month in august. we're going to show you what's moving right now china's tech crackdown intensifies overnight. the government passing a new law that imposes tough new rules on how companies collect and handle users' information it's really dare i say not what i do, a live report from beijing. the story of the morning has to be this, this dance performance with part of tesla's artificial intelligence presentation we'll explain what's going on here, friday, august 20th, 2021. "squawk box" begins right now. ♪ good morning welcome to "squawk box." i'm melissa lee with joe

kiernan. becky and andrew are after today. taking a check on u.s. equity features, can't get enough of the robot, the robot in quotes, we are pointing to a lower open, the worst weekly loss since june the s&p 500 is down about 15 points for treasury yield the flight to safety continues this morning. we have the 10-year note yielding 1.233%, coincides with the dollar index gaining for the week as well it's basically at a nine-month high at this point, so we're seeing that across the board in asset classes in terms of flight to safety, joe. >> dow losing i guess, i think covid a little bit, when i hear johnson & johnson because of that company's vaccine, it's a one shot vaccine that had lower efficacy, but -- or lower i guess effectiveness, but it was just one shot, but there's a ceo shakeup. this guy is young, been there a while at johnson & johnson, alex

gorske is going to transition to an executive chairman role on january 3rd as he focuses on his family due to family health reasons, served as ceo for nine years and vice chairman joaquin duato will take over, before becoming a deputy of gorske, appointed to the company's board and gorske, alex, a friend of the show and i think his nine-year tenure will be viewed favorably given some of his predecessors and the myriad of issues under the last guy, i go back to ralph, then the next guy was -- >> i don't have as good a memory as you, joe, but the stock is up about 170% since gorske took over as ceo which is pretty good there. not too much reaction in the market to this news. we'll continue to watch this three u.s. senators have tested

positive for covid after experiencing symptoms all three were fully vaccinated, angus king, roger wicker and john hickenlooper made the announcements yesterday, as new covid cases hit the highest rates since winter the number of daily deaths has more than doubled since the start of august. we alluded to it earlier this dance performance part of tesla's official a.i. day last night, and for those of you listening on sirius xm i will paint a word picture, we're looking at a lone dancer in a skin tight suit doing some funky dance moves. i would hurt myself. to techno music. the suit is all white and has a black hood and opaque black face mask, but pretty clear it's a human. elon musk watches from the wings with his arms folded before thanking the dancer who walks off stage. let's get to phil lebeau for a full rundown if there is a prototype it's smaller than that. right? the one that they're actually talking about, phil, years in

the future, is like only 5'5", 120 pounds, and doesn't look anything like that. >> 5'8", 125 pounds. >> yeah. >> that thing -- >> that was a heck of a performance, wasn't it >> yeah. i don't know if you like dancing, i can't unsee elon musk dancing and i don't think i will be able to unsee this dancing. my question and my very serious question to you, phil, and you know, he's a science fiction buff and talked about universal basic income being necessary when we do have robots, how many years away from an a.i. robot being able to do those moves i've seen these -- >> that is necessary in society to have a robot that can dance really poorly -- >> but if you could have something that's that agile, it's years and years away, but we have seen those dogs, phil, that look like exactly like -- >> sure, yeah. >> as you saw "the war of the worlds" series, the real thing

looks like the munsters in there. how many years would you say before -- >> joe, look, how many times have we seen boston scientific put out a demonstration video of a robot of some fashion dancing and moving and, you know, i wouldn't say acting, but mimicking the same actions as a human. i think that the technology, to a certain extent, is already there. i think the real question becomes, a, how useful is this, can it be replicated on a wider scale, and we'll talk about that in a little bit. do you want me to first go over what happened with a.i. day and then talk about -- >> let's do that. >> the plan for a humanoid bot we'll get the news out of the way. what did we say yesterday? this was going to be a presentation, if you were really wonky, into software, if you're into artificial intelligence, this was your kind of event. they basically laid out how they want to use artificial intelligence to improve autopilot in autonomous driving

and some of what they demonstrated and talked about is pretty impressive. it makes you feel like, yes, th they're on the right path here they're only at level 2 autonomy, not level 4 or 5 and you get in the car and it goes there is no reaction at all, no steering wheel or nothing at all. tesla is vodeveloping a chip, tn times the performance of the current one. then at the end of this, and we said this yesterday, that he would use this event as a recruiting tool. they were flat out saying, come work at tesla. who wouldn't if you're into this, you would look at this demonstration and say, now this is pretty cool, they're going to build a humanoid bot and that's the plan they plan to build it and it is expected to be ready next year, 5'8", can carry 45 pounds, the weight 125 pounds. it can lift 150 pounds here's elon musk talking about the humanoid boat and why they built it >> it's basically going to start

with just dealing with work that is boring or repetitive and dangerous. basically what is the work that people would least like to do? >>. >> by the way, i said why they built it, why they plan to build it, it is not yet built. he says it will be ready by next year keep in mind in the past he has said next year would be the deadline in the past for certain things like a million row bow taxis, that never happened whether or not we see this in some fashion in the next year is going to be interesting to see let's be honest, this is the pt barnum part of the job that elon musk is a master at. if you were into this, if you were thinking i want to do artificial intelligence work and saw this demonstration, you would immediately be reaching tout somebody at tesla saying i'm your guy or girl or whatever you want to say. tesla would be interested in hearing from you and that's part of what happened last night. it was a recruiting pitch.

>> i knew it was a human, a, i knew number two, it definitely wasn't me because -- and i knew it wasn't you to be honest, there's in way unless they had some kind of like titanium type reinforcements there, i knew that yesterday we had a guy who, phil, i know you've probably got some twitter, whenever we have gordon johnson on we get all this -- >> oh, yeah. absolutely. >> feedback. he made the point that you made, he went over like five other times where there were, you know, upcoming developments that elon musk has talked about and gordon said it's 0 for 5, so why do you believe anything that comes out. that's a little harsh, obviously. >> right but he also suggested -- right he is suggesting, gordon was suggesting that elon musk is pretty much making this stuff up and trying to pull one over on

people you had gene munster on afterwards and he said has he been 0 for 5 in some of the things they've promised in terms of when they would hit the deadline, yes, but they have made advancements in many areas in part because they have set these goals. you have to give elon musk and the team at tesla credit for that but in terms of if you listen to him and he says we're going to do this by this date, he's even said it in the past, joe, he has said look, i'm not that great with these expectations is what i would like us to do, but in reality, he even knows that when he has set out some of these deadlines it's not going to happen. >> i'm told gordon is coming back at 8:00 gordon is going to be on again at 8:00 for all you -- >> he will be ready to go after seeing that video. >> if he took that off do you think underneath would be one of the blue men from the group or something or maybe from -- it wasn't him because he's a

heavier guy. what about daft punk i'm told daft punk has a similar look >> just so you know, joe -- >> the blue man. >> joe, one year for halloween, my son went in a morph suit trick or treating. it's around this house i may put it on by 8:00. >> the best. >> i'm thinking, you know, slasher films never go out of style. that's a scary looking thing there. and remember, i mean, they got -- they did the scream mask, they made six movies after someone thought hey, this would be good to have a serial killer with the scream mask on. you can go a long way. >> this robot is built to be friendly and a robot you can outrun, you can specifically outrun this robot just in case >> you remember the -- >> top speed is 5 miles per hour. >> yeah. >> just saying it's supposed to be safe does not guarantee an a.i. thing is going to be safe they don't need us once they get really good at what they're

doing. >> once the a.i. -- >> they don't need feeding things and -- all the things we do -- >> we're weak. >> we are weak when they really get in charge and musk is towards our possible ob sa lessens, thank you speak for yourself ob sa lessens, maybe i know, from once i speak, but the future is daunting as we hurdle towards it maybe we should have thought about genetic engineering a little bit too not making any comments here. >> we're going to break. >> maybe we should have thought about bioethics. >> we're moving on. >> bad news is good news that was the message from cathie wood yesterday on tech check her comments on themarkets and valuations next. the crackdown on china's internet companies continue. the government passing a new data protection law overnight. we'll take you live to beijing

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that's not -- the discounting is worse now than the news actually will be. i actually feel better in that kind of environment for our strategies i don't think we're in a bubble. >> that was arc invest cathie wood on tech check her arc etf is down about 9% for the year focused on deflationary forces in the economy and believes deflation is a greater risk than inflation. i don't know immediately started thinking about the singularity and -- >> going back to the robot >> no. going back to the type of deflationary forces that have been so positive for us in terms of technology. the curveball basically pos its the advances for billions of years, the quantum leaps have become shorter and shorter and we have seen that in the last 50 years in terms of medicine and in terms of retailing and in terms of price discovery through

the internet and it's been unbelievably beneficial for us i wonder, maybe, you know, she's a big thinker, is she right these near term supply constraints, printing money and all that stuff, missing the bigger picture what we're figuring out in technology could be deflationary long term. >> when there's a line item in c pi for cell phone, think how much that had compressed over time which depressed the overall reading and so this -- the advent of the smartphone alone has caused this astronomical leap into productivity. >> i'm carrying around better than the library at alexandria right here, than the rand four floors computer from as recent as 40 years ago. >> in your pocket. >> exactly. >> that's what allowed the economy to get through the pandemic. >> maybe we're missing the bigger -- and worrying about

this sort of near term inflation maybe is a fool's errand. >> the robot is the next step going back -- >> segue back to the robot who wasn't a robot >> right >> the fauxbot >> that's a good one >> i try >> you do. the dow and s&p 500 are on pace to log their worst trading week since june. let's talk market with senior equity strategist at kevin her mention and kevin, from capital wealth planning. kevin, start off with you, you were just on this program about a week and a half ago and it sounds like a lot has changed in your mind when it comes to your market outlook why? >> melissa, you guys did a great job covering it last night on "f "fast. so much has changed. this week we're worried about inflation, delta variant, tapering, geopolitical risks, it's a pull back on the consumer and just that short of period of

time, we've seen that change now it started last week with consumer sentiment we came in with the worst read we've seen since 2011 and saw retail sales down this week. it's not just the consumer sentiment, it's also business sentiment. look at yesterday's philly fed survey it came in lower than expected and a lot of economists were thinking it's going to be higher we've got the consumer pulling back, we've got the businesses pulling back and i think that things have changed. now are we in a bubble i agree with cathie woods we're not in a bubble. can we see a pullback? we can and we will see a pullback i read your piece last week and you said that economists have been talking about a 5% pullback and they've been continually disappointed i thought that was an awesome line last week i agreed with you. two things have changed i think since you wrote that piece that have tilted my way of thinking a little bit one is china you know, surprise, china is a

communist country, personal wealth, these things are frowned upon in that establishment. >> right. >> and two, the delta variant, i mean i think it really is a third wave businesses are changing the way they're reopening. we heard about a lot of companies pushing back the reopening until january. personally i was scheduled to speak at a lot of conferences between now and the end of the year and across the board. all of them, they've been canceled, pushed back, gone virtual and maybe they found a better keynote speaker but i'm not going out and traveling. we're seeing things change and volatility is entering the market we're seeing it. and a pullback is going to happen. >> it's going to be 5% to 7% and i think it's already starting. >> so linda, what's your outlook? it sounds like you think there's so much cash around, so much liquidity that you sort of can't fight this at this point >> yes i think strongly that way and i have to thank kevin very much for reading my weekly piece. yes, i -- we're bullish at

federated for sure and i know we all talk about we need a 5% correction we shouldn't play for a 5% correction, you're not going to catch the top or get back in at the bottom and we're talking 5%. here's where i would agree with cathie wood in so far as these are exciting times, actually this is a time i think we're going to look back on some day and say we had a moment where we could have really invested the consumer, yes, there was a bad number which was really outsized in a bad way versus other consumer sentiment numbers. this week again, the bloomberg consumer sentiment number was good, the target ceo said his back-to-school sales are strong and broad. i'm rooting for the consumer and i realize i don't think it's you, kevin, i think we'll see some of my speaking engagements get canceled too and that's fine with me. i love the slippers i'm wearing with my nice top here. but i think it's -- i think it's bullish and i think it's good. if i may say, september is coming up, august/september

typically tough months for the market, but we may have peak variant numbers right now in those states with the lowest vaccination rates just as we get the booster to come in, just as the bonus runs out for the extra bonus for the workers, and they get back to work and i think, you know, i think you can see things really picking up here as we work our way into the last months of the year >> linda, sounds like we might see some sort of pullback but you can't play for that. it's too hard to sort of, you know, get in, get out, et cetera how do you keep your portfolio positions to weather through what could be a choppy period? >> yes, it could be a choppy period i think we have to stand back and say where are we in the cycle, very difficult with this one, but certainly we're not early cycle so you can't say i want to buy all value stocks you want quality we want quality growth and quality value. and if some of our favorite stocks on either side get a pullback, which is what we've seen rotations back and forth,

guess what, i still have trillions of dry powder waiting to be invested i don't have to sell, but what i've got already i can use the dry powder to buy what's being pulled back right now. we're fans of the epicenter stocks energy is just the posterchild for that type of group it's pulled back fairly dramatically it's the sector for the broad growth of the global economy which yes, we're slowing down with the variant, but the people who have had their vaccination and not going to the hospital, they've got a flu, they lay around the house for a while, and they get back to work. you know, i think it's all good for just continuing to invest. don't be too cute about it. >> linda and kevin, thank you. >> we have these guys, that robot had nothing on the guys. can you see these guys out here? there's a thing in the way they're going wild they have a really good dance

squad just can we see it on the -- can we get that they're going nuts you can't see it can you get it or no no all right. you know what happens out here >> crazy. >> you're on the -- usually higher oh, there we go. now they stopped they're up on the -- here we go. >> oh, yeah. better than the robot. >> better and he had been up on the little blocks that you can stand on and there's all kinds of thing coming up, look out here for entertainment during the break, coming up, news out of this morning on china's tech crackdown. the company passing a new data protection law live to beijing next as we head to break here's a look at the biggest premarket decliners in the s&p 500 ♪ ♪

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new this morning, china passed new data protection law that imposes tough rules on how companies collect and handle their users' information eunice joins us with the details. good morning, eunice >> good morning, melissa well, the personal information protection law is expected to be one of the most strict in the world. it's china's answer to europe's gdpr and essentially the focus of this law is to protect user' data it goes into effect november 1st and under the new law companies are required to collect the minimum amount of data for a service to offer easy opt-out options to consumers, offer them -- get prior consent for sensitive information such as

biometrics and also they need to ensure that they get government approval first in case they need to transfer the data overseas. this also comes as the cyber authorities unveil another new set of guidelines that govern the data for the car industry, the cyber security officials again made the point that data needs to be stored domestically and if there is a chance that the data needs to be transferred overseas, then that car company needs to make sure that they get prior approval from the government so this all comes as the chinese authorities here and the chinese lawmakers have a lot of agenda items on their plate the data privacy law also, they made some changes to the three child policy another item on the agenda that was a lot of interest here is the anti-sanctions law for hong

kong and macau and whether or not that was going to be expanded the expectation it was, but in a very surprising move, the government lawmakers decided to postpone that vote there have been a lot of concern in hong kong that its role as a financial hub could be undermined by this law and there are a lot of wall street firms obviously have big stake in hong kong because they have a lot of people and bases there and operations there and essentially this law would allow china to punish companies that abide by the sanctions of other countries, such as the united states since hong kong has been a focus of attention these days where the biden administration as well as the trump administration have been slapping a lot of tariffs and sanctions on chinese officials there, this has been a

big concern for the people in hong kong. >> and the hang seng had its lowest close so far this year. i'm wondering it seems like the chinese government is being very active in swatting down various parts of the economy you went through a laundry list of efforts they're revisiting at this point and there's also president xi's speech earlier this week assailing wealth and wealth inequality and a slowdown associated with the impact of the delta variant. is there any talk about the central bank there initiating any sort of efforts to stimulate the economy at this point? >> well, there is a lot of concern about the economy and exactly where it's headed because it looks as though the economy is continuing to slow down and especially as you pointed out, with the delta variant that is having a big impact on, say, the ports, the supply chain, just because when china wants to be strict about

something, they are incredibly strict for example, at the port of ningbo, there was one case of a covid case and the 1500 people were quarantined that just continues. it creates a lot of disruptions. so there is a concern about that and as of right now, people think that the government is going to continue to roll out some measures to support different sectors to try to kind of manage the economy properly, but not necessarily go all out with any large stimulus just because they also are well aware of the dangers of debt and are at this point trying to manage a lot of those debt issues as well >> eunice, thank you eunice yoon in beijing coming up, apple is reportedly the latest major company to push back its return to work date thanks to the rise of the delta variant much more on the return to work next as we head to break here's a look at yesterday's s&p 500 winners and losers

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a check on the futures on this friday session, headed for the worst week for the market since the month of june. the s&p looking to be down about 18 shares of deere right now the companies earnings beat estimates and raised its full-year forecast, a story we'll be watching but good news in terms of being an indicator for the economy and for demand, joe. >> yes that's for sure. apple meanwhile is pushing back its return to the corporate office until at least january at the earliest the company citing surging covid cases from the variants, an internal memo it previously pushed back the return to october from september rich lesser's global ceo at boston consulting group. i love consultants and i always

tell you that. the guy who comes in, the guy from out of town that doesn't have a job, that comes in and tells you how to do things that's not fair because consultants do a lot yesterday we had a harvard professor on that gave us some great ideas and thoughts that i hadn't had about returning to work five things to worry about like you don't -- don't push too hard and when you do come back, there will be remnants of the pandemic in terms of zoom and all these things, but don't press too hard to keep doing some of those because you got zoom fatigue already in addition to just figuring out covid mandates for the vaccine, what else are you thinking about? what are you telling people? >> so i'm really glad you raised that it's good to see you, joe. the big issue right now, the companies are wrestling with is whether and how and when to bring people back and what to say about mandates, about tests or vaccinate, the surveys you different programs we've seen

announced. you're right, there's a longer term question as we bring people back, people are tired, people are emotionally stressed, we see more mental health challenges, but they also miss being with their colleagues and the sense of community that you lose when you're only working remotely is enormous so we do need to get people back together we do need to find a way to reconnect. employees are coming back with different expectations, more belief in flexibility how they work, more desires for companies to recognize their individual needs and companies that think there will be a one-size-fits-all solution and we stay in 2020 or go back to 2019, i think are going to find it's harder to retain top talent than create the kind of positive environments they're looking for. >> i guess we're all envisioning some type of hybrid model, rich. there's two sides of the spectrum we talked about this as well with the harvard business school professor yesterday.

there's a contingent of corporate managers that measure how they're doing by how many butts are in the seats, she called it that, at 7:00 p.m. at night, the go getters, jeffrey katzenberg said if you complain about coming in on saturday, then don't even bother showing up on sunday you got these go getters on one hand and then you got people on the other hand that say look, there's been no lessening of productivity with that home work, so is there a kinder, gentler way to view it can you get just as much effectiveness by cutting employees some slack if they don't want to come back, rich? >> i believe that you can. i believe there will be ways to generate very high productivity workforces without returning to the models that we operated before the definition of if you're not in the office, you're not working, already was gone before the pandemic so many people doing their work at home or working on the road or in other ways we just didn't acknowledge it in

the way we built our models. the pandemic forced us to change none of us would have taken a chance to do what we were forced to do in 2020 and the first part of '21 and the truth is you look at the data, look at the economic output and the profitability reports, i mean, productivity has stayed high we've seen it can work in different models and we can offer different and better employee value propositions. i'm not arguing to stay with what we had last year or the beginning of this year we need to get people reconnected, back together, strengthen apprenticeship, create forums for brainstorming and creativity sometimes hard to do online, but we can operate in different and more positively impactful models for employees and still retain high productivity for our organizations. >> crazy stuff that comes every night and, i don't know, some of it you can trust i guess, some of it you can't, but a lambda variant, variants are going to keep coming, i don't know what that means about the future for us if we keep having it and

breakthrough cases, measuring as much as 30% of double vaxxed people, but all these things threw a wild card in anyone's plans to bring people back if vaccinated people can give it to each other to bring home to their unvaccinated kids, you're just back to square one, rich. >> can i push, because i agree with you, joe, the data that we're seeing is all over the map and often presented in confusing ways let me put a few things on the table that are really important here the first is, that the vaccines are working incredibly effectively. it's about 95% effectiveness once you cut the data by eight we're blending the fact that we've vaccinated on average more elderly and sicker population and then we compare that datas to the unvaxxeed that are younger and say weight working

and what's not when you cut it by age, across age groups, it's about 95% effective to be vaccinated the differences are dramatic by community. you look at the 12 states with lower -- at the low end of the vaccination curve, compared to the 12 states at the high end of the vaccination curve, the differences are 5 to 1 and that's not just 5 to 1 among the vaccinated, children, those less than 17, even most of those kids are not vaccinated and so the important thing to take away here is, we get these mixed messages, vaccination is unbelievably effective and unbelievably important and that's true at the individual level and it's true at the community level. the first job of every organization, i don't care public sector, private sector, does not matter, is how do we accelerate the vaccination curve to protect individuals, protect communities and to protect their families that is job one right now and a

lot of the way the headlines read are scaring people and thinking vaccinations are not working. that is not what the data is saying right now. >> the most important thing to remember, rich, a jab is not a therapeutic. it doesn't go in and kill the virus. it goes in and stimulates your immune system. if you have any type of -- if you're elderly, compromised immune system, i could name ten reasons why the vaccine would be less effective in an individual solely because of the unique status of that individual and that's what we -- you're preaching to the choir >> and just one -- joe, just one other very quick point the middle age, the 18 to 64s are so much more vulnerable to delta, thought they could get away with this in the last version, they are at risk and we need to get them vaccinated. thank you, joe. >> thanks, rich. we'll see you. i was kidding about -- you've heard that, the consultants, guy from out of town, doesn't have a job, that's the oldest thing in the book i wasn't talking about you

specifically >> okay. thank you. i've heard it, but we try to make sure it's not true. >> well, you know, you don't really have like a job at a -- never mind you're telling other people how to do things really well, right. >> i get it. coming up, check out coin base shares, buying half a billion in crypto currency. much more on the a.i. presentation from tesla shadowed by what we're calling this bot "squawk box" will be right back. millions of vulnerable americans struggle to get reliable transportation to their medical appointments. that's why i started medhaul. citi launched the impact fund to invest in both women and entrepreneurs of color like me, so i can realize my vision and give everything i've got to my company, and my community.

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right. >> they're incredible. >> that is -- much better than -- and it also shows, it's great out there right now in times square. >> it's back. >> hoverboards flying by guys dancing. >> crazy stuff a lot of the cartoon characters walk by here and ihe get to se what they look like. >> and then there's "squawk box." >> and "squawk box." oh, no did anyone see that behind me? >> we might be fined >> a full figured guy behind us that took his shirt off, right, and -- >> well, better the shirt than -- >> exactly >> all right coming up, if you're struggling and i -- you wanted me to go out there and i would like to do that, i would go out, but if i tried to do that i would -- >> tear something. >> struggling to understand the rise of popularity of tokens,

we're going to try to help you with that. collectible art. we have a unique explanation from the king really of nfts, gary, coming up next >> hey, "squawk box," that's hot. this is lisa. she's a posh virtual receptionist.

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>> a none fungable token you can sell anything from art to experiences and physical objects. >> we are seeing everyone is getting in on nfts

joining us now gary v, executive chairman and cofounder of vcr group. this appeals to me i would buy or be interested in owning paris hilton's this is hot. you need eight you need eight boxes we had a dog in one and and paris hilton in one saying, this is hot this is hot. it is starting to happen, gary, what you said would happen these things are valuable. >> this has been happening people have been buying digital assets all along people were buying sheep on farmville a decade ago

the reality is that people struggle to take human actions into context and project human behavior >> update us for people who have been watching you come on. your v friends >> that's right. >> that was an unmitt greated success. can you explain it again >> no. it will take two seconds >> update us on the results of the action >> vee friends was establishing something no different than harry potter or marvel but instead of book form, i did it through nft characters think of them as the original

disney cells they'll become a story and a collectible and also a three-year business conference i'll be announcing in 2022, 23, 24 ethereum was close to 3,000. now 3,400. there was $51 million in up front sales. the last few months, there has been $31 million in secondary sales of people sharing and collecting and i get a royalty against that it has been a huge success and led to what i'm excited to announce today around the vcr group, right now, paris is right. people you are talking about, covering the auction collectibles we've seen a ton of that

people are misunderstanding the smart contract vee friends was ip building but also a three-year ticket to a south by southwest, davos, major business confidence. i want to continue to innovate on the smart contract. >>. >> i kind of understood what you are saying i'm impressed. they've had massive successes. iconic artists should really be looking at this technology it is a huge win for the artists and the brand and early buyers i think the art scene will play out. the new thing, vcr group started

the great restaurant one of the most famous chefs in the world from lower fame and i created the vcr group. we are announcing this morning, we are launching the first nft restaurant a membership restaurant. we've seen these executions but the punch line is a very modern restaurant where the token is the access to the membership and your table but unlike let's say arayos where you own the table, the table and access is ownable by you and transferable on the blockchain this will come out in 2022 vcr/nft, if you want to get information. it is going to change the world. nfts are going to be a platform

for accessing membership but asset creation you go three or four or five times and then you might wan to sell it and make a profit. >> we have to run. i only have one thing to say about this idea. >> hey "squawk box"s that hot. >> that's hot. that whole idea is hot >> thank you, brother. >> we'll be back flush

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. >> the dow and s&p set to snap a two-week win streak. ahead, the state of the economy. the focus where investors need to know and a look at the latest project for elon musk. robots, althoughs that's not o. "squawk box" begins right now.

>> an expert on german techno. that's perfect i'm joe with melissa becky and andrew are off today we have the elon musk fauxbot. that's a real person >> we want to know when will ai allow for something. i guess some day it can resemble the computing power of the brain but it can't yet >> that's your desire because you want it. >> no, i don't

once machine learning is a billion times all human learning, we should be able to extend life hundreds of years. theoretically. u.s. equities down 159, s&p down 19 and change and nasdaq down 43 let's flip the board around. >> the federal reserve chair takes on the outlook a preview of what investors can expect good morning >> markets turning their attention to the fed's annual meeting in jackson hole. that news is that it is happening at all in the out break of the delta variant saying fed chair will not go but instead extending remarks

virtually. not known if concern over the virus is behind the discussion but it will be limited attendance jackson hole agenda does signal september for the time of the taper balancing the new delta variant and inflation concerns that is hot, hearing about how the pandemic will affect different groups in the region and country and how to conduct policy in that environment does the fed move quickly or wait until everyone is back at work >> take a look at these numbers

level of employment remains low among people trying to figure out how long does it take to remain open before closing before a reversal of policy. on the other side of the mandate, inflation it seems increasingly many fed officials are about as worried ofinflation staying high and worry levels staying low we'll have a number of top officials and full coverage that begins on thursday joe, if you decided on german techno pop, you have finally found the music that would permanently keep me off the show ♪ i'm done i'm done >> i came up with it, auto bon

>> hey "squawk box," that's hot. >> you said that's hot >> i said the title of the conference is hot. macro economic policy in an uneven economy that's hot >> was that a reference to paris? >> yes >> okay, good. >> i want to own that nft. we do say it a lot about inflation numbers. something comes in hot if we own the nft, we wouldn't have to worry about it >> or we could just play the clip >> the history is that joe tried to drive me from the show with hair music >> hair metal. >> i've been able to endure but the german techno pop, that's

the last straw >>. >> you know i'll play unbroken chain for you. >> you've given me so much useless information. >> jackson hole. >> dead n co >> we have to go so bobby will be there who else billy, mickey, bob >> where is phil

>> not with this particular band no unbroken chain there. >> i love it it is still hard to match jerry unless we put you up there for like eyes of the world or something like that. >> i just do the bobby part. >> tesla hosting its ai day in a series of tech talks to recruit machine learning talent. the highlight was this ♪ >> phil lebeau has changed and joined us in that garb that was not a robot and not

you. >> no. i can finda morph suit let's talk about this bot. this was the one morething showing if you were interested in working at tesla saying, that's pretty cool or at least what the company has to offer. let's explain the humanoid bot process. this is what they say the bot will look. 5'8" is how tall it would be 125 pounds, lifts up to 150

pounds why they believe they should build it >> the ro bot is not prompted by manufacturing needs. we are just obviously making the pieces that are needed for a useful humanoid robot. if we don't make it, someone else would >> he's saying, let's put it into a bot the face will be a screen with eight cameras on it. they say they are going to have it ready next year we've heard these projections

from elon musk like robo taxis all say, very cool going to get a lot of attention. is that really what the focus should be for this company right now? >> in hiring all these ai folks this launched the car and kind of furthers the notion that car itself will be a thinking autonomous vehicle

most believe that tesla is ahead of its competitors they showed this new chip that will help them with their dojo super computer, which they expect to be ready next year and it will be 10 times better if you look at all the analyst notes. this also shows the challenges and hurdles that need to be overcome when it comes to full self-driving technology. we are not there a level four or five we are not there i guess that means a yes at this point. >> i could not run it for long five miles an hour that's a 12-minute mile. he would catch me.

>> insensitive to stay in shape. >> did they put that guy back in a box and put the chain on it and lock it? you don't really know. >> yeah. okay never mind >> this morning is like a mash up for you next you are going to play the scene that says bring out the gimp >> we thought about the benefit and risk of showing something from "pulp fiction. >> that's pretty close the ceo of one of the world's largest privately held companies. ceo of cargill will be our guest. we'll be right back.

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our thanks. your rewards. a dry summer, rising commodity are things our next guest discusses on a daily manner great to have you with us from cargill. >> great to be with you.

>> is inflation transitory in your view? >> the fact is that it is here we've had a hot and dry summer disruptions through the supply chain, issues due to covid the weather remains a factor we are keeping a careful eye on it >> do you think those costs come in next year when you are modelling it out, what are youassuming >> soybean crop has been good. because of the drought, it will remain tougher this year

continued covid outbreaks and weather when it comes to agriculture production >> talking about the agreement to take over sanderson farms i wanted to ask you what that means. for chicken prices where prices have gone up over time

>> we made a commitment to the protein industry around the world. we were in the chicken business in the u.s. back in the 1990s. we think this is an important source of protein. we think consumers want choice whether change, turkey, fish or beef it is diversification of our business operating at scale, we can help the prices you can't help deliver such an important food source and have larger companies that can do it cheaply and keep costs down. our view is that we can do our

part to keep prices lower. >> you talked about protein, are you as a corporate planner expecting to be in that business in 10, 15, 20 years when you hear the earth cannot sustain that much protein development. do you see any near term effects with grain and what we are reportedly seeing? >> it is such an important question and what consumers and

ranchers and farmers are asking as well because of so much protein consumption comes from animal sources today that being said, it is not going to go away the question about the industry, is it going to be here in 10 to 15 years yes. however, one of the things we are doing is diverse ifying we are in pea-based protein. we have a plant based chicken nugget we are in target with a plant based choice the younger generation, my kids are gen z. they are a lot mover thoughtful and insightful in 10 to 15 years, you'll see

more plant based, more nonanimal based proteins but don't for get it is a very efficient and necessary source for many of the world as well. >> discussing our ability to feed the world in terms of grain. we can feed the world with 2% of the work force or whatever it is now. we've gotten better and better with the land and everything else it has never happened. has it >> they are incredibly innovative since the 1960s. we've been able to produce more

grain on less land often times it is political and trade disruptions. >> i ask the question chicken wings. that's a lot of chickens for two wings. that's where genetic engineering. >> exactly and plant based as well >> thanks for playing along. >> more than 100 million americans did not pay taxes in 2020 we'll talk about what changes

could come transitioning to executive chairman roll on january 3 the vice chairman will take over as ceo he led the pharmaceutical business and will be appointed to the company's stock we'll be right back. >> announcer: time for today's aflac trivia question. palantir's name was derived from what fantasy novel go aflac!!! what the heck, troy - that's not your kid! the aflac duck is just covering for sophie. same way he got me money to help cover her hospital bill when my health insurance didn't pay for all of it. but this isn't fair! that's exactly what i said! but then i learned health insurance isn't even supposed to cover everything. wait...for real? for real real. luckily i had aflac. aflac!!! get help with expenses health insurance doesn't cover. go aflac! !mm-hm! get to know us at aflac.com.

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now the answer to today's aflac trivia question. the lord of the rings. the magical artifact known as palantiri were seeing stones indestruction balls to see into parts of the world >> still to come, the open market's institute talk taxes under president biden. the futures at this hour the dow is down about 130

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>> not only the ultrarich who don't pay taxes. nearly 100 million americans paid zero income taxes in 2020 had something to do with the pandemic robert frank joins us now with more 61, thens that 39% what did romney use? he used 47%, did he not? >> i think so. let's talk about these percentages. 61% of american households paid zero in taxes last year. that is according to the tax policy center. 107 million either paid no income taxes or received funds from the government that marked a big increase from 2019 mainly due to the pandemic where

you had high unemployment. stimulus and tax credits saying the high number is of course transitory. but the share of americans who pay no federal income taxes has been rising. 1990, about 20% of americans paid no income taxes 2019, up to 44%. the share of taxes paid by the top has been growing the top 10% paid 71% of all federal taxes. the latest year. the top 1% paid a record 40% of taxes twice their share of total national income. in 2020, no american household paid less. and 43% paid no income taxes

those do pay payroll taxes and often state income taxes it is not like they don't pay any taxes, just the federal income taxes >> if they spend any money on themselves maybe they are rich. how many people take a loan against their stocks or the company they've founded. they never sell it they take a loan against that and co-pay zero on that.

>> as they call it and make loans around it. when you borrow after the stock, those are on filing. i suppose you could add it all up the people at the very top not paying taxes it is a small group. the top 1% are paying a record share of taxes the majority of that are w 2 earners. there are things we could fix in the system that right now overly reward wealth as opposed to work that could be fixed getting rid of step up >> as you said, w 2 earners get a bad wrap if you work through june 30

through uncle sam, you should probably be able to keep a lion share of what you keep from july 1 to december 1. they talk about fairness so much on the left except for that. joining us now, anthony with us. a wealth tax has been bantered about.

there are property taxes but in 400 years, something you've been able to keep just throwing that out >> i'm excited you brought john lock into the conversation here. if you are going to tax the capital after the people who have already made the money and had their income taxed, it will be a disaster because it is a miss alignment of the way they used the capital if i make the money and choose to invest it myself. they should be using a vat to help us pick up that black market, cash activity. with some limits on iras

i don't think it is going to work, joe. we have such a divided government they'll have to get it through >> the proponents say, we levee property taxes all the time. we are able to do that and figure out what assets are really worth >> real estate seems different than private companies it seems like an easy answer but doesn't explain how difficult it will be from an under funded irs. >> part of the reason why the wealthy pay it on a fairly low share of taxes they are also able to take advantage of things like propry terships and partnerships. there's a gap between what people owe and what people pay

you talked about the w 2 earners. those people pay 90% of what they owe the higher income earners don't pay their share of the taxes i don't understand the hand wringing of unemployed people not paying their share of taxes. we've heard about people like jeff bezos making so much money he's able to shoot himself to space like a space cowboy while regular people are working in their business getting injured or elon musk making more off

doge coin than the janitor waking up every day and working in the high-risk atmosphere. that is lower than their overall wealth top have 41% the top 20% own 90% of the wealth they are still underpaying relative to the wedge. the irs is unfunded. they don't bother with very rich people with attorneys that they can fight for a number of years. for those w-2 earnings not using things like cryptocurrency trading, sole proprietorships and other thicks to avoid paying

their taxes. >> the top 10% pay 70, 80% of the total tax bill it may have accrued wedge especially, those people with market assets. but not easy on wage earnings. they are all going out to share holders and i don't think that's fair >> like i said, a lot to unpack there. >> first, i would say, she's right about the middle class why don't we just eliminate taxes on them up to $100,000

implement that vat along the supply chain everybody gets taxed at the high end on the corporations, i would say these small businesses shouldn't be taxed at all up to $1 million. look what shopify just did is all over the country, growing jobs you want america to be the bedrock of growth. you have to move through the society to take on that risk taxing the capital moving through is a very bad idea

>> seeing the post i only read the "new york times. >> really? even though they blast me all the time, they are my favorite newspaper. we have over 1,200 people registered for the salt conference ahead of what we've ever done in vegas. it is vaccine mandated we have an all-star cast of people they'll be grade and of course there to interview, hopefully

joe you'll come. i'd love to see you. we brought the conference here to support the growth we can take it and create a lot of fomo in the first two weeks of september. >> i think they missed the chain smokers. going to be our big entertainment on the roof top overlooking the hudson >> what have you done thatcoul have -- plenty >> thank you more to talk about

talks ending a decade long deal. new this morning, apple expected to reveal a new iphone in the comingee a wksnd what investors can expect we'll be right back. this is hannah, she's a posh virtual receptionist at the ready 24-7 to answer your calls and assist your clients. you can't be in two places at once. let posh answer.

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major league baseball make a deal to end 70-year deal with topps. expected to go public later via a spac with mudrick capital. now that deal has been terminated by mutual agreement you may remember, this was the deal put together by former disney ceo who bought topps back in 2007.

those shares. what is left of it >> that stale gum. first it cracks. >> i mean in collectibles only do they own the catalog of all of the past cards? >> that's a good question. for spac investors now they were days away to approve the deal

think about the nft possibilities. >> elon musk revealing the hume add idea robot it will be used for dangerous, repetitive or boring work no one likes to do, apparently like dancing. that's not a robot, by the way we'll be right back. if your money is working toward the same goals, why keep it in different places? sofi is a one-stop shop for your finances designed to work better together. spend with sofi and get cash back rewards that automatically go toward your goals. like investing in stocks, etfs, and crypto. that's better together. or pay down your sofi debt sooner. that's better together. and that's how sofi is helping millions get their money right. ♪ ♪ ♪ and that's how sofi is helping millions aloha! isn't this a cozy little room?

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>> apple has gained and rumors of the iphone 13 expected to launch in the fall joining us now to discuss more, wall street journal personal technology columnist great to have you with us. >> the 12 was a big upgrade. the 13, how would you rate that one? >> i would not be expecting much i think last year, if you really follow the patterns. last year was the big reupgrade. recycle of the new hardware, new software, 5g this year, i expect to see same sort of design possibly new features around the screen new camera features.

i wouldn't bet much on new design but new features that enhance what we saw last year. >> what is your thinker about the 5g super cycler. you are pointing out you didn't think 5g advanced much year on year >> i didn't. i think you have to think about last year, ag pushed a super cycle. a lot of people upgrading not just because of the 5g and because of the upgrades in the phone. i don't see a lot of people running out just for 5g. it is faster but it doesn't

change much. >> will the chip shortage impact things >> tim cook said he expects to have supply constraints that could impact iphone and ipad they haven't been hit as hard as some other companies yes, analyzes and investors are going to be looking at >> i know you saw the robot, the tesla bot. i wonder your thoughts and whether you'll be reviewing a bot into time in the near future to have around the house to help you do things? >> i hope so it is supposed to replace repetitive, dangerous tasks. in my life, that is unloading

the dish washer. one of the things built into the reveal, it addresses elon musk's fear of ai he says this is not too heavy. about 125 pounds it runs about five miles an hour we should all rest easy with those two things built in. >> one thing overlooked is the dojo, the super computer of the inhouse chip which is more of the way of the silicon valley. does that mean a better supply chain. a lot of that is about control

and what they can do google is looking at that now. i agree yesterday was overshadowed by dancing robots >> coming up, nickelodeon ceo joins us talking streaming trends and so much more. much more. the futures have been down since june we are coming right back ur bake. we need more ways of connecting with customers, fast. i know some consultants with great ideas.

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good morning bittersweet. melissa is only here for the

day. markets open 90 minutesaway. headlines, johnson&johnson making a major executive change. heading the company almost a decade will be stepping down i know he's young but as i pointed out, hair goes a long way he's 61 years old. looks great. if you don't have hair, that's fine too he shoild dance like no one is watching tesla and elon musk. unveiling and unleashed this fauxbot. elon musk is going to build a

shorter version of that person it is going to look like that. 125 pounds the final hour of "squawk box" begins right now >> i wish you could put that fauxbot up in the kornger so we could have it up all hour. taking a check on how we can close out the week looking at the worst week of the market looking to lose about 20 we've worsened a little bit. flight to safety continues the 10-year at 1.35%

we are seeing a bit of a bounce. wti is down 1.4% brent is down. rbob gasoline in a losing streak some of the stories increstors will be talking about today. johnson&johnson leader stepping aside. taking the role of executive chairman he led for nine years saying now is the time to step down due to family health issues and because j&j is in a strong position. apple reportedly the latest to delay return to the office apple announcing employees will not

come back now until january. check out shares of lordstown motors recovering a small part of the nearly 10% it lost yesterday that took place after the share holder meeting lasted only 10 minutes. prosecutors are looking at the spac deal that brought it public as well as the electric truck preorders. >> china tightening regulations

shotting this privacy law doesn't necessarily apply to the chinese government but meant more to the chinese government but this law and user's data. under the law. companies are allowed to collect minimum amount of data for the service. required to obtain sensitive information, biometrics. easy opt out options and government approval to transfer funds overseas that data needs to be stored locally and any data you transferred overseas needs prior

approval these concerns will make it more difficult to expand one of the best practices here is that we'll collect more information for customers here they've also been discussing several other agenda items including the anti-sanctions law that was supposed to be expand the to hong kong and macao that law would have allowed beijing to punish companies that abide by u.s. sanctions. they've been concerned about by

this there respect a whole lot of details of what it would look like hong kong is known to be a premier place, a financial hub no specific details as to why this law was postponed or the vote was postponed but there is still expectation at some point it will be revived and likely go through. >> fascinating to watch. in an economy that size. i do see the growing pains that will be inevitable with income and equality that

will happen and people are succeeding it never is. you try to do your best. it is interesting watching the growing pains. if i was to come back as a world leader, i'd want to be in china. just do whatever i wanted. it would be fun. >> that would be if you came back as president xi jinping the big risk if you were to come back and be president xi is that everything would be on your shoulders. the risk is, if you make a wrong mistake, that is the issue >> i'd like to hear putin talk

about wealth he's supposedly the richest person on the planet do we know about xi. i'm sure he's okay moving on. i'm sure we are already blacked out. >> that information isn't necessarily open to the public >> the ground swell was so huge. can we get you back next week tuesday to friday. >> okay. >> so you are saying yes live on tv only because i've already told our managers who schedule us so yes >> kelly is in on monday

with the same type of enthusiasm if only we had a lebeau bot. >> if she's in all week, fly me in, i'll dot bot dance let's go over ai day and talk about the robot this was the kind of briefing you wanted to pay attention to they are going to be developing

a new d 1 chip full self-driving technology improving. here is elon musk talking about the future as he sees it >> all of this is about over time reducing the possibility of a crash or injury in the scope of the march of nines. how do you get to 99.999% safe >> whatever message they gave you is being overshadowed. the discussion of developing a human idea robot they first brought out a person in a morph shoot basically looking like what the robot will look like doing a little dance on stage

there you go that's a full shot it will have eight cameras and a screen for the face. talking about why they decided to build the robot and what it will do. >> it will basically start dealing with work that is boring, repetitive and dangerous. what is the worst people would leeftd like to do. >> under federal investigation looking into what caused a series of crashes and should there be a recall. that did not come up they talked about full self-driving technology, they did not discuss the vest gags. they are talking the human idea

robot. >> pretty good investment. you get a costume and a guy. look at us i think we are going to talk more, phil >> that's you. >> they drug that out? >> i bet you could do it now if you tried. >> that there was from dirty dancing. i can sing too i didn't ask them to do this wow. >> i'm sure you didn't >> you saw the sprinkler i'm envious on the guy's figure

in the center. theres it. take us out of here. >> staying with us to continue to discuss this robot. because why not. >> serving as an auto industry analyst. >>on one level saying cars are basically robots definitely if you want to understand the technology, you should think of them more as

robots than cars looking at the history of robotics and those that haven't. i don't know that you would necessarily leap straight to what they've announced with their robot. >> is it reeft just a thing to do or about they ultimately be a flewed and make the vehicle much more advanced in terms of autonomy >> i would take that in terms of a product. the human idea product has been part of our culture. there has been work done for a really long time >> in 2004, leading to soft

bank's applications of pepper. there are hillarious stories of how this robot keeps getting fired. boston dynamics has been working a long time on different robots. their main output is viral videos that's great it is important to separate entertainment and something serious. that rerating ford and gm has had. they are not coming out with a dancing, faux robot. does this highlight how far advanced tesla is in this race or does it show us tesla is going off on a tankent when it

just has to get the execution down >> historically thinking, tesla has already taken on these tasks. that's sae level five autonomous driving. that is something that will operate in a generalized wayer so basically go anywhere, do

anything when you take a problem that makes sense to automates that the only viable robot product is a roomba. that works great but the 350i7 dleen. are dads dancing is that a term? >> that's fine coming up. we'll talk about the most important demographic for can tent streamers skids. we'll talk to brian robbins. just finishing a big week for retail earnings. a few key reports out this

morning. same store sales compared to a slight decline the buckle beat earnings thanks to more instore shopping on "squawk box" on cnbc.

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major league baseball is ending its 70-year deal with topps. the current deal to end in 2025. they were expected to go public later this year. within the last hour, that deal has been terminated by mutual agreement. this was the deal put together by former disney ceo who bought topps. shares were down sharply should the u.s. be sharing more with the rest of the world right now. we'll hear from fda commissioner

dr. scott gottlieb >> first, the head of nickelodeon with us. you are watching cnbc. rk better together. save, spend, borrow, invest, and earn cash back rewards, all in one app. that's how you get your money right with sofi. i think you're going to like it here. umm, why is everyone... throwing things at me? look, as cfo it's my job to be ready for whatever's next. that's why i have my finance team, randomly hurl things at me. it's also why we use workday. it gives us insights, so we quickly pivot our strategy, people, planning, you name it. sorry, sir. i will aim straight at your next step. see that you do. would you like some coffee? workday. the finance, hr, and planning system for a changing world. ♪

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>> the pandemic put more people in front of the tv than ever before children ages 2 to 11 are

watching more than 20 hours of tv a week. more than 11 of those hours are on a connected device. president and ceo of nickelodeon. also serves as paramount plus chief officer of entertainment for family and kids. patrick star has his own show. when did that happen when was the first spinoff who else has one squidward. >> patrick just launched his own show this summer the first spinoff launched this march. came from the sponge on the run film

we launched patrick star this summer we are well on the way with the whole sponge bob universe whether in their own films or tv series >> that is the gift that keeps on giving. we are not talking about kids now, i don't think >> no. sponge bob is truly ubiquitous he might be the most popular animated character of all time >> i don't know what you are paying patrick sandy needs her own show man, you must be in our development meetings >> wow, that's a good tease, isn't it >> really good

when you go to bed at night, how do you make streams more profitable >> we are really excited about the momentum our offering has been really strong is our kid's content. we are a global leader you mentioned sponge bob today is the release of the paw patrol movie the biggest franchise in the world. we want to continue to leverage our biggest franchises like sponge bob, paul teenaged mu tent ninja turtles what the audience is telling us is that they want more.

that's the case with paw patrol. not only the biggest franchise in the world when it comes to viewership. >> what seems to be shaping up to a loyal audience. does it help that some of the biggest franchises now are those that parents themselves have grown up with? >> you are so right. it is really a big advantage that we have

nostalgia is so important. i have a seven-year-old daughter i want to sit down and watch with her in fact, one of the biggest groups is icarly that combination put together. that's the number one show for us around the world in streaming. >> do you see disney plus as competition or should we think about it differently seeing the audience is children >> sure but look, there is room for more than one or two or three or four. >> kids are enormous consumers they seek out what they want

we think there is enough eye balls to go around >> blue's clues. i've been sitting at home wondering what to watch? white lotus. i had no idea what i was missing. patrick star i don't have to keep a looking at adult content that sounded bad >> maybe you meant that. not to say anything wrong with that >> we are really excited about our turtles film which comes out in 23, seth rogan and his team are producing more and they are thrilled with that film. it is really funny and

entertaining seeing that overvalued or how does it play out. >> i think there will be a few clear cut winners. talking about the franchise i control with kids and family huge huge properties whether mission impossible, south park we feel really confident with the ability to attract global partners keep them engaged and coming back that's what we are focused on here i think our future is bright

the other thing for us, it drives all of our lines of business cp, gaming, liveentertainment. patrick star got to get paramount plus. >> although i watch peacock nonstop. >> most we do. >> coming up dr. scott gottlieb joining us the day after we

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three u.s. senators have tested positive for covid. all three fully vaccinated making announcements yesterday, the news comes as covid cases are the highest since winter joining us now dr. scott gottlieb, former fda commissioner his new book, uncontrolled spread how we can defeat the next pandemic is out in september great to have you with us. the news of the three fully vaccinated senators having breakthrough infections, what does that do in the effort to vaccinate all americans.

>> i'm not sure it is going to do much. there is a risk people vast nated can develop. the original premise is they reduce the risk of serious disease and hospital idsation is still in tact. the vast majority of people getting in trouble with covid are those unvaccinated it can pierce protections offered particularly if you were vaccinated a while ago as these senators probably did. they were vaccinated a long time ago. people need to take appropriate cautions you can still become a vehicle for spread in your community >> what do we make of the recommendations that americans get booster shots.

do you believe the science actually backs this up in terms of the need for a booster and timing for a booster >> what you do see from the data is declining immune protection over time in the form of circulating antibodies more pronounced in older individuals. particularly nursing homes what's probably happening is that over time, because delta is such high virus levels early in the course the high tider levels of delta

can overcome the cells in your blood. you become infected. the vaccine induces the production of those cells. that's preventing severe disease but it takes a few days for those cells to kick in and you become infected. that's probably what is happening one of those may be the nursing home population and it may be a way to get to that population sooner.

we've seen in hiv or even flu some of the initial anti-virals figured out how to mu state around it. it could be durable. three in advanced development. one by pfizer. another by merck that are probably the two furthest along. the other by roch. i still think we'll vaccinate against this >> one other question that

occurred to me just thinking about 0 science. why would a spike proten generate a greater antigen response than the whole virus that you get from being exposed to covid i would think having the disease would give you a better response but you are telling mes that not true >> the data doesn't necessarily show that. only certain parts of the virus are highly immunogenic the concentrated form lay of the spike protein, you are able to elicit a maximum amount of immune protection. >> asking you the report from the cdc focusing on information

from canada that shows the moderna version is seeing higher rates of myocarditis >> i haven't seen the data i do want to be careful making any claim around these given my role with pfizer i think we've identified the risk fairly well in terms of where it could be more pronounced with younger males and what they look for cdc has the full data sets.

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just in case you hadn't been watching this morning. that's not a real robot. elon musk says one just like it. a little shorter will be working in his factories next year although tesla does have a history of rosie projections that don't pan out and our bests, who love tesla and love wearing that suit and i don't know who to start with gene, was that effective and did you see things that excited you about the prospects for tesla stock and then i'll get to gordon >> i will start with what was the purpose here there was room for optimism. if you used the measuring stick,

it was some disappointment the future there is not around elect indication but far ahead of other carmakers and where it is going relative to autonomy then the skitt around the bot reminded me when elon broke the window of the cyber truck. it was painful at a certain point to watch it really spoke to what the ambitions of this company are whether hvac, solar, storage it is not going to be out next year. >> it will probably be five plus

years but it speaks to a company that wants to take on big problems i think this concept of really laying out this vision this is exciting for what is the land grab or the most treasured as assets of engineers and getting engineers working on transform tiff projects. >> that might have been intentional too. i guess you tried to see through some of the "the greatest showman"ship you tried to see through it. some people, i heard from some said, when musk talks about years oven mars, it is 637 days. he could be accurate maybe using

a different time frame >> yes i think what is very important and what made us drop our jaw. for years, the moat and benefit they had was test collecting miles and gave them significant advantage over every other automaker. what we learned is that they are not doing that they are using simulation taking videos and then having humans to feed into the full self-drive technology that is miles away of what everyone thought they were doing. feeding that data and they were getting smarter. we learned last night that is not true they are a stair step function down i just want to read my notes here he told me if tesla is using a simulation which they said they

are, they are 20 sigma behind wamoo and whatever nitsa is doing now will be childs play with respect to what other regulators will do last night, they spent half esse to come work for them to work on a product that they've been selling for $10,000 since 2016, meaning the product they've been selling, full self-drive does not exist, their level two effectively does not exist that is astounding people have paid $10,000 for something that does not exist. there could potentially be regulatory and customer pushback there. and then lastly, you know, you just look at all the other promises he made and this woman that came out in a leotard, which they called a robot, when you think about tesla's auto that's running into holes online, if you look at the

videos in garages. this is kind of like a full parody, but they were serious. i think there's real big cond concerns you thought they were collecting these models you thought they were feeding it to their neuronetwork, they're not. that's a big difference, a big change that's a negative. >> can i respond to that >> yeah, yeah. gordon, i understood it was late last night, perhaps i had dozed off or was in a foggy moment, but i understood that they were using a hybrid model of actual miles and simulated miles and that they wanted to merge the data i did not take it as they have divorced themselves from using actual miles, and i still believe -- i need to go back and revisit my notes, but if that's the case, they're using a hybrid model, i think that is a competitive advantage. >> they're not using -- they didn't say they were using a hybrid model they say they were using simulation, and also, gene, if they were using -- we've said

for a long time they're not collecting this data we never believed that if they were, they would have more essentially servers than google or facebook has to collect all that data. so, again, i think this is a stair step change in tone. you know, again, you got to look at this, some of their competitors like -- or their suppl suppliers, and panasonic and toyota, this is parody but again we spoke -- >> gordon let me ask you a question -- >> and they have big concerns about them us use simulation. >> are you saying that tesla is no longer using data video captured from their cars to help train their ai >> what i'm saying is our belief is they never were and i believe

last night they admitted that. you may want to go back and look at the ai data. >> i heard something different. >> and the neuronet researcher we spoke to confirmed that. >> we're going to have to end it there, gentlemen, good to have you both on again, gordon. >> that's a big allegation by the way. he's basically saying tesla has been lying for years >> coming up much more on the market dow futures well auoff the sesso lows stay tuned you're watching "squawk box" on cnbc ... get decision tech. for insights on when to buy and sell. and proactive alerts on market events. that's decision tech. only from fidelity. what if you could have the perspective to see more? at morgan stanley, a global collective of thought leaders offers investors a broader view. ♪♪

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little more than a half an hour until the opening bell on wall street. futures have improved. let's talk about the week that was in the markets and the week ahead. joining us is greg branch, joann fien knee partner and portfolio manager at advisers capital management it could be the worst week since june, kind of was a little bit of selling we heard some stuff from the fed about tapering we had some bad retail sales numbers and we lost a war.

so what do you think are the most important features of this week for next week >> i think the most important features point to what we're going to hear at jackson hole. we saw those fed notes and those fed notes all but admitted what we've been talking about for a few months now is that it's hard to make a coherent argument at this point that the labor market needs additional help. we just saw a pandemic low in jobless claims numbers at 348,000. that's following pandemic low numbers on august 5th and 12th as well in the mid-3s as well. we just saw the economy create 1 million jobs last month, about 1.9 million over the last two months, and now available jobs outstrips by far the available workers willing to supply labor. we have 10.1 million openings and about 8.7 million people looking for work it's hard to make a coherent argument at this point that the labor market needs accommodative

monetary policy to nurse it back to health. on the other hand, i think we can make an argument that the fed needs to turn its attention to inflation, and of course we saw growth abate a little bit. we saw 50 bips on cpi this month as opposed to the 90 and 74 we were seeing in the prior months. but as you know, joe, my thesis is that the supply chains aren't going to bounce back in the way that the fed had hoped to fulfill that transitory label that they had been putting on these inflationary pressures our supplier and our trading partner countries are not nearly as advanced on the vaccination curve as we are. taiwan is at 3% fully vaccinated, and so closures there will keep our supply chains somewhat fractured. >> and joann, you know, we're a business channel we cover business, but the -- some of the events that did happen, some of the heartbreaking events for

veterans and for all americans that we saw play out this week, which obviously inundated the air waves, does that hurt market sentiment? there were some people that thought the market might be down even more on the events in afghanistan. does it, in your view, does it change the calculus for whether the biden administration can get everything at once to get done >> yeah, you know, joe, that's always tough to call the way politics are going to go i think they're separate issues, though i think there's certainly a great deal of support for the bipartisan infrastructure plan s and i really don't see the challenges in afghanistan derailing that focus among both republican and democratic lawmakers. so i don't think so. i do think that anytime you get an explosion in geopolitical instability it does roil the markets. it reminds folks there are a lot of other sources of uncertainty out there, besides covid,

billion besides inflation concerns i think greg is right. i think a lot of folks are looking towards next week's jackson hole meeting and what might come out of that i think people are fundamentally misunderstanding the nature of this recovery. it's going to take a while. >> we appreciate t, somehow it got tonight 8:59 and 50 seconds. thank you, i know it's short greg, thank you, i'll see you next week. make sure you join us. "squawk on the street" is next ♪ good friday morning, welcome to "squawk on the street." i'm carl quintanilla with morgan br brennan at the new york stock exchange futures are weak, they're well off the early morning lows as these growth concerns widen on the delta variant. hospital deaths six-month high, oil's down seven straight days, ten-year about 1.4 futures in the red, the dow is on course to erase most or all of august's gains.