workers you are hired on a remote basis and now the jobs are no longer remote it is friday, march 3rd, 2023. "squawk box" begins right now. good morning welcome to "squawk box" here on cnbc we are live from the nasdaq market site in times square. i'm rebecca quick along with joe kernen and andrew ross sorkin. andrew, welcome back. >> thank you nice to see you. >> where were you? where were you >> undisclosed location. >> in a bunker somewhere a hole in our hearts >> yes >> inempty seat >> you remember clint eastwood

let's check out the u.s. equity futures yesterday was a big day for the markets. the dow with the best number since february 13th. a few weeks. the dow indicated up 45 points nasdaq up 30 s&p up 9 points. treasury yields continue to be around the same levels the 10-year treasury at 4% 2-year treasury at $4.8. let's talk about the biden administration adding 28 more chinese companies on the blacklist for sharing nuclear and missile programs an th on the list is bgi among others and the china's people congress will have the annual

gdp target expected to rubber stamp xi jinping's third term as president. and they will review a reform plan they did not provide many details, but it would include changes to finance and tech and increase the party presence in non-state owned business a lot to watch there especially as what appears to be a continuing, not growing con conflict with the u.s. and china. analysts from jpmorgan chase expect it to conclude on march 17th based on prior years. we will talk more with kyle bass at 8:30 a.m. stocks to watch. shares of hp enterprise are higher earnings of 63 cents a share above the estimate of 54 the company raised full year guidance sales of computing and a.i. came

in at $1 billion that was up 34% year over year ceo anthony neri will be on at 10:45 a.m. shares of enterprise c3.a.i. are surging. that was better than the loss analysts were expecting. guidance for the quarter was above consensus. the ceo said they are seeing tailwinds from improved, in his words, business optimism, and increased interest in applying a.i. to a number of applications in the broadening set of industries how many times a year did we say a.i. per show? >> less frequently than vix. >> zero. >> we used to talk about a.i chatgpt. >> now you throw it out like meta

>> now it is dot-com >> now really right at the very early stages i wonder if it explodes. now we hit and above stall speed. it is starting to take off it will not come back down is it like that? a year from now? >> it will be integrated into everything i have been surprised it has been integrated because we weren't talking about it i think it gets more and more integrated >> if you picked one, it would be a good thing to ask someone p w -- someone who is really smart. if you ask the one investment or stock that would evenncompass al things a.i.? >>cramer said nvidia they all have to use nvidia chips. he has been talking about that. >> that's a good one

find different people with different ideas. you can't buy anything i don't know i care. it would be nice to know >> maybe we can tell our audience and help them that would be a novel concept. let's tell the audience of something else shares of zscaler are down after earnings and revenue were above estimates that the street was looking for, but the billings in the quarter have slowed. the ceo echoed comments from other tech companies saying customers have been more reluctant to spend results in delays and signing deals that stock down 12% right now. shares of dell jumping after the company reported earnings and revenue that beat expectation. stock swung to a decline after the guidance on the quarter disappointed the street. the quarter relvenue is expecte to be down 12% to 15% year over

year they will announce cfo is retiring after 26 years with the company. the current comptroller willing become cfo at the end of the year. now to crypto regulation new report from nbc news that republican lawmakers sparring with the s.e.c. over how to see digital assets patrick mchenry and cynthia lummis sent a letter to the s.e.c. to talk about customer crypto assets. the accounting rule requires banks and credit unions and others to place digital assets on the balance sheets to bring about a massive charge it would prevent entities from engaging in asset custody. i don't understand

i think you want to value the digital assets and want them to count if you want risk against them the idea you were supposed to pretend there is no risk doesn't make sense. >> risk overnight with bitcoin down a lot it is down 5%. is that a lot? it seems like a lot. >> how high? >> it was 24 trying to get above 25 24 and change. then for a week at 25. >> there you go. there's the chart. it is up sharply since january >> if we looked at a weekly chart. let's look at a week it is flat lining. whoa if you in a plane and that happens -- >> you sit up and take notice. >> you may have a concern after you hit the ceiling.

that happened. scary. >> to you? >> no, no, no. it happened to some people recently on a flight maybe matthew mcconaughey was on it from austin to frankfurt which had to be diverted to the d.c. airport >> the virgin plane had to be rerouted with the battery in the ove overhead >> the pictures of the mess that can cause with everything on the plane. some people were injured, i think. the turbulence was for about 20 or 30 minutes from 37,000 feet i don't know i would be a sponge at that point. when we come back, it has been a busy year for activist investors. the latest move is dan loeb

investing in chip maker amd. we will talk more about this after the break. later, we talk travel demand and airline ticket prices with the ceo of priceline you are watching "squawk box" and this is cnbc >> announcer: this cnbc program is sponsored by truist wealth. where meaningful relationships matter most. can they help us improve our digital experience? absolutely. they've invested over $2 billion in tech. that could really help us manage inventory. and save us a ton of dough. then let's take back our market share. checkmate, chess heads. girls, i said “bedtime”!

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i screwed up. mhm. safer and more sustainable performance. i got us t-mobile home internet. now cell phone users have priority over us. and your marriage survived that? you can almost feel the drag when people walk by with their phones. oh i can't hear you... you're froze-- ladies, please! you put it on airplane mode when you pass our house. i was trying to work. we're workin' it too. yeah! work it girl! woo! i want to hear you say it out loud. well, i could switch us to xfinity. those smiles. that's why i do what i do. that and the paycheck. thirdpoint's dan loeb is

taking a stake in amd. sources said loeb made the bet when the shares were under pressure it guided for a 10% sales decline in the current quarter loeb previously owned the stake in intel, but he has been out of that stake for a while pushed intel for a time to explore alternatives this is seen as a passive stake. this is different from the stakes we have seen from activist investors joining us now is axios editor michael flaherty michael, what is fast ncinatings the activist investors dow like disney and salesforce don't just have one activist getting involved, but several gadflies pushing for change. what is going on >> it is the wolf pack of the

swarm. thank you, becky a few things are happening first, valuations are lower. when you look at the build up through 2021 activists by their nature are value investors. you see a lot of opportunities in the tech sector second factor is volatility has eased. more comfortable putting their money to work. the third factor is a lot of companies in the post-pandemic boom grew and expanded and became bloated you are seeing activists going after the cost structure and going after profit ability you see that campaign play out in elliott and salesforce. >> do the activists have a point? what do these companies have in common that are being targeted >> well, i would say the activists point really is that if you look at salesforce, i

think the magic figure for elliott is the 30% margin. you are not seeing elliott as an activist go after m&a play or diff divestiture. let me mention a couple of key points last year had 55 new activist investors out there. roughly 40% of all campaigns. more activists out there the stigma has worn off a bit. you are seeing more and more investors support activist thesis one captures the trend i r irina capital. portfolio manager came from elliott and went after newscorp. won big. >> the stigma has worn off and

the activists have become more successful, even when they own a very small portion of the stock. was it engine company number one and exxonmobil they owned a tiny amount of stock. it used to be you have to get a lot of people behind you that is not the case anymore why? >> that is a good point. the reason is what is playing out is the concentration of ownership. you as an activist can have a major impact with less than 1% you think about it, s&p 500, i think with the big three index funds on average of 20% of every company in the s&p 500 if you are an activist investor, all you have to do is get three investors to support your thesis and a couple of larger active managers right there, you have locked in over half the vote if you will push a proxy contest all you need is 50 plus 1. if you are a small investor, you

only need to reach out and get in your camp a handful to support your thesis. go back 20 years ago, becky, that would be 40 conversations investors would be harder for an activist to make an impact right now, you don't need a huge stake. >> salesforce is up 16% in the last five days most of that came yesterday. did they manage, has marc benioff, managed to put off the investors? we saw nelson peltz come on cnbc declare the proxy battle is off. did marc pull off the same thing? >> that is a good question you have to parse through the elliott statement. elliott applauded the changes. they were getting closer to the

30% margin elliott said they expect more changes. i think they went after in their statement with the leadership point. they have a few board members in mind benioff and salesforce have to come out with something else the march of 16th deadline is approaching. you will see it ramp up if they can't come to agreement. benioff scored a win, but not out of the woods >> you think the agreement is putting somebody on the board or promising additional changes >> good question you look at at&t in the past which is a good example. the company laid out a very specific plan. clearly did not want to have a member of elliott on the company's board. it was able to engage in a way that the investors seemed happy. it seemed to me if i read the statement from the other day, it

seems they surely want a member on the board we will see if they get it >> okay. michael, thank you >> thanks, becky okay coming up in "executive edge," we are talking about a company that hired remote workers that their jobs are no longer remote. and comptroller talking about the backlash from lawmakers. he will join us at 6:30 a.m. eastern time >> announcer: this cnbc program is sponsored by baird. visit bairddifference.com. innc designer): as a new small business owner... ...i've learned that trying to be the “cool” boss... ...is a lot harder when you're actually the “stressed” boss. inner voice (furniture maker): i know everything about my new furniture business. well, everything except... ...the whole “business” part. not anymore. with quickbooks, you can confidently manage your business.

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welcome back to "squawk box. usaa is telling workers their remote job is no longer remote pl employees who live 60 miles will now be considered hybrid they will be told they have to go to the office for some days of the week. it is not clear how many of the company's 37,000 employees could be converted to hybrid work. >> they are not the only ones doing this >> if i was hired for one thing and told it was another thing. that would be a thing. >> except, you are in an environment where lots of people are getting laid off companies are changing their mind i understand how it feels like a bait and switch. i heard ceos planning to do this >> i think this is coming. >> i thought they were hired remotely for real jobs they were hired for remote the way we said it didn't make

it clear usaa, by the way, great company. i had it until my stupid house got flooded one too many times i lived next to a pond the reason i had it because of my dad my dad the gronk commercials are him. oh, i want one of those. the laiddy has a baby. he said i want a bumper sticker. so funny >> i have one hybrid question. if you think the hybrid thing is over or remote thing is over, what happens to all these places, cities park city? aspen. florida. florida. the entire state of florida. all of the people who wanted to live in florida and basically commute to new york. what happens to that or commute by zoom. >> "morning joe.

what happens >> i'm curious. >> it's a good question. i think there will be people who stay and able to find other jobs and get through it the exodus is probably cut off if you haven't moved already, it will be harder to justify. >> stop pushing this just tell me to stop the world's coming -- your city. i know the city the city needs people in here for all of the support people. >> if that's the case, what about all of these other cities? >> don't worry about park city they'll be fine. >> what about miami? >> i think miami is just fine. they don't have any other -- yeah miami is crowded enough. it is hard enough. >> a whole flux of people. >> miami don't worry about miami. except it will be under water. coming up, new york city comptroller pushing back against the pushback amid the lawmakers.

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good morning welcome back to "squawk box. we are live from the nasdaq market site in times inqsquare the s&p is up 12 appoints. points we have lower revenue of $153 million for chargepoint. missing consensus estimates as well. shares of bumble tumbling on the word that the ceo blackstone planning to sell shares. they will make the move with a second over with herd selling

1.7 million shares offered the reminder of the shares will come from blackstone that stock down 4.77%. the next guest is pushing back on the anti-esg backlash. we have to explain this. bring in the comptroller brad lander the fund manages $200 billion and represents 750,000 retired are workers. we are in the pushback against the anti-esg push back >> yeah. >> that is where we are. a lot has happened good to see you, brad. >> great to be here. >> a lot has happened in recent weeks. we will have senator mike braun on later today here is how he described his bill which passed with senator manchin and senator tester

i know i'm calling it bipartisan. same way democrats it call romney and they call it bipartisan i'm calling it bipartisan as crazy as that sounds senator braun says the reason for it is because he doesn't want money managers to invest based on progressive political goals rather than on the best rate of return another way to say it, senator manchin said it prioritizes politics over getting the best return for millions of american's retirement funds. >> that's what they say. i want to start with the g the g in esg is underrated we got the new york city pension fund $240 billion retirement security of teachers, cops and firefighters. we brought shareholder resolution at a couple of pharmaceutical companies because we didn't think they had strong

enough rules against insider trading. maybe braun doesn't care about insider trading. we view insider trading as steals from the teachers and cops and firefighters. >> you are setting up a strongman here the g is good. >> this is a shareholder resolution as i read this legislation that is designed to prevent investors like us from bringing shareholder resolutions at companies to say we care about your environmental, social and governmental risk. insider trading is a government r risk you can some braun if he is preventing insider trading >> part of it is there should be more focus on the g. >> instead of the e and s. >> i'll take the s social, it should stand for starbuc starbucks. we have been trying to get starbucks to pay attention to the risk that they are not

polling po following policies around w workers. a federal judge found they have to pay millions of dollars and poor howard schultz has to record a video. >> both sides could be asked if you could definitively have a performance that you couldn't argue with, if the right or people with this law, could prove to them that returns were 10%-er 10% higher in the esg funds or conversely, prove esg funds under performed -- would you say i won't do it? >> we are not in esg funds >> i know that the whole movement if you find it did not provide better, but worse returns, would

you abandon and expect the other side to embrace? >> esg for me is looking at where your risks are and trying to be mindful. pacific gas and energy in 2013 thought they would pay 2$2.5 billion. they went bankrupt because of $30 billion of exposure. you are looking at risk. >> you can still argue >> of course >> how about the risk of not producing fossil fuels and what europe is facing now and what we would face if we rush to transition what about the risk of not funding stocks >> i'm not telling senator braun he has to worry of insider trading at pharmaceutical companies? i aim wm worried about it i don't know why he is thinking -- >> senator schumer in the journal said it is letting the

cat out of the bag you have to do it for shareholder return and also for the good of the country. if the two parties agreed on the good of the country, we would have one party you would admit each party sees a different way to get to the good of the country. ideals should -- >> i think of this is short term versus long term the firefighters and cops and teachers if they are 30 years old today, i have to make sure the pension fund is there 50 years from now. i'm thinking of the long-term view maybe desantis is thinking of who is contributing to the presidential campaign. i worry if the companies in florida are going to be under water. >> i wonder if they legislate free speech and ability to make investment decisions is crazy to me i want to go to starbucks. they will pay in fines for --

>> howard has to record the workers rights video >> the video the question is as an investor, you could say the couple million dollars -- i would bet in an honest moment, you talk to starbucks and the board that the fine and there is a bigger return for your investors as a function of not having a union they would say that's their cost you get involved in unions and -- by the way, it is your right to get involved in whatever i argue every investor should make a decision of whatever they want to do. >> our shareholder resolution at starbucks is calling on them to a third party assessment if their work force practices are consistent with policies i hope people will vote for it that is the shareholder resolution investors can consider that because we brought that resolution >> that one is an interesting

one. >> why should you be prohibited from bringing that shareholder resolution >> do you believe by bringing that you will increase the long-term value of the company -- >> that is real reputational risk for starbucks having built a brand with the workers other investors could disagree with that. i don't know why >> that is why you bring it. you are encouragingpeople. >> why would congress make it illegal to bring shareholder rest olutions about workers rigt and climate change of course they have a different point of view and they are welcome to it. this legislation shuts down believes -- >> the regulatory push under the biden administration has been one that is way easier to be able to get proxy out and able

to put up your members for the board. that is a pretty big distraction for companies. >> it is not that easy we tried last year to look at amazon and say -- >> the rules change this year. >> this is not that. >> if i wanted to buy a share on e*trade and put a proposal together, we could >> getting anyone to vote for it is hard if you don't have exempt solicitation access to the ballot. >> if you have 5,000 shareholder proposals, it is hard. you want to hear from shareholders and get input if you have 5,000 of these things and sat through an annual meeting. >> at this moment, do you think the problem is that boards of directors have too much input from their investors and bringing that to management? to me it is the opposite management by and large have

their way. >> no ceos would take in a private moment or public moment they would wish they would be private. >> absolutely. allow the new york city pension fund to increase in private markets. we are prudent >> good or bad to have a thriving public market maybe you don't need a public market maybe private is better. why? why do you care? the other piece is are you making the same -- are you making the same pushes in the private world? >> yeah. our esg practice of attending to environmental and social risk and we can't bring shareholder resolution when you believe if we were in fund 3 and it did something that causes anxiety for us on any of the issues that before we re-up for fund four, we have a serious conversation i think we want robust public

and private markets. much harder for individual investors to get into private markets. we have $240 billion they pay attention to us, you know, at blackstone or apollo. an individual investor needspro. i don't know in they would take away their rights to care about the set of issues. >> not all of the people in plan might care about the same things that the manager thinks. >> this is the challenge of being a fiduciary. >> the biggest challenge of being a fiduciary is to give the highest rate of return for the people so they can retire as comfortably as possible. >> lunchtabsolutely. >> as good intentions cause you to miss a three-year bull market with renewables and at the same time, you get the indices -- >> this is a great point of view if that were the case and you look at the next three years --

>> that is the next. >> 20 or 30 years. >> according to you. not according to other people. >> i'm not telling them how they should approach their risk >> you are telling people in their plan they need to be on board with your progressive interests. >> people treat me as the fiduciary. it is about the judgment of risk that arour investment team has. >> it is not shareholder return. >> i'm talking about my fiduciary responsibility what congress is doing is political. >> your primary job is to grow the pie as much as you can >> for the long term >> your view may be different. >> that's my job >> that is why attorneys general. you have 20 states doing the opposite of what you're doing. >> i think what they are looking at who is contributing to their campaigns for this year. not the long-term shareholder. >> that is easy. >> this is a war of political distraction at the behest --

>> what is the way to get politics out to be straight down the middle it feels like there is a push on either side. to break it down to red states and blue states. >> the fiduciary responsibility. >> only the red states take contributions. >> you can look at my contributions. >> george soros is not involved with anything in the country >> let me answer the question about fiduciary. there is an understanding of fiduciary obligation that served us pretty well over a lot of dick decades. i am a fiduciary on behalf of the 750,000 retirees they can sue me. we understand the laws that means you are focusing on mack mu maximum adjusted returns i don't know anyone who say insider trading is not a risk. >> it pushes into issues

reply biggest problem is having people who represent me and hav my money fidelity and big companies that have my money and i don't get to vote that the idea -- >> i'm all for things that let you vote your proxy if you want. >> what about your -- >> i'm responsible for the retirement security of the workers. honestly, who will pay more if our returns are down is the city of new york. we have a benefit program. i'm thinking both about my fiscal responsibility to new york city and fiduciary obligations to those bene beneficiaries. 750,000 of them. not all voting approproxy. i'm responsible for the risk in the portfolio. >> a ceo would say the same thing. >> they should >> brad, if you knew the returns would under perform. >> if i knew that, i would be in

the private sector making a lot of money. >> ten years from now, we may see esg is -- >> of course, it is risk adjusted maximum returns and evaluating risk is hard. >> my evaluation of risk in the future is different. from >> we may operate our funds differently. >> it has been a fun conversation. >> it has. thank you. >> brad, you get both sides on this show. >> this was great. >> if it's going to kill us. >> amen. in the media and in the boardroom. when we come back, citigroup is the latest bank to cut jobs we have the details from the new report next. we hear from the ceo of priceline over spring travel demand and whether or not inflation has made an impact reminder, you can get the best of "squawk box" in our podcast with your favorite

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tools and support for every small business first. welcome back to "squawk box" citi is the latest to cut jobs those in the investment banking and mortgage units it represents 1% of the staff. it follows goldman sachs and morgan stanley which cut

thousands of jobs. we have more coming up, apple customers frustrated by a green setting that is now the default setting on iphones we talk about it next. reminder, you can watch or listen to us live any privtime the cnbc app meets bold, inking, ♪ to help you see untapped possibilities and relentlessly work with you to make them real. ♪

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welcome back to "squawk. apple approving the delivery of an email app with high-powered language tools "the wall street journal" says apple was concerned that possibly a.i. would generate inappropriate content, and is asking the bluemail app to raise the age restriction to 17 or older. it quietly ruled out a default setting -- this is for

fascinating for greener charging on iphoniphones. joining us is joanna stern >> morning, guys >> we'll talk about the a.i. piece in half a second, but i don't know if most people who have upgraded, if they have to the latest app or ios on their phone know that there's a new setting in there that changes the game in terms of how much you actually charge your phone at any given time. explain. >> well, it depends, right it's focused on -- this is called a green charging or, you know, the specific setting, but it's in the battery section, and what it tries to do is it's basically going to fully charge when there's lower carbon emission electricity so that means if the power grid is using that lower carbon emission electricity, you're not going to have any idea that this is happening in the background, but what seems to be happening is some people are waking up in the morning and seeing something along the lines of, your phone

will finish charging later, and so when this is happening in the background, the phone is sort of trying to decide when it should finish charging. should it start to wait for that greener energy what a lot of people are freaking out here about is they had no idea this was on. i will say, andrew, have you seen this happen on your phone >> i have not seen this happen on my phone. i went digging through the operation systems to try to find it and i wake up and happily the phone has been charged i would actually be very unhappy, i think as a customer if i woke up and my phone wasn't charged and i needed it to be charged if i was going to travel or something, whatever it was going to be. >> some people frustrated about it, rightfully so is they had no idea it was turned on by default. apple turned this on back in september or october, and this was on, and many people don't really realize it because it turns out the power grid's working the right way or -- >> is this just a political sort of bogus anti-esg argument

we just had a segment on that. >> that's what's bringing this to a head right now, but there is as we're saying the concern that, why is this on dwefault apple should have done a better job to let people know, this is there, do you want to turn it on >> can we talk about this other a.i. story gmail -- by the way, i'm always amazed actually when i'm using gmail, just how sometimes it actually knows the language i would use, you know, it sort of prompts the next sentence and i'm, like, that's pretty cool. how far are we away from just the whole email being written at this point >> i'm writing my emails to you and everyone else using a.i. i joke a little bit with what being rolled out a few weeks ago in the edge browser and what microsoft rolled out being into

the edge browser is getting user to using these tools in our everyday lives, so to create emails and powerpoints and other presentations in places where, hey. we just want to generate a first draft which is what the ceo of microsoft told me a few weeks ago, which is we're going to come to the table and these tools are going to create that draft for us we're not going to have to do it >> have you played with it do you think you could really write a column of the joanna stern variety with a.i.? >> it has written joanna stern columns and it tuhrows in turns of phrases and it's inaccurate of what i would say. >> have you not received a licensing fee from microsoft for training on those joanna stern columns? from the economic perspective, that is the next holy war in the world of a.i. which is if it's going to be reading and

training, using all of this content, and it's doing it for free, that seems like a problem. >> certainly the media companies feel that way. i feel -- i think i will be upset when it writes a good joke for me and i will say, you know what now i'm worried. this is going to take away my good writing jokes as you were talking about the email and sort of what's happening with apple, i think, and to just backtrack there a little bit, what's happening with apple ais they're saying, they want to use their usual age range, and apple held off on putting that app in. they said, hey we need you to increase the age limit here because the a.i. can generate types of content that we don't believe is appropriate for those other age brackets, and so that's really all apple is doing here. they're not banning the app. they're just saying we want you to adjust that age range, which if you look at what microsoft bing is, they're in that parameter too. >> joanna, last question are we now at a major inflection

point? i mean, is all of a sudden -- joe was talking about it this whole a.i. world, is it about to just take off in some kind of way we don't understand, or does it get integrated into everything and become a commodity in terms of both creating images and creating content? how do you see this? >> look. i was just at mobile world congress in barcelona all week, and every executive wanted to talk about generative a.i., and how they're working the components and the chips into the phones sam samsung said they're planning to integrate this into the operating system, and everyone is into this i don't -- i'm not surprised when people and users use this, and they are wowed, right? there is this wow factor that many people have not felt about this type of technology or any technology since the iphone or since the early days of the smartphone, but going back to what you asked me about email, what are you using it for? >> we got to jump. we'll talk to you very soon. love the picture behind you by the way.

we do. >> thanks. >> just really quickly, when duke ellington died or miles davis, wayne shorter is in that category, and i want to say that before we go to break. 11 grammys, one of the greatest composers and sax musicians of the last -- he was 89 years old. weather report, miles davis, art blakey, one of the greatest musicians and a great man. tina turner stayed with him and his family when he had those issues he made a big influence, and a big influence in a lot of pele we'll be right back.

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securely with mastercard tools, extending their reach far beyond the storefront. because when you see the super hero you can be, that's priceless. mastercard is proud to support black panther: wakanda forever. good morning the fed's rate-hiking path, a focus for investors. we'll talk the rates, markets and more the futures this morning pointing to a higher open as the s&p 500 tries to snap a three-week losing streak the world of sports and gambling moving closer and closer as leagues partner with gambling companies we'll hear from the ceo of caesar's plus, a live look inside of what could be the most expensive property ever sold in florida. the second hour of "squawk box" begins right now.

good morning, and welcome back to "squawk box" right here on cnbc. live at the nasdaq market in times square take a look at u.s. equity features this friday morning we're looking at green, the dow up 96 points, s&p up about 16 points and nasdaq up about 56 points the treasury yields right about now, let's show you the ten-year and the two-year look at the ten-year, at 4.03, and two at 4.9 we want to show you the fixed mortgage rate right now, back above 7% that is the highest level in four months. >> you can find 5% plus on even shorter. it's nutty what happened yesterday? s salesforce >> one of the presidents came out and said that you could be looking at stopping the rate-hiking process by this

summer the market -- >> i've seen this movie before we have this tendency to -- we get the bad numbers and start to think, okay. the good numbers, which we take as bad like the jobs number, and then we get into this thing and okay it looks like big box retailers, they're not selling. the consumers are -- we're seeing some things we tell ourselves that it's sta starting to happen until the next really bad news the s&p ended up yesterday. >> all of them did, and the idea that every time the market gets any sort of -- >> a whiff >> they may be stopping the rate-hiking campaign you see stocks go up, but what happens with the jobs number what happens with the cpi data we'll get? those will be the next big issues. >> hopes eternal are players just half full right now? >> i think it's an inflection point. >> we're back to 4,000 basically on the s&p if we're going to 3,200, some really bad things are that we

aren't predicting. i don't remember now, but a broken clock let's get to dom chu with a look at this. what's going on? a check on sales of z scaler they're taking a hit, down around 12% the cybersecurity and cloud computing company reported better profits and revenue, but it's growth and billings that narrowly topped the forecast that's giving pessimism, and it's projecting a 9% decline in those billings for this current quarter. zscale set to cut about 3% of its global work force by july, and it's going to take it down, down 12% next up, you have com services stocks stop if you have heard this before google, alpha best, meta platforms are up due in part to

this idea that we keep mentioning these same stocks again and again as analyst picks for benefits longer term artificial intelligence trends it's team stanley on this course they list them among a slate of companies best positioned for a.i., saying they see a huge opportunity as more digitization efforts and other industries grab some more a.i. spending so morgan stanley's top picks in a.i., and echoing a lot of other team's picks in a.i., and we'll end with a check on cryptocurrencies we have a new report from nbc news that says republican lawmakers are sparring with the s.e.c. on just how to oversee certain digital assets cynthia lomas raises concerns about an accounting bulletin that effectively orders crypto platforms to include customer crypto assets in their risk assessments.

the accounting rule effectively requires certain banks, platforms and other financial institutions to place digital assets on their balance sheets which could trigger a massive capital charge you've got to reserve for those. they say they will have the effect of protecting well-integrated entities from custody. a nuance there, but bitcoin prices down about 5%, and ether down 5%. even coin-bbase global and robinhood down >> way to come crashing into the week thank you. we'll see you in just a little bit. turning to the macro economic picture, inflation data continued to be red hot last month. christopher waller warning that taming inflation will take longer than expected joining us right now is the global head of rate strategy at td, and this has been the question people have been trying

to ig if out all year you have to know what the fed is doing next, and there have been conflicting signals on that front. where do you think we're headed? >> so, you know, i think the big macro question is, is the data strong because the fed is not restrictive enough or the lags have not worked through? we're very much in the lax view. if you look at interest rates, i would argue in december last year, we're two months out it takes awhile, you know, 12 to 18 months for that to kick in. i would argue that fed policy is restrictive already and the fed's going to continue to hike. you know, it might stop somewhere between 5.25% or 5.75%. maybe they have to go higher, but what the market has done is looked at the strong data and extrapolated it and essentially, you know, assumed that we're going to have no landing, soft landing. i would argue the long end is very attractive because the only way to get inflation down to 2% is for the unemployment rate to

go i think close to 5% i think the fed has no choice but to engineer a hard landing so these long treasuries, fives, tens, they're very attractive because you have to transition for that potential slowdown. we're long and tense here, and i would stay away from that because the data the still strong, and the fed will feel that pressure to continue the hike. >> so if you think a hard landing is coming, when do you think that happens, and how quickly do you think the fed pivots you would be in the camp of people who have been saying rates shouldn't keep pushing up from here because the fed is going to do an aboutface >> i think this pivot is going to depend not just on growth, but it'll depend on inflaugs our view is that inflation will be sticky. they can stop hiking somewhere in the fall. i think actually there's stuff to cut we're thinking that's only happening next year, and they're going to want to see inflation getting close to, or at least

have a two-hammndle, 2.8 or 2.9 we're going to see job growth numbers, and, you know, to you are yo point and when that happens, we're thinking third quarter, fourth quarter, and what's really keeping the consumer going is this accumulated savings. the savings are coming down, but at some point, those savings run out, and that happens in the middle of the year, and interest rates bite i keep hearing people say interest rates don't matter. they matter. once you don't have that savings buffer, you know, you're dealing with car payments, with a mortgage rate moving up. that's going to start to hurt. that's how monetary policy works, but it's just going to take some time the economy needs time, and doesn't need more rate hikes, but the fed is independent they'll continue to hike until they see signs of that inflation number starting to come down. >> when the economy really turns down, when this hard landing hits and there's a recession, it's led by consumers not spending anymore on all the stuff they have been spending on, whether that be at the

reta retailers, whether that be traveling. you see that collapsing? >> i think good spending has already started to come down silver spending is what we're watching services comes out today, and that's an early lead do you start to see some pullback we were all cooped up for a couple of years, so i think there's been reopening-related demand for services. when does that start to come off? my savings buffer is going down. financial conditions are tightening do i start to cut back on service spending good spending is already declining, but yes exactly our point. we expect the consumer driver's law. we're not looking for a severe recession, but the job market starts to slow down as well. >> >> we'll have you back to continue to watch this. >> thanks. when we come back, sport teams and leagues are trying to navigate the world of online gambling through partnering with 'lhene gaming companies. wel ar from the ceo of

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brewer joins us from the m.i.t. sloan sports business conference with a special guest we used to try to keep them separated, but hey it's a fact of life, contessa. we might as well tax it and regulate it. >> reporter: that's right. you know what? they're getting hitched, joe they're probably never going to get divorced and if they do, it'll be ugly. with me, is caesars ceo tom reeg we've got all the revenue numbers for january. best january in nevada's history ever, and give me a sense of what's coming down the pike, and if you are sitting back, you've got vegas and all these regional properties are you just waiting for the shoe to drop on consumer spending >> thanks for having me back, con contessa it's good to be here vegas is exceedingly strong. so we obviously had a very strong fourth quarter, first quarter has started strong as

well you noted the january numbers. as we head into march, we're looking at a march that could be the best month that we've ever had at caesars, and we've kind of been setting a string of records. >> is it just that room rates are higher than they've ever been. >> no. it's leisure continues strong. gambling revenues are strong as you saw in january, but business has come back, and that's filled in the midweek business. you're comping against rooms that were unfilled that are now filled at high rate. >> and you've got a packed sports calendar coming up. you've got f1 in november which is normally las vegas' slowest month. las vegas will be hosting the super bowl i mean, that even in and of itself is a complete turnaround because they never wanted to put it where gambling happened, and i got to just mention, coming off of super bowl, it was a pretty big headline over william

hill failures on super bowl, and problems with payouts. you have been so proud of your technical ability with this system you call liberty. why hasn't it been adopted there? is there a regulatory hurdle >> there is a regulatory hurdle. so in each state, you need to get your app approved. nevada has not yet approved our liberty app that operates in over 15 other states we expect that to happen in the coming months, and expect to have the app online well ahead of next football season, but we're effectively running a super high volume of sports betting over old technology that just doesn't have the bandwidth to handle it at this point >> when f1 hits the strip in november, what will that do for caesars business you're one of the biggest -- one of two big casino operators on this strip

>> it should be enormous for us. in terms of volume, it should look like a super bowl weekend or a new year's eve weekend, but what's important is when it hits for us, it hits in november which is our slowest month of the year so in terms of a comparative lift over prior year, formula 1 should be the most impactful weekend of the year. >> you had earnings last week. it really stood out to me that you talked about refinancing of some debt you were able to accomplish at a lower rate than what it had been listed at do you think that we're seeing the credit markets easing even though the specter of the fed continuing to hike rates exists >> there are moments where windows open we were lucky enough to be ready to hit when a window opened in january, but you also are building these relationships over a very long time.

i come from a credit investor background so i have had a relationship with these investors for multiple decades, and so when we come to market, we're thankful that they show up and strength in numbers beyond our expectations >> we're at a sloan business conference about sports. there's a lot of people getting into the gambling game right now. you've got leagues making partnerships and fanatics which always sold sports apparel and merchandise now throwing down the gauntlet and saying they're going to operate in every state except for new york by the start of football season how competitive can this landscape get, and you're coming in -- you've spent more than a billion dollars in marketing you grabbed headlines by saying, i'm going to do it and you're in fourth place now nationally. how do you grab more market share? >> i tell you, our focus is return on investment so on that billion dollars, what i have promised my investors is we're going to do over

$500 million of annual at maturity, and that's what our focus is the market share numbers of now are inflated by promos across the board. we've pulled back promos ahead of everyone else so we're not really managing to market share >> are you in acquisition mode >> we're acquiring customers always, and certainly in new states, but we're not looking for corporate if that's the question in questions of m.i.t., i finally got in at age 51 this is exciting for me. >> me too. on that note, tom reeg, thank you so much. appreciate it. becky, you know, it's really exciting to be here because you end up hearing a lot of people throwing down. as i said, the gauntlet, a challenge to up and comers and saying, really you're going to take me on and we'll see how that happens, how that works. >> yeah it's the moat so many investors look for, and we'll

see if it plays out here thank you. we'll be watching for the day. when we come back, atlas merchant capital ceo bob diamond on interest rates, the state of financials, and the fed's inflation fight. as we head to a break, let's look at the winners and losers in the s&p 500 hewlett-packard leading the way, up by 2.8% we'll be right back. time for the trivia question what is the most visited national park in the u.?.s the answer when cnbc "squawk box" continues ahhh! coach k, there's a goat here. the story of my life. no coach, there is a goat here! whaaa! what's this? a thousand dollar hospital bill? but i have good health insurance! gaaaaaap! did you say 'gap'? he's talking about the expenses health insurance

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now the answer what is the most visited national park in the u.s.? the answer, great smokey mountains. the park hosts more than 307 million visitors a year. welcome back to "squawk. a year after the u.s. has froze the bank assets, the world is debating what should be done with this money. steve liesman joins us now with

a look at the massive $300 billion question. steve? >> good morning, andrew. as russia's invasion of ukraine enters its second year, the devastation to lives and cities has only worsened. unspeakable. the front line is the eastern city of bakhmut, once a city of 375,000, now pretty much leveled to rubble. cities like this all across ukraine and the damage done there raise the question, who's going to pay to reconstruct the country, and how attention turning to $300 billion of essential bank assets that have been frozen by the west at the start of the war. these funds should be used so that -- sorry. do we have that? >> these funds should be used so that russia pays full compensation for the damages caused to ukraine. we will work on an international agreement with our partners to make this possible, and together we can find legal ways to get to it >> a former renowned russian

investor tells me it's a legal issue. putin has violated international law by invading ukraine, and we need to adjust international law to bring it in compliance with this horrific situation. the problem is that freezing and seizing assets are two different things many different countries like iran and afghanistan have had assets frozen, but never permanently seized here's the trouble with confiscation sovereign law protects governments. it's not clear where all the money is most experts believe new laws will be required by all governments to seize this money or a very complicated interpretation of existing international law, and it's unclear who would be paid and under what mechanisms. a longer term problem, the signal sent by confiscation is intended to undermine the currency status of the dollar. the atlantic council warns let's say we could do it do you want to send a signal to

india and brazil and other countries who hold dollars that this money can be confiscated? this points out the legal legislative process could take years, and ukraine would require that money immediately he says the imf and the world bank pay the tab, and unfreezing the $300 billion, part of a negotiation with russia. right now it doesn't seem like it can be legally seized and it can't be morally given back. andrew >> this has been a perennial debate for many years, if not l -- months, if not longer ow what do you make of jp morgan, black rock, and others who are starting to get involved in this, at least, you know, signing i don't know what kind of agreements have been signed, but to try to help eventually, but do you think that those deals will effectively be a effectuated? >> it's going to involve the

private sectors, and it's going to come up front versus the time it's going to take, andrew janet yellen was just in kyiv, and what she said was that there are legal obstacles to this money. there are four countries in the eu who say forget it just give them the money just confiscate the money and worry about the legality of it later, but the u.s. and people thyme i'm talking to here are worried about the fallout and the currency status of the dollar, and if you think about it, andrew, if the u.s. takes the money and the eu doesn't, that raises the reserve currency status of the euro versus the dollar >> thank you always smart stuff thanks still to come, the fed's inflation fight. the state of financials, and much more with former barkley ceo bob diamond. and a slumping housing market, palm beach is thriving robert frank has a preview of the island of riches. >> palm beach now the most expensive real estate market in the country, and this could become the most expensive home ever sold in florida with its

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take a look at futures right

now. dow would open up 80 points higher and we're looking at the nasdaq, higher as well 35 points higher s&p up about 12 points markets still jittery about the fed's path on rates after two fed officials struck very different tones yesterday. atlanta fed president saying the central bank can keep hikes to 25 basis points, but guess what? that governor,christopher waller raised the possibility of a higher terminal if rate of inflation doesn't cool on the markets in the financial sector. i want to bring in bob diamond, the former ceo of barclays, and our guru on all things fed and fns finance these days what would you do? >> i think the fed -- listen they waited too long we know that we had raging iing inflation a r ago. i think it's about a year ago they began the rate rises, and it's now 4 1/2 to 4 3/4% i think the fed is reasonably

pleased. they have 25 to 75 basis points to go, somewhere in that area, and then they'll pause and keep an eye on it, and i think inflation has peaked it's definitely started to turn. >> but turn to what -- what, you know, what 5%, 3% getting to 2%, is it going to be a project? >> i don't think you know, if the fed sees inflation in a 3% to 3.5% range, andrew, i think they'll be cautious they're not going to slam the brakes and say it has to get under 2% so, you know, i think we've seen the worst in terms of, you know, the economic correction. i think 2023 is still going to be a very challenging year the economy hasn't totally adjusted to 4.5%, 5% interest rates, but i do think that this is, you know, the economy is still growing. >> the real economy or the markets? you can say the stock market is looking out hopefully 12, 18 months from now. >> yeah.

>> i can make an argument about that today though, you talk to people -- you talk to people in the shipping business and they say, you know, look. there's not nearly as many boxes coming off the -- >> any of the rate-sensitive stuff. >> >> we wanted the economy to slow down. we needed to get interest rates up is it a normal world for 14 years of zero interest rates that was, in essence, to feed the monster here it was the public sector excess of zero interest rates for 14 years creates bads decisions. >> right >> it also is a stimulus that we have to pay back for >> it's been really bad to get you to say that. it's unbelievable. >> this is much more normal. you have a ten-year at 4%. there was ten years leading up to covid where we did 1.5% and 3% it dipped below 1.5% during the worst of covid, but a normal interest rate environment, a little bit of volatility, a steeper curve, and these are all very, very positive for the economy in a medium to

long-term. >> every risk manager i know, they're not saying it's certainly happening that we're going into some tail spin or some big downturn, but every risk manager i know who's lived through a lot of these things is taking precautions at this point. got steve schwartzman telling his companies to be your own bank don't leave money for the next 24 months. we have been hearing that. >> what's wrong with that? >> we don't know if it's likely to happen, but the odds are higher. >> my sense is, you know, the most recent one i lived through is post the financial crisis in 2009 it was, like, really deep, really dark, and fairly short as it turned out. i don't think this is going to be deep and dark i think we're seeing an economic correction and it's going to continue you know, one of the things we do like at atlas merch and capital is the distress business which we started about three years ago, there's going to be great opportunities in corporate stress because of bad decisions that were made, you know, in such a long period of zero

interest rates, but looking at the economy, i think this is going to be longer in terms of the correction, but much more mild than i think what the worst we're anticipating >> zero inflation is definitely overrated. nobody likes that. we saw that -- >> we were hearing for 10 or 15 years. the best thing that could happen is a little whiff of inflation we got more than a whiff >> we have people who have to have fixed income or defined benefit plans or insurance companies or people who were retired living on fixed income if you are at 3%, that's not an exorbitant yield even on the long end it's not the end of the world. >> no, and i think this environment is -- i actually think -- this will be said earlier. the fed waited too long, and, you know, it probably helped raise inflation higher than we wanted, but i've got to believe they're feeling reasonably good right now that they've got this thing back in a more normalized

position, and i think from an economic point of view, you know, the economy's not collapsing, and somewhat higher sp interest rates are pretty normal. >> can i ask a banking question >> you may >> goldman sachs came out yesterday, and i think it's a small portion of the story for them the real story is what you think of their investment bank and the trading side of it which bank do you want to own these days >> i would say two things. for goldman, i think the worries are way overdone >> there's a lot of noise. >> it's a trading machine. it has been for decades, and there's a lot of things to worry about, but i'm not worried about goldman sachs right now. what i do see that is really interesting is what's happening in europe, andrew, and you and i have talked about this here, but, you know, from 2008 on with the programs that the regulators put in the u.s. and the tarp program, the u.s. banks recovered quickly, and very,

very strongly. we had -- we had citi bank in solvent at the time and they're both thriving global banks today. very, very strong in the u.s europe didn't do that. it was kind of a bible kal justice of, the banks are bad, and it took a really, really long period, but few listen to the investor this week with the new ceo, hector at san tan, and few look at the next three years, 15% to 17% return on tangible equity. 50% of the profits going for buybacks and dividends, you know, lower cost income ratio. no, you know, they're not out acquiring things it sounded like a u.s. bank. >> right >> i think the other impact in europe is the net interest income with higher rates goes much more to the bottom line in european and uk banks where in the u.s. the banks, much more of that goes to the consumer. >> so you can own a bank for the

family >> yep. >> what bank would you own >> san tan air >> that's your bank? >> that's my bank. the price to book of the european banks versus the u.s., the valuations are so far off, it dun-- over the next two to te years, that's the best buy. >> we talked to brian armstrong this week from coinbase, and you spent a lot of time talking about circle obviously something you're looking at. what do you think happens, and right now by the way, the finance stable point has been taken off the chess backoard what's happening here? >> crypto is a really, really broad term, be yout using it ins broadest sense, there were a bunch of things in crypto that i still don't understand that were very speculative that let's hope

they never, ever come back on the other hand, there's circle which is u.s./d.c it's a stable coin it's payments. it's going to make payments between corporate cheaper and faster it's good for the banking system it's good for the economy that operated within a u.s. regulatory perimeter it the a clean portfolio of u.s. treasury, and those things are going to continue, and they have $42 billion to $42.5 billion standing you have to separate it to what is speculative, and what's real in terms of, you know, financial services, businesses for the future >> okay. bob, thank you it's great to see you. >> good to see you. >> appreciate you being here. >> great to be in the studio. >> thanks. when we come back, palm beach, the most expensive real estate in the country, keeps soaring higher robert frank takes inside a

mansion that could be the most expensive property ever sold in florida. and then an inside look at how inflation is impacting the travel industry. what the ceo of priceline.com. a reminder, you can get the best of "squawk box" in our daily pod podcast. follow us on our favorite podcast app, and you can listen to us any time we'll be right back. you'll always remember buying your first car. but the things that last a lifetime like happiness, love and confidence... you can't buy those. but you can invest in them. at t. rowe price, our strategic investing approach can help you build the future you imagine.

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welcome back to "squawk box. an island of riches in a slump in palm beach. robert frank joins us with more. robert >> reporter: good morning, andrew wish you were here you know, the average sale price here in palm beach just hit under $13 million. that's actually up 25% in the fourth quarter, and we talk about all the wealth plight we're seeing from new york, california, and the northeast. well, they all seem to want to be here on this eight-mile stretch of land. in fact, right now this palm beach market seems fairly immune to what we're seeing in the broader stock market and the real estate market there are no signs of anything slowing down here on palm beach

island we have had record sales that have happened this week. offmarket sales that just shattered records we've never seen before, and that just all points in the same direction continuation and upward. >> and the biggest test for this market is this property right here it is the only private island in all of palm beach. it's got 25,000 square feet of living space, including a brand-new main house, and a guest house. it's got a tennis pavilion it's got two docks so you can dock your small boat and your mega-yacht, and it's got not just one, but two pools, including this one behind me which is 98 feet long. now this property is coming onto the market for $218 million. if it sells for that, it will be the most expensive property ever sold in florida. guys >> hey, robert

that's a hotel that's not a house. >> one of the trends we're seeing with the wealthy especially in palm beach is they want to build their own resort where they never want to leave, and this has a spa, a massage room, entertainment, gym it's got to have everything when they're totally finished and that's what people want. they want to come here with their families this is the most private place in palm beach because it is a private island, and they never want to leave. >> is that an after-effect of covid lockdowns? >> it was sort of happening beforehand, but you're absolutely right, becky. that trend of wanting to be sort of enclosed in your own cocoon where everything is else there definitely act celerated after covid, and what hap's happeningr in palm beach is a covid factor. the average sale price for many homes more than tripled since pre-covid, and we're seeing an increase in the quarter, but real estate brokers tell me that covid effect of wanting a safe place where you can isolate is still going on

>> robert, what do you think the annual carrying cost of this property is between maintaining the home, the required staff for said home given that we just talked about the sauna -- or not the sauna, the spa i assume you need to have a chef with this kitchen. is there staff quarters? what are we talking about here give us the full run rate on this property. >> if you have to ask. >> if you have to ask, i know, but that's why -- i do have to ask, unfortunately >> so andrew, i don't know what the property taxes are they've got to be monumental on a house like this. it's going to be self-insured because nobody's going to insure against flood and everything on a private island in palm beach the staff i asked yesterday. they said about a staff of nine would be the minutimum for this house. three landscapers full-time, six inside including the private

chef, et cetera. >> self-insurance means no more. >> maintaining the property would be the biggest one 85% of the deals, becky right now in palm beach are done in cash this is basically an all-cash market which is why higher mortgage rates are not really effective palm beach it's about the wealth people have and the desire for very little inventory right now, and that's why this house, i don't know if it's going to sell for this, but a lot of people looking at it. >> keeping this thing going. i would think i need -- >> that's bare bones staff >> is there a staff quarters if you will, or do they live elsewhere and come across the bridge every day how does this work >> they would live elsewhere, but guys -- >> this is like an upstairs/downstairs situation. >> i want to show you the water view i want to show you if you look out, this is the intercoastal and you're seeing the top of mar-a-lago over

there. this is fairly protected from storms and you're not on the ocean. this house was fairly untouched, so, you know -- it's in a rare spot in that it's -- yes we're on a dock here it's on the ground, but this is a manmade island it was built in the 1940s, and it is the only private island in palm beach a lot of people in palm beach didn't even know it existed because this had a quiet owner for more than 40 years they just bought it for $85 million. they're selling it for $200 million if this builder gets $200 million, it would be about a $100 million profit in less than 16 months >> i'm worried about those pillows on those nice, outdoor lounges. >> they're outdoor pillows. >> i don't want them flying away. >> wouldn't you go for the $200 million yacht instead same kind of staff, park it in front of -- you're stuck in palm

beach. >> why can't you just do both? can't you just do it all >> un if you have that house, you probably have the yacht already. >> can you park it in front? >> that's an idea. >> this is long enough for at least a 150-foot boat, but you're not going to do that because you don't want your crew and everyone -- probably going to tender here to your mega-yacht down the road. >> robert knows all of this stuff. you've got to park it. robert, we got to run. thank you, sir >> hard core coming up, the ceo of priceline on the travel industry and the impact of inflation on the consumer that's not him that's kyle bass he'll be on later, because the delegates from china are going to gather to discuss and approve national priorities, including kicking our -- no. including the gdp, and we'll hear from kyle bass in the next

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one third of travelers leisure travel plans have been impacted talking travel trends ahead of

the 2023 spring break, brett keller is the ceo of priceline brett, thanks for joining us i guess we go through stages after the pandemic, it was like i think people had some money >> things can be turbulent in travel despite what people are saying and what we're hearing in other industries, travel continues to be a top priority for consumers. >> do you think that business

ever comes back? do you care? is it a zero sum game or would it be additive for the way it's happening for you? >> business travel would absolutely be additive we primarily focus on leisure but there are a number of small businesses that use our services to move and the country and to conduct business a healthy business economy is good for the travel industry >> what has to happen there? is it a new normal, never coming back to the way it was everybody can still zoom >> a year and a half ago that's what we thought. we thought we'll be lucky if we get back to 60 or 70% of what we saw prepandemic, but in 2022, it recovered nicely, closer to 70% of prior travel demand so our expectation now is within the next one to two years, we could see a full recovery in business and leisure of course significantly higher than where we were in 19. >> brett, how does the current environmental backdrop affect

you? how do you deal with inflation how does it affect your business what about higher interest rates? >> sure. it's had a very big impact on the prices consumers are paying we look ahead at spring break and what priceline travelers are paying for flights and average flight prices are up almost 25% over last year as we look into the spring break hotels not so bad but hotels have been running very hot all through 2021 and 2022. they're starting to slow down a little bit even in january hotel prices were up 15%. looking to spring break they've come down a little bit, more like 5 to 4% consumers are absorbing that and paying that price. until we see a slow dmeet manma -- in demand, suppliers will keep their price to make up for whatever shortfall they feel >> you wouldn't see it negatively impact the results. is it passed along

are your margins squeezed? does that happen in the way you operate? >> when we have more room in terms of the average selling price, we try to take it and return it to the customers in terms of lower prices. that is something we've done historically take whatever value we have and give it to the customer for a better deal. that does help the bottom line as the prices rise >> i always bring up shatner, i guess. should i do that anymore it doesn't make sense anymore. he'll always be more and dear. would you sign a new ten-year contract with him? i think he's like 92 or something and i think you could. >> i'm sure we could and he would balleplay that out. he's still very much part of our ecosystem. he's not as much on the front and center in terms of our tv commercials. we've leaned on kaley more recently to do that. but he's very much part of the system >> i think he learned something

out in outer space about longevity. he figured something out on ""sta "star trek." >> he's deeply touched on his trip to space. >> if you were away from earth long enough -- >> you come back younger maybe he did that. that's according to the general theory brett, we got to run thank you. >> it's good to be with you. >> when we come back, senator mike braun, the sponsor of anti-esg legislation that just passed in the senate will join us for the latest out of washington ahead of president biden's like livly veto of that bill and why one says tiktok will be banned in the united states and stay tuned

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good morning futures point to gains as we head toward the opening bell the dow and s&p both on track despite multi-week losing streaks. it's been a decent week for the market so far but it hasn't been a great one for esg. the senate joining us house in passing anti-esg legislation

we're going to speak with the senator behind that bill and china set for a big weekend. we can see significant changes to the country's financial system and ielts economy hedge fund man injury kyle bass will weigh in. the final hour of identify squawk box begins right now. good morning, live from the market site in times square, i'm joe kernan we were up over 300 for the dow yesterday. lucky for the market we don't have the jobs report today i guess that's why this week has kind of been okay. we had nothing

get ready for next week, though. we got the jobs report on friday and the week after that ppi, cpi and all those great alphabet treasury yields, we never put up the six month or one year. you can get 5% if you just park it somewhere on the five year you're now over four two year almost five and the ten year over 4% the market i guess at 4,000 on the s&p with a 4% ten year once again, doesn't seem to be exactly in sync. we deon't know how that finally plays out. hope springs eternal we start seeing some signs that the fed's hikes are starting to bite a little bit >> and the bills stop. >> they're not going to 7. >> you didn't say not 6, though.

>> we're at 5 1/2. you can't say we're not going to six. if you assume 5 1/2 is a possibility. those it's been so hard to go from 3 1/2 to 4. it been like agonizing >> the labor market is still hanging in there >> i don't think the ten-year goes to 5 1/2. though 5 1/2, my whole life we would have killed for 5 1/2. >> we're going to start this hour with a check on some of the market's top movers. dom, what are you seeing right now? >> for the first time in years i had actually pinged around bond inventories for treasuries looking for individual ones on that one-year tenor because of the 5-plus percent yields there. you wonder whether people are wringing people out of cds into treasuries anyways, movers-wise, we have

technology in focus. cloud computing cyber security is one of them those shares are down about roughly 11 1/2, 12% right now. the cyber security and cloud computing company reports better-than-expected properties and sales but it's the growth in billings narrowly topping consensus forecast, has a little bit of pessimism and even more so when they project a 9% decline in those bills in the current quarter and cuts in its workforce by july, taking an $8 million to $10 million as a result check out alphabet, parent company of google, amazon, meta platforms. a lot more interest in that stock. morgan stanley analysts are mentioning these as some of the

top a.i. artificial intelligence they see an of the for digitization, could drive a.i. spending morgan stanley saying it's perhaps the best way to play long-term trends in artificial intelligence >> all right, dom. thank you. right now we want to talk about the broader markets. our next guest says things have gone from tina -- there is no alternative to to tira, there is an alternative keith, walk us through this. you are neutral on both stocks and bonds because there are other alternatives what are you looking at? >> when we came into the year,

becky, we saw a couple things coming number one, we thought we'd be moving into the late phase of the economic cycle and ultimately that would lead to weaker economic growth, ultimately a recession with that lower earnings rates would continue to rise to deal with inflation. so for us the right way to come into the year was to be neutral, as you suggest, equity and fixed income were still there. from a sectoral standpoint, we were defensive, utilities, health care, energy, names like that or sectors like that we continue to be in that position here tira >> tiara >> tira. >> we're tira, not tiara >> tiera >> the reasonable.

>> you have two-year yields, the ten-year over 4% short-term fixed income we look as a great way to generate income and the long end ultimately we think there will be a good opportunity for total return >> one of the things people wonder is what's fair price for the market and i think you're looking at 4,000 on the s&p as kind of the equilibrium point right now. that's where we are. what's the range on either side? >> some people are more negative we are who expect the markets to get back down to 3,000, 3,300. we're looking at a range call it 3,700 to 4,200 42 is kind of where the market peaked not too long ago. can you see us go back to the lows of october of last year, 35 sure it's going to depend on how much further do the rates go?

we're still forecasting as our base case a recession starting in the third quarter of this year not a dramatic recession minus 1% in the third quarter, minus 2 in the fourth and maybe half a percent negative in the first quarter of next year and then we slowly come out of it. with that we think earnings forecasts and estimates will continue to come down. we're at 200 right now i think the consensus is still around 224 we think that's going to put pressure on the markets as well. our view is markets go lower before they go sustainably higher and we'll have an opportunity to put cash to work at lower levels. >> you were neutral on stocks at the beginning of the year. january was a pretty strong month. what happened there? >> i think there's a number of factors. number one was the fear of missing out. we saw an 18% rally from the lows, 3,500 roughly in october up to the peak and i think when the market started off in a good way, people got nervous that it was going to continue. you had that going on, you had a

lot of short covering, end of very aggressive tax law selling and some technical indicators turned positive and that drives momentum players so i think the combination of all of that, not to mention that most strategists were saying we're going to start weak and end strong so of course we started strong and we're going to deal with it from there >> you think you end weak? >> our view was it was going to be a grind-it-out year people overreact the data du jour you all were talking earlier that yesterday the move was based upon at least one fed governor saying we think we can stop raising rates at some point, sooner, not later >> we're all still living in the fed's world, right >> we are living in the fed's world. we are forecasting three more 25

basis point hikes. the market has beens did despery f seeking the fed pivot. people counted the number of times he used the word disinflation we got big prints on inflation and back town we went. we think it's going to continue to chop around >> keith, thank you. >> good to be here thank you. >> coming up, the law maker behind the anti-esg bill that just passed the senate and kyle bass will join us on the tech questions between the u.s. and china, including the idea that tiktok gets banned "squawk box" rolls on. we're back after this. ] ♪ imagine something of your very own. ♪

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good morning it's a spicy one, there's a lot of debate. we were having a guest on this morning, new york comptroller who was saying he was anti the anti-esg bill. what do you make of the critique that this is effectively its own version of a cancel culture, that this prevents sort of the freedom of speech for investors to raise their hand and say for whatever reason, you know what, we have an issue with this piece of something based on potentially in this case you heard insider trading was an example, obviously climate is an example, social issues, governing issues and the like? >> let's look at what's happened in the past. we always need to look there you go from clinton to bush, obama, trump, it's always been

some version of financial return in that fiduciary relationship has to be the criterion. we're talking about 152 million investors in 401(k) plans and other types of retirement investments. they give that money to an asset manager even if they had some type of political interest, they would never sacrifice one-tenth of a percent bloomberg showed there would be a 2.6% different from an 8.9% return to a 6.3. you would have an uproar and it's confusing that's why they never did anything in these other administrations when they may have wanted to, especially obama administration it's a slippery slope. one other point.

if in fact you get that better return as a coincidence or as ancillary to it, you can still do it. it doesn't make any difference what you do once you pass the muster of getting the best return if that's going to go into something, it has a political bent one way or the other, more power to it. >> let's take the political bent out. i was talking to a real estate developer this week who said -- by the way, a republican real estate developer who said right now if we're going to build a new building, we tried to build a leed certified building, a truly energy efficient building. i say why do you do that he said that's where the market is the people who want to be tenants in my building only want to do so if they can get into the best new building with solar and this and that and all those new things

if there was another company here, a publicly traded company going the opposite direction, why shouldn't an investor be able to raise their hand say we think you'd do better if you made leed-certified buildings? that arguably would be in the esg bucket >> you used a phrase there i think and that would get so confusing and imagine how would you communicate with the investor and in many cases small investors that go into these funds that would expect regardless of what you do, it has to have the proof of some type of long-term track record before you start monkeying around going this direction or another. i don't think you can start doing that until it's based on a track record of investment return, not an i think it will work you would have so many investors

coming back at it once they get their monthly, especially their annual statement and ask what is going on i just think it's a slippery slope. this doesn't rule out tilting toward some other type of criterion as a tie breaker or something that's coincidental. that's been what all prior administrations have done. we've seen an administration here over two years that would be the ultimate of political enterprises. i don't want to use the word entrepreneur that to me doesn't make sense. >> the new york comptroller when he sat on our set literally a couple of years ago said the that g in the esg, they put a proposal up against a pharmaceutical company to effectively try to prevent insider trading. he said that he believes that the bill that you just signed would prevent him from doing that is that accurate, inaccurate

>> i listened to that and to me that was to get away from environment and social and then go to -- >> it may very well be the question is encompassed within the bill that you signed, would it have prevented him from doing that >> i don't think if that's your primary focus in terms of doing that and you're going to throw the return aside, i'd say that that would get into that murky water, that would get confusing just like the obama administration acknowledged when they backed off on it. you're taking something that has worked pretty well and now to me it's in the context of where we've seen so many other examples of trying to do it through executive order, i came in, was the guy that led on the vaccine mandate forcing it on employers down to 100 employees. that had more small businesses shaking in their boots than anything during that saga and the supreme court said that was nonsense and the ultimate adjudication of

this will be in the courts anyway in the meantime, don't fix something if it isn't broken, don't confuse it along the way as well. >> the controller also -- what's the refuge of scoundrels it's patriotism. in his case it was the notion that anyone who is a proponent of this bill is getting greased by the hydrocarbon industry. is that why desantis is doing this he's got political contributions from fossil fuel temperatures? do you have any, senator >> no. schumer was the biggest recipient of black rock's larges in 2022. >> if goes both ways, doesn't it >> it goes both ways >> if you're going to ask the

question, let him answer >> when it comes to my donors, i put my own skin in the game. when it comes to any particular donors, i never would make any decision based on anything other than a principle if you've got a donor that's trying to shove me one way, it ain't going to make any difference anyway. because even if i like policy and it doesn't have to pay for it, that's another subject we need another engagement on, our terrible financial condition as a country, i vote on what makes sense. >> that may very well be >> we're going to talk about blackrock donating to schumer. the question is have you received money from the oil and gas industry >> i'd be happy to check to see if i have. it wouldn't make any difference anyway >> schumer might say the same thing. >> he's the biggest beneficiary of the new york hospital association, therefore, he won't try to reform health care.

those guys have been around the game a lot longer than i have. i believe in term limits -- what's that? >> you know schumer's biggest donors but you don't know yours? >> most of my donors have come from hoosiers and not around the national landscape and it wouldn't make any difference because i would never be bent based upon a political contribution >> now we're actually doing this i'm on open secrets, which of course follows all the money, that your top donor is acumen oil. is that accurate >> yes they're here in jasper they're a retail fuel distributor. >> but they have a stake in the esg game, right? >> i would say a stake so minute and they are a local company, not the ones that support the politicians that have been there for a long time.

everyone -- and then i wouldn't vote necessarily for anything like that. i'd vote on the merits of the case and in this case it's your financial return, not anything else >> let me ask you this we were actually talking about it earlier this week a number of republican states in a sort of anti-esgish way have decided there are certain banks they don't want to do business if you look at florida and texas, which have higher credit ratings than states like california are paying higher for their muni bonds in terms of fees, in part because they're not using certain banks and using some of their smaller banks. i think in part as a protest against these esg things are they looking out for the fiduciary interests of their citizens >> no. this rule doesn't have anything against that if they're not generating the return or they've got higher

costs or fees, that is adhering to the rule that's been in place, get the best bang for your buck. this has to go both ways you can't pick which thing you might be for and i would be for simply making it this simple the highest return wins the day and if it has any type of subtlety to it in terms of -- >> but you said -- there are banks, as you know, that have decided, for example, that they don't want to be in the business of financing firearms, for whatever reason. we can debate whether you think that's the right or wrong decision as a result there are other states that say we don't want to do business with that bank and they may actually end up paying higher fees you see -- >> you are making the case -- you are making the case by asking these questions in terms of how complicated it would get from either political view to do anything other than having the

best rate of return. that is your primary objective the other stuff is ancillary and that should cut both ways pli politically. >> senator, we always appreciate having you thank you for the explanation and conversation we look forward to talking to you very soon. >> coming up, we're going to talk about one of the biggest questions in streaming what is the future of hulu a team at cigrtioup has an idea. one of the top analysts will join us next "squawk box" will be right back. lomita feed is 101 years old this year and counting.

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rival intel and pushed that company to explore strategic alternatives >> citigroup thinks disney might sell its two-thirds stake in hulu and at the same time try to get its hands for the distribution rights for "the hulk" and namor. those are currently held by comcast. joining us is an analyst who co-wrote that hulu note. jason, this has played out pretty publicly. you've got bob iger making statements about what he will or won't do this was one of the more interesting proposals. you're saying swap the rest of the 60% of hulu. who came up with that in. >> i'm listening to mr. iger

the value for the distribution rights for those two marvel values are quite small relative to the value of hulu if everything is on the table and you're negotiating and moving asset back and forth, this would be an on topportune time >> do you think disney would like to hown hulu or comcast would like to own hulu or did this take a step back? >> i don't know. i was very surprised by p mr. iger's last comments my fear is that everyone is potentially moving their strategy to respond to the way the winds are blowing on wall street and the way the winds are blowing right now is rates rise, people want profits, they're going to endure losses and

that's fine. but i think other companies have shown streaming can be a very profitable business if you gradually get into the business. i look at the losses and say that's a function of these companies trying to enter the business and get scale very quickly. it is not a function of the business necessarily being a bad business if i had my preference, disney would own 100% of hulu i'm keying up on what mr. iger is saying and what he seems to be open to >> do you think he's just negotiating, trying to talk things down? >> no, look, the put call agreement in january 2024 goes to a third party with appraised rights i'm not sure what the benefit is if there's a predirmdetermined o value. i'm taking mr. iger at face

value. >> and, jason, very quickly would you give a high are rating to comcast if they got that asset? would you give a higher rating to disney if they returned it? >> i don't cover comcast i would say for disney i think it's a near term versus long-term issue. if they end up selling hulu at the ranges we outlined, i think there would be a lift in the stock and right at this particular moment the street doesn't want to endure lawsuits. if you asked me in the long run, i would say disney might potentially cap the up side of the value. >> in terms of how you sell it, there's two ways to do it. one is to sell it with the content fully, meaning fx, so much of the fox deal goes with it it's all one piece the other is sort of the shell version. you effectively sell hulu, a

distribution platform, perhaps with a several year licensing agreement to keep some of the content on it, which would make it valuable for the transition period after that the content then goes back on to disney plus, for example. which way do you do it >> i think the thing i would want to keep is the production assets i think that's the most valuable part and i expect disney will retain those doesn't mean there wouldn't be outlet yield with the long-term visibility on the part of disney that would retain the production assets and have a home for those on hulu. >> jason, thank you. >> you bet >> when we come back, an interview you don't want to miss with hedge fund manager and china hawk kyle bass and a reminder for you, you can get the best of uasqwk box on your firefighter podcast we'll be right back.

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welcome back to "squawk box. take a look at treasury yields ooh, that's very close a ten-year yield right around 4% at one point it was just one little itty bitty tenth of a basis around from 399, a two-year yield is at its highest level and more than 15 years for more and rates let's bring

in rick santelli we have to do an over/under on the eventual high and intermediate term high on the ten-year wasn't it hard to get from 3 1/2 to 4 are we really going to 5 1/2 do you believe that personally, rick >> can i say let's go to the charts i like looking at the charts here's the way i play it the all-time forever low yield close was from august 4th of 2020 at half of 1% it means if you're a ntechnician this is gold to have an all-time low level to begin a pattern with let's keep it simple, one, two, three, four, five. five waves we can have a lot of different activity here but the current high yield from october at just under 4.25, my charts say i'm

going to stick with that i called it right after it happened on your show. i've had many people write in saying you really can't believe that's going to hold but yet it has held for quite a while so i'm going to stick with it at this point and acknowledge the fact that the yield curve, the inversion is my friend on this one because no matter what happens on the short end, it isn't necessarily going to send any signals to the longer end moving the same direction. >> rick, they're moving me along. you're the right guy to ask. thank you. something's coming up big, andrew we got to go >> the latest on tensions between the u.s. and china, including questions on the origin of covid and whether tiktok will face a ban in the u.s. hedge fun manager kyle bass after this stay tuned you're watching "squawk box. this is cnbc that you want to keep in the family... ...or passing down the family business...

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it's a key weekend for china's economy and key economic plans. eunice, what's happening >> reporter: the annual national people's congress is going to be taking place and kicking off this sunday. this is a time when lawmakers discuss the blueprint for the year it go it's going to start with the outgoing premiere where they'll unveil the annual gdp growth market, which the expectation is it's going to be above 5%, possibly as high as 6% after the post-covid restriction is lifted

and the hope is that there's going to be more of a recovery the big question, though, is exactly how much president xi jinping will exert his political control over policy making the propensity has been so far there's a preference for state and communist party intervention and we are going to be learning who is going to be taking these top jobs now, for international investors, some of the familiar faces, such as the vice-premier, for example, who was negotiating the trade relationship with the u.s., those familiar faces are all going to be out. and those who are going to be replacing them are likely going to be xi proteges, in some cases having very little financial background in addition to that, state media has flagged there's going to be what they described as a far-reaching reform plan, which is expected to entrench the communist party even more into state institutions such as the

central bank so in the past there is a little bit more power sharing and that looks like it could potentially reverse, which would be a big shift and we're already starting to see which industries would be affected joe, there's not a whole lot of detail, but there's discussion that it would be the finance industry, it would be security, technology and also in terms of security, it would be the police and intelligence ministries. so you would see party commissions taking on some of those responsibilities >> it's very difficult to really understand exactly what's happening. we're going to try to find out a little bit more now from kyle bass, eunice but the words, they describe one thing but what's really going on behind the scenes, let's bring in and talk more about china's economy and its plans, kyle bass is chief investment officer earlier this week we were

talking about the individual whose company, they didn't even know where he was. we finally found out he's been detained because of some corruption investigation for someone that worked at that company. you really never know exactly what the true story is it seems like over there. when they reform different parts of the economy, are they rooting out corruption or did they just become too successful and the government doesn't really like that >> joe, listening to eunice, she's talking about how the central bankers -- when you look at what they did in the 20th party congress, they removed all market technocrats and he replaced them with security, police, military generals. man if we removed the head of the sec, the head of our central

bank and our secretary of treasury all in one move and replaced them with people from the cia and people from the state police and military generals in charge of missile batteries. what you saw xi jinping was in install a war capitol. >> you were on to something for a second but you're replacing that with the wrong people there in this case i'm spoofing i'm kidding you a little bit are you at this point pessimistic, kyle, about u.s. companies going business in china? what does it look like a year from now is it going to be a totally different world that we're living in or is there just too much money involved? >> that's a great question, joe. as you know, you've seen china really amp up their lobbying efforts both internationally and domestically paying u.s. lawmakers to try to avoid a ban

on tiktok tiktok is installed on over 100 million u.s. mostly children's and adolescents' phones. that app is basically able to start changing the way our young people think imagine if we had that ability to do that in china. we don't have that ability they ban all of our social media in china but we leave our doors open the house foreign affairs committee voted to give president biden the ability to ban tiktok and ban other apps and sending data to beijing from u.s. people's phones the one thing that concerns me on this issue, joe, and this is the issue of money, that house foreign affairs committee vote at 24-16 went right down partisan lines we haven't had a partisan rift in anything china related for a long time, where things have

gone through unanimously we had a unanimous condemnation of the spy balloon and now the democrats didn't vote to give their own president the ability to remove or ban tiktok from the united states. now three governments have banned it -- more than three governments have banned it in the west you've had canada, the u.s. and europe have banned it from governmental phones but we're not banning it from the population writ large yet. and i worry that china's going to be successful in say driving a partisan wedge into our lawmakers by using campaign donations. >> we usually don't bring russia and ukraine into it, but with all the recent, you know, rhetoric for the past couple of weeks about what china does, i don't know whether you'd call them allies at this point with china but how is that going to play out and what's it going to

mean for our relationship with china and with what happens -- i mean, it's a two-front discussion it's what we talk about with ukraine and funding ukraine and if china were to -- do you think they'll listen to the biden administration and do they have any fear of supporting russia based on what we say about supporting russia? >> i don't think so. i think what you see, joe, is china and xi jinping have been willing to take greater and great are risks as they announce their limitless partnership with russia 20 days before the invasion of ukraine and they've reaffirmed that limitless relationship just recently and then u.s. intelligence leaked that, you know, china is considering delivering lethal aid to russia in the form of kamikaze drones. so when you ask is xi jinping wary or will he work with the biden administration on not

delivering lethal aid and trying to back away from that partnership with russia, i don't believe so because that would show xi jinping's weakness or that he was weak because he backed down. the ouautocratic rulers don't bk down when challenged so this just shows a greater proclivity of xi jinping and china to move forward. president biden drew a red line there and said you can't deliver lethal aid and if you do, there will be severe sanctions just today we sanctioned chinese company bgi genomics and another serve maker. you see the ratchet continuing to move towards further sanctions and china moving towards a greater both militaristic and economic belligerence as eunice just talked about one year from now, things will not be better.

they'll be infinitely worse. >> we haven't had you on since the latest on the wuhan. they had what they call low confidence and chris ray on another network said it was their conclusion that it was probably a lab accident. have you ever -- i mean, when there's a walking, quacking duck walking around, i mean, you call it a duck, don't you >> yeah. i mean, my favorite piece on this was when john stewart was on steven colbert's show and he started by saying, hey, there's an outbreak of chocolatey goodness in pennsylvania what do you think happened you have a scenario where you have the wuhan institute doing advanced corona virus research and it emanated from there

china wasn't a global actor and to this day haven't been one they haven't allowed scientists in to understand what's going on there. remember, that lab is controlled by the pla, by the chinese military >> kyle, let's assume you're right. let's assume that this was something that took place on their watch.watch. this could be literally like the equivalent of world war ii the question is, once you make that determination and you say it, and you say it publicly, what is the u.s. supposed to do? i would imagine at that point, you would say, this was done on purpose. i don't know if you want to say it was done on purpose, but then hidden, and then you would have to say, everybody out of the pool all american companies, out of china. and then what are the ramifications for the rest of the globe, for our economy how do you see that playing itself out if, in fact, that is the path >> i mean, the truth hurts sometimes, andrew, and yes, you know, i'm a complete proponent

of a full decoupling the only reason we do business with china is we see the endless 1.4 billion people, and we can't wait to sell them something and make money on them, but i think you've seen the last two secretaries of state tell you that china's committing ethnic and cultural genocide and crimes against humanity, and yet we continue to do business with them, andrew so, it doesn't make sense to me, and i think what you're going to see is you've seen many u.s. companies move their supply chains out or try to move them out. they're the second largest economy in the world, but as you see xi jinping moving the other way, and yes, if the lab leak is true -- by the way, we will never know if it's true because they will never let us see, andrew remember, they wiped the research off the internet right when it happened >> we know a couple scientists dialed in 2019 from something that looked a lot like coronavirus, and we do need to know, kyle, because do we know they're not doing gain of function research right now on

ebola? we can say, oh no, that would never happen well, coronavirus would never happen either, and it did happen so, i mean, we need to be careful with these things, and we don't know what ongoing research is going on in china or even here for that matter. >> just think. just think, millions of people around the world died. millions of americans died, and we don't even have the guts to start a committee to truly investigate it publicly. if you remember, when we decided that that was something we wanted to do, and the national security council announced that we were going to launch a proper inquiry into the origins of the virus, china, within two hours, came on tv, and their ministry spokesperson said, if we do that, china will withhold antibiotics from the united states and we killed the investigation right away so, you have to realize that they are not our friend. they are not a responsible global actor, and their partnership with russia should

tell you all you need to know. >> all right, kyle very good. tough stuff to even think about, and you're right, andrew i don't know >> i mean, i think once you did -- >> once you decide -- >> once you decide, and you say it publicly, there's -- i think that -- >> we've almost said it publicly >> by the way, truth hurts how much would it hurt i think it would hurt a lot, and that's an interesting conundrum. >> may not hurt as much as ebola. thanks, kyle comingp, u what to watch ahead of the opening bell on wall street. stay tuned

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we're a little more than a half hour way now to the opening bell on wall street. joining us right now to talk about the markets is brenda. she is the chief investment officer for santo global advisors good morning to you. i don't know if you want to weigh in on our fed debate, our esg debate earlier today what are you thinking about right now, brenda? >> well, i think the next few weeks are going to be important here we got some hot inflation numbers in january

i think there's a chance, you know, maybe not in february, that we'll see that moderate much but i think over time, we certainly will, especially with regard to that shelter category when we have mortgage rates that are spiking up again that's absolutely going to put pressure on home prices as time goes on, so i think we will start to see some moderation i think the bigger question in the market is just how much more can the market appreciate here, and in our view, when we look at something like the s&p 500, i think that valuation multiples, it's hard to make a case for a lot of multiple expansion from here in our view, we need to see earnings be a little bit better than expected and i think that's absolutely possible this year. we have had earnings expectations come down so much that we're expecting very little growth meanwhile, the economy has still been very healthy. we have a dollar that's moderated relative to other currencies, which should be a positive, so i think there's reason to believe that earnings expectations have come down enough that perhaps they are

achievable and potentially beatable, and that's likely what could drive the market higher. >> fair enough, but i guess the big question is, okay, let's say we're having this conversation at christmastime where's the market then? >> at christmastime of this year, well, we'll know a lot more by that time, so we'll know if the fed has been successful in bringing inflation down we'll know if we -- i think by that time, we'll know for sure if the economy is really weakening materially, which it's nowhere close to doing that right now, but that could certainly materialize if the fed had to get a lot more aggressive >> which way are you -- i have to admit, i'm not sure i understand which way you're headed here. sounds like you're headed up, but maybe in the short-term? >> i would say, cautiously optimistic here. once we get through may and june, we start to look at 2024, i think that will be a more important barometer, and then we can -- assuming we still have a case that looks as though we

have an earnings recovery potentially in 2024, then that will be a new way to value the market from here but i think outside of the s&p 500, within the equity market, there are absolutely opportunities and other parts and small and mid cap, international stocks, valuation still very attractive in those areas, and i think at the individual company level, there are still a lot of opportunities, but it's just -- it's the large cap tech companies that are still, you know, causing the multiple of the s&p to be quite high relatively speaking. and therefore, not quite as attractive in our view >> that's the nervewracking part brenda, we appreciate it have a great weekend thank you. we're going to take a quick final check on the markets right now. we do have some green on the screen to end the week, hopefully. we'll see if it ends that way at the end of the day dow up 117 points, the s&p 500 up about 21 points, the nasdaq up about 76 points the ten-year note, sitting just at about 3.9%, a two-year below

4% shall we take a look at oil or crypto maybe both wti at $76.63. show us a little bitcoin on the screen i think we're probably at 22,000 $2,408 fun week make sure you join us next week. "squawk on the street" begins next ♪ good friday morning, everybody, welcome to "squawk on the street," i'm david faber with scott wapner and mike santoli. we're live from post nine at the new york stock exchange. jim and carl both have the morning off. let's give you a look at futures as we get ready to wrap up the trading week 30 minutes from now. you can see we are headed for what appears to be a higher open and our road map this morning, well, it starts with fed speak that's in focus. the ten-year note yield, right around 4%, and the s&p 500 is aiming to snap a three-week losing streak.

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