tesla's market cap cracked $1 trillion on news of a big deal with hertz now elon musk says no deal has been signed details straight ahead. plus senator joe manchin halting progress on the $1.75 trillion social safety net build back better reconciliation bill and telling his colleagues in congress not to hold the infrastructure bill hostage. it's tuesday, november 2nd, 2021 november 2nd, sounds like an election day and "squawk box" begins right now. good morning, everybody. welcome to "squawk box" here on cnbc i'm becky quick along with joe kernen and andrew ross sorkin. and welcome back, joe, good to see you. >> thank you was i off? did that happen? >> briefly

i know it passed too quickly. >> it went very fast. >> a nice, long weekend. let's look at the u.s. equity futures. yesterday you had all three of the major averages closing at record highs the biggest gainer yesterday was the nasdaq up by more than .6% but it wasn't just these three that closed at or near record highs yesterday. you also had the russell 2000 come within 2 points of an all-time high and the dow transports if you want to flip the board, you see the dow transports just over 1% from a record close at this point, too. that's significant because the transports not too long ago had been down in correction territory. down by more than 10%. now also within 1% of an all-time high. tells you how things have moved. yesterday the consumer discretionary sector hit a high and the bank sector had the best sector since september we want to look at wheat this morning, too, because wheat its

highest close since 2013 up another 1% this morning, a gain of 9% you want to look at corn, we've seen that, it's the highest level its seen since mid august. but we should talk about the things that have gone down, too. natural gas down the last five days decline of 12.5%. it's still at high levels but the lowest level it's seen since october 22nd and treasury yields, they picked up yesterday, this morning down slightly ten year yielding 1.551% andrew >> thanks, becky talking about ups and downs, an update right now on the president's $1.75 trillion social spending bill yesterday senator joe manchin demanding more time to evaluate the projected impact of the bill and refusing to endorse the framework president biden told house democrats was a done deal in the senate last week.

we called out his colleagues in the house for failing to vote on the bipartisan infrastructure framework, or b.i.f. >> twice now the house has balked at the opportunity to send the b.i.f. legislation to the president. there are some house democrats who say they can't support this infrastructure package until they get my commitment on the reconciliation legislation it is time to vote on the bc.i.f bill up or down and then go home and explain to your constituents the decision you made. >> his comments are the latest blow to democrats who hoped to have that bill finalized this week, joe. >> b.i.f.. i like that. i don't know i think i see a very preppy -- >> "back to the future". >> that's what i see remember when biff got really old? >> that's what this bill looks like, too. it's been around. >> he was a bad guy what he did

to poor -- >> this is interesting to see the latest steps on this manchin makes a fair point he hasn't seen the legislation, the text has not been written at this point or kind of gone over. he wants to see that, said he's seen some games being played with some of the numbers but this is a huge issue, because how many deadlines have we now passed now that we thought we'd see movement or action taking place, last week was thela latest, they were saying this week and that's not going to happen. >> a couple of elections, i'm going to vote as we all should but i don't know what happens in new jersey murphy is pretty popular still he's a gregarious guy when we have him on, i like him, still but the guy has made some gains, chit rely, we had him on and down in virginia, it's not over until it's over, early

voting probably would have favored terry mcauliffe but in recent days -- i wore a vest in the day and i thought about it, i look like glen youngkin. he wears that vest terry mcauliffe keeps calling him the orange man in a vest, doesn't mean you're still not the bad orange man but -- >> is that what you're calling yourself now, thebad orange ma in the vest? >> no, i'm saying in the vest i look like -- actually, he's a good looking guy that uy, youngkin a carlyle guy. we'll see what happens that matters, too. if there was a -- because virginia is certainly like a bluish shade of purple at this point, at the very best. so if this is a real statement, i don't know what that means for people like senator manchin, senator kyrsten sinema and other moderates that maybe feel like they're getting railroaded

his main point was it's actually 1.85 but if you know the programs are not going to be two years then it's really probably twice as much and saying why not be honest you're doing this supposedly to help your constituents and help the country, why not be honest with the country about what it's going to cost. he has a good point. no one is saying that. the journal says why doesn't president biden say that as a leader saying this is what's actually in the bill and how it's going to work. instead you have manchin stepping up and he's totally vilified he's like i think kathy griffin might have manchin's head decapitated at some point. the left can't stand this guy. right. >> it's what his constituency thinks that i think he's more concerned about. >> you don't think he's sincere about -- >> no. i'm not saying that. i'm just saying it's not his job to make sure he's appeasing the

entire democratic party. it's his job to represent his constituents like every other senator and congressman. >> where are the other moderate senators whose job is not just to appease their voters either this bill is very controversial. we'll have pete buttigieg on i'm going to ask about joe and pe nanc pe penelopi i'm joe my wife is penelopi. anything >> no. targeting a market valuation as high as $56 billion in rivian's new i.p.o they plan to price shares between 57 and $62 at the high end of the range rivian would bring in roughly $96 million in the market debut.

they plan to list next week. it's developing a commercial last mile delivery fan for amazon and it beat rivals, tesla, gm and ford to the market with an electric pickup truck. amazon disclosed last week it has a 20% stake in rivian. this is amazing, 60 billion, 55, that's near honda. honda has some pretty great cars, right? i see a lot of them out there, same market cap. does that -- i think it has to do -- >> it has to do with the amazon involvement, right >> i've been wrong about all this, but at the end of the day, isn't there just going to be one car market and if you actually were to just subtract out -- do you have to believe that honda goes to zero for this to all work out >> or do you have to think -- >> besides tesla which represents basically every other automake er -- >> or does tesla branch into

others >> what do you do? >> the question is does tesla get involved with other things, batteries and solar power and those other things that go beyond it's a fair point. >> tesla is one thing but they have other products outside the car market it's when you see the rivians of the world and say to yourself, the bet is that they win it may not be a zero sum game but at some point there's a pie here and the question is, did every other slice, is it worthless? it's hard to understand what's happening. >> you're using market caps to think about whether, you know, the size of the pie -- >> market cap, enterprise. >> is shiba inu what is that and bitcoin, 80 billion? >> does it come back to earth? >> that's what i'm asking. >> yeah. did you see -- did you see

someone had a joke, someone has a jerome powell twitter feed did you see that >> i have. >> he changed the name of the federal reserve to printa. >> i did see that. >> you did see that. >> i did see that. they must have tagged us in it that's why i saw it. >> obviously it wasn't him. >> no blue check mark. >> no. no blue check mark. >> that's the giveaway >> how can you do it if you are -- i've seen people with 50 and 60,000 followers that don't have a check mark. >> there's an authentication process you have to go through for twitter. >> i didn't go through it. >> cnbc did it they did it for all of us. it was a while ago. speaking of tesla, tesla hit a $1 trillion market cap for the first time a week after after hertz announced it would grow its fleet of electric cars with an initial order of 100,000 teslas by the end of next year

but elon musk has a message to investors. you're welcome if any of this is based on hertz, i'd like to emphasize that no contract has been signed yet. tesla has far more demand than production therefore we will only sell cars to hertz for the same margin as to cob summers hertz deal has zero effect on our economics. here's what hertz's interim ceo told us last thursday. >> we have relationships with all of the auto makers and we want to help them as they introduce electric vehicles we're going to them not on a transactional basis it's a strategic discussion that says how can we help you achieve your obje objectives, we've done it with tesla and our intention is to do it with all the automakers >> tesla down about 5% right now. this is not the first time elon has come out and said i don't understand the stock price is too high, if it's because of

this, let's pay attention to it. although probably worth pointing out if this is a negotiating tactic if hertz was pushing for a better deal, better price, this is elon saying no we don't need your business because we have more demand than we can fill right now. tesla shares down by almost 5% lucid off by about 4.6%. some of the other makers down as well and hertz shares after they announced the deal last week were up more than 20% too. so you wonder what this means, how it's going to play out i did reach out to mark fields about 10 minutes ago, it's early in the morning, maybe we'll hear back from him later in the morning, too. news crossing the wires, tesla is recalling 11,700 vehicles because a communication error may cause a false frontal collision warning. it filed the recall notice with

the national highway safety administration probably whyyou see the downward pressure on the stock, too. >> can you call charlie munger and ask him about this dorm prison he's building did you see the hoopla on this >> i spoke to charlie about this this is a project he's working on for a long time he's giving the money for it his only key was he wanted to design the building the way he thought was best spent a lot of time thinking about it. >> no windows. this weird artificial light. >> i talked with him about this years ago. that was part of the plans all the way through on this. >> why >> it's a more effective efficient way of getting people in the dorms every room is a single so you don't have roommates there are common areas and places you share but the give on that is you don't get a window you have the light -- >> you need -- if -- do you need

to be paroled to leave it to go to class. >> there are a lot of people that would like to have their own room. >> go on youtube, because this exists at the university of michigan this exists there is a munger hall there and there are people who have created videos of their dorm rooms there, and you can see what it looks like with the windows, without the windows the ones in michigan, i think have their own bathroom. i'm not sure whether i'd be happy or not with it but go online and check it out obviously when squawk is over at 9:00 a.m. >> who needs windows at ucmb of all the colleges in the world. >> it is a nice building if you looked at the plans. but i get it, a window. >> it's like the future. you cannot leave the air is not breathable. >> kind of like where we are right now. no idea what it looks like. jay powell and company kicking off a two day policy meeting. get you ready for the potential

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another triple record close for the broader markets the dow, s&p 500 and nasdaq each posted new highs yesterday. so far this year the s&p has had 60 closing highs records. a feat that's only happened three other times. markets also will focus on the fed this week, the central bank kicks off the two day policy meeting. joining us today gabrielle sanchez and gunga bonorji. now a cnbc contributor when did that happen >> just recently i believe last week we made it official. >> what a weekend you must have had, the celebration probably never ended. parties every night? >> every night

i'm very excited >> we're excited, too. so tapering, i think maybe both of you ladies have similar feelings that the market is, would you say, looking past this already, gabriela? >> completely looking past it, and it's a testament to how well chair powell and the fed have prepared investors for the tapering tomorrow. so we expect it to be a snooze and the attention is completely on rates and on liftoff. we've seen such a big move on the short end of the curve there's been a huge pull forward for the first rate hike. expectations that it could be as soon as june 2022, and that we can get more than two rate hikes next year. we think this is completely overdone this is a fed that is reactive, not proactive to inflation and

one that's focussed on the employment side of the mandate and a more inclusive broader concept of full employment so we think this curve flattening has gone way too far. short end yields have come down too far. the long end should steepen and perhaps chair powell will push back against the mispricing tomorrow during the press conference. >> you look at just the way the stars are aligning without the supply chain disruption and maybe as we come out of the variant sort of that cast a pall on certain parts of the economy. as we come out, the demand seems like it's going to be there and it's overshadowed by supply chain, you have strong demand in the economy, you have inflation running hot. what are we doing at the rates anyway we should just take it and for what it is and just love it that we got these low rates and these

good things happening. no wonder stocks are going up. >> that is true. you have this favorable backdrop but i think there are competing forces at play demand is hot, people are ready to spend inflation is stickier than many of us expected but it seems like growth is cooling somewhat and kind of the peak growing period is behind us and americans haven't gone back to work at the pace many of us expected so there are competing forces at play and i think all eyes will be on that at this fed meeting, especially how the fed is reacting to stickier than expected inflation. >> so, worker shortage could bring back stagflation by ron john, i don't think it's the guy with the surf shops -- yeah, it's a senator from wisconsin. is sticky the wrong word because

sticky implies it gets unstuck are we in for this for a while >> i think what we have been seeing is that there's some elements of this increase in inflation that are a bit more structural or stickierin natur so it's not all transitory it's things like rental inflation, also higher wages and higher inflation expectations. so we don't think inflation is going to remain at this 5% it will moderate, but when it settles, it should probably settle at an above 2% rate when all is said and done by the end of next year but i think what equity investors realize is that's not a bad thing when it comes to earnings growth and the stock market especially when it's combined with good, real economic growth as well. and i think what happened in the month of october is the narrative changed from stagflation to reinflation

yes, we had a deceleration in real growth in the third quarter but signs are we're seeing a re-acceleration in the third quarter. that's why you've started to see cyclicals do better. >> you would say this overall valuations in the equities market, is that based on all these underlying good fundamental prospects or still based on a very accommodating fed? because you can find pockets of speculation. when we get a change in fed policy, it might be the second derivative, a slowing of the accommodation, but sometimes that's enough for the markets to say, you know, it's not the tailwind that it was anymore is that imminent >> i think when you look at the broader market things have been so calm, as you pointed out the

s&p 500 has hit 16 new highs this year. so equity investors do seem quite pleased with this ba backdrop when i step back i'm seeing pockets of insane speculation. the shiba inu coin and dogecoin, you're seeing the trump spac record the double triple digit day single increases and last week traders were swarming the market for tesla options, betting on high erand higher share prices. people are making risky and bullish bets in many corners of the market >> very good thank you both i guess we'll be seeing a lot of you now with -- across -- throughout the day gabrielle are you a contributor yet? >> i am not, but i do have contributor envy thanks for pointing that out, joe. >> i just assumed it i just assumed it.

thank you both we can talk. we can have that conversation. actually, i can't say that >> sure. i think you can. you just did right. when we come back, this morning's big money movers including a plunge in education stocks and beatfor the country's biggest mall operator. and later pete buttigieg joins us with an update on the president's social spending bill and infrastructure bill in congress "squawk box" will be right back. (vo) this is more than just glass, walls, doors and carpeted floor. it's a place to change the world. loopnet. the most popular place to find a space.

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buyback program but the shares are off by about 3.1% today that may be in part because of headline issues with this, the underlying replacement cost profit, basically their net income, $3.3 billion versus $3.1 billion for the estimate but there was a headline loss of $2.5 billion because of what they're calling a significant adverse fair value accounting effect that caused a $6.1 billion hit we'll talk about that. they were hedges that they have to account for on one side of the ledger, not the other. for whatever reason that's getting a steep decline with the stock down by about 3.1% but we will be speaking with the ceo, he'll join us at 7:35 eastern time we'll talk to him about that, more on the plans to give money back to the shareholders through dividends or share buybacks and what they plan to do to boost spending on low carbon energy. all of that coming up at 7:35 eastern time shares of simon property

group are higher, earnings of $2.07 a share above expectations of $1.09 revenue also above and the company raised its guidance, increased its dividend occupancy rates just under 93% ceo david simon said we've overcome the arbitrary shutdown of our business due to the pandemic and our cash flow has bounced back dramatically. coming up when we return, president biden announcing new measures to tackle methane emissions. we'll take you live to the climate summit in scotland as we head to a break, a look at yesterday's s&p 500 winners and losers

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welcome back to "squawk box," everybody. new overnight, president biden is expected to announce plans to limit the methane allowed to come from oil and gas rigs across the united states in a signal that the united states is serious about fighting climate change diane olick joins us from

glasgow. >> reporter: the announcement is out, the epa will propose new regulations to strengthen methane reductions for oil and gas facilities which are responsible for about 30% of emissions. the u.s. is, working in partnership with the eu to lead a global methane pledge to reduce overall emissions by 30% below 2020 levels in addition it will require states to reduce methane from existing sources. specifically regulating methane leaks. the requirements would reduce emissions from these sources by about 75%, that's according to administration officials president biden will make remarks on that later today. but he started this morning announcing a decade-long effort to save forests and ecosystems that serve as carbon sinks

>> preserving forests and other ecosystems can and should play an important role in meeting our ambitious climate goals as part of the net zero emissions strategy we all have and the united states is going to lead by example at home and support other forested nations and developing countries in setting and achieving ambitious action to conserve and restore these carbon sinks. >> president biden will also make an announcement about a new private sector partnership to fund clen energy. >> i've only heard a few headlines but i heard there was a move to encourage farmers to make sure they are limiting their methane emissions. in my mind i keep thinking that is cow flatulence, how do you limit that >> we've done stories on it,

becky. there are researchers up in maine using seaweed feed to reduce those emissions from the cattle that's one way to do it and there are other experiments to help reduce that carbon capture on the farms but there are details in the plan. but major efforts to reduce methane emissions. >> seaweed as feed, sounds better than corks. thank you, dianna, see you later. coming up after the break. we have the show down in virginia pollster frank luntz is going to be here to talk about the key governor's race in virginia today and what it means for the political landscape not just there but across the country. bp reporting better than expected numbers, we'll talk with the ceo in the next hour. "squawk box" returns with so much more in just a moment inves?

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welcome back to "squawk box. today is election day for governors races in new jersey and virginia marking the first major races since president biden came to office and virginia former democratic governor is running neck and neck with glen youngkin. both are seen as predictors as the gop's chances of winning back the house and senate in the 2022 midterms. joining us to talk about it is frank luntz. good morning to you, frank it's great to see you. we're all watching and staring right at this virginia race. and i don't know how much we're supposed to take away from it. so i'll start there. how much do you look at virginia and try to extrapolate as to what this means for the midterms >> let's start there there have been four times when the party that's been on the outs has won the house from the incumbents, four times in the last 50 years.

every one of those last four times, 100% virginia has predicted the outcome. which is why everybody is watching it so closely and the vice president herself said that virginia is going to tell what's going to happen in 2022. so you have all these policy initiatives that are up. and that's why nancy pelosi was desperately trying to get a vote in the house they're nervous that if a republican should win, that's going to be a wakeup call for democrats to be very careful about their policies, be very careful about spending more, which the public doesn't support. raising taxes more, which the public doesn't support it will make it much tougher for the biden administration to get its agenda through >> how much of this, though, frank, is a referendum on the fact that the democrats have not been able to get, frankly, their act together to pass any of these things and how much is it of the merits of what they're trying to pass itself? >> you're trying to win a state

that is maybe two or three percent leaning democrat, it's not really about the policies. it's not really about what's been passed and hasn't -- let me take that back it is about the policies but it's much more a statement about joe biden. and his numbers have been falling faster than wiley coy owe coyote in a road runner commercial but the only person less popular than joe biden is donald trump his ratings are lower in virginia than biden's are. this is a case of turnout. this is going to tell us whether the year 2000 was an anonly or whether it's here to stay. what has happened in virginia over the last six weeks is the highest pre-vote for governor in the state's history and the most amount of money spent for governor's race in the state's history. we are setting all-time records

in virginia and it tells us that money is here to stay. that turnout is here to stay and that these deep partisan divisions still exist in a state that up until 15 years ago was really a bellweather for the country. >> i'm not going to ask you to extrapolate to '22, just out for the next couple of weeks which is to say we still have these bills which have not passed so walk us through the permutations in your mind of what happens depending on the outcome of these elections to these bills. we have so many people watching this program, whether they're business leaders or investors and policy makers who are trying to think through those permutations >> the progressives are committed to getting their vote their way. but if the republicans win tonight, and i do think they will i think there's about an 80% chance that youngkin beats terry mcauliffe. and terry mcauliffe is the

incumbent in that race the democrat is the incumbent and it looks like the incumbent is going to lose assuming that happens, what you have on wednesday, 24 hours, is the problem solvers caucus once again being the most important people in washington d.c it's about 60 members, half republican, half democrat and they're going to be able to say to the president, the administration, you see what happened this is what will happen to our party if the progressives are in charge they're asking does the legislation pass, in my knowledge of what's going on in the democratic party, i think it does, but i think it passes closer to what joe manchin wants than what aoc wants. if you're watching this show you're going to pay more taxes in 12 months, odds are but it's not going to be con fi ask you toy. there's not going to be a

billionaires tax if republicans win. there's not going to be destruction of estates and savings and small businesses if republicans win in virginia. but there's still going to be a tax increase, there's still going to be this infrastructure package and there's still going to be a smaller cutback social spending program, but it won't be as extreme as it would have been. >> bring it home for us since we're in the tri-state here. do you have a view on what's happening in new jersey? >> i do. the republican candidate is not chris christie, he's not someone who cuts across the votes. it's going to be closer than -- i actually think it's going to be single digits, but that's not significance all eyes are on virginia new jersey has never been predictive, virginia is. new jersey is a hard-core democratic state, virginia is more of a bell weather when i was on your show in 2020, i was able to predict that it would take four or five days to

count the votes. tonight it's going to take four or five hours. virginia is a fast counting state, i think that we will know well before midnight who the next governor of virginia is, and you can start to make your investments for tomorrow morning. >> frank luntz i hope when we wake up tomorrow morning we have a result so we can start thinking about it. always appreciate your insight on all of it appreciate it. thank you. pfizer out with earning. m meg tirrell has those numbers for us. >> a beat and raise for pfizer in the quarter, adjusted eps coming in at $1.34 versus estimate of $1.09. $24 billion revenue versus $22 billion estimate $13 bi $13 billion in revenue for the quarter. company raising guidance, seeing revenue of 81 to $82 billion up

from 78 to $80 billion also raising adjusted eps to $4.18 per share. a lot of that driven by increase in expectation for the covid vaccine. up to $36 billion from 33 .5 expected to deliver 2.3 billion doses for the year taking out the covid vaccine from the guidance, they are bringing down the top line from 47 to 46 billion but bringing up the bottom line of the adjusted eps guidance excludeing the covid vaccine. pfizer making the point it's driving the business, the covid vaccine is huge but also driving on other cylinders as well so pfizer up we have the ceo joining us on the exchange later today very interesting. >> that will be interesting. we'll be a watching. when we come back, new data

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national job growth for small businesses across the country on the rise for the fifth consecutive month with wages seeing a steady increase that's according to new data and ihs market joining sus marty mucey. these ceo of paychecks walk us through the index. what did you find? >> it's the highest since 2017 really strong job growth, led by leisure and hospitality. still a shortage of workers, a lot of leisure and demand for

these workers. wages up the highest they have been in ten years, 3.85% overall. leisure and hospitality over 8.5% more than last year. >> so the highest in ten years, people think this will run away, wage inflation if it's the highest in ten years, that doesn't sound that bad. you have been doing this a long time. >> it's a high increase. it's pretty strong, when there is the shortage. on top of the wages, there is bonuses, more than 20 to 25% for clients for front line jobs are providing start-up bonuses when you add that on top of the high wage increases, you got a high wage number the issue is there is 5 million shortage of people versus the jobs so we're honing we're going to see that, the demand is strong the people are still a little bit short. >> i guess that's a big question you are offering the biggest wage increase in ten years

you are still not able to find help, is that the case or are people able to find employees in >> they're finding some, not enough very resilient they hung in tlrmt i think the stimulus has helped them employee retention tax credits have helped them to stay in business but they will have to stay at work when you look at the vaccine not being available for kids five-plus and things out there spending is up savings are down i think you will start to see people getting back to work and there will be a much bigger surge here in the next quarter or two, probably first quarter of next year. >> the question is where have the workers gone you think that's the child care and the things along those lines, have you people who have said, look, we had a lot of early retirements, those people may not be coming back what are you hearing on that

front? >> what we're hearing is people retiring early we're seeing that in paychecks people are interested in four hours here, four hours there that's a popular thing for people that want to work more part-time. healthcare issues subside and bell e people will need the money as the stimulus stops coming in, like the child credits, the advance child tax credits. i think you will see them come back strong, especially in the first quarter of next year. >> the tax child credit has imposed as the human infrastructure gets passed, does that bother the people you talk to in. >> one is when people get it the next break the next is there is more cash in their pocket. one other interesting stat is when you've heard this, you have

great resignation, the voluntary termination, people leave their jobs on their own is up double it's at 60% of terminations now up from 30% just two years ago it's really an amazing time for that >> that's the take this job and shove it faction, right? >> or i will try something else, hey, it's interesting. it's work from home. i want different flexibility it's trying the different jobs in their life. it's amazing, it's held around 30% and terminated it's now 60% voluntary. it's an amazing stat i think from just two years ago, it's doubled. >> that is something we will have to discuss further down the road >> good to see you >> good to see you coming up, our "squawk" news maker treasury secretary -- ha, ha, ha, wow, what a promotion,

treasury secretary, pete buttigieg on what -- when did that happen? actually, he's transportation secretary. anyway, what he's done, i'm glad, think about what i read. what i've done for the infrastructure bill to pass. bernard looney on the strong quarter and global energy picture. are you watching "squawk box." on cnbc. live from the nasdaq market site in time's square in time's square >> can't enter and manage their own benefits enrollment information, it can be a real pain. not even— nope! with paycom, employees enter and manage their own hr data in a single, easy-to-use software. visit paycom>om and schedule a demo today. hi i'm joe montana. when you get to be 65, you have little patience for nonsense and inefficiency.

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. records once again, if the fed kicks off its two-day policy meeting today, we'll get a preview of what to watch and what it means for your portfolio. toyota and other ev auto makers calling union-made cars fundamentally wrong. we will hear from one of toyota's top executives why they think it's unfair. senator joe manchin halting progress on the $1.75 trillion social net we speak with transportation secretary pete buttigieg on getting a deal done. second hour of "squawk box." begins right now > . >> good morning, welcome back to "squawk box." right here on cnbc with us this morning right here and i'm andrew ross sorkin along

with becky quick and joe kernon. let's show you the futures, if we could the dow up 23 points s&p off just marginally flat for now if we could, nasdaq off about 26 points. we got a couple big headlines right now. shares of the es la are looking lower as ceo elon musk responding to the stock's recent news that herds would buy tesla vehicles musk tweeting if any of this is base on d on hertz, we have not signed a contract. tesla has far more demand and hertz deal would have no idea on economics. not sure if this is a part of a negotiating effort of some sort. clearly, there is no cut or special deal that hertz is going to be getting.

meantime, apple has cut production togy more chips to its iphones. they said ipad production has been cut in half apple's original plans from just two months ago. in an sec filing rivian kicks off a road shshow to pitch investors begins today, joe. >> thanks, let's get to dom chu for this morning's pre market movers i start thinking of this when i get here i can't wait for dom there you are. >> i appreciate the love i get from all of you here on "squawk box. we do love to talk about those movers, as people are driving or getting ready for their morning calls. they want to get an idea

we have stocks, they're earnings-related stories first is generac holdings. nonetheless, generac comes out with a mixed earnings report the revenues came in slightly shy of expectations. the company's order backlog continues to grow. they make generators everybody wants generators these days the supply is proving a headwind like many other there. yes, generac has a mixed report, pulling back 6% from record highs. also watching what's happening with an earnings report from last night that was arisa networks, cloud-based that sort of thing arista is up for a multitude of reasons.

better-than-expected outlook as well this is a big thing. a $1 billion stock buyback that's big when is the last time we heard of a stock split so $480 goes to 120. with the current market, arista up 65% in a pre-market year-to-day basis 65% a. check on crypto currencies they're up across the board, generally speaking bitcoin is up 63, 220. etherium up 2.5%, 44.48, shy of 44.50. coin-based global up 2%. microstrategy owns bitcoin on the balance sheet up 2.25% the strategy, etf uses different instruments, like futures up 3% in the pre-market trade a. check, joe, on that crypto currency industry. right now, it's on the upside.

back over to you >> all right dom. i like this tournament down in mexico every year, it's good, they have a unique-looking course. >> i would love to go down there to play that course. i say the bermuda one butterfield. i couldn't deal with the wind like they do down there. >> mid-ocean is spectacular over there if you get a chance ever. >> i would like to go mid-ocean and those courses in the bahamas, but i have not had a chance, everything along the atlantic coast. >> jordan has a pretty nice one down there, too. got a few. >> you got it. >> thank you, dom chu. >> the fomc physikicking off a two-day meeting today. what do you think, steve, is this the time? >> it is the time, amid heightened concerned about inflation response, the fed is

going to announce the taper tomorrow and it's going to start hiking interest rates much sooner than previously forecast. respondents to overwhelmingly assets will be announced but the taper is going to begin this month. it's going to proceed at a $15 million monthly pay. it will end purchases in may of 2022 remember now forecast first rate in december that compares with september 44% think it will come as soon as july. inflation replacing covid as the number bun threat to the economy. 60% think it's a big enough concern the fed should start right now. 40% thinking it should prompt the fed to raise rates now the overall outlook is the fed will go slowly, one full hike next year and the fund rates ending at 53 basis points. however, pricing in a second hike by december

so our response is not as aggressive as the market is right now. perhaps it's off precision inflation, the fallout controversy, just 56% fed chair j. powell will be appointed to a second term. that's down from 91% in september. 12% believe he won't be. a large 32% think they're not sure that will happen. that's a big level of uncertainty. that's at 76% that fed j. powell should get that second term. >> steve, it's getting late in when you expect that nomination this has to happen quickly i think the last time around it happened late. was it this late when we found out? especially given - >> i think it was later, actually. >> even december >> january or something like that i remember some fed reappointments coming in the fall, but i remember others coming later, as late as january i believe with president trump

and j. powell, if i'mnot mistaken >> i guess the question on this is, is it going to be a difficult passage through the senate, which watching everything that's played out, how things have gotten kind of jammed up in congress right now, they haven't passed either of the two big bills that they have been talking about and that makes a lot of people wonder if this position is going to get something that gets traded away in a horse trading around those two bills, too? >> you know, i don't think so and i'll tell you why, it's judged by the last hearing that fed chair j. powell was in, where elizabeth warren as you remember went after him on banking regulation, said he was a dangerous man. i did not hear others join her in that level of rhetoric or whatever you want to call it, sharod brown, another powerful democrat he's critical of powell, not at the level warren was republican, i don't think

they're going to trade in powell for somebody who may be more lacks on monetary policy than powell has been. i think the idea is powell is a republican, appointed by trump and you know for the lack of a better word, the devil you know versus the one you don't when we come back, a tax bonus for union-elect cars, under fire, tesla, honda, toyota and others calling it fundamentally wrong. we will speak to the top north american executive next. later transportation secretary pete buttigieg, the build back bter anetpl and much more "squawk box." will be back after a quick break. your record label is taking off. but so is your sound engineer.

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welcome back to "squawk box." this morning tesla ceo elon muck not the only executive upset about a special ev tax incentive targeting vehicles phil le beau joins us with a special guest who i am sure has views on this topic. >> oh, he has views, let's bring in bob barger with toyota. we will talk about october sales in just a bit. first i want to get your thoughts on what's working its way through congress, which so far has remained intact, a $12,500 tax credit you can take

immediately at a dealership if this build back better plan passes, if an electric vehicle is built at a unionized auto plant versus a $7500 tax credit if it was built at a toyota plant. what are your thoughts about the possibility of this becoming law? >> well, good morning, phil. yes, as you outlined, there is an incremental $4500 for any vehicle that's purchased and manufactured by the uaw. there is no other way to put this this is just bad public policy it's bad for consumers it's bad for u.s. auto workers and it's bad for the environment. the u.s. government has set out a goal, which we support to achieve 50% of electrified sales by 2030. but this bill effectively eliminates over half the vehicles that are built in the united states. and we believe that this is an

unfair policy, why should a auto worker in kentucky or texas, mississippi or alabama be excluded from this tax incentive while other auto workers in the northern states receive it it's just bad policy there is no other way around it. >> you mentioned those states, bob, have you five finalists, ten plants overall, 38,000 employees here in the united states, clearly, you have a lot of interaction with a lot of members of congress. when you've talked to them about this, what have they told you back in terms of any possibly of removing this unionized tax credit >> well, it's still being debated, phil, many of our congressmen and senators are against this exclusionary bill however, it's such a small piece in this trillion dollar build-back better plan that it's very difficult to get focus on it

and we're out communicating with our government leaders to make sure that they understand how discriminatory and exclusionary this policy is if the government wants to achieve climate benefits, the best way to do is not to exclude over 50% of the industry as written, this bill only benefits general motors, ford and if a customer would like to buy a tesla or toyota or a rivian, they're not going to achieve $4500 tax credit and $4500. let's call it $100 a month, that's too great of a hill for an oem or manufacturer to absorb themselves so what we're doing is we are limiting customer choice again, it's simply bad policy. >> not to belabor this too much, bob. one of the things people don't understand as opposed to the

current federal ev tax credit, which you put on your federal tax return, which is generous in some regard, but it's the kind of thing where somebody leaves a dealership, they're saying, i'm paying x amount for a particular vehicle. the way this bill was written, you would be able to as a customer take that discount immediately at the dealership. it would knock off essentially the transaction price essentially up to $12,500. the point being, it would potentially have people getting a discount immediately, therefore, it could juice sales of evs did that concern you, immediately people would say if i go here to a general motors vehicle, i look at this vehicle, it will be substantially lower filook at a comfortable vehicle. >> yes, phil, that's the heart of the concern 's you pointed out, we manufacture vehicles in indiana,

in couple and texas and alabama and mississippi, 15 locations throughout north america but a customer that has to choose on one manufacturer versus another depending on what auto worker built the vehicle shouldn't be a policy that we support as a country again $4500 difference between an electrified ford or electrified toyota or tesla, that's too great of a hill for manufacturers and to expect consumers to achieve >> hey, bob, it's andrew here. i've read a lot about the descriptions between how much tesla employees have been paid relative to umw workers, sometimes they've paid much more because they have been paid in stock. how do toyota employees compare

relative to pay and tesla workers and uaw workers? >> well, our pay plans in our plants are very comparable to the industry standards we participate in the same labor pools. so there is no disparity, material disparity in pay. in fact, rye teenly over the years, our associates and our team members have been asked, would they like to unionize, organize and our team leaders are very satisfied with their compensation and benefits andrew teenly have voted down the right to organize, it's completely up to our team members of what they choose the workplace to be >> bob, i have one other question for you the chip crisis and it really hits you guys in the third quarter after not having as much of an impact in the first and

second quarter where do things stand as you come out of october? and how much did it impack your ability to supply dealerships in the month of october >> phil, the september and october was the bottom of our availability crisis through the chips. we're seeing some clarity and improvement as we move into december and september we sold 146,000 units last month, that closed last evening. that's down about 25% from where we were a year ago before this supply crisis really hit us. but we're fortunate year-to-date we're up 20% we believe october and november will start to normalize, get to production levels close to what we achieved too last year. it will be well into the first quarter before we can say the supply chain is back to normal levels >> bob, one last question,

increasingly, when i hear from people out in the mark looking for a new vehicle, they call me up and they'll say, are you familiar with these dealers adding on covid-related surcharges, whether it's a thousand, 1,500, maybe $2,000. i have heard about this a number of times and i'm sure you have as well. what are your thoughts about people going into a dealership and a dealer saying, you know what, whatever that price they're in, we will be adding another $15,000 on top of that. >> phil, we certainly don't support that, we encourage our vehicles to sell vehicles at manufactured suggested price the reality is we are in a supply and demand situation. consumer demand in the economy is very ro bust, consumers are out shopping for new cars, trucks, suvs, because of the microchip and supply chain industries, across the industry, there is simply not enough

supply to meet the demand, it's economics 101. when supplies are restricted, prices go up >> bob barger, joining us from the toyota headquarters for the united states, which is down in plano, texas, we appreciate you joining us today we got a bit of a sneak peek at the toyota numbers coming out for the october sales. i'll send it back to you i have to point out, i have increasingly heard this from people it's driving potential commerce nuts. >> that's crazy. >> it's bad enough they look at the mrsmp. what is this a price charge. >> that is price gouging >> i've heard about it that's a fine line there i don't know what the actual legal line is when it comes to gouging. i've heard that term thrown around by a lot of people. >> the dealers are the only ones that can get their hands on these things i think that would drive the

manufacturers nuts themselves, the idea that you have them marking them up above the suggested retail price because they k. i wonder if the dealers or manufacture verse any recourse to deal with dealers who are doing shady things like that >> i don't know, becky, the exact answer to that but when i first heard about this i'd say about a month ago, i'd say, is that a one off i'm starting to hear about it more often. >> jerks phil, thank you, great to see you. when we come back, a new study on the flipside of the great resignation, sharon epperson has a preview. >> reporter: hey, there has been a tidal wave of turnovers in the u.s. work force. at least one in four people quit their job this year. that share can grow according to one report so what's the impact on those who stay we'll share the results of a new study after the break.

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sharon epperson joins us with more on that good morning >> good morning, andrew. a new survey from the society of human resource management finds that more than half of workers who remain on the job after colleaguess have left say they've had to take on more work and responsibilities >> so there is this vicious cycle. employees leave, which means all of their work has to be done by the employees who remain and the employee who remain now say i'm working too hard, i don't have balance in my life, so they want to leave thus a vicious cycle continues >> nearly a third of workers report struggling to get necessary work done and more than half wonder if their pa i is high enough carole sloan the project manager in new jersey says more resource would ease her burnout and burden >> more resources, so more resources in terms of individuals to help with the

load obviously, some type of compensation, if it's an increase on this, the recognition that you know everyone is working really hard to continue to deliver for the organization >> better compensation is the top reasons workers search for a job the survey found, employers think better career advancement and benefits are better for workers. >> there is a major disconnect resulting in us losing employees, we think we are saying it's one issue. they're saying it's actually something else >> as a result of this disconnect, more employees may wind up quitting and replacing them comes at a hefty cost, andrew >> so i have two questions here. the first is what should the loyal workers, the ones that want to be there and stay on the job do to alleviate the burnout and try to get better

compensation if they think they are being underpaid, given nay are doing more work? >> the most important part about negotiating with your boss is being clear. you should first decide what you want is it time off additional resources, more money, a promotion you they think it's all after the above. negotiate. have your responses for objections your manager may have in the end, if you made a strong case and you don't get the answer you want, look elsewhere, inside and outside of your organization >> a great resignation thanks, sharon, appreciate it. >> sure. >> joe >> those are all things for your agent. aren't they? i think that's what the agent is supposed to do all those things, right, andrew? >> you got to speak up for

yourself >> okay. all right. still to come. transportation secretary pete buttigieg is going to join us with the latest on president biden's spending bill. bp, cebearo rnd looney breaks down the quarterly results you are watching "squawk box." on cnbc. ♪ (vo) reflect on the past, celebrate the future. season's greetings from audi. we're getting destroyed out there. we need a plan! i have a plan— right now at t-mobile, customers on magenta max can get the new iphone 13 pro— and t-mobile will pay for it! it has the most advanced iphone camera ever! i'm talking new customers! i'm talking about existing customers like ronald!

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after speaker pelosi announced an expected vote on the president's social spending bill later this week senator joe manchin once again asked for more time to evaluate it joining us to the reaction, secretary pete buttigieg it's good to see you my wife's birthday was sunday. do you know what her name is >> let me go ahead and wish her a happy birthday >> penelope. my name is joe joe and penelope that's a coincidence and i don't, your joe is not named after man chin or me, have i got that right >> yeah, his grandfather was named joseph nothing against other great josephs. >> joe and penelope, i love

that, congratulations. can we make the three-month family leave can we start that at like two years? can i skip that's the best age for them have you considered that that might make it more palatable i think? >> i didn't think i would be into the baby phase of things. i always thought before i became a father, once we talk about books, that's when i will enjoy it i got to tell you, it's the most incredible thing it's hard, they are going to eat every three hours. >> eat se >> eating is not the problem it's half the problem. talking about something senator m manchin said, more of the details outlined in the basic frame are released, what i see are shell games and budget gimmicks that make the real cost

of this 1.75 bill twice as high, and he's saying, in not be honest what the costs will be before we do this? is he appeaseing west virginia voters or is that a genuine request from joe manchin, what do you think? >> looking to be voted on, the bill has a text. everything is there literally in black and white. it's being score and the president laid out how to pay for this, so it is deficit neutral or better. i heard him mention three things, what it will do for the debt, the economy and the country and very confident that there are very good answers on that front which is why we are confident this framework and these two pieces of legislation will move through both houses of congress the democrats, moderates and progressives will unite. i'm still holding out hope some republicans might, just might decide it could be a good thing to invest in the long-term

capacity of this country and make sure child care is affordable get our 3 and 4-year-olds need indication these are things our countries do to remain competitive leading economists point out it will fight inflation in the long term i think an under reported benefit of the build back better package. if he has those concerns, that is fair game there are good answers to those concerns i didn't view anything as changing in terms of the momentum i said a few days ago, we're closer than we have been we are closer still. obviously, i can't wait to see this signed, sealed, delivered, so my department can get to work on deploying our packages an getting the rods, bridges, airports some more. >> that's the other bill the other thing that manchin mentioned that he recepts being held hostage for the bipartisan infrastructure side of things by this bill.

we go back and forth one is one, one is the other the journal points out that the cbo, they're not going to be able to score before it's voted on, there is much wanted framework is like a house with only 2 x 4s in place the rest of the things can be added before one can look at what the implications are, whether there will be debt finance, deficit finance, whether it will be inflationary, that we won't know basically because we won't know what the final product is and we will be voting on it there is no merritt to that argument either from manchin >> look, we have been laying out how we envision paying for this thing, since the spring and it's really clear fundamentally what it comes down to, which is tax fairness and one of my favorite things about this packages, as americans hear how we will pay for it, support goes up higher than the ridiculous high level of support among the american

people, because they can see what the benefits of the bill will do for them it's easy for people to understand how their family would be impacted by pre-k for 3 and 4-year-olds when right now the average family spends 8600 bucks on that. it's easy for what americans will compute what you do with that $300 a month tax credit if you could knock off the cost of an electric vehicle, buy it and never have to worry about gas prices again, americans are conscious of living in a tax system that isn't clear, corporations making billions in profit paying zero in taxez, when a fire fighter is paying more, not just in percentage terms, literally in dollar terms, you know something is off. there is this remarkable achievement and things that will offset that. you get into the black and white, the tax details there is a lot the to quibble over, a lot

to examine but at the end of the day the bill by definition is voted on as a concrete black and white documents that every one of the members of the house and senate who is asked to support it has a chance to scrutinize and decide if they're for or against. >> mr. secretary, i want to ask you about one component of this bill that has caused a lot of debate on our program, in fact, which is the plan to effectively advantage car manufacturers that use union labor over others, that would include, of course, the teslas of the world and the toyotas of the world who had an executive on the program by my math, it looks to me like tesla employees, possibly toyota employees in certain cases are being paid better than union employees at the other car manufacturers. so i'm trying to understand what the policy strategy is here. >> well, as we said from the

outset, we want to make sure we are creating more good-paying american union jobs in this country. now, when you look at the ev race, it's been clear for some time that electric is where industry is going. but what's not going to happen on its own is for it to happen, a, fast enough, to be the climate challenge, b, happen on american soil as much as possible and c, where possible happen with good paying american union labors so this tax incentive package is et is up to promote all of those things, first the baseline, getting more electric period that's kind of the core of these incentives, yeah, we love any time someone buys an electric car. we will love it a little bit more when it's an american car made on american soil when it's an american company, that's something the president cares strongly about just like we believe some of these issues with the supply chains would be easier if it was made at home >> i tons made at home issue we're talking about auto makers

making them at home, some with union labor, some without. in some cases there are employees not a part of the union who have actually decided on their own not to unionize because they actually think they're getting paid better so what i'm trying to suns why from a policy perspective you want to advantage those over those other employees? and those companies? >> or policy is that when workers have union protections, they are more secure, communities tend to be stronger and, you know, as the president often says, unions built the middle class, so it's something we believe in as you noted, it's not a requirement to get in on this incentive at all. but it does create some encouragement for that kind of work look, i come from the industrial mid-west i've seen what is possible people can rely on the support for their families the social exam as well as economic capital that's built up i don't know if there is an

apples to apples comparison to these firms, anytime they pay an employee well, that's good news. i think we all know that there are certain protections that a lot of workers in auto industry and other industries are going without. it is no accident that the gradual erosion of union support and participation since the '80s happen at the same time as an explosion of inequality and increase in financial insecurity for the american working and middle classes and this president has been extremely clear, thinking when he was running he got elected largely on his promise he was going to be a very pro-worker president and this is a part of that >> can we switch gears >> i didn't know you felt that go ahead >> i wanted to ask you about what's been happening with airlines i know there are almost 5,000 incidents of unruly passenger reports reported already this

year that's the highest number we have ever seen there have been concerns from the airline attendants, in particular, feel they get attacked every day when they show up for work, or there is the potential of that happening. over the weekend, you made comments about sharing the no fly list, mean figure one airline has banned someone, you think all the airlines should be jointly bank them from every air airline? >> that's completely untenable it endangers not just flight attendants, they're there primarily for yoursafety but i also endangers the entire traveling public and so there can be no tolerance for that there are a lot of measures we think are making a difference, particularly encouraged to see prosecutors following up we seen some doj actions that make a big difference. the faa is acting with fines and

enhanced attention to this but to get to your question, a lot of airlines are looking at their own practice of banning certain passengers from flying again because it's totally unacceptable now ideas are on the table about maybe making those interoperable. is there a way for airlines to share information about problem passengers there obviously is a precedent in a different context with national security for no fly lists. all of these ideas deserve to be on the table i'm not favoring any one proposal the compact same things are easier said than done when you think of privacy and security concerns looked thereafter what we have known is we have reached an utterly unacceptable level of the treatment of flight crews in the air prosecutors are responding, airliness are responding if that's not enough to solve the problem, then we got to get together to see what we can do >> i called you mayor pete

>> i'll always answer to that once a pair, always a mayor. >> mr. secretary, the port of los angeles, we will talk to the executive director can off update us on the current supply chain issues you have been dealing with? have you looked out there i seen a bunch of big ships outside savannah, like 30 of them just like anchored there. is that easy >> yeah, the ports in california are getting a lot of the attention, rightly so. l.a. and long beach is 40% of it right there. you look at savannah, the a lot of other places across the u.s i have been on the ground at some of these ports. we've had a lot of virtual meetings as well will you get an update the good news is we have been able to get those 24/7, we seen improvements the dwell times the containers are sitting there it's important to recognize how many pieces are in this cheney

when you see a ship offshore in savannah or san pedro bay or anywhere else. the issue that has the ships out there. it may have to do with the availability of trucks and truckers to get the containers out of the port so there is room for this shift it may have to do with the availability of chassiss in particular, we're looking at the trucking side of things, there is an interesting post, it's leading on media.com right now, by a trucker. i still don't agree with the pessimism. it gives you a good picture of what truckers are up a against, which is why there will be new fines for shipping companies that just let them sit there all of that is to say, it's very complex. but there is good progress to be made we will continue to see that on the administration and the grond side. >> when i was a kid, i was joey, joseph, if i was in trouble, i was actually joseph.

you do have a preference what do you do, joe, joey or joseph >> you know, we're calling him gus right now. the middle name is august. >> that's not fair that is not fair so it's not joe and penelope then >> you know, we'll see what he grows into for now, it's gus. >> joseph, we call him gus. >> thank you, mr. secretary. see you later. when we come back, gus, the bp/ceo bernard looney on the quarter and push for clean energy check out oil prices this morning, "squawk box." returns right after this

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bp's the latest energy producer to report better-than-expected profits in the wake of soaring oil and gas prices, joining us to together talk more about it is bernard looney, bp's ce oh, thanks for being here >> good morning. good to see. >> you on the profit the number most people look at you did come in with better-than-expected numbers, 3.3 versus the 3.1 billion the street had been expecting. when you look at the bottom line, that was the significant hit a headline loss what you call a significant adverse fair accounting value effect. do you want to explain to us what happened? >> i'll do my best it's a simple, probably not

simple, an accounting complexity that means on natural gas crts a krls krt contracts and sales, we mark the hedge-to-mark, not the move-to-market it's required under ifrs it doesn't mean about anything of what is happening what is happening is the underlying performance, which accountants on both sides, that itself 3.3 billion dollars, that's a third quarter in a row where we've had strong results it's another beat. cash was also very strong, becky, $6 billion just for working capital, almost $8 billion of operating cash in the quarter, next deck down for the sixth quarter in a row we just announced somerset more buybacks 1.25 in a quarter so overall, i think a great set of results >> i think so, too remember you mentioned it was very strong, every metric i saw throughout the report. that's why i'm wondering why do

you think the stock is down more than 2.5%? it was down 3% earlier >> we don't try to manage the company on hour by hour, day-by-day stock yesterday was a strong day in the market for bp. so, look, we're looking over the long term. i think if you look at a stock year-to-date, you'll see the performance that is there. i think investors increasingly buying into the strategy of a company. our job, quite frankly, becky, is just to perform each and every quarter we call it transforming. it sound boring. reliable execution, predictable execution. we got the dividend on a 4% growth trajectory. we got buybacks we think we can do about a billion dollars a quarter, that's $4 billion a year if oil price is higher, that will be even greater i this i the financial frame is clear. the strategy is clear. the investor proposition is

clear. i think investors are beginning to see it's beginning to work. that's what we are hearing from them >> bernard, it's a similar story we heard from chevron and exxonmobile talking about the dividends, the additional shares there repurchased. not too many years ago, it would have been the demand for more capex going into exploration, based on the idea that oil prices have gone up too much how has that changed in terms of investor dynamics? >> i think investors are looking for predictability, discipline, i think you are seeing that particularly here in the united states if you look at the recount in u.s. shale, it was 200 prior to the pandemic today strong gas prices it's down at 100. discipline is the key. we are focused on execution. we want to take care of our balance sheet, which is why six quarters in a row the net reduction is important we want to reward our

shareholders we got a dividend over $4 billion per year we have now the potential to grow that at 4% per an nunum. this is a strong return for our valentiners. at the same time we're working on transitioning the company for the future that itself proposition. i think it's well understood now and investors like it. >> joe biden today made the announce they're going to be kicking off new methane regulations to try and toughen up their global pledge when it comes to methane leaks. a lot will focus on drilling in the united states and will this impact bp with your water wells? >> i haven't seen the specifics of what's proposed, i can tell you we have for quite some time been a proent of federal regulation of methane. i think we are one of the few

companies if not the only company out there that has committed to actual physical methane measurement at all of our oil and gas facilities, including the uvenlth we recently won an award actually from the united nations on our methane performance. so, we're all in on methane. we've cut our flaring in north america in bpx in america by over 90% in the past year or two through investments. so this is having very core to the agenda of our country remember while i haven't seen the specifics of the proposals yet, i think you will see our track record there on this subject. >> concern e bebernard, brent ce what are your projections for oil and natural gas prices to be this year? >> i think in oil, oil and gas are two different markets. i think oil we see it as constructive demand is strong, back at 100

million barrels per day. probably not yet at pre-pandemic levels, will be probably by the middle of next year. strong discipline in opec. strong financial discipline in the u.s. shale all of these things i think are constructive to oil price over the coming months and years. while we don't predict as you say, we run the business on a break even of around four feet, there is the potential for strong prices, that beats to a real cash machine so-to-speak. gas a lit more volatile. we expect prices to be more normal next year. >> thank you for your thiem. >> thank you for having me on. coming up on the other side of the break, finally the holiday shopping season, are they throwing a wrench in the the ir later senator cynthia lummis will join us with the latest

from washington. stay tuned you are watching "squawk box." on cnbc. >>

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many expect will end with a tapering of bonds. joe manchin hopes to pass a spending bill. we will speak about the state of play in washington. and can humans co-exist with artificial intelligence? regardless after your answer, get ready for it in a short time, we have an interview with former google ceo eric schmidt as the final hour of "squawk box." begins right now sn♪ >> good morning, welcome back to "squawk box. live from the nasdaq market at team's square, i'm joe kernon along with beck question quick and andrew ross sorkin it's only tuesday. i keep teel telling myself that.

u.s. equities are up after a record-setting session yesterday. dow jones industrials up about 40 nasdaq down 27 or so the s&p is up, i don't know if we've mentioned bitcoin, 63,000. it has held well, gotten down to the handle a few times, over the weekend, it didn't happen, 63 and change this morning. treasury yields for their part with the much awaited. you got to be cross eyed i hear it so often now about all these eyes being everywhere. i got to be on virginia. all eyes on virginia all eyes on the fed. they're not. if you ever say that >> and a potato, they have lots of eyes. >> that's true or maybe a fly that's got auto those, they only have two, they can look bizarre, remember jeff goldblum >> i do, the fly

pfizer shares are higher in pre-market trading, the company reported better-than-expected profit and revenue for the third quarter. pfizer issued a stronger full-year forecast, that's not just the covid-19 vaccine and the non-covid treatments, that stock up 2.8%. done miss an interview with the ceo of pfizer coming up later, right now it will be on the exchange later today >> meantime, let's get to the top stories of the morning, dom chu is tracking the hottest pre-market movers, they are about to meet for the pfizer shot for kids,phil le beau is watching the shares of tesla after that tweet from elon musk after that partnership with hertz may not be all that it's said to be just yet. >> it's a mix and deal news as well f. you look at the pre-market trade we got under armour coming out with shares higher roughly 9% at this

teenage. under armour comes out with better than expected profits and better-than-expected revenues and boosted the full year revenue growth forecast from prior levels it saw growth across all of its sectors. online sales pooftd decprofiteda decline as people go back to stores more. watch under armour up 10%. the deal slash is with regard to dupont front dupont up 1% rogers is up 30% dupont comes out with an earnings mix somewhat mixed. it cut its number-year forecast due, in part to ripple effects from the global supply chain affecting its customers' buying habits secondly, it announces a deal to buy a secondary materials maker in rogers. rogers specializes in making

infrastructure, 5g, electric vehicles dupont trying to get a seat at the table in the future with 5g, wireless infrastructure and electric vehicles. so a couple stocks to watch there. as we do in this hour, ticker searches on our website from the last full trading session the top ten hasn't changed much. ten year yields are near the top of the list. tesla down 7%. apple down a quarter of 1% lucid group and digital world acquisition down 1%. the rest of the top 50 are on my twitter feed at the domino now sending it over to meg tirrell. >> dom, thanks so much this is one of the last steps that needs to happen before kids ages five-to-11 can get their first covid-19 vaccine the outside advisers start this meeting at 11:00 a.m

they will meet until 5:00. there will be presentations from pfizer, itself, also the cdc looking at the epidemiology of the virus in kids, the efficacy of how they will track the vaccine. they'll have a big discussion. they're expected to vote on whether to recommend this vaccine for this age group around 4:15 p.m. today eastern time then after that, the cdc director is expected to weigh in, probably set the recommendation that is the last thing that needs to happen before kids can start getting their vaccines we know the pediatricians offices and places received the vaccine. which is a different dose, a different violation a different setup. they are getting ready we could potentially see the first kids getting vaccinated tomorrow joe. >> we can guess at that point we will start throwing percentages again. who does it? where are we now on total u.s. population for having it by at least one shot we still have work to do there,

right, meg we have to do the count on kids, which i'm not sure, some people will be very anxious other people probably will be hesitant just like the general population more so or less so with kids >> yeah. twroem, it's interesting, joe, the numbers that we see right now in terms of parents planning to get their kids vaccinated 30% say absolutely not, no, 30% say absolutely, let's do it. we will see a lot of demand from parents getting appointments or seeking appointments no their kids, there is a lot of folks in the middle 36% say they will wait and see an interesting thing public health experts say they are similar to what we saw initially for adults last year and we've seen that number, of course, steadily pick up over time we'll see how that works there are about 60 million people eligible and haven't gotten vaccinated yet. that's something the

administration is focused on. >> where are we, meg i know that football stadiums are outside, baseball stadiums are outside. you don't see a lot of masks i see people inside. are the numbers dim declining? are we over the hump is that what you think at this point whether it's herd or at a certain level, there is not a new variant, behind us yet >> yeah. if you look at the trajectory of case numbers nationally. they absolutely have been coming down from the peak the decline is not as fast as it had been maybe that's the numbers there is a little concern from fom some folks who recognize respiratory viruses get worse in cold weather, there is a lot of hope this is the last surge, dr. gottlieb thinks it likely is what the winter brings is

uncertain. so a lot of fingers crossed. we are sort of in the last gap here in the pandemic we'll have to see. >> now i'm thinking shingles i was never worried. now i'm scared about shingles. you heard about that everyone is saying you got to get this thing because if you don't, if you get shingles, you will wish not that you have the vaccine, that you are dead, that's how bad they r. anyone that had chicken pox, are you not a shingles expert. >> anybody who has had chicken pox has it circulating in your system they recommend it for people over age 50. >> what about flu? i may get a vaccine dujour >> i think you have to wait a week between vaccines, don't double them up >> they had me on twice, viewer nightmare. thanks, meg. now i feel like something is crawling i'm going to talk myself into

it. >> what's the first sign >> for shing hims? first at what? >> of shippingles. >> work with us, andrew, follow along with us. never mind. >> i can tell you by the way, and i am not a doctor, you can take the flu shot and the booster. >> you can't take the shingles shot at the same time. >> you may not. >> definitely can't. >> meantime, to tesla. let's talk about shares, last night elon musk tapping the brakes a little bit on the company's new agreement with car rental hertz what's going on? >> andrew, remember, over the last week, i think it was the beginning of last week is when mark fields announced, he's the interim at hertz, they have a deal with tesla to buy 100,000 model 3s that news, along with other news, you saw tesla shares explode. it's up something like 30% within the last week-and-a-half,

a ridiculous surge in shares of tesla. last night on twitter as many people do, somebody asked elon musk about the stock price and this acceleration relative to the news coming out last week. he said if any of this, meaning the stock price acceleration is based on hertz, i'd like to emphasize no contract has signed yet, tesla has for more demand than production, therefore we will sell it for the same margin as consumers, it has zero effect on our economics let's be clear here. a little background when it comes to the vehicles they buy from auto manufacturers, you often hear people say, lead sales are ugly sales there is a reason why, because the auto makers are selling fleet versions of vehicles, typically base models. maybe a few extra added onto the vehicle. they're selling them in large

numbers with a bit of a discount it's not good for margins of auto makers, this is one reason, have you investors in tesla saying, well what did you do with these 100,000 vehicles you agreed to sell at hert are you selling them at a discount elon musk said, no, we are not giving hertz a discount so the wrinkle is him saying, hey, look, this deem has not been finalized yet. if you want to know my thoughts, they probably have an agreement in principles. people have reacted by saying, well, is there a huge discount on the price of the model 3? that prompted elon musk to come out and say, we haven't finalized this deal, we want to make sure it's not bad for the margins at tesla >> one of the reasons tesla investors are excited about this, beyond this margin issue is the investment in infrastructure hertz would have to make and the lock-in effect,

i think that could ultimately create is that a real lock-in effect? there is a lot of investor who's say that would be the case, increasingly, at least my understanding is a lot of these electric networks will be able to be integrated into all sorts of cars? >> that is the expectation so we're headed in that direction as part of this agreement when we talked to mark fields last week, he said, we will make sure people renting a tesla have availability or access to supercharger network from tesla and we're also going to be adding charging stations at the rental facilitys and where possible into other locations so, they are at least initially going to do whatever they can to make sure if you rent at tesla, you will have places to charge it up and that are you not just sitting there saying, well, great, i got a model 3 now, where am i going to charge it over time, the expectation is you will be able to charge a

tesla at other sites and other vehicles it will not be one of these where you were locked in exclusively only in that ecosystem. >> okay. phil le beau thanks. becky. >> thanks, andrew. when we come back, we have three big interviews first of all, we will ask the executive director for the port of los angeles, whether there is an end in site to the container pileup wyoming senator cynthia lummis reacts on the climate changes and eric schmidt will tarsh in on the companies on the mevee. stay tuned much more "squawk" still to come ♪

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. welcome back, everybody, the heart of the holiday season is fast approaching yet, there are still dozens of containerships waiting at anchor in los angeles the ports of los angeles and long beach will start finding ocean carriers the middle of this month for car go containers left too long at the terminals it's a part of the problem from for why things are not opened

more quickly the port of los angeles executive director, gene, let's talk about this. a part of the problem is these containers have been sitting too long, that gums up the works what's happening >> that's right. we got 47% of all imports, nearly half sitting on the docks in los angeles for more than nine days. and in some cases, we're already seeing major commerce and liner companies say, okay, we don't feed those right now let's move them to the side and focus on the parts for factories and the goods that need to get to market for the holidays, move them through quickly. >> these are empty containers sitting there? >> no, these are full imports. we got 86,000 on the docks, some 40,000 sitting over that nine-day segment i identified. that's what we have to get over to loosen up the terminals and move the other products out. >> what's the hangup

you can't get drives to show up directly to the railroads or the stores >> there is not just one issue here, but for many of these containers, they're just not needed the contents is a little too late to go to mark or its early. >> snags a halloween costume sit eight among them >> there may have been halloween records a month for sales, it's about segmenting the cargoes, making sure what needs to go now and move it. if there is other cargo not immediately immediately, there is no shame, move it to the side so we can focus on those that have to get to market. >> except for anybody leaving it there more than nine days or four days for the railroad will be fined $100 per day. >> six days if it's on rail, becky. we've tried diplomacy, collaborations, operations, meetings all around, nothing's

moved the needle just yet. this is a last resort. one i didn't have to take. but we're starting to see movement, folks are coming to the table with these daily and twice daily video meetings to try to figure out what their plans are, liners, shippers, importers, how we will move this cargo away and get the others moving forward >> who would have to pay the fee, the shipping company or the importer >> the fee is filed in our los angeles city code to go to the liner shipping company we've asked them to work closely with us. we got 73 ships at anchor as of last fight we got to get these ships in and working. productivity at the port as i reported to you before continues to be at all time highs. it's getting this product off the dock that is so imperative we've tried almost every angle possible now this one has gotten some folks thinking a little bit more than they have in the recent weeks and months.

>> so gain, when you say 73 ships awaiting every time we've spoken with you over the last several months, i remember when it was 40 ships out there. now you have 73 even with these additional measures and people bucking up, it's beginning to be more of a backlog? it is. here's an interesting stat, 23 ships are raeg regular callers 10,000 container units and above. those are the work horse, the balance 50 ships are smaller, 10,000 tcu size and represent many of the ten newcomers to the trade this year, plus at least a half a dozen retailers that have decided to charter ships to bring them in. many of these folks did not have reservations at the ports of long beach or los angeles even after they loaded cargo and the vessel began its journey across the pacific. a lot of those folks are waiting for vessel space that had been

normally taken up by our regular callers. >> so all of these retailers, like the home depots, the targets, the walmarts, who have gone and gotten their own ships have these things coming in, think they're getting a product. they never had a reservation at the port so they are put back of the line >> in many cases, they're calling to make those reservations with our private sector marine terminal operators. very unique, loading containers up, trying to meet factory requirements and get going but part and an integral piece of this entire supply chain is making sure you have a windows-based arrival. an appointment at the port to bring your vessel in, have long shore labor ready to go. and with the adishlg number of new calmers we've had over the last several months, this is something that's been very interesting to watch we try to hustle these folks in, wherever we have a gap in time

which is few and far between, to get those vessels worked as well if they make up 50 ships they tend to be relatively smaller in size. >> is that a relative way of doing things, because they're smaller? >> it's a less efficient way if you come across the pacific and don't have a place to call home, with smaller vessels inside, if we have that window of opportunity, those ships can be worked dwikly remember -- >> is it fair to be a concern that many of those retailers that thought they would fill the store shelves will not by this holiday season >> we have not had, becky, i shared, a lot of these were savvy. they saw the lead times expanding, pull their inventories forward. we ban the to see christmas goods back in the latter half of june normally that takes place late august, early september. so i think we have a chance as

an industry to push product out, have it in place for the holidays as we told shoppers before, go online early, go to your store and see what you need to do to make sure your friends and family have gifts for the holidays. >> thanks for update >> thank you, becky. all right. so, becky, i was going to get -- i asked for a tease shot. >> between me and you? >> yes >> guess what the answer is? >> no. >> we've changed, thank god. it used to be fun. coming up, a can't-miss interview with the senator of wyoming cynthia lummis much more, don't go anywhere "squawk box." will be right back ♪ dream, dream that's the thing to do ♪

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welcome back to "squawk box. this morning, president biden making a number of announcements to the cop-20 summit diana oleg joins us. >> reporter: day two appears to be about real action president biden just announced a decades-long effort to conserve forests and other coastal ecosystems that serve as critical carbon zincs. the plan dedicates up to $9 billion by 2030, subject to

congressional approval, of course then a major announcement-of-on methane emissions. the epa will propose strengthening new oil and gas facilities which are responsible for 30% of methane emissions and will require states to reduce methane emissions from existing sources. that's an estimated 300,000 oil and gas well sites the proposes requirements would reduce about 75% according to administration officials now the u.s. is working in partnership with the eu to lead a global methane message to reduce overall emissions below 2020 levels. 90 countries have signed on so far. president biden will announce private sector demand to speed clean energy technology and innovation it has 25 founding members, including apple, a buyers club across a wide range of industries with hundreds of

billions in purchasing power andrew, a lot on the plate today. >> a lot on the plate. we will be coming back throughout the day diana oleg thank you. joe. coming up, former google ceo eric schmidt joins us for a wide-ranging conversation, ai and ambition next, we will speak with wyoming senator cynthia lummis on d.c. spending and all things crypto she's kind of a crypto fan in washington or congress, stay tuned. are you watching "squawk box." on cnbc live from the nasdaq markets in time's square

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infrastructure pitch then the other bill the 1.1 and three-quarter build back better plan the latest, though, west virginia democratic senator joe manchin demanding more time, just as his party was hoping to pass it. i don't know, we'll see, joining us with a view from the other side of the aisle senator cynthia lummis of wyoming, the chair of the until caucus. i guess at the time i didn't hear the irony in that where transportation secretary buttigieg said, i don't see anything about the momentum changing i don't think that's a good thing. that would mean that we'd still be stalled, wasn't it? i guess he's assuming thinking the positive in saying the momentum has been going, but the way i could interpret it, this

has been embarrassing for speaker pelosi and i think for president biden to some extent to say we have a framework, when i don't really know whether he had everyone on board, do you think your colleague senator man c manchin is still negotiating >> i hope he is negotiating and thinks the package is too big. i hope he is evaluating what's in it. we haven't had a chance as the minority party in both houses to see what's in it and we're looking forward to understanding it better. >> yes >> you think, i mane, when you hear it's not linked you hear it is linked, defacto it's linked? the two are linked, are they not? >> i parapparently they are in e mind of the caucus in the house. the democrats seem to be pushing back on what they consider that

small price tag, senator manchin early on said it was 1 trillion 500 billion. think about that as a top line trillions. we're talking trillions of dollars. this is money that we don't have that beer going to have to borrow from ours was inflation is winning at full speed. it is going nowhere. it's not transient it's here to stay. the way that can be tamped down is for the federal reserve to raise interest rates, not buy quantitative easing. all of those things work against their big price tag. so thank goodness joe manchin is looking at it more realistically than others in his caucus. >> i just know there are people, i love the current cadre of fact checkers, non-partisan fact

checkers they would say it is paid for, senator, it's going to be deficit neutral because it's paid for then if you look at the fine print, it's not 1 and three-quarter trademark. it's probably according to some because they're putting two year lapses on most of the proms that will not lapse so it's really 3.5 trillion. if you only cover 1 and three-quarters and it costs 4 trillion, it will be deficit spending i think the fact checkers at the washington post would tell me it is paid for. >> the gimmicks in the bill as we understand it would have some programs funded for one year of the ten-year window. some three or four years of the ten-year window. those are all budget gimmicks designed specifically to hide the actual cost of the bill and to have a tax component of the bill that would cover only those

short-term commitments to certain programs so this is washington at its worse, budget gimmicks at their best. >> let's go on and talk about the possibility of legislation for stable coins that would be tough to get through. you think it's good legislation if it's just the big banks that are regulated and able to do this i don't think, you think that's would dampen innovation from other players and just -- yeah, go ahead >> i do. i think that would dampen innovation if only fdic insured banks can participate, then we won't have the kind of innovation in the space of stable coins that we otherwise would, community banks should be able participate and institutions that can fully back

their stable points. that's going to be the key not whether they are currently a bank that is insured by the fdic or another institution, but whether they have adequate reserves to back all of the stable coins that they issue so i think that the recommendation are a little high handed and i'm working on legislation that you will probably see before the end of this calendar year that would allow for a little more flexibility, but fully backed stable coins >> when you look at, we got a screen up, you probably can't see. we have bitcoin, ether another, two of those are worth 80 billion i know you probably think bitcoin is here to stay. do you think all of these different crypta assets are real

and here to stay or is there some to be concerned with? and do we need oversight so that people aren't left holding the bag for some of these things whether they do or not i'm fraught predicting one way or another >> i do think bitcoin is here to stay i think a lot of the others are not. the fact that bitcoin is fully decentralized and some of the others were issued by a person or entity that kept a large block of the coin for themselves and then issued others to participate means they look more leak a security than a commodity. bitcoin is clearly a commodity it is digital gold so i do think that having a regulatory frame within which this can exist and innovate, meaning this entire space of digital assets, but that protects consumers at the same time is extremely valuable and

that's why we in the financial innovation caucus are eastern's we speak putting together and revealing the legislation we have crafted to address these and other issues bitcoin is the standard. but everything else has to be monitored differently because they are branded differently. >> senator lummis, i said lummis but it's a couple days after halloween, i'm still thinking dr. lull ms. i apologize for that, senior lummis thank you for comingon the program today. >> my pleasure, thank you. becky the killer in the first screen i just found out. >> you say lummis. there is only one lummis i think of carole lummis. >> yeah.

wow, i think of the late great donald pleasant. that's just me when we come back, another interview you don't want to miss we are live with google ceo eric schmidt. we will talk about the age of ai we will talk about the possibility of more tech regulation after that devastating series of news reports on facebook. stay tuned are yowahiu tcng "squawk box." and this is cnbc

. welcome back to "squawk box." this morning i want to get back to our next biggest. he is out with a few book on reality. given the recent one of facebook's use of ai and intended and unintended consequences first on cnbc former google chairman and ceo eric schmidt. owe author of the age of ai and our human future

good morning to you, eric. congratulations on the book. i have to admit, i'm confused because i've read the book i can't tell in the end, i know you are an optimist. but i can't tell if you really love this technology and think it's going to change our world for the better for if there is an underlying anxiety throughout the book of what is really happening here >> of course, the truth is both. if you take a look at what ai is doing, the transformation in science, biology, sociology, the way we deal with information is extraordinary. but what happened 20 years ago is when i was working on this, we did not understand the implications in the technology industry of what this would do to society so the book is about what ai will do to society most of which is good, but some of which is very worrisome >> so if you can actually, let me ask it this way again, if you can go book in time 20 years ago, now we're talking social

media, the way the internet exists today what do you think you would have done differently >> well the key thing we now understand is ai systems optimize against specific octoberive function. literally, they go for whatever you train them at, for, if you will if you look at what's going on, for example, in social media, they're trying to maximize revenue. the best way is to have more engagement, that is more usage, the more usage you get with more outrage, therefore, you get more outrage. the ai that we foresee will be much, much more powerful than what we are seeing right now so we will have a lot of this, we will have a lot of people being manipulated in one way or another, that's not good >> how do we prevent that? >> well, it starts with trying to figure out what the real problem is the real problem is these systems will spend more and more time affecting the way our world looks to us. these systems are dynamic. they cannot explain themselves they are emergent in the sense

they're behaviors we don't expect and they are still learning and the book is about what happens when humans interact with that kind of intelligence what we say in the book is that this new generation of ai over the next decade or two is going to be an ethical change in human experience, because we've never had another intelligence that's human like we'll be working with it we will get mad at it. worried about it it will change things, it will change the way a child grows up, the way we do military strategy, how do we do defenses? how do we do war at the speed of millie seconds these are questions no one is asking we hope we had written the first book that will start a whole generation of people thinking of how to solve these problems? >> do we have a global body? i don't want to use regulation to oversee this, because you and i have often talked about the u.s. and china and i know there is a great fight going on over

who is going to win that ai battle, but their approach to this i imagine will be different than ours, for example >> okay, they've established a goal of being dominant in ai in 2030 since ai will be the basis of pretty much every industry you talk about on "squawk box. it's important that american firms in the best be the leaders in economic, structural and scientific leaders in the space. can you imagine if all the companies that you talked about were, in fact, chinese and not american-made? that's the stuff we're talking about the power of technology. we spent time talking about network platforms. one of the core things we believe, it's important that global network platforms affect american values, western values, not chinese values so we're in a competition. the interesting thing is that there is no skugs discussion about the rules should be, there is no diplomacy of what happens with cyber war, there is no

diplomacy with what happens with controversy that could be stabilizing. we go on and on about the societal implications people have not thought about in our book which is why i'm so excited about it >> eic are on the screen, we have aist will of what used to be the fang stocks i saw in the column over the weekend which is great you've renamed it is mang stocks we have met that platforms. i raise it because you talk about building platformles i'm curious who you think controls all of this, in the end, whether they're a bunch of companies that do it separately or if it's going to be integrated in a way that it isn't today? >> well, the genius of the american system is have you the government helping with early funding, venture capital making these companies possible, enormous capital available these are multi-trillion dollar corporations, which is incredible and they're going to continue to grow they're not going to get combined into one company or

anything like that it will be difficult to regulate them because they're so complicated in the way that they work we've got to come so some agreements on, for example, ai-enabled war, what does it mean for misinformation? one of the things we didn't understand ten years ago was that governments would use the ai to interact with elections, that they could target individuals and used for misinformation >> here's the complicated part the complicated part is a lot of tech executives, mark zuckerberg and others, say, please regulate us we shouldn't be doing this on our own, when it comes to the tax it debate, people say please come tax me, the second we have to texas them, it gets complicated quickly. how do you do it

>> well have you the problem when a company asks for regulatory capture, the corporation can co-exist this field is so new what we call for in the book is a renaissance of thinking about this we have philosophers and talking to the people who understand human psychology these systems will change the way we live. imagine, for example, a baby growing up who finds their best friend is not a human. it's a computer. how do you feel about that how do you feel about the shaping of that young mind that's an experiment we've never done we're going to have to come up with mechanisms and collective agreement on how that should behave the general answer is competition. the problem is these systems can compete in ways that will optimize specific objectives we want people to be happy or mostly happy we don't want them to optimize around a specific thing, which is what is happening again,

which is engagement. >> we mentioned meta before. i'm very curious on the rebranding of meta given that you've lived through rebranding and the organization in this case, google to alphabet. >> it's funny. when you spend your time talking about a company talking about the founders and organization instead of the products, that's always a loss, right i look forward to excellent innovation in the metaverse. i've been waiting for about 30 years. it's a very good idea. it's essentially a virtual w world, we will have it it's interesting that meta means more comprehensive and transcendent, and so facebook will have to be more comprehensive and transcendent at what it does. if they pull it off, you can

imagine virtual worlds that you'll live in and that the world you live in will be -- you'll be younger and more p powerful and stronger and you'll have greater fun and all that kind of stuff. i wonder what happens when the metaverse is so powerful you choose to lever in the metaverse and not the real world that's another question in our book if you're a regulator hearing about the metaverse for the first time, does this make you more inclined to think, okay, we've got to regulate these companies or less inclined is this a shift here >> i don't think the conversation about regulation in metaverse is at the right time people keep writing laws to regulate killer robots we're not building killer robots we're building systems that everyone will co-exist with, which in some sense are much more powerful, much more dangerous, presumably with you every day. we'll have to figure it out. i don't know i don't think regulators have the rate formulation to even

know how to discuss this. >> eric schmidt, the book is called "age of a.i. and the human future." good luck with it. >> thank you. >> look forward to seeing you in person soon. let's get down to the new york stock exchange. jim cramer joins us right now. today i'd like to point toward washington because a couple of things happening with manchin saying he's not going to support the bills there any time soon. the human infrastructure bill slows things down. the infrastructure bill has been baked into the market. i wonder what your thoughts are on that. the other big washington story, what happens with the nomination for fed chair? is that going to be jay powell again. >> i think they're so far behind they'll go with jay. they don't have anybody else i think jay's done a great job we have people in the steel

business, construction business, people buying caterpillar after an okay quarter. i know this from my childhood trust. a lot of this is kind of like throwing a curveball but the ones that are really upset are the ones that the secretary talked about last night on "mad money. we need e.v. subsidies more importantly, we've got $52 billion, $53 billion that we have to be able to build foundries in order to take it to 75% of the auto business that's based in taiwan that comes back onshore. i think the semi-conductor e.v., it's so important for what we do semi-conductors are everywhere becky, i don't know. senator manchin, i think he's just so powerful, we're kind of taken aback. >> is this enough to change bets in the stockmarket right now, or is there still the assumption that some sort of infrastructure

bill is going to get passed sooner than later? >> i think there's still that assumption, but i think senator manchin is the -- this is like the old days in the '60s and '50s he's the power broker and has to be catered to. if he's not, i don't think anything gets done or gets pushed back. the economy -- i question whether the economy necessarily needs it there are individual parts that definitely need it a semi-conductor which we know is at the heart of the u.s. economy has to be brought onshore. we can't be relying on taiwan. the secretary made it very clear we have to somehow make it so taiwan is the most important calm in the u.s. kmichlt's just not safe enough. >> here's the question if manchin is the power broker right now and he needs to be appeased, is there anything that can apiece him that's not going to send a progressive in the house to say, forget it, we're not going to go for this.

>> if he goes for republican, there's some i mean he has that i wouldn't be surprised. i think he's probably at every given moment why is he democrat. i think that that's the existential question of the democratic party, just one man. >> jim, we're going to see you in just a few minutes. it's a question that we're all going to be pondering. it gives us a lot more to think about. thank you. we'll see you in a few. we want to remind you about the new cnbc investing group you can find out more at cnbc.com/investingclub, or we've made it easy for you point your phone right on the screen to the q.r. code. it will take you right there "squawk box" will be right back.

final check on the markets dow is up 52, nasdaq is down we should point out bitcoin, over 63,000. 1.56 on the ten-year so we've got fed, the meeting, and it's election day in several important -- well, all our

states are important, all 57 of them i know there are only 50 i know in new jersey and particularly in virginia, we will know r, according to frank luntz, in a matter of hours, not days, in the closely watched fwu gubernatorial race "squawk on the street" is next good tuesday morning welcome to "squawk on the street." we're at the new york stock exchange futures are mixed as we blend industrial and consumer earnings today. i got raised guidance. two-day fed meeting begins, of course, and some relief in commodities at the front end of the curve. investors are a bi