coinbase shares fall to a new low. just now, elon musk tweeting the twitter deal is temporarily on hold. twitter stock is cratering tesla soaring. it's friday, the 13th. dah-dah-dah. "squawk box" begins right now. good morning welcome to "squawk box" here on cnbc we are live from the nasdaq market site from times square. i'm rebecca quick along with joe kernen and andrew ross sorkin. dow futures are up s&p futures youup 40. the nasdaq is up as well

this comes after a rough session yesterday. the s&p was off 5 points yesterday. the nasdaq closed higher up by 6 points which is rou roughly .1%. >> crypto stabilized and nasdaq went up. >> let's look at the treasury market the treasury yields came up. 2.897% crypto as joe mentioned and saw a trade at 25 and change this morning, 3$30,360. this trade constantly. what goes down, comes up and vice versa this is where it stands. >> all of the stablecoins stuff got separated from bitcoin it is all related not just from

crypto, but money. you need money for one thing we have to get to this elon musk tweeting the twitter deal is temporarily on hold pending the deal of spam and fake accounts do represent less than 5% of users there is a link to the reuters piece which was may 2nd or may 1st. this notion this is new information to musk that it is 5% is not new. what might be new is that tesla was down 700 tesla shares are a bid of $772 closed at $778 shares are opening higher. dan ives is on the squawk news line dan, i know we know elon musk is

mercurial or seat of the pants does this qualify as a public dissemination? i would not like to hear about this if i was a twitter shareholder counting on that acquisition price and find out about it early morning on twitter, is that okay? >> i think it is not okay. that's the first thing this is unprecedented. especially a deal like this, you would expect filing or something more formal to come out in a tweet? it sends it to a circus show the street's reaction is he is looking for a way to get out of the deal tesla is down $300 million margin calls this is going to be the sort of way he gets out of it. now from twitter perspective, the stock is going to 30 >> and there's no way he can send out another tweet saying just kidding

it's real money. it is real money going in. it is hard to believe that was a joke this is not a joke people are involved in trades you saw. losing their shirts. >> and i would say this came out on monday. as you talked about it, joe -- >> last monday. >> may 2nd >> ten days ago. >> it came out last monday >> right about this spam. so that was his whole reason for buying it in the first place to clean up the spam accounts? that is why it looks like an out for him. you must be shocked, dan >> it is a shocker it is something where right now, the spread has continued to increase in terms of twitter shares that's been a question was he looking for more

financing and how was he chasing it it really came down to so much pressure in terms of the tesla leverage that i believe he overestimated in terms of the impact and the impact it has on tesla. tesla stock continues to go down that is speculation if it is margin calls this is a full-on friday the 13th circus show in terms of how this hit off this morning. >> if it was april 1st, it would be very confusing. >> dan, it has been a circus show from the beginning, i would argue. i'm trying to understand, he can walk for $1 billion. that is the cost of walking. unless he can claim the company is lying, which is not what he is saying, unless you think he is trying to recut the deal -- by the way, from the reporting i have been doing and reporting you are seeing out there, beyond what you see this morning, there are a lot of investors who are

happy to support him and give him money to do this whether it was a good investment or a bad idea a week ago is a different story. >> by the way, we don't know if he is getting pressure from those investors and if they changed their mind with the market turning this way. >> that is another question of what the commitments look like were they handshake commitments or document commitments they made a week ago? >> and that's really the spider web here one, is he trying to talk down the price and renegotiation to get a lower price on the market that has rapidly changed in the last 30 days that's one two, $1 billion breakup fee for musk it's rituxieasy to walk away. that is the street view. that is the spread it is a low break-up fee to walk away you talk about the ellison and

sequia these are done now that he does this, this is going to send this all into a ripple effect because as a twitter holder now, this deal breaks especially in the market. this stock can go below 30 it would be bullish for tesla because that's been a big overhang now this just creates the nightmare scenario that everyone feared that musk would just wake up one day and be like, okay, i'm not going to do it >> let's talk about what he agreed with to do this tesla shares are down 25% since musk agreed to do this he sold $8.5 billion he raised $6.5 billion he had a $12 billion loan to take out as part of the $44 billion. he cut his money on the line to $6.25 billion after erhe raised

all that money he had a commitment to raise money since the initial filing from other equity investors on this if you watched tesla shares go down 25% and the change in the market, you can understand why he wanted to try to get out of it you feel for the shareholders who bought in on the deal and people who came in now the stock was at $35 just a moment ago we are watching. we know the s.e.c. was investigating this how does this up the ante and does that concern you from the perspective, dan, of tesla overall with how his attention is turned and how he gets raked through investigations from the s.e.c. ofver this >> this is something that just can't happen in a public market. he cannot tweet something like this now the regulatory scrutiny will increase which it should there will be more twists and turns ahead. now, looking from the tesla

perspective, where does it lead? it was a massive distraction for musk and now a circus show which is a huge overhang for tesla investors that never wanted a piece of being levered to the twitter deal >> hey, dan? do you think there is a possibility -- if elon is out -- by the way, half of the place is out. senior people leaving the company. the ceo is ceo in name only. whatever happens and if elon's gone, the current team, it is unclear if they will run the company in the future. do you see somebody else coming in is there a private equity? maybe not at the premium or valuation to the point where people say this is a messed up situation and we need to get a new team in anyway >> that's clearly a possibility. it is at what price? now is the issue when they

ultimately look for other bidders. seeing no one near the price especially in this market. now it causes just panic within twitter because they thought they're packing up their bags and it was done. now all of a sudden, they are bringing the boxes back. maybe we don't get bought. >> look at truth social. i don't know that's been all over the place up 10% dwac up 10.19% on this news i don't know whether that makes this anymore viable. former president trump said he would not come back on twitter anyway i don't know if i would move all my stuff back on twitter they still have the same financial problems anyone that would one that company now would want to slim it down, won't they, dan

i feel bad for dorsey who endorsed the elon -- saying elon is the one guy i would like to be running the show. i don't know what this means for the company which is in di disarray i don't know if i would bring my boxes back in and set up my desk again. >> joe, you raised the point that is the problem. they have been on the wrong side of social media arm's race they needed clear change this would be it in some form. it was a who's who it was covered along with musk now with this, it creates the situation where you will see more and more outflow out of twitter and also this uncertainty. it is not resolved in 24 hours this is months and months of uncertainty and that's something that is unfortunate with the super black cloud over twitter it is something that it all

really starts with this tweet. >> there is the word "temporarily" in that tweet, too. what the hell does that mean >> it means he hasn't figured out if he can get out of the $1 billion break-up fee maybe there is more than what they are saying. >> okay. i feel better about it it's back on >> anything's possible it just feels like -- i think this is viewed as the first step of him trying to get out of a deal whether it is the $1 billion breakup fee or other asterisk in terms of the filing in the weeds to get out of it that is how the street will perceive it. now i think it casts off from here >> he never wavered. he said oh, sure there were skeptics. >> until he sold $8 billion.

>> he said i'll gett financing you see the names of the people involved the money will be there. he never looked like he was waiver waivering. >> i didn't think he would do it until he sold the tesla shares sdpshares >> as tesla went down. you didn't need to see him w waver. >> i need to see this on the tesla and twitter side with the rapid moves. the amount of credibility he can lose with the investing public that seems his big of the liability here. >> it is it is something where this takes it to a whole other level even more musk. it is not just tesla now it is twitter and the nature of the deal and employees and everything else.

this is something to do it in this fashion is unconscionable in my opinion. >> to actually walk away or him to come back and say i want to do it again at a lower price. >> i believe it is the genie is out of the bottle. i don't think he had a bad day and now on monday it's back on >> i was up late with grimes >> why do you think he could come back at a lower price he can get this for a song at this point. >> it's going to be one of two things, right? it is either the $54 number feels like that's off the table in terms of the street. >> 100%. if he wants to pay $36.50 today, what will the twitter board do they are held hostage. nobody else is buying at that

price. >> that's the thing. it felt like it waswhere the deal price would get negotiate lower and this feels like it is the step toward doing that or walking away completely. it puts the board in tremendous pressure just like you said, if there is no other bidder, then ultimately it becomes a don corleone "godfather" situation. >> what would happen next rather than him walking away? i think he would go to them and say nobody else is buying at this price i'm buying at a crazy premium on a relative basis take it or leave it. we'll talk again in two months. >> $42 >> andrew, that is a scenario that is well on the table here he could just negotiate a lower price based on the spam accounts

and how many real accounts there r. no there. that is clearly on the table or he could walk away ultimately what is that price? >> dan, if he does that, if he does that again, would you not follow him along at this point because of the chaos this created with these stocks and investors who have been left on the hook listening to him and believing him and getting burned by it? >> if someone canceled dinner reservations four times, are you meeting the fifth reservation? the problem is what happens next even those on the deal, they will be on the call today saying what happened? they committed even in the filing. >> when you look at what his rationale was all along, he

mentioned he wanted to clean up the spam the real reason is to make it an objective town hall forum. i don't see how this factors into any of that at all. that was always like, wait this isn't about making money. this is about you being a good guy because one side feels totally slighted by the censors at twitter that would still hold? he would still be able to, you know, to clean that part of it up it doesn't ring true, dan, for the reason why you step away it doesn't ring nearly as true as tesla at $700. >> yeah. the other thing and back to what you were talking about now with tesla with a 7 in front of it and all of a sudden you sell stock and you start to get margin calls now all of a sudden, the freedom of speech is one thing, but now

it is real money that's why the scenario changed dramatically to do it in this way is a circus show now there's just a myriad of questions and no answers in terms of how this is all going to play out. at least today >> what was it there will be millions of people on mars by when? did you see that quote that was out recently. i don't know two years? i don't think two years. right now, it is just matt damon. no, he's back. dan ives, thank you. >> thank you >> dan sounds like he is shell shocked at this point. it is shocking like we said, i'm just kidding you can't do that when people are trading twitter right now. >> he can do whatever he wants

look, the truth is -- >> maybe twitter suits >> he shouldn't even be on twitter. this should be in a 13d right now. the s.e.c. at some point is going to say something about this they are already upset about it. >> upset about stuff that goes back to the original tesla buyout and also upset about the way the original twitter >> from elon's perspective, he got away with all of it. he negotiated all of it over twitter and with the board maybe he thought he could do it again. this feels like the step the regulators cannot ignore at this point. >> yeah. >> they have to move faster. >> we will see we have more that we will talk about and this story for the next three hours we have another big story. coinbase taking a hit from the crypto selloff

stock bouncing back. we have interview we will show you with the company's cfo about the issue of whether accounts are protected and what happens in the event of a bankruptcy later, making saense of the chaos with jeremy allaire. you are watching "squawk box" here on cnbc

♪ ♪ bonnie boon i'm calling you out. everybody be cool, alright? we've got bonnie right here on a video call. we don't take kindly to video calls. oh, in that case just tap to send a message. we don't take kindly to messages neither. in that case how 'bout a ringcentral phone call. we don't take kindly to no... would you can it eugene! let's just hear her out. ha ha ha, i've been needing a new horse. we've got ourselves a deal. ♪ ♪ ♪ ringcentral ♪ this is not the stallion i was imagining.

cal: our confident forever plan is possible with a cfp® professional. a cfp® professional can help you build a complete financial plan. visit letsmakeaplan.org to find your cfp® professional. ♪♪

welcome back coinbase trading down more than 70% since late march before the pre-market bounce, i spoke with coinbase cfo in the interview and started out by asking what coinbase is telling investors and employees over what is happening this week right now. >> to investors, i say thank you. thank you for holding on thank you for believing in coinbase and crypto. we are going to build a great company. we are going to build long- -te wealth with products and services to our employees, our employees are fired up we are here to prove ourselves and build great products and services we think we have the opportunity to become a generational company. our employees are excited to show what hwe can be. >> take us inside the room

watch the stock fall the way it has. watching cryptocurrency fall the way it has i imagine it has to take some emotional toll. >> it never feels good to watch stocks fall and crypto fall. this has been ten years. coinbase is 10 years old this month. we navigated through crypto cycles bitcoin fell 80% in 2017 and 2018 it fell again in 2015. we have been through the turns and come out stronger and built to new heights and diversified products and services. people who come to crypto have a certain mettle we know we will come out stronger and better. >> what do you see this week users have come down, obviously. are you seeing people move their accounts out of coinbase are you seeing people move accounts to private wallets?

>> the last couple weeks have been volatile. we have seen a lot of activity in crypto. in q1, prices came down. if you noticed, our assets on platform were as strong in q3 and come off the q4 highs. we continue to have strong market share in the total crypto assets we are seeing that that is an exciting trend. we are excited for the growth of decentralized finance. we are excited for people to exp explore. we are seeing people move between decentralized crypto and crypto there has been a flight to c qua quality. a lot of money has moved to bitcoin and ethereum we are seeing it in stablecoins and moving in gsc. there has been instability in ust and other. it is quality.

>> how concerned are you, by the way, that crypto and bitcoin in particular, hasn't been this uncorrelated asset that in large part was its promise >> it's true it's true. we have seen it trade more in line with tech stocks in particular over the last few quarters i think we're still learning about the correlations a lot of institutional money has come into crypto and the broader volatility, we have seen strong correlations it is a short time with the correlation. i don't know what to call it i don't know if it will continue or break another some time correlated over the recent months to be determined for the long term >> we talk on the show about the nasdaq is the dog or the tail relative to crypto or is crypto the dog or the

tail what do you see in terms of leverage and for selling >> we are just a spot market and do not have leverage on our platform it is hard for me to take a broader view we are cryptocurrency. i see one side of the trade. >> are you buying in the market given that things are falling? i know you are a hodlers >> yes >> still confident about the coinbase business. crypto bulls have talked about institutional investors being in this business. invested in crypto one of the things that we're clearly not hearing is institutional investors are coming in and buying i asked her about why that is. >> i don't think we're seeing institutions coming in and buying equities down 70% i think people are waiting to see where bottom is. this is a broader economic risk

off market we will start to see money flow back into cryptocurrency >> i want to get your reaction competitor of yours. sam bankman freed buying 7% stake in robinhood. >> i can't comment i wish him the best. >> maybe more broadly. what is your sense of the acquisition opportunity and investment opportunity clearly he is taking advantage of the fact that robinhood value has fallen should we be expecting there will be other buyers and are you talking about investors coming into coinbase? >> i cannot comment on strategic transactions we may be entertaining. >> a lot of speculation about whether there might be otherinv come into coinbase she wasn't in the space to comment on that or didn't want

to when coinbase reported, one concern was growing on operating expenses one big area of investment is compliance i asked her about what the compliance costs looks like and if regulation would change that dynamic. >> i believe all firms will invest in compliance to ensure we have strong compliance with regulations as they come forward. it is no different than financial services company or fintech out there. we need to have strong controls and sanctions monitoring we are prepared for those investments. the costs can go up. we are making prudent investments at scale we will get to the right marginal cost over time. >> we have more coming up up and including the comments that brian armstrong made when he used the word bankruptcy and what protections customers have

with accounts. before we head to break. -- >> the biggest question is trying to figure out if they comingle the accounts and if you are a creditor. >> you have to wait for her answer on that, becky. i think we have her in the 7:00 hour >> that's the tease. >> it will with make news. we have other news to tell you about as well before we head to break. a programming note from someone who is likely to make a lot of news on monday morning at 6:00 a.m. you can tune in for the interview i had with former fed chair ben bernancke. he has some very fascinating views on what is actually happening in our economy what jay powell is doing right and wrong and what is happening at the white house and so much more we dive into all of that and that starts on monday at 6:00 a.m. >> i will say he looks pretty

tan, calm and rested probably happy to not be in that job. >> he looks pretty short compared to andrew. >> andrew is tall. >> exactly. >> he does look calm, cool and collected. probably happy to not be in the job going through the difficult time >> no kidding. >> joe, you asked why i was in washington yesterday i know i was meeting with backers and supporters considering my run >> i don't know if i could say it i was like feeling you out i got nothing back from you. i figured i better not saying anything yeah i guess we could not say anything i didn't want to screw it up if we talked about it, maybe he would have bailed. i don't know then there would have been hell to pay. >> it he criticize jay powell? >> they don't usually say anything. >> you have to see what he has to say stay tuned for monday. there's so much in there that people will be fascinated by >> we look forward to it.

we'll talk about that and the coinbase cfo and when we come back, robinhood shares are actually bouncing right now in a big way. this started last night. stock up over 20% after an interesting buyer came into the market we'll talk about that in a moment later, more on elon musk's tweet that the twitter deal is now temporarily on hold. market reacting. twitter shares off 19% tesla shares up 5.5% by the way, later, ufc owner endeavor out with earnings ceo ari emanuel will join us about how the markets are changing valuations on things. stick around "squawk box" will be right back. >> announcer: what's working is sponsored by comcast business.

bounce forward by going to comcastbusiness.com. to adapt in a fast changing world, you could hire a professional pit crew. go, go, go. sorry. nope. okay. fresh donuts - hot coffee! they deliver real time data and business forecasts when you need it. i think it was fine how it was. (air tool sound) to help you stay ahead of the curve... or you could use workday. the finance, hr and planning system that helps cfos make better decisions faster. on the other hand, we had a great fourth quarter. for a accelerate your decision-making world. workday. for a changing world. my son romeo has sought counsel with some strategic advisors. they suggest that we marry our fortunes with...the capulets. blasphemy! fear not. these advisors managed one of the largest mergers in history, creating billions in value. billions? plus, they have experts in global trade. this merger shall be a boon for our spice business. and set a course for growth. here, here! friars, send word at once.

yes, m'lord. dave doesn't need a posh virtual receptionist, because he cloned himself. while his clone watches the phones, dave can work on his code. and lead his team. dave trusts his clone like he trusts himself. so, in summary, we're going to sell the company. who's in favor?... perfect. but if cloning isn't an option for you, just get posh. virtual receptionists who can answer and transfer your calls, because you can't be in two places at once.

shares are sharply higher. a new filing shows the ceo of crypto ftx has taken a 7% stake in robinhood sam bankman-fried has no intention of taking control of the company. he may engage with management in discussions. robinhood's communication team says we think it is attractive investment during the trading session, robinhood's stock hit an all-time low this morning, bouncing by more

than 20% andrew > >> becky, one note there are a lot of investors in the past 12 or 24 hours s since the investment was made, we think this is a musk-twitter transaction where sam is making the investment and plans to take over the company that is why the stock is up as much as it is. a major distention between the situation that was going on at twitter, now that changed had this morning, but in terms of the way the company is governed. the two founders of the company own 65% of the company they control the company full stop. if they want to sell, sure there is -- i'm under no illusion that these guys don't want to sell i'm confident i can say that for my own reporting in the last 24 hours. they just went public a year ago. they seem to be engaged in this company.

the idea he is coming in and buying the whole thing out, at least, under the current construct is not something that should be on the table the way some investors seem. >> they do want to sell, not that they do not >> i believe they don't have a for sale sign out. unlike twitter, they completely control the company. if they don't want to sell, they don't have to sell we have more coming up this morning. crackdown at the gas pumps lawmakers going after price gougers. brian sullivan has that next. we are celebrating asian american and pacific higislande month. here is dom chu. >> one of the things i like is all of the time i get to reflect on the lessons i learned from my parents and grandparents and

culture and food that makes us unique as asian americans. these days, i'm reminded there are more things that bring us together than drive us apart so this aapi heritage month, i'll focus on those similarities >> announcer: executive edge is sponsored by at&t business at&t 5g is fast, reliable and secure ever ss, our best deals on every iphone - including the iphone 13 pro with 5g. that's the one with the amazing camera? yep! every business deserves it... like one's that re-opened! hi, we have an appointment. and every new business that just opened! like aromatherapy rugs! i'll take one in blue please! it's not complicated. at&t is giving new and existing business customers our best deals on every iphone. ♪ ♪ your record label is taking off. but so is your sound engineer. you need to hire. i need indeed. indeed you do.

indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire this thing, it's making me get an ice bath again. what do you mean? these straps are mind-blowing! they collect hundreds of data points like hrv and rem sleep, so you know all you need for recovery. and you are? i'm an investor...in invesco qqq, a fund that gives me access to... nasdaq 100 innovations like... wearable training optimization tech. uh, how long are you... i'm done. i'm okay. in two seconds, eric will realize (laughs) they're gonna need more space.. gotta sell the house. oh... open houses. or, skip the hassles and sell directly to opendoor. wow. when life's doors open, we'll handle the house.

welcome back to "squawk box. rising prices at the gas pumps are causing congress to take action brian sullivan has more. brian, what's going on >> you were down in d.c., andrew the house was set to vote on the bill to go after anybody or company found to be priced gouging on gasoline and jet fuel, et cetera. it would mayke it illegal. this would kick in after a president declares some kind of an energy emergency. if the bill passes the house and senate, who might be at risk here the bill's tech says the

priority is to go after companies that sell more than $500 million in fuel per year. the bill is designed to go after bill oil the text of the law allows them to go after states and mom and pop gas stations it is not clear who the authority is to go after the gas station owner if they determine the station deems prices too high over a certain period it is unlikely to pass it needs 60 votes in the senate. if it it did pass, there a question about whether or not and how it works with prices dallas federal reserve with the report saying under the most optimistic view u.s. production and it this amounts to a drop in the bucket in the oil market

basically the responsibility to lower prices is unlikely to work and unlikely to lower pump prices dallas fed take it or leave it. a lot of confusion of how gas is priced the price of oil matters it doesn't matter how much you think. the rest are taxes and transportation and marketing and refining a big oil company whose prompts are soaring, we know that. they actually own 1% of the american gas stations. you wonder will we have people calling the police on gas station owners who they see raising prices unlikely under the law, theoretically, it could happen >> how has that worked in the past, brian? when people quote/unquote gouged, they called the police

or consumer protection bureau? what happens here? >> the idea is everybody is frustrated with gas prices it is $5 and change at stations. it is a political third rail and hot button issue the national average is at a record there is confusion i say this as a journalist and a father who owned a gas station when i was a child we were not millionaires it is hard to make money gas station owners buy 50,000 gallons of gas at a time until they drain those tanks of the gas they bought and if the price goes down, maybe they will lose money if the price goes up, maybe they make money when the prices go up or go down and buy at a higher price, they have to raise prices on the next load because they will lose money. there is confuse of who sets the price of retail gasoline taxes, transportation, it is a huge factor. andrew, there are travel

centers, rest stops and airports in the northeast that are trucking in fuel from ohio so we in the northeast don't run out i want you to think about that we're trucking in fuel by burning fuel to refill the fuel that we don't have i mean, politicians are frustrated people are frustrated. this law goes up for a vote on monday if i'm not mistaken never know >> brian, thank you for bringing that story we will watch to see whether that law gets passed on monday and what it means. appreciate it. becky. it is part of the chraziness in politics even though they don't have control with gas and food prices hitting highs not seen in decades, employers are under pressure to have wages keep pace with inflation. with the risk of the hard landing for the economy looming, you have to wonder if this is the last chance to ask your boss for a raise. let's bring in tom gimbel.

tom, maybe this is wishful thing on part of the employers or maybe not. i think there will be a stay when employers get the upper hand again i don't know if it is the near future >> as soon as unemployment ticks up, it flips upside down and employers will have the lead again. i really wish it wouldn't be who is in control. employers or employees and then more about our businesses making money. that is where we get in trouble on the markets is the companies not making money were inflating markets and salaries you had companies like uber or lyft paying outlandish salaries and everybody had to pay more to keep up. when money was free, it was easy to do. now interest rates are rising. >> that was part of it i'll give you that that was part of it in certain areas. a lot of it was the pandemic and the idea you could not find

workers. minimum wage jobs had to pay $15 or $18 or $20 just to get keep to show up for it. it is always a case of who has the upper hand on these situations i anytime we look at profits paid out in wages and compensation. it is an important metric. i get the sense that employers are saying we'll go along. you can work from home you can do these things because i cannot find someone to replace you. >> there are two economies that we are talking about when it comes to jobs. hourly workers which was on the uptick pre-pandemic. san francisco was boosting minimum wage to $15 an hour. things were growing in the progressive environment before the pandemic then the pandemic where people could work remotely and people drop out of the work force we had white collar salary increase as well we have to look at it.

the amazon workers and delivery people and blue collar truck drivers and white collar salaries going up and driven by the companies i mentioned before you hear numbers like full-time people at target making $24 an hour, that's purely based on ma, that's purely based on inflationary numbers and the problem is an uneducated public that doesn't realize that everything else is going up and $24 isn't what $24 was two years ago. >> inflation is going to eat any of the wage gains that showed up for the month of april what stops it, though? there's a reason companies like target will pay $24 an hour. it's because they can't find other people to show up. what stops this? is it when the fed is successful in bringing down demand or bringing us to recession or to the brink of it? >> we've got a couple different

things tare a there are a lot of people who think we should have started raising interest rates a long time ago, 12 or 18 months ago. we've gotten a lot tougher on immigration in the white collar and the blue collar. on the technology side, it's been much harder to get a visa for the technology jobs. it's been a lot harder to get people to come in south of the border we've created scare tactics. now you throw on the pandemic on top of that. we have less immigration and then you have people dropping out of the workforce. that's double whammy that doesn't get talked about nearly enough so with the pandemic settling down, hoepefully, knock on wood then there will be no excuse for people motnot to enter the workforce. we've had a societal change. the fact is people don't want to do things. and it's not whether you want

to, it's whether you have to it's the challenge we're facing in the society >> in the meantime, we've moved to automation anywhere and everywhere, from robots that will deliver your food to factories. when the workers want to come back, how different is this economy going to look from the employer's point of view >> it's all relative two years ago people thought by 2025 we'd have purely driverless cars we know that's not going to happen if there's kiosks, and it sakes atakes away from the cashier, then you need a technician to fix the kiosk. we go back to horses you may have lost horses but you got mechanics.

>> i like that perspective tom, thank you it's always great to see you >> i like that that you like my perspective, becky i appreciate this. we're getting somewhere. >> i'll see you later. >> thanks. coming up, leais maniacs are assembling he's going to talk about powell's comments at that he can't promise a soft landing and elon musk's tweet that the twitter deal temporarily on hold you see e imthpre starting to come back. "squawk box" will be right back.

♪ ♪ we all need a rock we can rely on. to be strong. to overcome anything. ♪ ♪ to be... unstoppable. that's why the world's largest companies

and over 30 million people rely on prudential's retirement and workplace benefits. who's your rock? this is ashley. rely she's a posh virtualrement and receptionist. fits. she'll make sure you never miss a call or an opportunity to grow your business. you can't be in two places at once, let posh answer. posh virtual receptionists.

the fed chairman jay powell says getting inflation under control won't be easy, and there will be some economic pain he made those comments during an interview yesterday with market place. let's get to steve liesman now who is taking a look at just how high rates could go. hey, steve >> morning, joe. yeah, whether there's a soft landing or not as fed chair jay powell said is possible but not assured, is going to depend on how far the fed raises rates and how fast it does so. but no one has said with any precision how far the fed will go, and there's speck haulationt could go further they see it at 2.7% on the funds rate, hitting a terminal rate of 3% in august 2023. but maybe it could go higher here are some reasons why. the need for the fed to adopt a

restrictive policy to combat inflation. an upward shift in the long-run inflation and wrong-run neutral rate and more importantly, an end to factors that have kept inflation in check globalization, immigration, excess savings and technological progress and then this, the fed funds rate will probably have to rise to 4%. recent evidence from unit labor costs and jolts suggests the n floor may be shifting higher how much higher? one where the adjusted rate is above zero 5% not out of the question factor in 1% a long-term average real funds rate. a 3% underlying inflation rate and the fed could potentially lop another 1% on top of that to show the economy down, making it

restrictive. before the great financial crisis and its artificially low rates of the past 14 year, the nominal funds rate was 5.5%. the real funds rate was almost always positive, compare to the long-running negative real rates we've had in most of the post great financial crisis world and if we're going back to a world of a positive funds rate and one of higher inflation, it's going to present a dramatic challenge to the risk assets across the spectrum, joe >> all right, steve, what a week since -- you remember your question how long did that last that had a half-life of, like some really, like a radioactive element that decays like every 30 seconds, didn't it? >> joe, i believe i'd be in the guinness world records from going from hero to goat in the

shortest amount of time. >> i don't want to kill the messenger. >> it was a smart question >> it was criminal pot to ask. >> it was a smart question it was just the message he was trying to get across at that point was to calm markets. i think he realized it's going to be a lot tougher than that after the fact >> when the markets basically took a step back and said, you know, yeah, punch bowl's great, but what if we really need the medicine now to staunch long-term issues that we had it sort of just took another look at the whole situation. and it's weird to see an entire market just change its mind that quickly. but yeah, you're just, it's not your fault a hot olot of other things are,i don't think this was >> thank you, joe. what i think is interesting is

the market now seems to want that 75 or at least the flexibility of the fed i think the market really wants the fed to combat inflation in a big way. that is the message i got from day two. >> sorry, i cut you off. i'm sorry. >> no, no, i was done. go ahead >> i thought were you at, where have you been? i thought you went into hiding i thought you had protesters outside your house and you know what? i think that's against the law they should not be allowed to change your opinion on things, know what i mean protesters shouldn't be allowed to sway you. i think that's a law >> i was at my son's senior musical recital, joe, up in maine. >> that doesn't explain your -- okay. >> unrelated okay meantime, it is just after 7:00 a.m. on the east coast and are you watching "squawk box"?

dow could open up higher we have the nasdaq up about 206 points higher. the s&p bouncing as well check out what's happening in crypto, a little bit of a bounce as well. maybe that's bouncing everything you got bitcoin now back above 30,000 $30,488. ether at $2100 coming up, two big interviews you don't want to miss coinbase's cfo is going to be here on yesterday's outage that also spooked folks. and then circle's ceo, jeremy allayer is going to be joining us but we've got their bigness of the morning, joe mr. musk saying no mas on twitter in. >> i think we're starting to understand that maybe he doesn'.

>> i think we're starting to understand tha. >> i think we're starting to understand tha. >> i think we're starting to understand that maybe he doesn't always know exactly what he might do was it from yesterday? an early morning tweet is he in texas our top story today elon musk tweeting that his planned $44 billion deal to buy twitter is temporarily on hold. in his words, it all has to do with pending details supporting the calculation that spam/fake accounts do indeed represent less than 5% of users. that' that's like from may 2nd, based on a reuters story dan, i'll be right but i got to let robert, when you saw it, robert, did you just go whoa what was your response >> my response was, number one, that the arbs were kind of

right. we've seen this spread widen beyond the normal m&a parameters it was after he said that this was far from a done deal the second thing is, whatever his intentions were -- and you're right i don't foknow if he knew what s intentions were. he has this $8.5 billion of tesla cash that after selling those shares in april for this deal, many people saw that as a sign that he was going to go through with this, but he does still have that cash even if he pays this breakup fee. he has $7.4 billion in cash. maybe he can finally buy a house in texas the other big thing people haven't realized is that he may walk away with a big tax benefit here if this doesn't close because the shares he sold last month were likely the same shares he bought last year as part of the options exercise he sold them at around 833

so he could have a capital loss of over a billion dollars as a result of those sales that he could use against any future capital gains. so he walks away with $7.5 billion in cash and a big tax benefit. >> you have to offset it against, and how many year does you have to offset against capital gains? >> again, there are lots of limits, but against the gains, can yo you can carry those forward for a long time. he could have a gain in spacex or any of his other ventures or selling more shares. >> temporarily did he need that word? do you briefelieve it's tempora? >> if this is his excuse for walking away, it's a really lazy, lazy, lazy excuse. a lot of people didn't think he'd go through in part because he overpaid, in part because of

the tesla stock. we also don't know how much bitcoin he owns. how much money outside of stock that we know about has he lost, or value has he lost in the last couple weeks but this temporarily thing, this is a tweet from may 2nd. this is an old story this is what due diligence is about. this is why you don't agree to buy a company in 11 days without talking to management. as i said, it is lazy. if you really wanted to know the math behind this, he has agreed to buy the company khou he could have called the board, asked for the math >> where do you think the sec is in all this? they've sort of been lingering around, obviously, between some of the disclosures or lack of disclosures or untimely disclosures maybe is the way to describe it. even this disclosure on twitter is opposed to doing it through a filing could raise some questions. but in terms of protecting the

retail investor, so many of whom have tried elon musk like a true pied piper in so many ways do you think reg regulators, ife steps away there would be more than a slap on the wrist >> it would be beyond unprecedented. 's it's hard to do more than slap the richest man on the wrist with fines look he's currently or recently tried to put up a court fight trying to get out of the setmentlemente agreed to a couple years ago >> he lost this is a point i raised earlier in the week on the program t's vprogram, it' very possible he won't pay

additional taxes he'd have to have gains to offset that part of it but do you have a more, is it a more cynical take that you're suggesting that he was selling these shares, thinking that there's both the optionality of buying twitter or keeping the money? >> look, when he sold these shares, i thought, wow, he's really serious, because he's said with tesla shares, i will be the first in and last out i am not going to sell shares unless he has to he sold those shares last year because he that big tax bill like becky said, when he sold those shares we thought wow, he's really going forward with this the market fell and the twitter bid that he had, the value was way overvalued number one, it's overpriced. but mumnumber two, if you look t the amount of wealth that he's

ros lost in the tesla decline, we don't know how much of that was the overall market and how much of it was sort of a twitter discount, because people were worried about his attention and the regulator issues clearly it affected tesla stock. and that combined with the overall market fall were probably two reasons that he decided at least for now to suspend this, if not walk away >> robert, that was kind of the same thing i was thinking. you watch the market fall and you change your mind the situation got a lot different over the last couple weeks. but there is speculation out there today, he sold this, maybe he didn't have the intention of buying twitter he had other options, and it was a good way to sell $8.5 billion of tesla shares without people thinking it was a huge dumping of his position in these things. others saying he had options

that were ten years old that he was going to have to use or lose either way robert, first? >> i'm not aware of it the next options exercise which are part of the 2018 compensation plan are not until i think 2028 so he has a long time before that big slug of options as part of the compensation plan expire. i'm not aware of any others that expire, at least in large size before then. so, you know, i don't know what he does with $8.5 billion in cash remember, he still has 2 billion to $3 billion left to play with. maybe it's going to go into spacex, another company. maybe he did plan to buy this. but right now, unlike the rest of his hivlife and career, elon musk is very cash rich with over $10 billion in cash from these sales. >> dan, the chance that, you

know, he goes to, say, okay, look, i do want to make this a public town hall, i want to get rid of what i perceive as bias, but i want to do it at a cheaper price. how do you handicap that no way or yes >> there's a question of how much cheaper price but the reality for elon is he started to get the financing at that higher price and maybe some of those partners are pushing back a lot of those equity partners have a good bit of egg on their face which is why i don't buy the theory that he didn't plan to buy it in the first place. it's one thing to have done that, but it's another thing to have called all your friends, a lot of your friends in silicon valley and wall street and gotten them to put their name on a document, backing his bid, and

they have to walk away from it i think with this, he intended to buy it, he got cold feet, and this is his way of trying to walk it back >> we shall see. thanks, dan, and robert frank. andrew you have a quick question, andrew for me? >> i was just going to pose one question, back to dan on this, which was, do we think that if this is a grand renegotiation, does vhe have to get the signoff from the ron barons of the world and others who put money behind this, or does he not have to go to them at all because he's effectively locked these folks in at that higher price, and if he can get a lower price he doesn't have to do anything, meaning he doesn't have to go to them and say hey, i'm getting you a lower price now. they would say thank you very much, i would imagine. >> probably. the question is, remember those equity commitments were in cash. they were dollar amounts

they weren't percents of company. so i do think he would probably have to go back, because it would change the number of shares they're actually buying, but i don't think any of them wo w them were complaining. but, again, if that's what he's doing, i don't quite understand why do that publicly, why not go to the company privately all he's doing is damaging the thing he wants to buy. >> yeah, because it worked last time, probably but you're right i don't think he thought this through in terms of what it would mean for his credibility, his company and the rest of it gentlemen, thank you very much when we come back, coinbase's cfo on the outage and the moves in crypto. plus, making sense of the chaos in the stablecoin market circle ceo will join us right after the break. on this friday the 13th, things are look up for now. dow futures indicated up by 240

points, s&p by 43 and nasdaq by 200. "squawk box" will be right bac what's going on? where's regina? hi, i'm ladonna. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations, like real time cgi. okay... yeah... oh. don't worry i got it! become an agent of innovation with invesco qqq in one second, sara. yes! will get a job offer somewhere sunnier. relocating in weeks. weeks? yeah, weeks. gotta sell the house. don't worry, sell to opendoor, and move on your schedule. yes! when life's doors open,

we'll handle the house. this? this is supersonic wifi from xfinity. it's fast. like, ready-for- major-gig-speeds fast. when life's doors open, like riding-a-cheetah fast. isn't that right, girl? whoa! it can connect hundreds of devices at once. [ in unison ] that's powerful. couldn't have said it better myself. and with three times the bandwidth, the gaming never has to end. slaying is our business. and business is good. unbeatable internet from xfinity. made to do anything so you can do anything. this? this is supersonic wifi from xfinity. it's fast. like, ready-for- major-gig-speeds fast. like riding-a-cheetah fast. isn't that right, girl? whoa! it can connect hundreds of devices at once. [ in unison ] that's powerful. couldn't have said it better myself. and with three times the bandwidth, the gaming never has to end. slaying is our business. and business is good.

unbeatable internet from xfinity. made to do anything so you can do anything. . welcome back to "squawk box. the other big story of the morning, coinbase hitting a new 52-week low yesterday. i spoke to the cfo in an

exclusive interview and asked her about the outages some experienced on thursday that seemed to create more anxiety. >> we had a short outage today that is back up and our systems are running as expected. >> what happened was it too much selling? too much buying in router fell down >> i can't go into details, mall bug that we found that we had to remediate. >> what do you think that coinbase has to do and maybe perhaps even more broadly the industry has to do to win back tru trust? we've been looking at the numbers. and when you look at bitcoin, some 40% of folks who bought bitcoin are now in the red >> i think it's less about trust and more about crypto cycles and they've gone up and they've gone down, but they've always been on an upward trajectory for

a long period of time. the troughs are always higher and the peaks are always higher as we go through these cycles. we need to invest in the long term and people need to have a long-term view about the power of this technology and the opportunity that we have to drive crypto >> how much do you think this sets things back >> i don't think it sets things back i think what we see is the innovation is continuing i think that we are talking to our customers, talking to developers, talking to companies. everybody's interested in how they build in crypto they're still interested in how they pay their employees in crypto, how think build it into their product suite, so it's not setting back the innovation. it's setting back the price, but the innovation continues, the builders continue, and in these down markets we're continuing to build for the future >> and tether briefly traded before $1.

terra has crashed. i asked her about that and to what extent she thinks the turmoil in the tastablecoin mare is casting a shadow for all of crypto >> i think it's all very connected. it's adding fear to the market and a lot of negative energy around the market that we see today. >> we've got a lot more of that exclusive interview with coinbase cfo in the next hour, including the company's response to growing concerns about bankruptcy risks following the disclosure in a 10q filing you don't want to miss that. meantime, as we saw yesterday, stablecoins are turning out to look not so stable anymore some of them joining me is circle ceo, jeremy

allaire. the truth is, a buck was supposed to be worth a buck. and now in at least two cases, that's not the case. have yeah, well, specifically with terra really what you saw was a system that was designed, a system that tried tried to incentivize people. but the incentive was a subsidy on a yield 20% yield, seems risk free people were buying this token luna to create these stable points that could pay them 20% interest, but when you look below the surface, and i think any reasonable person who looks below the surface saw that this was a bit of a "house of cards." so those subsidized yields were going to run out all the underlying assets that supported this, we started to see those flow out and see price pressure and in a system like this, it's

very vulnerable to the classic death spiral and that is very much what we saw happen now that's in contrast, obviously, to a regulated, fully-reserved dollar, digital currency or stablecoin which is always held with cash and, you know, three-month u.s. treasury bonds, and that's why it's really considered the gold standard in this space of stablecoins. >> so the question therefore is do we need more regulation and because i think you go online, and you look at some of these people who are buying this and in some cases minting this, who i don't think understood the risks that were involved and half the time you talk to some of the leaders of these projects, and you couldn't even get a straight answer, frankly about what was actually backing these coins. >> yeah, and even more amazing is that i think a lot of highly-intelligent people,

highly-then highly-intelligent people who are deep in this market believed a lot of the hype. so there's a lot of self-correction that feeneeds tg on for a lot of people we have always felt there needed to be a regulatory framework around stable coins. that ensures consumer protection is in place that is correct there was always 100% reserve. our view is that there needs to be more. and so, you know, last year, as we know, the white house, the treasury department issued a report saying it was urgent that congress act on this and establish a national hlicensing and supervisory framework, both because there are these known risks. those risks get larger and larger, as these get larger and larger as everyone has seen, but

also because this is a really critical infrastructure that is going to be at the center of how the dollar works on the internet so you want something that businesses and households can understand, can trust, can interact with and that works >> do you think any of these quote-unquote stablecoins should be backed at all by any other, by any form of crypto? >> look. there are definitely different designs for how to build some, you know, a stable value asset, you know, one of the other, you know, stablecoins which is not algorithmly backed but overcollateralized so you're over collateralizing it almost like a margin system, sort of like maker it's overcollateralized 150% t the dollar so our view is if you want a dollar that works on the internet with the power of the

cryptocurrency technology, you actually want it to be a dollar. you want it to be cash, eventually cash out of the fed, and you want it to be, you know, the most liquid dollar referenced assets in the world, which is the short end of government bonds so that's kind of where the design center is if you want something that is truly cash-like that people can depend upon for financial applications on the internet. >> jeremy, we got to go, and i'm going to get in trouble. but what do you tell all the folk wh folks who have been holding bitcoin all the way down at $30,000? >> i'm still holding i'm still holding. i'm very bullish about bitcoin, ethereum, we're in an early stage of a huge buildout so i'm quite long-term in all of that

>> okay. jeremy allaire, appreciate you being here this morning. coming up, what's your personal inflation rate in we'll help you figure out. elon musk tweeting the twitter deal temporarily on hold the stock cratering. more on what's next in just a bit. "squawk box" will be right back. time now for today's aflac trivia question. what new york city-based company is responsible for shortening about 6-mi00 million url links r month? the answer when "squawk box" continues. uffer a shelf-inflicted injury. luckily, aflac will help cover his unexpected medical bills. aflac! maybe you could use the money to buy a step stool. i have a step stool. so why are you climbing a shelf? the stool's on top of the shelf, isn't it paul... (shelf crashing) yeah... ♪ ♪

aflac!

now the answer to today's aflac trivia question. what new york city-based company is responsible for shortening about 600 million url links per month? the answer bitly. inflation's up more than 8 % since last year. we don't all spend money on the same things. so what your personal inflation rate

sharon epperson joins us now with more on how can yoyou can e it out what is yours? do you know mine >> to figure it out, this is what you need to know. you need to know how inflation is affecting your budget how much you're spending and where you're spending it according to moody's analytics, take a look at what the typical american household is spending that's $450 a month more now than a year ago for the same goods and services are you typical? to know if you're typical or not, you need to calculate your own inflation rate look at what you spent on the items of the list of expenditure categories that includes food, housing, gas, entertainment, apparel, education and a lot of other items. gather your credit card bills and bank statements to figure out what you spent on those categories add up your last month's

spending and from a year ago subtract from april of 2021 and 2022 and the result of the equation is your personal inflation rate. depending on your income, the impact may feel better, or it could feel a lot worse on your wallet than the latest cpi number, joe? >> okay. i'll have to work on this a little bit you know, but the thing, we should always remember, we want to reach everyone on cnbc. but we're fortunate. it almost seems like to people like us it's more of a nuisance than, than something that's life changing ver i have to tell myself that i go what! and you know, it's a nuisance more than something where you'd actually have to change your behavior >> but it makes you stop and think, joe, it makes you stop and think about what you're

spending, and do you really need to spend that much do you have to and why are you doing that going through this list and looking at your expenses in so many different categories, it hits home to people that they may be spending money on things they don't really need or they should be thankful they're not pending as much as the average person because they're not having to commute to work or they're not eating meat because they're a vegetarian many people are rethinking their spending and figuring out thoushow to do that. >> we should note that nbc universal and comcast ventures are investors in acorns. when we come back, we're going to be talking to super agent ari emmanuel he'll be joining us from right here at the nasdaq in fact, he's right here we'll be talking about the

return to live events, media landscape and much more. right now dow futures are indicated up by about 230 points on this friday the 13th after a really really rough week and a half stick around "squawk box" will be right back. with the right balance of risk and reward. so you can enjoy more of...this. this is the planning effect.

i'm dan o'dowd and i approved this message. so you can enjoy more of...this. tesla's full self- driving technology. the washington post reported on "owners of teslas fighting for control..." "i'm trying..." watch this tesla "slam into a bike lane bollard..." "oh [bleeped f***]" this one "fails to stop for a pedestrian in a crosswalk." "experts see deep flaws." "that was the worst thing i've ever seen in my life." to stop tesla's full self-driving software... vote dan o'dowd for u.s. senate.

welcome back, everybody. shares of endeavor on the move this morning yesterday the entertainment and content company posted quarterly results that beat expectations the company also raised its guidance for the fourth quarter and maintained its positive outlook for the full year. can you see that stock up about 1 14%. joining us to talk about that and much more is ari emmanuel, the founder and ceo of endeavor. thanks for being here. these were really strong numbers last night a lot of this is a reopening play, concerts are back, people are out. people want to be doing things, and you're beneficiaries of that what are you seeing? >> i think there are three sectors that we see that are on the way up content's on the way up, live experiences on the way up. and sports gambling is on the

way up all the sectors that we're in. and we were just talking about that very hard to get reservations at restaurants. if you looked at last weekend, there was 450 million tickets sold to the marvel movie f1 85,000 people, our pay-per-view event in phoenix sold out. then there's the basketball, nhl, and we had the madrid open. there was 200,000 peoplet high-d experience want to get out. and they've been pent-up for several years now. and we're seeing that, and if you look at live nation's report, going into this year alone, they're up i think it was 40%, maybe even more in future sales. we're seeing that on the music side so i think that's kind of on the live events area where people want to get out and want to have experiences and want to just live life a little bit >> there's all this talk of recession right now.

we've looked at the very difficult time the market has had the last couple weeks. the fed talking about raising rates, and it has people wondering, is that enthusiasm going to ebb i guess would you see it almost on a day by day basis. have you seen that yet in yet? >> we are not seeing this in the consumer and going all the way back to the super bowl, you are not seeing the consumer under that pressure we do not see that in our live events sector. in our other sectors, we also see high demand. when you think baabout our company, we on the supply side of all these trends. in content, i know netflix had a little bit of a falter >> a little bit. >> if you think about it, if you take out the russia 700,000, they would have been up. but in this quarter alone, between peacock, discovery, max,

paramount, disney, you had 20 million, plus 20 million subs come into the consumer business. so from our side, which we're the supplier across that platform, there's no less demand for content. in fact, content demand is even going up, and you have now apple and amazon pushing in very hard into that market place so the little falter of -- >> you're talking about subscribers, mottenot their sto. the stock took a huge hit. >> which is why the stock took a hit. we don't see any less demand for content. in fact, it's growing now. >> what about in terms of what people will pay? are the same bidding wars still there? >> yeah, i'm not going to go into specific details. but i'll give you an example in europe we have something in the uk.

my friend was in the bid i know he said he's going to be prudent. he didn't want to lose this property he outbid everybody. he was the final winner of it. that's case on content, on sports that and that's the way you grow subscribers. great premium contents, great sports rights. and it's the same thing on gambling, too. you have multiple bidders on the supply side of that with our arena business and our recent acquisition that will come to fruition in the third or fourth quarter of open bet. all of these folks have to go after subscribers. they all need our content, whether it be data rights or screening rights or all the other things that we have. there's very high bidding for all those rights we are on the other side of this transaction. we are on the supply side to all the demand side of the business. >> is it only the premium properties because i can understand if they all want to bid for things that they think are going to be the best i had the sense before that

there was a big bid for anything, and just about anything could get bought, no matter who was doing it, what was going on has that waned at all? >> here's what i would say to you. i know everybody thinks broadcast and cable are dead last time i checked, we're in cable. if you go back, the movie business did not kill radio, tv did not kill the movie business. direct to consumer is not going to kill the broadcast and cable business we have over 370 tv shows in cable and in broadcast we have over 400 shows on direct to consumer. actually, for apple, amazon and netflix, which only represents about 2% of our revenues so when you talk about 700 shows for us, there's so much demand for content right now. across the platforms even the smallest stuff is selling very, very well at high numbers. and when you think about us,

it's not just movies and television the podcasting business is, is on fire right now. broadcasters in news and in sports, we just saw recent decemdeal for sports broadcasters at an all-time high. so content across our platform because of the demand side is way, way up. so non-scripted, scripted, docuseries, all of it on the way up economically >> so when people lsay this abot netflix, do you not believe them >> last time i checked they're very competitive people. you have to maintain subscribers and grow subscribers and the only way to do that is premium entertainment and premium sports that's where i come in we're the largest player this that florm >> why did you sell the writers.

>> we had to we're going to grow that business we're going to grow even bigger, our non-scripted business. we think we can grow that business fairly large, because we're the largest often the agency side, non-scripted in the business >> you mentioned the sports business, and you can't help but wonder if amazon and apple are going to have very deep pockets when it gets to this do you think we eventually see something like a super bowl on one of those other platforms >> that's tup to roger good del. you used to have thursday night on nbc you're now going to have thursday night on amazon they've got thursday night football, baseball, apple's got baseball, amazon's been buying rights all across the globe for sports right now apple's moving into that space you know, we have a great relationship with espn, and we sell a lot of rights in our img sports business. we have 150 sports ranked globally that we sell.

tar there are bids all over the world for those, because it does drive subscriptions. >> you have so many, like pbr. >> we made a big deal at paramount, and fubo, and on the ufc side, we've sold out every single pay-per-view this quarter. we're having the best year we've ever had in sponsorship in all of our answer larry businesses so, you know, we're feeling very good where we sit. on the international side, our international rights are 100% higher, the value that we're getting right now for our

international rights so, and there's, we just made a deal in south korea with cj. we just made a deal in new zealand. we feel comfortable that there will be multiple bidders, but we have an unbelievable relationship with espn >> there's a lot of concern with disney right now, the problems they're facing with ron desantis, the governor in florida. what happened? >> vi have a brother in politics i try to stay out of politics. that's a very difficult situation that bob will have to navigate i think he's doing the best he can in that situation. because there are politics involved, as we know there's an election coming up in a couple years, and people will have to say whether they're running for president or not running for president, and he's going to have to navigate those

waters best for disney and their situation. >> and it looks like he tried to stay out of the politics as well do you think would have gone better if bob iger was there in. >> i think bob has done a good job. >> we'll see where they stand. >> i didn't blow it. >> we'll see anyway, up 21%, so no, you didn't blow it when we come back, we'll talk about apple's latest drop, we'll get the stock on pace for its worst week since the start of the pandemic. but their mis morning it is indd up about by 1% and later we'll talk about elon musk's deal being temporarily on hold.

how will your business adapt to change? you could hire an office full of peyton mannings. what's up, peyton? good morning, peyton. hold for peyton. they'd huddle.... welcome to the peytonverse. such a visionary. game plan... you go. no, you go! and call audibles... double our investment in omaha! omaha! omaha! omaha! or you could use workday. omaha. the finance, hr and planning system used by over half of the fortune 500.

for a be-agile-like-an-mvp world. workday. for a changing world.

you know, you hear a lot about celiac, but i never thought my dna would tell me i had a higher risk for it. i mean, i'm a food critic. i literally eat for a living. this can be a game changer. do you know what the future holds? welcome back to "squawk box," i'm dominick chu with a check on your morning movers so far today. if you look at this friday trade, we are keeping a close eye on some of those growth-oriented that have been sold off in the last couple weeks or maybe even months at this point check out shares of nvidia paypal holdings, netflix and meta platforms, the parent company of facebook all up between 1.5% and 3%.

many have been sold off a lot over the past couple weeks taking a little bit of a bounce. we'll see what happens with those names. also on the macro front, gold prices this morning at one point hit their lowest level all the way back to february 7 the gold price is at 1815. the lowest prices since february if you're looking at possibly what's happening with tdollar price, the value of the dollar keeps rising it takes away the appeal for some assets like gold. inflation sitill running at multi-tech aid highs and then finally, a check on cryptocurrencies bitcoin prices finally back above that 30,000 mark ether up about 8.5%. 2,099 the last trade there and some stablecoins just about

close to the dollar mark we'll keep a closer eye on those. keep it right here we'll have much more on the markets coming up. squawk pox "squawk box" will be after this break going on? where's regina? hi, i'm ladonna. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations, like real time cgi. okay... yeah... oh. don't worry i got it! become an agent of innovation with invesco qqq

and it's easier than ever to get your projects done right. with angi, you can connect with and see ratings and reviews. and when you book and pay throug you're covered by our happiness check out angi.com today. angi... and done. xfinity mobile runs on america's most reliable 5g network, but for up to half the price of verizon, so you have more money and when you book and pay throug you're covered by our happiness for more stuff. this phone? fewer groceries. this phone? more groceries! this phone? fewer concert tickets. this phone? more concert tickets. and not just for my shows. get $400 off an eligible samsung device with xfinity mobile.

take the savings challenge at xfinitymobile.com/mysavings or visit your xfinity store and talk to our switch squad today. this? this is supersonic wifi from xfinity. it's fast. like, ready-for- major-gig-speeds fast. like riding-a-cheetah fast. isn't that right, girl? whoa! it can connect hundreds of devices at once. [ in unison ] that's powerful. couldn't have said it better myself. and with three times the bandwidth, the gaming never has to end. slaying is our business. and business is good. unbeatable internet from xfinity. made to do anything so you can do anything. apple is on pace for its worst week in over two years the stock is down almost 10% over the past week and following the trend of many other big tech stocks, joining us now is tony sakanagi.

i guess if we say the nasdaq, tony, is down, let's round it up to 30. and some of the best-loved names are down even more than that do you see that it looks like the beginning of a bottom or base or do you think there's more work to be done in all these names to where you can confidently buy them, based on valuation? >> good morning, joe i think we're getting close to bottom so we do look at a number of aggregate valuation. and at its peak in november, it was trading about 50% premium to the market right now about a 25% rpremium o the market tech has come down from being a significant premium to a more

modest premium i think perhaps more importantly, the other really interesting thing that we track is the cohort of the most expensive technology stocks. and in november of last year >> toni, i'm sorry to interrupt you. we have to talk about another tech stock >> elon musk just tweeting again. he says still committed to acquisition after throwing everything into a tizzy this morning. twitter shares are down. >> s >> is that the exact tweet >> it is >> how much? >> it doesn't say. >> he's committed to the deal. >> nobody knows. >> what's happening to the retail investors today and by the way, the people who have had the most faith in elon musk, the ones who have bought in on this, they were down 25% this morning on his first tweet. and if you sold at that point, the stock's come back up >> let's look at tesla

he's going to argue that he's doing it all before the market opens. we're looking at the futures numbers. >> toni, what do you think of this, you cover tesla, right? what did you think before? what do you think now? >> look. i agree that this is problem aa negotiation tactic on behalf of elon the market has come down a lot so he's probably, you know, using the guise of true active users. but look, the whole twitter issue has been one of distraction from an investor's perspective for elon musk. he's clearly, has a lot of mind share focussed on this now and tesla stock generally has traded inversely to his involvement in the deal. and i think part of it is that folks still worried about the financing and whether elon may need to sell more shares, but i think part of it is this is a

ceo who's extraordinarily capable but already has his hands in many, many things, and if, you know, his energy and attention is going to be focussed on something else, that's a distraction in investors' eyes. >> look, you have a book to talk about apple. there's a lot of reasons why tesla stock has been down. >> absolutely. if you sort of follow the daily gyrations about what's been happening with tesla, typically, when there's been drama on the twitter side, you've seen tesla pull back. but certainly, there's been a broad-based pull back in the technology environment, that's mainly why tesla has come off its high close to 1200 to something closer to 800. but in the context of how tesla investors think about twitter, generally, i think the daily movements are suggesting that they view it as a distraction.

>> toni, just, you talk apple, you talk tesla, let's talk nasdaq we talk 30%. i'm trying to figure out whether we immediate that final, you know, just horrifying capitulation, single day, vix goes to 40, but the underhighing damage that's been done to faang, toall of the most-beloved tech stocks the do we need that one big final flush? or could we miss the actual low for the nasdaq by waiting for that and maybe we'd either get a short term or a hmedium-term rally. >> we could argue that we've sort of had that flush among the most-expensive technology stocks at the peak, they were trading, and we define this as the 28% of most expensive tech stocks at the peak, they were trading at 17 times build.

we have tremendous capitulation. the overall market for tech is in line in terms of its premium versus the broader market, with its 45-year average. so, sure, could we go lower? we could but we've had tremendous capitulation at the top of the market, and that's really what has driven the cascading downward pressure on the broader technology sector. >> toni, thanks, and thanks for the quick response to what, i'm going to stay on twitter and see if he says anything else we just don't know >> wow stay with us we'll continue to follow also coming up >> yes, adam jonas, morgan stanley's analyst there, why he remains bullish on thomas the tank engine.

breaking news this morning elon musk says his deal for twitter is on hold, pending more details about spam and the number of fake accounts on the platform that was what he said, oh, about 5:50 a.m. eastern time this morning. then just minutes ago, musk followed that up with another tweet saying still committed to the acquisition. take a look at the crazy ride the twitter shares have been on this morning in fact they crashed you have twitter shares down by

10.5 tesla share up by 5.5. first of all, when he said this, you saw the stock go down by about 25%, crashing. when he came back out and said still committed to the acquisition and people think okay, this is more about him trying to negotiate a better price, instead of paying $54, it came back up and down only 11% we just had this conversation. but it looks pretty clear like this may be a negotiation at this point there was speculation he was trying to back out of the deal entirely, potentially. maybe get a better price or maybe he was trying to back out, because andrew, you made the point that he only has to pay a billion dollars as a breakup fee. >> look, this is a renegotiation, but beyond this, this second tweet, which of

course everyone's trying to read the tea leaves on, he almost has to say that. if you read through the merger agreement, he has to be acting arguably in good faith if you were to say he woke up this morning and was out of the deal for reasons that made no sense, and increasingly, the link he included that there was only 5% spam bots and that was somehow new information, can you go all the way back into 2013, there was another filing in july '21 that actually said this already. so there may be a little bit of cleanup here if, if for some reason -- >> to get out of the deal? >> some of this may be to clean up legally again, all this, nothing's been filed. this all happening on twitter, which is ironic unto itself. >> right >> tesla's not going back down, kind of interesting. tesla immediately rallied on the notion that maybe he'd be, see

if it's backed off at all. in >> no. >> how about the trump spac? it's still up a little up about half of that. right now. wow, it's friday is it the summer not quite yet. but it's a friday, and it's the 13th it's more like april 1st i think. >> or april 20th, one of the two. >> yeah, that's right, 4/20. >> isn't it so damaging to twitter? >> i think it's damaging to just about everybody involved damaging to twitter. i think it hurts ehlon musk's credibility. he doesn't have to play by the rules, but what you see a lot of money changing hands and people who got burned maybe would be people who were following him saying i believe he's going to do the deal, comes out with the tweet, oh, maybe

not, i'm going to get out of it. now it's back up it's only down 10% now maybe if you were lucky, were you sleeping through all this. >> and the market doesn't open until 9:30 there's trading. >> it's thin volume. >> yeah. >> it's all premarket. so i don't know how many people -- >> he's now, i don't know if you guys have been following exactly what he's been saying. but in a number of interviews he's done. just this week when he did the interview with the "financial times. it was intended to be about tesla but turned into an interview about twitter. he ends every sentence or, you know, every part of it by saying if, if the deal goes through, or, you know, it may not go through, or i may not really own it it's sort of an interesting approach no other ceo approaches it that way. >> well, so is it a renegotiating deal which side are you on? you say you've been -- >> i'm in the renegotiation category at the moment

>> why are you saying he doesn't really want it when you keep saying if you -- i know there are a lot of champagne corks, does it go back in the bottle? that's kind of hard to do. >> like toothpaste >> you kind of have to shave it, champagne corks are coming back out now. what is it, 50/50 that he ends up with it what do you think the real odds are? >> i don't know. i don't know what they have ever been, and does he get it for 42? or what did we decide? 44.20? >> yeah. >> if you're the board, you're going to have to take almost whatever he offers that's, unless you think -- >> right >> there are bidders at much, much lower prices. but assuming that there's, that he's effectively provides a premium that's related to where it used to be, there's nobody else coming in at this point >> right and how, you know, if he, if he were to buy at the $54, that may

have been a price that holooked pretty steep a couple weeks ago, but how much steeper does it seem now with all the technology names in so many areas lots to speck hatulate this morg tesla shares have been higher this morning that stock had dropped 25% from the time they first announced the deal as of last night, it was down 25% it's up 5.7% on the idea that he's either not going to buy it or he'll get it at a much better price. and we are lucky enough to have a close watcher of tesla with us adam jonas with morgan stanley you don't cover twitter. you can't talk about the twitter deal, because morgan stanley's involved in the deal, but you do follow tesla what do you make of what some people are calling a circus at this point >> well, i think if you look

through the noise of when the market has definitely change this year. inflation, jaegeopolitics, secut is front and center. this is really important stuff i think it's time for your audience to really ask, what kind of future do we want to make for our children and for our country. this is the time, and i think that the tesla narrative, tesla, we've said, is an overvalued auto company but an undervalued onshore renewable production company. it is time to unleash the arsenal of democracy to control our energy destiny and we at morgan stanley, at least. we struggle to find a name that's better positioned than tesla to show us the way to do that >> i can follow the argument that tislesla is much more than

ah auto company i don't get it as a national security play on energy. explain that >> so you can't have your cars, your electric cars that we're buying in this country, 50% or 75% or more ofthe battery supply chain from china. if you think the department of energy is sleeping at night -- top priority. where are we going to get the metals and the materials, and can we control our destiny so to put numbers on it in terms of thousand could translate to a trillion dollar tesla or something like for more, globally, becky, we have maybe -- gig watt-hours. we need about 60x.

each terawatt hour, we're talking about a deca, i'm not even ruling out mining do i think tesla's going to own a mining company probably not, because they don't want the risk, but they are in pole position to work with the mining industry and get skin in the game >> so you like amc for getting into mining, too >> well, let me put it this way. -- five mining companies in the world market cap, actually, the top six, okay? their market cap is less than meta okay you can't have meta without metal. -- for your audience, again, i

think this market reset t's a time to reassess priorities, right? there's certainly a market turmoil, but morgan stanley, working with our colleagues across the sectors, we see the biggest capex cycle, we call it the mother of all capex cycles this battery and renewable cycle involves upstream, downstream, midstream, and your audience is going to be a part of it, and we need brains, too we need the children watching your program to take their talents and energy and get and help solve these problems, okay m because this -- i sometimes do props. this is the equation -- nation is energy innovation we need it now enough horsing around. >> adam, i can understand your argument on this point, but

remember, elon musk also has a huge exposure to china with tesla. and making sure that things there go very well how do you square up those two positions that this is a national security play for the united states, based on the metals, but he also as a company is very reliant on china and the production they're doing there >> it's a very good point, i'm glad you brought it up let's just say elon's national security clearance is probably higher than ours >> because of spacex in. >> well, yes this is, this is the thing that he's most concerned about. the spacex side. and that brings him into a realm where he understands these issues he's not naïve to this, oblivious to this. so you're right. as much as 40% of the revenues and easily over half their profit comes from china, completely unsustainable

i would urge your audience to calm expectations for tesla in china near term because of the lockdowns, but also longer term, because when you have a connected auto ecosystem, it's like a telecom utility you aren't going to have chinese telecoms operating here. i think there's a way for the chinese business to be listed in the chinese exchange and be a chinese entity and a financial umbilicus to tesla but it's the lens through which we're seeing the long-term for this company >> that is a different analysis than we've heard just about every -- >> what do you think >> just spinning off and being able to navigate those two, i don't know it's just a different take

i've heard a lot of people with very positive outlooks on tesla that just follow a different direction, not with splitting off the china business or focussing on mining alone. i get the idea of them being able to very, do a very good job of supply chain issues when a lot of other companies -- >> we've heard about the market pote potential flying robotic taxis on mars, and we've seen people try to figure that into tesla's price, but i've heard about autonomous flying taxis coming in a few years the person whose company was talking about is not really if favor of that right now. but the sky's the limit. do you think there are going to be millions of people on mars in years? 2025? adam >> no, i don't but the hard stuff, believe that innovation catalyst to make the problems on earth seem more like

more achievable, more solvable so listen. i didn't want to, becky, i don't want to leave you with the impression that tesla's going to be a mining company or that it's only a mining company, but the message is, the company that can guarantee the supply of the metals, renewably onshore or near shore with their allies will be the one that wins. >> and you think that china -- >> if you can't do that you won't win. >> i'm sorry we're losing some of your audio. mott not sure when you're dropping out. >> we can put a man on mars and we can't get audio >> i'm sorry. >> it's not your fault, it's technical. do you think that's where they stand as part of one company in company? >> if you look at the market with an ex-china basis, where

the national champs in europe are given their fair share and tesla can't hurt them too much, there is more than enough market in transportation, manufacturing, energy storage and even possibly aviation and other markets to sustain and provide upside from this market cap. in this market environment, i think we think tesla's probably held up a little too well. could the next hundred dollar move be lower? for long-term investors, you have to think about their role and re-architect beiing the plug of our broken supply chain don't you agree we need to control our destiny and where the metals come from >> yeah, i don't know if it happens through tesla, but i do think this country is going to be looking very seriously at

everything as an energy. i don't know if it happens through tesla. >> who would it be >> i would expect it to be the exxonmobils, chevron, the big mining conditions. we were in a better position a few years ago when there was more money being spent on capex. there could be any number of player whose do that anyway, adam, thank you for your unique perspective this morning. when we come back, a lot more on squawk ahead we've got more from our exclusive interview with the cfo of coinbase, this comes at the end of a hugely volatile week for crypto you're going to want to hear what she has to say about coinbase accounts, especially if you have one, and whether they are protected. also, take a look at where

things stand at this hour. a look at bitcoin veat or 30,000, back over 30,000 "squawk box" coming right back

gigawatt counting down to the opening

bell on wall street, who would be great to do this? dom chu. dom chu joins us now with a look at some of the morning's top premarket movers >> i love, between you, between andrew, between becky, he i love coming on because of all the love i get from you guys let's get through this so we can get you back to your program watch what's happening with fintech. 40% in the premarket trade better than expected revenues. the online lender also raised its four-year revenue outlook and announced it was extending its partnership with spotify shares are down roughly 90%. then robinhood the founder of ftx report as 7.5% stake in the company making

him the third biggest shareholder of robinhood robinhood has lost 90% of its value since 85 bucks a share back in august and then we're going to end on microstrategy. of course bitcoin prices are on the rise and fall, and microstrategy often follows suit microstrategy by the way owns roughly 129,000 bitcoins because those prices are on the rise, microstrategy is up 14.5%. andrew, i'll send things back over to you guys >> okay. microstrategy basically a levered play on bitcoin. one big levered play on bitcoin. coming up, talking about bitcoin, we're going to hear from the cfo of coinbase some comments, important

comments about the segregation of accounts or not and what would happen in the case of a bankruptcy plus, is this the week that throws crypto regulation efforts into high ar 'rgog to ask ro khanna in a few minutes. you're watching squawk on cnbc ♪ ♪ imagine a community where millions share ideas and trade stocks, crypto and beyond. to the moon? in other words... etoro.the power of social investing. you know that show i was telling you about? yeah i was so close to the stage when i saw her and she... she pulled me in. wasn't expecting that. it was literally... literally the greatest thing i've ever seen... scene... it was such a scene, but i looked pretty hot... so hot. i mean the look on his face...

face it! you really missed out on the best time... time of our lives. you really had to be there. when you're with amex, you always have a story to tell. it's never a question of if it's going to happen... it's when. ♪♪ - [narrator] it's a mixed up world. and the way we work looks a little different. but whether you embrace the new normal or just want to get back to the routines that feel right, x-chair continues to be at the forefront of change, which is why we've launched the all new x-chair with elemax. elemax combines gentle body temperature regulation with stress melting massage to increase your comfort working from home or at the office. feel more refreshed in seconds with dual fans that actively deliver a clean air flow or you can wrap your back in the soothing warmth of heat therapy and access four combinations of massage for deep relief from tension. our patented dynamic variable lumbar support and scifloat infinite recline technology remain unchanged. order an x-chair with elemax today. use code tv and get $50 off plus a free foot rest.

hey, change happened and we've made it a good thing with all new elemax from x-chair. now the future feels better than ever before. order x-chair with elemax today. use code tv and get $50 off plus a free foot rest.

alesia haa welcome back to "squawk box. coinbase hitting a new 52-week low yesterday. up about 14% this morning. last night i spoke with the company's cfo alesia haas in an exclusive interview and asked whether they've seen people move theiraccounts out. >> the past couple weeks have been really volatile we've seen a lot of activity in crypto in q1, prices came down, but our assets on platform were just as strong as q3 so they just came off the q4 highs. we continue to have strong market share in the total crypto assets that we store on our platform, and we're not seeing assets move in great numbers we are seeing that, though we're excited for the growth of decentralized finance. but what we're seeing is people moving their money in between

centralized crypto, decentralized crypto and back again. it's no different than what we're seeing in the equity markets. we're seeing it in stablecoins where money is flowing more into usdc there's stability. but there's a flight to liquidity. those are consistent things we see with the broader, overall stock markets. >> how concerned are you that crypto and bitcoin in particular hasn't been this uncorrelated asset that in large part was its promise? >> it's true it's true. we've seen it trade more in line with stocks and the nasdaq over the last few quarters. and i think that we're still learns learning, quite candidly we've seen strong correlations it's been such a short time, compared to bitcoin's life that

we've seen this correlation, though, i don't know what to call it. i don't know if this will continue or whether it will break at some point in time. to be determined for the long term >> in a 10q filing, they said because custodially held crypto assets may be considered property of a bankruptcy estate, they could be subject to bankruptcy proceedings and could be considered as general unsecured creditors. after that, brian armstrong tweeting your funds are safe at coinbase just as they've always been so you have no risk. are customers segregated and insured in any way in the event of a bankruptcy? and here was the response. >> our customer assets are safe. thank you for the opportunity to address their. customer assets are absolutely

safe there are two levels of protections. one is operational controls. each account is segregated separately held in each client's name on our ledgers. we know it's andrew's money. every dollar that we hold is held dollar for dollar for you we just give you back your dollar there's no other asset or liability you need to pay off. two, in addition to the operational controls we have legal protections. we state it is your asset. we are holding it on your behalf and those legal protections should benefit all of our users. so why the risk factors might be your followup question why do we make this disclosure we believe our client assets are safe, legally, operationally, but kcrypto is a brand-new

nascent entity you name every bad thing that could possibly happen, you point to bankruptcy. because of lack of case law, we thought it prudent to put in a disclosure and a risk factor and that is what caused the headline >> just to be clear, though, if in fact coinbase were to have to file for bankruptcy, and we're not suggesting that is the case at all it is possible the creditors in the company you think could go after customer accounts and that a judge effectively could force you to keep and hold onto that money and give it to those creditors as opposed to those customers? >> we brieelieve we have strong legal protections and that would not be the case. but it is a very small tail risk

that it could happen things can happen even if they should not happen. >> and is that just for retail investors at coinbase or also institutional investors at coinbase >> so we have two products, a custody product held in a trust company, on the blockchain though they're held in customer name no risk. everything else is held in a trading account in which we segregate the assets in our ledgers. they're held in the customer's ma name, operationally and legally secure, but there is no case law. >> who is in the trust company, and who is not in the trust company? i'm sorry. >> -- custody. >> whose products are in that custody product relative to this other group? >> we have a custody product that we offer to institutions, high net worth individual whose choose to have assets in

custody. that product is available for all customers who choose to access it. and we also have our trading products >> would you look to try to change the way the trading product is custodied >> you know, we don't believe that we need to, because we believe we have very strong operational legal controls and the assets are absolutely safe i think that having one's assets in a trading account allows to you access 24-hour accounts. having your assets in custody does not offer that same usability. >> so there you have it, guys. an explanation, at least as she sees it, a confidence that customers would get their money back i think the truth is, and the real question is, the good news is, it is all, they've de-marked if you will, what each account is, so it's not all sitting in one pot if there was ever a problem, and you'd like to think that a judge would therefore try

to give the money back to the customers before the creditor. but you have to rely on a judge. think about lehman brothers. the money was frozen for a very long time because there was a legal process with which it had to get effectively unravelled. and so the idea that the money is yours and it can come straight back to you, you know, like that, that, i'm not sure, is necessarily the case in a bankruptcy again, all of these are black swan-like risks, and hopefully, as she called them, tail risks, but they're risks nonetheless. and by the way, they're often, in truth, the risks that you take when you are invested through all sorts of other brokerage accounts as well so this is not specific or new in many ways to this entire space, just because it's crypto. >> right >> but it is crypto, which makes you think, wow, that's different

than all the other securities you're talking about but then i'm back to, but is it really different because stocks, they, you know, a lot of tech stocks would be happy with just a 50% loss in the past year. but it just seems like the way you view crypto, no one thinks that the stock market's going to zero people, there's plenty of people that still posit, you know, warren says he wouldn't give, what did he say? >> 25 bucks for all of it. >> naked emperors and all that i don't know, a $30,000 suit of clothes is still pretty expensive, i think >> the one point, she said herself, there's no case law on this you don't know what would happen because it's a new asset of the the big question i had, if you're in the protected trust products that are there, you don't have readily available access to it is that because of the law are you not allowed to that situation in o

or could they make it that everybody was in a trust and hundred yo had access to it >> i asked her on that tape, and i think it played, about whether or not she'd think about ever putting everybody into a custody-style product and she said no. and the reason for that is i don't believe that you can necessarily be trading in the custody, in a -- >> legally >> in a custodial product in the same way so those are institutions, high-net-worth individuals that are in some cases holding assets i don't know that they're trading assets i think when you're in the trading business it's slightly different. >> that would make sense i'm sorry. >> go ahead. >> that would make sense i figure there has to be a legal reason for it. it's not going to play well, when it's institutions and high level individuals in the protected, and maybe a retail

trader on an unprotected basis it's problemably a legal issue >> we should say this again to anybody who's watching this is true of crypto this is also true of just about every brokerage account out there. now a lot of those firms, people look at as being stronger or at least less speculative of the firm unto themselves. that's why this has become an issue. we've got a programming note, we want to you tune in with ben bernanke speaking out for the first time in a long time, a new book out called "21st century monetary policy. he's got a lot of thoughts on crypto and so much more. all of that interview starts at 6:00 a.m. on monday.

all right, coming up, california congressman ro khanna will join us live. lots to talk about this morning, including whether plunging crypto prices will spur new regulations out of washington. plus this thoughts on the latest twitter drama, starring elon musk don't go anywhere. "squawk box" will be right back. , you immediately get your shortlist of quality candidates, whose resumes on indeed match your job criteria. visit indeed.com/hire and get started today.

this is lisa. whose resumes on indeed match she's a poshteria. virtual receptionist. when you're busy, she'll answer your calls and assist your clients. you can't be in two places at once, let posh answer. posh virtual receptionists. cal: our confident forever plan is possible with a cfp® professional. a cfp® professional can help you build a complete financial plan. visit letsmakeaplan.org to find your cfp® professional. ♪♪

back to our top story, elon

musk throwing twitter stock into a tailspin with updates on his $44 billion deal to buy the company. julia bore stin joins us for more >> i think investors are getting whiplash this morning from elon musk about 45 minutes ago he tweeted out, still committed to the acquisition. although he tweet the earlier, twitter deal temporarily on hold pending details supporting calculation that spam/fake accounts do indeed represent 5%. now this twitter filing about a week and a half ago came after musk said that one of his top priorities was to remove what he called spam bots from the platform so the tweets this morning are raising speculation that musk could be looking for a way out of the deal. he can certainly afford the $1

billion breakup fee, or he could be looking to renegotiate the deal at a lower price tag. shares closed yesterday at $35.08 a more than $9 billion gap from where musk is valued now than how much he was forecasted to pay. it's noted musk's personal wealth has declined. tesla's shock is down by about a third since he disclosed his stake in twitter and we learned that the sec is investigating musk for delayed notification of his twitter share acquisition. we already knew the ftc had a separate probe under way about his share reporting. but, if musk is looking at alternatives, he did waive his right to carry out due diligence, which many have said has made it harder for him to argue in court that twitter misled him, because he did waive those rights so we wait to hear more about

musk's immigration about spam and bot accounts yesterday, two of the company's most senior executives were pushed out one in charge of consumer products, another in charge of revenue. and the company's putting hiring on hold. of course all of this raises concerns about what the value of twitter will be if this deal does not go through. becky? andrew >> oh. thanks, julia. my question to you is, we keep talking about this billion dollar breakup fee and that he can just walk at will. and when you really look through the statement, there's what appears to be a reasonable best efforts that are necessary i don't know if's commercially available best efforts means, also effectively legally, he would be required to buy the company at that price. obviously, that could get negotiated down if he so chose, but they could sue him,

effectively to do that once he has the financing, and it appears he has the financing >> well, it does appear he has the financing. but that's why it's so interesting that he waived the opportunity to do that due diligence, because i do think it makes twitter's ability to sue him or musk's standing on this, of course, you know, he has less of an opportunity to say he was misled if he did waive those rights so we'll see what this investigation comes up with, but andu an andrew, you just have to wonder if he's looking for an out he followed up with that tweet that he still wants to make this deal is perhaps him saying he is doing his best effort and not looking to back out. a lot of back and forth, we'll continue to watch twitter and see what musk poses next but i think he's aware of those legal responsibilities, and he

is mercurial that's his reputation. >> jieoining us is congressman khanna he's the rarest of species that a pro, progressive capitalist. it's hard to get my head around it we follow each other on twitter. and i see things that you tweet and you see things that i tweet, and somehow we still discuss the ticket together in 2024, whether it's joe-ro. it's almost like reagan and tip o'neill. don't you think that's about where we are the old school >> you're on the top of the ticket there are a lot of bots on twitter and a lot of spam on twitter. >> the stuff you see is actually me and i can't believe some of the stuff that you tweet out is you.

anyway seriously, ro. you appreciate silicon valley as much as anyone does. i'm sure you want twitter to eventually succeed do you want e-ronlon musk to fil buy twitter? or are you the knee jerk, it's fine with the "washington post" but not fine with twitter. >> he is a great entrepreneur and understands thoushow to run businesses some of his ideas like eliminating bots, making sure there's no spam would probably help, improve twitter. the key, i think, is if he does do this, does he have some independence in the governorance, so it's not elon musk deciding whose tweets should be on, what tweets should be on. but no one denies he has skill as a business leader >> do you think there's some disagreement on independence on

how they have been acting? it's okay that that was the side that was running things? what do you have a problem with? do you really want an independent board? that's not what we had >> i think jack dorsey, in fairness to him, tried dorsey was against blunt censorship he reversed himself on the whole hunter biden story they're trying, these are hard questions. all i'm say something elon musk shouldn't be the one making all the calls, just like by the way at this "washington post," jeff bezos doesn't make all the calls. they have an independent editorial board. so can elon musk institute something like that. >> as far as the developments of the day, crazy you see problems with the way this was, this is playing out? the first tweet, the second tweet, the movements in the stock? i mean, the sec's already

involved with some prior moves that elon musk said. when you saw what was happening today, did one of your eyebrows go up? >> look, elon musk tweets a lot. if i were, the next time i talk to him, don't tweet about the sec. don't tweet about purchasing stuff. i don't know if you tweeted 10% less. i don't mind if he trolls people or other things, there's certain things you shouldn't be tweeting about, and it unnecessarily causes complications the sec is probably one of those things or what you're going to do in purchasing or not purchasing there's some judgment, this is just like he shouldn't be running all the decisions on twitter, and he needs some independent board. >> how about crypto? and i'm not sure, this doesn't really, crypto isn't easily splittable into right and left it's got fans in the republican party and fans in the democratic party. what kind of regulation do you see, would you like a light

touch? a heavy touch? do you think it's here to stay instay do you think it will be improved if the government gets involved in a more strident way >> it's here to stay it's a technology that can decentralize it can cut costs of the middleman, but there are certain things that you have to regulate look at terra that went to zero. they marketed themselves as a stablecoin a stablecoin is simply something backed by dollars, and terra had no backing of dollars. it was an algorithm of luna coins. some people in the valley may understand that. the vast majority of people thought this was a coin backed by dollars, and it wasn't backed by dollars that, to me, is almost fraud that needs to be regulated you can't market yourself as a stablecoin if you don't have dollars. there need to be certain requirements of reserves

there need to be disclose requirements what if i'm on a moplatform, my identity gets hacked i lose all my crypto. there needs to be smart regulation >> and what kind of timeline it seems like congress gets bogged down in a lot of different things do we expect anything near term that would clear things up for all the players involved the people involved with crypto, consumers, customers, everything else >> joe, i'm not optimistic first we have to figure out how we understand in congress what is blockchain, what are cryptocurrencies then we can get to regulating it so we're behind. but i wish we weren't just like, okay, crypto is all good, crypto is all bad the reality is it's a platform here to stay tech companies are down 50%. crypto's down probably 70%, that's because it's an early technology it goes up higher, it comes down

more it's here to stay. but now let's think about how we protect consumers. and if we took that approach as opposed to crypto's going to destroy everything or crypto is the panacea for our problems, just a reasonable approach to smart regulation is what we need. know when we start planningour actual moves you can do a lot of fund-raising out there with all of the mega downers out in silicon valley. i have the old maga types. we -- we can cover in terms of fund-raising >> as long as you're on top. >> you're a sports fan >> you're a young guy. >> you've got plenty of time >> you can connect across the country. i'll support you but you've got the common person's touch >> that's true thanks, congressman. we will see you. joe-ro '24 >> let's get to the new york stock exchange and check in with

jim cramer i don't know where to start today's. you want to talk about twitter, tesla, the dow indicated up 300 points at this moment >> look, i think there are a lot of people who felt that we got sam backman fried coming in and saving the western world and musk no longer selling tesla there are all these people who come in and become very important in the vast scheme of things of hanging together when we're down almost 20%. i thought joe's -- your commentary about alicia haas and how much better you feel after she speaks about how sacred it is for your account, you know, coinbase i feel much better, right? you feel better? so i go to jamie dimon's office, i go to jpmorgan i say listen, i got a lot of this ethereum. i want you to take it from me.

i'm getting 8% it worries me. it wasn't with these people. they said we're not going to take your ethereum are you kidding me i said i have been a customer for 40 years you're taking my ethereum. they said i don't care how long you have been a customer we're not taking it. that's a wake-up call that a bank that i have done business with for 40 years isn't taking my ethereum. it's an interesting situation. kind of a used car hey, you're on your own. if you want to be in a used car situation, go ahead. i cut back dramatically after that because i said, if i can't find an outfit that makes me feel like i can sleep at night, i'm going to cut back. and that's what i did. because i don't want -- i don't want to wake up to find i don't have money in the account. that would be what i call a suboptimal situation >> so you're not buying it it doesn't make you feel better. >> i kept some on for what we call price discovery which means i'm an idiot to keep any on, but

i have to tell you, when you deal with jpmorgan, listen, i want to send you money i want to send you a million dollars. we don't want your million, that's a telling moment. >> you weren't offering a million dollars, you were offering ethereum. >> good as gold. i could open the first bank of nicaragua. >> el salvador maybe anyway, jim, we'll see you - >> look, it's okay there's a lot of risk. you have to know there's risk. >> we have definitely seen that this week. we'll see you in a few minutes, lle im "ua b" sqwkox wi bright back and you had to wrestle a massively complex supply chain to satisfy cravings from tokyo to toledo? so you partner with ibm consulting to bring together data and workflows so that every driver and merchandiser can serve up jalapeño, sesame, and chocolate-covered goodness with real-time, data-driven precision. let's create supply chains

that have an appetite for performance. ibm. let's create. flexshares are carefully constructed. to go beyond ordinary etfs. and strengthen client confidence in you. before investing consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully.

i'm dan o'dowd and i approved this message. for a prospectus conttesla's full self-ation. driving technology. the washington post reported on "owners of teslas fighting for control..." "i'm trying..." watch this tesla "slam into a bike lane bollard..." "oh [bleeped f***]" this one "fails to stop for a pedestrian in a crosswalk." "experts see deep flaws." "that was the worst thing i've ever seen in my life."

to stop tesla's full self-driving software... vote dan o'dowd for u.s. senate. welcome back to "squawk box. stock futures are higher this morning and improving after import prices came in unchanged for april. the dow is still on space to post its longest weekly losing streak in 20 years seven straight weeks of declines jason trenor is here, it's been a heck of a week do you feel any better at the end of it? >> not really. i have to tell you, andrew, as we have talked about before, i think when you look at inflation that's over 8%, and you look at a fed funds rate that's 75 basis points, there's a long way to go there are elements of inflation that are structural, that are not easily fixed i do think you're starting to

separate the wheat from the chaff in terms of high quality companies that return money to shareholders and a lot of other companies that don't have much in the way of earnings or cash flows that are still trading at nose bleed valuations. so i don't feel -- to be honest, i don't feel a lot better. >> jason, arguably prices have come down. what is fair value then in your mind meaning, i think there are some people who say, it's been a tough week, but maybe there's been stuff, the baby has been thrown out with the bath water maybe there's something in here. >> and andrew, there absolutely is in late march, we put out a piece, we used 230 for s&p 500 operating earnings we said downside for us would be 16 times earnings. that gave you something just shy of 3700. that's where we kind of saw fair value at that point. i think that's, again, i think that's valid i think there are very interesting opportunities in some very high -- again, high

quality companies that pay dividends or buy back shares there is still, though, an enormous reservoir of speculative issues and speculative assets out there that i think are going to hit the cement floor i don't think there's much in the way of a safety net. again, given where monetary policy is. >> at this moment, jason, what is the downside risk, we can do it on the s&p and dow. let's go all three downside risk versus upside at this point >> well, listen, and i'm just doing this off the top of my head i would say s&p and dow, the downside is less, if probably 10 to 15% from here would be the downside the upside, i don't think would be a lot higher than 10%, personally, because i think we're rerating stocks given where inflation and long term interest rates are nasdaq, i think you would have to put the bands wider because they do, nasdaq does contain a

lot of companies without earnings and cash flows so we're focused on what we call short duration stocks where the entire value isn't tied up with the terminal value of the company. >> you have to take on crypto? >> listen, my take on crypto has always been that its biggest risk is government regulation, because economic policy types are very territorial, and they don't -- they like having controlling monetary policy and taxes. so there's nothing more long duration than crypto and so i don't own any it has a 12-year brand, gold has a 5,000-year-old brand if i'm looking to hedge inflation, let's put it this way, i would prefer to use gold than crypto. having said that, i wouldn't short it if you put a gun to my head it could easily double, but it's

a speculative instrument in my opinion. >> jason, want to thank you. a nice way to tease what we have on monday. ben bernanke is going to be with us and you'll see his comments on inflation and crypto as well. it's been a heck of a last three hours, guys. >> it has. way to crash into the weekend here >> a long day. good friday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cr cramer futures with a bounce on this friday the 13th. stocks still on pace for the worst week since january i got some optimism about china lockdowns, bitcoin above 30k and the latest in the elon musk twitter circus musk served drama about his future on the twitter deal, sending shares on wild swings. a bottom or a