for 26% of all new covid cases. according to the cdc joining us to talk more about the risk of transmission as summer travel continues, dr. scott gottlieb, former fda commissioner and cnbc contributor. he also serves on the boards of alumina and pfizer walking back from some of the weekend's events, i noticed i was in the middle of a really large group of people. and there weren't any -- you know, very few people were wearing masks. it's different we're back we're back to feeling more comfortable to life being normal

again, doctor. then, you know, it occurs to you, wow, here i am, surrounded by, you know, literally hundreds of people, and we haven't done this in about a year and a half. should we feel absolutely fine, absolutely safe? >> look, i think in some parts of the country, we should feel relatively safe. in parts of the country where prevalence is low and vaccination is high, people can feel confident socializing again. it'll take time until we feel comfortable doing it again, but the risk is low. other parts of the country where vaccination rates are lower and the delta variant is gaining a foothold, there's higher risk. people need to exercise more caution. louisiana is seeing cases up missouri is engulfed in infection. florida, oklahoma is ticking up. there are parts of the country where the delta variant is ticking up it's localized many times, it is low dahcal paf the state.

missouri, nevada, it is pervasive. in those states, you need to exercise caution it's not too late to get vaccinated. >> i saw some data that the vaccines are maybe a little less effective with delta, but that the hospitalizations and deaths are very low for people that have the vaccine maybe you're asymptomatic or maybe you get, you know, some symptoms that aren't that serious. so those are the people that are vaccinated, so that's one -- you know, that's one thing to consider then there's places where if you have low vaccination rates, if the delta variant got common there and was spreading quickly, people who aren't vaccinated could be at risk of hospitalization and death again. >> well, the headlines overnight were from an unverified dataset out of israel. they're looking at people who have been infected with the delta variant and how many of them have been vaccinated.

what they reported was that the efficacy against infection seems to be lower than what we perceived. they were reporting anywhere from 64% to 70% protection there were various products. data out of the uk showed higher protection against infection and symptomatic disease. the israeli data bears watching because they have been putting out consistently good data it is still an early dataset i think what with e need to sepe is protection against infection and protection against symptomatic disease and hospitalization. the israeli dataset showed robust protection against symptomatic disease and hospitalization. what they were focusing on is protection against any infection whatsoever it could be that, you know, people who are vaccinated, nonetheless, do have some suscesus september -- susceptibility to getting infected they're less likely to transmit the infection if they're vaccinated, generally speaking

we don't have information on the delta variant, but people who are vaccinated are less likely to pass on the infection the israeli data shows decline in protection. but israel vaccinated their population early it is unclear if they're detecting the fact that the delta variant seems to be breaking through and people are developing asymptomatic infection at a slightly higher rate than what we would perceive from the uk data, or the protection against infection is starting to wane in some portion of the population over time. we know if you look at neutralizing antibodies, levels of circulating antibodies, they do decline over time and decline in older individuals more. you do have residual protection against severe disease, hospitalizations, and you get memory b-cells and t-cells activated by the vaccine but the antibodies decline over time, and that's why we're talking about the potential for boosters in the fall,

particularly for the older population where you see a more rapid decline. >> doctor, if you were a young person and you had antibodies, you were asymptomatic, and you need to do certain things, you need to get the vaccine, your risk was low really from the start pabecause you're a young person you've already had it. i know the risk of the vaccine are very low, but why even -- you know, if you've had it, you were asymptomatic, you've got oent antibodies, and the risk is low to start, even if side effect risk is low, why everyone do it? someone might make that case, risk/reward, i don't want to do it, and they'll be forced to do it, is that right? >> people are making that case people have been previously infected and are foregoing the vaccine because they've been previously infected. the reason to do it is two-fold. we believe the vaccine provides a more durable and broader immunity it'll protect you better against

the variants two, if you've been previously infected and gotten just a single dose of the vaccine, you get a robust immune response so you have now the opportunity to develop a very robust, very broad, very durable immunity because you've been previously infected and have taken at least one dose of the vaccine on top of that. it's the best of both worlds if you've been previously infected and you get vaccinated, at least with one dose. you develop a very broad, very deep, very durable immunity, based on the data we've seen so far. there's still a lot of co compelling reasons why you'd want to be vaccinated, even if you've been previously infected. >> it's still low and heard to see a cause and effect at this point. but you read twitter you read what goes around and what you hear. you can see -- >> well -- >> go ahead. >> 3 billion doses of vaccines have been delivered globally 180 million people have been vaccinated in the u.s. we have a pretty big dataset right now that supports the safety of these vaccines in a

very -- >> even long term, no concerns whatsoever >> we have more than a year and a half of data right now on a lot of patients, yeah. >> okay, great thanks, doctor >> thanks a lot. >> okay. coming up, a check on the markets, then tesla delivery numbers falling slightly sort of analysts' expectations we'll hear from mark fields about the top ev sector and the competition brewing between tesla and major car manufacturers. you can always watch us on the go on the cnbc app. we'll rhtacbeig bk. as your broker, i've solved it. that's great, carl. but we need something better. that's easily adjustable has no penalties or advisory fee. and we can monitor to see that we're on track. like schwab intelligent income. schwab! introducing schwab intelligent income. a simple, modern way to pay yourself from your portfolio. oh, that's cool... i mean, we don't have that. schwab. a modern approach to

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coming up, bitcoin's fall may not have elon musk dancing any time soon. the move in crypto could have an impact on the company's balance sheet. that story and a tesla outlook is next. a look at the winners and losers in the s&p 500. we'll be right back.

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bitcoin hovering around the 33,000 level, half of what it was worth in april the price declines set up some accounting headaches for companies like tesla, that hold it on their balance sheets kate rooney joins us with more hey, kate. >> hey, joe. these price drops, the price drops you mentioned and bitcoin accounting rules could tee up new losses for tesla when it reports at the end of july tesla first disclosed its crypto purchases back in february we don't have exact timing, but analysts think it was around

that 32,000 or $33,000 level bitcoin sunk below the price in the last quarter, meaning tesla will face what's known as an impairment charge. tesla holds crypto as an intangible asset because of accounting rules, when bitcoin's value drops below a certain amount, companies have to mark that down in their financial statements in an sec disclosure, tesla says if bitcoin's price falls below where tesla bought it, any time after they bought it, an impairment cost is recognized. on the flip side, tesla can mark up the value of its bitcoin until a sale analysts i've been talking to are looking for between a $25 million and $100 million loss for tesla on paper in the next quarter. they tell me this is really a rubik's cube to figure out and an overhang on the stock they're expecting quarter to quarter impairments along with bitcoin's volatility the big thing crypto and analysts are watching, did tesla sell any bitcoin in the quarter

to make up for some of the losses back to you. >> all right kate, thank you. that's pretty complex. that's interesting asymmetric risk there. can't mark it up, but they have to take an impairment charge, even if it goes down and comes back up, they still have to flag that. >> and if it recovers, exactly, yeah. >> weird very weird all right. thanks didn't know about some of that, mel melissa. gm and ford fueling up their competition against tesla. joining us is mark fields, former ford ceo and also a cnbc contributor. >> thanks, melissa. >> i want to ask about tesla and this model s-plaid caught fire in a suburb of philadelphia according to electric i'm wondering, you know, how you think this impacts at all the appetite for either teslas and

evs in general. >> for tesla buyers, it is not going to impact the demand for these vehicles very limited yeah, it's never a good thing when you have a new product that comes to the market, and a few days after you launch it, it's on the front pages of the newspapers or web pages being on fire i think for the general population, it does cause a little bit more doubt as you think about purchasing an electric vehicle nonetheless, melissa, i do think electric vehicle sales are going to continue to grow the next number of years as the manufacturers are bringing these products to market bottom line, it doesn't help, but i don't think it hurts too greatly either. >> we've certainly seen these stocks and the legacy automakers, ford, gm, go higher on their new v offerings, mark i'm wondering how you think, you know, how you think investors should think about valuations. i guess the thinking is that if

gm has a strong portfolio or ford has a strong portfolio, it should get a little more of the tesla valuation. i'm wondering what your perfective is on where the stocks are right now. >> i think you are starting to see the market appreciate what the traditional automakers are bringing to the party in terms of electric vehicles you know, for a long time, tesla had the market to themselves, and they've done a good job in pushing the industry towards electric vehicles. their stock and their multiple and their valuation, you know, clearly outpaced literally every stock in the s&p 500 of course, you know, very much versus the traditional automakers but you are seeing now, particularly over the last, you know, 9 to 12 months, the market start to appreciate that these products are coming out from the established oems, and they're very good products you're starting to see them eat into the market share for tesla. here in the u.s., tesla has

usually commanded about 75% of the total ev market here in the u.s. that's down now to about 50% you know, folks like ford bring out their products like their mach-e chevy with their products in the market now and coming out. others like hyundai. everybody is coming to the party now with great products, and i think you're seeing the market starting to give some love to the fords ans of the world on t efforts there. >> will that love be given to the automakers who still qualify to offer their customers subsidies? gm and tesla reached the cap, so it can no longer offer, at least for the rest of the year i'm wondering if you think that's a benefit to a bmw. the consumer will say, i'll go to ford and bmw to look at the offerings because i can still get that subsidy. >> i do think it's a factor. the bottom line is, you know, the early evs were bought by what we call early adopters in the industry

these are folks that want new technology they have the income to do that. now, as you're getting to mass adoption, cost and price becomes very important for consumers as they're sit ting across their kitchen table, dow jing the mato what they can afford as a monthly payment. when you have a federal incentive available to automakers like ford, that is certainly going to make a difference to a consumer now, will that be addressed through the biden administration as they look to support the growth of electrification? maybe. i do think it's a factor but overall, as i mentioned earlier, i think the industry is going to continue to grow overall with electric vehicles as the new products come out to market, and as you've seen, literally over the last month or two, a number of major automakers said they're going to be going all lekelectric, wheth it is this decade, 2030 or 2035.

it's where the products and consumers will ultimately be heading. >> do you think that, at least in the board rooms or top management, discussing you know, if we do hit the mark in terms of going all electric, does our nation's infrastructure, can it handle this goal i mean, putting one electric vehicle on the grid is like putting an entire house on the grid yet, here we are, making these projections, which is great for the environment in theory, but we don't know what the impact is on our infrastructure. >> yeah, when you think about the adoption of electric vehicles, there's three main elements that consumers have to overcome the first is making sure the price is there, and the industry is working on that you know, by the next couple of years, the cost of an internal combustion engine vehicle will be the same as an electric vehicle. that'll be off the table the second is the range. the industry is working on that in terms of continuing to increase the range, to give consumers comfort. the third, as you mentioned, melissa, is the charging

infrastructure the bottom line is not everybody who is going to be buying electric vehicles lives in a house with a two-car garage where they can put a power wall in their garage and charge their vehicle overnight. so this is a massive infrastructure, charging infrastructure that has to be born out here, and that's why you're seeing, you know, companies like charge point and others really upping their efforts. importantly, the automakers are starting to participate or partner with a number of these firms to build out the infrastructure because the products are coming, right? the question now, are the consumers going to come? a lot of that has to do with them having comfort around, hey, i can charge my vehicle just as easily as it is, you know, finding a gas station these days so that's going to be a limiter until that is solved >> all right mark, great to speak with you, thanks mark fields. >> thanks. just hitting the wires, amc's ceo cancelling a july vote

on stock offering. we'll have more on that after the break. coming up, jason will give us his thoughts on the market. later, many businesses are still facing a workers shortage. we're going to talk about america's hiring problem with kevin o'leary and john hope bryan. ay tedstun you're watching "squawk box" on cnbc e. hey there, small business owner. pie insurance here with some sweet advice to stop you from overpaying on worker's comp. try pie instead and save up to 30%. thirty percent? really? get a quote in 3 minutes at easyaspie.com. wow, that is easy. so, need another reminder? no, no no, i'm good. uh, yes please. oh. ho ho ho, yeah! need worker's comp insurance? get a quote in 3 minutes at easyaspie.com.

good morning shares of major chinese companies are lower after a crackdown over cybersecurity issues we'll go live to china meantime, a ransomware attack has been under way in this country since friday, and it could impact more than 1,000 companies. we're going to talk to a cybersecurity expert plus, the debate over a global minimum corporate tax, and how much it could cost businesses the final hour of "squawk box" begins right now good morning welcome to "squawk box" on cnbc.

i'm melissa lee with joe kernen. becky and andrew are off today the nasdaq is opening higher treasury yields, in particular have been pretty benign in terms of its relationship to the equity market. 10-year yields up 1.43%. want to hit this news just out amc's ceo adam aaron tweeting, it is no secret. shareholders should authorize 25 million more amc shares. what you think is important to us, many yes, many no. amc does not want to proceed with such a split, so we're cancelling the july vote on more shares no more such requests in 2021. amc shares are responding, as you might expect, higher by more than 3% at this hour along with this tweet, he has a graphic, like, we hear you, we see you. they're acknowledging their retail investor base, which is enormous 80% of its shares are held by

retail investors the so-called army of apes if your retail investors don't want to be diluted, you can't ignore that. adam aron is acknowledging that this morning >> but the challenge is to, you know, make hay while the sun shines those shareholders, if the corporate proceeds were going to be used to justify the valuation by expanding the business or branching out into other businesses, it makes sense to raise money when you can. >> but you talk to a lot of people in this stock, particularly the ones who are the influencers in this stock, it's not a fundamental story fundamentals have nothing to do with the story maybe some time down the road, but they're waiting for what they call the mother of all short squeezes this is a technical trade on amc for a lot of them, and the fundamental story, it's great if it works out >> well, as a ceo, that's weird

to -- i'm not sure what the real story is behind all this, what adam aron is thinking. in his view, i would think that he wouldn't care as much about currying favor with that sort of -- i don't know, are they long termers are they people that care about the fundamentals of amc? do they want to squeeze the shorts, make their money, and leave? >> they're longer termers than a lot of people thought. >> make the money and leave. adam aron is like, he cares about all shareholders. >> they are the shareholder base right now. >> their what they are. >> it is a sign of the times he said specifically, it's worth noting in the tweet, we'll no longer have such requests in 2021 that's the next six months 2022 could be a different story. >> we're going to see, too, that was one of two that was the very end of it. there's another coming i haven't seen it yet so -- right? there is another tweet coming? >> it says one of two, correct >> is this it? okay that's one of two.

all right. when we get to the second one. >> the stock is responding. >> we're going to bring it up. the next one >> of course, voting on the other four issues requiring approval at the july 29 annual amc shareholder meeting will continue on schedule but proposal 1 is hereby officially tabled. there will be no voting before 2022 on more shares. so it is put to bed for 2021 >> right >> for this year 2022, who knows? this follows a tweet over the weekend that also got a lot of the holders very excited, when he said they would be showing this next ufc fight. i'm not familiar with these fighters >> you didn't watch the last one? >> conor mcgregor. yeah, so they'll be showing that on amc screens for $25 a pop versus, what, $75 on pay-per-view this was a suggestion of a shareholder base, why don't you show live events show e-sports.

you know, show these things which resonate with the younger audience bring them to the theaters. >> mcgregor was a heavy favorite, so much so i lost money on the last one. the other guy beat him pretty handily. this is a nice, good rematch i think this is the third one. >> this could be something >> this is the rubber match. >> could draw people in. >> yes, it could mcgregor was somewhere recently, where he needed security just to get out of wherever he was he is such a big star. >> would you pay $25 to watch it on the screen? >> i'll probably watch it at home. >> you probably have your own 90-inch or -- >> 75. >> pretty big. >> pretty big, yeah. >> not quite as big as a movie theater. >> it is nice to be there. usually, there's a bunch of matches beforehand the main one doesn't start until, like, midnight usually, though the coverage starts at 10:00. it's coming up is it this weekend or next weekend? >> july 11th, i believe.

this all goes to the point of adam aron being responsive to this new shareholder base. imagine the retail investor feeling pretty empowered right now. they get into the stock, drive it higher. it reached, what, above 60 bucks, amc at the higher point, and here they are, influencing a company. $25 billion company. >> people are afraid of the apes i think you're afraid of the apes by being so nice about this. >> i'm not afraid of anybody. >> nobody? >> i think -- >> you're not afraid of anybody? >> maybe that guy over there at times square >> i know you're not afraid of me. >> in all seriousness, you have to recognize this for what it is it is a movement that is happening. for you to just dismiss -- >> you've come around to that? you didn't think about that at the beginning with gme and all that didn't you think it was crazy initially? >> i thought this deserved coverage. >> all along >> this is something you need to -- >> agnostic, okay. >> you see an interesting thing in the market and cover. that's our job. >> not trying to save anyone. >> i'm not trying to save anyone from themselves or whatnot. >> okay. >> that's for you to decide.

>> all right no, i'm not going to do it either i was thinking about who is going to win this fight more than i was thinking -- >> how you're going to bet, right? >> i don't know. i don't know mcgregor is getting old a little bit. i mean -- >> there are odds on things like this >> depends on -- there are specials >> microbets >> fan duel and draft kings may give you even odds if one or the other is favored they're smart about it they always suck you into what seems like a good deal, then you lose anyway. we start the holiday-shortened week with the s&p 500 and nasdaq at record highs. cnbc's senior markets commentator mike zantolli joins us now >> not just record highs, but the s&p 500 running a rare streak up seven days in a row each of the days a new record. look at the one-year trend it looks extremely orderly and

pretty calm in recent weeks, especially we just extended a little bit. you see on the other end, kind of gone vertical, toward the upper end of this trend. statistically, maybe getting a little stretched a few stocks really pushing things also, we're coming off five straight quarters of at least 5% gains. so these things have not happened very often. you look back and say, they always happen in bull markets. it's usually not an ultimate peak, but it is also usually not the starting point for a further rally that does not get kind of backlit a little bit you have to consider those things as somewhat offsets, but underlying strong trend. the u.s. verse the rest of the world, this is a change of character. i mentioned fewer u.s. stocks doing the work to some degree. neck and neck earlier in march, this is acwx, the entire world verse everyone else. u.s. up. the rest of the world giving downward movement here really, this is a couple things. theplaying a part, a

it bounced but the megacap u.s. growth is a distinguishing factor of our markets versus the rest of the world indexes. this has carried it here the credit situation, it has been very, very supportive and remains so if you'd say, oh, the momentum is waning in stocks, it looks like it's getting a little spotty, maybe we're getting a little sensitive to what the fed might do, well, the high yield bonds and treasuries have basically been tracking one another the last few months. credit spreads are tight it is not as if it is showing underlying macro stress. all companies termed out the debt, and everyone seems secure. if we get a wobble in the stock market, it's not coming from this direction of saying the credit markets are getting a little bit worried about anything, guys >> all right mike santoli, thank you. for example -- >> going back to the odds? >> yeah. tonight is the playoffs, first game of the finals for the nba the suns versus the bucks.

if you were to bet on the money line -- if you were going to bet with points, the suns are a 6-point favorite you have to give six points away the money line is plus 195 for the bucks, so you'd win three times your money if they were to win. so you would win less with the suns but they have a special, where the odds are up to plus 100 on the suns, where you double your money if the suns were to win. you don't node teed to give the points even if they win by one, you can double your money. that's the special they're running. does that mean -- >> do you think it is some sort of -- >> yes. >> -- a mind game? >> i took it anyway. i shouldn't say that because my friend is on the bucks some of them >> you're a sucker >> you know mark >> yeah. >> did you see him, him and wes, they were both there with the hats on. it was a great night for them the other night.

thanks, mike he is long gone. our next guest says market returns in the second half of the year and will be challenging. joining us is the chairman and c ceo, jason big first six months, tougher comps coming up. one big toe ow out of the marke jason? >> not really, gjoe. the end of the year, maybe s&p 500 getting higher than 4,500 or 4,550 will be tough. the first year of a bull market is always stronger than the second year. you have earning season starting next week, which will be, by any standard, probably the best earning season from a year-over-year comp perspective of all time. generally, what's more important is the guidance, and it seems to me there's not going to be a lot of incentives for companies to

really talk up the guidance. so, you know, i just tend to think that you're going to consolidate here a little bit, until you probably have a better idea of what fiscal -- the fiscal situation looks like, what the fiscal package and taxes are going to look like, corporate taxes are going to look like in the second half of the year so, you know, i still have a cyclical bias. i still think we're in a bull market, but we'll consolidate some of our gains. >> cooperman calls himself a fully invested bear. i think you're kind of like that, too. you've learned to not fight this you've learned to not fight it but you have concerns coming out all over the place in the back of your mind, and that is fiscal, monetary, trillions here, trillions there, rising interest rates eventually, inflation, policy mistakes coming out of washington but you're staying just because,

you know, that's -- the momentum is there, and the money keeps coming in. >> well, yeah. also, you know, joe, since the 19 l -- 1980s, i've been a follower of money growth m2 is slow, maybe 14% year-over-year, but it's still up, the total stock of m2 is up 30% since the start of 2020. pretty hrdard to fight that. you know, i don't want to get too cute here. i think mike santoli mentioned in the prior segment, credit spreads are awfully tight. the breadth has been a little weeker, despite we're getting all-time highs there's always a lot of things to worry about, but the thing i worry about first and foremost is liquidity there's still an awful lot of liquidity out in the market, which makes it very hard on the

short side that will continue to be true. i think, you know, it seems like from a timing perspective, we're due for a correction, but i can't point to anything in particular that would precipitate that at the moment and i think, also, the big question, value growth you know, i still have more bias toward value and the more cyclical trades. >> that's not like everybody a lot of people are back in growth with the 10-year well below 1.5. not well below, but below 1.5. they think you ought to be in growth other people mentioned this quarter will be peak -- not peak earnings, but peak earnings growth so the second derivative starts coming down a little the earnings won't be growing as quickly. is that something that, historically, would usher in some type of slowdown in the gains, or even a correction? >> joe, i don't think.

i don't think so this is such an unusual circumstance earnings for the second quarter are probably going to be up something like 50%, 60%. so it's not -- again, this is such an unusual time, that i'm not sure if you can use past examples as a strong example for this i do think, though, that earnings gains in 2022 are going to be much more challenged, much more normal, let's say, a version of the mean as you say you might get 5%, 6%, 7% earnings growth, which is pretty typ typical, opposed to what we've gotten over the last several quarters and that will -- that will rebound well, i think, to good stock picking once again i do think -- i'm watching -- the 10-year treasury yield, in my opinion, use td to be the mot

important price in the world the fed is buying $80 billion worth of treasuries still. you have a lot of -- a lot of shenanigans, shall we say, in the post repo market that i'm not sure people can understand i tend to think the dollar is the most important price for investors in the world that's gotten a little bit better, but i'm skeptical and nervous about the dollar, given what we're doing from a fiscal and monetary perspective. >> jason, 10-year, the dollar, melissa tells me it's amc as the most important. >> i never said that, joe. >> you didn't say amc was the most -- >> no. >> bitcoin >> you said that >> thanks. she didn't say that. she didn't. >> you did say bitcoin. >> you know what i'm doing >> well, you already placed a bet so -- >> gaslighting i just learned what it was, and i love doing it now.

you lie about anything just to get a response it's awesome coming up, cybersecurity teams around the world are working to contain what is being called the single largest global ransomware attack on record. we'll talk to the ceo of hundred tr -- huntress next. weibo is in talks to become ive. you're watching "squawk box" on cnbc

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an update on the ransomware attack on kaseya, which could impact more than 1,000 companies. the hackers initially demanded 70 million in bitcoin, but experts say it could be negotiated lower that's nice. amon joins us with a special guest who has been tracking this since friday back on camera saw you earlier. great timing moves into -- you didn't actually -- there's no cause and effect there, you didn't call all these attacks because you started covering it, right you anticipated this >> cybersecurity is an area i've been interested in since back many 2013. it's just providence, i guess

you would say, joe let me bring in kyle hanslovan he's the ceo and co-founder of a cy cybersecurity company called huntress you are former air force you were with the national security agency outside the washington, d.c. area where i am right now. you've been working this problem throughout the course of the weekend. tell me where we are right now tell me, first of all, big picture, is this now, as some people have been saying, the largest ransomware attack ever can you say that for sure? >> simply put, this is by far the largest ransomware incident. we'd guess 1,500, maybe up to 2,000 companies affected with that said, where we're at, we're past the detection phase, into the recovery for a lot of these businesses to be honest, most of the industry who uses this software is still waiting for a patch >> tell me what that looks like in terms of the way the weekend broke down first of all, hackers love these holiday weekends they think everybody is going to

be at the beach and defenders will have their guard down what did it look like through the course of the weekend, and where are we now in terms of remediation? >> it began on eastern time zone, 12:30. everybody was awakened to a synchronized attack. what that means is, they target service providers, and it is a one to many attack that impacts many industries. we've seen finance, health care. we've seen legal firms probably most scary is defense contractors and even federal entities >> we saw that the white house has been informed of this. we know that a lot of the federal cybersecurity teams have beenworking this problem over the weekend. the big question that everybody is asking here in washington is, is this company going to have to pay, and how much are they going to have to pay to get the descriptors? do you think they'll ultimately negotiate the $70 million demand down and pay something to these guys, or is there a way to get out of this without paying the bad guys

>> you were correct that cyber criminals could be negotiated with wouldn't be surprising if someone paid closer to the $40 million ballpark with that said, i haven't seen anything that suggests they'll pay for the universal decrypter, the one that decrypts their customers and their customers' customers. considering that or pulling that thread even further, a lot of people say don't pay the ransom. i personally think that, if my family was kidnapped, you think about it differently if it was your own i'm just as excited as you to see how this turns out. >> the hackers here say they've infected a million systems that seems like, you know, they're just bragging on the dark web is that true is there any number you can put to that that's real? >> you nailed it with bragging my guess would be total number of companies, and from everything we've seen, the hackers don't have a feedback loop into just how many people were compromised they might have known the vsa, kaseya customers, but i don't

believe they have insight into how many businesses. i'd guess it to be in the low thousands. i don't believe it is close to a million businesses. >> now, you're a technical and security expert, so this question might be unfair to you. i want to get a little bit political. i was in geneva for the biden/putin summit one of the topics at the top of the agenda was cybersecurity it seemed like there was some optimism coming out of geneva, that the russians were going to tamp down on some of this. this hacking group, revil, is a russian-linked entity. they don't seem to be stopping in the wake of geneva. was that summit ineffective in solving this problem >> so obviously a lot of people are coming out from the summit very positive, but this isn't the first time the biden administration has discussed revil or cyber crime in general. with that said, i'm pretty darn confident if these actors really are in russia or the post-soviet, eastern block countries, the kremlin and putin

administration would have access i'm hoping to see some tampering down with that said, revil has previously put out a statement that said, regardless, even if there's laws put against them, this is just business for them they're going to continue to operate. >> just business it looks like they are continuing to operate, and the jury is out now on whether the payment goes out to these bad guys kyle hanslovan from huntress, thank you for joining us appreciate your time and expertise. joe, i'll toss it back to you at headquarters. >> all right thank you. revil, somewhere over there. eamon, are you there i think he's gone. can putin tell them to stop? does he have that -- >> does he want to tell them to stop >> well, that's the -- >> did he tell them to go? >> if he wanted them to stop, could he >> well, i would imagine so. >> you're not afraid of anyone, but you're afraid of putin. >> yeah. why would putin come after me? i'm nobody. >> you said you're not afraid of anyone.

>> in this realm what are the -- >> he'll -- >> i'm not afraid of criticism is what i'm saying. >> you'll get an umbrella, you know, stuck in your foot or something. i mean, he's -- i'm afraid to even say that about him now. >> now you're in danger. >> now i'm afraid. remember abbiden called him a killer. >> as your shadow, i recommend you stop saying that. a look at amc after the company canceled a shahoerreld vote on a secondary -- i think it is really a primary offering of shares. what's on the horizon? the answers lie beyond the roads we know. we recognize that energy demand is growing, and the world needs lower carbon solutions to keep up. at chevron, we're working to find new ways forward, like through our venture capital group. backing technologies like electric vehicle charging,

carbon capture and even nuclear fusion. we may not know just what lies ahead, but it's only human... to search for it.

news just old, adam aron tweeting, it is no secret i think shareholders should authorize 25 million more amc shares what you think is important to us, many yes, many no. amc does not want to proveed with such a split. so we're cancelling the july vote on more shares. no more such requests in 2021. the shareholder meeting will go on, and they'll vote on other things but not the share offering amc shares up by 3.7%.

we should note that this other thing that happened over the weekend. >> separately, adam aron is sweet tweeting about this big fight coming up, mma, ufc, whatever it is, that many of you suggested that we show live pro sports, e sports, and other events, and we are on it. on saturday, july 10th, live from las vegas, the mcgregor and poirier fight will be on amc's big screens at 95 theaters tickets are only $25 versus the $70 you have to pay to see it in your own home. the last one was really not that long ago it was like three months, i think. maybe a little bit more than that but it was fun we all stayed up to watch it those guys, you know, these two guys aren't that big, but they're -- you just can't imagine how their bodies -- the

way they're put together and their moves and stuff, i mean, you're afraid of putin, and you should be afraid of both of these guys. >> yes >> you would be. >> when i said i'm not afraid -- >> you said you're not afraid of anyone. >> i was exaggerating. i'm afraid of people larger than me, coupled with dislike for me. that does instill fear in me >> i think you're basically saying you're not afraid of me when you said you were not afraid of anyone. >> the point is i'm not afraid of you. >> i know you're not. >> i'm not afraid of you. >> i am afraid of you. >> perfect the balance is right coming up, tax debate. we'll talk about the biden administration's push for a global minimum corporate tax and the inpmpact on business. subway says its sandwhich shops will close on july 12th for an eat fresh refresh they'll make improvements on almost every ce nuorme item and introduce digital upgrades we'll be right back. in front of you

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welcome back check out shares of chinese microblogging platform weibo the company's chairman and a state firm are in talks to take the company private. reuters reporting the price would be $90 to $100 a share the stock is up 27%. meantime in china, didi shares are plunging after a regulator launched a cybersecurity probe china issued new guidance to tighten the process for firms to list overseas. eunice yoon joins us now with

more good morning, eunice >> good morning, melissa china is revising its rules for chinese companies that are looking to list overseas the approval process is now going to include tighter supervision by beijing the authorities are going to focus on data security, cross-border data flow, and confidential information in order to prevent leaks during the listing process. this guidance also requires and mentions the principle of reciprocity, including when it comes to international audits. this comes after the state media had been indicating that one of the main concerns that beijing had with u.s. ipos such as didi was the possibility of data sovereignty being breached they said the combination of dd didi's data trove and the u.s. ipo could be a national security risk the argument could be the u.s.

could potentially demand some of this data from these chinese companies that are listed overseas, especially in the u.s., and that the pressure in congress has been great on these chinese companies, especially when it comes to their accounting and for audits. that means that this greater scrutiny on the part to the u.s. could be potentially a higher possibility. melissa? >> coupled with the news we just reported, eunice, about weibo possibly going private, the message seems to be that u.s.-listed chinese companies will have a tough go they're feeling the pressure in the public markets there is a discount embedded because of the regulatory thread, and in the meantime, there are more than 30 pending ipos by chinese companies here in the united states eunice, what are the other routes does the chinese government want these companies to just go public domestically?

>> well, they -- that is one of the discussions that's been going on here within the tech community. because the u.s. listings actually -- or new york has become a much more attractive place. it always was an attractive place for chinese companies to list, but this year, it was retaining that position and really people here were saying that they wanted to list in the u.s. because of the deep investor pool. because the regulatory environment there is actually much better, and there's also been some challenges with listing on shanghai. the regulators there have become much more stringent about certain requirements there so the -- so there is this thinking that china might not be so happy with the fact that so many companies have been going to the u.s. and preferring the u.s. over shanghai or hong kong. >> eunice, thank you eunice yoon.

so i'm reading thismelissa,s adam aron thing. this is tyler durdan, who is brad pitt, i think, so it is a fake name, but it's the latest example of aron's radical management strategy of building an intense bond of trust with these crazy, doesn't say crazy, dedicated retail backers it's included the launch of a rewards program like a share of free popcorn. >> right. >> adam aron thinks it is still a good idea to do it, but he's not going to do it because -- >> right, he said that in the tweet. he still thinks -- >> but you think -- this person, radical management to curry favor with the nut cases. >> what i see is there has been a radical transformation of the amc shareholder base. >> right. >> right >> you need to realize that and -- >> you need to see if any company on the s&p 500

had a major shareholder that owned 80% of the shares-- >> you'd have to do what they said. >> exactly do you think the management team would ignore that? no >> the ceo, is he trying to satisfy shareholders or trying to steer the company to a great place in terms of profitability in the future? >> oh, because you have to recognize, too, if shareholders abandon you, what do you have? it's an interesting -- >> it is. >> -- case i think we'll look back on this in years and think what an interesting case this was. >> this is maybe something to talk about robert frank is going to help us more than 130 countries signing onto president biden's proposal for a global corporate minimum tax. in this case, it'd be 15%. it is a tax that will cost companies billions robert frank has more. hey, robert. >> good morning, joe multi-national companies will pay $150 billion more in taxes every year under the new agreement for a global minimum

tax.yies signed up fo the plan, scheduled to take effect in 2023 it has two basic parts the first is a new system of taxing companies based on where they earn their sales and profits, so their customers, regardless of their physical operations or headquarters this is aimed, of course, at the big tech companies that have channelled many of their profits through low tax havens like ireland or the caribbean companies with at least 20 billion euros in sales and pre-tax profit margins of at least 10% would face this new tax system they do have a special amazon provision that ensures that amazon still faces this tax system even if its margins fall below that 10% threshold the second piece is that global minimum tax of at least 515%. biden administration saying it'd end the race to the bottom in global tax rates it is also very important for

biden's plan to increase the u.s. corporate tax rate, since it reduces the incentive to move jobs and income offshore now, nine countries so far have not agreed to this plan, including, and very importantly, ireland, hungary, and several of those caribbean nations. now, negotiators hope to reach a final deal in october. of course, it'd have to face approval in congress a long way to go but, again, getting 130 countries on board was a big achievement. guys >> robert, thank you j jien joining us now, kevin o'leary, venture capitalist and cnbc contributor. and john hope bryant i don't know where you stand, kevin, on this if you're going to tax corporations, and i would argue, i don't know, i'm not -- i think you ought to tax individuals and, you know, corporations, you want them to do as well as they possibly can in your country to

provide jobs and generate taxes and -- the people pay and everything else. let's assume you are going to tax corporations what's wrong with this what's wrong with doing it this way? >> well, first of all, let me be the skeptic for a moment and say that looking back historically, g20 and g7 meetings, they're essentially cocktail meetings. nothing wrong with that, a chance for the leaders to get together hold hands, kumbaya, and tax everybody 15%. the chance that this happens, i'd argue, practically zero. at least two-thirds or at least half of these various con stitch yept -- constituents who go to the meetings are facing re-election shortly. just because they say they want to do it, they have to go back and pass it in their own governments. that in itself will be a huge challenge. just take ireland, for example i happen to be an irish citizen.

i'm pretty familiar with dublin, the suburbs. go in and have a pint, a guinness with any irish citizen about the idea that janet yellen, the u.s., the europeans or the british can tell them what to do i'd love to repeat what they say, joe, but i, unfortunately, can't. i'll tell you, the chance that happens in ireland, zero the irish understand the potential of nation building and corporate taxation is part of the competitiveness of it. that's how you're competitive. you can do other things to raise taxes in all countries, including the u.s., which does not want to put a vat tax in place. all the rest of the european countries are trying to go after big tech this way pabecause they have no tech sector. they regulated it out of existence a long time ago. the only way they can get tax revenue is litigate, sue, and join in efforts like these, which makes no sense this is going nowhere. that is why the market doesn't care competitiveness of nations will

remain those that provide a better environment for corporations will get the jobs. like ireland, like hungary, and like others who are saying, we don't care what you think. let's compete. >> john, do you think it's a good idea, both of these things, to have this global minimum and to raise taxes in this country back to 28% on corporations? >> whoa, let's deal with the 15%, which is agreement globally by the way, we're down from 40% -- is it a 40% drop in taxes from 2017, and corporate taxes have been dropping the last 70 years, as well as individual tax rates. let we say this. i think this global plan by president biden is brilliant, and secretary yellen, it's brilliant. no more hiding the ball. no more ducking. when i go to orlando, florida, i pay taxes. when i go there, it's whatever i buy. when i go this morning to utah, i'm paying taxes when i go there.

you know, i'm happy to support where i'm at by the way, my friend kevin must be the most optimistic pessimist i know or the pessimistic optimist. he is with his green background. you can't pay for the green background unless somebody invests in r&d wherever he happens to be sitting at i mean, every company who is a brain, every growth company invests in their product and their home court even the roundtable, joe, said that we need to put the stakeholder above the shareholder. those two things are connected the business roundtable is agreeing in their principles with what president biden is doing. i had dinner with the secretary of treasury last week. i thought, this is genius. it shows american leadership again, by the way. america has not been respected like this on the global stage for a long time. only america could do this only america could do this it is good for everybody, no more hiding the ball it provides reinvestment, and it will happen, kevin it will happen i don't want to say what i know,

but i have very good reason to believe this will happen, on merit. what people are against this is that president clinton quote, it's hard to agree to the truth when a lie is paying the paycheck so if you're a place that's hiding the ball, you're not for this but i love this because this says, stop the games let's knock it off, and reinvest in your home court by the way, a reasonable tax rate the tax rate was close to 100% on the individual, i might add, back after world war 2, with a republican president so we are whining about very, very nice spilled milk here. this is good for america >> all right must have a lot to say now, kevin, after that. >> well, frankly, let's talk about tax rates in the u.s my good friend john just brought that up. a reasonable tax rate. right now, the u.s. sits exactly

in the middle of the g20 and corporate taxation if biden's proposals were put in place, it would go from the middle of the pack to the very highest tax jurisdiction of the g20. now, i don't see how that's good for business i don't think that's a list you want to be on the top of frankly, people living in cities like new york, where you are, joe, and boston, and california and los angeles and san francisco, if biden's plan went through, they would be the highest taxed individuals on earth. is that american nah, i don't think so. so i don't think this is going to happen because we know the reversions would start immediately. where would they go? to hungary and ireland all these companies would follow the path of least resistance for their shareholders, just like they did a couple decades ago when we were over taxing them. let's not make the same mistake again. what are we trying to fix? the economy is on fire leave it alone don't touch it let it recover on its own.

itdoesn't need anymore government, and it certainly, at this point, does not need more taxes. let's wait i want to congratulate the biden administration, by the way, on the great job they did on vaccination rollout and also if they get through this skinny infrastructure deal. those are good for the country but this idea to build your mandate around taxing everybody in the world and making your own country the top tax jurisdiction on earth is a bad idea, not good for america. not good for jobs. by the way, i can't hire anybody right now because i'm competing with the government until the end of september it's extremely frustrating people that i'm paying are also getting paid by the government we have to stop doing this to ourselves. this is absolutely crazy >> john, final thoughts? you know, that 90% rate you're talking about out there, no one paid that. you know that. rich people were paying less than they do now back then what is a fair rate for people,

john is 50% okay, or do you want to go above that? if you work through june, well into july to pay off what you owe the government, isn't that enough should there still be more >> i don't want to be the rate at 50% that's not where we should be. >> we are already. >> with all due respect, joe, you are contradicting yourself there are carve-outs i'm highly complicated, and there are very interesting legal ways to minimize my tax burden, while paying what i deserve. let me go back to the substance of this. kevin just said something ridiculous we're at 13% -- 13th in the world in infrastructure. the number one economy in the world, as he said, but 13th on infrastructure so there are times to invest more i do agree with kevin, there are cities like new york that are probably overtaxed in the state. but on a national level, we are the special forces team here

wheels are coming apart in potholes in my city. we have got to ride the county on a road that can actually hold it i don't mean physical roads but people roads, infrastructure, human capital. you have to reinvest in your product. you want to be netflix, not blockbuster, which went out of business because it focused on the short term versus the long term nobody is leaving america to go to wherever you just said. we loov ve this country, the be on the planet, and we can afford to give more to get more i adisagree workers are coming back when you pay a reasonable rate. next door is going public, doing very well. a bunch of other companies found the same thing kevin, i don't have any problem hiring. >> i said final word, kevin. we'll have you back to talk more thank you. kevin o'leary and john hope bryant jim cramer's first look on

the markets. plus, the rise of retail traders and the potential impact on your money. weibo had been up by 27% at one point after bloomberg refuted the reuters report that the chairman and state were in talks to take the company private. t n'trerg says iist ue the stock is up 11%. we'll be right back. loyees need something different. oh, we can help with that. okay, imagine this... your mover, rob, he's on the scene and needs a plan with a mobile hotspot. we cut to downtown, your sales rep lisa has to send some files, asap! so basically i can pick the right plan for each employee... yeah i should've just led with that... with at&t business... you can pick the best plan for each employee and only pay for the features they need. my retirement plan with voya keeps me moving forward... even after paying for this. love you, sweetheart they guide me with achievable steps that give me confidence.

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♪ let's get down to the new york stock exchange. jim cramer joins us. i was just tongue in cheek kidding that apes, i said nut -- you can side with the nut cases. i don't mean nut cases i just mean some of them on twitter are so, you know, loud and, you know, they tell you what they think. i understand that. but if anyone takes ffense, i just -- melissa, i'm on the record, i apologize. i didn't mean nut case i just meant those that maybe

aren't fundamental sort of inve investors. they're trying to squeeze the shorts they're in it for a reason, jim, and they have every right to don't. we appreciate the democratization in the markets, and we welcome it. how is that? is that okay >> i think that's what you have to say i mean, you have to say, as you were talking about adam aron, he heard the crowd and he changed his view then there are other things, like today the marin software, they ran ashford hospitality up to 7, did refinancing, and now it's back to 2 what they run up is kind of random, and a lot of times it's, like, are you kidding me how high are you doing to take marin software, where they don't really have a -- i'm sure they have a company, but can they -- do they deserve to go up so much overnight? so i watch what they run, but -- and it does stend to be somethig i wouldn't invest in otherwise,

joe, to be polite about it. >> well, the discussion we were having is, some people are calling adam aron and the way he's handling this, that it is kind of a radical approach in that if he really thought as ceo that he should be taking advantage of these stock prices where they are to build up cash, to try to bring the company into the future, where it can be more profitable, that's what he should do. he shouldn't necessarily, you know, coddle, favor with people that are in it for maybe a shorter time and maybe for different reasons than what he is trying to do. is that fair >> he's been transparent he was first trying to get a vote for 500 million shares and then cut it back does he need the money i don't know maybe he is starting to get excited about being the last man standing he does have a lot of debt david and i often talk about the fact that the debt side of what amc has is suboptimal. adam plays to the crowd.

he recognizes who the crowd is i have to tell you, i enjoy him. i know that his approach is to basically say, you want to meme me okay, i'll take advantage of it and stay in business to some degree, by the way, gamestop did a lot of stuff. waiting for gamestop's plan, but typically the meme stocks i follow are companies that we would never, ever talk about on air. >> right. >> ever. >> all right, jim. >> ever. >> that was a really nice apology i thought i gave to the apes. >> welcome back to everyone. we can't wait to get going. >> love the apes love them. >> a little disingenuous right now. >> i donated to the ape fund that didn't help me. >> it was not disingenuous. >> you meant it. >> i meant every word. >> okay. >> but i was saying it in the nicest possible way. i call myself a nut case jim is a nut case at times. >> we all are. >> absolutely. just don't hurt my dogs.

do not hurt my dogs. >> no way. >> won the battle, i think -- well, tortured marly, but marly kept coming back i love dog, and they're rescue dogs >> jim, thanks jim cramer retail investors have an influx in june, $28 billion, the highest monthly amount since at least 2014 joining us now, valley erie gra, senior portfolio manager good morning i want to get your take. will we think, that was a crazy period of time in which retail investors were really active and forcing change at the very top of some corporations, or is it going to be a flash in the pan >> i don't think it'll be a flash in the pan i think that we're seeing rising act vivism really across differn segments of the markets. it is an interesting time.

someone used the term the democratization of the capital markets, and that's exactly what's happening if you look at the exxonmobil general meeting, and the fact that activists were able to get directors put on the board, to force them to deal with climate change, that's another example, if you will, of shareholder activism it is a fascinating time, and i don't think it's over yet. >> let's get to the markets here, valerie, more specifically in terms of stocks top ten active holdings, a lot are tech stocks in your portfolio. i'm wondering how you navigate that, and whether a 10-year yield at 1.42% is key to the outperformance, relative outperformance of big cap tech ver tus tsus the broader tech s. >> yields play a role. what we saw the yields really peaked in june, and then when they came down a bit, the growth stock started to rally again so there is an interdependence, if you will, between the

performance of growth stocks more broadly, whether they're tech stocks or other types of growth stocks, and yields. however, we do maintain exposure to other styles of investing, as well, including some value exposure, high quality stocks, high dividend yield. we like to remain diversified, and then really focus on the idiosyncrat idiosyncratic characteristics we can identify. >> valerie grant, thank you. coming up, the spac deal of the morning, don't miss the executives taking next door public via blank check companies. "squawk on the street" starts right after this

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♪ good tuesday morning welcome to "squawk on the street." i'm david faber. he is jim cramer we are at the new york stock exchange carl has the morning off let's give you a look at futures. getting ready to start trading for this week. you can see, i don't know, i can't make sense of that, nothing. right? >> no. >> that says nothing let's get to the road map because that says a lot more we start with the china crackdown. shares of ridehailing giant didi armb