good monday morning. welcome to "squawk on the street." david faber is in l.a. with the mi milkin institute. our road map begins with wti, highest level in seven years. barclays cutting disney.

>> and the institute is back i will be before viewing several people, and so nice to be back in person, even if we do have the mask police on our pbutts over here. >> i think you have the most important guests mike wirth, he's been trying to fee-carbonize, and i think it will be interesting to see if he wants to return capital, like devon, and he's the man of the day. >> you had him on recently, of course, a great morning to speak to mike wirth.

not to mention the ten-year at 1.62. >> and carmine desipio, he westbound a truth teller who is truly decarbonizing, and who are greenwashing >> yes, carmine will join us. >> i get the feel that jim would like to say here with me >> i think the next time we go to code or milken, we should bring you along. there's a lot of discussion, jim, this morning about what it's going to take to get investment back in the space these guys have esp pressure,

the memory of the last crash, and they have crates that are not subsidizing product investment. >> at the same time there's a lot of free riders if you're devon, and you have cut back, our if you're pioneer, you have cut back. whatever ear selling -- by the way, the five-year curve has not changed. a lot of people still expect oil to retreat to the 50s. that makes it harder and harder as this goes on. there's no new oil from mexico or venezuela, the saudis are holding back, because they have to pay big dividends who is investing can you imagine we're worried it doesn't get cold this winter >> we could definitely used some warming this winter. uk gas prices is up on doubts that russia will make the supply

promises that putin talked about last week. we always thought that it was just a thin thread at the gas bump can europe readily let itself be controlled by the russians we're seeing more and more -- there's a story i read this morning about putin -- this is the worst for journalism ever, and you do not want -- somehow the big countries are hostage to them we're in trouble if all of europe slows, because europe has been making a comeback we can't have that happen. >> just the table of the curve, and you're absolutely right, we're not looking for.

>> every is excited, because crypto is about to have an etf, and people try to run ahead of it i think options guys are trying to run ahead of it, and a lot of times you don't get what you wish for one of the things that made me feel like -- i saw an occidental upgrade. it's been the most hobbled of all, because they spend so much money buying a i patche, but everybody is so bullish, it's really starting to worry me. -- not apache, anadarko. everybody is bullish on every single asset they're bullish on oil, bullish on crypto, bullish on -- david,

what are people bearish on tell me, give me something people are bearish on. >> let me think. they're bearish that inflation will calm down they don't think that will be the case can i say that >> no, you can't say that. if you were hear here, i would have to explain to you, you know, that's the point if everybody is bullish on everybody, inflation is going to -- >> i know. >> that's not what we want >> no, that's not what we want you and i have gone back and forth off transitory nature of inflation now for about a year we're getting to the point where the question answers itself, right? the question is when will it

start to -- it's certainly a part of what people pay for every month. >> one thing i think people have been thinking about with oil, is decarbonization of cars. he says it's better -- he has 17 cars, and he puts it up there with -- i don't know, ferrari or lamborghini. positive and negative -- >> easy there. i don't have a lot of positives on disney, david

you're out there do you have some sort of karma move on disney out there >> being closer to headquarters for the great company. >> we've mentioned the note here, that downgrade this morning to equal weight over at barclays, guys i don't know, jim, they talk about the expansion over the last couple years it trades off of disney plus it's been an incredibly -- it's becoming more difficult to add anything at the rate of growth initial lip. you tell me what this stock is going to be valued on. it had an incredible 2020, but to be fair, not at strong this year. >> a year ago we we've been

saying netflix might be finished, and now people are baying -- i think the idea of disney being so-called finished, meaning that disney plus can't come up with anything -- i'm knoll asking for -- >> barclays isn't saying they're finished, but there might be some risk. >> i think that guy has to be made to eat crow, right? i still think that you have four, five times over subscrips of theme parks, and i think that the model is, well, theme parks are good, i'm still -- my charitable trust on disney, i'm steadfast. i think it remains a great long-term story.

>> we're going to find out in the coming weeks it's a very big weeks from streamers. in the meantime don't miss an exclusive with mike wirth, as we were just hearing about from david off milken some negative tone this morning on the china ecodata and obviously inflation concerns more "squawk on the street" in a moment don't go away.

we are in los angeles and happy to be joined by the man -- we have an exclusive now with chevron's chairman mike wirth. good to see you in person as well >> it's nice to be here in person >> i would love to start off on the commodity itself up again, kind of holding in there at the low to mid 80s. are you surprised at all by the move that's taken place? >> we have to step back and think about how oil prices are set. typically both of big numbers, and they move slowly, so any differences tend to go in and out of storage markets are relatively stable. what we saw a year ago is demand

collapsed, and prices went negative negative for aperiod of time that was the spring of 2020, something we have never seen. >> they were very low for a period of time, and producers adjusted now we're seeing demand come back strongly, frankly in every sector except international travels. so i think the market is concerned, and i think that results in this view that there needs to be a stronger price. >> one of the things we have discussed many mornings, is the fact that many producers don't see intent as they do returning it to shareholders, as opposed to spending. is that appropriate for this environment? >> well, i think there's a

couple things that have changed, that really do affect the rate of reinvestment. one is government policy we certainly see policies that have discouraged possibility development. we also have seen messaging from investors that they prefer a return of cash certainly in the exploration/product sector for a number of years. most of the cash generated seemed to go back into growing production but investors wrote four proposals that would actually limit future production there's a number of things that are impeding what i think would be the normal reinvestment behavior on behalf of producers around the world i think it's another thing that the market is concerned. >> well, you mentioned annual meetings there's a backdrop here of escalating external demands, you've been responding to that,

but you also lost a vote in your annual meeting how did that change, if at all, your approach. >> we've been working on responding to the concerns about climb for many years we sent targets -- we met and exceeded targets, esubmission sorted with our operations just last week we announced a new target to include all emissions, or the use of or fuels, so wrapping everything together, setting a target to reduce that. we also have recently announced a tripling of our capital spending to invest in new technologies, particularly in sectors of the economy that are different to electrify we want to help development the solutions to customers in tore segments to help them meet their loy-carbon goals at the same time, though, i'm looking at a research report from b of a that was just out

last week. they say you're navigating a fine line, increasing green investments, but at a scale that does not materially impact a fundamental strategy, already anchored on some of the lowest intensity carbon is that a fair character sykes that you're navigating a fine line >> it's a challenging world out there. i think everybody is finding a way to help respond, and at the same time meet the energy demands in the worrell as it is today. europe and china, we're seeing the strains on the systems to immediate the needs of the economy, as it is today, eel as wore investing for the future.

this will take time and massive investment we have a global economy that's dependent upon reliability, affordable energy supply every day. when there are disruptions to that energy supply, from a storm, from some other event, we see pretty quickly how dependent the world is on energy supplies. we need an orderly transition so it doesn't put consumers, societies at risk or create concerns about the security of their energy supplies, or i fear we could see some losses of support for that transition. >> we mentioned the significant increase in spending on these initi initiatives. is there a scenario under which you would consider increasing it even more.

>> one is policy, one is technology, how quickly can we bring the costs down innovation, how do we integrate technologies in new ways we haven't before, and then the fourth one is market from commodities markets, things that mobilize the capital in the marketplace. we need to mobilize massive amounts of capital if we're going to restructure the energy system so all of those are really important factors. >> i mention the impact on ca carbon, because it's come up again with senator manchin's opposition to the larger infrastructure bill. is that something that would be embraced by your industry, as opposed spoke -- >> our industry has come out in support of a well-designed market-based system, one that's broad, that engages the entire

economy, that's gradual and allows people to adjust and is durable, would send the signals to both investors in capital and energy systems, also to consumers that this, you know, is a transition that's underway, and a market signal to begin to shift behavior it's always subject to the detail. >> meanwhile, you have to be having a good quarter. you have to be generating as an enormous cash flow right now. >> we'll release earnings next week, and we'll talk about that then the real run has really only happened in the last few weeks we weren't in the same environment that we've been in here. >> i'll ask you again, you think we'll say above 80 for some period of time >> a lot of it depends on the weather. we're seeing strong prices at a

period of time when typically prices soften, with the high demand of the summertime, and cold and winter months, so the fact that we have seen prices actually strengthen at a time when typically it weakens, suggest there's a fair amount of support in the market right now. >> i think i got a yes there mike wirth, chairman and ceo of chevron carl >> david, thank you very much. we'll talk about that interview in a few moments. futures are down a busy week ahead with a lot of earnings we're back in a moment

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are a bit weak this morning, the downgraded disney, inflation and energy concerns. now industrial production piles on, actually down 1.3, very an estimate of positive for positive, and you can catch us anytime anywhere, listen to the "squawk on the street" opening bell podcast the opening bell is in about six minutes.

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time for cramer's mad dash, as we counseled down to the opening business. >> always love to get a message adam, a text, really encouraging numbers. yes, we is showing numbers that showed you they're finally on the rebound, back to where they were in february 2020.

>> they will say, just forgets it, it could be, but i say there's a stock, there's a price, the price is 40-plus, you can sell there if it's phony, why doesn't it drop ten points? the answer is i think adam aaron is pulling off a miracle. >> a pretty amazing gauntlet he's run it was also streaming on peacock, which is a pretty -- powerful argument, someone wanted to see that in the theater. >> can we also just say, now that everyone has dumped on comcast, what is the next move everybody who hayes said something negative has said -- i find we get to these points where -- i think we're close on

disney i'm doing a lot of works to say we're close on the negatives being, you know, kind of exhausted. i'm waiting for someone to say oil is so high, people won't go to comcast, so down 25 cents to start, yeah, i mean, please, i'm looking at adam and saying, he may pull it off. >> we'll see credit suisse set q3 for streamers should be the slowest quarter of the last two years across all platforms net adds across the coverage. we'll see if it's a weak quarter for streaming, but at least where you are, they have avoided a big dispute. >> and last thing we want to do is halt production but you're right, we think about

the competition so often so many content companies now. >> the big board is celebrating the partnership with real madrid football club and foundation and it is nasdaq enjoy technology celebrating the listing on a spac. >> i thought david had an excellent interview with mike wirth. he's becoming the spokesperson for the industry, mr. sheffield is the spokesperson for the high-growth -- i continue to believe the amount of cash he's generating, as david said, is extraordinary, and make mike wirth does offer variable dividend in addition to the regular dividend, which has become the devon and pioneer way

to do it i'm excited about the group. we just never have a day down. oil is surging so we look at what mike wirth is saying, and he's got the cards he's got the cards in oil, and when are people going to come in and start selling it >> david, energy will definitely be the leader here eogs, hess in the top ten today. >> exxon and chevron up as well. less than 1%, but given their moves already, energy has been, of course, a great performer this year. certainly that was not the case last year. jim, it's interest, i went with, all right, cash flowing are going up but you went to the

idea of why not increase your dividend which i think -- and he also -- you do wonder how much capital can you throw again the stuff, is it not yesterday ready? there's only so much capital that can be expended at this point. and/or others initiatives. >> i think you raise a great point. the money being used -- they're not throwing the money away. they're trying to build new technologies, but it's kind of like a card game you say, listen, 10 billion, and you say i raised myself $2 billion? i don't think mike can raise his solemn he just took it from three to ten. why does he have to take it from 10 to 12 >> i think it's to say, you know

what we have to return something. remember when oil went full tax. >> i can't imagine that, but, well, we do have to keep a close eye on it, obviously, as you look at occidental, what is buffett get on that preferred? 10%? >> yeah, eight and change? i don't want to misstate it, but you're right to bring it much. let's look at that stock that stock, david, is doing well if they wanted to, they should issue stock, and peep would lap it up. >> yeah. i think you're right, even with the stock up this year >> we did, to albertson's, only

grocers you will tolerate given the margins. >> you're talking about a company that the margins were doing very poorly. and basically taking -- when you get 220, 230 going to 250, 260, but i say -- is he coming up >> i think 10:00 a.m. >> he was on my show last night. >> he's spreading the love. >> i love him, because he takes a situation -- this situation is now almost doubled, and everyone said it's hopeless we never lost customers, kroger is good, and these guys are better, tell him i don't my is him. if he ever wants to go on my show, i'll be do with an investment club, and i love him.

>> they're very strict here, as you might imagine, and milkin, accounts so focused on health care, they have been very strict, making sure everyone is wears n95. you would be very comfortable here, even though you're fully vaxed here. >> san francisco and l.a., they had it under control, but they're treating it as if we're at the height of the pandemic, aren't think >> it is interesting, because the case levels here are quite

low. in speaking to a number of people last night at dinner, we talk so much about return to office we'll talk to carmine about that in l.a., you have a mandate you have to wear a mandate in the office at all times. you might imagine that dissuades people coming into the office. i think it's a reason, carl, why you might not want to go into the office. >> and now you've got dr. gottlieb tweeting about this new variant, ay.4, been in the uk since july, he argues. we don't know a lot about the prevalence or transmissionibility, but a reminder we need robust systems to identify any new variants, whether they have escaped

immunity. >> the late great colin powell, when you hear he passes away from covid-related, you presume, well, maybe he didn't get vaccinated, but he was totally vaccinated that scares me, and it should. what it says is when we question the people who are vulnerable, maybe it's higher than we think. i know a lot of people are handling themselves as if there was never -- i was in boston this weekend you would think there was no covid. just the opposite of california. but there is covid. >> that's the same story when i was in nashville a couple weeks ago. the point originally was to keep the healthcare system from coll collapsed. >> i remain that the peak is

here i'm reverting -- i was with someone this weekend who said, i may have to go to the office i'm thinking at what point in my career do i say maybe i'll get covid, maybe i won't there was a moment at goldman sachs, i put my jacket on my chair, and people thought i was looking. now i may have to go how is this possible i'm thinking of going. >> simon property i think close to an all-time high. morgan stanley reiterating. >> i saw that j.c. penney is open the other day thee reinventing what do we think about sax

offering online. what was that, david >> simon property has had a very good move. >> people won't go to the office, but they're happy to go to the mall. >> including restaurants and more >> right that, of course, is again a key question we continue to come back to. i think -- a number of people i talked to made the mistake of going to new york thinking i would have a meeting on friday nobody's in the office on friday yeah i do friday, and then would say, a three-day weekend, but i made a mistake. nobody would see me on friday. as the goldman sachs report -- we're talking about it there, but i don't have much -- i don't know what your thoughts are. initially my thinking is macy's

is worth a ton more. they do have a brick-and-mortar business that could do very well i said, macy's remains undervalued based on this, because i don't really think much of s-- >> we've been saying all along there have been these bogius jvs. >> you know, i don't think it's going to be one off, but karla, i have to tell you, it city -- goldman has people who work

there full time. >> mr. scherr is leaving as a cfos is a big blow but that would be very big for them >> if i were the chinese, i would put my money there in a nanosecond. >> a good piece in the times about, i guess they're call it competitive coexistence, if we're going to 3u9 a label on it. still to come this morning, another "squawk on the street" exclusive. chairman of the ey

highest level since october 12th, but it's about the front end. we got to 45 basis points, that's a post-covid high it's off a touch we'll be right back.

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welcome bulk to "squawk on the street." we are live from the milken institute conference here in los angeles. a lot of this year's meeting is on esg, diversity and inclusion. these are areas that you obviously know very well you have spoken about -- i just sat down with mike wirth, but you've talked a lot about how we have to have robust metrics to measure all this stuff that everybody promising they're going to do, and be able to compare and how we know.

>> the short answer, david, is not really, but here's what i would say, in terms of the esg, you have to build it into the strategy, whatever sector you're in, because if you're just reporting on metrics, and it's just a check the box exercise, that's really not going to work in the long run. we always encourage companies to drive it into their strategy in terms of what to do, and then it comes to reporting and the metrics, this is something we've been working very hard, ey as well as other big firms, on creating metrics that are across esg, moresimple, and starting there. we did this with the international business council there's 21 core metrics. we have over 100 companies signed up to record on this. over 50 have reported already. so we're encouraging people to

use this as the building blocks of standards the standard setters are separated out a bit. my view is if we're not careful, we have to work at it. otherwise we're going to end up with, at a minimum, two sets of standards, could be more. >> so we need a global standard. >> i totally agree with that. >> it's not as though there isn't an enormous amount of capital being generated, is a lot of it being misallocated. >> i would sanityi being misallocated i think a lot of companies, a lot of years are looking for the right investments. we're working on something with smi to create more green projects underserved countries. this is something we're doing with several ceos.

we're trying to drive that, but they need consistency. they need to make sure their investments are safe. >> so your thought is if and whether we get to the global standards that we can be confident about, there will be even more money available for the various efforts taking place, and at least allocated to those doing the right thing? >> absolutely. absolutely this is something, when you talk to investors, asset managers, asset owners, there's no doubt they are very focused, so that's something they're going to continue to be focused on. it's something that's real we have to solve this climate problem. if we don't, it's going to take comp

companies. >> that's a lot to ask if you look at where we were, it's amazing the amount of progress that's been made. one of the problems that i personally think, we have to look at it holistically. i was speaking to a ceo here, europe only cares about climate, the university only cares about diversity and governance, and asia only cares about governance we have to get it all together for it to make sense. >> are we ever going to get employees together in a place we used to call the office? >> that's a great question look, at ey, we are focused on a hybrid model the average age is 27 1/2 -- >> so they won't show up one of your competitors said they don't have to -- >> yeah, i totally disagree.

our young people, we've done a lot of surveys, our 20-somethings, they want to be in the office, they care about their year the most senior people aren't in the office. in a lot of states, we mask man >> talking about them here in l.a., yeah. >> no one wants to go to the office and have to wear a mask all day. we have to get through the mask mandates in our new york office we have a new office in new york at 1 manhattan west right near hud s sobson yards, we're 40, 50% capacity tuesday, wednesday and thursday it's more crowded. we're getting there. we believe we have to have people back together at our clients in offices, you know, we're always going to be flexible in terms of people working from home here and there and some jobs -- >> flexibility now, the ceo is going to say i expect five days in the office, they're not going to succeed in that are they? they're going to potentially

lose employees i always say flexibility goes both ways. the ceo of the company has to be flexible and the employee has to be flexible. whenever either one is not flexible you will run into a problem. you know, we at ey even before the pandemic, we were pretty flexible around this we had people working from home and clients, and that's where the world needs to get to. i don't agree with people not being in office, not -- because we need a culture, we need people, mentorship, that's part of our business. >> back to measurement, it's funny because so many of the ceos i've spoken to say, yeah, but my productivity has been as good as be ever and you would say the same thing, my question always is, are you measuring everything lost and can you measure it >> it's also a short-term versus long term, david short term, our business has done well. we've used technology and it's done really well long term, in terms of interacting and training our people and so forth, we need people together. having culture, developing relationships with your clients,

there's many stories, people going physically to a client and getting the work versus someone trying to do it virtually. the more we hear about those things the more it will come back together. it doesn't have to come all the way back we should be learning some things from the pandemic like no reason for me to go to singapore for a two-hour meeting anymore that hopefully won't happen. but i disagree with what our competitor did totally. >> it's interesting. still an experiment although i'm pretty sure nobody is showing up on fridays except me, carl and jim. >> thank you. >> appreciate it. >> let me send it back to carl and jim. >> it's true, jim. we've been here since june. >> we're here. we're here my stepdaughter works for ey and they're on the road all the time what can i say car mine is a good friend and a great interview. >> thanks, david great stuff to start a few days and we appreciate it dow climbing off the initial

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they're on hold for their home buying project remember zillow changed its model and do more than just what's the price of my house and they've been buying and acquired 3800 homes in the second quarter. are they pausing because of technical problems or because of how much inventory do you want to carry if housing, like our friend ivy says, who was on this week and really the dean of the group, is peaking. i thought this was an important call because if zillow says it's just technical, fine, but if it's worry about inventory, maybe that 22% up housing, 60% next year, maybe it's time to rethink the housing as the greatest story ever told. >> that would have implications for blrtuilders and a lot more. >> what's tonight? >> one of the great growth companies of all time, barry mccarthy, ceo. and what i think is that let's take a look at this company. used to be the old currency to

check, but they've done more since then very exciting show today. >> we didn't get to square or bitcoin or atf. >> i am selling ethereum and we didn't talk about toast, the way to be able to handle a lot of restaurants' point of sale not ours. >> we'll get into tonight, "mad money," 6:00 p.m. eastern time coming up, we will talk to the ceo of grocery giant albertsons reporting results today. big div hikes. back in two minutes. ♪ ♪ ♪ ♪ with a bit more thought we can all do our part to keep plastic out of the ocean.

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good monday morning. welcome to another hour of "squawk on the street. i'm carl quintanilla with morgan brennan and david faber who is live at the milken institute global conference today. a drop at the open but recovered a touch. dow down 100 as we got energy costs across the world rising, china gdp was weak, but it's a big week ahead from tesla, snap, proctor and intel.

david? >> meantime carl, we have data out just a few moments ago diana olick is here with me at milken and has that for us >> david, it was a surprise to the upside for sure. builder confidence in the single family housing market rose four points to 80 on the national association of home builders wells fargo index, that's down from 85 in october of 2020 and from the record high of 90 in november of last year, but anything above 50 is considered positive the builders say they're still having major supply chain issues and are still seeing higher costs for land, labor and material but buyer demand is apparently outweighing all of that. of the indexes three components sales conditions rose five points to 87, expectations in the next six months increased three points to 84 and buyer traffic rose four points to 65 the builders chief economist warned affordability is deteriorating as interest rates rise in its forecast just released the mortgage bankers association predicted the rate on the

30-year fixed would rise to 4% by the end of next year from around 3% now causing a 62% drop in refinance volume for lenders. david, it's going to be a rough year for them i think. >> rates go up, refinancing down, thanks over to you, morgan. >> a rough year but a great morning seeing both of you giving us a special edition in l.a. we are 30 minutes into the trading session. here are three things that we are watching this morning. zillow shares, speaking of real estate, sliding following a report that real estate tech company has halted its home buying service, due to overwhelming demand, it's beyond operational capacity down 10.5% right now. bitcoin continues to hover just below its all-time high as pro shares prepares to launch the first ever bitcoin futures etf that's set to begin trading tomorrow here at the new york stock exchange it's the first of four that could come to the market before the month's end. bitcoin up 2% this morning finally with we continue to

watch crude oil as wti and brent trade at their highest levels in seven years in the 80s as demand recovers amid a global energy crisis and temperatures lower in the northern hemisphere and many folks, many investors, focused on energy as we get more earnings from more companies across more industries, carl >> in the meantime we mentioned the disappointing data out of china. third quarter gdp growing at 4.9, looking for 5.2 as industrial activity weighed on the growth numbers over there. obviously the property crunch and energy crunch taking its toll here in the u.s., dow, s&p, nasdaq posted their best weekly gain since june, july and august as we had for what is historically some of the market's best months there is a bear case to be had i imagine there is maybe mike santoli can help. >> i think it is fair to say the action in the market put the burden of proof perhaps back on the bears who think that we need much lower prices or longer lasting corrections, but it's still out there, that bear case.

why was the market so persuasive last week? we cleared some technical hurdles and spent six weeks repliesing for lower growth and coexisted with the supply chain stuff. seems like the market lost its capacity to go down on what we knew where we are left now is a slower and tighter risk of macro environment. slower growth, the china numbers, coinciding with short-term yields flying around the world, inflation expectations going up around the world and expectations for central banks to do to tighten in the face of that, really flaring up i think that's the cocktail that would get bears a little more excited in the short term out there. i don't think we're at that critical moment but a lot of factors are moving so fast including xodty prices that you have to be aware of that retail investors seem to belatedly buy the dip, see if they will be as much of a strong force. the final point might be it was a bit of an incomplete

correction yes, seasonals turned better but last year it took until the end of october to really clear the market with a lot more downside in the major indexes guys >> the flip side of all of this, and i realize we're still early into earnings season, mike, but so far what we've heard from companies across a number of industries is that, you know, the consumer is there, the consumer is strong, the consumer is healthy and that potentially will help power earnings growth, maybe not the type we saw in the last two quarters, but potentially stronger than expected earnings growth nonetheless. >> absolutely. so far it's encouraging what companies have had to say, the monthly retail sales number on friday contributed to that idea, that we do have this re-acceleration scenario and companies ability to navigate around a lot of these problems and preserve their margins that's probably the biggest variable out there in the near term but still seeing 80% of companies beating, seeing the stocks get rewarded to some degree for the beats, so a lot of earnings season left to go.

it's relatively encouraging so far. >> all right mike santoli, thank you. the s&p and dow down slightly. supply chain disruptions may worry some companies but albertsons isn't feeling the sting, delivering strong second quarter results announcing a 20% increase to its quarterly dividend and raising the outlook to the 2021 fiscal year. joining us for a first, vivek sankaran it's great to have you back on in terms of the numbers you put out this morning, we were talking about the strength of the consumer talk us through that as with you have also had to navigate supply chain challenges which you've been hearing from so many companies. >> thank you, morgan yes, we feel good progress we're making in the company and the results we delivered i did hear you talking about the consumer and the consumer, we think, is still really strong. we haven't seen any trade down

in our business which you would typically expect if the consumer was weakening and continue to be eating at home in my opinion i think there's some stability in their behavior and they're strong you're right, there are some -- we're having out of stock challenges or in stock challenges if i can call it that have continued right through the summer and the fall, but we work to given consumers different choices so they always have something available. they can't get exactly what they want they will always find something that's available to finish their shopping and finish the basket >> yeah. i mean just in terms of i think about -- this is one example but turkeys, i mean, chains such as yours tend to secure turkey supplies ahead of thanksgiving many months in advance in terms of inventory and your gauge as you look out towards the rest of this fiscal year since you did just up guidance, do you have a sense that in terms of some of the supply chain pain we've seen that

perhaps we're peaking here or still too soon to tell >> first, morgan, it's important for me to point out that we don't have fundamental challenges like we did early days of the pandemic so people are not going to be short of supply, so there's no reason to panic on that front. i think it's -- you may have to have -- be a little more patient in finding what you want when you want it, but take thanksgiving and turkeys as an example, what we're doing this year is we're sending the turkeys out to the stores as we get them and what's very interesting is consumers are picking it up, they're taking it home and they're buying a lot more of the thanksgiving products a little earlier. i think that's going to ease the supply chain from our standpoint and ease concerns from a shopper's standpoint on having what they need for thanksgiving. >> vivek, we're in this environment where investors are asking how supply chain challenges and inflation in your case food cost challenges are

going to impact margins and how technology and productivity are going to offset that you seem like a really good case study in how that's going to be done if it's going to be done. can you just explain how you think that's going to work out >> yeah. the philosophy we have in our company you always need things that are we call margin tailwinds and thoseare things in your control. managing mix, reducing shrink in a business like ours, when you have so much fresh in our stores there's waste that goes with it and managing that. getting smarter about our promotions, improving the own brands mixing up portfolio and finding ways to reduce costs those are things the our control and we focus a lot on that and then we always have to manage pricing on the other side of that coin to make sure we remain competitive and allow consumers to complete the basket within a budget. then you mentioned technology, technology is part of what we do go ahead, please. >> i was going to ask you about

what kind of investment we're talking about as well as what kind of price you are taking out? >> yeah. so from a technology standpoint the investments are to drive productivity we make a lot of our cut fruit in our store, sandwiches in our store and so on, and in the past, somebody would have a history of what they would sell on wednesday, today we use data science and you need to have six watermelon bowls ready by 10:00 a.m. and need to go back and it's very prescriptive because the data behind it and the computer keeps learning and gets more precise on what people need to make. that drives both productivity because it's less waste, you don't waste labor making watermelon bowls you don't need, that's where technology, we find technology is applicable just about in every part of the business to drive that productivity which we can give back to consumers in terms of growth, new ideas, new products and price.

>> so i'm looking at your digital sales for the quarter, they increased 5% on a two year stacked basis, 248%, we know what the pandemic did to e-commerce at stores such as yours. is this a secular shift and are there going to be consumers that never go back into stores and do their shopping online and get that delivery or that roadside or that curbside pick-up >> morgan, there are some who probably just stay on e-commerce, but the vast majority do both, and they spend more with us when they have that ability to come and shop the store when they want to, but have the convenience of delivery or pick-up when they want it we think that's going to be the more prevalent behavior going forward, where people are shopping online and visiting the store. for some, visiting the store and picking out the fresh product and having that experience in a good store, is good. they enjoy it. so that secular shift i think is

going to remain. i will tell you that we're not seeing the same growth rates as we saw through the pandemic, we're seeing growth because we're giving customers shorter windows for delivery, shorter windows for pick-up, and just improving the service levels overall. >> so finally, vaccines, how are you approving that with your workforce? are you mandating them in stores >> not mandated. we continue to make vaccines easily available for a large part of our population, 1700 of our stores have pharmacies in them, we provide mobile clinics, we go to the offices and to the distribution centers we're focusing on continuing to educate our associates and we also continue to follow a lot of the safety protocols as you can imagine, morgan, we've been at this for 18 months now and have figured out a lot of things we need to do right to keep people safe, our associates and our customers. >> vivek sankaran, thanks for joining us ceo of albertsons. >> thank you.

take care. as we head to a break our road map for the rest of the hour a check on the media landscape as disney sees a slower growth. >> head of seamans u.s. arm and carlyle group ceo. leheevt isally ahead of apple's unasd enth afternoon, we will tell you everything with you need to know a big hour of "squawk on the street." stay with us. the pursuit is on. the pursuit of outperformance at pgim. with deep expertise to outthink across multiple asset classes, actively managing investments in the world's public and private markets. outscale, with the resources to serve 1,500 clients in 52 countries. and outlast, with long-term conviction that looks beyond today's volatility. join the pursuit of outperformance at pgim. the investment management business of prudential. i promise - as an independent advisor -

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the street." we're live from the milken institute global conference in los angeles. joining us now is seamens u.s. ceo. >> great to be here. >> so many things to talk about given the size and scope of your operations in the u.s. start off on supply chain. huge issue what are you seeing out there in terms of your own ability to source what you need in terms of chips and/or customers as well. >> ships and other supplies as well there are critical supplies that are really stuck in bottlenecks all around the world during the pandemic, our supply chain folks stepped up and became the heros of the organization they've been using some risk management techniques, diversifying our sources of supply and now using some data analytics that are giving us the chance to predict and be prepared for the future.

actually, the big thing we're seeing is an emphasis throughout the supply chain on going global making sure that we're taking advantage of global innovation but finding more regional sources of supply. >> you've talked about local but is this a real thing are we seeing it >> you twin it with this idea of bringing manufacturing back to the u.s., which, of course, many people would applaud although it's not clear to me that job, the people are there necessarily to actually fills the jobs, but is this a real thing you're talking about? is this happening? >> it's very real and siemens we're a global enterprise with customers around the world in the past people talked about reshoring, would we move operations from elsewhere in the world into the u.s that's not what we're seeing we're seeing an and. hey, i want to be able to produce closer to demand, and that is actually beginning to take hold. i think the pandemic highlighted for people when we could not get critical supplies here in the

u.s. and we were dependent on other regions of the world where they were shut down by the disease we knew it was important for us to be able to have supplies here. >> 20 plus, 30-year period where it was all about sourcing from the most efficient, least -- lowest cost place. >> that's right. so the last couple decades have been able mass production. the idea of get things as cheap as you can supply side economies of scale there's a shift going on to demand side economies of scale what if we had mass customization instead. that's what the future of manufacturing can be about. >> give me a sense then for what you're talking about if you can. a real world example. >> a great example might be what if i'm producing something rather rare and rather than go to previously a manufacturer who was mass producing these things, get in line, wait for them to be able to handle it, what if i could use additive manufacturing and have it printed on demand for my need or if i want to customize the car, the shoe. we heard from volkswagon

yesterday that they are really beginning to see an uptick in people preordering the vehicles they want, so they're not producing in the hopes that there will be demand, they are producing on demand. >> so is this tied in with this idea of a digital twin as well >> that's exactly right. digital tools of today you know this last decade there have been so many advances in digital tools, in entertainment and our retile lives, et cetera. all those are coming into the internet of really big things. the idea that when we work on infrastructure and industry, we are actually able to connect things like we never have before and share digital plans and tools. we can actually devise products before we ever have to bend metal. by simulating and modelling. speaking of bending metal, infrastructure bill, an important one for your company. >> certainly. >> what is your sense in terms of the likelihood it will get passed and there will be some

allocation, significant allocation, towards infrastructure build in the united states? >> i'm an optimist. >> where does that come from >> it's a deeply seeded belief that actually i actually think it's these moments of intense disruption where there's a lot of passion even on both sides of the aisle where we get the greatest momentum. i'm confident we're going to get to an structure bill and here's why. if any of us were trying to run a business and couldn't agree with our colleagues where to devote research dollars we would soon be out of business. the country knows we need to make investments, and it goes beyond concrete and steel. this is a moment we're building out electric vehicle charging systems, a moment we're going to be upgrading our railroads, so this is a moment where what we do, what we invest in infrastructure, will yield returns for decades to come. >> okay. but what gives you the confidence, again, that i mean given the inability of congress

to really sort of meet the challenges for this country at least in the pass in terms of legislatively, what gives you the confidence it's going to happen this time and do you think it is going to happen soon. >> i think it has to happen soon and looking forward to the end of october if it slips to december, i get it there's a lot of political points to be made. the other thing is, there's a heck of a lot of private capital sitting on the sidelines waiting to be deployed and i actually think we'll inch forward in a private sector, we could take giant steps if we had government support. >> again, give me an example of what you're talking about? >> an example is electric vehicle charging we will see a i'll call it a mesh of electric vehicle chargers built out there's demand for it. you've seen private companies go out even with proprietary systems and set up that capability now what if we actually had government support to invest in that and jump start? we could reach the tipping point in electric vehicles much faster that's better for the

environment and better for the country. >> all right final sort of area because i know you've talked a good amount about it your concern for cities, given the lack of people going back to the office, something we talked about many, many times of late how concerned are you? how important is it to you at siemens this happens >> well, we're experts in all things around building from the building automation systems to as i say the connection to the grid, and cities have suffered during the pandemic, but we're in a moment of transformation. do any of us know what the future of work is? no i don't think so the most important thing for us to do is embrace the idea that we're in the midst of change and likely will be for a long time to come. what we need is to focus on what's the technology that will makes us more resilient? what are the creative ways we can use our center cities. what if they become more mixed use than ever before people then choosing where they live based on the total

lifestyle they want to have. >> right those are huge changes you're talking about. they will require government to be very involved and require enormous amount of potential capital as well. and we still don't know where all of this will settle out. >> we don't. that's why we at siemens are using our voice. did i tell you i'm an optimist >> i can see you are what's your voice saying >> our voice is saying this is the time to invest in the transformation of the cities' electric grid so they're able to withstand storms and, you know, the uncertainties to come. this is the time when buildings can be more flexible, a time when buildings can actually be healthier with air purification systems and such, that will make it a no-brainer for employees to want to work in a new environment their employer makes up >> appreciate you taking the time thank you. >> it was a pleasure more exclusive interviews from milken still aadhe we'll have the ceo of carlyle who will join me next. stay with us.

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spotlight. taking a look at the vanguard communications service etf as investors digest media headlines this morning it's trading flat. barclays reiterates netflix at overweight as analysts take disney down to equal weight on slowing subscriber growth for disney plus. you can see shares of both of those companies are lower. disney is down 3%, dragging the dow lower. bloomberg out with a report that netflix's record breaking hit "squid game" is valued internally at $900 million that series cost just over $21 million to produce meantime the ceo of carlyle is coming up next in an exclusive you do not want to miss with a mixed picture from major averages this morning. stay with us. ♪ ♪ ♪ ♪

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>> i'm frank holland here's your cnbc news update general colin powell, the country's first black secretary of state and joint chiefs of staff has passed away. his family says he died of complications from covid-19. he was fully vaccinated against the virus. powell was a respected military leader and diplomat but his reputation suffered after he made faulty claims before the united nations to justify the war in iraq. colin powell dead at the age of 84. the supreme court blocking cases against police for excessive force in california and oklahoma the justices ruling the officers have legal protection from the lawsuits under the doctrine known as qualified immunity. russia's foreign minister says his country is suspending its mission to nato. germany's foreign minister says the decision will damage the relationship between nato and russia. u.s. officials are working to secures the release of 17 american missionaries kidnapped in haiti police say they were taken by a gang notorious for killings,

kidnapping and extortion that's the latest. david, back over to you. >> thank you, frank. we are live from milken institute global conference here in los angeles, as we have been all morning. joining us is carlyle group ceo kewsong lee, good to have you, in person, first interview you and i have conducted you got a quarter coming up next week you're going to report so we can't talk specific about the business but i do want to, you know, reference your last quarterly conference call. you talked about the velocity of virtually all aspects of your business has increasedp what does that mean >> everything is speeding up the world is speeding up and our industry is no different it's not only about deals speeding up, our private equity transactions are occurring 20% factor, underwritings are done in half the time, but what i'm trying to communicate for our firm, we need to think bigger, move faster and perform better

and on the move faster part it's not only that we can get deals done faster but that we can pivot faster to opportunities. what i mean by that is, in a world when maybe buyouts are too expensive we have to pivot to growth in an area when maybe mat tour economies are struggling for deal flow we have to go to the emerging markets it's about having a world-class platform across all asset classes. we're in five continents, 30 offices around the world, and i'm pushing the organization to understand how we have to move quicker and adapt and pivot to opportunity. >> and did the pandemic help or hinder that ability? >> that's a great point. it definitely helped at first to be honest, al of us were taking a step back saying whoa, what does this mean? eventually, quickly, it's great testament to the team and our leadership, we pivoted exceptionally quickly to understand in a time of disruption, our credit business can provide lending to small and medium sized companies that needed financing when the banks

were pulling back. there was a time when we found opportunity in india at a time when foreign direct capital wasn't going there i think as i look back on it, the pandemic actually helped us and accelerated the trends that were so -- >> virtual l p meetings, diligent sessions, road shows, does that stay virtual forever >> i think a large part will stay virtual because it's so efficient and there's a lot of work that has to be done just clearing out some of the basics on diligence and early stage goat know you. at the end of the day, david, we're in a judgment business it's about people, it's about understanding who the ceos are, what their plans are, can their teams execute. can we really partner with them effectively to grow. that's our business. it's about growing businesses together you've got to do that in person. >> right there is still a personal aspect >> absolutely. >> even if you do the road show? >> absolutely. >> when talking about pivoting you said our buyouts too

expensive, you raised the question, are buyouts too expensive? >> asset valuations are high everywhere name one class where they aren't high in private equity valuations are exceptionally high which is why you have to understand how do you drive returns moving forward and at carlyle, we view ourselves as a modern day business builder you have to have more global orientation in a world which is drifting apart, our global five continent offices helps us in a world where views are more polarized than monolithic, our diversity, the most diverse private equity firm helps us at the end of the day we need advanced capabilities to create returns. that's -- >> i know another way to create returns, leverage. get your leverage up that's a simple way. that's the one component here with rates continuing to be extraordinarily low, where people would say well, yes, things are expensive, however i can finance them at low numbers.

>> and to doubt we use leverage. but i would say buying low, selling high, using leverage was the old way you drove returns in private equity we're driving returns 60, 70, 80% of returns, are growth the only way you can do that is to drive top line, to do real operational change and improvements and world-class capabilities to make these companies better. >> the cynic would say, another private equityguy telling me about how they change the culture of the business, how they really can optimize it for growth when it's about the balance sheet and benefits of leverage what do you say? >> you have to engineer a return, 70% of returns are from growth examples like using data scientists to figure out how to drive growth in these young start-ups that we're backing it's taking a company like beauty counter and figuring out how to take their green clean beauty model to e-commerce looking at convergence of

industries, health care, technology, not just about health care or just about technology, but it's using models and data to get products and pharmaceutical products to market faster. >> does it mean you get involved earlier in a company's growth cycle so to speak? are you investing earlier than you might have five or ten years ago? >> absolutely. we have pivoted to growth. we do both we do big, large buyouts like medline and we're now able to do growth investing in the disrupters and frankly, i love the way carlyle is positioned. we have deep sector expertise and we have an ability to appreciate what's going on in the minds of incumbents and what do they need to do to embrace digital in order to keep their franchises growing, but we also have great perspective on the disrupters and young entrepreneurs who want to steal share, and so to have a view on both, makes us really better investors. you can't do big buyouts without

understanding if their cash flows are protected. you need to understand what's happening on the disruptive end and you can't back these growth companies at high multiples unless you can appreciate how they take the share from incumbent. i like how our platform is positioned. >> taking more risk in a way there's a mountain of growth capital chasing a lot of these names, making them particularly expensive, whether it's mid or early stage investing or later stage. what gives you the confidence or is it really a portfolio approach and if you get a 50 on one you're happy to take a zero on the other. >> it's portfolio construction it's understanding how to create a portfolio of different types of risks and rewards, so that you can take some really important growth bets while also anchoring returns with very large, stable cash flow generative companies something we're good at doing. >> any particular industry where you guys have a preponderance of capital being deployed

>> i would say there are two basic themes that we're looking at first, the far east obviously is a destination of capital and you know, people start to -- people think about that as china and clearly there's growth in china, clearly valuations have reset 30, 40% because there's recent challenges, but folks have to appreciate india needs foreign capital. japan, third largest capital in the world is going through restructuring and corporate restructuring and korea has a lot of opportunity as well that region is strategically very important second, you know, when you have valuations as high as there are you're going to see volatility. >> right. >> the question is how do you play volatility? it's hard to do in private equity, but private credit enables you to take advantage of volatility much better, especially in credit opportunistic strategies. >> providing that credit. >> even for other buyouts potentially. >> absolutely. which is a growing trend in our business. >> i've seen it.

some financing don't include banks at all it's interesting, we still call it private equity and yet the strategy is pursued by you, a name we've known for years, or kkr and blackstone and apollo, very divergent these are not all the same at all any longer. >> i think the industry is really evolved it's really changed. we're in a next generation of industry leadership here >> you are as well now we see it at kkr. >> these platforms have diversified. we have world-class private equity, private credit, infrastructure, solutions, real estate, these are world-class strategies and it's not just here in the united states, it's around the world, and it's a wonderful platform again, if you can figure out how to pivot, look for opportunity and really move to where the opportunities are, it's really a good reason why i believe you're going to see secular growth in private markets for many, many years to come. >> all right private markets have been the

place to be for least this year, if not longer. thank you. i appreciate you taking time kewsong lee from carlyle. >> thanks. ahead of apple's unleashed event this afternoon a look at what to expect later on and whethers the stock still has room to run, coming up next plus it is the tenth anniversary week and kicking off icahn and chenos. 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.

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winner for apple and now the expectation is new macs could be on the way, at least what we think is coming at this event later today, specifically reports suggests the company will introduce high-end mac book pros running on apple's own chips instead of intel's processors new models could apparently include a new design, charger and displays in 14 inch and 16 inch sizes the mac has been a standout for apple. more people look to those machines as they learn to work from home during the pandemic and recent three quarters ending in june 2021 mac sales totaled $26 billion. up nearly 33% year over year one question is what all this means for intel. bernstein estimates apple accounts for a low single digit percentage of intel's revenue, but the biggest risk these macs are a hit and encourage others to follow suit reports also indicate that apple

has been hard at work on the next generation of its lower end airpods too. we're waiting to see if those make an official debut today as well they estimate airpods account for 5% of total sales. part of the faster growing wearables division back to you. >> yeah. that's evident every time you walk down the street thank you. our next guest has a buy rating on the stock, points to launch dates and price points as the key factors to watch this afternoon. senior retail analyst tom forte joins us. i wonder how you're thinking about today's event, largely because we had an event, but a lot of people did upgrading in the last year and a half, what's the bar for a new product right now. >> excellent point, carl the way i think about it, it's mid october and if you just look at the very big companies, google, microsoft, amazon, they haven't really had their employees return to work

if you think about the setup for working remotely, learning remotely, the setup for apple's mabs are still good today even late in calendar 2021. >> so you think it's going to be more of an enterprise play than a consumer play? >> great question. but i do think that the big opportunity here is as you pointed out to roll out new mac book pros featuring apple's chips rather than intels i think that's been driving some of the sales in addition to the pandemic field performance you've seen in the mac laptops but also in the tablets. in my mind the bigger question is, how soon can they get the product in the hands of consumers and are they going to have to take price, given the severe logistics inflation that we're seeing out there i saw more paying attention to release dates and price points than product features, for example. >> yeah. that's exactly where i was going to go with you, tom, because we are coming into the holiday season so just how important is

those next several months and the timing of these products for the holidays for apple historically >> yeah. great question, morgan the way i think about it is, if you looked at the last event, the only product that had a to be announced launch date was the watch. apple has done a better job than many of its consumer electronic peers in managing ultrachallenging supply chain environment. but i do worry that this will be the holiday season where there will be nothing but digital gifts under the tree so closely monitoring the situation there >> yeah. we are using all the availability trackers we can find, especially on the phone, tom. there is some work this morning that argues two things one, that lead times are coming in just a little bit, not as long as they werethe last couple weeks the other is that the consumers appear to be sticking with the high end on the phone line despite the high lead time is that encouraging?

sthooing that's very encouraging. i was shopping at verizon an t-mobile and had a similar experience which was you could get a 13 but if you wanted anything that started with pro you had to wait well into november perhaps to december to get it i do think that's in some ways good news for apple because it suggests demand is strong but shows the supply chain challenges the company faces >> we're showing a year to date chart of apple it's had a strong run over the last couple years in generale, but what's the next catalyst when you look at the stock in terms of the leg higher? >> the good news for apple is they're in the midst of a multiyear upgrade cycle for iphones and still the most important product from a sales and revenue standpoint i would say continued strength in iphones that drives shares higher from here >> tom, ft has this piece out this morning that says that the advertising business at apple has tripled its market share

since they introduced those privacy changes to iphones which is obviously having an effect on other companies like facebook. what do you read into that. >> my impression from the facebook vantage point if the ads on facebook are still effective even if the element of tracking is not as significant, then facebook could be more than okay but i do think advertising is a bigger opportunity for apple they're clearly trying to protect the consumer from a privacy standpoint but they could have a benefit for them as far as advertising revenue goes. for facebook, their ads are effective if not tracked as well. >> the last story i want to get you on is from intel ceo pat gelsinger talking to axios about how in the end it's going to be about making better chips over at intel if they're going to compete with apple how do you think of apple not as a phone company or media company, but as a chip company that happens to use its own stuff?

>> i think of apple selectively looking for opportunities to be more vertically integrated for chips. it's given them an opportunity to improve the performance of a lot of their devices and gives them a wonderful opportunity to market those benefits and marketing is serge one of their core competencies. >> yeah. it's going to get a lot more tom. good to see you as always. if you want more on the product event this afternoon, do not miss "the wall street journal's" joanna stern with expectations of her own, including about new ear pods congp tmi uinhe next hour on "techcheck." ♪

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welcome back to ""squawk on the street." stocks are mixed to start out the week with energy being a relative outperformer. leaving us to the downside, is the utility sector it is down about .7% and just about every stock in the sector trading in negative territory. some of the worst performers there include names like excel energy, pinnacle west and consolidate edson bank of america downgraded and cut its price target to 68 bucks a share. there's more, of course, ""squawk on the street"" ahead stay with us

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welcome back to "squawk on the street." they started trading stock

during the pandemic, but according to data out of the federal reserve, stock ownership as concentrated as ever. robert frank has that story for us hi, robert >> reporter: hey, morgan it someone of the mysteries of this market. more americans now own stocks but more of the gains are going to those at the top. robinhood alone added 10 million accounts during the pandemic now at over 22 million part of what the company calls the democratization of the market. but according to the latest fed data, the top 1% now owns over 54% of stock wealth. the top 10% owns nearly 90%. both just reaching all-time records. now, market economists say there may be three reasons for the growing concentration. first of all, you have the new retail investors, they're large in number, but may be small in account size the average robinhood account is now about $4,500 smaller and younger than those that say schwab or vanguard

new investors came into this market at higher prices so their upside may not have been as large. and they're more likely to trade rather than buy or hold, especially with the most volatile stocks, so their returns generally have been lower. the 1% saw stock gains of 43% over the past year and a half. compare that with about 33% for that bottom 90% of investors morgan, we should all cheer these new investors coming into the market we should cheer stocks being more broadly owned now we need the wealth to follow >> yeah. robert, it's david you know, we've always thought, though, that even the lower sort of half sort to speak have something at play because of their retirement funds, because of their pensions or some other connection is that being measured as well

here >> it's all included all corporate equities, mutual funds, any stake or contribution to a pension fund, all that is rolled into this so, that's all in the mix. and it was a little surprising that's part of the puzzle here you have all this new participation in the market you would think that the wealth would be slightly more widely distributed or maybe not even increased but what we are seeing is a slight increase in the concentration, even when you include the retirement accounts. >> all right robert frank, fascinating stuff. i'm curious how crypto currency will factor into all this in terms of research at the fed in the future as well but thank you for that report this morning. in the meantime, just getting a check on the markets with all the major averages now higher except the dow is led lore by disney after a downgrade there this morning s&p is flat, 4472 is the level there. energy and discretionary is higher.

>> we'll have a couple of great interviews, maybe even more than that morgan, so interesting to be together with people yet again and talk a lot about esg here, a lot about diversity and inclusion, clearly important issues in corporate america and ones reflected here at the institute's meeting. >> yeah. we're looking forward to all of your continued congress. that will do it for us on "squawk on the street. "techcheck" starts now ♪ good monday morning welcome to "techcheck. i'm carl quintanilla with jon fortt and diedra bow is a who is back after the birth of her baby roman. dee, great to have you welcome back >> happy to be back. >> downgrade for