bitcoin at a two-year low as the ftx collapse continues to rip tripple through the markets. the bankrupt exchange heads to the delaware court. and changes at the magic kingdom. and carl icahn takes aim at a meme stock it is november 22nd, 2022. "squawk box" begins right now. good morning welcome to "squawk box" here on cnbc i'm andrew ross sorkin along with joe kernen this morning and melissa lee. beck ay is out >> melissa lee >> what did you say?

>> i said melissa lee is here sdplc >> an octave higher. >> we will have a lot of fun and a lot to talk about. between bob iger and elon musk and carl icahn u.s. futures at this hour. if we opened up now, dow up 64 nasdaq up 27 s&p up 9 treasury yields on the 10-year treasury is sitting at 3.793%. just about 4.5 for the 2-year treasury and in energy, someone said you can't buy by the barrel. i said you buy it. that's how we do it. if you buy it by the barrel,

$80.50 >> it comes in quarts. they put a thing in there. they turn it over. wd-40 orsomething? >> is that how you buy oil >> wd-40 is a can. >> that is a lubricant >> it shows you when i buy it, i have to ask for help i'm not dropping the transmission or -- neither one of us. have you ever changed oil on a car, andrew? melissa, you have a better chance of having done it than us you don't have a dog, do syou? >> no, why do you ask? >> when you come home, no matter what, they're happy. >> you are saying you're a dog >> i'm not trying to emote i'm glad you are here. >> a genuine two octave higher

>> andrew is happy you are here. >> i'm truly happy >> seems more sincere. >> we're almost in the holidays. i'm doing it for one day i'm happy to be here. >> only one day that's got her >> if it were a week and thursday, that would be a different story. today's top corporate story. bob iger making changes. he told employees they would go through restructuring. among the first changes, head of media and entertainment kareem daniel is leaving. iger telling employees he wants new structure with more decision making back in the hands of creative teams shares of disney closing up more than 6% yesterday. $10.5 billion added to market cap. >> doesn't always turn out

great. howard schultz worked. steve jobs worked. >> why come back unless you can do something >> we talked about that. income the game. king of hollywood. you go to the oscars no, i just think -- go ahead, andrew you think he is doing it for shareholders >> i'll give you the optimistic view he looks at the business and looks at where the economy is today and he says upside from here look, there are secular headwinds and economic headwinds. depending where we are in the cycle -- he was a beneficiary with wind at his back and whether he thinks there is wind

once again or the opportunity for wind at his back, i don't know there's some who upgraded the stock. the stock moved higher there's another analyst that came out and said look, a lot of these things were decisions in terms of going to streaming were things bob iger projects to begin with and not changing the view >> how much they paid for fox. andrew, i think you are on to something. listening to jim paulsen yesterday and mike wilson today. you can never call an exact bottom we just went through a pandemic. now we're in the tightening phase. things can only get better from here >> money would be cheaper in theory >> world war iii notwithstanding. hopefully things will not go up. we should be at this time of year, we're excited about 2023

it's coming. we're going to have the glasses. look where we are. >> in times square >> where do people go to the bathroom i think i know where they go >> too early for that kind of talk cryptocurrency ftx executives and lawyers in a delaware courtroom today for the first appearance before the bankrupt judge creditors and customers paying attention to details on how the bankrupt exchange will deal with debts and customer funds ftx will ask for permission to pay suppliers and outside vendors. i think the depression is getting worse for people waiting for money i think they are starting to wonder it is not man united what is the company? man financial? what was it?

>> what are we talking about corazon's business >> mf global mf global. mf global. people got whole >> it took years i think this -- you have a great phrase money goes to money heaven >> right now, it went to crypto assets in heaven a lot of those up there. i want to hear what you think about this genesis now saying it has no immediate plans to file for bankruptcy genesis suspended days after the collapse of ftx. bloomberg said it is having a tough time to generate cash. binance decided not to proceed

with a purchase of the company genesis says the firm continues to have conversations with creditors to resolve without the need for any bankruptcy filing clearly, pressure on that business the ripple effects from ftx continue i want to tell you about coinbase the stock has been worth $10 billion less it is worth less than $10 billion for the first time since it went public last year peak market cap was 777billion last year. the stock down 80% so far this year the other thing, melissa, you have been covering the crypto space. i don't know if you saw this it was a fascinating letter that

coinbase put out to basically make customers of grayscale feel comfortable. we have the stuff in custody we don't lend it out or move it around i think this is an issue that people are concerned about ac across the entire space. >> have you seen what the gbtc is trading it is $7 a unit. the spread between gbtc versus bitcoin. >> there is an ar bbitrage play >> do you think they will say okay to the etf? that is doubtful right now for the time being

>> i don't know. >> it did make people feel a little better. a huge number of bitcoin 685,000. it used to be worth a lot. >> used to trade at a premium. >> right elon musk is planning to delay the relaunch of twitter $8 a month blue service the platform will use different color check marks for organizations and individuals. twitter pulled the blue check mark after imposter accounts were created musk planned the relaunch for november 28th. and carl icahn is betting against gamestop bloomberg reports that icahn began shorting the stock in january of 2021 when the stock was near its peak of $483 a

share. icahn has been adding to the position from time to time saying the stock could fall more and it is not trading on fundamentals at your own peril. >> melvin capital. >> yeah. none trade on their own fundamentals >> sure, but the question is i there a squeeze coming coming >> mother of all short squeezes. moass. >> what about that >> r.c. and icahn. they look chummy >> i don't know. i think that ryan cohen has admired carl icahn

that is what that relationship was. interesting to see the mentor turning on the mentee. >> mother of all assets. what did we say? >> short squeezes. >> you said moas >> i started going down that road with the spelling i thought i could mess it up >> yeah, yeah, yeah. >> it is early in the morning. >> we have lately pushed the envelope. >> becoming risque >> do you know how many times they say "schitt's creek" on the em emmys? i'll probably hear about that. it's a tv show it's a good one. >> s-c-h-i-t-t

it's okay. it's a name. >> you spelled it. >> it's called "schitt's creek." >> you must have gotten a lot of courage. another day, at round of fed speak. first as we head to break, check out the morning's biggest pre-market winners and oslosers when you turn up bad crypto coins, you should say "schitt's creek. you are tcwahing "squawk box" on cnbc >> announcer: this cnbc program is sponsored by baird. visit bairddifference.com.

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we're up 375 basises p poino the year we're at a point where we enter a strict stance of policy. we can slow down the pace. we are at a reasonable place. >> that was loretta mester on cnbc yesterday jo joining us to talk about it is

sylvia jablonski good morning we heard a lot of fed speak. the fed speak has been coming from all sides you heard jim bullard say things are not great and loretta mester yesterday and jay powell with the credibility of the fed i can't figure out if they are trying to soften the market up or harden the market up here >> good morning, andrew. i think they are having an impact on the market every time we get them out in the press and media and vowing to keep rates higher, we see the market pull back on that a little bit it is if we have the cpi falling and ppi falling the past friday. great news market rallies and they come in and say whoa rein it in

the policy will impact the market until we see inflation contracting and the economy slowing and the reaction the fed has to that in the medium term will sit in the same market that we're ins sideways. >> megan, what is your take? i feel we are getting told a different thing every day. i don't know how organized it is we talk about hat. how much of what the fed and different fed players are saying is coordinated in advance? >> i don't know how much is coordinated in advance, but you brought up a good point. there is a lot of different information coming out and views on a regular basis throw in the economic data we have been getting. the data continues to mix the markets emotions as well because you have a softer cpi print and couple days later, strong retail

sales report the market is trying to figure out how far and what is the terminal rate everybody is focused on nobody is talking about cutting rates. if you look at the futures funds contract, that is looking for cuts in the second half of next year i think that is a bit of aggressive regardless, it is 50 or 75 they will continue to hike and then pause and assess the situation. we still have the balance sheet that will pick up as well. we are in a restrictive monetary policy cycle some of the areas of the market that have been beat up this year, i think, there may be room to weaken into next year >> meg anmegan, you still sound bearish to flat

sylvia, are you flat or bearish? >> i think i'm bearish to flat through 2023 i think some things could change if you look at goldman sachs, there are a lot of things that are indicating could happen. that could be a typical recession where we see the s&p 500 fall back to the average 37% level that happens in a recession we see earnings fall there are different things going on now famous last words. this time it is different. the consumer remains strong with savings. jobs numbers are strong. i think we could see earnings fall more perhaps is the last shoe to drop, the fed is slowing down we're not going to be to the end of it. i think if we get news of the first quarter of 2023, the fed will have rate hikes and cpi and ppi keep coming down and

manufacturing in contraction territory, perhaps it is halfway through the year and not the end. >> sylvia, what is the jablonski family doing >> long-term investing microsoft and amazon and google and nvidia everything that is the staples and feature of the next industrial revolution. 5g and artificial intelligence replacing workers to keep factories working. these are not going away a few years out, amazon and google and microsoft will look like great trades. >> megan, what do you do if you have any dough >> so, same philosophy for us here we are longer term i do think the next couple quarters will be a challenging

one from the economic standpoint and the earnings standpoint, we're looking beyond that. 20 th24 is going to be a differ economic environment and monetary policy environment. we are looking at areas of the market which priced in all of that bad news that we expect over the next 6 to 9 months. we are looking at small and midcap stocks. i know a lot of people would not look at that especially with a recession to start in 2023 these are areas of the market and have fallen soattractive with the long-term time horizon have value looking at the euro or the pound. these currencies are pricing in near collapse of the economies that's just not the case these economies will turn around when you look in the longer-term

time timeframe, they are attractive focus on the long term >> we have to do bitcoin with you another time siylvia and megan, thank you melissa. we're at $15,700 on bitcoin. what is the next level here? >> i don't know what the next level is. >> katie stockton said it. it held 17 >> for a long time it held there. >> and 15. you know, it looks like she said 12 coming up, the stocks to watch. including the ones pandemic darling now dropping in the market you are watching "squawk box" here from the nasdaq site here on times square.

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welcome back to "squawk box. it's time for the "executive edge." zoom shares are under pressure company posted better than expected results, but weak outlook for the current quarter. zoom cfo joins us live at 8:50 a.m. to talk about it. dell shares jumped following better than expected earnings. the outlook on the conference call that spooked investors. urban outfitters posted better than expected sales. the company's ceo says the retailer was encouraged by quarter to date sales as it

heads into black friday. then the cyber monday weekend. andrew okay coming up, we talk about this. global investors and businesse getting worried about more covid lockdowns happening in china we have a live report from beijing next look at the s&p 500 winners and losers 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 lcome to our third 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

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good morning welcome back to "squawk box" here on cnbc let's show you the futures dow up 35. nasdaq opening 13 points higher. p s&p looking to open 35 points higher melissa. and china is dealing with the worst infection wave since

april. we have eunice yoon with more. >> reporter: good morning, melissa. beijing is a near ghost town situation as covid cases continue to rise and the capital reports two new covid deaths the city is shutting malls as well as parks and urging residents to stay home a couple of hours ago, the authorities said that if you do go to a public place as of thursday, we are required now to show negative 48-hour covid tests. beijing is one city here that's been showing the covid cases surging at fresh highs around the country which is now totaling 29,000. of course, tiny when it comes to global perspective for china, it is really seen as a high number. because of that, it is triggering cities around beijing

and mass testing guangzhou requiring mass test ittinging. and in the west in chongqing has stricter policies and urging people to stay home. and nomura says they account for 20% of china gdp and now under some form of lockdown or curbs this is to the far away from the estimate in april when shanghai was under its brutal lockdown. encouraging news out of the iphone city. this is where foxconn has the iphone facility. the city said covid cases are dropping and the local media has said that foxconn has been able to get closer to its goal of

hiring 100,000 workers to make sure they are getting that plant up and running guys >> eunice, is this in part of beijing trying to move toward a more relaxed view of covid there was a rumor a city near beijing was the test ground for relaxing some of the covid lockdowns. that city ended up entering its own lockdowns prior to the wave. what is the regime's view of covid at this point? obviously in the grips of dealing with this wave, but had there been a move toward opening up a little bit. >> reporter: you are just seeing a lot of conflicting priorities. you mentioned that one city and it is, like you said, looked like it would relax on covid curbs and covid testing. that is one city that announced it will be conducting mass testing for the next couple days of its residents you are really seeing this conflict of priorities because on the one hand, the authorities

want to abide and still are being told to abide by zero covid. at the same time, they want to abide by the new reopening rules. there's a big clash how that goes all week we have been hearing from the state media how these reopening rules are supposed to go and they say they are clarifying them. it doesn't feel like they are clarifying it very much. at the end of the day, they call zero covid a magic weapon. as long as you have the magic weapon and target of zero covid, the message translated on the ground by local officials they need to reach the zero covid goal that is creating more uncertainty and confusion on the ground as to how we should be interpreting the regulations >> eunice, thank you eunice yoon in beijing coming up, the collapse of ftx sparking new calls for crypto regulation. we'll talk about it with former

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welcome back equity futures have been slowly giving up some of the early gains. they were never up much. 50 or so dow up 7 nasdaq actually negative down 6 points. oil prices very interesting things going on. we'll have amos on later to talk about the behind the scenes moving having with saudis now potentially agreeing to boost output that was denied. >> denied. >> you saw what happened just last week. the biden administration told a federal court judge that mbs has sovereign immunity there had been some acrimony between president biden and -- confusing. mbs and sbm.

you have to figure out who you are talking about. that is seen as an olive branch or concession. you know, russia, when is that, tomorrow when we hear about the caps put on that could hurt supply for the winter this is coming as the saudis looked right about cutting production because we were at 79yesterday. that looked like a smart move i you are thinking about your self interests. that was smart. >> why shouldn't they? >> they have their own concerns. make saudi great again masa maga. ftx executives and lawyers are in a delaware court before the bankruptcy judge in the meantime, genesis has no intentions of filing for

bankruptcy joining us now is the former chairman and ceo of nasdaq he is founding and managing parter of verity financifinanci. good to see you. the problem with regulation is whether or not token or cryptocurrency at large if there are securities and because of the ambiguity, no agency stepped in to say it falls under our purview. you are saying it is clear to me where do you point the finger? >> it is very clear, melissa i, like everybody in the community, was fascinated by the ftx story. as i read the details, i understand ftt when i read ftt had a claim on the profits of ftx, too many acronyms here. i said that's my view of the security that's clear cut security. i did research

it took a half hour. you go back to 1946 to the howe case that established four criteria for a security ftt meets every one of the criteria it is not -- it is clear as day that ftt was a security. as a security, can and should be regulated by the securities and exchange commission. this mandate is not, you know, off the fairway, joe it is right down the center of what they should be doing. they have been criticized by being too expansive in the mission. this is core investors lost billions of dollars. >> the s.e.c. should have stepped in on that front how about the notion of the exchange a lot of crypto platforms. you ran an exchange. do you think there should be tighter oversight as a platform where you are buying and selling these things securities or not?

>> one i want to clarify is change in the crypto space it is different. what we have is the concept of defi the crypto world is the opposite most centralized finance system we have today. ftx was clearly an exchange. they also were a prime broker and introducing broker and clearing house and custodian and regulator. i have never seen anything this centr centralized. clearly we need a regulation in place to address that and proper checks and balances. that's not available today what is available today and it will be very effective is regulation of securities if you have a token with a claim on profits that is a security is directly in the purview of the s.e.c. mission they should get on with that job. >> does it amaze you, bob, we are poring over the rubble by

ftx and the crisis of confidence in the cryptocurrency industry and the industry is this big and it is nowhere near the traditional financial systems. it doesn't pose a risk to the financial system, but the cryptocurrency industry has gotten to the point you have a blowup and has immense ripple effects and there is no regulation that covers this. it is astounding to me sitting here today >> melissa, when you look at the scope of history, it is not that astounding even with the great depression and great crash and what we have known what we have do congress is being slow about it. they need to move quicker. that will also be the grinding of the gears and take a long type there is low hanging fruit to be consistent with the message

today. there is regulatory authority. these regulatory agencies are constantly criticized for overreaching this has been adjudicated at the supreme court what a security is they can use that authority today while the big regulatory structures are built unfortunately, it does take time i wish it could be sooner. it is the way it is. you know, it is obviously dangerous when you have unseasoned operators with all of the kings to the kingdom you are running the stack from the broker and from it to being -- >> i think we are having difficulty with bob. he made a good point we don't see that in the traditional financial is system with the vertical stack of the exchange operator. all of these functions recsidin in one entity.

>> yup >> how could that have happened? >> he used the term we used. keys to the kingdom. we are talking about bob iger. he used it in a different way. now andrew is not able -- your audio is not working or someone did not turn it on what were you saying >> i was just saying that the idea of being able to col collateralize against this stuff with the margin that built up in the system and people were leveraging >> i have seen that movie before >> thanks to bob when we come back, a number of tech giants announcing big layoffinect eks renwes. what workers need to know when "squawk box" comes right back.

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tech giants have been announcing layoffs we have heard from companies like twitter, meta, intel and

amazon, and our guests, i will just start with allen, because it seems like there's a still mismatch in this country can you do very well in certain areas right now. you can demand 20% pay increases in a lot of different areas, and yet in tech you are seeing layoffs. it's just hard to talk about this it's like it's a monolith at this point a rail worker or anybody in the airline industry, they have so much power right now i think unions are a little resurgent in this area, and where is the disconnect there between that and tech?

>> you are absolutely right, joe, and the industry as well, a tremendous opportunity for employees to call the shots. the disconnect is not maybe as big as you think what has happened is while the downsizing has occurred in the digital platforms, and what you were talking about earlier, the crypto and digital asset space, that has been pulling a lot of tech talent off the market from traditional corporations what we are going to see is that those folks that are laid off from some of these higher flying digital platforms will finally get hired by the companies sitting on thousands of openings we are going to see adam smith come in and the invisible hand will redeploy the tech talent. not as bad as it might sound, but they are not going to be

working for the place they were working for before >> and sadal, and i blame you for a lot of this, we think it's normal for people to stay home -- i'm just kidding, but you have been correct that the hybrid model is here to stay we're at 65%, i think, in office workers that used to be in new york, i think it was 80% before. we're not back and you still think that's okay, though. >> hi, jo e. listen, the reality is that we're in the new world of work, and this is no different than what we saw historically after the black plague and spanish flu, world war i and world war ii, and we see a whole new revolution in work and working

this conversation, we're going into our third year, is no more -- it's no longer as relevant as it was long ago, will it work, will it not work, et cetera. what is happening with the layoffs, there are all these connections taking place under performers will struggle stars and high performers are protected and those with skills are protected, and the idea that this is about physical location or microsoft teams conversations, that's no longer relevant we are past that, joe. >> can i trade you, everybody comes back but everybody comes back for four days, and we all come back but it's a four-day -- new york will never do it.

the new york stock exchange is greedy and will never ever do that i am just trying to figure out this thing that you describe, and how does it play out in silicon valley it's going to get bloody in advertising land and tv land is the economy does slow. there will be layoffs across the board. >> unfortunately, in today's climate for many people, many workers, the answer is can they control their fate and be more valuable and visible the answer is no, there's nothing people can do because we have heard apology after apology about focusing on essentials and bloated companies are shrinkinging and retrenching, and these layoffs are not about individual performance and

presence, et cetera, and it's about leadership and strategy, and this is really important we are misplacing the culp culpabilities. it's going to be more distributed and using more tools and technologies, and we better understand that and upscale. this is the reality. this is the reality. >> allen, which part of this do you have comments for? do you agree or do you have a modified view of that or do you totally disagree >> i definitely have a modified view of that, and the issue is not all of the employees get laid off there's a certain selelement pee have to understand, and there's an acronym, adr, and it's a way to stay valuable to your

employer, and some are being chosen, and "a" is for attitude, and, and you run a less likely chance of being laid off if you are known in the company as somebody with a positive attitude and doesn't play this is not my job game and downsizing and laying people off is not a perfect science as a result there's subjectivity dedication take initiative. be honest. don't be 100% remote if you have the option, because presence helps you build relationships. yes, you can build relationships on zoom and it's not the same. and the last thing is, in terms of relationships, joe, you there

has to be a positive buzz. >> there's a curtain behind you from your house we're looking at, and we know where you are. both of you, thanks. we have to go to break we really have to go to break. we'll be right back. is going t”. 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 futures pointing to a slightly higher open. we will hear from mike wilson and if he thinks inflation has peaked bob iger making his presence felt after one day on the job. long-time media executive, tom rogers, will join us about the shake-up at disney the holiday travel surge is on, and what you can expect the next few weeks, and are airlines ready for the rush as our second week of "squawk box" begins right now. good morning welcome back to "squawk box" right here on cnbc i am andrew ross sorkin, along

with melissa lee and joe kernen. let's show you where things stand right now. the dow is opening up 40 points higher the nasdaq, which was in the green turned negative, and marginally treasuries right now, they are looking at the ten-year note citi just at about -- we'll call it 1.791 finally, this may be a barometer of something, and i don't know what melissa and joe think, but bitcoin reached the $16,000 level, and ether sitting at $1,083 and joe, you say katie stockton, if it were to continue it would

be 12,000? >> yeah, we said it did that in the 17s and 20s. it -- hard to believe, but some pe people -- are people buying it when it bounces. a lasting bottom i have no idea where that would be, but katy using whatever technicians use talked about 12,000 as being a potential. i thinkthat was a pretty good one for her, 12,000 in terms of, you know, maybe the terminal -- >> like an optimistic scenario >> technicians always have stopping points, don't they? >> yeah, there's another hrleve. thank you. and again bloomberg

reporting carl icahn reportedly has been adding and saying the stock could fall more and is not trading on fundamentals. and meantime, musk tweeted he wants to be more confident about preventing accounts that impersonate well-known people. and best buy coming in at an adjusted share, and revenue is 10.95 billion, and comp stores did fall, and we are seeing the shares pop at 6% right now let's get to dom chu i would prefer if you could be here a little earlier. is that possible >> i was here.

i was filling in for brian sullivan, anchoring his show on "worldwide exchange," and i will help if i can and will do so right now. and melissa mentioned the earnings from best buy, and then the chinese tech giant, baidu, just 150,000 shares of volume. this is the so-called google of china, and they topped estimates. their shares are among the best trading in the premarket, but have lost over one-third of their value over the last year and then you have transportation names getting downgraded, and among them peloton, they cited a challenging post covid tr

trajectory and then shares of lyft downgraded to market perform to out perform because of a weakening consumer, and regulatory headwind as well. and then shares of coin base which are up around 50,000 shares premarket and its lost a quarter of its value in the last week or so and that has not deterred one tech investor from pwaogbuying the dp there's at least one investor who continues to buy the dip in coin base given the fallout. joe, those are some of the stocks on the move that i can help with this morning

i will be back with more in the next hour, if i can, to help you out more >> pretty amazing, the pandemic stocks, peloton, single digits -- a lot of them are. a lot of them came all the way down where -- i mean, they used to have three digits, and now they have one digit, unless you go past the decimal point. >> joe, not that i don't tune into all of these on "squawk box," but what about zoom communications, zoom video it's another one i know you have the cfo coming up later on in the show, and again, i would love to hear what the commentary is on what the trajectory is. a lot of the downgrades, joe, are almost a me akulpa

downgrade. >> well, thanks. >> melissa, i feel like we have had this conversation many times in the course of the last decade or so. >> mea culpa -- >> yeah, four years of latin, and i remember quid proquo -- >> only four years >> joe, can you tell me again what was the word of the day yesterday, it was the english

equivalent -- >> epicarasy. >> i can remember playing in my play pen, but can't remember that word. >> i will use it just to reinforce it in my head. >> thanks, dom parks, shopping malls and other places have been shutdown in beijing today as china is battling the rebound in covid cases. the number of cases in china is at its highest since april eunice joins us again. >> beijing says as of thursday officially we now will have to present a negative 48-hour covid test to most public places, however in reality we have already been asked to present for most places a 24-hour negative covid test as part of this whole mix of inconsistent and confused enforcement of

covid regulations. beijing isn't, of course, the only city that has been tightening its covid controls. around the country the case count for country infections is nearing 29,000, and so it's tiny in a global context especially when you know the size here, but in china they call the situation grim and there's mass testing in the south, and they will be imposing tighter lockdowns for guangzhou, and there's stricter stay-at-home orders and around the city they say this is getting closer to be on par with the situation back in april when shanghai was

under its brutal lockdown. there has been some good news coming outof china's iphone city, and they say the covid places are falling there and the local media are saying the supplier of the iphone facility has been able to get closer to their goal of trying to hire 100,000 workers to make sure they get that plant fully running, guys. >> eunice, i guess one silver lining is that for the u.s., in terms of the impact on the u.s. of china's lockdowns, you know, goods have already left china and they are across the ocean and in warehouses for the holiday season what is the next critical time period where it will be important for china to be reopened once again? >> reporter: i think people are thinking it's important for it to be reopened just generally, but from a chinese perspective they are trying to get over the hump of not only the christmas

season but looking forward to the lunar new year holiday and beyond right now i don't think that a lot of manufacturers are looking at one specific situation, but they are looking as to how much longer they can deal with this overarching zero covid policy, and all the kind of confusion and uncertainty that the reopening has created in the stop and starting and just the conflict of all the messaging, and then how that kind of plays out and creates more uncertainty for their businesses going forward well into next year. >> yoothank you from beijing morgan stanley's mike wilson is going to be with us and talking about the markets, and why he's expecting a deep decline in inflation by the end of the year. and a check on the markets,

nasdaq was in the red and ghrning around about 10 points hier we're coming right back after this what if “just an idea” could become a family tradition? this is financial security. and lincoln financial solutions will help you get there. as you plan, protect and retire. ♪ the first time your sales reached 100k was also the first time you hit this note... ( screams in joy) save 20% with the lowest transaction fees and keep more of what you make.

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2% and joining us is morgan stanley's, mike wilson you still have not provided us with a new head shot that is circa 2000 i don't know if you have a monitor, and because you have not, i have decided i will use this from here on out when i am interviewing you there. you are going to be interviewed by me, joe kernen. >> you look good, joe. >> that's how i feel like i look from where i behind where i am sitting, these guys -- >> i say, that's great, joe. >> if morgan stanley won't send us a new one, i am going to start doing that you know you have a lot to say today, but we are wasting time, but this is "squawk box.

a new era, and i am fascinated, an era where we go back to what we were most used to in terms of economic cycles. we have been in 8 to 10 year economic cycles where the fed could go to zero you think inflation drops but then stays in a position where it could go up again on short notice that's going to be the new normal for you, and that makes things very different to try and plan out >> that's exactly right, joe we talked about this even prior to covid, right. we said we were going to be ending financial repression in the next session, and then the pandemic provided the perfect setup for that because the fiscal stimulus got blown out and that's what led to the inflation boom this is where we have a different view from our peers because we don't think it's the 70s but it's the 40s, and the

whole inflation as opposed to a cost push, and therefore inflation can't ebb as quickly as it flows when demand falls by the wayside, and we just go back to melton friedman's initial quote. we were 22% growth, and now down to 2.5 it's a different environment we have been operating in than the last 30 years, when everything was so predictable, and we are going into an environment where an economic volatility will be extreme, and some companies will do a good job and some won't

it creates a dispersion across the stock market, quite frankly. >> it's not bear isish, i would think. nobody likes inflation, and nobody likes deflation, and that's even worse. the stock market does well, and it might be the best asset to have with a moderate inflation 2% is perfect, i guess, but if % and 4% in boom periods, that seems like you would get bullish on the stock market, and you think we will hit bottom early to next year >> i think i would extend that range, probably not 2 to 4, but more like 1-6, it's a big range. companies over earned, and

somewhat in excess demand, and companies had extraordinary pricing power and had tremendous operating margins. now we are seeing the opposite of that and costs are increasing more than the end price components a negative operating leverage. you have to remember, the other side of that will be another boom so as bearish as we are, we are more bullish in 2024 based on that thesis. we don't have a crystal ball but we have been talking about this for several years and we think it has been playing out, and you are exactly right, if you understand this -- by the way, you have to agree with it, and if you understand it it would be more profitable for investors to be more tactical in the swings around the economic trading, and that's how we will trade it and we are psycho analysts, and it's a sweet spot for us in how we manage money

>> you have taken anything off the table in terms of s&p? is that because you changed your view on how hard the landing will be or whether it will be hard at all? i assume 3000 could be the outlier, but do you think we could still see 3400, and then are you bullish -- >> it would be negative across theboard, and in october we pivoted to a more tactical bullish view, and i don't think it's so much about the index anymore, and everybody is infatuated with the s&p 500 targets, and one of the most bullish things we see going

forward is it's not going to be a stock market of ten stocks anymore, right it's going to be more opportunities, more democratic across the stockmarket, and that doesn't mean it will be easy but there will be more participants, and it's the beginning of this new era, once again, and unfortunately at the s&p level, we see low 3000s before the bear market is over >> that's significant. you have mike on -- >> yeah, i do have a mic on. >> you have mike -- >> no, i have mike on the show, yes. i thought you were pointing to me if i wanted to ask a question no, i have him on. >> you don't shame him on your show >> no, we don't do that nonsense i think michael looks great now and in his picture --

>> you said he looks closer to his picture than i do in mine, which is cruel >> are we going to be paying $5 for a bag of lays? embedded in that question, are we going to be in an amazing expa expansionary margin at the same time >> the market has been paying up for companies that can do a good job of costs, and packaging is a part of that and what you just mentioned, that's how they manage margins companies that get ahead of it and figure it out can take advantage of the price swings. i don't think we will see prices come back. remember, inflation is about the rate of change on inflation. we are not looking for negative prices, we are looking for a smaller rate of change now, some areas like in consumer goods and in housing where areas

got crazy, prices will be higher, and we're going into a higher priced environment. that's part of the new regime. and that's going to be with us the two areas where we think pricing will be sticky is labor and energy we could have more cost push inflation, and that's going to be hard to extinguish. but in goods and in areas over consumption, that's where we think the prices will come down the most >> thank you, mike character lines imply wisdom, i think, and i don't think you are as good on that previous shot. i remember i used to differ with you on some of your outlooks back then, and i think he's gotten much wiser. i don't think this is a negative thing. >> one advantage of getting older -- >> yeah, it's wisdom >> i definitely feel it. thank you, mike. >> thank you >> if you had three hours on

your show at night, would you just do endless pops and drops >> i have not pops and drops in, like, a decade >> you don't do that on "fast money. >> no. thanks for watching. moving on, bob iger is getting to work, and daniels will be leading the company. we will hear from a long-time executive, tom rogers. and then what to expect from the biggest chapter 11 filing ever "squawk box" will be right back. for $1,200? ga-a-a-ap! did you say "gap"? yeah, he did. he's talking about expenses that health insurance doesn't cover. ga-a-a-ap! uh-uh. aflac! that's why there's aflac. it pays you money to help close that gap. aflac, huh? don't tell me he high stepping. af-lac, af-lac! he stole my move!

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box" this morning, thanksgiving just a couple days away and the holiday travel surge is on what to expect at the airport and what a big season it's going to be for the airlines we will talk about it all. and zoom shares weaker than expected after the guidance. and the company's ceo in the next half hour stay tuned you are tcngwahi "squawk box," and this is cnbc

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its quarterly numbers. it adjusted from 2.21 consensus. and sales are up 6.5%, and

analysts expected a decline so we are seeing a 7.5% jump premarket. andrew iger taking back that reigns at disney, and the company's head of media and entertainment joins us right now tom rogers, former cable president, and also a man who helped birth this network, cnbc, and claire atkinson, an insiders media correspondent. good morning to both of you. tom, i have been wanting to have this conversation since the news broke. what did you think when you first heard it >> well, when i first heard it, the first thing i thought was this was avoidable i think they had the right candidate from the beginning with somebody who knew media and new streaming and knew how to

enhance everything and make deals, and i was surprised at the choice when it came. i can understand how it can help stabilize disney i think disney investors got way ahead of themselves in terms of the disney story, particularly not taking into account the precipitous decline of the legacy business and what that meant for the overall value of disney i think iger already owned up to the fact that the legacy business is going to fall off a precipice, as he says, and it's going to be pushed and not sure when but he said it will happen. people understand what it will take to create the value to make up for that is something that he is, at least, clearly put on the table. the question is what moves he has to make to make up for the value of the legacy business decline. i think he has some decisions right in front of him, particularly with respect to

hulu will be key >> i want to get to those moves and the hulu question in a moment, but claire you have been reporting on this literally 24/7 for the last 48 hours. what are you hearing inside the mouse house? >> the good king is back, and folks are generally happy that bob is back in charge and things are as they should be, and that's not everybody inside the company, and some people are absolutely appalled at what has happened for the most part, holilywood ad wall street are cheering and how are is going to fix things as you know, andrew, big media is in a bit of a tailspin right now, and bob iger referred to that in a conversation recently. it's not going to be an easy job. there are layoffs everywhere

somebody said to me yesterday, though, this is a moment of sunshine the democrats did well -- better than expected in the midterms, and bob iger is back, and that's viewed as a ray of sunshine for folks in hollywood, at least >> i will try and keep the politics out of it, but tom, help us, though, on these various chess pieces you mentioned hulu, and people talk about espn, and we talk about whether you need to spend or sell any of those assets, and do you try to do a merger like a larger player like a netflix, and do you try to sell the entirety of the thing to apple in the end this is what is on the board, and the question is which door do you want to go through, to mix metaphors? >> right, the reason i think the hulu issue is an important

indicator of what direction things will go, it has just been lingering and gone on too long and it's a tough decision. there are some who say sell it, and buying it, comcast out, will burden the balance sheet further. others say you have to buy it otherwise you are destined to be a much narrower kids and entertainment service without having a broader entertainment play that the assets were bought for to be able to compete with netflix, the apples and amazons of the world i will make a bold suggestion here, because i don't think the only option is buy or sell hulu and i think the broader question that answers what you just brought up, i think comcast and disney ought to consider keeping their hulu joint venture in

place, both putting all in disney plus, peacock have a single gargantuan legacy traditional streaming media service that really puts all their pieces in there. obviously if they don't put all their pieces in there and it's not exclusive, each could undermine it easily. here you have the opportunity for something that already has regulatory approval. all the chess piece mergers people talk about could run into issues both have clearance to continue to put their programming into this i think comcast would be able to answer the question of peacock being sub scale. i think it would be able to answer the question of if it was going to buy it, it's diverting resources from broadband and mobile, and there are a lot of reasons that would not happen, the animosity in the past

between the companies, and perso personality frictions. i was chairman of a & e-history for years, and it was a joint venture between several, and you had to have the incentives where it could be a growing business where the separate companies did not undermine it and people probably believe it's a far fetched notice, i think relative to the down side each have in selling the business and the upside both would get from being able to make a chess move that would really foreclose options for each of their competitors, it would be really something to consider here >> tom with a very novel and unique and maybe courageous proposal on the table. we will see if you get a call from bob or brian, that's bob iger or brian roberts, the

parent and ceo of comcast -- our network, i should say. claire, what do you think about the espn side of this and the sports view, because the other view is if have to get rid of debt and you think the sports business will get tougher and tougher, and maybe that's an asset you spend or sell? >> i don't see that. i think it's the crown jewel of the company. i think sport -- you see apple and amazon making a move on sports bob had wanted to slowly migrate some of the sports assets off and it's about digital now bob iger has the nba negotiations coming up i know that set of rights doesn't come to you until 2025, but i hear that people are having conversations now about

what transpires with that big set of rights. i am sure apple is in the mix there. i think it's critical for espn, and for warner, and tnt and turner i think it would be unusual for them to separate from efspn, and it's tightly integrated into the business bob iger, i am sure is looking across all the assets from abc to the studios and all of their output, and hulu, and thinking what do i need to keep and what do i need to let go of the streaming loss was a big surprise can you keep funding the subscriber expansion, and maintain all of these legacy linear businesses that bring in the cash at the end of the day you need that to bring in the streaming

business >> if i could just -- >> please. >> the espn question comes down to should disney concentrate on the fly wheel aspects of kids and family or will it be a broader service where sports does have value? can you imagine if disney, espn and nbc with the olympics, in one package they would soar ahead of what anybody else in the industry could put together. if you are not going to do something like that, espn's decline could be a burden going forward and they have to think about how to separate it relative to the profitability people will be looking for, particularly out of the streaming side >> all right tom, playing the role of banker this morning

we appreciate it claire, great to see you as well we look forward to talking to both of you very, very soon. joe. >> thanks, andrew. coming up, a live report from the bankruptcy court where the eft lawyers will be making the case for the largest bankruptcy ever. and then a presidential coordinator for the international energy affairs we'll be right back.

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welcome back to "squawk box. we are learning new details about sam bankman-fried and his life in the bahamas. his parents and senior executives at the failed firm bought at least 19 properties in the bahamas in the last two years worth $121 million they are said to be used as, quote, residences for key

people a spokesman for the couple told reuters they have been trying to return the company to ftx. meanwhile, a lot of crpeople trying to hear whether or not the money there has gone to money heaven >> that's the question we are here in wilmington, delaware, and we are expecting the court will begin a bankruptcy proceeding and that will begin to shed light on the questions surrounding ftx. we don't know how many creditors

there are here it begins this morning at 11:00. it will be held before judge john t. dorsey, and he already presided over a crypto bankruptcy case so he has experience in this area, which is rare. we have not seen that many of these. the question is what could we learn here how much ftx owes the creditors. it's possible it could all play out in wilmington or in new york, and there are jurisdictional issues with the bahamas in play here what they released so far today, we will get a lot of the blocking and tackling of the bankruptcy, how do they play their employees and their

vendors and how do they keep their doors open and continue to operate during bankruptcy, and we will look through the filings and listen to what the lawyers say at 11:00 to see if we get insight into just how much money is missing here and how much they have been able to lay their hands on, andrew >> when you think about the massive bankruptcies you have covered over the years, how quickly do you think it usually takes -- not before people get paid back, but before people understand what is even there? >> i think it could be a while these things can take a long time this is the beginning of what we expect to be a lengthy process we did get an indication over the weekend from the company, they put out a statement saying they have gone through and found a number of subsidiaries here, and they are viable businesses,

and there's optimism, at least, come into the hearing today there could be money under the mattress, so to speak, with this company, and we have to piece through all of this and it will be a long process. i am thinking months at this point, andrew, but your guess is as good as mine. >> from wilmington this morning, thanks joe? >> thanks, andrew. delaware is on the map, the president, and the twitter thing, and now this -- delaware. >> the place to be >> the place to be are the airlines prepared for the rush we will speak to a pilot after the break, and later the cfo of zoom joining us. the stock taking it a little on the chin today "squawk box" will be right back. finally? this is financial security. and lincoln financial solutions will help you get there. as you plan, protect and retire. ♪

just look around. as you plan, protect and retire. this digital age we're living in, it's pretty unbelievable. problem is, not everyone's fully living in it. nobody should have to take a class or fill out a medical form on public wifi with a screen the size of your hand. home internet shouldn't be a luxury. everyone should have it and now a lot more people can. so let's go. the digital age is waiting.

thanksgiving is around the corner and more than 4.5 million travelers plan to fly this holiday weekend. that is an 8% increase from last year and nearly back to pre-covid levels to look at whether the airlines are ready, let's bring in captain dennis tagger, the spokesperson representing 15,000 professional pilots. great to have you with us. >> great to be with you. >> are we in a better situation this year compared to say last year when there were pilot shortages and also shortages in air traffic control. so it really created snarls when there were delays. >> well you had the same

situation going on now but what is cooperating is mother nature. if you want to know how the flight schedule is going, take a look at your radar map on your phone. and we like what we're seeing right now. we've institutes some policies at american from the summer. we saw this coming so we have pre-plotting overtime where pilots could plan their lives around trying to get more income for thur families and help maintain a rely able airline we're operating on the brink of fatigue. the schedules are loaded up and they haven't been stress tested and our pilots are feeling it out there. but so far, so good. we're going to keep at it and our passengers know we want to get home and on our way just like they do but there is a clafrpg in the way business is done not only in the airline business but our pilots, they are looking for that same -- the world change but mine change and a work/life balance will lead to

more reliable airline and more flights out there for our passengers to fly on. >> so when you say the brink of fatigue, what does this mean for a pilot? are they working many more hours or their shifts more difficult you could give us an idea of what you're talking about. >> you have it all we have scheduled up to the legal maximum so there is very little buffer. secretary buttigieg said that we see flights up to the maximum. even if you're not up against the level maximum, i was flying the other day, very delays and we talked about whether or not we'll be able to continue safely because of our fatigue condition. it turned out we made it and it is safe. but this is an faa requirement before each flight, pilots have to sign off fit for duty and if you don't, then you can't take

the flight and we keep seeing management run ago long this barbed wire phelps and eventually you're going to get cut but we're going to defend that margin of safety and we're trying to recover our airline business the shortage of pilots that could be trained, the pipeline, the training pipeline is so jammed up right now, it is taken three months to get a pilot from being hired to get into training and another two months before they're ready to fly passengers. and in the airline business, i know we're in the thanksgiving weekend, we like what we're seeing but in the airline business the summer is tomorrow if our management team doesn't get get it's agent together, we are not flying as much as we could and should fly this summer. >> so if we have very windy conditions someplace, we have a storm someplace, that is going to throw everything out of whack. you make it sound like we're just one little weather event away from just having a flight

mere of a thanksgiving. >> that is the truth and it is not just thanksgiving. we're looking at december. we know when the snow hits, it is longer to get out of that it is the storm after that has hit the airline industry and that storm center, the generator or is in the actual planning and we've seen this this past summer and we're concerned going into the holiday they keep going for the revenue. we understand, we want to fly as many airlines as possible but when you can't fly them reliably, you create a deficit of trust everybody is wondering are we going to make it it shouldn't be that way and it doesn't have to be that way and airline pilot unions across the industry are trying to change that but their telling management our pilots want something different. that is a mark rate. but it is this work/life balance and they see neighbors that are able work-life balance we can't work remote flying the

airplane but we could get some kind of quality of life. they are scheduling us on four or five day trips now. >> we have to go thank you so much. >> thank you coming up, white house energy adviser amos hochstein gives us the latest on oil and the lockdown plus the cfo of zoom joins us to dig through that company's earnings "squawk box" will be right back. ♪ ♪ luxury exemplified. innovation electrified. with apple music seamlessly integrated.

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good morning, futures pointing slightly higher but crude oil sporting bigger gains. saudi arabia tamping down a report that opec might be about to boost out, but we're going to speak to top white house energy adviser aimos hochstein. meanwhile, a rush of retail ernst just out we'll bring you the latest and zoom shares tanking as guidance comes in light and wall street wondering if there is any pandemic level growth still in the tank for this communication company. we have a special interview ahead with the zoom cfo. the final hour of "squawk box" begins right now

♪ good morning and welcome to "squawk box" here on cnbc live from the nasdaq market site in times square. i'm joe kernen with andrew ross sorkin and melissa lee becky is off today mostly in the green across the board. the nasdaq up 36 points or so. it was lagging earlier, down triple-digits. and then treasuries which have been well behaved, the ten year and the two-year we haven't had any new data since we had those cool inflation numbers last week. we'll be waiting but not until after we gord ourselves on thanksgiving. here are some of today's top stories. more chinese cities resuming

mass testing for covid-19. and beijing closed some parks and malls and museums today. infections are nearing highs not seen since last april and that is prompting investor concerns that economic growth could lag even further and then on monday china reported more than 28,000 new local covid cases and two deaths elon musk hitting pause on the relaunch of twitter blue check mark subscription service n. a tweet musk said he's holding off until there is a high level of confidence that the company could stop impersonators. but the "wall street journal" report that layoffs included sales people even though they signed yes on a pledge that musk sent to employees asking hem to commit to hard core work or leave the company. yesterday the verge he said he's done with layoffs and recruiting engineers and people

carl icahn has a short position in game stop, the size of his bet against the soriginal meme stock is not clear but the report said he began accumulating the position two years ago. shares of game shop there morning, a quick look. maybe. maybe we won't there it is. up just a little 2% lets get over to dom chu with the stock movers. >> we have a lot of retail earnings this morning in addition to the news headlines that joe just gave you on consumers and shopping hitting in the holiday shopping season in journal so we'll start with 8.5 gain share in best buy. 200,000 shares of premarket volume after reporting better than expected profits and revenues sales growth at so-called same store sales fell less than what

analysts had forecast and maintained the holiday slash current quarter forecast and raised the full year forecast so up 8.5%. you have a drop in shares of dick's sporting goods. a volatile trade and now 2% losses roughly 85,000 shares of premarket volume this is the parent company and also golf galaxy locations and other retail brands. it reports better than expected profits an revenues as well. also better than expect same-store sales growth. dick raises the full year forecast and we'll end with a check on dollar tree. which is down roughly 2% around 40,000 shares of premarket volume down 3% also family dollar stores as well it reports top and bottom line beats, better than expected same store sales growth dollar tree did forecast full year earnings at the lower end of the priusly stated guidance as a result, shares down 3%.

so we'll keep an eye on the retail chains. back to you. >> loretta mester outlining her latest thinking on the feds fund rate. >> we're up 375 basis points on the year and right now we're at a point where we're going to enter a restrictive stance of policy and at that point i think it makes sense that wep could slow down a bit the rate of pace, the pace of increase we're still going to have to raise the funds rate, but we're at a reasonable point now where we could then sort of now be very deliberate in setting monetary policy. >> joining us now to talk about what this means for bonds and equity, mona great to have you with us. we've had a lot of fed talk. we have mester andp jeremy daily, and where do you stand on the fed or does it at this point, does it really not matter

too much in that 50 basis points is baked into the markets and the pace is likely going to slow down >> yeah, thanks, melissa look, i think the latter part of what you said probably holds true so it looks like the markets an fed are converging toward this 5 to 5.25 fed funds rate how we get there could be different. we could see 50 basis points in the december meeting followed by a couple of 25 basis points. but a couple of things are clear. one, the fed is not done raising rates which obviously has been a key source of volatility this entire year and could be so over the next few months. but the second part of the equation is their pace is becoming more gradual. so we do think that is the first step in eventually heading towards a pause in the fed funds rate and of course if these inflation figures cooperate and continue to cooperate, we could see that pause for some extended time over the next year >> what do you make of the ten-year yield, we're about 3.8% this morning and we're

approximately at the levels that we saw at end of september if i said to you, moanna, this as high as we're going to go, does that change your investing view >> i think there is a case to me bed the highs in the ten-year have been put in already we got as high as 4.25% this year and now down to 380 or so i think what is unique about this cycle moving forward is that we are in an environment where yields are not at the zero bound. in fact, a ten-year at 4% much higher than the last ten years where the ten-year averaged about 2% and in fact, in that environment, what becomes really interesting is that there is an alternative to equities and think the fixed income and bond space becomes a lot more credible in the months and even years ahead in portfolios. and so if you have a more balanced portfolio between equity and bonds but also within equities, we've seen a nice run with the value and defense parts

of the market, and that may continue into the first half of the year if yields do stabilize and start to trend lower, we could get a nice rebound in the growth parts of the market. but over a long-term period, we see more balance between value and growth as well because we're not in that environment where we were in the last ten years where yields were at the zero bound sore to long so think about the new environment where yields may come from 5% feds fund rate back to maybe 2.5, 2% over time so things to consider as we consider portfolio construction for the years ahead. >> i mean, the balance between value and growth, i think it is interesting because value is becoming a little bit harder in that there are p.e.s are higher in this environment. so how do you think about that particularly when we're talking about, if the ten-year yield is 3.8 or approximately where it is now. does that give you any sort of runway for technology at this point to be value. >> yeah. it is interesting, when we look

at the year-to-date performance now, the dow jones industrial average is down 7% or 8% year-to-date and the nasdaq is still down 28%, 29%. so there is still a are big dichotomy between the space. it has moved higher over the last few weeks in particular but we do think that at some point there will be an interesting rebound and at least some sort of relief rally happening in that tech growth space. but what we could say is it will be focused in the quality parts of technology and growth and there are secular themes, including ai, cybersecurity, and cloud and that all continues to makes sense and drivers of the economy. but as you noted, value has had a very nice run and as we head into a potential economic downturn, those defensive parts of the market may have one leg higher but we do think over the next 12 months you'll see a more balance between value and growth as some of the growth names play a

little bit of catch-up. >> so some of the growth areas that you rattled off, ai, cloud, those are the higher valuation parts of technology, mona. on top of maybe the big cap tech names you were referring to in terms of money going in. but is there a leg lower for these names still? you mentioned a leg higher for the value side of things so could there be a leg lower for these higher multiple areas of tech before we see the turn because these are the future growth areas of the economy. >> yeah, we think tech may have a little bit of still some struggle to play catch up until we get to the point where one fed can pause, and, two, inflation moves lower. so tech will have trouble to outperform in an environment over rising rates and we've seen that all year and that is a trend as rates move higher, that discount rate is higher and so all future cash flows are discounted at higher rates so the market it will suffer the most and that is trend we're

seeing until that trend pauses, stabilized, potentially moves -- reversed lower, tech will have a little bit of trouble playing catch-up but the fed will pause and we'll see the ten-year yield move from the 4% range back down to 3.5% down to a 3% range and in that move low. >> those tech and and growth markets will play catch-up so over the next 12 months it is something to think about. >> mona, thank you >> thanks, melissa happy thanksgiving. >> we have a big interview coming up after this the cfo of zoom will join us and we'll talk disney, bog iger. he's on the clock over the next two years to train his own replacement. that is a question and we're also going to talk volatility and oil a potential opening at the tap by opec and whether cheaper prices at the pump are here to stay we have presidential adviser -- energy adviser amos hom

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with no line activation fees or term contracts. saving you up to 60% a year. and it's only available to comcast business internet customers. so boost your bottom line by switching today. comcast business. powering possibilities. well, we fell in love through gaming. but now the internet lags and it throws the whole thing off. when did you first discover this lag? i signed us up for t-mobile home internet. ugh! but, we found other interests. i guess we have. [both] finch! let's go! oh yeah! it's not the same. what could you do to solve the problem? we could get xfinity? that's actually super adult of you to suggest. i can't wait to squad up. i love it when you talk nerdy to me. guy, guys, guys, we're still in session. and i don't know what the heck you're talking about. welcome back to "squawk box. there are the futures. up 117 some of the best levels of the session. for the dow and the nasdaq

up almost 40 s&p up 16. cryptocurrencies, we've seen bitcoin at around 15.7 and now above 16,000 this morning. a little bit of buying from somebody it is up 1.3%. back above 16, andrew. barely >> it is up and down up and down. meantime, let's talk about bob iger's second day on the job as the ceo again and he's announced the major move we'll get over to the west coast with julia boorstin. >> bob iger firing a top executive and announcing a restructuring when he said aims to honor and respect creativity of the heart and soul of who we are. in the content creation and distribution into separate divisions, he fired kareem daniel who ran dmed as it is called iger said that he's asked daechb

wald pan and cfo christine mccarthy to design a new structure that they say puts decision-making back in the hands of creative teams and rationalizes costs saying, quote, our goal is to have the new structure in place in the coming months, without questions elements of dmed will remain but story tells is what fuels this company and it belongs at the center of how we organize our businesses so now the businesses that iger mentions and the imperative that iger develop a successor, the one thing he failed to do in his delayed retirement plans and rosenblatt write gs investors will reasonably assume more leadership transition issues will come until proven ot otherwise. iger is showing his swift action and in naming of the executives he's shedding light on some

talent that could be fostered to succeed him. sources telling me that dana waldon could be best positioned. guys, back over to you. >> >> separate question, and i don't know, julia, if you had a chance to see this, we bob roberts trying to be matchmaker on the air in the past hour as we discussed the future of hulu and he made a provocative proposal, raej than sell or buy hulu, keep hulu and get comcast to merge peacock and the parent company of this network, into hulu and that would save -- save disney from paying too much and maybe save nbc from having to pay too much on the other side what do you think? do you think that would ever be possible >> i heard that suggestion what he was saying is that peacock and hulu should become one and together they have

everything they need to be a ad supported streaming player i don't know if legally that pass possible. right now we have this joint ownership situation with hulu in an arrangement for the two sides to figure out a deal in the next couple of years. but i think what he's talking about is merging two streaming services >> right. >> i understand that his perspective and he's right that it could create a streaming behemoth and havethat scale that is so much in focus i don't know if they'll be able to pull it off with a regulatory standpoint as too much of a merger or the fact that they already have joint ownership of hulu allow them to do that but it is a quite a interesting idea and would be able to accomplish the scale that is in the streaming wars these days. >> julia, i'm sure you'll hear more speculation and we hope you'll bring it all to us. thanks coming up, two more big

interviews you do not want to miss with presidential energy adviser amos how muchstein after the company gave weeker than expected current quarter guidance and take a look at this morning's top headlines. mazda unveiling a $10 billion electric plan, representing you have to 40% of the sales by 2030 and three democratic senators are calling for the break up of ticket master and the owner live nation if an investigation turns up any misconduct. this is after taylor swift fans confronted tech glitches and poor customer service and wait times trying to get tickets stla week don't go anywhere. much more "squawk box" straight ahead.

the early enthusiasm for autonomous vehicles is turned into caution for many investors. but one ceo still sees a path to profitability. phil lebeau joins us with a special guest. >> hey, joe, let's bring in chris irmson from the founder of aurora and one of the early advocates and developers of autonomous vehicles in this industry thanks for joining us this morning. let's be honest, this is a rough year for autonomous vehicle technology firms look at your stock is a good example of that and more than a few people are questioning

whether or not this is technology that is ready for prime time any time soon what do you say to investors >> yeah, i think it is been a rough year for every stock so i guess we're in good company there. and what is exciting, it is an incredible time for the technology, we see driverless vehicles on the road in san francisco, on the road in phoenix. we have trucks on the road today pulling loads for fedex, superfreight and other customers. by the end of 24 we expect to have trucks on the road without any drivers on board. >> and people will look at this and say we've seen the pilot vehicles whether it is yours or another firm for some time here and most are saying i don't see widespread use of autonomous vehicle technology any time soon >> and i think we're in that natural phase that every industry going through that as a period up front where the hype kind of get as head of the reality and that is where we were five years ago. and then you go through that

trough of disillusionment and we're on the other side of it now. we're seeing people being able to use these vehicles in their daily lives. you're right, it is not widespread yet, but that is going to be how these things go. >> you have $1.2 billion in liquidity. you say you have more than enough to get you into well 2024 but by the end of '24 do you expect to have your trucking for fully autonomous driving or use of it, do you actually think there are many firms that are ready to say pull out the driver, we're ready to send this load off without anybody behind the wheel? >> the reason why we're focussing on trucking because there is such a huge demand. we have some shortage of drivers today in the u.s we're short 80,000 drivers we'll be able to drive the trucks for the customers, twice as much every day will which drive up their key economics which is their revenue per

truck. we could double that and so, yeah, we see customers seeing the economic advantage of this as huge and then we expect to increase the safety of the vehicles on the the road as well which is good for all of us >> you see the development in trucking, what about in terms of you and i using autonomous vehicles whether it is for ride hailing or in some other fashion. ford just shut down their av last month and others are saying we'll have to pile in more cash before it pays off when do you see you and i going out in an autonomous drive vehicle. >> we've seen exciting announcements from others, in the people moving space. if you're in san francisco, you could use vehicles from two different companies to get around if you're in phoenix, you could get around with self-driving vehicles today so, yes, it is taken longer than some of us might have hoped but we're really seeing it start to take off and honestly, i couldn't be more confident and

more excited about where we are in the space >> so i have to put you on the spot where does that pay off and reflected in your stock price but the stock price of other av related technology firms when do investors finally say i get it and i think it is going to pay off >> yeah, i think people right now, the environment is much less about av and much more about the fed raising interest rates and inflation and we see this hit across the market i think in our space, you're going to see investors as we get to the point where our driver is ready and they could kind of have confidence that we've derisked what we think is the largest risk and we've shared some concrete milestones about our progress towards that. >> chris urmson, founder of aurora this is when you have people say it is still going to be here and have patient and still an advocate for it.

thanks for joining us this morning. andrew, back to you. >> thank you for that. fascinating interview. on the other side of this, aimos hochstein will join us prices at the pump falling we'll talk about all of it when we come back as wed head into the break you could get the best of "squawk box" called squawk pod and listen any time. we're come right back. at fidelity, your dedicated advisor will help you create a comprehensive wealth plan for your full financial picture. with the right balance of risk and reward. so you can enjoy more of...this. this is the planning effect.

welcome back to "squawk box" here on cnbc taking a check on futures now. we're set upg the second to last full trading session ahead of thanksgiving we're looking higher across the board. we saw a turn in the nasdaq in the past half hour so we're now indicating a gain of it about 3 points at the start. a bit higher at bitcoin, a risk yipper taking -- risk-taking asset measure goes higher together so we're seeing that this morning the s&p looking at 14, higher by

111. and treasuries, a fairly stable picture. we have the ten year at 3.80 and the two-year at 4.5%. crude oil this morning take a quick look prices dropped sharply yesterday on a "wall street journal" report that opec plus might increase output by 500,000 barrels a day in december. you could see we're back above 880, 159 crew rebounded when the saudi arabia and energy ministry denied the journal report stateside, and aaa said gas prices are down 11 cents a gallon in the past week. amos hochstein, president coordinator for energy affairs joins us now you're there you're there for a lot of these discussions. you probably know what is going on, am os, i don't know if you're willing to share with us what is going on so, these delegates definitely said there might be an increase.

what should we take from the saudi minister pushing back on that do you know where it stands right now on what they're going to do? >> well, good morning, joe and thanks for having me look, we're definitely not party to any opec deliberations. we're not members of opec or any organization setting prices. the president has been really focused on trying to bring prices down here in the united states specifically to consumers and that what we've been trying to do and make sure that -- i know we focus a lot on wti, the american price is down to about $80 and gasoline prices have been coming down sharply for the many weeks now, a couple of months so we're very pleased to see the prices coming down we want to make sure that oil companies both the national oil companies around the world and those here at home continue to increase production to bring prices further down. >> well we'll talk more about that but as far as palace intrigue,

and i know you know this stuff and can't tell us, but when the biden administration told the federal court judge that mbs, mohammed bin salman has sovereign immunity, that was nice and conciliatory. and there had been some acrimony between the united states and the saudis it just seems interesting that they would even, after cutting, that they would broach the possibility of cooperating right before russia, right before the cap goes maybe goes on russian oil. it is like, they're helping us out right after -- and i would say that is the right move for them because the china situation and the lockdowns. it made sense for the saudis to cut production so is there any quid pro quo behind that that we're being nicer to them and they might

cooperate? >> there is no quid pro quo. i think the decision on the immunity was a strict legal decision by the lawyers about him becoming a prime minister and the determination that was made by the lawyers. that was not done by policymakers but really just a legal one. as far as their decision to cut, we may disagree on that. i think a 2 million cut announcement at the time was -- we did not believe it was warranted. i think that prices were at about 88 or 87 when they announced that it went up to almost $100 and settled back down mostly because, you know, when you announce a cut at 2 million, what we all know is that 2 million is not going to be cut and most countries are not in a position to cut production and definitely not cut exports so i think that where their deliberations are, are not expected to the policy making and they're going to have to make their own decisions part of the stress in the market

is when you have the monthly pal is intrigues every month, every couple of months versus what they used to do which is meet a lot less frequently. but we're, again, i'm not going to get into the palace intrigue there as you called it but focus on bringing the prices down and do what we have to do here at home. >> there has been some stuff swirling around, more palace intrigue about a permitting bill maybe during the lame-duck session or make next year republicans want to do it. what is the calculus there i don't even know who wants to do it and getting in the way of doing it does the biden administration, you just said we want to produce as much as we can. does the president want to get a permitting reform done and would that happen now that the republicans have the house >> well, you know, the republicans will have the house obviously next year after they come back from the lame duck is still in democratic --

>> anything before then? >> look, i don't know. i think we've been trying to work with congress this whole time to make sure that we could get permitting reform to make sense to pass. that is -- the president said that in his remarks a couple -- about a month ago. we need it not for just what we're discussing here today but as we look at renewal energy, we have some extraordinarily long wait times and delays in being able to get a project approved so i think there is agreement that we need this and congress needs to see if they could work together and to come up with a proposal that would make sense and be able to pass and that would still maintain the president's support. that is very difficult to do. >> both sides could claim a victory. it seems like something that both sides kind of want to do. although, i think senator manchin got mad about the coal comments

a lot of palace intrigue that is what we like to talk about. i know you know all of this stuff. do you know who does that gas powered leaf blower every time you and jared bernstein is on. is that done deliberately? >> i'm starting to wonder that myself >> you must have really nice landscaping. >> i got to tell you, there is a lot less palace intrigue than -- i'm sorry to disappoint. i'm for focused on the policy. >> look, joe, and you and i have had conversations, if we look at where we are today, over the arc of the last month months with inflation concerns rising, prices rising, we've been laser focused and on bringing prices down so i think the president is happy with the fact that the trajectory of prices is coming down and oil prices still higher than they should be and we need to make sure now, we have to

turn our efforts to make sure that we bring prices down but we have all of the security supply that we need for the energy system in the united states. whether it is on the oil production or natural gas. but it is also on the inputs for electric vehicles. you just had a conversation on your show. we have to have all of the inputs to the green energy future to make sure that we have those supply chain that is where we're paying attention and looking less at the palace intrigue. >> okay. so a couple of things. number one, china lockdowns and the fed raising rates and trying to orchestrate maybe a slowdown at least, whether it is a recession or not those arnt the greatest ways to lower the price of oil we've been tapping thesvr, and if we're down below $80. we're not today. we're back up. but definitely time to end that. when would you start buying back the oil to try to replenish

that what kind of price would we be talking about, amos? >> we agree with you we've been tapping the spr, that was a critical part, the releases from the spr are a critical part of bringing prices down just imagine if we had not increased supply by a million barrels a day. but today we have to be really opportunistic and look at the market where it is to see if it makes sense to do continued spr. the president would like to replenish the spr, 180, 200 barrels. and when prices reach the $70 mark than when we looking at somewhere around that range of 70, 72, 73 or below that we'll look to immediately begin to increase and to repurchase oil into the spr and that is because we need to have an spr

that is fuller than it is today for national security and economic emergencies in the future we still have 400 million barrels. that is a lot of barrels we could still manage any emergency. but looking into the future, when prices come down into the $70 range, we're looking to be buyers in the market. >> amos, i think that when the saudi as greed to the cut and opec agreed to the cut, it stung them that we criticized them for helping putin and helping russia and being on russia's side so, once this happens with the -- i'm not sure what europe and what will happen with the russian oil exports and we're going to see that over the next week play out, but do you think there is a good chance that the saudis want to push back on the notion that they were helping russia, so maybe there is a chance for some production increases, even though the saudi minister said they weren't going to do it

is there a thawing in the relationship, are things a little bit better between us and them at this point >> look, i think that the net effect of any country that, or any organization or anything that happens that raises oil prices, the net effect of that is that it helps russia's war ef effort because that is the only thing they have left in their economy. everything else is gone and under international pressure so so the only thing they have it-s oil. and when oil prices shoot higher, that helps putin war machine. i'm not looking at anyone's intentions or doubting anybody's motivations but the net effect is that it helps russia. and so that is why keeping prices stable is so important. and you're right, we're going towards december 5 where we'll have the oil ban come into effect the eu is working its way through the price cap and we're going to -- we're in discussions with them as they work on that to announce what that price range is and to get agreement in

the e.u. 27 to make sure that they could put that into effect. so i think we're going to be seeing an ability for the markets continue to have the russian barrels on it. but to mitigate the revenues that putin could get from it so as long as we're all marching in the same direction and rowing in this direction, i think we're going to be able to make sure that we have the oil that we need, and the price is did going to be at a place where it supports economic growth and that is even with the chinese lockdowns. we still have to be very mindful to make sure that we have the supply to meet -- to reach and match the global economic growth that we're hoping to see >> very good good to of you on. i get some stuff out of you. i don't know i see some palace intrigue when it is all said and done, i think there is some interesting things going on although your

answers have very very tactful and good to have you on. >> see you coming up, jim's cfo joins us in the earnings beat. who does it say to competition out there for the pandemic era darling. and do not miss investor mario gabely today on closing bell you're watching "squawk box" live at the market site in times square [phone: starting route.] technology helps us navigate to work. [phone: go straight.] but, to navigate the complexities of modern work... [phone: turn left.] ...you need more than technology. you need cdw. [phone: you have arrived.] so we'll implement cloud based microsoft modern work solutions like microsoft 365, teams and azure, so your teams can collaborate

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to the new york stock exchange jim cramer joins us now. what -- i haven't seen -- seen some interesting tweets today. some short squeezes, some best buy and other things you're noticed in the market. >> people just felt that best buy, because it is discretionary would be bad they underestimated cory barry people felt that dick's, you don't need sportsing goods and it becomes one of the situations where some managers were better than others. -- was given up tor dead so that that could bounce. so the overall tone of retails these the act opposite of tech which is disaster, continues to be disastrous. the idea that the short squeezes could occur in retail could make the session a nice pre-thanksgiving session. >> fascinating global things

that happened. china, i see your tweets about what need ts to be done there. >> they've reverse engineered the pfizer vaccine, the mrna vaccine, they have it. i don't understand why they won't give to to everybody xi is president for life and he is strong and he could wake up tomorrow and they have the ability to produce 1.4 billion vaccines so i don't know how much longer this lockdown nonsense is going to continue because it is up to him. and i think that the three desk number, i question that given the fact that we've had multiple hundreds of deaths every day even though we're pretty vaccinated so i think it is their time to recognize if they want to be a great pow. >> can you figure out what is happening with crude and -- >> we have had a future's

expiration and now it is behind us seasonally we're in a strong period for crude so we should be able to rally, maybe to mid-december. >> and you think opec, i was talking to the white house guy on -- on oil production. do you think that the saudis like us more because we said mbs has got sovereign immunity on that -- >> no. the idea that saudis is pumping more, i thought that was put out by people wanting to cover the short squeeze. >> really? >> i actually met with some of the people who are involved with this from saudi arabia and they're anxious to be able to prove that they're loyal to america without having to cut oil. >> right exactly. >> by mentioning the fact that they've been our allies for about 50 years which is true >> when you say you're helping, you're on russia's side, i think -- i don't -- they don't like that. >> no, agree i agree. but, look it is a seasonally

strong period but i don't trust enterprise enterprise software is so horrible the zoom call last night was so horrible >> we're going to talk to -- to kelly. >> i love kelly. but kelly was more negative than i would have been. that the enterprise business can't make up for the consumer business, the consumer business is bad and the enterprise business is bad. i think you could talk to her and get the straight dope about when it is going to come back. they do have a lot of cash this he could do something and they must do something >> all right excellent, thanks, jim we'll see you in a couple of minutes. >> thank you. >> we'll be right back with what we were just talking about, cfo of zoom, talking third quarter earnings

welcome back to "squawk box" this morning shares of zoom, they are under pressure the company beat analysts for profit but revenue matched current guidance the growth during the worst of the pandemic has slowed considerably first on cnbc is the cfo kelly

stecklenberg what do you have to do at this point to get that kind of growth what does that look like in your mind >> we are focusing on transitions from being a killer meetings app that everybody knows and loves to becoming a unified communications platform that serves all your collaboration needs. and we are well on our way to doing that we have zoom 1, our bundle product which saw strength in the quarter. we have an early product at zoomtopia, we introduced integrations of mail and calendar and our own mail and calendar services. so all of thistogether is creating a platform where our users and customers can spend their day. that's really what we're focused on you know, happy to talk about the results of the quarter but for the future of the company, the platform strategy

is really it >> let's dig into the platform strategy which is to say clearly, folks, and we have seen this when slack was competing with microsoft teams and the like because teams was already integrated, it made it harder for companies like a slack and the question is, can you be in the position you're in today, integrate the calendar and the email piece easier than someone else could integrate the video conferencing piece >> well, the great thing about our platform, it's very intuitive and people really love it adding on email and calendar, we are not asking them to change their service but making it easier so they don't have to do so much context shifting during the day, the toggle tax. it's great i love it. it really incorporates it so you can spend your day in zoom i spend my day in zoom of course as it is but this just increases the opportunity to make all of our customers more efficient, which we're listening to them.

and this is one of the requests we have from them. and we really hear from them they are very excited about it and then another thing you just focused on is chat we have zoom chat, a persistent chat it's something we have really been focusing on as it is an important part of our long-term strategy it creates an opportunity for customers to communicate internally and externally. and i'm excited to say we have a fortune 10 customer of ours using that product so it's really becoming a more important part of our overall portfolio strategy >> kelly, i have a question about your results and your four-year forecast which makes certain assumptions. one is that the enterprise side will grow by 20% i'm wondering what you can walk us through that gives you the confidence that big companies will increase their spend and/or add accounts in this sort of economic environment when we are seeing layoffs >> so we have two segments,

online and enterprise. our enterprise has been the growth driver over the last several years. and what we've seen is that continue we had 20 years year-over-year growth in q3 it is 50% of our business. we see strength in renewals as employers are embracing flexible work, which means they need zoom phone, zoom meetings, zoom rooms for when they do have employees in the office to make sure that is an inclusive experience for them and as we're looking forward, we have a bundle zoom 1 which provides customers an easy way to buy those products to bring it together. and we have continued to see demand there when we look forward, we see pipeline into q4 as we are planning for fy 24 expect that to continue as the flexible work is really not going away as well as -- you know, cfos like me looking for ways to consolidate vendors and

bring efficiency and the total cost of ownership really gives them that opportunity. >> so in an environment, kelly, in which employment goes to 5%, let's just say, have you put out that scenario and ran the analysis do you still see that 20% growth even in that environment how do you think about that? >> yeah. where we would see that would be in our renewals, especially with existing customers as they're coming up for renewal. are they continuing to renew the same account we have seen strength in yields even in q3, higher than internal forecasts. so it creates an opportunity to talk to customers how they do add-ons, how we offer additional services as we are looking forward, that is the way we're modeling. the headwind we have seen is in the online segment of our business a lot of it has been around fx the two ts in the beginning for the full year, we brought down

our forecast by $50 million. 14 million of that was attributed to ff we see international sales and especially in europe where the war is continuing to have an impact in our online business. >> kelly, can we talk about the future of the hybrid workplace and how much you think that persists and what that looks like you are looking for a new product called zoom spots which sounds like it will be something similar -- we had an entrepreneur on our broadcast a couple weeks ago starting a service called roam. a graphic interface for people to feel like they're in the office and to be able to have those moments. it sounds like you're doing something similar. but what does that look like to you long term as a franchise is that something that becomes an add-on product that people pay more for are all these new efforts an effort to prevent churn? >> so we believe flexible work

is here to stay. and spots is designed exactly for people like me who work outside the office i'm here in texas today. it creates an opportunity for me to drop in and have those experiences like i would if i were in the office going into the kitchen, for example and it gives you presence notifications. so you can see who is there, who might be relevant or someone you meet, oh, hey, i need to talk to that person today. that's the idea around spots we hear from our employees and customers, we have all figured out how to work remotely that's clear by now. so it's how do you continue to create that connection and inclusivity which is really, really important >> right >> and, you know, different services we have talked about. some are definitely meant to improve retention. some bring more value and we do have a price attached to them. it just varies on the specific feature and/or product >> fair enough kelly steckelberg, see you on

zoom next time this is where things stand dow 150 points higher. nasdaq up 50 points. s&p 500 up about 20 points melissa, lee, you made it through the two of us. it worked out. stkphreut was my pleasure. >> joe, see you, tomorrow my friend "squawk on the street" begins right now. good tuesday morning welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber china is on watch as covid cases surge over there and restrictions resume. our road map begins with tech is no good. down 30% since the record high >> plus, disney's cost-cutting strategies no