good morning futures pointing to a nice open. a nice higher open to start the week, with only four trading sessions left in september that's this friday is october. but there's some drama in d.c. infrastructure legislation, a bigger spending bill not as big as before funding deadline and a looming fiscal cliff, a live report from the nation's capitol is coming up plus the question many ask daily. when will normal life return we'll tell you what pfizer's ceo said and what he thinks. it's monday, september 27th, 2021 "squawk box" begins right now. ♪ good morning, welcome to "squawk box" here on cnbc. i'm becky quick along with joe kernen and andrew ross sorkin.

and after all the twists and turns from last week, the three major averages ended the week in the green. dow up by .6 s&p up.1 and nasdaq was up by 0.02% but that's still a win let's see where we pick up this morning, you can see the futures at this hour, the dow indicated up by about 87 points. back to triple digits right now. s&p indicated up by 2 points and the nasdaq weaker down by about 51 points. treasury yields after that meeting and the press conference with chairman jay powell you did see higher treasuries across the board. yielding 1.489% the 30 year above 2% the two and five year saw the biggest increases, back to the highest levels we've seen since june then bitcoin and ether because last week was a rough one for

the cryptocurrencies bitcoin for the week was down by about 10.5%. that was the worst week for bitcoin since may 21st, when it was doane down by 28%. ether down by about 15% for the week you can see right now positive territory, both of those trading higher this morning as well. andrew >> in the meantime we get to today's top story, it is the drama over the weekend in washington d.c let's look at every everything investors need to be watching. good morning to you. >> reporter: good morning, andrew democrats are starting to map out a path for passing president biden's economic agenda while hopefully avoiding a government shutdown in the process. now today at 5:30 p.m. the senate will vote on a bill that would fundthe government through december 3rd and raise the debt ceiling through next year but republicans are still determined to oppose this, leaving democrats three days to come up with a plan b before the

government runs out of money on september 3rd. treasury has more breathing room before it hits the debt limit as of friday it had about $244 billion worth of cash and extraordinary measures left. the policy center projects the x-date falls between novoctober 15th and november 4th. also making a final push on infrastructure the house will start debating the bill on the floor today with a final vote scheduled for thursday president biden spoke with democratic leadership before he left for camp david this weekend and sounded confident about the bill's prospects when he returned >> i'm optimistic about this week it's going to take the better part of the week, i think. >> reporter: but, of course, this is all contingent on whether democrats can hash out an agreement on that $3.5 trillion social spending package this week as well. so guys, this really is make or break for the party. back to you. >> i have a question for you about -- i don't know if you saw it, maybe joe and becky also saw

it it was buried in a new york times article over the weekend about taxes. we knew about manchin but we didn't know about senator kyrsten sinema saying i will not raise taxes either corporate or individual taxes a democratic senator saying that and it struck me -- i was surprised it wasn't the headline of the story sort of where you think everybody really is at this point? >> reporter: it's hard to believe that she would not raise taxes at all what i've heard and sort of the consensus on the hill is it's unlikely she would go higher than joe manchin would go. there's two people at let's say 25% for the corporate rate but they have to raise taxes on corporations or on the wealthy in order to pay for this plan. it's interesting when you hear how the administration is starting to frame and move the debate away from that 3.5 trillion number which has triggered so much angst in the

party and say the net cost of the bill is zero because we're going to pay for it completely over time. so they can get away from is it 3.5, 2, 1.5, 1, and talk about the priorities -- >> the cbo doesn't score it as zero, either >> reporter: well, the cbo score has not come out yet so we haven't seen the full cost of spending because democrats haven't decided what that is even for the house version of the bill we're waiting on the cbo score for that the jcb said the tax provisions in the bill raise roughly $2.5 trillion. >> pelosi said the $3.5 trillion number is not going to be that big. is she meaning we're going to take things out or change what the cost is for all that stuff >> i think that's a debate right now. one way democrats can dial back the cost of the program is by making each of these different priorities last for shorter period of time for example, in the house

version of the bill, the child tax credit would go through 2025, maybe instead it goes through 2024, and you get a little bit of savings there. so there are different ways they can either change the eastbound end date or start date of programs to bring down the number the question is what moderates are pushing for, instead of a lot of programs that last a short period of time, they want to make what they're calling big investments in a number of key priorities that last a long time do you do a few things and do them permanently or a long period of time or try to get everything in there but then facing, you know, another reauthorization in maybe two, three, four, five years. >> sounds like a key philosophical debate if you can't figure that out, if we're going to do all the programs or a few for a longer time, maybe they're further than we think from reaching it. >> reporter: yeah, i'm not sure how they reach agreement this week

but that's what they say they're going to be doing. they said last week they had some sort of framework on the tax piece of it and what we realized with that, the framework was what the framework had always been. there is the messaging around this, and then there's being able to sit down and write out the details of the legislation >> and it -- the idea that it's free, that suddenly because we're not just adding it onto the overall debt that you're -- i mean, that's a semantic argument met with, at least in a lot of circles, the biggest eye roll i have ever seen in my life yeah, it's free. thanks in global political news social democrats in germany narrowly beating outgoing chancellor angela merkel's alliance did you know all these years she was the conservative side of things. >> yes. >> that shows you what a conservative in europe looks like stepping down at 16 years of chancellor now there's going to be coalition talks and a possible

three-way power sharing agreement. but the scuttlebutt is weakened government for years as china has ascended that's one way of looking at it, we need a strong europe, obviously, and germany is, you know, key to a strong eu if that lasts. but especially with -- >> it was a very close vote, though, between the two parties. both moderate parties, the slightly left and slightly right there. very close between them. but the two of them are not the ones combined to make the party. the center left government is going to have to go left but the liberals and the greens. so you see what happens with that the liberals don't want to raise taxes they want to expand programs the greens want to raise taxes but usually what happens when they start doing that, they get rid of the things they disagree on so maybe there won't be higher taxes on the wealthy or corporations but you can expect

they'll extend the spending. >> she's out of there. >> 16 years. she went out with higher approval ratings than she came in with. >> 70% plus. and then an interesting piece about speaker pelosi in the journal. not exactly the same but that she may be gone in a year or two, 2022, and that this is the final sort of the swan song that will hurt a lot of the people that she's whipping, or whatever you want to call them when you're getting votes, that it's the death sentence for some of those people if they go along with this. >> might be sick of herding cats. >> she's not going to care she's going to have the legacy of transforming, it's transformational building back better, it's free, it's building back better all those things in other -- i tweeted that over the weekend it's free so we have that going for us, which is nice. and people are answering with other caddy shack quotes.

>> i wish it was free. in fairness, just to say it because we should say it, the other plans weren't free prior either. >> no. nothing is ever free they do we know that. >> but there wasn't -- sometimes the conversations we had back then -- >> this has to do with prescription drugs paid for -- >> i didn't think the last program we'd pay for it, i don't think this program we'd pay for it. >> there's a lot of slight of hand with prescription drugs and those things when you do raise taxes it's not free >> you're talking about raising taxes now. >> when you do raise taxes, to call it free is -- you're paying for it and it's coming from somewhere else, where it may or may not be treated better. >> does it trouble you what took place in the prior four years in terms of how much money was spent and it wasn't free >> this is what your -- >> no. >> does it trouble you that liberals don't look at -- >> both sides --

>> "the new york times" never looked at anything -- are you going to criticize biden for anything >> yes. >> afghanistan, border -- >> yes mistake, mistake, mistake. let's say it i'm happy to say it. let's say it let's say it, the execution of getting out of afghanistan was -- >> how about the border? >> -- a mistake? >> how about the border. >> having said that -- >> does it seem like things are going well the last eight months. >> why did we get out of afghanistan, because president trump set the time line. >> do you think you're equal in in terms of looking at democrats and republicans and criticizing, do you think "the new york times" is? >> i'm not going to speak on behalf of different newspapers i can speak on behalf of myself. i think i try. i think the relative basis, i think i'm much closer to the center i think i'm closer to where the viewer actually is in that regard. >> i don't know. i have some weird people following me then on twitter

bp said it ran out of fuel at almost a thursday of the gas stations in the uk after panic buying there's a shortage of truck drivers left station oefrpt operators unable to fill empty stations boris johnson is reportedly considering using military personnel to deliver fuel. following the evergrande situation in china -- we still hear you -- they have not comment odd the $80 million bond payment due last thursday. shares rose in trading today up about 8%, just 19 cents. shares of evergrande group new energy vehicle group dropped on friday the firm warned it was in serious shortage of funds and during the weekend, evergrande said it's scrapping plans for a secondary listing for its electric vehicle market.

a number of major crypto exchanges have stopped letting chinese users sign upcoming after beijing's latest crackdown on crypto on friday. the central bank declared all activities illegal you can see they're up just 1% andrew >> we're back. coming up -- becky is laughing -- a dynamic duo of market watchers will join us to get ready for the final four trading sessions of september. first as we head to break, check out this morning's biggest premarket winners and losers stay tuned you're watching squawk on cnbc if you wake up thinking about the market

and want to make the right moves fast... get decision tech. for insights on when to buy and sell. and proactive alerts on market events. that's decision tech. only from fidelity. we see smarter software delivering cleaner power. emerson's breakthrough technology enables the power industry to integrate renewable energy sources to modernize and improve the electric grid. emerson. consider it solved. new projects means new project managers. you need to hire. i need indeed. indeed you do. when you sponsor a job, you immediately get your shortlist of quality candidates, whose resumes on indeed match your job criteria. visit indeed.com/hire and get started today.

what happens when we welcome change? whose resumes on indeed we can make emergency medicine possible at 40,000 feet. instead of burning our past for power, we can harness the energy of the tiny electron. we can create new ways to connect. rethinking how we communicate to be more inclusive than ever. with app, cloud and anywhere workspace solutions, vmware helps companies navigate change. faster. vmware. welcome change.

welcome back to "squawk box," everybody. the markets this morning are indicated mixed, at least. up for both the dow and s&p 500, but the dow indicated up by about 122 points, nasdaq is a little bit weaker, down by about 31 points. we have a few economic and political items to watch this week including durable goods and the government funding deadline on friday. joining us to talk about that is

liz young and kevin nickelson. welcome to both of you some big looming things out there, maybe front and center is the potential for a government shutdown on friday kevin, what do you think happens ahead of that? are people nervous are investors nervous looking at bonds at that point? do they think this would be a situation where things shutdown? will that have an impact >> you know, there's a possibility that we get a shutdown it's happened a lot, you know, over the last ten years or so. but one of the things that i think the market is really focused on is whether or not we get this deal done in a timely manner from a fixed -- >> which deal? avoiding the shutdown or you mean the bigger spending deal? >> i think it's the bigger spending deal. having the market shutdown -- or having the government shutdown is one of those things that will be very short lived.

the big issue is whether or not we, you know, default on our debt, which we don't think that's going to happen we think there will be an 11th hour agreement i think the markets will be focused on it just because we're coming into the quarter and the markets are still a little bit jittery, even though we turned to risk on. >> liz, you think the people should still buy the dips that the point so if there are jitters around any of this, would that be a situation you say jump in? >> i think kevin is right. even if there are jitters, it's a temporary situation. the reason i think it's going to be temporary is that although we're out of the crisis, i think we're at a point where economic growth is still a little bit more fragile than we prefer it to be, and the government knows that i hope they wouldn't create any unnecessary risk by shutting down and bumping up against the debt ceiling that gives us a lot of jitters as far as buying the dips, i want people to be specific about

it it's not about buying the dips in a broad index it's about buying the dips in the theme going forward, so things like real rates rising, financials, materials, commodities, energy, small gaps and things like government spending that should go into effect if and when we get this package through and you play offense on things like health care, you can look at clean energy and some of those themes i think going forward are going to be more opportunistic. >> materials and energy have dipped because of concerns about the chinese economy. you don't think you should buy the dips in china, correct >> i don't think you should buy the dips in china, too much uncertainty, i don't think the juice is worth the squeeze at this point, china continues to surprise us with another crisis or another announcement about regulation that hurts the market so i'm not ready to buy dips in

china. >> but if china has those concerns and issues with its own economy, you don't think that bleeds over into the broader global economy that's why i ask specifically on things like material and energy. it seems those dips have been prepredicated on the idea that a problem with the china economy is going to lead to bigger problems with the global economy. >> sure. the concerns have been if there's a problem in the chinese economy it's going to hurt demand for energy and material, and that's what pressuring prices i think the evergrande is separate, it's not a nonevent but it's contained to china. so there hasn't been contagion and that fear about contagion has been contained as far as demand goes, once the world gets back to normal or whatever we consider normal, there's plenty of demand to be had from the united states and europe there's still money in savings and i think we can pick up the demand lacking in china. >> kevin you are still telling

people they should be under weight fixed income. you heard what jay powell said last week, the market is anticipating this taper will begin but it will be slow. what do you think happens next >> when i look at the fixed income right now, 145 was overhead resistance as we saw it and we've broken through that this morning i think if we get a continuation we'll see rates that will go into the 1.5, 1.75 by year end everyone has been really focused on whether or not the lift -- how fast we were going to have liftoff. we believe now liftoff is going to come probably towards the end of next year so people still have time. investors are going to be looking a lot at what happens as far as how fast rates creep up and at this point we think there is going to be pretty well managed from that standpoint so we don't see any reason for

fixed income investors to jump into if markets right now. we believe that you need to stay under weight fixed income, keep duration short on the shorter end, because we think that the longer end of the curve will be rising over the next, you know, six to eight months. >> kevin, liz, good to see both of you. >> thank you >> thank you. coming up, new york's plans for replacing unvaccinated health care workers. stayun ted you're watching "squawk box" on cnbc emerson's energy star™ certified sensi™ smart thermostat uses geofencing to simplify how homeowners manage comfort and costs. emerson. consider it solved. when traders tell us how to make thinkorswim even better, how homeowners manage comfort and costs. we listen. like jack. he wanted a streamlined version he could access anywhere, no download necessary. and kim. she wanted to execute a pre-set trade strategy in seconds.

so we gave 'em thinkorswim web. because platforms this innovative, aren't just made for traders - they're made by them. thinkorswim trading. from td ameritrade.

welcome back to "squawk box," everybody. it's time for this morning's executive edge pfizer's ceo is predicting that there could be a return to what

he called normal life within the next year amid the continued pandemic in an interview yesterday, he stressed that normal doesn't necessarily mean the covid would be completely gone and that the variants would continue being an issue p. he said that means annual revaccinations could become a part of life >> because the virus is spread all over the world, we will continue seeing new variants as they're coming out and also we will have vaccines that they will last at least a year. i think the most likely scenario the annual revaccination but we don't know really we need to wait and see the data. >> maybe it becomes more like the flu. on the topic of vaccinations for children he said it's a question of days not weeks before pfizer submits data to regulators that would put it to the position where kids could get the vaccines by halloween

because it takes 4 to 6 weeks for the fda to approve this is happening right now, the governor may be calling up the national guard and use out of state medical workers to fill hospital staffing shortages, tens of thousands of health care workers could lose their jobs if they don't meet today's deadline for a mandated covid vaccination. >> some sports news, congratulations to the u.s. ryder cup team, the u.s. delivering a 19-9 victory, the most lop sided victory ever, handing europe the worst loss, it was the youngest american team in history with six ryder cup rookies. dustin johnson set a record, won five matches, 5-0. and he had not been -- didn't have a winning record prior to that he was the oldest, at 37 or 38, he was the oldest american on the team and the average age, i -- it's weird when europe wins they're always -- i mean, they really like to rub it in when they've

won. they won seven out of the last nine until this one. i couldn't help but feel -- i wish sunday would have been more interesting. i didn't even watch towards the very end because it was just -- >> europe versus america. >> what's that >> this is the biggest winning margin you have seen. >> yeah, i said that >> i think it just sets things up for years to come with all these young players. >> it does the europeans didn't have any fears here they were missing that sergio was still -- he's got a lot -- and jon rahm played like number one but then he got beat by a captain's big, 25 years old. i watched a lot of the beginning but there was a lot of other stuff on. >> i'm so tired of winning >> it was -- it was sweet, but -- and they rub it in. big time when they win. they love to do that

but this was just -- i almost felt bad it was such a shellacking. they kind of had to -- they need some new guys. they still have lee westwood, ian poulter. you know, they didn't have the youth. remember i mentioned this schaaf lee guy and collin morikawa, and our veterans are 28, 29, spieth and justin thomas. it was really good really good. >> exciting. >> yeah. >> anyway, when we come back we'll talk crypto and the factors leading to wild swings this morning, not so wild swings, mostly higher. bitcoin is up by about 1.25%, ether up 1.6%. it's a big week here at cnbc, delivering alpha is back on wednesday from spacs to crypto to esg, it's all about maximizing returns in this new era of opportunity you can register now at

delivering alpha.com stay tuned, you're watching "squawk box" and this is cnbc. hey lily, i need a new wireless plan for my business, but all my employees need something different. oh, we can help with that. okay, imagine this... your mover, rob, he's on the scene and needs a plan with a mobile hotspot. we cut to downtown, your sales rep lisa has to send some files, like asap! so basically i can pick the right plan for each employee... yeah i should've just led with that... with at&t business, you can pick the best plan for each employee and get the best deals on every smartphone.

good morning, welcome back to "squawk box" this morning on monday take a look at the futures right now ahead of the open. we are in the green on the dow up about 112 points we look like we'd open. dow down alphabet's google unit, this is fascinating they're cutting the commissions on third party software sales in its cloud marketplace. google will now collect just 3% of sales that compares to the prior 20%. it goes to the larger issue of platforms and how much they charge of course, right now we've been reporting on the debate over the platform that is the app store that apple has at 30%. 30% margin but these guys taking it down in this case from effectively 20%

down to 3% microsoft already much lower aws i believe is about 5%. i didn't realize this. google cloud is not a profitable enterprise yet did you know that? you would have thought it would have been a profitable enterprise, not so much. >> and then, this should be interesting. crypto markets recovering slightly over the weekend after falling last week following negative news from china, bitcoin ended down 10% joining us now is kavita gupta, fund founder the market seems to, at times, come to grips with china's actions and there was nothing completely new or shocking about china, given what we've seen up to this point probably and they've got their own concerns with their own currency and everything else. the question is, if china can do

it, can other countries do that if they, for whatever reason, if the united states decided this is threatening our -- the dollar, couldn't they do it? isn't that something to worry about? still 43,000. >> joe, good morning i think this china crackdown news is, first of all, nothing new. it's been happening. you have not been allowed to convert into any sort of cryptocurrency in the last couple of years. and so, i think it's the old news which gets sensationalized, it affects the market and we all start talking about it but at the same time, i think having a usg or a currency backed coin versus going into a cryptocurrency is a complete different story. you can have the pockets between r&d to usd or usd to bitcoin but at the end of the day the cryptocurrency market is very much governed by the global

markets which are happening and which is within crypto and the products so you can see, though, there was a 5% down last week, within the news of it but bitcoin market picked up and especially look at ether, which has been very much purely resting and down a little bit but picked up again. >> right the -- what does it matter in china whether -- you know, whether that country decides that bitcoin is not going to be part of the ecosystem, and is -- can they actually -- wouldn't they have to actually enforce that and will they do they enforce the kids aren't watching more than three hours worth of tv, video, whatever it is they're enforcing can people still do peer-to-peer traction actions in china or is the risk too great they could be punished harshly >> that's always been a black

box, you're talking about a country, you have to take artificial gdp or the inflation numbers you get from them, this is the country doing a crackdown of education of all the things, right. as you just mentioned. you have okx, the two biggest exchanges still running out of china. they are doing peer-to-peer transactions on crypto, that's been going on. the listings are still very important in the whole token economy in the crypto world. but can you have every other shop -- the only thing they say you cannot convert r&d into crypto but if you're already in crypto everything is happening there. some of the biggest products are coming out of hong kong. for me it is again we want to stay control, we want to know exactly where r&d is going, or where any other currency coming into the country but ultimately

the beauty of cryptocurrency is that you really just can't control that you can control your bottle but this is bottleless, that's what i love about cryptocurrencies. >> what kind of body language are you seeing from the most recent comments from what is happening in the united states, kavita, regarding i don't know stable coins, regarding an eventual digital currency from the u.s. government, what do you think is going to happen >> i feel like having -- i always have said having regulations are good, give us clarity so whatever direction we go we can go in a good way but like going back to the same thing which we have talked again and again you have to be smart enough to do it and we think coming and teaching at mit courses, coming into the space would understand how the whole decentralized refinance world moves with wallets, you can't keep taxing that

if stable currency is a security, come out and lay the rule this is what securities are. cracking down on exchanges, tracking down oler one solution without having clarity is my biggest problem. you have the clarity, let people decide is this the product they want to build or is this the product they want to build in this country look at what countries are doing, no capital gain taxes on crypto to attract all this talent there that's in greece i think we should really, really make sure that we don't re-regulate it but regulate it to support investors but not shut everybody down the opportunity. >> do you think there comes a time where these questions are moot, where it becomes just a structure of bitcoin and there are people that argue that it's already there, that it's already

beyond the point where you could shut it down or in a sense, kill it, do you think we're there already or will there come a point those questions are no longer in the back of people's minds? we heard ray dalio say if the u.s. government decided to kill it, they could kill it. >> if they decide to monitor no usd goes into crypto, that's where it lies, if you have u.s. citizenship, green card, you own bitcoin you go to jail, that's going to be against the freedom, right, against constitution. you can say this is my currency, you cannot convert it. that's the beauty of bitcoin, it's bottomless, what happens if i convert my euro to bitcoin and then live in u.s.? >> thank you appreciate it. >> thank you always seems to come back, even, you know, it's up today headed for almost 44,000 again,

at least bitcoin thanks. when we come back, tesla rolling out more access to its self-driving software. the details on that next. then later, the take on the markets this morning with just four trading days left in the quarter. and you can watch and listen to us live any time on the cnbc app. stay tuned you're watching "squk x.awbo oul. it could be the day you welcome 1,200 guests and all their devices. or it could be the day there's a cyberthreat. get ready for it all with an advanced network and managed services from comcast business. and get cybersecurity solutions that let you see everything on your network. plus an expert team looking ahead 24/7 to help prevent threats. every day in business is a big day. we'll keep you ready for what's next. comcast business powering possibilities. i'm so glad we did this. i'm so glad we did this.

i'm so glad we did this. i'm so glad we did this. i'm so... ...glad we did this. [kid plays drums] life is for living. let's partner for all of it. i'm so glad we did this. edward jones

welcome back futures triple digit gachbs in the dow but the nasdaq not we've seen a move down to 135 now back to 1.487. tesla rolling out a software update that allows customers to request access to its full self-driving beta software access will only be granted to tesla drivers who get a high safety score tesla shares, as you can see, this year, kind of interesting although they've been on a nice up trend since what is that, looks like that's june, down in the mid 5s >> coming up the company behind google's at home covid test going public on friday, getting

a pop in the stock the ceo of cue health joins us next to talk about getting more tests in the han odsf americans. don't go anywhere. we're back after this. ♪ ♪ remember when no dream was too big? ♪ ♪ and you could fearlessly face the unknown. (kids playing) you still can. ♪ ♪ (blowing dust) when you have a rock you can depend on for life,

you'll be unstoppable. that's why over 5,500 companies rely on prudential's retirement and workplace benefits. who's your rock? we are the next. an the next generation. of visionaries. rule breakers. game changers. and world beaters. we certainly aren't here to do what's been done before. and neither are we. at palo alto networks, we are ready to secure our digital future. we innovate to outpace cyberthreats. so you can make the next day

safer than the one before. we've got next.

the two of you to step off for a second >> okay. >> ana and sunny have to leaf. >> yes. >> we'll tell you why -- >> more information later. it's a tease. >> we'll tell you why in a couple of minutes. shall i introduce the vice president? >> yes >> okay, so vice president -- >> no. >> no. okay shall we dance >> that was a moment from "the view" on friday when two of the cohosts tested positive for covid ahead of the planned interview with the vice president.

the cohosts are now cleared to return to the set. in an interview over the weekend, we found out all indications that the result was actually a false positive and apparently some pcr test shows that there was -- it had been a false positive for more on the world of rapid testing i want to bring in the positives. bringing in the diagnostic testing above the price of $16 a share. trading above $20 a share. joining us now, cue health founder. congratulations. exciting for us. we had you on early on now here you are about 18 months later. you've gone public we did the

test on the show i stuck this thing up my nose. so i tried this product. we are talking about the future of the company and testing used by google and the nba the biggest revenue component comes from the department of defense curious what you are business is. direct to buyers, corporate buyers what does that look like >> cue is a mission driven health care technology company our goal is to allow people to live their healthiest life through our connected lab

quality diagnostics. to answer your question, we could say first half of this year, we did it profitable we are proud to serve under served communities, 255 school districts. nursing homes and health clinics. world class organizations like mayo, nba and google we are gratified to be able to celebrate together on friday 1,200 people showed up and we were able to provide our service with a real time meet. >> this test comes with a little testing box. this is not like binex this is closer to a traditional

pcr test in your home. long term, you hope to not only test for things like covid but test for flu, strep and all sorts of other things. >> that's right. in this one reader system, you could put multiple different cart wraths. what we have in the market today is the covid-19 test there is a false dichotomy that you can have a slow, expensive accurate test or a fast, easy to use not very accurate test this breaks that category. it is a molecular test an allows ease of use and accurate results. mayo clinic published an article that shows our test has 98% con kond ans with laboratory pcr

we believe fast accurate testing is an important part of ushering in health care i could see a time when my child is sick or i am sick. i'll go and they'll ask myself to test before or after. >> that's right. we believe those are affected to the virtual care system is absolutely key so really it is about having this platform we've been developing this

really proud and getting this product out there to make a difference >> having tried this myself, i'm curious how it will work right now, you get like a 10-pack of the covid test. do you imagine people will have lots of different tests just sitting in their house, people will order them from amazon or your site and get it within a day or two would you be buying a strep test or pregnancy test one off? >> right now, we sell to enterprises, health care and the government most people get the product from either the organization or from their doctor or part of a government program we will expect to open up the direct to consumer customer category in q 4.

we are stream lining our logistics. one of the exciting thing is the convergence of technology with diagnostics. one of those things we are planning on enabling is the last mile logistics to get them to many americans within a day. >> what kind of cost are you expecting? >> look, we talked about energin and lab and accuracy and convenience. we are somewhere in between. so our pricing will reflect that far from lab but -- >> i'm very excited about this product. it is very cool. i can't speak to the valuation but i think this is one of the coolest companies. >> thank you thanks, andrew

we see access to fresh food being the global norm, not the exception. at emerson, our cold chain software and technology keep perishable food at proper temperatures, to assure its safety and quality. emerson. consider it solved. you have the best pizza in town and the worst wait times. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire

matching your job description. my son romeo has sought counsel with some strategic advisors. they suggest that we marry our fortunes with...the capulets. blasphemy! fear not. these advisors managed one of the largest mergers in history, creating billions in value. billions? plus, they have experts in global trade. this merger shall be a boon for our spice business. and set a course for growth. here, here! friars, send word at once. yes, m'lord. protect your pet this flea and tick season with chewy. find everything from flea collars and sprays, to prescriptions that keep pests away. chewy has what you need to keep tails wagging and pets itch free all season long. shop pet prescriptions and more at chewy.com today.

good morning stock futures point to a mixed open as stock futures trading. broke multi-week losing streaks. a critical week in washington. pretty much all of president biden's priorities are on the line what happens could have big

implications on your money >> we could agree to call this the dr. octopus spac technology meant to augment human strength and dexterity >> take a look at u.s. equity futures this hour nasdaq looking to open down as well about 75 points off treasury looking at the 10-year

note at 1.4. after a very tough week for bitcoin following a crackdown close to $43, close to $44,000 a couple other headlines this hour taking shape so far facing friday's headlines attacking a measure that would also raise the debt ceiling and preparing to vote on the president biden infrastructure bill and the spread of the delta variant causing many to reduce their growth down prior 6.7%. they have raised their forecast for next year as more people are

vaccinated google will be keeping 3% of third party software sales in the cloud marketplace compared to the prior 20% i believe they reduced it to 15% for year one if you are under $1 million in revenue after the first million, you pay more at some point in headlines, we have to talk about this goldman sach, everything story remarkable like they decided to move forward anyway >> the story in the times

suggests that ozzie, we just had carlos and mark in last week after they announced the new funding the story about how the cofounder tried to impersonate somebody on youtube. >> in order to state how big their numbers are. >> the question is if their audience is really the size it is estimating their numbers. their numbers are way below it appears they have told people publicly >> if the guy with the disguised voice is an outlier but there is

a whole series of things hyped up with amazon and things. he throws tesla under the puss here where do you draw the line between fake it to you make it and possible fraud he said fake it until you make it was tesla >> in terms of this, if you get to the very bottom, you realize even they they did raise $40 million, emerson was an early investor they distanced

themself we'd love for them to be on and even talk about it >> is it a dirty little secret >> this is different it appears this may be different. >> is it a matter of degree? >> somebody said whether there were questions of how 20 look into this. they could potentially have the case they wouldn't move forward after they found out it was a fraud. if you go on the website, the numbers for the show are very,

very high. it looks like millions of people have seen the show ben makes the point, there are very few comments, which does reflect something is going on. they could have been buying traffic from other places. i was on the show. it looks like millions of people saw that >> it was the lowest episode ever >> maybe one or two people in my whole life have said i saw you on this thing. i thought that was strange because if you look at the numbers, they are very, very high clearly he must have known on this because he came on our air, which also troubles me i want to say that this incident happened before he came on and before they had raised this money and wasn't acknowledged he must have confidence in the

company. clearly goldman doesn't. the big question is whether advertisers will have confidence >> social media. i don't know some big names dom, did you watch to the end? they got that half pointer and i never went back. >> did you watch right from the beginning to the end >> in full disclosure, i was playing in a golf tournament i only saw parts of it we would try to get updates. the math didn't work out to me to where i felt compelled,

compelled. i did watch a lot of it. some of the golf we saw was absolutely freaking amazing. dustin johnson played all five pieces and won every single one of them. he's mvp >> he was embraced beyond belief and then that was one of the coolest moments. on to the green. first to make it and struck right out of the box that was unbelievable. and then the crowd's reaction. >> he makes it over eight feet

for eagle. >> it was unbelievable >> have you ever played it, joe? >> i have not. >> i have a number of times. it is every bit as difficult as they say it is it is just the ee pid owe me one time the candy i had said, here are a handful of holds saying, let's tee off from where the pros tee off. i couldn't get over the carry just to get to the fairway that's how long a hole it is >> par 4 >> i was playing par 5 and i couldn't get over that >> i'll say this, scotty

scheffler and jon rahm yesterday. unbelievable >> what a great captain's pick. >> the controversy over not picking patrick reed do you think this goes away now? >> like what we saw that happen. >> i would say for a rider cup that had no phil, no tiger, i am as optimistic for the future of american golf as ever. >> so yes, i have to move on because the producers are in my ear now. >> no way?

starting with the 10-year note yield. we are pushing 1.5%. early on, we are at 1.13%. that's a pretty decent move higher remaining to be seen having a solid effect. that general trend has continued for many of them and continues right now. same thing for bank of america and citigroup as well. similar moves there and even goldman and green across the stream for the financial helping to cause some of these bigger names. pre-market, diamondback energy

exxon mobil as well. the big pre-market so far. back to you. >> we'll talk more maybe. i don't know they haven't turned up our time. >> i think they have for the week when we come back, the laundry list of challenges government funding negotiations and much more. key players behind the morning ev dealer poll star is going public via spac. stay tuned "squawk box" will be right back.

you founded your kayak company because you love the ocean- not spreadsheets. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire

welcome back we have a very big deal. polestar and the gores group implying a $20 billion value here chairman and ceo of the gores group and from the

polestar group tell us about this transaction and how you found pole 1star and why you decided this would be a good deal. >> we've been looking at polestar it is a unique company a unicorn. a special company. >> let's talk about the company and the future i'm curious why do a spac rather than go public >> good morning to the studio. well, first it is important to have that support for our growth, speed in a flexible way and finding the right partner

with alec and his team and trusting that they are the people with the experience to do this successfully. all of this leading us to do this option, the spac option >> tell us what polestar does. >> we are an electric car company. the one and only startup in europe, born in sweden we have two cars on the road today. possibility of selling in the u.s. and worldwide scandinavian design, sustainability is the car of our company. we will be bringing out three more cars next year. 23, 24 three years, three cars. this is what we have here in the design studio ready to go.

>> so you are backed by volvo. when you look out 5 to 10 years from now, do you think the manl ority of new cars on the road will be built by new companies like yours or the traditional manufactures who will try to transition to electric >> obviously this is a period of big, big change in the car industry what was impossible is possible because so much things are changing not only because of electric but the mobility, direct consumer business really being digitally connected. this is such a change, it enables newcomers to come and play they will go all electric. it is really more cumbersome to

do so. you still have to take care of your eye strain range. this is where a startup and brand-new company can accelerate faster >> the valuation of ev makers has gone through the roof. in terms of valuations in bubble area >> it is a bit ofan art and science to do these valuations we know you do a really good job in the enter prize coming in six times 2023 -- i'm sorry three times 2023 revenue and tesla at 11 times and lose

it we are realistic about coming in with great valuation in the marketplace. we feel like we did a really good job putting in the valuation on this company. >> the cars are beautiful cars my other question for you is about china because your cars are manufactured to china and exported to the u.s. and europe. >> how do you think about u.s. lsh china relations or china relations more broadly around the world. >> our plan is to manufacture the cars where they are bought we will produce cars in north carolina, american built for the american customer. this is the strategy for the global foot print we are serving. so europe, china and us will all play a part in that.

>> when will that happen and what will the transition period look like. >> close to 22, 23 the production will be up and running. >> over the course of the next four or five years there are factories in all three regions existing >> very cool car >> alex, you may know this a lot of members of congress are expressing concern overtime incentive over these spac. what kind of regulation are you expecting? >> to be honest, i'm not the guy to make those decisions. for us, we are tougher on ourselves than the sec

we take it serious we write a big check and have a lot of skin in the game. we make sure we are totally aligned with our investors and partners, et cetera. we feel zb about about our alignment. it is a very cool car. >> have you seen this? >> no. >> it is beautiful they are going to build a lot more cars. it has a volvoish look, which i like >> i believe you i do believe you >> they are beautiful cars >> they've gotten better coming up, the new track that hedge funds are trading. borrowing a page from the vc playbook we talk about futuristic technology how about a highly dexterous

we'll speak to a ceo trying this hollywood concept. can you say robocop into big ofs. stay tuned

welcome back recent motto has been, if you can't beat them, join them >> good morning. i want to show you this massive divergence and performance and why they are moving bigger into the private market generating the annual returns last year around 14%, twice the performance of hedge funds that wasn't the case 14 years ago. the market has shifted companies are raising more capital at higher valuations

before going public. so by the time hedge funds would have a time to infest, they would have shifted like tiger global, c 2 and others putting billions of money into startups. imagine how that is going so far. triple the number from a decade ago representing more than a quarter of capital vested in the private markets. they complaint the deals and ballooned valuations very few success stories becoming hedge fund managers

>> i saw the story and duke university endowment being up and vanderbilt being up 57%. a lot of that came from private equity and funds that they invest with. >> absolutely right. when you talk to lp who says this endowments, they have really been putting more money to work in a private way i don't want to say that's at the expense of hedge fund managers but they are noticing this they are not blind to the idea that private equity has been showing higher returns and there for generating more money so the

asset following will begin from there. we are days away from the cnbc delivering alpha conference talking everything from spacs to crypto and esg we'll bring you unpair legaled insight and strategy if you want to join, register now at delivering alpha.com. >> still to come, we'll talk about the latest spending out of washington as the government shut down edges closer and dr. scott gottlieb joins us anthd e time line for approval for shots for younger kids

it's another day. and anything could happen. it could be the day you welcome 1,200 guests and all their devices. or it could be the day there's a cyberthreat. get ready for it all with an advanced network and managed services from comcast business. and get cybersecurity solutions that let you see everything on your network. plus an expert team looking ahead 24/7 to help prevent threats. every day in business is a big day. we'll keep you ready for what's next. comcast business powering possibilities. hey frank, our worker's comp insurance is expiring, should we just renew it? yeah, sure. hey there, small business owner. pie insurance here with some sweet advice to stop you from overpaying on worker's comp. try pie instead and save up to 30%. thirty percent? really? get a quote in 3 minutes at easyaspie.com. wow, that is easy. so, need another reminder? no, no no, i'm good. uh, yes please. oh. ho ho ho, yeah! need worker's comp insurance? get a quote in 3 minutes at easyaspie.com.

it is a critical week for the biden administrations plan and building back better agenda. all in the mix administration bill and shut

down ylan mui rejoins us. >> those critical votes for president biden begin tonight. democrats will start debating that bipartisan infrastructure bill on the house floor this evening fulfilling the promise house speaker pelosi made to moderates. the actual little vote will not happen until thursday giving her time to work overprogressives. they are working with a slim margin and tight time frame. >> you cannot choose the date. you have to go when you have the votes in a reasonable time and we will. >> democrats are looking to iron out their differences over the $3.5 trillion spending bill as well

if that weren't already complicated enough, still a government shut down and debt limit crisis to avoid. they will vote on a bill to keep the government funded but that is expected to fail amid republican opposition. they are trying to pass an ambitious agenda but also have to keep the lights on. back to you. >> interesting to watch. monday was a promise it was clear speaker pelosi conceded. interesting that she knows or at least feels strongly she can corral enough votes to do it somebody has to give a little bit. they said, look, we lose

leverage of the $3.5 trillion. if they do it thursday and go along with it and get in bed with the moderates, you are not going to get $3.5 trillion the leverage will be gone. it will be a much smaller, diluted human infrastructure bill >> there is no way both chambers will pass that bill by thursday. the hope is that they'll come up with enough progress passing the number, the tax provisions showing that they've made enough progress the possibility even by delaying the vote they'll still not pass on thursday. they've really put everything to the last minute. they are ramping up the pressure to get on board.

they are getting at least to the moderates. progressives versus moderates. always on the background i don't know how they could have talked so tough. we are not doing the trillion until we do the $3.5 that was never going to happen >> but i think you need to pay attention to the house they have a three-seat majority. a number have serious considerations for that bill as well it is less about the senate and also about the house as well >> all right thank you. >> i think there are seven still holding out. my best guest guess.

two of the nine pealed off over the week wood. >> joining us now, former congresswoman donna edwards and former u.s. senator judd greg. i know how you both feel about what is happening right now and what needs to happen let's try to stay away from the party's talking points and talk about what is going to happen and where we might see some movement on things you went through this for a long time in the senate do you think the government is going to fall back and not going to fund the government come friday morning >> it would surprise me if that happened for a prepare period of time you don't take a hostage you are not able to shoot. republicans should have learned by now shooting the hostage is

not findsing the debt is productive shooting yourself in the foot. i don't suspect that will hang around for a long time i wouldn't be surprised if that takes us through this week into next week. >> if the larger infrastructure bill or larger bill that they have a say in? >> i think the hard fact that they are being jammed on new taxes the actual number is closer to $3.5 trillion. the number being passed. republicans vgs i think we'll

believe, they shouldn't be asked to participate in funding the debt >> it seems that this is a problem that has been building going back where you could see the republicans pushing through the tax cuts and now you have this huge spending bill coming through. no bipartisanship when it comes to some of these big numbers is this still going to be anything goes at this point and we'll try to have at least some leverage what happens >> i think this is part of what happens when you have divided government with narrow margins where the stakes are so high

with democrats, this is a must-do moment the debt ceiling, infrastructure these are all looking at the end of the day, first of all, there is not going to be a bill that comes to the floor of the house if nancy pelosi doesn't believe she has the votes. it is how she's operated if she believes she can get those votes at the end of the day. seeing 96 members of kcaucus, with only a three-vote margin. many believes they will lose

their zmat if they go forward and respect when push comes to shove for democrats. it is really shove right any i don't see the problem with moving forward with only democratic votes the american people and their voters expect them to do something with that. >> it raises the question whether you should do everything the entire farjest left wing of the party would like you to do when you only have a three-vote majority with the even standing. is that an argument for trying to do everything you maintain even your own party. >> the speaker stated that we

will not expect negotiations in the package. the question is what will the priorities be and what will the dollar amounts be to get the most votes, that 218 you need to pass the bill. i still think that's possible. i think there is a lot of wilg room thrown out at 2.5 to 3.5. the how is how do you attach dollar amounts to those to make sure you are getting moderates and progressives to agree to move that vision forward i think it is still possible democrats are running out of time voters expect something to be delivered. if they run out of time. the government shut downs, the debt ceiling isn't raised. you don't pass infrastructure or

reconciliation the democrats will pay the price in a contentious election. >> will they be scaling down some of the bigs they came up with about how much it will cost >> you hit the nail on the head. they could go with $2 trillion and $2.5 trillion and having a whole new series they sun set them sooner say a three year or five year program, when they know for sure once they put in this massive new expansion. they'll get revoted. pick whatever number you want. you've got the language in there

the movement into independent society. in the long run, they'll get what they want which is a huge creation of a larger government. everyone focuses on -- the number is a fraud. the problem activity will be determined by the time of liechl to score completely. having these programs sun set earlier. the real essence should be over the massive expansion in the size of the federal government being proposed here. this is not a minor exercise $3.5 trillion is the tip of the iceberg. >> these issues aren't going

away anytime soon. we'll have you on to reconcern thank you. flush. what about a robot for service ayat's all right here. st tuned to "squawk box" on cnbc girls... the chess club has gained an edge on our bake sales. we need more ways of connecting with customers, fast. i know some consultants with great ideas. can they help us improve our digital experience? absolutely. they've invested over $2 billion in tech. that could really help us manage inventory. and save us a ton of dough. then let's take back our market share. checkmate, chess heads.

girls, i said “bedtime”! your shipping manager left to “find themself.” leaving you lost. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire protect your pet this flea and tick season with chewy. mafind everything from fleaon. collars and sprays, to prescriptions that keep pests away. chewy has what you need to keep tails wagging and pets itch free all season long. shop pet prescriptions and more at chewy.com today.

there's software. and then there's industrial grade software, forged from decades of industrial experience and insights. meet honeywell forge. analytical software that connects assets and people to deliver a cybersecure record of your entire operation. so that everyone, in your boardroom and beyond, speaks the same language. honeywell forge. industrial grade software.

still to come, what looks like hollywood big screen technology right now, you are seeing a live demonstration here taking you to the world of highly dexterous exo skeletons

what happens when we welcome change? we can transform our workforce overnight out of convenience, or necessity. we can explore uncharted waters, and not only make new discoveries, but get there faster, with better outcomes. with app, cloud and anywhere workspace solutions, vmware helps companies navigate change-- meeting them where they are, and getting them where they want to be. faster. vmware. welcome change.

a company called sarkos is going public via spac today. it's expected to begin trading on the nasdaq. the company says it focuses on what are called full body battery-powered highly dextrous exosk exoskeletons that's what we're talking about. they're essentially robot suits meant to augment human strengths, which is meant to make things like lifting touch easier we have the ceo here

ben, your career has spanned defend industries, but this one, why does it make sense for sarcos >> the spac gives us a way to tell our story in a way if we couldn't have done in the direct ip o route when you're a company that is at the stage we're at, where we're just bringing our products to market, you want to tell the future story that's what inspires people about what our opportunities are. so the spac gives us a setting to be able to do that. >> we don't know what the future looks like in terms of technology, and i'm sure products like this will be a part of it, but the exoskeleton,

that mode, has been around and hasn't totally caught on at this point, ben is that a fair statement do you think that's about to change quickly >> there will be things called exoskeletons envisioned in science fiction, movies, and pop on you lars culture, but there's never been a fully wearable robot look ours. this is a first of its kind. who would your customers about and what problems would the exoskeleton solve if someone were to climb into one of those things >> realize, if he got into it, you could start lifting 200 pounds with no strip or strain on your body at all. back injuries is the second leading reason that people don't

come to work in this country, second only to cold. you talk about it on your program all the time, the number of people needed to fulfill jobs in manufacturing and construction, warehousing a logistics. we're short by millions and millions of workers in this country. that will have a significant economic impact on our companies and the country's gdp overall. we're trying to deliver a next-generation workforce to allow a single worker to do the work of three to four. >> so that additional ability -- you know, you seem to assume i can't just lift 200 pounds easily without any -- [ laughter ] -- which is a pretty darn good assumption how does that replace five normal people, just by being --

it seems like replaces one person that's not going to hurt his back. >> realize today the osha guideline that one individual ought to be lifting 25 to 35 pounds maximum there's an awful lot of lifts that go on, one person lifting 200 pounds, instead of four our five people having to get together and bend over. >> ben, can we talk about costs, in terms of cost of the exoskeleton, cost to the business that will acquire this product, margin and the like can you speak to all of that >> you bet we're focused on presenting ourselves to customers as, in effect a next-gen rains staffing firm we're bringing units of labors, and we're making sure the barriers to entry are ago low as

pots, so when you look at the cost of a $25 an hour worker, fully burdened with everything associated with it, po pencils out to about $100,000 a year in total overall cost that is about the cost we bring to the workplace for about $9500 a month, you get a machine that we maintain and service. you're not taking technology risk in terms of tiesing that cost for yourself, how durable are the machines does it last three years five years ten years? i imagine you'll be upgrading them, so the older ones will have less value. walk us through the economics that we're looking the machines of having at least a six-year useful life. we bring them back into the factory and do a complete

refurbishment, so they can go out to a total of six years in duty we're at about $100 all in between the cost of manufacture, and then of course we have the service costs along the way to make sure the machines are um and operating in the field. >> we have no time left. you do some other stuff, too, do they look different? they all perform different functions, so maybe we'll have you back. >> that would be great i would love to talk about the xt >> yeah. >> cool company. a really cool company. >> ben, thanks good luck. >> i love stuff like that, don't you? >> we have a picture of you in one of those things. >> that was in south korea, a different company. coming up, when we return, we'll get you ready for the trading week with mohamed

el-erian, and then kevin brady squawk returns, after this

good morning four days and counting that's how many trading days are

in the month and the quarter mohamed el-erian joins us with his take. spending on a fiscal cliff kevin brady will join us live. plus breaking news from facebook a top executive announcing the company pausing plans to launch instagram kids we'll bring you the full story, as is the final hour of "squawk box" begins right now. ♪ good morning u.s. equity futures on this monday, we're up triple digits. >> for knotts of the premarket

session, now 40 or 50, now down 91, so things have been kind of trending into the negative, but not yet on the dow treasury yields were 148, 149. we did see upward movement in yields last week on both the long end and the short end now almost 1.a 5%. which we haven't seen. >> mohamed el-erian is here, also the president of queens college cambridge. we had so much drama last week, what to expect from fed, and the problems with evergrande yet we got through the weeks with the markets closing higher. did that surprise you?

>> it didn't the fed had enough uncertainty, so the market embraced the the notion that maybe the taper will not be that bad, and the conditioning is strong if you look at the list of uncertainties, we have issues in congress, evergrande, supply disruptions, energy crisis in europe, inflation pressures are building up, but the liquidity driver is so strong for now i think we will continue to stay these are issues to look at, but maybe later on, not now. mean the buy the diplomat mentality? >> yeah. you know that has been incredibly supportive i think the big untold story is the move in yields, which was

pretty consistent across the board, and the bond market is starting to smell something that the equity market happened quite realized yet we have seen yields start to move up is there a point where that reverses there is, i don't think we are there yet. no one wants to take on the fed, because when they're taking on the fed, it can turn out to be a bad trait. so the marketplace, while bonds are edging up, it's still one-sided. >> if you think inflation is a problem and will stick around for a while, that's an argument itself for being in equities that's the only place where your money is not going to lose values. >> i do think inflation is a

problem i do not think it's just transitory we have seen supply-side disruptions multiplay reply. you're going to get and i don't think the fed and others quite realize how powerful those dynamics are yes to equities being the best place, but differentiate the time has come to differentiate, according to a few things one, pricing power matters, so you have to be able to pass on the higher costs second, supply robustness matter we heard from nike last week, that they could meet higher demand, because they simply can't produce enough so, yes, the equity market in general is a better place to see, but differentiation is going to be much, much more important going forward. >> you have to do that company by company, or are there sectors that seem safer than others?

>> you start by sectors, then go company by company you know, for a very long time, we have ignored some pretty obvious differences in companies, because the liquidity effect was so strong the right trade was to be a passive investor i think this time it's much more for the active investor. i think the differentiation will matter >> you have yellen and powell it was tuesday and thursday, i think then you have this potential for a government shutdown on friday it doesn't seem like a -- for them to find a way to team up with some republicans. how would you be playing that, knowing there are these big potential issues out there for the market >> so i am where the marketplace is, which is pretty relaxed. maybe we shouldn't be, but if we

end up messing this up, this would be one of the biggest self-inflicted wounds. it's hard for me to see the democrats mess this up at the end of the day they can get things through. i think the marketplace is right in saying we've seen this movie before, we know it's suspenseful, but we prettiful know what the ending is. 2010 was an exception, but i would worry more about supply disruption, and you just need to look at what's happening to europe it's coming to the u.s the supply disruptions are pretty deep in the system right now. >> you know, you say you're pretty calm and collected about things i think the market definitely is, too. what would change your mind? by the way, if the democrats don't pass this, is that a problem for the market on the one hand you're not going to have the spending going into the infrastructure things that might have been anticipated, so i can't see some sectors taking a hit. on the other hand you're not

going to see other -- >> correct that adds to the differentiation. if the democrats don't get it through, it will be a signal that party unity is a problem. people will blame the democrats. when you shut down the government, it is disruptive people remember these things >> but you're talking about the government shutdown. i mean more broadly, if they could get their act together i don't think necessarily think that a government shutdown would last very long, but the broader issue -- what does it mean for the infrastructure bill? what does it mean for the larger spending bill? how does the market react? >> i know how the market should react, which should be a concern. we know we have supply issues. we know we need infrastructure investment i don't think anybody disagrees on the physical side there is disagreement on the human side

this is about productivity we need congress to get its act together otherwise we're going to see our growth potential come down, and that's bad news across the board for the market and mfor, most importantly, society >> thank you we'll see you soon. >> thank you for having me. coming up. dr. scott gottlieb we also want to talk to him about therapeutics that could be ready. it sounds good this could do it. first, check out this morning's premarket movers stay tuned you're watching "squawk box" on cnbc the best things america makes

are the things america makes out here. the history she writes in her clear blue skies. the legends she births on home town fields. and the future she promises. when we made grand wagoneer, proudly assembled in america, we knew no object would ever rank with the best things in this country. but we believed we could make something worthy of their spirit.

in business, setbacks change everything.

but we believed we could make so get comcast business internet and add securityedge. it helps keep your network safe by scanning for threats every 10 minutes. and unlike some cybersecurity options, this helps protect every connected device. yours, your employees' and even your customers'. so you can stay ahead. get started with a great offer and ask how you can add comcast business securityedge. plus for a limited time, ask how to get a $500 prepaid card when you upgrade. call today. ♪ some sad news this morning walter scott has died at the age of 0 scott was the former top executive of a global construction firm. he was also a board member at

berkshire hathaway from 1998 to his death. scott owned 8% of berkshire energy, with berkshire owning the rest he was a friend of warren buffett going back to childhood. heats is part of a conversation ed in 2010, when we were touring a factory in china >> this trip has been particularly special, having you, warren and charlie and bill gates and ron olson all along to really check it out as berkshire board members, too what is it like traveling with this group of your friends >> well, i've traveled with them before i get along with them fine s warren is the star, and bill supports him, guyly supports

him. sit tend to stay in the background and clap. >> that was walter being understated as always. he had actually been going through the tour, taking careful notes and asking a lot of questions. when i asked him why he was paying so much attention, this was through mid american energy at the time, and he said as a big owner some mired american energy, he may have more interest in knowing how things were working than others that was walter all the time walter scott, again, has died at the age of 90.

-capsule! -capsule! -capsule! capsule saves me money on prescriptions. capsule took care of my insurance. capsule delivered my meds to my doorstep. capsule is super safe and secure. get your prescriptions hand delivered for free at capsule.com there's software. get your prescriptions hanand then there's ree industrial grade software, forged from decades of industrial experience and insights.

meet honeywell forge. analytical software that connects assets and people to deliver a cybersecure record of your entire operation. so that everyone, in your boardroom and beyond, speaks the same language. honeywell forge. industrial grade software.

welcome back to "squawk box. futures have weakened even further, the dow jones barely hanging on to a gain of 15 points, s&p down now almost 12, 11 and change, now the nasdaq down triple digits check out a chart of the ten-year note yield this morning, almost 1.5%, getting very close, 1.491 at this point. in the meantime some fascinating news instagram putting an upcoming product on hold for kids this comes in the wake of a serious articles in "wall street journal," one accusing instagram

knowing that it's bad for teen girls' health. this was on "today" just moments ago. >> today we want to talk about how we're going to put the work on pause i still firmly believe it's a good thing to build a version of instagram that's designed to be safe for tweens, but we want to take the time to talk and get more consensus on how to move forward. >> facebook pushing back on the journal articles in a blog post yesterday, saying on many well-being issues, that it actually helps teen girls. it's an interesting one, because the blowback has been huge i've even heard from potential advertisers saying, i don't know if i want to be associated with facebook or instagram. it's interesting to put a pause on this program. one of the challenges, unfortunately, is lots of tweens and kids until the age of 13,

unfortunately are already using the service, so to some degree you could argue better to actually have a service that has some kind of controls around it, but at the same time there's so many issues around trust right now, they're putting that pause in place >> i don't know, is teems like -- when you say it's open for kids under 13, instead of kids squeaking into it and using it, this has been an issue i've been concerned about as a mom and, you know, seeing them actually say, okay, we're going to bow to the pressure and hit the pause button i think is a bit of a victory. if you could put some controls in place, maybe that's an improvement. >> why don't you put controls on it to make sure that kids under 13 aren't on it? >> by the way, that's the big question, can you? i don't know if maybe they have

tried heart enough he question is how do you get there? in terms of -- >> ask for a parental sign-off, and the parent has been to be on facebook first >> i don't think you can just sign up an account straight up >> i don't like oversight regulation, but kids left to their own devices at their age, similar to tiktok and some other -- >> people who can't dance, shouldn't be dancing. >> you want a little bit of this, right? >> have you done it? >> i think we should do a squawk tiktok i do think we should. >> well, you and becky enjoy that. >> nope. i was going to count myself out. >> you mean it's going to be a solo performance okay watch me -- no >> after the cdc recommended booster shots for some americans, confusion still

remains regarding eligibility and roll-out of a third pfizer vaccine. joining us is dr. scott gottlieb, former fda commissioner he also serves on the board of illumina and pfizer. his new book is out now. so many nuances to the vaccine, scott, you know, frustrating, because the panacea we had hoped for is not even close. breakthroughs, viral loads of double vaccinated people, all these things what about a therapeutic that we could get in the form of a pill like we use of use with other viruses. it's definitely possible pfizer is working on one, merck and ridgeback are close to disrupting the replication of the virus, which turns it into not even a serious flu almost. plus, the viral load never gets

high enough to cause those immune system problems that we get that kill so many people with covid that's the only way we're ever getting out from underneath this a booster every year and another one, and breakthrough cases, vaccines won't be the answer to get us back to normal. >> well, i wouldn't accept that vaccines aren't going to be the answer we don't know what the long-term immunity will be, especially after you boost the population it might be a three-dose or annualized like for the flu. the vaccines are holding up pretty well. with respect to the therapeutic, there's news out today from pfizer, the company i'm on the board of, of advancing their drugs to clinical trials the merck has advanced as well roche is a little further

behind, but looks promising. there's a whole host of drugs that were developed to specifically target this this isn't a hard virus to drug in terms of how it replicates, but it will be increasingly different to run these clinical trials in a pop wlags where you've had a lots of people who have been vaccinated and a lot of people who have been infected so run a trial for the treatment, is difficult to find treatment, i.e. virus-naive patients in the u.s. >> that's a good problem to have, obviously, that you can't find people -- >> it's a good problem to have, the reason you can't find people is because they're vaccinated. it's not a good problem if it's because they're infected. >> what i can't understand it is the angst and masks service

where. what we thought -- three, four, five -- i got it in january. what looked like the end is nowhere near the end because of the they breakthrough cases, whether they're really, really common, whether you're asymptomatic doesn't seem to matter anymore even if you're asymptomatic, there's still a concern you're going to pass it to someone who is vaccinated, and it's going to keep getting passed until you get to someone who is vulnerable or unvaccinated. it's a vicious circle that's frustrating. >> well -- >> there's people inside, there's people in stadiums, there are people everywhere, and you get a dirty look if you're not wearing a mask, even if you're double vaxed. >> let me challenge that for a minute first, everyone is out society is functioning fairly normal i'm not going to say it's completely normal, but prevalence is still high 2,000 deaths a day, this delta

wave is still sweeping across the country, so i think that's impacting behavior and psychology, and i think it will take psychology to evolve where we come to accept it as a fact of life and there's going to be infections, but that's a point where privilege position starts to decline and we start to see fewer hospitalizationses and fewer deaths we're still in the throes of this i think the reason why people are overestimating the risk of the coronavirus, or still concerned about it, know they might get a milleder or asymptomatic infection, is because kids are vulnerable. once adults can vaccinate their kids, the anxiety of getting a breakthrough infection, your odds are low, but you could bring it back into the house, i think that's going to start to resolve. you know, this will be a slow evol evolution. we have just spend a year, year and a half to try to prevent every single infection and we'll

evolve to this becomes a fact of life, if you will. it's going to be an evolution. it will not happen overnight, and i don't think the vaccines will be what drive us out of this 28 about he when we can vaccinate the children and hospitalizations and deaths too are the -- start to decline, and they will. >> this is the third booster available by pfizer, not yet in the case of moderna. in terms of the ability to get infected, one things we don't know from these studies, we talk about the nine, ten times antibodies, but we don't know what that means in practice. if the original sect shot, to a 93% rate -- that was pre-delta, what do you think the third booster gets you to? >> part of it is people are trying to avoid hospitalization and death, but i think a lot of

folks, including myself, who would very much like to avoid infection. it seems like, at least for several months after the shot -- or the first vaccine, or maybe the third vaccine, that there is a level at which there's almost an inoculation, but maybe not? >> that's a good question. the public health community, the premise that these vaccines are going to be used to prevehement any infection at all, that's where people start to get uncomfortable, because they feel the premise is they should be used to prevent severe disease, hospitalization. that was the original concept of the vaccines in order to prevent any infection at all, you may have to continue to re-booth. the data out of israel, and it's only one month of data we're looking at at this point, some cases go out a bit further than that, does suggest that the immunity of the third shot

restores the immunity of the second shot. that does appear to be what you're seeing after this third dose it's only short-term data. we don't know how durable the high levels of circulating antibodies will be in the protection against infection, so it's an open question. we'll very to continue to follow these patients, but that premise that these vaccines should be used to prevent any infection at all, that's where the advisory committees got uncomfortable. >> the second question, where i think joe was headed, if you get vaccinated, you get a breakthrough infection and you give it to another vaccinated individual who, therefore, gets a breakthrough infection, what do you think the demonstrable danger is in that context? i know people who are atop asymptomatic, and then people

who were symptomatic and then worse. >> we're not collecting data on this, so we can't answer these questions. this is, you know, speculative, but i'm inclined to believe more of the asymptomatic infections or mildly symptomatic infections in vaccinated people isn't vaccinated people getting it from other vaccinated people, but get it from unvaccinated people, because a vaccinated people are probably likely to be shedding the virus there's no evidence that it's going to be any worse. you can speculate it would be less worse, because a vaccinated person is less likely to shed the virus and give you a business dose. in many cases it's how big of a dose of the virus did you get? probably it's lower from a vaccinated person. again, speculation, because the cdc isn't collecting this data. >> the therapeutics, these pills could be -- you could have an

eua before the end of the year, almost before the end -- maybe even before december 20th, winter. >> yeah. with the trials that are underway looking at reduction in symptoms and prevention of progression of severe disease, those are the first trials that got underway you could have a readout from pfizer, roche and merck before the end of the year that could lead to an eua the trial is looking at prevention of infection and close contacts got started later, so they're going to read out later. >> but that's a game changer remdesivir, the whole process is almost like a catch 22. >> yeah, it has to be infused. >> and you have to do it early >> we have the monoclonal antibodies, they are highly effective. they are available right now and can be used as a prophylaxis

they need to be infeesed but they're working on drugs that could be administered in a doctor's office. i don't think people don't reach for them, because they seem to be complicated, but they're really not. >> we need all these arrows in the quiver once again, the book "uncontrolled spread." rick santelli has durable goods hitting the tape what do you see? >> becky, i'm seeing a much better number for the preliminary readout, in the form of durable goods this is the august preliminary, expecting a number more than double up, 1.8, and last month's final read gets upgraded from minus 110, all the way up to a path to 1% if we strip out transportation, it does come back to reality a bit. instead of being up 0.5%, taking out transportation, knocked it down to up 0.2

and we all know we used this to plug in business spending, what it's doing, it's up 0.5%, and a very healthy revision to our last look, our final read last month upgraded 0.3%, and also power up 0.7, and the last look remains -- to summarize, transportation obviously kicked into the headline, and then pulled back out when we removed it, but all things being equal, we are looking at good preliminary numbers. we see interest rates in the ten-year have moved up they should move up. we had a big breakout last week. we had our close on thursday and a weekly close both back to back above that very significant resistance left of 1.37 to 1.39%. it should be sailing up to around 1.635%, 1.66%, and as we hovered here, it's not only the u.s.

if you look at bund yields trading around minus 20, also approaching a three-month high we want to be paying attention to interest rates here and what their effects may be on the equity markets we see that the dallas index is responding, in an up fashion becky, back to you. >> rick, we've been watching the ten-year, kind of sitting around 1.49%, now it's up to 1.51%. once you broke through that resistance level last week, now what >> well, i think -- i'm not going to give you an average mile per how of how interest rates will go up >> smart man. >> as long as we're above that zone, if we go back to test it, i think that zone would work, but ultimately i think we'll bell in a range between 1.5, 2%, most likely closing somewhere in the middle when we get towards year end the wild car being, of course, if the central bank luteses a

bit of control and we see a bit more activity, because we do have such growing amounts of debt, the global debt numbers surpassed $300 trillion. there ought to be some nervousness in the fixed-income markets at some point. >> as we have watched the yields climb, we continue to see equities markets coming down we've been watching the do you up, but now it's up only about nine points, the nasdaq was weakened we're keeping a very close eye on that, too rick, thank you. good to see you. we'll check in with you soon. in the meantime steve liesman join s us with more on the numbers we just got. what's your reaction >> i like the idea that businesses seem to be investing. it's look at the non-defense capital goods. you've had good investment are they investing because they could get workers?

are they investing because of inflation? whatever, it's up about 13%, 14% year over year that's a good number the month-to-month numbers are good there's weakness in the report that was papered over by boeing numbers. there's a lot of volatility here we got a press release just before the number came out eric rosengren, the boston fed president, is resigning. he's moves it up to september 30th kennest montgomery will take over on an interim basis while the search is conducted. he's citing health reasons, he qualified for a kidney transplant in june of 2020, and he has some health reasons that

are moving up his retirement of course, eric rosengren was the subject of a conflict of interest stories last week so eric rosengren, boston fed presidents since 2007, at the fed for 35 years of his career he was praised by fed chair jay powell for his service. >> stepping down this week >> i guess that is this week, yes. yes, instead he had said -- he had said everlyier, becky, that he was going to sell all of his individual stocks as of september 30th, and not make any trades while he was fed president, but now september 30th, instead, is his resignation day. >> one quick question. we do have yellen and powell, who will be speaking before

congress this week anything we should be looking out for? >> well, i think both of them will get pressed on this issue of the potential government shutdown on the one hand, how yellen -- yellen will be pressed on how long she can hold out before the treasury can't pay bills anymore, but i think powell will be pressed on how the fed responds there was an interesting story in "wall street journal," about potential actions the fed can take when the treasury can't pay its bills. there's a plan inside the fed, even though they don't like to announce it, but there are things the fed can do. so powell may be asked about that, a potential fallout from that, as well as i think the inflakes hidesens. you talked to mohamed about that, and all the other issues out there. steve, thanks. we'll see you later. coming up, congressman kevin brady will talk about taxes,

spending negotiations in washington in just a moment. stay tuned u' watching "squawk box" on cnbc need to get your prescriptions refilled? capsule pharmacy can hand deliver your medications - today - for free. go to capsule.com. we handle your insurance.

all you have to do is schedule delivery. go to capsule.com to get started in 15 seconds today.

welcome back i'm dominic chu. we have to call your attention to the bond market the treasury note used has crept above the 1.51%. the reason why that's important is the last time we have seen that is around june 29th of this year again, it was parter of a larger regime higher. this is the part that people want to pay attention to this late winter/early spring, where yields crept higher, what happened then? well, a lot of megacap technologies and communications service technology took a bit hit. as a result, look at this, wonderful key etfs that tracks big enter net companies and key software-type companies saul some pretty decent underperformance during a time of rising rates. that's why there's focus on companies like apple, microsoft, facebook, name it.

so keep an eye on that during interest rate hikes back then -- well, not interest rate hikes from the fed, but rising environment, was the outperformance of the reflationary type trades in apa corp, occidental, crude oil prices, all higher across the board, so that reflation trade is certainly intact, and take a look at some of the topicers right now no the overall picture. keep an eye on those trades and of course what's happening here. the rest are omyn twitter feed. we'll have more after this break. you see it. you want it. you ten-x it. it's that fast. if i could, i'd ten-x everything. like... uh... these salads. or these sandwiches...

ten-x does the same thing, but with buildings. sweet. oh no, he wasn't... oh, actually... that looks pretty good. see it. want it. ten-x it. yum!

welcome back to "squawk box" this morning we tick to follow tax talk out of washington. president biden says he supports a senate proposal to tax billionaires' unrealized gains the house is now saying they would also consider it robert frank has a look at what that all means >> good morning, andrew. the wealth tax is back on the table. biden announcing friday that he supports senator ron wyden's plan to taxi the unrealized gains of billionaires. it's on the list of menu items that democrats are considering to fund the reconciliation package. earlier proposals from senator wyden called for a tax on the

annual increase in asset values, regardless of whether they are actually sold. the rate would be the same as ordinary income, rather than the lower capital gains rate for instance, jeff bezos gained $75 billion in it wealth last year, he would owe $32 billion in taxes elon masks's bill would be $69 billion under the wyden plan what about when stocks go down wyden's plan would allow for one year to offset critics point out illiquid assets like private companies or property are difficult for the i.r.s. to value. they say corporate founders would have to sell stock every year just to pay this tax. right now there are no revenue estimates for the wyden plan, since they would vary widely year to year, but i guess the government would have to predict the future share price of tesla,

amazon, these big companies in order to even estimate what the revenue would be >> it's fascinating to be if it would ever come to back. robert, thank you for that we're going to continue this conversation with texas republican kevin brady congressman, the question is, do you think the wyden plan has any chance of passing at all, given what i imagine will be a lot of pushback from republicans and, frankly, some democrats. >> i don't believe it will pass. look, senator wyden m. democrats are obsessed with those that are second quarterful and you can't give up on this, even though so far the house, including some democrats, have rejected this. i expect them to continue with it, but, look, all those issues that were just outline, very complex, different to value. are you going to give checks

back when valuations go down by the way, none of this is needed in any way to help grow the economy in the u.s so -- but it's still very much alive, as are the bank surveillance issues and a number, i think, of misguided provisions in these tax hikes. >> we have talked over the years about trying to step up enforcement in the context of gives more resources not i.r.s there's some items that suggest there's some $6 billion of money that annually doesn't come to the taxpayer that should you appear to be skeptical of both of those numbers, but more importantly really any attempt by the i.r.s. to collect why? >> i do agree, everyone should pay their fair share in taxes. i bo believe there is a tax gap. i think the numbers are widely inflated i think the proposals in front of congress right now, adding

over time maybe 1,000 i.r.s. agents, surveiling the annual bank transactions, personal and business of americans, will produce 300 to $400 billion, i just don't think that's the case we have gone that different direction, since we last talked, we have introduced legislation that creates an annual updated accurate estimate of the tax gap, solutions on how we tackle it, and then in the meantime making sure, you know, treasury isn't targeting americans based on their political beliefs in the meantime so we think there is a smarter, more accurate way to tackle this tax gap together this shouldn't be a republican or democrat issue. >> congressman, i don't understand why you wouldn't want to put more resources in the lands of the i.r.s by the way, i remember reading a note you wrote called "we cannot defund the police. do you remember that earlier this year.

if we can't defund the police on one side, why are we trying to defund, effectively, the i.r.s., which is the police on this side >> i know you're really not compares funding of law enforcement on the local streets with the i.r.s no one is proposes to defund the i.r.s. what we are questioning is whether this tax gap is real, where it's created and how best to tackle it we don't believe, because the i.r.s. has struggled, frankly w. their efficiency on how they use the money in the i.r.s. audits they have admitted you can't enforce your way to closing the tax gap. that's their words, not whine. while you're giving a salt cap

giveaway -- >> these are the same arguments that aoc has used to defund the police i'm serious. i'm serious. >> oh, for -- i'm going to give you a pass on that one that's ludicrous what we are talking about is the best way to tackle this tax gap, which i think, again, over the years, the i.r.s. has privately always told us, they think, the tax gap is among agriculture and small businesses i don't think these measures are going after the wealthy or big corporations i think they're aimed at families, farmers, small business people. i think that's the wrong target. >> how would we get at some of that these billionaires live pretty well, so if they buy a 5700-foo yacht, isn't there a way to tax consumption?

none of this stuff will ever happen let's say the stock goes up, they take a loan again the stock, they live high off the hog. they have done will. i'm not demonizing them, but if it's never taxed, what would you say is the most effective way to get at some of that would be, if it is something we want to do, and if we know a good way to spend it >> so at the heart of this, is, is that your goal? or is it an investment we have an infrastructure that works well, to drive local investment, ward that risk, the years of maintaining your properties, building on and expanding, paying taxes, the ability to do that, we think should be rewarded the ability, too, like the home

behind me, you live in it for many years, build up value, borrow against it to renovate your kitchen none of that is wrong behavior all of that is, frankly, pretty good for the economy it doesn't change -- i really question the policy of going after that >> congressman, there was a report over the weekend that senator sinema may not be prepared to raise taxes on corporations or individuals. i assume you put that with manchin, and you could have a bloc there what do you know about that? >> one, i think it is the right decision, especially coming out of this pandemic. >> i welcome her comments, as you know, you have an economic political crisis of the

democrats' own making. i don't think the issue is the test testify nancy pelosi's leadership i think the test is, are there any house moderate democrats left who will stand up for their local small businesses and their workers who get hammered here, to have one in ways and means and one in the budget committee, will they hold and by joined by other individuals who run as moderates back home? i . >> congressman brady, always good to see you and get your insights. >> good to see you too, andrew thank you. never did see the september swoon leading into the october bottom.

we're going into an earnings period, and we had to have a positive view. i'm trying to figure out what happened between 4:00 and now. >> you know, the end of september, system the quarter? how do you think these three months go? we seem to have peaked in covid. if that's the indicates, i have to believe that economic

activity will pick up. we have to solve the supply chain problems that's what i'm focused on today. >> very good, jim. thanks we'll see you in a couple minutes. >> yeah. it's not too late to register for "delivering alpha." it's all about maximizing returns. register now u' wchg ed yoreatin"squawk box" on cnbc there's software. and then there's industrial grade software,

forged from decades of industrial experience and insights. meet honeywell forge. analytical software that connects assets and people to deliver a cybersecure record of your entire operation. so that everyone, in your boardroom and beyond, speaks the same language. honeywell forge. industrial grade software.

you'll see the dow is indicated up about 57 points, not the triple digits we had seen earlier the nasdaq off by 116. guys, you were talking to jim about the problems with the supply chain the front page of the "wall street journal" takes a look at the problems with the ports. apparently things are getting worse there. port of los angeles maybe there were 60 ships waiting? maybe it was long branch, but they're only being used 60% to 70% of the time. they're closed on sunday, and we may need to talk about that, because those delay times are

creating all kinds of problems it's a situation you have to get the truckers to work longer hours, the longshoremen to work longer areas a lot of backups along the way ahem i saw you arguing about other stuff there. >> we were having a little debate >> because we're out of here. >> same debate, 14 years be back here tomorrow, we will continue. >> good morning, final week of q3 futures are mixed. oil is back to three-year highs. a crowded week as we watch for house votes on infrastructure, and three appearances by fed chair powell our road map continues wit