bitcoin surging past $52,000 over the weekend el salvador is the first country to officially adopt it as legal currency. ryanair walks away over the order with boeing. and a big win for marvel at the box office the latest superhero movie breaking records over the labor day weekend. it is tuesday, september 7th, 2021 "squawk box" begins right now. good morning welcome to "squawk box" here on cnbc i'm andrew ross sorkin and joe kernen and melissa lee becky is off today

let's set up at the beginning of the sprint i think the post-labor day sprint from now until christmas with maybe a break at thanksgiving for half a beat the dow will open 76 p apoints higher let's show treasury yields you are looking at the 10-year note at $1.36. >> summer is over. >> school is back in session >> school is back. >> happy new year. rosh hashanah today. >> that's right. >> deciding the crazy new world, i would come in and do a little bit of stuff we celebrated last night

i'm here >> does it start early >> yom kippur is coming. we fast. >> when does rosh hashanah start? >> no, no, it started last night. we did a family dinner outdoors in new york city at a restaurant first time we had ever done that new thing. usually we have dinner this year, we decided with the grandparents, to go to an outdoor restaurant we brought candles and went to a mexican place. it was a very revelatory experience for the sorkin's version of rosh hashanah >> modern. >> you can have a margarita at the same time. >> can you >> i didn't. others did yes. >> you can >> yes we had a lot of chips and guac

i thought you would appreciate that >> you could have one. >> not at the same time. >> you're young. your liver said bring it on. i showed a picture of the girls out there and they had a little wine they said don't get sloppy drunk. >> a little wine will not get you sloppy drunk >> it is clear that is not an option for us at 3:30 a.m. unless you stumble in here like foster brooks. i'm dating myself. hangovers hurt more than they once did >> i think you viewers think we're stumbling in >> did you just wake up and read the teleprompter that's it. >> occasionally. new over the weekend anthony fauci said the u.s. will start to administer pfizer

booster shots the week of september 20th moderna could be delayed because the pfizer may be approval in time for the rollout people who received the moderna shots may have to wait longer for the third dose dr. fauci said they will release data on mixing vaccines. regulators have not announce planned for a j&j booster. doctors are expecting a bump in the covid cases along with travel tsa data shows air travel doubled compared to 2020 more than 3.5 million people traveled on friday and saturday. that is down from 2019 totals. good news. un expanded unemployment benefits ended yesterday. an estimated 9 million people will lose that aid while another 3 million or so will see weekly checks reduced by $300

the biden administration did not fight to extend the added benefits because there is a growing view in the white house that the economy is i bemproving despite the jobs report on friday el salvador bought roughly $29 million of bitcoin ahead of the adoption of the legal currency announcement today. el salvador brokers would buy more as the deadline approaches. this is the first country to put bitcoin on the balance sheet and hold with their reserves. they can sign up and transact. users will receive $30 of bitcoin when they sign up. that is a push to speed up adoption people here say i have bitcoin i can see why in places where

you work hard for your money and worth half the next day. devalued for you, i'm so sick of turkey at christmas why not mechanicsxican food >> for christmas >> the ham the turkey the tryptophan i fall asleep. margaritas it is suitable for any holiday. >> you should call my great grandmother. it was her idea. i went to a place downtown the service was great. we had a good time >> did you have an entree? >> was it family style

>> no, everybody picked. we picked everything across the board. >> how did it fit in >> we sort of did our own ceremony at the table. it was funny people were walking down the street people are looking what are they doing? candles and the hala at the mexican place. >> i think it is very modern >> modern. a covid modern >> opened up all possibilities for you. >> good. we have news this morning to tell you about which is softbank shares are soaring look at this after the company announcing an equity share swap with telecom with 45 million call options in t-mobile from softbank at $118 per share it is equal to 5.3 billion dollars in value

it bring the stake in t-mobile to 4.4%. it will get 225 million shares of deutsche telekom. they will intend to purchase another 20 mt-mobile call options. they have made it clear it would like to own a majority stake in t-mobile of course, it lost and is getting back or trying to get back that is what they are doing by purchasing this stake. softbank, for the first time is taking a stake in deutsche telekom. that is all you need to know we'll talk more about it in a little bit we will talk to ceo marcelo claure he is joining us at 8:15 a.m

we will talk to him about big tech and wework. >> do you think this was forced or encouraged by the big chinese tech shtocks which they had exposure had a terrible year >> we need to talk to him about alibaba and that business. they are big players in the didi, et cetera. coming up, we get ready for the trading week ahead "squawk planner" is next we kickoff this fall after labor day. we are all back. dow looking to open up 18 points s&p up penn nationalceo jay snowden and brad smith and kevin brady and reed hoffman. >> announcer: this cnbc program is sponsored by td ameritrade.

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time for the "squawk planner" for the short week. thursday's jobless claims give us a read on unemployment following the disappointing jobs report from friday it is a light week from earnings we hear from lululemon and then kroger on friday we have chief investment officer and the portfolio manager with

us good to have you with us kevin, last time we spoke, you are expecting a pull back of 5% to 7%. you still stand by that? >> i sure do, melissa. we have been talking about this since last october i feel like the broken record. the boy who called wolf. pull backs are normal course of action some time after the option expiration from september into october, it is likely to see 5% to 7% for sure >> you could have missed a lot of points from october to now. how do you position your portfolio? if you believe in a pull back is happening, which you have for a year now, you don't miss out on the up side? >> we had only a small percent of the portfolio in cash, melissa. 8% to 10%. we have been benefitting i think you can look at

industrials and materials and energy stocks. dow, conoco phillips and caterpillar. a lot of companies have come down even more so than 10% correction caterpillar is 14% off the highs. if we are looking for good value, there is a bit out there. >> so you are looking at cyclical sylvia, you are going for cyclical, but other category like semiconductors which some argue is expensive >> they are expensive. semiconductors have a great story into the future. so much of the trend of digitalization depends on semiconductors now pretty much the 5g rollout everything from the augmented reality to artificial intelligence to the cloud. all depends on semiconductors. we have the supply/demand story there. prices will push up in the short-term, but the demand

continues to keep prices high for the longer semiconductors are key >> you believe that sector could get a boost. what companies are you specifically looking at? >> the bill is going to lead to billions of dollars of spending in alternative energy. particularly hydrogen. hydrogen will do well. it will be everything from charging stations to the companies that store and produce plug power and itm fuel cells are going to be a big investment in the future bank of america put out $11 trillion of investment is going into the space within the next 7 to 10 years. with all of the world looking to go carbon neutral, there will be a big push for hydrogen. anything related to that is going to be a good opportunity

for investors. >> kevin, i can't help but notice you like conoco phillips. that is where the other side of the coin is, per se. why do you like it >> we like it for the dividend, melissa. a history of growth. the energy names have come down a little bit i'm not disagreeing we will all drive electric cars or flying cars for the foreseeable future after reopening the economy after the third wave of the pandemic, you need to own energy if the markets stay flat, we get paid while with we waitsylvia, k drop >> i think we will end the year on the green i'm bullish. there is loads of market liquidity right now. we have trillions of savings on the sidelines yet to be deployed

there is nowhere else to put equity earnings have justified the high pe valuation i'm very bullish going into the end of the year. i think we will have voluatilit and bumps along the road we see it with the variant whether it is delta or mu or the market pulls back. the strong growth until the end of the year, the jobs numbers will improve as more americans get vaccinated travel and leisure and hotel industry has been banged up. i sexpect that to be a leader bullish and high quality and 5g and travel and leisure >> sylvia and kevin. thank you. we will talk bitcoin and bitcoin pulling back from the weekend highs. we talk to the ceo of grayscale to fix out what direction it is headed in next before we head to break, here say look at the pre-market

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in filipino: you'll always be in my heart. i have a new column this morning. about board diversity. this is not about the lack of it in public companies, but private companies. 18 top venture private companies in the united states including black stone and others have invested in 843 private companies that have gone public the last 20 years. according to the research by the board alliance, of the 4,700

board seats created, only 49 of them have been held by black directors. 1% of the thousands of positions created over two decades a startling number when you think about it not just one thing to talk about the ceo position and you can look at literally count them on your hands over the last 20 years. you think about the boards we talk about public companies we rarely talk about private companies. i argue it is the private company stage, if you will, that culture gets created in the infancy of all this now what we are seeing is people rushing to go public and add somebody to the board for diversity purposes or other things it is fascinating. i wonder if there is more

scrutiny not just on public companies, but the private companies. >> inasmuch as cup pensions funds are pushing diversity efforts and if they are allocating money to the funds, they have the power to say something. it seems like it is a matter of time, i imagine, that change happens. >> i think it will happen. i think it is taking a while the numbers sort of tell the story in a way tomorrow, on "squawk box" we speak with gaby sulzberger she is a member of the board at eli litly and mastercard and others. coming up, the marvel latest for the weekend box office we will bring you the box office numbers. that's next. >> announcer: executive edge is sponsored by at&t business

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good morning welcome back to "squawk box"

here on cnbc look at the futures this morning. dow opening 16 points higher nasdaq opening down 10 points. s&p 500 in the green for now round up one point it was a big weekend for the box office for "shang-chi. it made $90 million in the united states and canada "shang-chi" introduced the first asian superhero. it was released exclusively in theaters and not on the streaming service simultaneously a positive sign for movies in the fall should we look at a chart of amc? >> i would think this is good news this is a real test. some of the other releases were simultaneous releasing and box office this is just box office. >> creates the window.

>> the power of the box office and what it means or what it means for a franchise and i'm happy to see this one succeed. the first asian superhero in a ma marvel movie at the time we are fighting asian violence. >> have you been to a movie theater? >> i have not. i hardly went to the theaters before the pandemic. >> are you back in the theaters, joe? >> we were going to go when we were down south. we were going to see "stillwater. we never got around to it. i watched it at home >> what is the review? >> of "stillwater. i liked it >> it's on my list. >> the star of "call my agent" is in it i'm going to give away too much. not a great or optimistic.

i don't know if you will like it he certainly is very loyal to his children and sacrifices his own happiness in life. you find out maybe his daughter wasn't what he thought she was >> is this the moment we should talk about michael williams? >> we went together on a date. a bro date >> a couple of years ago >> unusual in and of itself. >> chalky white is one of the stars. he was intense >> lit up everything he touched. elevated it all. one of the character actors. >> omar. scary. he was -- not good you know, he was up for an emmy. i haven't seen it it >> people believe he's going to win. >> just last week, i didn't get

to read all of it. there's omar i didn't know he was in this "love craft. i haven't seen it. big write up my son always sees it. >> 13 days away. emmys. very sad new over the weekend here. ryanair and boeing is the biggest customer says it is walking away for the order of the 737 max. r ryanair bought the aircraft last year and it became clear the pricing gap with the partners could not be closed. both sidesagreed to waste no more time on the negotiations. house ways and means committee will be debating potential tax hikes designed to pay for the democrats $3.5 trillion spending plan

ylan mui joins us now. >> reporter: you are right they are finishing the text on the $3.5 trillion package this week the committee is debating the changes in the tax bill. that happens on thursday the deadline for lawmakers to wrap up the work is september 15th there is no penalty if they miss it however, democrats also want to move the package alongside the bipartisan infrastructure bill slated for september 27th. democrats have to start making decisions here particularly on how they will raise enough revenue to pay for the plan the list of options obtained by cnbc include the choices of raising the rate on corporations and wealthy households there is an idea of excise tax, a cap on what democrats are

calling mega retirement accounts and requirement that billionaires pay taxes on unreal e unrealized gains it would apply to only 600 people, but raise billions of dollars. democrats have not said how big the spending package should be that is determining the revenue should be raised back to you. >> a lot of scuttlebutt around over the weekend some things may or may not survive. 25 probably do on corporate taxation that's what you get manchin and sinema on board with that. manchin said -- 3.5 will not fly. he said no way i'll stand firm. 3 or 4 max for me. do something for west virginia and i'll do 3.4 is what he is

saying >> reporter: you look at the net. what is the net going to be? what is the net spending $3.5 trillion is the spending. how much revenue do you raise and the impact on the deficit? i thought it was interesting in the document >> they need everybody, ylan >> reporter: they do >> i don't know. it is chase. i don't know what he is saying he is saying let's take a pause. inflation. we're spending a lot of money. i don't believe him. his con his we'll talk to kevin brady about that kevin never saying anything about manchin. what do you think manchin would do sorkin did you believe him when he said i'm not doing 3.5?

>> i think it will be lower than that >> you think this is bernie's deal. 3.5 was bernie's deal. i won't characterize the dream i don't know what they would be happy with 2 >> what would you be happy with? >> i would be happy with some of the infrastructure i'm not happy with any of this. >> zero? not a dollar >> i would do the infrastructure i would make sure what they did in new orleans with the levees do that. you can learn a lot. harden the grid. bury power lines do hard infrastructure the other stuff. were you here when i called it metaphysical or spiritual? >> you will do hard

infrastructure even in blue states like new york >> i will give some to your favorite state cradle to grave. that's not what i want that is euro socialist 1% gdp if you do that. the biggest expansion of government since lbj you have a great government. government gdp is awesome. private sector is .50% there are people who say we need to do that we need to forego gdp growth because of the decades of inequality they don't understand the person's well being is measured by the gdp we have grown 40% faster than europe of the past 50 years. >> what about the infrastructure >> we don't need as much if we don't do the 3.5 >> on the corporate side or

individual you don't want to touch anything >> i would try to do some things if you want. i don't know what we do about people that borrow against their trillions. if you want to do something, fine i don't know about a wealth tax. if you borrow against appreciated assets and they die and get marked up. >> what do we do with the farms? the farms. >> the tough one. >> have you been following heidi heitkamp >> yeah. she was on did you forget she was on? 12k >> i wasn't on >> if you are not on, it doesn't exist. the show doesn't exist >> i spoke her name. i thought, i wasn't here >> we put up a test pattern if you are not here we don't even try. coming up, bitcoin pulling back from weekend highs as el salvador is the first country to adopt crypto as legal currency

grayscale's ceo joins us after the break. then we talk to jay snowden for the latest on sports betting as football season kicks off you can watch us anytime on the cnbc app we take things to the max oh yeah! honey, you still in bed? yep! bye! that's why we love skechers max cushioning footwear. they've maxed out the cushion for extreme comfort. it's like walking on clouds! big, comfy ones! oh yeah!

bitcoin making gains over the long weekend

breaking through 52,000 again. it is giving back in the last few hours. joining us is the grayscale ceo. michael, you are at least of the opinion that the holy grail, bitcoin etf will happen. not a matter of if, but when this comes after gary gensler's comments of the futures eft makes sense. that is strange. it is harder to do it on spot or actually physical bitcoin. why do you think he is more open to that and is that like putting the horse before the cart, isn't it >> well, i think the commentary that chairman gensler suggested that he and the staff are resolved on the previous concerns they had with bitcoin and were signaling of the future etf. there is a substantial

difference with the bitcoin and etf. not to mention the significant role cost and other potentials the investor would enjoy as we think about the investor and the s.e.c. is intending to do, they are here to protect investors. it is short sighted to allow the s.e.c. to get into the market before the spot. it is allowing both products into the market at the same time and let investors choose which way they want exposure >> you're ready. if you had to guess, when would ebtc actually go full-on with an etf? you think that would be next year >> it would be tough to speculate as to when we have continued to work with the s.e.c. around our flagship fund the grayscale bitcoin trust

and make it a full-blown etf dating back to 2016 the comments we have seen and the previous concerns of the market are no longer there again, we wouldn't want to see a future product move forward that could potentially harm tens of billions of investor capital that is sitting in spot based products like gbtc in the market today. >> what do you think it means for bitcoin and crypto where the headlines are all about el salvador which is buying more and it will be legal tender? what does that indicate? is it bullish? i guess it is. >> i think from the view of the world we have, we long believe bitcoin could be the spring board to financial inclusion you look at the emerging markets and countries like el salvador is not only moving forward

declaring it tender and supporting the initiative with rolling out atms and giving out free bitcoin to citizens who participate in the program this could be the tipping point with other countries in the emerging markets may consider bitcoin as legal tender or integrating it into their economies. >> what is staggering, michael, about el salvador and one of the reasons why they are doing this is remittances is 23% of gdp which is the highest ratio in the world. a lot of other countries suffer the same thing a lot of remittance from the u.s. to el salvador. you work hard and you want to send money back to your family in el salvador and you transfer that money and you lose that that is why this is a solution how much of what el salvador is doing is a lit big lomus test a

the world watches and if this could be pulled off? >> this is the early day today is the first day it is legal tender if we know anything about the community that is around bitcoin, it carries a lot of momentum we would not be surprised to see knock-on effects into other countries undergoing the same expiration or also seeing the social aspect of seeing el salvador using bitcoin as a remittance mechanism and causing others in their network to use it as well >> michael, you have two questions. you have been working with the s.e.c. and working with the s.e.c. for years to try to get this flagship fund up officially as a widely available etf. what do you think right now, if you could take us behind the scenes, is the single gating factor >> i think the s.e.c. has been pretty public about this they looked at the underlining bitcoin market and previously said there was not enough

surveillance of the spot market for bitcoin and they want surveillance sharing in place. they wanted significant regulated markets. again, perhaps going off chairman gensler's commentary, it signals the previous concerns have now been resolved >> the next question i have to the extent your etf or other etfs do get approved in time, if we believe we get there, what do you think that does to the value of bitcoin is that a 10% bump or 20% pump or 5% bump maybe it is baked into the valuation which is to say any forward looking person would say i think this is a likelihood this is going to happen. there is a risk it doesn't we don't know when >> there is no question we think it is bullish for bitcoin overall. there has been a lot of success particularly in products like

gbtc there is still a fair amount of investor capital on the sidelines waiting for the protections and familiarity of the etf. we think those approvals would draw in more investors and capital. >> nfts, good or bad for you we haven't talked about that, sorkin pudgy penguins rocks? >> last time, we were talking about sushi swap now nfts. >> really? >> i think we're talking about continued use cases developing around the ecosystem trying to avoid counterfeiting it is an early part in the crypto system for sure. >> thanks, michael see you. you are a worry wart you worry about the tulip. you see "anchorman" pudgy

penguin. $12 million. >> we had this question. 5 years from now, 10 years from now? >> why 10 years from now >> i'm long nfts in the context of smart contracts and all sorts t rolngs. >> iisli into break. >> a tim cook picture. >> announcer: what's working is sponsored by comcast business. bounce forward at com comcastbusiness.com. we help make them healthier. we are the people of abm. for more than 100 years, we've been a leader in making spaces cleaner, from the things you touch to the air you breathe. today, more than 100,000 of us are innovating to ensure spaces are more efficient, healthier and safer. abm. making spaces healthier for you.

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who wins and loses in the age of tech titans? congratulations on the book. let's talk about the myth, or the delusion of platforms. we talk all the time that there's this effect that the facebooks of the world have a platform and they should be regulated. you say that's not true. >> they may need to be regulated but not because they're a platform plenty of platforms have no market power to speak of and are downright terrible businesses. there are also some businesses that aren't platforms that have incredible market power. the use of the word platform

does not actually help the conversation move forward. >> will it help move that conversation then? netflix, is that a platform? >> that's a hard one netflix actually isn't really a platform the basic defense of a platform is a business that is in the business of musicing connections, whether it's connecting two perspective lovers on a dating site, whether it's a buyer or seller whether it's an innovator, who is finding a platform to innovate with others or -- >> is uber a platform then >> absolutely uber is a platform to connect drivers and users the issue with netflix is that they own and create the stuff they're selling on their site or licensing it they're not an open platform for content creators to find

potential viewers. >> what about then like is disney -- disney, though, is disney a platform? >> again, use ing it in some mystical, metaphorical place it's not used for creators and content writer they license and build stuff and then sell it that's not a platform. that's a traditional company. >> compass, sweet green, you think those have gotten bigger valuations because of using or hijacking the term platform? >> it's an inside joke in the industry that if you use the word platform you get a couple of extra turns of value.

now, compass is a platform but so is a regular real estate brokerage. you're connecting potential sellers with potential buyers. the question with compass is whether using the word platform 300 times in your offering me memorandum actually lets investors know more about the business. >> jonathan, which then begs the que question, though, are investors stupid >> i think it's called a delusion which fulfillment is a powerful thing and, you know, all of us fall prey to it. and those who can exploit it do. and the rest of us, you know, try to fight against it. but the short answer is everybody makes short cuts because our brains have only so much space at one moment to hold information. >> okay. what about apple, or the app store, is that a platform? >> sure. absolutely a platform. >> a platform? >> sure.

you're connecting -- >> has a fly wheel effect and has a moat around it >> absolutely. i'm not saying google, the p platform is nonsense so google is a stinky business no, i'm not. in those two cases they're actually fabulous businesses, but it's not because of the word plat norm. >> i don't think you get into this in the book but since we talk about it all the time, crypto, is bitcoin or etherium, to you, a platform >> whenever i hear the word crypto i glaze over. i think the short answer is yes, but i do not pretend to be an expert on the subject. >> okay. we will talk with you and look forward to seeing you again. congratulations on the book. it is not a delusion to read the book it is called the platform delusion and we appreciate seeing you again. thanks. >> thank you, andrew take care. >> coming up, big lineup still to come. get ready for nfl betting with

jay snowden. plus we'll talk tech with michael brad smith and link edin andrew reed hoffman. take a look at the futures as we head to break after the weekend. not long enough. i feel like they might have a better finance system than we do. workday. how do they make better decisions faster? workday. it's got to be something workday. i think i got something. work... hey, rob, you're on mute. hello! hey, rob, there he is. workday. the finance, hr and planning system for a changing world. (vo) this is a place for ambition. workday. a forge of progress. a unicorn in training. a corner to build a legacy. a vision for tomorrow. a fresh start.

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investors saying so long to summer will markets cool off as we head into fall? what to watch is coming up. nfl will kick off thursday on nbc penn national gaming joins us to talk sports gaming and fierce competition in the space plus, microsoft president brad smith joins us, as the second hour of ""squawsquawk box" begis right now. good morning welcome back to "squawk box" right here on cnbc i'm andrew ross sorkin along

with joe kernen and melissa lee. beckcy off today this is the beginning. i always feel like this is the beginning. >> of the rest of your life? >> like the beginning of the year it is rosh haoshana but it's the beginning. >> beginning of a new year. >> i don't like september. >> you don't >> i loved summers as a kid. i've always said this, when september came close, i started getting butter flies about textbooks, the smell of the classroom. >> you now have butterflies on set? >> i do. >> it shows. >> it's not butterflies. it was really -- >> nausea? >> no, no. i was trying to think what it was. >> anticipation. >> tempered excitement. >> tempered excitement >> anticipation sort of. >> full-blown -- >> i tried to temper it. when you came in, you could see

i was unable to temper. >> i know i know. >> you can see the futures are moving off of joe's love. >> tempered excitement for the markets. >> it's tempered it's only off 25 points right now. about half a point, s&p 500, that's really tempered and nasdaq tempered on the downside 15 points. couple of big headlines for you. a holiday shortened-week two major data points of note. thursday's job claims will give us the latest read on jobless claims august producer price index data will come on friday. that's a relatively light week for earning. lululemon. i'm wearing them, by the way, my abc pants right now. >> me, too. >> very happily. and then game stop tomorrow on thu

thursday, kroger on friday we were talking about it earlier, el salvador buying $29 million ahead of bitcoin as its legal currency, president's country revealing the purchase in a tweet, saying el salvador's brokers will be buying more. it marks the first country to put bitcoin on its balance sheet and hold it in its reserves. national i.d. can use and sign up and transact. $30 worth of bitcoin when they sign up in a push to speed up adoption. >> small number. >> it is a small number. >> if i were a country, i would be embarrassed. >> by 20.9 million >> yeah. when we spend money here, at least give us credit there. >> go big or go home. >> when jay powell starts buying bitcoin, it's going to move. >> right. >> it's going to move. >> i've been thinking about it the year doesn't really start january 1st. it really doesn't.

>> this is it. this is it. >> it's over when we start the summer again and we can relax. we've got the summer coming. >> this is the beginning it's a new beginning new beginnings. >> okay. here we are. >> also new this morning, new beginnings for softbank, their share is soar ing today. the average price of $118 per share equal to $5.3 billion in value. bringing the stake in t mobile now to 34.4% and they've wanted to take a majority stake in t mobile eventually this is on a path to do that in return, softbank is going to get $225 million newly issued deutsche telecom shares which makes softbank -- the first time it's been a shareholder of deutsche telecom, and the sale

of t mobile's netherlands unit for $5.9 billion purchases of that sale will be able to purchase $2.4 billion. c clau marcelo claure will be on the board. we'll be talking to him. also what's going on in china with the pricing action on ali. dbaba, softbank one of the biggest investors in alibaba they said we're not going to invest in china right now. >> right. >> let's get to dom chu, who has this morning's stocks to watch happy september, dom i guess. >> i guess i'm kind of with you, joe. i always felt early on as a kid that this kind of weird anticipation of kind of going

back i was excited to go back and nervous at same time and i do remember the smell of classrooms. >> were you nervous when andrew was coming in? did you have that nervous energy >> were you nervous or excited, d dom? come on. >> i'm excited to see three of you guys around the table all over again i miss t i'm in a studio pretty much by myself this morning. it's very sporadic. >> we're thinking about you, dom. >> don't cry for me, argentina post-labor day edition as we get things going again, analyst moves taking note today. netflix shares look at netflix over the year-to-date period, uninspiring, still 10% gain but severely underperform ed the overall index. communications index is up roughly 30% during that same time period. analytics are saying this particular stock, netflix, should have a $780 price target, street high, by the way. it was 690 before.

they think netflix's subscriber additions will be better than they previously thought, driving that move there. by the way, a lot of that subscriber uptick will be take up by place like japan, india, and latin america-x, brazil. there could be a catch-up there. also what's happening with another stock on the streaming side of things, that's spotify from a sector weight to overweight rating. they like some of the bigger trends improving macro-wise for streaming audio, podcasts and streaming audio overall. and they think app stores, quality ratings, that sort of thing, could help to drive the adoption as well up 2.5% in the premarket trade then we'll end on procter & gamble those shares have been, at least, more of a value-oriented one so far year to date basis up 4%

consumer staples hasn't been th hottest trade since the covid pandemic recovery has taken hold procter & gamble over at morgan stanley. they like some of the trends for valuation on procter & gamble as well as the uptake by customers of some of their products and retailers as well. watch procter & gamble in the premarket trade. >> all right, dom. thanks he got the job done, our buddy. >> he did. >> dom, if we talk netflix, we need picks morning show is coming back. >> that's apple. >> have you got anything else for me >> so i -- >> go ahead, dom. >> i've been going back and watching some of the older series across all of these different platforms. you know the one that i kind of got into recently was that show "psych."

remember that, on usa network in the day, a guy who was an investigator i watched a lot of that. and "the mentalist," which used to be an old cbs show. >> i have one to share. >> tell me. >> it's actually perfect for our audience it's called "worth." >> i want to see that. >> michael keaton stars as ken fineberg it's about 9/11 and ken fineberg's role to give all the money to the victims of 9/11 he plays this tortured soul. >> ken fineberg, tortured? >> i think it was -- >> back then >> being in that position was -- >> like coming back from war. >> impossible, impossible job. >> this was the only guy who had to do that. >> film released friday night was absolutely spectacular it's worth every second. 1 1/2 hour film and it's one of the best i've seen in quite some time

>> i'm done at 9:00. i'm done at 9:00 of course, i study a lot study charts. >> dom, thanks. >> just pour over economic statistics. coming up, with the college football season under way and the nfl season around the corner we'll talk to penn national gaming about betting in the competition space. later, microsoft president brad smith on the new cyber secutyri initiatives, chip shortage and more. "squawk box" will be right back. 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. this is my granddaughter...she's cute like her grandpa. voya doesn't just help me get to retirement... ...they're with me all the way through it. come on, grandpa! later. got grandpa things to do. aw, grandpas are the best!

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welcome back to "squawk box" this morning c contessa brewer is looking at the world of sports gambling ahead of the nfl kickoff good morning, contessa. >> always an exciting time to look at sports gambling. you can bet that it will be more than ever as more states permit sports betting. legally place a wager in their home state and nearly half, 45.2 million, plan to, according to a new survey from the american gaming association we've gone from 18 states and washed, offering sports betting last year, to 23 states and the

district allowing bets nine more where it's been legal legalized but hasn't yet launched look, illegal offshore betting sites pose a threat to cesars, mgm. 19.5 million people will bet on line, legal sbil legal bets, according to the aga, up 73% from 2020. how about this about-face? the nfl is embracing sports betting, something we didn't see a few years ago, in arizona. the kornlds were grcardinals wee granted a gaming license themselves washington state and south dakota, and which teams will garner the most bets?

aga's survey shows the chiefs are the most popular pick to win the super bowl, 15%, followed by the buccaneers and america's team, the dallas cowboys joe? >> there's something about it, isn't there? and the crowds are back, too i don't know if you watched any of the u.s. open, but the number o ones are dropping like flies because you get behind the underdog and you hear that crowd, and it changes the entire dynamic of the sports. and i think that's going to happen -- it's happening at baseball games i'm watching. it's going to happen at football games. the fans miss the sports and the sports miss the fans that's what i think. >> i think that's true i think that's accurate. one thing is that they know that engagement goes way up where sports betting is legal. then you feel like you have a stake in the game. you're getting a piece of the action yourself. you're watching more fechlt r

rvently, more avidally. >> no doubt. >> and spending more money in the game itself. >> it does not matter. i go to dinner, bring my kids and look at the bill and that's the entire amount i've lost. i'm like, i wake up in the middle of the night thinking what's going on with that $3 i bet on i put $3 on louisville last night. literally $3 i lost join us now -- thank you, contessa joining us now to talk about the upcoming season and what's at stake, ceo of the year, jay snow ls den all you have to do is sit in your chair i was thinking about that. you're going to be ceo of the year, year after year, after year, based on these tailwinsd you have, snowden. am i right you are in a sweet spot right now. >> joe, i don't know if you know this we're now live in new jersey last year you and i were talking about the start of the football season, you weren't able to bet on our app i hope that $3 bet last night was on the bar stool app in new jersey. >> i've got an existing relationship with another entity -- i'm always open if you give me like -- sometimes if you

open an account you get $100 or something. >> $1,000. we're offering $1,000 free bet, joe. you need to download the app. >> maybe i need to do that i'm easy you talked me into it. i was thinking every year you've got guys like the quarterback com coming out of clemson. clemson has problems without him, obviously but suddenly, we're going to all be watching -- who is he with, jacksonville we're all going to be watching the jaguars. i can't wait to watch jacksonville play, and mac jones. every year you've got a new crop and now the fans are back. go ahead. >> there's real magic with the nfl, joe you were talking about that feeling you get in september every year i love it. it's the start of football season you can feel it. kids are back in school, weather is great thursday night football is coming up with the buccaneers and cowboys, great way to start the year to your point, the access to

legal sports betting is better than ever. a year ago at this time, we were not live in any states we were getting ready to launch in pennsylvania as our first state, as you'll recall. we're live in seven states, including new jersey, as i mentioned. we'll be live in tennessee tomorrow and arizona on thursday, right before kickoff nine states this year versus z zero last year, and we should be live in 11 or 12 by the end of this calendar year so, access the opportunity is huge there's a lot of excitement. there's a good crop of rookie quarterbacks in the nfl. many of them are starting. many of them will be coming in game one, game two there's always a reason to watch the nfl. here we go. >> joe burrow is back. there's a lot. i'm torn between whether, you know, everybody gambling is wha we were trying to do in society. it might not be the greatest thing. then i talk about what you really -- for me at least. they're small amounts.

i use d to only be interested -- i like the reds, because i grew up there gave up on the bengals, but now it doesn't matter who it is. if i have the slightest bit of skin in the game, it makes it so much more enjoyable. i look forward to it i watch it it is really a game changer to use a cliche and that's going to continue only get bigger. >> yeah, i think so. contessa said it well. when you bet on a game, you pay more attention you're more engaged. you wake up in the morning, as you said, joe, and check your phone to see if you won or lost your game once you fell asleep some of the new features we offer in our apps are shareable bet slips. if you want to bet on big cap, you follow them on twitter, click on the link and it populates your bet sheet pick the bets you like within their bet slip there's a new feature called same day parlay.

now you're able to bet multiple offerings within the same game if you're betting on thursday night, you not only can bet if the cowboys are going to win or tampa bay is going to win. you can bet if dak prescott is going to throw the first touchdown or tom brady will throw three touchdowns. >> a lot of your competitors were live in many states during the pandemic during that time they gained a lot of users and downloads how promotional has it had to be for you in order to get some of those customers? >> that's a great question our approach really is quite different. we're a lot less aggressive on the promotional side, on the paid media side. our approach from day one has been we're buying and building most everyone else in the space is renting eyeballs with aggressive paid media spends we acquired bar stool sports we're in the process of

acquiring the score, number one sports media app and brand in canada and number three across north america. we believe strongly, we have a shared vision with our friends at bar stool and friends at the score that there's going to be convergence between sports products, sports media and sports gambling. we have multiple brands. it's about the people behind the brands that makes betting fun it makes it interesting, differentiated so we don't have to spend as aggressively on paid media as others do in the space. people tend to download our app and bet with us. they love the brands, people behind the brands and make sports betting fun and entertaining. >> you mentioned rented eyeballs what's the longevity of your customer how much they spend and how much they increase that spend over time >> one of the nice things about having bar stool as a partner is that the audience skews younger as it relates to the competition. so, average age on our app and betting on sports with us is 28, 28 1/2 years old everyone else in the space is

well into their 30s. many of our competitors, the average age is up wards of 40 years old. if we do a great job on delivering great products and experiences, which we're maniacal about our own technology stack and be able to have our best product in the space. if you put all of that together, you make it entertaining, that's what creates differentiation we don't have to be in that business of renting the eyeballs or building great brands, great products and being a leader in the space. >> big media is on its way in here, too. i wonder what it finally looks like i don't know whether you need to put it together with broadcasters and everything else you think you need that as a broadcaster? do you need them or do they need you? >> well, i think that, you know, they certainly help each other, joe. and our approach has been, you know, let's focus on the people behind our brand we recently got into live

content and broadcasting a little bit so, we were the lead sponsor and we were able to do some live content. and the recent fight we had 1 million viewers on show time watching the bar stool sportsdesk, and big cat providing their thoughts on each of those fights throughout we're going to be the lead sponsor and have control of distribution and broadcasting for the arizona bowl coming up on new year's eve where our friends at bar stool will be very involved in the live content. it's very exciting it's something we can do that none of our competitors in the space can do i think most people when they love to bet on sports, it's a means to an end. i want to bet on sports. i love sports. i go to the app and bet on sports with us, it's different. you're downloading the app because of the brand and the people behind the brand and how much fun they make sports betting all together you should expect us to be more

and more involved in live broadcasting and media as it relates to sports betting. >> speaking of -- thanks, jay. we look forward to seeing you n next seeing big media, nbc, that thursday game. i don't know how the stars align to get this. first game of the regular season, tampa bay and brady against dak and dallas cowboys it's a good one to start off and it's on nbc. that's the way it should happen, i think, the first game. and then this is a little shameless. because then -- nbc is doing another -- we do have another great game coming up there's going to be a few in between the dallas game, and this next one. we have the l.a. rams and the chicago bears. there may be a couple of other games in between thursday and sunday. >> picking on thursday or -- >> you know what you need to study. you need to study up you need to look at the way -- if you look on the cbs sports app, you can see the way that the line right there -- you can

see the way they're moving. >> do you have any commentary on tom brady disclose ing that he o covid last year, after the -- do you have any -- >> like what there's a lot of things that he's doing fine. glad he's okay. >> that it didn't come out earlier, that he didn't talk -- >> did he need to tell people? >> it was right after -- i'm -- >> i guess i don't have a comment. sounds like you have a comment. >> we've got to go no comments. coming up, microsoft president brad smith will join us in the next hour, talking taxes. w ways and means ranking member congressman kevin brady. we'll be right back.

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a whole new list of tax hikes have been floated around as a way to pay for the $3.5 trillion infrastructure plan let's find out more. robert frank joins us now. really, some creative things, robert american ingenuity it's awesome. >> yeah, joe lot of ideas on the table. president biden's plan alone

includes more than 80 tax hikes, credits and new forms of taxation most of the trillions of dollars that could be needed for this reconciliation bill comes from just three big tax hikes from a dollar perspective, these are the ones that really matter. the biggest, of course, is the corporate tax hike proposed from 21 to 28%. that would raise an expected $1 trillion in revenue over the next decade. that's according to penn warton. most tax experts expect this to be dialed back to 28%, but that would bring revenue down by more than 40% to just $600 billion. they would take a big hit there if they went to 25 the second is the doubling of the tax on overseas income that would raise over $500 billion. tax foundation saying those cha changes to multinational taxation would actually -- could actually lead to more offshoring so, revenue could wind up being far less for the high earners, the most

costly proposal is raising capital gains tax to the ordinary income rate from 23.8% to 43.4% that's the change that matters the most to investors. biden also proposing to eliminate the step-up in bases to tax appreciated assets at death. those two changes combined would raise around $322 billion. moderate democrats and representatives, heidi heitkamp already pushing back either the spending plan has to be scaled back or they need to come up with entire ly new revenue raisers. guys >> i understand a lot of it, robert i understand income inequality there's different ways to blame what's happening there are you -- they're going to be careful with all this money the way they spend it, right they can count on them to not -- just to blow all this money, right? they're going to be -- right

do you know? will they be careful are they going to waste any, robert huh? >> we'll just see how much they actually end up getting from all this stuff, joe. that's the question. >> right do you feel like we're undertaxed in this country right now, robert? >> from a corporate perspective, not relative to the oecd when you take in state -- >> just individual. >> i don't think the sarcasm graphic is completed it's not flashing right now. >> do you think you should work until august before you start keeping anything what month would you start to like earning stuff you bring home >> as here is the conundrum. we spend more than we actually earn. >> we don't want to cut the spending we want to spend more. disney's shang-chi and the

legend of the teris,utn ng b facing steep challenges to get approved for the screening in china. ♪ ♪ ♪ ♪ ♪ ♪

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of the ten rings, caught the attention of chinese moviegoers with an estimated $90 million in ticket sales in the united states marvel movie facing steep chal challenges to get approval for screening in china that's where we find eunice i do not know yoon with more. >> this will be the first for the mardevelop franchise if they don't get approval the source material is seen as r racist movie, as well as the comics are based on a fictional character known as fu man chu, that character has been propagating stereotypes about asians over decades. beijing, which already censors movies is very sensitive about anything that projects a negative image of chinese people say, for example, an evil mastermind like fu man chu

the movie would be coinciding with beijing's crackdown on entertainment as well as celebrities over the weekend, the social media giant suspend ing over 20 online accounts of fan clubs, of korean pop stars, including bts. state media blames south korea for the fandom and what they describe as celebrity worship among young chinese. hong kong actor over the weekend renounced his canadian citizenship amid all these rumors that celebrities who have foreign nationalities might be black listed so the next movie on the docket from marvel is called "eternals," being directed by chloe zhao as you know, because we've been reporting on it, has been completely erase d from the

internet here. difficult to see how disney will screen that one either. >> what do you think the relationship is between the chinese government and disney broadly? disney has made huge investments in the country bob iger tried to be a friend of china's for a very, very long time what's the state of play >> reporter: well, i think that a lot of it focuses on shanghai disneyland and the government is working together with disney on that project. so, from disney's perspective, they would have a bit of protection, because the government actually has shared interest in shanghai disneyland. more broadly, i would think that disney does employ a lot of people here. not only at the park, but also at factories that make a lot of the products but at the end of the day, from what we've been seeing, china is going to prioritize itself and its own interests, even if that means hurting some foreign companies along the way. >> eunice yoon in beijing this morning.

thank you. appreciate it. when we come back, microsoft's president is going to join us, brad smith will be with us. we'll talk cyber security and so many other issues with him. later, we'll talk taxes with the ways and means ranking member congressman kevin brady will be with us as well. we're right back, after this o b. and strengthen client confidence in you. before investing consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully.

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big whoop! mine gives me a 4k streaming box. -for free! that's because you all have the same internet. xfinity xfi. so powerful, it keeps one-upping itself. can your internet do that? welcome back to "squawk box. i'm dominic chu. first of all, goldman sachs is out with a note from economist ronnie walker, saying he's

downgrading -- they're downgrading -- the team is downgrading the forecast here, driven in many ways by what's happening in the third and fourth quarter this year, slowing consumer spending based on the delta variant they're also saying that the service economy recovery will be much slower than the easy phase that followed vaccination, with the covid fears likely to persist throughout the winter virus season and it might take a while for spending to recover in st still-depressed categories such as very high contact and office-adjacent services by the way, the fourth quarter, 2021 forecast goes to 5.5% growth from 6.5 previously one of the reasons we're seeing that play on the market has to do with the rotation in larger cap stocks, seen as more insulated from economic slowdowns. look at these etfs spider etf up 7% the last three months, mid-cap etf up 1% and small cap etf up half a percent

it goes to show that investors are anticipating the slowdown going into that those large cap more insulated stocks. keep an eye on what's happening with chinese internet names. yes, there's a long way to go. however, that strength continues this morning baidu is up 3%, jd.com up 1% pinduoduo up 5%. some of that having to do with repurchases of ten cent in china over their own shares. keep an eye on chinese internet names. keep it ghherit re "squawk box" will be back after the break with microsoft's brad smith. keep it right here big, exclusive interview

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matching your job description. visit indeed.com/hire welcome back to "squawk box. our next guest new book, what governments and companies should do to prevent cyber attacks. brad smith, welcome to the program. good to see you. paperback version of your best-selling books "tools & weapons:the promise and the peril of the digital age" is out today, with microsoft's investigation into the 2020 solar winds cyber attack we want to talk to you about that and so much more this morning, brad. take us inside that solar wins

attack and talk more broadly even about what's happening in the cyber security realm you've committed to spend an enormous amount of money on this, as have so many other tech companies, yet it continues to be perhaps the prevailing issue for everybody. >> well, thank you, andrew it's great, of course, to be with you we did take people in this new chapter in our book, into what happened with solar winds. and i think what it reflects is two things first, the sophistication of cyber attacks continues to grow. what we saw in the solar winds attack, what we've seen in ranso ransomware and other attacks since really confirms that in so many ways. it really requires all of us to do more to step up as a company, as you said, microsoft just committed to spend more than $20 billion over the next five years on security-related activities but this is more than an issue for the tech sector. that's why the white house brought people together a couple

of weeks ago we're all going to need to share information about what's happening. i think it speaks to us on a week like this when we're reflecting on even 9/11. one of the points we make in the book is the conclusion of the 9/11 commission is very relevant to this because as the commission said there had been a real failure of strategic intelligence people had been sharing information only on a need-to-know basis they needed to create a culture around the need to share that's what we need to do here. >> brad, who should pay? that's one of the biggest issues should corporations be paying? should you be paying you'll pay $20 billion obviously you sell this offer so that's important should the government be paying? >> well, i think that in many ways, it starts with those of us who create the technology products we need to spend more. we need to invest more, and we are and we will. we need to build in more

security protection into our products but there's a lot of additional services that, in effect, make up what is needed to have a secure i.t. ecosystem. just like we have monitoring services for office buildings and homes in case someone breaks in there is that kind of ongoing need for services to protect cyber security and in that sense, you know, just as people pay for those services for their homes or offices, this becomes part of what they need to think about before keeping their i.t. s secure the government has one of the largest i.t. infrastructures in the world. so the government needs to invest as well so, whenever you see a problem that fundamentally is about criminal activity, we all need to do and invest more. >> have you been surprised over the years -- i will say that i have -- that customers do not seem to pay for this with their own wallet, or even jump with

their own feet in terms of saying, you know what? there was a breach here. i'm no longer going to use that service. in fact, they seem to go back and use the same service over and over again why do you think that is as a result, i wonder if the in incentives are aligned. >> well, in many ways, the incentives are not yet fully aligned. that's one of the reasons the insurance industry was present at the white house meeting a lot of times insurance plays a role in aligning economic incentives across the economy, and that hasn't yet happened here i think there's some other problems as well i think we have a real shortage. we documented a shortage of cyber security professionals across the economy many businesses don't have the people that they need, either to implement the protections they, in some cases, are already paying for, or just to provide the advice that the leaders of organizations also require so, i think that really is part of the problem that we also need

to address. >> brad, how can we understand the $20 billion pledge over five years? microsoft, you mentioned solar winds, breach of the exchange. we had the data leak how much is microsoft going to spend any way and how much of this is on top of what was budgeted i imagine an increased budget, given the breaches recently. >> a lot of this reflects decisions we made over the last year to increase our spending. and some of it is very specific in the form of additional engineering services $150million in the next year alone of engineering services we're devoting free to help the federal, state and local governments just catch up so that they can implement the security protection that is already available in some cases, they're already buying but not yet using. but i think the broader aspect to think about is in the tech sector, different companies play a variety of different roles all of us who have major se

services, of course, have security features that are part of our services. but in addition, you have cyber security businesses, and microsoft is in this space as well, where we are providing, for example, a service that you can use, any organization can use, to protect all its devics, whether it's a windows lap top, iphone or android device so you're going to see us continue to invest in those services you're going to see others as well. >> brad, i want to go rapid fire on a couple of other subjects. one, semi conductors how much of a supply constraint is that going to be? when do you think we'll get past it >> i think the most important thing on semi conductors is to reflect that the shortage is, in many ways, demand driven we're suddenly in a new era where chips are important, not just for laptops and phones, but everything florida your car to your refrigerator, to your thermostat and when you look at it that way, this demand is going to

continue to grow throughout this decade so, i think we're going to have to continue to keep a careful eye on chip supply and whether it can keep pace for a number of years. >> i know you had a call with a top official from china's ministry of industry recently. i wanted to ask you about the crackdown taking place in china right now. in particular, actually, on chinese companies. >> well, i think one of the things that we really need, a point i made to the chinese minister for information and industry last week is that we're at a point where we need real clarity and stability, both in terms of the regulatory environment in china, but equally important the regulatory and technology relationship between the united states and china. no tech company can really go forward and invest without clearer guardrails right now about what the chinese are looking for, what the united states government is looking for. and i hope that we'll get to a

point where there's some real specific discussions between the two countries over the next 12 months i think we need them. >> and then finally i wanted to ask you about the subpoenas, secret subpoenas that are going to tech companies from the u.s. government on so many issues, including around january 6th and also what we're hearing from some politicians about whether tech companies should be complying with those subpoenas. >> well, the good news for microsoft is that it doesn't appear that we have much information that is likely to be responsive i will say more broadly, we always address these issues the same way we adhere to the rule of law, but equally important, we believe in the rights of individuals to be aware of when a government is seeking to access their data. we believe in their right to stand up and defend their rights in court we believe in our right to notify those individuals of these issues so they can do

that so i believe we follow a path that both ensures the government agency can do its job but do it in a way that protects the rights of the individuals or companies involved and you have to bring these two sides together. >> brad smith, great to see you. look forward to, hoping to see you in person very, very soon. >> me, too thank you. >> thanks. coming up, congressman kevin brady joins us to talk about the latest out of washington on taxes, infrastructure and much more plus softbank ceo marcelo claure on that company's big news stay tuned you're watching "squawk box" on cnbc

good morning softbank taking a 4.5% stake

marcelo claure will join us with more on that deal. and congress a budget deal, ways and means ranking committee member kevin brady will be our guest. and ready to share the lessons he learned as the final hour of "squawk box" begins right now. good morning welcome back to "squawk box. here on cnbc open this up real quick. >> urge ncy. >> we had that rare down day on friday y you, sorkin -- andrew is here, you know that, you can see

melissa is here. >> happy rosh hoshanah. >> what you were worryied about the jobs, that came to pass on friday, something you were worried about. >> yeah. >> do you know what comes after september? this is the point i want to make. >> october. >> october we've been doing so well and so we'll see. a lot of bottoms are made in october. bottoms only come after something that you weren't expecting. >> yep. >> i don't know whether october does that. we're certainly set up for -- i don't know every day, default trade is up people are now say ing i mentioned the pudgy penguin, so i'm not going to mention the pg pudgy penguins anymore i'll do the crypto characters or pet rocks. a lot of weird things are happening. futures are rebounding for what was a rare down day on friday,

which was so long ago. it was still summer when that came it was still august. no, it wasn't. it was the beginning of september. what >> the board eight. >> yeah. are they different occupations >> they have that little look on their face. >> they're bored apes? like dentist bored apes and accountant bored apes? >> no. i'm looking at apes right here they might have a helmet on or hat. >> what does one of them go for, the most expensive bored ape seven figures? >> oh, i don't know if they're seven. there's some here, easily six. $200,000, 150,000 bucks. there's 101. >> that was one of the points i made you probably weren't watching, but last week. what's overvalued, the bored apes or the currency being used to buy the bored apes?

>> etherium? >> yeah. is it really $200,000? and what is $200,000, given what the fed is doing >> funny money. >> is it ten overpriced cats for ten overpriced dogs? is that what you're exchanging >> or bored apes. >> or pudgy penguin, which i said i won't mention again. >> we won't know until the fed stops. >> that's right. >> price discovery, which would be nice. making headlines, new data shows 2021 is on pace to be the busiest year ever for deal making mergers and acquisitions worth more than $3.6 trillion globally during the first eight months, the highest this point since at least 1995 speaking of m & a, 888 holdings confirming toss to caesars, possible recognition of the nonu.s. business of william hill investor services business for

$3.5 billion in cash, including custody accounting, administration, global markets and technology services. let's get to the broader markets. mike santoli joins us. talking about how september is a new beginning after labor day. it's also the start of the talk of rough october, difficult fall muscle memory brings us back to challenging times. >> absolutely, melissa i was listening to it. there is absolutely a sense that the market has, perhaps, given investors a little more than they expected. maybe more than they think they deserve, based on what's going on in the world. that's visible in the s&p 500 right now. it's plausible and it's to be expected that we brace for a little bit of give back doesn't mean we get it i think that's why the mood is there. so, this has been an unusually smooth and steady advance in the s&p 500. rolling setbacks in cyclical it's not as if everything was up

every day contributing to this move in the s&p. take a look at the ipo index, solar stocks even spacs, of course, had their peak in february relative to the s&p they've vastly underperformed since that point. you've been talking about the apes i'm struggling with whether you can ignore that wild stuff going on but if you tell an investor coming in on september 7th, hey, you know what? growth is a little uneven. recovery is a little choppy. maybe you should trend toward quality. it's already happening we're already seeing cyclical stocks brace for a tougher growth outlook take a look at a measure of quality, which is the cash returning companies in the s&p 500. these are etfs that basically look for heavy dividend and buyback companies. that's all they do

shareholder yield is what it goes by. etfs that's shareholder yield etf and this is another shareholder yield etf. the market already wants those companies that are not just stories, but have some kind of cash coming back that's the interplay that greets us here as we get into almost f fall, guys. >> that and big tech cap, mike people search for quality, it's not just dividends they want the certainty of the largest part of the market. >> no doubt. there's some overlap there you're absolutely right. the question, tactically, is has the big stock given what you expect from them in the short term that one part of the market has been carrying the s&p for a while. if that's not picked up by some other part of the market, maybe that's your formula for the overall index finally having more than just a cursory little pullback. >> thanks, mike. mike santoli. >> right now, washington, later this week, house ways and means

committee will begin work on the president's $3.5 trillion bill the committee will tackle the tax portion of the bill, including salt cap deductions, capital gains, corporate tax r rate thoughts on the president's bill and what we can expect in committee later this week. representative kevin brady, lead republican on the ways and mean committee. and we love having you on, kevin. when i'm here, i'm usually going, and nodding i want to put you on notice, andrew is back i don't know what you'll be saying. >> i noticed that. >> he's here he's going to be listening. >> i didn't sleep all night. just a wreck. >> democrats' vision for aid, cradle to grave. no need to explain what that means. the most expansive government since the '60s, touching every

americans' life from conception to age infirmity why go small that's the plan. you have a 50/50 senate. it's not like the american people said, god, go for it. and very narrow margin in the house. what will actually -- >> yeah. >> what is possible out of the $3.5 trillion? what do you really think when you heard manchin, what do you really think they're going to present when it's all said and done two, $1.5 trillion, $1 trillion? >> great question, joe i don't have the answer. i have given up predicting where this democrat house will go. i did note, as most of us did, that the white housemaid it clear they believe senator manchin, their word is persuadable. they're moving full steam ahead. certainly in the house on the ways & means committee, you could easily see over $3 trillion of tax hikes in much of what you described in spending,

which i would say is the largest expansion of the welfare state in most of our lifetimes and i worry, actually, to create a new era of dependency on government, one we moved away from under president bill clinton. i think you'll see both of those in big ways, certainly in the house. >> some of the new ideas, taxing are you okay with taxing stock buybacks >> no. >> why would that be -- >> that makes no sense at all. >> how would that harm -- why would that not be a good, an easy thing to do >> three big issues here one, this is, by raising the business rates by a third, i think we're creating an economic surrender to china, russia, europe, canada, and others secondly, a lot of these tax increases are going to land on small businesses third, the president clearly br breaks his pledge on taxing those below 400,000. i also believe punishing stock

buy backs makes no sense we want businesses to invest, whether it's in their workers, new equipment, technology, expansion. sometimes their best investment strategy at the moment is to buy back those stocks. there's nothing wrong that actually helps, i think, sort of shore up part of our retirement system a lot of families have big stakes in the success of these companies. >> what will we get for the preferred treatment of capital gains? are we sure that we could raise money from that wouldn't have negative effects >> that may be the dumbest economic move of all of those, raising capital gains. there's a reason we have a lower rate there when you and i earn a dollar after we pay taxes, there's only three things you can do with it. you can consume it, save it, or

you can -- the riskiest thing, invest it. it is the most pro-growth action you can take as a person and as an institution it drives growth in many ways. we have in our tax code investment infrastructure. it's a pretty smart one. it drives investment at the local level in meaningful ways the president and white house is targeting four, five of those elements you can have disagreements about them, but whether it's capital gains, lifetime exchanges or any of these issues, it is still driving investment i don't think it makes sense, especially as we're trying to move our way we're not through this economic recovery by any means. and i think the august jobs report there was more than just covid behind those bad numbers. >> congressman, we're going to -- >> yes, sir? >> -- we're going to solve some problems together right now. i think we'll come to some agreements on things straight up, i'm not somebody

who looks at this $3 trillion plan -- >> 3.5. >> $3.5 trillion plan and say that's a great idea. let's not try to make this thing better couple of basic questions. >> sure. >> we talked about this before one of the major things that could be done today that i think we should all bein agreement on, but we're not, is simply enforcing the tax code as it's written today. and if we actually did that, talk about the rule of law and everything else related to it, we would collect $600 billion annually, depend ing on the research you read. if we did that, we might not have to have some of the conversations we're having about whether you want to tax buybacks or tax these other things when we could simply enforce the rules as they are written. why are you not in favor of providing enough resources to the irs to do that >> so, andrew, in the spirit of your returning, let's just say

you're half right in this view so, one, we should enforce those laws everybody should pay their fair share. absolute agreement there across the board. i think it is a fantasy that there is 600 or $700 billion a year that can be done simply by adding 80,000 new irs agents, even the irs says that's not accurate in fact, enforcement itself will not get us to closing that tax gap. in truth, they don't use their resources as wisely as they can. secondly, they need dramatic new technology i disagree that they need to know the gross transactions and your personal and business banking accounts they frankly don't handle -- one, i don't think they know what to do with that information and i don't think they can keep it private as we've seen this year so, are we willing to provide more resources for customer service and that >> let's solve it together. >> absolutely.

>> what should be the answer then should we provide -- is it the number of irs agents, the technology that we need -- we need to do something. >> yeah. >> we're both in agreement, we have to do something it can't just be that we have rules we don't enforce right now, i can't tell you the number of businesses and individuals that i think look at the data and say, you know what? i'm going to roll the dice and try my luck. if they catch me, they catch me. the chances of them catching me is next to nothing. >> that's not accurate either but i will tell you, we do agree on this. why don't we learn what that problem is there's no accurate estimate of what the tax gap is, how it's created and how we solve it. republicans are introducing legislation to do exactly that because we think if you really know for the first time much of this data, as you know, is about seven years old.

the others are wild guesses on crypto and foreign transactions. why don't we really define the problem? i think that's common ground for us secondly, republicans are more than willing to work across the aisle on how we close that tax gap in a good, smart way so, but i will go back to your earlier point. i absolutely believe it's a myth that there is -- when something sounds too good to be true, it normally is in washington. i think that this say myth of a number in a major way. >> cheerily, that's where there's a hienlg amount of wealth being created by the way, we want it to be created. >> we do. >> it's relatively unequal so the issue that i would suggest

people don't like to call it a death tax or people don't want to be taxed at that point. there's a real issue of unrealized gains that effectively never get captured by the system. you may say that's a good thing. at some level, when you look at those people who are paying or joe and i were talking during the commercial break, working six, seven months a year to pay their taxes, that doesn't work either. >> it doesn't drive how many months a year you're working, what it should drive are normal americans, family-owned farm or small business, making the decision to invest in that farm or business, not in the hopes it will benefit them but it will benefit their children and perhaps their children's

children we made a serious economic mistakes you don't have to agree with every part and parcel of it, about but it drives those investments, encourages that long-term decision making and risk it hurts the very people democrats say it will help. >> joe, do you want to jump in here >> at the same time we, clearly, as a country spend way more than we actually bring in, how do we

balance that to me that's the question. >> that one, i will tell you, andrew, the answer there is you have to start with higher taxes. we have two of the highest revenue years of history after we reformed the tax code, began to see the investment we wanted to see from there. >> couple of philosophical things, too. we have to address it sooner or later. i guess private property goes back like 400 years. there's not an easy way to save money. when we had senator warren on, she talks about taxing property all the time is that somewhere we eventually want to go what would you do to try to tap

some of the immense wealth you never, ever touch that and it's kind of locked in should people that have done really well have that advantage, to be able to keep it untaxed and pass it on to their heirs? >> two thoughts. one of the most progressive tax codes on the planet. top 1% are paying 40% of the burden so, a good ideological question is, how much more should they pay? should they shoulder three-fourths of the size of government what do we want the successful to do? we're already extremely progressive. secondly, taxing wealth means taxing the land you bought decades ago, the property you've improved you've already paid multiple taxes through decades on here. we don't, frankly, need to add yet another tax, in my view, at the federal level.

i think taxing wealth is a horrible idea for the discussion we just had. we want to incentivize every level to do this. >> they tell me we've got to go. my other philosophical question is we're the richest country in the world. we could afford the greatest entitlements i guess we could afford them if it were to, like we've seen other places, if it were to put a governor on overall economic growth, but it was a fair, in their words, others' words, if it was a fairer place for people that weren't on the high end, weren't on one end of the income inequality spectrum. if it was a fair place but we had slower growth because of all the entitlements, is that a trade-off we should think about? >> no. and here is why. so we saw in 2019, after we finally began to see how this new tax code would work, what was it do ing for driving investment, productivity, technology, all of that. what we saw was for the first

time in 50 years the shrinking of income inequality we were bringing people off the sidelines, driving up wages, better-paying jobs for the first time a very important social goal was being realized not by taxing more and setting a governor on growth, but just the opposite i firmly believe if we increase economic opportunity in growth that's how we lift people out of poverty on to the sidelines. that's how we meet some of the most important goals both parties share. >> okay. congressman, thank you we spend a lot of money. we don't pay for a lot of things we want to give everyone everything andrew, we're talking about health care. he doesn't want me to be able to get a new hip. what did you say, i can't get a -- >> no. what i'm saying is you can get a new hip. >> i can get a new window. i no longer -- i better do it quick. >> you can get one and pay for

one yourself as well. >> i'm going to pay for it myself. >> we had discussion of end of life care and as you get older if you can't pay for it, what the government is supposed to provide. >> exactly i don't need a hip my knee is another thing but they tell me shots in your forehead i don't want to do that again. congressman brady, thank you, congressman. >> have you had botox? >> no, i never have. does it look like i've had botox? >> no. softbank ceo marcelo claure will join us swapping some stock this morning and why it matters we'll talk about all that and so much more when "squawk" returns.

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new out in the past couple of hours, equity share swap agreement, german company acquiring 45 million options in t-mobile in return, softbank will be getting 225 million deutsche telecom shares new board member of deutsche telecom softbank group international ceo marcelo claure softbank stock is moving

materially higher on this news take us behind the scenes a little bit about what's driving this deutsche telecom had come out publicly saying they would love to own a majority stake eventually in t-mobile and this seems to be a step in that right direction. from a softbank perspective, what's happening >> good to see you, andrew it's been a while. we like to say this say win/win transaction. softbank expressing an interest in enhancing their ownership in t-mobile in the u.s. we struck a deal that is incredibly good for softbank first and foremost, it allows softbank portfolio into the european market. deutsche telecom combined have 240 million customers. as part of this agreement, companies will have the access to basically grow within the european market, which is

something great and something we're looking for. we've learned what we've done in japan has a unique way of empowering additional companies so we can gain higher market share at the same time, be able to have lower acquisition cost first and foremost, we're proud of the partnership with deutsche telecom and now we're going to get to work. we're already talking to three companies, revolute and the leading platform in europe which will begin working immediately with deutsche telecom. we're seeing growth in those companies and happy about that the economic rationale is something we wanted to do. we had fixed options that had no upside swap those options into deutsche telecom and i'm a big believer that deutsche telecom is undervalued and has potential in

the future to execute the plan we have upside on deutsche telecom. same time most of our shares were locked. we weren't allowed to get any economic benefit until 2024, 2025 that removes that restriction and will be a liquidity event for softbank the fact that we didn't have shares that had any upside, and you add the fantastic partnership we had with deutsche telecom, it's a great transaction for softbank while being a great transaction for deutsch telecom as they were very public that they want a majority ownership. >> marcelo, you're join ing the board at deutsche telecom. i assume that will be a very long investment in deutsche telecom. >> yes as you know, we are always looking for those disrupters in anything in the way we work, live and play. and we love what deutsche

telecom wants to do as it relates to becoming the first truly digital telecom. it's a combination we can bring it to the intersection between communications and digital or communications in tech there's a lot more we'll be able to do with deutsche telecom and a lot more we'll be able to do with the portfolio company that's why we consider it to be a extrastrategic investment we have become the largest second shareholder or largest private shareholder. it's something we're in for the long run and going to make sure that this is just another great investment. >> right talking about governments, i wanted to ask you about china. amassison who is your boss and founded softbank says you're putting investments in china on

pause for now, given the regulatory environment there and some of the visiting winds, if you will, gets some of the technology companies, including alibaba, which softbank has a huge stake in. what do you think is happening in china right now how is that going to impact your investment approach around the rest of the world? >> let's make sure that his words don't get misinterpreted when this was all happening, we took a pause to basically understand what was going on to be clear, our relationship with china hasn't changed. we're going to continue to invest and support chinese to help support the future and integration of ai. we've seen amazing companies like alibaba and truly diverse t technology in order to better the lives of many.

our commitment to china has not changed. we understand there will be thing that are different in the framework, new rules will be implemented. that doesn't mean that china stops. we're committed to china and will continue to support those maying chinese entrepreneurs that are making the world's most amazing supplies. >> what do you think they'll have to see in terms of what's happening there shift or change before you make additional investments in the country >> so, let me be clear we've not stopped investments into china we've continued to invest in china in the last few months you know, chips are going to have to fall we'll have to figure out but the size of the market is so large. the level of innovation that is happening in china therefore, we were, prior to this, in gross equity and will continue to be and will continue to invest. and, you know, there might be different rules. there might be rules by no means this should be

taken. we are strong resolution in china. >> in addition to the crackdown from beijing there's a crackdown from the investment side of things are you confident that alibaba, like the online tutoring company which listed adrs in the u.s., which you're invested in, if these companies will fully open their books to u.s. auditors in order to be compliant with the holding foreign companies act. >> it is not my job to tell investors what they want to do with their investments and how they want to invest. >> do you think that your investment in this company -- do you think that these companies will open their books to u.s. auditors fully in order to be compliant? >> again, that is not my job to say what we do, we're investors and we make educated investment decisions based on what's in

fropt of us. we're not here to set up regulation or what investors do. i can only tell you what is softbank position and we have one investment at a time and look at the level of risk we're willing to take and decide whether we bet or not, and whether investors like to invest in china or not, the sentiment of how softbank to companies. >> delta, obviously, covid has changed the landscape of work, work from home, work from the office, all of it. therefore, it's impacting we work what are you seeing at we work in terms of that shift there was an expectation more and more people would be going back to work come september in the white collar world than we thought, a lot of big companies, obviously, pushing that now off in some cases all the way to january. >> so, we think we work's value proposition is stronger than ever its level of uncertainty has

created companies to come to us and basically utilize what we're all about, which is flexible leases, in a hybrid environment whether employees are staying home a lot longer. at the same time they need to come to a place to conduct conference calls so i can report sales in previous month had been stronger than precovid and that level continues to go up, as you will see going public, you will see as we report the numbers very, very pleased with the turnaround done an incredible job in the company for, i would say, after covid effect where flexibility comes the main driver of people taking decisions. >> marcelo, we appreciate it always good to see you i don't know if you got a chance to sleep, by the way, in an eight-sleep mattress last night. he just invested in this company and i own one of these things.

did you get to sleep in your mattress last night or were you in germany and don't have it with you >> night before i did. you look a lot better, andrew, since you started sleeping on eight sleep. i think you're getting better splooep sleep, same as me. we love that company and how the company is transforming the way we sleep. >> on twitter about eight sleep and how much deep sleep we get it's a thing very nice to see you. >> thank you, andrew good to see you. take care. bye. >> why why is it better >> because it controls your temperature. it actually -- when you get into deep sleep, you want it to be colder and when you get into rem, you want it to be marginally warmer and it changes as you're sleeping. >> can you describe what toilet you're using you must have the greatest toilet aren't there things that do amazing -- >> no, we don't have that. >> are you looking into it >> no. >> you have a temperature-controlled mattress

but your toilet is run of the mill >> one of the mill. >> one flush coming up, masters of scale linkedin co-founder reid hoffman is ready to share the lessons he learned when "squawk box" comes right back and they want it all personalized. with ibm, you can do both. businesses like insurers can automate it processes across clouds. so agents can spend more time on customer needs. and whatever comes your way, you've got it covered. saving time and improving customer service, that's why so many businesses work, with ibm. ♪ music playing. ♪ there's an america we build ♪ ♪ and one we explore one that's been paved and one that's forever wild but freedom means you don't have to choose just one adventure ♪ ♪

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welcome back to "squawk. aventure capitalist, now out with a new book. want to welcome reid hoffman,

linkedin co-founder and now "masters of scale" author, "surprising truths from the most successful entrepreneurs." reid, good morning to you. nice to see you. you've interviewed hundreds of business leaders, arianna huffington, bill gates, getting their horror stories and wisdom. it's probably like your children and maybe you can't say which, which you like the best. was there one, before we get into it, that you appreciate d more than any other? >> well, all of them come with their different surprises. you're exactly right, for example, that i was completely surprised with, like franklin leonard, founder of the black list, and bringing systems thinking to hollywood content, where we don't have within silicon valley or tyra banks, how entrepreneurial she was even in her supermodel career these principles of

entrepreneurship apply in other areas. there's surprises and delights of variations. >> i consider you the master of scale, blitz scaling, that is. what was the great surprise for you? was there something you learned from these entrepreneurs where you said i had not thought about that at all? >> there's always a bunch of things i've learned. probably not having not thought about at all, given investing, facebook, airbnb, and co-founding linkedin there's been a lot of times around this. i would say that you're always surprised that sometimes, like sometimes the lesson goes to 11. the lesson of speed in entrepreneurship and the speed to scale, being what creates these global technology platforms. and so, for example, with zuckerberg, when he moved fast and break thing, move fast was stable infrastructure. most of the world was like, oh,

now he's learning. no, no, this is still a lesson in speed that kind of thing where you say impacting the lesson is important all the way to 11 out of 10 is actually, perhaps, the places i've been most like, yeah, yeah, yeah that's even more true than we thought. >> i know speed is a big theme for you. is there anyone who you think has actually done it, but done it more slowly but still successfully >> well, the interesting thing on speed is it's when the speed. it's like when you blitz scale for example, airbnb, a long time, was like this. then took off. road blocks a long time like this, then took off. it looks like an overnight sensation suddenly moving very, very fast. it doesn't mean that you're moving that visibly fast number of users, business model, et cetera, every single day. sometimes you're prepping the platform sometimes you're getting the network set up linkedin itself, many years where many people thought it's a

little thing that's a social network but for business not understanding what for business was. those kinds of things that you see. go ahead sorry. >> here is the complicated part, reid so many entrepreneurs say i can do it one of two ways. i can go for scale as quickly as humanly possible, try to get scale. and then there's others -- and then i'll build out the rhett of the infrastructure once i get there. i'll deal with all of that after the fact and then there are others who say, i need to, as you say, lay the groundwork to get the scale later. which is the right way or it can't be generalized >> it can't fully be generalized. there's principles for example, in paypal where we're going, look, we need to get the network to a critical mass such that regulators would appreciate us and what our positive role in the banking system would be, we need to do that first something like jovie, no, no, you need to get the

certification and have the complete understanding of certification of safety first before you even have one person going into it. so, it depends on what the issue is, and what the possible harms are. >> one of the other things that you mentioned in fast company covered this with you, the idea that you have to let fires burn. this was a lesson in focus for entre entrepreneurs and ceos, which is when do you focus on the fire in front of you and when do you f focus on the big, big fire in front of you >> exactly and part of the thing is the emotional thing if you go home every night as an entrepreneur with fires burning that can kill your business. so, how do you do that triage? it isn't that -- you're never comfortable with it. but you are kind of going, look, i understand that i will get to that one later how do you triage them is an essential part of entrepreneurship you jump off a cliff and assemble an airplane on the way down, metaphor for entrepreneurship, that's a little scary. >> reid, final question for you. you've interviewed so many entrepreneurs. is there one interview or one entrepreneur, rather, you

haven't interviewed yet that's on your wish list? >> there's a number. hope hopefully, we're still working on it. previously, it was barack obama, which we did earlier this year now there's a few others that, you know, i'm in dialogues with. >> you can throw it out there. you can make the invitation public maybe it will encourage them. >> well, um, i think we -- i think, you know, respecting people's privacy and the magic of the show is part of the brand promise. >> fair enough the book is called "masters of scale," just like the podcast. it is absolutely worth the read. we appreciate to see you again, reid, this morning. >> great to see you. thank you. coming up, mohammed el erian on the fe's next move, and how investors should be positioned going into the start of the new year, september start of the new year, or the fourth quarter. kind of like all beginning anew

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among the reasons the firm believes americans are. comb combined with fading fiscal support. goods to service, bank calling for 5.7% growth in 2021 compared to a prior estimate of 6 prs let's bring in allianz adviser mohamed el-erian do you think the markets have f factored this in already, though >> i do. it's a consensus call and in many ways. one is lower growth this year. two, it's not a recovery lost. up next year which suggests you can catch up on it and underlying this is the

paradigm in the marketplace. demand that the supply issues would go away. i'm not sure about the supply issues going away, melissa that is very much a conventional call. >> how big of a wild card is the supply chain issue and comply constraint issue as you think about the last quarter of the year >> huge. absolutely huge. they're so persistent and cascading. this is no longer about supply chains as disruptive as they are. this is about transportation of containers, port congestion, both at the port of origin and at the port of destination and it's about persistent labor market shortages it's a big issue we haven't gotten our arms around yet. >> meaning their view of inflation is more prolonged their transitory under pinning had been that anything awrying would be short

lived yet you have companies coming out on their earnings call saying it's going to last much longer than they had thought, maybe even stretching into early next year. >> that's something that i've been concerned about for a while. that people got so focused on base effects and other imbalances that imbalances that they didn't realize what really was going on on supply side yes, it is going to be longer. it's going to be longer both for materials and for labor, and that is not an issue that's factored in. you know, the fed still believes its transitory and unless it extends transitory to include two years, this is not going to prove transitory. >> yeah. what's your expectation any other this point for taper timeline and then separately for rate increases >> so my expectation is the window for tape sir closing. should have done it. they haven't done it now they have a weak jobs report i think the market is absolutely right in saying that we're not

likely to get an announcement until december, which means not stop tapering until next year at earliest, and yet -- yet -- yields are edging higher, because yields are also starting to recognize the supply disruptions. >> so could the market actually do the fed's work anyway i mean, even if tapering is postponed and, therefore, rate increases are postponed, could already feel impact of higher rates regardless >> yeah. i don't think they could, because you don't want to be taking a bet against treasuries when you have such a massive buyer, and it's a non-commercial buyer. always remember, melissa, it's a non-commercial buyer they're willing to make losses on what they buy few in the marketplace will take on that massive buye er so ther will be a limit how much tightening the market itself can do this is not the old days where the market could do tightening for the fed. >> we think about taper timelines, mohamed, when you think about it, does that mean rate hikes follow shortly

afterward or are these two decisions divorced, in your opinion? >> so i think they are related, but the impact is very different. i don't think tapering will have any major impact on the economy. rate hikes is a different issue. rate hikeless haven't an impact on the economy so i view them at related, because you can't have rate hikes until you've gotten through the tapering, but they are very distinct in terms of their economic implications. >> i wanted also to ask you what's going on abroad, mohamed, in japan nikkei rising on the back of a notion of incriesed stimulus as they have re-elections what do you think on that? >> seen more recovery and a lot of lagging could have pointed to china. would have, could have pointed to the lower quality of the junk

market, the high-yield market. you've seen investors being more comfortable betting on the lag indicators a general phenomenon and this is very late cycle. people are stretching tfor returns going ever higher in this marketplace s. that right, in your view, given where we are in the u.s.? >> i would be a little more cautious i have no prop ride be liquidity wave said it over and over gern got to respect the liquidity impact, but i view it as an opportunistic and tactical trade not a circular trade you go to parts of the weird, segments of high yield you give up a lot of liquidity and you've got to make sure that that liquidity you're being compensated for, which i don't think you are.

obviously, some think they are i would rather stay higher up in the quality and higher up in liquidity and continue on this liquidity wave knowing, knowing, purely optimistic, not secular or structural. >> so you're not investing in rocks? just kidding. >> no. i leave that to others. >> and for apes. none of it for mohamed thank you good to see you, mohamed. >> thank you, melissa. coming up, this morning's biggest stock movers and then tonight back to business labor day has come and gone. americans are coming back from vacation kids are going back to school. where are the opportunities for investors and how covid is impacting return to the workplace. menight at 6:00 p.m. eastern ti on a special edition of "fast money. [music: “you're the best” by joe esposito] [music: “you're the best” by joe esposito]

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back to "squawk box. a little more than half an hour to opening bell here on wall street joining is were you the market's pre-market movers. dominic chu. >> first look what's happening overall with certain stocks kind of in the news so far this morning as well. look at thematic elements, occidental and energy companies low eer with oil prices after saudi price cut and kearns about covid-related demand and royal caribbean, watch for economically sensitives names and check on what's happening with this particular name. it's a recently public

cybersecurity company through a spac merger called ironnet up 76% right now ever since kind of being public or just today. this stock is now getting, maybe you heard this, more and more mentions on internet chat forms like on reddit with regard weathers thcould be the next possible short squeeze candidate. that number of mentionings triggering into stock surge, that's up. only a private company seven days at one point this morning up about 150% one name to watch there, pirn n ironnet on the cyber scutsecuriy side, and the previous trading session. ten-year note back to one and apple, nvidia and mongodb with regard to its massive earnings report surge on friday's session rounding out the top five. guys, as always, rest of the top

10 and highlights from the top 50 on the domino back to you. >> perfectly reasonable. up 100 and ever at one point today. ironnet. final check on the markets, very quiet pre-market session here. there's where we are. give you color commentary, but -- okay. they're in the red that's all i got you just heard dom talking about oil stocks here is crude. take a quick look. run through some of the things people are interested in, hopefully. the ten year, as we just saw that that might be interesting. we're back closing in on 1.4 and we know that your buddy, carter braxton worth, 145. >> in the cards. >> could be coming up. then a quick look at the dollar and look at gold i don't think we'll look at bitcoin although we talked about it quite a bit back to 51,000 you see how the dollar is f

faring 59.37. how is the first day of the rest of your life here? >> fabulous. missed you, missed everybody here we are. beginning of the year, and otto va to everybody celebrating. >> okay. make sure you join us tomorrow "squawk on the street" is next. good tuesday morning welcome to "squawk on the street." i'm carl quintanilla at the new york stock exchange. jim cramer and david faber have the morning off. futures steady, the market reflects on friday's weaker than expected jobs number and goldman cutting g3 estimates see spending in "hard earned path. ten-year 137 a begin with delta risk for investors. goldman downgrading outlook