not "dahmer 2." i can't do that. i know too much already. thank you. good to have you on. good thoughts. andrew, you around tomorrow? am i going to see you? >> i am. what a morning what a morning >> pretty good morning pretty good. pretty, pretty, pretty good. make sure you join us tomorrow, "squawk on the street," coming up next. ♪ david, if we were to compare business to sports and espn, we would say that it is time to find another coach yes, that means it's time for ceo bob chapek -- bob paycheck there it is. bob chapek to go it's time for chapek to go >> you really believe that >> no, i wrote this in a complete -- in a moment of fiction. okay, he's an nfl coach, okay? it's a disaster. we keep him because, what? it's a rebuilding year >> listen, you know, when i --

♪ >> disney making a big switch, bob chapek is out as ceo bob eiger, of course, is back on the top job. good monday morning, welcome to "squawk on the street," i'm david faber along with jim cramer we're live from the new york stock exchange carl has this morning off. let's give you a look at futures. shortened week no trading thursday. there it is. i guess i -- i don't know what i would call that, jim, a mixed open nothing. i don't know >> mixed open. yeah mixed open but that's all related to china, which is enough already. do you think china wants to be in a depression? do you think they want a recession, china she? >> we got talk about that. you did market response this morning, big news out of disney, 10:00 last night, bob eiger is back as ceo, this after what i

have reported on, reising tensions amongst top management at the company did lead the board to oust his successor, bob chapek, a lot of different things behind this decision, been able to do some reporting in the last not even 12 hours or so jim, you know, you, of course, after the last reported quarter, were a vocal critic of mr. chapek, saying, as our viewers just heard, that he should be replaced obviously, the board chose to do that my understanding is there were concerns prior to the latest earnings report, but they really did grow after a significant loss related to direct-to-consumer, and while he still said the company would be profitable in that business by fiscal year '24, he gave some more caveats that's when the board really, after sort of considering things, said, we may have to make a change sooner now, that said, my reporting is that eiger was not contacted until friday night

>> exactly right >> friday night, and they didn't sign it up until 8:00 yesterday, and they didn't really look at any other candidates seriously, perhaps because there simply weren't any. >> that's absolutely right eiger -- i think some of our viewers think that eiger asked for it that's not true. i do think it was that quarter, because that quarter and the narrative of that quarter was rogue. if you go back and read the conference call, the conference call was this -- it was a great time now, the board itself doesn't like that level of nonaccountable you don't go on in what's obviously going to be one of the worst quarters reported and basically say that things are fine we needed a wartime concigliari and they gave us someone from the hague. sorry, that's the justice department i don't think there was a -- if you go back over that last quarter, it was horrible it was horrible. >> you know, one horrible

quarter oftentimes, you're willing to give a ceo a little more time. and i did speak to some people close to the board who thought, in fact, this board would do that what do you think galvanized them now you know, you and i both have been hearing about tensions, i described them at the top, dysfunction is what another person close to the board -- what are you hearing sort of put the board over the top perhaps other things they were hearing from people at the company >> yes, people at the company, too many departures. the rest of the company not being run very well. theme parks being good no real rapport with any of the people that you need to use the tent poles, the great tent poles that they have kind of over his head. remember, he was over his head in a lot of things now, look, i do want to talk about shareholders are angry i believe that dan loeb -- i

can't imagine mike peis happy >> he was supportive of chapek peltz has not been part of the dialogue he's got a significant position now and is will potentially be -- and chose to go on the record with the "journal" saying they don't think eiger should have come back >> that's an odd view, because when i spoke to nelson, he supports eiger, and would love to have a cup of coffee with eiger. makes sense. shouldn't they have a cup of coffee with eiger? they were always friends i don't want to make this story be about nelson, but i think -- >> it's not about nelson >> but i think he belongs on the board. big shareholder. >> no. >> no? >> that's not -- the story i want to talk to you about is what now you have been saying chapek deserved to get ousted he did get ousted. bob eiger is back. it's stunning. it's not something that many expected

mr. eiger, when we have spoken in the past, had indicated he was very happy with retirement, so to speak, with doing a lot of different things >> do we have your tape? i thought your tape was fantastic. >> i know we have a number of different things we have my -- we did an exit interview less than a year ago, and you know, here's what he had to say, sort of, about his future and why then he was happy to be leaving. >> you don't regret having left when you did and stepped down as ceo when you did >> no. i think that, look, no one knew that the pandemic was going to explode the way it did i think the timing was unfortunate. but throwing a new ceo into that circumstance was difficult but no, no regrets about having made that decision it was time. i didn't want people to say -- be going around saying, when the heck is he going to leave, you know

isn't it time? i would rather have them say, gee, did he have to leave when he waslying leaving? >> that was him stepping down as chairman less than a year ago. he had stepped down as ceo in february of 2020, but really did kind of bring himself back to a certain extent during the pandemic and day-to-day management that did create tension between chapek and iger, which they never got past >> i thought it was fair to give chapek some time i can't believe bob iger necessarily liked my view. geez i thought that chapek had run the theme parks very well and i will wouldn't have been behind chapek if bob iger wasn't. i mean, i heard these different -- you addressed it. >> you're right. bob iger was, along with the board, they made the decision about chapek he had run two businesses successfully at the company. the other candidates, perhaps, tom stags or kevin mayer were not seen quite as being equal to that because he had executed

quite well at two different businesses so he was, in part, iger's guy >> how do you deal with the fact -- look, let's say you like iger's -- i thought his book was amazing. it was the great est ride so then he puts chapek in, and i said, if he thinks chapek's good, then i think chapek's good and i could not believe how poorly run the company got but you know, i wasn't going to, like, say, look, let's just give him the hook until that last quarter was so horrible. it was the nfl coach who lost too many games and that's okay. this is the nfl. >> but, jim, are you surprised the stock is going to be up 10%? >> not at all. i said that if i got the job, it would be up 20 points. that was a moment of arrogance >> you heard michael nathanson on "squawk box." direct-to-consumer lost -- is losing over a billion dollars -- what was it? over a billion dollars in the quarter. >> well, he can reset it

or are you saying -- >> the pivot to direct consumer was bob iger's decision, like every other ceo of major media entertainment that had linear networks, watching that go away and saying, hey, look at that multiple netflix gets. we've got to move aggressively into that. >> it was a different era. >> it was. the new era is, we don't care about how many subscribers you have we want to see profitability >> this is the pivot that everybody has to do. >> do you think bob iger is going to have more success pivoting them to profitability >> yes, absolutely i think a lot of this may be related to having hollywood be better i mean, one of the great pieces -- i don't know if you had a chance to read jim stohr's piece. >> i did, on the failure of the at&t purchase of time warner >> you and i both respect jeff a great deal, and he had a phenomenal relationship with everybody, and so did hbo. so, then, stankey comes in, and he delivers a memo

can i just say that that was a laugh out loud memo? i'm not a stankey fan at all, given the fact that he's on the wall of shame, impact to double down here. but look, i'm not saying stankey needs to go, because stankey's got that thing sewed up. one of the amazing things they've done wrong is i probably know more people in hollywood than stankey i can green light more deals than stankey >> so, your point is to get back to it, that chapek was similar in that way with having the relationships and that iger's presence there -- >> less arrogant >> his ability to be a communicator with, i mean, amongst the finest communicators out there will -- and a relationship builder, will allow him to, what >> iger's -- to make direct-to-consumer more profitable >> iger can say, look, i created a different time when everybody wanted netflix's multiple. i'm about trying to get the

dividend back. i want to go to katz on the board and say, what would you do you and i both respect her i think you have to use the board a little better. but if i were bob iger, and i would have bob iger have a cup of coffee with pelts there's nothing wrong with that. but i think the important thing here is that he can reset it in the same way, can we talk about howard schultz howard schultz picks kevin johnson. kevin johnson misses the fact that bigger percentage of people wanted cold brew than hot. didn't have the right technology so, schultz comes back, brings in technologists that can make it so they have eight cold brew done at once next inning you know, schultz is done >> by the way, that is not -- it's interesting to make that comparison, because you know, a lot of what iger's going to do right now, my understanding is he's going to the stabilize things morale is not great, so he's

going to create what he hopes would be more optimism at the company, but he's going to have to make some tough decisions about direct-to-consumer, about costs, about espn, the future of sports, a lot of things. and he's a big fan of espn, and we'll play some sound from our interview a year ago >> he's a big fan of live sports >> yeah. but all that being said, he's also going to have to help the board find his successor and do it within two years and help train that person and hopefully it's going to go better than the last time. >> i think you would have thought that howard schultz would pick a terrific person who made it so things are going to work out better. i think that iger is loved that does matter in hollywood. it's a little ethereal, there's no earnings per share. >> it matters especially i hollywood. but that said, i sat down with chapek, it was -- when was it? september 15th >> okay. >> a few months ago. we were talking about direct-to-consumer in particular and also cutting costs take a listen to what he had to say at that point. >> disney was one of the companies that was probably the

hardest-hit by the pandemic, and restarting the business was the focal point, but now that the business is restarted and restarted so strongly, with the strength not only of streaming but of parks as well, we are now focused on the maintenance of the business, the running of our business, and we're asking ourselves a lot of hard questions coming out of the pandemic, as, what does this s zb sg&a world have to look like in the modern rera? christine and i are arms locked on making big progress against that >> and christine, the cfo, who i think is fantastic, i think she can work very well with iger she went along like i did, chapek's in. but christine was a fantastic cfo and then watched the balance sheet be obliterated i don't think that was her fault. >> right >> i think that, look, they need some steady hands right now. >> my sense is there was -- they were not on the locked arm in arm, at least not recently >> that's a good call.

yeah i think that there was a blow-up there in the end i don't think justice will let anything happen here, so, all the creative things are off the table. i mean, when canada decided that random house was not going to be able to merge with s & s -- when two publishers aren't allowed to combine, how can you do anything >> it's a good question and it's unclear when it comes to the rationalization, direct-to-consumer, and the need for deals, whether those will be allowed to occur from an antitrust perspective. >> what happens to hulu? i know we got to go. but there's an asset worth something. >> they're going to have to buy it and that's going to add to the debt >> they don't have the balance sheet. >> that's going to make them more levered >> that's the last thing they need >> that's another thing on iger's list now. >> there's no shortage of that man's ability to do it >> there you go. thank you. we're going to have a lot --

>> i had some good things to say about green bay, we they screwed up this weekend >> we'll have more on the ceo shake-up we get started with trading, 15 minutes from now you can see, perhaps, a slhtily low lower open

we showed you futures a moment ago, looks like a lower open we're starting the holiday-shortened week, of course oil is extending losses after

wti crude fell by 10% just last week, and of course, we do have a lot of concerns about curbs in china and the spread of covid again in that country hitting demand i mean, beijing, lot of major metropolitan areas, and there are so many, and they're starting to shut down. >> yeah, i think they now see three deaths we have people die every day >> we have like 300 a day. >> i don't trust their data. it's almost inconceivable that the elderly, who are barely vaccinated and vaccinated with a vaccine that lasts only 43%, so this is self-inflicted, and oil is part of that. we still haven't seen the president is n the spr. he's developing a good trade he started at 90 and covered 72. but i want to buy oil here, and i want to buy oil because i think that in the end, if china decides, you know what

we had to change our policy, we figured out a reverse moderna, then you're going to be paying 100. right now, everything's going the fed's way, by the way. we don't talk about that gas is now elow. >> yep yep. >> used cars, below. >> now, last week, we didn't have -- we had significant rally in a lot of china-related stocks alibaba reported earnings as well the indexes we look to had a very good move, in part because there have been a series of things out of china that indicated they will loosen over time, the covid restrictions, and yet, of course, people wake up this morning to see the first related deaths since the shanghai lockdown, as you point out, and even though they have numbers that are far below our own, much more stringent i mean, you've seen the gdp numbers out of that country, what it's meant. >> we have a better gdp than they do. i think that they have a chance to be able to reignite their economy, but they have to swallow pride, and that seems to be something that president xi

does not want to do. but eventually, let's say there are more apples. people trying to maybe second source to here the companies that we -- that i deal with that do a lot of business in china are just being crushed. i mean, just -- look at nvidia nvidia's quarter was not great and one of the reasons why it wasn't great was because china's just been -- even china away from the high end that our government cut is doing poorly how long can nike do poorly? how long can disney do poorly? thin i think the answer is that president xi has to pivot. i know it will be hard for him to do, but he has to there are many ways for him to pivot. he can say, we have a better vaccine than the united states >> they don't, and as you point out, it's people over 80 years of age who are the real concern. >> it should be in our country how many people died in our

country that shouldn't have died 400,000? >> many hundreds of thousands, potentially. let's get a "mad dash" right after the break here of course, also, counting down to an openinbe tt'g llhas less than ten minutes away. lot more "squawk on the street" straight ahead what if we wanted to electrify all of this... 100% carbon free... is it possible? ♪♪ aes has been leading energy transitions for decades... and is partnering with the worlds leading companies to decarbonize industries... cities, and nations. even the internet.

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all right, seven minutes before we get started with trading at the new york stock exchange let's talk about the home, as in the home front, the home, rh, williams sonoma. >> people will not stop talking about how bad everything is that goes into a home because of how the fed has made it so that people won't necessarily be as wealthy. remember, you're up 45% just in terms of how much mortgage money you have to put up

$100,000 -- if a person makes $100,000 so barclay's come out and says, wallet creep contagion, downgrading williams sonoma and rh this is maybe the fifth of these, and take a look at the home builders. they're not going down that much now, whirlpool has had a tough time, but i just think that this whole idea that housing is falling apart makes me think that you're underestimating laura albert at williams sonoma. the first guy who saw the problem is gary freedman are these stocks bottoming i don't want to keep selling them i think at a certain point, you have to be ahead of the next cycle. there's a lot of things going in the favor of the fed now, the fed, they'll be tough that's all they know to do is be tough. but they're winning on so many different fronts what's the point of continuing to pressure ben and say anything housing is bad it's just wrong to me. now, i think that at a certain

po point -- that's a bad chart, i know >> they're both not looking particularly good, kbut your point is, you'd rather see the research that says, i see the next cycle coming, it's not that far away >> what a great time to say, you know what? i saw the company when it was at 200, but what a great time to sell and right here, you say, okay, i don't know if it's still a sale i don't think that this is the time to downgrade because then what happens is that if you do get two more rate hikes, then you're going to want to buy and then done. williams sonoma, laura albert do a good job >> all right we're going to have a lot more on the fed, on the markets in general. >> and disney. >> and disney. no doubt about that. bunch of other stocks we're going to talk ouas wabt ell. opening bell is a few minutes away stay with us

>> announcer: the opening bell is brought to you by nuveen, a leader in income, alternatives, and responsible investing. there's a lot of things that i did not anticipate, but i will tell you that the energy, the enthusiasm, for the future in this company as we turn 100, the enthusiasm of our employees, our cast members, our content creators, leads me to believe that the next hundred years is

going to be every bit as great if not greater than the first 100. >> that was from an interview i conducted with bob chapek only back in september. he was expressing optimism about disney's future and two months later, he would no longer be running the company. i'm sure if i told him that at the time, he would have been surprised. >> i think peltz should be on the board. >> why do you keep coming back to him he's not central to this story at all >> i'm looking for change agents to come in >> a guy named bob iger just came in. they just changed the ceo. >> i just wanted accountability. all right. >> stunning that he's returning. now, that said, he's going executing on a lot of the decisions that he did make three-plus years ago, four years ago. >> he can do it. chapek could chapek, by the way, can we just be clear, had no plan. he had no plan >> no plan you don't believe he had a plan? >> no, i wouldn't have called for his firing if he had a plan.

i would have said, let his plan play out i met with him several times i thought he had a plan. i didn't know. and david, that last quarter, that was a defeat. that was a defeat. >> you called for it, and it happened there's the opening bell and you can take a look at the realtime exchange, back at our headquarters >> this is all again on china. i'm getting tired. we are in a bullish moment >> >> s&p celebrating its 50th year, and braze celebrating its first listing anniversary. you were saying about china? china's a pretty important part of the global economy. >> china can flick a switch. russia, no russia, unfortunately, is food and wages. you know michael >> i do, former ceo of comcast

>> heavyweight he's on the board at exxonmobil. >> we're talking about valero? >> can you just hear me out? >> yes >> i'm looking for signs that there are people who want to come back to work. >> okay. >> last year, they had no one. they were desperate to find people to work at the lanes. now it's easy as pie i'm hearing this, at restaurants, that people have returned now, if the fed were to just wait a little more than, i think they would find that people are coming in from the sidelines that child tax credit was a very big tax credit but the fed wants to press the bet. i think people are coming back to work. there's a big immigration period >> your point about coming back to work, labor has never -- it's not as though labor has sold off at all >> i think -- >> isn't that what you've said

we need? that could happen. >> because if we saw two quarters -- >> because we're -- wait >> no, james gorman came on the show and we -- >> from morgan stanley, yeah >> we said, if you get 4% unemployment, the drum beat is going to end for rapid rate hikes, but we don't have that. i am trying to get ahead of what might be the first weaker number however, obviously, the federal stimulus in the infrastructure world is going to keep it so that world is strong but the world of california and the world of the internet, david, the layoffs are just beginning. i read about amazon, and i just think, are you kidding me? you're going to fire 10,000 people and that's all? you think the metaverse is only going to fire that percent when is alphabet going to fire these -- retract the hires they made apple, i don't know. apple's doing quite well

when i read about the pivot, companies who have decided like palo alto, listen, we got to stop no one's caring anymore about the ebitda they want actual earnings. >> right >> and david, from the very beginning, you tried to say -- you were so early on this -- that stock-based compensation was going to be the undoing of these companies. they've all come down. >> they've all come down sharply. i mean, the good news for them is they're not looking to attract new employees anymore. because to do so, in this environment, you'd obviously need to actually offer them more cash, and as we know, you can't adjust ebitda for paying people cash >> stock-based compensation is one of the first place i look at i was looking at mongodb, and there's downgrade today.

>> kevin ryan. >> i like him. he works hard. good company but here, morgan stanley taking a pause as near-term fundamentals lookmore uncertain, downgrade to ew they haven't made the pivot. they're still sticking by the growth at all costs. the growth at all costs has not worked >> look at that. that's just one of countless technology companies, cloud-related, that are down 70-plus percent >> these are the ones that gaffed people. >> you know, you look at those charts, jim, and you always ask yourself, when is it -- when does it -- when do we start to see a turn when is it enough? >> i think that it's enough when you recognize that you can't be the old way. >> so, you know, did meta realize that >> oh my god, yes. >> no longer down 75%. >> meta has made a commitment -- meta has made a serious commitment to getting their expenses in line with the revenues, and that's how you got

that stock where it is, coming back at the same time, i'm going to mention a company that is not irrelevant but matters a great deal, which is jacobs. >> jacobs engineering. >> an engineering company, which shows you once again that the fed -- the government -- it's an infrastructure play. the government poured so much money into companies that are building roads and bridges that you're not going to have a -- deere reports wednesday. deere is going to have a fine quarter. there's part of the economy that really has to stop it, and that's -- ongodb, if they, today, said, you know what we're going run this company and make money, then the analysts who were all trying to jump ship will come back, and you can say, well, it's too late to jump ship anyway, but not everybody just downgraded mongodb, and again, that's a template. i think that zuckerberg recognized that the number of people -- he had doubled the number of people since the pandemic began a lot of these companies

misjudged the pandemic entirely. and they're paying the price it blips up, because they say, we're going to get things under control, but the companies that are really doing well are the companies that did well in retail last week >> yeah. >> i mean, walmart i got to hand it to them i misjudged them entirely. >> we're coming out of an important week we talked about going into it, obv of course, and we ended up getting a lot more positive reports. >> exactly >> target, now an outlier, not necessarily reflective, as we thought it might be. >> and by the way, home depot -- >> black friday is this friday >> i know. and by the way, home depot was not bad, okay? let's insist that. but lowe's was great but one of the reasons why lowe's was great, you know, they had bought a canadian business before marv ellison came in and they got rid of it

ellison's team came in and changed if agenda. now, david, the companies that are off price, burlington, tjx, on fire. you may say, wait a second, that bodes poorly for the consumer. i say it bodes well for the fed, which is desperately trying to get -- >> and even walmart, as i've said many times, pointed out that it had higher-income families that were shopping there, particularly in grocery, and that they did see people going to, you know, store brands, to in-house brands as well walmart has had a very nice run. >> walmart's had a great run because they had a great quarter. they had a great, great quarter. >> few things i still want to get to >> absolutely. i'm sorry. >> disney shares -- >> did you go back to disney >> well, disney is the outperformer this morning. >> you wrecked our whole weekend. >> it's up 9%, 8.78%, but none of the challenges that were there yesterday have disappeared. >> no, but you can --

>> so, bob iger is going to have to navigate a very difficult streaming world, so to speak, in the sense of where investors do expect a level of profitability. the company has promised fiscal year 24 would be that year of profitability, but we still don't know the ultimate profitability. >> we're not just going to run for willy-nilly growth >> they already have raised price. they do have the add tier that's just begun >> it could be very good they've got the theme parks. how about if he says -- you're going to make fun of me and i don't care, because i was right last week. how about saying that the department that chapek ran and knew so well was the one that should have expanded in the same way the network we we work for, comcast, they should be expanding theme parks. disney has a lot of land >> you had said that he should be replaced. the board has done that.

and you think they're going to build the theme park you're extolling the virtues of in new mexico >> i found the land. >> have you bought the land? >> no. my wife keeps buying -- i got enough problems enough land. but there are 300,000 acres available on the road between -- well, you know, look, i presented my view. it was rejected soundly. >> no, listen, there have been a lot of times when i have made fun of you and you ended up being right. >> you're my friend, david >> by the way, they did sign chapek to a three-year deal in june, just to show how quickly things can change. >> dave tepper had a guy he had to fire from the panthers. >> and chapek's getting paid on that, one would expect, because he wasn't fired for cause. he was just, see you later we need to make a change and we've told you that happened very quickly again, just to refresh people, bob iger heard from them on friday, is what i understand, and it was sunday evening they signed a deal to bring him back. the board, not really, again,

i'm told by people familiar with its deliberations, considering any other candidates seriously they had identified, jim, a number of people, i'm told, at the company, but they wouldn't want to put them into this kind of a situation >> that could be a howard schultz situation again. howard schultz comes back. >> people that can be brought along over the next year or two and then you do find a replacement that you hope goes better than the last one >> did you not think there was tremendous turmoil under chapek? >> you and i hear things anecdotally, yes, i've heard there was pushback you wonder about the creatives there's no doubt that bob iger is a great communicator, a builder of relationships he did that with steve jobs. he did it -- >> jobs notoriously -- >> -- with george lucas. through the years. rupert murdoch, think about all the companies that he was able to buy in part because of solidifying relationships with the ceos of those companies. and he knows premium content

>> he knows premium content, and remember, he got rid of everything other than tent poles. they had decent numbers for the second week, but david, i just think that you have a guy who comes in, who's well liked, and then the people who are fleeing or don't like it say, you know what, our man is back, he does a -- >> that's important. >> morale does matter. >> morale matters a lot. >> the morale at time warner after stankey got in, that may have been -- >> it particularly matters in these kind of creative businesses >> well, creative people don't -- >> let me ask you about another company that is not a public company any longer but has implications for others and is obviously an important story and that's twitter >> well, the president -- former president is back. >> former president has been allowed to be back i don't know if he's actually tweeted. >> i tried it. couldn't find him. >> what's your sense as to when may be going on at twitter

let's not forget, there's $13 billion of debt at this company. >> there's gap >> elon musk's company that 13 bi$13 billion or $12.5 billion, to be fair. i'm told you can bid about 60 cents on the dollar for it right now. would you buy it if you could get 60 cents on the dollar >> i don't like to count out -- i would never count out anything that elon musk does. >> hard to do that >> i don't know. the growth of the business was very poor. almost no growth >> but they have almost no employees now. >> they have no -- >> he's gotten rid of between -- people who have left because they didn't want to work whatever the words were, super hard >> you know, i --

>> i've never seen you speechless >> i really struggle over the idea that saying something that is never about musk has made you look foolish over the years, and there were so many things that i know i proposed dealing with twitter where i felt that twitter had so much opportunity that i'm not going to count him out. he can bring in his people i do think if you continue to have twitter be just twitter, no it's got to become something much more. >> it's hard to dismiss elon musk, given the incredible success he's had, almost unparalleled success he's had. that said, it's not making electric cars or sending rocket ships up it's a whole different set of skills >> but he is bringing in good people >> those are a lot hadar, it would seem to me >> david, the question is, do they have the money to pay the banks? >> that is the key question. >> can he just keep selling stock? >> well, that gets us back to the marketplace, which is tesla. >> he's not on margin.

>> i don't know if we have it, from the time he closed the twitter deal, i would -- tesla shares have been down a lot. look at that we're less than a month out but you can see the performance of the stock, jim, and that's not necessarily in keeping with its peer group >> you're bank >> people selling tesla in part because of the problems he's facing at twitter. >> absolutely. because i think that if you're one -- if you look at that 60-cent bid, 60-cent offer -- today? they're not selling, by the way, the banks. >> it could be 50 bid for all i know you don't want to go in your books with that. >> right now, it's money good still for them as long as he's paying interest. >> it is money good. can we wait one true plan? how about a plan an action plan look, if we ever -- have we ever said that this guy -- this guy is capable of having a big family >> he has ten children >> i didn't want to articulate

exactly. >> that's the right number i'm correct on that. it could have changed recently >> the auto business has been running better than everybody's auto business. everybody's. i think his rockets are number one. so, why can't he spend -- >> number one rockets. >> how about he spend eight weeks -- can you believe this? pepsi keeps going up people continue to think we're going to have a recession. let's give him two months. i bet he comes up and says, i found direct messaging or, how about this, i'm creating a mall on twitter or i've been speaking with mark zuckerberg and we're in the metaverse together and what we're going to do is be able to buy things and buy them from twitter and it's a pretty simple process and in other words, this is a man who sees things that we don't see and finds thing that we don't find, and i'm not going togo against someone who's that brilliant. i'm just not >> plenty of people would agree with you on that let's talk about another --

>> once again, the salesforces, david, we have to talk about them they're relentless in their decline. relentless as if people have decided that enterprise software, which was thehottest area in venture capital in the last three years, that enterprise software is no longer investable. >> we knew for a period of time the multiples did seem high, but jim, it is hard to imagine in some ways that they were that high >> the hottest area. >> they were that high cut in half. >> that's the epicenter of where -- >> earnings have not been cut in half >> it doesn't matter banks are good consumer products, good. oil will be good as soon as china comes to its senses. but david, every single venture capital firm i know, you could present them an idea, say, listen, i've got this idea that would prevent people from being substance abusers. gambling abusers they would say, yeah, but like, we're looking for software as a service. >> i know. >> well, no, but this is the

potential to be able to counter anybody who gambles too much >> no, you don't understand, we want the vertical that makes it so that the day you're on-boarded, you immediately get a work at home that's what they want. >> i know. >> the venture capitalists flooded the zone i don't think people at home realize. the queue of enterprise software is so long >> 90% of these enterprise s software companies are still private. these are the same people who -- >> service down, rule 60 >> same people with sam bankman-fried. >> we didn't even talk about that >> it's okay that you don't have a board of directors >> you got to short coinbase to make your money back, and coinbase will say, how dare you? do you not understand blockchain do you not understand the way the world works? my ma used to say, if jimmy can't understand it, maybe it can't be understood. >> a lot of people are

understanding they're not getting their money out and it's really tragic. >> that's the point. >> $2,000 to $10,000, significant sum for many people. >> the hit that people are -- they just say, yeah, caveat emptor gary gensler has not been as vocal as i'd like him to be. by the way, gary was up at m.i.t., same time. i wonder if sam bankman-fried took his course. >> i'm going back, looking, people are trying to estimate what the recovery value is going to be. people keep coming up with 5 to 10-cent number >> i want the s.e.c. to come in. the horses have not left the barn the s.e.c. can come out and say, look, we're going to regulate this, and i think the -- it would calm the markets the markets are not calm you can look at the -- did we get rid of the chain link fence check? you ever see some of the ones that are -- chain link trades a lot. >> i think we may have gotten rid of that.

>> it's a coin the one that's like under a dollar it's time not to show that we don't like to encourage people buying stocks under a dollar the only thing that's -- or coinbase the thing that's great about stocks around a dollar is stocks cannot go to minus one i've seen that i owned a stock that i thought was going to go to minus one >> you do have undilimited downside you can get in on the cnbc investing club with jim. >> which held disney, betting there would be a cavalry >> you were right to hold it because i was asking you last week, why didn't oweyou sell it? >> i knew that bob iger was going to -- i didn't know. bob didn't know until friday >> he didn't think he was going back >> what happened with iger >> will you stop talking we got to take a break >> all right

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does bob iger have a better shot of figuring out the world these days bob chapek thinks so walt disney and domino's pizza doing pretty well. purpose, at pnc private bank we will work with you every step of the way to help you achieve it. so let us focus on the how. just tell us - what's your why? ♪ ♪ so let us focus on the how. connecting to opportunity is just part of the hustle. ♪ ♪ opportunity is using data to create a competitive advantage. ♪ ♪ it's raising capital that helps companies change the world. it's making complicated financial concepts seem simple.

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welcome back that's about a wrap for us for the first hour of "squawk on the street." you have a show that you do right over there a little later in the day what's going to be on that >> we have pat doyle, used to be head of domino's and now executive chairman of jrs. he sold hot dogs for the yankees, like i sold ice cream this guy is the real deal and he's buying all those chevy bolts in order to make it so we have cleaner skies and get more drivers. i think the stock is down too much might be interested. what a show. >> you take chapek off the wall of shame, though, right? >> yeah, he does come off the wall of shame. >> is there a ceremony for that? i've always wondered. >> i'll make one up.

>> you disappeared him how many have you got on there these days >> only a couple i'm not stalin there's a breaking news story. >> cramer's not stalin, closer to lenin more on bob iger back as ceo of disney

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good monday morning. welcome to another hour of "squawk on the street. i'm david faber with morgan brennan and mike santoli carl has the morning off markets right now with the dow up. >> we're 30 minutes into the trading session. here are three big movers starting with jam smucker despite an earnings beat the maker of folgers coffee and smuckers jam have seen sales grow but thanks to higher prices and continued strong demand. you can see shares are down 1% carvana, those shares are tumbling again as well amid

growing concern from analysts that the none line used car dealer could run out of cash within a year. argis research downgrading the stock to sell. it's down more than 95% just since the start of the year. we will end with another name that's also under pressure, coin base, continued weakened in the wake of ftx bankruptcy the coinbase is down 5.5% now, down 30% just this month down more than 80% on the year >> shares of disney are one of our big focuses this morning a stunning announcement, 10:00 last night, bob iger, long-time ceo of the company, 15 years at the helm of the company who stepped down as chairman less than a year ago, reclaims his old job as ceo effectively immediately. bob chapek, who has been running disney for not quite three years as ceo has been fired.

even though he got a three-year extension on his deal last june from the board and conceivably a board of confidence. that board had turned and decided that the company could no longer be run by mr. chapek i've been picking up and reporting over the last couple of weeks, particularly after the last earnings report, which was a disappointment from disney and the shares responded to what were higher losses than anticipated. i had been hearing of growing discord at the higher ranks of the company. some questions as to whether his leadership could be continued for a long period of time. a stunning reversal for a board and, of course, mr. iger is back something that i think was unexpected, even by him, as little as perhaps a week or two ago. he was approached on friday by the board, signed up the deal last night at 8:00, i'm told. >> when do we get the details of the deal >> there should be an 8k in terms of what he'll be paid.

i don't know when, but we would see that i imagine a pretty good deal. >> happened quickly. >> as i reported as well, the board did not consider any other candidates given the dispatch at how they want to operate, they made a decision for mr. chapek to leave there are a number of other candidates, lower down in the organization who conceivably could take on that role at some point but putting them in it now the board did not think it would be a good decision mr. iger's job will be to help determine who the successors would be and train them. chapek was his choice as much as the board's. >> absolutely. he also extended a couple of times when he was thought to, perhaps, be nearing the end of his tenure clearly there was a multi-year process of evaluating candidates, maybe seeing some leave. you talked about the howard schultz example. you've had these instances where you had -- usually it's a

founder or quasi founder ceo return you have howard schultz, michael dell, charles schwab did this years ago, too in his case, he found a success ses successor and it worked out well there's a unique set of circumstances in how the market treated disney and how much to invest in streaming and direct-to-consumer i think you could have -- i probably would have said at the time, did disney have any business being above 180 a share? they were giving the entire company a netflix multiple the whole company, not just disney plus. it's an interesting whipsaw the company has been through i feel like we undervalue or underweight internal concern in terms of employee response to a leader, how management is -- signals they're getting. that seems to be a big issue. >> i know it was a big issue, an

important issue. the ones who will be creating your next content. that was a concern of the board. that's why they seemed to move -- seemingly quickly. they were concerned going into the last earnings but that was low-level concern. it was only coming out of the last earnings report their concerns were heightened given, obviously, what was a significant miss and not great communication around it. i've known iger a long time. talked to him many times, including having done an exit interview with him less than a year ago as he was stepping down as the company's chairman. he had given up the ceo job in february of 2022, mr. chapek, right into the pandemic. iger then tried to reassert himself during that period and that created a lot of friction between the bobs. but i did ask him less than a year ago during this exit interview about the world and about what he thought as the incoming, not ceo but what the challenges were for chapek

>> look, the world is change dramatically it's important for the ceo of a company to address all of those changes rapidly. bob is going to address them probably differently, perhaps, than i may have. that's neither good nor bad. i think generally speaking, change is good change isn't necessarily bad >> i guess in this case it wasn't good. now they're going back to what they had >> in his own words we're entering this age of great anxiety, he has said, in a recent interview, and it raises the question of what this new era of bob iger leadership over the next two years is potentially going to look like presumably you'll have to have cost cuts. there's questions about talent and what that bench will look like as well what happens with the streaming. also what happens with the theme parks. this idea maybe you're seeing peak margins for the theme parks. possibility of recession,

service hiccups reported, even over the weekend we know that's been a cash lever since they reopened. how do you bring all of these pieces of the puzzle together when it seems like it's going to be a tense time? >> i think it buys the company the benefit of the doubt again a little bit on setting of priorities i think it's worth remembering, dave, you remember this, bob iger was considered to be a lightweight successor to bob eisner he kind of invented the hollywood theme. he has credibility to say, this is what we have to be doing now. is he's been shrinking linear tv for a decade on the abc side, getting costs in line. >> without a doubt he did execute those changes you're talking about in part through an m&a that doesn't seem to tb what he'll be focused on. just sort of stabilizing the company in the near term,

creating hope and optimism and then making some tough decisions. let's talk about what those decisions may be rosenblatt security analyst barton joins us. he's going to stabilize things and then tough decisions to make what do you think are some of the decisions iger has to make that shareholders should care about? >> look, i think the number one thing for disney is content. iger is coming back because he has credibility on content you know, disney has been executing admirably under chapek content wise but it hasn't felt like the pre-pandemic peak he has to make decisions on positioning of the franchises and promotion of the franchises. that's number one. number two is he has to deliver on the promise that this is peak losses for dtc and that the

company is going to be trending towards profitability within a couple of years. if he does those two things and we avoid a recession, you know, disney stock can treat you well and they'll be happy with iger's return >>. >> michael, more or less same question to you. what are your expectations near and over the next year in terms of iger's second go at leadership >> sure. well, i definitely think it's a positive i think the company was really struggling with some of the environmental factors and some of the strategic decisions that were made. i would remind everyone that bob iger was dealing with these strategic challenges as well if you look at the stock and some of the trends they were wrestling with between 2015 and the time they launched the streaming product. if i were to pinpoint one major thing i think bob iger will need to be focused on, it's the question of profitability and

streaming. i don't believe streaming is a bad business i've been on before talking about this you hear it in the market, streaming is a bad business. the profit has to be back. i don't think that's the case. i think it was an industry that came up on the tech side i think there was a lot of funding of that business i think that means there wasn't a lot of profitability in that business i think now is the time to pivot and focus on things that make disney great and have that be what leads the streaming business and i think it can be a profitable business for the can. this type of change can be the catalyst for making the tough decisions there. >> michael, how big of an issue are the pr missteps we've seen play out, too? for better or worse, right or wrong, real or not real, the optics around disney right now is this is a company that has waded into politics, has waded into the culture wars. we certainly know it's caused issues internally, caused issues externally when you look to a place like florida, example. how do you right that ship from that standpoint?

>> well, i think the good news is bob iger has a reputation for being thoughtful and a good statesman for some of these challenges issues. a company like disney is going to face. it's very much in the court of public opinion, has a large employee base. each of these is important for having both your customers as well as your employees, your cast members on one team and focused moving forward think back to when bob iger did take over. there's -- mike santoli brought up he was considered a lightweight when he took over for eisner he took over for pixar and worked on nfl films. he showed excellence in and i think he will get that benefit of the doubt going forward it doesn't, pardon the pun, magically fix himself. he does need to take the helm and get the messaging on the right track in that regard >> barton, even presuming bob

iger can convey the message persuasively that you're at peak losses or past peak losses for direct-to-consumer and all the rest of it, how does the stock look to you valuation wise are they underearning in any particular area? if that's not the case, it doesn't quite look cheap not that disney always traded cheap but given where the balance sheet is, given the fact we're no longer talking about a stock with the dividend, what are we hitching to in items of an earnings trajectory >> look, i think that we're hitching to dtc losses going away over the next couple of years. that has to happen that's number one. that's the biggest lever in the p&l. number two, they continue to have momentum in leverage in parks, which is dependent on the economic outlook if we're going into a deep recession with people losing jobs, we'll see that if the macro is what we see right now where people are well

impeed, people with jobs, with money will go to the parks and the parks will look good i think that's what we're looking at stepping back, you can also make an argument for disney that this is a franchise that's durable. even if we do go through a recession, you can look past that and the idea the parks will come back. dtc losses have to correct it's a huge lever in the model right here >> yeah. of course, many of those decisions made by iger himself a number of years back thanks to you both. >> thank you >> as we head to a break, here is our road map for the rest of the hour, including the latest around ftx this is sam bankman-fried tells cnbc he's trying to lock down a multibillion dollar deal to bail out the now bankrupt company we're live from the bahamas. mainland china reporting first covid-related deaths since the lockdown and wti crude coming off its

worst week since april as goldman cuts its forecast on oil prices we'll talk with the analyst behind that specific call enwh "squawk on the street" returns don't go anywhere.

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walk to "squawk on the street." oil prices are under pressure. wti down 4%. brent crude down almost 5% as well gasoline is also under pressure.

natural gas is a little higher right now. we got some opec headlines driving the action, but also goldman sachs lowering price forecast to 100 bucks a barrel for q4 for brent crude, citing rising covid cases in china. joining us to discuss all of this, goldman sachs global head of commodities research, jeff currie great to have you on the show. let's start with this report you just put out 100 bucks a barrel, that's still a lot higher than where we are right now. walk me through it >> our bullish forecast for 2023, driven by reopening of china next year. while, the confidence remains high for that, the path between today and then highly uncertain, particularly given the rising cases in china, the big fear right now is a forced reopening. similar to what we saw in hong kong as well as taiwan

the concern there is right now infection rates are at april '22 levels where they were this last april when you lost 2.5 million barrels a day of demand. the fear is we do not know the policy reaction function case loads go higher the concern is they overwhelm medical facilities and then you get self-imposed lockdowns and a collapse in demand while that forced reopening means a lot of pain near term, and as you reach herd immunity, you see a rebound in activity. if we look at forced reopenings around the world, it typically takes a quarter before that activity begins to rebound significantly. at this point, again, i want to emphasize, a lot of uncertainty. we still believe in higher prices of q2 next year i think the key point the note of a downside, the trend lines have been broken, there was length to get rid of the market, the ctas were short.

one last point on opec kudos to opec for pre-empting this demand loss, very first time in the history of opec where they actually pre-empted a demand decline i think there was a lot of uncertainty. our estimates of demand decline right now is 1.2 million barrels a day. not as business as it was in april. at this point it's about the same size as the opec cut. >> i've got a little whiplash where opec is concerned. we do have these head leans. know they're meeting on december 4th, so soon these opec headlines that the cartel could consider production hike in december why? why the change so quickly? >> the question is, you know, how quickly of the pullback -- i think the key point there is what do we see happens with the

g7 price cap what we have seen right now, part of adding to the downside price risk is the russians are dumping a lot of oil on the market right now we look at inventory and see it's up 25 million barrels they're trying to get as many barrels into the market before the price cap and ban goes into effect on december 59, which is putting downward pressure on the market we think that's only worth 300,000 barrels a day. china worth 1.2 million barrels a day. the total hits about 1.5 million barrels per day. by the way, today, the market is pricing in 2 million per day barrel hit much bigger than that. i think the key point is that once that oil pushes out of

russia, that oil is at sea, you'll lose another 300,000 to 400,000 barrels a day which could leave more for opec. the cut they implemented in november equals about the offset loss in demand out of china. there's a lot of uncertainty around how long that's going to last. >> jeff, as the price actions recently done anything to undermine the longer term structural supply tightness in the story? if you go back several months, the general take was, look, short term premium prices for crude, in other words, the backwardation showed you there wouldn't be any supply, they look through the spr release, and now we're in a situation where you're talking about more than anticipated supply is on the market prices are down over a 12-month basis in dollar terms. does it tell us anything about the longer term or is it all these one-off factors? >> nothing has changed on the long-term story whatsoever i really want to make that

clear. china is a speed bump on the path higher. the situation with russia, they're draining offshore inventories, trying to get that oil out of that country onto ships. it does nothing about the longer term supply picture. it's just dumping a lot of oil as fast as they can before december 5th on the market china, a speed bump. china, dumping barrels on the market today it does not change the outlook as we get to q2. the metals in the equity market, the longer looking assets. equities are looking straight through this they're not trading it because they know it's temporary depression in prices. >> very quickly. when you put it like that, the rising rates from the federal reserve and other central banks, this tightening cycle we're seeing, does it do anything to potentially dent prices? >> to the -- >> deck crude prices.

>> okay. yes, it does slow down demand, but it slows down demand but also has a negative impact on supply and i think the key message here is the structural bull story in commodities is one of underinvestment and lack of supply if anything, you know, the higher rates derail that investment story and make it even tighter longer term and in terms of looking at the impact that rate hikes have on oil demand and food demand and commodity demand, these are some of the most inelastic consumption that we see in the entire consumption basket. they'll be the last thing hit, which is why they're late cycle. >> jeff currie, thanks for joining us. >> great after the break we'll take you live to the bahamas. ftx founder sam bankman-fried is trying to broker a bailout deal, as unlikely as that seems, despite being booted from the crypto company that he founded we're back in two.

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we're looking at home builders xhb down 1%. down nearly 30% on the year. one name dragging the fund lower is williams-sonoma barclays downgrading as well as rh ahead of a weak housing cycle. saying that they have, quote, a trickle-down impact on home funnishing spending over the next 12 to 24 months as i mentioned, those names are under pressure fblg, in addition to their relationship to housing, they are retailers in another busy week of retail earnings and then friday, black friday. >> it's coming up fast. let's turn to the latest around ftx a court filing owes the three largest creditors $3 billion kate rooney is live from the bahamas with the latest. >> reporter: david, that's right.

we did have a nice sunny live shot about 20 minutes ago. you can see the umbrella here. it is raining. i spoke to sam bankman-fried in nassau on friday despite being ousted from ftx in the company's bankruptcy, he said he's still spending most of his time, still, trying to broker a bailout he declined to talk about some of the financial details around the fall of ftx. we all want to know and he he did decline an on-camera interview. he is hunkered down in upscale bahamas neighborhood he told me there are potential bls of dollars for funding to make customers whole, as he put it he said he hates what happened and wishes he had been more careful. he also maintains there are billions of dollars in customer assets available despite not having access to his corporate email or any of the ftx systems right now. guys, this is, of course, a longshot and legal tells me a

sbf deal would be no better than any other third-party. legal experts tell me that him being part of the solution may help in a criminal or civil court. no response from him on that ftx's new ceo john ray over the weekend saying he's also exploring sale options for ftx can you see some stark differences, guys, on the island as ftx unwinds the litup sign that said ftx when we were here back in august, that's gone. we also stopped by ftx headquarters, that parking lot was essentially empty. security guards sheeed us away quite quickly. we saw four young people, they rolled up the window, wouldn't make eye contact and sped away quickly. we went by the plot of land ftx committed $60 million to that project to build out a foreign office an ftx executive once compared that to apple and google campuses that is vacant at this point

no construction has started there. guys, the story really now heating up in bankruptcy courts with customer funds caught between delaware and the bahamas. it's the biggest story in nassau all over the local papers. and the bankruptcy is the next step to watch here >> kate, it's david. i mean, listen, i ask this question knowing it's hard for you to answer but he seems to be living in a dream world with the idea of getting a bailout that will put everything right. do you have any idea who he's taking advice from or where he's coming up with these ideas that, frankly, don't see rooted in reality? >> that's a good point every investor i talk to in terms of the potential buyer, potential bailout options, they can't fathom anybody with a big enough balance sheet or risk appetite it seems like an absurd longshot from everyone else i'm talking

to he seems to be laser focused on that maybe it's a way to distract himself from the reality of what's going on here that's one possibility he seemed when i saw him on friday, relatively calm, similar to the way he was when we were here back in august. that's the possibility it hasn't sunk in or using this as a distraction. he maintains this is an option, there are potential billions of dollars out there. this being such a longshot, how is he holding onto this? it's puzzling. >> i want to go back to the bankruptcy piece of the puzzle the fact there's this jurisdictional tug of war playing out between the bahamas and u.s. right now, any sense on how that is going to evolve, especially when you talk about some of the assets and where they're located and who ultimately is going to have the power at the end of the day to carry this out >> yeah, part of the issue, john ray, the new ceo, has talked

about is how messy the accounting was keeping track of these assets, whether in the bahamas had or the u.s., and who has the right to oversee those is one of the issues the mismanagement, as john ray has put it the bahamas regulators have said they are the ones that should have control overthe ftx digital markets, which is based here they've said chapter 11 doesn't apply to us. they're going for chapter 15, which recognizes some foreign entities they've already moved some of the assets from ftx digital into their own wallet and essentially ignoring what ftx in the u.s. is hoping would be a stay option. in a normal bankruptcy hearing, you would have the assets fenced off until everyone can figure out where they're going. part of the issue is it's a very international company and nobody really knows where the assets are at this point. they're trying to untangle this web at the moment. >> kate rooney, great reporting. thank you. after the break, a lot more on the c-suite shuffle at disney

as bob iger returns as ceo, sending those shares up spiking about 7% right now not lpg heinthe dow. it just turned negative. ♪ ♪ wow, we're crunching tons of polygons here! what's going on? where's regina? hi, i'm ladonna. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations, like real time cgi. okay... yeah... oh. don't worry i got it! become an agent of innovation with invesco qqq if you wake up thinking about the market and want to make the right moves fast... get decision tech from fidelity. [ cellphone vibrates ] you'll get proactive alerts for market events before they happen... and insights on every buy and sell decision.

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i'm kristina partsinevelos here's your cnbc news at this hour the suspect in the colorado springs gay nightclub shooting was subdued by a patron who grabbed the handgun and pistol-whipped him with it still no motive. the snow has finally stopped falling in western new york. some areas got more than 6 feet of snow over three days, making it the worst lake-effect storm in the area since 2014 president biden announcing this morning he is sending federal aid to help with the clean-up. in indonesia, at least 62 people are dead after a strong

earthquake collapsed houses on the main island. rescue teams are searching for people buried in the debris. hospitals are overflowed with wounded and some are being treated outside on stretchers. nasa's artemis mission has made its closest approach of the moon, about 80 miles from the surface. the capsule will orbit the moon before starting back to earth. off the highs of the morning, up as much as 9%. we also have weakness in the broader market disney shares up 6.3%. we talked a lot about the challenges that we'll face incoming -- he's already ceo again, bob iger, after having held that position for 15-plus years. in a stunning reversal he comes back in to lead the company for what is said to be a two-year period we talked about the challenges he'll be dealing with when it

comes to direct-to-consumer, the description-based business for which the company is spending some $16 billion or so on content. it's not as though other challenges, such as espn and the linear cable world don't also wait him last year, not even quite a year ago, last december when we did what we thought was the exit interview for mr. iger, who was exiting as company's chairman at that point, we talked about espn and what he saw has the future of sports and sports rights. >> espn is quite a good brand. it has amassed just a phenomenal, phenomenal amount of sports rights. that i think it is using well to continue to be popular and attract consumers. i think it has to migrate. >> it is migrating. >> the question is, at what point. that's not for me to determine. >> that's a question for all of us. >> i think if i had remained, i probably would have pushed it

pretty hard. >> what does that mean harder than it is right now? how do you even do that? >> withal, a few things. one, you have to make sure the rights you're buying give you that flexibility secondly, you have to make sure your relationships with all the incumbent distributors give you that flexibility as well i'm not suggesting i would push it harder than bob would have pushed it, but but harder than i have. >> than you did. >> yeah. we're in this interim period of time with a bit of out with the old, in with the new, and the question that bob will deal with and is dealing with, do you accelerate that or do you try to accelerate it or do you hold back as long as you possibly can? it's not a decision i'll make. i happen to believe the future of espn is bright if it can make that successful migration to the new platform >> it's so interesting hearing

him say, it's not a decision i'm going to make, but now it is. >> and he went into detail what that vision and strategy would look like if he was in this position again, which he never thought he would be. >> but it gives you a sense of how he's viewing espn, another overall component of the company. >> you have the cable distributors that relee lie on espn to keep keep the pujdz of those who have not yet left. you can think about, if you're the leading brand in any content category, in theory you have more ability to migrate and get people to pay. it's kind of the newspapers aren't making money online but "the new york times" and "wall street journal" and those premium brands that have been able to charge can amass scale at that level. >> this takes me back to your interview with john malone last week and what he was talking about with consolidation, streaming bundles, basically leveraging that to create for value for consumers. what does that look like now at espn with bob iger at the helm

and all this onsolidation? >> and malone likes to blame espn for blowing up the bundle because sports programming is so expensive. that's the key for consumers saying, enough already it's been interesting in a very short period of time where we're thinking about all these things in terms of how bob iger will deal with them for more on that, let's bring in long-time disney shareholder, morris asset manager, following the media business for a really long time. marsh, just give me your take in terms of iger coming back in, the challenges we've been talking about that he will be facing once again. what do you think? >> good morning, david thank you for having me. i think that i really respect and admire bob for his willingness to reassume this responsibility there's a parallel to howard schultz, but not quite the same. i think it's great for the company, and i think you have to at least respect the board for

realizing they made an error in signing chapek 11 months ago and reaffirming that and we feel a lot better about what's happened since last night >> yeah. but it doesn't mean that the challenges are any less in terms of dealing with the direct-to-consumer, the enormous content cost there, can you really make money. we were having a conversation about sports rights and espn what do you think when it comes to, for example, those two areas that iger will do or do differently than chapek? >> i'm not sure but i think one of the things -- this is a clue. we sent one of our best analyst to the conference this past week in california and the surprise luncheon speaker was bob iger. at lunch he spoke about how much time he had spent in developing

their franchise, park business and film business in china since the change in management, disney has not been able to get a film on in china so i think details matter. and i think that the willingness and the ability that he has to work with people is historic ability to work with steve jobs, which led to one of the greatest acquisitions of all time, pixar, his judgment and implementing probably what i think is -- i'm sorry, i'm losing my voice -- the best acquisition of all time, which is marvel. you know, details matter and i think he's going to pay attention to these things. >> details matter. we know the talent matters, too. while iger is coming into turn things around and make some changes, he's also coming in with a clock ticking i wonder what your thoughts are in terms of the bench, what that looks like and what succession, i guess, round two could potentially look like, too. >> i think he drew the parallel

to starbucks again howard is focused on restructuring the business and finding the next ceo and i think that's something bob is going to have to do from day one. he's probably, i think, going to have to pick a coo who people will see as his designated successor. and he has a great bench they lost a talented executive when they lost peter rice, but they have the most talented film entertainment executive in the business sitting at disney and that's kevin fife. disney, everything it does is entertainment. that's the parks, the movies, its the merchandising, it's all focused on the value and quality of their superb franchises they've created real estate value out of raw land in the center of the state of florida because they're disney you take that factor into

account, i think that that's what he has to be focused on i hope that answers your question >> if you look at the asset portfolio as it stands now, are there things to do in terms of selling, buying, adding too, separating assets at this point or is it about running them a little better and making sure that the relationship with content creators and directors are better >> i think the answer to your question, carl, is all of the above. most important, disney has the best entertainment franchises in the world. you can't replicate marvel you can't replicate star wars and the star wars universe you can make them much better, particularly the star wars universe, but you can't replicate them you can't replicate the animation library. you can't recommendly indicate the fact that people take their children to the parks to see the

princesses i think those assets are extraordinarily valuable and there's real estate that comes around with it the value that's been created as a result of that in terms of what you do from this point on, i think there's one issue that has to be dealt with i think there's an opportunity here for your -- there's an opportunity for disney which is to restructure the relationship with hulu. will disney create an online service that's a general entertainment service as well? i think it should, but i think it's got to work through the problem with hulu. that's an asset that, perhaps, they can monetize, maybe not as well as they had hoped at some point, maybe not as a buyer, but that's probably not a bad idea >> interesting yeah, that will be one of the many decisions he's dealing with in terms of that option to buy the remainder of hulu. >> i hope he enjoys what he's

doing because he's got a lot to do. >> morris, thank you >> david, thank you -- >> thank you >> thank you >> you're welcome. after the break, shares of alibaba and other chinese tech names are moving lower we're live from beijing as china reports its first covid death since its lockdown in shanghai

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welcome back to "squawk on the street." china reporting the first covid death. eunice yoon is live from beijing with the latest. >> hey, morgan beijing's largest district has been in effect shut down since the weekend with most businesses closed and schools put online. as cases in the capital hit approximately 2,000 or so in the past two days. and the city reported its first three deaths in the past six months the situation is worse in export

hub guangzhou, which has seen reported infections -- daily reported infections rise to 9,000. the city imposed a five-day lockdown on its most populous district and it put the rest of the city, authorities describe as silent mode, that's an effective shutdown now, this is only a week, about a week after the leadership here had announced an easing of zero covid, but what investors probably should know is that when beijing described an easing of zero covid, it's not the way the world sees a reopening but a reopening with chinese characteristics. the chinese are effectively not really lifting zero covid wholesale. instead, they're trying to strip away some of the more egregious measures, such as shutting down an entire city of like 21 million people over a few cases.

substantively, though, here on the ground, we're not really seeing any discernible change. if anything, it's getting a little more confused in terms of the policies because the local authorities are trying to look as though they are matching the leadership's hopes to reopen, but at the same time, they want to keep their cases at zero. >> so just to put a fine point on it, this reopening narrative that the market has latched onto and has been trading up or down depending on the headlines on a daily basis at least here in the u.s. where the equity market is concerned, it's more rhetoric than reality at this point >> i would say that. at this point, the signal is there, so there are a lot of people excited about that. that before we thought there wasn't going to be any reopening, maybe for a year, years in fact. but now it looks like a signal is there that at least somebody at the top is hoping to loosen

things up a bit. but the problem is, we still don't exactly know what the chinese mean by reopening. >> okay. eunice yoon. thank you. a quick note as we head to break. later today on cnbc, do not miss an exclusive interview with cleveland fed president luresta mester that's coming up on "closing bell" at 3:00 p.m. eteasrn we'll be right back. stay with us ♪ at prudential we think you should say it when things go right too.

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internet customers. so boost your bottom line by switching today. comcast business. powering possibilities. welcome back to "squawk on the street." i'm dominic chu. stocks are mostly lower today. in fact, we're at session lows for the s&p 500, down nearly two-thirds of 1% to start off this holiday shortened trading week from a sector perspective, particular weakness in consumer discretionary. now, within that group, you have several retailers. among the laggards that includes best buy, amazon.com, as well as ralph lauren and tapestry as well, and target shares still slipping again a few days after its disappointing earnings report last week. keep an eye on the retailers as we kick off one of the busiest shopping weeks and seasons of the year hay with us weave more "squawk on the street" coming up.

keep it right here

we are at session lows, but

keep in mind it is a holiday week and trading is somewhat thin this week as you can see, the s&p is down about six-tenths of 1% tesla is down 5%, it's trading near 2-year lows there's another big recall, this is a name under pressure really since elon musk moved to take over twitter and for better or worse, mike, it does seem like it's become a proxy for trading the news in that name. >> it's tough to separate it out. over the past two years, tesla had this massive round trip, but there's really now doubt, since the twitter deal closed and elon musk has been constantly tweeting and clearly absorbed with what's going on right there in twitter's business, that yes, tesla has suffered in this weird proxy fashion right there. you do have news on recalls and other things and maybe general economic concerns also filtering into potential demand issues because the china market has not been

very strong. >> china probably a part of that too. >> a good point, but we continue to watch it erode in value the wrong time for him, too, given the needs of twitter in terms of cash. lucid shares down, basically to the spac price where it started. churchill capital four that's going to do it for us on "squawk on the street. "tech check" starts now. >> good monday morning welcome to "tech check." carl has the morning off today, out with the old, in with the older. julia has the latest on disney as shares surge on news of bob iger's return. we'll discuss that in a moment plus, more from crypto's man of the hour, disgraced ftx founder sam bankman-fried as he sits down with cnbc for a rare one-on-one, and sharks continue to circle the waters more on what to do with apple ahead of the holidays plus the chi china tech names you may be missing out on a big show ahead, markets start of