taking flight a major test for the airlines this week as passenger levels are expected to come close to pre-pandemic levels it's monday, november 22, 2021 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 this morning on this monday morning we'll look at u.s. equity futures right now some green ar-rows across the board, dow indicated up 140, subp&p up by 16 and theo up by 144. friday the dow was down by 270 point, the worst market we've

seen for the dow since back to october 4th. if it tells you anything, only a decline of 0.5% and the dow is only 2.6% off the all time high indicated up by about 145 points this morning s&p was down slightly on friday, down by 7 points it's only 0.4% from its high and the nasdaq set a new record on friday, this morning indicated up another 62 points treasury yields, lookslike the ten year right now is yielding 1.584% and looking at the squawk stack this morning to get i up to date with the last week russell 2000 the worst week since july, concerns about the covid variant, things out there. the dollar had the best week since august wti, different story, worst day since july and worst week since back to august that was part of the pressure, energy stocks were down. exxon mobile was the biggest decliner when it came to the s&p

500. and the dow transports which we've been keeping an eye on, down 1.5% for the week, two weeks in a row it's down, and in correction territory down 9.5% check out these stats from be spoke investment group since 1945 the s&p averaged a gain of .6% the entire holiday week the best returns on wednesday and black friday with the only decline on monday. if you look more recently, gains have shifted to monday with small declines on tuesday and gains on wednesday and friday. president biden is expected to announce whether he will renominate chair jay powell for a second term at the helm of the central bank he's scheduled to deliver remarks about the economy tomorrow that may be something to pay attention to

according to "the washington post" the president made comments highly kplcomplimentarf powell last week the other person in the running, lael brainard. >> what do you think is happening with this? >> i think he would like lael brainard if he could and he'll take powell if he has to don't you think? >> yeah. you need every democratic vote to put lael brainard there because you're not going to get republicans to vote for her. you have senator tester speaking out how he is in favor of powell you heard joe manchin saying things like that if they don't have all 50 votes they can't do it and it's a split between the progressives and the moderates but the moderates seem like they have the upper hand because you're not going to get help from the other side of the aisle. >> i figure it would be powell in my eyes it's the first time he said no to the far left

if he doesn't have the -- you know, the people around him and the president himself decide to pick lael brainard, it would be in keeping with everything that we've seen so far. it would be -- i think -- i would be very cynical about it if he did pick her. >> there was new things i heard floated this morning that janet yellen would like to see continuity there as well. >> with powell. >> i don't know if that's powell she wants indicated there. if you were reading the tea leaves last week based on the trial balloons they were sending up and reading it this week, i would say it's shifted to powell last week it sounded like lael brainard but if they don't have the votes, they don't have the votes. >> but purely us versus them, you put a democrat in. you have a chance to put a democrat in, you put a democrat in maybe he won't but i would -- >> you know what, though, i don't know -- >> it would be gratifying if he didn't >> i know the political piece of

it, joe. but i don't think it's just that >> you eve've seen a lot of uni since the inauguration speech. >> i'm not making this a political argument >> it's all politics. >> i think he wants a woman in the role -- you can call this woke washing or wokeness or what you want to describe it as i don't know if it's just a -- to the extent he's looking at anybody but powell, i don't know if it's simply a political argument, i think they're trying to settle for a lot of things right now. i'm not saying the right things -- >> nothing to do with bernie. >> -- relative to the other issues -- >> nothing to do with elizabeth warren or bernie sanders -- >> clearly >> yes, because -- >> -- or people in that party pulling -- >> it's all tied up -- they have all these things colliding at the same time when they're f trying to pass the second bill

to get through, i don't know how much trillion, 1.75 trillion or 2 trillion -- >> or 4 or 4.6 according to "the washington post. >> that's why this has become such an issue. when you have senator warren and a couple of the other progressives who said they don't want him there, how many times do you need to -- it's the horse trading that takes place when you're trying to do this, biden knows that he lived in the senate grew up there. that's why it's gotten so complicated. if you don't have all 50 votes you can't do this. >> it's a transformative bill, it's a lot of money. people said how big it is. and it's a legacy issue for nancy pelosi, passed with zero republicans, one defection and in the senate we'll see what survives in it a a lot of immigration issues that manchin has sad he doesn't want in. >> s.a.l.t. may not survive.

>> yes but in the big states where s.a.l.t. is a problem, the rich people there are democrats >> don't forget, if you don't do anything the s.a.l.t. cap goes away in 2026 anyway. so they're fighting over what happens over the next three years and probably do something and cap it in 2026 if they don't reach agreement it goes away in 2026. >> the chinese now have a hyper sonic -- it's something that's able -- first time it's ever been done going five times the speed of sound and be able to fire a missile accurately. we're screwed. >> and you have russia on the border. >> huh >> you have russia putting troops on the border. >> that's a separate issue. >> right s.a.l.t. remember it used to mean so we wouldn't be vaporized in a nuclearo oblivion. now it has to do with state and

local -- we have to get back to the real s.a.l.t. or the bloomberg, salt in the diet. times were simple back then. >> going back to simpler times and talking corporate news there's a bunch of headline this is morning one being authentic brands group delaying plans to go public. the company with a portfolio that includes barny's new york, they are selling stakes right now, the deal valuing the group at nearly $13 billion, black rock is going to remain the largest shareholder in the company after filing for its i.p.o. over the summer, authentic brands group said it will hold off on plans to go public until 2023 or 2024. the acquisition of rebok expected to close in the first

part of 2023 >> that is a mismatch of -- a big mismatch of brands i forget about barney's new york. >> they collected up so many things over the years. the real question is what can you do with all of that? how much of those brands can you turn back the clock and effectively turn them back into what they used to be. >> well known brands but all over the map anyway, other deal news, ericsson is buying vonage for $6.2 billion vonage has more than 120,000 customers and more than a million registered developers around the world vonage is up by just over 26% and while re-ericsson is down at 4% and monster beverage, as of friday, had a market cap of

$47.3 billion, the market cap of constellation brands is 44.2 billion, coca-cola is a shareholder in monster beverage. >> let's talk about activision because the ceo considering stepping down, but i want to put nuance around this because of the language "the washington journal" saying he told senior managers he would consider leaving if, this is important, if he can't fix the issues plaguing the video game giant. the journal adding that he has stopped short of saying he would step down. that's why i want to be careful with the headline but left the possibility open if misconduct issues across the company weren't fixed with, quote, speed. he faced calls to resign over how he and the company handled allegations of sexual misconduct and other problems the board thus far continues to

support him. we'll keep our eyes on this story. i don't know, becky, did you read this piece? >> i did. >> it felt to me that they were pushing on a string a little bit. >> it felt to me like the subheadline contradicted the headline the headline was ceo tells colleagues he would consider leaving if he can't fix problems the subheadline said he stopped short of saying he would step down. >> i don't believe he wants to step down, is seeking to step do you know down, i think the question is whether pressure from the board is going to make this more complicated. but that's just a little armchair analysis from the outside. >> i believe that's a -- i couldn't believe monster was worth that much. i can't believe activision has grown to almost $50 billion. we watched that get assembled piece by piece. >> it's down about 16% over the last couple of weeks.

>> i thought sure the monster deal would have been a -- i wondered calling it a merger instead of an acquisition. similar market cap to constellation. that's amazing i don't think i ever had one. >> i haven't. >> do you drink those? >> there's a lot of calories in this one. >> we used to talk about this company as a company taken over by coca-cola back in the day. >> it should have. >> this company constantly -- >> probably should have, i guess. coming up the economic and political costs of president biden's build back better bill spending plan. first as we head to break, check out this morning's view of the capital -- no check out the biggest premarket movers, the gainers. all up 1.5, 2% stay tuned you're watching skb live from the nasdaq market site in times square.

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look, if your wireless carrier was a guy, you'd leave him tomorrow. not very flexible. not great at saving. you deserve better—xfinity mobile. now, they have unlimited for just $30 a month. $30. and they're number 1 in customer satisfaction. his number? delete it. i'm deleting it. so break free from the big three. xfinity internet customers take the savings challenge at xfinitymobile.com/mysavings. or visit an xfinity store to learn how our switch squad makes it easy to switch and save hundreds. welcome back to "squawk box" this morning now the president's social spending bill has passed the house the senate is picking up the debate after recess on the continued concern over the cost of that proposal joining us to debate it is sharon herrick and

russell boyd thank you both for being here. sharon i want to start with you. what's the true of this do you think? let's try to have as honest a conversation as we can the administration thinks it's costless, the cbo doesn't agree. >> cbo has said that the bill is very nearly paid for under their scoring mechanisms over the next ten years. there is a debate over the tax gap, the difference between taxes owed and actually paid, come down as a result of increased enforcement. the difference is small and under cbo scoring the bill is paid for over probably 11 years. under treasury scoring the bill is paid for over 10 years. and even under cbo scoring the difference is a minuscule .1% of

gdp. so well within the margin of error of scoring so we can debate these finer points of scoring or we can talk about the really important provisions in the bill and what those provisions will do for the american people. >> russ, i believe that you think not only is this not free, but this is going to cost trillions? >> i do. this is going to be a $5 trillion bill those on the outside who have looked at this that are not governed by the requirements of what cbo has to do, which is to look at the four corners of the legislation say this is between 4.6 and $5 trillion. look, the reason why this looks artificially low right now is because there are sunsets in the bill as if these policies are going to go away in one, three years. this bill increases the deficit in the first five years but upwards of $800 billion and an expectation the political class is going to sunset these new

entitlements and new government expansions and we know that never happens. >> sharon, what do you make of the idea this is a trojan horse. sure maybe your math looks right at the outset here but it won't look right if you continue some of these programs after three or four years >> let's be really clear what the bill does. it makes a set of investments and the policy makers with the bill have a set of offsets they committed to paying the bill there are things that sunset, the lion's share of tax cuts in the 2017 tax law also sunset but there was no attempt to pay for that bill. this bill policy makers did pay for it when those programs expire, policy makers will have a choice, are those policies working for the american people, what are their costs, their benefits, should they be continued and should they be offset but what this bill does is say,

here's a set of investments, a set of ways to pay for them, some of them are temporary and when they expire, come up for expiration, the question will be do policy makers and the public think they're worthy of being extended, the same policy makers that demanded these programs be offset this time can decide to offset them next time. and, in fact, there are an enormous number of offsets readily available. a lot of revenues were left on the table in this package and there is every opportunity to pay for their extensions i will just note that people that are saying oh my gosh, things are sunsetting are often the same people that supported the 2001 tax cuts and the 2017 tax cuts that expired all of the tax provisions or nearly all of the tax cuts in the case of 2017 for households so i guess one question -- >> let me get russ back in here. i'm never a believer in two

wrongs make a right, but there is a point, democrats make it regularly. you may not like our program but the republicans were willing to un over spend overhere. >> the dishonesty of sunsetting something after one year and much closer to the ten year window needs to be taken to account. but i don't disagree with the information to that we believe on the basis of the left versus the right, we believe there's a fundamental difference between policies oriented towards creating economic growth that causes all tides to rise versus individual spending programs that create a drain on the economy and we treat those things fundamentally different >> why do you believe this is a drain on the economy and then i want sharon to respond >> right because you're creating new government programs that are going to have a life of their own, a political and economic winners that are created they're going to come back each and every year to demand they are paid for

we had previous to pandemics we had structural deficits, $1 trillion as far as the eye could see. so this is on top of that. we're now facing very high inflation, potentially 7% by the end of the year. this is going to be into the next year. in the midst of that debate we're creating new entitlements. >> are there investments in this program that you support >> no. >> does pre-k do anything for you? do you say that may be better for the country? do any of the health care or medicare programs do anything for you or any of the climate elements is there any piece you say, that actually long-term might be the right investment for the country? >> no. the question presupposes that we don't have a massive government as it is there is a sizable social safety net right now and we are already providing a very, very healthy amount of support to individuals to get them on their feet and what's needed is an economy that gets them back to work

>> sharon, final word, 30 seconds? >> so look, what he's basically saying is when we do tax cuts for high income people that's great for the economy and we help people face everyday challenges like unaffordable child care, not being able to pay for college, that is somehow bad for the economy. if we want an inclusive economy that works for everyone, we have to invest in people. that doesn't mean just rich people this bill will help people get back to work, afford child care, have high quality pre-k, help people get to college, and that is going to expand the pie it's going to improve our productivity going forward which is anti-inflationary and it's going to invest in people instead of only vinnesting in high income people the idea that tax cuts for high income people is somehow a panacea for the country when it's leaving people behind is

not borne out by the facts. >> we have to leave the conversation there thanks for joining us this morning. >> thank you. >> thank you. becky? >> when we come back, protests against covid rules and lockdowns erupting across europe this weekend we'll head there for the latest when "squawk box" returns. today, your customers want it all. you have to deal with higher expectations and you have to lower wait times. with ibm, you can do both. your business can unify apps and data across your clouds. so you can address supply chain issues in real time, before they impact your bottom line. predicting and managing operational issues that's why so many businesses work with ibm.

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welcome back to "squawk box," everybody. as the united states prepares for thanksgiving travel, a number of european countries have been looking at new covid rules and lockdowns and those changes led to protests in

vienna, brussels, and amsterdam this weekend karen tso has a breakdown. this was across a lot of capitals. >> reporter: you're right. but the epicenter of the crisis is austria, which entered its fourth lockdown. people have been asked to work from home while all nonessential shops will be closed according to the chancellor, the lockdown would run for a maximum of 20 days the question is whether this gets extended, of course you may recall just last week that austria declared it would make vaccines mandatory for adults, an extraordinary step. all this as many cities in this europe had been rocked by protests against expanding covid measures in belgium protesters clashed with police after tens of thousands gathered in a march. a third day in the netherlands

followed by violent scenes and more gathering in amsterdam. and italy and rome large crowds gathered to the objection of enforcement of covid passes. looking at europe as a coalition as we talk about austria being the epicenter, there's been a lot of covid vaccine skepticism, compared to italy which is close to 74% and portugal at 86% you're seeing different approaches, in the cold, hard daylight today, monday, markets are just more confident about the situation playing out, versus friday where everybody was bracing for some form of demonstration and rebellion over the weekend. so at this stage a bit more calm in the markets >> a bit more calm in the markets. i guess, karen, what do you think would potentially motivate

this for additional protests on this what's more likely to happen if you follow the numbers there, are there more likely to be more lockdowns or protests that lead to the point where people say enough is enough, we have to learn to live with this? >> the big one we watch is germany. what takes place in the country, being a power house of europe, and there are concerns and friday it was circling the market whether the country would go into lockdown economists look at regions going into lockdowns to navigate the health crisis. i think that would be a big one for europe and france too. i was in paris on friday, talking to the industry minister and they're hopeful with the vaccinations and boosters that this will make the difference in the fight against covid. but, of course, the big cities and countries we watch very, very closely the other point is we have to learn to live with covid, and that means business too. so there is hope businesses can navigate any fresh covid

restrictions of course, on the services side you see the hit with cafes, restaurants, bars have close down we're seeing european support on the monetary and fiscal support to support the economies if we start to reverse and we talk about where the fresh help comes from in this crisis. >> thank you very much. coming up when we return, congress facing a debt limit deadline, the date itself a moving target. ylan mui is joining us from washington to tell us what investors need to watch next. and later this morning we'll talk to mike braun who's going to break all this down for us and debate it. stay tuned you're watching squawk on cnbc hey lily, i need a new wireless plan for my business, but all my employees need something different. oh, we can help with that. okay, imagine this. your mover, rob, he's on the scene and needs a plan with a mobile hotspot. we cut to downtown, your sales rep

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welcome back to "squawk box" this morning i want to go now to washington and news we've been talking about the fate of president biden's social spending package but lawmakers against the clock now as to the deadline to raise the u.s. debt limit or face potential defaults it's all quickly approaching and ylan mui joins us with what investors should know right now.

good morning. >> good morning, it is impossible to predict when treasury will hit the debt limit and no longer be able to pay the nation's bills treasury's best guess is we're good through december 15th but the real answer is based on a p complicated accounting of extraordinary measures, cash on hand, bills due and money coming in from taxpayers. so we created a debt limit tracker. the bipartisan policy center crunched the numbers to help give us a daily estimate of where we stand for now we are in the green, treasury has about $325 billion left it started with 580 billion after congress raised the debt limit last month but we are closing in on the yellow zone, beginning at $300 billion and enough to last for two weeks the danger zone is the red zone, and that's where we got before congress acted last time clearly the dial moves forward

as treasury spends money some of the bills due this week are 10 billion to the sba, another 10 billion in medicaid payments to states $9 billion to defense contractors. but the dial can move back into the green if a lot of money rolls in, like big end of the year tax payments and that's why they estimate the actual date is mid december to early february this tracker could help investors and lawmakers try to narrow down that moving target back over to you >> in terms of just -- just walk through this, because we have to layer on this other big bill, which obviously is causing all sorts of debate in washington. and how -- what the inner play of that looks like related to this frankly may be related we were talking about how interconnected the decision about jay powell and lael brainard may very well be to all of this.

>> reporter: yeah. absolutely you bring up a good point, andrew, because one interesting thing is treasury was not able to set that december 15th time line for when they want congress to raise the debt limit until the infrastructure bill was passed and signed into law and that is because there was a significant payment that treasury would have to make to the highway trust fund that impacted the daily cash flow that is a very good example of the way that when legislation is actually signed it can have an impact on when treasury could hit the debt limit as far as the social spending package what we know is that that is actually paid out over time and so we are not expecting to see that signed into law until likely after that december 15th time frame that treasury wants to see action from congress we know that majority leader, chuck schumer and minority leader mitch mcconnell have met to start talking about the path forward on the debt limit. that's important because it

didn't happen the last time we had this round they are starting a conversation to address this issue that everyone knows is going to happen whether or not they come up with a solution remains to be seen but at least they're talking to each other, that's the first step. >> appreciate it, good to see you on this monday morning coming up a major test for the nation's airlines this week. this should be interesting as thanksgiving travel is forecast to return to near pre-pandemic levels. i don't know how those dress rehearsals were going, about a month ago, we saw all the cancelled flights. we'll see. we'll talk to the head of the union representing nearly 50,000 flight attendants. and later, top kraft executive joins us to talk about the rising cost of thanksgiving dinner ahead of the holiday. a reminder you can watch or listen live any time on the cnbc app. stay tuned, please, if you

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the nation's airports are sure to be busy this week. the tsa says that it expects to screen about 20 million people who plan to travel for thanksgiving this year so are the airlines prepared for nearly pre-pandemic passenger loads? for more on this let's welcome sarah nelson, international president of the association of

flight attendants. her union represents nearly 50,000 flight attendants at 20 different airlines good to see you this morning what's the answer? are you ready? >> i think airlines are trready. they have more crew, staff, compared to pre-pandemic airlines were staffing based on a lot of overtime hours before the pandemic and they have had to recognize that people are not willing to pick up as many flights because of the conditions in the air because of the conditions during the pandemic and they've made adjustments and also negotiated with us where they didn't already have incentives for working over the holidays they negotiated to put those in place. they've also pulled back some of the flights they were planning to run in order to meet the demand and so i think we're going to see a good holiday season barring any major weather events. >> let's talk about through a couple of issues

you said flight attendants are less willing to pick up overtime because of conditions in in the air, is that because of the air rage out there >> that's right. the families are saying we don't necessarily want you to put on that uniform that's been a target and they've been chipped away when they go to work with the constant conflict on board i want to be clear, becky, once again, this is a small group of people who are persistently creating a problem in the air. but it has been pervasive and it has been a regular experience of crew and they're worn out. so they're not as willing to pick up the extra hours as they were before. >> do you feel the airlines are doing enough, the government is doing enough to help and assist? >> finally doj is starting to prosecute and faa gave them their most egregious cases we know when people are getting convicted and going to jail that is going to serve as a major deterrent. we are also working really hard to identify the issues on the ground working with the air marshalls and fbi and local law

enforcement and the airports to try to get those problems off of the planes our flight attendants tell us that 50% of the issues were identified during the boarding process or at the gate so if we can keep those issues on the ground we'll make a major dent in this everyone is working hard to do that are we doing enough? the short answer, the flight attendants would say, no, make it stop. but we are continuing to work closely with the government and with all of our airlines and there is progress every single day. the biggest issue that we have is the pushing of alcohol in the airports so the concessions are trying to make money off of that alcohol and advertising to go alcohol. that is a huge problem -- >> to go alcohol take it on the plane >> yes they're not supposed to, federal regulations say no but they're sending the wrong message to passengers. >> when you started out you said hiring is about at pre-pandemic levels if you consider the hours

of flight time or whatever is there. i was going to start with that the high profile issues we saw with southwest or american or others had so many cancellations, in some cases thousands of cancellations over the course of the weekend, they said it was because they couldn't get people to those flights. i don't remember as many instances as this pre-pandemic what's happened? what's different are the airlines not staffed enough that was my expectation. i thought we were using taxpayer money to keep people on the payrolls so we wouldn't run into this >> if we did not have the payroll support we would be in a world of hurt. the fact of the matter is comparatively, i know this this for sure at american, there are more flight attendants per flight hour than there were prepandemic. they hired flight attendants we had all of the flight attendants come back that were sent home in march of 2020, just graduated and now on the line. we have more staff than we had

before but it's an issue of how the airlines are faorecasting, previously they were counting on people picking up those extra trips. but now what they have done is they put in place this incentive pay and over the holidays people can make as much as 300% pay so those incentives are good to have in place right now because people need extra reason to pick up those extra hours and come to work i think we're in good shape. >> andrew? >> i wanted to ask you about the state of vaccines and the mandate, especially at american airlines which i believe has now delayed it again there's still a question mark in this country whether we need to mandate vaccination to begin with but mandate boosters at this point, sarah? >> so listen, the vaccine mandates are about getting people vaccinated not firing them everyone is working hard to get education out to people.

the holidays are a good time for people to talk with their families about what they need to do here. and that requirement date has been moved back to january 18th for federal contractors, airlines who don't have that firm date in place, have moved with that contractor date. and they're going to give people time to think about it i'm with you, andrew, we have to make sure that everyone is getting vaccinated because this thing is not going to end until we do that. >> i know you're with me, but i think you've also fought the vaccine mandate for employees, correct? >> no. that is not true and look, washington post op-ed that i had in september saying otherwise. our role as the union is to make sure the implementation is fair, people have the ability to make the decision we put in place incentives cut down the number of people yet to be vaccinated. made it possible for airlines to determine who was and wasn't so we could focus on those people

making decisions and we said the mandate are the employers' rights and we need to make sure the accommodations are fair and consistent for every employee we have not fought the mandates at all, we have supported them, in fact. >> i have to run i have one personal question of interest, i was on a flight, not an american flight and there was a debate whether someone who didn't have their mask on, but then they looked at the attendant and the attendant had it below the nose. you can't ask the other person to put it on because the attendant doesn't have it on. >> we have to model good behavior i don't have a lot of control over non-american airlines everyone looks to the flight attendants for cues what to be doing so they have to model goods behavior and show how to do it. i would say that's a big anomaly that you experienced there, andrew.

>> thank you very much appreciate it. happy thanksgiving. >> happy thanksgiving to you. futures rising this morning as investors begin a holiday shortened week, traditionally good time for stocks an early read on sectors most likely to perform the best follow our podcast, get the best interviews and the moments of the morning. it's all in one spot, it is the squawk pod it's not just a rehash of the show it is so much more and it is worth a listen every day we have a busy morning ahead we're back after this.

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welcome back to "squawk box" futures higher open rebounding

joining us sylvia and chief investment officer and cnbc contributor. trying to characterize how you two feel in a nutshell i think one of you, sylvia, you think any weakness would be an opportunity to buy, even in europe you are saying i'll still hold my nose. there's still a lot of stim laus go stimulus >> how you see the wave developing in the u.s. unlike europe that is around 70

plus thousand cases. i don't think we'll see a wave as impactful as we saw in late august that doesn't mean i won't be wrong. it also doesn't mean we'll see a psychological effect it might be right for energy with demand in europe. but probably not right with financials i don't see that we are pushing off a more positive net environment. if the wave is gooding to be more intense, we are going to stay away from other factors as well as stay away from those sectors that will be most impacted so i'm staying away from things like hotels and airlines and travel associated things until i get more clarity on that

my flight to safety is based on software so, yes, we are being very selective until we can verify that this wave won't be more than i thought. >> are you thinking it is time to add the positions there you are long but also selectively on in areas that could benefit either way >> good question i'm gobbling up the travel stock. i think the recent set back with aust austria going on lockdown and

others talking about it. these are names still off 52-week highs. once we get past the next wave of covid, you'll see some opportunity to pop there if you look back at covid spikes, these ended up rebounding i agree sticking with some of the high-margin names is really good it plays out well for the flexible work from home situation. these are names for the future we are talking web 3.0 the high octane tech companies will benefit from that too if there is fears of another

wave a silver lining for some it all depends on how acute the wave will be very little change in trends as long as we don't surpass that we won't have the fed reconsider what the schedule is like. >> exactly if they postpone that schedule, it would certainly not be great for financials we are looking forward to the positive net interest and environment in 2022 that we did not see in 2021 that those we saw in banking and negative markets. i'm looking for a more positive net interest margin that should lift the sector next year. >> okay. thank you both we have to get through

thanksgiving it is close. not far off. already shopping and not finding everything we need no sweet potatoes. there are still some supply problems gotta get the sweet potatoes >> coming up, the big washington story of the week. will president biden renominate jay powell or go with another option more of what investors should know flub

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. stocks looking to kick off the holiday week on a high note here futures off the high note but still indicate a stronger open for the markets. the u.s. president will join us to talk about the holiday menu protests erupting in europe over new covid restrictions new data about breakthrough cases with dr. gottlieb. second hour of "squawk box" begins right now good morning and welcome back to "squawk box"

let's show you the futures s&p looking to open higher as well nasdaq up about 69 points. making headlines airlines bracing for the travel crunch as they try to overcome the recent issues. now estimating that 20 million people will be flying with next sunday expected to be the busiest since the pandemic began. the average price held steady about $3.49. i think i paid $3.79 yesterdays that $1.31 higher than a week ago. >> reportedly would consider leaving the video game maker if

he can't fix culture issues. facing criticism over how allegations of sexual misconduct have been handled. let's get to dom, chu. eight points that all you've got to give? should we grab that? >> i watched that michigan state game how about oregon. none of this means anything. eight points >> i will talk to you all about this after the show.

i under you've got a lot going on today >> go ahead. german chancellor merkel talking and some say she's making comments about the situation in germany. that this is maybe some of the worst the country has faced ever those would see the comments move a little bit. nothing that majorly dramatic. those comments did drive the sentiment in the trade so far. >> the german dax in the markets would trade so far with regard to some of those

names. we are down remember 20% of its highs here only about 8% off the record highs right now. he responded to the question whether the tesla s model s would be available in china. watch tesla shares with regard to the covid headlines if you take a look, it is the all important holiday shopping season where we are showing a little more movement moderna and pfizer are some of the most active names. novavax up 3.5%.

some travel names still holding up to the pre-market trade possibly right now dispied the merkel headline. president biden this week expected to announce his choice of fed chair a choice between pouille and brainard the question is why is it taking so long. going back and forth on this, it is a vote count market strategists still thinking about what it would mean it will be more dovish and some

what slower to raise interest rates. buying commodities on an even more dovish path to sell the dollar suggesting a greater role for the fed and the risk change that could lead to less financing for existing oil companies the opposite of how stocks would resume some say they will hold that job. saying that person will reverse some trump era actions and focus intently on climate issues all of that points to the annual

stress test of getting harder. brainard favors digital bank, powell does not. any action would be several years down the road. investors might want to await the choice on these. four picks if he chooses br brainard and others for powell >> if powell, does that mean brainard becomes vice chair? >> there could be other choices of compromise or more sentist or

hawkist. a huge political calculus and maybe why it is taking so long >> the clock is ticking. this has to be done by february? >> yes and the clock has ticked this is the latest deployment of a fed chair we've seen the question is how much time there is to get to have the hearings i assume the senate can do this. it is certainly late in the game >> they don't have much else going on in congress right now no worries coming up, we have the u.s. president of kraft heinz to talk about inflation and how much your turkey dinner will actually cost you this thanksgiving take a look at the markets

s&p 500 up about 53 points and the nasdaq up we are back after this ♪ ♪ ♪ move to a sofi personal loan. earn $10 just for viewing your rate — and get your money right. ♪

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give your business the gift of savings today. comcast business. powering possibilities. your thanksgiving dinner will cost about 14% more than it did last year including items like turkey, which is up and potatoes also up >> joining us.

the u.s. president of kraft heinz. people may not instantly think kraft heinz when they think the thanks giving table, including things like jet puffed marsh mall owes. >> we are part of family

traditions we are making sure we provide great value with kraft mac and cheese to make shir products are accessible. >> we are looking at a stock chart that is a pretty steep slide. i know during the pandemic, people were doing more things like buying your products. a lot of those picked up during the pandemic are you continuing to see that >> we continue to see tremendous demand we are producing 40%more than

2019 with younger families learning how to cook and drive new traditions >> which of the ready-made products are you seeing pick up new life where does that fit in with a younger mindset? >> how do you make that happen with the millennials >> heinz gravy is one we've seen tremendous amount of growth. now we are seeing that selling all through the summer and fall. second thing, if we look inside jet puff if you look easy desserts.

you find jet puff is a great way to make those desserts very easy >> i know you look at those search terms, like easy being the search does that affect the way you market is that where you spend your money versus some of the old line media >> for us, it is important to be wherever consumers are online, we'll be there whether buying in stores or online, we can make our products accessible to them

we see things like on social media or in the store. the thanksgiving day parade, our heinz gravy will have a float for the first time >> how does your budget break down we've heard of some companies don't need advertising as much what is your ad spend and where does it go >> two things i will tell you, one, we've increased $100 million since 2019 we've shipped more of that into digital media. a way for us to make sure the higher return of investments making sure the messaging we are doing and we personalize what

you are looking for. that may be online or with streaming. that is customized we understand better where you are and what you are looking for and we can customize that way. >> back to where we started. how much of an impact has that had and what has it meant for your margins and how do you handle it? squoo talking about creative ways to make sure companies are getting the price hike without looking like it. whether that would be the old hack of putting less in the box or offering three different things if you want premium, that would add up a little bit. >> we have taken pricing as others in the industry have. i will tell you, i feel good about the fact that we are using a number of tools beyond just straight pricing a number would be the value side

hack and interpreter price point. if you take something like kraft mac and cheese, we go from ready-made microwave cups all the way to the box d deli meats to ba more the second thing i would say, we have a scale that allows us to better work with our suppliers in a way that we are protecting the value but also the continuity of our business it is something we are continuing to see as we go through the year we are going to continue to protect that profitability >> what are your margins now

versus 2020, versus 2019 >> we feel good about where we are. we continue to see an improvement on how we think about the health of our business if you think about this year in terms of pricing, we have taken about 5% of our average and almost 80% of our portfolio. we are investing back into our business, brands and people to make sure as we continue to produce everything we need to continue to feed america the way we have. >> it is important to reinvest in your business, does that mean profit margins are down? >> no. we feel very good about our profitability. we feel as a company we have a lot of pride >> so profit margins are up? >> just see what we are showing here, it shows profit margins

were up from what we had in 2019 we are making sure we will continue to do things for us protecting what consumers are looking for us at this time. >> thank you for your time it is good talking to you. >> thank you, becky. happy thanksgiving >> what corporate america is facing after the build back better in the house. >> and covid restrictions and a dire warning from germany's health minister. pretty much everyone in germany, will be vaccinated, recud or dead we'll take about the latest on the vaccine front, ahead

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coming up as "squawk box" rolls on after this.

welcome back protests against covid-19 restrictions rocking europe. demonstrations breaking out.

protests in vienna on sunday after austria entered the fourth lockdown as people were asked to stay home. vaccines will be mandatory starting february 1 making it the first european country to require vaccinations vaccinated, cured or dead is the warning from the health minister the chancellor angela merkel saying the sat wags is worse than anything experienced so far. those comments sending the german dax lower the situation is dramatic. tighter curbs are needed joining us now dr. scott gottlieb he serves on the boards of pfizer and illumina.

we were going to talk about a piece in the journal talking about breakthrough threats we'll talk about it in a second. comment on the news from germany and what's different there or here or is it? >> there are some differences. a lot of the spread, the dense spread they are seeing are in the eastern part of the country where vaccination rates are lower. if you look across germany, the rates are pretty high. higher than the u.s. dp germany hasn't had as much prior spread as the u.s. in a different situation than germany because we've endured a

lot of prior waves of infection. they've learned to better control their situation there. >> the continent itself, is the rest of europe looking at the same things that happening in germany? >> when you look at countries like france and germany, they've endured or prior infection it is hard to tell with the first wave and how invasive it was. it was when we didn't have a lot of testing cdc about two weeks ago showed majority in u.s. have some form of immunization.

in europe, probably much higher. and looking at vaccination, we are picking up 1% every two or three days >> so 79% move into this country here south carolina specifically where we have spotty data. icus and hospitals 79% of breakthrough infections have one existing health condition. diabetes kidney all the usual things are associated with an increased risk severely old patients, 88% elderly over 65 in perms of people possibly going to be affected by a breakthrough case. don't we know this it is not -- it is a vaccine, not a therapeutic.

>> at this point, we need to accept there is a lot of breakthrough infections happening. specifically people out significant time from their vaccination. people are coming up on a year there's probably more infection happening, more spread happening in the unboosted portion than we are picking up there will be studies that identify this but we are not doing a good job tracking this in real time the effect of the boosters is almost immediate in terms of the 95 protection. we are not making effective use of the antibody drugs. for people trulyvulnerable i

know plenty of people doing this the problem is it is not available to the masses. you have to be in the know to know these drugs are available for us the fda is currently considering emergency use authorize. we should be getting on the ball to make these available to immuno compromised patients. >> to say when they were ruling out the boosters to say you should ore may get it. >> it shows the challenge making the decision in a pandemic

this shows the difference of these tools being used as tools to control and end the pandemic. if you are in the camp that these vaccines could be effective in controlling the end, you are in the camp of boosting younger people. the younger people, people in 20s and 30s fully vaccinated probably have more residual protection and they were at lower risk to begin with depends where you break down and see that debate play out they've kind of incrementally towed into this. >> we are telling people now

we've missed the boat. if you are in the camp that says, look, we want to give this to younger people, you should also be in the camp that those those people who are younger wo should take protections. either you think you should get boosted or you think don't worry about it at all. i don't get it >> these are the challenges. we need to make the changes at a population level we didn't see that from cdc they

got their population boosted here the effects of the booster are pretty much immediate. that data on the decline is after about a week people who go out and get their boosters now could have more protection at time of even thanksgiving and even can be more robust. if you get your child a first dose, they'll have more imprune protection than an adult would there is still opportunity to get more immunity in the population to get protected in time for the holidays. >> is there any possibility the immune system could say, i got it i got it we need to be ready for this is there a fourth. will a third wind be okay a year

from now is it possible for the immune system to say okay, my t cells i've got enough. you don't need to give me anymore boosters >> the flu vaccine lasts six months we don't know what the durability will be after this third dose it will probably be different for different ages then you run into the complexity of different recommendations for older than younger people. this may well become an annual vaccine at least for some portion. then you come to the question becky raise, the question of an annual vaccine for simplicity of it first, we'll have to see the durability from this third dose. i don't know we have data coming out of israel at least in the antibody

response at the cellular level for older and for immuno compromised people, this may become an annual thing >> in terms of this idea that you are fully vaccinated after two doses. a lot of people think i took the two doses, i'm fully vaccinated. what the third dose does to the idea you could even get it and why it is important. i've had a lot of conversations with people who can't put those two ideas together but you are the doctor >>we've seen somewhere between

40 to 70%. the data on the booster is pretty convincing that you restore the original protection with someone who has had three doses. >> the three doses even more protective compared to someone already vaccinated >> thank you if we'll see you for thanks, i'll way otherwise, happy thanksgiving.

when we come back, bracing for a tax hike what america is bracing for after the build back better bill >> s&p futures up by 14. we'll be right back. tv: mount everest, the tallest mountain on the face of the earth. keep dreaming. [coins clinking in jar] ♪ you can get it if you really want it, by jimmy cliff ♪ ♪ [suitcase closing]

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time for a bottom line look at tax increases robert frank joins us with more. >> good morning. there are dozens of tax increases in this house bill but for high earners and companies really six changes that matter the most on the corporate side, 15% minimum tax on book income and applies to companies with $1 billion in annual profits. that will hit around 70 companies including amazon, facebook, fedex and gm a new minimum tax on foreign profits. a lot of changes to intellectual profit and foreign tax credits that 1% tax on buy back. >> there is a new 5% surge 0en

income over $10,000,008% on income over $25 million. that will affect the super-high earners. that tax only applies to individual earners will now apply to pass throuus and losse that exceed income from noncorporate taxpayers that one plus is salt that would ratz the current cap we'll see if any of that salt change survives the senate. >> how does it go from here? this is the house bill, it has to get passed by the senate. if the senate changes it, it has to go back to the house before it goes to the president's desk? >> exactly we know the salt change will go

through sanders. maybe will only apply to income over $400,000 and then changes on the immigration side. this house bill really targets companies with high capital investment and compensation. people who would pay more are small business owners and pass through. >> it is such a jump belled mess and these are the fine details that get buried in the hundreds of thousands of pages of legislation. are we even going to know what it is until after it gets passed >> no. there are things in this house bill, there are things that accountants werecalling me ove the weekend that they hadn't even thought of. like you say, this has to go to the senate the senate makes changes and it

goes back to the house you are right. we don't know what the final bill will be and whose going to pay it >> we have to run but who gets the final say? the house or the senate? >> i think it has to go back to the house. final say is the president ultimately, it does have to get repassed by the house. >> lots of moving pieces thank you. coming up, senator mike braun of indiana will join tous talk about the build back better plan at 8:00 a.m. eastern time coming up, almost as quickly as she vanished, chinese tennis sar peng shui reappeared over video after allegations and kren

juro censorship the wta calling for full investigation. it could have large implications there. "squawk box" coming right back dt adjusts for you in real-time for a more efficient workout. and you can only experience it... (sigh) on tonal. ♪♪

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safe in a statement saying peng is living at her home in beijing and would like her privacy respected. the call appears to be the first contact after the sexual assault allegations against a high-ranking official. join us for business is jeffrey sonnenfeld, and so many implications for the olympics, for the sponsors of the olympics, which is, of course, coming up in beijing and what is really happening there jeffrey, what do you think if you're running a company today that's going to sponsor their olympics, by the way, broadcast the olympics, what do you do >> you're trying to get me in trouble with our friends here at nbc talking about broadcasting the olympics and advertisers and sponsors, but it's a critical question we are seeing a lot of things coming to the head

the focal point of the olympics has to do with peng shuai's surfacing, 'em though thomas bach of the ioc is apparently content, steve simon, the head of the women's tennis association are not and many others are not ceos did not go into their line of work to become public officials, let alone diplomats, and you have to choose which issues to get into some they can take on. when you have a significant business interest, where you're worried about employing slave labor or forced labor, at least, if there are allegations of genocide, they stay away from that, but if it has to do with sabre rattling with taiwan, that's a third reel, so they

have to pick and choose. you remember a couple years ago with -- with the houston rockets' general manager criticizing the crackdown on the pro-democracy movement >> but some people looked at that in terms of how the nba handled it you and i may they have it was handled well, but others may see it's hypocritical. the players have been involved in speaking out on lots of issues in the understanding, that speak out on all sorts of issues you advocate oftentimes to have blackrock speak out, and then when it comes to china, mum. >> i'm glam you made a distinction between blackstone and blackrock, because you

yourself set a great pattern after the grotesque murder of the from going to the saudi economic conference, and blackstone and jamie dimon, of course, people people of significant saudi engagements withdrew from that event now, on the nba -- she we had politicians involved, pointing fingers in unison back at the nba tillman owns them --

>> jeffrey, the question really is, should ceos being speaking up if they're going to speaking up on issues here or in the europe, should they speak up on china, recognizing if you do, you can't do business there. what does it mean to engage behind the scenes or take -- not to the street but a more public stance -- >> what the nba did, just to finish that off, is that he allowed freedom of speech. adam silver said, go ahead whether or not darrell morie, the generaler who spoke out was -- and he does still speak out. we see today at the boston celtics, very critical fellow players, the lebron james, there's no dis plan. maybe people pressure adam sill re to put some discipline on,

but they have freedom of expression, and that was an important thing, adam sill very said one of the things that makes offer products great is the u.s. brand, and part of that is the freedom of expression rules, but they also found common ground, and they realized they had an interest in the future but they do speak -- >> right. >> there's an assumption that if companies speak on you they can't do assumptions -- that's so wrong there's a mythology that we need this quiet diplomacy she surfaced only because people spoke out. we have all these chinese journalists, two former cnbc journalists, they haven't been seen over a year and a half, and people are looking at quiet

diplomacy. ray -- >> jeffrey, where is jack ma where is jack ma even now, we're about a year and a half. >> he's somewhere in sunny spain. i went over to do a retreat for him, and when i got there, he was gone it was for a group of chinese entrepreneurs. you can believe they were pretty darn disappointed when i was supposed to be partnering with hem and he was almost gone i think he's in majorca, if you asked. but the apparel manufacturers, is another interesting model they used collective action. that is the way you break a bully and autocrat they divide and conquer. we have not only these journalists, we have film stars who have disappeared and been

discredited. it's when you bond together, as nike and these guys did. if you took a hit -- >> jeffrey, we have -- >> they took a height hit back in march of april. >> right. >> and -- jeff -- >> it's rebound now. >> we have a hard out. it's an important conversation we're going to continue it, vote, talk soon. >> thanks, thank you. when we come back, senator mike brawn will give us his take on president biden's spending bill and the impact on the economy. and mohamed el-erian will join us later. student. you're watching "squawk box," and this is cnbc

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good morning the dow has been down two straight frustration over covid restrictions in europe as the continent battles more waves of infection. violence in the netherlands and belgium. elizabeth holmes is expected to return to the witness stand

today, after a surprise appearance on friday the final hour of "squawk box" begins right now. good morning welcome back to "squawk box" here on cnbc, live from the nasdaq marketsite. u.s. equity futures have been positive for most of the morning, but moderated some of the gains based on some sobering or sober comments from -- coming out of germany and angela merkel, regarding the covid delta wave that country is experiencing they're up well over 100 at one point, still up about 84 on the dow. nasdaq indicated up 64, s&p up

13 let's check out the ten-year we usually see yields go the other way if there's a worry about global growth, but 1.58, still below 1.6. bitcoin is down 3%, 4%, back below 58,000 here are some of the top stories. there it is, 57, 50. some of the top stories we're watching erickson says it's buying the cloud computen company vonage. it says the company expects the agree to boost free cash flow and profits, include the noncash amortization impacts, in case you were wondering the owner of clothing retailer forever 21, aeropostale and brooks brothers retreating from an ipo instead equity stakes

will be sold to a hedge funt and a pool of existing stakeholders. it says the company will in and out start an ipo in 2023 or the year after and activision blizzard ceo would consider leaving his job if he can't fix the cultural problems he's reported to have said the comments after he and the company faces criticism for the handling of sexual misconduct allegations. mean time, an intense weekend in parts of europe much

everyone will have to be vaccinated soon. police and protesters also clashing, politicians are now -- many vaccinations mandatory in light of soar ing. cnbc's mine santoli joins us right now. mike, this is a short week, but a lot of headlines out there, so you wonder what that could add up for >> obviously we're wading for a fed chairman nomination. been very steady, though, in terms of the overall top-down s&p 500. two weeks ago we closed at 46 t 97 >> the market seemed like it was a bit overheighted, needed to

cool off it has doing son -- so this doesn't necessarily say the seasonal pattern is invalid this year, but it has been very uneven below the surface a lot of separation. here to take a look at the equality-weighted russell 1,000, a broad measure of the market against the nasdaq 100 and you see -- you really are still in the average stock of just barely above where we were, where you've seen the nasdaq 100 names really launch higher, nvidia, apple, things like that. a similar story, if you look at travel and leisure-related stocks, this reopening trade versus a measure of large quality stocks what you see is this is the travel-related etf these three separate peaks, as

people got excited and then a bit of a gut check on that, all the while you had quality kind of taking up the slack here and supporting the index so it's a pretty good story in terms of if you're an index investor there's a lot of stocks falling by the way >> i know last week was the worst for wti since maybe august exxon i think was the biggest drag on the s&p 500, too the stocks slowly starting to creep up making taken the wind out of their sails

don't think it's changed much in the way of the trend i think it's sort of a debt number for the energy producers, and consumer i go back several years and we were at the same level i think it's part of the value radio epg on trade. >> and if anything, maybe the rye sell yen of the offices, whether that's covid and what we're watching take place in europe, talk about the fed chair, the market hasn't budged on any of that. >> it's been pretty reville yen. the damage has happened in an obscure way. some of the real high-flying growth stocks have had a horrible time. financial conditions, mean credit spreads, rates being very low, obviously are very supportive of that, but also just companies actually keep beating estimates, so there are buffers in there against some of those challenging headlines. >> mike, thank you

we'll see you a bit later today. on friday the how passed president biden's roughly $2 trillion bill back better bill o over the week sxwhend senator humaners said he hopes to get it pa -- schumer says he hopes to get it passed in the senate by christmas. west virginia is an important state, but so is indiana, and republican senator mike brawn joins us now senator, i'm trying to figure out -- you probably have a multifaceted reason for not wanting the bbb to go through, but one of the things you say is during the pandemic a lot of

americans thought the government should be doing before, but we have unemployment back below 5%, rising stock prices, jobs being added. the public is not sure it wants the government to do a lot more do you really feel this had by inflationary, however you want to characterize it pre-dough individual was the hottest economy i can ever remember, it was driven by the productive side of the economy, not government so the uncertainly, we have the cares act out the door, probably more money than we needed to

spend then, but we aired on the side of kind of doing something. now we've had a year and a half of government being the driver in the economy, kind of just unconcerned about the fact we're nearing 30 trillion in dead. inflation becoming somewhat embedded into the landscape also, we know the covid and a halfuation, it was implemented decently i have happy to hear merck and pfizer have a therapeutic that looks like it will way into the equation that is going to be built into kind of that new baseline, and i think it's clear that government at this point has to get out of the way and maybe look at what

was working pre-covid. so there's still a strong tug of war with people saying we have to get into some navigation going forward, which is real, where covid will affect us, and can we recover from what government has done, maybe with good intentions, but crippling the economy mountain way the whole work ethic might be different from what it was before here in indiana we're already down to mid-3 unemployment rate. workforce was a big deal -- both federal and in some states. >> senator, the point has been made from one side of the aisle that, you know, during the pandemic people with means and with assets did very, very well, and we still need help for people that are at the lower end

of the income scale. we try and try, nothing seems to move that needle their view is this is a way of, whether you want to call it redistribution or more of a helping hand or a safety net to those in need. i think republicans say we're basically expanding the safety net to the middle class, and i'm wondering is that your viewpoint? and why would that be a necessarily a negative if the middle class had more of a safety net. >> pre-covid we were raising wages in the toughest spots, among certain minorities, african-americans. it was done the old-passed way where you're competing for labor. that was absorbed into the economy with still an inflation rate that's been historically low. we do have to be careful if we weave this into the new tapestry of whatever this economy is going to be, kind of

look to get your cue from growth rates and how things work in europe i mean, they've been doing it as a level where it would similar to where we seem we want to go to i think it's a mistake i do acknowledge we have to figure out -- conservatives have to be better at being in the discussion on the high cost of health care which disproportionately impacts those at the end of the scale. we have to be at least credible with the discussion of -- but that's changed a lot just in the last year and a half so we need to be, i think looking back to what was working, be engaging in the issues that have disproportionate impact at the lower end of the scale, and i think then we arrive at a different place, and that's baselining how we handle covid, how we accept it, and that's not, of course, done with mandates where you're saying,

hey, either get a vaccine or lose your job. that is one of the biggest mistakes i think government has done right at the take end of how we're navigating it. >>. >> everybody knows joe well, lead are mcdaerd said that governors will have another chance i don't know what goes back to the house for that next vote

when he goes to a fun raiser if it doesn't happen this year, it's going to have to start fresh next year. with as much as pelosi has flopped around on this, it has to be the biggest political embarrassment when they were coupled together, and then you had to go through the painful discussion over there between the progressives and the moderates. i think there's probably been some communication between their getting across the finish line and bringing it to the senate.

it will have been a continuation in the senate. i think joe will weigh in on what policy gets shoehorned into it kyrsten sinema is more of a fiscal conservative on how you pay for things, and i think she's made her point out there joe will end up, in my opinion kind of still playing coy to a degree and if they don't he could say, i'm going to start digging in, maybe even consider things in a political way that would tank the whole operation. i think that has a low possibility, because i think there's been some coordination in taking the vote in the house

and it would be an embarrassment for the party -- they have other issues to contend with as well. >> senator, thank you. a big win for purdue >> i watched put dire, iu, butler, we have a bunch of great schools. >> you really do >> academically good, too, we should point out. >> yeah, we do a good job there. we export about as many four-year degrees as we use in the state. that's another issue, education, we need to look at not at the federal government, but within states. it's another way to make state economies relatively stronger. >> it's hard to be next to ohio, just always in the shadow of that state i understand that. anyway, thank you, senator, good to have you on >> my pleasure when we come back, a lot

more here. mohammed el-erian will join us next we're going to talk about elizabeth holmes likely to return to the witness stand today. scott cohn is outside the courthouse what do you have coming up in this soap opera? >> reporter: andrew, we know that bless hole position has the power of persuasion when it comes to racing money. how will she do with a jury? she will be back on the stand this morning and what to expect in elizabeth and what to expect in elizabeth holmes i care. its on the power to change the way we see things. that's coming up ♪♪ it inspires us to go further. ♪♪ it has our back. and goes out of its way to help. ♪♪

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. elizabeth holmes will be back on the witness stand today, after a surprise appearance on friday boy, was it a surprise that she went up there on friday, scott.

>> reporter: a surprise to pretty much everyone in the courtroom. the defense has done well at keeping things close to the vest throughout this trial. they did spring it on everyone on friday. we know that elizabeth holmes is masterful at telling her satire, but this does turn out to be the biggest test of all. it was an incredibly powerful hour on friday i can tell you the jurors were riveted as she sat there confidently, almost smiling, talking about the early days of they are anot, how she dropped out of stanford at 19 to start a company, and how that morphed into the blood testing technology, and show she managed to raid three rounds of silicon valley funding from major players before she was 24 years old. now things get harder. she and her attorney have to

make sure they don't open too many doors for cross-examine look at this one, for example, when she's questioned about a 2014 "fortune" afrticle >> were you aware this article was included in the binders and materials that they are athought sent to other investors? >> i don't know. >> did you ever ask for this article to be included in investor binder? >> not that i can remember i don't know >> there is a fascinating bit of clock management, there's only two days of court this week, so what will the jurors be left with po to ponder? confident holmes or elizabeth holmes on the defensive?

we will see. guys >> so just to play this out, that's just, you think -- not the prosecution, rather, but the defense will try to keep her and hold on to her until wednesday, and then have the defense work this next monday is that the idea >> reporter: well, that's a possible it depends they have this sort of parallel battle here of the defense doesn't want to open too many doors for the prosecution on cross-examine. >> scott, there are in terms of opening things up, for example, you just showed that fascinating tape of that deposition. would that not be open, if you will, based on simply the testimony of roger parloff, the writer who wrote that earlier,

could you not get into that? >> reporter: it's a legal question it depends on what the defense asks elizabeth holmes about on direct examination that's all that the government can cross-examine her on that's the thing they have to deal with, coupled with the idea that the defense most likely wants to leave the jurors with a positive impression of elizabeth holmes whether that's her continues with this direct examination up until the court end on tuesday, on whether it's redirect after the government has gotten their hands on her it's going to be very interesting to see, and it all plays out just a few hours from now. we will be watching it what a courtroom drama it is, scott. thanks so much and when we come back, from the west coast to the windy city, phil lebeau is live at chicago o'hare international airport as airlines get ready for the kind of thanksgiving

week crowds we haven't seen in quite a while. >> that's true this will be the busiest week since before the pandemic. are the airlines and more importantly the airports, ready for the long lines we will see over the nt exfew days that story is coming up next on "squawk box.

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. welcome back, everybody. thanksgiving travel ramps up today. phil lebeau is at chicago o'hare it does look like there's crowds behind you. >> reporter: there are crowds, but it's been an orderly start to the thanksgiving travel week. wyche seen more people than we typically would see, it's not terrible hopefully that's what we will see over the rest of this week how many people are traveling? according to aaa, 4.2 million people are estimated to be traveling this holiday travel week, week and a half. that's down 9%, compared to 2019 sunday, next sunday, it will probably by the busiest day for the travel season. for the airlines, specifically southwest and american, they have already dialed back their flight plans from where they were originally, because they were overextended. they also have offered staff,

whether it's crew members or others extra pay so they have enough staffs. then there's the story of the airports if you haven't flown in a while, be prepared. it's a different experience. you will see longer lines, not just at tsa. the concessions are they are dealing with tight staffing, and as a result, you will see longer lines there, and then finally there's the story of the unruly passengers there was a time when one of these report was an occasional report no, that's not the case within the last year. though the good news is in this chart here, from the faa, this is the number of reports or inns debts of unruly passengers per 10,000 flights, it has come down that is the good news. nonetheless, the airlines will be dealing with people who are not happy about wearing masks --

by the way, that's about 78% of all of the incidents that are reported, people who are not happy with the masks, and something developed from there finally as you look at the airline stocks, they're hoping this thanksgiving season will give them a bump in terms of improves their fourth quarter results, but they're dealing with high jet fuel prices, certainly cutting into the bottom line. fingers cross the we do not have any storms we spoke with the head of the airline flight attendants association, and a big part of the problem is the concessions are doing things to boost liquor sales, saying, get a to-go cup, even though you're not allowed -- >> i see it, i fly a lot people get one for the road. i don't blame the concessiona.

rhythm es. the flip seed is you see people chugging down the rest of their beer at the gate it doesn't mean every incident is because somebody is drinking about of they get on a flight. >> i'll bet it's a lot of them >> reporter: well, it probably is a fair amount the faa is worried about this. they have told the airports, you have to cut down on this i'm not sure how successful they have been, but you definitely notice it when you fly. >> great to see you, phil. i'm sure we'll be seeing a lots of you this week. >> reporter: oh, yeah. after the break, we're going to talk about what to catch this week. and who will get the nod to be the next fed chair. and then tomorrow don't miss our includes interview with alex karp meantime, check out shares of

the futures right now on this monday morning we have some green arrows. nasdaq up about 74 points. it's a short trading week, but according to our friend sam stovall, since 1950, the last five trading days of november have traditionally been positive maybe good news ahead of thanksgiving stay tuned online u.s. stocks . and a commitment to get you the best price on every trade, which saved investors over $1.5 billion last year. that's decision tech. only from fidelity. ♪ ♪ wow, we're crunching tons of polygons here! what's going on? where's regina? hi, i'm ladonna. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations, like real time cgi. okay... yeah... oh. don't worry i got it! become an agent of innovation with invesco qqq

punchbowl news is reporting that president biden will announce the fed chair nomination decision will be announced today. mohamed el-erian is also the president of queen's college cambridge. running through this, we have known this for a while, who do you expect to get the nod today? >> it's a really heart question. the wetting markets expect it will be powell i think it's wide pen, but let me say one thing, becky that is important. it's well beyond the chair step back, you have the chair, two vice chairs, at least one other board position, and in addition, you have two regional fed presidents, all in play. that's a lot of moving pieces. this fed is going to go through

significant changes in the next few weeks. >> hold that thought for a moment i will tell you last week, it certainly seemed that washington was trying to signal maybe it would be brainard, but what i have heard over the weekend, the democratic senators who say they would prefer powell, it seems like a very big lift for the biden administration to get someone besides powell to move through. it just seems the easier solution is to go with powell at this point and lael brainard at vice chair. >> it may be the easier question, but for president biden, the real question is what's the right solution?

i say may, because a few things have been clarified. one, people are making this dramatic statements that one is continuity, the other is note. there is a vie among certainly people that both of them were posed. so, you now, there's a lot of issues being thrown into this, as people position different people i think ultimately at the be what president biden feels is the right choice though this moment this is a really important moment not just because of what happened in the fed, but also what's happened beyond the fed, on inflation in particular, where the fed has completely messed the call. >> obviously lael brainard is incredibly respected and could do this job, but mohamed, people feel like she would be more

dovish at this point i'm just trying to match up -- i know on friday when we talked, lead brain and ser it would be shall be you would pick between the two, and you also said you think the fed is behind the curve. i think because of she's an economist by training, she would adjust much more quickly her thinking she has the foundation, but i think it's beyond who is more dovish on monetary policy. i think it's also about regulation also a being open to issues to do with climbed change, issues with crypto. that's a decision that has to be made i ace what beyond monetary it's also do you think the fed should be more open-went ed abot these other issues

remember, the fed has a whole tool set that includes regulatory issues. >> i don't know if you can see this, this is the cover of "new york" magazine, joe biden versus the democrats right here the reason i'm putting that up there on the screen for you is because there's a real question as to whether a lael brainard actually would get approved, and whether you would risk that and whether you would risk the build back better plan and other things, and whether you think it would butt these other things, even her own role, in jeopardy >> so that is a political issue, andrew, and i'm not in any position to provide insights on this really important political issue. the answer is, i don't know, and that's a calculation the white house has got to make. i suspect has made you know, i'm talking more to

what the technocratic aspects of this appointment >>. >> i don't think she wanted to engage what she saw maybe at a loaded question. scherr answers are, i have reviewed markets that are well regulated, competitive, and well, you didn't answer, are you a capitalist and a social it's again, i would say markets are well regulated, and then one last try, and she said, again, i really don't think about it in those terms. i'm not going to be pinned down.

is that okay is it really -- are you a capitalist or a socialist, mohamed? >> i believe in a capitalist system i do think the capitalist system that has excesses that have to be countered by. >> you believe in it, you are a capitalist. >> yeah, sure, but i also believe the respond toward the most vulnerable segments of the population, the market-based system will not always tay care. it's like me ask you you are you at home a capitalist or socialist? >> it doesn't matter where i am. wherever i am, i'm a capitalist, with no qualifiers i think the best way to address the things you're talking about, the only way, is through capitalism if you go the other way, not only are you not going to address the things you're talking about, you're going to make everything worse as we see things again and again and again through the annals of history.

>> i don't think there's any doubt what dover about that. where you and i will differ is to what extent dots market failure as well as government failure. you tend to focus on government failure. i tend to focus sometimes on government failure and market failure. that's the issue, really >> mohamed, we're out of time. you made the point the fed is going to be very different, and we can talk about that the next time we see you. >> thank you, becky. when we come back, jim cramer's first take on the trading day ahead. stay tuned "squawk box" will be back after a quick break. ine this. your mover, rob, he's on the scene and needs a plan with a mobile hotspot. we cut to downtown, your sales rep

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jim cramer joins us now, probably a three-booster jim cramer, feeling good you're flying around. >> absolutely. >> you're back here. are we on the cusp of mishorrible? germany? >> oh, please, look, there's these pockets, obviously.

>> i don't know about the fed, but in the end, things are okay. i'm not going to buy this will be all over the place. i think that's where the opportunities come from. >> metaverse just keeps going higher i think we'll all have fun with it, but it's a manufacturing situation. it's about eliminating waste a company had about third of its costs, and how they're using the metaverse. that's what we have to think of it we have to think of it as an industrial play. it's just that zuckerberg has not emphasized that. or, but when you look at nvidia, it's trying to make it so there's less waste, and they're succeeding bmw is a great company

it's fun, but also very useful it's a play on getting rid of what we regard as being costs that we can't control otherwise. that's what we have to remember it as, not as fun and games. >> andrew's got a question >> i just want to understand -- when you say lower -- >> or an avatar -- >> what are we talking about >> in a bmw factory, nvidia can find out way to say make things faster and better. everything is done by computer jensen huang showed me exactly how bmw has used the omniverse to cut out a lot of waste in its plant. i'm talking about a 30% reduction in costs basically hire the omniverse we can all have thanksgiving

dinner, having every avatar over that's fun, but what it is is a way -- it analyzes what the waste is in the system obviously every company wants to try to eliminate any of the raw costs, but also any of the environmental costs. there's an application. >> does it eliminate excess labor, too >> yes. >> are we talking about -- >> it is so big. he was saying you can eliminate the person at any window at the drive-thru, and it does much better, but mcdonald's not called him wendy's has not called him he's quite surprised we could eliminate so many costs at a fast-food place, and i asked, why haven't they called he says. i don't understand >> all right, jim, le with see you --

>> it's worth it a trillion dollar company, coming up. we want to remind everyone about the new cnbc investing club you can sign up to find out more, or just point your phone at the code on the seecrn. "squawk box" is coming right back

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right now it looks like the dow is much by about 100 points nasdaq indicated up by seven, after a record close on friday a little more than a half hour to go on the opening bell on wall street. dom chu has some of the top pre-market movers. >> on uber, is going to allow residents in ontario to place orders for cannabis.

that is helped along by that bit of news. maybe they start taking orders for other things as well check out some of the vaccine-related plays. after'sryia and it's lockdown. moderna and pfizer up about 3% pfizer up about 0.5%, novavax up about 4% a lot of these got a big, big boost after the cdc kind of approved the booster shots for adults so the watch those particular names. then, as we do in this hour, a check on some of the most popularbefore the weekend, apple, one of the top tickers up about half a percent rivian just to the heels that it and ford will not jointly develop an electric vehicle. tesla 2.5%, lucid group down 4%.

andrew, a lot of electric vehicles still a part of the mix. back over to you guys. thank you, dom german chance her angela merkel saying -- right now -- both of them are with us this morning. kevin, i want to ask you about this dom just ran through some of what i called the covid vaccine stocks you're seeing them rise. i don't know how much that is a function of the booster as much as it may bia function what we're seeing as new cases in upand what that may mean >> think the big reason is

because of what you're seeing in europe europe is starting to shut down again. they're going through with another ramp up in covid cases this is why we have continued to like the u.s., especially because europe keeping shutting down their economy we believe here we're not going to shut down anymore hopefully we'll see our goods market start to settle down and hopefully that will help some of the inflation issues >> do you believe we're in a santa claus rally? >> it does seem that way and

some of the manufacturing they're not rising anymore, so maybe mere hitting a plateau there. , to see some of those prices to come back down i think it's the consumer strength again we're seal industrial products doing well, consumer spending doing well. i think wove a good foundation for a santa claus rally to get and half >> whether it's the country chairman or lael brainard, you think they're going to impact the markets meaningfully >> i don't think so. when you look at the difference between powell and brainard, as far as their monetary policy, they are pretty close to one another. i think the big difference between the two comes with their

regulatory policy. i think that that's where you'll see the deviation. so from my perspective, i believe whoever is the fed chair, they're going to take a wait-and-see approach. we expect that, you know, by the middle of the year, we will be done with tapering, and then they'll just wait and see what will happen after that the market right now has two fed hikes that are priced in through the end of the year, and we'll just have to see if that's indeed the case. i think that's pretty aggressive right now, and because we think that inflation is going to -- is going to ease by the second half of the year. >> vehicle toia, we have about 30, 40 seconds before we have to hand it over in term of animal spirits, we were talking about some of the ev companies, still sky high they have come off a bit you also have seen bitcoin come off a bit. what do you think about that

>> we've had this volatility across the board even though momentum has been broadening, there have been certain sectors pulling forward. the sickly could -- you do have these areas pulling back i think it's until certainty as to where we go maybe that affects bitcoin a bit, and ev, obviously there's so many ngo new players here >> where we're actually using the ev space so i think you have your choice, you have to do your fundamental home work and pick the companies with the best balance sheets and best business models. >> thank you both. we wish you a very happy thanksgiving. a quick final check on the markets this morning before we hand it over to the folks on "squawk on the street. the dow up about 108 points now, the nasdaq looking to open about 80 points higher make sure you join us tomorrow "squawk on the street" is next

good monday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber big breaking news out of the washington this morning. ylan mui, good morning >> good morning, carl. president biden is nominating joirm powell to a second term as chairman of the fell reserve he's also naming lael brainard to serve as vice chair the white house credited decisive action by powell and the central bank in the midst of the pandemic as critical to the economy's rapid recovery in a statement president biden said i have full confidence after their trial by fire over the last 20 months that chair powell and dr. brainard will provide the strong leadership our country needs. the white house also pointed to thei