taking a hit up to $1.3 billion if it is unable to sell the inventory of yeezy products. ye i don't know i don't care lyft shares plummeting after the company forecast fell short. you have to think uber is winning. how else do you read it? >> no other way. >> it is friday, february 10th, 2023 "squawk box" begins right now. good morning welcome to "squawk box" here on cnbc we are live at the nasdaq market site in times square i'm rebecca quick along with joe kernen and andrew ross sorkin.

it is friday what a week it has been. let's see where things stand for the u.s. equities. you check out red arrows across the board. modest declines. we have seen improvement in the last hour. dow figutures off 62. nasdaq down 104. this comes after stocks were down in yesterday's session. in fact, the dow lost 250 nasdaq down 1% you are now talking, i believe, about four of five days for declines for the market. treasury yields are taking a look at the 10-year treasury at 3.69%. yields are picking up. 2-year treasury above 4.511%. breaking overnight japan yen whip sawed against the

dollar kazuo ueda will be appointed as the next governor of bank of japan. ueda would replace the current governor kuroda who has held that role since 2013 ueda had been not considered a leading candidate, but the current deputy governor was approached for the job and turned it down ueda said no decision has been made, but made dovish comments when asked how he would conduct monetary policy. he is seen as a hawk we will continue to watch this you will see the steep move of the dollar against the yen down .50%. let's talk adidas. it could lose $1.3 billion in revenue in 2023 if it is unable to sell existing yeezy stock the profit hit could scrap the partnership with ye in october

after he made the series of anti-semitic comments. adidas is assessing what to do with the inventory with options of repurposing the brand or writing off the brand entirely the company issued a dire forecast it expects sales to sink at the high single digit in 2023. it will expect growth of 4%. i'm curious for the folks in the audience and able here if you are a ddidas, do you repurpose? >> the joe sneaker >> do people buy it? that is the question i was having a conversation with my son about this. if a sneaker was available and you know it is a yeezy sneaker, but it's not >> how do they change it

>> put a patch over the side of the name. >> other than the brand, is there anything special about the sneaker other than the yeezy sneaker? they have flubber in the sole? son of flubber are they amazing shoes >> it is the quality >> i want a yeezy sneaker, but i am not supposed to have a yeezy sneaker because he is canceled this is actually a yeezy sneaker and it is not sold any more. that's messed up is it a better sneaker or just a yeezy? now he has been canceled, you don't want him unless you do also you are a bad boy with a

yeezy sneaker. >> i saw a promo for a film with nike and chase for michael jordan and they came up with air jordan there is a lot that goes into the marketing and decisions and branding if th in that case, they made it seem like it was the design of the shoe i don't know if that is carried out with every shoe. a lot of decisions go into it. i had no idea that adidas was so reliant on ye for any of the stuff. it is a cautionary tale. gap got out in time before the deep collaboration with him. >> what are you looking at over there? >> you don't want to know. >> what is it? >> nothing you don't want to know >> now we do want to know. let's talk lyft. >> posted revenue of $1.18

billion. it will be short of the $1.08 billion. the guidance is the result of sea seasonality and lower prices check out shares of uber, by contrast, reported record earnings on wednesday. >> and that stock took off after earnings. >> clearly uber is winning the other thing i would say is this could get dangerous lyft will keep prices low. the airlines always said you are only as smart as your dumbest competitor if they are under pricing things, it will be hard to get pricing power. >> just getting a ride somewhere. uber is doing well with uber eats >> andrew, how is it different

>> i think they have more drivers. >> in certain places i think uber would argue they have more drivers -- again, specific to the place. how do they differentiate? a cultural thing >> is it run better? >> uber. is uber run better than lyft >> two companies that seem to do the same thing >> correct >> what would cause uber to be doing so much better than lyft >> the argument is the app is better the communication between drivers may be better. >> i don't use it. my daughter uses it. she gets either one. >> no question >> that is why i would say -- >> how much they are giving away to the driver at any given time. all of this is in real-time. the numbers are changing

it is not always clear i was talking to a uber driver who uses lyft. sometimes you want to be on lyft in specific moments. >> at lot of people use one because they like one over the other. they will keep prices lower. that is a tougher competitor to fight. >> for a very long time, lyft had lower prices >> lyft still is the one >> the question is does that remain and how much more of the margin do they give away to the driver at the same time. >> i can't believe in my life and it is so unbelievable now. for people who don't want a car or don't drive there's a lot of liability to driving a car. especially at certain times. to be able -- >> to leave the bar. >> even when you will get there with a lyft.

it is cheaper than a black car service. for a big suv. that's probably a third or lessor l less or a quarter of the price of the limousine they are not limos black car service. lincoln town cars. >> right >> are you using uber x? >> when i have used it with the whole family you need one is that half price >> i don't know. the prices are comparable. >> no, they aren't >> if you do uber black, it is comparable coming up, we will talk about market strategy with the trading day ahead. the nasdaq on pace to break the five-week win streak my assistant --

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2.3% after the company's earnings and revenue missed estimates. it was hit by a spike in cancellations and bad weather near the end of the quarter. things improved after that that stock off 2.3%. the yelp shares are up after guidance for the fiscal year was up in the futures right now, as you can see, weak and weaker than when we started we have stephanie link joining us from hightower advisers all this seems to trace back to the number on friday and the hangover because of the fed has more work to do. i heard there are certain big investors worried about the cpi coming in hot and positioning for something bad this way coming have you heard that, steph

>> you know, hi, joe good morning i think it is not only the cpi coming in at 6.2% and ppi, by the way, but the atlanta fed wage tracker came in at 6.1% versus last month at 6.1%. people thought that number would come down. that kind of, i think, affected the market yesterday and we rolled over. people are nervous that inflation is coming down, but not fast enough. the fed still has to put their foot on the gas. >> you always come to us with ideas that work any time specific names this week that have done something to get into a place where you add positions or you already own or had good weeks? what happened this week? >> well, we should own more

disney, frankly. i think iger delivered in spades i was supportive of nelson peltz being involved because disney has lagged in the fundamentals and numbers and shareholder returns. i think that the cost cutting initiatives are really very positive i know we don't like to hear about layoffs, but positive with streamlining the company and getting better profitability if you step back, the parks numbers were amazing, right? we're just beginning to see global growth react ccelerate i think there are a lot of things that are exciting about disney i like that one a lot. >> it seems like a retrenchment story instead of growth. layoffs, reorganizing divisions. what does that say about the

overall environment? are we in -- is the s&p itself in a macro sense, in a similar position layoffs, cost cutting, retorrenti retrenchments. >> i think we are in this trading range. we have the puts and takes and cross currents going on in the overall economy. we know manufacturing is not great. we know housing probably is in a recession. i'll take the other side of housing because we are close to trough those are negative forces in the environment right now. the flip side, jobs numbers are great. non-farm and jolts jobs, wages, inflation coming

down a little bit in certain pockets. all in all, you have the puts and takes in the economy overall. we have to get through the slump. we'll get through it there are opportunities on weakness to be buying. >> gas prices are way down 38%. natural gas is down. you can go across the board. we had pepsi on yesterday. the cfo. he said inflation is as strong as it has been he hasn't seen any inflation for what that company does what is the difference why the disconnect >> well, i think there are puts and take thes there, too gasoline is down 38% still it is elevated from where it's been. natural gas down 70% mortgage rates down 13%. parts of inflation are down. wages are still high

supply chains are better, but still problematic. we are not in the all clear on inflation. that is what the fed is telling you. especially on the services part of the economy we can see it. you guys are talking about it. everybody is going out to restaurants and movie theaters and on cruises, et cetera. parts of inflation are sticky and tough. that is what the fed is focused on it's not all perfect yet, joe of the. >> rauestaurants that's the piece in the journal. finally getting able to staff completely at 100% in hotels and restaurants and other service industries once you are staffed completely, you will not have the service. this, too, will end, it seems.

i don't know >> eventually. we are a nation of spenders, joe. >> we have spent all of our stimulus checks now. that was a long time ago all of the stimulus money that went to the frauders they are running out. >> okay. >> you don't think so? i did see a great piece in the journal about doubled the deficit. we heard it is going down. the deficit doubled. still money out there, steph see you later. thank you. okay when we come back, more coming up this hour we talk about the bob iger strategy at disney and what he plans to do with hulu. don't miss the interview with gary gensler this morning after

the settlement of staking in the world of crypto. the huge impact on coinbase and so many others we will talk to him in the 8:00 hour we are coming right back >> announcer: this cnbc program is sponsored by baird. visit bairddifference.com.

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this is ge aerospace, advancing flight for future generations. ♪ welcome to a new era of flight. welcome back to "squawk box. main businesses aim to get funding from angel investors, but a small fraction of investors are black. sharon epperson is here with the initiative to create more equity and opportunity. >> good morning, andrew. we wanted to look at a program

developed by the institute for entre entrepreneurial leadership to find out how they are connecting with black investors and start-up founders. as a young doctor, she saw a better way to stop a common condition in the er. >> this does as a doctor, it empowers anyone to stop a nose bleed. >> reporter: she invested this band band-aid for the nose. getting funding for the startup has been a challenge the near george floyd was murdered in 2020, black founders got a record 16% of angel investments. up .50% from 2019. in 2021, that figure fell to just 2%. >> black companies are not getting the funding. especially when you look at black women, that is less. >> reporter: jill johnson runs a non-profit that introduces

entrepreneurs to angel investors. >> capital in the united states of america is so plentiful we have capital chasing crazy deals. it is so plentiful, but certain groups have been historically excluded from the access we need to change that >> reporter: to be an angel investor, you must be accredited with an income of over $200,000 of single or $300,000 with a spouse these investments are high risk. more than two-thirds never have a positive returned to investors. >> i believe in the companies. >> reporter: angel investor put money into the company after the pitch and later invested more. in the last two years, she invested in several startups >> i believe the companies will grow i believe they will hire people

of color that's putting capital in the hands of people of color that is addressing the gap >> reporter: through investments, the doctor has raised $1 million for the devic so far if you are interested in the startup, you can do it on your own or join an angel group being part of the group means you can pull funds and share knowledge and mitigate risk. you can find out more on cnbc.com andrew >> how do you find an angel group? >> you can go to a place like angel capital association and look for an angel group or plat fo platform find out how they work and if it works for you. realize if you are part of the group, you must be accredited

vo investor the s.e.c. has a big debate about this securities and exchange commission is considering how people are eligible. there are some that are saying it should be more restrictive. there are others saying that say if you have education about the topic. >> if you want the lottery ticket, you should get that lottery ticket >> you only need $200,000 of income or $300,000 as a married couple two-thirds of the companies never see a return >> maybe there needs to be more restrictions so people don't get hurt others are saying you need the opportunity to try this. we want to know more about it. we are learning more about it. there are angel groups aff affiliated with the alumni groups at universities and education process should count >> what does this clip do? >> it clips and stops the nose bleed. >> wow >> that's a great idea

>> i like that >> there's the worst >> they last forever >> i'm okay with that. i'm into the navage machine which we advertise have you seen the ads? it's fabulous. >> what? >> a neti pot. like a neti pot with a suction it's fabulous. >> the common thing that people come into the er with. you don't want to go to the er for a nose bleed >> people still go >> disgusting one for the ear cleaning the guy looks like he is turning into the werewolf. i have to see that he is sticking it in his ear. >> how did we get here >> the advertising dollars that's how we got here. >> see you later when we come back, motorola solutions.

ceo greg brown joins us to talk about the economy and numbers which were better than expected. during february, we are celebrating black heritage with the cnbc teammates and leaders here is our cnbc senior field producer >> i'm the product of the black mom who was born in the south and raise in the midwest afro latino dad who came here with big dreams and bigger determination to fulfill them. i'm the example of the richland escape that is black heritage and culture. we share a common bond of lived experiences in the united states and especially our commitment to making sure that the generations that come after us have more opportunities than we did. >> announcer: your money is sponsored by mass mutual protecting what matters most since 1851

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good morning welcome back to "squawk box" here on cnbc we are live at the nasdaq market

site in times square dow off 122 points nasdaq looking to open down at 134 points fourth quarter results are out for motorola the public safety and security company beat expectations on the top and bottom line. for a closer look, let's bring in the chairman and ceo greg brown. greg, it has been a while since we have seen you and talked about the numbers. just for context, the numbers came in at $3.60 a share the street was looking for $3.43 on average the the highest was $3.46. numbers were better than anyone and hit anticipated. >> good morning. thank you for having me back the demand of what we do is

unprecedented. we have a portfolio refresh. with the print which was higher to the revenue and backlog grew. we have extraordinary demand for public safety. what we are doing is intersection of public safety and enterprise security. if you rewind the tape, we were a radio company. we split the company we exited the smartphone business we now have the market access of $60 million. we have the back drop of arpa funding and $170 billion for education. public safety is more important, not a news flash, more than than it has ever been people and first responders want to communicate and do incident management and eyes on the scene for situational awareness. demand for all things video fixed mobile license plate recognition. it is driving and empowering a performance in the best year

ever more importantly, i think there is more room to run in 2023 and beyond. >> part is the public spending implemented. the tailwinds are the national defense authorization act. the fcc equipment act and the idea that companies at hthis point, internationally, are not trusting the chinese technology equipment as before. that makes you a good place for people to suddenly turn. >> it is here's the other good news the demand we had, i think, is largely in front of those trends you look at the arpa funding as we said on the earnings call yesterday, we believe 400 million of orders have been a result of funding. a multiyear funnel of 1 billion.

what is driving demand is the new products we're introducing much like a cell phone where you replace these every three years, in public safety, think of 13,000 private land mobile radio networks not public cellular like at&t and t-mobile and verizon they're private. in nypd and chicago pd, they refresh devices and radios the average refresh now is seven years. these newer products that we come out with have a better audio quality and more industrial strength. integrate so a police officer or first responders roams out of the territory, the connection seamlessly goes to an lte connection it is over the airsoft software

reprogramming. the issue so far is the new product release. then you see funding that extends through 2026 and you are right with the sentiment in the u.s. with the national defense authorization act and recently on monday with the fcc equipment act where the u.s. and other democracies are concerned and don't want chinese electronics or surveillance in their critical infrastructure or public safety. i think that will be a tailwind as well. a lot of momentum on our side. >> what do you tell the street at this point? if you look through what the analysts are saying, you had a lot of strong buys and a few holds. i did not see any sells on this i think they are looking at a price target of $284 on average. your stock was up 15% last year. that certainly beats what the market did overall

what do you tell the street? do you think they understand the story at this point? >> i think they are getting the story. i think we have been really good stewards of capital. you know, if you look at motorola solutions post split and we spun the smartphone business that was acquired by google and ultimately sold to lenovo since that time, we spent $15 billion on share re-purchase on $66 of a share we reduced the float in half we spent $6 billion on acquisitions quadruple the addressable market the message is as good a run as we had, but there is more to do. i think that the future is solid. the multi-year funding is solid. we talked about one of the few things washington agrees with is the bipartisan sentiment they don't want, particularly the chinese equipment, in public safety or critical

infrastructure we still, by the way, are working through ongoing supply chain challenges i hear the narrative that supply chain is better. that is consumer goods smartphone, laptop, ipad we contest against auto suppliers or industrial. that is still challenging. the lead times we see from semiconductor providers which are still largely unchanged. that is negating the growth we can achieve in 2023 and beyond i think it is setting up well. >> is the other potential down side a down turn in the economy and if there is a recession and tax revenue is not as high and they need to cut public spending, how would that impact you? >> first of all, nobody is immune i'm not suggesting we are. an article in the journal that talked about the coffers of state and local governments. they are flush as good as they have been in

years. that helps the other thing, becky, because we are 75% government and public safety and 25% enterprise in revenue composcomposition, mostf what we do is a need to have, not a nice to have that doesn't mean a recession, if it happens, doesn't compress all companies, including us. if recession comes, i like the cards we have. >> greg, you navigated activist investors coming in. jeffery and carl icahn were pushing for the spinoff when you split the company in two i know you worked closely with carl icahn yesterday, nelson peltz backed down he did it live after david faber interviewed bob iger jim cramer brought on nelson who said we're happy

i cowould like to ask about salesforce who has activists in there. what would you tell the ceos >> i would say not all activists are equal. having said that, carl icahn made me a better ceo we were several quarters away from a liquidity problem he pushed for the split. i advocated for the split pre-icahn. carl is a catalyst a catalyst for change. he was a catalyst in the boardroom. i thought he was positive. jeff ebben was a positive engagement i think activism can be good they come in and say cost structure is too high and maybe a portfolio rationalization that needs to occur buy or sell something. maybe a board governance issue

or perceive capital allocation all in all, activism in the right way is healthy the advice is when and if an activist arrives, talk to them and understand them and don't give them the heisman. including them i made the decision to settle the the proxy fight with carl icahn. i wanted carl and icahn enterprises to see what i saw. i wasn't afraid of anything. i said if you see what we see and you have the same view with full transparency of management, then we will make the same or similar capital allocation decisions. i think that is what happened. carl and his representation, whether it was meister or otherwise, it was good >> bob iger did pick up a lot of the plans. it has been interesting to

watch. >> you saw bob saying we will take $5.5 billion of cost out. we will entertain -- >> the dividend. >> by the end of the year. he was opaque on hulu. who knows what he does an activist says you are under valued there is a reason and they want action in general, i'm not opposed to that at all. >> greg, thank you really good to see you again. >> good doto see you thanks. coming up, yahoo! announces layoffs. and super bowl betting likely to hit a new record with wagers totaling around $16 billion. we'll talk to the ceo of fanduel in the 8:00 hour reminder, you are watch or listen to us live any time we do it live on the cnbc --

bill o'reilly quote years ago. so mad blast from the past.

yahoo! will layoff 20% of the work force by the end of 2023 apollo 2k3wglobal management acquired 90% of yahoo! from verizon. the company is looking to streamline the operations in the advertising unit which will see a work force reduction of 50%. yahoo! plans to shift efforts to digital ad partner taboola why is that familiar was that yesterday >> yes publishing giant news corp is planning to cut more than 1,200 positions or 5% of the work force by theend of the yea

with the weakness in the advertising and news units bad harbingers you can see a slowdown, but cause a slowdown right in the middle of something. >> we're not going slow now. we are coming back and talking bob iger's new strategy at disney and what he plans to do with hulu after the fabulous interview that david faber did yesterday and the news that nelson peltz is waving a bit of the white flag >> i was listening to it live. >> you can get squawk pod on your favorite podcast platforms and listen any time. we're coming right back. >> announcer: executive edge is

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welcome back to "squawk box. yesterday's big interview with disney's ceobob iger spoke to david faber. >> i think it is a good consumer proposition. but everything is on the table right now. i'm not going to -- i'm not going to speculate about whether we're a buyer or a seller of it, but obviously i've suggested that i'm concerned about undifferentiated general entertainment. and in the -- particularly in the competitive land scape that we're operating in and we're going to look at it very objectively. >> joining us right now is matt bel bellamy, puck's finding partner, runs a newsletter that he knows i read quite religiously matt, this is the first time we heard bob iger speak publicly

about hulu and frankly actually quite directly and it seems at least from my vantage point and i think from your vant age point, what you're writing, you think he's a seller at this point? >> yeah, it is not just that iger says everything is on the table there, it is the second part it is the fact he's looking closely at this, quote, undifferentiated general content. and that is a big shift there, because disney has spent the last four or five years building up its nonbranded, non-ip driven, adult-oriented content on hulu and even a little bit on disney plus, and what iger is saying here is he's questioning that entire proposition in an era where people are cutting back on content. he's thinking perhaps disney should be going back to its core of the more genre and ip-driven stuff. >> why wouldn't -- if you are, like, trying to rationalize, why

wouldn't you see the benefit of putting it with something else since it might not be -- it seems like that might be a better time to get it on the cheap from -- or is there a number that comcast could get from disney that would make sense to bring it in and put peacock together and rationalize all the operations it seems like it is going to have to be rolled into something else does it seem stand alone at this point, matt? >> that's the big question because as we know, disney has until 2024 where there is this -- going to be this option to sell. and what they have done is they have built up the value of hulu to the point where it would probably cause disney about $9 billion or more to buy out that third that comcast owns. so iger is -- he's either doing this, because he thinks that putting it on the table like this will generate more bidders, perhaps, for this stake, or he's

thinking perhaps this will lower the price if he's then going to go to comcast and say -- >> do you think this comes, though, with content or not and then is this -- how do you think about the fox transaction? the reason i ask is some people think -- if you were to sell hulu, you sell it as a shell, meaning literally just as the distribution sort of pipe with all the subscribers, you merge it with a peacock or paramount or whatever you want to merge it with, and -- but it doesn't come with content, maybe a license dale on the current content for a couple of years, or do you think if he were to sell it, it comes with all -- he might even just describe it as undifferentiated content >> well, that's going to be very difficult to kind of separate out the content that would or would not apply to the adult or fox-oriented content some of the content is great the simpsons, they love that on disney plus. it is a perennial winner "avatar," they love that but there is some of the other

stuff, fx and things like that, that may go with it, but, you know, any buyer of hulu is probably going to want a commitment to content for a certain period the question is how much can they claw back and how long would those deals be in order for them to fully get rid of it as a shell and that i don't think iger even knows. they're working with goldman sachs on this to figure out what the optionality is for hulu. >> let's say the buyer, what happens to the stock or the buyer knowing you're doubling down on something -- i was thinking if comcast were to say, okay, we'll take this on, i mean, don't you think the stock would probably say this -- we don't like this? even disney. i don't know if disney, given the -- >> matt's colleague just did a fascinating newsletter about peacock and the growth of peacock even the last quarter or two as a function of the fact that all of a sudden nbc started to put a lot of its best content

on the platform for the first time you're now seeing -- >> subscriber growth. >> having said that,there is the big question of are you cannibalizing -- are you cannibalizing your own business? >> are you monetizing it or just better subscriber growth >> right. >> that's the thing. peacock has had some growth, mostly from pulling back some of the content that was previously on hulu because, remember, comcast wasn't owned or hulu -- they sell that stake, but they put all their content there, they pull it over to peacock and it helped them imagine if they then were to get some of that hulu content, put those together, peacock or whatever they call it, would grow but it would be an expensive proposition to do that >> matt, thank you always great to talk to you in the morning and see your newsletter in my inbox, thanks >> hot potato nature lowers the price of what it eventually -- >> sounds like negotiating to me >> because it is like take or -- ♪

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good morning stocks coming off a losing session, and all the major averages are now on track for a losing week. this morning, we see some more red ahead. we'll tell you why.

a sharp move higher in oil this morning russia says that it plans to cut its march oil production by half a million barrels a day in protest over the recent price caps on its petro products goldman's head of commodities research jeff curry will join us with reaction to that news plus, are you ready to pay over $800 a month for an electric car or truck? we have got some new data on auto loans that may have you thinking twice the second hour of "squawk box" begins right now good morning welcome back to "squawk box" right here on cnbc we're live at the nasdaq market site in times square on this friday morning andrew ross sorkin with becky quick and joe kernen equity futures before we are set to open, we're going to open

down, dow off 130 points, s&p 500 off 25 points, the nasdaq off about 128. treasuries right now, let's show you where the treasury yields stand. ten-year note, sitting just at about -- i'm moving over here, 3.70 the two at 4.5 >> right there. >> i got many screens around to look at. >> the camera. >> oil higher this morning, russia announcing plans to reduce oil production next month. this after the western post price caps on the oil and oil products and finally crypto, we're going to talk with gary gensler about the big crypto settlement that took place bitcoin, it has fallen, we have been up over 24,000 at one point, now $21,724 >> i find myself, like, looking over there and i think that, like, no one notices but it really makes me look dishonest and shifty >> shifty. >> when you do what? >> when i look at that monitor there. >> oh. >> i'm trying to see the boards for where the markets are, i do

that, people are, like, i don't trust that guy they probably shouldn't. to dom chu, with a look at this morning's premarket movers very trustworthy very trustworthy, dom chu is >> and i trust all y'all i just do. we have the same thing over here i don't have a computer in front of me. sometimes you guys do at the desk, but i have to look at a monitor over here to see what the real time pricing is for some of these assets, so, i mean, i don't know i don't have anything to hide. i'll be transparent, because i'll try to put them up on the boards back here, producers will help me with that. the yen currency story right now. japan's yen whipsawed overnight against the dollar and the euro. major currencies following a report by nikkei that says wada would be appointed the next governor of the bank of japan. he would replace current governor kurodo who held that role since 2013. now, wada had not been

considered a leading candidate for the job, but they say the front-runner, a current deputy boj governor was appointed for the job and turned it down after the report came out, by the way, wada said no decision has yet been made, but made dovish comments when asked how he would conduct monetary policy so, there is a bit of debate about whether he's a hawk or a dove, what it does to rates in japan and the currency those shares, the currency right now, 130 yen is what it will cost you, 130.84 to buy a u.s. dollar blip plunging right now, a third of the value being shaved off, over 600,000 shares of extended hours volume the ride hailing and transportation solutions company reports quarterly results that disappointed investors a loss of 74 cents a share, not clear whether that's comparable to estimates but revenues came in above expectations. why the drop as is the case, guidance counts for a lot. current quarter revenue guidance

was below estimates. and the lower prices it charges relative to larger rival uber, shares down 32, 33% premarket and cryptocurrencies, holding in the 22,000, 23,000 range getting hit by what is seen as a crackdown by u.s. regulators on a practice known as staking, where crypto exchanges and platforms offer payments to coin holders and token holders for using those assets as part of verification processes for the blockchains that they're on. it is almost like a dividend or interest payment or something similar. that practice, i'm sure you guys are going to talk about later on with gary gensler in the 8:00 a.m. eastern time hour, when that interview will kind of go through some of those reasons why the s.e.c. settled with crypto exchange kraken on some of these staking type situations we're watching coin-based shares down 1.75, $58.57.

back over to you >> there has been a -- sort of a slow, steady decline in crypto at same time the nasdaq is down this week. it really is highly correlated we talk about that all the time. representing sort of a risk on, risk off thing, dom. >> yeah, i mean -- >> the kraken didn't help. >> by the way, coin base now down 1.75% is off the session lows so, i think a lot of folks are trying to figure out whether or not this kind of settlement between the s.e.c. and kraken over that staking practice is going to have a broader effect on coinbase itself it will be a big interview i'll be watching, guys. >> thanks, dom. >> you got it, guys. bank of america out with its latest consumer spending data. credit debit card spending year over year actually reversing the slowing growth that data had showed going from 2.2% in december to all the way back up to 5.1% in january

joining us now to talk about it is liz everett crispburg, the head of bank of america institute. liz, thank you for coming in we have been watching the data you all compiled pretty closely because we're all trying to get a figure, an idea of what the consumer is feeling right now, how strong the jobs market is. the numbers you're seeing really back up the strong jobs numbers that we got from the government last friday. but really set the market on edge because they're worried about what this means for the fed. walk us through what you're seeing in terms of consumer spending, consumer saving and what the income levels are. >> thank you for having me it is great to be here we did see acceleration of consumer spending in january debit and credit card increased by 5.1%, which you said, but that represented a turn around every month that bank of america institute, we look at the data and that includes all the proprietary data from bank of america, from our 67 million customer accounts.

and saw a couple of things that are interesting. first, income growth not only from the jobs report, but across a number of groups. and then the second thing which we looked at is the growth being funded by the income gains or is inflation really having an impact and to figure out and look at that, we looked at deposit balances are people eating up their deposit balances across all income levels, we see it is coming down, but at a slowing pace so the consumer is still in a better position than they were before the pandemic. >> we heard some officials, some bank officials who have predicted that the excess savings that the consumer has and that they had through the pandemic would run out maybe by june or july of this year. does your data show that or what is your expectation? >> i don't -- we haven't done that exact analysis, but if we look at it in an aflation adjusted basis, the low income consumer, they have 52% more median deposits than they did before the pandemic.

it would take a while for that to really run out. so the summer seems a little bit soon the other thing that is notable, the rate of decline balances is really flattening out. so, yes, it is off the peak from last april, but it is only declined by 1% >> income, higher income levels. what do you attribute that to? >> higher income levels, we saw -- talked about the -- last friday's jobs report employment is strong, but i also see income gains from minimum wage increases, so in january, almost half of the states in the united states increased their minimum wages and that's keeping up with inflation for the good part the other thing we saw, you guys have talked about this, social security in january, 8.7% increase in security payments. that's a four-decade high. all that didn't necessarily hit recipients accounts in the beginning of the month, but they knew it was coming and i think they're adjusting their spending for it. >> not everything is fantastic inflation is still pretty big

head wind for consumers too. how does that match up >> inflation is a head wind. for the lower income consumer, right? if you think about how they allocate their dollars, a lot more of it is disproportionately in food and in shelter and while we are seeing inflation come down in areas like energy, food to shelter, utilities, it is still there so there are certainly still head winds. >> the reason we faced so much attention to the data you've been putting out is because what you mentioned, 67 million americans that you are following their accounts and following what is happening on a daily basis to see what coming in and out. when you talk about numbers like this, i mean, i think these are the type of things that would concern jay powell. >> i hope he's paying attention and looking at them. i think they are things certainly to keep their eye on one thing we appreciate that we can do is share this with folks like you, folks who are watching, but also with the policymakers >> your best guess, just in terms of -- it is great news

that the consumer is healthy, great news they have more money, but probably means that they're not going to stop spending anytime soon. >> it looks like they have got fuel in the tank and they certainly are still doing it and it is -- this month in particular, it is both goods and services services in particular for the higher income consumer one other thing that was interesting that we looked at was international spending where people are using their cards outside of the country in point of sale. and not surprisingly, last month, with the lunar new year and the reopening of china, we saw big uptick in asia it will be interesting to see if that continues as well. >> liz, thank you for coming in today. >> thank you for having me >> nice to see you coming up, a deal to buy iconic financial magazine forbes, it is in jeopardy. we're going to explain why national security regulators are putting up a roadblock and the global head of commodities research are, goldman sachs, jeff currie will talk about the announcement that

russia is cutting output look at the markets as we speak, we have red arrows across the board. we're coming back right after this

welcome back to "squawk box. an $800 million deal to sell foerks to an indian billionaire

could be in jeopardy in our latest piece, our next guest says that middle eastern governments have been buying aggressively for western assets. joining us now with more on all of this, liz hoffman from the business and finance editor, columnist, writer. >> whatever you want. >> all things. what is happening here is forbes really a strategic asset, as grave an asset as it may very well be >> that's the question if you stop most people on the street with all due respect to forbes and ask them if any magazine is a strategic asset, they would say of course not it tells you two things. one is just how aggressive national security regulators are being sort of what they view the next war, one of information and propaganda, much softer forms of power from all around the world. the other is just this -- the only bipartisan issue in washington right now is this really economic hawkishness, america first nationalism is

pretty bipartisan. >> what is going to happen in the particular instance of forbes, what is the state of play >> our understanding is that they have this majority investor, an indian billionaire and there are some concerns about where his money comes from and whether that will get through the national security panel sifius they're not exempt from de novo examination this time around this guy made most of his money in russia during a period where doing that perhaps raises some question marks about his equity and who you're dealing with. he's one remaining investment in the country as far as we know. and he stepped off the board of a defense contractor back after russian invaded crimea some of this is noise, but the truth is, when you get to washington, you get in front of regulators, it doesn't matter. if there is a question, you have to fix it. >> how much of it is about this deal versus sending a signal i read your article, lots of

sources, i don't know who they are, but is somebody trying to send a broader message to the business community about who you're selling to and how washington's thinking about it >> i think that message has clearly been sent. again, the sort of action point in the story, try to ground these things in facts, the bankers are out there scrambling, calling family offices, anyone with a blue chip american name who might make this foreign investor who is currently the majority of the consortium a minority investor. >> do you think any american private equity investor or others want to be associated with this, now that this is in question >> i don't think -- i don't know why that would necessarily turn them off there is a question of do they want to own an iconic but frankly less relevant magazine that said, forbes seems to make a lot of money and it is big in asia, why you're starting to see the last buyers were from asia, and these are from the region as well that brand does really have a lot of equity -- >> most of the folks who bought

in are not classic sort of private equity or venture investors. at this point it is sort of a -- do you look at this like a trophy sort of premium -- some people are paying a premium from a classic business model perspective wouldn't pay a premium? >> i think that's right. there is some value. if marc benioff paid for "time" magazine, it is hard to argue it is still worth that. can they get someone who gets them comfortable that it will get through washington. >> separately your colleague ben, ben, who is also the co-founder of the place, semafor that is, made an argument he thinks the whole billionaire class of jeff bezoses, and the benioffs and everybody in media land doesn't -- they want to get out of media land. do you think that's true >> i think -- that piece was very important, you have to look at -- i think bezos has been

probably pretty happy with his experience at "the post. a little internally rocky, but clearly his ownership is pretty good for that institution. yeah, i don't know i think there is less value, media landscape is itself fractured. if your whole goal is to come in, buy the institution of record, there are one of those in print, maybe two, one in every medium, but just doesn't get you the influence it used to. >> except for "squawk box." >> except for "squawk box." >> there you have it liz hoffman, thank you. >> thank you for having me. >> appreciate it have a good weekend. when we come back, with the average transaction price for an ev now just under $60,000, it is not surprising that electric vehicle buyers have become comfortable with making much higher monthly payments. phil lebeau joins us with the data right after this. and at the top of the 8:00 a.m. hour, s.e.c. chair gary gensler will be our guest. he's going to join us to talk about the action taken against

kraken and crypto staking. "squawk box" will be right back. time now for today's aflac trivia question. blue ribbon sports is the original name for what publicly traded company e answer when cnbc's "squawk box" continues ga-a-a-ap! oh... hi. what's this, a hospital bill? mm-hmm. for 1,100 bucks? ga-a-a-ap! looks like your wallet may need a sling too. tell me about it. did that goat say "gap"? he's talking about expenses that health insurance doesn't cover. eh-ehh-eh! well i'm talking about the money aflac pays to help close that gap. aflac, huh? aflac! ga-a-a-ap! aflac! gap... uh-oh! that duck can motor! get help with expenses health insurance doesn't cover at... aflac! ...dot com.

now the answer to today's aflac trivia question. blue ribbon sports is the original name for what publicly traded company the answer, nike with ev cars -- ev cars, electric vehicle cars, okay, i guess different than just ev trucks, now averaging $60,000, it is no surprise what some are willing to pay monthly for a new vehicle. and phil lebeau joins us now with more. hey, phil. >> hey, joe. remember the good old days when a new car loan was, i don't know, a monthly payment of $300, maybe $350 those are quaint old days, aren't they? look at the latest data from experian showing how much of the difference is between an ev loan and an internal combustion engine vehicle this is for all of 2022, no surprise evs top 50,000.

you see the monthly payment, $869 that's compared to an internal combustion engine vehicle, new vehicle loan, the average is $651 last year when we talk with experian, we said, are people stretching these out further, they said, yeah, there is some of that, but a lot of the buyers, they have the credit to pay off these loans even earlier than most internal combustion engine loans. >> you got very prime consumers who are buying these vehicles, and you're very prime consumers do tend to take out slightly shorter loan terms but, yes, we do see loan terms that are 84, you know, 85 and 97 months, but we're also looking at a vehicle that has a lot of longevity. so, and good warranties, so a lot of times you'll see a sense of comfort with taking out these very long-term loans >> what is driving the higher priced and in some cases longer term loans for evs tesla is the king of the hill.

they sell two out of every three vehicles in this country there you see ford, kia, hyundai, volkswagen, very distant second, third and fourth place with ev scales do not expect this to change anytime soon shares of tesla, they have their investor day on march 1 st, a lot of people are wondering is this one we hear about the model two, the lower priced ev that elon musk has been talking about for a long time that might have a transaction price closer to 35, maybe $40,000? if potentially possible he could say something about that, but these longer or higher priced evs, guys, they're going to be around for a while yesterday we were talking about jd straubel who runs red wood materials. he doesn't expect it to change anytime soon he thinks for the foreseeable future, we see high ev prices, largely because you got such a shortage of the raw materials and batteries needed for the vehicles that are being built, and as we know, supply an demand

and there is not the supply of batteries at this point. >> yeah. tough to find the batteries. so, 200, again, for tesla. are we expecting any stock sales in -- you still got bills to pay, places to go, people to see. >> i get the impression, look, what are -- what do you go off of an occasional tweet from him and he's indicated he believes that twitter is in a much better state financially? so, he's not going to need to do any stock sales. so i'm not expecting it. but, you know, my guess is as good as yours or anybody else's. >> right we still -- it is a daily sort of elon story du jour firing engineers, where is my engagement down. >> the story on platform is fascinating. >> fascinating stuff you're following that for us, right, phil? you got your ear to the wall, your finger to the pulse, can

you think of any other ones? >> no. >> what did you hear on twitter? did you see the story on twitter? >> which one, andrew there is so many, literally. >> this is a story about how apparently engagement, but uniquely perhaps his own engagement had gone down and he fired an engineer because his engagement had gone down they had now put the engagement on each tweet and made that public and now there is a view that maybe by making that public, it actually made engagement go down rather than up for lots of different reasons. it was as if -- >> i saw that story. i don't know i think it is interesting. whether or not it is true, but the interesting element of all of this is how much does twitter drive what happens at tesla over the next year? i think that we went through a period where there was a correlation there. i think that tesla as it moves into the rest of '23 and '24, it

now becomes much more about production, especially here in north america, as well as when is there that mass market vehicle potentially coming cybertruck we know is coming next year. it is going to be the lower priced mass market vehicle that's going to drive volume when you get into late '24, '25. >> phil, thank you we'll see you later. >> you bet. up next, goldman sachs head of commodities research jeff currie will join us. oil jumping on russia's announced plans to cut oil output and then we're going to talk the wealth tax with congressman josh gottheimer "squawk box" will be right back. what if you were a major transit system with billions of passengers taking millions of trips every year? you aren't about to let any cyberattacks slow you down. so you partner with ibm to build a security architecture to keep your data, network, and applications protected.

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welcome back to "squawk box" this morning take a look at futures on this friday looking at the dow up 120 points the nasdaq down 120 points the s&p 500 off about 22 points, joe. >> this morning, russia says it plans to cut its march oil production by half a million barrels a day in protest over the recent price caps on its petro products crude moving higher this morning

on the news. but sort of been in a 75 to 80 range. joining us now is jeff currie, goldman sachs head of commodities strategy i like to say commodity and i saw your note, jeff, talking a lot about metals in not russia but the reopening of china and the effect it is having. can we start with how many different groups have totally different fundamentals that are called commoditys? there is oil, obviously, there is grains, there is lumber, there's metals how many have totally different characteristics so when you say commodity prices, you really are not being clear -- specific enough to be able to say what's happening to all of them how many are there in your view? >> i would say there is just two. there is energy and nonenergy. the way you think about it, and even the way they price, energy, what we call location markets,

cushing, oklahoma, because there is such a very cheap to transport, think about power really cheap to transport, but very expensive to store. so power is impossible to store except in a battery. oil is difficult to store, but pretty easy to transport through a pipeline in contrast, the metals, the nonenergy, they're very easy to store, but very difficult to transport. we need a big truck, you put it on the back and drive it around. when we think about commodities, it is just those two buckets you think how do metals price, they price in a warehouse. you think of all that stuff you said before is in that nonenergy bucket, and then oil, gas, power, coal, all of that sits in the energy bucket. >> so this is a lesson for us that we thought that we weren't -- that russia was having problems exporting its oil, and they weren't, so if they do cut, that makes a difference, right? >> yeah, i think the way to think about what's happening

there is the russian government was not collecting sufficient revenue because they were taxing off -- people know the high cost of transport and everything put a huge discount in the urals price, the russian government wasn't collecting enough revenue off of you can see this by the fact that their stabilization fund couldn't cover costs and as a result, they were selling rnb to raise cash to cover costs. in their own local press, they're going to start taxing on brent minus $20 a barrel roughly. what that's doing is taking away profits from the companies and as a result, they're likely to reduce the output and it is roughly about 500. our balances had about 600,000 barrels a day, so it is pretty much in line with our expectations. >> when -- since it is so sort of bifurcated, what is the state of commodities right now in

terms of what it is adding to global inflation have things eased in terms of -- certain things are down now, natural gas, we had pepsico on the other day and they said it is worse than ever in terms of the inflation that they're seeing in their input costs. where does it stand now? >> i -- is the fundamental picture, it is more bullish today than it was at any point since that this covid rebound. is it going to impact headline inflation? unlikely why? you need to think about oil in 2q of last year, $130 a barrel you got a long ways to go before you start to have a significant impact on inflationary pressures the way the macro community thinks about it. but that doesn't negate the fact that when you look at the underlying fundamentals, they're incredibly tight this is the way i like to think about it, what was the biggest shock last year. it wasn't russia it was china shutting down for covid reasons. you can think about, you know,

the demand collapsing in china creating spare capacity for the entire world to continue to consume commodities. now, china is going to come back over the course of the next three to six months and as they come back, they're going to eat up any of that spare capacity that was created by their drop in demand. that's going to tighten all of these markets, and let's ask this question again, in six to 12 months, it is going to be a very different question. >> so this -- there is going to be a bull cycle in commodities. >> right our conviction in the bull case has never been stronger. you have no spare capacity, in fact, investment, real investment is down across most of these markets, inventories across most of the markets with the exceptions of things like natural gas are a critically low levels, the metals, they're entirely exhausted you have no buffer to deal with

the rebound in demand that is likely to come out of china. and the outlook for economic activity in europe is stronger obviously we have seen a lot of evidence of what is happening in the u.s., so you have no buffer on supply, demand hanging in there, and you have china rebounding this is a very different environment, you know, from -- what we see historically late cycle. the reason why, china's countercyclical to us in the sense yes, the u.s. is slowing, europe is slowing, but china is going to do that china starts to power ahead, that's going to tighten up global markets. >> did you say it is not going to be just one for one reflected in inflation numbers i'm trying to figure out what the fed is going to do with this information and it is sad because, you know, it would be nice to do something for -- it is a supply-related issue you're talking about, with china coming -- well and demand. but they're going to have to attack it from the only way they know how, from trying to slow

growth. >> but the reality is the reason why they have headline inflation separated from core is their ability to impact, you know, food and fuel is very limited, commodities are global markets and really outside the purview of -- the thing, though, is even on the headline, again, think 2q last year, trading 125, $130 a barrel we're sitting $85 right now. that's a lot of runway before you start to enter into problems on the macro inflationary front. you begin to look out in 2024, late 2023, it is a whole different ball game. but at least in the very near term, these markets have run, even from the fed's perspective. >> okay. then in your view, this isn't your -- i'll ask you something that might not be something you like to forecast, the inflation readings that we're going to see based on what you just talked about will cause the fed to go

how high on the -- on fed funds? >> well, i mean, in terms of the impact, our forecast is -- this market stays under $100 a barrel until we get to the -- >> you don't have to you're sounding dovish then. >> that's what i'm saying. this market has runway to it >> like a big bull cycle, but even a big bull cycle doesn't get us back to where we were a year ago. >> the way i like to think about it, you paid the price for the bull cycle and so when we go forward right now, you know, the question is what does this market start to look like as you get to late three, fourth quarter, how tight are fundamentals if you get a stronger dollar, that acts as a tailwind. this is a perfect setup for commodities. you have a slowing u.s., a really strong china, low inventories, not a lot of spare capacity, you got the tailwind

of a weaker dollar backdrop to it, i like to point out, when was the last time we saw this setup? late '06, early '07, oil was trading at $50 a barrel, 13, 14 months later, $100 a barrel higher it is that late cycle environment you have exhausted inventories, china puts the foot on the accelerator and you really tighten up the markets rather quickly i'm not saying we're going to see a repeat of that '07 dynamic, and by the way, what really fueled the price spike in late '07 and '08, when the fed actually cut at the same time china was putting the foot on the accelerator. >> the u curve is a commodity too. you would be long bonds then >> in terms of thinking about the -- as you get to the higher commodity prices, you know, you

should start to see inflation break even, start to rise somewhat which means you would expect to -- you would want to be short in terms of the yields starting to -- >> you're not saying it is going to be reflected so maybe the fed doesn't have to be as hawkish as we're hearing. >> right i mean, the -- in terms of impacting the headline inflation, you got a long ways to go before, you know, you start to actually create that dynamic. that's why i'm saying, our price target in 4q, a lot of upside risk around that, also the fed doesn't care what happens in metals that's china's problem energy is to the u.s. as metals are to china and food is more of an issue that is the broader em space but, you know, the metals are the ones that have the real significant upside because not only do you have the rebound in china here, but you also have all that green capex going on in

places like europe, the united states, markets that are already tight, and you're likely to see production start to roll over in 2024 in copper. >> all right a lot to think about a lot to go over things all squared away in my mind good to have you on, thanks. >> great, thanks for having me. >> okay. coming up, some corporate headlines. plus, president biden's proposed billionaire tax on wealth may be dead on arrival with congress. but a growing number of states are pushing for a wealth tax on a state level. you can get the best of "squawk box" in our daily podcast. just follow squawk pod on your favorite podcast app and you can listen to us anytime we'll be right back. ♪ helping you discover untapped possibilities and relentlessly working with you to make them real. ♪

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may be dead on arrival with congress, but a growing number of states are pushing for a wealth tax on a state level. robert frank joins us right now with more. and, robert, this is pretty interesting. we already have seen a lot of billionaires move from high tax states to lower tax states this sounds lukes like a reallyd way to keep pushing those policies. >> yeah, exactly this would sort of turbocharge that migration and they're calling it fund our future it is a coalition of lawmakers from eight states all getting together to push for wealth

taxes on a state level new york, california, illinois, hawaii, they're among thestate advancing bills to tax wealth along with income. in washington state, the proposal is for an annual 1% tax on wealth over $250 million. in california, it is a 1% tax on wealth over $50 million. and 1.5% on wealth over $1 billion. new york has multiple bills. one is calling for taxing unrealized capital gains for those worth more than a billion dollars. then you've got another tax that would impose an extra fee on capital gains that would bring the combined city, state and federal capital gains tax to over 50% now, lots of these bills face pushback from the state governors, connecticut governor ned lamont wants to cut taxes on those making less than $100,000 a year when asked whether this -- all these taxes would create

migration, one of the lawmakers from washington state said, look, we haven't seen any kind of mass exodus, it is always a threat, but it hasn't happened maybe should visit miami or texas or nevada where we see lots of wealthy people go. but, andrew, this is really interesting because the democrats see they can't get itt done in washington, so maybe they can try to get it done on a state level. >> right robert, thank you for that a report we're going to get into with congressman josh gottheimer, cochair of the bipartisan problem solvers caucus good morning to you. >> good to see you >> state of affairs, what do you think the chances are, i mean, there's a couple of things going on here. there's the getting around salts, seems that it doesn't seem to be moving, and i want to get into the bigger issue of what may happen with the billionaires tax and corporate millionaire's tax. what do you think is realistic >> i think we have a shot at

restoring salt we passed it three times in the last couple of years a year ago was our last time getting ouch tht of the house salt will come back fully, which is great for states like jersey and new york the question now is if we want it to come back before the 2 1/2 years, sometime in this congress, we'll have to sit down and make a deal. we're open to have those conversations. we relaunched the salt caucus this week, including ten republican members of congress who are part of the caucus who want to restore salt when we have a four-seat majority, and ten republican members, you've got a lot of power, put aside the democrats as well. i think that's why we feel good about the fact that we can really drive a hard bargain right now. and that's where we are. >> by the way, robert frank actually put together a fascinating reporting earlier this week about a number of states where if you have an s

corporation, you have managed, actually, in the states given the way the state laws have been put into effect to get around the salt tax do you advocate for that or do you think of that as an unseemly way to solve this conundrum or problem you're trying to solve >> i'm anything for making life more affordable. anything we can do to lower taxes. you know how i feel about what they did in 2015, with the red states trying to rip ourselves up and do with well by themselves at our expense in the blue states. anything we can do to make life more affordable, we should do, including getting the deduction back fully or trying to work something out now. the key is keeping people in jersey, and that means, and jobs in jersey, and that means making life more affordable. >> congressman, what did you make of president biden's state of the union speech? and specifically, his lines

around a billionaire's tax and, you know, he talked about it broadly, 15%, reads like a buffet rule, that president obama tried to propose in 2011 of course that didn't go anywhere either. and part of the big question is, you know, once you get into the details, how something like this works. are we talking about a wealth tax or something else? >> you brought up the exact point. it's the details right now, it's a line in the state of the union the other point that was made, given it's a republican congress, any proposal like that are dead on arrival. i think we should be focusing on, a, implementing what we passed and got into law, going after tax cheats and corporate minimums we did that already. and also dealing right now with the urgent crisis, which is the debt ceiling that is front and center, that could have a huge impact on our economy, if this is not handled well in the problem solvers caucus, a group of us have been focused

around the clock, what do we do to protect the full faith and credit of the united states, and the 401(k)s and savings, this train derails and takes the country's full faith and credit with it. >> congressman, the other piece of this. we always talk about, how do you pull off a wealth tax if that's what you wanted to do or deal with unrealized gains and the like, how do you feel about thresholds for loans against quote unquote assets, which is to say that far of what we're seeing here now is people at the very very tiptop are paying lower taxes on unrealized gains in part by living off of loans against those assets which never get taxed. could you imagine a scenario where i don't know what the number would be, but some millions of dollars annually that you would take in loans that once you do that against assets that that somehow becomes

taxed? >> i've been in a lot of discussions about that the key is on all of these things, how do you effectuate them, and the details really matter you know, what i think we really need to focus on is making sure, and this is where i go back to the tax cheat piece, which i feel strongly about, you have a lot of people who are living here and not actually paying anything or getting around all the rules. you've got people who cheated and stole from the ppp funds first and foremost, we should be going after those folks, and making sure, you know, tax cheats and those who are not playing by the rules like everyone else is, we should go after them you know, and so that's really where my focus has been. i also think, again, getting back to where we started this conversation on salt and making sure that you don't have certain states living off the backs of other states, which is what's going on right now, and it's causing behavior problems. people are leaving our states

because of it. >> josh, let me ask you on that point. the salt limits are said to sunset we haven't seen anything about salt, if tit's the democrats holding all three branches, watching through the congress and the president, you know this was something that was put in place when republicans controlled it. is there any appetite, what's to say they won't just renew those salt limits anyway what do you think would actually happen >> they can try. as of where i started this, as part of the salt caucus, we have ten republicans in the house who are from salt, you know, states that really benefit from restoring the deduction. there's no way they're going to let that through the problem last time when this happened is we just didn't have the votes when trump pushed this through in 2017. the scenario is different now. and that's why actually in two and a half years if there's no action taken, they'll come back fully. >> we've got an election between now and then. >> that's why that election is so important, or one of the

reasons the election is so important. if you have enough people who care about salt, there's no way to keep this going. >> you want to lower taxes in new jersey, when you were sitting at the state of the union, did you look around and sort of shift around in your seat a little, and say i'm uncomfortable with a lot of what i'm hearing, or some things you like, some things you don't like, you got to accept it i guess you're uncomfortable with some republican stuff. >> some things i like, some things i don't like. >> for someone who likes lower taxes, that was a tough thing to watch. just one new tax after another >> there were parts of the speech where i wasn't applauding, and other parts, you know, other parts i was applauding a lot i thought the president gave a very strong speech, you know, overall, and we need to focus on making life more affordable. >> congressman, we want to thank you. appreciate ive vt ryery much have a great weekend. >> thanks for having me, guys.

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. good morning, futures pointing lower all the major averages trending for a negative week. the cryptocurrency exchange

kraken reaching an 8 figure ce settlement with the s.e.c. the agency's chair is going to be with us this morning to tell us why he decided to crack down on crypto staking. and business and the super bowl, we're going to talk about the pulse of the consumer ahead of the big game. the ceos of befanduel and domin pizza. the final hour of "squawk box" begins right now good morning, and welcome back to "squawk box" on cnbc i'm joe kernen along with becky quick and andrew ross sorkin there i am, shifty looking at those numbers. down 175 i want to try and do it from here >> that looks much better. >> yeah. now you're squinting

>> 176 nasdaq down 130. i'm just not going to hide it. i'm looking over at the numbers, and i need to do this if you want the info. down 28. thank you, that's a little bit -- whoa, now i can definitely -- i wish i could do that when we can -- you think if we evolve we can eventually have one looking that way >> lizards. >> fish can. i want to be a flounder. those are scarey, aren't they? when i eat them, i wonder about having two eyes on the same side 3.7, becky, on the ten-year. that's what's ailing equities to some extent. >> but it's because of what the expectations are for the fed the economy, the more concerns that the fed is going to continue to raise rates. >> we were at 3.3 at one point. >> meantime, let's talk about cryptocurrency because the cryptocurrency exchange kraken

is going to be forced to end its crypto staking program in the u.s. and pay a $30 million fine. the agency said kraken failed to register the program whereby investors earn a yield in exchange for locking up their tokens and allowing them to be used to facilitate transactions on the block chain it's the s.e.c.'s first crack down on stake. joining us is s.e.c. chair, garrett gensler. it's great to see you this morning. there's a phrase online where they say tell it to me like i'm 5. for those who are uninitiated into what happened here, tell it to me like i'm 5 what was kraken doing, and what was the problem that you were trying to solve? >> andrew, what kraken was doing is asking the american public for their coins, crypto tokens, and saying i'll give you a

return 4% to 21% returns, and the problem was they were not disclosing to the investing public the risks that the investing public was entering into and we have a basic bargain in the united states since the 1930s. you can take whatever risks you want, companies like kraken can offer investment contracts and investment schemes, but they have to have full, fair and truthful disclosure, and this puts the investors who watch your program in a better position that's our basic bargain they were not compliant with that basic ball. >> so how does this, though, differ, for example, from some of the other firms out there, including coinbase who offer yield products >> the labels don't matter long ago, supreme court justice marshal said this so eloquently. it's not about the labels. it's about the underlying

economics, and this really should put everyone on notice in this marketplace, whether you call it lend, whether you call it earn, whether you call it yield. whether you offer what's called an annual percentage yield, apy, that doesn't matter. if somebody's taking their tokens, and transferring it to that platform, the platform controls it, and guess what happens if they go bankrupt? you stand in line at the bankruptcy court there's a saying in crypto that says, not your keys, not your coins. so those other platforms should take note of this and seek to come into compliance, do the proper closures, and registration and the likes >> so but here's one of the big issues as i think you know, which is this staking service is going to no longer be available to customers in the u.s., but interestingly, they're going to still offer the same product internationally, abroad, outside of the united states, and so it

raises this larger policy question as to whether crypto, a, these types of products just move offshore. maybe that's what you want and that's a good thing, but then, whether what you do about the american citizens who's using vpns and also some other things to skirt around what's happening here >> we're technology neutral at the s.e.c., but we're clearly very focused on investor protection, 330 million americans are our clients. these firms, kraken knew how to register, others know how to register it's just a form on our web site they can come in, talk to our talented people and disclosure review teams, and if they want to offer staking, we're neutral, come in, register because investors need that disclosure what are you doing with the tokens are you trading against the tokens are you borrowing against the token? are you using them for your own purposes and we've seen this in

the crypto field so investors not only need that disclosure but it's the law. >> gary, i want to read you something. this is hester pearce, someone you know well, the republican commissioner of the s.e.c. >> i have great respect for my fellowcommissioner >> he disagreed with the decision. >> she >> let me read you something, using enforcement actions to tell people what the law is in an emerging industry is not an efficient or fair way of regulating, she says moreover, staking services are not uniform so one off enforcement actions and cookie cutter analysis does not cut it. a paternalistic and lazy regulator settles on a solution like this one in this settlement what is your reaction? >> the commissioner and i have a very good relationship we chat regularly and have lively policy debates, and

debates around these matters let me step it back. the s.e.c. staff is really dedicated, serve the public, work hard staff. and we have for decades used the various tools congress has given us to protect the investing public if that means somebody is breaking the law, noncompliant, we do use enforcement. where there are authorities that congress has given us, we do write regulations and we do both i would even say, if you look at the history of insider trading, a lot of what we've done around insider trading starting decades ago was through enforcement actions. this was not something new at all, all we're saying to this noncompliant, generally, largely, oncompliant industry is come in and properly follow

the law, disaggregate. register as an epidemic change, and disaggregate those hedge fund opportunities that you're taking and market making so there's a clear way to do this, and there's forms on our web site i think it's just a talking point that the industry is using. they know how to do this they are just choosing not to do it >> let me ask you, talking about clarity, and this is maybe a philosophical broader policy perspective. there's a common view that your office is using all available means effectively to keep crypto out of the mainstream financial system through enforcement, accounting rules, inspections. clearly there's not real guidance yet on custody, and this may very well be a reasonable policy choice if that's the choice.

the question is if that's not the choice, weeknight just say it publicly. >> we're using all available tools. we're talking directly to market participants we take the meetings we say this is how you comply. there's a handful of tokens that have actually registered the intermediaries the store fronts, if you wish. the casinos that people are investing in and investing at need to properly comply and disentangle these bundled products the business model they have set up is rife with conflicts, and so we have been very candid with them i've done it in multiple speeches since i came to the agency we'll continue to engage we're technology neutral, but if this field has any chance of survival and success, it's time tested rules and laws to protect the investing public, disclosure, full, fair, and

truthful disclosure, address conflicts and disaggregate these bundled businesses and don't have your hand in the customers' pocket using their funds or your own platforms. >> but in terms of the larger industry and whether the -- i mean, you even seem to suggest the larger industry may or may not survive. you know, one of the pieces of that survival to some degree, i think, has been this idea that one day there may be something like a bitcoin etf gray scale appealing the etf decision, effectively to say it can't happen is there any path that you think that specific etf or something like it could? >> i'm not going to speak about one. but let me generally say, andrew, the path forward is well trotted, whether it's large companies that you follow every day, the apples and other tech companies for the automobile

companies, manufacturing companies know how to register their offerings. the exchanges, like the new york stock exchange and nasdaq and so forth, know how to be compliant and come into registration, but big broker dealers and the small, thousands of broker dealers, the mutual funds. dare i go on we have tens of thousands of registrants that properly in good faith buy, they register, they make the proper closures. it's time for this group to do so the runway is getting awfully short. and we're here to try to protect the investing public. >> separately, while we have you. i wanted to ask about the "wall street journal" report that the s.e.c. is planning to ease up on climate disclosure rules that had earlier been proposed in reaction to some of the investor pushback what is the state of play in your mind? >> we have made a proposal about eight, ten months ago to bring some consistency and c

comparability to closures already happening. investors are making investments based on these closures. we got nearly 15,000 public comments on that proposal. it is customary, andrew, in each of our rule makings we review that, think through the economics, the legal authorities that commenters have raised and it's quite customary to make adjustments. your viewers know this, that we did something about insiders selling their stock, and we finalized in december. we adjusted from the proposal, we're taking up something next wednesday with regard to settlement cycles, this proposal to move to what's called one day settlement to two-day settlement and it's customary to make adjustments. >> how much of that reaction from investors do you think is based on the political backlash.

i want to read you, this is from patrick mchenry, recently announcing a new working group for what he calls a threat to capital markets proposed by the far left he says progressives are trying to do with american business what they already did to our public education system, using institutions to force their far left ideology on the american people their latest tool in these efforts is environmental, social and governance proposals how much of this do you think is this the political machine putting pressure on the investor class, which is then putting pressure on you? >> we're -- i like to say, we're merit neutral, whether it's about crypto or climate risks, but we're noninvestor protections neutral, capital formation neutral. it's about just in this space for us, it's about bringing consistency and comp

rehab climate risk, and investors seem to be told making decisions about this information, these clos disclosures, and it's not to us about achieving anything else but consistency comparable. >> i talked to senator mchenry. >> chair mchenry. >> exactly and he had no idea which models to use to try to assess climate risk one-year, two-year, five-year, 50-year, 100-year, nobody knows what models to use your investors don't know what models to use. you're like just searching around in a darkroom with a blindfold on it's absurd for you to try to take it upon or the agency to take it upon itself to do this >> joe, you raise a very good

point. the disclosure proposals that we made, and as i said to andrew, we regularly make adjustments from proposal to adoption, but the proposals we made were about disclosing if you have a transition plan to disclose and what that plan is. if a company doesn't have a climate transition plan, we don't have such a plan or a target some companies have targets to how to manage this and it was if you have something to disclose it, and sort of describe it, and so that the investing public has the material features of those plans, in that regard. >> okay. chair gensler, appreciate you joining us this morning. especially after this news broke, and hoping you could break it down and explain it to you. >> thank you so much >> have a great weekend. when we come back, we'll

tell you what to expect from super bowl betting this weekend. more than half of the united states population now lives in states where sports gambling is legal. the ceo of fanduel will in ujos next stay tuned, you're watching "squawk box" and this is cnbc.

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contessa brewer joins us now with a special guest contessa >> we have fanduel ceo amy howe with us dark and early this morning. it's great to have you fanduel is positioned to capitalize on so much of the super bowl excitement. you're the number one market leader across the nation for sports books, you're going into the super bowl you have a live ad happening which has garnered a lot of attention. tell me how you shore up your lead and then still try to expand >> oh, well, contessa, it is going to be a banner super bowl for us we are on track for this to be the single biggest day in fanduel's history. we think we'll take 17 million bets on the platform this year that's more than double what we had last year, and the super bowl is so significant because it is the single biggest acquisition moment of the year we'll bring maybe half a million new customers on to the platform, and this year we stepped it up. we're leading. we wanted to do something

innovative and different rob gronkowski who has been phenomenal with our kick of destiny. we're bringing recreational users on to the platform, and women. it gives us an opportunity to show why we're leading >> that's great for investors who are putting the pressure on to see there's a path to profitability, that it's something consistent you have had a profitable quarter. at the same time, what we're seeing nationally is that all of these ads are raising concern about problem gambling isn't that a real risk to the bottom line in the future? >> well, i think you have to remember, only 40% of the u.s. population right now can bet legally. that's 18 states, and so philosophically, the way we think about it, if we do responsible gaming right, that actually supports growth in the long-term, right, and i'm really proud of -- we're owned by parent company flutter and we have been leading from the front here we set a target very publicly, right, that by 2026, 50% of our

global population will be using one of our responsible gaming tools. our executive comp is tied to this, and super bowl is a great example, right, when you bring this many new user on to the platform, it's an opportunity to make sure you can educate them on how to keep this as a form of entertainment. >> your parent company has had experiences with europe cracking down in ways that hurt the bottom line because regulators say we're not having this, we're not going to have this big cultural problem 33 states have launched legal sports betting more are coming down the pike. there's a lot of speculation about texas coming on board. as an industry, should there be more attention paid to this so that the expansion can keep happening at this pace >> listen, i think you've got to find the right balance as the leader, we feel it's incumbent upon us to make sure we're setting the standard for the industry, right, which is why we're investing in those

tools. too much regulation has unintended consequence germany and sweden, some of the markets where they have been overly restricted pushes people back to the illegal market. >> the aga, the american gaming association said $16 billion would be wagered on this game on sunday a highly regarded research firm says legal sports books are going to get about a billion dollars handle that is a huge gap between what somebody's betting with you and draftkings and caesar's and bet mgm and what's going maybe to friends and books, and you know, squares, but also to offshore sites? >> yeah, i mean, i think it reinforces just how much work we have to do, right, and it's obviously for a consumer it's very confusing, and take the start state of california, a 16-year-old could sign up tomorrow and bet on one of the

legal offshore operators >> how confident are you in the tech that everything is going to go as it should with this massive volume of people by the way, you guys, this is remarkable because this is the first super bowl that's happening in a state where sports betting is legal. people can sit in the stadium and bet from their phones. is it all going to work properly >> don't jinx me, but, no, we have been testing for months we know what kind of demand and volume we're going to have the tech teams have been at this for a very long time really proud of what the organization has done. >> great to see you. thank you so much for joining me i want to remind everyone, coming up in tech check, i'll have amy's big competitor, jason robins, ceo of draftkings joining me in phoenix. a lot of fun topics coming up today, guys. andrew, i'll send it back to you. >> thank you and thank you for that conversation. we look forward to the next one as well. comi coming up on the other side of this break, ceo of domino's who

is gearing up to sell millions of miss during sunday's big game stay tuned, you're watching "squawk box" and this is cnbc. dad, we got this. we got this. we got this. we got this. we got this. yay! we got this. we got this! life is for living. we got this! let's partner for all of it. edward jones

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and absolutely nowhere to be. anheuser-busch's super bowl beer ads, they don't have ad exclusivity for the first time in decades that means commercials are on tap from heineken, crown royal, but anheuser-busch will spend more than any other company, ponying up for three minutes of national air time. lots of good analogies in there, ponying up, too. on tap >> yes, on tap and 2 million. that's how many pizzas that dominos typically sells on super bowl sunday. this year it's happening in the still inflationary environment along with continuing changes to

the u.s. labor force joining us now, ceo russell weiner it's good to have you on i'm not going to recuse myself, but we're fans, customers, very loyal for years and years. mostly my son. i know people are looking at me and saying it looks like you eat a lot of pizza it's really not me it's mostly my son what are your biggest -- let's talk super bowl to start with. it is a -- i mean, it's a really true americana, and domino's is a big part of it >> good morning, thank you so much for having me it's the big game. certainly a big game for domino's as well we'll sell 2 million pizzas on that day, and our team is practicing and we're just as ready as the teams playing in the big game. >> trying to hear all of your words, but we are having a little bit of audio. >> i don't know if the

microphone's picked up the right level. we ask every guest, i guess, about inflation, and that must be a big part of, i don't know if it keeps you up at night, but it's certainly something that any company like yours has had to try to maneuver or navigate for the past 12 months >> well, i'm sorry there are connection issues, there are on this side, too but i'll keep going, and let me know if there's any interruption i've been at domino's since 2008 when we went through the last recession and when i think about that time, we were really a one dimensional company. we were a delivery company we weren't the number one delivery company like we are today. our digital sales, over 90 countries around the world, so we're a much more multidimensional company, we're better able to deal with it than we have ever been.

>> the -- we want to have you back i hate to do this, especially with the super bowl coming up, but we're only getting every couple of words, and it's hard to understand. we'll try and get that fixed for the next time that you're on and tuesday night is domino's night, every tuesday. >> every tuesday is domino's night. >> for my son. >> see, you're the person that i'm talking about who looks over at me and judges me. >> i'm not judging >> yeah, you're judging. >> i love pizza, as you know pizza, doughnuts carbs, i just love carbs . >> it's not a vegan pizza, there is cheese on it. you have cheese on your pizza? >> i have cheese, i have pe pepperoni. >> now you're adding climate change. >> i have so much meat on my pizza you can't even see the cheese >> taco tuesday at our house

anyway. >> that's every night. >> when we come back, the latest on u.s. efforts to technologically squeeze china in the wake of the ongoing spy balloon saga former pentagon strategist robert sulng wpadiill join us. stay tuned, we'll be right back. meet jessica moore. jessica was born to care. she always had your back... like the time she spotted the neighbor kid, an approaching car, a puddle, and knew there was going to be a situation. ♪ ♪ ms. hogan's class? yeah, it's atlantis. nice. i don't think they had camels in atlantis. really? today she's a teammate at truist, the bank that starts with care when you start with care, you get a different kind of bank. conventional thinking delivers conventional results. at allspring, we break away with purpose.

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welcome back to "squawk box" on cnbc. this is the end of a relatively rough week for the stock marketings you can see the dow futures right now off by about 100 points nasdaq indicated by 86, off the worst levels we have seen earlier this morning s&p indicated off by 17 right now, and with just under an hour to go to the opening bell on wall street. we want to get to cnbc markets commentator, mike santoli to see what he's watching this morning. and maybe the answer is yields in some part that seems to be driving a lot

of things. >> for sure, becky that's been a significant change in the last week or so week to date, s&p down a percent and a half, a little more than that it's been very choppy. we did close on the weekly lows. we're in pull back mode. we have an 8% rally year to date coming into tuesday. you had a lot of gains in the short-term some of those are being cashed in at this point, it seems relatively routine remember, everybody was focused on, okay, the market broke that down trend line. we still have and it's in that zone of 3,900 on the s&p 500, if it's just a pull back to the area, if we do get there, that's not necessarily something that upsets the slightly improved trend. it's pretty delicate here's a look at the one-year treasury yield you mentioned this move in yieldings. y -- yield the market thought we had the fed figured out, where we were going to land in this one-year span we have the job report

though fed officials haven't changed their tone jay powell didn't after the jobs report it created incentive for the market, really the necessity for the market to consider, that we are no longer in the zone that the fed is coasting to one or two more hikes the data are going to change, we're going to get cpi next week we're tensed up for the possibility. also messiness at the top of the nasdaq the alphabet move has been so dramatic and a weight on the index. look at the look of alphabet relative to meta this goes back to the end of 2019 essentially right before the pandemic they were treated as the same stock on the way out tremendous amount of perceived stability. you had meta falter with sub growth and the massive spending that was completely rejected by the strategy they took their medicine, and now you see this faltering, that looks like a big top in alphabet, as people question the business model of search in the

ai world what's interesting is both of these stocks are now at precisely the same valuation, if you look at a forward pe, 18 times. slightly above 18 times, essentially where the s&p 500 is the market input is saying these are just average companies, how we're valuing them right now if you think they're better than average, that's an opportunity, they're going to have to step down their profitability, versus what history is giving you maybe that's a reason to lighten up on them further, becky. >> yeah, and mike, i have to say, just this whole risk on, risk off the idea that groewth stocks, al companies will be under more pressure because of what jay powell and company might decide to do. that seems like we turn the calendar, everybody thought, okay, everything we were worried about last year, just went away, stocks soared and people are rethinking that, since the jobs number last friday. >> to a degree, that's true. i have pointed out the tech

stocks didn't just hit a wall and leave the market lower because of what the fed was doing. you're seeing earnings estimates for these companies have been coming down very dramatically. it's not just like we're paying less for each dollar of earnings we thought we could extrapolate the profitability of the pandemic times into the future and maybe we can't do that i agree with you one of the big reasons it seems like a switch was tripped in the turn of the year, people were defensive coming into the year they didn't think the market was going to run away to the up side once it started to, they grabbed on positioning is neutral, sentiment got excited in the short-term coming into the week, and now we have to see if we may digest that for a little while, have it come off the boil. >> you believe the idea as the first week goes, the first month goes, as the first month goes, the year goes, how often does that play out? >> it plays out a large majority of the time. i don't like to put a lot into it there have been some january head fakes, especially on the downside, when you had a down

january and an up year i think tit's 78% of the time te full year is positive or february to december is positive if january is up in a given quyear, the market i up 2/3 of the time that isn't a huge edge too many variables, the sample size isn't that big. you put it in your pocket and say there are certain things that give you reason to feel it's the midterm election year, all the seasonal stuff it's not going to overcome if the fed says we have to be bad cop again. >> a good year to hope for the eagles that always works. >> it always worked right up into the '80s and then for like 40 years it's been a coin toss and we still talk about it >> yeah, hopefully the eagles will be playing the chiefs and not the guys in the stripes. >> referees. >> yeah, the officials hopefully the game will be

against the chiefs themselves instead of the officiating. >> joe's not bitter against the bengals. >> the officiating crew won't decide the outcome mike i'm fine >> you see very upset. >> did you watch i mean, andrew, i've never seen anything -- it was mind boggling. >> is this going to go nine innings? >> there you go again. >> i just don't understand the three-point shots. okay, the white house was equipped to collect intelligence signals, though president biden said in a new tv interview that he did not see the balloon as a major security breach. at the same time the white house reportedly preparing restrictions on american investment in chinese technologies that could be used in warfare "the new york times" saying those rules could be issued in two months here to talk about this, the security and economic fallout, retired u.s. air force brigadier

general robert spaulding you served at the pentagon on the national security council and now coo of the tech security firm sempra. we appreciate him joining us now. what did uyou make of president biden's sort of back and forth comments before we get into it gl it's part of the process where washington, d.c. doesn't understand how the chinese communist party does things. it's about intelligence collection the balloon program has been around for a long time they have been using it. what they tried to do this time, by pushing it across the united states while blinken was coming to china, the whole intent was psychological and more political than it was intelligence gathering. it was basically communicating to the world that china is rising and the chinese communist party, you know, is doing this right when secretary blinken is coming to china, and president biden is having the state of the union address. it was meant to be embarrassing.

>> it was a premeditated political attack on the united states it was not some kind of security breach so in that regard, it sounds like you may agree with part of what president biden was saying about it >> well, again, how are we going to respond to it it's the same thing that happened when xi went to india remember, when xi went to india, the chinese attack along the border there also we sent secretary gates to china, they debuted the j-20 this is meant to show the united states is weak and china is strong in that case, you could say that allowing to togo across the ente united states was benefitting china in terms of the messaging. >> one of the things that's happened clearly as a result of this and so much else, there's a real hawkishness almost bipartisan hawkishness on how to deal with china, but

specifically around the business community. there's a sense, increasingly that it's not that china is going to prevent american companies from doing business there, but america from preventing american businesses from doing there what do you think of that, and what do you tell american businesses that are doing business in china today? >> well, it's funny because i was talking to general dick newton prior to the russian invasion of ukraine. he asked me, are they going to invade i said absolutely i think, you know, american companies were caught off guard and lost a lot of money because of that. what we're facing here, no company wants, certainly my company doesn't want restrictions on the use of capital, but the problem is that i think if we don't get ahead of this, then we're going to get caught off guard china is going to move into china at some point. wang has been put in charge of

reunification. they're going to try to do it politically. taiwanese don't want that. we have to expect at some point, china is going to take taiwan and if we're going to be caught with our pants down, like we were with russia's invasion of ukraine, the fallout for companies is going to be a lot bigger congress needs to get ahead of this, and that's what they're trying to do. >> we have a piece of video i want to show you because i want to get your take on something we heard a few weeks ago at the world economic forum when we were there in switzerland, i asked bill ford if he worries about the potential regulations against u.s. investment in china. of course they have a big stake in bite dance which owns tiktok. here's what he had to say. >> the global investment industry is a real competitive advantage to the united states, and we have succeeded by investing in china, and sko i think -- so i think to put too many restrictions, i understand na national security, when we talk about consumer, health care,

retail, these aren't national security issue >> you agree with that or not? >> the same thing in world war ii fdr was fighting with the business community about investments in nazi germany and they were cut off when we went in world war ii. these things happen. we have entered, you have to say, with russia's invasion of ukraine, we've entered the second cold war. now, the next shoe to drop is going to be china, and i think the fact that we're not preparing for that is not something that we haven't seen in the past. this is a continuation of historical changes and it's going to happen again. >> we've got to run, but just a market question to the extent that you follow valuations and the like do you think that there is a risk premium or a risk discount built into the multinational businesses doing business in china that's appropriate today >> i don't think so because if you looked at, you know, right after the 20th party congress where xi was made emperor for

life, they got rid of zero covid. you have seen billions of dollars, you know, flowing into china, equities. i think we haven't seen a similar up tick, you know, in terms of american equities, but the fallout from china invading taiwan and the subsequent decoupling of the economies is going to be far larger, i think, have a far larger impact to the world and therefore i don't think it's priced in. >> okay. robert, we appreciate you joining us have a good weekend. enjoy the super bowl >> thank you >> thanks. coming up, jim cramer's first take on the final trading day of the week. we're going to talk to him in just a little bit as we take a look at the futures this morning, which are down. dow off 90 points. nasdaq looking to open 86 points, and the p s&500 off about 17 points. you're watching "squawk box" and this is cnbc

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let's get down to the new york stock exchange, super bowl weekend, big birthday, you know why your birthday is so important and so special to me, jim? because once again, you're older than i am. and i always look forward to those eleven months. >> big win for you it's a w for you >> those eleven months where we're not the same age and i can say, well, he's still around, so, you know, as long as you're still around, i got cover, buddy, i hope you know that. >> look, you've got the edge on me, what can i say. >> i do. let's see, so it was 55 for you? was that when you were born? that was when you were born, right? >> yes, 55 how are our children on the set there, are they okay becky and -- >> i have to tell you what you

did yesterday with nelson pelts was amazing. i was listening on cirrus and laughing out loud. >> that was the wisdom of age coming through there. >> sometimes tv, there is a magic to it, and it's just kind of hilarious magic because you're worried that he's going to listen and think bob said we too critical, and therefore, like, you know, i don't know i did not know what he was going to say that's why i think it was really interesting. he said, put me on i said, i can't just put you on. he said, put me on, i have something to say it was just a nice thing >> yeah. >> all's well that ended well. >> yeah. >> i read in a few places, and a couple places they quote nelson peltz, and it's like, they were in his room or something because i don't know where they heard it, you know what i mean >> i read that too "the journal" article didn't cite cnbc. they said they talked to him yesterday, but i noticed the citation was way down at the end

of the story on that i was listening to it live, and it was amazing amazing to watch or listen to it play out first of all, the interview with iger was fantastic and tough, and you're right, iger said some stuff that was, like, wow, he was really kind of laying into nelson peltz when you brought him on as the surprise guest at the end, it was like, what what is going to come out of his mouth next >> a surprise guest is a surprise i mean, i figured, oh no, why did bob say -- i know why nelson wants on oh, god, i just want this thing to end >> if i were to give you a majority ownership of hulu as a birthday present, would you be mad at me, or would you say, thank you? >> i would not be mad. how about some crack and rum after andrew's unbelievable interview with gary gensler?

>> i thought you wanted some crack and some rum, and i was wondering where the heck you were going with that that's all in the past >> that's the crack and rum is very good. that's what the interview was about. it couldn't have been about a bank or a company that has anything to do with anybody's money. rum is much more reliable. >> happy birthday, jim thanks we'll see inyou just a few minutes. "squawk box" will be right back.

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welcome back to "squawk box. earlier this hour, we heard from gary gensler, and he took a strong stance on the s.e.c.'s role in crypto enforcement >> the s.e.c. staff is really dedicated, served the public, work hard staff, and we have, for decades, used the various tools congress has given us to protect the investing public, and if that means somebody is breaking the law, noncompliant, we do use enforcement. where there -- where there are authorities that congress has given us, we do write regulations, and we do both.

>> it was fascinating to hear him in terms of what he's doing with kraken, but there seems to be a larger approach here with what the s.e.c. is doing similar to what jay did last time around, which is, i think there's an effort to keep crypto at bay, and the question is, does that change does it ever change? is there a tipping point and to the question we had asked him, which is, if that is the philosophy, why don't you just come out and say it? say, we're not into this >> some people were speculating that this is kind of an inrun for him to do as much as he can. >> this is without congress. >> to do what he can while congress isn't doing anything or focusing on it, to kind of make -- >> it will be interesting to see. if congress had its way, well, i don't know i don't know what congress would actually do if it ever really took this up >> we're just over a half hour away from the opening bell on wall street. we want to talk markets with sam stovall.

how are you feeling these days we're trying to get a feel on things, because obviously, markets took off at the beginning of the year. this week hasn't been so great >> hey, becky. well, i'm thinking that this week is simply a digestion phase. let's face it. the s&p composite 1500, which is basically the u.s. stock market, was up 7.3% in the fourth quarter of last year and 9.2% through february 2nd, so in four months or so, we were up more than 17% also, historically, february is the second weakest month of the year we were trading at about 19 times forward estimates for the s&p 500, which is about 12% premium to its longer term average, and also, we had the aaii poll come out, saying that bullish sentiment was at or above its historical average for the first time in 58 weeks so, i think we basically got

ahead of ourselves digestion is likely to continue a bit, but i think next week's inflation data will probably calm some nerves >> what data do we get cpi, ppi, both >> we get both of those. core up 5.4% ppi should also see a similar down trend, so i think that should at least soothe some ruffled feathers >> sam, i guess some of the big kind of question marks out there are still what happens to inflation from wages if they continue to climb. we talked to bank of america earlier this show, and they talked a little bit about how wages went up from what they're seeing from more than 65 million accounts that they're watching part of that was because minimum wage requirements went up in a lot of states, something like 30 states at the beginning of the year they pointed to the social security increase, huge increase, the biggest we've seen in over 40 years, and those things could continue to put

pressure on things if you see higher energy costs down the road, that could change the picture too, and that has to be something in the back of the collective fed head minds. >> absolutely. i think that's one of the reasons why we are continuing to get the chorus of central bankers singing about higher for longer, but also, let's remember that once these higher numbers are in, each successive number is continuing to be year over year percentages, so the expectation is that we're going to continue on the down trend, probably one of the positive aspects of the most recent employment data was the wage component, which actually was lower than anticipated, mainly because most of the jobs that had been added were from the lower-paying leisure facilities, restaurants, and service areas, so we could end up seeing that be a continuation as well. >> sam, thank you. we will watch it very closely

next week and hopefully talk to you again soon right now, let's get a final check on the markets it's friday, and we're ready for it dow futures off by about 93 points, the s&p futures down by 17, the nasdaq down by 87 as we get ready for the last opening bell of the week that does it for us today. go birds >> money line or points? >> come on >> points. i just want to take the -- >> eagles. >> go eagles make sure you join us next week. right now, it's time for "squawk on the street" bye i. when i came in, we talked about cost-cutting right away. we reorganized the company we recommitted to profitability and streaming, so where is the need >> we wish the very best to bob. his management team. the board. we will be watching. we will be rooting and the proxy fight is over. >> 24 hours since bob iger and nelson peltz joined "squk