relatively calm after yesterday's rally, the dow is now on pace to break a three-week losing streak we'll show you what's moving right now. evergrande investorsare in limbo awaiting news from the company on an $83 million interest payment due yesterday we'll take you live to beijing where they're trying to make crypto trading illegal a look at that, too. and a 1.4% plus ten year, too. so all these things are happening this morning finally the cdc director overruling an advisory panel and approving the covid booster shots for millions of front line workers, we'll tell you what's behind the decision, friday september 24th, 2021 "squawk box" begins right now.

good morning, everybody. welcome to "squawk box" here on cnbc i'm becky quick with andrew ross sorkin and joe kernen. yesterday the dow was up 1.5%, for the best daily performance since july the s&p 500 was up by 1.2% and the nasdaq was up by 1%. if you look at the u.s. equity futures at this hour you see red arrows with the dow indicated down by 100 points, the nasdaq off by 85. the real story is the course of the week, remember on monday markets were down significantly, about half an hour before the close you saw the dow down by about 1000 points before it rallied to close down just over 615 points monday followed by tuesday where things were flat and wednesday and thursday things were strong and now we're positive for all three. you're talking half percent

gains for the dow and nasdaq the treasury yields, the 10 year pushing higher 1.411%. i don't remember the last time we saw 1.4 for the ten year. which is significant. >> time flies. remember we were 1.6, 1.7. >> but that was a while ago. >> yeah. we've been down to 1 -- like 1.3. averaging 1.3. 1. 25. >> should we talk crypto >> yes >> crypto prices plunging. look at the screen where things stand after a q&a statement on china's central bank we can site said all cryptocurrency transactions are illegal. you have bitcoin down, lite coin down it's in line with recent actions china has taken to crackdown to crypto, including businesses and banks for providing services for

crypto and shutting down crypto mining. >> but people were still doing it because they were able to do peer-to-peer stuff >> yeah. >> peer-to-peer, if you have a small percentage of $2 billion -- whatever 1.5, it's still active no mining. there can only be -- it's weird because you can only mine so much if it's not mined there, the maximum amount to be mined is mined somewhere else that didn't matter and individuals were still basically able to play with it with peer-to-peer i don't know what this means can you make it illegal and what happens? what's worse, what if you get caught playing a video game for more than three hours on a weeknight or get caught with crypto. >> my guess would be this. >> or if you have four kids? >> i don't know. >> i don't know how do they enforce these things >> bitcoin still at 42 and change looking at the second largest economy making it illegal you

would think it would have larger ramifications. >> i don't want to live there. i made the decision. >> we got that drift i didn't harbor any illusions about that. >> you didn't think i was headed -- >> no. >> there's no delay with eunice really i could rent an apartment there and have the camera or an ipad, so you want me to go to china. okay. >> just when the weather -- when the weather turns here >> yeah. it's always going to -- with the amount of coal they use it's always going to be warm there pretty soon. an update on evergrande saga, stock there lower. the company has not said whether it plans to fulfill the interest payments on the u.s. dollar bond the interest payment was due yesterday, totalled $83 million, as of this morning the company hasn't made any announcements or filings to the hong kong exchange leaving investors in limbo. if no payment was made, the

company will not default unless it fails to make the payment in 30 days. we'll take you to beijing at 6:30 eastern time. you could be doing that report yourself from there. >> i follow some people on the golf channel, big day. it's been three years since there's been a ryder cup i wouldn't say this if it wasn't on the golf channel. >>. ♪ >> do not do that. that's as bad as the oi, oi with the aussies at the other u.s. open they were doing that the entire time for barty and she lost. >> we have tennis today we're talking. f federer and mcenroe. it's the same day as the ryder cup. >> so you think -- >> i'm moving on from tennis moving to the brooks koepka

controversy. we got beaten badly last time. >> what's the latest on the koepka thing >> he said -- all he was really saying is it was so different when he was in school he didn't play on teams so now he has a partner. he says sometimes a partner puts you in a bad place and i take responsibility for my crappy shots but suddenly i know we're going to lose the hole from where this guy put me. so they said, if you don't like it, don't love the ryder cup, why are you there? but then koepka last night said i was not being negative, i was just saying it's different there's always like faux controversy but a young team >> there's a nicer way he could have said that. >> probably. but the matches that start today it's sergio and jon rahm versus jordan spieth and justin thomas right out of the gate. how awesome is that out of the

gate this is a nike story, it's a sports story i'm allowed to do this and you heard the first thing i said, golf channel and peacock. >> but it starts the same time that "squawk box" is still on the air. >> it's one big family you go on msnbc like every day why do you do that when you're competing against your -- >> big interview. >> when you're competing -- we have a big interview with roger federer at 8:00 a.m. and john mcenroe. it's the same family, yes. >> nike shares, golf channel family, nike shares under pressure the supply chain congestion is hurting its business more than previously anticipated lower its 2022 outlook to account for the longer transit times, labor shortages and prolonged shutdowns in vietnam nike produces half of the footwear and apparel in vietnam.

during the most recent quarter the revenue missed estimates as demand in north america softened but the company sold more goods to shoppers at full price. you can see that's not helping the dow at all this morning because nike is a dow component. >> this is the sacme we heard from fed ex, you hear it from more and more companies that supply chain issues are catching up with them, labor is an issue and that's going to have concerns about what the earning season is going to look like >> that's transitory again, where they get that -- >> not so much. >> they say that but sometimes things don't come back down. >> even jay powell this week made it that it's not as transitory as they thought. >> costco in the news bringing back purchase limits on goods that were in short supply early in the pandemic. i don't know why, you know -- why it's toilet paper.

>> i read a story this week toilet paper was being -- >> why why? >> i don't get it. >> why is the toilet paper so dear >> people behave -- you know, they it -- it's the mentality that this is muscle memory at this point they go back to what they were doing a year and a half ago. >> the company's cfo said it would limit the amount of -- i see it's in the copy but it doesn't explain why it's in the copy is it because the horror you would feel if you went to reach, if you're in a common place and you realize, oh my god, and you ask someone next to you, can you pass it underneath the -- >> spare a square. >> toilet paper, paper towels, bottled water. these limits aren't prompted by a surge in demand but supply chain. there are two to three week delays in getting merchandise delivered because of supply chain disruptions.

costco's revenue jumped 17% from a year earlier and comp sales rose 9.4%. >> that doesn't make sense to me how do you say it's not from a surge in demand if you have plenty >> exactly >> maybe it's a supply chain issue. >> it could be both. they can't restock it as quickly. but you don't have plenty and also set limits on things. >> i kind of get it. personally i splurge now on good toilet paper. >> but you're not saying you can only buy two rolls >> i don't splurge on anything. >> in this last pandemic there was a pallet full came into the supermarket so i bought a great big amount and it was the crappiest, thinnest, worst stuff. >> i got stuck with that too. >> i'm still dealing with it i'm folding it over, folding it again and again. >> usless. >> it's still bad. >> so i splurge now on charmin.

>> i always have. >> much more expensive but it's a towel almost nothing is going to -- it's strong, soft and it's squeezable. >> reaching new lows are we. >> not really. are we >> i don't know. this gives me a visual i don't want to -- >> you don't have to think about me. >> as you're rolling over your hands and -- >> i can't even. i can't even. >> he wants out of this. >> it's in the copy. >> this part of the conversation is not in the copy. >> you just want good toilet paper. >> when we come back, futures are under pressure this morning with stocks on track for gains we'll talk strategy after this as we head to a break. check out shares of apple, the ne new iphones go on sale today most reviewers say it's incremental upgrades over the

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pushing averages into the green this week. we're joined by jj kenhan and maggie patel jj let's start with you. buying the dip here, is that the retail investor, the institutional investor doing that or both >> given the velocity we've come the last few days i would think it has to be both. i don't think the retail investor alone could have driven us this much to the upside what's interesting, again if i look at the stocks it's usually apple and microsoft that our retail clients tend to start with in terms of the buy the dip mentality. this time apple again was a primary, as was tesla which are two stocks along with microsoft where people tend to turn. but interesting a couple other stocks people bought on this dip this time, that being amd and

nvidia which aren't two you necessarily see. a strange place to start but where people went for. it's interesting to watch the sector going forward based on that activity. >> is that because of the chip shortage, do you think, jj >> probably, becky there's been a lot of, you know, up movement in that space over the last month and a half anyway so i think people were looking for some bargains there and you're hitting on something with the chip shortage. this evergrande story, these things don't go away after one day. we saw one big day move on it. they tend to come back and, you know, first weekly, then maybe monthly. let's face it. brexit could come back any day it's still out there for a while it was all we talked about. so these stories, as i tell people, for the first few weeks particularly you have to be very careful that may pop up its head

and we have the bottom drop out one day suddenly and for the first two weeks after a story like that breaks really you have to tread with caution in my opinion. >> every time i see evergrande i want to say evergrande not just because of the starbucks coffee cups but because of ariana gr grande let's talk about the correction that investors are waiting for are we still waiting >> yes fundamentals of the u.s. economy are too good and the fed is being too accommodative to really even 5% looks kind of a push we have faints here and there and then the market comes back too many people are bargain hunters and they're expecting a 15% correction, when that happens they'll pile in, expecting interest rates to jump up and then pile in to buy bonds. so that says there's too much

money on the sidelines so we'll get that correction. >> let me ask you about the things we've seen in the headlines this week. we were talking earlier about nike and the concerns about labor costs, supply chain issues, we've heard it from if he can -- fed ex and home builders so there are a lot of sourcing issues that are going to show up in these results. >> we've seen that already, some companies are preannouncing and talking about both of those factors. that's one of the concerns in the marketplace and will companies be able to maintain these record profit margins they've enjoyed so when they get the smallest in revenue they have terrific profits. we think the market is going to look through these temporary issues, temporary pushups like from supply and look at the bigger picture what's happening for sales. nike is a great example where they had the push pulls in

supply chains but the demand was, frankly, a little soft. we think we'll see that separating in the third quarter. those companies maintain margins or can look through the margins because they have good fundamental growth. >> how big of an impact did the fed have on retail, are they looking closer at individual companies results? >> i think everybody has to watch what the fed is doing right now. we've seen this bigger movement toward individual equities in terms of what people are buying but overall the fed is still the overlooming story in terms of the whole market i think you saw the power of it because evergrande being the big story, you know, monday, by wednesday the fed had kind of overruled that, if you will, in terms of everything they said leading to this incredible rally. so the fed has to be the number one thing everybody is watching because we saw how quickly anything they say can light the match to the upside or actually, i think, had they said some

other things kind of put a real damper on the market and continued that downward spiral again, they may not necessarily be trading index product based on the what the fed is saying bah but everybody has to watch what the fed is saying because the rising tide lifting all boats and then make a decision which rising boat, if you will, is going to be the ones that go the highest. and we saw it in the the stocks they bought this week. >> thank you to both of you this morning. have a great weekend. >> thanks, bye. coming up, overnight breaking news, the cdc director overruling her own panel and authorizing vaccine boosters for front line workers we'll talk about it next right now, a look at the biggest pre-market gainers and laggers in the s&p 500 at pnc bank, we believe in the power of taking steps forward. moving ahead. whatever the pace.

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welcome back to "squawk box" this morning the cdc director overruling an advisory panel which yesterday endorsed covid'sbooster for older americans and vulnerable people but not those at risk in work place and institutional settings then the director aligned with the fda wacbacking for those ine work place megatur rejoins us a lot of eyebrows raised this morning. >> reporter: yeah, according to legal stole lares, the government has overruled its advisers like this one time in 2004, around a smallpox vaccination. this is breaking with tradition. but it does align the cdc's recommendation for a pfizer

booster with what the fda authorized on wednesday. dr. rochelle walensky in a statement from the cdc overnight, showing how much she had to deliberate on this after the meeting wrapped at 5:00, endorsed the recommendations for people over 65 and in long-term care facilities living there, also people between 50 and 64 with underlying health conditions cdc said a booster should go to those folks. a booster may be right for people 18 to 49, that should say, with underlying health conditions and those at risks because of their jobs or institutional settings that is the sticking point dr. rochelle walensky saying in a pandemic even with uncertainty we must take actions that we anticipate do the greatest good. so they added two hours of debate about that last point yesterday. people in settings because of their jobs getting more exposed to covid there was a worry it seemed from

a lot of the advisers who voted no this kind of opens the door to essentially anybody who wants a boost erand leaves that to them to make a decision about their own individual risk. some people said some people might be anxious and a booster wouldn't necessarily help them from the data but could add additional risk particularly for young men at risk of piemyocardi from the mrna vaccines at least after the second dose. this does align the cdc with the fda but you wonder why we had the even-hour meeting with the advisers if it was going to get reversed by the director anyway. right here you can see the number of people who got each different vaccine and who are six months out from their second dose for pfizer, the only folks eligible under this, you have more than 20 -- this is wrong. 22.5 million people who are six months out and almost 12 million seniors who all become eligible now for moderna and johnson &

johnson you have millions of people still waiting. >> there are people who are going to say the biden administration is playing politics with this and frankly, i don't know if it's in the same way, but in the same way that people were concerned that the past administration was playing politics with this do you think that's a fair thing to say >> yeah. people have spoken with have asserted that both administrations have been playing politics with this to some degree. this administration has talked a lot more about letting its scientific groups lead all of this i was having a conversation with somebody last night who was deeply involved in both administrations in different ways who was saying maybe the biden administration let their scientific advisers lead this too much we have the situation you have the fda committee voting and then the fda and cdc committee voting and the cdc you get these mixed up recommendations and everyone is like what am i supposed to do some people think there should

be more unified leadership from the administration but other people are saying the biden administration set out last month they wanted folks to get boosters regardless of what the scientists say they're going forward with that. there's a lot of debate with that, and folks in public health say there needs to be clear guidelines. >> you and i were going back and forth yesterday while this was happening. you and i both talked to a lot of different people who were concerned they didn't give the approval to people working in high-risk situations, teachers, doctors and nurses and there's been a lot of criticism about some of these advisory boards, whether they are living in the real world and seeing what happens. of the scientists who are on the boards, how many of them are actually in hospitals seeing the real fallout of this because some of the questions you're talking about, will this mean that anybody can think they can get something? it's different than the people -- there are a lot of doctors and nurses who work in

hospitals who were frustrated with the advisory panel saying they can't get it. people on twitter saying come down and intubate patients with me and tell me i'm not eligible for a booster shot maybe that's the question, too it's disconcerting there are so many different opinions and watching this play out it leads to concerns that people may have to getting vaccines to begin with how much of this is people living in the real world and people looking at the science and anticipating there could be the additional problems if we don't keep tight control of every single thing happening. >> the advisory group is a mixture of people in research settings and clinical settings the issue at the root of this is the lack of really good data the data we're relying on, in some ways it comes from multiple studies in the u.s. but also israel there's a criticism we don't have better data here in the united states. >> whose fault is that

the cdc is not tracking this stuff. the agency responsible for this is not tracking breakthrough cases at an up to date pace. >> they're saying they're doing it through different cohorts, etet ceteras, but there's criticism from that. one folk in particular from the cdc part of this advisory group who are arguing people in care giver settings with a vulnerable child or parent should also be considered for a booster dose. she was saying she has cared for children with covid and those family members would really like the opportunity to get a booster and to know they are protecting themselves better from passing something along to a vulnerable child or family member so this really did get fairly emotional, fairly real yesterday. there were two hours of debate on this, the advisers then voted it down, the cdc didn't include that group she stuck with the fda language, it seemed at one point the cdc was going to

broaden this out even though the director overruled the advisory group and made it broader, she didn't make it that broad. >> crazy to watch. thanks, meg. coming up we'll take you live to beijing for the latest on china's crypto crackdown and an update on the evergrande saga that's next. as we look add yesterday's s&p 500 winners and losers this is how you become the best! [music: “you're the best” by joe esposito] [music: “you're the best” by joe esposito] [triumphantly yells] [ding] don't get mad. get e*trade and take charge of your finances today. [crowd cheering]

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good morning, back to "squawk box" on this friday morning, i want to show you futures right now. we are in the red across the board, dow off about 68 points, nasdaq opened down 75 points, and the s&p 500 down about 15 points perhaps the bigger story, cryptocurrencies this morning. >> yeah, under pressure this morning after a report said that china's central bank described crypto transactions as illegal eunice joons joins us more on that and an update on evergrande's saga. let's start with bitcoin, we heard it before but is this time more severe? what's the signaling coming out? >> reporter: it is the central bank issued a laundry list of more activities that should be banned, saying this would help mitigate some of

the hype over crypto so some of the differences in this laundry list, one had to do with overseas exchanges, which the chinese government said that overseas exchanges that offer chinese residents services are now considered illegal, that activity and that chinese nationals who work at those exchanges can now be held responsible. they also pointed out that anyone found violating any of these activities and violating financial order are subject to investigation and then for the first time, they named certain cryptocurrencies that should not and cannot be circulated in china, those are bitcoin, ether and tetter what was also interesting is there's no ban on crypto possession so that is one activity that a lot of people in the cryptocurrency world here have

been watching. because they felt if china went that far to ban possession, that could have a major impact on cryptocurrency trading as of now the chinese government hasn't gone that far but it's still this crackdown is still much broader than before you mentioned evergrande, the saga has now shifted to a 30-day window in which evergrande can still settle the interest payment on a dollar denominated bond there has been precedence for this before but mainly for companies that are smaller than evergrande so they haven't had the same size and scale most people now are focused on the -- their hope that evergrande is going to follow through with one of the recommendations of the financial regulators and that is to communicate more with their bondholders in order to try to avoid near term default. that was one of three recommendations from the financial regulators, the other

two being to address some of the housing issues make sure those homes are delivered to chinese people and then also to address the wealth investors and make them feel as though they are going to be a top priority so there's a hope for that but for evergrande we have seen more signs of stress not only for evergrande but also in the chinese property sector. so for evergrande specifically, it lost a shareholder as of yesterday chinese estate said they're selling $32 million in their stake and they plan to get out of the company all together. and then, just in some local media reports, the local officer of the developer sunac is appealing for policy assistance now because of what they said is a turning point in the real estate industry. and then fland land options wen unsold it's often been seen as a place on the rise because of all the

business that goes on in that city >> we have to run quickly here, but it does seem that what evergrande is saying about its investors valuing the wealthy var investors and wanting them to know they're a priority is a counter to the government's own focus and what they want to see happen >> i think the government wants to ensure that the small guy, the mom and pop investors. >> if you're wealthy. >> not if you're wealthy but you make these investments in wealth management products. these are products that evergrande had been offering and people are visiting the offices saying we want our money back. it's that level of disruption to society, that's something the government does not want to see. >> understood. eunice, thank you. coming up we'll talk new

york city real estate. that's next. and then later, the debt standoff in washington senator chris van holland on the latest from the hill we're coming right back.

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as the country continues to reopen, renters in new york city are facing steep increases as deals and discounts that were popular during the pandemic begin to fade away joining us is bill ruden, chairman and ceo of ruden management company. >> billy -- >> he's here >> andrew. >> good to see you very optimistic and a great cheer leader for new york city. >> yes, he is. >> so we always, you know, point that out because we hear really good things from bill. we also try to get to maybe some of the things that aren't so great. and -- but it's -- we're

reopened, bill that's what's weird. i keep looking for delta variant signs that the reopening is sort of hit a bump in the road and maybe it isn't, but there's traffic, there's people, there's -- are we fully reopened or does it have an asterisk >> good morning, good to see you. i speak the truth, joe i said it in may when i was on we were headed into, with the vaccine rollout and other factors headed into a very hopefully positive and reopening and we're not fully reopened, but if you watch the u.s. open last sunday and you saw for those two weeks the thousands and thousands of people who came to new york city and the finals, the two women were unbelievable and then the young lady who lost, ms. fernandez when she

talked, you could see how upset she was but she hopes she can be as resilient and strong as new york was over the last 20 years after 9/11 to come back and play in the open. so that's the determination and grit and optimism our city has the facts are there. the announcement the other day about google buying their building on the west side for over $2 billion, 1.7 million it's interesting, back in 2009 all the faang companies had a presence in new york city, about 300,000 feet today it's almost 10 million feet that's the headlines in the journal yesterday. there's an article in the journal today talking about how technology companies, companies like google, facebook, microsoft, have established a significance beachhead in new york why? why are they here? they're here because of talent the talent is highly educated,

diverse, motivated, and that -- those are the key things for companies to grow their business and yes, we do hear the -- the beeping of the horns and traffic and people are back. the restaurants are filled do we have issues? yes, we always have issues joe, i've always been totally open about the issues. but you had on the other day, andrew, you interviewed the democratic nominee for mayor, the election is in a few weeks, and he talked about his key issues, one, two, three, four, five is crime. how do we deal with crime. crime actually has been going down but that's a key platform. but he also talked about how to operate and run the city in a much more manageable way we had to do that during covid, look at the operating expenses but this mayor-elect has talked

about how important it is for businesses to work with government to create jobs, economic opportunity because the things we want to do as a city can only get financed if people are here and working and creating jobs. >> he made that point that tax the rich, too nasty to the rich or threaten them too much and it's like, okay, now they're gone how does that feel you got what you wanted and now you got no tax dollars and you cut off your nose to spite your face let me ask you about commercial versus residential it seems like -- i don't know if one would lead the other you don't go back to the office, you may not be renting a place in new york city but if you're -- you know, does commercial business like business air travel, does that come back after everything else, bill or is it already back?

not everybody is back in the office people push back the day they expect people to come in but you're still signing leases i guess for the future thinking this is a monthly thing versus a yearly thing. >> last month was a record month in commercial leasing, over 2.5 million feet, 400,000 feet downtown, a company we were lucky to get into move into our building to move back, cedar health another technology coming they're tripling their space daily bay is leaving one of our buildings to another building, so companies are looking at the horizon, understanding they need to take space and expand, but you ask the question at the beginning what leads what's leading now and it's been consistent since january is the residential market

in spite of the rhetoric about taxes and people moving to florida, in august there were 8,300 leases signed in manhattan, that's a record the previous record was 7,600 the month before and the month before, 74 these are the highest numbers since, i think, 2007, in terms of residential leasing so my view is that this is the leading indicator. people are coming back to live in the city. they're coming back in anticipation of going back to work and people will -- every ceo every head of real estate i talk to, they are planning to come back to work, as opposed to a year ago when i was on, we didn't know what was going to happen. >> bill we got to run but a quick question are you seeing a shift in what the work place actually looks like a retro fit? one of the things we're learning is in an open floor plan it's hard to do a zoom meeting. if you're meeting with a client having people standing behind

you in a group or talking in front of you is actually all of a sudden a complicated situation. >> i -- the building right behind you, three times square, i told you about before, we're doing a major renovation, we're close to making a few deals there, which is very, very exciting we're sighing plans, looking at what the design is, i think it's back to the basics of there are going to be open space but there's going to be offices, more conference rooms. so i don't think you're seeing a dramatic shift in the design of space. but we're, you know -- what do you it's almost 7:00 in the morning and there are people on the street people are coming back. >> bill rudin, great to see you. thank you. appreciate it. when we come back, a lot more this morning. talking new survey data that says gym customers are overwhelming in favor of vaccine mandates we'll address this with our next

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. back to "squawk box," our next guest is calling on the entire fitness industry to mandate covid-19 vaccines finding 86% of respondents to a survey found people would be more likely to come in if the vaccine were required and 38% did not want to come back until vaccines were mandated fritz lanman joins us now. it's a fascinating survey. i'm curious what you're hearing from gym owners across the country. >> we are publishing this data on this broadcast and afterwards sharing the survey results in a blog post. we had no idea when we went out

to survey our customers and we were ecstatic that -- not because of political or ethical reasons but because customers are overwhelmingly vaccinated in the studio fitness industry and we have gyms and pools and other types of customers, they prefer vaccination mandates that's the key to bringing people back to classes and fitness. >> i assume you talked to gym owners over your network the past year now about mandates and the like what's the response you've heard? >> i think there's been a lot of questions, right so really it's come up in the context of government-imposed restrictions so different people have had different feelings about vaccine mandates, mask mandates, 6 feet apart rules, capacity restrictions but our data suggests the only thing that's going to work are vaccine mandates 38% of customers won't go back without some form of a vaccine mandate, 59% don't want a mask

customers don't believe that 6 feet apart is going to keep them safe. they believe vaccines are going to keep them safe. so they're asking owners to impose these restrictions that they can come back to class. they won't come back until they feel safe. >> where do you stand on things like testing, perhaps in lieu of mandates or potentially in certain cases in addition to mandates i will tell you i am completely vaccinated and there was a window this summer i went to barry's boot camp a bunch of times but now that we're starting to see breakthrough cases and the like, barry's you're on top of each other in a place like that, and i now think to myself, maybe not such a great idea right now >> yeah, you're absolutely right. you're reflecting the sentiments of our customers even if they are vaccinated, upwards of 93% of our customers are vaccinated or in the process of getting vaccinated. if there's a bad outbreak, they simply won't go to class

so it's a combination of requiring the vaccine but also getting the caseloads down is going to be required when we see a customer go back to one fitness experience they go back at 110% of their prepandemic workout regiment so people are very keen to get back into the experiences. but if they don't feel safe, they simply won't go back. >> that's my final question because we have to run in a second do you think, ultimately, the same number of people who went to the gym before, will go to the gym afterwards i say that as somebody who now bought a treadmill during the pandemic, i bought some weights, i have all sorts of stuff, a lot of people invested in some home something and how that changes in the future? >> we were wondering if there's a shift to digital and that's not what we've seen. we've invested energy in launching live stream classes and workouts there's a large business and segment of customers who prefer

at home workouts our customers are different they want the instructor, 81% say they work out harder if they go back to a class. they want the sense of community and i think they would be willing to do things like testing if, for example, rapid tests were widely available to get back again, i don't think any of us would like to impose a vaccine mandate but if that's what it's going to take, people are keen to get back to the in-person experience we have to make them feel safe. >> you are right i need my trainer. i need them just to -- because i know i have to show up that's like 90%. but i'm going in there, no mask, i assume everybody is vaccinated i go in the sauna, i go four times a week, and i guess i wish everyone, if they're not, because i don't want to get a break through. >> as i slowly move away from the table. >> we have i.p.o.s here and you look like hiding under your desk

you have to live your life. >> thank you great to see you again. >> live your life. when wco bk,e meac dr. scott gottlieb is with us. what you need to know about the recommendations -- in 2016, i was working at the amazon warehouse when my brother passed away. and a couple of years later, my mother passed away. after taking care of them, i knew that i really wanted to become a nurse. amazon helped me with training and tuition. today, i'm a medical assistant and i'm studying to become a registered nurse. in filipino: you'll always be in my heart.

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activities are illegal and vowing a harsh crackdown we have the details straight ahead. the white house preparing for a potential government shutdown as leaders grapple with crucial deadlines. we'll get a live report. and more covid vaccine conf confusion. the cdc director at odd with her own agency's panel over who qualifies for the booster shots. more with that with dr. scott gottlieb as the second hour of s "squawk box" begins right now. good morning, and welcome back to "squawk box" right here on cnbc i'm andrew ross sorkin along with becky quick and joe kernen u.s. equity futures about two and a half hours before we're set to open, we're going to open down 86 points at the dow. s&p 500 looking to open down about 17 points and the nasdaq

looking to open off about 80 points but we're going to talk a little crypto and maybe some individual stocks, joe. >> yep let's get to dom chew. >> i know where you're going. >> i know. i've been talking to some other people, people high up in the company. it's -- i don't do -- i don't come up with these things. i can't help it. how excited are you? did you see the first match? >> here's what i would say i have multiple -- first of all, anybody who's seen the overhead shots of our news room knows i have five or six screens on my desk i brought my personal ipad in the office so i could stream it on peacock and have a sixth screen on my desk at 8:00 when peacock picks up one screen is dedicated to "squawk box" and all the other ones are my computer screens and

everything else. >> last thing i'll say and then you can get to the important stuff. we have mcenroe and federer coming on. i don't know what's wrong with men's tennis you look at the lady's side, those two young players, you see how people play when they're not nervous, see how people are able to play when they're not thinking of losing points. that's what we got with xander schauflee and more cow a >> it's a great pairing with cantlay and xander if anybody watched the playoffs, you can't help but root for cantlay because he was so clutch i'm told 20 move on right now. so i'm going to move on in this

process here to those things you were talking about and to andrew's point, so many individual story lines and headlines driving the trade right now. we'll bring you china's crackdown on cryptocurrencies, the strongest language to date about the anti-cryptocurrency stance calling all bitcoin transactions illegal. that's having an effect but not as much as you might think bitcoin is off 6%, but it could be more. we've seen more volatility in cryptocurrencies on the chinese comments in the past etherium below 6,000 down about 10%. and two of the most stocks we associate with the crypto trade, coinbase down about 3% and microstrategy which owns bitcoin out right, down about 5% so another one to watch is interest rates and how they're

affecting the banks. interest rates never really shuttered at all, got flustered at all during the evergrande crisis on monday just about 1.3% for 10 year note yields then saw them creep up to 1.41% all of that and an expansion of widening of the yield curve, the difference between long and short term-term rates over the last week, j.p. morgan up, bank of america up, and citi group up as well. so watch that as interest rates climb higher, if they do so. nike shares, revenues fell shy of analysts' expectations, cut the forecast, why joe? because they cannot make enough stuff to keep up with the demand it's a supply issue. nike is taking note of it. still up about 7% but down about 4% to the pre-market trade it is a dow component so we

watch it closely, joe. i'm going to go back to watching the ancillary ryder cup coverage along with "squawk box" coverage. >> sneakers, cars, anything with chips. actually sneakers do have chips. >> some of them do >> all right dominic chu, thank you we can go till 9:00 probably just going totally unrelated stuff. >> i'll see you back at 8:00 and we'll talk a little bit more about it. >> that's when it starts i guess i'm not supposed to say that anyway >> got two eyes you can watch two screens. >> exactly exactly. if white house advising federal agencies to prepare for a government shutdown which could happen next week been a long week, it doesn't sound like there's a lot of clarity at this point? >> it's going to be a longer week next week, becky because congress still does not have a clear plan for avoiding a show

down over government funding and the debt ceiling ahead of next week's deadline. the senate is scheduled to vote on a bill to fund the government through december 3rd, but that is destined to fail amid republican opposition. but still nancy pelosi promised a shutdown would not happen as she seemed to hint the democrats would be willing to strip that debt ceiling increase out of their bill in order to keep the lights on. >> it's a very partisan bill underneath the debt ceiling. so we don't think it will really be any problem to pass the legislation. >> but her spokesman would not clarify if that's what she meant. democratic leadership also created confusion when they announced an agreement between the two chambers and a white house on the framework for the tax provision in their big spending package however other lawmakers said the menu of options was the same as

it was before. a person familiar did tell me the strong support for setting the top rate at 39.6%, capping megairas, and ending conservation easements but that's the tip of the iceberg. a lot of decisions left to be made. >> when that's the laundry list of what they agree on. you want to get to the list of what they don't agree on >> much longer. >> right thank you. you're going to have a long weekend and next week. thank you. coming up in the next hour, senator chris van hollen will join us to talk taxes, the debt ceiling and more. coming up, the power of the latino community and their growing influence on the economy. we're going to talk to a big time, big time private equity mogul -- can we call him a mogul in this space? he's been investing in this market for a long time, 20 years

now, and he joins us right after the break. (vo) while you may not be a pediatric surgeon volunteering your topiary talents at a children's hospital — your life is just as unique. your raymond james financial advisor gets to know you, your passions, and the way you give back.

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welcome back to "squawk box" in honor of hispanic heritage month we're looking at the growing influence of latinos in the u.s. economy

our next guest has been serving the community for two decades. i want to welcome david perez. good morning to you. >> good morning, andrew, thank you for having me on the show. >> i called you a private equity mogul on the way into this, i don't know if you heard that part but one of the things i wanted to talk to you about, specifically, you have focused on this market at a time when it has been remarkable in terms of its growth and yet the -- most of the private equity industry hasn't and i'm curious how you sort of see that dynamic playing out and whether you actually think we're about to see a big shift >> well, thank you first of all, andrew, i did hear you call me a mogul and i take a little bit of an issue with that, maybe one in the making, more to come here. but i do -- but i do see -- think the growth of the hispanic market as one of the really

important trends going through the country. i started looking at this market, you know, close to 20 years ago where hispanics were about 10% of the population. today they're about 20% of the population and if we believe the numbers from the census we're getting to about 30% of the population in 20, 30 years so this is one of the greatest demographic trends that we're living through, accounts for over 60% of population growth and makes the u.s. the only developed economy in the world whose population is growing, which is crucially important for our country, national security and the economy at large and i do think that private equity is starting to notice this trend we're very early in that wave. if you look at the latino market, there are probably less than a fraction of 1% of the capital is focused on it even the practitioners in our

industry, not incredibly diverse so i think we have ways to go but the impact this group is having in the broad economy and the opportunity set that we see is something that we have been -- i have been very focused on in my careers with my partners i think you're seeing the size of the latino companies grow and then attract the attention of some of the key players in our industry. >> what do you think the biggest opportunities are right now in terms of taking the demographics that you just talked about, make the -- what -- where are the investment opportunities in terms of taking that thesis in a practical direction. >> so i mean, there are -- there are a couple there are some that you would call pure plays where you're investing in companies that are focussing primarily or exclusively to catering to that demographic. you're seeing a lot of companies do that very well in the food area, financial services,

consumer products and other aspects of the economy but what gets me and my partners sometimes more excited is by investing in a company that frankly has overlooked this trend, this demographic and hasn't incorporated it properly in their customer base or not leveraging this opportunity, investing in it and then bringing it to that focus, that knowledge and including this customer set in the growth of the company. when you look at the country, you know, close to 30% of the youth is his panic so anything that touches an urban, young population, if you're not focused on the market you're missing a ton of opportunity. you see that, some of the big public companies, walmart and others focus on that but that view hasn't gotten into private equity yet and we believe is crucially important where there is a lot of opportunities by bringing that mindset and that focus

>> i don't know if this is a complicated question for you or not, but if the biggest private equity firms in the country decided to go into the space, would you be happy or say goodness, now i have competition? >> the answer is yes probably both of them. on the one hand, i would be happy, it means that we're -- the market has recognized the size and the opportunity set there. you know, on the other hand, i, frankly, believe that competing in this market takes a different mindset. one of the things that we've done at avance is build a different firm with folks that represent that customer set and have that experience set so i think it's going to take the main stream players quite a while. remember we're in the business of gaining the trust not only of our investors but gaining the

trust of the entrepreneurs and founders who created the companies. so we believe we have an easier time, given who we are, understanding them, connecting with them and ultimately getting them to sell us an important piece in their company so i think the main stream players are worthy competitors, but i think we can hold our own going forward. >> and then the other question i was going to ask was about financing more broadly in terms of whether you think the banking community has set itself up to serve this community properly? >> um, i think we have a lot of ways to go there as well, andrew when you look at -- you know, when i look at my experience investing in this market, financial services has been an important part of it and i think part of the opportunity set has been that the main stream financial services industry has not really done a great job yet focussing on this market

the banking system, you know, this demographic doesn't have a lot of assets so in terms of lending to it, looking at unsecured loans, so not a lot of lending activity in it there's also the perception, which i think is not well founded at all, that this demographic is not -- in some cases not the greatest credit. and our experience has been the complete opposite, the hispanic demographic cares about being good citizens, paying back folks and participating fully in the financial system caring about kids, education, their reputation and so forth. so i think particularly in financial services, the opportunity set is large i'm hoping that this new generation of think tank companies and private equity players start to address that. but it's an opportunity that hasn't been met yet at all >> david we want to thank you for joining us this morning.

i'll call you a mogul you may not call yourself a mogul yet but i hope we have the opportunity to keep these conversations going and you'll have the opportunity to become that mogul that you -- but we can debate that point. great to see you. >> thank you coming up when we return, covid vaccine confusion, the cdc recommending boosters for a wide range of americans but excluded health care workers, teachers and others that put their agency at odds with the authorization of booster shots for all adults with occupational risks. dr. scott gottlieb is going to join us to break it down, discuss it, debate it, so much more it is launch day for the iphone 13. will the new phone and other upgraded products give the company's stock a boost ahead of the holiday season we'll speak with dan ives about

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>> announcer: now the answer to today's aflac trivia question. what app was created 10 years ago by computer programmer kevin systrom? the answer instagram the app was originally named burbn for his love of fine whiskey. we have a date for the beginning of the decline of civilization ten years ago. still to come, the cdc director overruling recommendations from her own advisers in an unusual move last night. we'll get you up to speed with the latest booster shots plus the iphone 13 hitting stores today this is just the catalyst the stock needs. and then in the 8:00 hour we're going to talk tennis, the return to live sports and much more with roger federer, tony godsick

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the cdc very late yesterday endorsing the distribution of

pfizer biontech covid-19 booster shots for americans who are age 65 and old wer, those in high rk occupational settings and those with health issues m megaturrel joins us with more. why don't you explain what happened meg. >> we all went to bed last night after this vote that essentially limited what the fda authorized booster shots for pfizer's vaccine for just to people over 65, live in nursing homes or who are at high risk of severe outcomes because of underlying conditions then we woke up this morning and it turned out the cdc director had overturned that decision, essentially broadened the cdc's recommendation for boosters to match what the fda recommended

the entire sticking point as you were saying is about those folks at high risk of exposure to covid because of their jobs or settings we heard from the fda on wednesday they were thinking that included health care workers but also teachers, day care workers, grocery store workers, people in prisons and other settings like homeless shelters so there was a ton of debate but advisers voted that down yesterday because they thought it opened the door to essentially anybody who wanted to walk in and get a booster shot there's a lot of debate as to how this played out and it's strange for the cdc director to overrule the advisory committee, only happened one time in 2003 for a smallpox vaccine but you're hearing others saying the cdc director did the right thing, it should be aligned with the fda and health care and other workers should be included

here guys, just a lot of back and forth. this only applies to pfizer's boosters not everybody who got moderna and j&j. >> how much longer for those people, that's the most frequent question i see people asking, if you got moderna or pfizer, how much longer should you expect to wait >> the advisers discussed that yesterday and the fda was on the call with them and said we're working with the manufacturers to do this as quickly as we can. they have moderna's apple in, they filed for a half dose of the booster which makes the situation more complicated dr. fauci indicated to hallie jackson recently it could be two to four weeks before we see boosters for moderna or j&j, which is quick because we haven't heard about any fda meetings for either of those there was a lot of push for the panel to consider folks who got a different vaccine like a j&j to get a pfizer but that's not

what they ended up voting on or recommending >> joining us right now to talk about it is dr. scott gottlieb, he's former fda commissioner, he serves on the board of pfizer. he has a new book this week called "uncontrolled spread why covid-19 crushed us and how we can defeat the next pandemic". let's go through this tick by tick when you saw the recommendations from the cdc panel where they were narrowing what the fda had kind of laid out saying that not as many people could get boosters, what did you think >> i thought it was reminiscent of what they did with the initial authorization of the vaccines back in december when they came out with a schedule on who should be eligible for the vaccines and in what order that slowed the administration of the vaccines, it was hard to follow the guidance, they had the categories, and they tried narrowly defining discreet populations of patients based on

their prioritization of need and some governorers started ignoring the recommendation made it available on age. governor lamont did a that in connecticut and that allowed connecticut to deploy vaccines much more quickly than many other states the same thing happened here where i think the cdc got overly complex in defining these different categories and created a' jet stream that was going to be complex to administer at the counter. they left some of the provisions in, so if you're 18 to 49 and you're not eligible under the occupational exposure provision and eligible under the provision by which you have preexisting medical conditions they said you still require consultation with a physician or an assessment/benefit risk. so that's going to also leave in some complexity to these guidelines even with the change

by the director. >> i mean, how is that going to be managed by the pharmacies and other places that are giving these shots out? if you go to cvs, rite aid, walgreens they ask if you fit in these, if you say yes, you go ahead. will this require people to have a note or script from a doctor i don't know how they manage it. >> i would doubt it. it's probably going to be self-attestation that you had a conversation with a health care provider who deemed you eligible for it which means a lot of people are going to ignore the provision. the worst thing you can do as a public health agency is put out provisions and guidelines you know are going to be ignored you want them to be practical so you know provider and patients will adhere to them. i think the director did the right thing overruling the advisory committee it was a close vote as well, a

9-6 vote, so it wasn't a resounding vote. so i think it was the right decision because there's a lot of health care workers vaccinated last december or january who are already getting boosters a lot of people who live in settings like prisons or assisted living facilities that may not have underlying medical conditions but the circumstances they live we know puts them at high risk for break through ininfections i think this aligns with where the public health is going to require some additional opportunity for people to get boosters >> scott my concern is this creates incredible confusion for anybody looking at this trying to figure out if they should be getting the booster or not the cdc chief overruling, you said this was a good idea we mentioned dr. jha saying it was a good idea. they're -- there's some people saying this is a political movement by the biden

administration what do you say to that? >> i think we super imposed a system that was designed for peacetime. basically this system we're seeing play out was designed to administer the pediatric vaccination schedule that's primarily what they do the fda approves vaccines for pediatric population, the cdc says whether it should go into the mandatory schedule we took that scheme for a public health crisis. we should have reimagined that process. recognizing that if you had discrepancies between the fda and cdc it was going to create confusion and fodder for those that want to sow decent and confusion. critics are going to say these agencies can't say who's eligible for the vaccine we shouldn't have allowed this process to go forward the way it should i don't know why we thought

processes for peacetime would be good in the wartime setting of a global pandemic. >> in relation to boosters, maybe this is looking out a bit. a number of companies are mandating vaccines and the like. but at some point we'll get to a situation where it's going to be hard for companies, i would imagine, to actually track who's got the booster, who doesn't when this -- when this one expires, when this one doesn't, j&j is different than moderna, moderna is different from pfizer how does this work over time >> yeah, look, i think that it's already going to be hard to track that i think probably businesses are going to certify that you've been vaccinated, you received the initial series and it's going to be hard to track whether or not people received boosters or whether or not having a booster makes you more protected in a work place setting. i don't think they're at the point they can draw that conclusion now probably it does become a

seasonal vaccine so some administration on a seasonal basis and we'll settle into a more normalized pattern. another reason the cdc director may have had to make the decision she did, in addition to the public health she did, it's the prep act it will allow the vaccines to remain under the prep act authorization from congress. that may be another reason, if cdc had deviated from the language of the fda's authorization it may have been taken the administration of these vaccines outside of the framework which would have created complexities. >> explain that. what does that mean? >> well, the prep act confirms a lot of different provisions but one of them is liability protection for the administration of the vaccine. so that confers protection of -- on pharmacies and providers who are administering the vaccines, the government effectively backstops any liability that comes out of the administration. and the prep act is based on fda's authorization. so cdc's recommendation and the

ultimate administration of these vaccines deviates too far from the fda's authorization, that could potentially i'm speculating here but something that may be the case, that could potentially take the administration of the boosters outside of the provisions of the prep act which would put pressure on providers and pharmacies administering the vaccines. >> what happens now? the cdc panel, are the members of that panel upset they've been overruled? meg mentioned this happened once before in 2003 when they were considering a smallpox vaccine >> i suspect some people will be chagrinned i was at fda when the decision was made in 2003, post 9/11 after bio she would was put in place. that was, you know, a very specific circumstance, it wasn't a broader circumstance like this so i suspect there will be advisers in the cdc who will feel their advice should be followed this was a close vote. the cdc director is well within her discretion the bottom line is the committee

is just providing advice to cdc. it's explicit that the cdc director retains the ultimate authority. there were tweaks made to the original recommendation around the administration of the vaccine back in december, if you remember initially the cdc director followed the guidance, and then ultimately hhs decided to deviate recognizing it was creating so much complexity it was slowing the uptake of the vaccine. so it has been the case in the setting of the pandemic that this has happened before again when it happened in december it was more of a staged process. they backed away from the guidelines after they realized how challenging it was to fol them. >> you talked about how the cdc wasn't equipped for this the trump administration went to extremes and you had president trump kind of tweeting his frustration with the process it seemed like the biden administration has played a little more hands off to this

point but this step from the director, from rochelle walensky, does that indicate that maybe the biden administration has reached some frustration with it too or should we not read that into it? >> i think you should. i think both administrations have made mistakes the trump administration made the mistake, they recognized the cdc wasn't equipped to handle the task of responding to the pandemic but didn't know how to reform the cdc, didn't know how to support it, provide it proper resources, just browbeat it publically, which was wrong to do the biden administration said we're not going to browbeat the cdc, and they've been hands off. i think there's a middle ground where you have to support the agency, the people there, there's very good people there, but you have to try to move it in the direction where you reform the agency and the processes by which the agency deals with public health crisis of this magnitude. they're not equipped to deal with this global public health crisis, they don't have the logistical capabilities,

resources, analytical capability so you need to align agencies closer together. in israel they didn't rely on their normal process to authorize boosters they brought together top experts from the regulatory agencies in one process, got in a room, had an open meeting in public, 50 experts, they made a decision and moved forward. that's what we could have doeb here we didn't have to follow this highly staged process where each agency acted independently we could have brought them together in one advisory committee. there's no law written saying it has to be this way we took a process for authorizing pediatric vaccines and coming up with a pediatric vaccine schedule which is highly staged, deliberative by design and it works well and super imposed it on making decisions in a fast-moving public health crisis that was a mistake, no one had the vision to see how it would play out now we have to go about reforming the processes and have a different process for a crisis

like this. >> i will say i've never been into watching fda meetings, cdc meetings and i've been hinged on what's happening the last couple weeks with this. i understand the concerns they brought up, what if this happens, will people read this into it, i get those things and not having enough data the job is to look at the data and say should we recommend based on the data. there's not enough data, part of it is because the cdc isn't collecting it. >> part of it is because of it's an ongoing pandemic. >> we haven't been collecting data in this country, they were forced to rely on data from israel and the uk, which puts them in comfortable positions that infectious diseases are experienced differently in different populations. we'll collect data now, recognizing where the gaps were, but they were put in a hard position scrutiny on what they're doing

these meetings are held in public these are ultimately political decisions they'll get scrutinized for how they weigh in there's a lot of pressure in these settings. that's why i think we should design a different process in these health emergencies when decisions have to be made on partial information. it's never going to be perfect, you'll be behind the ball collecting data in a crisis like this this process wasn't impervious we took a process dy signed to be highly deliberative and tried to use it to make decisions in a fast-moving crisis >> have you -- not that i'm asking you to violate confidential conversations you've had but i'm sure you've been talking to colleagues, former colleagues, people in past administrations maybe this administration too what's the sense you get around this? is there frustration

do they think things are going well what do you think? >> fda over time has been frustrated by the cdc process in the past even when i was at fda, meg talked about the 2003 decision there were other decisions where they made recommendations that on the margins narrowed the scope of what the fda authorization was. and that would create frustration within the vaccine group at the fda that they would be deviating, even slightly from the fda authorization. so it's not unprecedented they did that, it's unpress deferented they did it in a wholesale fashion. i can tell you yesterday there was frustration inside fda about the decision and how much they deviated from the fda decision >> dr. gottlieb, thanks for being with us. really appreciate it his new book is called "uncontrolled spread". it's out this week. when we come back, a check on what's moving in the premarket. "squawk box" will be back after a quick break.

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live shot at time square we have a big week at cnbc, cnbc delivering alpha september 29th within it's all about maximizing returns in this era. it's a can't miss virtual event. you can register right now at delivering alpha.com i'm going to speak to tim colter at tpg i know there are other massive guests on the list, talking about the world of spacs and everything happening right now in silicone valley the futures right now. where things stand an hour and a half before we set to open dow off 105 points, nasdaq down about 95 points s&p 500 down 20 points crypto prices are plunging after a statement on china's central bank website saying all

transactions on cryptocurrency are illegal. it's in line with recent actions china has taken on crypto, banning businesses and banks and shutting down crypto mining. it's hard to know what's going on this seemed to me to be in some ways not new news. we knew this it's maybe harsher language. >> they're going to crack down on vichlks probably a big deal for individuals in china involved with this stuff. when you look at the drop in bitcoin, down 7% but we were weaker recent weeks. >> cramer was on twitter this morning, if you're a crypto bull does none of this really shake you? you would think this would shake you, shake you. >> if a country is big enough

and powerful enough to say we don't want this happening anymore, do they have the ability to do that does china could it happen here i don't know the people in a position to make the decisions like that here seem much more reasonable and amenable to crypto than china does. >> china has a different goal, though they want to control everything. control people. >> make sure it's not the wild, wild west. doesn't want to crush it like china. >> we'll get a chance to crammer and anthony scaramucci, he, of course, a bitcoin bull. apple's latest iphone launching today. thstk d anorat it coulme f e ocand dan ives join us right after the break.

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apple customers are eager to get their hands on the newest iphones and ipads. the products are available in stores following last week's launch the apple store on fifth avenue getting set to open in a couple minutes. our next guest says this launch is what's working for apple right now. let's welcome dan ives managing director how much can you really gauge right now for demand given what we have seen in the past week. do you know this is hot as a pistol right now and not going to disappoint from previous launches >> yeah, it's a great question two key data points. i mean, all of our checks coming out of the asian supply chain

indicates iphone 13 up anywhere from 10% to 12% over iphone 12 in terms of what we're seeing significant out of asia. if you could preorder activity it's up on the bottom 20% and on the high end up 30% plus in areas such as china. i think coming out of the gates this looks robust. continues to be an underestimated upgrade cycle by the street and i think this is just the start of an upward trend. we think this is a $3 trillion mark cap going to 2022 >> as far as faang goes, apple is not the only one. you pick the right ones that the prospects and the next two or three years are underestimated for individuals that encompass faang. which ones and explain why it is underestimated and how big the market is. >> we're in the midst of a multi-year bull rally in tech because of this digital

transformation industrial revolution. when you look at areas such as cloud, i think microsoft just the middle innings of that massive growth going forward of course, amazon in terms of aws, that is going to continue to be massively strong and then when you look at, of course, apple. i think that continues to be our favorite faang name and then you look at areas like cybersecurity and cloud. we're just in the early innings of what i view of just a transformational tech market >> so, how did -- there's no supply chain issues. i guess that's near term for you. you're looking beyond that apple it seems have navigated better than most companies what about the others? any of those that will be cheaper three months from now based on just sentiment not being great because of supply chain or chips >> yeah, in terms of chips i think you look at apple they were really ahead of this. definitely front of the line and proactive from the chip perspective and also they own

their chips. that is more and more of the vertical integrated and i think that helped them i'll call it 2% to 3% headwind from the supply perspective on apple. now in terms of the chip shortage when you look at the auto sector and the gms and others, that's where you've seen much more of a headwind in terms of supply chain issues but i believe right now it starts to moderate going 2022. and as you said forest through the trees here i believe a lot of exogenous events and risk off and i think it's still a risk on market and that's why we have a 16,000 target for nasdaq year end >> so we've got a 1.4 on the ten year this has got to be it this now eventually with the fed tapering and everything else, the most common thing you hear is, oh, my god, tech. tech is the most, most interest rate sensitive because of

multiples and the multiples are so high. when rates go up you have to worry about tech any weakness you saw, you'd be buying >> even if we go back to the last week with everygreegreen e just an opportunity to own the sector winners that's what we're telling our clients. when you look at z scale or cloud, these dip in the opportunities is to play the fourth industrial revolution apple leading the way and the super cycle continues to play out starting today >> the macro stuff doesn't bother you specific to technology and the dynamics there all right, thanks, dan dan ives >> thanks, joe. when we come back, the debt standoff in washington we'll get the latest on the hill with senator chris van hollen. that's next. internaetional tennis tournament kicking off today roger federer and john mcenroe

all ahead of the fstir mauch stay tuned you're watching "squawk box" and this is cnbc.

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good morning futures pointing to a lower market open. major averages add on positive for the week but that might now be in jeopardy we'll speak with jeremy segel and the cdc endorsing booster shots for certain parts of the u.s. population, but in a late-night twist, the agency's director went further and recommended shots for more people doctors and teachers are now in the mix. and tennis royalty joins us in just minutes. roger federer, john mcenroe and the chairman of the laver cup. >> you can't be serious, man you cannot be serious. >> oh, yes we are serious as the final hour of "squawk box" begins right now.

good morning and welcome to "squawk box" here on cnbc i'm b and getting weaker as the morning premarket session progressed i got the nasdaq down triple digits, as well and the s&p down about 23 treasury yields are up finally this is it this is it they're going higher and 1.5 is next after that and 2 and we're definitely going up this time. that's the tenth time at least that we thought that, i would say. so, you know, the fed may taper some day maybe as early as november they may raise rates earlier maybe next year instead of the

year after maybe we're finally seeing a little bit of return to what you would think is normalcy at this point for what we're facing, becky. >> especially with so much strong demand. >> doing so well and the jobs picture improving. yeah >> is this it? would you say this is it >> would you bet your life on that >> no, i wouldn't bet my life on that i wouldn't bet my life on much >> under 90 minutes under the opening bell on wall street. dom chu here with premarket movers there are plenty of them >> anything they wanted, but not my life. to joe's point earlier that interest rate story a key focus for a lot of traders and investors today. amazing how very little movement at all during the evergrande so to speak crisis back on monday with treasuries, corporate bonds, investment grade or junk or otherwise keep an eye on that. also watching what is happening with some of the stocks in the

market right now premarket because we're kind of a wrap up of volatile week of trading. if you look at the stocks and focus today. roku shares which are down 2.5% right now. attributed to part in weakness among a downgrade to the equivalent of a neutral rating they cite competition and competitive action there roku shares down 2.5%. down negative 2% and roller coaster of a stock on roku in the premarket trading. mega cap communication services has been a big focus has it bounced back this week? yes, it has. but maybe not to the degree that you would have thought apple is actually on a one-week basis down microsoft down 0.5% and even with the volatility and the kind of bounce back we've seen here so, there hasn't been a huge amount of this kind of buying as opposed to the reopening trade that involves oil related stocks and a dynamic to keep a close

eye on and then as we do in this hour oftentimes a check on the most popular ticker searches on our website cnbc.com from yesterday's full session, i will just make a caveat here. the ten-year treasury note yield is number one, it often is these are some of the individual stocks that were the most searched our tickers top ten involves names like apple and salesforce.com and the revenue guide there and nike shares on earnings and tesla and fedex, as well apple, salesforce, nike, tesla, fedex and highlights from the top 50 are on my twitter feed. i'll send things back over to you. >> thank you, mister@thedomino. vote to fund the government before it runs out of money next week and opening the door to delinking and something that democrats have wanted to do together joining us right now chris van hollen

good morning to you, senator we were talking about this yesterday and help us with this, in some ways this could just be done tomorrow given the control that democrats have. so why is it so important to get republicans onboard? >> so, when it comes to the senate as you know, while we have 50 out of the 100 senators, there's also the filibuster rule so, what that means in the senate is that republicans can block a vote block a vote on keeping the government open as mitch mcconnell has said they plan to block a vote on raising the debt ceiling, despite the economic chaos that would cause. so, as you well know in the senate, senate rules provide -- >> happen to reconciliation? >> what's that >> this can't happen through reconciliation >> you can't put it through reconciliation right now, no the budget resolution doesn't provide for that and still begs the question why would mitch mcconnell block a vote on the

debt ceiling through the regular process? >> you can't raise the debt ceiling through reconciliation, senator? someone told me that we decided that was possible. >> that's if you put it in the original budget resolution the budget resolution that passed the house and the senate does not create a provision for budget reconciliation, for debt ceiling. so, i suppose you could go through voter rama, again, but that is not going to happen. >> you could do it you could do it. >> what happened here is for mitch mcconnell and senate republicans to do now what they did three times during the trump administration which was to vote to increase the debt ceiling, because they all acknowledged if you don't that, it will have devastating consequences that's the question. why won't they do that >> that's their way of trying to make sure that the $3.5 trillion doesn't happen i heard nancy pelosi say a lot

of bipartisan stuff in that bill that they don't want that to go through. and the journal has a piece today really 5 to $5.5 trillion if you take away all the sort of all the slight of hand and if they don't raise the debt ceiling, that's a way that they can stop that. but if you don't tie to that, you can do it. but you're insisting on tying that to it >> two things, joe as you know, the debt ceiling was paid to the bills that owed and a lot of things senate republicans voted for in december and the cares act and many run around the country talking about they saved small businesses to the ppp program and expanded high-speed internet and now time to raise the bill or raise the debt ceiling to do that they're no where to be found this is about paying bills and with respect to the reconciliation bill, we're going to pay for it. i mean, we hear a lot of people

complaining that we're going to outreform the corporate tax code and increase taxes on the very wealthy. so, we're planning to pay for it that doesn't add to the debt, as you well know. >> senator, there's been, you know, joe just talked about the $3.5 trillion plan as a $5.5 trillion plan. some democrats talk about it effectively as a $1 trillion plan because they claim that certain elements of it are paid for. i'm a believer nothing in life is black and white what do you think the actual number is. if it were to go through and we had the conversation ten years from now and we can look at it re retrospectively. >> you know, i don't know the answer because that's the subject of discussions right now. you know, my view is rather than pick a number of out of a hat, we ask ourselves what it is that we think we need to be investing in right now do we want universal early education? i say yes. do we want to make child care

more affordable? i say yes. and then we have to be able to pay for it, which is why it's hypocritical for our republican colleagues to say they don't want to raise the debt ceiling to pay for past decisions and investments because democrats are planning to do rec reconciliation bill which they're planning to pay for. >> a separate question for paying for it and this has to do with taxes two things that seem to me to be somewhat hypocritical especially given where i thought some folks were during the campaign one is the issue of carried interest democrats have long complained that carried interest is a remarkable loophole. i've made that similar case. and here we are, i think this debate began in 2007, it's 2021. the democrats are in power and for reasons that i don't understand, effectively carried interest will persist. it may not persist exactly the same way, but there will still be a benefit given to private

equity executives that are just a different way we're taxing those individual, we're privileging those people over just about every other industry in the universe. why is that? >> well, i agree with you. that should not be the case. i'm not happy that that's not included >> but you have colleagues these are your peers these are your people. >> yeah, but, first of all, it's interesting you make that point. we don't have any republicans supporting this, which, of course, means in the senate we need all 50. and not surprisingly not all 50 agree on everything, theincludi that you're exactly right >> senator, you're not going after the big fat cats you're going to get either. you're not going over the top very wealthy but the wealthy you know the top 10% pay 70% how much do you want the top 10%

to pay >> it's very strange to go after all the wage earners but not actually go after the real wealth i don't understand it. >> actually, this is something that's being negotiated right now. i do believe that we should be making sure that you can't pass on huge amounts of wealth from one generation to the other. that is a big loophole in our tax code obviously, we can establish a very high threshold that would be exempt from that. but this is something that's being discussed right now. i mean, what you're referring to is the house sort of framework, the house of representatives framework but right now we're still working on that menu of options as senator schumer mentioned. i happen to agree with you that we need to get at some of the huge transfers of wealth that go untaxed. >> okay, senator van haulen, always good to see you we hope you come on back

especially as this debate continues to heat on up and we'll see what happens thanks andrew and when he was in the center i thought we should have leaned in and we could have popped him like a grape. let's try to do. >> let's not try to do the sandwich, guys >> chris van hollen sandwich >> anyway, when we come back, an interview with roger federer, john mcenroe and the chairman of tennis' laver cup and the return of live events next, though, what was it like inside robinhood during the gamestop short squeeze we're learning new cdetails. let's get a live look at the apple store on fifth avenue right near new york central park customers have been filing in to get their hands on the new iphone 13, which is being released today stay tuned quk x"ilbeig back. fill po

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newly revealed documents in a lawsuit against robinhood giving an inside look at the start up at the height of the gamestop chaos just really not totally gone at this point, i don't think, kate. kate rooney joins us now with the details. >> hey, joe, good morning. these hundreds of pages show some of the internal messages between robinhood executives back in january. for one some panic over capital

requirements and debates over how bad it could get and at least one direct contradiction of what the ceo told andrew back at the time. on january 28th, the company's coo gretchen howard messaged internally that robinhood had a quote, major liquidity issue denying that in an interview with andrew on cnbc. that same day robinhood did move to close down some of the heavy shorted stocks like gamestop and amc to position close only, meaning people could sell but they couldn't buy. and in response to that move, another executive whose name was redacted says, quote, we are going to get crucified for those restrictions and that it was a horrible look for the brokerage industry a subsidiary of robinhood meanwhile saying that the company was too big for them to actually shut us down referring there to its clearing house. and the plaintiffs, guys, the lawyers for the plaintiffs in this case in the class action suit argue that robinhood,

quote, kept its doors open and the platform was teetering on the verge of response. in response robinhood telling us we dispute and communications are consistent with robinhood's focus to take appropriate, incremental measures to mitigate risk joe, back to you >> two things. you know, the liquidity thing i will say personally i should say bothered me. it bothered me at the time it bothers me even more now to see some of those notes in print and then given the answer that he provided on the air, which we had pushed him on. but i think the public recognized that they did have liquidity issue. the second piece that i was going to mention is there's this sort of larger conspiracy allegation that robinhood is effectively in bed with citadel and payment for order flow what do you know about that? >> so, it's interesting. the class action lawsuit in this case focuses more on the idea

that robinhood was aware of the risk going into this and it's more about what robinhood could have done to keep investors safe a separate case about the relationship with citadel and likely that the sec and regulators take up that topic rather than some of the punitive class action regulators. robinhood had a fiduciary duty to protect investors and conversations with executives and lawyers here saying that they knew this was coming and liken it to the titanic. and they say while this was happening this was inviting more people on the platform and notes about a record day for robinhood and adding new users their argument is they should have shut everything down and stop growing like a tech company in that time and really focus on the crisis >> the argument makes no sense to me. it makes some sense but i don't believe they sign up so many customers in the course of 24, 48 hours that that is what changed the dynamic for them the

next day when there was that kind of heavy volume >> more of a perception. they were talking about the super bowl ad and may have seemed distracted in terms of adding new users when they should have been focused on keeping the ship afloat. but you're right, 100,000 customers in the context of millions in a day or a month probably didn't move the needle. >> it's hard i know that people want to blame robi robinhood and say they should have known, they could have known. weeks in advance in which you would have had to be a mind reader at this moment was going to happen. by the way -- >> they called it -- >> the language that robinhood has in the terms of service and such that basically they can do whatever they want anyway. i think robinhood might have the better casein though i know it may make a lot of customers unhappy. kate, great to see you thank you. appreciate it. coming up, china's crackdown

on crypto currency we'll take you live to beijing for the latest but next, are you ready, folks roger federer and john mcenroe and chairman of laver cup joining us ahead of the big weekend for tennis waiting on the baseline to serve up some answers to our questions. stay tuned "squawk box" retnsft ts.ur aerhi ♪♪ in boxing or any other business, one day, you're gonna take a hit you didn't see coming.

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don't like surprises? [ watch vibrates ] proactive notifications from fidelity keep you tuned in all day long. so when something happens that could affect your portfolio, you can act quickly. that's decision tech, only from fidelity. the international tennis tournament the laver cup kicks off today. top three tennis players and a more impressive legacy a soldout event that has to be staged with covid concerns in mind joining us to talk about all of this is roger federer co-founder of the laver cup which is one we all know about one of the greatest tennis players of all time with 20 grand slam singles titles. tony godsick fellow co-founder and chairman of the laver cup

and john mcenroe welcome to all three of you. roger, i was hoping to talk about what this means to you and why this platform is so important. >> for me the legacy is so important that we remember it in tennis because we have a really rich history and laver was to all of us and to me that big legend that was able to win two times the grand slam winning all four majors in the same year and he is also the one that went from amateur sport to professional sport so, that's where the idea came in once i arrived in shanghai that we could do something for the legacy of the game and incorporate all the young ones coming through and learning from the best like john and bjorn as an example and having the rivals

become teammates and the first three have been great in chicago. >> john, you are ubiquitous when it comes to tennis any tennis fan knows you and this in particular with working with some of the younger players. what does it mean to you and how do you think your chances are versus team europe >> well, first of all, becky, i want to say hello to "squawk box. where's joe? >> i'm here. >> joe is avoiding me because he was on my show, you know, i did a show on cnbc and i think joe is my most frequent guest and at that time you were lower taxes for the rich because i heard a segment you just talked about. >> nothing's changed nothing's changed. >> that's what i'm going to ask

bezos and zuckerberg are doing okay you doing okay with them paying no taxes at all? >> we just had that discussion >> answer the question >> in the tax bill, we're not taxing them again. we're just taxing merely wealthy people like you. >> you just need to come sit where i sit. >> some things never change. and you still got your wig on, right? >> still got my wig on you know what, when did you finally leave because i barely recognize you but i look exactly the same which is kind of weird >> it was 17 -- my golf game has gotten better. >> john, i was going to say something really nice about you. but, becky, i think we need to talk to tony for a second. >> i didn't even answer the question yet >> let john answer the question and then joe is fired up about this, john he has a ton of things for you

>> i have a million things, johnny >> just hang on. go ahead, joe, it's your show. >> no. i told you, we should not allow stock to appreciate, borrow against it and that's not in this bill. they ignored that and they ignored carried interest now, you know, if you figure out a good way to do that, i'm for that it is not going to solve our problems because there is not enough money even with all the billionaires but what i was going to say to you was and i don't really feel like saying it now, you're not worthy we may not know who the greatest tennis player of all time was. maybe it's laver and the three generational guys. you have one of them sitting there. >> maybe it's federer. >> how do we have three guys, generational players that will never see that happen again that we were so blessed to have those three. you are by far and i'm not blowing smoke, the best tennis

analyst. if you're not there, i'm getting the full picture of what's going on and you know that, i think people must tell you that all the time, right? >> well, thank you for that. i appreciate that. you know, as you know because you're doing it in your show every day it's easy to be the back seat driver we should do this, we should do that i'm thankful that i have the opportunity. go ahead go ahead then i'll answer the question. >> for example -- >> anxious over there. >> for example when you talk, i want to talk about men's versus women's tennis because in the u.s. i don't even care we don't have a u.s. guy with these three guys with those three, i'll be sad when they're no longer around. but women we just have, it was so amazing what we saw this year was it not didn't you enjoy that, mcenroe >> i did enjoy it very much. you had some totally unpredictable things take place. unheard of almost as crazy as, you know, what we've been going through in

the last 100 years it's been a tough time for a lot of people. and so to come out the other end and have full capacity crowds and have an 18 and 19-year-old one of whom qualified, that hasn't happened in the history of our sport that is part of roger, let me finish now roger is trying to bring back with this laver cup is to think out of the box do something different you know, it's an individual sport. i love team sports i played team sports and this has been a huge success. so, i'm quite hopeful that i'll be part of it a little bit longer my days are numbered because i lost all three times i'm under the gun right now. but i've loved being part of this the players have and the fans are pumped up. so, the tennis has to think outside of the box more to get themself back in the mix over to you, mr. federer and mr. godsick. >> tony, let's jump into you because the whole reason for this cup you're an amazing agent because

you know what people want. people want to see these legends and see play in this way how did this come about and how are you dealing with the covid changes? sold out event this year after being canceled last year. >> yeah, thanks, becky we wanted to do something to honor rod laver and his fellow barn stormers who took off four and a half years to usher in the professional game. we were really into the ryder cup and we really liked what they were doing. how good where rivals become teammates. and this gave an opportunity for rivals to be on the same team. so, we just sort of sketched out a piece of paper and the format is what works. so, we've been very fortunate to have this is our fourth sellout since we started in prague and people love it the players get together these guys are killing each other day in and day out on the tour so giving them an opportunity to sort of be on a team for one weekend would be great now, in terms of covid, it's true it was a tough year we had to

take last year off obviously, the whole year was suffering. we decided we needed to run it this year and we've got three levels of protection here in boston and the city of boston has mandated masks and everyone in the building will have to wear masks and we said everyone on top of that that has a vaccine card needs to show it and you need to show pcr test within 48 hours. for us the most important thing this year here in boston is to provide a healthy event and you see it wimbledon had full crowds and the u.s. open did an amazing job and full crowds and we'll have full crowds here. we're certainly very excited for this weekend >> roger, can we talk sneakers because you are now an owner not a wage earner. john will go after your taxes after this is all done just had the ipo i'm curious what you're thinking about this business. i'm very curious what it actually looks like in a couple years from now and whether it looks and even if you can get directionally into the places of the nikes and the adidases and

the other big brands does it look like that or look like something else to you >> well, i mean, it's been a very sort of exciting last two, three weeks. the last few months getting ready for the ipo and speaking to all the investors and i think the guys are extremely happy how everything went, the excitement around right now is huge i'm wearing the laver cup edition and it's wonderful working with them. they're a wonderful group of guys and they have their goals set very high. i am very confident about the future and, of course, following the stock on a daily basis right now even though i'm told don't look let'ssee in a few years where they're going to be. i think very exciting brand right now and i'm happy to be part of them i just played in wimbledon and the entire year actually in the new roger pro shoe that i designed together and it's been a wonderful partnership. they live down the street from me in zurich and i see them all

the time i spend 20 days working on stuff with them and many, many more things to come and maybe working on a new shoe already as we speak. me, personally, i'm excited about on and excited to be part of that team >> one thing getting back to the sport itself one thing i was trying to compliment you on was you yourself at one point when you got on the big stage, i'm not sure which one it was wimbledon or u.s. open, you were able to say you were totally overwhelmed and had to go back and build up that experience and in that way you were able to explain the situation or even to some extent naomi osaka. an immense pressure that any know what is like when you're 18, 19 years old >> yeah, i remember when i was 18 my first wimbledon i got to the semis and i played jimmy connors and my legs were literally shaking and it was

completely overwhelming. i was trying in a tiny way to compare myself to emma when she was forced to leave the court at wimbledon and not come back. the occasion got to her. and, by the way, remember, that's when crowds really started coming back. so, it was a bit overwhelming. but what happened between wimbledon and the u.s. open for her, someone should hire that person because i've never seen a turn around as incredible as that and osaka, you know, i worry about her because while i think it's important that we talk about an issue that has been going on a long time, obviously, for a lot of people in a lot of different vocations, but i think people will pay closer attention to her that worries me. but the fact that there were crowds there brought up the level. stop talking, okay >> in closing, i just want you to think of one thing. try to figure out why novak and so many other players live in monte carlo and then get back to

me on that tax discussion. >> i know the answer to that but america, i know the answer but americans can't do that. number one we should continue to tax zuckerberg >> you're doing all right. are you undertaxed, do you think, john? >> i'm happy to pay my 40%, 50%. >> do you feel undertaxed? >> do i feel undertaxed? >> no, i don't feel undertaxed i pay more taxes than jeff bezos. >> he said he does not feel undertaxed >> it's great to see you and the bottom line is, pray for us because the laver cup starts in a couple hours and rod laver is my idol and i would like to win it 0 out of 4 is not good >> very good

roger, john, tony, thank you thank you. and i was a guest six times on john's show. that's not why i don't know if i helped him or hurt him coming up veteran market watcher jeremy siegel breaks out a wild week for investors. cryptos spiraling this morning anthony scaramucci will igweh in on that story. you're watching "squawk box" on cnbc with ibm, you can do both. businesses like insurers can automate it processes across clouds. so agents can spend more time on customer needs. and whatever comes your way, you've got it covered. saving time and improving customer service, that's why so many businesses work, with ibm.

welcome back to "squawk. tough comments out of the chinese central bank and joining us again from beijing this morning. >> thanks, andrew. the central bank unveiled what it described as a high-pressure campaign to stop crypto trading. so, it comes in four points. the directive defines what's now considered illegal crypto activity it called for tighter coordination between beijing and local authorities and it unveiled what it described as an early alert surveillancesystem which the bank says now can cover everything from mining to trading and then exchanging your crypto into legal tender then finally the directive bars

noncrypto industries from supporting a crypto activity for example, an internet provider providing a networking services so, what is legal in this? crypto to crypto exchange and then crypto derivatives which is being interpreted here as nfts potentially. the other highlights in this directive is that overseas exchanges offering chinese residents services is now considered legal so could be a lot of those exchanges are still used by chinese residents. chinese nationals working at those outlets are held responsible. those violating financial order are subject to investigation by chinese authorities and then for the first time the directive actually names crypto currencies that should not and cannot circulate in china those would be bitcoin, either

and tether what it did fall short on no explicit ban on crypto possession so if you're a chinese person who does have bitcoin stored away somewhere the authorities at this point won't go after you. that's what this directive says. andrew >> eunice, appreciate that report to join us now to talk crypto and what seems like a shout across the bow anthony scar scaramucci talk about that in just a couple minutes, but, first, anthony, got to ask you about this morning's news from china. is it new or is it not the language is harsher, but hard to make sense of it >> well, listen, it feels like it's the old news being rehashed but i think it's a bigger statement from china they have more crypto activity in china than they would have

expected three months ago, they pulled all the miners out of there and banned crypto currency and bitcoin but i think what you're learning is it's in there. it's sort of it's in the system still, andrew. they don't like it they're sending out another related to it. it doesn't affect the fundamentals long term the miners have moved out. we did a little checking this morning on mining rigs a lot of those are produced in china. and it looks like those rigs are still going to ship to miners that have moved out of china so, the good news is it's more of the same but every time china makes a statement like that, it does rock the markets a little beit obviously, we think it's a buying opportunity buti'll just point this out to you. you know this, andrew. when they ban technology, it's a strike against freedom and when they did it to googal and they did it to facebook, those were

great buying opportunities for both google and facebook and we suspect that this is a great buying opportunity for bitcoin here >> just so i understand, though, if you really take china off the table forever. i mean, when you start thinking about the sort of overall thesis around bitcoin, for example, or crypto broadly do you say china is not going to be in the game does that really matter, you would think it would. >> you could never say forever, andrew things happen. political winds change and leadership changes you know, we sort of think of our political situations as calcified. but look at what happened with the soviet union and we thought that was permanent so we can't say that this is going to be forever and what is certainly i think forever is the block chain. the block chain will be with us this permissionless transaction capability and the fact that people inside of china are effectively hedges themselves by

owning blog chain is telling you what the government is so worried about. and i frankly when i look at what china is doing to corporate interests and business interests and things related to property, that's actually very good news for the united states. people are worried about the competitive dynamic with the west and going inward and centralizing when the rest of the world is decentralizing i think is a negative for china. you and i both know because we study history decentralizing things work way better than autocracies. this is not permanent. i just don't see it as permanent. >> bitcoin is demonstratively decent decentralized. some of the other currencies we have on the screen right now are not decentralized, right there is a way to go after the head of it, if you will. and so the question i'd ask around things like ethereum or ripple or some of the other

things we are looking at is whether you think there will be meaningful regulation in a way that maybe bitcoin can't be. >> well, listen, that's the big maximum statement that these other currencies have central notes if you will and less of that decentralized power that is the statement. i don't think so, andrew because there will be five or six of these currencies whether it's algarin that have used cases that people will gravitate to give you an example. you can fractionalize art right now and use etheruem to do that. we'll take the digital world and create a metamorphisis if you will with those actual currencies i'm not sure bitcoin can do that but i see it eventually becoming

a currency standard as a result of its decentralization. but those other currencies will exist. i don't think there will be 12,000 of them any more than you and i thought in the dotcom revolution that they would make it but four or five that are left standing, the ones that have the best technical properties. >> let's bring it back home for a second we have a big fight going on between the sec and coinbase, coinbase seemed to back away from it from the interest oriented product how do you see that, those types of products and the regulation around all this headed at this point. >> well, there's a bit of a stalemate. i think coinbase is going to win because as i pointed out to people they wanted to shut down uber they couldn't shut down uber because the people wanted uber and even though the regulators were trying to figure out a way to kill it, they couldn't kill it and they accepted it and started regulated. brian is a smart guy and

recognizes that he doesn't want to have that fight right now he's hbeen to washington and he explained you don't want to lose the financial engine services of the united states. we are still the most powerful country as it relates to our financial services sector. why have a brain drain on crypto and blockchain by overly regulating that system i think brian is waiting i think it's a very, very good idea for him and i think he will win this think, frankly, because people want it, andrew when the people want something, the regulators have a tendency to back off. >> let's talk about your etf how it works why you own that as opposed to owning the underlying asset. what is the thought here >> so, the thought here is that we try to put something together that was geared towards and almost had the highest correlation possible to bitcoin. you can't own bitcoin right now flat out in an etf

but if you look at that selection of securities all of which have growth rates near or over 50% in terms of their revenue growth, they will correlate to bitcoin so, things like microstrategy, the bitcoinbiners. we had a scuffle getting the word bitcoin in the name i love the crpt, the symbol. we'll be banging the new york stock exchange gavel this afternoon to close the exchange. it launched a few days ago we've got a great response to it but at the end of the day, you can't own a bitcoin etf in the united states, but you can own the firsttrust crypt etf and we think it has massive correlation to bitcoin and tremendous upside ahead. >> all right anthony scaramucci, always good to see you my friend let's get down to the new york stock exchange and check in with jim kramer. let's start with bitcoin and crypto and what china is doing and then move on to the markets.

what do you think first with this move on china if it is as serious as it sounds, surprising not to see crypto down more does it mean people are not that worried about it >> a lot of people feel like we've seen this again and again. i disagree i think this is part and parcel with xi cracking down asking for all the information. they don't want any sort of, they don't want rich people hiding money and these are ways to hide money. there's no crypto bull who is never a crypto bull. all countries could ban crypto and it's even better because we can do crypto on mars. i do not think gary gensler was against coinbase but the fact that it showed that this shouldn't be a security. i think everybody that would really love any of these wants it to be a security and regulate it but there's just a lot of people who say i want to be able to do this and not have any government regulation you know, that's the anarchy i don't think either china or the united states wants anarchy

but the chinese want to find out who's rich and the americans just want to make it so if something bad happens like tether goes under at least we have some handle on it i know the crypto, look, i owned ethereum and made a lot of money in bitcoin, but i still recognize that not everything is positive if i came out right now and said salesforce cutting numbers big and taking the numbers down but i raise, i go from buy to strong buy, i think you would say, are you out of your mind with crypto it's like, hey, listen, we're cracking down crypto and i am raising crypto to a strong buy. but crypto people are great, they're great and they're promoters. and there's nothing wrong with being a promoter just at a certain point we have to say it's not a great promoter day. >> very quickly, we have to run. but let's talk about the markets. end of the week, we're actually up for the week. red arrows for the morning but up for the week which is hard to imagine given where we were monday >> i think did a great job

navigating covid versus the economy and favoring people who are disenfranchised and at the same time we're going to do the fdic basically for the depositors but really hurt the rich people. i think he will send those people to re-education camps which has alwayscamp, which i g is a play you don't want to go to xi saved the day, powell saved the day, and the earnings last night, two for three but if you're a nike bull -- nike is like crypto, if you say something bad, people find you and have a special set of skills to where you can't say anything bad about nike. >> gym, we will see you in a few minutes. major averages soared yesterday, they overjames losses for the week, but we are lower in a few markets jeremy siegel, professor at

finance of u penn's wharton school of business professor, the new data points probably surround the most important, perhaps, market participant, and i'm not saying directly in the stock market, but we all talk about the fed, jay powell a lot we may see tapering sooner, we may see a rise in interest rates sooner than maybe we previously thought. does that factor into your calculus >> absolute lly i don't find they see forecasts credibility at all 4.2% this year, 2.2% for next year we're going to have much more inflation. i think we have a bit of a reprieve last month, but everyone knows inflation is running much more. a lot of these supplier-side

problems, you know, we didn't hear the word "temporary" anywhere as much as we did before they're going to come to the forein the fourth quarter. i think we're going to have a couple bad cpi reports it may not be until november or december, but, you know, powell opened the door, saying if things get worse, we will have to taper faster. if that happens toward the end of the year, that would rattle the market >> are you less optimistic than you were last time you were on, jeremy >> i think we can have another -- i think the road looks clear ahead for a month or two, because the fed will continue with its program and the taper ending the year, but i think when we see worse inflation, the fed is going to be pressured that's going to disturb the market that's down the line

again, we could have a market up 10% before we hit another 10% drop that's hard to picture, but, you know, i see problems early in 2022 with the market contending with the fed, pressuring the fed to go faster and bringing that dot plot, you know, further up from the very end of next year, to perhaps the middle of next year i worry, actually, about an over-reaction. a lot of the plague we were going to have is already in the pipeline it just has to show up in the statistics when we talked about how housing a way understating the inflation in the cpi and the other statistics, that's just going to come through the pipeline. the fed can't really do anything about it if they panic and say, my god, we're way behind the curve, just jack up rates, that's bad.

that will really trouble the market and the economy >> how much do you pay attention to the proposed legislation, stimulus, whether it's the original infrastructure or the human infrastructure, $3.5 trillion that we're talking about, do you pay attention to that >> yeah. >> or do you wait until it's enacted into law before you decide whether it's a positive or negative. >> i have maintained for many months i think we're going to have a infrastructure bill, which the republicans are going to join, and i think we're going to have about a $1.5 trillion bill on the reconciliation that's the bill that's going to include the tax increases. i think it's going to happen this year. i mean, i think the democrats believe it's now or never. things are not looking good for them in the next year, and they say we want to take away from tax cuts, we've got to do it,

and they're going to get it through on the reconciliation coming forward, but we're not going to have a $3.5 trillion. >> people are souring a bit on -- i guess we see so many crises, whether it's the border or afghanistan, whatever you want to talk about, have you seen this net david research highlighted by mark holeburg that a dropping presidential rating is a big plus for the stock market have you ever seen that? >> no, i know ned does great historical research. this is one of the fastest drops of popularity in any president i saw an article on that again, you know, we have more than a year until the next election a lot of stuff can happen, but i think the now-or-never for the democrats is here, and that's why they're going to bite the

bullet, come together, and pare down the infrastructure, but a pared down increase, but yes, a tax increase in the reconciliation bill. >> professor siegle, thanks. we'll check back with you. >> thank up very much. up next, we're going to -- not tell you, but suggest a few things "squawk box" will be right back. up when everything shut down. ♪ but entrepreneurs never stopped. ♪ and found solutions that kept them going. ♪ at u.s. bank, we can help you adapt and evolve your business, no matter what you're facing. because when you close the gap, a world of possibility opens. ♪ u.s. bank. we'll get there together. ♪

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squawk pod is two years old, that's our daily posit it reinvents the three-hour show, and turns it into a curated episode, and it's only about a half hour. maybe sure you follow squawk pod wherever you gets your podcasts. happy anniversary. >> and we should say, to katie cramer, the voice behind the podcast. >> the brain the dow looking to open down

we'll also show you the ten-year note trading about 1.427, so we have crept up a bit. finally cryptocurrencies on the move downward after the news out of china overnight make sure to join us next week have a fabulous weekend. "squawk on the street" begins right now. ♪ good friday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer david faber has the day off. we're watching bitcoin, fed-speak, a ten-year yield breaking out further our road map begins with china, evergrande, global investors still in limbo, and nike lower on the dow