kellogg's said the same thing. we have the first on cnbc interview with the cfo of starbucks. it's friday, november 4th, 2022. "squawk box" begins right now. good morning welcome to "squawk box" here on cnbc we are live at the nasdaq market site in times square i'm andrew ross sorkin along with joe kernen and rebecca quick is at the baron conference >> good morning. we are here this morning at lincoln center the 29th investment conference in new york city we have been here before it has been a few years because of covid everybody is back. it feels like here we go again

ron baron will scjoin us in a fw minutes. we want to hear what ron is thinking about withthe markets get his take on where things stand. he is a long-term investor he looks for opportunities he looks for companies that he thinks are going to produce over time we will talk about those things and joined about the heads of the companies that ron has invested in. including the ceos of hyatt hotels and resorts we will get a chance to talk to him about everything ron is a big topic of conversation and he is an investor in elon's company investor in tesla. he saw this company in 2014 with the first investment also in spacex and in twitter. we will get a chance to talk about all of those things coming up in a few minutes. gentlemen, back over to you.

we are getting ready at lincoln center. >> thank you becky. i can't wait we know on june 16th, ron sent us all emails about the investment opportunity of a lifetime we tested those lows and we bounced again and ron is again coming back to us and saying i still think that was the investment at that point and still the investment opportunity of the generation. he has been in for 40 years. i forget when he founded it. >> the firm founded 40 years ago this year. the 29th annual conference, but 40th anniversary of the firm. >> you see the elliott management that we are ushering in a period of hyper inflation the worst period we had since world war ii i'm wondering what ron's response to that and whether he

thinks 3600 could be the low what if it is 3400 or 3200 does he care it is not the absolute -- >> my guess would be no. my guess would be no he will tell you the market is the best place to be he has been a preacher to protect your money by putting it in the market. the best hedge of inflation. he is sitting right here. >> i'm scared about the druckenmiller. >> yeah. >> 40 years is sweet there were moments where it pulled back. it basically was from 800 to 32,000 >> right >> 32,000 on the dow in ten years. >> ron is ready to go. he's ready to jump in. he is sitting here and he wants

to answer your questions let's do this quickly. take a check on the markets right now. so you know where things stand little settling in terms of ahead of the conversation with ron. you are looking at the dow up. nasdaq up and s&p 500 up as well look at treasury yields. 10-year treasury -- mac, go right there or a little bit over thanks 4.137. 2-year treasury at 4.744 jobs friday. forecast is adding 205,000 jobs in october down from 263,000 in september we bring you the analysis at 8:30 a.m twitter employees, literally, are bracing for layoffs today. the email sent to workers yesterday. viewed by nbc news the company said staffers would

be notified by email about their employment or maybe lack of. it said, we recognize this will impact a number of individuals who made valuable contributions to twitter this action is unfortunately necessary to ensure the company's success moving forward. the message said staff members would get notices this morning through company email accounts whether they still have jobs or via personal accounts if their employment is impacted you have your phone out. >> did you go to gmail or checking your work >> you know people >> i heard from a couple of people last night who i think are anxious they will be impacted there are good people who work there. it is a hard time. a hard time for tech when you think of 50% of the company disappearing overnight and on the individual basis, a family and everything else

of course, having jobs report friday. >> a rough way to get informed you know what? i guess if you love remote work, you will get remotely fired when you don't have a job >> i don't know if you saw it. they sent out a notice yesterday saying they are clogssing the offices today to do this if it you are in the office, leave. if you are in the office, don't come badges, i believe, today, this is now are suspended they don't want people in the office getting fired and taking stuff from the office. doing this en masse is quite a thing. >> we'll talk about it separately, the wall street journal reporting more companies paused advertising on twitter following the elon musk takeover that follows general mills and

pfizer and audi and mondelez some cited uncertainty and some cited scaleback of content if everything were to come out, if it was no longer censored on twitter about pfizer those guys had it made that's a new tie, is it not? >> you know, it might be new to you. i had it for some time >> if it is new to me, i think it's new isn't that true for anyone >> i think i might have worn it during the pandemic. when we were in our remote worlds >> you don't like it >> we got news to do it has the pattern on it that is unusual. >> i like it >> it can throw your eye >> it is like escher-like. >> you can have a complex. amazon pausing hiring for

roles in the work force according to the memo from staff. hiring had been frozen for corporate worlds and lyft cutting 13% of the work force. citing possible recession in the next year and rising ride share insurance costs. and online company stripe laying off 1100 employees according to the ceo. raising inflation and fears of recession and energy shocks and trying to right size investments. a lot going on in tech land and unfortunately for a lot of folks and individuals and families job losses on the horizon here becky. andrew, when we come back, the main event ron baron joins us live from the

baron investment conference here in new york city he is talking about the economy and where he is putting his money to work and twitter and tesla. that's after this break. you are watching "squawk box" and th is iscnbc we are live today from lyincoln center >> announcer: this cnbc program is sponsored by baird. visit bairddifference.com. the hiring process used to be the death of me. but with upwork... with upwork the hiring process is fast and flexible.

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all right. welcome back after a two-year hiatus, the baron investment conference is back at the lincoln center this is the 29th annual conference the firm is celebrating its 40th anniversary this year. we want to bring in our guest. ron baron. the chairman and ceo of baron capital. ron, thank you for having us here today it is good to be back. >> great to be back. thank you very much. >> the theme this year is anything is possible you are pretty much an example of just that >> yes, so is elon elon more. my career and life has been amazing. my grandparents would never believe it one thing before we start. >> yes >> i wanted first of all, joe, you have a really nice

compliment of picking the market bottom wait to invest 10% tore 20% you used to tell me you were afraid to open up the 401(k) all of a sudden, you say on television, recently, i'm buying congratulations to that. >> thanks. let's see how you feel the market is headed from here if this is a generational buying opportunity. >> one thing about three or four weeks ago, my son michael baron and i went to japan for two or three days and went to korea. we get to korea on friday evening around 5:00 at night we get to the hotel. picked up by the black suv and get to the hotel driver runs around and opens my door as he opens the door, a black

tesla pulls up alongside the car. the man in the car jumps out of the car and goes ron baron, can i have a picture with you? my son said this is korea. that is because of cnbc. thank you. >> we want to thank you for coming on with us and talking to us about what you see in the markets. it helps the viewers let's talk about what you see. ron, this is a concerning time for a lot of people. markets have been down substantially this year. last month was a good one. a lot of questions of whether that will last or a one-off given what the fed is doing. i know you take a few steps back from the market. when you do, what do you see >> well, the way i think about it is inflation is always present. always everything that's in my life and in everyone's life -- my whole life is 4% or 5% a year.

not 2% or 10%. that means everything doubles in price on average about every 14 or 15 years. i look back at my parents house they bought in 1948. $5,000 it is now worth $400,000 steak or meat was 67 cents a pound in law school. now $11 a pound. i couldn't afford to shop there before and still can't afford to shop there tuition, cars, everything you want to buy. you have to protect yourself you have to protect yourself and the stock market doublesevery nine or ten years. that satis because businesses gw about 7% a year 2% real and 10% inflation. the stock market doubles and

every 14 or 15 years, everything you buy falls in half. we try to double your money every five or six years. by investing in companies instead of growing 6%. we double five or six. the easy thing to do is invest in index fund. you don't have to worry about picking stocks the market or your money falls in half every 15 years somehow you have to protect. you have to own stuff. >> is this time different? joe mentioned stan druckenmiller, that you could be in for a period of ten years or longer where the market could not do anything. >> nobody more brilliant about the market than druckenmiller druckedruckenmiller.

i have never seen anybody pick the stock market better than anyone we find the great companies and great people and people we trust and people we like tom pritzker is my friend. he says you know i have been trying to figure out how you do this how does this happen how do you pick stocks i figured it out you try to find people who you really like who you really admire and think are great and you can trust them you invest and find out a way to invest with them if you like the person, you figure out a way that's what you do i think that is what we do we find and it goes back to when i was a kid and in asbury park one guy owned the rides on the boardwalk. people go to the boardwalk and play the cupie dolls or umbrella

franchise. i see these things and my whole life is the people who my grandfather started off as a construction worker and then owned a candy store. he just figured output more pink balls in there to bounce the penny on the street. it is about being long term about everything the people who have done the best have invested in the long term in business that takes you through the inflation. one more thing a week ago there was an article in the times interviewing six or seven money managers everyone said we wait until inflation peaks and rates go down except one guy he says we will get through this he said in 1963, we were stopping the cuban missile crisis and stopping russian

ships in the ocean we got through that. they had the national guard shooting kids on campuses. we got through that. we had assassination of political leaders. we got through that. there are all of these things that happen all the time on the other hand, this chaos whenever when had it before, we come through and the stock market is 800. it is now 32,000 >> are you putting more money to work right now because you can find more opportunities because prices have come down or is this a situation where you literally keep your head down and it is business as usual? >> last november or october, you could not find things that were expensive. they were cheap. now you can't find things that are expensive. if i had more money to invest, i would invest it. i'm vested. >> fully vested? >> yeah. we get more money in chunks.

as soon as we get it, we invest it i find things everywhere that doesn't mean this is the bottom that means this is the great time to invest you will hear hyatt and vail those are companies we invest. these are companies selling and buy in their stock they have a couple of percent yield and shrink capitalization. there are benefits from inflation. in the 1970s, when i was investing in the beginning and a lot of inflation at that period of time, i would not understand. the stock market kept going down these businesses in which i'm investing, once they own gets more valuable. in the 1970s, the stock market was going down, but the businesses i'm investing, in the 1

1970s, they are making money because the companies we're investing in they kept growing through it all now disney and mcdonald's and federal express and nike kept growing. and philanttropicana. i would not have been able to make a living being a long-term investor in the '70s sell nike to buy hyatt what would happen is that i look back after ten years or 15 years. i said i'm a disaster. look at the companies that i recommended selling. i could have been rich they doubled or tripled. they are up 30 times or 20 times or 50 times. that's what happened that is how i became a long-term investor >> areyou are a loyal investor i remember your holding term was 12 years i don't know what it is right now. there are points where you have

sold out of companies. i think of a few you are not in generac these were stocks where you loved the management and people behind it. >> under armour, we did well we made about 7 or 8 times our money. i felt i made a mistake. the stock fell and we sold it and we made ftwo or three times our money. we made money before it sold in case of generac, i met jack a long time ago. i got you to buy a generator in your home. you would be a great advertiser for generac. we had a weekend house whenever it rained, we had no electricity. now we move out to east hampton. i say this time i'm getting a generator. we had a giant generator this company is going public everyone should have a generac.

1% of houses d you did. then p they go public and $12 a share. i really like the people who owned it i thought aaron jack fellow was amazing. we ended up investing $12 or $13 a share. in the next two years, we got $11 of return of capital dividend instead of $12 cost, we had a $1 cost hurricane sandy goes and the stock goes to $50 a share. we visit we were visiting regularly they were buying other industrial businesses and motor businesses and it did not have the same appeal it did before if i had been true to my idea of staying invested with someone, i would have stayed invested with him. he is a spectacular guy. i sold the stock went to $300

i kept it on my screen recently, covid play and went from $300 to $100. twice what i sold it for. >> are you still looking at it >> periodically. i'm an investor in a battery company which is tesla i always think that batteries are a challenge to that. on the other hand, you have to have distributed electricity you can't rely on the utilities. you have the freeze in texas which was a big deal for the company and what was happening in california with the fires that was a big deal for generac. turn off your electricity. if you don't have electricity, how does it work i think about it periodically. rebecca ellen says i should study it again i don't have a surplus of cash right now. if i had it, i would think about

it more. >> i'm guessing the person you've bet on the earliest is elon musk. is that the case >> we have made a lot of money with him right now, we have an investment in tesla which is about $4 billion. $1 billion for me. $3 billion from finance. i sold about $1 billion of stock for clients. i was the last one to purchase i don't buy stocks i only invest in mutual funds n. this case, i told our board i said i'm not buying stock. what i like to do is not buy it personally, but for baron capital. i'm not going to sell it until i sell every single share for clients. we sold 20% for clients. i said that i didn't want people to think i'm crazy four or five years it stayed

stable and it went up. i said everyone was criticizing me criticizing me for buying it initially. then criticized me at the end for not selling it you shouldn't buy it if you own it and made money, now sell it. i sold it for them >> you sold some to make sure it wasn't too much of your funds at some point it had grown so rapidly. >> it is still in the baron fund now it is 40%. it is 20% in baron focused fund. those funds are $13. the stock is $230. i think i'll make seven times here in the next ten years i will make 1.5% or 2% in the next three years in 2025, it will be $500 it is now $228 in ten years, we ought to be $4

trillion he lo elon says it will be bigger than apple and saudi aramco together. >> do you believe that >> yes i think that it is hard to believe. >> yes >> in 2030, if he does simple math, if he does 20 million cars a year, it is 100 million cars sold if he does 20 million cars a year and $50,000 a car, that is $1 trillion of revenue he has operating profit of 30% that means $300 billion. that's 4$.5 trillion that's how you get those numbers. that's not including robust or autonomous vehicles or batteries. that is not including robots he thinks robots are bigger be cars so many things happening in

tesla. how do you keep track of this? you run these companies. how do you do that >> let's use this as a tease we have a lot more to talk about with elon musk and your in investment with him and all of his companies. we should point out you are personally and through baron an investor in twitter. we will talk about that. we will talk with ron throughout the show and special guests. we will hear from the ceos of the companies in the baron portfolio. we will talk to vail resorts and hyatt hotels guys, a special guest coming later. we usually keep the guest list quiet. we will share with you some you might want to hear from we will tell you about that later this morning >> what a tease. can we talk about the musicians or something else on tap come on. >> stick around. >> you share it with us, but not share.

>> not yet. >> the tease in the tv business. >> we'll share with you. not yet. i know we have to get to a commercial break when you come back and talk to us >> give me hints >> you want to stay. trust me. >> do we know any? >> 8 billion people. >> are we talking musician or business person? >> i'm not tell you anything else we'll tell you after. >> a musical business. you don't have taylor swift. >> it is somebody you both want to know. i promise. all right. coming up, rumors based on earnings straight head including two crypto related stocks trading higher. that's up next. later, first on cnbc interview with the ceo of doordash and cfo of starbucks. "squawk box" will be right back.

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in the pre-market, coinbase shares are higher. company did report a loss of 2.43 a share revenue plummeted 50% from the year earlier as traders turned away from crypto coinbase monthly transaction users fell from 9 million in the prior quarter to 8.5 million that was better than the 7.8 million and analysts were for forecasting. look at the chart. you see it is bouncing at the wo bottom. block, formerly known as square beating estimates of 22 cents. the company registered a bitcoin

lost of $2 billion that it bought in late 2020. the company still holds $156 million of bitcoin based on the price at the end of september. we talked about the company with bitcoin on the balance sheet and if that would be good or bad >> and really stable not for nothing. >> we'll see whether this is the moment >> that's when -- >> the put up or shut up moment happens? >> i'm no spring chicken i would buy bitcoin. i would. i know it is a different thing, but 20,000 if you liked it at 40, i'm not recommending that. i'm not -- i don't play one on tv >> we got to get back to ron baron live from the investment conference becky has a big tease of who is

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if you are going house hunting this weekend, you will

feel lonely, but more houses for sale changes in the numbers and competition. diana olick joins us now with more halloween has come and gone. you never stood outside in haddonfield. you never see michael myers. you never did that >> you know why, joe the housing market was too scary. how do you like that >> i like that >> i have the lovely indoor studio i got you on that one. i don't have to tell you i said it 100 times. the past two years, nothing for sale there is more for sale now not because more sellers are listing, but because homes are sitting on the market much longer the number of active listings jumped 33.5% in october from the month before hitting the highest level in two years according to realtor.com this as new listings dropped 16% and pending listings s dropped

30%. there is more for sale because homes are sitting for six days on average from last october 20% of all listings have had a price cut. that is double the share from a year ago all real estate is local among the 50 largest 42 saw the rise. phoenix up 100% from a year ago. raleigh and nashville with triple digit gains down in hartford and chicago and milwaukee with rising mortgage rates. hitting 7.3% yesterday the increase since january has added $1,000 to the monthly payment on the median priced home joe, scary enough? >> yeah. >> you need the pumpkins in the background you can't imagine. >> do you know -- this guy is in my ear, diana.

it is not god. it is a person they think they're god do you -- never mind i was going to ask a question. they say no. they are cutting me off. >> wrap it up. >> wrap it up. thanks, diana. bye. thanks, joe. when we come back, we will have more from the baron conference in new york. after the break, we speak with the ceo of iridium communicatns e ocis near a 52-week high we'll be right back. ♪ ♪ ♪ ♪ introducing ihg one rewards. seventeen hotel brands. six thousand global destinations. one loyalty program that lets you guest how you guest.

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we are back right now at the 29th annual baron investment

conference the next guest can give us an update from space. joining us is matt desch ron baron is here at his c conference today ron, talk about the stock which is doing phenomenally given the market overall the last trade was $50 you are bucking the trend and i think part of the that has to be because you have invested a lot of money over time all of the hooinvestment is payg off. >> we are a growth and free cash flow story we had to build a new network for a long time and spend a lot of money now reaping rewards in the extended capital holiday we long promised to pay back shareholders that is paying off with lots of

free cash. a lot of growth as well. >> people look at the company and what you've done is come up with the space communications. there is a lot of questions of getting hand sets and cell phones connected via satellites. this has been something that there's been lots of speculation about. the last time we heard from you, the idea was you would look for a mobile hand set partner. where are you in that search >> so, we have been working on this for a couple of years in fact, i probably would not have said anything, but apple teased for a while they would -- people were speculating that apple would get in the market. they now have. we planned to do that. we still plan to do that we have been developing the capability we are going to wait until partners are announced with the capability our network is perfect for it. you know, satellites around every part of the planet a global offering.

it is ideal for connecting small things highly mobile things even able to get into consumer devices like smartphones or watches or cars or things like that we're excited to introduce the offering over time i had to tease who it is, but we have to wait for the next period of time before we are able to say. >> you have a partnership. we should expect it in the next year or two? >> we have been working on it a long time. >> you are ready to go >> almost ready to go. >> ron, you have been an investor a long time nine years was the first time you got into this. >> we are the largest investor in the company >> pretty much so. >> beat saudi? >> yes >> what happened is one of the directors a friend of mine buzzy was the head of cia. head of alex grobrown and top people of the cia. he called me up and said they

are in the last round of financing and need money to complete the constellation they are doing an equity offering would you be interested. i said i have $6 million invested in this that was a big deal. i said who do i talk to. he said matt desch he is the best executive he ever met in his life. he is on the board he was head of alex brown and he sold his trust i said how can i meet him. here is his number i called him on a thursday afternoon. we spoke for a few hours he said i'll come up tomorrow. we talked offer the weekend. he said are you still interested i talked to him monday morning i have a few more questions. we talked about that then i said okay i'm in he said how much i said i would like to buy 10% of the company at $7 if you do it any lower price, i

want that price as well. because we invest in equity, you are doing a convertible bond that will be a hot deal because the equity will be sold. i want 10% of the convertible bond he said yes. we bought 11% of the company $7 a share >> here we are >> i appreciate your support overa all of this time. ron's process is bringing lots of yellow pads and writes down and asks questions i never met anyone so curious about so many broad topics and so much interest and ability to understand across so many industries you know, i appreciate the long-term support he has been there all along as we have built the network and now reaping rewards of all that ininvestment >> ron, what were the questions that sold you on whether or not to get in in. >> we already had the investment

made $7 million investment of motorola they were selling $7 phones at 7 d a minute they had the satellite business up there satellites communicated with each other and the government was the biggest customer they wanted a motorola de-satellite and have things crash to earth the government said no we need the satellites to communicate so nobody can interfere with communications. i thought that was interesting further on, that is what we were talking about. further on, we looked the other opportunities with mobility that was going to be provided that was a really big deal one other thing that was really interesting was we saw those which happened later you saw the airplanes that disappear. fly along and disappear. that can't happen anymore. we know where they are >> no more bermuda triangle.

>> it is connected when you go from europe to the united states for example, you take a circuit route because they take people inside the land and they use the extra oil and energy when you use our connection, yo iridium, the airlines will save 6, $7 million a year in fuel. >> i'm loving this description here this is perfect here. >> we are out of time. matt, i know you can't talk about your partner, what you're going to be partnering with for having satellite connect but what brand of cell phone do you use? >> i can't talk about that >> i'll follow you around a little later today matt, thank you very much for being here we really appreciate it. matt desch from iridium. we're going to have more from ron barren later in the show but we'll seennd it back to you. >> becky, i have to ask you -- >> we're out of time.

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crypto is on the ballot this midterm election with whomever takes control of congress having an impact on the future of crypto regulation. joining us, chamber of digital commerce founder and ceo nice to see you. which side are you rooting for >> well, crypto, this is not a partisan issue and as a nonpartisan organization, we want to keep it that way recent polls do show that digital assets are becoming increasingly important to voters one in five voters today own

cryptocurrency these are people from across the aisle. this is a very important constituency this is a younger generation -- >> fair enough is there -- when you look at the political winds and what may or may not happen come tuesday, you know, is a -- is gridlockin washington good for you? is gridlock bad for you? what would you prefer? >> i think we're just starting to see how crypto is going to impact politics across the country. this year there's a handful of procrypto candidates like blake masters and ted budd we've got our first super pacs that have raised hundreds of millions of dollars. i think that watershed moment for crypto and politics is

likely to be 2024 and i think the next presidential election the candidate that is able to figure out how to leverage block chain to tap into the crypto community is going to be our next president think about it, when the -- what gave obama campaign is edge. they were the campaign that used smartphones, that allowed them to tap into a critical base of younger voters what gave trump his edge he was the candidate of twitter. again, a technology that allowed him to tap into a new base blockchain technology has the potential to increase participation in the political process. and we're just starting to see the tip of the iceberg of that >> it's a longer conversation and we would love to have it with you, especially as tuesday rolls around and we see what happens afterwards look forward to seeing you very, very soon. >> much more from the baron

investment conference. ceos of two of his funds, maybe nsofhat ata little bit of a see wth tease was from becky back after this. >> announcer: squawk coin is sponsored by bit-wise. the world's leader in crypto index funds.

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morning. welcome to this special edition of "squawk box." we're live at the 29th annual

baron investment conference at lincoln center in new york city. in just a couple of minutes, we're going to be hearing from ron baron. he's going to talk to us about a lot of things this morning we also have the ceos of hyatt and vail who will be joining us to talk about the state of travel and the labor headwinds in the economy speaking of labor, it is jobs friday we have a preview of what investors will want to watch when those numbers cross at 8:30 a.m. eastern time. the second hour of "squawk box" begins right now good morning and welcome back to "squawk box" right here on cnbc. we're live from the nasdaq market site in times square. i'm andrew ross sorkin here with

joe kernen and becky quick is joined by ron baron. we're going to hear from them in just a minute. i want to show you where the market looks like it's set to open we're getting jobs numbers in just a little bit at 8:30. dow would open 180 points higher nasdaq up 78 higher. and the s&p 500 up 25 points higher we'll show you treasuries as well you're looking right now at the ten-year note sitting at -- wti crude, it will cost you 91.20 this morning and crypto, we were just talking about crypto regulation, you're looking at bitcoin at $20,619, joe. >> let's get to frank holland with a look at the premarket movers did you notice that the houston

football team and the houston baseball team were both playing the philadelphia teams last night? did that occur to you? do you think it means anything >> if that does not mean the world is ending -- i'm from philadelphia i was watching some of that eagles game. great win by the eagles. it's no sign of the apocalypse or anything else -- does that ease your concern? >> they'll be back tomorrow, frank? >> are the phillies going to rebound? >> yes and i also think the eagles are going to win the super bowl. but you didn't bring me in here to do a sportscast let's get to the morning movers. coinbase, shares up this morning, as you can see right now, up 7.5% the crypto market has declined and investors have pivoted away

from riskier assets. coinbase retained users and costs came in lower than expected you can see marathon digital up 3.5% starbucks up after fourth quarter earnings beat revenue forecast as people spend money on those pricey drinks u.s. traffic has bounced back to prepandemic levels covid lockdowns in china, they continue to weigh on international sales. doordash up double digits right now. they're beating forecasts. total orders surging to a record high as demand for takeout holds up for higher prices and inflation. they're starting to see an impact from people buying fewer times each time they order and tony xu is coming up at

8:15 and we want to touch on chinese tech charts. you see the big jump right here. billy billy up 20% jd up for the week some of this move is on the hopes that china's zero covid policy is coming to an end we've heard rumors about that. it's a hopeful sign for people who have invested in these china tech stocks after $6 trillion in losses over the last two years. >> frank, i had an idea for you, and you got to jump on it. your segment, frankly speaking if you don't want it, i'm going to talk to robert frank -- >> this is a discuss we've discussed on several occasions this is not an original idea >> it was original the first time at least i think it was. >> what happened to the podcast we were supposed to do. >> frankie and joey.

>> i know, we're going -- we need to move on. we need to move on to becky quick who i think has some big news and i monitor who lands. so i think i know who landed there about an hour ago. >> can i throw in frankly, my dear should that be your column name? andrew, you probably know who this is. i'm going to let you take a guess. if there's one person you most want to hear from today, who would it be? >> elon musk just landed an hour ago. that's my guess. >> very good guess and that is who is headed here today. this is the two-year hiatus -- since we've had the two-year hiatus, we're back, we're live at lincoln center. this is the 29th annual baron conference every year, ron baron celebrates

and has some huge surprises who camera i don't think i've ever had a surprise guest who's been quite as big of a deal as elon musk today. it's happening when elon musk is the center of all news that heads through this let's talk a little bit about that you have elon musk coming here and you're going to be interviewing him in front of your guests here. >> yes. >> what are you going to ask him? >> i don't want to do the interview in advance, one of the interesting questions is that he's 51 years old and he works 16 or 17-hour days, seven days a week, and he flies all over the place. why? he's the wealthiest plan in the world, why does he do this we invest in people and talented people and driven people and people with a mission. he's got a mission

and what's the mission it is remarkable how he -- i don't want to use him up trying to find out how things work and how you can do things better and how you can make the planet so it's habitable and how you can get people off the planet in that comet comes that you're not expecting, how you can even wealth distribution around the world by making people educated, whether you're poor or rich have genius capabilities but you can't use them unless you have the internet so he'e whole planet you saw what just happened with ukraine. another question i have that's really been bothering me, how come our government is making aid to ukraine and they've paid

for, you know, munitions and they pay for all sorts of things, tanks and missiles, and how come they don't want to pay for the internet for starlink that's pretty strange. >> you're an investor in spacex too. this matters i think elon tweeted out earlier this year that it's costing the company $80 million a year to provide that internet connectivity for ukraine -- >> more than that. probably 400 million a year. and so how come? and so he decided he was getting criticized for asking to be paid and i don't understand why that was. and then he said, the heck with it i'll just pay for it >> you thought that was the good decision to say, forget it, let's do it anyway >> humanitarian. and i think that's going to

serve him well everyone knows who starlink is now and all of these different countries around the world, they know about starlink. and if the government wants to get for starlink in other places, they would have to pay for that, obviously. everyone knows that -- here it takes a couple years to get the government approvals, landing rights, the ability to communicate and he did that in 48 he turned on the satellites going over ukraine and gave connectivity. >> is that why he did it without trying to seek payment first -- >> he did the to help. zelenskyy called and said our communications are going out and what are we going to do? can you help us? in 48 hours he shipped thousands of these user interfaces and gave them to the troops and then all of a sudden the governments can communicate with the troops. >> is that why the government has a problem with it? >> our government? >> i understand entirely -- >> i think it's -- i think it's

political. >> you think it's political? >> yeah. remember when biden had a -- president biden had a meeting at the white house where he was talking about how great it's going to be to have electric cars and he invited the companies that are leading this transition and the company he singled out as the leader was general motors and general motors had sold 26 cars, 26 in a quarter, and resell hundreds of thousands in a quarter. they sold 26 cars and he said that was the leader and elon wasn't invited why is that? because it's not a union place the workers there are better treated than they are in union places and they all work hard and they all become wealthy.

one of the great stories is -- >> just to put that in context, you are somebody who has supported democratic candidates -- >> i've been a democrat my whole life. >> obviously it upset elon it updset you too. >> i don't understand republican policies that are negative -- i don't keep with politicians. i think that elon was talking about in twitter that he -- one of his goals is to have the 20% of far-left democrats hate him and the 20% of far right republicans hate him that's his goal. >> he's getting towards that. >> i think he is he's a really neat guy and very funny and he's got a heart and he does things -- go back again, why would someone like that work the hours he works and be -- he lives in a house that

is a tiny little house -- he doesn't live there all the time. that's his house on these -- in the facility there he lives there when he goes there it's a little mobile home thing. smaller than a mobile home he doesn't have any homes. one of the things that i thought was interesting, he said when he bought twitter, he wanted to have the twitter headquarters closed down and turned into a homeless shelter and so that made sense to me the next couple three weeks, he's going to live there he's made it into a home he doesn't have a home that's why he's made it into a home so he would have some place to live. >> speaking of twitter, there's an article in the "new york times" today that suggests layoffs are going to begin starting today and it's going to be layoffs of around 3,000 or so people maybe up to 50% of the staff there. >> 3,700 7,500 employees. there's a lot of people there

that aren't very productive. they work from home. they haven't written very much code i didn't -- i'm not the expert in twitter yet i will be in a couple of years maybe sooner than that i'm not yet. and i think the first thing you got to do is right size the business and then the opportunities they have are gigantic this is the place where you have content -- other places you look at people's face and is their kids and stuff he wants to have a digital town center where you can debate. but you have to make sure that you moderate and you don't have hate speech on there and you don't have -- there was something that was established a couple days ago that said the first time as soon as he took it over, there were 40,000 tweets in two or three days with using

the n-word or anti-semitic tropes and so you don't want that you want to have verification of accounts for $8 a person and you can verify and then they can amplify your -- what you want to say and who you can reach. >> he has made the statement to probably -- probably to assuage advertisers that he doesn't want it to be a hellscape he's been clear about that but i think there are advertisers who have questions and concerns there was another story today that talked about general mills, volkswagen, a lot of different companies that are looking at mondelez do you think he's going to convince advertisers that this is where they want to be >> i do. but this is not just about money. when you're talking about someone who is worth whatever

he's worth, going to be worth multiples of that in the future, trillions. trillions. and you're talking about $20 billion, to everyone in the world, that's a lot of money for him, it's not relevant what he's doing -- his goal is not just to make a huge amount of money his goal is to help democracy. and you help democracy -- you don't help democracy -- and he says, the only way this works is that if a lot of speech takes place there, stuff he doesn't like, you don't want to hear it. on the other hand, but that's what democracy is. you argue about things. >> how do you decide between free speech and hate speech. >> it's an easy thing to do. tiktok can move your arm a certain way. they know what you want to watch and they know who you are. if they watch enough things, then they know more about you than they know about you

they know everything but just moving. for him to think about, this guy sends up rockets and brings them back and lands them, how can he not have software that can determine from the words that are being used and from the content that people are watching, they know more about everyone than anyone else because of the content therefore, they should be able to figure out with software how to moderate and to prevent this hate stuff and anti-semitic things and using n-words they should not be allowed to do those things and he said even the sanctity of elections. everyone says, how do you avoid disinformation they should be able to do that with software. >> we spoke with the head of the adl jonathan greenblatt yesterday. he was very complimentary, he said elon said all the right things in the meeting. i think andrew has a question for you as well. >> i'm trying to understand, a lot of the things that elon is trying to do right now with

twitter are fixing about what might be traditional twitter, twitter as we know it today. if we have this conversation two, three years from now, would twitter look like it is today? uses a social media platform, or do you think -- and i think that the potential -- the prospect is it turns into a true superapp as a front end for all sorts of financial payments i've also long thought if you ever think tesla gets into the robo taxi business, it becomes a front end of that and maybe he sells it to tesla. when you start to think really big and long term about what this could be -- >> i don't think he sells it to tesla. he could go public with it again. i think that's interesting he's fascinated with we chat superapp, i think that's interesting. payments, that's where he started with paypal. that was interesting to him.

i was telling becky about me starting my career in the 1970s. and tom's dad was someone who helped me out a lot at the very beginning when i was starting. and one day, we're sitting on an airplane, we're going to memphis and i said, jay, what is -- i'm a young guy. i'm 30 and i said, jay, what is the best deal you've ever done and he said the best deal i ever did, i bought a saw mill in georgia for $50 million. and the person was selling me a saw mill that wasn't making very much money but i was buying a forest that was worth $250 million that was the best deal i ever made the seller was selling one thing, he got a good deal, and he was buying something else when he got a good deal for buying it. the same thing with twitter. people are criticizing and saying he way overpaid he didn't overpaid he bought something that had

this installed base. he can do something with it. the seller was selling lone thing. the people who ran twitter, they did a horrible job running, but they did an incredible job of getting the maximum amount for the shareholders and elon can -- i'm not the expert on it yet i will be. but i'm not yet. >> ron is going to be with us throughout the next hour and a half or so before he has to leave. we're going to be hearing much more from him. coming up at 7:30 this morning, we're going to talk about the surge and lodging. we have the ceos of hyatt and vail right here from the baron investment conference. both of those companies are holdings in the baron portfolio. andrew, back over to you. a preview of today's job report, we're going to give you that we are in the green. of course, all this may change one way or the other we'll see.

as we head to a break, take a look at the s&p 500 since its all-time high, yesterday the s&p closed below it's 200-day moving average and is 23% off its record high. nasdaq also closing below it's 200-damongy vi average and 36% off its record high. "squawk" returns right after this >> announcer: this cnbc program is brought to you by baird visit bairddifference.com. a new way to transform our agency. strategy to execution. oh, looks my laces have come undone. a business card? yes, for ey. tech expertise? $2.5 billion invested. impressive. okay, you've convinced me, i'm back. just gonna... get this...

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welcome back to "squawk. tiger global management hitting pause on new investments in china. "the wall street journal" reporting that the investor in the country is re-evaluating its exposure in the wake of xi jingping's recent re-election. they've told others that he cemented his power could increase tepgsnsions and mean tt the country's zero covid policy will return. >> and we're going to head back to the annual investment conference where we'll hear from two major players in the lodging industry the ceo of hyatt and then vail resorts will be joining ron baron and legendary business broadcaster becky quick. up next, a preview of today's big jobs report. "squawk box" coming right back >> announcer: time nowfor

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an >> announcer: now the answer, according to bank rate, what did adults list overwhelming as their favorite credit card feature? the answer, cash back. 41% of those surveyed listed it as their favorite feature. the october jobs report due out in just over an hour steve liesman joins us on his take on what we need to look for a little bit later, steve. >> good morning, andrew. some softening expected in job growth for october but it seems to be relatively strong and the report is not forecasted to provide much info at all here are the numbers that we're looking for, 205 on payrolls it would be the third month of declines but the unemployment rate seen

sticky at 3.5% average hourly wages up 0.3% the street is going to be looking for relief in all the places it's been looking for it. moderating wage growth and the potential for workers to come off the sidelines in the form of an increasing participation rate that would boost labor supply and ease wage -- continue job growth that continues to cover industries that are trying to get back to where they were before the pandemic. becky has two interviews coming up leisure and hospitality remains below the prepandemic high it's added 3.1 million jobs since january '21 while the rest of the sector has added 6.8 million. that's a third of the total. there may be little the fed can do about this back filling the sectors that overemploy shed

their workers and they can be observed elsewhere we're seeing layoffs but that takes time any slack in the economy, andrew, unfortunately, looks to be a ways off. i'll be asking these questions and more we have an exclusive interview coming up with thomas barken, one of the first interviews of a fed official since the announcement on wednesday. andrew >> steve, before you go, how do you factor in recently announced tech layoffs we've been talking about it all morning. you look at what's happening with twitter, you've got apple, amazon, stripe -- >> amazon -- >> the list goes on. >> so it's really interesting here, first of all, that the tech sector which is not really seen as a highly cyclical sector is the one that is kind of leading the way in terms of layoffs. the amount of cuts have been about a third of the total you can see that on that chart right there. and they -- the thinking is perhaps they overhired both for a pandemic era kind of

consumption by the public but also for an interest rate environment where i didn't matter how much profit they made i'm thinking that financing costs a lot more in the tech world. keeping people on board. the hope, andrew, is that if there is oversupply in this sector, that they're able to be absorbed -- i'm not sure these jobs are one for one but it's going to be an interesting thing watch this tech sector absorb workers and see if it creates long-term unemployment the kind of person who qualifies for a tech job does not spend a lot of time on the unemployment line >> that may be hopefully they won't thanks, steve. we'll see you in just a little bit. i want to head back to lincoln center this morning at the annual baron investment conference, find out what becky has coming up next >> that's right, still to come this morning, andrew, we have a lot going on the ceos of hyatt and vail resorts are going to join us ron baron is here too.

we're going to talk about the surge in travel. we'll talk about lodging, the upcoming holiday season. what both of these companies are seeing on the labor front and what it says about the broader economic conditions too. all of that is coming up in just a moment this is "squawk box," we are live from the baron investment conference we're here at lincoln center in new york city and we'll be right back power e*trade's easy-to-use tools make complex trading less complicated custom scans help you find new trading opportunities while an earnings tool helps you plan your trades and stay on top of the market

all right, welcome back, everybody. we are at the 29th annual baron investment conference and our next guest can tell us a little bit about the state of the consumer and whether the travel rebound is really here to stay for more on this, we want to bring in ceo kristen lynch also hyatt hotels president and ceo, mark hoplamazian. and welcome to both of you it's really good to see you guys this morning. >> thank you it's nice to be here. >> i can't think of a better couple of people who can tell us about what's really happening right now with travel. you guys have everything covered around the globe what's happening with the consumer, what's happening with business why don't you tell us a little bit about it mark, what are you seeing right now? >> leisure has been the major driver of this recovery and it continues to be so strong. we were up 20% in the third

quarter, but the bookings into the fourth quarter and into early next year are up between mid teens and 20%. >> mid teens up this year? >> off of this year. so we're seeing sustained demand, but the other big news of october was that corporate groups are back. we booked 30% more corporate group business into '23 than we did in 2019. 30%. so corporations are back on the road as well but leisure has really been the key driver and business transient is starting to come back and we've got our major customers, big tech companies and so forth are back to 80% of their prepandemic levels of travel. >> kristen, we're headed into your super bowl season, basic. w what are you seeing? >> all three of our resorts in australia had record seasons

also our past sales which we just announced in our september earnings, we saw growth there, and that's a great indicator for us because that's a nonrefundable commitment into the upcoming season. and overall we really cater to a high-end guest that tends to be very resilient through economic uncertainty. >> they haven't felt any pain? >> we've not a seen the indicators of it yet but i think our company is well positioned in the terms of the amount of our revenue that is committed in advance, the number of key resorts that we have and the positioning that we have in the marketplace. >> it is jobs friday and the job market has been incredibly tight that's been the story that everyone has been watching that. what do you see in the jobs market, how difficult is it to get people that you can hire even as other areas have seen some return to normalization, i think leisure and hospitality have been the one area where things are still a little out of whack, probably because there's so much demand what are you seeing right now? >> over the summer, it was

acute. we had serious shortages everywhere we -- the industry fought hard to get temporary work visas. we got some extra, but about a fifth of the number that we actually needed as an industry it's gotten a little bit better and we look at our own data in terms of how many open positions that we've got and what the rates have changed in wage rates are. it appears that we hit an inflection point at the end of the summer. >> wage inflation -- >> is coming down and positions are starting to get filled more quickly. two months of data is not -- does not a trend make. we have to be cautious about that but we could be headed towards something that looks like stability in the labor market isn't the of this catch-up game that we were playing before. >> kristen, i want to ask you -- i'm assuming it's a similar story that you're seeing. >> labor is important to our business we don't make anything we create an experience at our

resorts and we announced a big investment in labor for this upcoming season. $170 million investment and we're going to get fully staffed, which is increase wages, increase benefits, investment and leadership development and investment in affordable housing and staffing right now is looking good. >> you've been making a lot of investments, also in europe, expanding there. really interesting time in europe when you consider the strong dollar and consider that europe's economy is not nearly as strong as ours. i guess this is a long term play what do you see there? >> we're excited about europe. the skier market in europe is three times the size of the market in north america. and our first acquisition we're excited about is in switzerland and we view this as an opportunity to grow our market share of the luxury european ski market as well as listen and learn to unlock some future expansion and growth opportunities in europe. >> so you said first, you're looking for other acquisition targets too. >> yes, we are

>> and when you -- >> after a couple of years to prove how good we are. [ laughter ] >> coming from a major investor. ron, you have talked about both of these companies for a long time they're both long-term investments. what is it that you like >> one of the things that's interested about vail is the advanced ticket sales. 72% of our tickets right now are people who ski on a lift, buy it in advance as far as hyatt, what we're doing there, we're selling off assets that we own at incredible prices, the company is involve valued for 11 or 12 times ebita and we're selling them for 16, 17 times and we're using that money to buy back stock and we're keeping management contracts for the companies we sell. >> so becoming almost like a tech capital-like company to a certain extent that's the new model >> yeah, we've been on the

strategy for the last five years, and as ron said, we've sold over $4 billion of hard assets, hotel assets and we reinvested a lot of that in platforms for growth the high-end destination spa resort company and all of those we've bought -- we created them for about high single digit, low double digit multiples while we're selling real estate in the high teens. it's been quite a swap and the earnings shift towards earnings has been pronounced. so that's what -- that's the path that we've been on. >> i'll ask each of you, what's the biggest challenge that you face right now, especially as we head into potential downturn for the economy. that's what every business leaders seems to be talking about. how do you prepare what are you concerned about >> you hit on it earlier when you talked about labor so important for us to get fully staffed. it is a top priority for us.

the reason we made the significant investment, our employees, our frontline employees are -- they create the experience for our guests. we did get fully staffed in australia this winter. we did get fully staffed over the summer our staffing numbers are looking strong and i think that's the most important piece that's how we deliver the guest experience which ultimately will then retain our guests because they have a great experience and then they'll come back and we generate the loyalty through that. >> how many positions or what percentage of your staff -- >> we're ramping up for the season we opened up one of your resorts. we're still ramping up but we're seeing our retention of our staff from last winter to this winter strong retention from summer staffing and applicants in the pool of applicants coming in is looking strong as well i'm feeling optimistic, but it's the number one priority that i'm focused on right now.

>> how about you >> we're aware that there's recession risks. but we serve the high-end traveler so we think that the risk that we face in terms of travel demand slacking is relatively more limited. the biggest issue i've got -- that i look forward to is two things, very different causes but similar result which is china. china has been on its backmost of the year and so we posted a record third quarter, a record second quarter and third quarter even with china on its back. and we have over 100 properties in china but the lockdowns have caused serious spikes in troughs with respect to occupancy if china starts to recover next year, that's going to be what we're doing. but i've got my eye on china in terms of what that post-covid lockdown looks like. interest rates in the united states has slowed down construction of new hotels -- >> that's probably a good thing

for you. >> yeah. supply and demand, it works in our industry and it's working in pricing and being able to sustain our -- being able to satisfy demand but, you know, at some point, we have to get back to building hotels again so -- and i think it's more about the uncertainty of not knowing when the fed will be sort of pivoting back to a more constructive and less constrictive policy. that's the key issue because these assets are going to be in place for 30, 40, 50 years and so trying to make decisions based on what's going to happen this coming month or quarter, it's a little shortsighted but developers do underwrite based on what they can borrow. that's the other major -- >> joe has a question too. joe? >> i'm looking at just a list of your mountains i heard you mission keystone i know all of them

i went to school out there i think you've got the coolest job in the world do things come -- like, let's say copper, let's say they say, we want out. do you still buy things? can you do that? do they get cheap or people want out or do they keep going up in value? i also love breckenridge what a great town. that's one of yours. are you still buying are you still buying >> thank you, i think i actually have the coolest job as well and yes, we're always looking for opportunities, i think expansion -- >> i could scout some locations for you -- >> okay, well we may take you up on that. yes, we're always looking for opportunities. still in north america very focused on europe and also very focused on asia >> amazing >> excellent, excellent.

kristen, mark, i want to thank both of you very much. that gives us a really good picture about what's happening right now. thanks for being here. >> thank you, becky. it's great to be here. thank you, ron. >> we're going to have much more from ron coming up just a little bit later. andrew, in the meantime, we'll send it back over to you in the studio. >> p. diddy thinking about changing his name back to puff daddy. we'll explain what that's about. what investors need to know ahead of today's job report. we're going to hear from them just in a couple of minutes. back after this.

welcome back to "squawk box. hip-hop mogul sean "diddy" combs is buying licensed marijuana places in three states if it goes through, the acquisition could create the largest black-owned cannabis company. big news in cannabis land and p. d diddy. we were joking around about -- >> did it go back to puff? >> that was the line >> now i get it.

>> big news. we wish him well with his transaction. >> that's a pretty good business, maybe. it's a good and big business >> i'm not sure i -- >> some people don't -- >> i'm not sure i'm okay with the whole idea. >> that's a separate issue. >> i said so many times, accident happens when people are going too slowly, right? you certainly don't drive like a maniac but if you're under the influence, you should not be behind the wheel >> that is 100% true. >> can you test for it >> i think you can now, can't you? >> it worries me it makes you kind of lethargic, i've been told big morning on "squawk box," we're going to -- you know i love taco bell you think that was random we're going back out to ron baron in just a bit. and the jobs report will be

released at 8:30 this morning. and two great interviews, the ceo of doordash will be joining us that stock up this morning after reporting record orders and the cfo of starbucks, she'll be our guest. those shares are higher after better guest shares are also higher after better than expected profits squawk box will be right back.

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talk markets, jobs and midterms the chairman and ceo of strategic partners -- are there bigger things going on, jason, than the midterms, are you factoring anything that happens tuesday into things you're doing today, thinking about today, we got the fed, we've got, you know, global issues that might outweigh a midterm election in terms of and whether, you know, who knows how much a hole the fed has dug us into. >> joe, i'm largely in agreement with you i don't see a lot coming out of next tuesday's election regardless of the

skrout come, i mean the only one that would have a meaningful impact on the markets is if the dems were to sweep that -- i don't think that would have a particularly great impact on the market and if you look at the current polling i don't think -- >> wait a minute, you don't think that would have a market if it was a dem -- that's what we've had for two years. >> no that would have a meaningful -- >> we might do another, you know, another 5 trillion of stimulus over the next year if that were to happen. >> that would be the only case i was saying joe the only case i would have a meaning 68 impact on the market but otherwise -- >> nothing good could happen even if the republicans sweep. >> precisely because the president is still the president and unless you had some sort of

supermajority in the senate you could about get much through, we have much bigger problems and i think one of the biggest problems, too, joe, i'm not sure i had to remind myself, 60% of our federal budget is index to inflation, so social security, medicare, medicaid, despite what the fed is trying to do to slow the economy down and slow infla inflationary pressures down, still a big fiscal head wind in the fed needs to do that and even though there might be big increases in fiscal spending a new plan for student loan forgiveness, social security are going to be up 8.7% up this year, a meaningful headwind for the fed in fighting inflation.

i think for the fed the policy era wouldn't be an inflation if in the end you defeated inflation, the policy from their point of view, from what we seem to be hearing from chairman powell would be the stop and go policies of the '70s which allowed inflation to spike three days each at successfully higher -- to me, a recession -- >> that scares me, if 5% is it i still think the market could digest that and if inflation came down to below that maybe we could stop something where there's you keep going higher and higher over a period of years and this is really ingrain from the dollars we printed and spent -- i don't know if the market moves higher in a us is stained fashion for

years if that's really the case. i'm hoping that's not the case >> you know, joe, i agree with you i hope it's not but i think it's probably you'd have to say it's the odds-on favorite in my opinion as to the scenario over the next couple of years, i think why there's so much insistent upon the fed to tighten they know and i think we all know the longer it sticks around the more difficult it is to fight because it gets into labor negotiations and contracts, two big labor negotiations next year, u.p.s. and the teamsters and the uaw and the big three and you know those are biggies. >> i know, it's crazy, because biden sort of greased the wheels for that the other night he said we got the biggest increase in social

security in years and the crowd went wild. >> yeah, right >> that's what we're dealing >> some achievement. pretty good. >> all right, thanks, j.t. >> all right, man. thanks, joe, when we come back, much more live with ron barron from the barron investment conference, we'll talk to him about the markets and other issues and interviews with d doordash's ceo and starbucks's cfo. "squawk box" will be right back.

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good morning it's jobs friday in america and we're now just 30 minutes away from the number of the morning today's data taking on added importance after the fed's latest supersize rate hike, meanwhile layoffs at twitter expected today just a week after elon musk took over. we'll talk all about musk this hour and his biggest company tesla with longtime shareholder ron barron as the final hour of "squawk box" begins right now.

good morning, everybody. welcome back to "squawk box" right here on cnbc i'm coming to you today from the metropolitan opera house, of course we're here for the 29th annual barron conference we'll talk more with ron barron. let's jump right back into it right now. ron, we're here and awaiting this jobs report, we've been kind of building up to this throughout the course of the morning, it strikes me that you have a pretty good idea of what's happening in the economy even though you're a long-term investors. you have a good expectation of what to expect in the economy over the next 12 months or so. what are you thinking in. >> i think no question that the

economy's slowing, companies are laying off, not hiring, except for our business we're steady as we go, keep growing, just increased our office space, we had 49 and 48 floor we now have the 47th floor never in the history of our firm had a layoff last year we went down in the number of employees. 169 to 168, one person, eight to ten open positions this year we've gone from 167 to 185, so more space, more people and so long term, very, very optimistic, i think the economy's growth is going to accelerate over the future so i buy into elon musk's idea about investing, he said you have to be optimistic and have a long-term perspective and you

can't be thinking about the next quarter, and just, you know, the best time, the best holding period is infinity, holding forever as long as crow can. one other point, if you were present enough to buy back at the exact bottom of the market, down 30% or so that's how much you need to break even for paying taxes and everything and if you're able to sell your hold position and buy your hold position, all i do is keep investing in these businesses that we think are going to be much larger than the economy >> were you a fan of what the fed's doing right now? are you more worried about inflation getting out of control? >> you know every time there's a pandemic there's a war there's a financial crisis, every single

time after that, there's inflation and the reason for it is in order to get out of those problems you print money and so when everyone says they're behind the curve this is a plan, it's planned to devalue your money and the reason they devalue your money that's how they pay off the debt, it 's always the same thing the inflation takes place after we spend all this money to get out of this problem. in the 1930s we had a depression and we couldn't get out of it and the only way we got out of it was through world war ii. it devalues your currency in the long term that's a good thing because you create jobs. that's going to end. i think the fed's doing the right thing. >> we have sam on yesterday he agreed he thinks the fed's doing the right thing at this point,

one thing he said that was pretty concerning the next step is probably going to be a liquidity crunch, if you're fully invested right now what happens if there's liquidity crunch and do you worry about something like that in the market >> so we have flows and there are people who are interested in investing with us with large sums of money. if the markets go down they'll lose money for a while but long term as we talked about before the dow jones was 800 when it started it's now 32,000, 40 times, and i think growth is going to be faster in the next 20, 30, 40 years than it has been in the last 20, 30, 40 years. a quadrupling the number of

people and the size of the economy that means you doubled your money in 900 years. think about this, you're a stockbroker, money changer and you're right to get clients, listen, becky, i think i double your money in 2900 years that's how it was 220 years, then it was up four times in the 1800 years that growth is accelerating in the past 50 years so i'm thinking growth is going to be faster going forward before all of this new technology for health care and technology, growth is going to be better, life standards are going to be higher and this is an amazing time to be alive. >> is that a concern about the liquidity crunch >> if you're jamie dimond, you know a lot more about this than i do if it's liquidity crunch the government prints money to get out of it. >> what if they can't this time

because of the inflationary picture. >> they can, they always re resolves problems. governments have a lot of power. >> what do you worry about if anything you're a pretty optimistic guy you tend to look at the glass half full for these things and this's why you've been so successful, if there's anything you do worry about what would it be? >> well, i worry about -- i worry about, you know, whether the policies of government swing too far either way and as ben franklin said, when it comes out -- do we have a democracy? do we have a democracy i'm hopeful we have a democracy, i'm hope that we solve the crime problem and we've always solved

these problems before, we've always solved them before. so i'm optimistic about our country and i'm optimistic that the period we're going through right now is unsettling, chaotic but having a long-term view you get through these things >> joe has a question for you as well >> ron, i tweeted out 42 years ago today reagan, ronald reagan was elected, and, you know, you keep talking at 800 and 40 years no inflation, you talk about all the prosperity and yet you just stubbornly for whatever reason stick you're a democrat, reagan did nothing for you, he didn't get your heart beating faster, any of the prosperity to republican, supplyside to small government, free markets, low

taxes, none of that, is that a good year for -- was that good what happened 42 years ago, was that positive? >> well, listen, i thought ronald reagan was good he did that soap commercial on television i liked him. i thought he was a nice man. i liked him chopping wood and -- >> better than jimmy carter? so his policies did nothing for you. you wish jimmy carter would have re-elected >> i hated him >> reagan was just an actor didn't believe in a shining city on a hill. >> i believe in the shining city on top of hill i believe in that. >> not many people do anymore.

not many people do anymore >> it's all cyclical i'm hoping that everything gets resolved and i think it will. >> when you say it's all cyclical and you don't like things leaning too far one direction or the other that means you're hoping for the republicans to win for grid lock at least in washington, d.c., come next week or no >> so we have a -- so one of the people i'm friendly with is glenn young kin, the governor of virginia i don't give money to any politicians. if he runs for president i'll figure out some way to help him, he's a moderate guy. i want someone who's rally smart and i don't care if i agree with his policies or not, i want someone who's really smart and

is going to make decisions better than i can make i think about businesses all i think about is businesses. i don't think -- and i just assume that everything goes in waves and sometimes it's good and sometimes it's not but i don't worry about those things i go to work every day and i look at businesses and i try to grow my business and try to hire people and train them and keep them and do the best i can for the people who i manage money for and so far it's worked out >> ron, some headlines this morning, i think china is looking at approving at least this was a headline i read the biontech mrna vaccine, the continued zero policy in china has been a huge issue for companies all over the globe, at

one point baron had an invest in biontech and it goes back to your story at looking at people you really admire. >> amazing people. he was the person of the year and he and his wife, they met, they fell in love, they spent the first day in a laboratory, they still live in the same apartment they lived when they were immigrants in germany, wonderful people, what their business was trying to use antibodies with mrna to make vaccines to protect themselves and it was a big thing for cancer and so when they came and they needed the vaccines to get out of covid, then the stock went up doubled or tripled and it's rare for me to buy and sell things but i bought and sold. we bought stocks when i learned about this and him

the stock went up. we bought a little bit so far. i'm interested in this business long term. it went up during covid now it's back down. i believe they'll be successful, two, three years, start seeing results with what they're doing with cancer, that's the big deal. >> the theme for the conference this morning, anything is possible thank you for joining us and talking with us about all these issues thank you, ron ron baron of course from the 29th annual baron capital conference right here at lincoln center joe, back to you. okay, we got the october jobs report still on slate, coming up soon, about 15 minutes from here at the bottom of the hour and can't-miss interviews on new quarterly results, with the ceo of doordash and the cfo

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welcome back one stock we're watching closely this morning is doordash it's rallying and rallying big time after reporting record orders and better than expected earnings

joining us right now here first on cnbc is doordash. the market likes it, we've been trying to talk about earnings these days in the context of what's actually happening in the real economy, you're the real economy, what are you seeing here >> good morning, andrew, and what we're seeing is the resilience of local businesses, i mean as you saw in our numbers we had, you know, record growth in terms of the volume that we delivered we also beat on the bottom line as well and the resilience of demand for delivery continues to be really strong as reflected in our guidance as well and so in addition to achieving all of these positive things per the platform we're very proud that we're able to generate tens of thousands of dollars for consumers. >> tony in terms of thinking about your business if you believe it's at all a barometer

for the health of the consumer, what are you seeing in the last quarter and what do you expect in the next. >> we saw continued strength, i mean in the last five quartz, we grew north of 25% i think this phenomenon that you've seen throughout the kind of decline of the pandemic at the same time there's a lot of macro head winds. food is the most resilient category as it has shown in the last six decades even as the market leader today we're still less than 10% of u.s. restaurant industry sales, globally that's a much smaller number so we believe the runway and the potential is very big. >> you know, we have a lot of people who seem to be very, very nervous perhaps rightly that a recession is looming we're in it or something else, what do you

see in that regard do you think there's been a change in a trend perspective that generationally people are willing to have deliveries and pay for them and what do you expect as you look at '23 at this point. >> certainly there's some impact, logically speaking when you have a war when you have a energy crisis, sticky inflation it's very hard to not think that there's no impact on the consumer in terms of what we've seen at doordash orders on aggregate basis from a regular it's stronger for our dashpass subscribers. you've seen impacts on those cust customers, but net generally you're still seeing that resilience. >> in terms of margin how much

discounting is still going on? >> we were never a platform that believed in discounting, the percentage of discounts it stayed relatively small, most of doordash is organic, our pnl the sales and marketing leverage is what has allowed us to continue to increase our free cash flow as well as achieve ten straight quarters of positive -- >> how do you think about your business versus for example uber eats, versus for example instacart. >> i think when you look at what we're seeing from consumers, you know over the last 2 1/2 years of this pandemic, you know we've seen continued growth in our business four times in the u.s. marketplace, 14 points of the category even as the market leader so we're not only the largest in the field we're also growing faster than our peers and when you look overseas, you

know, our volt business is growing 60% year on year on a euro business which is many, many times faster than it peers. when you look at the composite score we're not only beating the top line the bottom line in terms of our guidance but we're also beating on a relative basis to those in the industry >> tony, you know today's jobs friday, we'll get the jobs report literally in just about eight minutes from now and we're seeing lots of layoffs in tech land and investors seem to be rewarding that do you anticipate more >> well, i do think it's a very tough time in terms some of the macro head winds that we just discussed, i think it's important that any company continues to manage their business that takes all of that macro into the stock as a result we have to do more with less, we can be as efficient as possible and staying disciplined is the

approach we've taken at doordash >> so what are you telling employees? your company was a darling of the pandemic if you will so there's going to be folks underwater and the like, what are you telling employees right now. >> we have to keep our focus on our customers and what we can control, i think certainly it impossible like you said to predict the exact events of the last 2 1/2 years we've gone through the pandemic, war, energy crisis, regulation changing up and down and sideways and what i think the doordash team has continued to show through this quarter's results is very strong execution throughout that's what i'm very proud of. >> tony, congratulations on the quarter and we look forward to seeing you again hopefully very soon and in person >> absolutely. thanks coming up, it's october jobs

and we'll get that number and all of wall street's reaction. we're waiting for it just a come of minutes away. stay tuned you're watching "squawk box" and this is cnbc paying your people from anywhere to supporting your talent everywhere, we use data driven insights to design hr solutions and services to help businesses of all size work smarter today. so, they can have more success tomorrow. ♪ one thing leads to another ♪

coming up the october jobs report our expert panel rey ad and waiting to break down the data we'll get it next. when "squawk box" returns.

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welcome back to "squawk box" ahead of employment number adp chief, sofi's head of investment michael strahan -- michael

strain -- our own steve leishman and rick santelli. we got like 15 seconds other than just going to rick i don't see any way i can do it without cutting somebody off it's time for the money and rick santelli is going to have it in one second hey, rick. >> yes, we're expecting the october jobs report to show us roughly 200,000 it's a beat 233,000 non-farm payrolls a bit of a fly in ointment here, i'm sorry 233,000 private payrolls the fly in ointment here 263,000 in the rearview mirror, those

were the low water marks meaning we've made the lowest level of month over month non-farm jobless expansion since december of 2020 minus 115,000, so 261,000 if we look at manufacturing payroll 230,000 the unemployment rate moved up, it was 3% the best it's been so up to 3.7% that would mean the highest level from february of this year when it was at 3.8%. the afternoon hourly earnings, it's up .4%. prior to that it was five-tenths. this is the best since july, if we go broader and go year over year outlook on earnings it's up 4.7% exactly as expected but do keep in mind this has been drifting lower now if we go

pre-covid it was 3.5%, but 4.7% is the lowest level on wages year over year going all of the way back to august of 2021 august of 2021 average hourly work week 35.5. this is the third month, third month that we had 34.5 in the workweek, the second most important aspect of this data series is labor force participation because that number kind of helps explain how many people have disappeared and it's tipped the wrong way, 62.2%. we were expecting 62.3% the best it's been post-covid was in august at 62.4%. we've dropped a tenth every month for the last two months and if we consider where we were at pre-covid we were at 63.4%

we're start ing to expand that spread last month's 6.7 on underemployment was the best, post post-covid taking a step back let's let the markets tell us what they think. if we look at the week over week numbers they're very large, joe, 477 now in a two year. which means it's up 35, 35 basis points on the week joe and the gang, back to you. >> thanks, rick. let's get some instant reaction from our jobs panel. i was going to do it al fe bet cally i thought you know what

that's complicated jason, i haven't spoken to you or heard any of your comments since -- i thought it wases if nating that powell, started with looking like a pause and then may have looked like a pause but it wasn't because it was going higher does this number here think chair powell have it right based on what we saw today in these numbers with what he said? >> this number should change absolutely nothing about what the fed is doing i think the fed to be clear is going the right thing, it's a little bit mixed the payroll number's strong, i think the most important thing here is the afternoon hourly earnings that's a 4.5% annual rate that's consistent with inflation in the mid-3s that's a little bit hotter than we've seen lately.

but then you look at the household survey that shows 328,000 jobs lost it's measured a different way maybe the difference is noise, people will probably figure it out over the duration day i don't see this report, a mildly, tiny bit hotter than we saw before but well within the zone that the fed needs to stay at but the fed doesn't need to panic, i think 50 at the next meeting would be completely fine but the fed should be going slower for longer getting to a higher terminal rate >> wow, do you agree with everything that jason said do you expect data -- do you expect data eventually to get in the way of that higher terminal rate or it's going to hold up

>> i expect the labor market to get in the way a number of 239,000 jobs private sector on wednesday, followed up on friday with 233,000 private sector jobs, you're seeing a drop in the labor force participation rate and when we ask our small firms clients, what's the key challenge for you? it's finding qualified workers the unemployment rate is below 4% for the fed to cool off this hurdle is the labor market may have to go to housing, to financial conditions, i hate to say this on cnbc but the labor market is showing some really solid gains for an economy that's this mature and it's recovery good news for consumers and main street but job losses are not looking on the horizon right now at least not in this

report >> do you think that the fed is just going to keep the pressure on until it causes job losses, does that sound like a good way to run an economy? >> no, i don't think so, i think they're betting on jobs openings coming down and moderation and monthly hiring i think they're betting wages which are as powell said in his press conference sideways now in terms of growth but at a higher level i think they're betting that those wage growth comes down and decelerates over time with more people coming into the labor force. it's still has to go all of the way down the field no matter how much do they do in one play. the goalpost is pretty far away. >> what is the market focusing on with this report?

>> well, i think the stock market obviously likes this report and the economy still seems strong and we're still able to add jobs in the space of what is otherwise slowing and tightening from the fed, however labor is one of the last things to crack and i do expect that before the end of the year we're going to start seeing cracks in the labor market, we started to get announcements of layoffs from the tech sector, that's not inform to get us to problematic levels of unemployment but it can change sentiment and if a few big companies jump on to that band wagon we'll see that sentiment in the equity market turn pretty quickly but that won't happen until december when we get more november data. >> michael, do you think the stock market wants the labor market to hold up or doesn't want the labor market to hold

up >> yeah, i think the stock market wants interest rates to be lower than they're going to be and if this report were indicated that the fed was likely to change course we'd see a different market reaction in a hawkish direction, but this report won't affect the fed's report for the december meeting but i think this report suggests that the labor market is holding up i think the labor market is going to hold up throughout the rest of the year i don't see any indication that consumer demand is going to cool, we're coming into the holiday season, i think people are going to spend some excess savings from the pandemic we're going to have a few more months of solid payroll gains. wage growth isn't getting better, it's not cooling off and so, you know, i think the fed is looking at it, it shouldn't

affect what they're doing for december but it should affect their projections for the terminal rates if the consumer holds up and that continues to support labor demand for the rest of 2022 through the holidays then 5 is not going to cut it the fed is going to have to go higher than 5. >> all right steve, were you going to explode just from insightful things that you had to hold up on talking about for that long? >> it was hard to keep it inside >> i could see it. >> you know how emotional i get about this data. i've been watching a series on that netflix,ette storms, interesting show, but anyway, i want to get back to something that was said about americans -- it's troubling to me that the one thing good about this

economy is really a bad, 260,000 more people were employed, we had an upward revision from the prior month and it's just a very, very solid job market out there and i wouldn't make too much, i'm bearish to see what happened to this the increase in the unemployed because what happened we had this increase/decrease, increase/decrease. someone leaves a job and they get picked up pretty quickly, i'm interested to see that we have 71,000 added in health care that's a sector that badly needs workers they were able to find them that's good news. hospitality a modest 35,000 and of course the labor force only up by 22,000 so we're not at the current wage levels attracting more people back into the

workforce, so joe, picking up what michael was saying, wages remaining higher or going higher from here because of the need to attract more employees >> so, rick, we started with you, we made it all the way, full circle -- all the way, 180 degrees. 360 degrees, rick. who made sense, who didn't, do you want to call anyone totally off their rocker >> i think steve made a lot of sense. >> so nice >> if we stopped creating jobs even if they gives us a temporary bounce in stocks because of the unholy dynamic of the fed slowing down ultimately that rally will fail and the u.s. economy isn't going to do

better no matter what the fed does if we're creating less jobs but we're going to create less jobs and i can't believe nobody on the panel has brot it up, about inventories, we had back orders, everybody's freaking out, they were ordering and ordering then all of a sudden everything came and it came too quickly it was like a surge of inventory, think about that same concept with respect to labor and dealing with the surge of inve inventory, we had so many things whether it was houses that needed to be completed so many things that couldn't be done because of covid-related issues now we're catching up. once the dusts settled, 8:00 surge ends, everybody looks at each other and we have four people standing around doing nothing because no more tables

are coming into restaurant at some point down the road the surge to catch up on everything is going to end and we're not going to need as many as people. we already see that in technology that's my thought. >> let me get back to jason then, you're a professor now, isn't there some supply chain phenomena like a whip saw, goes on with supply chain, it goes like that and then all of a sudden it falls after a cliff? >> look, there's some possibility of that, you know we've seen this dramatic decline in productivity this year and what's happened is output has basically been flat or down while businesses have continued to add workers, at some point they might look around and say, you know what we have more workers than we need for the level of output that we're producing and all of that labor

hoarding that we've seen so far this year, desperate and worry about when they'll get a worker again maybe that will start to come to an end what i'm worried about is that, you know, some of this workers we've been holding on to will be let go so instead of that scenario that the fed is hoping for they're hoping that the openings come down the firms start to lay off those workers and it's just hard to tell the economy's just behaved in such a weird and extreme type of manner over the last two years. >> did you know you were going to be next >> yeah, i think, you know, productivity is the fly in the ointment of the labor market and that's going to be the issue

that's really going to also be a detriment to the idea that we can tackle inflation quickly and you have to hire more workers to get the same output. i'd like to circle back on this idea of the recovery, too, because the sectors didn't all recover at the same pace, it took leisure and hospitality much longer, tech hired aggressively in the heart of the pandemic they actually benefited from some aspects of the economy shutting down as we all became more digital so on the flip side of that it's not a surprise that tech would be the first to wave the white flag and say look we're going to pause here and other establishments have to catch up and so i think you're going to see not just the wholesale pausing but a cascading of this labor market through this cycle and it's going to be very hard to read because of that. >> so we don't have a lot of

time, liz and michael, we've never done this before i want both of you to talk at the same time viewers will have to listen very, very closely >> i'm not going to do that. >> you go ahead. >> the fed's projection for unemployment for the end of 2023 is only 4.4% that's a pretty big jump from here so i think everyone should expect the labor market to weaken over the six months, once it starts to weaken it's like a rock rolling down a hill and you can't stop it, what we're seeing in earnings and in tech is that margins are getting eaten into and start tightening those purse strings through the end of the year. i think towards the end of the year we'll start to see the numbers really come in

that's what scares consumers and people stop spend glg michael, can you say something like in 20, 30 seconds they're telling me i've already -- >> it hasn't before. it will happen now the four at the points of percent increase in wages if you look at that wage growth you combine that with the pretty large increase in overall payroll jobs what you see employers are still trying to get workers, they're still competing aggressively to attract and retain workers the question is when will it stop will it stop in 2023 no >> steve, sorry, we got to go. thank you, jason, liz, michael, steve leishman, rick santelli, thank you one and all. let's get down to new york

stock exchange and check in with jim cramer, what are you thinking, that number the markets seem to like >> it no letup in the hiring manufacturing, it's incredible we've become much more of a manufacturing nation than anybody realizes and it's just -- all these things that worked in terms of trying to get infrastructure built you're seeing health care back to the plus 53,000. i got to commend american business people for recognizing we have to make things here. the secretary of commerce was talking about this last night. we have 2% increase in hourly wages. but what an incredible quarter when it comes to making things, and that's not what we've been good at for a long time. we have to higher rates.

but i like the makeup of this. i think it's terrific. >> one concern people have brought up that we've heard a few times here, concerns about liquidity crunches or other things that come next, we had a pretty fantastic october and bun we're out of the woods just yet. >> well, i mean, you know, this does not include all the freezes and layoffs that we're hearing now. i got to tell you, i'm going to be a little heretical here and say, it's easy when you have a lot of money to say things are going to cascade and if they don't cascade, who cares, and if they do, bravo i can't do that because a lot of people watch us and they're trying to make money, and we don't have the opportunity to just say, you know what, the world's coming to an end, don't invest that's not our job at cnbc, so i'm not going to play that >> so, you say, buy here >> no. i'm just saying that we can look

for opportunity, and it's not the end of the world a lot of people come on our shows who are billionaires, and once you're a billionaire, you do not need to get rich a second time i know, again, that's heretical, but i'm getting tired of it and i think the people who are billionaires that come on our network ought to have something to say about how the regular person can make money. >> you must have loved what ron had to say today >> yi just tire of the billionaires telling us, you know what? people at home, too late, partner. you're never going to make it. that's not the way i made it, and i'm not going to help people make nothing >> got it, jim we'll see you in just a few minutes. >> meantime, want to talk about state o starbucks. i want to talk about labor and business now with rachel, the cfo of starbucks shares of the coffee giant this morning jumping after the company beat fourth quarter top

and bottom-line estimates fueled by u.s. customers spending more. good morning to you. >> good morning. >> so, this was quite a quarter. you had more spending, people spending more once they got into the store, and some more people showing up at the store. what do you think this says about where we are in the economy and what really is happening when it comes to inflation and the impact on the consumer >> well, i think we have to be mindful of all of our consumers, all of our customers are pressured, but the reality is what we try to focus on at starbucks is, how do we create value for customers regardless of the environment and we have been focused on increasing our rewards offering and our rewards program globally, but specifically in the u.s., that adds value to customers. they can earn stars, and that allows them to earn free beverages and food and other items, so that's a real value offering, and for us, it creates

more occasions, and it creates, you know, an overall higher ticket in addition to that, it's incredibly important for us to continue to innovate innovation gives customers a reason to come into our stores, and more importantly, a reason to come back in the quarter, what we saw was our personalization as an example, so when customers come in, they might add cold foam or an extra shot of espresso. that's an increasingly big business for us, and what we see is about 60% of our units sold in beverage are now personalized and that's led to over a billion dollar business in growing, so you know, that's an important aspect to continue to innovate, and then all of that is underpinned by a great experience that our partners create for our customers, which is our -- why our reinvention plan is focused on that. all of that together gives us a resiliency >> how surprised are you, though, about the resilience of the consumer when you guys were sitting around thinking about even this past quarter, a quarter ago, and

you thought to yourself, okay, what could the numbers really look like? are people going to actually spend more, and can we pass some of these costs on more and i think a lot of people have been surprised at how well things have held up, no? >> yeah, i mean, what i would say is we continue to evaluate that but that's why we have a lot of conviction in our reinvention plan and where we're focused we have learned over the past 50 years that the very best -- the best way that we can create value for our customers is through the experience we create, whether that be through our partners, our beverage offerings, our stores, and so we feel that that's the best path forward and that's really the underpinning of our new era of growth >> in terms of labor, though, there's been labor issues at starbucks, which i want to ask you about, but we're starting to see potentially at least in the tech sector, which i imagine, by the way, is a place where a lot of people buy starbucks, layoffs. just today, twitter, half the

staff. you see lyft, apple, amazon, it goes on. what are you expecting the next quarter and the quarter after to look like for you? >> well, as i guided yesterday, we're still looking to be about a 7% to 9% comp. we expect the first quarter to be at the lower end of the range, given a number of factors. but the reality is still that's a great expectation that our demand will continue, and the reason we have confidence in that is our ability to continue to create value for our customers. so, we're cognizant of the fact that we have to fight for each and every dollar, and that's why we can never take the customer for granted, and it's really important for us to create the very best experience, and so that's what we continue to focus on and we think that will give us a resiliency regardless of the environment. >> rachel, where do you think you are in what might be described as a battle with the unions >> we've said time and time again that we firmly believe a side-by-side relationship with

our partners is the best but we respect the process, and so where we're focused is to create the very best experience for our partners we've invested significantly last year, we made significant investments in wages and training, and we're going to continue on that journey because we know that's the equation that makes starbucks successful, when our partners, you know, when we have a competitive advantage, when we can attract and retain the very best partners, that's really our path forward. >> rachel, also wanted to talk to you about china obviously, a huge market for you. also, lots of risk there curious what you think about the covid policy currently and the way that may go and what you think it's doing to the business >> well, what we've seen is mobility is absolutely the driver of our business, so when we see mobility restrictions lifted, we see an improvement in our business that was evidenced in the quarter. we saw sequential improvement in

comp going from negative 44% to negative 16% and that was given the lifting of the restrictions. what we're focused on is making sure that we have the foundation to be able to support the demand when the restrictions are lifted so, that's why we're continuing to open new stores, and why we're continuing to focus on ways to connect with the customers, like we have an increasing digital presence, delivery, for example, was the highest growth we've ever seen in the quarter and that, coupled with the resiliency of our partners, you know, we think, is the path forward, regardless of what's happening. we're ready, and i think our customers are excited to be a part of the brand and that's evidenced by -- we had the highest customer connection scores we've ever seen so we focus on the foundational aspects. >> rachel, what is the risk for the business in china, given the relationship with the united states, given all the talk about, you know, reunification between china and taiwan and what the u.s. might have to do i was talking to some chinese

leaders and others yesterday, we were just discussing the situation in russia, ukraine, obviously, starbucks, mcdonald's, so many other companies got out of russia when that happened. what do you think would happen in a taiwanese situation >> well, what i say is what we focus on is continuing to be a part of the community in china we support -- we're opening a manufacturing plant, which is our largest investment in manufacturing outside of the u.s. we continue to support business in china for our partners in china. we have tremendous amount of career path opportunities for partners in china. we have a program where we give back, so we continue to focus on being a part of the market and part of the community, and we think that that helps us just in terms of our overall brand presence and our future path >> rachel, you know, you showed the rest of the coffee world how it's done, but that does set you up, i think, for some

disruption are all these little -- you're the goliath. do all these -- any of these little davids worry you? because they spring up everywhere some of them are pretty good and pretty innovative. i mean, how do you counter that competition from -- i don't know, there's a lot of new chains gregory's, others, things like that >> you always have to have your eye on your competitors because there's a lot you can learn from them, but you also have to make sure you're a step ahead, and that's why we believe it's incredibly important for us to continue to create new ways to enter our rewards program. that creates a lot of value for our customers. it increases our loyalty we also continue -- innovation is so critical to our path forward, whether it be through innovation of our stores, new ways for customers to connect with us, as well as innovation in our offerings, and so we keep our eye on our competition, because it helps us be better as well >> rachel, we appreciate you being with us this morning we just finished some starbucks over here ourselves. >> great >> see you soon.

>> final check on the markets. is it like a goldilocks jobs report kind of there's something for everyone, because we're up 271 points on the dow after it went down to unchanged after being up all morning. now it kind of likes what it sees use your own rorschach test on why. >> look at those golden lights on becky right there see that >> that is nice. oh my god, it's like -- make sure you join us next week it's friday. it's friday. >> happy weekend >> "squawk on the street" is next ♪ good friday morning, welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber, looking for our first gain of the week futures holding on here as october jobs come in 261,000 that is a beat but it's the third consecutive month of slower gains and it's the softest print of the year two-year briefly