we have details of which groups and companies could pay more. volodymyr zelenskyy is ready to discuss a new status with peace talks. high drama at the oscars will smith slapping chris rock over a joke about smith's wife's hair a big night for streaming services it is monday, march 28th coming in like a lion and going out like a lamb on thursday. it's 20 degrees here "squawk box" begins right now. good morning welcome to "squawk box" here on cnbc i'm rebecca quick along with joe

kernen and andrew ross sorkin. let's look at markets this morning. look at u.s. equity futures. mixed picture. dow up 21 points s&p down 3 points. nasdaq down 40 last week was a good week for the markets across the board dow up .30%. you did see bigger gains for the s&p and nasdaq nasdaq up 2% for the week. by the way, that's two weeks in a row for s&p and nasdaq let's look at the treasury market at this point, you are looking at higher yields 10-year above 2.5% 5-year is higher than that at 2.26%. we have breaking news this morning. details about president biden's budget proposal. it has big implications for corporate america. white house officials telling me they will support legislation that would prohibit executives from selling shares received as

part of compensation for several years after receiving them effectively put in place a multiyear blackout year after the stock buy back program this is on top of supporting a 1% tax on buybacks effectively they are trying to raise money from buybacks and at the same time discourage them and encourage other forms of investment the top ten buyback spenders from 2010 to 2019, apple, oracle, microsoft, jpmorgan chase and ibm and cisco and pfizer and bank of america the study published last may that study found these companies are spending an increased share of profits on stock buybacks apple, for example, spent 76% of

income on buybacks in the first two years, s&p 500 companies spent $238 billion of stock buyback. huge component goldman sachs predicts this could reach a record of $1 trillion by the end of 2022. perhaps more importantly, as part of the studies, if you look at it, the amount of buybacks and amount of selling, executive selling, that happens into the buybacks they are trying to deiscourage executive selling. if you are tim cook, that is fine you have a blackout period now of three years from the end of the buyback period >> most of the companies are on rolling buyback. >> that is what is very interesting. how you do it. when you look at what is happening and statistically

impe imperically, ceos are buying five times the amount for the companies not participating in the buybacks i know we had a long debate with lots of people about where buybacks are good or bad and allocate capital and the best way to find the best use of that cap capital. to the extent that people believe buybacks are used to up the value of the stock so the ceos can sell. evidence that is the case. you may take apple out of it >> what makes sense is you don't want them selling restricted shares they just received. >> the restricted shares are restricted that has nothing to do with it >> the first part you mentioned. >> idea if you have vested shares you own the shares you own the shares outright. the issue is you as the ceo or management member of the board

want to pursue the buyback program and in the best interest of the shareholders, great long term. you cannot sell your shares into the buyback program. >> that doesn't make sense. >> i think the three years is probably too long. i think a year or two is actually not wrong because you don't want people goosing the stock. the evidence is clear as day that what you see happening is ceos pursuing a buyback and selling more shares into the program than they would otherwise. the numbers are startling. >> at the same time buying back? you need to wait a year to do something else >> this is the question. the question is what is the period if you want to change that behavior. >> explain the evidence that says they will initiate a stock buyback program and sell shares at the same time simultaneously >> the number of shares sold by executives in the process of the

buyback program are five times in certain studies and ten times higher >> simultaneously? >> within days, weeks, months of that period than you will have otherwise. studies are clear. it is irrefutable what is going on in that regard. by the way, i expect that to be the case, too. stock goes up. sell shares. >> investment banker merge and then de-merge. i thought we didn't want cash compensation because of the interests of the company not aligned with the interested of ceo. we forced everyone to take stock. go back to cash. >> this goes to -- >> with all of the back flips with the stock you got and juicing it >> i remember that >> wasn't it during the financial crisis too much cash compensation let's go to stock. they do stock and this

now maybe we go back to cash >> i think the larger -- >> i think -- >> nice compensation you won't do any >> i understand selling share buyback. >> that's what i mean. the only reason it is common is because everybody's compensation became stock to align with the company interests. >> right the issue is buyback >> if you were making decisions for the company and good time to buyback shares, you shouldn't sell your shares. >> that's the point. the question is can you find a better use of capital. the thing that makes a three-year proposal difficult to becky's point about the rolling issue. if you have a company like apple in a position where they cannot go out and use capital so easily and make acquisitions.

most tech companies are limited from most acquisitions the question is can they find enough r & d opportunities that is the goal the goal is how do you take that capital, $238 billion so far this year, and invest in the company. >> if valuations are so high and a company feels the best investment is not thoses t thin it shouldn't be muddled with the ceo. >> shouldn't make decisions where the company is saying this is under valued. we should buy back >> buying back shares. a corporate manager hasto decide the right amount of float. if you issued too many >> the question is buy backs for a long time, buybacks are self dealing a form of self dealing i'm saying -- >> i understand that >> they are particularly a form

of self dealing if you believe that the executives are selling into the buyback purposely because they are goosing the stock. that's the issue >> i understand. they didn't have stock as compensation, it wouldn't be an issue. that's my point. >> a lot of the companies you mentioned are paying not just top executives, but everybody. >> how compensation. >> you want the executives to be aligned with the shareholder long term. that's the point >> have bonuses. then you still depending on stock price. >> i have no problem with -- you can still have people with restricted shares over time. if you want to pursue buyback and the question is what is the window three years may be too long. that is what the white house is proposing. two years? a year >> here is the deal. stock buyback or if you issue a new stock buyback, you can't sell your old shares

you have the rolling situation >> you get into the details. it gets complicated. i think the idea of limited executive sales in the context of buybacks is a good idea >> you shouldn't be doing both at the same time simultaneously. i get that >> how do you get american companies to take more of the money and invest in r & d and other opportunities? >> if it doesn't make sense, you don't. they do -- that's why they're paid a lot as ceo to decide how to allocate apital. >> there are ways to incentiv incentivize. we tax dividends in a specific way. the proposal is to tax buybacks effectively at 1%. i don't think that will change the equation >> if you issue stock, you get a 1% rebate. >> if you issue stock, you get a 1% rebate?

>> you are just trying to manage your balance sheet buying back, you get penalized if you sell, you should get a bonus for selling shares >> it's complicated. >> all you are doing is decide the right float. do i need money? where is the best deployment of capital? do i buyback my shares everything else is too expensive. >> joe, we do a lot of things in the country from the tax perspective that affect policy. >> messa things up. >> we have a lot of ways to depreciate assets. deduct interest on loans >> depreciating assets >> we do a lot of things to get people to invest in the country. depreciating assets is one take loans and deduct the interest a lot of things. here is another example of one of the things that we're doing

you could say if you want nothing to be done -- if i said you can't appreciate assets, you would say that is crazy. >> if you got a lower tax rate, i'd be okay. >> if you couldn't deduct state income tax or agent fees. how many ceos have or say i didn't deliberately sell it is part of the program to -- my retirement plan has these they will say that's why they're doing it. >> all of this -- you are seeing that's what the s.e.c. is doing with disclosure. this is one part of the piece. we will see. it will create a big conversation in corporate america. interestingly, the reason it will create a conversation is not because whether buybacks are good for shareholders.

that's the point if buybacks are a great thing for shareholders, executives should sit on their hands and say i'll wait a year >> they shouldn't be exclexcludd >> there are companies running buyback programs constantly because they are issuing shares to compensate employees. tech companies doing this. >> this great evident story. don't invest in any defense companies to invest in ukraine or fossil fuels to invest in russia two great ideas. >> let's talk tech the company will add shareholders to vote to authorize additional shares in order to enable a stock split. that coming from the tweet posted we will talk more about tesla and elon musk in a little bit. coming up, crude prices.

we have details on the shanghai lockdown. and the slap that derailed the big night for oscars and for streaming services chris rock and mr. smith going at it. you are watching "squawk box" on cnbc [sound of helicopter blades] ugh... they found me. ♪ ♪ nice suits, you guys blend right in. the world needs you back. i'm retired greg, you know this. people have their money just sitting around doing nothing... that's bad, they shouldn't do that. they're getting crushed by inflation. well, i feel for them. they're taking financial advice from memes. [baby spits out milk] i'll get my onesies®. ♪ “baby one more time” by britney spears ♪ good to have you back, old friend. yeah, eyes on the road, benny. welcome to a new chapter in investing. [ding] e*trade now from morgan stanley.

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shanghai began a two-stage lockdown today including orders to work from home the suspension of public transit and ride hailing phase two will apply to the western part of the city from friday morning to next tuesday the shanghai stock exchange remains in operation tesla halted production for a day. by the way, shanghai is a city of 25 million people that is three times the size of new york city. this is having an impact when you start thinking about the demand picture look at crude oil prices down to $109.99. elon musk said he has covid again. he had the first bout in november of 2020 the buzz from last night's oscars it was not about the movies or

awards it was about this moment between chris rock and actor will smith. >> oh, wow wow. will smith just smacked the sleep [ bleep ] out of me. >> my wife's name out your [ bleep ] mouth. >> wow, dude >> yes >> it was a g.i. jane joke >> keep my wife's name out your [ bleep ] mouth. >> i'm going to. >> background. that was response to a joke from chris rock about jada pinkett smith's head she has a shaved head after alopecia diagnosis in 2016 the slap is overshadowed the win

by "coda." the first film from a streaming service. it was the slap that people paid attention to >> i could see jada pinkett smith not too pleased. we do things for our wives >> i can understand the reaction >> too bad i have seen "coda" twice you haven't seen it? >> does it change his -- >> "coda." >> no, does it change will smith's hireability? do you see if it changes the dynamic? >> it was inappropriate to have the violence you can understand when a spouse is wronged the sense of anger i feel bad for all parties

involved i think chris rock decided not to press charges >> he still could. >> the best supporting actor try acting with sign language. i have seen it twice my daughter, we showed her saturday night she was weeping from it. such a great movie i don't know if that is what movies are intended to do. i saw "power of the dog" as well a beautiful film jesse clemons. that was good. the cinematography they feel bad about giving it to a fill m like "coda." if a movie can affect you. >> i have seen the trailers. i haven't seen any of the movies. >> i'm not going to give it

away the father and his daughter. she sings if you never heard >> it is personal for him. >> the look on his face. it's amazing i have seen it twice it's easy. >> i have to admit i didn't watch any. >> i missed the oscars and missed every movie in the oscars that speaks to where the movie industry is right now. >> wanda sykes joke. i have seen "power of the dog" three times. i'm halfway through it i feel asleep. i realized i missed an hour and a half it is really good. >> you got up early. >> exactly. coming up, crypto regulation could be coming to the uk. we're back above 47.

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uk government revealing a plan to regulate crypto markets. brin britain's finance minister will announce in the next couple weeks. the source is saying the framework will be favorable for the industry and provide legal clarity. in the field for the final four is set and full of blue bloods duke and north carolina in the rematch. remember what happened to coach

k's last home game north carolina pummeled duke now they play in the semifinals. villanova, missing the guy who had his achilles tendon severed. villanova will play kansas those four schools have won half of the last 14 championships both games tip-off in new orleans on saturday. >> saint peter's. >> i have to give a plug to the women's final four the last ten second steal by north carolina state beat notre dame louisville was strong. great games tonight. connecticut and north carolina state and louisville i loved watching it. you know, a lot of commercials running that say the greatest buzzer beater that you didn't see. a blank screen 40% of the athletes are women.

10% of the coverage. once again, draft kings doing positive things for the world because i was watching those two games. i was on the edge of my seat i won. >> i love you won both of them, but with points. >> i had to do points. >> it takes the fun out of it if you win, but your team -- >> i had south dakota state on a parlay with louisville it was fun it's fun it's $5. i don't want to hear anything about it i don't want to hear it. it's fun i loved it >> yeah. saint peter's. friday night >> everything was was winding down baseball season april 7th >> assuming. when we come back. a new call on rate hikes from citi indicates the fed could get more aggressive.

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good morning welcome back to "squawk box" live from the nasdaq market site in times square. less than a point on the dow s&p down over 2. nasdaq down 28 points. i don't know what we're waiting on big number on friday and obviously anything that happens geopolitically are we getting inundated with too much on ukraine? we don't talk about ukraine enough i know you know, at this point, i don't know which way we should head in terms of if you do agree to a

cease-fire and some peace deal cede certain reegions to putin >> zelenskyy acknowledging that at this point? >> the eastern and southern regions they keep and declare neutrality you have biden who speaks and getting flack for it off-handed comment any one of us could have made. just watching what is happening. >> it complicates matters. trying to get to a position. >> that's not what you want to say. >> reach agreement i can understand how joe biden would say that. >> understand like will smith. >> i understand. >> when president trump said things off the cuff and now president biden making things off the cuff and trying to make the position of pulling troops back from ukraine. >> i learned over the years. i worry about my wife first and

then repercussions afterwards could be serious >> you are not president of the united states. >> i know. i'm not talking about that the other thing that will smith did. i might have -- torpedos be damned >> there are better ways the credit, by the way, belongs to chris rock. handled that about as brilliantly as anybody in that situation. >> what do you think will smith's wife thinks at this point? >> at one point they are not together now very much together >> you have the rest of the world and you have your wife >> sure. i think it's a bad look all around >> it is people lose their temper, right? then he apologized for it wall street is expecting a

50 basis point rate hike at the federal reserve policy meeting in may citi is making a provocative call now saying they think the fed will hike four times in a row at consecutive meetings in may, june, july and september and october. and it is behind the curve in fighting inflation joining us is the author of the note veronica clark economist at citi. veronica, are you thinking the fed is woefully behind or changing thinking and going start making up ground rapidly here >> it is really coming down to what we think inflation will look like. the market will expect the 50 basis points in may. we are not seeing any signs that inflation data after that may meeting will slow down in any material way we have supply chain disruption and commodity prices rising.

if you do 50 in may and the speakers in the last few weeks say they are open to 50. why slow down at that point? it seems they will keep moving at that 50 basis point clip. >> maybe the one thing preventing the fed from signaling anything like that at this point is they want to wait and see what the i hnflation numbers bring and how the market reacts the economy is motoring right along right now. even janet yellen told us that she doesn't see signs of weakness anywhere. if the fed raises rates and higher energy costs and inflation continues, expectation is it could hurt the economy at some point and maybe less willing to move in the face of that >> yeah. we would agree we don't see risk to growth for the near term. the next six months or so. you know, market indication is worrisome. if we look at the economic data

that tends to lead recessions. the ism survey or jobless claims everything is pointing to strength in the labor market we could see slowing later in the year i would note that is a little bit intentional. you know, what policy needs to do right now is lean against demand that is too strong relative to supply >> if the fed does what you are now predicting, this huge number of hikes you are calling for relative to what we anticipate, do you think it changes the inflation picture? >> i think that is the hope. that is what is in our forecast. i think that is what the fed is hoping for we do have 50 basis points at the next four meetings that gets to the long-term nominal neutral rate we expect to slow back to 25

three more 25s for next year. that is because inflation is moving in the right direction. if you look at core vcpi inflation. that moves to 4% by the end of the year it is moving in the right direction. >> your call is extreme in terms of what other economists on the street are predicting. if you watch the bond market, watch yields it is not out of step with what investors are predicting >> yeah. i think we are surprised by the reaction on friday really the market is seeing what we are seeing. even beyond the last two weeks since the march meeting. we had a shift from the fed. they are open to doing larger hikes above neutral. i think the market needed someone to say it. that's the direction we're headed >> just in terms of the other

issues out there ukraine. the situation has changed the inflation picture because of oil prices and wheat and grain and metals across the board with commodities. you are looking at the spikes. if there was a situation that was resolved in ukraine, do you see that dropping or the horse is out of the barn at this point? >> it is hard to say what happens with commodities from here commodities team is expecting a supply response on prices to come lower by the end of the year we really haven't seen this play through with inflation data yet. we get a headline inflation reading for march in a couple of weeks. it should be big a lot of this is already passed through to core inflation. expectations are really high because of it. >> veronica, thank you for coming on today. we will watch. it is a bold call. we will see what happens

>> thank you for having me. coming up, details from president biden's tax plan including the 25% minimum tax rate for the wealthiest household. we will talk to robert frank about it and later, muhamad el erian will join us a reminder, you can watch us anytime on the cnbc app. this is the new world of work. each day looks different than the last. but whatever work becomes, the servicenow platform will make it just, flow. whether it's finding new ways to help you serve your customers, orchestrating a safe return to the office...

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welcome back to "squawk box. president biden taking aim at the wealthy with the bear minimum tax. that numbers coming out over the weekend. robert frank with the details. robert, the debate is just beginning or is it continuing? >> reporter: it is continuing, especially when you add in the great reporting on the share buyback. the white house with sending a message to those at the top. the tax is called the billionaire minimum income tax it applies to households with $100 million of net worth. that is the top 20 households. the first part is a minimum tax of 20% minimum tax rate they pay a tax rate of 12% currently. owe additional 8% on income. it redefines income to include unrealized capital gains they pay up to 20% on the

increased of value of stock or business if they never sold. they would have several years to pay the tax. the stock goes up one year and down the next, they get a credit against the future payment let's take an example of mark zuckerberg that stock has been all over the place. worth $128 billion at the end of last year. 2021, he would owe 20% of that or $25 billion of that total as a one-time tax going forward, he only pays for the annual change based on the stock price. this year, he is down $41 billion. he gets a credit of $8 billion leaving him with a $17 billion balance with the irs if he ever sold the stock, these payments would be credited toward his future capital gain this is more of a prepayment of capital gains than additional

wealth tax the white house says the plan would raise $360 billion over ten years. half of the revenue from america's 720 billionaires. most of that from a handful of tech guys who accrued huge gains over their lifetime. >> robert, the question here for mark zuckerberg and i don't want to claim he is cash are poor for somebody like them with the amount of shares he has, wouldn't he be required to sell a huge component of shares in year one irrespective of years two, three or four to pay for the initial outlay am i wrong in how this works >> reporter: only because the white house says you would have at least for the first one-time lifetime accrued gains payment you have ten years to pay that presumably, we'll get the details later today.

10% of the total tax bill every year that would be fairly manage able if you borrow against your stock and not sell a significant amount for the annual payment for each change every year, you have five years to pay that. you have ten years for the first lump sum and then five years for each annual change payment they spread these out enough so they don't have to sell stock. number two, create a payment stream to balance against c credits in down years. >> what is the sense of what folks like senator manchin feel about the particular version of the bill he has been against wealth tax over time, but open to the wealth tax depending on how it is configured? >> reporter: this is similar to the proposal that the senator proposed last year manchin initially saying he was supportive of it and then had doubts about it because you were targeting a certain group of

people more recently, he is open to a billionaire tax. reports over the weekend he thought this particular plan was quote convoluted we have to wait. ylan mui will have a report later today to say what specific congress members have to say about it it is complicated. it is complicated and hard for people in congress to understand this >> all those tax proposals went nowhere. it is almost april we have a jobs report on friday. it is almost april november, 11 minus 4 we have six months i don't see it i don't see it robert, i don't see it do you >> you have to implement the plan and create an entire parallel tax system that tracks unrealized capital gains the irs is strained with resources. it is hard to imagine they could do this unless they get massive funding and create entirely new

shadow tax system where you value both liquid and ill-liquid assets >> do taxes and death -- so many things that are doable >> i know, andrew. >> unrealized makes it that much more complicated. >> initial payment they make starts when they are worth $100 million or officially a billionaire? when do you land in this pot >> you land there when you are at $100 million. there is a graduated. >> realized or unrealized? >> unrealized. yup. that's the point you have to then not just calculate adjusted gross income, but calculate entire net worth it is mostly private businesses. you have to tell people value private businesses to see if they fall into or out of that group. >> i have to check.

>> accountants and lawyers will love it. >> yeah. >> not hitting any of us i don't understand. >> i have to check >> robert frank, i appreciate it >> market year i haven't looked at everything i have to check. >> put it in your draft kings account. >> $400 now. i told you that. 150. oh, yeah they made. >> they send a 1099? a form >> write off >> i don't want to get involved here >> does draft kings send a form? >> i don't know. that's a good question coinbase -- they did a pretty did job. >> they should have to send a form >> yeah. >> when we come back, oscars made streaming history last night, but overshadowed by the altercation with will smith and chris rock rahthehealut about t flo stig aad

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not just at award shows, but comedy clubs do you have a right to go up and slap someone the answer is no because the academy didn't do

anything with will smith in real time, they let him sit there and accept his award it is a debate online. >> i know how that plays out that qualifies as assault. it could have been law enforcement which actually been involved it does overshadow a lot of things we like to spend more time on. sara, streaming. netflix pioneered it it had a great offering. apple tv plus gets the first -- i don't know i have seen both movies. i love them both commercial commercially, i thought "coda" would win. every couple years a film does what it is supposed to do. move you i'm not saying cinematography

and "power of the dog" is not. >> going into the night, i think those were the two contenders. we knew a streaming service would likely win we have never seen a big tech company come in and win best picture for oscars it is historic for apple entered the streaming wars in 2019 apple tv plus launched years after netflix and amazon launched streaming services. netflix first received an oscar in 2017. they had five movies nominated for best picture apple, fuirst time nominated. they took home all three awards. historic moment for tim cook i'm sure he is reveling in this. this is the big coming out party for streaming after years of knocking on the door trying to

get in >> what do you think -- i think ratings will be above last year, obviously. we have seen the unbelievable decline in the last couple decades in viewership. is it possible to salvage this night? it will be better. >> i think ratings will be better last night than the past few years during the pandemic. there is a downward trend for all live events here it will not end because oscars had one good night last year, oscars came in under 10 million viewers i expect them to hit the 10 million threshold for last night. i do think last night's streaming on abc.com was notable. if that is something that a lot of people engaged with and interacted with, expect oscars and other award shows to think about streaming content moving

forward. we have seen ratings decline throughout the past few years. they don't seem to get better. >> they have to have an audience there are so many things you can push into it is it okay to say a joke we live in a society where we have gotten to the point we don't want to hear a lot of things you are supposed to sit in the front row and take it? his response is off the charts inappr inappropriate. it's one of the things that made the shows watchable in the past. you want the comedians when the comedy hits a vein and hits somebody in the room, what happens? my guess is the other awards shows will want to capitalize on this and have something funny. >> this is not the first time that comedy -- a lot of things are canceled a lot of comedians like the way society is headed.

>> maybe i think our table may be different i don't thinkheaded.q■ >> i don't think people are on will smith's side. >> xd■]no, i don't think so eitr i think -- >> looking at thet(■question -- >> but ix■ think -- >> ifñi■it's -- >> it's not the first time --ñr■ >> now it's to thex■ point -- say all sorts of things about the performance in the room. >> then he wasn'tqinvited back. >> cheryl, let me çs&■you.ñ■ how many people sawq"koda" in theqf■theater? that's weird it could almostr an academy -- you almost have to rethink what a movie çó■s. >> it onlyq■ brought in ç■$1.1 million. that's not a lot of#r■oney oscart(■nominees wereñr■ones th werex■i■ making millions and millions and millions of dollars

in the theaters. i think it was the top five of the best ten oscari■ nominees we which is absolutely huge ■■it more people areñi■watching thin on streaming, but one of thei■ on streaming isçó■p■$■■■rama,ñrm tendsñr■to watcú■■ bestw3■pictu odds it didn't shock me they ended up winning the best picture award,÷■t■ but, quicklyi just want to go back to what you're saying about coulda comedian host this r yes, a comedian will host thise■ again. i don't thinkñi■ itok will disrt the awards forever, but i think it's a day of reckoning around the u.s., free speech,w■ comedy. look at whatç■?■■■d■happened wie chappelle s■/ netflix. fights carry out, but i don't thinkñr■fjf fundamentally this s &há% america. >> we're in mid-change already,■ and that's another çó■xample.qv■

thank you, sara.ñ■ sara fischer. it is justw■ after 7:00 a.m. on the east coast, and you are watching "squawk box" right here on cnbc.i■i■ i'm becky quick along withf■ joe we have another big lineup in the next few hours we're going to beñr■d■speakingl dr. scott gottlieb,fá anthonyñi■ scare ñbp ■r■t&háhp ■hc scaramucci,ñithers. the nasdaq downxd■by 6 m1ñ■the dow is up by 0.3%, but the s&p was up the nasdaq up by 2%. that the nasdaq and s&p have been higher. >> let's look at thex■ñ■ movers.

dom. >> you have to look at what's happening with tesla there are a multitude of headlines. there's one in particular that positivity tesla shares on the rise this morning to the tune of around 4% or 5%. if you take a look at thei] tes shares moving, it isñ■ aq■ signt perhaps there is a littleñi■bitf talk with regard to the shangha■ closures that they're having remember, they're lockingçó■down shanghaiq■q■ñ■ñ■ for covid they have a tesla plant there.xr because ofj■ tit elon musk hasñr■fxd■covid. that's another headline. official account onctwitter, vote at its annual general meeting to approve more shares in v)■p■to possibly facilitate a stocke1 split down the line.r

share's up çó■.5%. coinbase showing gains to a similar degree, abogt■ 4% or 5% in thee■1ñr■premarket trade. this is on a report from a local brazilian newspaper thatl■q■ sa thate■ coinbase could be close closing in on an acquisition of 2 tm that's a holding company that controls latin merge'si] biggestq] crypto brokerage again, if that happens, that could give coinbase a bigger hold or at least presence inq■ e latin americanq■q■ñ■ cryptocurr world. also because crypto prices generally speaking have been on the rise in a very dramatic fashion over the last several weeks here, certainly since right beforeç■ the warx■ between russia and ukraine, if your at bitcoin prices right now, 47,221, 5%x■ gains for bitcoin ether prices up s■■■%9 as o■3■■■

3547 the reason these are both important is because these arex■ the two biggest cryptocurrencie trading above their moving day w average. before i leave you, andrew, check this out of what we'reçó■seeing remember at the record-highs over the course of the last year here, wex■ were just around $1.3 trillion in market qapital, bitcoin. we're closer right now toñi■jus1 around $800 billion according to market cap but it's thislp right here, this move since right before the war we're up 37% in bitcoin prices since the day before russia invaded ukraine. aqlot of■■ñ■ that near term positivity carrying through bitcoin and other exchange prices as t■well.c i'll send it back over to you. >> it's interesting to see the companies that have buybacks

iñi■don'tr believe yet that biden's proposal will come into play. ñ■don't either. >> whether you think this shares will be under pressuree■ or the will be any kind of indication,■ to washington right now,t■ not u personally. >> no, i amfá not. i have familyñi■members -- anyw, as we've been discussing all morning, thelú%■den administration willo$■÷■officiay release the 2023x■1 budget later today and it contains new tax laws we'll beu. hashing thí#■ aroundo theqrest of the show. >> absolutely. the white houseñi■(■á saysf■ al■ bills in the president'sç■] bunt will be toward corporations contributing their fair j■share. today president bidenqwill propose raising taxes on the rich for what the white house is calling a billionaire income tax hit those worth $100 million or more with afá minimum 20%jf taxn

all their income including unrealizedc■ xd■ain. this would raise an estimated f■ $300 billion over a decade only 1.03% of theu households would be affected and oechblt■x■ half would come from those wort■ more than añi■d■billion dollars. the white house wants to put new guardrails against ceos buying back stock.i all of thate1 money is also crucial to the administration's pledge to not onlyq■ pay for new investments but actuallye■ redu tdç■ deficit the white house said its budget will showxd■the budget falling biggest drop on record andx■ç■ dollars over the decade. fis■ñúutátj■u)(■&■ty is one of the three key priorities inlp t president's budget the other two aref"■ñ■safety and security and buildinge1 a better merge. around the revenue budget and we'll get moref■ later this morning. back to you. >> one of the questions i had

program and thei] proposal arou c - of the buyback, one, the 1% tax, the other is trying to effectively doesñ■ñ■a■■■ buyback +■■■rograms. but the 1%ing is that a huge part -- how much money do they think they canñ■ direct >> i don't know the answer to that, andrew, but i know3■■■thii something the democrats have been kicking around for a long time this is a frequent scapegoat when you talk about the ways companies try to boost their own consumers in the dust here4■á■ n corporate america and the average consumer is going to be a common refrain, y■3vplp think, ájjs i think you'll hear it around profi profiteering

worked out as you talk about thet(■ billionaire income tax,ó1■l■ democrats are divided over whether or not that's a good lpx orw■ restrictions, i t need a lot of socialization inñ■ congress. >> all right thanks.ñ ylan coming up, much more on alljf of this, the presq■!■q proposal we'll tell you wha the country's richest people and dr.lp gottlieb, what happens as money runs out as other parts of the world are "squawk box" will be right back. y■sáay tuned guess it's on maggie. should we have another one? talk to us about retirement today. feel comfortable about tomorrow. massmutual.

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some new detail this morning about president biden's budget proposal that has big implication,x=i■■corporate america, legislation thatçó■wou■ prohibito■ executives from sellg shares as part ofñi■their compensation if -- and this is important --ñ■ it effectively becomes a blackout period that would be put in place for multipleñ■ years if they engagen soe■ñ■j■ effectively (■z■that hs compensationl■ invested toñ■t■ ,

if they engage in a ñ■3■uyback program on behalfjf of the company, they would be limited fromr number of years, possibly as many as three yearsñi■apvq)■that buyback program. i imagine, if completed. it would become complicated for thosexd■withñ■m+■■rolling buyba, microsoft, jpmorgan chase, wells fargo, ibm, cisco, pfizer, and bank of america in that order, ■■d that's according to a yt( by the roosevelt institute ájq" last may.lt institute they found over the past decade these companies are spending an increasing share of theiri]fá profits on buybacks, as you can imagine, applee■e■ spending 76%] year ■■have spent ñ■bs goldman sachs predicts they could rel()r a record $1 billion by the endf■ of 2022 youxd■takehem out of the market,

>> i would think one of the instant e■reactions wouldxd■be q companies would just up the))■ dividends, right because if you havefá thate■ kif extra u■■■apital, you can either shareholder orf■o■ -- >> it becomes p■ it wouldn't necessarily drivefát to r & e1d it would drive it toñ■x■j■f■ç■ and, sure, that gets taxed. >> di■ in añ■ different way there are studies that show that moneyfáqdividended out gets divvied in a way buybacks don't. to discuss and debate this, t■r seat is here thank you both i'm goingxd■to jim xfirst. 9

this plan.s■hìá■p &hc% maybe he does. i'm curious ifq■ you think it makes sense. >> i hear something like this. i think aé/■t wf!■■■problem are we trying to solve here.h■ is the problemp■■■trying to rai revenue? i suppose that's a problem are we trying to signal certain political priorities maybe we're doing that but i donñ■see the actually economic problem that th!■a■isi■ solving.dz"érhink there's very. bu somehow negatively impacting corporatefá decisions, that it's making its more÷ñ ñ short-term-oriented. you mentioned that list of companies earlier. pretty successful companies on i tend tot(■think this is more about making numbers work inq■ e budget and signaling priorities rather than addressing an (t&há■0■&hc% >> jim, there s i i■think, irrefutable evidence that overqo look at executives selling their

shares, that the amount both in terms of volume andñr■the timing materially higher, i meanñi■3■oe not more than thatç■x■ in the context of buybacks relative to companies that are not pursuing by the way, it makes sense you woulde1i] think people would sell into añr■wnç■buyback situa■ because it isokxd■selling and propping the stock higher. that's a data point, right then youo■ need to -- you need connect that to core corporate performance, that, therefore, there arefá all these investmen they're not making jim -- >> same story ñ■though same story if you look at the studies, you actually see the companies that pursue buybacks grow more slowly, oddly enough, and maybe the three years prior.

>> toe1xd■finish my second ]÷■ then you have to say they're, therefore, passing up lots of i thought the broadçó■center le■ macro economic theory here is we're in aj■ period of secularfs stagnation where there aren't■k good investments so what arexd■you asking them to do what are the go■e■] investwerás you want them toi■ invest in you can't have them both ways. >> ñc3donna, what do you think u■ue making my pointe1 actually the fact is that this phenomenon ofl] corporate buyback is actual increasing over time you made thei■ point earlier.l a trillion dollars, thee1 estimates arexú■uáu■r■this year, and so the goal here isjf to try tol■ encourage goode1 behavior d discourage bad behavior. that is, behavior -- >> donna, areñi■we trying to -- >> -- and youçó■wantt■ñ■ executo put the money back into their companies, to invest in r & t■d, the work jfforce, which, in tur

invests in the economy. >> donna, here'sç■ the question, and maybe we needt;■s■to separas dollars, which, by the way, would encourage o■buybacks they get taxed at a different rate that may be what we're trying to do here. are we trying to changet(■ ç■■■eh behaviors? should those things matter to jim's point, you look at the best play for returnf■ and (t&há■p &hc% what do you do with a companye1 who doesn't know a better place to invest their money thanl■ in their own companies. >> right it's possible that with oneq policy you can do multiple things, and so i think with this policy, thee1 idea is that -- these are, you know, top tenñ■ your screen that are good companies. investh■■■in your work force.j♪■ bus and so i think that, youl■b■■■k

you can both -- and also enc$m■ that says we're not going to just keep repurchasing stock, .■ f putting it into the company and into the work. i think that'sw■ a goodnpgoal, d ñ■i >>mu)■ going to give you a more complicated exam)■ the most complicated example is■ apple. they throw out a huge amountx■j■ a huge amount of ñr■ash. it's a5■l■mind-blowing how muchh this company has they could -- you could argue maybe apple should be moving their manufacturing and production to the united states and other countries i■l■outsidef chinaer, which, by the way, they oz■g in play. clearly they can't buy other companies, bylpv a anti

maybe its best use could beu inside the company. >> well, and ■■ guess i would argue the bestq■ use is probabl■ inside the company, inside a really thriving company. i meanf■ apple is a top example■ there are plenty of others, though, that are not investing in their -- in thu manufacturing, in their domestic manufacturing, whichx■r could help our economies that are not investing in their work force, which could help our economy. so i think there are ax■e■ lot good reasons for thisñr■proposa plus $125 billion that is estimated it willxd■raise. and then add that toe■ what we haven't talked about yet, which is theç■j■v proposal to make su that we're taxing at ao■ minimum those who make overñr■100 or ha over $100 millionfá in income. ñ■ lower the deficit by about e1$5 billion over ten years

>> aree■t■ apple and jpmorgan ac others, is it that they haven't invested thisxd■their workforce? that they have anw3■undertrained work force. >> jim, i would actually make the argument that a lot of these companies restricted shares as at■ payment form for their ñc3i■employees, broad-basedxd■blows. (t&há■p &hc% maybe that's why they're alwaysq buying it back maybe they can do it in a way that's more advantageous. >> i think that's a good point kd8- >> not that i'm in favor of it. >> pardon? >> not that i'm in favor of arguing for f■q1ñ■but i'm trying to look for ways thatr kind ofw3■makeñ■ anx what they're doing, and that's the only thing ix■ould come up with. >> listen. i get it ge

they have very specific things they would like the companies to invest in. but,x■ again,r . c r & d.l■ ■(t1 o all the companiesb.■ we've been mentiowo#■ obviously invest in their work forces. so i'm sorry i'm sorry, what is thee■ issue what is the problem we'retryin to solve?eìá■p &hc% >> jim, take the tax piece out do you agree executives é a into theirq■q■w■ own buybackç■ m >> listen. i am veryw3■skepticalçó■ofi■ pls that sort of micro manage corporate behavior in lieu of an actually problem that has an actual adverse consequence i understand that we're very eager to signal thatñ■ billionae wealth is out of control even though it seems to me that elon■ musk and jeff bezos and billñ■ gates haven■■■been pretty good o allocators ofe1t(■capital.

another example of what problem are we trying to solve if it's a deficit reduction, (■x■v trillion on a planx■ that'st(■ag several points toñi■inflation (t&há■p &hc% >> jim, we've got to leave the conversation there.u donna,í■ñ're going to leave it there. it's a debate i'm sureq■.■■■we' continue; wek to continue it thank you. comingx■r■p, corporate stors that arew■z■■■making headlines,■ we're watching tesla the company isñ■r shareholders to vote in order t■ enable a stock split here are the futures at this hour you can see we turned in the bit on a monday. "squawk box" is coming right back >> announcer: "squawk box" is sponsored by bitwise, the world's leader in crypto index f■n■m9ñ

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welcome back among the stories today, shanghai is enforcing restrictions in order to control the omicron variant. the city will be locked down in stainlesses over the next few weeks. qhay high is one of china'st(■hs foru manufacturing e■ie effects around the world we'll have much more on this i

story. tic york city. apple isi■ reportedly scheduled to scale downqd■■■ production of its iphon■1 xe the service says that apple will cut plant prod next quarter because of weaker than expected demand. >> and gasoline prices are still high, but they havee1 fallen in recent weeks the average price at the pump has fallen by 6 cents a gloon over the last few weeks survey it's not a lot to hang of your hat on ago. es î■■. tha■k■h!ecause of the shanghaii■ lockdown story.ñ questions about demand, not just supply "squawk box" will be right back.

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security (t1 o >> i think this is somethingç■ that's reallyqsomething that investors shouldle doing:v%j■u■ pos■ increasea■■■confidence in their business for the restñr■of the year stock splitsf■ have been kind of rumored for the last four or five months. the fact that they put itnb■ out there, i think this is going to be a massive catalyst for the stock over the coming months.f >> last5a■ time it did pretty wc i guess.x■ when was that? august of 2020?t(■ it really should.ñi■a■(t&há■p &% but it doesn't it gets more people in involved, and typically a lot of times you see the reverse happen with the reverse split. i mean the -- the"■u■t■ went up for other reasons backñ■e■ in x■ obviously, but it was in the midst of a ñi■b■five-for-one sp

>> yeah.q■ and since then stocks have been -- look, what we're ñ■seeing, y and now we'll see it again with tesla, which will be their second stock split in!u■ a few are getting stronger i think that's what's happening with tesla because of the manufacturing footprint. and there's a fundamental reason that i think the stock goes higher ñ■o that'sñ■ also a tea leaf in ter increased confidence in thei] business throughout the rest of the year they're not going to to do a stock split ifñ■ they feel like■ things are super negative. i think you back to the lastt■ one, and that was obviously au massive start of what was a historic run. >> i have a question for you about elon you know, we're talkingcaboutxd■ covid stuff this morning, but a j■ you saw on twitter over the weekend, he effectively said he

wanted to create a new version of twitter if he did that, it would probably be his third or fourth company while he's thec■ ceo of■ tesla. how longw■ do youi] think he's g it matter to you >> he's single-handedly the reason whyt■ tesla is where it . i do not see him stepping down as ceoñ■ for at least probably another five years because i think musk's view is really about ramping product,e■ñ■ facts around the worlddó gettingi■ cyr truck launched, and, ■>ourse, with thex■ñ■e■q■ motto of why, become more involved in the business than less i think it's actually the x■ opposite he's doingq■ so mñ■■diftepentia■ strategic initiatives. he'%á rather more involved rathe than less. what's more important is the

arms race. >> dan, there's been a long debate how long he would stay in that role or whether he would be the chairman or chief engineer. >> he's lonely. >> i saw that comment as well. >> he's lonely you get into your work you getçó■into >> yep. >> i saw that comment as well. danr(■thank you.q■ does the audiencejfxd■know what we're talking about? does the audience j■know they may not é he'sq■ lonely snoopd he doesn't want to extend the life of anyone anymore because of politicians.w■x■e■e■t■x■ we'reqgoing to talk to dr. % scott gottlieb what iteaor mns ■ americans next plus,xd■áfáxd■mohamadmad is goik

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coming up.t■ dr. scott gottlieb plusxd■chairn kevin hassett is going toxd■d■dn

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lockdown in two years apparently in order to conduct mass testing and try to control a new out■he■ shanghai, a city withw■ more than 25 million pe'■)■.ñ@r■t&háhp ■hc eunice yoon joins us now with more on the situation. hi, eunice. >> hey, joe. yú2■ckdown is going to be carri out in two phaieá■ east side of5■■■the city is goi to be shut, and then the west side is going toe■ be restricted until the following tuesday. so the ño■lockdown area'sux■ res are going to be required to stay at home unless for medical orqqk public transport will be suspended. nonessential companies and factories will stay closed the staged lockdown comes after shachc highqauthorities upj■ñ■cl this weekend had insisted the

city would not be locked down economic importance, in order to tryxd■to minimize the costi■ as■ been mandated by president xi jinping.x■ officials say?;■ shanghai will prioritize cargo trade the ñ■port, the airport, rail lines will stay normal highways will remain open with covid testsñr■required forw■ the traveling out, such as drivers.j the shanghai exchange won't be affected city authorities say the inspections, xd■hough, jeff goì% too f■large-scale for theme■ to maintain their original plan,x.■ which has been this rolling 48-hour covid tests and minio■j■ rew cases and x■3,450 asymptomatic cases. becky? >> you know, the numbers are that 50 new cases would lead to a shutdown of a city with 25 million people do we believe the numbers? is this really what they're

doing? >> well, it's d that's one of the reasons why they'req ñ■conducting this mass testing because theyñ■ say that theyi■ suspect thereñ■ aret■ a t more infections in the population there>!■q lot of questions as ■% to what they'rei]t(■going to dol they detect many more people soe■ we've been hearing more hospitals being setñip, venuesì% being cleaned out, schools getting prepared to take in a lot of those more mild cases >> eunice, thank you we will c'n■inue to getçó■q■upd■ from you this week a very c/ eunice yoon. in the meantime let's bring inw■ç■ dr. scott gottlieb■ó■ he's a former commissioner andñ■ cnbc contributor who serveslp on boards of pfizer and alumina hearing this, the idea of a 25x■ million-person city being shut down at this point, it's kind of hardç■ to wrap your head aroundt this stage of the game.q what do ?/0■ think isi] happeni

in china >> to your point when they say they have 50t■ xd■ases, what th report are symptomatic cases those cases are those presented with symptoms. they have many more cases. they're not including people who become infectedçó■who aren't presenting for advanced ç■care you can+ assume those 50 had to present for care and haveh symptoms undercounting how many infections they have 5ñ a city the size of texas. i think they're going tox■ have very hard time of containing this if it's gotten out of control in that city, and there's some indication ita■■■m thisç■ is always a difficult proposition for china toñ■e■ maintain this zero covid policy. they didn't use the timing well. people over thep,■ agel■ of 65 ■ boosted, isn't vaccinated. they haven'tu■■■deployed vaccin in then■■■]xd■older i■population the vaccines are prove on the b■

ineffective against omicron, so i think it is going to be a very different circumstance there. >> i heard eunice talkinwdwhisl■ morning there's now some conversation among chinese people on social media and other places questioningf■ the ?;■ide■ western vaccines because they think they're more effective than uomicro#■ the western convenience mayp,■ sick, but it doesn't prevent you from getting omicron what can theyq1 do at this point they haven'tq■ taken on the time to make sure they're better it. >> well, ñ■ook, someone who has received the vaccine here inú united states and has been boosted and has had a recent booster within the last four to six months, those vaccinesq■x■ reduce the risk of infection and transmission not nearly asqmuch as they did variants, but they do provide some meaningful protection against the risk of infection with omicron sox■x■ it does buy you some

reduction to risk of advanced spread primarily with the they're providing right now, it'sz■■■prevention against seve infection and hospitalization. but as we've se■n■ with other countries like hong kong where dae cease, when youqdon't vaccinate your elderly,u the mos d8up havingfá very such stan ch impacts from the spreadr virus. that's, in fact, the risk. sv been vaccinated. certainly notxd■boosted. they didc■ haveui■ñ■ a chance to the mrna vaccine they had license from biontech and ha■■a chinese manufacturer set up to manufacture the vaccine for thatv they made a decision not to do that and not to deploy it. iñi■don't really understand why. it's not clearx■ why they did don't that they're working on their own i4% vaccine, butp■■■it's not goioex■ be in time for thisxd■wave if ty

face au■ñ■ wiv ofqinfection. >> scott, two questions. q■about 20 days until the april 18th date in which case airlines ma/■ --xd■we'll s what happensx■ -- remove masks h not. what would you be recommending in terms of mask mandates on airplanes? >> you know,x■ myxd■view was th should liftñr■that requirementj airlines i had figured as we talked about %=zez■time and would lifted theyw■ seemed to have backed in this mid-april deadline.x■e■ it was originally set for march. i thiwv■ if we don't haveca wave of ba.2qinfection in april, they will lift that if it kind of levels off in the next couple off■ weeks, which ty may, i thinkt■ if infectionsi] go up through to lift it

>> that's what youl■ would do? not what they would do what you would do. >> i think if the wave of infections go up, i think it's it with that kind of a backdrop.ç so you'd probably extend it■1 a month. that said,w■i■i'mfá not sure we òe.e■ç■ but notok dramatically it could be that thise1r e e brief wave it won't be a big wave against that sv4backdrop, i thi■ they continue to liftxd■it. >> dr.e■ gottlieb, thank you. other stuff we'd like to talk to you about, bute■ we'll have you back very soon. coming up, former counselor economic chairman kevin hassett on the possibility of añi■(■ billionaire's t#jj ■(t&há■p &hc% the x■economy, and much more we're coming right back. ♪ ♪

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cnbc has learned thatt(■a n tax would targetñ■ ñi■ó■illiona. ssea household. paying less than w3■0% they would owe añ■ payment to mt theñi■minimum. to discuss this isç■x■ kevin hat who sevd ase1 chairman ofñi■r■as urpd president trump he's now ax■ distinguished fell at the hoover institution. ixd■said that before

i wish i ha- >> do you think i'm a distinguished j■fellow i can dream. kevin, i don't know whether this happens -- ■!■ñ■it's on income i don't know if someone with $100 millione■ doesn't take current income i don't know how it works. i guess it would beñi■with theñ unrealized capital gains said of things this is the latest it's not going away. i don't knowl anywhere what's your solution for getting at some of the large gains that have never been tacked by the here is there a way to do itjf that u think is more palatable or more easier to do >> right yeah for sure you know, the outfloww3■tax is eventually coming and if youñ■ move towardqsomething like a sales tax orñ■ value added tax nationwide, then what happens is, you know, money is either worth nothing to aq■ riqh"n%tájc or worth something when they consume it

you cançó■tax them when they bua yacht or buy a car and you cantc have that tax be progressive, and there are a lot ofr models that show it's a positive gr. that's what it(■would e■do. >> you figure they can't help themselves because if you're really cheap and, you know, if you're a real &há% >> like you. >> like you. >> then you leave money to your uáic kids and they go out and buy the yachts ■■■eventually the taxpayers get their tax. >> okay. you don't thinki] anything like wealth tax ever goes anywhere on -- in reality? we talk about it a lot why do we talk about it so much? is it just throwingxd■a bone t$t >> the progressive left wants to do it. there's the fundamental problem, right? right now ñ■[■let's just say if put your money in long-term treasuries, you get, what, 2%r yield,q■ 3% yield?

it depends on whether you're going for any risk at all. if it's a 2% yield if you have a 2% wealth tax,lú!% then that takes all the yield. so you can say that a wealth tax 10 on capital incoming and so that's really the problem. there's aqtiny little wealth tax when you think ofñi■the basic income so you have f■100% tax on something, things adjust and so on. >> we've seenxd■obviouslmi the deficit coming down because you're not going to match what we5■ pen years during the pandemic, soi] that was -- i don't know it's good. and inb■ guess you can say we're doing that and take some credit for that, but not enough

it's e1nondiscretionary anyway would you try to raise revenue in another way other than saying if weqcuñ■i■taxes, we'll geté■■ higher gdp >> you know, a long time ago there was a studylp about this what dit countries likex■ own now sadly who have got their fiscal situation completely out of xrçq(■t. and then we broke themu■■■ua■■io two groups, those who succeeded (t&há■p &hc% it turns out the ones who succeeded, what theyj■ did is p long-run changes to!u■ grab revu or net revenue, and they also increased taxesqa little bit.qj7 but the typical5a■ successful ñ■an that's whatxd■the country willx■ have to do if it whams to beñ■t■

>> in terms of the economy, you see whereñr■the inflation rateç■ currently is something doesn't t■match. something doesn'txd■k match. is that a new -- a newl■ normal, or isñi■inflationi] really transitory, ori■ are interest rates goingçó■to go much higher than we think? >> interest ratesw3■i■have to go >> interest ratesw3■i■have to go muchi■b q)i we're going to coná■ol inflation. a good rul inflation rate needs to beñ■ higher if your >> that's a 500% increase. >> yeah. that meansc■x■ the jumps we save will not be inflation and inflation is going to continue to be a risk over the next few years. >> is that okay if we don't --ç■ should we raise rates andxd■slo■ it down through a l■recession, do we just let it roll the dice andñi■let it go andçó■buyxd■stos because they work■f well with inflation? you know, that doesn'tq■a■

people on the lower end ofx■ e@o things, kevin. >> y would go fast and try to get it over quickly.xwnç■ the reason is %vj■tly whati■ yo. wages move a÷■ lot slower than prices, and so people have to drive to work. they have to feed the kids all tha■ó■kind of stuff is more■ and more expensiver wages aren't really adjusted so their real welfare isçó■ significantly worse off, and that's going to be the way it goes forñ■ aq■o■ few years. >> q;nt+köz■kevin, i wanted to aboutqthe buybackk$■p' that biden proposed, which is to say■ they're trying to limit buybacks and-■÷/ñj■ access more r & d ane like i know you don't like buyback, but if you don't, what would you dot■ to e■disin scdisincentiviz

>> you have apple andt(■r■micro. they have so much cash coming in, they don't need to buy more machines the right thing■p do would be p the capital markets where some little startup needs all the capital in the world and you ca■ get the capital -- i woullél do anything abo34e -- research suggests thatç■oç when money is dividendedñr■out, it actually gets recirculated qn■ the economy. when it getse■ put into a buyba, obviously it doesn't in the same way. >> j ha. but the fact is you own through your index funds -- which i'm sure you own, you know, lots of companies that have had buybacks. >> totally. >> what happens is after the buyback, you throw your money into otherh■■■q■equities

that's how itworks and so?■■■,■ tsyurj■been the experience that i've seen. and so,e1 you know, as a fásoci we have way too much taxable.■u■ at some point we have to startl■ eating it. that's where we are with i that's where we are with i buybacksi■%"■ájjq■m■ whole ideag with buyza■m■ isqfood and what we should do, however, is make the expense permanent. as you know, ther expiring, and we're a little upset abou-■ñ■the trajectory of capital spending you know, one ofñ■ the reasons y it might bet(■heading south is >> how do you about executive spending into the buyback though >> you know,f■ it's something i not very pleasedx■ with. once you do the buyback,5■■■youñ basically returning cash to folks, and wheneverlp there are■

deci decisions, firms and executives need to be on the q■sidelines. >> kevin, they're not going to will thet■ market take over? >> what will then happen, joe, is5■■■we'll have inflation in t 6%, 7% range in a few years, right? >> that's bad. >> that's not necessarilyeh■eall bad for markets. remember,xd■prices move faster than wages. >> bad for ever■e■e that -- >> what -- >> bad for everyone weo■ supposedly care about and the$x■ democrats carea■■■about.(0en■■■< care but everyone cares about those people. >> yeah. it's sad,t(■like the '70s. >> it's bad. >> yeah.q■ right now andçó■moving much steeper. steeper. voyuá where do you think -- how faroko you think they have thev mean isñi■thew3■feet in clay how far do you thinkt■ jayx■ po >> you know, i think one of the

few years is every time the fed hiccups, then the market goes crazy. the move the fed has to make right nowfá is pretty big. i don't think it's improving to have the first cup toll be kind of small to make sure there isn't some kind of weird, you know, new norm■■where the market really overreac-■÷■to every little fed move. but then after you get a couple point moves without causing a panic, then they have to start moving it 50 basis points. j■r■át■be that we have couple and thenñi■we'd be looki at 50qbasis points for the rest of the year. >> kevin, why should they c■c■ if ther they don't want them to do it. ifx■ it's what needs to be done■ then maybe it needs to be done other than]"w the fedx■ç■ç■ kow the ç■market. i thinke1 greenspan was the fir fed chair to starti■ pointing to the market the problem is if the markett■

panics and alll■ of a sudden you're looking at 10%, 20% decline, that cane1 have an economic decline itself and sort of missçó■the soft landing i think what the fed people are hoping is they can getx■ the interest rates up a little bitr■ at a time without causing a m■q■uu■panic and get us to a moreñ■3■sustainable thingx.■q!=■ re■ frankly if they dox■ that,f■q■f■ shocked. i think they won't be able to do it i think it will be a slowlpçó■f inflation is going to continue to accelerate. it's running at 20% right now and they'll have to hit the econom market will respond and have a recession. so that: >> all right.ç thanks, kevin. former chairmant(■of the council to be a very distinguished fellow just in general thanks.ñc3ç■ it is just after 8:00 a.m. in new york.

you'ree■x■ watching "squawk boxl andrew rossxj■ñ■ sorkin. the dow is up 60 pointsós■ç■higr the nasdaq higher and s&p. >> let's get to mike santoli for his monday morning market story. mike, good morning. >> good morning. samex■ conversations is it going to be a soft landing?e■ what's the bond market communicating to the rest off■ ■ world? interesting spot right here. it's picked up about 60%, a was lost it also kind of endsf■ up right there where it peaked in 9!■f1 o september. that isn't necessarily always significant where we were several monthsç■ ago, but if the market were to roll over from here,fá you'd say, a-ha, that's kind of axd■classic for make the stockmarket has been pretty resilient. stocks versus bonds year to

date,ñi■it's been a pretty big divergenceç■ ú crushed, yields going&up. people have been talkingr the month o■en, quarter rebounding.ieúu■r■t«r■@&hc just to rebalance big pension funds and othert(■portfolios so this big gap is why there would be the makings of l■it.9 of that, but we might be gettin■ late with the 28th of the month■ as we are right now. itu■■■] wouldn't be too/ for the bond move to slow down a little bit,xd■if not take a cá'o breather and back up a little bit. a couple of areas. represent some of theñi■stressed risg yields, fedqtightening,i] lots currency moves this is a six-month chart. theñr■s&p is up about 4%, 4.5% you see some of the performance &há% to keep an eye on.

it has been a late-cycle leadership story economy seems to beñr■z■ine, something thequtilities are >> you pointed out that the s&p if it were to kind of fall6■■■bk from the levels it reached goiì% u■qá would be looking at that as some sort of ceiling andçó■con fir f■ make what happens if the market kind of busts through those levels? >> well, it continues to kind of û%t(áz■back the ben foyt f the doubt. the more itqp goes higher from going on with the bond market, a lot5a■ of folks are@(■estioning whether in factg yield moves. i don't think there'sñr■a verdi above the february zv■highs. if you want to look at the beyond that, earnings are up okay. we could have one of these situations where corporate americañi■feels like macrohas gotten people nervous, but we're okay for now. >> mike, thank you we'll see you later in the day. >> yep. our next guest has been n up

higher poi>áz■ joining us now with more on fed andqinflation iso■ mohamed el erian. he's queens' college cambridge president. good morning,xd■mohamed. i don'tçó■want to saycbi but oddly enough you're seeing stocks move perhaps in tandem with interest rates tore idea that inflation is going to k going. i'm a little surprised at what'o happening ñ■here. >> oh,ñ■ stocks have been incredibly qu■%1%q1ñ■and you can point to several reasons why, but the bond market is showingçó■volatility thatlp we to respect look what's happening this t morning. higher yields at thex■l■ç■x■ shd the yields on 3s, 5s, andxd■7s higher than the yield on ç ten-year bonds, and all that is telling yo)■ that the bond marke believes inflation is too high the fed is well behind the curve.

and the fed x■risks, as we hear risks pushing theñr■economy into session as we try to catch up. >> are youç■ surprised, q■thoug that the stockmarket has held u■ given what you'l%■ saying for th past couple of months? >> surprised, no, but were we.e■ why am i not surc■]6tz favorable. even financial conditions havet■ they're l/■nt historical terms and absolutew3■ terms. secondly, the consumer and labor market i+d supporting the economy. and third, as i said ■9■]%r+á■ before, wherejf do you go? do you goxd■to cash where youq guarantee afá minus 8% return? q%9 investors look around and say, you know what? stocks seem to bei] the best ple for where we are now it needs to continue é withstand economic volatility, weights volatility, and currencç volatility that's where we areçó■ó■right n.

>> mohamed, willw■ you weigh inn the planw■ to limit orf■e■ prevt buyback? we're talking about how big ofe■ the market is buybacks across the board, q238 billionf3■s■just this year so f. this is a nu3■er that may hitfb& the year does that make sense to you, and what do you think should happen? >> it's complczted, andrew, andc theqconversation we've had all morning tells you why. look on the one hand, if a company generates excessivexd■cash and they believe the best use of the cash is to have buybacks, you've got to respect that. but you've got to ask the t■ question, why is it we are in this situation is orf■q■ you lptinker■ going to mate■ their much. >> when you look at the price of ■q next six to eight months and then you start■ to think about the truenb■ ramifications of thata5■ and al some of the more geopolitical

issues in terms ofj■x■e■ compans having to rethink whered they're going to be putting their9 manufacturing capabilities, you do think it's going tof■ ultimately lead into marginst■# thinking aboutx■ but i don't thk for good reason. >> you used the word "ultimately" and for good "■ u■j■p (t&há■p &hc% the corporate power has pricing power because thexd■demand is still solid.q■ we'll be able to pass through the higher nb■cost we arex■ looking at a cost-of-living crisis. that's what we'.m■ looking at f% the next two quarters, three-quarters, where the average consumer is going to be hit hard by inflation. it's going to be hit hard by(■ño lowerñi■consumer sentiment the good news,x■ç■ñ■ if there i news, you're seeing how the market is reacting for the first time in a long time, demand is the price-setter, not supply people are worried about whatxd■ they're trying toqlock down. people are worried about

consumer sentiment but overall we're going to go through a difficult period where the cost of living is going to be on everybody's mind. >> going back to this billionaire tax and what it would get at, somebody points out to me, somebody who has been an entrepreneur and has done 'pj raised money, whoe1 owns a big portionñ■ of something they've created, maybe 10%, ifxd■they want to raise money, if the company is s.r3■ private and they do that at a higher valuation, they're going to owe a big tax bill on5■■■ unrealized gains it could be a founder who doesn't have a lot of money. itt■ couldñ■ change the way peoe do things in the country and have a differente■ (t&há■p &hc% this could beuq■ one way of doi it killing the gooselp who would l the golden egg is that something you point out to theo■ administration before >> i would point outu■■■that's e of the unintendedfá ñ■consequens look, they're trying to close k■

loopholes that have existed for a long time andño■ they haven't been ableu toi] close them directly they're trying to have a more progressive tax system and they'rexd■trying to raise revenue a.?■ aç■ time when theye going to have to try to step up etectxd■the most fundamental population it's very difficult to solve all this with a singlex■ instrument. unintendedñ■ implications. so we allxd■go back to what we reform we've tried it over and over ñ again. &há% will to get it xd■one. >> if you started with something that maybe is less contentious, i thinki] gettinglp some unreald gain is almost a nonstarter/ i don't know how you do that it seems like it's a little &há% if youc■ wanted to do a tax, ao■ minimum of all unrealized gain, story. but once you start gettingç■ at the idea ofok unrealized gains, that's a m5■ñ■

it opens up allxd■kinds of crazy unintended consequences. >> yes, because a lotw3■of peop, especially the founders you talked about are asset-rich andc cash-poor. when you suddenly unrealized gains, you hit #■ o between assets and cash. ìá■p% that there aret■ bubbles that wl exist in markets, valuations, and all kinds of things. the ivec of paying on that,xd■tt it's monopoly money -- >> the conundrum is i would argue itç■ makes more sense whether you carry interest or deathçó■r■to taxes -- >> it makes senseñi■to me. >> what makes sense to you doesn't make sense toe1 others. >> you could have ar conversatips ■(t&há■p &hc% >> for reasons that areok unmilkable, we can't have logical conversations. you andr conversations aboutñi■it.t others in washington haven't that's the wayj■ it is the question is what do you do about it

mohammed, a lovely conversation■ >> txa ■■y. ahead, oscars makinge■ headlines last night with big'c■ and as we head to a break right now, le÷n0 take a quick checkok on cryptoe1 prices crypto up 5.5%, above ç■$40,000■ stay tuned you're watching "squawk box," and this is cnbc hm... i know how difficult these calls can be. not with schwab. nina made it easier to set up our financial plan. we can check in on it anytime. it changes when our goals change. planning can't be that easy. actually, it can be, carl. look forward to planning with schwab. schwab! ♪♪ cody! hi!! hi! how are you? i'm good! i'm crocheting. i see that. started off as a hobby. kind of snowballed from there. and alex, i don't want to stop. well, i don't see why you should have to. let's set you up with a side gig savings goal

on the u.s. bank mobile app. this way, you can turn it into your main hustle before you know it. you're my hero, alex! what are you working on now? pool cover. that's fun. oh! i made my wife a bathing suit. oh, did linda like it? she did not. oh. you should see what i made for max. max! look at him. he loves it. the confidence to make your dream a reality. u.s. bank. we'll get there together. ( ♪♪ ) i call it the wheel. okay. this is a miss. edison, can i be honest with you? i-i-i-it stinks. (speaking japanese) like i was saying, it's ftx. it's a safe and easy way to get into crypto. ehhh, i don't think so. and i'm never wrong about this stuff. never.

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welcome back to "squawk box" right here on cnbc here owes some of the !?u■u)qj investors are going to be talkq■ about today. first off,ñ■ apple will be reportedly cutting iphone output by 20%ç■ next j■year that's according toçó■1 a news service that citesl■x■ weaker tn wantedç■1çó■ó■demand they'll be asking to authorize that's according to a company tweet. the additional shares would allow tesla to split its stock, and that could make itx■ more investors. tesla shares up bye■ lpçó■.1%.

and amc telling reuters it will deal that follows xd■ó■mc'so■ roughl8 million investment in gold and silver operator, miningqearlier this month thac one. stockings up by r don't miss a live interview wit■ adamt■ sqerrandç■ next hour on "sq"squaw on the street". >> it won't be a film company but something else. e1 coming up, president biden wille■ target millnaries with a billionaire's tax. we'lle1 speak with anthony %9uá■(áv■1 debating it all. up next, a different drama regarding theçó■oscars, and it s a wrap-up of hollywood's big nighti]qincluding what it allt(■ meanse1 for streaming andñi■ wrestling. next you're watchingçó■1w3■] "squawk cnbcx■

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. welcome back to "squawk box" this morning take a look at futures we are in the green. the nasdaq up about 30 points, the s&p up about 7 çó■oints. a newñi■lockdown incshanghai and

pressure on crude oilv morning. take a look at where we are. wtiç0brude at 700, "■ right meantime, the e osc. -- that was normal for the first time in two years. ended up aslp anything buto■ no. >> it wasw3■a very unusual night celebrity drama i'll get into, but movie star surprises aside, wit as land markj■ night for the entertainment industry as a streamer won best■ picture for the first timeñ■ ever.o■ apple tvç■ plus's "koda" won not only best picture butñi■screenpu and best supporting actor. this isñi■y■(áur(■&■rly meaningl for ceoñi■tim cook andx■ others. it's been threeñi■(■years since

and 2 w■1/2 years since apple t■ it's been a e■disappointment for netflix, which had the mostxd■11 nominees and has spent many mo yearst(■than apple pouring tens■ millions of dollars into oscar-based film that, again, garnered just one award, and that wasxd■breath director for jane campion3■ pretty much as expected. statues at seven, which was driven by ç■"dune. disney drew six awardsx■ e1total and then apple was third in terms of the studios with those three awards now, one of the warner br]tjers awards was best actor to will w■ smith. was a win that was xd■vershadow by smith unexpectedly walking onto the stage and slapping presenter chris rock he was qd■utraged overq■ a joket rock hadr smith then called him names tha■ wereo■,sqq(ed on tv

this whole skpaifrmg sent the room into a hush i was there in the room. it was reallyr smith then when hel■ñ■ won, wen stagee1 to make his esh■5■ he apologized to thei■ academy his speech he did not apologize specifically to chris f■rock, b what a weird night, joe. >> you know, immediately, wasñii i heard others saying he put his we know about publicity. if there's no publicity, it's necessarily bad.q■ timberlake i think that was totally staged. this was not this looked like absolutely impromptuqvqhp'■ it justñ■ happ. temper, right? >> i have to say, that is how it felt inñi■d■the room i mean theç■ oscars is so perfectly produced down to the second they have ceoñi■ standing by, especially in the orchestra

level of the dolby theater is totally q■coordinated, and this was really a surprise. ■■have people speak,fáxd■they're mic'd and younblá heard will smith spk up, yelling, not mic'd, butq others nearby. p■picture, wrong. >> the only other time -- yeah, the only o4i■ timexd■i've seend■ anything like this when ifá go ét oscars was that time when they accidentally announcedx du la land" as best picture this was aç■ weird moment. when you saw the publicist run in to go talk to will smith, yo■ knew this was not?;■ aw■ planne■ thing. >> yep it's -- you know, there havea■■■ been things. i -- iñ■ remember. iw3■remember brando and george scott. andp,■ do you remember rob lowen lucille ball and he was serenading her and doing al■ dae

with snow white.e■z■■■ do you remember that?x that was so -- thatn>■■was different. >> i do. i do remember that dance. >> that was ç■.■■■.■cruise-wort. ujun he looked like he was at the cf1 o >> there was a lot ofi] discussn about whether or not the speech he made redeemed him the speech itself soundedqlike a enough, but i think a lotxd■of speec(ígo cf1 oressed byé■■■i■t■ >> all lpright,ñ■julia. thank you.#■ìá■p &hc% julia t■boorstin. >> i realize whyq■ we're not talkedvb%■uq■■ukrainee1+i■i■ xde ite benz washed off. a new era for union?ú we'll take stock of the landscapeqof companies like starbucks and amazon and what it means fort(■investors too. then former white house communicationsñ■a■■■director any scaramucci and kevin o'lea

sodi off on a new billionaire's tax from the white house. i wonder which one of them is going to be defending -)v5e■ stay tuned you're watching "squawk box. and this is cnbc 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

♪♪ yeah... oh. don't worry i got it! ♪♪ ♪♪ take the world by cloud. accenture let there be change.

after resignations, it appears we're in a new phase for

1 o today the national labor lee lagss board5z,ñ■beginning to countlp ballots at a key amazon wó2■house in alabama ro withl■ mozi■s' nunf■y■■■memberì% rates this point kate, good morning. >> good moving good to see w■ou.t use their power to push ford betterpy and workingñ■ conditio. ñ■ to approve key things for themselves and coy workers for years to come byç■ organizing a collectivelyñ■!■r■■■bargaining e forever. >> regardless of where h personal journey takes me, i am still absolutely0■■■committed to being in drive sot(■that these benefits ■s ]q$■ can be established to have in wr@ej■ clear and concise outlines and boundaries of what

this job entails and what benefits we deserve. seem like union membership?■■■re are higher due to some of÷ñ thee > kate, what does all ofv wind up meaning for public companies like starbucks and amazon as the union fights play out very publicly? that's whyé■■■ they think union mem""■árr( is up.

>> they're doing a delicate dance here, right, because you don't want to be seen as very aggress uvlyñ■ anti-union theñi■election that's what ledç■■■■ó■us toñi■g second vote. they're wondering if this is going to be more expensive for the company, how much money and time and resource and energy they're going toñ■ put in at ea one of these sites looku■■■at starbucks5■■■seekingo have many moreq■ storesi] organe dóse than '■'■f stores havelp petitioned the nrlb. if the numbers go up, thexd■ investors have to be wondering and watching what the investment is too. >> especially with the return of howard schultz thank you. with thee■ president's new moves in mind, the president is expected toñi■i■target the nati east wealthiest when heñr■ñ■rel■ there will be a 20% tax rate

over half the revenue that could come from those worth more than a billione1 dollars. joining us to talk about this idea,e1 anthony scaramucci, skybridge manufacture founder and co-founder and cnbc contributor. anthony, i checked i'm fine do a little work.+ from what i can tell, this is not going to -- i don't know how to value ev■ú2q!%9 >> maybe next year, joe. >> you, i'm not so sure. >> look atl■ the inflation rate. maybe next year, youx■ know? >> all r >>o■ i've got to check with your same xd■ge second we don't even want to know, kevin. oh, no, you're outside you made it back it's good to see you this>)(■going to be a crappy debate do either one of you think this is a good idea anthony, you start xd■irst. >> jfkevin's more ofq■ a staunch capitalist than me, but i think this isok one of the more terrie ideas to comee1 out of the bideñ

administration. >> that's saying something. >> it'sxd■less leanr,çó■lurching to the left. if you're taxing(ccumulated capital,ñ■ that's going to just havex■q■ disastrous consequences it's totally a disincentive for people to form capital and take the risks necessaryi] to investn all the innovation 4rh■e's so many different ways they could go after the billionaire classe1 without takg their assets this is basically justq■i■a weah tax, and i think kevin actually agrees with me on this i thought we "=#-■ going to unions, which i'm happy to do. what's your take >> youo■ know, wit/■ getting into politics orç■ bashing biden or what's being attempted f■her let's askjf ourselves ai] questn abouti] i■policy.e1q it's simply this if you take theñi■400 people --

thisl■ is really going into effect they're some of the most extraordinaryw3■vanillas who ha i■atedl■ "tninessesia■n america. elon musk, amazon and everyone else, there's thousands and thousands of jobs that have been been paid. here's the fundamental issue if you want to take elon musk's■ money from him while he's alive■ -- because, q■remember, getting money from him when he's de, the estate taxes will clean himu out when lphe's dead why take the money from him now whenñ■ this innovation. maybe you like him maybe you don't like him he tq-%■thee1fáñr■u■x■j■ excess creating cars and went into space likeq■ the government nev■ could. he beat them at their ownçó■game we need people like that this is un-amerkf(j■ it'st■ñ■5■■■t■funña■ental, the d women whoxd■create businesses a■ vehemently opplc tos regardless of what side of the

aisle they're on. but you sayçó■we'll take it aga. the truth is we won't. if you're happy toç■ supportñ■ estate tax, a meaningful estate tax, we can have this conversation also would you think about those whoqeffectively÷ñ take loans against their stock, if at some point you could decide thbos loans represent the equivalent of a sale, at that point maybe there could be a tax taking place. >> andrew,i■ó■u■ndrew,u■■■takina is not a sale. no, no,ñi■>úu■ no. let's go backqto the loans.nb■q■ they're fully ate■ risk."■ hi collapses for a&y■ reason -- and there's many times in tpá stockmarket and history where great companies hid ae1 roadblo and stocks were cut inñ■@■w■ uh amc, if you borrowed against that, you would have a margin cost and bed wipedv■q■ut.q he'st■ taking a huge 0l■risk that's not goodçolicy.x■ this idea is un-american. re

enormous amount of money, whoxd■ q%■■ely take loans out in perpetuity and then by, of w3■ course, give sot(■much money aw■ i'm all for giving money away, as you know. but he never gets taxed by the subsidize them. >> i'm good with it, andrew. árr( i'm good with the jobs created"■ pay. he'sç■ the5■■■posterç■ boyv nightmarish ç■policy my point is thisl■ is not what this ss■ not why ix■ immigratedo i wanted ap■■■big marjt and[>■u■ capital. "n% a ls and i'm okay with it but thisç■ is attacking them for their success. that's un-american, that's what it is. i ooh predict this -- not that i want to get intou■■■ñ(olitics -- biden is going to gete1 decimat in the midterms. rrj■ entrepreneurs in his ownñ■ party -- and i talked to myçó■own ceo

think this idea is reallyñi■ insane, really bad, and un-american. so let's call ite■ what it is. >> how do you want toçó■do it, anthony? you're nodding job, so i don't want to interrupt him. i wouldxd kevin knows thatx■ when you take interest rate deduction on that loan i think that that's unfair so if someone's staking out a $100 million loan on a billion dollars worth ofx■ okstock, i d think they need the tax deductioo"there.ç■ñ■x■ that's one way to get@ñ■p,es back there shouldç■ be an alternativ■ minimum tax, state tax.e i think ñ■]ñr■d■evin's point ise going to taxl■ them atx■ the ent you say no because they're going q wo could be a giving taxe■ as

well.es@(t&há■p &hc% >> where do you guys land on deincentivizing buy5 uq■■ so they would have to wait several years to sellçó■into or sell after a buyback a opposedx■ to sell into a buyback >> that'sñi■manipulating the market it's a very bad idq■ >> some people -- some people think that the busb■■■i■is a manipulation in the market into it and the studies suggest they're doing it fivexd■times t amount typically it wouldçó■be done otherwise you'rex■i■ saying it would be manipulating the market in a different way. >> youj■ can decideçó■as aj■$■@c shareholder if youw■ agree with buyback programs or not.t■ you have full liquidity. you get trance pavemency.w you decide if you like it or not not. )ñ personally don't like buybacks, but i understand why companies do i it's some for-■■ of tax con torque at the end of theçó■day, you

should let it be transparent and let individuals decide government decidingú&■quidity in public markets thise■ is more bad policy. all of this stuff makes no sense whatsoever, and i thinkw3■at the end of the day>é if i were biden -- and i'm not telling you whato to do,t■ i would start worrying about inflation on foodñi■(■and■ energy costs right now and forget about the tax stuff he's never going to get this through. when the midterm's over, he's going to have zero ability to drive policy right now i focus on what matt party. i'm not trying to be partisan $■re i'm just saying this ■j■ not wha americans care about right now.■ they care aboutfá the prize of1 gasoline and the priceñ■ of t)j■ this is not high on their minds. and the entrepreneurs out there craving jobs in this country and they'2■■working hard as hell, think this idea is really, really bad >>i■ so i just -- you know, l■%■ i heard your debate this morning or your discussion this morning, andrew there should be atn■ ratio test.

yo v you have to look at what thee■xo did over the prior quarters and hd he's going to initiate a buyback, he+ should capitalize o a number so it doesn't lookt(■le he's selling into añi■ innocent faizing himself andñ■t■ triggering money for himself both kevin and i are looking for right or wrong policy and thatj■ would be a very fair policy and that would take the pressure off the ceo a well where heqwon't be accused of doing thingsv nefarious. >> 5a■kevin,z■■■do you want z/up things -- i'm looking at a ñi■ squlouft when you speak -- no. it's a live shot of vineyards. (t&há■p &hc% p(e. it's a very important time the new vines are coming

this is a wonderful time in switzerland where i am and i'll be joining theç■ mooch in a fewv hours. we're going to dubai e■$■use that's where the moneyt ca something. i'm already here, 0■■■ev. >> i'll seeé@■ you there my final thoughts on this are policy is all that matters, you■ know, and right. dream is entrepreneurship. everybody that starts a business wants to be elon musk one day and someç■t■ of them make it, an the way,t■ they create tremendo wealth for themselves an$■p all■ their employees and they solve hugeu■■■problems for society why areg that k■would we even contemplateñr■ policy likeqthat this t(■s, again, i'll say it o■ more time, un-american let's forget aro'■■■this.!u■ this is a really q■]■ out, kev, we haveok toq■ close wealth gap if you go back 50 years, the

rich were not this rich relative to the middle and lower class. these are■d■dumb policies to do it there are better ways■to do itq■ through infraçt■u■uu)■ spending, jobs training,ñ■ education there's a ton of ways to do it i think you and i are both for unequal outcomes pursuant to risk-taking, but we need to create a platform of equalñ■ opportunity for people because birth. weç■ didn't chá■á■ur parents we need to get the people who were bornc= disadvantaged an opportunity. we're atmosphere enough to come up with that and we have to start thinking like that. >> mooch, t( best way to help economy full of entrepreneurs creating wealth for everybody. i mean that's just whatxd■o■m■ i america. every time you tryx■ toe1 redistribute wealth, you come up with ideas like this that are just plain really bad. >> i would agree. >> yep all right. anthony, thanks. anthony scaramucci and kevin

o'leary. he's÷■ nice.e■(p(t&há■p &hc% a nice guy. more challenges for big tech or a stepx■ in the rightjfxd■direc. we're going to have a topjfi] venture capitalist on the staying impact of the new digital impact.e program note, don'tr ceo. stay tuned t■h)ight after this new projects means new project managers. you need to hire. i need indeed. indeed you do. when you sponsor a job, you immediately get your shortlist of quality candidates, whose resumes on indeed match your job criteria. visit indeed.com/hire and get started today. it takes a village to support society and businesses have a responsibility to support that village. ♪ ♪ i am peter akwaboah, chief operating officer for technology,

operations and firm resilience. when you think about diversity, the employee network group is fundamental to any organization to provide a community and a belonging environment for the employees. they provide an avenue to support employees and ultimately it leads to retention of the best and brightest. the employee network represents the community at large, and it provides a good feedback loop to senior management to make the appropriate decisions, which ultimately contributes towards the bottom line. if you're thinking about growing your business, if you're thinking about driving the business forward, inclusion is a strong part of this. i am peter akwaboah and we are morgan stanley.

urn and hour.qó■d■pq #■+■z■chu.á■ abt what's happening with the merger monday deal of the morning so far. that's hp inc., the consumerx■ electronics giant that does a lot of things with regard toj■ computer hardaway. hp is going to buy 0l■polly, whh iád■i■the legacy company, polyq■ come thoseht■ companies are now poly. it's up 50% on the premarket trade right now becauseot■■■1 h

pay 40 bucks a share in cash for poly it's about a $3.3 billion enterprise value deal. that's equity plus the assumption of debt overall.i that's the reason why you're seeing that. by the way, what's behind the deal, well,-■■d■take a look, bee in a big interview coming up later on "squawk on the street,■ hp'sñ■!■■■ceo enrico will be tag about what's driving the $%e■y■ plan tronnicsñi■and poly come. payfáw3■attention. also watching shares ofçó■beyond meat a little pickup in premarket e1q volume this is driven in large/+■ç■ pay analystsa■■■piper sandler. they cut thex■ target price to ■ from a prior 50.x■ they think some ofñ■ñ■ the grow■ expectations should be more tempered in thexd■coming weeks d months especially with some of

the mcdonald's jfrollup not meeting theirw3■expectation for the pop it would havexd■gotten theb■áuj■t■meatñ■ are downgrade or driven inx■ large part is. a check on thew■ most popul■ ticker from cnbc.com from friday's full ñ■sigs thm z■0-year yield, now■ xd■urp. crude down 5%4 still a lotxd■of interestt(■the. tesla, apple, neo,e■ the q.d.xd■ maker ver■■ much in focus.e 1■ ■ nine-day winning streak even though it's down joe, as always, the top ten and highlights on my twitteáfeed.çó■ (t&há■p &hc% >> you know what friday is that means it's april. you know what april means. >> showers,xd■ó■mayflowers, something like e1that. master's i know.

azaleas. >> and flowers we've got that going for us. >> we'ret■ going to talk a lot >> maybe, maybe. i've got thet■ women's final fo to think about tonight. >> andw■ your $5ñ■ bets. >> yeah. coming up,x■ jim cramer. a first take on the trading day ahead. "squawk box" will be right by■=■ to and through retirement. ok, let's talk about those changes to your financial plan. bill, mary? hey... it's our former broker carl. carl, say hi to nina, our schwab financial consultant. hm... i know how difficult these calls can be. not with schwab. nina made it easier to set up our financial plan. we can check in on it anytime. it changes when our goals change. planning can't be that easy. actually, it can be, carl. look forward to planning with schwab. schwab! ♪♪ [sound of helicopter blades] ugh... they found me. ♪ ♪

nice suits, you guys blend right in. the world needs you back. i'm retired greg, you know this. people have their money just sitting around doing nothing... that's bad, they shouldn't do that. they're getting crushed by inflation. well, i feel for them. they're taking financial advice from memes. [baby spits out milk] i'll get my onesies®. ♪ “baby one more time” by britney spears ♪ good to have you back, old friend. yeah, eyes on the road, benny. welcome to a new chapter in investing. [ding] e*trade now from morgan stanley. (vo) verizon business unlimited is going ultra! get more. like manny. event planning with our best plan ever. (manny) yeah, that's what i do. (vo) with 5g ultra wideband in many more cities, you get up to 10 times the speed at no extra cost. verizon is going ultra, so your business can get more. [zoom call] ...pivot... work bye. vacation hi! book with priceline.

'cause when you save more, you can “no way!” more. no wayyyy. no waaayyy! no way! [phone ringing] hm. no way! no way! priceline. every trip is a big deal. let's get down to the new york stock exchange where jim cramer joins us now. i know you've got the ceo of hp on poly in just a moment you a fan of the deal? >> you know i do like anything that makes a larger suite, but at the same time i've got to tell you, andrew there's a lot of companies that do this and the kind of way that they look -- they're talking about

this, they're putting it as a hybrid work play, so is lodge tech a hybrid work play. there's a lot of ways to put the deal the older hybrid work play is overdone. >> incentivizing or in this case disinc disincentivizing, the biden administration this morning the idea of buybacks through a 1% tax or perhaps more importantly this idea of creating a blackout period for executives so they can sell into a buyback. >> there are only a few periods where they really can't sell, and most of them do not sell into a buyback they have a window they open the window i think it should be more specific and less judgmental an individual company should all be told, look, you can sell in the first five days and start the buyback on day since that makes sense to me as far as the individual tax, i think that's a nonstarter. it won't happen. no more than i i think that this

$100 billion, that's not going to happen. >> the truth is they do sell into the buyback at materially larger numbers than . >> they should have a window where they can sell and then the buyback starts >> you're saying prior to a buyback. >> yes >> you sell the first five days after your report, but you can't sell into the buyback. that's how i did it. i was handling the buyback can't sell it. >> jim cramer, we will see you in just a couple of minutes. "squawk" coming right back. "squawk" coming right back. >> gotcha. in the world's public and private markets. outscale, with the resources to serve 1,500 clients in 52 countries. and outlast, with long-term conviction

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the eu late last week striking a deal on what's called the digital markets act and it could have huge implications for america's tech giants. the gate keepers like apple, amazon, meta and google could see their market power curbed through rules against giving their own services preference over other companies joining us to weigh in on the legislation and what it could mean for established tech companies and for startups is tech investor bradley tusk, the

ceo of tusk ventures bradley, how do you feel about these rules? >> personally i think they're a good thing i understand why apple and amazon and everyone else doesn't want them, but as an early stage tech investors, it is virtually impossible right now for me to invest in a company that's going to compete with microsoft or google or apple or amazon or anyone else because they have so much power in the marketplace. i think are from the perspective of wanting more competition, more innovation, this should help >> i mean, obviously you've got some skin in the game on this too. you're looking for startup companies. you think that startup companies are hurt pretty badly by this. competition is hindered. >> i do. i think right now, at least in the u.s., there are virtually no rules limiting the ability of platforms to favor themselves at the expense of everyone else, what the digital market act attempts to do is to say, look, just because you're on one platform doesn't now mean that

you've given up your rights to pri privacy. it doesn't mean they can monetize your data however they want and most importantly the act allows for data portability, interoperability which means you can go from one platform to another and still have everything preserved, have all your data. this is important as we head into the metaverse where we're going to spend so much more time as our avatars and the more we're able to go from metaverse to metaverse without having to do everything every time better it is for consumers. >> there have been rules similarly floated in the united states do you think they'd pick up traction if this is something they're looking upon. >> i think one thing americans have in common is they don't care about what the eu does about much of nick, anything i do think you've seen some movement in congress, there was legislation a couple of months ago that was bipartisan. it does seem like one issue that unites both parties, left and

the right is at least a general, you know, a hatred for facebook at the very least, if not the other platforms too. and so politically, it is feas feasible i think the biggest one is repeal section 230, facebook and twitter are not liable for the content posted on the platform eu is looking to appeal that for something called the digital recei services act if the u.s. did it, that would really change things. >> what about this news this morning, the idea that the biden administration is going to be looking to tax unrealized gains on anybody who has more than $100 million in wealth i would assume that that would have a pretty big impact in your world. >> yeah, for sure. i mean, look, i live and work in manhattan, and the idea came up in albany in the state legislature and my view was if they were to pass a tax on realized gains we would have to leave new york by definition as metro capitalists i've got a handful of investments that go from a small valuation to a high

valuation, but they're not liquid i can't pay taxes on them. taxes on a realized gains to me are the best way to drive businesses out of your city, state or country. >> if you were going to leave new york city, does that mean you would leave the united states if this is passed as a federal law? >> i mean, no, because luckily i'm not a billionaire yet. >> it's a tax on anybody who's got 100 million in valuations. >> yeah, all right it's a good question, right? mayor of new york, he always argued that he didn't want local tax increases because that sent jobs out of new york city birx his view was if it was a national tax increase people are much less likely to leave the country altogether i think i would face the same challenge as everyone lelse i understand why biden wants to do, certainly mays well with progressive. and so i get it, but i do think

it's troublesome. >> bradley, thanks for your thoughts this morning. >> thank you for having me >> all right, folks that does it for us this morning. we're looking at things this morning with markets at this point a little bit higher. at least we've been watching the dow higher through the morning, and we'll continue to see this that does it for us today. we will see you back here tomorr tomorrow have a great monday. right now it's time for "squawk on the street. good monday morning, welcome to "squawk on the street." i'm carl quintanilla with jim cramer, david faber is back. futures are steady as the bulls try for a third week of gains, something we've not strung together since last fall shanghai's lockdown in focus ism, auto sales and a job number our road map begins with the tesla surge. shares are popping ahead of the open as the ev maker announces plans to split his stock. apple's demand perhaps waning the nikkei reporting the company