"squawk box" begins right now >> good morning. after the gains of yesterday, you'll see markets at the flat lines right now. s&p up by a point and nasdaq indicated up by under six points treasury yields have picked up this morning you'll see the 10-year note yielding 1.369%. started to pick up after being stalled at that 1.6% level and bitcoin strategy etf up 4.8%

from the opening price it cloesed at $41.98. bito ended the day with $570 million in assets. bitcoin 64,016 within the striking distance of the high it set on april 14. andrew, i don't know if you heard a lot of commentary around this people saying you might be better off owning bitcoin itself rather than this etf just the idea of in times of trouble, you will see the etf

very likely trade at a steep discount it doesn't hold bitcoin. these are futures. >> always a thing. easier to hold in some ways. harder to hold in other ways >> but it is an entre to some people there >> we are going to talk to a former sec chair i wonder even though they may not like the underlying asset, does it pave the way is it preordained? >> i'm thinking it may be exactly what it is saying. saying okay, regulators aren't going to stop here it does open the door. >> let's talk about what's going on in the uk

doctors there are issuing an urgent plea to reimpose restrictions a warning of the uk risk and what they are calling a plan b they suggest health services to come likely under unsustainable pressure and ordering mandatory face masks in indoor and crowded spaces the number of hospitalizations and deaths have been rising. back here at home, general electric, union pacific recently imposing covid vaccine mandates in compliance with biden rules boeing and raytheon had already agreed to comply

three unions have filed lawsuits saying changes needed to be negotiated we are going to talk about this more at 7:30 a.m. with former fda commissioner dr. scott gottlieb we are going to have to talk about southwest which had this date set and effectively you are going to be fired if you didn't do it. now, they've taken the date off the table. it will be having interesting to see what happens as a result >> they've said you'll be put on leave and not paid i think december 8 was the day nows it unclear exactly what happens if you don't comply. do you continue to work and get paid or?

a situation where they pay you and keep you off the front lines? clearly, this has put southwest in a very difficult position same thing you were saying with these charges. the union saying you need to negotiate with us. they are trying to comply with the order that has come down >> it raises many questions. what does the biden administration do to enforce these rules themselves all of the talk from southwest those delays said were not related to any work stoppages. clearly something has happened and shifted in the balance this story is so far from over for better or worse. >> in the meantime, we should tell you about united airlines

earnings the company reported smaller than expected loss compared to the loss expected of $1.67. the airline didn't give any time line for when it thinks it might return to profitability but we'll ask ceo scott kirby that and more questions coming up at 7:45 eastern time. >> the parent company from chiles out with a warning. saying the labor shortage and commodity increase will impact its bottom line. now expecting earnings of 34 cents a share. full results to be released on november 3 working with partners to stabilize supply

that stock is out. that concern, when in earnings we are getting squeezed in such a huge way it sits at the two issues. labor for one and rising commodity for two. >> here we are when we come back, a company not having those issues. digital world. the squid game affect. netflix adding 4.4 million veteran tv exec breaks down the numbers. we'll talk crypto and earnings with nasdaq ceo and united airlines ceo transportation secretary peat boout and thern, more from times

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the news alert saying new york city will eliminate the

alternative option of regular testing. the mayor planned to announce this order today some 46,000 city workers would need to get their first sht by a week from now or lose their jobs of the 160,000 some workers, 46,000 would need the shot only 71% have said they are at least partially vaccinated 70% in police department or 60% of fire. if you are talking about force 40% of firemen in the next 12 days >> you could talk about blow back, people walking off the job. it does create potential real problems in the labor supply issue in new york. this has been an issue in prisons in new york. there is a deadline for workers

at the rutgers island prison they have a later lead line and struggling to get those numbers higher frmt. >> they are giving those workers a little more time because they are worried about the shortages. it has been a problem in other cities too chicago. they've had a problem getting employees to comply with the order to tell their bosses whether they've been vaccinated. i think 69% have reported whether or not they've been vaccinated they are trying to address that too. probably not a surprise to see this playing out in the cities and places where they were hard hit first and early on let's look at shares of netflix. the stock is down now $622.05.

beating expectations but growth in u.s. and canada has stalled with just 70,000 new add decisions. the founder of cnbc and cnbc contributor and maybe -- are you a squid game affianado >> i am. i have one episode left. please don't ruin it for me. >> okay. so there is growth those different companies reflect a continued challenge. >> netflix has defeated every bare thesis that has come at.

>> it what's left is that if it isn't going to grow further in the united states, i wouldn't bet the company based on that one. you see the strength it has. younger households are not going to have cable satellite. they'll have streaming services. you look at total broadband over the next five years. they have an enormous amount of growth there not only here but worldwide. you have 700,000 growing

that's 400 million to grow into. trends are totally in their favor. >> you talk also here. the idea that they could effectively surpass. is that something they'll need to do to get in there? talking business change and gaming for example gentle >> what amazed me. really setting the bar what they've done with squid game shows they'll continue to

be in a category by themselves i don't see anybody being able to catch them based on the stretch of the current machine they've had the episode this last quarter with disney plus and hulu combined. not only quantity but quality. they've had more wins than ever had in history they are hitting on quality and quantity the bar he set was that he was going after disney in terms of the disney fly wheel the combination of programming, experiences and consumer products he said that pretty hard and police italy

that sets up into a whole new world with a media company over time >> let's talk about dave chappell the company has gone through a sort of a crisis what do you make of what happened and his comments? >> i don't think from an investor point of view, that issue amounts to much. when you have a visible company putting out content like that that has the cultural impact, you are going to step into couldn't verseries this woenlt be the last one. i think he recognized relative

to the base were not well received and hurtful the creative types that they put on that have less than popular you views that they want to keep in the fold and not offend >> mentioning this hastings should get credit for creating a particularly unique culture. very transparent culture where almost all of the data and information is available to employees. they can see everything at all times. clearly, it started to leak. in part for the first time

there are employees within the company that didn't agree. if we did, they were top down companies. >> right this is not going to be the first time they have this controversy. they didn't back away from the notion that they'd distribute the programming. they have to understand employees may not agree with everything they say and will have to be more sensitive to putting forward content that different constituencies within the base can embrace as a counter to things that they may put out there. i thinks this a manage mgt issues

when you saw that they have this metric they say the program created $921 million in impact the show cost $121 million to produce. you are used to rating this is a different type of metric >> they don't have advertising revenue. readings don't mean much what attracts them is new subscribers. they indicated that their turn is lowerthan in 2020 in the middle of the pandemic but in 2019 also. when they look at this, i think it is not only the acquisition

and holding but also the value proposition and what they are able to do with price. one of the amazing thing here, as disney plus announces its numbers mostly coming out of asia those subs up 50 krernts, you see that cost is about 20 times what disney plus is charging that's a good value proposition. putting out anything like a squid game and you will see that revenue continue to grow >> tom, i'm going to get you a squid games jump shoot >> i'm ready snoochlt when way come back, facebook planning to

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welcome back facebook reportedly set to change its corporate name working to rebrand itself.

one of many products along with instagram, whatsapp and others >> it is funny, nobody likes us, wall street coming after us. let's change our name to ecafkoob i still call alphabet google and then kanye changing his name zuckerberg saying this is going to be part of the multiverse like guardian of the galaxys the timing is interesting given

the amount of pressure it seems looic a dodge >> i like multiverse better than metaverse. >> multiverse is what i'm watching >> maybe that should be the name. >>s that -- that's what they call it because of the watcher watching many universes. check this out, the backup of shipping containers at the ports now spilling over to neighborhoods in l.a. county area warehouses are so full, there is nowhere to place containers official ishls are looking for vacant lots. i spoke with someone who has known for years at the ports

they've been trying to move to a 24/7 system for a long time. the neighborhoods have been part of the problem they don't want the 24/7 they don't want the noise and traffic. that could be a big sticking point. >> always the sticking point in america, we have freedom of people and property. in asia, they just put the train track through your backyard. >> less frequency. when we come back, live to washington where lawmakers will face another deadline. right now, we look at yesterday's s&p 500 winners and losers hey businesses! you all deserve something epic! so we're giving every business, our best deals on every iphone -

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now democrats are looking for ways to change the debt

limits or eliminate it all together here we are again. much sooner than anyone wanted to think we were >> that's right. no one in washington thinks the current cycle of debt limit drama is working that is driving momentum to change the game. shift the responsibility of raising it to the administration that comes from democratic congressman yarmuth and boyle. it mirrors a proposal from a decade from mcconnell. allowing obama to raise the debt imi had and became known as the mcconnell rule that was coupled with an attempt to cut spending by an equal

amount that it would require both parties to get on board. >> what can you tell us behind that >> they are still trying to find that magic number. i'm told during the meeting, yesterday, biden floated a price tag of $1.7 to $1.79 trillion. that is lower than the

$2.2 trillion. some on the chopping block could be free community college. the child tax credit and leave programs could gets layed ou saying they needed a framework by the end of this week. >> thank you we'll talk to you soon about more of this sfloo coming up, a look at the city of the future and our interview with paul tudor jones. tcoras right about bitcoin wah listen to us live or any time on the cnbc app back after this.

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joining us now to discuss. the principal at jbm partners. ceo of howard hugs corporation a look at what cities in the future might look like

tell us about this project when i read about it, i thought maybe this really is the future and there is some interesting aspects of how you are putting it together. >> jdm, the company i'm a principal with, bought this company 20 years ago phoenix is the fifth largest county the fastest growing city in america. all the growth is there. we have 37,000 acres of pristine lands which is what i've been

doing. this is the right team to move this to the future >> what does this look like? are we talking about the creation of the next las vegas does this become a major american city? >> i think 30 years from now, what we'll be developing is a great community with a new urban yoidia >> what we are seeing in kmurnities we have many people mining there from the midwest people are redefining success. i used to define it as a corner office in the city but looking at great short

commutes home. time with family, access to nature, wide open spaces balancing success. the house ard hughes communities. that is the value we are meetling 30 years from now, we'll look at douglas ranch in the same way. it will attract people from all over that want that idealic lifestyle. >> how much of this will require bringing more business and industry to that area? >> as we speak, the arizona come erz authority, gpec, the greater economic council have so many companies in queue they are all coming. looking for a new beginning.

douglas ranch is strategically located in the marketplace that will be very appealing to all of these companies that are on their way. >> what will you do about the heat it is hot in the summer there, you know >> i'll say this i've been there since 1968 you live with the circumstances you have it is not as bad as people point it out to be you adjust life is about adjusting. we are adjusting right now to a new beginning in phoenix we'll be just fine >> david, how many other places are there like this in america where you think there will be new cities or communities built. >> we 0 we search high and low looking for these. after five years of my time at

howard hughes we found something of this magnitude. three times the size of manhattan but also shovel ready. we expect to sell over 30,000 lots in 2022 the demand for single-family for rent housing and more coming from the port of l.a not just a bedroom community but a city where we can have as many people work in this as live in it is an opportunity >> can you put some numbers on this >> sure. >> how much do you plan to invest over time >> this is a $600 billion.

entitled for 100,000 residential units. 300,000 units and 55 million square feet. we are invisiting before the cash flow neutral. >> they've done an incredible job, such that we are ready to go tomorrow. we are not in the three-year capital phase. we are ready to sell lots in early 2022 >> i admit, i am an arizona lover. we've been going to arizona forever. maybe i'll have to go down there and pick up a property >> thank you bitcoin linked to an etf trading yesterday. a lot of people trading in this

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the first bitcoin connected etf ends up yesterday. looking at the gamifcation of trading. joining us now, former chairman of the sec currently nonexecutive chair of the board group. we are looking at bitcoin trading right here the highest level it traded add toot

i guess a lot of people are saying, okay, this is the blessing of products >> let's take two fundamental concepts the sec is not a merit regulator. it makes sure the market has the opportunity to decide. the other side is that for the market to decide and make those judgements on a performed basis, you have to have information that is good trading that is free from manipulation, abuse and the like in terms of bitcoin, we'll let the market decide should it have

no value in the future or value in the future? it has gotten comfortable about the fundamental concerns and that those have been sufficiently addressed i won't call it anendorsement bitcoin as a particular value or not a value. it's letting the market decide. >> gary gensler was out yesterday. he was talking about how reading between the lines on this, investors should be cautious, this is still a volatile arefar, it should come as a sort of speculative arena. they pointed out in terms of an etf, they think it could be a riskier place, because if you run into problems, inevitably you will see a big discount in the etf versus the underlying issue. that it's representing in this case, bitcoin.

and that maybe gets lost a little bit it's definitely reading between the lines and it's payings attention, the sec thinks the etf is safe. others say it's a riskier asset than owning i don't mean outright >> both are right. chairman gensler is right to say you can have very knowledgeable people about our markets, people you've had on your show have said this will be worth nothing five years from now or a tremendous amount so we have a wide variety of opinions and views from market experts. people need to take that into account if they think whether to put this as a part of their portfolio. in terms of what thomas said, he's exactly right when you have a product that is removed, a step removed from the cash mark, have you the opportunity for dislocations between the cash market and that product. one of the things people are watching right now what is sort

of the i'll use the fancy term carry trade? how much of a discount is there for the futures? can you make money now by sort of futureing shorting is and the like and that does show there is a disconnect here. >> hey, jay, you can explain this if the sec is not comfortable which is bitcoin, clearly they aren't, because they haven't approved the idea that you can buy direct i in this case, why would they be okay with the futures contract can you explain the distinction. >> let's explain the regulatory description is it's a commodity it's not a security in the cash market we have had the cftc regulating

bitcoin for some time. in terms of an actual cash market, this is something to understand the cftc has only indirect jurisdiction over the cash market of commodities. bitcoin has introduced what i would sigh a bit of a paradigm here there is not a great deal of retail trading in the cash market in commodities as we traditionally know them. there is some currency trading, oil trade, things like that. the amount of retail trading in the cash market globally is something. >> jay, real quick, i wanted to pivot and get your thoughts on what happened here becky wanted to jump in on this report from game stop. it didn't say much i couldn't tell what that meant. >> i think it said a lot if

people are willing to take the time, probably a half hour, maybe a little more the read the report it's an incomprehensive overview of how it works a. take away at a macroper spect theive is just how efficient trading has become liquidity in markets is not free in the equity markets, it's very much approaching pennies, pennies on large trades. that's a tremendous advance but the report shows we continue to look at these things to see if we can improve for goim game stop, itself, the report essentially says there were some technical things going on you need to worry aboutcapital broker dealers reducing a settlement cycle can have that remember there was some short recovery by and large the 20-fieldfold increase in game shop was due to

an incredible amount of demand for the retal sector i think it's a tremendous report i commend the staff for what i would say is a non-judgmental overview of exactly what happened and i would encourage anyone in the marketplace to read the report, itself. >> hey, jay, the payment for order flow that's the big question. what is going to happen to it? is it going to be reformed or completely barthat's a huge question for a company like a robinhood that basically lives off that payment for order flow. are you not in the room right now, what do you think the sec eventually does? >> i think we need to look at it as a part of the system that has developed over time. the sec has looked for payment for order flow on a number of occasions over the last two decade there are sttsd that show payment for overflow has actually reduced the costs of trading for retail investors,

vis-a-vis a direct commission. people may criticize this, the dynamic nature and the ability to consider all orders, not all orders, but a number of orders at once reduces trading costs. this is to look at it from the efficiency standpoint and the standpoint of what is the best execution? there is a lot of other things going on here. >> i know that's what they're looking at what is your guess does it need to be reformedor barred entirely? >> my guess is let's start with more transparency. what does it actually cost the retail investor as an estimate of their trading the payment for overflow, vis-a-vis commission let's see if we can get transparency around that people can make the judgments

robinhood is probably happy to see that >> coming up, we return big interviews united airlines, transportation pete buttigieg and paul tudor jones on the state of the markets. take a look another the futures ahead of all that right now the dow up marginally almost a point remember nasdaq up about 12 points, s&p 500 looking to open u ightly higher as well. yoare watching "squawk box," two big hours ahead after this th . is the planning effect. this is how it feels to have a dedicated fidelity advisor looking at your full financial picture. this is what it's like to have a comprehensive wealth plan with tax-smart investing strategies designed to help you keep more of what you earn. and set aside more for things like healthcare, or whatever comes down the road. this is the planning effect from fidelity.

earnings season rolls on bit cone closing in on it's all time high begins trading on wall street we'll get you up to speed on what you need to watch in today's trading session. new york issuing a mu mandate for municipal workers. everybody has to get vaccinated and by the end of the month. doctors in the uk have an urgent plea, reimpose some covid e56 thes we will speak scott gottlieb about that united ceo scott kirby talks quarterly results. a surge iftraveland much more, the second hour of "squawk box" begins right now

good morning, welcome back to "squawk box" right here on cnbc we are live, afternoon drew ross sorkin out this morning take a look this hour. the dow up 2-and-a-half points s&p 500 up a point nasdaq up about nine points. a couple things of netflix reported 3.19 cents per share. it beat the estimate consensus of 2.56. it added 4 million subscribers, however, it did forecast current quarter earnings below current wall street estimates.

it's down this morning not in the united states it will come from elsewhere. meantime, facebook may be about to announce a change to its corporate name technology will announce a new name on a meataverse and the app becomes one of many under a new name think when google went to alphabet, as becky was saying. we will keep calling it facebook we are keeping an eye on bitcoin, it is now sitting close to its record high of 64,899 set back in april just yesterday. becky. >> facebook fame my new recommendation. novavax is down reporting

vaccination issues what is happening here it starts off about 21%. >> yes, becky, this vaccine has had a roller coaster ride. the clinical results looks good, 90% efficacy for the company they were resurrected from the brink. they showed it could be detailed which is simmering for a while they are doing it to have what

it needs what is concerning about this beyond the company, itself, is this vaccine is important for the global effort of vaccinating the world. they've made promises, if they cannot get it manufactured in a pure enough way in a large enough doses, that will deal a blow to the noble vaccination effort so we have been seeing this delay in manufacturing quarter of quarter, it get pushed back this company does not yet have emergency use authorization despite having the phase 3 results months ago, that look really good. this is a protein vaccine, so it presents a few technology, one more familiar for vaccines it's the one that smith klein is also working on. so it's a real disappointment from a equity standpoint and no have vax' shareholders, who are seeing another delay here,

potentially into next year if they can get this going. >> meg, if this is a new country and they're not familiar with the logistics of a grand plan to be delivering vaccines around the globe? why not take a partner johnson&johnson is a partner. >> that is a question a lot have been asking. they have been around and have not got an vaccine across the finish line. >> manufacturing a vaccine on such a large scale. >> right at this scale. absolutely a lot of folks have pointed that out, why not partner them one a gfk, gfk is working with sanofi. why not put them together with merck or johnson&juneson a lot said the u.s. government should have stepped in and facilitated a relationship like that it's not clear why it didn't happen. >> it has a market cap of about

$12 b. that's a significant decline. obviously, the technology works. this is a question of can they deliver? >> right and it's sort of heart breaking when you look at it that way because clinical results looked really good. this is a vaccine that really could help but if they can't make it, it's not going to be able to help we're still waiting on the j&j to yield doses i believe they said yesterday they should have doses come out in april so pairing it up will take a long time. it's a sad situation >> meg, thanks so much take a look at shares of airlines, travel rebounded in the third quarter. i want to get straight over to phil le beau who joins us now with more. phil. >> andrew, when you take a look at shares of united, the reason they're moving high cert q3

numbers were better-than-expected they lost a buck two they did come in with better-than-expected results on the top and the bottom line. the fume costs is something that is going to get some attention today. but this is what we will see from all the airlines up 63% compared to a year ago as for the fourth quarter, it will be another quarter with losses the company says it expects to have negative margins for the fourth quarter they're not giving an eps loss estimate at this point that's better than what they did in the third quarter, which was down 32% q4 capacity will be down about 23% and then when you look into 2022, a couple of points here. first of all, they're expecting to have lower chasm x. in the airline industry, it's cost per available seat mile that will be lower next year according to united than it was in 2019 with capacity increasing 5% w we've talked about this, the

number of people flying has held up just a month ago. remember back in early september when people were saying, oh boy, what are we going to see how much is it going to kahl fall off in october and november, actually down maybe 20-to-23% compared to the same time in 2019, as you take a look at all this keep in mind, lots to discuss with scott kirby, ceo of united airlines, coming up in a half hour. headed over to headquarters, lots to ask him about. not only with with regard to the fourth quarter and what they're seeing with corporate and international bookings improving, more importantly what they see for 2022. guys, back to you. >> phil, before you go, you want to weigh in on southwest it's a headline screaming across the front pages of the drudge report about the union there and these vaccine mandates >> i'm not surprised look, they have had frosty

reasons, that's putting it mildly, they felt the mandate with the contractor, they have to come up with a mandate on vaccinations, they are now trying to walk that back in terms of sake, well, if we can't get everybody vaccinated, we don't want to fire people, what do you want to work with a work leave and if that's the case, you will not pay them to stay at home theoretically you wouldn't pay them to stay at home yet, if they're going to be at work there is a federal mandate. they have to figure something out. they have walked out the initial language, if are you not vaccinated by december 8th and you don't have an exemption, there will have to be something that's done here. >> looking forward to that interview in a bit >> andrew, what do you think i mean the companies get to side who gets the exemption is this setting up a case for companies granting more xhemtions more broadly

-- exemptions? >> for better or worse, we are forcing companies to create their own rules and some companies will be more lenient or flexible with this enforcement issue than others. >> something to see. we will talk about this later. next, though, we talk a gamification for markets and much more, "squawk box" will be right back right back >> [coins clinking in jar] ♪ you can get>t if you really want it, by jimmy cliff ♪ [suitcase closing]

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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. welcome back to "squawk box" this morning nasdaq out with quarterly earnings the exchange operator beating estimates from quarterly earnings of 1.78 per share revenue coming in above the street forecast, joining us is nasdaq chief executive officer in the house >> it's great to see you >> it's great to see you too >> let's talk about the business we have a sort of real economy out there but boy has the marks been on a tear >> so we're proud of the results. we have 17% net revenue growth

for the quarter. it's coming from all parts of our business as you know, we have been repositioning nasdaq to be a technology provider and leaning into these long-term trends of the need of our clients. our anti-financial crime business grew really well. the work flows and analytics to the buy side has done extremely well as well all of the services we offer are corporate clients and esg services are nicely. that's on the backdrop of our core market place business that continues to perform we've had $140 billion raised on nasdaq so far this year. we also have a healthy trading environment. so in general, every part of our company is doing well, this year. >> what does that mix look like over the next 12 months in terms of the growth piece? >> so we continue to see a lot of upgrade growth. we have over $600 million of

fast revenue today and 1.3 billion of annualized revenues so that part of our business, which represents about a more than half hoff our company really is doing extremely nicely we've seen long-term opportunity for growth there our index business continues to do extremely well outside of the air. trading represents 30% of our overall revenue today. >> what do you want the sass business to be this goes to the whole issue that there is a whole investor who love to get iterated higher as a full-on sass business, but whether you can count that rating >> sass businesses across the franchise, our anti-financial crime business is essentially entirely sass. the work flows to the buy side are sasss businesses as we look at our market tech businesses, we provide technology to 130 other exchanges around the world we have been moving them on the

our next gen system, which can be delivered sass and in the cloud. all of our clients in that business are getting sass delivered marketplace services we see it as a long-term trend to grow as a part of our business we think it will be over time the growth characteristics are predictable. we are proud of where we are leaning in we seen that as a part of our business >> can you talk about bit china for tr second? so we saw this new etf futures product. how are you thinking about crypta what do you think that says and what do you think it says about the way regulators are thinking of crypto? >> i think we have to recognize we are still in a first jane e generation of what block chain can do and crypt that can do so it's an early, early innovation, for nasdaq we have been leaning into that to own ten cryptos in terms of trading

and surveillance we have launch $600 million in assets on nasdaq we will see other atfs >> do you think this is the escape velocity moment do you think there is a point at which regulators can stop but they can't there is an uber aspect, if you grow, every country can get to you. at some point they have to say, i can't stop you, i have to deal with it? >> i think regulators are acknowledging already here in the u.s. this is something where they want to the find a way to make sure investors aren't protected. this is why the se c are making them available they are the provider of the futures and the etf is based on this future, so i believe that,

in general, the u.s. is looking at how can we create a framework that allows this technology to evolve as something that they should stop. >> becky was asking jay clayton about payment for order flow, which came up in this report the sec put out related to game stop and the situation there. what's your perspective on that? what do you think that should happen >> i thought former chair peyton did a nice job of characterizing the report it's a factual report. it provides the starting point on a conversation where to improve markets. markets have proven to be resilient. sthaurs are a part of that i also think, though, you have to realize we have our intricate web of players, exchangesers and non-exchange players port of flow allows them to

compete order flow at the same time they offer service on the back of that. the result has been, however, more and more of the volume has gone off the exchange into the dark that then where the report was spot on, is there impact on the quality of the offer by the fact that so much volume -- >> i imagine you would like stuff to go back on the exchange, analytics exchange, you are making money off of go going to other exchanges, to >> we want to have a level playing field. the report talks about how there are different obligations or responsibilities that exchanges have versus with players that's where i think that plays into it as well. >> do you think the pub slick getting worse pricing? do you think they don't know look, we have viewers on twitter probably saying this whole thing is a scam. that's a part of the conundrum is just the public perception of what's happening >> oh, first of all, i think you have to recognize, to have this

next generation of individual investors coming in and interacting with the capital markets in general is a positive because it means more investors are interacting with the sec exchanges. they're investing in equities. they're building up their long-term wealth so we see that as a generally a very good thing. they will interact with technologies in ways we haven't seen before. that's also inevitable technology is inevitable in terms of whether or not there has been the incentive structures distort the price formation, i think it's something still being investigate and discussed. >> witness are you in the business, you know. >> i would say we have been doing our own studies and there are areas we seen spreads widen as more and more of the volume has gone into the dark that does mean you might have some impact on price formation we are excited to work with the sec and the participants to say, how can we create a more landfall playing field how can we create more insensitives to go into the

exchanges? >> i want to ask you about mandates, the mayor in new york moved up the deadline for new york city workers there and is a big question about enforcement it's not just about vaccine mandates i know you have a mandate, it's also about how do you enforce it southwest had a deadline, they've pushed the deadline or how they will work through these issues because they have employees pushing back what are you doing what are you thinking about that >> we have a different approach. first of all, we did pull all of our u.s. employees we know we had a high vaccination rates north of 90% today. we have not required most of our employees to come back we are encouraging them to come back in november, requiring them most likely sometime next year and as a result, employees dealing with large groups, they are required to be vaccinated. >> right. >> we have, we will have a combination of a testing regime so if you are vaccinated, you get tested once a week, if not, you get tested every day, that again as we have been seeing, the numbers are going up

we're well forth of 90%. so we feel inevitably our population is getting vaccinated without a hard mandate except those in our client passive. >> as you say to them, you say, you know what, people not willing to take this vaccine, they should bear the costs of the daily testing. that's one of the issues you see companies saying, okay, we will not do the vaccine but there is a cost to doing testing every day. >> we haven't made that decision yet. i think we need to see, again, we're not requiring employees to be back for the most part, there are some those employees are interacting with clients are vaccinated. but those have not yet decided to come back we want to see how we can kind of see a natural progression before we make any decision like that >> see yeah. >> great to see you. >> thank you. thanks, andrew when we come back, united airlines, the ceo on the rebound in travel, vaccine mandates and much more, scott kirby will be

our next guest up next, though, robert frank is feeling super salty this morning. what do have you coming up >> good morning, becky democrats are pushing to get prid of the salt cap will have to decide on two other major tax provisions tied to salt. we will look at what will become a super salt tax break for wealthy. potential winners, losers, what it can be for your taxes coming up after the break ...aflac policyholders have been paid $37 billion directly... [aflac!] that's a lotta money. ♪ did somebody say money? he said aflac. well if they're paying out billions of dollars to help cover unexpected medical expenses, what's the difference? coach prime. what... no smoke machine? [aflac!] looks like aflac is ready for prime time. [eh eh eh! eh eh eh!] hey, coach to coach... what do i need to do to get one of those jackets? ♪ get help with expenses health insurance

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democrats continue to wrestle on what to do with salt and if they can even agree to raise the cap. robert frank joins us right now with more on what could create a

super salt deduction for the wealthy. robert, i thought with all the wrangling, this one was simply off the table. >> so far, we'll see what happens, just lifting the salt cap, that will be the easy part, they will have to address two other tax provisions that could complicate any reform. that's because the tax custom jobs act made three big changes related to salt. first there was that $10,000 cap. it got rid of most of the alternative minimum tax and appeal the peas limitation those two programs effectively limited the amount of state and local taxes that high earnings could deduct from their federal taxes without restoring those, repealing salt could create what some are calling a super salt windfall for the wealthy that's according to tax foundation, repealing salt and restoring the amt gives the 1 percenters a tax cut around $700

a year if they repeal salt without the other two causes the tax cut is around $25,000 a year. now earners between 200,000 and 500,000 a year, they get a tax cut of 2,400 with straight salt appeal, a tax increase of $2,000 if you repeal salt and bring back those other two provisions. so these were provisions, guys, that basically limited the impact and the benefits of salt. if you don't also bring those back then this not only could become a regressive tax, but even more regressive than we had pre-tax cuts and job acts. >> this can't be lost on the legislators. i assume they know all of this and have taken it into account, robert >> one would assume, i reached out to scott on the salt caucus, they didn't respond. so we'll see what's interesting

about this, if they don't bring these other two pieces back, this creates more of an incentive to raise taxes, because there is even more benefit to deducting those tax than we had even before the trump tax cuts >> wow it sound like a tangled mess business as usual. >> it is >> robert, thank you that's right still to come, dr. scott gottlieb gives us the latest on mix-and-match boosters and keeping kids safe this interview. our first interview with scott kirby. he will join us to talk quarterly results, air tveral demand and much more stay tuned you are watching "squawk box," this is cnbc this is cnbc >> ♪ feel stuck and need a loan? move to sofi

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, welcome back, everybody, there are some reports that novo vax is having beforeing issues that has the stock under severe pressure down by more than 20% joining us to talk about that and much more is dr. scott gottlieb, a former contributor and serves on the boards of pfizer and illumina. scott,we've gotten spoiled, with reused to having these miracle krurs and drugs, the last couple of days, we've had a

few setbacks yesterday the covid pill we were hoping to be approve, didn't meet its own internal trials standards that it had been setting. today these concerns about whether or not novo vax can actually mass produce a vaccine that had very strong results what would you say right now this the a setback >> the data was right, the challenges seem to be related to manufacturing. i don't have insight into the problems beyond what i read in the news reports i think this pushes back to operation warp speed and some lessons we should learn. early on, we should have tried to scale the manufacturing processes that hadn't done it before there was a big effort to assist moderna, that was very successful but i didn't see a similar effort to assist novo vax. early on you could have partners well this with him gen that 45d

experience scaling the biotech pro process. that's the drill process, that's what operation warp speed was set up to do the same with therapeutics we have an all hands experience. we never had enough of the drugs that we need to help combat this virus. and one of the lessons learned is that in the setting of a pandemic, oftentimes your first therapeutic, your first opportunity is going to be a drug, not a vaccine. eventually you need a vaccine to bring an epidemic to an end. but the drugs were available earlier. we could have been saving more lives, if we had these drugs, including the antibodies we seen one tragic death if recent days, we seen many tragic deaths of older individuals with underlying issues of covid nobody should be dying of covid-19 we have therapeutics to prevent

these outcomes certainly people immunocompromised won't get a response, people undergoing active treatment for cancer, organ transplant patients on high dose immunosuppressants we could be doseing them monthly on the ain't bodies, that pending authorization by the fda. which know they work as a ploefl la prophylaxis. once again, we don't have enough supply these were for foreseeable focus. there was a minocular focus. we didn't like broad enough to industrialize that companies like novo vax. >> are you suppressing people immuin immunoshould be getting treatment all the time, why not

wait until they were exposed i would think adding drugs on top of the other cocktails they may have been taking to deal with their existing disease could complicate things? >> well, look, we have pretty good safety data on anti-body, it will largely circulate in your body. it shouldn't have any untoward effects unless are you interacting with the virus, then it lot attack the virus. we have pretty food safety data in these anti-body we have clinical using them with other disease like ebola, we use them in a prophylactic way it's filed by the fda for that use. there is a lot of data submitted to the agency. it's being maded on a compassionate use basis. if you call the company right now, if you are a immunopatient undergoing therapy, you can get the drug on a prophylactic basis on compassion in the use people are doing that. ive think it's another example

where we could be moving more quickly to save lives. we will be in this delta surge for a narrow period of time. i think prevalence will decline. so we're looking at how do we preserve life in high prevalence that won't be with us forever. you could be using these drugs to protect vulnerable patients we know there are patients that won't amount an efblfective response, why aren't we protecting them? >> in terms of using these monoclonals and the like, how far are we away? clearly within the window you are talking about, we may not be there, how far are we from having full access, having lots of it in volume? and this s this a part of the future of how this gets treated? >> yeah, we're in better shape now than we were a year-and-a-half ago with rejen ron and lily are produceing. we probably have enough to protect everyone i am talking

about. we probably wouldn't be doing that, anyway i think in the future pandemic preparedness, there needs to be therapeutics to scale to production alongside vaccine we may not get as lucky in terms of getting to a vaccine as quickly as we did. even though we got to it quickly, we see the therapeutics first and the monoclonal first and it took time, in the interim, you could have been using drugs to protect more people we didn't have this available. this goes back to the planning in the early days. we didn't have the foresight to do things like help companies. >> scott, as you look out professionally now or next fall as we start to think about it. hopefully, we'll be past this delta wave and there won't be another wave, but you know as people look at the new merck drug or things like that they say to themselves, we have have a vaccine and these other drugs. what i'm asking is, are we going to get to a point where none n

monoclone also become a part of a regimen or a routine in the future >> we may very well get there. depending on what the data shows. companies are working on this. regeneron is running a complex trial to use nit prophylactic way. we may use these for patients undergoing chemo treatment if they are immunorepressed if you are an organ transplant patient, with a booster, you may be functionally immunocompromised. that's where you are giving someone's intact immune system that lasts a month they're in a boughtle that will circulate in your month for at least a month. probably longer than that we talk about bridging people through windows of therapy and

seasonally they may well be used in the future. >> scott, the other news out is that new york city is now changing its stance on vaccines. this is all public employees for the city, municipal employees are going to have to be vaccinated they take away you can get tested weekly. i didn't realize that rates of vaccination were as low as 60% for firefighters as low as 70% for police officers in the city. southwest is saying, never mind, we're not going to force the vaccination by december 8th, you can keep your job. it's a little mix and match to try to figure out what's hang, these different sorts of reactions, different extreechlts what happens next? -- extremes, what happens next >> i think we are doing a good job of chipping away at the people vaccinated. i think local communities should have discretions to prevent these provisions i would like to see people follow through on them once they

announce them. if you don't follow through, people won't adhere to mandates when they do get put into place. i said before just as the federal government shouldn't be stepping in to force businesses to implement these mandates. i think they should use incentives rather than restrictions to do that. i don't think governors will step in to stop local communities from doing it, they think this is the step to protect their workers and community. so i support local businesses and communitiesdoing this. new york has been very aggressive the vaccination rates overall in the city are extremely high. over 70% of people have been fully vaccinated in new york city. >> then there is the uk, which doctors there are reaching out to healthcare providers, saying, pleased, put back some of the provisions, the covid protections you had, things like masking when are you in a crowd, outside in a crowd it concerned me to hear that, because i keep thinking, we're coming through to the other side of this. is this just a reminder that

this disease can kind of twist and turn we don't know where we stand yet? >> yeah, look, there is a big coupleing in the uk for now between cases they're turning overwhelm. they do a lot of testing they turn over mild and asymptomatic cases and hospitalizations so if that persists, that may be the new normal that this virus circulates in the background if you have a population exposed to it and heavily vaccinated like the uk, you won't see the extreme death and disease from it that may be tolerable in the future what we don't know is whether or not some driving it in the uk is new variants there is a concern and there is a subtype so that's a subtype of delta and there is another subtype of that subtype that has a specific mutation that changes the spike protein. it was 8% of cases in the uk when it was last reported. we know those reports are lagging. so it's not clear whether or not that's what's driving this increase we need to figure this out we should be better at figuring

these things out >> dr. gottlieb, thank you, it's always great to see you have thanks a lot a check on the markets plus night ceo chuck kirby will be here to talk quarterly results. verizon just out with earnings beating estimates by 5 cents with quarterly profit of $1.41 per share. we'll have more on that that stock up a little bit on this news. then at the top of the hour, transportation secretary pete buttigieg will be our special guest and paul tudor jones on the state of the markets a. lot here on "squawk box. back after this.

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honeywell forge. industrial grade software. welcome back to "squawk box. the picture is relatively flat we will think passositively. we mentioned verizon reported its earnings, supporting the profit of $1.41 her share. revenue raising the full year outlook increasing the adoption of 5g helps booth growth that stock up a little bit of 1% when we return, scott kirby of united airlines will be with us right after the break. right after the break. "squawk" returns in a moment ♪

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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. shares of united airlines are high their morning after better than expected financial results as travel rebounded in the third quarter. phil lebeau joins us right now with a very special guest. good morning again >> good morning, becky let's bring in scott kirby, ceo of american airline. becky set this up better than expected a loss for the third quarter, better-than-expected numbers the revenue, i want to talk about that you noticed a bit of a change of what people expected in september are things starting to improve a bit? >> we definitely bottomed out, probably in the beginning of

september, the delta variant is still inside the forget. fourth quarter, international demand is strong in europe it looks like the data we bottomed out on the way back >> you talked holidays, international and corporate bookings, what are you seeing in terms of companies sending people back out on the road again? >> there was a pullback because of the delta variant we once again see companies pulling back we are back above the levels in the pre delta variant. we expect and hear it's likely to be an inflexion point in january as more people are back in the office. also all the anext dietz of people on the road, including myself, there is no substitute for being there in person. it gives us confident in the long term. people will get back to flying. >> november 8th in europe everything changes, the europeans can come over here, fully vaccinated

what are you seeing in bookings as well as americans going there? >> in both directions, the bookings are up compared to 2019 >> do you have a percentage? >> i don't have an exact number. they're up significantly and we will have a lot more flights next summer. united in particular, you can load your vaccine card we don't have crew issues we are ready for commerce. they can book with confident at united. >> one of the things you talk about in the financial report is the fact that you expect to have lower cost per seat mile for 2022 than you had in 2019. where are you seeing the success? in other words, you had to use this pandemic and the crisis, if you will, to draw down on your costs. where were you able to do that >> united back in may of last year, we fought the pandemic we didn't get back to normal until the end of 2021. because of that we made more structural changes things like agents on demand, an

agent in dallas or san francisco can help when there is a weather problem in chicago there are structural changes at uniteed that no one else made. look at our call centers we're the only airline we haven't had the problems others had we have technology that's more efficient. a lot is about technology, we invested in earlier that's driving efficiency and it's better for the customers at the same time. >> andrew, i know you have a question you want to ask scott >> yes, hey, scott, great to see you. you have been perhaps the most aggressive and out front when it comes to vaccinating your employees and i wanted to get your take on this news in the past 24 hours that southwest, which had a deadline of december 8th for its employees to get vaccinated has pushed that or suggested now that they will continue to be paid and how do you think that changes the dynamic? what is your take on it? >> well, you know, i don't want to talk about the other airlines, really i'm just glad at united.

we did this for the right reasons. we didt for safety no one told us to do it. we did it because we think safety is our number one core value we thought it was the thing to do for safety, we have 99% this is an rear view issue for us that winds up mete meaning over the holidays, customerss can book with confidence at united i suspect the noise you see elsewhere could lead to challenges it's easy to see at airlines a few things go wrong and it can snowball with you. at united you can book with confident, because this is done. >> you aren't having the pushback and problems southwest and americans and others are having sit because where you are based? you are not based in texas are you based in neuralgic and texas, is it because of the hub and spoke system you have? it's just interesting to see the difference between them? >> well, i don't think geography has anything to do with it

we have a hub in houston, a huge maintenance operation and orlando. i live in dallas, mostly so i don't think geography has anything to do with it i think we started talking about this in january. we were opened, honest with our employees, it was never a surprise to them we also own the decision we didn't try to pin this on the government or anyone else. we did it for safety we were clear and transparent about that that was the only reason we did it we did it quickly. we were able get through it and get to 99.7%. >> scott, are you worried about jet fuel costs up 63% compared to a year ago? >> of course i am. i always watched jet fuel. i do think in the longer term, it's always been the case at an airline that jet fuel gains that is true. ri right now, it's supply and demand, larger jet fuel prices trigger prices >> you mentioned higher ticket

prices, i continually hear from people saying, look, these prices are not the bargain basement we saw during the pandemic nobody expected that to last forever. but there is glowing chatter that these prices, the air fares continue to rise here and that at some point people will say, you know what, i'm not comfortable. >> air travel remains a freight bargain. i won't have this number exactly right. inflation is in erms it's down 50% in the last couple of decades, it remains a great value. airfares the will come back from the really low levels they've got to during the pandemic remember air travel, frequently you may more for your hotel room in a single night than your air ticket air travel will remain a great bargain. >> scott you did point out you don't think you will be seeing the problems some of your competitors have run into, namely southwest with the flight cancellations. did you see a pick up in bookings right after that weekend?

do you think you got any market share gains from the troubles some of your competitors have run into in. >> well, look, it was a short-term issue that happened a couple of days we certainly saw a spike in close end bookings over a couple of days, not something that would be meaningful from you know a quarter perspective on revenue. but also a good opportunity i think to get more customers realizing the change, in terms of customer service and the product and introduce some customer those the united product is probably more important than any short-term impact to the last revenue line. >> packed planes for the holidays should we expect it? >> yeah, airplanes will be full. the demand is robust and strong. >> lovely. reporting on it, scott bir can i, ceo, thank you, scott, for joining us this morning. guys, i'll send it back to you. >> appreciate it. when we return, don't miss our interview with transportation secretary pete

buttigieg, joining us to talk infrastructure, so much more and paul tudor jones, the interview you do not want to miss. stay tuned "squawk box" returns after this. throwing things at me? look, as cfo it's my job to be ready for whatever's next. that's why i have my finance team, randomly hurl things at me. it's also why we use workday. it gives us insights, so we quickly pivot our strategy, people, planning, you name it. sorry, sir. i will aim straight at your next step. see that you do. would you like some coffee? workday. the finance, hr, and planning system for a changing world. ♪

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this is hour you can't afford to miss either one. press secretary pete buttigieg and ledges endary wall street investors to talk markets, race, the fed, bitcoin and so much more the final hour of "squawk box" begins right now ♪ good morning, everybody. welcome back to "squawk box" here on cnbc i'm becky quick along with andrew ross sorkin joe is off today we have been watching the equity futures. down by about 23 points. s&p down by 3. the fax down by 6. of course, this comes after an update for the markets yesterday. the s&p putting in several sessions in a row that we have seen positive results.

the treasury mark looks like the ten year yields have picked up a bit. right now, it's yielding 1.367%. let's get to our first big interview of the hour. with holiday fast approaching and backed up ships, the white house is trying to iron out severe climpgs causlinks caused the backup we have press secretary pete buttigieg. >> it's night to be on with you. >> is christmas safe >> i am really looking forward to christmas when i think of christmas last year, in my family i was looked at loved once on the screen. this year i'm vaccinated those loved ones are vaccinated. it will be different they have more income to put presents under the tree than a year ago we've seen extraordinary job growth and as a result extraordinary demand growth over the course of the last year.

right now we have seeing three forces affecting what's going on in our economy and what you are seeing at those ports, for example. it's demand, it's supply and it's covid we know what we got to do about covid, which is put the pandemic behind us. we're glad to see demand rebounded. of course, my focus is to make sure beaddress any bottlenecks, anything addressed in the short term on the supply side. >> where do we stand with that are there going to be things that consumers want to buy on the store shelves? or is this a situation where shortages persist for the holidays >> we're seeing shortages reach shelves at record levels the issue is demand is so high, retail sales going really off the charts high, that our systems are straining to keep up now last week the white house i was with the leadership of places like walmart, target, the home depot, talking about their commitments to make sure that inventory gets to the shelves. we're also talking with the key

ground logistics companies, but there is no question that there are challenges that will persist as long as this pandemic continues. and it's both things that are going on here in the u.s., because we've already got a brittle system that has been under invested in for decades and things happening around the world. if a shoe factory closes in vietnam in september for a covid outbreak, you will see the effect of that in the mall in december or january. >> a big part of the problem has been with the ports, ports in los angeles and in california, too. there were reports this morning about empty containers, shipping containers, left in residential streets because the warehouses are full there is nowhere left to put these things have you some angry residents at this point who say it is causing a serious problem. is that a fixable problem? is that something we can address right away >> look, it has to be. we have to do right by the communities that live in and around the areas where these ports r. whether we're talking about the issues of through-put,

noise, also pollution in the areas around ports is a long-standing issue. which is one of the reasons why looking to the long term, we've called for and envisioned an infrastructure bill the healthy ports initiative to have more electrification that will benefit those that live near these ports the entire country counts on for these goods. the ports of l.a. and long beach alone represent 40% of the container traffic in this country. >> who is at fault why are the shipping containers winding up there, if you have companies like walmart and target and home depot and others saying we will me as fast as we can the unions that say we will work around the clock, where is the specific problem continuing to create these bottlenecks there? >> i can say and i'm want to know more obviously about the spec containers at issue here. what i can say is this is not just habit the ship or the gate at the port. it's the entire system

right. if you have a backlog at an intermodal facility loading things from trains on the trucks, that could be hundreds of miles inland that could lead to there being a backup at the ports. this is one of the reasons we have to work every piece of this system let's be clear, every piece, almost every piece of this system is privately owned and operated and should be nobody wants the federal government to own and eerpt the stores and the warehouses and the trucks or the trains or the ships or the ports. but we do have a role to play, i believe, tosh an honest broker among these players, even though they have learned to operate in very tight market conditions don't always coordinate way that we need them to we need to have better data sharing, better coordination and, of course, for the long run, we need to have better investment as a country, which is why as you heard me say, every time i have been on the program this year, we have to pass the president's infrastructure bill. >> threats talk about the demand

and push behind this, part of that is job frothy another is higher wages that have kind of gone around and then another part of that are the payments that have gone out in the federal government. is it too much demand? do you worry about inflation at this point and just the ability for our infrastructure to continue to keep one that sort of consumer demand >> well, it's certainly the case that we are closely watching prices i also think it's important to point out and moody's has talked about this, that the president's build back better agenda as a whole will ease some of that inflationary pressure. one of the reasons why we sometimes struggle to keep up with demand when demand is good is that you have a lot of forces that keep americans out of the work force not the least the struggle to get good child care. so, or the struggle to get good affordable child care i should say. when you talk about the pro family policies of the build back better agenda, those stand to ease inflationary pressure. obviously, we are glad that the american rescue plan

successfully guided us in this season of job growth, of economic growth. but you will continue to see a lot of these challenges and imbalances both because of long-term issues, like not investing enough in child care and infrastructure in this country. again these immediate issues around the pandemic, which is why honestly the best way to smooth all of this out remains getting everybody vaccinated and putting that pandemic in the rear view mirror. >> mr. secretary, we will talk to you about the increase in energy costs you look at the price of oil that has gone up markedly. there are some folks out there saying this is a function of a policy shift in this country and around the world around invoteing in cleaner technologies, but maybe not investing fast enough. there has to be a right mix here in terms of the short term and the long term. how are you thinking about that right now? >> well, certainly one way to think about it is what can we do to insulate the american economy from the ups and downs of global

oil markets and you know it's one more reason as we look to the long term that we want americans to have different options. now, that transition is challenging. there is no question about that. but this is precisely why we are bringing a level of intention to it and why the president's vision for how to make sure that tackling climate is done in a way that erodes jobs, that supports our economy that this is the right way to go >> how do you hand 8 it in the short term. >> the other is to put our heads in the sabd and pretend it isn't an issue. >> how do you handle it in the short terms it looks like it will be elevated for skooim equipment some time. >> that's a challenge. we need to make sure there are more options for americans that we are going through this transition in the right way and make sure we are supporting americans in other ways so even as you see ups and downs in noble oil markets, americans have a financially secure life and family and this is a part of the core message of the build back better agenda

>> mr. sergeant i know you have been a great supporter of evs. i do want to ask you about this, we talked the last time you were on our broadcast, there seems to be this very strange beef almost between the white house and elon musk he has not been, it appears, called upon for his advice and i'm curious why you think that is the last time we talked you had been brigg together a group of people to talk about evs and the future of vehicles and you would think of all the people on the planet who actually knows what itself going on who has figured this out, it's him what's happening >> well, we engage everybody i remember being on a call with him and other leaders in the auto industry. this is also to me not about personality. this is about making sure that our entire auto industry succeeds in going through the transitions at hand and, look, that's everyone that is startups, pioneering companies

that didn't exist ten or 20 years ago. and it's some of the companies that have been around for 100 yeerms or more >> you understand why everybody is frustrated and members of the public would say this is crazy not to include somebody like him? >> he's welcome to give me a calm i think everybody ha has a leadership role in transportation should be engaged in the things we're going through in the country right now. >> by the way, are you a fan of space travel an investment versus what's happening on the plan snet. >> i mean, look, my focus is mostly a little closer to home although like so many kids i grew up enchanted with space travel and the shuttle program i think it's very exciting that our capabilities are increasing. as the transportation secretary, i have actually a much more narrow focus we have an office of commercial space travel, we're mostly concerned about safety of course, in an industry this new, you fly at your own risk, but our main concerns are there

is no neg 95 impacts on the ground, in issues, in testing, these things can fail and sometimes are expected to during that testing, fail in some spectacular ways we need to make that is contained and same on the way to space, you got to go through the national airspace, where we got a lot of airplanes. we got to make sure that's safe, too. that's my focus as transportation secretary we see this field evolve quite a bit. i don't think it will be just about tourism. it is a growing policy for us, alongside all the other things happening in transportation. >> let's talk about the airlines, in particular, that's a big focus of your administration we have seen the weakness and the i guess you should say the fragility. you had southwest canceling more than 300 flights, something like 25 or 26% of their flights one day a couple weeks ago now there are these questions

about what happens with the vaccine mandates and whether some airlines will go along with the vaccine mandates your administration put out southwest kind of back pedaling a bit saying thatly not make every employee be vaccinated by december 8th or step aside part of the question might be, will they have enough people to continue to fly their flights if they do that amr, american airlines expressed similar concerns what do you say? where do you come down on this >> i saw you had another ceo got 99.7% compliance before even we had these requirements coming out of the policy side, so, obviously, it can be done. i can't speak to the dynamics within any individual employer but whether we're talking about airlines or so many other employers, it's clear these requirements work. around these requirements, frankly, are very important, not only for safety but the fundamental am fact that the only way through so many of these challenges that are facing us, economically as well easy

medically is to put the pandemic behind us get this over with it won't happen until we increase vaccination rates that's what these requirements will do. >> if they don't enforce them what will you do >> look, the piles are very clear and again we can see it can be done so we're counting on every employer that is subject to these requirements. as a safety matter as well, as a public health matter, we're counting on the airlines to deliver. i'm sure they up to the challenge. >> they don't seem to be going along with that what is your response when haugher from area kelly we will not lay people off or fire them as of december 8th what does that mean? >> well, again, this is a safety issue. it's a part of what it will take to get our economic competitiveness back other leaders in this industry have demonstrated it can be done, if they have any operational issues they want advice on, we will be happy to do what we can share whack we know, which is

that employers that go about this the right way see extraordinarily high levels of compliance and most importantly see a healthier safe work force and customers responding to the fact they know their safety is assured. >> scott kirby, the united ceo said the reason that they had been successful had nothing to do with the government mandate, they started this all in january. they weren't dock it because of the mandate. >> which i this i is it's great. it shouldn't take a government rule to do the right thing for your employees and your commerce but we are also here to protect the american people. that's part of what our administration is responsible for. >> secretary buttigieg, we want to thank you for your time today. >> thank you >> a fascinating conversation. coming up, when we return, an interview you don't want to miss, legendary investor paul tudor jones. first as we head to break, check out the price of bit don't

we'll show after a day of this new futures etf on bitcoin $64,000 i should say paul tudor jones, the early ones, maybe not early, early, early in terms of this run saying it was the future we'll talk about that with him and more stay tuned you are watching "squawk box" on cnbc

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let's keep making a differene together. welcome back to "squawk box" on cnbc we are live. futures relatively flat. we have been sort of mosque around the same place all morning margin down on the dow, s&p 3500 down flat. nasdaq up 8 points a couple stories dow component verizon out with third quarter earnings the profit beat analyst's expectations revenue came in below consensus, it's growing 5g adoption that stock is up about 1% on that news, talking airlines as

well, united posting a smaller than expected loss the company saying the spread of the covid delta variant slowed, not derailed its recovery. the ceo joined us last hour here on "squawk." >> we bottomed out the beginning of september, starting to see improvement. the delta variant impacts the third quarter. we have seen business bookings come back. international demand is strong we feel it looks like the data bottomed out they're on the way back. >> netflix lower, off about 2% the company posted just its second quarter beat in the last seven quarters it topped net subscriber editions, projecting in line with estimates, earnings guidance was a bit light last quarter brought international success of the distopeian drama, squid games addressed the megahit on the

company's earnings call. >> you look at these numbers they the internal viewing looks a lot like a local lange show in any country you look it a. it was enormously successful that been ten years trying to sell the show. our team recognized something nobody else did and created an environment for that provider to make the show. >> netflix 62005.25 off close to 2% right now check out shares of the major chinese tech stocks, a mid the ab ali baba in spain. he went underground last october in the speech he appeared to be criticizing chinese regulators >> i'm thinking through that

comment what their team recognized with squid game that nobody else had. ten years on the market, everybody else thought it was too violent, so netflix said, ah, the basement of american society. they recognized this, this will be a huge hit. >> the dubbing for some people and then obviously the subtitles for others >> right right. okay when we come back, mike santoli's pre-market playbook on a wednesday morning and then the interview of the morning billionaire hedgefund manager paul tudor jones joins us live stay tuned you are tcng "uawahisqwk box" you are tcng "uawahisqwk box" and this is cnbc.

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a little more than an hour to go on the opening bell on wall street, mike santoli joins us with what he is watching in the markets as the s&p rides the five-day winning streak. >> pretty aggressive come back not too surprisingly, they're in for a breather one thing we did with this rebound is retake the 20% year-to-date gain level on the s&p 500. this is a one-year chart remember not a year-to-date. we are back up above 20% on a calendar year-to-date basis.

it checks a lot of the boxes, but i would point out, we saw something similar back the prior significant pullback in the market in march. once we got to that high, we were up 6% in 11 trading days. so all of a sudden we go from oh a little stretch to the downside to looking like we're tired in terms of the upside. take a look at one of the growth subsectors cloud software and how it has had a very aggressive comeback as well relative to the s&p 500. you see after that huge peak in hyperspeculative growth in the beginning of the year. a lot of failed attempts to catch up to the s&p. kind of a clip state right here. it shows it's been both a growth and cyclical types of lows in early september. take a look at how tesla looks relative to ford expect a lot of the year trying to consolidate enormous gains in the latter part of last year so whatever the fundamental drivers, so to speak, the auto

sector, in general, has been strong so whether tesla is being lumped back in with bake old car companies or its consequence dense, it is tracking ford really well right now. it does tell you about what the m market thinks about auto demand in 2022 after we had all those production and chip problems this year, becky. >> hey, mike, the margin story we haven't seen a lot of real disasters unless you count brichlger, talking about the humidity crunch it is taking from labor and high commodity prices where should we be watching? is tesla a story or are there place you have to be on the lookout because it's gotten so expensive for everybody to do things >> i would think tesla not specifically they had relatively wide margins, p&g, we saw it yesterday, decent numbers, they did on the bottom line what was

expected they are able to put price increases through, consumers struggled to absorb those commodity costs. i think a variety of both labor, you know, kind of labor-dependent companies, you mentioned brinker and semi industrials. it won't be all of them. commodities as a group are up 45% this year, just total stuff. so anybody that depends on a lot of consumer statements has been pretty conspicuous probably because of these concerns. >> do you watch squid games? are you a fan? >> i haven't started it. it's not clear to me i have been impressed with the fe until none. >> great thanks, mike we'll see you later. they got something they definitely have something people love. >> they do coming up, a giant in the investing world, we'll see whether he was watching street games. paul tudor jones will be joining us live right her on "squawk."

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welcome back to "squawk box," we are live. we are fortunate to have an investor with us on the set. we want to welcome paul tudor jones, he is, of course, the founder of the robinhood foundation which is hosting its annual benefit in person it's doing that tonight. we'll talk about that in just a little bit it's nice to see flu is i got downgraded >> we will do that >> i like expoa lot better it always made me uncomfortable. >> we need a little expertise. everybody is trying to figure out where we are in this market in this particular cycle we had great earnings from some of the banks, inflation fears, supply chain issues. we have energy on the move what are you doing >> well, i think the thing that to me is the number one issue

facing the main investors is inflation. it's pretty clear to me inflation is not transitory. it's here to stay. and it's probably the single biggest threat to certainly financial markets. again, probably the society just in general so this 5.4% cpi is the highest cpi we've had in30 years, of course, lit go higher in the next few months as energy feed through it so for an investor, in particular, most of this audience, it's absolute death for a 60/40 portfolio for a long stock, long bond portfolio so the real question is, how do you defend yourself against it how persistent will this be? and what is the outlook hope and there is a combination of structural and cyclical force

that is right now are all going in the same direction to say that inflation can be much worse than what we fear. so let's just start with cyclical forces first. we have the demand side and that would be m2. it's grown 5.2 billion that's 3.5 trillion greater than it would have. 16% gdp sitting in liquid deposits that can go into stocks or crypto or real estate or be consumed so that's a huge amount dry powder that's just sitting there waiting to be utilized at some point, which is why inflation is not financial to be transitory so, that's the first big i think

cyclical issue we raised benefits for social security retirees as well as military by 75 million by 5.9% that's more fuel to the inflationary fire. the second big component would be the wage pressure that we've got. the easiest way to see that is obviously job offers relative to the unemployed, 10.4 million job offers, 7.7 million unemployed it's clear that we have a structural issue in our labor force that's not financial to be solved by 0% interest rates and quantitative easing. so if you take those two factors and then we're overlaying the structural issues and there are four big ones. the structural issues. >> right. >> you really paint a very bleak picture on inflation the structural issues are first and foremost

we have a federal inflation board inflation creators not inflation fighters so that is a huge, humidity deal >> let me ask you then, is this a warning to j. powell is that the suggestion or is this a warning to investors how to trade around this issue >> listen, i am, first importance, i'm concerned about the future of this country so, clearly, i think we have maybe the most inappropriate monetary policy that we've seen maybe in my lifetime we are adding stimulus we are still quantitative easing where we should be doing just the compact opposite and we're taking for granted and treating inflation very, very lightly if you go back, what i think bothers me so much about this

particular set of central bankers and all of those that parent with the fed are doing is they're ignoring the lessons of history. you go back and start reading about the late '60s and early '70s, you had three central bankers william martin, arthur burns, paul broker you had two presidents do you realize 1974 gerald ford called addressed a joint session of congress and said, we're at war. except it's not against humans this enemy is invisible but threatens our society, our home, our people, our life, liberty and values a joint session of congress because of inflation that's when you started the inflation now. so we're just treating it with this cavalier attitude when we shouldn't be and again we're ignoring, because we haven't seen it in four decades.

>> do you have any expectation that j. powell will not be reunti renominated for this position? >> do i have -- no, i think he probably will be i don't think he's necessarily the right person to deal with the circumstances that we have facing us. for instance, you know, a quote i attribute to albert einstein is the people that solve the problems won't be the ones that create the necessary conditions for it to exist. so, again, this group of fed spokes people. they created average inflation targeting. the goal was to get inflation above 2% well guess what, they won that game in a blowout. the problem is. >> when you're running the fed, you don't. a blowout in either direction. blowouts are bad because it creates in people's minds these

expectations that things will continue and the best tern who addressed that was paul -- in 2015 said if we follow mathematical models, we lose the fact that human emotions are hugely impactful on the way people will continue to believe. so, if inflation bgenie is out o the bolt, which it is right now and we don't immediately shift to attack it, we run the risk of getting back into the '70s where it was the single-most important issue for multiple mr. presidents, multiple fed sc chairmans. it was pernicious and persistent >> fwek can i has a question >> hi, you say j. powell is not necessarily the best guy for the job. if it is not him, it is likely to be someone more dovish. >> that would be a disaster. again, we have a 5.4% cpi.

if you just kind of think about, in you just think about mathematically, let's look at the 100-year history of cpi, there is a huge effect what happens to begin with has a huge tendency to continue. so if we just mathematically went through what cpi is going to be in 2022, you say, okay, just based on history, it's 4% 3.7 in 2023 and 3.5 in 2024. that's the stair effect of cpi so this next meeting, i think it's the most crucial meeting for this fed and i would say, well, we did have 2008, the pandemic this is just as important. because now they're facing for

the first time the other side of the dual mandate. >> assuming you are right, assuming all, everything you just said is 100% spot on what are you doing about it as an investor there are a lot of folks watching you say this right now, they're saying, okay, now what >> well, first we need to do is we need to see employees, i don't want to diminish the current fed officials and what their ability to pivot and change is. but the history of the past four years, this belief in forward guidance forward guidance assumes a linear world it assumes that the world is a train as opposed to a roller coaster. you're married, right? so marriage is a joyful ride but it's really scary at times

ri right? that's all prices are is just a reflection of human nature. the idea that we can have forward guidance in this linear world is crazy have you to be reactive. you have to be forward thinking. so right now we have a material event which is we have inflation and we don't see any end of it in sight so at this meeting, what's the reaction going to be what are they going to do? this was a really interesting meeting, because for the first time, there was the kind of a poll that was just release that said the majority of americans think the number one economic issue is rising prices of goods and services 2-to-1 over unemployment so now we know what americans think is the biggest issue and we're going to see how they respond. if they try to fight the last

war and do the taper they did in 2013, well, we're going to go ahead and ease off the ped am for the next six or eight months, well, that's the wrong policy prescription. we're so different than 2013 2013 commodity price were down, on the year we're up 50-to-100% so to answer your question, we have to watch what this fed does if they play the old slow and gradual playbook, double down every inflation trade, double down on long commodities, long on tips, break-evens long fx world and long and you don't want to have a fixed income you do not want to hold out, what they're telling you by their actions is that they're financial to be slow and late to fight inflation and somewhere

down the road somebody will have to come in, much the same way paul boker did and put the hammer doumpblt you know who originated, take away the punch boushlgs way in the chesney martin originated take away the punch bowl this guy was an inflation fighter, look what he's spawned. >> you one thing you talked about i would say 18 months on yourory in march right when pandemic wack hitting was your interest in bit kind as a hedge. >> crypto would be a great inflation. >> is it still a hedge at these prices >> listen, i'vesaid this and now i've got crypto in single digits in my portfolio i have a smaller trading position of a fund i do think we're moving into an increasingly digitized world clearly, there is a place for

crypto, clearly, it's winning the race against gold at the moment right. so, so, yes, i would, i would think there would also be a very good inin addition hedge it's not one i prefer over gold at the moment. >> on that note you saw that bitcoin etf traded based on bitcoin futures. there were a lot of seasoned investor who's said that can be an issue they like bitcoin the underlying issue kuwait a bit better than the etf. they worry in times of trouble that the etf would trade at a deep discount to the underlying issue. what would you say to that to investors thinking, okay, i want to get into bitcoin, how do i do it >> i think a better what tway to get in would be to take the time to learn how to own it and carry it i think the etf will be fine i think the fact that it's sec approved should give you great

comfort. i'm not a real expert in etf, so i don't want to -- >> but you believe this means the regulators are saying, either blessing implicitly or otherwise that crypto is here to stay >> i think crypto is here to stay look, this is the united states of america right. the reason we're the most dominant economic power in the world is because we unleash our individual entrepreneurialism and creativity off are seeing china did the exact option right? that place is economically a slow boat to the south pole. as long as the u.s. can continue to unchain our entrepreneurs, we're going to always be in a dom navent position especially want to talk about robinhood and equities and fangs and big tech. so many viewers are if that space. >> equities are interesting. certainly, inflationary world,

they're a much better bet than fixed income neither one on a great bet so, fed says the neutral, they've forecast it god knows how many years now, the neutral rate is 2.5% when are you not adding stimulus. which if beget to 2.5% which is where we have to get to or their neutral rate the pe will not be 2326 depending upon how you are looking at it. if they actually had to get restrictive, which would be 200 basis points above 2.5% to stop inflation because it is persistent, then are you talking a pe of 17 or 18, stock is down 35%. if you are an investor in stocks, you need to watch what the fed does. >> 35 %. >> chats what the pe will be if rates are at 3 or 4% i think a year from now --

>> you ka rawling the equity market to be down that much? >> no, i said the average pe. >> i see. >> would be that so just so we're clear, right now, the flows and equities are incredible from all this dry powder the buybacks alone are probably going to average 1.2 to 1.5 trillion a year. huge amounts of flows going into the stock market so i would just be careful that if we actually begin to address the most important and most pressing problem we have with dual pan date, clearly they get up pe compression, clearly the stockmarket is not going to go up as fast and they go down. >> i want to talk about tonight. because it's a big moment, the annual robinhood benefit event this evening it helps fight poverty in the pig apple. it comes 20 years to the day after the concert for new york city, which was held in the wake of the 9/11 attacks. and it's a big moment.

>> well, we chose this day for our benefit it's 20 years to the anniversary we had for the concert in the city of new york. that concert was held on behalf of the victims of 9/11, that concert was, had the greatest assemblage or artists of all time so if i think about now, here we are 20 years later suffering from another shock like we did then, there are so many similarities and difference that, look, the big difference is that instead of 31,000 homeless we had in 2001, we got 52,000 homeless today instead of 1 million food ensecure, we got 2 million today, which means people are skipping meals just so their kids can eat. so, if i think about joblessness, we were 7% back

then we're 10% now, so clearly, we have a real challenge in front of us. but with that challenge, we have not only a chance to reshape the city, we have a chance to reshape ourselves. so i started doing this thing a while back and how i'd recommend it to everybody. wake up. when you think about something are you grateful for, your wife, your family, your dog, your house, your city so, i have been doing a lot in new york recently. i am grateful for new york pizza, which in my last meal, that would be the first part i am grateful for plaza hotel. that where i got engaged to my wife, where i had my kid, museum of natural history is my favorite place and all of new york so, it's not just what i'm

grateful for, but also how i show my gratitude. when it comes to this city, whether you live here or not, i keep thinking, what is america without a vibrant new york can you imagine no statute of liberty, no broadway >> and for something like me, heck, i couldn't get a job a tennessee, and look what it did. i never could have enjoy this level of success so what i think mark twain said 20 years from now, it's not the things that you did that you'll be disappointed about, it's the things you didn't do so 20 years from now whom i hold

my grandkids, when my grandkids said, granddad, what did you do during covid i won't say i sat in my room with a mask on and made a lot of money and got rich do you know, since covid, since 20 months, the top 10% have accrued $17.5 trillion of wealth the bottom 50%, the needle has barely moved so the question is, how do we show our gratitude tonight, your co-host mike novogratz, he stepped up and gave $25 million. >> bitcoin has been good. >> i'm saying, pound for pound,

he's one of the kindest, most generous people. the question is, how many more people will lend their support mike moran was a fireman who went down in the towers -- one of his -- his brother went down here's a clip. >> let's show that clip. that was from 20 years ago. >> tonight, at that concert. >> in the spirit of the irish people, osama bin laden, you can kiss my royal irish ass! >> that's the spirit that this city and this country has. we need to come together again

for the second renaissance of the greatest city in the world i beside everyone. go to robinhood.org to donate. we will do more to help this city to the least among us who are left behind than anything else that will give you joy in life can you imagine anything more joyful than helping others so, anyway -- >> you're making my cry. that l that clip will do it we hope to do it again. >> thanks so much. thanks, becky. >> i was just going to say, thank you for everything you do for the citi, thank you for highlighting this, and thank you for the reminder to everybody to wake up everyday and thing abou

what you're grateful for. >> thank you all. let's get down to the new york stock exchange. jim, i had another question i wanted to ask about investing, but it seemed very crass after what we were talking about. >> i keep hoping that capacity will go on, but it doesn't seem to go on fast enough >> my friend mitch has his own firm, the numbers that are just astounding and makes you feel that procter will not be able to get out of the jam so you want to go back and buy

faang. it doesn't have inflationary inputs i think that's what keeping driving the stock. >> if you're an investor, and you work about inflates. he said the market may go down, definitely will not grown as quickly, but it still or do you have put it in the market and hope for the best? >> i think -- as long as rates are down, if you think you'll live a long tame, they just don't get there. i think it's important for people to recognize who are supposed to be a huge sort of

funds haven't cashed out so, you don't have that money coming out, money ahmetly coming in there is just a sense -- i hate to use the only game in down, but they don't give you any alternative. we'll have mike novokratz tonight. what is it that he's universitily loved >> ifound out he's a great dad i don't know, i know. >> we love family first. >> we'll be watching in a couple >> we'll be watching in a couple minutes.

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a quick final check on the markets right now. i want to say it's almost flat it kind of is. nasdaq looking to open about 18 points higher. to show you the ten-year note, talking about inflation fears, everything else, now we're at 1.629.

finally bitcoin, real quick after this new etf, $64,389. >> i loved that conversation with paul tudor jones. >> you were so right about him. >> i wish we could have him back soon. >> gratitude every day. >> that's right. "squawk on the street" begins right now. we're riding a five-day win streak some companies -- but others like brinker and renault, with a warning. micron is making a big bet on manufacturing and