♪ good tuesday morning welcome to "squawk on the street." the new york stock exchange, tuesday turn around in progress. not just stateside but in the uk, france, germany, and hong kong no firm catalyst plenty to watch including day one of the fed meeting stocks look to recover after the worst day for the s&p in four months. >> uber shares are surging they did boost its third quarter outlook. >> and a shot in the arm j&j says a second shot of its covid-19 vaccine boosts protection for moderate to severe cases to 94%. all right. what is different this morning >> okay, so my chinese sources which are pretty decent even

though i'm considered to be not necessarily complicit with the regime, they're saying, we're going to keep this one in china. this money is owed by chinese companies. the debt is chinese companies. we're not going to have this thing be contagion they're going to make it so that this does not disrupt the world. however, it is going to cause a step down in growth. and so therefore those who want to cover and buy, good luck, you're going to have to be in and out. but this is the word they put out last night a lot of them what they put out was basically, we hear what's going on in the u.s. media and we want people to know the contagion stops at our borders and, david, you know in the command economy, they can do that however, i think this was xi's first big mistake. >> you do, why >> because this is a much bigger market versus gaming and

education -- >> the property or real estate -- >> 25% of the economy. you got a lot of people who are out a lot of money and he has to try to figure out how to make it so that they don't get too upset because he doesn't -- he's not dictator for life yet. >> no. i think '22 is when it becomes more official. it's the next -- >> there's risk. and this was an idea to make it so everybody is equal, common prosperity, but it may not have worked the way that xi wanted. this is his first mistake. i think this is his first mistake. >> he hasn't made any mistakes until now? >> no. in terms of trying to make people feel that they're equal, but this one is a backfire we'll see. >> we'll see what? >> it's kind of early. this thing is going -- may default this week. >> if it's not contagion --

>> the not contagion is making it that those who sold our banks, which i said are wrong, are going to regret that you sold our banks you sold j.p. morgan on this his stock shouldn't have been sold. >> that was b of a's point this morning. >> people like to mention -- there was a great movie about it and i'm tired. the fact is it's a lehman moment for no one because it's a command economy. i think people still continue to believe that somehow the chinese communists are like us look, the only way they're like us that they can see, they don't want covid at the olympics and so how big is the lockdown going to be? why are you, like, looking at me like i don't know -- i have worked since 3:30 on this. >> i don't doubt it. i know that you work harder than anybody i know. >> that's the point.

including those clowns that i'm now attacking. i'm no longer tolerating it. they're like jet fans, meet atlanta falcon fans. sorry, it ain't coming together. diamond, whatever. three diamonds >> all that being said about china which we do talk about a great deal, don't push aside what -- he has been -- sort of engineer and the journal had a long, interesting story about it today. a new norm of socialism that essentially takes the capital down in term of its significance in the economy and the capitalists. >> but when -- the property segment is a little too big there. he may have misjudged in terms of how much he could hurt lots of people. >> okay. bottom line it for me, then. what does it mean? >> slow down in the chinese economy. if you sold our banks off in

that, you're living in a different era. this is where you're cerebellum is disengaged from the rest of your body and i think that you're probably not sound of mind >> got it. >> the great character from -- >> worldwide, how about that do i want to be selling that >> are you kidding me? you want to sell judith marks? >> i don't know. i'm just pointing out -- >> one of the things that they do -- and i know david may disagree with this they inspect elevators they're a service company. they have not backed away from the idea that crashing elevators is bad. >> understood. but you can see what's happened to the stock price -- >> this is again something what

people don't understand. judith marks is a hitter when everyone else was afraid to go visit people, this ceo was on the road visiting people, taking share from other companies that's a good idea to buy that. >> you can do a bunch of names like this. carrier, apple, b offa today every 10% drop in sales would imply a $4 billion head wind to revenue. >> at the same time, we're seeing some statements that say that the lead times on the apple 13 are longer and that the chinese are -- they've been cutting the price of the 13 in order to be able to have volume. david? >> well, we can go through a list of names that we think might be impacted by a slowdown in the chinese economy, if that were to actually happen. apple is one of them, isn't it

is nike another one -- >> okay, okay, okay. china, 40 to 50 million are sold in china there are gaming issues, okay. nike, there's a note today saying nike is back in favor with the chinese government. 51% of the footwear that is made in vietnam where there's supply chain issues starbucks is down 20% so far that seems like it's not a great thing. >> okay. >> so give me another one. >> i don't know, carl, you got anymore? i gave you otis, starbucks, nike, apple. what else? >> i gave you carrier. caterpillar. >> oil is at $70 buy conoco >> okay. >> we'll talk about more in a minute >> tesla the numbers are coming through. >> china, do i have to worry at all? >> one of the stories this morning was, how silly it was

that the evergrande situation impacted shares of kroger or best buy or twitter yesterday. >> yeah, that's stupid now, look, if it has to do with minerals, like you don't want to be a big seller of iron here one of the things that has depressed the steel stocks, if there's less demand in china, maybe they're going to find a way to get around, send it to mexico it wasn't the two plants that they're planning, this is hurting -- >> some capacity expansion of your own. >> nucor is only down a quick 20 points i think that they're a great company and they're going to have a fantastic year. people looking for $22 this year and $12 next year. do you think their earnings are going to be cut in half? i don't think that's wrong. >> do you think a slowdown in china can be mild enough that it doesn't halt global growth, but it takes the edge off global

inflation? >> yes that's good. >> i'll take that. >> yes, any day of the week. that's why -- now the problem is, up opening takes all that and says "buy. if you want to cover, fine but we have other issues and we have a federal reserve that may not understand exactly what you said this debt ceiling is going to be with us until it's solved which -- >> it is every time. >> but it does not -- it always looks like it's right now. logger heads -- >> this will be the time when they don't and it will be disastrous never happens. >> we have uber that reported a good number, we have a new head of auto nation i like him very much phil lebeau and i were going back and forth brian sozzi at yahoo does good work on retail and says be

careful. can you give us the big story of the day? >> no, i'm not ready yet. >> you're watching, though you're watching some pots boil. >> i'm more than watching. i'm waiting for my phone to ring. >> royal dutch -- >> that was a large transaction. tell me, what are your thoughts? >> that's a lazy susan deal. we have a lot of carbon here, give the carbon to conoco, now we have less carbon. that's called lazy susan that's what it was, there's no reduction in carbon. are you kidding me >> they reduced their carbon and conoco increased its carbon. conoco increased the dividend. look, i'm trying to focus on the oil companies that are focused on reducing carbon mike worth was spending $3 billion in carbon

what happened when he boosted it to 10 billion? do you remember what wall street said >> they don't believe it >> no. opposite >> not big enough. what did they say? >> j.p. morgan downgraded it mike worth is a responsible guy. he does the right thing and he gets downgraded by j.p. morgan what does j.p. morgan want listen, hey, we want it to be green wash we want green wash that was a pro green wash downgrade. we don't want serious carbon reduction, we want faux carbon reduction. like moses malone, faux, faux, faux you thought it was one of the most embarrassing downgrades on wall street. he spent a lot of money cleaning the air. that's not the game. are you kidding me do you know larry fink is sitting there trying to figure out whether you should buy or

sell chevron how many divisions does j.p. morgan have -- >> not as many as larry fink -- >> i did notice ubs launched the first u.s.-listed 2x leveraged etf. >> it's about time it's a five-team parlay. >> that's a lot of -- >> five-team parlay. and you can augument the line. what's the point really i launched a new 00, if you get 00, there's more -- what do people come up with these things for? >> to make money. >> that's what it is >> that's the way it works >> we don't have no president xi telling us you can't make money. >> president xi is not that -- did you read his note to the guy who runs evergrande. >> they're going that walk -- the darkest moment

there is no dawn for evergrande, okay there's a dark moment. >> at least they have some poetry in their state press releases >> all right >> i got a lot more on evergrande if you want it. >> i'm not sure we do. >> we'll see what the open looks like we're coming off, as we said, worst day since may 12th for the s&p. the eighth worst one-day move in a year and we'll keep track of the fed meeting and potus at the u.n. this morning. more "squawk on the street" in a minute we see increased efficiency connected to more comfortable homes. emerson's energy star™ certified sensi™ smart thermostat uses geofencing to simplify how homeowners manage comfort and costs. emerson. consider it solved.

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a new samsung phone or upgrade your existing phone. learn more at your local xfinity store today. j&j is moving higher in the premarket. showing a booster shot of its covid vaccine given two months after the first dose provided 94% protection in the u.s. and 75% globally j&j says a booster at six months provided a 12-fold increase in antibodies coming on the heels of the pfizer data of kids 5 to 11, it's been a decent week for -- >> ever since the yankee outbreak, where a bunch of guys had covid. i know that those of us with family members who have -- this is great news. because there's a lot of people felt like they had inferior coverage they will no longer feel that way and i just hope it gets to

the stores as soon as possible >> we'll watch it. we're looking for more information about the u.s. reopening travel from the eu and the uk that's a big deal for new york city and tourism in general and the airlines we saw some strength in travel yesterday. >> i want people to watch visa cross border traffic the notion of more testing, it looks like it's pcr. i'm not seeing that it's abbott. when i went to italy, yeah, i had three -- the tests three times. you spend most of the time getting tested and i want for pcr you had to be tested, tested, tested if you're an american because they don't trust us. >> the overlay between vaccine news and real estate news, of course, is obvious today the journal says that google is buying a manhattan

office building for 2.1 billion. it would be the most expensive sale of a u.s. office building since the pandemic one of the priceyest in history. >> i'm a huge believer that this notion that new york is done is just stupid. what it says is, the traditional buyers, a law firm may not be here i wouldn't be surprised if facebook doubles or triples what it's got here. there's a great piece on this. i did a piece -- i said, listen, if you want to know what to start buying, start buying some of these reits if you always just look at what -- who has been a tenant, you're making a big mistake. you forget that the cost of having any sort of business out west is insane and the east is cheap. >> we'll keep an eye on that certainly some encouraging data points for the future of new

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we got nine minutes before we get started with trading. >> i wish we were standing up, because that actually looks like the first suit that you didn't buy at menswear house. >> that cuts me to the core. >> we got amad dash. i can show people my nice -- >> we're going to try to help people rather than just -- >> is that what you do what you got

>> bausch health >> they changed the name from -- what did it used to be >> valiant >> joe, i like joe not just because he plays ice hockey with one of our friends, jason. >> got it. >> joe papa has created a plan -- j.p. morgan says the pathway for a separation has evolved. they're talking about $40 sum of the parts. i like this call i like it because joe is not happy. he likes to create wealth and i think that this is a very, very interesting call does a lot of just the traditional work on multiples. i know you do sotp -- >> sum of the parts, i can tell people. >> and i think he would like it because the downside seems very, very limited joe gets to stay on. i've had joe on. he promised --

>> remember when he ran parago, they said no to the takeover -- i've never seen anything quite like that. >> you had to throw negativity -- >> yes, a little negativity. it has nothing to do with joe papa and his stewardship of bausch. >> i like this call. j.p. morgan likes it people are looking for interesting calls that can with stand this market. i had skin on last night -- >> that was a spac. >> and airbnb is the story for right now when we start doing this travel. hotels are too expensive over there. they did not come down in price and airbnb is a bargain. >> that was dara's point but last week, the best volume since march. >> that's incredible i have to tell you that brian chesky is saying that business

is going great guns. 1 billion people, the billionth reservation now. $9,000 additional revenue for people otherwise on a fixed income it's a remarkable story and i'm glad he flew in to talk abou it frankly it's a story about empowerment. you got a place? get a little extra money it works >> all right we got to take -- squeeze in a quick break before we get to an opening bell and have some news as well after the break. you can catch us any time, anywhere, by the way, if you want to, listen to and follow the "squawk on the street" opening bell podstca we're back in just a couple of minutes.

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>> announcer: the opening bell is brought to you by nuveen. ♪ draftkings, the online gaming giant, is making a bid to go global. making an offer to acquire

ent entain the offer price, roughly 2500 "p." the offer is largely in draftkings stock i'm told there's a cash component. unclear exactly what the mix is. but largely in draftkings stock, of course, that stock trades at a high multiple as people know having gone through public through a spac sometime back and benefitted from the pandemic and other things as well entain has attracted interest from other suitors in the past earlier this year, they rejected an offer from mgm. and that deal which entain said and i thoughtly undervalued the company was worth roughly 1383 "p" at the time. if you take a look at a stock chart, you'll see how the stock has moved past that. it did confirm what they said at the time, was that it

dramatically undervalued the company. bet mgm, while mgm, has nothing to do with this draftkings bid for entain, it could benefit from any bid should that bid move forward given the rights that mgm has in that u.s. partnership with entain. it would be able to extract certain concessions and benefits draftkings went public in 2019 the stock has been strong. analysts looking for, what, a stock that could trade up into the 70s perhaps. that would be eight time 2025 revenues what do you have when you have a highly valued stock like this? sometimes you try to use it as currency --

[ cheers and applause -- spoke person at draftkings and entain have both declined comment or not returned calls at this point we'll have a lot more on the story as we potentially get it >> the opening bell here real quick. at the big board nerdy celebrating its listing here and crowd strike celebrating its tenth anniversary. >> you got to be very careful with this opening. there are a lot of people who bought stock when the market was much lower good opportunity to cover -- i've been telling people to short the market i tend not to do that. you got to cover as it comes in. i'm not saying get long. but it's been a long time since i said short i think we're at a hometown where a lot of buyers are going to say -- a lot of buyers are going to say, look, i have a

chance to take a profit. i want to go back to what dave was talking about for a second this is the long-awaited consolidation. there are way too many companies in this business barstool is going to continue -- >> you did have that deal that was done in the uk -- >> but you need to see the states adopt we do not have gambling being legal in every state and we all seem to act as it's going to be. new york is a very important market and we don't know how new york is going to shake out. draftkings has ambitions -- >> mostly stock. i'm not quite sure of the mix. could be as much as 30% cash i know they have gone out into the market for financing as well but, largely stock to your point, when you have -- although the stock has come back a bit for draftkings, you want to use a highly valued currency. one clear at this point whether entain has interest in that and given -- they're not far from

the size of draftkings could make an argument, why would we take your stock? we'll see how the marketplace reacts to it by the way, in the uk, remember, the takeover panel, they're going to have to make a statement. we'll see when they're asked to what their statement is. as i reported and people familiar with the situation indicate, a so-called formal or serious offer is how it was termed to me was made two or three days ago by draftkings for entain people want to own this entain mgm gave it a shot and backed away when they were rejected. >> it's a land grab. i have to tell you, i think at a certain point, it feels like cannabis remember when everyone wanted cannabis there was no price you wouldn't pay. until we find out exactly how lucrative this market can be the cost of acquisition is deadly >> the cost of acquisition of a customer >> that's why you'll see these deals where it will be like, if

mahomes scores a touchdown, you get "x" and that's a big dead loss for them. if they can amortize the customer over time it's good >> again, if they are successful in this or move ahead, it could be beneficial as well as i pointed out to mgm though it has nothing to do with this offer, has that important partnership with them here in the u.s. that they -- i think it was in 2018. entain was under the name -- i think it was gbc they changed their name to entain a year or two ago they could have -- they have hooks there and extract benefits. >> the problem with this industry, if you are already set up as a casino, then you have such an advantage over these companies. the penn nat piece together is how barstool is a cheap form of acquisition. if you watch the nfl, draftkings

is plastered everywhere. let's say, if everyone is spending a fortune to get customers, not everybody is going to make money. i think draftkings is wise to use its expensive currency >> online poker was a disaster and that stove was hot, right? it's a different story this time >> jason robins is a very big thinker. he has, at times, tried to think about draftkings as being a worldwide purveyor of news, business news, any kind of news. and i think that his forward-thinking about having an international view is very, very encouraging for people who are shareholders of draftkings the it's a good move, is what i'm saying he's the consolidator. >> he would like to be we'll keep an eye on the stock price -- >> that's a great story. that's a great story. >> different rules in the uk and so we'll see what we hear

from entain. did not hear back after making calls over there to try to get some comment from them but we'll see if they're forced to -- as they typically are -- comment, once there's been sort of a public disclosure made of a potential deal. >> i mentioned the cannabis industry, there's a lot of people, a lot of retail investors just got crushed in ca canopy why? because it turned out not to be as lucrative as we thought. >> similar that you have more and more states that are going to sign on for online gambling >> but i do think that jason is very, very smart they did have some regulatory problems, a long time ago, they've worked their way through them but i also say, okay, come on. you need states to adopt it. you can't -- you need to be bang, bang, bang and you need it during football season that's really when the betting occurs >> we'll watch that on the heels of david's story

uber above the 50-day for the first time since early july. >> nice. >> the company says they're shooting for q-3 break even ebitda dara khosrowshahi was on "squawk box" this morning, and talked about volume and said pricing will ease in the second half and volume will accelerate here's what he said. >> the really great thing about uber is the flexibility of the model and actually here we are, still in somewhat of a pandemic, and our gross bookings levels are 35% to 40% above the ipo and we are very clearly on the path to profitability so superproud of the team for what they've accomplished. >> he's referringto his stock. that was once $60 instead of 42. >> here's what i think that is good about capitalism. when people felt he was a driver

of a pickup, right that's not what it turned out to be it turned into a delivery service. being able to move liquor to people is a very, very big deal. they have an initiative which is about to have truck drivers all over the country this is a good story, by the way, lyft has been a good story, airbnb has been a good story all of these are the new economy, gig economy and they work provided you don't have to pay your people a lot of money and benefits. >> right which is a key question mark, isn't it, particularly for the ride-sharing companies >> i would say yes. >> and for the delivery companies actually as well here in new york where the city council tried to pass a bill -- >> but i like airbnb i like doordash. i like dara, i like uber and lyft these are companies that everyone said -- >> you're liking a lot of stuff

today. it's like you're stamping that like -- >> everyone has trashed these stocks look at airbnb. >> i will look at it i know there's a number of frustrated shareholders. there's been talk about could there be activists in there -- >> you never know. how much do you want >> i want a lot. i want a lot of praise my point is, uber is still down for the year a lot of headwinds for its business -- >> if i wasn't such a fan and friend of andrew, i would be jealous. the interview was terrific and it would made -- the question he asked him was the question that was most important i took an uber the other day from summit to brooklyn and it was $88. that used to be $40. and dara said, listen, the drivers share in that. i think that's good. he made so many good points that

if you bothered to listen to what he said, you would like to buy the stock. it was a great interview >> it certainly trades at a cheaper -- or a discount to dash, right? >> yes >> no doubt about that. >> yes, it does. and i happen to like him very much shoe is the one who -- i would, look, you have got to help restaurants. they're getting wiped out. he says, all right, and then he opens -- helps restaurants look at that chart this guy is the real deal. xu is the real deal. i think he's one of the great american stories mother owns a chinese restaurant he bailed out a lot of restaurants when they were in trouble. the loyalty that we have to him when he -- when he did not kick us when we were down he said, how can i help you?

look at what's happened. that's a guy i've been trying to get him on this morning because i was so jealous of andrew and i can't do it he won't do it i said come on right now you just announced that you're going into liquor. but, no, i think he's a visionary and i really, really like him he's a real guy. >> upgraded last week, target of 255, largely on the tam, that is related to nonrestaurant business >> that's it >> watch that. but you talked to brian chesky last night of airbnb about the overall model and how it has applied itself to the new environment. here's what he said. >> what we've learned over the last 18 months is that our model is adaptable we're in a fast-changing world this is one of the most disruptive times since world war ii we can adapt to however the travel patterns change and the thing that's interesting, we're innovative.

we've done over 100 upgrades to our service in the first six months of the year travel is changing it's going to look nothing like it did in the past airbnb has gone from 130 to 166 in two months. >> brian called me when he had to do layoffs. and i was like, brian, come on, don't -- you got a great model and brian doesn't get down many people feel this is the safest way you have the house, you can clean up, you don't have to be an elevator. i was recently in a hotel and four people got on the elevator. four people. well, hey, i had the midwest distributor of delta in my elevator i got out of the elevator immediately. if you're brian and -- airbnb is great. >> no elevators.

>> my daughter when she was in lockdown in madrid, had a novel strategy every weekend, she went to a new house. what i couldn't believe was he said, that's what everybody does, jim. people go to new houses in their area because they're sick of their studio there are people who live in studios, on a fixed income, they're teachers, and they want to go see the world, they go airbnb they do not go to four seasons they don't go to four seasons -- >> understood. your point is, this is obviously sustainable long after the pandemic -- >> and a lot of it is because brian had the wherewithal when he started this company, there was a guy who said, don't quit your day job he was telling me. what are you doing there >> brian didn't want to make it a for profit he wanted it to be like craigslist. >> he flew in to see me. and he had the billionth customer david, you know how hard it is to get a billion customers >> i can imagine it's very hard.

>> you're shining me. >> i am not shining you. >> i like airbnb i'm going to reiterate that. i like airbnb, doordash, uber, lyft these are very good companies. >> what don't you like >> the rest of the markets [ laughter ] >> okay. i did want to ask you about sort of a group of companies related to supply chain. fdx is raising rates we mentioned alcoa. >> i'm going to take the other side of that it was an amazing quarter. it was they need very much to be able to get approval for land and they need to get supply chain better, but the demand is great. i'm not saying you have to pick up lenner. it's when demand is bad that i worry.

i don't worry so much about supply there is a demand for lennar homes that is extraordinary. and the executive chairman, stuart miller, he says they don't have enough homes to meet demand, don't say they have too many homes and they can't -- and there is no demand there's a level that i want to own lennar this is a day where people want to own -- they want to go back to tech because they think tech doesn't have sensitivity and starting to feel much better about putting evergrande in a box. evergrande is in a box and they -- and that's because xi is in control xi is -- david, xi is a dictator, but not for life yet. >> not for life yet. if airbnb started in that country, it would have been not for profit >> it was started in san

francisco. >> i was just saying -- what are you looking at >> lucid is on fire. >> people -- i spend way more time than i should with him. when we're in our office here, he looks at the tape he can't stop himself from looking at the tape. >> i have to if i see lucid up and i know they have a meeting and everyone is excited about lucid right after i had my back surgery, i had the privilege of driving in a back of a lucid. >> i remember. >> and i was thrown, i was thrown and i was right back -- almost instantly back in the hospital i enjoyed the ride immensely this is one of these things where he goes, are you strapped in and he goes 0 to 80 in our parking lot, and i go forward and my back is -- they said, well, another way to take the stitches out it's not the way i would like it. >> i remember that day it was a whole day. >> yeah, and then i did not suffer a concussion and i was

not on the pup list. played the next week. >> torque is different, different kind of ride. >> 0 to 80 silently? >> in a large luxury sedan. >> we have to move on. >> yes, we do. we're going to go for a lucid ride. >> i look forward to that. >> do you go in a car at all >> i try not to. >> the bounce is holding here. the vix is down to 23. let's get to bob >> i have a friend who just ordered a lucid. they're excited about this car i'm excited to see it in general. yesterday, we have 10 to 1 decline to advancing throughout most of the day. today we have the opposite 10 to 1 advancing to declining at the hope. inverse of yesterday the bigger decliner yesterday was china. there's the msci china etf, this is a big gainer today. energy big decliner yesterday. banks, retail, tech, lagging a

little bit but improving in the last few minutes. what's lagging is consumer staples, you see names like general mills, kellogg, lagging a bit. that's not at all surprising why did we rally today a little bit of less concerns about the evergrande contagion, a little bit hopes for a dovish fed. those are plausible explanations don't kid yourself, it's not entirely clear nobody knows exactly i think the big note overnight was s&p's comment on evergrande. i think this did help calm things down a little bit we believe the chinese banking sector can digest an evergrande default with no significant disruption we think the hit can be manageable not to be a spoiler, similar comments like manageable were made about mortgage-backed securities in 2007 and we all know how that turned out i'm just saying, i don't think it's a lehman moment, either but we learned on knock-on

effects in 2007 that we don't necessarily know anything about and i think there are potential knock-on effects here. take a look at an intraday basis, we had a 5% correction yesterday. there's a lot of reasons why people are concerned outside of china. we have the china risk, the delta variant, the fed tapering coming up, supply chain, labor issues, a debt ceiling and tax uncertainty. earnings estimates have stopped going up and it's true they have stopped going up in the last few weeks and there's a very simple reason why they've stopped going up because we're in a bit of a dead zone right now analysts are not original. they wait for the companies to report and then they do revisions. so we're going to now start getting companies that are reporting. we had one today, we had auto zone, the numbers were terrific from auto zone not only were the earnings way above expectations, comps, 4.3%, that was a positive number they were expecting a negative number

they've had a huge buyback program which is definitely helping their earnings overall that's a key player today. what else have we got? you're going to see other big names out there, fedex after the bell they've been talking about price increases and we're going to have costco and nike, carl, these are two big global companies that you want to look at costco, mostly in the u.s., but nike global. they've give us a much better indicator of where things are. back to you. >> see you in a bit. it's time for the bond report see how treasuries are fairing this morning as we check out yields the two-day fed meeting begins today. ten year just south of 1.32. dow is up. we'll be right back.

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time for jim and stop trading. >> a lot of people say, wait a second, autonation just lost a wonderful ceo. they have this fellow, mike manly, is coming from a dutch manufacturing company. the head of american and he said this guy is important. i thought a lot of people would sell the stock knowing this is the premier play on new cars. i want to encourage people to not sell because this guy reinvigorated jeep and it's a great coup to get him. so, don't sell autonation on the fact that -- i happen to love

michael but this guy's good and don't sell it on that. >> and azi -- >> and they keep buying back stock. anything have to do with used cars and fixing cars remains great because you can't get a new one. i've been trying to buy a car for six months >> you got a big show tonight? >> i sure do i have salesforce, because this is their week. and i have been recommending adobe since 1966, since my daughter showed me how to be an artist she uses it -- everybody who is in design, david, uses this thing. >> half a trillion in market cam, two of them, the two combined, half a trillion in market good job >> wow, did he say good job? rewienld that clip the good job clip?

>> that's all you get. >> thank you >> we'll see you at 6:00 "mad money." with jim cramer. if you wake up thinking about the market and want to make the right moves fast... get decision tech from fidelity. [ cellphone vibrates ] you'll get proactive alerts for market events before they happen... and insights on every buy and sell decision. with zero-commission online u.s. stock and etf trades. for smarter trading decisions, get decision tech from fidelity.

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welcome to another hour of 'squawk on the street. live at post nine of the new york stock exchag. coming up this hour, the president will address the u.n. general assembly we'll take you there live as soon as he starts talking about foreign policy in a few moments. dow is down after yesterday's sell off and a two-day fed meeting begins today >> a big bounce, but not a big bounce we're going to start with uber, rising after announcing revived outlooks in the third quarter. they expect some $23 billion they expect a profit of 25 million. so, much better than the previous guidance. you can see those shares are up 6.5% weir going to president biden at the u.n. right now we meet this year in a moment of intermingled with

great pain and extraordinary possibility. we've lost so much to this devastating pandemic that continues to claim lives around the world and impact so much on our existence. we're mourning more than 4.5 million people of every nation, of every background. each death is an individual heartbreak but our shared grief is a poignant reminder that our collective future will hinge on our ability to recognize our common humanity and to act together ladies and gentlemen, this is the clear and urgent choice that we face here at the dawning of what must be a decisive decade for our world. a decade that will quite literally determine our futures. as a global community, we're challenged by looming cries

where in lie enormous opportunities if we can sumen the will and resolve to seize these opportunities. work together to save lives, defeat covid-19 everywhere and take the necessary steps to prepare our selves for the next pandemic for there will be another one or will we fail to h harness the tools at our disposal will we meet the threat of challenging climate that we're all feeling ravaging eevr part of our world with extreme weather. or will we suffer the merciless march of ever worsening droughts and floods more intense fires and hurricanes, longer heat waves and rising seas? will we affirm and uphold the human dignity and rights under which nations and common cause,

more than seven decades ago from this institution will we apply the core tenants of international system, including the u.n. charter and universal declaration of human rights as we seek to shape the emergence of new technologies and deter new threats. or will we allow those universal principals to be trampled and twisted in the pursuit of naked political power. in my view, how we answer these questions in this moment, whether we choose to fight for our shared future or not will reverberate for generations yet to come. simply put, we stand, in my view, at an inflection point in history. and i'm here today to share with you how the united states intends to work with partners and allies to answer these questions.

and the commitment of my new administration help lead the world towards a more peaceful, prosperous future for all people instead of continuing to fight the wars of the past, we are fixing our eyes on devoting our resources to the challenges that hold the keys to our collective future ending this pandemic, addressing the climate crisis, managing the shifts in global power dynamics. shaping the roles of the world on vital issues like trade, cyber and emerging technologies. and facesing the threat of terrorism as it stands today we've ended 20 years of conflict in afghanistan and as we close this period of relentless war, we're entering a new eraof relentless diplomacy, of using

our power to invest in new ways of lifting people up around the world. renewing and defending democracy. proving no matter how challenging or complex the problems we're going to face, government by and for the people is still the best way to deliver for all of our people. and as the united states turns our focus to the priorities and the regions of the world that are most consequential today and tomorrow, we'll do so with our allies and partners through cooperation and multilateral institutions like the united nations to amplify our collective strength and speed, our progress towards challenges. it's a fundamental truth of the 21st century within each of our countries and as a global community that our own success is bound up in others succeeding as well.

to deliver for our own people, we must engage deeply with the rest of the world. to insure that our own future, we must work together with other partners our partners, towards a shared future our security, prosperity and very freedoms are interconnected, in my view, as never before and so, i believe we must work together as never before i prioritized in prioritizing our partnerships and making sure they're central to america's enduring security and prosperity we have reaffirmed our sacred nato alliance with the article five commitment. we're working with our allies towards a new strategic concept that will help our alliance better take on evolving tletsz of today and tomorrow.

we renewed our engage wmt the european union a fundamental partner tackling issues facing our world today. we elevated the quad partnership among australia, japan and the united states to take on challenges ranging from health security too, climate to emerging technologies. we're engaging to focus on people's needs for better health and better economic outcomes we're back at the table. in international forums. especially the united nations. to focus attention and spur global action and shared challenges we are reengaged at the world health organization and working in close partnership with covax

to deliver life-saving vaccines around the world we rejoined the paris climate agreement. and we're running to retake a seat in the human rights counsel next year at the u.n and as the united states seeks to rally the world action, we'll lead not just in example but, god willing -- make no mistake, we'll continue to defend our allies against attacks, including terrorist threats, as we prepare to use force if any is necessary but to defend our vital u.s. national interests, including against on going and imminent threats. but themission must be clear undertaken with consent of the american people and whenever possible, in partnership with our allies u.s. military power must be our

tool of last resort. not our first. and it should not be used as an answer to every problem we see around the world indeed, today, many of our greatest concerns cannot be solved or addressed through the force of arms. bombs and bullets cannot defend against covid-19 or its future variants to fight this pandemic, we need a collective act of science and political will we need to act now to get shots in arms as fast as possible. and expand access to oxygen, tests, treatments to save lives around the world and for the future, we need to create a new mechanism to finance global health security that builds on our existing --

and a global health counsel that is armed with the tools we need to monitor and identify emerging pandemics. so that we can take immediate action already united states has put more than $15 billion towards global covid response. we've shipped more than 160 million doses of covid-19 vaccine to other countries this incloouds 130 million from our own supply and the first traunchs of a half a billion doses of pfizer vaccine we purchased to donate through covax. planes carrying vaccines from the united states have already landed in 100 countries. bringing people all over the world a little dose of hope, as one american nurse tuermed it t me a dose of hope direct from the american people and importantly,

no strings attached. and tomorrow, at the u.s.-hosted global covid-19 summit, i'll announce additional commitments as we seek to advance the fight of covid-19 and hold ourselves accountable around specific targets. on three key challenges. saving lives now, vaccinating the world, and building back better this year has also brought widespread death and devastation from the borderless climate crisis the extreme weather events that we've seen in every part of the world, and you all know it and feel it, represent what the secretary of general is rightly called code red for humanity and the scientists and experts are telling us we're fast approaching a point of no return in a literal sense

to keep within our reach a vital goal of limiting global warming to 1.5 degrees celsius every nation needs to bring their highest possible ambitions to the table when we meet in glasgow. and then we have to keep raising our collective ambition over time in april, i announced the united states ambitious nuclear goal under the paris agreement, to reduce greenhouse gas emissions by 50 to 52% below 2005 levels by 2030. as we work towards achieving a free energy economy with net zero emissions by 2050 my administration is working closely with the congress to make critical investments in green infrastructure and electric vehicles to help us

lock in progress add home towards our climate goals. and the best part is it's not just good climate policy, it's a chance for each of our countries to invest in our sselves and our own future it's an enormous opportunity to create good-paying jobs for workers in each of our countries and to spur long-term economic growth to improve the quality of life for all of a our people and we have to support the countries and people that will be hit hardest and that have the fewest resources to help them adapt. in april, i announced the united states will double our public international financing to help developing nations tackle the climate crisis and today, i'm proud to announce we'll work with the congress to double that number again, including adaptation efforts this will make the united states a leader in public finance

and with capital from other donors, we'll be able to reach our goal to support climate action in developing nations to deal with these crisis, we're also encountering a new era of technologies and possibilities that have potential to release and reshape every aspect of human existence. it's up to all of us to determine whether these technologies are a force to empower people or to deepen repression as new technologies continue to evolve, we'll work together with our democratic partners to insure that new advances in areas from bio technology to quantum computing, 5g, artificial intelligence and more are used to lift people up to

solve problems and advance human freedom. not to suppress descent or target minority communities. the united states tends to make a profound investment in research and innovation. working with countries at whether stages of economic development to develop new tools and technology, to help tackle the challenges of the second quarter of the 21st century and beyond we're hardening our critical infrastructure against cyber attacks, disrespecting ransom ware networks, working to establish clear rules of the roads for all nations as relates to cyber space reserve the right to respond decisively against cyber attacks that threaten ourselves, allies orert inests try to level the playing field,

so it's not artificially tipped in favor of any one country at the expense of uth rbz and every nation has the right and opportunity to compete fairly we will strive to insure that basic labor rights, environmental safeguards and intellectual property are protect said and that the ben if thes of globalization are shared broadly throughout all of our societies. we'll inform the guardrail of international engagement for decades, that have been essential to the devoeelopment nations around the world bedrock commitments like freedom of navigation, ad herance to international laws and treaties. reduce the risk and enhance transparency

our approach is fully grounded to the values we agreed to when we drafted the charter these are commitments we all made and are all bound to uphold as we strive to deal with the urgent challenges, whether they're lodge standing or newlymerging, we must deal with one another. all the major powers of the world have a duty, in my view too, carefully manage their relationships. so they do not tip from responsible competition to conflict the united states will compete and will compete vigorously and lead with our values and our strength we'll stand up for allies and friends and oppose attempts by stronger countries who dominate weaker ones, whether by changes to territories by force or disinformation but we're not seeking, say it

again. we're not seeking a new cold war or a world divide into ridged blocks the united states is ready to work with any nation that steps up and pursues peaceful resolution to shared dchallenges even if we have intense disagreements in other areas because we'll all suffer the consequences of our failure if we do not come together to discuss the urgent threats like covid-19 and climate change or enduring threats like nuclear proliferation. united states remains committed to preventing iran from gaining a nuclear weapon we're working with the p5 plus 1 to engage iran diplomatically and seek a return to jcpoa we're prepared to return to full compliance if iran does insame

sim similarly, we seek diplomacy for denuclearization of the korean peninsula and concrete progress with tangible commitments that would increase stability on the peninsula and region and improve the lives of the democratic peoples of korea we must remain vigilant to the threat terror imposes on our nations, whether we're in different regions of the world or in our own backyard we know the bitter sting of terrorism is real. we've almost all experienced it. last month we lost 13 american heroes and innocent civilians in the heinous attack of kabul airport.

those who commit acts of terrorism against us will continue to find a determined enemy in the united states the world today is not the world of 2001 though and the united states is not the same country we were when we were attacked on 9/11, 20 years ago. today we're better equipped to detect and prevent terrorist threats and we're more resilient in our ability to repel them and to respond we know how to build effective partnerships and dismantle terrorist networks by targeting their finance and support systems, countering their propaganda, preventing travel, as well as disrespecting imminent attacks we'll meet terrorist threats that arise today and in the future with a full range of tools available to us. including work in cooperation with local partners so we need not be so reliant on large-scale

military deployments one of the most important ways we can enhance security and reduce violence is by seeking to improve the lives of the people all over the world who see that their governments are not serving their needs. corruption fuels inequality. siphons off a nation's resources. spreads across boarders. and generates human suffering. it's nothing less than a national security threat for the 21st century around the world, we're increasingly seeing scitizens demonstrate their discontent and wealthy getting wealthier while the vast majority of people struggle to find a job or put food on the table or get their businesses off the ground or simply send their children to

school people have taken on the streets in every region to demand that their governments address people's basic needs, give everyone a fair shot to succeed and protect their god-given rights in that chorus of voices, we hear a common cry, a cry for dignity, simple dignity. as leaders, it is our duty to answer that call not to silence it. the united states is committing to using our resources and our international platform to support these voices, listen to them, partner with them, to find ways to respond that advance human dignity around the world for example, there's an enormous need for infrastructure in developing countries but infrastructure that is low

quality, nat that feeds corruption may only end up contributing to greater challenges for countries over time done the right way, however, with transparent sustainable investment and projects thank rispond to the country's needs and engage local workers to maintain high labor and environmental standards, infrastructure can be a strong foundation and allow societies in low and middle income countries to grow and prosper. that's the idea behind the build-back-better world. and together w the private sector in our g7 partners, we aim to mobilize hundreds of billions in infrastructure investment we also continue to be the world's largest contributor to humanitarian assistance, bring food, water, shelter, emergency

health care and other vital life-saving aid to millions in need the typhoon rages disaster in the world, the united states shows up well be ready to help. and at a time when nearly one in three people globally do not have access to adequate food, adequate food this last year, the united states is committing to rallying our partners to address immediate malnutrition and insure that we can sustainably feed the world for the decades to come. to that end, the united states is making a $10 billion commitment to end hunger and invest in food systems at home and abroad since 2000, the united states government has provided more than $140 billion to advance health and strengthen health systems and we'll continue our

leadership to drive these vital investments to make people's lives better every single day. just give them a little breathing room as we strive to make live said better, we must work with renewed purpose to end the conflicts that are driving so much pain and hurt around the world. we must redouble our diplomacy and commit to political negotiations, not violence as a tool of first resort. to manage tensions around the world, must seek a future of greater peace and security for all people in the middle east. the commitment of the united states is no question our support for an independent jewish state is unequivtle but i continue to believe a two-state solution is the best way to insure the future, living in peace along side a viable sovereign and democratic palestinian state.

we're a long way from that goal at this moment but we must never allow our selves to give up in the possibility of progress. we cannot give up on solving raging civil conflicts, including in ethiopia or yemen where war between parties is drawing famine and human rights violations against civilians, including a use of rape as a wep often war. we'll continue to work with the international community to press for peace and bring an end to the suffering. as we prur sue diplomacy across the board, the united states will champion the democratic values and go to the very heart of who we are as a nation and a people freedom, equality, opportunity, and a belief in the universal rights of all people

it's stamped into our dna as a nation and critically, it's stamped into the dna of this institution, the united states, who sometimes forget, to quote the opening words of the universal declaration of human rights, quote, the equal and inalienable rights of all members of the human family is the foundation of freedom, justice, and peace in the world. the founding echos of the united nations puts the rights of individuals that center of our system and that clarity and vision must not be ignored or misinterpreted the united states will do our part but be more successful and impactful if all of our nations were working towards the full mission to which we are called

thaltsds why more than 100 nations united around a shared statement and the security council adopted a resolution outlining how we'll support the people of afghanistan moving forward. laying out the expectations to which we'll hold the taliban when it comes to respecting universal human rights we all must advocate for women, the rights of women and girls to use their full talents to contribute economically, politically, and socially and pursue their dreams, free of violence and intimidation. from central america and the middle east to africa and afghanistan, wherever it appears in the world we almost call out and condemn the targeting, racial, and ethnic religious minorities, whether it's in northern ethiopia or anywhere in the world, we all must defend the

rights of lgbtqi individuals so they can live openly without fear, whether it's camroon or anywhere as we steer our nations towards this inflection point and work to meet today's fast-moving challenges, let me be clear. i'm not agnostic about the future we want for the world the future will belong to those who embrace human dignity, not trample it the future will belong to twheez unleash the potential of people, not those who stifle it. the future belongs to those who give their people the ability to breathe free, not those who seek to suffocate their people with an iron hand authoritarianism, the authoritarianism is in the world may seek to end democracy but they're wrong.

the truth is the democratic world is everywhere. it lives in the anticorruption activists, human rights defenders, journalists, peace protesters and on the frontlines of the struggle in bell ruse, venezuela and everywhere in between. it live said in the brave women of sudan who withstood violence and oppression to keep working every day to defend their democratic progress. in the proud maldovens, who helped deliver a landslide victory with a mandate to fight graft to build a more inclusive economy. it lives in the young people who harn harness the power of the vote for the first time to denounce corruption and chart a new path for their country. and while no democracy is perfect, including the united states, we'll continue to

struggle and live up to the highest ideals to heal our division we facedown violence and insurrection democracy remains the best tool we have to unleash our full human potential. my fellow leaders, this is a moment where we must prove ourselves the equals of those who come before us with visions and value. build our united nations, break the cycle of war and destruction, and lay the foundations for more than seven dig aides of relative peace and growing global prosperity. now, we must again come together tew firm the inherent humanity unite said us morethan any disagreements. we must choose to do more than we think we can do alone, so we

accomplish what we must together ending the pandemic and making sure we're better prepared for the next one staving off collective climate change, increasing resilience for the impacts we're already seeing insure human challenges are not a source of greater strife and repression these are the challenges that we'll determine what the world looks like for our children andground chldn are and what they're inherit. we'll only meet them by looking to the future. i stand here today for the first time in 20 years, the united states not at war. we turned a page all the unmatched energy, will, and resources of our nation are andarbly focussed on what is ahead of us, not behind. i know this.

as we look ahead, we will lead, we will lead on all the greatest challenges of our time, from covid to climate peace and security human dignity and rights but we will not go it alone. we'll lead with our allies and partners and cooperation from all those who believe what we do this is in our power to meet these challenges to build a future, to lift all of our people and preserve this planet. but none of this is inevitable it's a choice. and i can tell you where amare cistands we will choose to build a better future you and i, we have the will and capacity to make it better ladies and gentlemen, we cannot afford to waste anymore time let's get to work. let's make our better future now.

we can do this it's within our power and capacity thank you. god bless you all. [ applause ] >> that is it the president. a big commitment on issues like national security, nuclear disarmament, the pandemic, climate, trade, cyber security not just in international forums like the u.n., nato, but individual countries with whom the u.s. may have other disgremts, the u.s. saying all nations have responsibility to manage relationships so competition doesn't translate to conflict a big reversal from his predecessor. >> that's right, carl. in some ways, president biden laying out a vision of what he is calling a divisive decade where the u.s. will seek to end existing wars and refrain from starting new ones and try to level the economic playing field

through what he is calling a chapter of intensive diplomacy even though this is a year's long recalibration of sorts by the u.s., the seeds will be sewn in the coming weeks. there is a fleuree of engagements coming up in the next two weeks, whether it's the g20 or apex held virtually, hosted by new zealand in november all these conversations are going to take place when the u.s. ended relationships with the closest allies is fraid. there's the chaotic withdrawal from afghanistan what europe sees as a slow walk back to transatlantic travel and what france sees as a surprise cancellation of a $40 billion nuclear powered submarine contract that led france's foreign minister to say

perhaps the biden white house's foreign policy is akin to what president trump was doing with america first. certainly there are going to be a lot of difficult conversations that nide to be held before the u.s. can look outward. when president biden said we need to prove ourselves, i think global partners would agree. >> caller: on the heels of the president's address to the u u.n.ga interesting bounce market wise we're looking at a gain of 230 points on the dow as we rebound from one of the worst days of the year but currently dow's up 99. let's bring in art cashin, who described yesterday as a rather rough day. not a disaster but rough overall. what were your takeaways and thoughts as we work our way into today's session?

>> i think there were a couple of strange things we saw yesterday. number one, was a pronounced weakness in cryptocurrency we showed you it was more of a concern about liquidity. since they are a currency on assets that has liquidity. pressure was put on them i think today, what we're seeing is a little bit -- the fact that it appears to be a rather locized threat so far doesn't look like something that would become global that doesn't mean it's not a problem. it does look like this property developer will have some difficulty paying people off it does look like it may be localized. i would like to point out what i've been saying for weeks and

that is some of these ships by president g, i think are a kind of populous attempt, i suspect, without having anything in my hand to prove it, that he's beginning to sense there is a undercurrent of unrest in china that we don't have any political polls and he doesn't need a vote of the population as a whole but prior governments in china, over 3,000 years, have fallen when there is public unrest. i think hee sees wealth being concentrated and that's something that has kpaexacerbat our problems we talk about seasonality. the equinox is a particular

point of volatility, all the way back to legendary traders like gan, and others. gan said september 22nd may be the most important date in any year we're right here it's going to be a critical week if we fail to hold the rebound, that will be a problem if they roll into negative territory, traders and viewers should watch you can't afford to make a lower low than yesterday that will be a problem >> i'm so glad you brought up the seasonality part and especially the where the autumnal equinox, which is tomorrow i mean, we're still on pace for the worse month since last september. are there technical or fundamental reasons you see this type of weakness at this type of

year or is it just a historical point that needs to be acknowledged by traders and investors? >> i tell you i've been studying it for over 60 years in this business early on, up until 1939, 1940 something, you could explain it because we were very much an egrierian society. so, money would shift from city banks to country banks, when people, the farmers had to pay for seeds and planting and fertilizer and things like that. and then the money would reverse and shift the other way when they had to pay for the crops to get wheat to make cookies and whatever thp that made sense. that made september, october, and may and june critical periods for the market

but long ago, we wound up with more smoke stacks than haystacks and yet it's there i don't know if it's what doctors call a phantom leg god forbid, if you had a arm removed, the missing wrist is itching. i'd like to give you a better explanation but i see it happen year after year. and next year, as we get to the autumnal equinox, i will tell you to fasten your seatbelt. >> and part of your thoughts involve fed drift and that's the inclination of the market to rise a little bit. you say it hasn't worked under powell i assume you expect that pattern to repeat? >> yeah, it's fascinating. it's been documented by no less than the fed staff themselves.

if the markets have had a drift. upward and particularly going into the 2:00 announcement or now into the press conference at 2:30 but somehow under powell, that has not happened there are some who claim because he sets the table and tries to avoid problems so carefully, that he sets the market up so it doesn't get that sudden pop when it comes out and therefore, the drift is disappearing we'll watch carefully today and tomorrow that drift is historical it's been written about by none other than the fed staff themselves but my recollection indicates under powell it has not occurred so, we'll see if we just drift into things.

the main thing is to keep this problem in china localized and if we turn negative, stay away from yesterday's lows that will be an important test >> all right great stuff. appreciate that very much. >> my pleasure >> well, it's time for our e trk f spotlight. ticker jets. it was aiming for the fifth straight day of gains. it's down about a quarter of a percent right now. this we've been watching following the biden administration's move to limit travellers on a variety of countries. we got that announcement yesterday ahead of the u.n. meeting. the group is out performing s&p in the last months of trading. in the meantime, we'll be right back stay with us the major averages hanging on to

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comcast business powering possibilities. welcome back to "squawk on the street." s&p global ratings analysts say evergrande is likely joining us is a former goldman sachs vice chairman. i do want to get to evergrande and possible systemic risk fears where that specific company is concerned in china but first, the fact we're coming off a nearly 35-minute speech from president biden at the united nations in which he did say that we are not seeking a new cold war or world divided by ridged blocks and spebt spent so much time outlining a vision, without ever mentioning china, but a vision geared towards

strategic competition between these two countries. want to get your thoughts and takeaways on how the relationship evolves and what it means for trade, economics and national security. >> i think certainly he does not want a big open confrontation with the chinese on the other hand, lots of the things going on in washington and this recent deal with australia and britain has indicated the united states has determined to take a tougher position, visa vie china and i think biden feels there's public support and support among republicans and democrats, both, to do this on the other hand, we've seen there's a lot of interdependence and what's happened in china now, with the markets has had an effect on our own markets. the climate issue is very closely intertwined.

and also what we do about the future of afghanistan. because one thing they're worried about is terrorists like isis could have a new base in afghanistan. so, there may be areas, relative to terrorism, we're going to have to work implicitly or explicitly with the chinese, at least to contain the fundamentalism and potential terrorism emanating from that country. >> yeah. i wuntder what -- i wonder what you think the potential investment implications are. it's something they've been focussed on in recent days

in china, is there a more fundamental reversal, if you will, under president xi where that country'sz bpolicies and, i guess economic approach are concerned? >> i would say that this has been emerging for a time, even under president hu there was a bit of a shift toward tougher positions vis-a-vis private, particularly large private high-tech companies under president xi it's increased dramatically. i know president xi somewhat because he was the head of xiajong province and i kept up with him and he was very pro-private enterprise then. i think what's happened is two things one, he wants to demonstrate that the party is in control he does not want separate power centers emerging in the private

sector, particularly in the big private sector companies that then have grown in terms of their influence and power in china and internationally. and second thing he wants is a greater degree of equality art mentioned this a moment ago. i think the issue is a broader one, and that is, that when you see really good companies and big companies and people making a lot of money, it accentuates what are still inequalities in china both within the cities and between some of the eastern cities and central and western china. so, he wants to at least address those two things but the main thing is that he has to demonstrate and wants to demonstrate that the party is at the center, this party calls the decisions and each big company now there are party committees that are consulted before any big decisions are made and that the government will have the

final say on very large decisions such as land fundraising efforts or large mergers or large acquisition for competitive reasons and also to show that the party is running the country and not big private sector companies >> as we're having this conversation, we're actually at session lows and the dow is now negative down about 14 points. so just fractionally you're seeing red on your screens same for the s&p 500 and the nasdaq bob, as someone who counsels clients with cross-border assets, would you be making investments in china right now >> i would be very cautious about it now until we see how this all plays out i do think the chinese economy is still going to grow at a pretty rapid rate. and if i were an american company, i would still not pull out of china i would be very cautious about making large, new investments. i think the chinese want to have growth and if you do it on their terms, that's fine.

i think, though, that the questions of intellectual property protection, trade secrets are important. and the chinese are particularly interested and committed to making sure that both chinese and foreign companies follow the letter of chinese law particularly when it comes to any trust issues and the way you deal with information. the chinese want to keep information that's developing in china in china they don't want it spread around the world. so, american companies, if they're familiar with the chinese culture and they worked in china, i would not suggest pulling out. and i would say that new investments are perhaps in some cases profitable but the terms are going to be tougher. the government is going to be tougher. and companies are going to have to be very cautious in the way they make new investments to be sure that they're aligned with

government policy to the extent they can be. some of them find it difficult to do that but the government now is exercising a much more watchful eye on companies of all kinds and taking a much tougher position companies have to reconcile themselves to that reality >> bob, thank you for joining us today. >> always a pleasure ♪ we want to reprise the story we first brought you at 9:26 eastern time draftkings made a roughly $20 billion stock and cash offer to acquire the uk online sports betting company entain now the offered price is said to be roughly 2,500 p, that was significant premium to the trading price before we brought you this news. it is made largely of stock but i'm told as well includes a significant cash component moments ago, entain confirmed it

received a proposal from draftkings to obtain the company. it did not detail the value or structure of the offer draftking went public back in 2019 of course it benefitted from the pandemic and a number of states opening themselves up to legal online gambling. entain attracted interest itself from other suitors in the past in fact, earlier this year it rejected an all-stock offer from mgm. now that deal entain said at the time significantly undervalued the company was worth 380 p for .6 shares of mgm after being rejected, mgm retreated. they do share an important online sports betting partnership here in the united states that is called bet mgm and while mgm has nothing to do with the draftking bid for entain, it could benefit from any bid should that move forward given the rights that mgm has in

that u.s. partnership with entain the specifics of those rights are not completely clear, i am told mgm's consent is required for any deal involving the u.s. assets of enain. according to people who have knowledge of their partnership and would have an important seat at the table should entain engage in talks with draftkings. morgan, as well i hear they may be more amenable to draftkings given it is solely digital as opposed to mgm of course has a lots of bricks and mortar in addition to that important partnership that they have with entain here in the states. we'll see if it advances we have entain's confirmation. important consolidation perhaps afoot in this industry and globally. >> yeah. it's interesting to see that it's a uk company where sports betting has been a part of the picture for so much longer you're talking about established infrastructure, i would imagine, and everything else. always reminds me of the

cannabis industry. >> yes. >> you're starting to see that early wave of consolidation in a new and promising emerging market. >> exactly. >> all right thank you for your reporting. >> you're welcome. j&j out with some positive new vaccine data meantime for its covid booster shots. meg terrel has more on that for us meg? >> hey, morgan johnson & johnson of course is the only single-shot vaccine out there available right now. there's been a lot of questions do the 14 million or so americans who've gotten j&j need a booster and if so, how much help does the booster give highly anticipated data on a trial when you give two shots of the j b & j vaccine out this morning from a press release from the company they space the doses out by two months the united states the efficacy against moderate or severe or critical covid went up to 94% when they gave these two doses two months apart globally that was 75%, perhaps reflecting some decreased efficacy because of variants around the globe they also said that the vaccine,

quote, remained generally well tolerated in terms of that safety profile with two shots. now, the question here in the united states, though, for boosters is probably going to be 6 to 8 months out and j&j also looked at the antibody levels generated when you give the shots that far apart they said the six-month booster antibody levels go up 9 to 12 times compared to 4 to 6 times for a two-month booster. so perhaps suggesting the time to boost is going to be longer out from that first shot company also presented some new information about its single dose vaccine they looked at a real world efficacy study of almost 400,000 people who got the single shot they said they saw, quote, no evidence of reduced effectiveness, including when the delta variant became dominant here in the united states this went toward the end of july in the phase 3 trial, though, which was global, they did see somewhat lower efficacy against severe and critical disease from just one shot caused by variants they said this study was done in countries with a lot of the landa and gamma variants

present. so really getting a clearer picture of the j&j vaccine the company emphasizing one dose during pandemic stretches supply and provides lasting protection, but of course giving two doses is going to boost you up guys >> so, meg, we're expecting the fda to potentially release decision on the booster shot for pfizer's covid-19 vaccine as soon as tomorrow based on some headlines i've seen what's the timeline for j&j now? >> well, it's really interesting, morgan. we weren't really sure and yesterday dr. fauci told holly jackson on msnbc we're talking about moderna and j&j boosters potentially becoming available in two to three weeks. that seemed sooner because we haven't seen the fda go through the process. the j&j submitted them to the fda. could we see them holding these meetings in the next few weeks

possibly but what we'll see play out this week right now is just for people who got the pfizer shot the booster for them morgan >> okay. meg terrel, thank you for bringing us the latest. quick check on the markets to end the hour here the s&p down ever so slightly. the dow basically at the flat line the nasdaq, though, slightly higher that's going to do it for "squawk on the street. "techcheck" starts now ♪ ♪ happy tuesday. welcome to "techcheck. today, the story was going to be a bounceback from yesterday's selloff, but that bounce has disappeared. all averages in the red or just about a flatline we're looking at semisoftware, big tech versus small and what moves kathy wood made to rebalance her portfolio yesterday. what should you do or no