good morning stocks mixed under a little bit of pressure cryptos though being hit after big problems yesterday volatile trading we'll show you what's moving tempers flaring -- no, tempers flaring at 40,000 feet after another summer of air rage pilots planning to picket and we'll show you a list of their grievances plus, opening arguments begin today in the elizabeth holmes fraud trial. tabloids call it blood money we'll tell you what to expect, wednesday, september 8th, 2021 "squawk box" begins right now.

good morning and welcome to "squawk box" right here on cnbc. i'm andrew ross sorkin with joe kernen becky is off today 6 a.m. and u.s. equity futures are down and down again. looks like we'll continue. the dow is off 42 points this morning. dow opening down 13 points and s&p 500 down 3.5 points. we'll show you treasury yields impacted by all of this. the 10-year note at 1.356. then there's bitcoin. >> then there's us we've got the whole universe covered basically. i feel like -- i don't know. taxes? you coming around? >> on taxs >> the call of the suburbs feeling the call of the suburbs?

i see you turning into more like me. >> really? >> don't you think >> not completely. >> let's go to bitcoin that's what i'm seeing. >> no way. >> it gets me teary thinking about it just watching you blossom. >> mature. >> grow. >> the comment i made to mr. brady. >> about looking around. it was like -- wouldn't you like a parking space right outside your door. can you imagine what that would be like? >> i still like the city say hello to this gentleman. how you doing? bitcoin prices, at one point down got as low as 42,000 as el salvador adopted bitcoin as the legal currency tumbled as a much as 60%

chievo is the government run bitcoin wallet crypto adjacent stocks also fell that's a new term including big drops from micro strategy, coinbase and ether continues to slide. there were protests in el salvador a lot of young people that they were more protesting against not having a say in how it works, how it was adopted when you decide you're going to do something and then the man closes down the wallet, i don't know whether it was just that they weren't ready there were so many people doing it >> what do you think is going on here with the price of crypto? or is this just the trade that's taking place with all tech stocks away from tech right now?

>> yesterday we talked about october. it has us down 250 points. it's almost as if everybody gets back >> right. >> the great repricing do you think we've got some speculation to ring out of the market eventually? >> eventually, 100%. the question is what's happening right now is that what this is >> i don't know. stocks are under pressure. we're at 52 points i don't know what this is. i mean, it's right we haven't had a 5% correction in a while we definitely could. we have the board -- >> i thought crypto was not supposed to be correlated to the rest of it. >> no, no, you didn't think that every time it goes down -- >> i say that. >> so what do you -- devil's advocating you didn't think that. some people thought that >> some people said that some of the crypto evangelists

said it. >> it was 28, 29,000 weeks ago and next thing you know it went from 28 back to 52, 53 i mean, it's -- >> you can't be a bored ape. >> pudgy penguin >> this next story is fascinating. >> sec threatening to sue coinbase if they move forward with plans to allow the launch program to allow users to lend crypto assets. they've issued a wells notice. coinbase said it would delay the launch of the lend products until october. regulators said they should apply with existing securities law. coinbase says it's not a security product.

>> brian had 20 different messages to explain the coinbase situation. >> look at those things and see what everyone is saying. see, i don't want to see that. >> yes >> you didn't want to look at that recently? >> i look at it all the time the point is he makes the argument that these are not securities so the idea that they're going to have a -- effectively lending -- not a lending feature really because what they're doing, they're guaranteeing they're going to give you something for it. >> whatever they need to do to get it to -- whatever regulations need to happen sooner than later. make regulations that are going to be seen as onerous or not one or the other, you need clarity. the reason el salvador would want this is pretty compelling

what's coming down here is a lot. at this point, small money and you can do it in bitcoin, you save a lot of money and you don't have to go to a place and pay what one person set up i don't have to get up in the morning. lying in my bed and receive money coming in from bitcoin there is a rationale >> like the same reason that that person could be lying in bed receiving the money is the same reason the government in the united states is probably worried about, you know, know your customer, antimoney laundering, all of the issues that make that -- what makes it so seamless and helpful to a place like el salvador makes it potentially scary to a regulator. >> you're still worried about even that small transaction might be causing flooding somewhere because of the energy usages >> oh, we're not even going to do a climate conversation. we can do it later. >> no. i want to spend some

infrastructure money on bolstering -- >> you do? >> yeah. >> drainage in new york city >> this might have been worse than katrina the levys held there's all of these good things we can do to deal with it unless you think china and india are going to turn off all of their energy producing factories. >> i'm not expecting that any time soon. let's bring you up to date with the talks congress has until the end of september to fund the government or risk a shutdown and a wave of furloughs. the biden administration proposed a stopgap measure the stopgap measure would include billions in funding to help recovery from hurricane ida. we talked about that

assisting in the relocation of afghans that fled. democrats are weigh ing several ideas from senator ron wyden introducing proposals for market to market taxes and derivatives and carried interest they don't pay taxes on a claim of -- they can claim a deduction, i should say, for losses until they sell a position wyden's proposal facing a push back you saw in the article manchin saying it was about 1 -- he'll go from $1 trillion to $1.5 trillion. >> he's being more specific about it he says not 3.5. >> not 3.5 i thought he would go three, four >> depending on what goes.

>> all right i want to work on you -- >> which which issues >> work on you with just the idea that you might like -- we were talking about weber grills and you were out i'm not sure what andrew's got out on the -- >> terrace. >> balcony. >> fire hazard some electrical thing. >> we don't have a balcony we just open the window. >> do you have a grill >> in the great city of new york we have no grills. >> so, i mean, doesn't that take a lot of really good things in the summer off the table for you? isn't that an inducement, maybe i'd like my own parking space, out there -- >> still a great city. i'm still a new yorker. >> you like -- you can't go out to dinner. >> i do. i do. >> outdoors? >> outdoors. >> something for you to think about. >> i'm going to think about it.

>> a summer house. >> aim ge to go think about it coming up when we return, get ready for the trading day ahead. the squawk planner futures, we are in the red dow off 47 points, nasdaq off 10 points s&p 500 off 3.5 points in the 8:00 hour you don't want to miss this dr. scott gottleib will be back to weigh in on the latest vaccine numbers and a new report out about potential origins of u' gd-19 yoveot to hear what he's saying about all of this "squawk" returns after this. thanks for coming. now when it comes to a financial plan this broker is your man. let's open your binders to page 188... uh carl, are there different planning options in here? options? plans we can build on our own, or with help from a financial consultant? like schwab does. uhhh... could we adjust our plan... ...yeah, like if we buy a new house? mmmm... and our son just started working. oh! do you offer a complimentary retirement plan for him?

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welcome back to "squawk. time now for today's "squawk" planner. at 10 a.m. we'll get the latest jolts report then at 2 p.m. the fed will be releasing the beige book report on current economic conditions we'll hear from lululemon and, yes, gme, gamestop after the closing bell we'll talk more about gamestop at 6:45 a.m. eastern time. joining us for a look at the markets ahead of the open though, i want to bring in greg branch at veritas financial. good morning to you. >> good morning. >> we're trying to make sense of what feels like a bit of a repricing, greg. what is triggering it now? is everybody back and they're starting to think for the first

time >> i think that a lot of things emerged from the job report we saw, which was that the workers aren't being added our availability of workers is not increasing that leads to the question of whether or not we'll continue supporting robust job growth particularly where we find the pressures most pernicious, leisure and hospitality. very robust 130 basis points increase in wages and so that is the part that the fed can control and i've been arguing for months that they should control. they can't control the fact that many of our sourcing and manufacturing economies around the world, thailand, vietnam, australia, et cetera, that those are closed and that will continue to add inflationary pressure this is the part of inflationary pressure that they can and should control. >> let's talk about what appears to be -- i don't want to call it a rotation

a baby rotation happening here so if you're right about what's happening in the economy and you think it persists in this direction, what does that say about tech stocks? what does that say about some of the cyclicals? where do you want to be? >> i want to be in things that have three different types of insulation they are better prepared to deal with the inflationary pressures in shipping and delivery, that they are better prepared to offset or insulated from the rising wage pressure and that they are able -- so, for example, the acute wage pressure is really at the low to mid end. so lots of tech companies, lots of financials aren't going to experience that, aren't going to have as much of an impact as leisure, hospitality, various sectors that have lost available workers to the gig economy those are the things i'm looking at value shopping, andrew, there

are firms like walmart and target better prepared to deal with this than dollar general which passes on the pricing to consumers. >> a lot of air is coming out -- not a lot. some air is coming out of big tech you want to be in tech right now? >> i still think there's some very compelling stories, absolutely i'm looking in big tech, secular tail winds things levered to digital advertising, levered to the cloud. when you take a look at a name like google, 20% growth, 30% margins trading at a market multiple on 22 that's still a story we can invest in and be patient with. >> in terms of some of the other stocks, earnings reports, lululemon we'll hear from, we'll hear from the gamestops. what do you think of the others that are in the, i don't know,

turn around mode a fair way to say it >> right this is a very risky environment to be betting on a turn around, particularly when they're exposed to some of the forces i've talked about. that's not the type of risk i'm taking on right now, particularly after the fed kicked the janet jackson hole and still has yet to give us firm details which we know to be forthcoming. i thought it would be prudent to nestle this in i would have to see a verifiable story that i can articulate, have confidence in to take on that type of risk right now. >> what is the chance mr. powell sees what's happening in the economy and says i've got this for longer. >> that report had something for both sides you can look at the 235,000 ads and say we need to continue course or you could look at the 60 basis points of overall wage

increase twice what the street was expecting and say it's time to turn our attention to these somewhat structural and lasting inflationary pressures that they're continuing to exacerbate. >> great to see you this morning. appreciate it. >> as always, thanks. coming up, a make or break moment for ecigarette manufacturers. the fda set to issue a key decision tomorrow. tell you how it could affect ecig companies apple's invitations are out. the new iphones expected to be unveiled next tuesday. the latest at 6:30 it's time to switch to t-mobile. right now, pay zero costs when you do! keep your number and keep your phone we'll even pay it off!

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tomorrow could be a make or break day for ecigarette makers as they await the key decision from the fda frank holland joins us with more good morning to you, joe, that's absolutely right the fda is going to show about the future of 6.5 million products applications from ecigarette maker juul it's only a fraction of what it was when juuling became the common slang for using an ecigarette they reported juul's valuation of 15 billion and now it jumps to 38 billion. the cdc recognized the first check related from vaping and lawsuits started that may and really from there you can see the rapid decline of valuation the u.s. vaping market is led by

july juul once dominated. imperial brands is a smaller brand. these products from big tobacco are more likely to gain fda approval. >> given the comprehensive and expensive regulatory burden of an appropriate emit application, many get applications rejected and have to remove products from the market, whereas, big tobacco get their applications approved. >> reporter: that approval, if it comes, is expected to be a big boost for big tobacco. phillip morris doesn't have a vaping product but it sells high coast. it makes them more attractive in the current bond yield environment. >> frank, how big of an impact would banning all vaping have on the tobacco stocks and the

industry overall >> reporter: well, today not a huge impact. right now vaping is just about 5% of the overall quote unquote smoking market but if you look back at the research, when vaping was an all-time high, 2019, it was expected to gain 30% of the market which is 2025 a lot of these cigarette companies, whatever you want to call them, they had plans to move into vaping products. it has a growth proposition for the companies. tomorrow we'll find out whether these products can stay on the market. >> i don't think i'd like to be 5% of the overall smoking market where are all of these people smoking? the nearby blockbuster video store? where are these people what year are they living in when's the last time you saw someone vaping, frank?

i don't -- >> are you kidding me? >> i walked in here this morning and i was wearing my mask and i got a whole wiff of a vapor. >> of a vapor. do you see smokers >> i see vapors with those usb vapes and whatnot. >> exactly they're pretty much all over the place. joe. >> what about the people at the dinner table. >> they have flavors. >> they do it secretly just standing there. >> i see it in -- >> there >> this guy's doing it right here >> i look at it. i say, why are they doing it to me that's what i still see. if everybody is doing it to quit, fine sooner or later, hasn't everyone quit tobacco then why dueo you do it? >> i hope they don't do it. >> i don't see it. >> kids do it. >> i don't get out maybe that's what it is. >> that's a whole separate

issue. >> i wouldn't want to be 5% of the overall smoking market because that's hopefully almost gone except in france. >> except in france. always in france. >> hear from france. coming up, opening arguments begin in the trial against elizabeth holmes we'll tell you what to expect as the drama in the courtroom begins. gamestop expected to report. up 30% despite falling the past week we'll have a lot more at 6:45 a.m. eastern time. everybody following gme. as we head to a break, a look at yesterday's s&p 500 winners and losers hey lily, i need a new wireless plan for my business, but all my employees need something different. oh, we can help with that. okay, imagine this...

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good morning welcome back to "squawk. take a look at futures the slide continues but not terribly dow off about 25 points. nasdaq off 7.5 points.

s&p 500 off about 2 points we've been talking about what seems like a little bit of a repricing in the markets as people get back to business after labor day. meantime, i want to tell you about some drama in the courtroom. opening statements start today in the criminal fraud trial against elizabeth holmes seven men, five women selected last week for the jury the court hassett aside four months four-month trial legal experts expect it will take that long we'll take you live to the courthouse cnbc has independently confirmed holmes is currently staying in one of the homes holmes in homes on the $135 million green gables estate in wood side, california. wood side is 25 miles from the federal court house in san jose where holmes will face that trial. oracle co-founder larry ellison, intel co-founder and charles schwab i think mr. ellison is probably

not in town. he's hanging out in hawaii these days. >> chuck could be anywhere chuck has a place at pebble too. >> but if you need a place to stay during a trial -- >> life is still -- >> n-- not bad. >> i think it's going okay for her. >> we're worried about october a lot of lows in october kind of pre -- we're -- >> we're predisposed >> the repricing is already happening but maybe it isn't if we talk about t maybe it won't. >> that's always true. >> right >> should be on the record. >> "the journal" has been a bit on the tear on this issue. >> i have my "journal" here. >> so you do look at "the journal? >> i do. keep friends close you're right >> i was holding up "the new york times" yesterday. >> god bless. >> so you find out what it is.

save the date. apple sending out invites for its annual launch event for tuesday, september 14th. implant that date, andrew. >> what? >> yeah. >> what? >> yeah. yeah up here. >> yeah? >> so you have that and tim cook's got a new phone. >> when you get rid of that, it takes six months before you can think about doing something. i don't know if i should that's why september 14th is important. i'm sorry. the company's expected to unveil the latest iphones i'll let you know what i do. i'm going to live a long time. i'd like that space. >> i assume you might capsle that. >> you just got a new iphone >> no, i had a 7 i had a 7 with a battery at 40%. i would like do two things and it would be at zero. so this is great

i love it. i have it right here it could also introduce updates for the apple watch and air pods and also there's something about the -- do you have a silicone case feels so good. >> i don't i don't but i know what you're talking about. >> you do. >> i'll feel it during the commercial break >> that's going to be on an outtake. that's going to be on an outtake. coming up -- >> because you're looking at me when you say -- coming up, the acquisition spree of buy now -- >> not that there's anything wrong with that. buy now pay later firms continues. we have the details of paypal's new deal and we'll take a closer look at the fintech sector sky bridge, anthony scaramucci joins us to talk about the budget fight, taxes and much more. you can watch or listen to us live any time on the cnbc app.

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we've got some stocks to watch. paypal continuing a red hot trend buying japanese buy now pay later. this whole buy now pay later has become a huge dale paidy. $2.7 billion

intending to expand in a country where online buying has tripled in the past decade 2/3 of all purchases still made with cash. what do you think of this business >> we're going to talk a lot about it right now this is an argentinian unicorn. >> do you think this is a good idea >> yeah. credit business? >> cashless. >> by the way, that question really created -- >> our next guest does a little bit of this. you have to have good credit the fin tech sector has been a major beneficiary. customers and merchants adopted a contactless payment systems and moved more operations online check out big fin tech players paypal up 230% square up 230% compare that to the financial services etf xlf up 33%. joining us for more on the hot sector, founder and ceo of fin tech firm uala

valuing the company at 2.45 billion. the round was led by softbank and tencent. that was one of the biggest financing rounds ever in an argentinian history. was it the biggest >> yeah, for a while yes. >> and you are truly a unicorn congratulations. not that old you've done it mostly in argentina. we're going to get into what you do but you're also in mexico that's much more recent and a huge market for you. you're going to go from there, i think. >> yeah, that's the idea i mean, when you look at what's happening at fin tech globally and this recent transaction by paypal shows a clear trend of where we're going, you can see a market greatly under served in the world and that is latin america. in latin america over 50% of adults have never had a payment mechanism.

they're completely out of the digital economy. they need solutions to pay, create a payment history and get insurance. this is extremely low. that's where we come in. we provide a universal account, a global master card, and then we layer services on top of that, be that credit, savings, inves investments, now insurance and merchant acquiring services so that allows people to be integrated into a rapidly digitalizing global economy in a faster, easier, cheaper way. >> fast. fast growth. 10% of the country, argentina we're talking about, signed up about 1/4 of the 18 population, 18 to 20% already. and you could break even when? you're going to break even near term >> yeah, we're going to break even next year we launched 3.5 years ago. by the middle of next year, end of next year we think we're going to break even in our home market because we're now rapidly

growing merchant acquiring services we're going to participate in historically and extremely expensive markets such as argentina. if you think about it, a provider like square charges around 2% for a transaction. the emerging markets it's normal to see solutions that charge up to 6 and 7%. we charge 50% less than that that business is growing and it's profitable. that helps us give cards to everyone and helps everyone build a credit history which is extremely necessary in emerging markets. obviously it goes beyond argentina. we launched almost four years ago in argentina, three and a half nine months ago we launched in mexico this is where 70% of people have never paid with anything but cash argentina is a similar level, 50% of people don't have a card and so these are markets where you either have populations that are heavily integrated or

populations that are completely out and so in fin tech people talk about being top of wallet in these markets we are in many cases the only wallet and the banks have historically left behind a lot of young people so we help them get into the digital economy. >> the growth that you're seeing, you i think characterize it, it happened in, what, a year instead of -- or even less instead of three or four years based on the pandemic and the move to digital payments even in argentina. it was that -- you didn't know that when you launched but that's what happened. >> yeah. if you think about it, you know, 85% of transactions in 2019 in mexico were in cash compared to around, you know, 60% in the united states and so these markets are heavily cash dependent and the pandemic, therefore, accelerated a lot of changes that we expected in years and it happened in weeks

so at some point when they closed down the card production facilities in argentina for two weeks, when they opened back up we had to print over 120,000 cards in one go, in one day and that we had never seen before. so in that way you are fast forwarding a digital integration and a digital transformation that would have taken years otherwise. this is a global phenomenon. in latin america we see a huge potential for growth and for disruption because the incumbents haven't banked all these people and these are not particularly poor people they're middle class people. the banks have chosen to bank only the rich in a very expensive way. that's why the return of equity on latin american banks is so high we've seen disruptors in brazil like new bank and then there's us growing we've just reached 250,000 users in mexico in only nine months.

>> another disruptive technology called bitcoin and you saw what happened in el salvador. is that a friend -- are they frenemies? would bitcoin disrupt you? would it become part of your ecosystem? how do you see the future with crypto and uala? >> i think it's an interesting space. there's a lot of interesting times and space. the problem with situations like ours is we just bought a bank in argentina, a traditional bank. the regulators haven't been clear about what they want for the intersection between the crypto world and the fiat world. a similar thing happens in mexico i think what the region needs in general is regulatory clarity. i think we're starting to see some of that play out in the united states with several players making it clear that at some point there's going to be some clearer regulation but in

latin america we don't have that clarity. so if you are in a highly regulated industry like the financial industry, you really need to know what the regulator will allow and what it won't argentina has capital control. what we need is a clear directive from the central bank about what we can do and what we cannot do. el salvador, i think it's an interesting experiment as we saw yesterday, there were quite a few glitches as is normal in the beginning of any experiment i think there's going to be more growth in the space for sure >> that latest round of financing, what have you got, 1,000 employees? you can add employees, vertically integrate and all of these things you have plenty of money no ipo, for sure for how long >> we'll see we have plenty of capital right now. we have great investors and fully focused on executing we have to grow mexico the opportunity there is

excellent. 35 million people have never been banked or had access to the financial system we want to fix that. break even next year and so in that context we don't think an ipo is imminent we think other people are getting closer to that they're older companies, more mature companies we're just getting started we plan to double the team in the next 12 months which itself will be hard. >> yeah. we've got to go, i'd like to talk to you longer, but where are you going next where would you like brazil what really looks juicy and ready for uala at this point besides mexico and argentina can you tell me? >> the region is really interesting. brazil there's so many players and so much competition. we think there are other markets that are relatively under served if you think about the rest of the region, a country like peru. 50% of people have never been banked similar, 55% of colombia 80% of paraguay and chile.

we haven't gone there yet. we just launched nine months ago in mexico and the growth has been incredible. we think there's so much to do we only have the vertical payments there there's such an opportunity to grow and keep expanding the team i was there last week. i'm there next week and i just see plenty of potential growth in mexico with the amount of people that have never been banked also the amount of people that are ready for this. >> thank you let andrew and i know if you do another finance -- don't you think? >> seems very promising. >> just let us -- yeah, just give us a heads up if -- you know, or not that probably wouldn't -- >> it would be a pleasure. thanks for the time. >> thank you good to have you on. coming up, ursula burns and gabby sulzberger how to increase

diversity in the silicon valley. check out gamestop shares up 30% in the last month. we are going to get second quarter numbers this afternoon our next guest has a uniqu tric to get ready. you don't want to miss that when we return after this

ready.

welcome back to "squawk box. gamestop is set to report second quarter results. the meme stock is down nearly 35%. the stock has fallen over 9% shaving off much of its game since the trading frenzy but still up well over 900% since it began. joining us now with a preview, reporter for wall street journal money investing team and cofounder of alternative data

company. what are we expecting to hear this afternoon and are we going to hear from either ryan or the new ceo for the first time >> that's the big question i think the most fascinating thing about this earnings report is it is the first with the new executive who is from amazon assisting with overhaul. everyone is watching to see what does this overhaul look like under this new management team and are they making steps towards being more e commerce focused? >> do we know what it will look like you can walk into the store. >> yeah, so i don't think the earnings report is as interesting as the long-term play if you look at the due diligence

of what they are talking about they are talking about gamestop evolving to a complete e commerce company and ryan is talking about adding computer hardware, camera, accessories, head phones. not only are they going to be a leader in the industry but also entering the computer hardware as consumer electronics which is a $1.2 trillion market that's what redditors are looking to happen. >> do you expect to hear this on today's call >> i do. it does take time. if you look at the job listings. earlier this year in february, they had one listing for an

engineer now they have 33 it takes time. i think they are going to share their plans. >> if we don't hear that they are going to get rid of the stores, will share holders be happy enough i have a view and maybe i'll be wrong about this, that they'll remain a brick and mortar operation in large part. >> we don't know what that looks like there is still a lot unclear about this if you look at the projectly of the stock. mentioning over 900% that has been about memes, sentiment. fan base i've spoke to investors who are not letting go of the stock and traveled to the shareholder

meeting in grapevine, texas to hear ryan speak. >> what is a fair valuation of the company today and even based on whatever you think the best cased scenario is? >> it is hard to say in the long term, if they are successful implementing part of the plan and that's a big what if, the stock could fly. that's what redditers are banking on >> you don't want to put a money out there? >> it has been impossible to value these things, so i'll pass on that. >> we'll leave it there. thank you. appreciate it. coming up, former dallas fed president richard fisher weighs in on how the weak job's report could impact the fed's thinking with an uncover on the journal

delta through a rewrench into everything we'll have gottlieb on to talk about it futures well off the lows but stocks off the pressure. down five. we'll be right back. ♪ ♪ this bathroom is too cute! this one is too cool! [ grunts ] this one is just right. [ grunts ] oh! find your just right at kohler.com. (vo) this is more than glass and steel...

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stocks under pressure. future in the red. cryptocurrency getting hit again coming off a big drop from yesterday. not so friendly skies. brewing tensions between american airlines and its pilots boiling over diversity in the board room or lack thereof we'll speak to two female executives who sit on the board and how they are working to fix the issue. second hour of "squawk box" begins right now

>> becky is off today. the three-day weekend, which is the monday off versus the friday off is key because it is already wednesday. it is better to do the five days up front, you know what i'm saying then the next week, you get the three-day weekend. >> you wish you would have done that >> i love being here >> i wish i was here seven days. >> eight days a week, if possible >> that's a good expression. headlines this hour. apple sending out invites for its annual launch event. >> did you >> i think i did

i get a christmas card from tim. i love tim unveiling a new version of the iphone tough to replace steve jobs. >> and he did it the labor union saying pilots are getting ready to picket over fatigue, hours, not enough hotels available. travel demand during peak vacation months in an effort to capture revenue after the pandemic business travel down, international almost nonexistent. an update now in the talks over washington in a bill to fund the

government to reach a deal or risk a federal shutdown in a wave of furloughs for federal workers. the biden administration proposed a stopgap measure to fund the government and the government backed the $3.5 trillion reconciliation the stop gap measure would aid recovery from hurricane ida. assist in relocation of afghans and also deciding to raise or suspend the debt ceiling getting to dom to look at what is moving this morning. like a baby rotation >> you guys, just for the record i'd love to hang out with you guys eight days a week, twice on sunday yes, a minirotation going on

some of the movers going on and from the market perspective. paypal is up already up 59% just in 12 months fintech is hot they go after paidy. they'll pay $2.9 billion for that we have the amazon news partnering with a firm for its own buy now, pay later service square as well paidy focused on that buy now pay later space. watch what is happening with crypto continuing today. to a lesser degree we are seeing bitcoin just above

46,000 a coin. ethereum down. that is having effect on stocks. coin base global down 3% microstrategy as well with bitcoin on its balance sheet down off about one quarter of 1% today. what is happening now in certain parts in the market, citrix down after a report that the hedge fund manager has taken more than a 10% portion of the company ill yot looking to help unlock shareholder value there. back over to you >> eight days a week, dom. >> what's the difference between baby and mini? >> baby seems even smaller than

mini >> minime was much larger than a baby and can talk and walk >> yep i like it. >> thank you when we come back, while dallas fed president was pushing for unlimited qe last year, you know what else he was doing he was buying and selling stocks coming up, see how he did that >> let's get a check on the markets. squ squawk returns after this. in 2016, i was working at the amazon warehouse when my brother passed away. and a couple of years later, my mother passed away.

after taking care of them, i knew that i really wanted to become a nurse. amazon helped me with training and tuition. today, i'm a medical assistant and i'm studying to become a registered nurse. in filipino: you'll always be in my heart.

dallas federal reserve president robert kaplan. joining us is steve with more on kaplan's portfolio >> he held 27 separate stock assets and fund holdings valued over $1 million and he conducted sales in excess in 2020. kaplan's holdings and

transactions appear to be larger and more frequent. he said none of his actions violated the code of ethics. in a statement he said, all transactions were reviewed by the dallas fed's general counsel who confirmed they were in compliance no trades were made during federal reserve's blackout period when officials cease making kmoms runs from a day before to a few days after has divested hundreds of millions of goldman shares more than $1 million of apple, alibaba, facebook and google, several energy companies like marathon and valero. unclear how much of each he has

as the disclosure form only says larger than $1 million such holdings and trades are small relative showing several fomc members with values in the millions including fed chair jay powell and many accrued during years in finance. with some private equity and investments. >> i guess in a perfect worlds that what you'd want but it sounds like it was all within the norms. he certainly said the wrong things if he was trying to juice his stocks if he was long. he was one of the most hawkish you know what i'd like to hear i'd like to hear kyle has got all his money in bitcoin gold or bitcoin. >> i'm going to look up powell

for you. >> it was a point, steve work with me with what he's doing in debasing the currency, they ought to have all their money in bitcoin in gold take it easy just joking around you'll still get interviews. relax. >> i didn't know that was a joke >> while they're debasing the currency some could argue that central bankers around the world are rushing to the bottom. >> here is the bottom. if you want to be serious or not or want to make a joke >> i'm not making a joke

in every joke, there is some seriousness. not the first time you've heard they've been very easy for a long time. i know that. >> they have been. but, joe, hold on. the dollar has maintained its value over this period of time its gone down with power and inflation and the change by what he's looked at >> some people are always going to say if anyone in any position anywhere trades stocks he that it somehow smells bad or looks bad. do you have a problem with

kaplan >> i prefer he has a blind trustor something else managed by other people. why can't he do that >> he could. do you think he could specifically move google or amazon by being a fed speak? >> he could. >> my preference, so we are not having a conversation. there is enough people out there requesting the credibility of the fed and elected leaders. why give them any foder. it is foder right now? >> i'll say one thing kaplan has

distinguished himself as a guy who is very finely attuned and knows the markets well the guy that called for the wide open policy and interest rates made the turn out there with the direct odds saying one of the most aukish out there right now. >> put in the context of us. i think you are a very credible person but i wouldn't want anybody to question what you are saying is influenced by the markets. lets get to former dallas f

president fisher where are you on this? you want people with illustrious careers. in finance, that means you probably have some money do you want them not trading so there is the slightest hint of conflict i went through this as well. is i went through this. we were the richest fed presidents every time we went through it, it was a rush and then disappeared. kaplan is a successful investor and finance year i don't think we should hold him

in nefarious here. there are very strict rules. i know rob like a brother. he's of enormous integrity i don't think this is a big deal i'm grateful we were able to find a man like him to succeed me i think this will blow off over time it is the federal reserve. you want market experts. there aren't very much on the fomc except for the chairman and kaplan these guys grew up in the world offinance.

unless you think that is two years. these are two opposing forces which should we be putting our reliance on? >> we have an imbalance between supply and demand. bottlenecks on supply. this will not be alleviated. whether you are looking at the port activity and everything coming to us from asia or the

seaboard these pressures are more su sustained i believe. what we like to look at the national independence surveys, half of those looking for employees in this critical part of our economy, half of those looking for employees cannot find them. real pressure in the survey here clearly not covid related. i think we are exaggerating covid d in terms of price pressures. we are only going to be here for a certain amount of period it's a real dilemma with the

fomc >> before we had the price inflation, you've always been someone who said the asset inflation is something the fed needs to keep an eye on. have you seen something happening that has you thinking there is a lot of cash around thatyou need what you call speculation they first brought it up years ago. this is really trouble some.

i like to look at collectibles, wine, art. they are being prices ee normally the limited span of product. what you see is the standard reaction a reach for yield and then a rise in the price of collectibles and commodities some have come off to be sure. nonetheless, they are still richly priced. speculatively richly priced. those are what i look at and i don't know how long those will continue to be sustained to have 85%.

>> did you get my joke when i said powell has all his money in bitcoin. >> that's not a -- i got the joke i look at the real trade that dollar remains, what is your take and what do you look at i know as dallas fed president, you look at that area. is the fed policy debasing it now? >> joe, you look where it is

heavily euro ambulanced in the united states dollar in terms of liquidity and size over race and size during the panic. it was at 103 and came down to 89 it always trades between 90 and 103. despite what everybody was worried about, the dollar plummeting, it has not almost a little over 93. this is a trading range. if you took this graph back five years, it is the trading i don't see the dollar having been debased >> of course it hasn't it is beggar thy neighbor.

>> relates to this moment the ability to judge credits and come to excess i think part of this is just the technological

advancement in addition to that, money is cheap and free. some risk will fail and some will succeed >> what do you make of el salvador >> a great short-term loss now on only $20 million. >> nothing changes frankly >> i'd ask you about the pay period to the cowboys but if they found out you were betting on football. >> you can get on jobs, he may know something about the cowboys. he's a connected individual. no betting no betting >> the big game is the tampa

game this thursday >> that's the one i'm talking about. i was thinking brady but he's now a buccaneer. >> on nbc. >> say that loud and proud >> say it later. in a perfect world, we wouldn't be promoting >> still to come, former zeer ox ceo joining us to talk about the fight for board diversity. you don't want to miss this. some of the stats. it is shocking football season kicking off. we'll talk about sports betting, rating and more. stay tuned >> announcer: time for today's trivia question. according to the national retail federation, how much will

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the new york times taking a look at the lack of board diversity among private companies. we spend a lot of time looking at the diversity of publicly traded companies the board of companies funded by the top 18 venture firms only 49. 4,700 board seats, only 49 have been held by black directors only 1%. the two people behind that research gabby, one of the few female black directors. serves on the board of eli lily, master card, washy parker and

also another guest, on the board of exxon mobil and others. gabby, how did this research begin? what lead to you start looking at this? >> ursula and i have both been focused on this issue a number of years but we became increasingly interested in private companies because they don't have the same kind of regulatory accountability. i've been in the private industry for all my career as we approach the work, i have to say, my expectations i think are realistic or i thought they were and we were both disheartened the numbers with regard to blacks on boards are extremely low at just about 1% that's not even the full

picture. we also looked at the numbers as it relates to the c suites and you look at the same 840 companies, that's about 3,800 executives cfos, general counsel, of all of those, there were only 25 black executives when you put that together, the combination of blacks on boards and blacks in the c suite, the leadership of these companies that have such an out sized impact to our economy. over $10 trillion in market cap and companies that are such important innovators and disrupt t ors and role models. it can't be underestimated the diversity or lack thereof on

boards and in leadership really was of significant concern to us >> what do you think is happening here talking about culture and creating culture has to happen at its infancy talking about what these publicly traded companies are doing now and talking about the last minute. nasdaq talking about diversity there are a number of private equity firms trying to do this as well. but it all seems at the end, not at the beginning >> andrew, you are so right. when people do business and take risks with people that they know if you are starting a new company and trying to raise a fund, you go to the people you feel the most comfortable with

they may not be the most skilled or the best but they are people that you know. this data shows exactly that there is not a lot of effort being put into reaching far from your close to home you are staying very close to home people you went to college with or done business in the past with, et cetera. there is not an active keep people out but there is literally no affirmative move to get difference in. we talked about african-americans, latinx is just as bad. gender as well gender, black, latinx is very small. surprisingly or encouragingly, if you look at the data for

women. after a couple of fits and starts in the earlier part of the century, what we see is a pickup here in women, exclusively white women. still way behind but the numbers from a gender perspective is improving. blacks, we have to get on this i say it all the time. we have to be affirmative in our actions if we want to change these out comes. >> let's try to make this practical. >> if you are a business leader, en entrepreneur or startup. part of this is an expedia issue. people saying i'm going to stay close to my circle they look like each other because they hang out with each other. is there a process with which

can be created or is created, i know you are both working on it to make that network more skpeedent to create that network early on? by all the data supports you get better out comes and returns it has mostly been a matter of expedience there are firms within this group over the last 20 years

have not had a single black on the board or in the executive suites there is an awareness that there is a lack of pull or access to this incredible talent out there. there are some firms working on this they are really quite intentional about that that's encouraging this is a pool of firms they have a playbook and have done quite well. >> we are seeing this more in the private equity world some of the examples are valley

examples the question becomes do you see a move happening among those firms and by the way, how much influence do you think those venture capital firms really have we've seen them as a hot deal where they can then push the ceo to do the things they want them to do. >> second question first they have absolute venture firms. i think out sized influence particularly as these firms are moving closer and closer to going public they have access to companies and banks and lawyers. they know the process and have

money. for sure from the size influence as well. we've seen it for women. everybody knows it and sees the data no discussion anymore. how do you get out thf problem first. connect, connect, connect. start with me or gabby find a black leader or someone and at least connect with them there are resources out there with a simple connection ford foundation, a lot of search other p.e. and v.c. firms

particularly in the valley towards addressing the problem with lack of diversity if it isn't fixed, it is going to be fixed for us we are seeing it we are see regulatory agencies or financial agencies or governments starting to mandate things you have to have x, you have to have y i think it is a lot better for the firms to get in front of it before being told what to do and how to do it >> we have to leave the conversation there it is important research and work >> thank you the events of 9/11 change the

way we travel. have we seen the last of security changes at airports and on airplanes why even tighter security is unlikely to change the growing demand to get on a flight you can always watch us live or on the go. we are back after this jerry is here! j! mate, how are ya!? it's so good to see you. good to see all of you, yeah! why is jerry so... popular? it's been like this ever since we started using workday. what do you mean? it makes it easier to develop great relationships with our suppliers. now everyone, everywhere loves jerry. they sure do. they do. they really do. mmhmm. workday. finance, hr, planning and spend management for a changing world. your shipping manager left to “find themself.” leaving you lost. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates

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the security makeover across the country and still changing the flying experience. we look at 20 years after 9/11 think back to what it was before 9/11 there were no security check points there were magnet detectors, metal detectors before you could go into a plane or board a plane. every airport has extensive security they have recovered 3,200 firearms last year

the majority of those were loaded when they were recovered. take a look at the growth over the last 20 years. we are showing you this through 2019 the most recent data for 2020 will no doubt show a drop in recent passenger growth because of the recent security, they are looking to get through security quicker and with less hassle and why companies like clear have really taken advantage for the demand of hassle free travel, if you will once you are clear screened and in the clear security, it is much quicker quicker often than many if you go through the clear system. look at shares of clear which just went public back in july. you see shares moving higher not doing a lot. we'll see over time. take a look at the airline

index. 20 years ago, the big 10 in the u.s. are now the big four. that shows you how much consolidation. one airline that did not go bankrupt or merge or be bought it did buy an airline would be southwest. look at southwest over 20 years. a lot of changes and we'll see moreover the next several years. >> one questions that always struck me. i always worry about a bad guy trying to get into the clear system because then the checks are less rigorous at the airport? >> it is not like you don't still have to go through security you do not have to go through the same level of waiting if you do in regular tsa and often at

airports with tsa precheck >> appreciate it the changing landscape of sports miaed dolphin executive joining us after the break. we'll be right back.

as the nfl season kicks off tomorrow, many things are changing this year in sports

media. could founder and ceo and vice chairman of the miami dolphins we are most excited and it almost feels like we are at the cusp of the intersection of not even gambling but having skin in the game i'm probably not going to get rich from draft kinks. the money seems to go one way but i really love it i enjoy it we are headed that way, are we not? >> it is really fascinating. the leagues took a standoff approach to gambling i remember back in my days, i couldn't even do a deal with a

state lotto. fast forward, i think 32 states, gambling is legalized. clearly gambling is here to stay the sleeping giant known as amazon has come out writing checks all over the world. broadcasters have been reeling they are now using some of that revenue to buy up rights in a strategic way. all colliding at the same time thisseason

we used to worry about big money from gambling. we don't want a society. every state has a lottery where we are breeding people addicted to gambling. by the way i don't adhere to either one of those things i hadn't seen a baseball game or a reds game. if i have $5 on it, i'm watching

it >> that was just happening i do think as sports lead in the world race and europe was leading prior to that. we have to keep an eye on and all the hills that come with gambling to make sure your game broadcast is is not inundated >> i guess that's all possible drone racing >> i want to convert you these kids all over the world

have been racing drones. they fly 90 miles an hour. really interesting highly skilled and you are able to bet on it in seven states the sport that was really designed for betting >> if people play video games, why wouldn't you want to watch people really good at flying drones at 90 miles an hour >> that's how i see it >> thanks, matt. programming note, first game of the regular season tomorrow when tampa bay buccaneers play dallas cowboys on thursday on nbc and the l.a. rams host the bears on sunday night football. both of those on nbc and peacock.

we'll be right back. ♪ ♪

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>> good morning. futures are doing their best it has come back almost all the way. down yesterday a little bit.

not much on a percentage basis we are expecting movements soon on the democrats $3.5 trillion social infrastructure plan doing in the background. elizabeth holmes goes on trial today. how far the mightyfallen good morning welcome back to "squawk box" right here on cnbc live on the nasdaq becky is off today

take a look at u.s. equity futures. what are we calling it a baby rotation. the dow off. s&p 500 off about a point. treasury yields as well and considers by what the fed may or may not do the rate right now at 1.351. shares of outdoor clothing maker canada goose falling thanks to actions from china leveeing a small fine criticizing it for allegedly breaking chinese advertising clause saying a misleading claim that its material is the warmest on the market. we'll bring you a live report from beijing with all the details. >> if you said i'm selling the warmest coast and they say,

actually it is not the warmest coat >> you have a canada goose coat. i have actual geese everywhere that's the difference. city dweller out with nature. >> you are out with the geese. you have a goat called canada goose. i have actual beautiful living -- actually i don't like them this much american airline pilots making plans to picket the hubs at miami and dallas. the reasons related to pilot overscheduling, fatigue and lack of hotel availability for the crews. the meme stock traders taking note they expect the company to report a loss of 67 cents per

share. on revenue of $1.1 million investors listening for any includes about the future of the business to make it more than a world. wrapping up tomorrow morning here on the "squawk box." >> el salvador adopts crypto as legal tender >> when the whole country is buying the equivalent of $21 million, it doesn't have that big a splash as others >> we'll start things a little

differently. i normally show you folks the top 10 active ticker searches. i went back and pulled the ones that are crypto oriented bitcoin, coin base, ether. grayscale bitcoin trust was 48, 49 on the top 50, just to give you an idea. bitcoin the fifth or sixth most searched the rest of that is on twitter right now on the domino. looking at the context, you look at this chart. 46,567 right now after a big drop yesterday

some traders are looking at this area here roughly $44,000. if it goes below that, maybe $41,000. still up about 65% over the course of the last year. an ethereum side of things, the second biggest quinn out there down about $14 per token $3,424 a lot of folks looking at the outside price here more than bitcoin. an idea of how far things can fall for ether because it will have a much bigger run >> the big nft currency. maybe the runup of 52,000 up from 30. much of it had to do with a

country adopting it as legal tender then some glitches we'll see >> with each one, their heart

let the third biggest out there now, ada so big in popularity is the third biggest out there. >> what do you know about polkadot >> i know nothing. >> let's get to washington right now. the government running out of money. joining us now with more good morning >> that's right. the federal government does run out of money at the end of the month. the white house is backing a short term funding bill to keep

the lights on. shalanda young will work to compromise the broader legislation. the white house did not say how long this measure should last and would tie it to the debt ceiling. emergency funding to this package. asking for $6.4 billion in support for afghans and $14 billion for natural disasters that occurred in the last 18 months before hurricane ida and at least $10 billion needed for hurricane ida itself touring the devastation. saying disaster relief alone is not enough >> i talk about building back better you can't build it what it was

before this last storm you've got to build better so if the storm occurred again, there would be no damage >> moving the fight would later changed deck on that structure bill and that $3.5 trillion spending package democrats are hoping to pass by the end of this month back to you. talking more about the spending package and how bitcoin would pay for it from sky bridge capital. i want to talk about what is happening in washington and what you think is eventually going to happen with this infrastructure

plan what he might be able to go along with they'll borrow the money as modern life theories i think it happens i may not be exactly $3.5 trillion. i bet it has a two handle. i do think they'll get something done like that i think they all recognize going into the midterm elections, they have to put something on the table. they can't really pay for it you've got the tax code totally screwed up right now at some point, andrew and joe isn't going to like it you'll end up with a vat in the united states. you've got such a large black

marketactivity and a lot of people evading taxes. that's one of the ways is to capture those people is through a value added tax. i do think they'll get it done >> sad to say, i was home thinking about the conversation the i had with andrew yesterday. is that the eighth day of the week, joe why can't they do it that way? why can't they do it when they

consume raf nously >> listen remember ronald reagan he didn't want a value added tax because he thought it would corrupt the con susumption he thought everybody would be paying it including the poor people it more or less works in europe in terms of capturing the market

activity the same thing they can dond turning a penny into $5 million. >> are you turning the traction on that or is that something you are spending the traction on >> looking at the vin diagram. this is likely to happen i just knows that a direction it will likely go in. >> we saw el salvador making its play >> anybody that tells you they

know is fibbing to you being on wall street for years, it felt like it was peaking in the wake of the el salvador adoption the demand and fundamentals for things like bitcoin continue to improve. every day, you hear more about more wallets i'm quite optimistic i thought it would be $100,000 price target by year end people were like okay. now it is sort of 45, 50.

these things that will continue to rise because there is actually great uses for them >> the other big fight that brian armstrong came out swinging something you don't often see when a company starts to critique and offer a yield saying nope, you can't do that we'll start thinking about this as asecurity

is that security or money. maybe they have to regulate it, i don't know if it is necessarily security it is on the sec to owe bien on this more or less what mark cuban said they want the lawyers to get in there on the process they've got to recognize it is time to sharpen their pencil in this market. i applaud brian armstrong's judgement and the brother of his business i think it was a little forward what he did on twitter mark cuban doesn't think so. he won a case against the sec. i would say, each time, this thing is heading for $2.5 to $3

trillion over the next 24 to 36 months it is not going anywhere it is a big enough asset class he's taught the class. i recommend it to people download it from mit he understands how adaptive and maliable these currencies are. so, yes, i don't think it is fair what the sec is doing, frankly. >> great to see you. >> my general counsel is really mad at me right now. i just said this is a real fake video of anthony because i said i don't think the sec is doing something fair i'm going to get yelled out by my gc after this >> we'll let you know. coming up on september 29 delivering some of the biggest names private funds, equity and

cnbc anchors and reporters will be leading high-level discussions through virtual one-on-one panels. for more, can you go to cnbc delivering alpha.com we'll see anthony next week at his salt conference as well. looking forward it it. the fraud trial of elizabeth holmes years after the company's collapse president biden is planning to layout the next phase of his 'lhetegy to beat covid-19. wel ar from former fda commissioner dr. scott gottlieb.

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points a little bit of a reprising happening. everything you need to know about one of the biggest court cases in the business world. sc cohen is in with us. the trial of elizabeth holmes set to begin >> she was billed as the next steve jobs prosecutors will explain why they say elizabeth holmes was intentionally committing fraud and the densfee of opening statements coming up on "squawk box. look, as cfo it's my job to be ready for whatever's next. that's why i have my finance team, randomly hurl things at me. it's also why we use workday. it gives us insights, so we quickly pivot our strategy, people, planning, you name it. sorry, sir.

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>> federal prosecutors are about to layout their case as the biggest white color crime case in silicon valley. the defense kind of telegraphed their story already. if you just did it based on facts, it is a tough one >> it will be interesting to show how they play it and they've sort of given themselves

a few different avenues. >> saying that elizabeth holmes carried out a scheme a drop out at the age of 19 saying it had the technology to do a blood test based on a tiny drop it didn't. the company collapsed. elizabeth holmes facing 20 felony counts. this trial delayed by the pandemic and her pregnancy revealed earlier this year talking about not just the way investors were damaged and how patients were damaged by false

test results we may hear from the defense and different strategies was it silicon valley puffery. was she the victim of abuse by chief operating officer and ex boyfriend? this case will be heard by a jury of seven men and five women and five alternates chosen over the space of three days last week every one of the perspective jurors asked they had heard about the case you have to be able to show you are fair both sides satisfied enough with this jury panel, which you'll hear the opening statements today and possibly begin hearing from witnesses from the first lab associate who become a

whistleblower as prosecutors take the jury into this company that they say was a flat out fraud. getting results back from one drop did she not know to get any results, they have to send it out to actual labs she never believed it was working. >> that's what she has to prove that she actually lied and what was told to investors

and doctors. was there actual fraud here. this will take 13 weeks. talking about this leading up to christmas and hopefully having a verdict by then. five years later, we don't have a verdict that can do that what made anyone there think they had a black box device doing the chemistry that would have been necessary to do those things everybody knew this, did they not or did some person know and they didn't tell anyone? >> that's what the government has to prove that they knew it and told everyone they had that technology that's the crux here not whether this was some fantastic idea a lot of fantastic ideas come out of silicon valley. whether they knew this was impossible and told investors and doctors and patients

otherwise. the burden of proof is on the government >> i still don't get the defense. make the argument with me. give me the 60 second version? >> we'd like to know what the defense is we've telegraphed different avenues, one being this is how they go. she really believed this could be done and was doing what they've done since this whole eco system here started. also on this list and determining she was the victim of abuse of her chief officer

and couldn't inform that intent. knowing exactly how that would have been played the government in a form of defense doing this, they had the right to determine as well with their own efforts. one of the reasons they'll be there 13 weeks andrew cannot sit on the jury. >> i cannot. i have great sympathy for emotional issues this is a whole other level. i'm prejudging and it is not fair >> i'm not going to be an alternate or anything. i have no pin. thank you. >> more on china penalizing a canadian coat maker.

my canada goose coat is in trouble now talking about the large and current dispute between the two. the other question, is canada goose still cool former fda commissioner dr. scott gottlieb coming on raising questions about the origin of covid-19 and that key virus live in wuhan he's got a twitter thread you've got to read 'lwel break down on the air. you don't want to miss it.

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in an instant. well, you all have xfinity home, with cameras to home security monitored by the pros. *laughs* learn more about home security or get our self-monitored solution starting at just $10 per month. welcome back to "squawk box. in china, working to pinpoint the origins of covid-19. published this week including the details. including a grant proposal and study bat samples for novel coronavirus. from the wuhan institute of

viralology joining us dr. scott gottlieb. his new book, uncontrolled spread, why covid-19 crushed us and how we can beat the next pandemic i've given up on the gain of functions. if you say it only applies on the research of human virus, so if you are working on a bat virus that becomes a human virus. what the thought was, i think fauci quoted, the benefit of researching how it would become a human virus out weighed

whether we created something that obviously wasn't the case >> this discussion at a practical level, we were doing research on those viruss making it more dangerous to humans and handling the virus in ways that could have potentiated their release. treating transagainic animals. we knew this before. so they were doing things in that lap that could have led to circumstances and coffee involved in ways that humans could have escaped having a record of that lab and questions about the integrity of that lab and the procedures in

place. these are two interesting details i didn't know. the experimentation on mers-like not just sars-like they identified one in particular they said that research was going on in a level three biocontainment i was assuming what they were doing was in a level two lab at least some was going on in a level three lab. that's encouraging the about the intoxbottom line, people will parse those. >> there are p 4 labs.

this was at least 3. now we know, ebola never killed millions and millions. i don't know how far we'll get i want to talk about mu. what do you know about mu. how infectious it is more than delta? does it appear to be -- does it appear the virus is weakening with each mutation >> so far the mu variant doesn't seem to be outcompeting delta. conventional wisdom is that delta will crowd out the others. people i talk to isn't overly

concerned about the risk of mu most people believe the next strain we see is going to be something in the delta liniage delta itself will require some different features it will be an off shoot that requires some different features that can partially evade prior immunity you might get partial escape it begs the question as we consider reform lating vaccines whether we should be using a delta backbone in the next vaccine we develop because we will probably have to evolve these over time. i look at the field of people involved in this, looking at what the virus is doing around the world.

you look at trevor bentford at the hutch. he put out a long thread yesterday about this rather than just purely looking at viralology workers and the people actually watching how it is spreading around the world. >> you have a twitter thread about testing. something beoth of us have been talking about. i think there was an expectation as of 18 months ago that we would have regular testing that's one of the ways we'd solve the problem. you go to school, you get tested you go to work, you get tested it hasn't really happened. so much hope was pinned on the vaccination. how do we get lots and lots and

lots of surveillance testing and do it in an efficient and cheap way. you go to europe, if you want to get a quick test, it's like $1 or $2. in the united states, you get get say test at cvs, it is $3 f -- $30 for two tests. >> somestates are doing this well in schools. you google test to stay. they are using testing in lue of putting students in quarantine they'll test in a serial fashion to prevent an outbreak companies have formed offering turn-key solutions >> right now, for the average

american to get tested daily, even weekly. if you were to try to do it on your own, it is a pricely, costly, hard thing to get done >> money isn't the issue in the school setting there's been over $10 billion allocated to schools to implement testing. these tests bought in bulk are cheaper. they are $5 when bought in bulk. i think the hesitation no terms of schools is they are worried about what they are going to do with the results it is hard to implement a program to turnover positive cases. you have parents that get up set. you'll have false positives. a lot of schools are reluctant to step into this. not because they partner with the turn key solution.

those politics of turning over in that setting. >> why is it so expensive still to buy one from walgreens or cvs on a personal level. that's an fda story? >> it is now $25 for a box of two. $12 per test you are right, more than in europe i t i think they may be subsidizing those. we could do that a possibility we could be doing that certainly to people in essential jobs front like workers, people more at risk >> okay. we have to go, doctor. did you ever believe the

theranos work? >> no. we were exceptic from the beginning. >> joining us and speaking exclusively with leon cooperman tomorrow morning the frosty words from china sending shares of canada goose lower. we'll be right back. lp share th. wealth is saving a little extra. worth is knowing it's never too late to start - or too early. ♪ ♪ wealth helps you retire. worth is knowing why. ♪ ♪ principal. for all it's worth.

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welcome back shares of canada guz are lower this morning some pretty harsh words out of china. joining us is eunice yoon. >> not being seen kindly over here chinese state media is calling canada goose a liar after the regulator accusing the company of misleading consumers. saying the claim that the c canadian hutterite down is the warmest. saying foreign down jackets are not warmer than chinese ones weighing in saying foreign

brands don't equal high quality. they are promoting consumers here buy local cons critical statements against labor. also of cours the timing is important because canada and china are currently at loggerheads over the fate of two canadian nationals whose detention is closely linked to the fate of huawei cfo who currently is awaiting the extradition hearing possibly taking her to the united states from canada. >> eunice yoon, appreciate it. i will just say as a canada goose coat owner, it's the warmest coat i've ever had it is. and i've tried to get warmer you know i'm cold, and i'm always cold so i like a good warm coat matters. >> the wind in new york blows in

the winter it gets very cold. let's get down to the new york stock exchange jim cramer joins us now. i haven't seen you in a while, jim, and i don't -- what's front and center for you >> tyler boyd is front and center he's going to be a great wide receiver on my fantasy league. i wanted you to know that. >> i like that. >> i'm going to have a big upside this year the ceiling is unlimited unlimited, joe >> nothing that happened -- you know, i made the mistake of trying to bet on preseason nothing that happens in preseason matters one bit about what's going to actually happen, i don't think. >> everybody's sat all their starters so we have no idea what those teams look like. i have to tell you, cincinnati, it's your year, and i am not joking. >> you know what i actually said i hope so because we're cursed and we turn great players, they either get hurt or -- but that last year at

lsu, that could not have been a fluke, i don't think, and it should be -- he had two -- he had two snaps when he -- >> anyway, look, everybody's worried about september, joe, and all these strategists, s&p 500 target, we have to worry about these guys who all say things are bad if everybody says things are bad, can they all be bad >> right, october's coming a lot of bottoms made in october. right? not this time around >> second week of october, end of the second week, september slide, but you know what i think that this is a different kind of economy. i do expect that the government could screw us up, you know, they always do they do too much stimulus at this point, people are going to worry. i thought the board had a lot of good things to say, which is that we have enough job openings already, i know we got the jolts later today. we really need more stimulus

we're kind of in a hard place, some people want stimulus, some people don't away from washington, everybody's saying ppg was bad yesterday. therefore efverything's bad. that is ridiculous chemical company got a lot of force majeure. >> which side of delta are we on in terms of its effects on the economy? is that a lookback that the journal says that it affected the economy more than people thought? are we getting -- are we going to come out from that, or we're still moving into it >> well, i think that these next two weeks are decisive because of kids coming back to school. europe is about 70% vaccinated need a green pass to go anywhere, green pass being two vaccinations i'm with the good doctor, gottlieb's been right all the time, i've got to get his book i know it's been sent to the office between the people who have gotten it, gotten the illness and people who were vaccinated, i'm getting a little more confident there's just a couple of states that are real bad, and

then the rest of us, i think are okay >> the one thing you always -- it's weird that drudge or the media seems to leave out unvaccinated they seem to leave that out, and they love their fear mongeremon, and wherever it's really bad is and where there's a real problem, they always have to come to that the real problem is unvaccinated it just is. >> if you've got two vaccinations in the nfl and you get a breakthrough, it's five days if you're not vaccinated it's ten days i'm focused on the five days after a couple of days these guys are better. that's really the issue to me. you get better faster. we've got to focus a little more on that. if you get vaccinated, you're really -- i don't want to say in terrific shape, but you know, it's much better. >> i'm thinking. >> but let's go back to the key thing, tyler boyd, okay, everybody -- anybody who -- >> we'll end on that

'll e , jim. weseyou in just a couple minutes. >> absolutely. "squawk box" will be right back. competition beat us again. how? they have a better finance system than we do. 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...

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welcome back to "squawk box. let's talk a little markets right now, chairman and ceo and cofounder of orient asset manager. and chief investment officer of sandhill global advisory we've been talking about a baby rotation i don't know what's happening here what do you think? >> well, the market despite

going up and dprgrinding highera been a bit directionless we've gone from large cap growth to cyclical value, reopening, reclosing, you know, name it, everybody's been in the lead so what we think is it's best to be with some certain ty and predictability the kind of names we like, facebook, waste connection, even netflix fits that category. >> so you're buying tech -- you're buying tech even when it looks like the air is coming out. maybe there's a buying opportunity then >> yeah, no, definitely think you can buy tech here, and if there is going to be some type of, you know, new limitations, then technology you know is ubiquitous, and you don't have to be anywhere to work and to experience what you need from technology >> brenda, is october going to be -- >> and they've underperformed. >> is october going to be a good or bad month for us, do you

think? is this the beginning of something? >> well, we're going to hear a lot in the coming weeks from the fed. also learn more about company fundamentals, just as conference season kind of kicks off here. i think the fundamentals are quite strong i think having a balanced approach makes sensue, not kpleesly abandoning the growth trade. we'll certainly get more evidence if there was a little bit of a slowdown here in august, really the delta variant. i think the market is looking past that and recognizing that i think we're on the other side. so i think that october could end up being a surprise just like august where fundamentals continue to be quite strong and that really could help the market continue to at least be in a trading range and not really experience a significant correction you know, i think there is enough money on the sidelines and we're in such an environment where interest rates are so low that the equity market still

makes a lot of sense for a lot of people, and we have stock buybacks coming back, so i think this should all be part of the equity market. >> we have to leave the conversation there we've got a hard break into the show thank you both we will keep our eyes on gamestop later this afternoon after the market closes. a lot of people will be focused on that. joe, nice to see you we'll be doing this eight days a week. >> be there or be square join us tomorrow, "squawk on the street" begins right now good wednesday morning, welcome to "squawk on the street." i'm carl quintanilla with jim cramer, david faber back together at the new york stock exchange premarket is a little soft as the numb of sell side firms can under thing their u.s. equity outlook now grows to nearly half a dozen. meantime, more firms cutting q3 guidance on supply chain kbie dance. our road map begins with coinbase