good morning, u.s. stocks are set to plunge. we've known for a while, october is coming. it's been after a 3% selloff in hong kong overnight, we'll show you what's moving right now. the traders are very concerned adding to global fears one of china's largest property developers is threatening to default and it could have ripple effects through the economy.

a lot of what we're seeing is evergrande related you would think, along with everything else, take you live to beijing plus elon musk taking a jab at president biden after this weekend's historic space mission. it's monday, september 20th. september 20th, put that in your brain, 2021. "squawk box" begins right now. ♪ good morning, welcome to "squawk box" here on cnbc. i'm becky quick along with andrew ross sorkin and joe kernen there's a lot of red everywhere this morning check it out right now because things have gotten worse over the last hour not improved about an hour ago the dow futures were indicated down by

500 points now they're indicated down by 56 o points. the nasdaq off by 171. and this is contagion kicking in as we saw markets off steeply in asia the hang seng was off there. and it's spreading through to europe the debt ceiling in the united states, a couple of weeks away with no real agreement from the two sides on how to move forward. and the idea that senator joe manchin is talking about pushing off a vote for the big spending bill from the administration until next year so a lot of things circling right now and you'll see it playing out in the markets. it's also getting closer to october. september 17th was the date over the last 20 years kramer has been talking about you see a turning point and that could be the case that was friday right now, you'll see the ten year is sitting at 1.329%. so not picking up much there on

the treasuries in terms of crude prices that's one to watch energy prices have been under some pressure. natural gas down by about 2% this morning wti down by about 2.1% part of that may be the reflection of things slowing down in china, that would mean there's not the same appetite for things like commodities, especially energy prices you'll see that play out with the energy stocks, they're part of today's biggest losers occidental down by 3%. and we've seen a big broad selloff in cryptocurrency too. it's been closely linked to the markets for a while. you can see that's the case. bitcoin down 5.3%. lite coin off by 6.5%. >> we need an nft something.

bitcoin got as low as 44, it was down 6% at one point i wanted to check the ten year right away to see if we were at 1.2. i thought there -- >> not much movement there, interesting. >> no. i think if we were really worried this was going to turn into something even worse, you'd see the ten-year rallying. it's been a slow decline we'd say it's not declining, up 200 in the morning and then down 200 by the end of the day. we're down 3% or so from the highs? >> we should put that in perspective, only 3% from the highs. >> if you add the one -- down today less than 2. >> 1.6% for the dow. >> we're going to eunice >> let's talk about what happened in hong kong overnight because that has a large part to play, at least some of the feeling here stocks in hong kong plunging

more than 3% overnight and and eunice joins us with a story that has a lot of people on pins and needles. good morning. >> reporter: good morning. a lot of investors across asia and, of course, hong kong are worried that china's second largest property developer is on the brink of default look at the shares of evergrande they've been trading at an 11-year low because the company has been scrambling to try to raise funds to pay back lenders, in investors, homeowners and staff that lended to the company because the company has debts of almost $300 billion and over the weekend had tried to allay some of the concerns with damage control saying on social media some of the investors in wealth management products would be paid back in real estate and

that process had started it also had told the public that some of its senior executives, who had cashed in a bit and made early redemptions were going to face severe punishment for that. again, an effort to try to allay some of the anger towards the company as it looks to try to get itself out of a difficult position the company has warned we could see some contagion also that it's been facing a lot of difficulty trying to sell off some of its other many assets in different parts of the business, such as the electric vehicle unit, for example. that's one of the reasons why people are looking closely now to some key dates. one is actually today. where the company was supposed to be paying back some interest on bank loans. this is an undisclosed amount with a one-day grace period. today is a holiday in china so

you know authorities have already told the banks if they weren't going to be paid back. and then on thursday, as well as on september 29th. those are other dates in which the company is supposed to pay back interest. and people are wondering whether or not it's going to be able to because it has been having such a difficult situation with the liquidity. >> how much is evergrande specific, how much is the contagion, how much is the broader set of chinese developers which may have levelled themselves beyond levels with the market necessarily understood >> it's really difficult to know because there isn't a whole lot of transparency with a lot of these big companies. there have been a lot of different types of investment so it's not clear we know the government has been concerned about the borrowing and debt within the property

sector that's one of the reasons why recently the government had said it had a couple of red lines that it didn't want the property developers to cross. it wanted a lot of these big property developers to try to scale back some of that borrowing so it wouldn't be such a big problem. the problem, of course, is because there isn't a whole lo of transparency whether or not that's going to tumble into a situation that is out of control. the way that the government operates here, it doesn't like to see things out of control, it wants to make sure there isn't any situation where you have a lot of social instability or problems so, you know, it's -- at this stage, it's very difficult to tell >> fair enough eunice, appreciate it very much. i'm sure we'll be talking to you a lot more today and checking in with you throughout the morning as we try to make sense of it. >> our friend kevin rudd that we have on a lot, his piece today, trying to explain what president

xi's mott evaluation is. we've seen sector to sector reform he thinks it has to do with getting a third term but also saying president xi better think about the long-term effects of what he's doing getting his -- you know, his own interests are at the expense perhaps of the economy which he wants to do well he wants to make china the richest place on earth and it could be a problem i'm not going to say that china is going to call -- i'm not saying it's going to cause a bear market in global markets, becky and andrew. >> you think it's all -- >> if there is a bear market, i can't believe no one thought about it, here would be a symbol for the bear market. >> a specific type of bear you're talking about >> i think you should sell it as an nft. >> how come no one thought about the next bear market could be --

he gets very angry i guess people think he has a -- sort of a resemblance to that great cartoon character and he's sensitive about it, we had issues in the past but if we need a bear market symbol. that may be. >> there's your nft. >> we're looking for what finally causes -- >> how much did you pay for that >> i like that, it's good. >> we've been waiting to see what kind of pokes a hole in the bubble. >> exactly. >> is this where it comes. >> going to let some of the air out of this because we had worry after worry that the market has climbed. maybe this the thing that makes everybody say this is too much and the other concerns we've been ignoring maybe we'll pay attention to them. >> i don't know if we import a real break in the market from china, because we can exist. we've seen in the past, they're not -- >> i don't know if this is going to do it

>> domestically we're strong but we have our own issues maybe because the fed guys are finally getting out of the market. >> maybe they have good timing. >> if they're out of the market they're no longer going to support -- no? >> i don't think that's it. >> lisa will be on later today. >> we'll talk covid numbers, too. deaths are climbing from covid we have scott gottlieb on later to talk about his book but also what we're seeing right now. there are concerns about all of these issues that are bubbling they've been there under the surface. the market has ignored it and been able to look past it. the other issue is what happens with earnings season we have gotten a few signs recently that maybe is issues are starting to effect margins, profit, and that could be the other thing that pushes things over >> right didn't look like there were covid worries over the weekend

in football stadiums. >> no. >> unfortunately just like the markets looking covid -- i don't know i don't know we will see. coming up much more on this morning's global stock sell off and what it could mean for the next fed analysis. right now, check out the selloff in global mining stocks. we'll be right back after this

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welcome back u.s. equity futures are plunging right now, pointing to a steep sell off after three straight weeks of losses. joining us is portfolio manager at dcla and a cnbc contributor what do you crack this up to is it evergrande in china? what are we going to describe this as? >> it's a combination, andrew. people are going to look for past analogies, is this the asian crisis, the beginning of a long-term capital issue? i think the hardest thing here is transparency. we don't know how china is going to handle this my feeling is that china is going to use every piece they can in terms of fiscal or monetary to make sure that this is taken care of but there will be unintended consequences

capital markets as you can see this morning, we can see some effects even in the bond market. i think that's the one thing and you guys were talking about it a couple minutes ago we don't know what the thread will be that will pull the air out. i don't expect it to be huge but down 3, 4% from the peak, could go down another 5 to 10%, it's natural and normal to get pull backs. but i would look at this, a combination of this with earnings coming up and taper, there's a lot of uncertainty, which i have cash on some clients i'm slowly dribbling it in i'm still positive for the outlook for the next 24 to 36 months. >> just to put a fine point on it you're not suggesting this is going to be some kind of grand crisis or that there is going to be meaningful contagion we were talking about whether it was a china problem or a global problem? >> i don't feel so look at where all the

governments are right now. we're talking taper. what does that mean? that means we don't taper. rates stay lower for a longer time i think given the covid situation, all the other things, there's enough of support here, does that push the markets higher probably not probably gets multiple compression in the short term for it, but how long it is is a question of a trade, not an invest >> so to me the interesting note in what you just said in the prior answer was, you know, if i have some clients who have some cash on the sideline i'm going to put some of it to work and maybe put more of it to work if there's a steeper plunge when9:00 rolls around this morning -- >> absolutely. >> -- what would you be doing? and if you're predicting at all that we're actually going to have a greater selloff, why put any money to work this morning if it's going to be worse later? >> so i don't know if we're going to have a greater selloff, that's what i'm saying

timing it is almost impossible because you could easily have china repair this in a day and then all of a sudden things could be fine. so i'm going to look now when the markets pull off to the high quality companies that some might sell off for whatever reason, whether it's consumer stables, consolation brands, coca-cola or industrials if high quality companies like honeywell sell off that's what i'm going to look at and say are there going to be opportunities? if not i'm going to keep to my process and invest if the market pulls back more you have an opportunity to buy more across the board. >> what's your sense of what we'll hear this earning season becky was right we had a phenomenal earning season, up until now everything was great, it also makes comps more difficult. >> if you look at a couple companies, summer fisher announced great projected

earnings, but on the other hand iff said we have huge input costs we're not going to make our margins. so i think you focus on input prices and revenue growth. who increases the earnings inspite of input costs and who has higher demand the next 12 to 24 months because multiples today are peak multiples and we have to sustain those companies and sectors to grow. that's where i think people get penalized or rewarded. there are cheap sectors you look at general motors eight times earnings or cvs ten times earnings there's more margin of safety there, we have a short-term issue they're not going to fall less than some of the stocks trading at 20 times earnings or sales. this will be interesting to see where companies are going to say where we're going to be given higher input prices, given

what's going on in global uncertainty. the other thing to watch for is capital markets. we could get a freeze and those companies that are highly indebted may not be able to go back and refinance, even though rates are so low it could happen that way. >> fair enough sarat good to see you my friend. thank you. >> thank you. coming up a new plan in the house of representatives looks to close loopholes, so was the death of the death tax greatly exaggerated? robert frank reports next. as we head to break, the biggest dow laggards "squawk box" coming right back

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after getting whittled down and weakened for years the estate tax makes a comeback in the latest house plan. robert frank joins us with more. good morning >> good morning, joe fewer than 2,000 people actually paid estate taxes in 2020, only raised about $16 billion in revenue. that's down 50% from a year ago. the main reason is the exemption, which is now $11.7 million per person that means estates worth less than that go untaxed but it's because the estate planning industry has found and created massive loopholes. the house now aiming to close those. the house plan would cut the exemption to $6 million, also ends what are called grantor

trusts, these are the secret sauce for estate planners allowing people to create trusts that they own and control but separate for tax purposes. the house plan would force new trusts to be part of the estate. for investors the most important change is the so-called discount planning this allows investors to place a f portfolio of stocks they can gift out to pieces at family members and each piece gets discounted by up to a third because it's a non-controlling stake. the irs has tried for years to challenge this, the house plan would ban it saying this would all together raise an additional $65 billion over the first four years. >> i was listening closely the second-to-die whole life

insurance, that's not affected here that's not something that -- that seems like you're sort of making an investment, long-term, that just builds up a certain cash balance to help pay for estate taxes so that's not a loophole, per se that's just preparation, is it not? >> right but there are changes in this, and they're far too complicated to get into, but they are changes in the house plan to the whole life insurance application to estate planning remember, this is all sort of inlieu of the president's plan, the president wanted to get rid of the step up in bases in tax appreciated gains upon death, the house did not include that so because of that, and for revenue and progressive politics reasons it had to include something so the president didn't really touch the estate tax. the house then had to beef it up that's why the insurance loophole, all of these trusts that have been sort of a key

part of estate planning for years are now sort of under pressure we'll see where the senate comes out and whether any of this happens. >> you think the senate parliamentarian made the decision about, in this case it had to do with immigration, do you think that has democrats maybe raise an eyebrow that she's going to watch some other things that we try to slip in here and they might not pass muster as well or do you think this is the only thing that she would challenge? i don't know how to handicap it. are you hearing scuttlebutt about that, robert >> no. that's aquestion for elon and our washington folks what's interesting about the tax plan is the president's plan, the house plan, there are bigens differences there, not just in the corporate tax but the capital gains and the estate tax. but on the senate side we haven't heard from the senate. in addition to what joe manchin is rumored to be saying now, put

it off till next year, a lot in the air right now. >> for those out there who have constructed trusts like the ones you've described, does this undo them or does this prevent new ones from being created like that >> asking for a friend, right. >> yeah. >> no, it basically -- >> can't laugh that's a question that everybody who even knows what you're even talking about is asking. >> busted. busted. >> 100% andrew this is important. you have until the end of the year to create the trusts. after that it's the new trusts effected one thing everyone should do right now before the end of the year to get ahead of whatever happens with the estate tax and that's to maximize your gift tax exemptions right now you can give away up to $11.7 million to friends and family until the end of the year if this changes. so what everyone is telling

smart clients is give the maximum. give up to $11.7 million, if you're lucky enough to have that kind of money, by tend of the year. >> now the conversation has moved beyond, unfortunately. >> i'm going to do that today. with that 11.7 i'm going to call my guy right now. >> andrew? i'll be giving you guys all checks >> right i have a second, i'm not doing loopholes i'm doing like normal stuff. >> it's like when we talk to gottlieb let me ask you my question -- >> second to die, that's ask report, it's preparing, right? it's not fenagling >> i know. i originally thought that robert burst out laughing because i couldn't see, but now i understand what's happening here >> anyway, when we come back, sorry i didn't know my mic was

on when we come back, more on this morning's global market selloff, the future under extreme pressure not the worst levels we've seen but the dow is still down by over 500 points this morning on concerns out of evergrande in china. we'll talk about that in just a little bit the s&p down by 56 elon musk taking a jab at president biden after this weekd's sticenhior space mission. we'll have more on that next we'll be right back opinio hey lily, i need a new wireless plan for my business, but all my employees need something differen. okay, imagine this... your mover, rob, he's on the scene and needs a plan with a mobile hotspot. we cut to downtown, your sales rep lisa has to send some files, like asap! so basically i can pick the right plan for each employee... yeah i should've just led with that...

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. good morning welcome back to "squawk box. check -- take a look at the futures right now. we are in the red. we're in the red a lot today this morning the dow off about 520 points nasdaq off about 153 points s&p 500 off about 58 points. all of this coming as a lot of speculation about what's happening in china overnight with evergrande over the weekend.

we'll talk about that in just a little bit look at the meme stocks as well this morning, amc down about 6%. game stop off about 3.5% robinhood off about 4% and more. spacex completing a historic private space flight on saturday it was very cool to watch if you had an opportunity to see this come down. the crew dragon spacecraft splashed down off the coast of cape canaveral, florida. it was the first entirely civilian crew to become astronauts elon musk making news on twitter when asked why president biden didn't acknowledge the newest american astronauts he replied, quote, he's still sleeping that echo's former president trump's insult of president biden who often calls him sleepy joe. i have to say for a guy that basically gets a lot of tax

subsidies from the u.s. government, these little jabs and critiques, i know they're supposed to be funny but they're kind of mean spirited, don't you think? >> his twitter, you don't want him to change it, do you >> it's fun for us to talk about. if that's what you're saying i'm just saying, look, the tesla business, built on the back of the taxpayers in many ways -- >> what does that have to do with calling biden sleepy joe? >> i don't know. i don't love the idea of critiquing the political class -- >> if he said something about trump you would report on it every block. >> i would not plus i assume he has to try to get more stuff from the u.s. government, too. >> the u.s. government is not -- you know, joe biden is there now, but i don't think i would just look at him as the u.s. government. >> guys, to put it in context. elon is upset and he's been

vocal about it because the new tax plan has big subsidies that go for electric vehicle sales but only in union shops, that's not going to include tesla and toyota they've both been vocal about that. >> much more on the market sell off this morning as investors gear up for fed week look at crypto this morning, that falling as well bitcoin off about 6% looking atos lses across the board, we're back after this they suggest that we marry our fortunes with...the capulets. blasphemy! fear not. these advisors managed one of the largest mergers in history, creating billions in value. billions? plus, they have experts in global trade. this merger shall be a boon for our spice business. and set a course for growth. here, here! friars, send word at once. yes, m'lord.

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welcome back, everybody. investors are going to pay close attention to the fed's policy meeting this week. our next guest said the feds will send a strong signal that tapering will begin this year but she's not expecting a rate hike until the second half of 2023 joining us right now in julia coronado julia, let's put this into context of what we're seeing today with the dow indicated down more than 500 points this morning because of concerns about this property company in china and the potential financial implications of that, obviously it's big news in asia but there are u.s. companies that have risk exposure here too. i guess if you put all of that

together what does that mean the data we got last week was good but then you look at a financial contagion and that's a different ball game. >> absolutely. if we got persistent disrupgs to global financial markets coming out of china that would be a big deal and, of course, the fed is going to retain some optionalty. so we'll expect what the fed has referred to as advanced notice which is an advance in the statement that the tapering is going to begin this year but if the global economy looks shaky, that would be a reason to push back of course, you know, because we don't expect the actual tapering announcement until november. so that gives the fed plenty of time to evaluate the global situation, both the chinese situation with regard to the leveraging that it's going through now, but also the delta variant and the sort of havoc it's wreaking on global supply chains and global economic momentum as well, which is very

important. >> it's hard to imagine that a chinese property company could really cause ripples that would impact our markets, too. but evergrande owes $300 billion and the chinese government is saying they won't step in to help out, not wanting to encourage risk taking like this in the private sector. so how do you kind of think through this and how big of an issue do you think it could be for us >> i think it's a symptom of a broader issue as you suggest china has been implementing a lot of structural reforms and the bottom line from that seems to be, for the global economy, that china is not going to play the role is played last cycle, which is the engine of global demand china was the leading indicator of ebbs and flows in the global demand throughout the last cycle and they would, when the economy

wobbled it would step in and stimulate and we sort of rode those waves of stimulus one after the other up and down. that's not going to be the case going forward. china is going to settle in to a lower rate of growth so the global growth dynamic is going to be much more balanced and at a much lower level on an ongoing basis. so we've been kind of riding a huge wave of u.s.-driven stimulus the whole global economy has that also fading and we don't know exactly what the dynamics are of that, how much will consumers hold onto their savings, how much will they spend so we're at an unusual, highly disrupted, very uncertain inflection point in the u.s. global economy while things have been going really well on balance, sort of from a macro perspective in the u.s., there's still a tremendous

amount of disruption from the pandemic and from shifting global relationships and supply chains and so this is all of the forces that the fed has to sort through. and it's not a simple picture. so whatever they decide or signal, there's going to have to be some flexibility and some ability to sort of steer the ship as things --as these dynamics evolve. >> what does the fed have in its tool box at this point we've done so much, the balance sheet is so big at this point, we haven't reined it in while the markets were flying, the economy was flying, we were looking at global growth pictures if it turns out this is a bigger deal, a signal china is not growing as quickly, not adding as much to the world economy, what can the fed do? >> some of it is structural, the fed doesn't need to address. that's one of the reasons, for

example, we've continued to see low interest rates around the world, a recognition by investors that the medium term, you look through the current stimulus impulse and the medium term outlook for the global economy is slower growth on a structural basis, a demographic b basis, et cetera that's not something the fed needs to correct the lever of continuing qe or tapering more slowly, that's not nothing. that's a pretty powerful -- they're still injecting a tremendous amount into the global capital markets every week, every month. so that serves as a decent insurance policy again, depending on how deep this goes. >> julia, i hate to cut you off, this is a conversation we'll continue but we have breaking news >> my pleasure. >> it's just out, as becky noted

from pfizer and meg torrell joins us >> pfizer reporting the first results for its vaccine for kids 5 to 11, reporting that it saw that immune responses in kids 5 to 11 are robust in terms of the antibody levels and comparable to those of people 16 to 25 in previous studies also said the vaccine appeared to be well tolerated with side effects they saw in that age group. they plan to file for emergency use authorization in kids 5 to 11, quote, as soon as possible this was a study that included about 2,270 kids and tested a dose one third the amount that people over the age of 12 get. it's 10 micrograms given three weeks apart, two dozes of that, a third of the adult dose. these are results that parents have been waiting for. they anticipate getting results in younger children sometime beto o'rourke before the end of

the year, perhaps in about a month. as for now, the first results for kids down to age 5, looking similar to what we've seen in older people in terms of the immune response, looking pretty good. guys >> meg, what happens next? we know the timeline is this maybe three weeks it will take the fda? are we still thinking halloween is when kids might actually get vaccinated what does that mean in terms of logistics how the new viles will be rolled out and where? >> there are a few things that have to happen before we get the vaccine out and available to folks. first, pfizer has to file with regulators it's preparing to do that. we don't know how long that will take it could happen early october. then the question is how long will it take regulators to review it, dr. scott gottlieb suggested it might take four to six weeks.

we have seen reports citing it could be shorter, three weeks. we know it's urgent right now for kids because the case numbers we are seeing is higher than ever in terms of the proportion they're making up in terms of the pandemic about 26% of overall cases in early september were kids. that compares to about 16% we've seen the entire pandemic hospitalizations are also at record so there is an urgent situation here but it will be a few weeks. we have to see pfizer file and then how long the fda takes to review. >> it's interesting the dosage, the way it works we know about baby aspirin and things like that i always think that's weight related, size related. they've got great immune systems we're envious, the older you get, you get the same response with a lower dose. i guess when you can do it, if you can use less it's better

this was pfizer because moderna is already higher than pfizer for adults, right? so i wonder how you would dose moderna for kids >> yeah, we're going to have to see that, what moderna ends up doing. they do have for adults three times the dose, 100 micrograms. >> seems to work better longer moderna, there's some data -- >> in adults, yes. there is some emerging data suggesting that. it's not clear if it's a higher dose or extra week spacing between the doses. pfizer tested one third the dose for kids down to five and one tenth the dose for younger kids and you're seeing the immune responses that are comparable to what people 16 to 25 are getting for the dose. >> in terms of timing for other vaccine makers including moderna and j&j for kids, what are you expecting in terms of timeline

>> we know they're in the trials moderna has not put quite as concrete timelines on things as we heard from pfizer we're expecting to see it in the coming months. they're waiting for the fda to act on their application down to age 12 because the pfizer kids e 12 authorizing another vaccine for that age group moderna is not far behind. these will start rolling out pfizer in the lead with its results. >> what if i want to be a good citizen and help myself with a booster, which i'm in line to get. i had moderna. what am i supposed to do >> right now, the booster is only authorized for people who got pfizer we'll see how this plays out this week for whom the fda clears it.

on wednesday and thursday this week, cdc advisors will actually make those clinical recommendations. as of right now, we haven't seen those get evaluated. most likely, those will be just for pfizer folks >> you may not need it >> you are breakthrough cases. we don't know if most of the older people in the country used pfizer just on that question, i was kind of stunned to see the vote, 18-3 voting down the idea of anybody over 65 can get it the new way the question was asked and the panel did sign off on was anybody aged 65 and up. what if people who live with people who are immuno compromised or live with children that are high risk?

it seems like there are pretty gaping holes i know people just went in and said they are immuno compromised to get around it >> we'll haveto see what happens with that. you are right. i think that vote was something like 16-2 against recommending or authorizing the dose for anyone over the age of 16. they narrowed it for people 65 and plus or immuno compromised and those at higher exposure risk like health care workers. we have to see who is authorizeds and who the cdc recommends to get it we may see a fairly narrow recommendation for the boosters right now. >> how are the numbers right now? i can count more people than i have fingers who i know have had

breakthrough cases and were fully vaccinated it seems like a much bigger problem than people acknowledge or let on. >> there is a lot of frustration about the data and how many breakthrough cases we are seeing not so much on any breakthrough case they have said if you get a breakthrough case, you could still be contagious. >> right and you bring it home to kids who aren't vaccinated. if you get a breakthrough case, we don't know how many there are, you can bring it home and we are still going to set the guidelines who can get the third shot to try and prevent those breakthrough cases >> there was a big debate over what we are trying to accomplish

with the boosters. if we are frying to prevent transmission, boosters might be warranted. but if we are only trying to keep hospitals from getting filled up. >> we are talking about 45 million people in this country who aren't authorized to get vaccinated >> yeah. but the news this morning suggests we are getting closer to getting vaccinated for kids >> in the meantime, cases in my son's school continue to climb >> yeah. it is a bad situation for kids right now. just looking at the way these cases have risen in the last few weeks is staggering. kids under 11, highest level ever, covid hospitalizations it is a dangerous time for

children right now >> i know it is something you track closely. thank you. when we come back, dr. scott gottlieb will join us more on the pfizer news at 8:00 a.m. he's a pfizer board member and former fda commissioner. the futures are down in a big way. dow futures are down fair value. s&p 500 down about 60 points nasdaq down about 158. you are still talking about the averages right now, only about 3% from all-time highs let's look at some of the worst performing stocks in free trading right now. you'll see some of the oil companies are the worst performers as oil is showing a big pull back too. you are watching "squawk box." and this is cnbc

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markets in a sea of red. dow futures down adding to global fears a potential leeman brother's moment as a leading property deve developer teeters on bankruptcy. pfizer releasing data on its covid shot for children 5 to 11. taxes, the economy and the come back of new york city. the second hour of "squawk box" begins right now good morning welcome back to "squawk box" here

take a look at u.s. equity few you ares this hour we are in the red pretty much across the board triple digits nasdaq off 158 points. a lot of this because of what is happening in china we'll look at the hang seng. and looking at evergrande. what it means. that stock off now over 10%. >> new developments over the weekend in the ongoing story of disclosures. steve is with us with more on that front >> the nonprofit group better

market sending a letter to jay powell calling for wide ranging investigation of practices saying it may not only be unethical but i will legal throughout the year during the ongoing response to the pandemic only barred from trading during the blackout period, which is 10 days before the meeting to midnight cnbc has reported, at least three fed officials own the same type of assets the fed was purchasing dallas fed chair made multiple trades throughout year and fed officials say their trades and hol holdings did not violate ethics rules. they announced they'll sell

their assets and stop trading. >> they, quote, directed board staff to take a fresh look at holdings and activities by senior fed officials >> meanwhile, saying powell actually owned bonds in a joint account which he had control fed officials originally traded in which he held the bonds in a family trust they were not found to be in conflict the fed last year bought more than $6 million. k saying the bonds are grossly deficient. >> how quickly do you think we'll see additional steps or

disclosures? >> no time line i've been able to hear. we may get a chance to ask fed chair powell about that. it sounded like he wanted to do a comprehensive review this idea that in a year of a panic, there is no proper blackout period. they got caught with the fact that they weren't buying or selling, they were just holding them there is a lot to figure out for the federal reserve and interesting that congress may not be the one toover see these. >> a lot of this started in hong

kong mainland china, korea and japan closed for the holiday the property developer crumbling under the weight of debt and repeatedly warned it could default. eunice >> hi, hi, joe so evergrande is only slightly more leveraged other developers have been more reliant on presales and longer term borrowing it hasn't been as big a problem. as we see these concerns, those could become a bigger risk that's really a question that

people have. in terms of what happened over the weekend, we saw that evergrande was really trying to message that it is doing its best to raise money and pay back investors it has said it already started the process to pay back some of these investors with real estate. people who lended money to and bought their products. they've also said some of its managers have cashed out of some of these early the big test at this point is whether or not it is going to be to meet some of the interest on

bank loans some of those on chinese banks that have come now we'll see if they meet the one-day grace period on thursday, as well as on september 29 those are two important dates whether or not evergrande will be able to manage through this situation. >> thank you probably see you again this morning. coming up, much more on this morning's market selloff the futures are still down in excess of 500 points on the dow. big losses across the board on the s&p. after the last three weeks, we are paying attention shares of chinese stocks are under pressure we'll be back with more.

let's talk about this morning's selloff of evergrande. joining us, the author of the book, the awful failure of common sense good to see you.

we'll get in the weeds here. you need to do that to try to anticipate or at least get clues. try to explain so everybody can understand what you are talking about. seeing this as major underpinning of problems why not? >> if you are david tepper or a friend of yours sees risk coming, the first thing you are going to do is make bets that will protect you from a down

fall so far, we are seeing some of those hedges. before leeman, the bets were substantially greater than they are now. >> talking about credit default swaps and the volatility of the chinese currency go into the things you are talking about and why it matters. >> talking about that the u.s. was the global risk epicenter 2006, 2007 people buying default protection, they were dra malticily underperforming the asian banks. in 2015, it was the other way around where china was devaluing

the currency the banks with the most exposure are dramatically underperforming. if you look at those today, i don't see a lot of transactions in hsbc, the big banks that have skpoers we are seeing today and last week people are making bets in the for exchange market against the yuan >> you are talking about the volatility a little bit of something you

would have seen in the last week but nothing causing great alarm a this point >> yes nothing significant but the bloomberg commodity index made multiple newhighs. the commodities, the biggest thing i see is riotinto. that stock is 30% off the highs. don't get me wrong, there is definitely some trends of risk out there. more so in the equity space. if there is a problem in china,

the bloomberg should be off there's a separate issue of other developers who might look like evergrande. >> the high-yield market in particular the average high-yielders in china is 8 to 12%. there is like a startling 10 to 12 basis points to u.s. high yield to china high yield. we haven't done the work yet to

dig in on some of the specific names that we do. the day doesn't go by when we wonder about the flooding of the market by the fed. do you have comments with what that looks like right now? >> we are on a chat with the countries and the one thing we are seeing around the world is the debt ceiling is a big deal in terms of the debt ceiling and

the fiscal cliff colliding at the same time. we've done back-to-back $3 trillion deficits back-to-back even if you are a conservative republican, it is common sense you can't go $3 trillion to $1 what they want is not really realistic. that is just extremely shocking to the system. you guys know this well because you cover washington you'll get a ton, the next three weeks, there will be five or six games of chicken on the hill

that will shock more than anything >> in terms of crypto in general. i've heard it called a ponzi scheme he owns it about he thinks it can be put out of business if it gets too big and it has no intrinsic value. >> raies view is that he has an opportunity to go up but at a certain point, if it goes up too much that's a problem >> the blockchain infa structure

and to the banks is a threat that's why you see the diamonds in the world putting it down i find it shocking there were two groups lobbying that weekend. that weekend where toomey was one of the senators on the hill was getting calls through the weekend from both sides from the traditional banks that were the huge threat and the nuvo rich that have formed a powerful lobby group. the new billionaires

this crypto dynamic in terms of its longevity is just here to stay there is too much new money that have come in that will threaten the banks. >> if the news this weekend, senator manchin saying to a group saying he'd rather hold off until next year to vote on this big spending bill if that happens, what does that mean for the markets >> that's a huge point i think they are going to publicly poster that way for at least three weeks. they will juftd posture.

posture. posture. they'll hold back. the bonds, the yield curve has been flattening. fives, 30s, threes, 30s. the-year-old curve has been telling us, there is a threat. a lot of people are getting shocked by this pots turing. he will play ball and you'll see a deal by i think year end >> i expect to hear from tepper, larry. sam is an all-star we've got this guy supposedly god's gift to the jets

tepper is like midas >> he's like the greatest risk manager of all time. >> how did he manage the panthers and pull that off >> that's a teal transaction >> thank you, larry. i couldn't help think of that. could you believe that, carolina 2-0. same guy what does your husband think pulling his hair out >> you get used to it as jet's fans up next, news on the vaccine front from pfizer. later, dr. scott gottlieb will be our guest american express leading the way lower for the dow. down 2.9%.

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some breaking news on the

vaccine front within the last half hour. this is some news a lot of people have been eagerly awaiting >> it is true. we are getting the first results for a vaccine in children ages 5 to 11. they say the vaccine was well-tolerated,side effects similar to the older age group starting the submission by the end of this month. kweel see how long it takes the fda to review this this is not the same dose as a dugss. it is a third. 10 micrograms given three weeks apart. we have not seen the efficacy in number of cases but looking to

the antibodies with the higher dose talking halloween and the length of review down to age five >> even thoughs this the same vaccine given to adults, because of the smaller doses, it does need to be putting into new viles. what is the plan, will kids get this at doctor's office or walgreens, cvs >> they will have new packaging

because of the different dose. you'll see this in pediatrician offices and at the pharmacies. we haven't heard the plan of how to get kids down to age 5 vaccinated this is flu season as well we are concerned about having a larger flu season. when you get your flu shot, you should also consider getting your covid shot. >> a lot of business leaders that are thinking about the return to work and bringing people back, i think if you talk to them. a lot of that is predicated on the idea of getting children vaccinated does this timeline make sense for you for the january return or does this push off even

further or does this get up as more people come back to work november and december. >> a lot of parents have an extra layer of concern because we have kids at home not vaccinated and we could bring it home for them. that could change the game for folks. for me, feeling more comfortable to go back out whether changing the game and being worried, that is something that needs to be considered as well we'll have to see, we'll have to see how many kids get vaccinated and the timing with the younger kids, those might be even a month behind for younger children i should note as i was talking

flu shots, people recommend you get them before halloween. >> we've already seen h hez i tensy. >> this is a really big debate and important question there has been a disappointment for the level of up cake for kids down to age 12. it has gone slower than hoped. siege so many kids get sick, they are eligible to get vaccinated we have done polling to look at how many parents between ages 5

to 11 would get kids vaccinated. it is pretty similar for kids over the age of 12 it is about half it may not be this massive up take but it changes the call cue luis on a certainly level. >> just on that point, this is where the messaging from the authorities gets confusing if your kids are 12 and up, you get them vaccinated right away mess messaging matters. and maybe not every family feels the need to vaccinate their kids the messaging and the way

they've dropped this one size fits all concerning. a big 11-year-old who maybe weighs 95 pounds is getting the same dose as an 11-year-old who waez 35 poinds there's not a lot of room for doctors to say this is what my patient needs. >> there's not a lot of conversation where things change between 4 years and 11 months and 5 yieshz hold. there is a lot of trust operation and this feels so slow but it is actually faster than we have ever seen before keeping those safe guards to ensure they don't cut corners.

this is going very fas fast. it is incredibly frustrating to live through and bait for it in the next hour, dr. scott gottlieb will join us to talk about this news and his new book that is out this week. coming up, new york mayoral candidate eric adams joins us after the break. let's say things are looking good futures have begun frmt the -- the nasdaq has pulled back as well frmt we'll be right back.

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of takes us back to the early morning august lows. looks like we are right around there at the open. if you remember on friday, closing at its 50-day average. very consistently weak over the last 20 years or so. it takes us back a little over a month to levels first reached back in july we are having a little spill back here. take a look at the s&p 500 versus the equal weighted russell 2000 it shows you that the rally into the highs early this month was very much captured here is the s&p 500 in the white, that will increase in early october, september frmt equal weights before this story.

that growth stock now has been contributed a lot. even before today, the rest of the world struggling it wasn't just calla frmt this is emerging markets without china. it shows you the s&p 500 with this build lead this summer. narrowing. doesn't mean we have to have this big conversion. last september the last decline also preceded by a period when the megacap growth was changed with everything else clearly, a little more give back we are on alert and a change in the tone a bit we are still not at a 5% pull

back, guys >> we are not. thank you. becky, if you were david tepper, you really rarely want to say anything right? >> he's been right with a lot of his calls. >> i asked him and said, i'm surprised you are right about the s&p 500 >> sam had a good game yesterday. probably will be better than the s&p today. that's it. a little smily face with a little kiss heart. i said, you've got about 30 seconds. he's not going to add anything you've got to be careful if you

are david tepper >> people listen too if he's making moves right now, he probably wouldn't want to talk about it. >> on days like this, something good is one thing. something bad is another thing i'd still be thinking about the pan at 2-0 >> also thinking about david who calmly said, we are down 10% people have gotten complacent, i think. we haven't seen a pull back in a long time. this might be the extent of it. >> don't dot math on 10 to 15% >> rights that only about 1.6% >> exactly >> i'll keep watching.

>> we'll hear immediately. when we come back, new york mayoral candidate eric adams will join us and dr. scott gottlieb will join us to talk about the kids 5 to 12 and what happened and the vote about booster shots from the vdd nucor is down. cleveland-cliffs down as well. this coming with concerns out of china. we've soon pressure on energild stocks w still around a vision for tomorrow.

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he. welcome back to "squawk box" this morning, new york city democratic mayoral nominee eric adams is on a mission. last week at salt conference, he said, new york will no longer be anti-business. working to fill openings and joining us now on the nasdaq

terrace. i can't call you mr. mayor yet but it looks like you are on track. let's talk about the reset of the city and business. the relationship with this city and the current mayor has been politely challenged. >> we are the only country on the globe that we have dream attached to our name you don't have a french dream. we have an american dream. we've lost that along the way. i have been spending the last few years, if i'm fortunate enough to become mayor, i'm going to press the reset

>> we've heard a lot about businesses and people leaving the city how do you bring those people back is. >> everyone talks about the number of people leaving but they don't look at the sub text. i have actually talked to the people who are leaving they say the same thing, my city is not safe. i'm paying my taxes but receiving a dysfunctional product. public safety and justice. we can have them both together my city is going to be safe to be here. >> talking about how you balance safety, justice and all of these things at the same time trying to balance and bring business back >> we often go to one extreme or another. either we tell our police officers fall back or you go

heavy handed no just as i'm doing reset with my businesses, i'm resetting my police this is a new dad. the bad guys are watching the good guys squable. i tell them policing is a noble profession if you can't be noble, you don't need to be in the department >> how much has changed in the incentive and structure of policing >> great question. we have to look at the eco system we drop everything on the police officer. i say no to that let's bring in mentor health professionals and crisis team. we have to watch what we are

doing at the state level and federal reform we had robbery on the list and we went back and am in-- examin that you can't keep a city becky in t a moment but i have a tax question aoc, who also represents new york to some degree, or more than to some degree, she's an elected official, wore a dress last week that said "tax the rich." do you subscribe to that policy? >> what we must do, and i'm a big believer, i think aoc and i believe i, we both want the same things, we just have different pathways to get there. her mother was a domestic worker or did things in that level. so was my mother but when you talk about just blanketly say tax the rich, in this city we may have 8.8 million people, but 65,000 pay

51% of our income taxes. if you say to those 65,000 to leave, then we're not going to have the firefighter, the teacher, all of those basic things no let's find a way to use the tax dollars, we're wasting tax dollars, we're dysfunctional as a city we create a crisis those tax dollars are being wasted i say let's get our house in in order through our agencies and then talk about how much money we need to run this city we have a $98 billion budget think about that for a moment. how much of that are we hemorrhaging i say, no, let's do a proper analysis and make a decision based on what's in front of us. >> hey, eric, thanks for being with us today. back to some of the problems with crime in the city when i talk to new york city police officers they tell me part of the big problem has been the criminal reform laws that

were passed by the state it was really frustrating, you arrest someone and they're back on the streets a day or two later. it's demoralizing. those are things done at the state level. what can you do to work within the bounds of that >> it's a combination of that. number one, some of the bail reform laws were wrong but there's something else that's happening that a lot of people are not recognizing our judges are not giving bail on cases that they actually can give bail on they're also not looking at kendra's law this is a law that allows the judge to really compel someone to take medication that's the public health crisis we're seeing on our public transportation system and on the streets. third, i never want to reach a day that my police officers are going to say because of what happens in albany, they're not going to protect our public. i've been frustrated as a police officer in what i witnessed at albany on a federal level.

when i put on the uniform, the public comes first and we must always have that mindset >> joe >> thanks, aaron mr. mayor nominee, i'm trying to figure that out too. what about -- i don't know, does anyone call you captain any more mr. mayoral nominee adams, i want to ask you about how we approach the schools, the public schools, the charter schools, the private schools. i know you've seen the progress that harlem children zone has made i'm not sure that the current administration, i guess, i'm trying to hurry things up. but i don't think that charter schools really felt like they had their day in the sun for a while now. how will you approach the whole issue? it's so importantly, obviously, to our kids in new york city >> well, you know, think about it for a moment.

when you started out, you were on the right road. you started mentioning the different types of schools i am not engaged in a dialogue between charter schools, public schools, parochial schools i don't listen to that i engage in a dialogue of children 65% of black and brown children don't meet proficiency in the department of education. 40% don't meet proficiency in charter schools. they're both failing my children our school system is dysfunctional, and we have to stop acting like it is not we have to sometimes call a thing a thing and be honest about the basic essentials so i'm going to embrace scaling up excellence. i'm going to look at my charter schools and see some of the good products that they're doing. i'm going to look at my district schools, like bethany academy. we're going to start scaling up excellence and not get into this adult dialogue of the name or the type of schools. who is doing a good job educating our children if you don't educate, you're going to incarcerate

that's why 80% of the men and women at rikers island don't have a high school diploma or equivalency diploma. >> eric, what are you thinking right now about public transportation i'm thinking about the mta, subways, getting people to work every day, back and forth. what you can do, what the city can do relative to what the state can do. >> well, my relationship in albany is so important right now. i'm a former state senator i chaired various committees in albany when you look at it, if we don't get people back into the subway system, our economy is not going to turn around why aren't they getting there? you talk to the average employee, they're saying we're afraid we have to deploy our police better i don't know when the last time you've been on the subway. i don't want to see five police officers hanging around the token booth like they're afraid. you've got to get on the trains. i was a transit cop, i rode the trains by myself without radios

that operated. so it's about making sure the system is safe so that people can get back in the system safety is not only actual, it's perceived. get the homelessness out get them the services they deserve and let's have the safe, affordable, reliable transportation system. >> one of the things i know you're thinking a lot about is trying to match up people who don't have jobs right now with jobs and also reskilling what do you think needs to happen in this city specifically >> you know, we have a 10.2 unemployment rate. double the national average. nationally i think 90% of the jobs returned. here we only have about 49% of the jobs return pre-covid. the real problem is those who are seeking jobs are not connected to those looking for employees. we should have a central platform, one application for any job seeker in the city, matched to a central database of all the jobs that are available then we can match them up and at

the same time see where we have the skills issues. we don't have an employment issue in the city, we have a skill issue and we have to scale up the skills. >> eric adams, we appreciate you being with us. >> thank you. >> we look forward and hope you'll be back here and we'll be talking about business in the city. >> i like squawking. >> we appreciate it. we love you squawking. thank you. coming up when we return, a lot more on "squawk. dr. scott gottlieb will join us to talk about the latest news from pfizer just out this morning and we'll chat about his new book that's out tomorrow. plus we'll talk markets as futures point to steep loss isorngt e open stay tuned, "squawk" returns after this

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truly absorb the natural goodness. new chapter. wellness, well done. u.s. stock futures getting hit hard this morning. fears of a default of chinese property giant everbrand spooking investors worldwide. also good news today, pfizer out with positive results from tests of its vaccine from 5 to 11-year-olds former fda commissioner dr. scott gottlieb joins us in moments to tell us what this means. and could financial transactions by senior fed officials during the pandemic have been illegal? one group is calling for more accountability we will bring you all the details. the final hour of "squawk box" begins right now.

good morning and welcome to "squawk box" here on cnbc. i'm joe kerner and becky quick andrew somewhere between the roof and here. he'll be back. u.s. futures at this hour are not headed up towards the roof, they're headed towards the basement, at least this morning down 640 points. of course on a percentage basis, not nearly as -- not even 2% losses we did see in europe and asia some even more significant losses what's happening is trouble at everbrand. the chinese company spooking world's markets. it's the world's most indebted property developer fears of a default have been growing as the company warned investors that it might not be able to pay those debts. today hong kong's hang sang index fell 3%. markets in china, japan and south korea were closed for the

holidays u.s. treasury yields at this point not signaling too much angst. you're not seeing yields fall necessarily that much, 1.23% allianz advisor mohamedelian will join us later this morning. first, a call for more accountability at the fed. it's a story steve liesman discussed last week for us and you got even more famous last week with some of your reporting, steve. >> joe, thank you. good morning the nonprofit group better markets sending a letter late yesterday to fed chair jay powell calling for a wide-ranging investigation of fed trading practices. ceo dennis keller said trading by fed officials during the pandemic may not only be unethical, it may well be illegal. he said fed officials were privy to nonpublic information throughout the year during the

ongoing response of the fed to the pandemic fed officials only barred from trading during the so-called blackout period, which is ten days before the meeting up to midnight of the last day of the meeting. as cnbc has reported, at least three fed officials, powell, rosengren, barkin and kaplan own the same assets the fed was purchasing robert kaplan made multiple multi-million trades of u.s. stocks throughout the year, rosengren 37 trades. the fed buying $40 billion a month in mbs fed officials say their trades and holdings did not violate ethics rules but both rosengren and kaplan said they will stop trading. chair powell directed board staff to take a fresh and comprehensive look around the ethics rules around permissible financial holdings and activities by senior fed

officials. meanwhile federal reserve officials late friday said powell actually owned individual municipal bonds in a joint account over which he did have control. officials had originally told cnbc that he owned them in a family trust over which he had no control they said the holdings were reviewed by ethics officers and not found to be in contradict. he held between $1.25 and $2.5 million in muni bonds while the fed bought $6 million in municipal bonds. they said the overall disclosure process and the code of conduct are, quote, grossly deficient. becky, how deficient are they? we read them and you couldn't tell where the ownership of those muni bonds was a federal reserve ethics officer looked at them and also could not tell where the ownership was of those municipal bonds. >> not a good look to say the very least, steve. >> no. >> as the fed was buying all of these muni bonds and individual

stocks definitely not keeping up with the changes in the policy around there. >> i think that's right but there is a legitimate question he also raised he's in a tough spot if he sells them too, right? here's the fed taking an action. >> right before they start tapering. >> he sells them -- right, either while they're tapering or not. now that they're going to be tapering, if rosengren sells the mbs which he says he'll do by september 30th it seems like maybe what they should have done is sold it before they started buying it or announced they were going to buy it or otherwise been in much more generic type assets like index funds or something that would be harder to call into question as a conflict. >> i think the index funds will probably be moved by these policies as well it's hard to find anything that's not going to be impacted by the fed's decisions.

>> i think that's right, but i think that as you get into broader and broader markets, you know, look, we'd be sitting here saying he bought and sold an s&p index fund no the conflict itself for guys like powell and barkin, it would seem to be coincoincidental. i don't think they bought the munis in anticipation that the fed would be but it seems like after the fed changed the monetary policy, i think you made this point, becky, they needed to then change their code of interest and conflict policy. >> most muni bonds have call features so the principal -- it's not going to go up, but you would be able to not worry about principal risk on the downside that maybe you could sell -- i don't think anybody buys when you're thinking about a capital gain from buying your municipal bonds, you're just getting tax-free income. that's a whole different area about whether you should get tax-free income. >> and joe, you make -- >> but if you're worried about

buying, steve, at 1.5, 2%, 3% munis, because they were typically 6%, 7%, 8% for some time if you know you're going to keep buying munis, that does take that risk off the table, although i don't think you're buying them for capital gain or to trade them so much. >> no. and here's the thing, joe. powell and rosengren, maybe they're our age or a little older, they're in a similar situation where like everybody else they're looking for yield so going into mbs for a guy of rosengren's age is not a crazy thing. powell holding muni bonds is not a crazy thing. it's just so happens they're at the federal reserve, which is buying mbs. >> all right, steve, thank you we'll talk to steve a little later. in the meantime some encouraging news about the tests of the coronavirus vaccine in

children meg terrell joins us with more on the highlights on that. meg, good morning. >> this is the pfizer/biontech vaccine showing a strong immune response in kids 5 to 11 with one-third of the dose given to older people 12 and up they also said it was safe and well tolerated the side effects similar to what people 16 to 25 tend to experience pfizer telling us this morning they plan to start the application to the fda for emergency use authorization by the end of this month. pfizer's ceo in a tweet this morning said considering the rise of pediatric cases in covid and the substantial threat the delta variant poses to children, we're glad to share this news with the world they flplan to submit their dat for peer review. pediatric cases of covid have been on the rise, accounting for about 30% of all cases reported in the first week of september so the urgency here is growing

becky. >> meg, thank you very much. joining us right now for more on this is dr. scott gottlieb he's the former fda commissioner and a cnbc contributor who also serves on the boards not only of pfizer but also illumina he's got a new book out called "uncontrolled spread, why covid-19 crushed us and how we can defeat the next pandemic." that book, by the way, highly anticipated. it's out tomorrow and it's a great read let's talk about the news of the morning of this pfizer application or this pending application that they're going to have. what's the timeline from here? what happens next? when can we expect that this will actually be available for children >> well, look, pfizer for being in a position to file very quickly. the data came a little earlier than some were expecting depending on how long the fda takes to review the application, whether it's a four-week review or six-week review, you could have a vaccine available to children as early as probably by

the end of october, perhaps it slips a little bit into november but i think if the review goes well with the fda, if the data supports the authorization of this vaccine subject to the fda's careful review, you could have a vaccine very soon again, as meg said, this is a 10 microgram dose so it's the same vaccine that's available for adults and children over the age of 12 just in a lower dose pfizer tested three different doses to find the dose that struck the best balance between providing optimal efficacy, efficacy in what we saw in 16 to 25-year-olds, the group it was compared to. they were looking at that in terms of measures antibody response the antibody response was comparable with the lower dose to what you saw in the older kids but trying to minimize reactive jen is tee vaccine-related side effects like injection site reactions or fevers trying to finding a much more tolerable dose for the young children and the 10 microgram dose seems to strike the best balance

between those two competing objectives. >> the different dosage will require different vials as you explained in the past. you're going to have new vials that need to be created and then sent out and distributed i guess i just wonder how, if at all, that slows down the process too, where we are in the stages on that, and where we'll be taking kids to get vaccinated? >> yeah, it shouldn't slow down things at all. this has been prepped for a very long time. as a matter of logistics the company has been preparing for this when you have a formulation or a dosage that's smaller, you don't want to use the vials that you use for the adult dosage because you don't want to go in and out of a vial too many times that increases the chance that you can introduce infection into the vial or contamination so you want a smaller unit to withdraw from for the children. that's what's being created. that shouldn't be a logistical hurdle because it's been prepped. i would expect this vaccine will be accessible in the same places we go to get our adult

vaccinations in pharmacies, in pediatricians' offices if pediatricians want to stock the vaccine, but it's probably larger practices that stock the vaccine and provide injections within a doctor's office i think a lot of children will probably end up getting vaccinated at vaccination sites organized around the schools or communities or inside pharmacies >> scott, let's also talk a little bit about the news from the fda on friday. this was the vote of the fda panel considering booster shots or third shots for individuals the first vote, which was for a third shot for anybody over the age of 16 was voted down they did vote to approve the idea of anybody over age 65. but i just wonder with the number of people i know who have had breakthrough infections, vaccinated, fully vaccinated people who have gotten infected, if there is something that you think more needs to be done or not? >> well, look, i think the regulators and the public health authorities are going to take a

more staged approach to making boof boosters available they want to start with an age population for whom the benefits are very clear and that's an older age cohort, people probably above the age of 60 65 wasn't an unreasonable place to make the cut. cdc may walk that down, walk that up and provide some nuance around that. but that's the age where you see more breakthrough infections, more evidence that those breakthrough infections are leading to more severe disease you also have a population that's further out from their initial vaccination. so i think what they're going to do is make a staged entry of these boosters, continue to collect more information, and ultimately make a decision about walking it down the age continuum after we collect more u.s. data around the experience with the boosters. logistically probably it provides for more ability for senior citizens to go and get those boosters so everyone is not rushing the pharmacies at the same time. so i don't think it's an imprudent way to approach this in a more staged fashion

i would expect ultimately that's going to be walked down the age continuum over time as we collect more data and demonstrate there is more benefit to getting a booster even if you've 50 or younger and the authorization that the fda's advisory panel recommended also included people at risk of severe disease that could include people who have co-morbidities, other kinds of medical conditions that put them at risk of a bad outcome from covid but it could also include people at risk of coming into contact with covid or a combination of those two attributes so i think it's a little broader than a strict age cutoff if the cdc ultimately adopts the fda recommendation. >> the whole thing is done on the honor system when you walk into a drugstore i know people who said that they have immunocompromised issues and have gotten the shot as a result is that dangerous if they're lying? >> look, i think it's going to be subject to self-attestation

and people have to make a decision based on their own medical circumstance and preferably in consultation with their doctor whether they meet the criteria that's been laid out. but i think in terms of how they roll this out is probably self-attestation now, you can prove age so if you're getting a booster shot based on an age verification, you might be asked to demonstrate how old you are but if you go in and seek out a booster because you're moderately immunocompromised or you believe you're at severe risk of covid, that's probably going to be self-attestation cdc's advisory panel may provide more granularity around this so instead of just saying anyone who believes they're at risk of severe covid, they'll say something and that might include and they'll enumerate certain conditions to provide some guidance to consumers so they can know when to self-select but i think they'll roll this out in some kind of scheme where it's subject to self-attestation and the honor system because they'll want to keep it simple and not

overcomplicate things which would discourage people from going in and getting those boosters. >> let's talk about the book, "uncontrolled spread, why covid-19 crushed us and how we can defeat the next pandemic." i have to tell you, i don't generally love reading books like this because i feel like it's going to feel like homework i think this may be the best written book that will come out on the pandemic. not only because of your access and because what you knew was happening but your training as a doctor and working through these issues and because it's a really well written book too, it's easy to digest and get through. when you lay this out, you say that there were some pretty key problems that need to be addressed. when you're looking at just the way our government tackles these days what would you say the biggest couple of issues are >> look, we really don't have an agency capable of mounting the kind of response that we need to a public health crisis of this magnitude. i think early on there was a perception that cdc had the

ball they didn't have the capability, they didn't have the culture, they weren't properly resourced and empowered to handle a response to a crisis of this magnitude. they couldn't collect and disseminate information in a realtime information they're a very retrospective agency and have a retrospective mindset and like to do careful analysis that unfolds over months they don't have a logistical capability so they were never going to be able to manufacture and roll out a diagnostic test to scale early on in a crisis. the lack of diagnostic testing really was the root of a lot of our early problems they don't have the ability to scale a mass vaccination campaign i think there was a lot of assumptions made wrongly that they had these capabilities. policy makers stuck with those assumptions for far too long not recognizing the shortcomings of the agency to the agency's criticism, they didn't raise their hand and say, you know what guys, we don't have this. we're not the right agency to be

investing with these responsibilities you're going to have to bring in other capabilities so cdc was willing to assume these responsibilities without really having the capacity to execute them i don't think we need to recreate a new cdc i think we need to look at how we build these capabilities into the current cdc and it's going to be a much different orientation and require that we empower public health officials. the challenge right now that we're going to have even before we have that discussion is what is the proper role of public health coming out of this pandemic a lot of people have lost confidence in the public health officials. they felt that the guidance wasn't well informed, wasn't well articulated, it wasn't distributed in a way we could asill late it into our lives it changed a lot shall we say 6 feet apart, 3 feet apart, 10 feet apart. so we have to explain to consumers why public health officials should be empowered in the setting of a public health crisis and properly invest the cdc with the resources and competencies to execute that mission. >> i completely appreciate that we need to do this for the next pandemic, but i'm not convinced

we've done it for this pandemic 19 months in, are you? >> no, we haven't. i don't think we're any better -- well, we're better prepared than we were when this all began. i don't want to say we're no better prepared. but we're not a lot better prepared than we were when this began. we still have the same structural problems with government ofte operation warp speed was a recognition that we didn't have the government capacity to respond to a public health crisis of this magnitude so we brought together nih and fda with the logistical capacity of the department of defense to try to jumpstart and accelerate the development of a vaccine so there was a recognition that you needed to marry the high science aspects of government with the logistical capability of the pentagon we haven't done that in other aspects of our response, and that's what needs to happen. we need that kind of capability. we've had those kinds of capabilities t deal with other kinds of contingencies but just not in the setting of public health we relied on agencies that

weren't able to scale a response we've done it with logistical planning around a risk of a bioterrorist attack where we've deployed a lot of resources. when something is distributed across the whole nation, we don't have the capacity response for that and that's where we failed here. so there's a lot of focus on the political shortcomings and there were plenty of political shortcomings all through this crisis and especially early on where i think we haven't taken a step back to reflect on the structural features of government that have failed here that's what i tried to do in this book is focus on those and what needs to happen differently. the sum conclusion is that we need to look at public health preparedness through the lens of national security and national security planning and build in better resiliency in our system. not just plan for maximal efficiency on things like developing vaccines and manufacturing antibody drugs and diagnostic tests, but build resiliency in the sense that there's excess capacity to be tapped in a time of crisis we have not done that when it comes to public health and we're going to have to we've done it in other contexts,

just not public health. >> scott, one of the lessons that you lay out here is many of the early mistakes were based on faulty information faulty information that we were getting from the chinese government because they were trying to cover up and not let on how bad things were, never willing to share the virus itself, let us look at any of these things but it feels to me like we're still working on faulty information. we're not doing things like tracking the number of breakthrough cases we haven't built up the capacity for that what's the holdup? what's the problem >> well, look, i think it's the mindset of the cdc the cdc likes to collect data that are primary data feeds for the cdc and are not fully informative. with wrbreakthrough infections, cdc isn't tracking those across the country, only when people become hospitalized. what they are doing is tracking these cohort studies, so they're following certain groups of people to see what happens to

them over time but these cohorts, these groups of people that they're tracking are people like health care workers or people who are frontline workers like grocery store clerks they're looking at those groups to see if they're experiencing greater infections the challenge is these are not representative groups. if you have an epidemic in the south, they may be oversampling in the north where the delta wave hasn't spread yet a lot of these may have been infected with the virus previously so they're probably o overrepresented by people who have been infected and vaccinated so whether that's representative of what's happening nationally is flawed. so they're relying on flawed data sets that are proprietary to cdc and yielding inappropriate answers. with respect to the overseas mission, gathering data overseas, wee going to need to fundamentally think how we collect data overseas about emerging infections. we can no longer rely on the good graces of other countries

china repeatedly has withheld pertinent information. we could have learned much earlier there was asymptomatic transmission, there was human-to-human transmission, this was a sars-like coronavirus that was spreading all of that was obtainable in mid-december it wasn't shared but it was obtainable if we had our foreign intelligence agencies more engaged in this mission, i think going forward we'll not just depends on countries voluntarily sharing information. we'll have to go in and have the capacity to collect it and monitor for these things and that means getting our foreign intelligence services much more engaged in the public health mission globally that's going to force us to have to get over some taboos because historically public health agencies like the cdc didn't want national security agencies anywhere near the public health mission. they feflt it would besmirch their mission verseas. if anything, we've conditioned the world to be less forthcoming. what's the first thing to happened to britain when they said the more contagious

variant? the french closed it on them when countries learn that they're forthcoming they're going to be isolated so they'll hold on to information more likely than not. >> was that the wrong decision, though when you find out there's an infection, do you want to keep the borders open >> well, the old teaching was that you didn't want to isolate nations in the setting of an epidemic because it would be destabilizing and hurt their ability to control the infection. i think the new teaching going forward is that we're going to be engaging in travel restrictions when we spot emerging infections overseas i don't think there's any unringing of that bell given that reality, we can't just go to the world health organization, hold hands and say we really mean it this time, we're going to all get along and share information even though we've never done it in the past willingly. we're going to have to have the capacity to monitor hot spots, gather information a lot of this information gets shared electronically, it can be

intercepted. we historically haven't had our agencies engage in this mission because the cdc pushed back because they worried if our spy agencies were engaged in this mission, anyone wearing a white coat overseas would be perceived to be a spy. but the reality is when americans travel over seas, most assume they're working on behalf of spy agencies anyway >> scott, you point out in the book a lot of instances where we were kind of talking the talk but not walking the walk honestly, i get the sense that that is still how a lot of things happen in this country. you know, if you're well off, if you're connected, you have access to everything from checking your antibodies on a daily basis, as "the times" laid out this weekend to making sure that you can get a rapid covid test not a rapid test, but a rapid pcr test back in the same day. if you're not connected, if you don't have money, if you don't have great access to health care, you could be waiting two

days to get an appointment to get your pcr test and another three days after that to get the results back, which is completely unwork al i mean that's what's happening in this country right now. i went through it last week with a covid scare in our house that's what's happening. why is that? when and how do we fix that? >> look, we have stark inequities in our society when it comes to a whole host of things, including health care. i think covid made that much more visible to people across the country. people from lower incomes, black and brown america, didn't have access to the health care in a timely fashion many times they had to work in jobs where they were put more at risk of coming into contact with covid. there was bias in the health care system. they didn't have access to testing. these inequities exist and are pervasive. if we're going to make us more resistant to these public health crises, we need to address knows inequities and get health care to people who have been locked out of those opportunities

it becomes more manifest in a crisis like this where the technologies are available, they're not readily accessible, but the well connected and the wealthy have the capability to find their way towards these opportunities. those who aren't well connected and wealthy don't. we'll have to address it that's a big part of the book, i talk about that. if we want to make ourselves more resilient, it's not just a matter of improving our technology and information collection and shoring up the cdc but also grappling with these structural issues in our society that leave too many people behind when it comes to public health and health care. >> scott, first of all, i want to thank you for being on with us so frequently since this whole thing started. for a while you were with us five days a week, now probably three days a week, but what you've been telling us the whole way along has been right if anybody wonders why, it's laid out in the book today it's called "uncontrolled spread." scott was there inside on a lot of these decisions being made. he knows what happened and he lays it all out in this book the book is out tomorrow and,

scott, i just want to thank you again for what you've done to share with us and our viewers throughout all of this >> thanks a lot, becky. >> thank you >> okay. a lot more coming up right here on "squawk box." we'll look at today's premarket sell-off and see what's happening. also a big week for the federal reserve. mohamed el-eran will talk about that here are stocks that are lower occidental off over 5% we're back in just a moment. the pursuit is on. the pursuit of outperformance at pgim. with deep expertise to outthink across multiple asset classes, actively managing investments in the world's public and private markets. outscale, with the resources to serve 1,500 clients in 52 countries. and outlast, with long-term conviction

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because october, while being kinds of scary, it's also presented a lot of buying opportunities because a lot of lows seem to be hit in october we've been talking about that. you know, we're still not down much, 5% maybe i don't even know if we hit that quite yet. but we're pulling back on this monday hong kong is where a lot of it started. the hang seng finished down. mining stocks tied closely to development in china those are showing losses of 5%, 6% and bank stocks, if there is going to be some type of, i don't know, contagion from china, maybe it goes into the financial sector globally. it certainly looks like there's some angst there this morning. 3% or greater moves down in a lot of the major money center banks. coming up, we'll have the latest on that troubled chinese company that is sending some shock waves through the global markets. you know, we didn't look a

bitcoin. 43 now that's down, what, 9% or so. so crypto is like, i don't know, it's not only noncorrelated, it's super correlated to risk assets we'll see what's plaguing evergrande up. other evergrande stos sockal sinking. stay tuned, you're watching "squawk box" on cnbc 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... hey, rob, you're on mute. hello! hey, rob, there he is. workday. the finance, hr and planning system for a changing world.

the u.s. ipo market hitting a big milestone, as more well-known companies wait in the wings to go public leslie picker, things are still good maybe not as good as they were a month ago, leslie, i'm not sure. >> yeah, i don't know. you were just showing the boards that indicated a pretty big sell-off this morning so i don't know if that changes the game. but as of now it's only september. we've already notched a record year for ipo issuance in the u.s. last week's deals helped push the amount of proceeds raised to levels not seen in entire years, more than $100 billion worth that beats 2014 when alibaba went public raising $25 billion as well as the dotcom boom years of '99 and 2000. these numbers are not inflation adjusted, however. still, the $100 billion figure from this year doesn't include

spacs or blank shell vehicles that raised capital to fund future acquisitions. spacs have raised an additional $126 billion this year and the deluge of capital is nowhere done software providers freshworks and toast are readying their debuts this week as well as sustainable jeweler called brilliant earth. many more buzzy deals are expected reddit, allbirds and chobani op prepping ipos. while recent debuts have gone smoothly, especially those like shoe mark, and dutch brothers coffee from last week, when you look at all of the ipos from this year, nearly half of them are currently trading underwater, according to cnbc data so the question for investors is going to be how many more of these ipos are going to be worth buying, especially if you're in the red on some of your previous investments, joe >> that's pretty amazing

48% below, so we've done a lot but that's not great after market performance i just saw bitcoin, leslie, down over 10% now and the market, 6, 7, 8. and i was looking here, if you want to really get your attention, the six largest tech stocks in china have lost $1.1 trillion in the last six months since xi jinping started, i don't know, readjusting the economy over there in ways that are inscrutable maybe to us. but kevin rudd, the former aussie prime minister, seems to have a good reason in the journal today. we'll see. windows to close they open and close, except on high floors and i'm glad they don't open and close but normally windows can open and close, right, on pos we'll see. but this looks -- >> that's right. >> this looks interesting today.

this is a first -- that was what we always said, never short a dull market. it was dull. maybe that didn't work this time who knows. we don't know where this goes. but october is next, right it's september right now, leslie we still do it that way. september, october thanks, leslie. >> pretty much every year, yeah. >> yeah, it keeps happening that way, so we'll see. >> yeah. coming up, when we return we'll get jim cramer's first take on this morning's big market selloff check out airline stocks right now. we'll show you where those stand on the markets right now we've been looking at red arrows across the board same thing with the airlines american airlines and just about all of them off about 3% right now. stay tuned, you're watching "squawk" on cnbc

hong kong listed shares of evergrande are tumbling and bringing global markets down across the board really. we're joined with more on this debt-laden chinese property developer. getting a little worse over here, eunice hello again. >> reporter: hey, joe, yeah. evergrande, you know, is a

household name here in china it's the second largest property developer. it also represents a certain type of company, one that has been able to traditionally get a lot of access to credit and, therefore, can expand into several different areas. for example, the billionaire founder at one point had bragged that evergrande could take on elon musk's tesla because they were investing in evs. but now the company is facing a lot of changes by beijing in policy towards the property sector as well as the financial sector and the fear is that this could lead to -- not only default of evergrande but also to financial distress of a lot of other property developers. unclear right now as to whether or not the beijing authorities will be stepping in. it seems as though at least from the messaging up till now that most market players believe that

beijing did not want to step in because of their fear that this could be in some ways encouraging what beijing has seen as excessive lending. at this point the company has been in a full-on damage control. over the weekend we saw the company saying that some of its investors who had put their money into the wealth management products for evergrande would be paid back in real estate they also had tried to calm down some of the anger among investors by saying that some of their executives who had kind of cashed in -- cashed out some of their own investments for these wealth management products were going to face severe punishment. so a lot of effort on the part of evergrande to say that it is going to be able to try to meet some of its obligations. but at this stage we're watching a couple of dates. monday, today, the company was

supposed to meet some of its interest payments for local loans, but it looks as though -- we don't know whether that's going to happen. it's a holiday right now for the next couple of days. and then on thursday the company faces another test as well as on september 29th when they're supposed to be meeting more interest rate payments so we'll see how that goes and whether or not beijing is going to feel much more obligated to step in because of all of the distress that they're seeing in the financial markets and also among investors and more mom-and-pop homeowners as well andrew. >> eunice, thank you for keeping us up to date all morning. i know we'll come back to you in just a little bit. we should also mention, don't miss hedge fund giant jim chanos on the halftime report later today. meantime joining us to talk about this worldwide market

implication of the stress on evergrande is allianz advisor mohamed el-erian he's also the president of queens college cambridge good morning to you. i'll ask you the question we've all been asking all morning, which is, is there a real prospect here of contagion >> we're seeing it already, andrew we're seeing it because what's happening in china is shaking key tenets of this global investment theme it's easy to say the chinese government is trying to strike the balance between on the one hand punishing excessive risk taking and the on the other hand not having a systemic event. that's easy to say to do is much harder what that results in, people are questioning one of the tenets, which has been the government will always stand behind the financial sector it's not not at least as yet. now add to that what has been an attack on various sectors, big

tech, education, i mean the list is long, as you know it's shaking this notion that china is an investable market. >> but i guess the question is, is it that it's not an investable market right now meaning this is a transition period, or do you believe this is shaking people's faith that it's an investable market forever? >> so it's certainly the former. and there are people who are talking about the lehman moment for china. i don't think we're there but that is out there. so we don't know about the latter but remember, the context is important. it's coming when chinese growth has been losing momentum it's coming at a time when u.s. growth has lost some momentum, when the fed is facing a very uncertain time so there's a lot of uncertainties. i've said over and over again the big question is do you get a

market accident or a policy mistake that shapes the behavioral condition of markets to always buy the dip. and we are going to be tested over the next few sessions on this. >> and that's the question then. there's a lot of u.s. investors that are thinking to themselves that very question is this a dip to buy or is this a dip that continues >> and that's the great question so far the buyers of the dip have gotten hurt, and this is one of the longer dips that we've had for a while, so we'll see. the conditioning is deep, but the fed on wednesday is going to also have a huge influence so there is this uncertainty as to whether the fedcontinues with qe infinity we know they want to give some sort of timeline, but the assumption is that the timeline is still further out and if push comes to shove, the fed will delay it. i think they should have moved

already, as you know i look at the demand side, i look at the supply side, the economic reasoning is there. and you could do it in an orderly fashion had you started moving already the longer you wait, the smaller the window for an orderly tapering. >> i don't know if you can see the screen, mohamed, but we just put up a deck about what was going on in the crypto world crypto, at least from what we have been told by the advocates for crypto have suggested that somehow it is not correlated to markets, but it seems more correlated than ever >> yeah, i mean today we're getting all the correlations you expected in the old days and we haven't gotten for a while sell-off in risk assets across the board, including crypto. higher gold, higher vix, and significantly lower bond yields, including at the long end. so for once the market is acting according to historical correlation, which it hasn't done for a very long time. and one of those correlations is

that all risk assets are impacted, including crypto >> so big question, what do you do right now meaning we're talking in the 6:00 hour and he said he would put money to work here would you? >> itquestion, because i depends on your initial conditions if you are already heavily invested, this is a moment to just wait and see. there are real questions out there that could change investing paradigm if you are under-invested, then this is a time to get back to more normal investment levels. so a lot depends on your initial conditions >> it's a question to hate, because it's a hard one, and there are many different answers. mohamed, always good to see you. >> thank you. jim cramer joins us now.

it seems to be across the board. if it was just banks or just china-related stocks or just commodity stocks, you would think it's all china, but -- let me is that right again then, jim. answer if you can hear me. jim? >> yeah. >> okay. now you can. my question was, it seems to be a weakness across the board in different sectors of the market here, and elsewhere, which makes me wonder whether we should blame evergrande, because i thought maybe -- the banks are weak, but it's a risk-off trade. do you think this is china or just the pause that might refresh given an extended mark we may see. >> that's a great question the problems with china seem to have snuck up, but some of us have been talking about this for weeks. i think we get to a i also think the problem with

autos is not going away. the numbers about people who want to buy a home are almost at historic lows all of a sudden. there's a lot of things to be combined negative. suddenly, suddenly -- joe, that kind of thing tends to sort itself out, but as mohamed said, maybe we have so much in -- we've been trying to tell people to sell. i'm not stopping that. i'm continues to think you sell. >> what does that say for ipos leslie just did a piece on how great the environment is it doesn't take long for that to start switching around d. it, jim? >> you're so right we did have a couple good ones last week. dutch bros was pretty good, but there was just so much already existingably that's going to come out we're going to start seeing secondaries.

this is new deals seem to have lower quality. people need to sell other things, there's not enough money coming in. this is seasonally the weakest part of the entire year. the 20 days that begin september 17th tend to be the worst single 20 days in the market. let's ride it out. let's just watch if you don't have a lot of stock, you know, you're going to hit a buy point, but not yet. >> larry mcdonald was talking about volatility in the yuan to watch. he was talking about credit default swap moves on international banks, foreign banks versus domestic. what would you use to tell you that what's happening is start to go ripple through and turn into some type of credit problem, jim it's not there yet, probably the bonds really aren't doing much. >> i'm not buying one bit of what he had to say we aren't allowed in most of

those situations blackrock had a small position i don't care about the european banks. i would not be shorter term bullish, if it weren't for the fact we were kicked out of china a long time ago. if the chinese government wants to save it, they can the cajun,ge -- contagion, it wl not happen since common prosperity became the watch word for the chinese government, they're going after everybody. the richest person in china owned evergrande i'm not going to buy into their decision to be communist is negative for us. it's positive for us this is a chance to rye 'certificate ourselves, but we have to go through the lardry mcdonald negativity before we realize, hold it just a second, it turns out it had nothing to do with bank of america.

go sell bank of america, but sell it at 39, try to get it back at 37 i'm not that kind of guy i'm not going to tell people to go be hedge funds. it makes no sense. >> jim, that's what i wanted to ask you about, the contagion factor and fear factor on wall street it seems crazy to talk about it, about you it feels like there's been a wall of worry, and maybe all those concerns, plus you have earnings coming up. if you pack all of that in, maybe it's great longer term, but what does the medium term look like? >> i think this is a sell-off period someone was saying, why is amc down it's a stock stocks are going lower that historically has been a period that starts, and then we get a little more selective, but

we have to suffer through it i don't think -- i really want to carb people we don't want china strong, okay we don't want them militarily strong we don't want them financially strong, so let's start acts as if this is a good thing, not a bad thing. if you want china to be ascendant and us to be second rate, you want the chinese to save this piece of junk that's $300 billion, i won't be in the camp of ooh, i'm scared. i was scared about china when they were starting to take on taiwan, not when their business is bad they're not our friends. >> all fair points. we will see you to talk more about it in just a few minut. > quk x"ill be right back get live tv and on demand... together. watch: serena williams... wonder woman. serena... wonder woman... serena... wonder woman... ♪ ♪ ace. advantage!

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a rough start for the monday mornings, dow futures down over 600, you can blame china for this, look at a lot of other reasons, what will happen with the debt ceiling, with the spending bill and whether it passes or not, if that's a good thing, but the big question is,

will this continue we've been looking at cryptocurrencies, which is down even more, but quite a start to the week >> somebody has a bad case of the mondays. >> it will be a day to watch, to see where things go, whether there is in dip buying that comes in. >> we will see you back here tomorrow morning, but stay with this coverage. "squawk on the street" starts right now. good morning monday, welcome to "squawk on the street." we're live at post 9 futures indicate a near 2% at the open we have the fiscal cliff drama in d.c., the ten-year yield, and europe is having its worst day of the year. we begin with contagion fears spooking stocks as that september slide intensifies. >> one reason,