industry it is monday, november 14th, 2022 and "squawk box" begins right now. good morning welcome to "squawk box" here on cnbc we are live from the nasdaq market site in times square. i'm rebecca quick along with joe kernen and andrew ross sorkin. if you want to look at the u.s. equities at this hour, you will see after a strong week for the markets, red arrows. dow is down 90 s&p down 15. nasdaq down 77 this comes after an incredibly strong week last week where the s&p rallied nearly 6%. dow up 4.2%. the nasdaq was the big winner up by more than 8%. all of that happened on thursday things took off.

we got a weaker than expected cpi and that led people to think the fed really is going to pivot. the vix hit the lowest level since august under the situations it is only at 24 if you look at treasury yields, they plummeted last week this morning, 10-year treasury at 3.886%. we have been talking about the 2-year treasury down to 4.38%. breaking news out of bali this morning president biden meeting with xi jinping. the first in-person talks since biden took office in 2021. kayla tausche has more on that headline >> reporter: andrew, the two leaders met after 4:30 a.m. eastern time for a meeting that officials say could last a couple of hours before president biden is set to take questions around the time that it wraps. they greeted with a handshake for the first time in more than five years they met last in davos in 2017

they deliveredre remarks. president biden saying he wanted the two countries to manage diffe differences and avoid conflict and keep the lines of communication open president xi stepping on the world stage since the pandemic said the countries must manage the relationship and the current state is not the fundamental interests of our countries and peoples. it is not what the international community expects of us. as leaders of the two major countries, we need to chart the course for the u.s. and china relationship it comes as both are looking to alliances shifting officials acknowledge beijing has an issue with the russian invasion of ukraine. there will be no joint statement, but they say the communication itself will serve a critical purpose

andrew >> kayla tausche fascinating to see is there anything we think there could really come out of this? anything meaningful that we are expecting? not really, right? >> reporter: not really. we will get some questions from the president a little bit later on this morning. there aren't expectations that tariffs will be rolled back or rollback of the u.s. building of nuclear submarines deployed in the indo-pacific the concern is heightened tensions both sides, as you tell by the quote from president xi, both sides want to manage this relationship and make sure each side knows where they are coming from they are engaged in stiff competition. they say that is okay. the u.s. says competition

doesn't tip over into confrontation. that's the primary goal of the meeting. >> kayla, do you think during questions that taiwan or human rights or uyghurs or president biden brought up any of those? do you think anyone wants to open that can of worms to address those things is that -- i don't know -- generic -- they know each other well i wonder what we should really expect with the really hard issues like taiwan >> reporter: let's start with human rights, joe. that is not a new issue. the two presidents have had five video calls during the biden presidency so far. officials in the proroom said ha

rights did come up it is hard to see how that was disc discussed. president biden was asked if he would tell president xi he would defend taiwan militarily president biden would not go there. he would not acknowledge if he would say that saying he would instead choose to share thoughts with president xi and his team directly exactly how that is communicated is unclear there has been tension behind the scenes with the president and national security staff about taiwan specifically. the president has not minced words about coming to taiwan defense as the national security team has done clean-up and walked back words with the one china policy has not changed the u.s. does not support taiwan independence although the president has been clear in his words publicly when talking about that issue there is this very ininnate

tension and how they communicate that with the one unified voice in the room. we will see if that happens. >> kayla tausche, thank you. we will see what happens i wonder if a tiktok comes up. i doubt it >> that's not one or the other. >> they can't agree with the situation in ukraine and if it is a war >> you see supposedly coming from our side some little urging to ukraine to maybe consider entering into some conciliatory talks which would seem like you have to keep certain things. we have been reticent to do so at this point. winter is coming >> it has been a talking point for kevin mccarthy and others. >> at least here. so many things

the collapse of ftx all weekend long you had to think it was on crypto traders' minds. the new cfo said the bankrupt exchange is removing trading and withdrawals anding moving fundo a cold wallet. ftx says unauthorized transactions began within hours of the chapter 11 bankruptcy filing in the united states. ftx's new ceo says it is cooperating with the law enforcement about the breach some ftx users are cashing out of the bankrupt exchange through the bahamas loophole the exchange is allowing withdrawals in the bahamas and paying high prices for nfts.

data firms calls it unusual and this could mean traders are cutting deals with users in the bahamas to receive assets back once they are withdrawn from ftx. another part of the story reports say sam bankman-fried alameda research traded billions from ftx accounts and leveraged the tokens as collateral we conjectured that was the case i don't know where this leads. does this lead to criminal charges? we don't know. >> lots of speculation about that hard to say for sure look, anthony scaramucci said he invested back in cryptocurrency and sam bankman-fried's coin you are pricing up that coin. >> if you look at the terms of

service, it appears that when you invested money on the exchange, it was not money that was therefore accessible to the platform or alameda or somebody else to go trade i think it could be a clear case for him of when you comingle funds, you have a problem. this could be more than comingled funds. in his defense, it was a labeling issue he didn't know this was this i don't know >> the money's gone. >> whe'll see >> the money has likely gone to money heaven depending which reports you see, coin telegraph, the bahamas authorities are monitoring his whereabouts. his hotel. his penthouse. >> now on the market >> he will go off to dubai or go somewhere else

in the bahamas, you can be extradited >> these are nuovo rich? they can be -- one person who didn't look affected by all this is tom brady he's going through divorce and this he had a great game. one person i wish we could talk to is bill leary do we know anything? >> that may have been us >> i wanted to hear from him didn't you >> more things. let's talk more crypto stuff. another exchange under scrutiny. crypto.com publishing the cold wallet addresses and balances then came to light that the fact that the exchange made an error while transferring a large sum of ethereum.

equal to $400 million. the exchange sent it to another account gate it circulated on twitter and sending tron down. the statement on sunday with the transfers made over three weeks ago on october 21st. tomorrow we will be speaking with the ceo on a first on cnbc. in the wake of this, let's check on cryptocurrency. 1 $16,783 for bitcoin. all of these cryptos had a rough week last week for bitcoin, the worst week since june ethereum is trading $1,259 we will continue to watch all of

this when we come back, a warning from the fed governor to investors who might think the central bank is nearing the end of rate hikes. first as we head to break, look at the morning's biggest pre-market winners and losers. stay tuned you are watching "squawk box" and this is cnbc >> announcer: this cnbc program is sponsored by bdo. people who know know bdo what's going on? where's regina? hi, i'm ladonna. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations, like real time cgi. okay... yeah... oh. don't worry i got it! become an agent of innovation with invesco qqq

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welcome back to "squawk box. futures down less than 100 points on the dow. big week last week for the nasdaq major snapback violent snapback >> 8%. >> maybe that's more characteristic of a sharp short covering bear market rally or is people saying this has been overdone on the down side. fed governor chris waller said the fed may consider slowing the rate increase, but that is not softening commitment that sounds like what jay powell said speaking at the ckconference in europe, he said the market

overreacted to the announcement last week. oh, no people are feeling better. noting it was one data point waller says investors should pay attention to the end point of rate increases and not the pace of each move the end point is still a way off. meantime, wall street getting a note and attention that a lot of folks will pay attention to goldman sachs team says that inflation will drop significantly next year. supply constraints easing and the real estate cooling. if this happens, the fed will be less aggressive inthe interest rate hiking cycle. joining us to talk about it is linda which is the strategist

and jj >> i don't think you are singing ding dong the witch is dead. you have one data point last week a lot of people are looking for a reason to buy. you know, waiting for the move last thursday was unlike anything in a long time. it was amazing we kept going the inflation pressure continues through for the next six months. i think their point on housing is a really good one the rate more up happened so expone exponentially. we have not had a chance to catch up we see the slowing in the holidays and when we pick up in the sprirng, you will see overal prices and that will help with

the inflationary priessure >> linda >> i agree with jj inflation will come down inflation has a one-year lag definitely we'll see inflation come down hard the question we all have to wonder now as we look into next year is what will happen with earnings you are 17 times earnings. forward earnings are too high. all of this tightening will work with the lag 2023 will be a very interesting year that way. that's what i think we have to focus on is earnings next year that's a little bit harder than is inflation coming down >> linda, you know, when it appears the republicans would have a red wave, we talked or i didn't, but others talked how the stock market was going up, up, up, up, up with the red wave you see what happened over the weekend and where we really are.

the market is not trading off that what do you think the politics mean >> it is interesting the markets are not trading from the cryptocurrency blowup last week. that is a powerful comment the market as history suggests, likes gridlock this looks like gridlock to the extent the republicans win the house, that's okay my hope is this gets more boring i think it would be cool the next two years and make politics boring again that would be lovely if we did that back to fundamentals and no outside moves on betting what politicians are going to do. it seems like the tax hikes are off the table for now. and if somebody is looking at the market, that is good news. just get saddled up for the next election season. >> you never know the counter factual. >> jj, what about the counter

factual? >> hello am i invisible if the senate goes and the house had gone, and it could, but we're still gridlock >> of sorts. >> what would have been the difference if the senate had gone what would the republicans do with veto power? gridlock and gridlock? there is not it is gridlock or not gridlock >> we thought the way you described it, my friend, and others -- >> i heard the reference to it that's why i'm saying if the house had gone, it would be a difference >> if the house happened, it would make a difference. kevin mccarthy he will not have as much room. >> what does he have to give up? >> i don't know. because it is a tighter margin for him -- >> gridlock overcame what happened in crypto

amazing the market >> that's what i wanted to ask jj crypto and investors right now, jj, what are you seeing with money coming in or coming out, i imagine, of crypto how is that rolling over into the stock market >> i think overall, you have seen more withdrawals than money coming in. the pace of trading slowing last week and over the weekend as i think people have a fear not that it will go to zero or anything like that i think there is a contagion risk until we know actually what happened when stories like this happen, it is like seeing a mouse. there is never just one. we will see what that actually means. that said, it has been amazing how it hasn't affected the stock market yet i think perhaps that will stay limited because of the regulated difference in the stock market,

et set cetera i think people feel if their money is in the brokerage account and it is regulated, so the probabilities of something happening to it, money stolen internally or externally, is lower. >> jj, are you in the camp that the ftx situation is like a mouse. there is always more than one. you could say this is -- i don't know if this is an mf global or a one-off issue or an enron which hit energy market and hit arthur anderson. lehman hit everybody madoff, if that is where you go with this, i don't want to say limited, but for the most part, limited to 1,000 people and institutions that got hit. it didn't have that which was the knock.

>> it may have taken serven or eight years. they all got their money back. i don't know if that is the case here andrew, cryptocurrency is a new business these exchanges are new. usually, we don't want to see this exchange being accused of doing bad things thinning of the herd longer term is good for the business now, again, not happening in the way this happened. i think long term it can help kr cryptocurrency and some use beyond just trading overall. you know, they talk about crypto winter maybe they were looking for cryptocurrency spring. it may be in chicago for a little longer than we thought. >> linda and jj, thank you. >> thank you, andrew spacex just bought a big ad ai on twitter. details when "squawk box" comes

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welcome back to "squawk box. time for the executive edge. "black panther" taking in $180 million in the u.s. and canada the second best behind "dr. strange" and that sequel "wakanda forever" has been waited on by people since the summer we will speak to adam aaron.

they are pretty nice the amc. >> the imax ones in particular >> the fancy popcorns. not just standard. have you seen that >> no. what do you mean i went to amc last week. >> all flavors. >> i saw the butter. >> yeah. in corporate news, disney telling employees layoffs are likely as the company will reveal cost cutting moves. according to a memorandum to executives from bob chapek hiring has been frozen and review of spending cuts released that memorandum does not indicate how many jobs will be eliminated. and elon musk's spacex bought a big ad campaign on twitter for starlink

it is a twitter takeover the company puts the brand on the top of the timeline for a full day one of the packages costs up to $250,000 spacex has not previously been a big advertiser on twitter. some folks seeing this as a way to shore up -- i would say the cynics who say and there is a cynical thing to say here -- elon musk taking money from one pocket to the other. at the same time, $250,000 is not changing the dynamic to some degree, it is an experiment for him to understand how advertising works on the platform and how effective it is or is not. a lot of the folks he has been replying to on twitter have been about the advertising which is to say advertising on twitter has not been nearly as effective as on instagram or facebook or

tiktok. >> it is direct to consumer that tends to work best on the social media. you can see if somebody will buy something instantly. buy a trip into space? >> starlink. >> to see if you are selling. >> you can buy the product. >> it is expensive. >> yes, a couple hundred dollars and subscription that is how you sell it. >> i take it back. >> we'll see >> it's weird. elon responds to crazy stuff did you see him go, uh, no >> john? there are a bunch of people out there who say they want it and marcelo and cramer said it then he says no. >> um, dot, dot, dot.

before we head to break, check oust tt the winners and ls pre-market stay tuned you are watching "squawk box" on cnbc >> announcer: executive edge is sponsored by at&t business at&t 5g is fast, reliable and secure bark-ery oh, i can tell business is going through the “woof”. but seriously we need a reliable way to help keep everyone connected from wherever we go. well at at&t we'll help you find the right wireless plan for you. so, you can stay connected to all your drivers and stores on america's most reliable 5g network. that sounds just paw-fect. terrier-iffic i labra-dore you round of a-paws at&t 5g is fast, reliable and secure for your business.

good morning welcome back to "squawk box" live from the nasdaq market site in times square. checking the futures they improved a little dow down 57 points nasdaq down 70 treasuries have backed up a little in yield. still below 4% on the 10-year treasury you can see the 2-year treasury at 4.38% crypto held up well over the weekend compared to the news cycle. although we are still talking under $17,000 for bitcoin. in corporate news, phase three studies for the alzheimer's failed to meet primary end points

the drug failed so slow the patient clinical decline and removal of the protein built up to make plaque in the brain. it was lower than expected maybe not. there was some recent evidence that maybe it is the plaque. in this case, it didn't work and did not help with the plaque you can't make any determination about whether it works to address the protein. roche will keep working on diagnose partfor a treatment fo alzheimer's. >> what does it allow you to do? >> change the way you live your life. >> get your affairs in order. this is the news you want to know >> that's the question meantime, when we come back,

goldman sachs head of commodity research will join us. jeff currie. and we have the latest on the president biden meeting with chinese president xi jinping we have it all ahead "squawk box" is coming right back from the nasdaq market site from right here in times square. ♪ ♪ ♪ ♪ introducing ihg one rewards. seventeen hotel brands. six thousand global destinations. one loyalty program that lets you guest how you guest. welcome to ameriprise. i'm sam morrison, my brother max recommended you. so my best friend sophie says you've been a huge help. at ameriprise financial, more than 9 out of 10 of our clients are likely to recommend us. our neighbors the garcia's, love working with you.

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welcome back to "squawk box. we were looking at the futures oil is at 88 this morning. joining us now is jeff currie. goldman sachs global head of commodities. jeff, any glimmer of hope for inflation is obviously welcome in a lot of markets. you look very closely at certain types of commodities not necessarily shelter. not necessarily the labor markets. how much of the inflation we see now and future inflation is based on your purview versus things you don't follow closely? is it possible we have a dropoff next year in overall inflation like we heard from jan >> you're an mute. >> okay.

we're back >> is it just a switch that someone didn't throw had. >> just a switch >> go ahead. >> we cover physical goods and commodities. the physical goods were the root of the inflation at the very beginning. then shifted to wages and services and that's at the core of what jan was speaking about when we think about the outlook for physical goods, it starts to get really bullish over the course of the next 6 to 12 months primarily because you get china back in the picture. that's the big news over the weekend. china. second largest economy in the world. world's largest commodity consumer was locked down and in recession for the last 12 months and in news over the last week, it has been positive in reopening. readdressing the zero covid

policy and also policies aimed at supporting the property market before they had a covid problem and before they had a property market or leverage problem now they believe they have a growth problem they are focused on fixing the growth problem that's going to mean a lot to commodities markets. our base case was reopening in the second quarter of next year. that hasn't changed. what has changed is the macro sentiment around it which is why we see such a large move in markets like copper. >> with all that together, i don't know what you call the 40-year highs we saw in inflation. are those factors dissipating, staying about where they are or increasing for the next 12 months >> at least on the physical goods side, they are likely to move higher. the reason why they are likely to move higher is, again, i'll say it one more time

the world's second largest economy, the world's largest commodity consumer in the world was basically hibernating in the last 12 months and made clear to the world it is coming out of hibernation. addressing zero covid policy and also through dealing with the property market. these are very large developments you are seeing them start to be priced into the dollar. >> tdoes that keep us where we are because of the possibility of the labor market opening up or people going back to work or mortgage rates at 7% cause rent prices to come down eventually shelter? you see what i'm saying. how much do physical goods add to the entire inflation picture that got us to 40-year highs >> oh, it was a lot at the beginning. they are relatively small. in the 30% to 40% of the overall

index. shelter alone is 40. they are relatively small. i think the message here that we need to be thinking about from the macro perspective is what does a commodity run-up in 2023 do to overall real income? it has to be a relative price move in the sense that before you had expanding money supply in tight commodity markets so everything rose. this time around, money supply is shrinking you have tighter commodity markets given what is likely to happen in china and that means the rise in commodities prices will come from somewhere else in the basket that is why we put out a piece in the old economy takes its rev revenge. what happened is the rise in oil, food, capital goods, physical good commodity prices start to take a toll on the

disc disc discretionary spending particularly tech in advertising and new economy goes down and old economy goes up. that will be a theme in 2023 and clear into 2024. >> just specifically about energy is europe in a better position people said they have been able to prepare a little better for the coming winter with natural gas. what do you think oil? what is the high and low in the next six months for crude? >> europe, you know, the saying is you never get hit by a train you see coming they made the preparations they dealt with it they haven't dealt with the problem next summer or the following winter there is still a structural problem they need to deal with the very immediate term, barring a cold winter, they got through it our view is prices will trade below 100 euro a megawatt hour

e even on the hourly basis there was so much lng packed in the european market during that time the message is we are not out of the woods on the medium or longer-term basis. oil is the one i would be focused on in december when the eu import ban on russian oil goes into effect, russia made it clear they want to retaliate the risk runs relatively high. you lose the spr barrels you have disappointing shale production at this point right now. you have the demand amid china rebounding put it all together and it starts to get bullish at the end of the year and early next year which is why we stick to $115 target on brent. >> everything you described is out of the fed's ability to control. >> absolutely. by the way, when we called for the commodity super cycle, it is not just prices are going to

trend over time. you get spikes each spike, the high is higher than the previous one. the low is higher than the previous low you just do that over the course of several years we are on the back side of the spike leftover from the summer as we go into the winter months, we are likely to see another spike. you see evidence in heating oil product prices. >> jeff currie at goldman sachs. thanks >> great thanks for having me. >> you're welcome. when we come back, president biden meeting face-to-face with chinese president xi jinping in bali the issues investors need to be following. wl lkbo tt xtweilta authane

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♪ president biden and chinese leader xi jingping meeting earlier today ahead of the g-20 meeting. joining us now michelle ka rue koe ka ber are a it's the first time anybody is meeting with xi jingping since, you know -- since covid really shut things down he wasn't traveling before there's a lot that could come out of this. >> it's an extremely important meeting because the key role here and the key thing is, can they reduce the probability of war. it's an astounding thing to say when we've been covering china economically now for 20 years, at least, as they started to emerge economically and now we're in a situation where the national security statement from the biden administration in october made very clear that china wants to re-establish,

reshape the international world order and they have the technological capability, the will to do it, the economic capability, et cetera. and so what do you do right now if you're the united states? president biden has made very clear they want to establish guardrails what is extremely important to us, what is extremely important to them, and how do we avoid the possibility of war down the road >> what are the answer to that what's most important to us, what's most important to them? >> what are they going to say about taiwan we don't support taiwan's independence, even though right now they're independent. and china -- we support the one china policy as long as they don't implement the one china policy this is a policy that was put in place before taiwan controlled all our semiconductors, before it was in our national interest to make sure that they were independent. so what do we do now

and xi jingping, the leader of china that ten years ago we didn't realize the kind of changes he would usher in when we became the leader in china, has suddenly made very clear, we want to take taiwan by 2049. he's put it on the calendar. both would argue, i think, that the status quo has changed and they have to figure out some other way to deal with this situation. >> is that really the situation, though, that we are -- this is our biggest priority, simply because of semiconductors? like oil in iraq >> oh, oh, i think semiconductors is extremely important. i think semiconductors speak to a bigger issue which is there is a country in the world that can control our destiny in some form or fashion do we want that to be the case >> if they've laid out a timeline for 2049, aren't there other ways to deal with that >> having meetings >> that's a long way away. >> that's what the whole point of the chips act is to start building our own we've seen countries in europe

decide they're going to subsidize semiconductors so they're not reliant on them. absolutely, yes, there are other methods we can take. but at the same time there's also a focus on increased communication leading up to this event. people within the national security world were very concerned about even the ill -- inability to establish an agenda for this meeting that the chinese were refusing to communicate post nancy pelosi's visit to taiwan they want an improved communication line to make sure we don't have accidents or incidents that escalate unnecessarily. >> so this is going to be an interesting press conference in a couple hours' time >> i want to hear what the president says about taiwan. i want to hear what he says the guardrails are what did xi tell them about what their guardrails are i don't know that this is going to be market moving.

i think your last guest who was on made a point saying that the changes they talked about on saturday -- they were pretty priced in. the chinese market rallied tremendously last week in advance of what was said ove the weekend. those are much more market-moving than i think what's going to happen here, unless there's a dramatic breakthrough i don't want it. >> henry kissinger, what does he have to say about this >> he wants to make sure there's a direct line of question. some people roll their eyes and say, yes, it's emails and telephones if you go back to the cuban missile crisis, they had to speed things up. there was a hotline established between the soviet union and the united states. there needs to be immediate communication between the two countries. how do you improve communication so if there's something on the radar we don't understand,

there's something on the radar that they don't understand, how do we get an answer right away about what's going on. >> the backdrop from the business side of things, are companies like nike, tesla, apple, that have to do this -- they have to walk a fine line between appealing to china and appealing to the united states how much trickier is that? >> well, so a lot of people want to talk about a new cold war the old cold war was between the united states and the soviet union with whom we had zero economic interaction now we have intense economic interaction. it's a much more difficult position at this point to say, okay, we're going to try to establish guardrails about this very difficult relationship in which we are competing intensely, with a country where we also do a lot of business with how do you mesh those -- there's so much enmeshment is the word i've heard between the two -- >> dependency on both sides. >> absolutely. we did 50 billion in trade last

month. we're importing dramatically and importing far less to china. we're still dependent on them for imports. >> thank you. coming up on the other side of this, we have two big hours ahead. katie stockton on what the charts are telling us. stay tuned you're watching "squawk x" ghhe othonand only cnbc

coming up on the other side

good morning markets looking at a lower opening after the s&p's best week since june. we're going to talk technicals and get a market outlook with katie stockton spacex ordering one of the larger ad packages available from twitter we'll talk about that move and the future of advertising and much more with endeavor ceo. plus the latest on the ftx fallout and what it means for crypto investors the second hour of "squawk box" begins right now good morning welcome back to "squawk box" right here on cnbc

we're live on the nasdaq market site at times square i'm andrew ross sorkin along with becky quick and joe kernen. take a look at futures let's show you where things stand. right now the dow looks look it would open dow 70 points off the s&p 500 looking to open down about 13 points. let's show you treasuries right now. you're looking at the ten-year note it's sitting just at 3.895 right now. the two-year at 4.389. wti crude, it will cost you $87.74 crypto, which, of course, we've been debating whether we're in a crypto winter, ice age, or what's about to happen 16,736 for bitcoin ether will cold you $1,251 we've got a look at this morning's premarket movers what are you seeing? >> there's a lot out there let's start with shares of bank of america a downgrade at city.

they think the -- the difference between what the bank earns on interest versus what it pays out is already baked into the stock which is why the stock is down 0.9% right now they say regional banks might be a little bit better. the stock is down 19% year to date thus far. let's talk about amd its shares rise after an upgrade from baird and ubs analysts think the new processer chips will gain market share the stock jumped you can see from thursday to friday when it was launched, the release of these chips beating out intel whose similar chips won't be ready for january while ubs is seeing that inventory might be close to peaking. teva pharmaceuticals, 2% lower after a downgrade. they're worried about growth in

the north america generics business uncertainty around the change in leadership as the company's ceo is not renewing his contract next november. and shares of hasbro moving lower, down 5% right now there's a game called magic. it's a card game which contributes 10% to revenue they say wallet fatigue is real and players are cutting back >> oh, no. okay thanks wall street research note getting some attention this morning. goldman sachs economic team led by jan hatzius say cost of housing is falling and labor markets are cooling. if this happens, the fed may be able to be less aggressive in its interest rate hiking cycle now let's talk technicals which

katie could care less about what i said katie stockton joins us, founder and managing partner as well as a cnbccontributor. the bear market rally, and that's what you call it, it has legs and that might be significant too. but still a bear market rally. >> yeah, still looks like it to me we have all the short-term gauges pointing higher now and there's not a lot of breakouts with this move as much as it's been impressive off of that late september, early october low. i think what we've had here is really a macro shift that's driven this rally and it was very similar to what happened over the summertime where we saw the s&p 500 peak in mid-august the ten-year treasury yields had been correcting ahead of that peak for really several weeks. so i think we're probably in store for something similar this time around where the s&p 500 will peak on the back of a

short-term low-end treasury yield. and i don't think we had that low yet. >> crypto is on everyone's mind, on everyone's lips you think -- you're surprised at, i guess, the -- that it stayed somewhat localized and this is positive seasonally for crypto what do you mean in this time of year >> time of year which is positively seasonally for risk assets more broadly. and i'm surprised more damage wasn't done to the charts of bitcoin and ether last week and yet for bitcoin, there is a major breakdown that would be confirmed this week on a close below 18,300 and the next support level is below 13,900 that's why it's significant because the drop to the next support is really, very, very far. it's easy to make a case for that breakdown

and yet we have counter trend signals that lead us to want to wait for it, give it a chance to cut back this week the indicators are showing signs of downside exhaustion that we haven't seen in some time. on the weekly chart that we haven't seen since this bear market cycle began, that would support a rebound of nine weeks or so for cryptocurrencies whether or not that allows bitcoin to avoid its break down or not, we're not sure it would be at least a relief rally and something i'm sure a lot of folks would be welcoming as a selling community. >> what are the exhaustion things -- the things that are exhausted. help us understand it. >> the demark indicators these are counter trend signals. it's on overbought/oversold measure. basically, weit's where selling pressure dries up.

that's what it's indicating here yet we need proof. we give more weight to a breakdown than any kind of oversold reading in this environment, we're going to be treading very cautiously with that. >> it still has to do, obviously, with the to turn aro

>> we had jeff curry who follows all the physical commodities he's expecting still a supercycle, especially as -- fundamentally, this is as china may be reopens quicker than we had thought in the past from the covid lockdowns. do the charts say that as well talk about oil as well >> yeah, well we got some really interesting turnarounds in the metals complex over the past week or two. and that to me is the most intriguing thing happening right now. what we want to always see is something that might have a

little bit more shelf life as an investment and we feel that way about precious medals in this environment where gold, silver, platinum, they've all reversed their down trends with their recent move and they reflect momentum in areas that are considered to be safe havens so we're encouraged by that rotation into the metals, at least as something to do or somewhere to hide in this environment. copper is taking part in that to some degree as well. for crude oil prices, we have also a relief rally and to us we think we're going to see some upside based on the same momentum gauges. the energy stocks have really run up and i'm surprised by the breakouts that we've seen there, they've been really very impressive now we're starting to see some minor signs of short-term exhaustion for history maybe crude oil consolidates a bit here while it moves higher and so will the energy stocks. >> do mortgage rates lend

themselves to technical analysis, katie. >> anything that's a price or a yield we can certainly have an opinion on and it will be very unbiased as you can imagine. >> so the mortgage rates sort of went to a -- some people think they went to a terminal rate more quickly than the ten-year, for psychological reasons, whatever is 8 or 9% a possibility in this latest cycle, do you think >> it certainly would be if we have our target for ten-year treasury reyields arou five and a quarter, i think that's certainly possible. i don't know exactly how they relate the trend there is higher. even with the retracement reviewing that trend and these are multidecade reversals that we've seen in these longer term trends not a short-term comment but we believe we've come out of this down cycle for yields and anything related that was

decades in the making. so we suspect that even though it doesn't mean we'll have every -- every year is going to be higher, we're now interesting into a multidecade uptrend now in yields. >> everything is exhausted, just like us. >> just like us. that's true. in so many ways. katie, thanks. >> thank you coming up on the other side of this, president biden and chinese president xi jingping meeting in person for the first time since biden took office we have details of what was discussed. it's all coming up and then we're going to talk twitter, digital advertising and more with ari emanuel. "squawk box" coming back with it all in just a moment >> announcer: "squawk box" is sponsored by bitwise the world's leader in crypto index funds.

welcome back to "squawk box. president biden harrinolding a meeting in bali with president xi xi. >> it comes with high stakes relations are at a low point as domestic power for each is high.

it's before a meeting that could last a couple hours. in opening remarks both president biden and xi expressed a desire to manage the meeting responsibly and beijing restricting communication with the u.s. after house speaker nancy pelosi's visit to taiwan in august. indo-pacific instability is a high priority, to curb north korea's provocations and understand china's nuclear ambitions and relations with russia has the prc touts ukraine sovereignty and plans future oil and gas purchases from moscow. they say i think there is some undeniably some discomfort in beijing about what we've seen in terms of reckless rhetoric and activity on the part of russia

i think it's undeniable that china is probably both surprised and even a little bit embarrassed by the conduct of russian military operations. the outlook for the war in ukraine seen as the biggest order of business for the g-20 overall. china's role in that is critical and while we don't expect any joint statement or deliverables from the biden/xi meeting, there's going to be a joint communique from the g-20 so any coordination or agreement there will be important, andrew. >> we talked about in the last hour, do we think that any of the big issues are really going to come up, taiwan, of course, is it going to get commented on, do we talk about tiktok, any of the big topics or is this just about trying to mend a relationship -- what does even mending a relationship mean? >> i think mending the relationship just means understanding the positions of each better when for domestic purposes the rhetoric has become even more aggressive for both

parties, both leaders here, and with the midterms behind the u.s., there's a lot of stuff that's said on the campaign trail that, of course, then becomes different when it gets channelled into policy i think that's what the china officials are looking to understand a little bit more from the u.s from the standpoint, they want to understand exactly what china's intentions are, specifically in the indo-pacific, with instability on the rise and worries about provocations spilling over into some sort of military conflict there's economic policy, president biden said that he would be discussing in his words, he called it, free trade. certainly there has been a lot of escalatory policy by congress and by the administration on export controls and on business. you mentioned tiktok of course, that remains with cfius and some sort of structural outcome there remains clear. on taiwan specifically, it's unclear exactly what the two sides could get out of this. president biden last week was

asked whether he would accept any concessions to broker some broader peace deal in the taiwan straight he said there would be no concessions from the u.s so what sort of middle ground there possibly could be, we'll see if there's anything that they end up disclosing, andrew. >> okay, thank you we should mention in the next hour, we got "new york times" foreign affairs tom freedman, he's going to be joining us with his take on the meeting between president biden and president xi joe? >> coming up, developments over the weekend about ftx raising alarm bells. it's been a rough year for media stocks check out the performance of some of the big players since they hit 52-week highs we'll speak to endeavor's ceo, ari emanuel, about content check out the futures right now. we are indicated down. less than triple digits all of a sudden down 64 on the dow we're comi rhtac ngig bk.

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the black panther sequel dominating the box office. it actually scored the second biggest opening weekend of the year beating out "top gun: maverick" with $180 million in u.s. ticket sales. take a look at the performance of media companies paramount and warner brothers discovery down over 50%. disney and comcast not far behind and joining us now with more is ari emanuel, the ceo of endeavor it's great to have you here. >> nice to be here actually, it's nice to be in person >> it's been far too long. >> two, three years. >> so you are the content guru and there has been all this talk about how content is going to go down, just in terms of the money that's been put at it. it's what we've been hearing from warner brothers from all of the studio heads saying we're not going to spend as much you provide a counterfactual to

that what are you seeing? >> everybody said they're going to make cuts, disney most recently, netflix went through it but really then disney comes out, they're going to be spending $30 billion, maybe 33 netflix says they're going to stay at the 17 billion, maybe go up based on subs they're adding services, there's no indication in any of these cuts that they're going down in content spend. and they can all talk about it i think they have to talk about it for wall street but in reality, the only -- the -- people are coming to their services for new content, movies, television, documentaries and sports they're staying there. at amazon, it's sticky because of thursday night football right now. they'll talk about it. their ad spends are getting a little bit less. but i think they're just learning that as they move into thursday and across the board, you have, you know, paramount went from 2 billion to 6 billion, roku

coming in. everybody is spending and now the movie business, as we know, seeing this movie is over $300 million, so there's no indication that there's a less spend. there's actually just more buyers, plus, all the buyers on the linear side, like disney, warner brothers, have to defend the old system while going -- moving into the new system and then you have the netflix, amazon and apple sitting there and spending against them too. you have seven or eight buyers plus the traditional movie business there's no chance that spending is going down. >> your revenue was up in your earnings last week and that's proof of it what about the stuff that you're negotiating right now? is there any sign that there's a -- i mean, it has to be a story line that at least they bring when they're trying to renegotiate things -- >> i think there's a story line for you guys and maybe for the street i just finished a fairly significant deal with amazon

with tyler perry there's movies happening -- >> there's maybe -- maybe the budget stays flat potentially, but the -- >> the budgets are flat. >> let's say, less overall new content, maybe they're going to spend more on certain packages. >> no. >> no. >> there's more content than there's ever been. >> you think there's going to be straight volume. >> part of the problem over the last three years, there's been volume without quality. >> well, i completely disagree with that statement. you guys can all talk about what you guys like and don't like last week it was jeffrey dahmer. you have "the crown" coming out. you have this movie this weekend. you might not like everything, but you have your things that you like and you can all go around and we have five or six things that we're watching all at once. >> no, i don't >> okay. okay >> that's the problem. >> between sports, movies, television, when we define content and podcasts, it's a broad spectrum

you guys are focusing on movies and television but when you talk about content, which i'm in, it goes from books, podcasts, sports, movies, television, documentaries. >> here's the thing. the whole podcast model, you look at what they were doing, on a limited -- the whole idea was, we may lose money actually making the podcast itself, but -- for it to work, we have to sell it off to netflix or somebody else to actually -- and get a tv show out of it. and in an environment where that is harder to do, it changes the dynamic on the podcast you're seeing it on -- i've had those conversations with people. >> i would say to you -- >> have you ever heard what i'm talking about. >> i just finished up a rachel maddow podcast, i'm in negotiation with possibly two major writers to make it into a movie. we've just finished over the last -- this quarter over -- i think it's $100 million in podcast deals. i appreciate your talking about

it from the buying side of the community. i sit -- not that this is about me i'm just talking in general. on the selling side of the equation, the business has never been better. >> you've got a better -- >> i got a better equation. >> let me run through the cancel cancellations, is that something that they had to get rid of old stuff in there and move on. >> they had problem with where the content was on quality from their perspective. when david talked in and i represent sam and he has euphoria and he has a new show with the weeknd called idol, it wasn't working creatively. they dumped more money in to make five episodes it's incredible right now, yes, you can point to those but there's the other side of that equation which you guys aren't talking about where

they're doubling down on content because it's quality from where we sit in the equation -- i know it's difficult from the buying. they've all made their bets. because at the time it was spend money and get data on the services, plus defend the rest and that was working in the market now you're in a situation where you guys are asking them to be profitable they're under a lot of pressure and that's why you see the returns down 30, 40, 50% from our perspective there's more demand for content than ever and you have the same pool of people creating content that means prices are going up on a supply and demand side. >> what about foreign exchange, the strong dollar? that was a headwind for you this time around. by the way, i know you watch the markets closely. when you were here last time, you stauck around to see the jos numbers. this stuff matters. >> inflation is hitting every company. it hit us in a significant way, plus a couple things moved into

the next year and we sold some stuff early. yeah, it's going to be a problem i think for a lot of companies on the revenue side. i didn't even our ebitda but on the revenue side. >> are you a pga guy or a lirv guy? >> i'm a pga guy i think jay is doing a good job. he's figuring out new economics for the players and so i think you'll see the points situation for players i think play out and who gets into the majors which i think is going to be a big issue for li vv. you would? you would or wouldn't? >> we right now don't represent any of the tournaments and we don't represent any of the players. >> that wasn't what you said -- you would or you -- >> my brother is a politician, i'm trying to follow in his

footsteps. >> he was one of the first people to give back the money, the investment in saudi. that's why -- that's why the question is being asked. >> okay. >> and >> we don't represent any of the tournaments and we don't represent any of the players. >> you just want to keep on pushing on that. >> you're outspoken when it comes to things you disagree with, like the op-ed you wrote about kanye west and taking a stand on that. i have to ask you what you think about kyrie irving what did you think of dave chappelle's "snl" monologue this weekend? >> on the kanye thing, i stand by my op-ed piece and i stand by -- i don't think there's any place in the world for hate. i also stand by, if he's actually willing to do the work and learn about anti-semitism and what that all means, i would be the first lining up like i was with mel gibson. >> there's a way back for kanye? >> if he truly wants to learn

about the history of the relationship between jews and black people and everything else, yes. kyrie is i think -- adam is trying to handle that in the best possible way -- >> adam silver, the commissioner of the nba. >> yeah. >> and as it relates to dave chappelle, do i agree with all comedy no do i think it's funny? yes. i don't think he -- he has to have the ability to do comedy. we can't be sitting there every little nuance negotiating that i thought he was very funny. >> elon is your friend what should there be your -- >> not anymore. >> is he still a board member? >> no, he's not. >> what should be on twitter >> there was a time when the aclu marched with the nazis because they said that they despised what they were saying but -- >> you have to have free speech.

my brother and my father were at the demonstration against them, but -- >> what do you think -- how does -- what's the right path -- how does elon thread that needle >> i think right now if we're talking just elon in general, he is figuring out the platform and what it should be and how it should represent free speech in there. you have to have a form for people to speak. you don't have the ability to kind of -- in that big of a form, scream fire and not have consequences we will figure that out, i think, it's not going to be -- it's going to be rough at the beginning. but if there's anybody that can figure it out and going to be thoughtful about it, it's going to be back -- >> will trumpy be back on? >> he's got his own platform if he's actually telling the truth and not lying, yeah. >> that would disqualify a lot of people on twitter. >> i don't know who is the judge. >> i don't know who the judge is someone has got to decide.

were you at leo's birthday party? >> my son leo? i don't know if there's -- leo dicaprio's party >> no. last time you were in town, you were going everywhere else >> i'm in town for you guys and this weekend we have the ufc i was in town for our fight. >> that was a big deal it's only been six years that it's been in new york city. >> so we've had 27 in a row sellouts for the ufc the number one and number two at madison square garden, biggest -- we've had six of our last eight hit records of sellouts and this was the fifth largest sellout we've ever had so it was an incredible evening, six hours of great programming disney was incredible and espn >> not getting an invite. >> he wants to go back to this

party -- >> who represents -- >> you represent me. we should probably disclose that do you remember the johnny carson guy do you remember? >> i don't remember. >> very quickly, you have not seen any slowness in growth -- slowness in demand for live events >> in fact, we look at it -- i'm cautious but i'm just looking at the world. we had a huge opening for our free art fair in seoul, a hundred galleries, 70,000 people showed up. we had big festival in london, sold out this week we have winter wonderland going on sale i talked about our ufc stuff super bowl is selling this year coming up incredibly well and for 16 months from now, it's ahead of categoryfrom -- right now in -- and live nation is

talking about '23 being great. i think people are now wanting experiences and that's what we're seeing right now >> are those prescription glasses? >> yeah. i wish they weren't right here >> i'm just wondering -- whether you thought this was a look. i needed to know that. you're nearsighted you haven't heard of contacts or laser? >> i don't do that it's not that you don't like the way you look you look much smarter. >> thank you for coming in >> i don't know how you guys do it >> thanks. >> thanks, everybody i appreciate it. coming up, palantir co-founder joe lonsdetale will join us. "squawk box" is coming right back after this.

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welcome back to "squawk box. the futures right now, some of the best levels we've seen really all red. 43 points now on the dow down. and the nasdaq down almost 50. s&p indicated down about nine. disney's ceo announced friday that the company in his words anticipates some staff

reductions to help cut costs meta and twitter have recently announced layoffs and now senior executives and managers at many firms may be contemplating how they would lead their teams in light of the sudden job cuts sharon epperson joins us now. >> how a company handles a layoff can have a lasting impact on the firm's future success experts say if it's poorly managed, a staff reduction can damage the company's reputation. >> you don't want those you just laid off to go now splatter all over glass door or somewhere else how horrible you are. if it winds up in the media, you don't want the reputational damage of look how horrible these people were. >> experts say it's essential for leaders to be transparent about the reason for the layoffs. make the business case don't resort to corporate jargon by talking about market conditions explain why the layoff is necessary. other options that were considered and what will happen

to the employees let go. spell out the details of their departure. don't make them do the leg work to understand their severance, job payment resources, re-skilling and up skilling support or health insurance coverage that may be offered and be prepared for laid off employees to try to negotiate for more, including compensation for benefits they may have accrued but haven't received yet. don't be surprised if they request a letter or formal email from hr stating that they were laid off and not fired for cause or performance and finally experts say, it's important for business leaders and managers to recognize it's a very different time for the employees who stay. there are resources available for support if you have them and also be clear about changes that may need to be made in light of job cuts and do not overpromise, joe. >> this is interesting we're at record lows of unemployment and we're talking about this

i don't know whether hwe're earl or -- >> i think a lot of people are looking at what can we do to make sure that we have the essential workforce that we need and they're cutting costs for various reasons if they're laying out to make the business case for their plans for the future but the problem is, making sure the employees understand why you're doing this, making sure that they understand what is going to happen. >> this could be much more front and center six months from now, theoretically. hopefully not. >> hopefully not >> but there are lag effects to an interest rate cycle that we're in right now thank you, sharon. >> sure. when we come back, tech investor and palantir founder joe lonsdale is going to talk about twitter under elon musk. and later, amc entertainment chairman and ceo will join us to talk about the box office landscape and what to expect this holiday season. a programming note, tomorrow,

we'll be hearing from charlie munger on bitcoin and the markets. ckn y led it rat poisowa ba "squawk box" will be right back.

now to some developing stories surrounding the collapse of ftx the firm's new ceo says that the bankrupt crypto exchange is removing trading and withdrawals and moving digital assets to a

so-called cold wallet custodian. it comes as ftx investigates a hack unauthorized transactions began within hours of its chapter 11 bankruptcy protection in the united states. tfx's new ceo says the exchange is coordinating with law enforcement authorities and regulators about that breach another part of the story, reporters say that sam bankman-fried's research company used the token as collateral. it's been two weeks since elon musk took the helm at twitter. there's a lot of optimism from musk on sunday tweeting, twitter feels increasingly alive musk declined an offer by the former ceo of t-mobile to run his new social media platform who helmed t-mobile before stepping away in 2020. tweeted that musk could support

product and technology while he managed the day-to-day operations elon musk said no. joining us now is joe lonsdale palantir co-founder. good morning to you. let's go ftx first people aretalking about both o these stories. let's talk about where ftx stands and all of the -- by the way, money that went into ftx with what appears to be less than sufficient diligence. >> listen, i can't say i don't have a little bit of -- this place had no board it's obvious that the processes were wrong here. you guys were just talking with ari emanuel about anti-semitism. this is going to cause a lot more anti-semitism than anything his last name is bankman-fried i'm jewish by the way, as i say this. >> did ftx approach you for

money ever >> not directly. through lots of friends. joe, you have to get into this it's amazing we can hook you up. >> is your view that this is -- that crypto is, therefore, dead? is this -- that just ftx is dead how do you separate the two? >> i think i think web three isa very tough year because a lot of the money in web 3 was tied to ponzi schemes and not solving important processies that matter for the economy and this is going to hurt crypto but it is going to be a lot smaller. >> do you look at this and say bitcoin is at $16,000, do you think it's a real technology that has a long viable future or look at ethereum how do you handle those types of coins, sol iano and the like an

some of the other platforms. >> i think the ability to decentralize and when you have governments like china and iran and russia in the world, it is important for humanity and long-term we're going to have global as part of our financial system i think the vast majority and through ftx and ponzi schemes were massive overvalued. >> who would you say whether people would approach you that you want to get in this and what made you say no way. >> i have so many people saying we're working on crypto. how does this change health care, logistics,p how is it going to change what people are doing with fin tech and finance to add value as a process and there is very little about that. it is much more about the excitement and who else was in and it is just felt very much like 2000, like any other bubble there that sense. >> who do you think happens here on out

you look at binance sand do you say that looks like a stable company. is that the next domino to fall in coin base is a publicly traded company here in the united states. much more regulated. do you look at that and say that is safe? it is not safe >> do you look -- >> coin base is say well run company. and binance seems to be well regulated but i have no idea i think crypto is important over the next 10 or 20 years i think too much money has gone toward it more money will go toward solving real problems. that is what going to happen. and we switch topics to your friend elon musk. >> sure. >> what do you make of what is going on in the platform as he digs in here. >> i'm excited he's taking a lot of flack right now and that is what happens when you do something that is important. he's trying to change this in

realtime, he's literally actually trying things for once on twitter again twitter was the same thing, we had this joke around e-bay it is a goose that layed a golden egg and the nbas in the company would walk up to the goose and the other nba would tackle that person and don't touch the goose and sitting there adjusting the temperature as the company is slowingly dying. that is what twitter is doing. elon has a hundred ideas, some will break and some will work really well. >> let me ask you about the breaking things. this is a platform that is on broadway this is not an off broadway production that one day will get there. it is already there. there many ways. so if you break something in front of everybody on the stage it could be a problem. we saw that with the blue check mark situation last week where there was not just parody

accounts but people impersonating people and creating real live problems. what do you think about the way elon thinks about that and by the way, people have been concerned about the way he does this in the context of auto pilot with tesla and that actually deals with real lives and the like so i think this is a larger issue about how do you iterate on the fly. >> there is definitely itser ating on the fly and i think what elon sees is there is a giant gap where twitter is now and where it could be in terms of value it is had adding to the world and in terms of the engagement and what the platform could become and he's willing to take risks to get it there. >> he doesn't have any risk because he's the richest guy in the world. >> which is awesome because -- >> and would you like to quit twitter. but i'm not going to and no one is going to so no matter how many missteps

as has, as the richest guy in the world and knowing we'll all be there any way, as long as tesla holds up, i think he can't be worth half of what he's worth and do all of this. >> he used to be the internet guy and everyone is like the internet guy can't do cars and rockets. i think he could do internet he has a history and he's going to make some mistakes and i trust him to fix them quickly. he's mostly being ataked by the cambridge, marquee warren and the like. >> and he has a lot of huge things he's working, he's working 120 hours a week at this point. >> elon concerns me how hard he works. but he also hires the best people in the world. he has great people running his other companies. i think he's going to do a great job. >> i saw tweets, i don't

understand it. because the truth is democrats just control the senate. that guy runs a whole number of committees that -- with subpoena power no less. they have subpoena power and then he said well is he going to abuse his power i don't know if it is an abuse to use that power but i think at this point in the baull game, whether it's ftc saying we don't like the way this is going tor consumers, didn't he put himself in some kind of real risk. >> this is why it is so important that he wins because he's showing in america, in china you do that, you are definitely out without checks on a government power, you're out. he's proving to everyone that it is possible and that we have a free country and you could mock people that are attacking you and still win and he's saying we're free and not treating this as a communist dictators.

>> the truth is always in the background they won the house and senate. ministry of truth would -- >> i think every free man and woman who wants to stand up and push back on power has to be rooting for him right now. >> and what did you think if the ftc or some other agency looks at them. there is a consent decree. >> from 11 years ago and some nonsense thing i'm sure they're going to get in trouble and investigate him and i'm sure it will be a mess and i'm sure he has best people around him. >> we have to go thanks, joe. we can't be late that is what they just told me tomming up, tom friedman is joining us

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good morning, futures relatively calm as investors watch an unfolding geopolitical story. and meeting with president xi. and the hack of ftx from a platform as it goes bankrupt. and box office magic, the black panther scoring a historic opening weekend. we have details straight ahead the final hour of "squawk box"

begins right now ♪ good morning, and welcome back to "squawk box" here on cnbc live from the nasdaq market site in times square i'm joe kernan and becky quick and andrew ross sorkin after a week of averages, a little bit of give back. not as much as you mieght think after the 7% one day move last thursday in the nasdaq and it wasn't the only market effects by the softer or the cooler inflation numbers. you could see that even treasuries continue to be in a position where we didn't see for a while in terms of 4% on the ten-year and still be bee, 3.89 and the 2-year was a little higher.

>> first up, we are watching cryptocurrency prices. right now they are up slightly i believe. we're looking at roche holdings. we were checking out bitcoin and cryptocurrency was about 16,700 but it was a rough week last w week the new ceo of ftx is in the process of moving customer assets off line as a result of a hack the ceo john ray said ftx is working with law enforcement and making every effort to secure assets data firmel iptic puts it at around $477 million. ftx filed for bankruptcy on friday and founder sam bankman fried stepped down elon musk spacex buying an

ad package from twitter. internal records show the campaign will promote the star link internet service in spain and australia and a pack ang worth about $250,000 and a tweet, musk confirmed the buy, spacex bought a tiny ad package to test the advertising in australia and spain and did the same for facebook and instagram and google and we're watching roche, failing to meet the primary goal in phase three studies lilly and bio gen is up 5.3% andelel lilly about 1.90. >> mike santoli joined us now to tell us what it means and what he's watching this morning when did it peak >> greed is good you could only approximate these things, joe, but november 19th

of the last year was the nasdaq composite peak ten days before that was the cryptic peak in price. and that same month, we had jay powell say we're no longer assuming it is transitory, we're turning and the market had a lot of recognition that maybe the climate was changing and what happened since there is a huge downward evaluation in assets but it is different depending on where you lick. the mostlyp downward pressures are on the biggest nasdaq stocks take a look here we touched 4,000 on friday inter day. and of governor waller of fed saying market overreacted but the bottom markets com holding on to a 6% gain. look at the year in the nasdaq composite relative to the equal

weightedp s&p 500. this is showing the under-performance of the nasdaq to what you could consider a balance portfolio of all s&p 500 stocks down less than 10% from that point. and the overall market peaked about a month and a half after, january 3rd. but gold has had a big come back in the last couple of weeks. now a lot of things working in its favor. other cryptos coming under question this pretty radical vertical move, of course the dollar also seeming like it might have peaked and rolled over and coming in hard so it is not necessarily the most bullish looking chart but it is clearly gotten more traction and real yields and inflation adjusted yields have stopped going up so that has given a bit to gold as well, joe. >> it makes so much sense in hindsight, i guess, mike >> exactly. >> but if someone told you there would be a horrific global

pandemic for two years and the markets will do really well during the pandemic but whether the pandemic is over, they'll be a real reckoning with everything that happened and that i think has to do with central bankers and not just central banks but fiscally so much support that we printed and gave out in addition to the -- the pandemic stock has the great story associated with them at the time and all of the free money around at the time. and things that were 400 are now 80 i don't think you could have put it -- >> no doubt about it but you traded cushioning the economy from even a more cataclysmic association and to a lot of riskier assets and then a retracement back we're still up on a two-year basis on most of the major asset groups

so it is not as if we've cut into the pre-pandemic levels in any significant way except for some of the individual situations >> we'll see how long it takes to really work off all of the excesses because that might -- we're maybe right in the middle that still, mike. thanks. >> exactly losing weight is hard. >> tell me about it. >> president biden meeting with china's president xi today in indonesia. this is the first time they've met in person since biden took office tom friedman joins us this morning. it is good to see you. >> you too, becky, thanks. >> and let's talk about the press conference that the president is undertaking in about 23 minutes time. >> the u.s./china relationship is the most important geopolitical and geo economic relationship in the world today.

and obviously markets but average global citizens want to know that there is some boundaries on this relationship. that it is not going to deteriorate and hugely important for markets and for the stability of the world. >> and i would say, economically there is a lot riding on that but it almost pails in comparison to the other talk out there. cold war or a hot war. >> a relationship with china is so unusual that during a world war ii with nazi germany, they were economic and military peer. in the cold war the soviet union was a military peer. and they told us -- and vodka. this is an economic peer it is a geopolitical peer and we're completely intertwined so we never had this kind of relationship with another power

in the modern era. and so sorting out how you manage those three vectors is really difficult. >> i think it is really interesting, something that you wrote in a column this month where you talked about this new mindset that western multi-national companies have at this point anybody deciding to look where to place a factory, it is abc mentality, anywhere but china. and that is a big deal not just for the multi-nationals, but with china how are they feeling with that strain. >> my colleague in beijing, said that for every multi-national, in terms of building a next supply chain, it really anywhere but china. and that column was really saying if china were democracy today, one of the biggest questions that it would be asking itself is we lost america. we lost america.

i mean, this country had the biggest, freest, most powerbful that any company could imagine they had the u.s. business community. that business community was always the buffer in the relationship and always an advocate for stronger and deeper economic ties with china and stable geopolitical ones and in many ways, china lost that business community. too many companies felt that they weren't being treated fairly or weren't getting oust of the china market what they hoped for and they basically kind of drifted away and that is one of the biggest structural changes in the relationship. >> does xi jinping care? it is not a democracy. it is a complete totalitarian -- >> he has to care. because when the moto is among multi-nationals anywhere but china, that plays out in the long-term. fewer companies investing in china, fewer companies transferring technology to china. that is a huge challenge for xi

jinping. >> so lay out how much dicier this gets if we were already in a situation where we know it is a symbiotic relationship, we rely on each other in a lot of ways, if that fact years because it doesn't look like it is working, then what >> if you look back on the last 40, 50 years, the period of 1979 to 2019 was epic in u.s./china relations. you wanted to have a supply chain or factory in china and youwanted your kid to study at beijing university if you're chinese you want to buy a factory in ohio and send your kid to ohio state and listed on the nasdaq and over the 40 years we became one country two systems. and two things flowed from that level of integration one, some 800 million people

came out of object poverty and secondly there was no great power conflict yes, we had wars but there was no great power conflict like we're seeing today and that period is over and now we're in the transition to see what comes next. can the two peer rivals foster a relationship that at least preserves the benefits of that last 40 years but deals with the fact that we are peer rivals and we will compete and we don't share values the biggest structural changes for 30 of the 40 years, china sold us what i call shallow goods. goods we want on our shoulders, tennis shoes on our feet and we sold software and hardware and then one day about ten years ago, when we bought their shell stuff and they bought our deep stuff, our attitude with china was we don't care whether you're authoritarian or libertarian or vegetarian, but when they sold

us huawei 5g then the values started to stress the relationship. >> hey, come, one of the questions and we've talk ed about this on our broadcast in the past couple weeks, if there ever was an invasion of taiwan what do you think that american companies based in china would have to do we saw so many of them leave russia for example after the invasion of ukraine and i'm thinking of the starbucks and nike and apple of the world and how much is that a genuine risk that is properly priced or not priced in the market place. >> if china were paying attention to the dynamic and the ukraine war, what happened was, i'm just making this up but this is the dynamicthat happened, basically some employee on starbucks went on slack and posted a picture of a russian massacre or terrible damage to ukraine. disgusted with their colleagues on facebook and then they did not ask their ceo to get out of

russia, they told their ceo we're getting out of russia. there is a dynamic driven from the bottom up of activist employees saying we're not going to be party to helping this country and china would face that challenge in spades imagine what u.s. mcdonald's employees or starbucks employees would stop -- >> tom, the economics are so much more complicated there so far as it is a small piece of mcdonald's business to get out of russia. it is a big piece for apple and starbucks. where it changes the entire eck wigs -- the entire equation of what these companies are. >> i don't think it would stop the dynamic. i think you would see a lot of american consumers saying we're not going to buy goods from china if their destroying or raping or ravaging taiwan. i think this bottom up dynamics

of consumers and employees appreciating companies would be very much alive in that situation. >> it is a tight rope to walk. and i remember a couple of months ago you were very concerned about alienating china because you saw some cooperation in terms of the putin problem that -- i mean it is tough for us to see china as an ally and it is like we're almost picking the least bad option because you need to kind of overlook human rights in china because in the back of your mind you know how important it is that they stay as kind of a wall against -- i don't know -- what russia would do if china wasn't pushing back. the same way, we need to make any mistakes we make in -- and it is an appeasement of china that we need to be comfortable with rather than poke the bear that could really make things worse in russia. >> well, it is an important question

i wouldn't use the term appeasement, but i would say that i wouldn't go out of my way to provoke them for this reason. biden had a very biden agenda. jake sullivan and tony blake, had a tough set of conversations with beijing at start of the ukraine war and they said you better not be militarily aiding russia and the chinese making their own calculation, and we told them if you did, you could danger the e.u. and the united states for their own calculations decided not to do that that was a very important geopolitical advantage that china did not aid president putin. that is still the case i don't think it is appeasement. but it is very important that we preserve that which is why i oppose nancy pelosi trip to taiwan >> that is what it was >> that was the issue. it is why provoke them when they've done something for their own interest but it was very much in our interest. >> we need to take a shower sort

of regardless of who we're dealing with it. >> we need a lot of showers. >> welcome to u.s./saudi relations. >> tom, what are the warning things that we should be watching for president biden is going to be speaking in less than 15 minutes. we expect him to start taking questions from the press conference, i guess taiwan front and center, but what else? >> i mean, again, one of the new things in this relationship is that we live now in an age, very different from the nixon kissinger years, where everything that we use today in the digital world is a weapon and a tools. brad smith from microsoft wrote a book about that. i have a chinese made toaster, does they know i like it a little brown you know what i mean tiktok, are they tracking my behavior online. and this is the one deeper

problem everything is dual use everything we buy and sell to them so i think that the best we would hope for ougt of this meeting is to keep having meetings and keep talking. biden and xi would have a phone call once a month. hey, what you are doing there is really bothering me and helpful for me and if you do that and we'll do this. i don't think we'll solve the fundamental structural tensions in this relationship but at least if we could create a framework of steady dialogue and that is the big thing that markets would like to see. >> thank you, tom friedman. >> we have a lot more ahead. in minutes the ceo of amc about join us about this weekend's blockbuster "black panther" opening and we're standing by

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10 point and the s&p 500 down 6 and the nasdaq off about 44. >> and jeff bezos is planning to give away the majority of his wealth during his lifetime more than $120 million worth and a majority will support climate change and improve humanity socially and politically. >> coming up, black panther and we'll bring you the stats and speak with adam aron and you could get the best of "squawk box" on our favorite podcast and listen any time. we're coming right back.

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welcome back to "squawk box," black panther dominating the box office beating out top gun and the batman and thor love and thunder with $180 million in u.s. ticket sales but movie theaters are still struggling box office total for 2022 is half of what it was during this time in 2019 joining us right now is adam aron the ceo of amc. good morning to you. it is great to see you, adam >> good to be with you. >> and this film and also sort of the state of affairs when it comes to how the movie theater business is really going.

>> well it is nice to be with you. and we've been saying for sometime in 2022, all we needs was for hollywood to release the movies, the movie going public is ready and the theater system is ready and we're having a big weekend this week. amc is going to have more than 4.9 million people just in our theaters alone and this is in the beginning of what we think will be a big holiday season >> so how do you think about that relative -- and you've talked about how you need more films. what does it take to get this to be a profitable enterprise last quarter you burned through $179 million and i this there is real questions about what the long-term of this looks like >> well, i don't have questions about the long-term. i have questions about right now. because right now hollywood is shorting us the traditional number of released movies. but having a lot of conversations with senior studio

executives what they're telling us is that they're seeing how much money is being made in theaters go back to top gun maverick, a billion and six and black panther will be the second biggest movie of the year almost 5 million people in the theaters this weekend. we think hollywood is rushing to get more movies released and we're optimistic there will be considerable growth in '23 over '22 and in '24 over '23 and so we're confident about that future. >> you just raised money from the sale of $15 million of the preferred ape shares that had listed back in august. i want to read you something that web bush analysts alyssa reese wrote. you may think it is sin califo -- cynical. >> i know what she said but go ahead.

>> the announcement that they sold the ape shares at such a low per share price speak to their cash needs or perhaps more frivolous spending what do you think when you read that >> well it is kind of ridiculous when we launched the ape security in august of '22, like a couple of months ago, we said right back then that we were going to raise capital with it but we're going to do so with a slow and steady pace, judicially the market sets the price. we don't set the price we'll raise capital to whenever the price is but we're not going to flood the market by selling a ridiculous quality of shares. that is not the right way to do it remember, nobody is more practiced at this than amc we raised over $2.2 billion through an after market raised in '21

and we know what we're doing and we're doing it the right way and we're continuing to raise capital and that is a smart way to run the company. >> how are you going to continue to raise capital >> well we have the opportunity to raise capital every day in the markets through an after market that we raised but we're only doing it in small quantities, judicially, and smartly. but these are precious things, our preferred stock and we don't want to waste it or spook the markets by trading too much too fast and as i said, i don't think there has been a company around that has done this more than amc has over the past years. we do know what we're doing. >> adam, how do you think about acquisitions at the point? or any kind of more consolidation in the space >> well, pretty intriguing, i must say there is a big difference

between amc entertainment and just about every other company in our industry. look our industry has been struggling because hollywood has not released as many movies as it traditionally has but the difference between amc and almost every other company in our industry is that we raise so much money, in 2021, basically, that at the end of the third quarter, we were sitting on $900 million of liquidity. that puts us in a position to take advantage of what our competitors sold you may be award, andrew, because you said, the second largest player in our united states, regal, they filed for bankruptcy in september because they ran out of cash there are a lot of other movie theater circuits which are tight for crash. we're flush. $900 million liquidity i think there are subpoeome bars

out there to have and by adding attractive theaters at bargain basement tight lds for the movie to give us more movies in '23 and '24. >> and should we expect the acquisitions to be in the u.s. or abroad. how do you think about those and do you think there are specific theaters, do you have to buy entire chains >> well to your first two questions in the u.s. and abroad, yes, and yes and to your question about what we will actually wind up acquiring, we've already acquired a third of the civic circuit, we've acquired half of the bow tie circuit. mostly in california bow tie mostly in connecticut. there are going to be other theaters that are going to be available to us. we'll know which ones we're buying as those opportunities

realize. >> adam, we've had a lot of travel related companies on that say they've got like a period of demand because of people being shut in for two years. do you have that, do you think and is it dependent, we have emanuel on that said the content will continue. maybe do you have good product but do you think that there is that feeling in people, i really went can't wait to get out to get to an amc theater and if you were to raise prices do you think you could do that and demand is going to stay very, very strong? >> well, thanks for the question, joe. look we've already raised prices because we've already been confronting inflation. and when hollywood releases high quality movies, the demand has been enormous. look at top gun maverick, look at thor, look at minions and

jurassic world and now look at black panther: wakanda forever and that is a lot of people. and we're just starting all of the seasons that will include avatar 2, the original avatar 15 years ago was the biggest movie of all time and i've seen footage. it is spectacular. disney has "strange world" coming out one of the best directors around daman zel who did la la land is coming out with a movie at christmas called babylon we've got some big titles coming and i think our theaters will be packed. >> but adam, here is the truth of it. even if the theaters are packed, do you look and say we could be profitable if our theaters are packed because i'm looking last quarter, necessary losses were $226 million, compared to

$224 million a year ago. when do you reach profitability and what do you have to do to get more movies in the theater to get that and what does it look like and what is that time line like? >> so let me take you back in time, joe. for the -- i mean andrew for the five years prior to the pandemic, 2019 goes back, the basic side of our industry is called the domestic box office all theaters in u.s. and canada, all companies and all brands for five years in a row the domestic box office was between 11 and $12 million in 2020 when theaters were shut is dropped by more than 80% to $2 million last year 2021 it was -- it doubled $4.5 billion this year it is going up about 75%. over $7.5 billion. but $7.5 billion is way below 11 and our industry was sized for $11 billion box office so, no, if you look at last

quarter, and the movie titles in august and september were particularly sparse, we're not there yet. and i've said publicly on many occasions that i don't actually think we're going to be there until 2024 at the earlier. but i do think that 2023 is going to be at least 15 to 25% maybe even more than that bigger than 2022. so what we've said all along is we're on a path to recovery. but this recovery is going to be a healthy four or five-year recovery having said that, things are improving. things are getting better. strength could be seen in our numbers. on saturday night, not that one day means anything, but we had to hire single beverage and food sales and we've at 85% profit margin for beverage. so there is a lot of hopeful

signs and we're doing a lot of other things we're going to take our popcorn to market in 2023. we're going to launch a brand of credit card in the first quarter of 2023. just last week we announced the partnership with zoom to go chase the multi-billion dollars meetings market by linking up -- turning our auditoriums into meeting rooms and linking them up to zoom technology across the country. there is a lot of things going on at amc. we bought a gold and silver mine which has put out two press released flaft two months that they found more gold and silver at much higher grade so there is a lot of good things going on if you want to focus on the recovery of the movie theater industry and the movie theater business at amc in particular, we have been saying that 2024 is our year. >> i see where andrew is getting on all of these things i will say this as a compliment, adam, is it param us, it is an

experience and it is amazing. and maybe it is still a tough business and i don't know are you sure you really like the apes because we've had some experience with the apes and i don't know i'm not going to say you sleep with dogs and you get flees. but they're an interesting group. you sure you like them >> now, now, joe let me ask you first question, first. are theaters -- they are in very good condition amc provides a superior product. when hollywood releases attractive movies that people want to see, people are flocking to theaters in huge numbers. this is your pent up demand theory which is accurate with he know for a fact that we're releasing more movies in 2023 and more movies than in 2024 i'm pretty confident that our business will, in fact, build

and grow now, we need to do smart things to keep the business going to that point as i said before, we raised $2.2 billion of equity in 2021 our competitors didn't and we're in a strong competitive position and they're in trouble now as to your question about the apes i have the privilege of a company that is backed by most passionate shareholders -- >> that is one word for it yeah >> and between -- depending on the day, we have between 3 and 4 million of them. >> oh, my god. >> and i have -- they tweet me every day. thousands of them tweet me every day and i read what -- i read my twitter feeds and i tweet them back and i will tell you, i feel very lucky to have had these investors care about our company. because if they hadn't been

there, we won't be here today. if our company -- because of -- >> go ahead. i was going to say, you cut him off. >> i would let his finish. i apologize. >> i was going to say that our company was founded in 1920 and would you like for next century of amc to be as successful as the first century was. we're the biggest movie theater chain in the world and lived through, we survived the pandemic we had something to do with it >> they're not the ape, that is for sure. >> we want to thank you. i'll say this, we're rooting nor you and for movies and for hollywood. ant the fact of the matter is it is true, you kept this alive when a lot of people thought that you couldn't. there is a big award there but let's hope we could get to the other side thanks >> and if i get the quick last word we got to this point because of those apes that joe is so fond

of and andrew, we don't minimize the -- but the same skillful team that guided through the pandemic is guiding it forward. >> we wish you a lot of luck thank you. >> when we come back, the very latest on the collapse of crypto exchange ftx the fast moving developments over the weekend we'll bring you all of them right after a break. and a programming note don't miss charlie munger tomorrow on squ"squawk box" talg about the recent volatility in crypto ayst tuned you're watching "squawk box" and this is cnbc

fast moving, so fast in the development of crypto and ftx last week. boggles the mind if you blinked you missed it or some of it, kate and kate rooney joins us now from the latest. >> that is right we have some new reporting with our cnbc investigative team on how ftx unraveled. according to a source familiar

with company programs, they were using money from crypto ftx that flew under the radar of investors and auditors ftx and alameda kept the assets off the balance sheet and ftx ubd uestimated to cash out. part of the issue was the way the exchange accounted for margin trades. it allowed clients to borrow crypto from one another and it wasn't properly tracking the value of the cryptocurrencies and alameda was using a cryptocurrency created by the ftx exchange called ftt as collateral we spoke to current and former employees who said it was a smaller inner circle who knew about this and bankman fried did say a margin position took a huge hit as he put it. a lot of other news over the weekend. around ftx, moving quickly, some

u users appear to move money off the exchange through a back door some digital collectibles that traded for around $9 just a few weeksing with were selling for $10 million last week on ftx the pattern suggests desperate customers were looking to users in the bahamas since it was the only jurisdiction allowing customers to cash out. bahamas police now are investigating ftx and whether any criminal misconduct occurred ftx also suffering a suspected hack over the weekend. ftx new ceo and restructuring officer said it is in the process of moving customer assets offline as a result data from aliptic, putting the damage around $477 million joe, back to you. >> so we have someone trailing spf right now. they care whether he stays in the country or not, don't think?

or the bahamas -- >> we haven't confirmed his exact whereabouts but nassau is where he's been based and where he's been in the last few months other than d.c he spent a lot of time in washington there are various reports about him maybe going to argentina haven't confirmed that but there is a lot of intrigue into where he is in the world right now >> argentina is a popular spot in certain circles i don't get it. >> i thought it was dubai. >> they said dubai because there is no extradition there. >> i think there is extradition. >> there is extradition with bahamas. >> i think there is extradition in argentina too >> people have gone there before >> i'm not entirely clear on that >> you guys hear over the weekend, michael lewis has been apparently -- >> right he's been with them for the last year. >> last six months or so and is now shopping around his book and a potential film. >> and a potential film for it

but kind amazing that he's been there to watch it and see it happen. >> hey, kate, what do you make of the -- there is a lot of folks online right now talking about just how sam was such a prolific donor to the democratic party. it sounds like he gave some money to the republican party, and how much of that may have beared or not on regulation. there is accusations about gary gensler. what is your take on it? >> he had a ton of influence in washington and there was pushback within the industry saying he was lobbying on behalf of ftx and his own interest. that is where this whole binance drama started if you remember last week, the ceo of binance had said, we're dumping our ftt tokens and sparked this fight with sam bankman fried because he thought that sam bankman fried was trying to get things

done on his own behalf versus what was better for the rest of the industry so he run up against the crypto enthusiast and there was fighting about what he was doing behind closed doors in washington, was he lobbying for his own interest a lot of talk about his relationship with gary gensler and i was in d.c. a few weeks ago and he was seen as the face of regulation for cryptocurrencio and talk about bailing out over companies the damage i'm told in d.c. will be knelfelt for months and year. there will be crypto regulation. >> didn't he want the cftc to regulate the industry versus the ftc. >> there is a bill on the docket to give the cftc a little more

jurisdiction that is more popular versus the s.e.c. and people want cftc will -- >> that is why i never understand the accusations against gary gensler. >> he was a real poster chield for the esg capital movement and saying all of the right things i think, what was gisele, she was like lead director for environmental and social justice or some ridiculous title that giselle got. >> they had a director but not a cfo. >> yeah. they had all of that all right. thanks that was -- that wasn't a question, kate >> rhetorical. >> a comment >> we're going to talk about another cryptoism exchange. over the weekend, crypto.com publishing the cold wallet

addresses and latest balances then it came to light that the exc exchange made an error transferring ether, and they sent it to their account on another exchange called gate the mistake circulating on twitter sending their cryptocurrency circling on twitr sending their cryptocurrency down and customer withdrawals from the exchange. a spokesperson saying, the eth transfers were made over three weeks ago. crypto.com proceeded to withdraw the funds back to its cold wallets over the following days. tomorrow, we're going to be speaking with the company ceo about the error and the fallout across the industry from ftx's collapse and the good news, i think, is they don't have a prop desk, and i don't think that they are in the leverage business in the same way, but we will discuss all of this tomorrow >> do we have an announcer on that hopefully we'll have a pronouncer on that >> you can always try. coming up, j cmes rsimrar'fit

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all right, let's get down to the new york stock exchange. jim cramer joins us right now. jim, we're still continuing to watch this fallout from everything that's happened with sam bankman-fried, still trying to figure out what the ramifications are going to be, and also waiting to hear from president biden on this conversation with president xi what are you thinking about each of those topics this morning

>> well, i think this sam bankman-fried, i'm actually thinking about the way that the fed may actually view this thing. i know that that sounds like, well, wait a second, how could it possibly impact but if you blow up silicon valley and you blow up crypto, binance will be discreet, but i think there's the possibility that you're going to see the epicenter of this slowdown/recession be in fintech and be in actual tech. and i don't know whether it's big enough, but i think it could matter it could matter a lot. but the president -- >> definitely the deflating of these assets, which is something the fed is certainly wanted. >> if you're -- if you look on that board, and you're jay powell, you would feel great if those all went to zero remember, he wants our portfolios to give us less buying power he wants us to have less money to spend so that the other areas in the consumer price index go down and i think that can actually happen i think there's a lot of people who will say, ouch, there's a

terrible way to look at it, jim. >> i see your point. >> the epicenter is not in boeing so i think that we have to take a short-term view that crypto collapse or anything like that is something that would really help -- really, really help jay powell >> jim, they're trying to wrap me on quick thought on china and what to expect from president biden. >> i don't know. he's crushed them all the military semis i don't know how you come back from that. i don't think he does. >> the semiconductors? >> yeah. i think the semi stuff is so much more important than what trump did. i think that you have to absolutely walk that back if you're going to have president xi be your buddy, and i don't see that happening >> right esg this will be an interestin prs conference jim, we will see you in just a few minutes. "squawk box" will be right back.

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we are awaiting news conference from president biden after meeting with china's president xi in bali, indonesia. kayla tausche joins us with the latest >> this is the most consequential meeting of president biden's term so far. it lasted nearly three hours in bali just before the bulk of the g20 summit was set to get under way. the readout from the white house that was released just a few moments ago says that a lot of the topics that we expected to be discussed were, in fact, discussed, that the two countries agreed that nuclear war should not be fought they condemned any possible use

of nuclear weapons in ukraine by russia, and that they agreed that no nuclear war could be won. it's interesting to note that in the lead-up to this meeting in recent months as the planning got under way, the expectation, both in washington and beijing, would be that president xi would have consolidated power domestically while perhaps president biden would have lost some domestically in the midterms that is not the case, so president biden arrived in this meeting not flat-footed, having, in recent weeks, escalated the economic ante with china and some headlines that just came out from chinese state media say that president xi has condemned a trade war or a technology war, saying that those run counter to the principles of a market economy and undermine international trade rules. guys, back to you. >> it's in bali. >> okay. kayla tausche in washington this morning for us >> we're just happy for the common ground. at least we can agree that we don't want to fight a nuclear war. >> we agree there should be no nuclear war. >> we have things in common. >> that's awesome.

>> take a quick look at the markets before we head off to kwauk "squawk on the street. markets are down a bit dow off just marginally. the s&p 500, off about 13 points join us tomorrow "squawk on the street" begins right now. ♪ good mod monday morning, welcome to "squawk on the street." coming off the best week for the s&p since june and buckling up for another round of earnings from retailers, inflation data, house leadership elections and more than a dozen fed speakers our road map begins with the president preparing to deliver some remarks after meeting face-to-face with chinese president xi for the first time since taking office. we'll take you there live. >> plus, crypto chaos, the ftx bankruptcy investigations and so many other ripple effect