long. a company named former amazon executive david rishe ceo. a new report that says the group working on metaverse strategy for disney has been eliminated. it is tuesday, march 28th, 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 becky quick along with joe kernen. andrew ross sorkin is out today. let's look at u.s. equity futures. things are mixed. yesterday was a mixed day for

the market with the dow and s&p up .50%. nasdaq was off .50%. treasury yields at this point. the 10-year treasury right now is yielding 3.5%. 2-year treasury is up above 4%. >> above 4. shares of lyft are higher. logan green and john zimmer stepping back from the day-to-day roles as ceo and president. amazon executive david risher will take over. phil will join us with more on that move in a few minutes. ceo transition at oxford health. it launched in 2012 to challenge the traditional insurance model in the united states. the co- founder and current ceo

is going to be transitioning to the president of technology. he will be leading product and engineering. he will report to the incoming ceo who has served as strategic adviser for the last 18 months. recently he was the co-ceo of bridgewater. we know him from the times he has been on the show. in addition to that, oxford is reaffirming the 2023 guidance. the market cap has fallen below $1 billion at this point. they will join us in the first on cnbc interview at 7:15 a.m. eastern time. stay tuned for this one. cftc suing binance. founder cz and former chief compliance officer. alleging binance solicited u.s. users and subverted the exchange compliance program and violating

laws to sign to prevent money laundering and terrorism financing. the regulator accuses binance of helping u.s. based vip customers evade law enforcement. it will continue to collaborate with regulators in the u.s. and around the world and it said the best path forward is to protect users and collaborate a clear and thoughtful regime. the price of bitcoin fell to $27,000 after that lawsuit was announced. we will talk about it with commissioner of the cftc at 7:47 a.m. i don't see anything in here. >> they don't talk about the violations. this is not ftx. none of the same allegations. >> not that it will be. >> they are talking about violation of u.s. laws.

the contracts sold to people in the u.s. unless you are approved by regulators. they are not. there is clear evidence which has been leaked that all the way up to cz, they were looking for ways to allow u.s. customers to continue to trade and try evade u.s. things like telling them to use a vpn and not come in from the u.s. ip address. there are some communications coming from cz to other staff members to talk about this. some clients were important to them. one of them is a chicago headquarters trading firm which is a top five client. it was important for binance to keep them as customers. it looks like they were looking to get around u.s. regulations. >> we need them. i agree with binance response, but things need to be laid out copletely in a clear regulatory

regime. >> i agree with that. binance knew it wasn't legal and wanted to work around. >> i hope they are not working around other stuff. >> also accused of not trying to prevent illicit activity from taking place. >> people think that is what crypto is all about in the first place. >> a lot of questions. in the meantime, disney will begin the first of three rounds of layoffs this week according to the memo from the ceo bob iger obtained by cnbc. the memo says the company will cut 7,000 jobs before summer. the first round this week. the second larger round in april and the final round later in the spring. layoffs will be across company hitting the media division and parks resorts and espn. the wall street journal reporting the company eliminated the small division developing metaverse. all of the team members lost

their jobs. mike white, the division head, remains with the company. >> i guess for meta fans, i don't know which way the world is moving on metaverse. i probably shouldn't talk about it. i don't do that. i haven't done it. however, i did play wii sport quite a bit. do you remember wii sports? >> we still have it. >> i had an avatar. i got to design it. the cool sunglasses. the hair. >> it took 30 seconds to make the avatar. >> i had an avatar. i had this little body. >> we have it in our basement. >> i liked it. i don't know if i want to live in the metaverse. is it better than that? >> you got me. interesting turn of events when facebook changed its time to meta. maybe it was premature. >> it opened the big hole where

they poured money into. shareholder returns and money into the big hole. they have a pretty good business on social media, don't they? >> yeah. >> that's what i was thinking about. that made me think i'm not the person to talk about it. maybe it is ten years from now. maybe it is early. >> right. you could very well have a really amazing technology which comes out of it. i don't know who the winners or losers will be. >> i have another anecdote. when i run now, it is a lifetime treadmill. i go to different cities. it has a -- >> you are in the metaverse. >> kind of. istanbul. i ran all over istanbul. >> it is cool. >> people looked at me. i have been to rome a bunch of time. i run in rome sometimes. i recognize the places i'm running. i like that. >> on the other hand, you are

doing -- >> on the other hand, i can see -- here is something i do know about. thank you. hijack the segment. chipotle mexican grill paying $240,000 to the former employees of the store in augusta, maine. immediately makes me think of who is happening in two weeks. as a settlement for closing the restaurant when the employees tried to unionize. they violated federal labor law when they closed the restaurant and stopped organizers from being hired at other locations in the region. denied wrongdoing. the cost and energy of mitigating would outweigh the settlement agreement. chipotle will offer to put the workers on a hiring list for other maine locations for one

year. shares of alibaba are surging after the chinese technology company said it will split into six business groups. each group will have the ability to raise outside funding and pursue individual ipos on media and cloud. each will be managed by its own ceo and board of directors. stock is up 7.75%. we will talk about a new call from blackrock coming up on the fed rate hike path going long. at 8:00 a.m., house speaker kevin mccarthy will join us live from washington. we have a lot to talk about, including all of the recent banking industry issues and regulators. they missed a lot out there. you are watching "squawk box" on cnbc.

do you ever worry we'll live forever? no, it's literally never crossed my mind. what if we live to like 100? that's 35 years of being retired. i don't want to outlive our money. and i have been eating all these stupid chia seeds! i could totally live to be 100! why do i keep taking such good care of my- since we started working with empower, we're able to get all our financial questions answered, so we don't have to worry. so you never- no. never. join 17 million people and take control of your financial future to empower what's next. start today at empower.com

the markets and speculation over the fed's rate hiking path or path in general. strategist at blackrock says the markets are wrong on rate cut bets. arguing the fed will keep raising interest rates despite concerns over impact on the banking crisis. joining us now is sylvia

jablonski and amir pandit. the two-year, sylvia, is back above 4%. i'm torn. i would like to say the last two weeks i would say never mind in terms of the banking crisis. the fed needs to at least acknowledge that something did get broken. maybe it wasn't their fault. the risk managers at svb were asleep at the switch. if they had any -- the things like this with credit suisse and deutsche bank last week, has to be on the fed radar. do you think they will continue hiking? >> good morning, joe. i think that's a great point. anxiety has to exist here. we don't get away from this unscathed in my opinion. there is a trickle down effect.

i think something like regional banks can't lend as much to small businesses and main street doesn't move and that impacts gdp. in my mind, i think the fed raises another 25 bps or so. i think at that point, he pulls back and looks at the environment around us to see what is happening. i think you will get deinflationary pressure with banking. investors left the market and jumped to treasuries. that will impact the ecosystem and economy. you will spend less when you worry about 2008 banking crisis. all of this coupled with inflation coming down though not in the lineal fashion bodes well for the fed not to continue to hike this year. >> that is a good point. even if there are not any other shoes to drop anywhere in the financial sector.

remaining players in the arena could pull in and not give as many loans as they have been and actually be more cautious which is disinflationary and might be like 50 basis points. some say as much as 100 basis points that the fed doesn't need to move because the banks are doing it on their own. >> we have to recognize that lending standards have already been tightening for several quarters in a row. this is before the banking woes we have come across in recent weeks. we are already in the environment where credit conditions are tightened. i wouldn't want to undermind that point there. we are already in the environment. this banking crisis has heightened the slowdown. there are financial and stability reasons for the fed to pause. on the economic side, 70% of cpi

came from shelter. we know that is lagging and slowing. it takes longer than the fed would like to see progress on inflation. they are worried about wage growth. the reality is wage growth has been eroded by inflation. it is not like there is a huge amount of spending power from the consumers. inflation expectation is there with the fed survey and michigan survey. we see the expectations are lowest since spring of 2021. you marry the economic reasons and financial stability reasons for the fed to pause, it makes sense for them to tap the brakes at this point. >> can i make one observation and i'll throw it out to sylvia or joe. it occurred to me that the fed doesn't have a lot of credibility. this is the market saying we don't believe you. that is what got us in trouble.

you have the hold to maturity jo loans and not believing the fed would raise as quickly. either you are a stupid or bad risk manager or both. >> or they did it all before they started. >> never found anytime to unwind any of the stuff? two or three years? >> the fed was saying until a year ago it is not a problem. >> right. >> if you have people doubting the fed, you will have big bets on either side which could lead -- >> the markets, sylvia, do not believe the fed. they believe more this morning. back above 4% on the two-year note. we have 6%. nowhere near 6% or 5.5%. they say they are still going there. do you believe that will happen or will we hit another bump in the road which is unpleasant for the markets? we have had people saying morgan

stanley's mike wilson said the vix is the end stage of the bear market which could be ugly in terms of volatility. i don't know what brings that on. probably nothing pleasant. >> i think if you are a day trader or an amateur day trader, i would say the last couple days have been tough. you look at futures in the green yesterday on tech. the market opened and everybody transitioned back to banks. now they feel appeasement there. i think volatility is the key word in the short-term. in the long term, and becky makes a great point. a lot of us don't believe p what we're being told and that goes back to transitory and how long we held on to stocks and really got hurt. rates went very high and very quickly.

if the fed does more and we are uncomfortable with that and it leads to a small recession, he is toward the end of the cycle. he is toward the end of the cycle. at some point, you have to be in the market. time in the market, not timing the market. that is what it comes down to. this is a good spot to think about that on the pull back days to drip in and dollar cost average. >> meera, will there be more rate hikes or will there be rate cuts for the remainder of the year? could we have hikes and then eventually have a cut? >> i wouldn't rule out either. we could see another 25 point hike. the fed seems to have a bias to hike in the environment. they seem concerned about inflation over financial stability. if we get to the back half of the year and growth has slowed and we see the credit growth fuel into slower consumer and cap x and we do land in a recession, which we would agree it would be somewhat mild in

nature and if we are in recession and see disinflation and it has come down, it will be hard for the fed to keep rates at 5% given the conditions. i would not rule out cuts in the back half of the year at all. >> okay. i want to thank you, both. sylvia jablonski. meera, thank you. we will talk to larry mcdonald later this hour. he is in the camp of the full point rate cut debate. and also a programming note for you, you can hear about the latest in healthcare investment opportunities and the ceos of novo and gsk at cnbc healthy return. that takes place tomorrow, march 29th. there is still time to register. there is still time to register. scan the qr code orisit v

good night! hey corporate types. would you stop calling each other rock stars? you're a rock star. you are a rock star. no more calling co-workers rock stars. look, it's great that you use workday to transform your business. but it still doesn't make you a rock star. so unless you work with an actual rock star. hi, i'm ozwald. hello ozwald. pam, you are a rock- i wasn't going to say it. ♪♪ i think i'm ready for this. heck ya! with e*trade you're ready for anything. marriage. kids. college. kids moving back in after college. ♪ finally we can eat. ♪ you know you make me wanna...♪ and then we looked around and said, wait a minute, this isn't even our stroller! (laughing) you live with your parents, but you own a house in the metaverse? mhm. cool...i don't get it. here's to getting financially ready for anything! and here's to being single and ready to mingle. who's ready to cha-cha?! ♪ yeah, yeah ♪

i am here because they revolutionized immunotherapy. i am here because they saw how cancer adapts to different oxygen levels and starved it. i am here because they switched off egfr gene mutation and stopped the growth of tumor cells. there's a place that's making one advanced cancer discovery after another for 75 years. i am here... i am here.... because of dana-farber. what we do here changes lives everywhere. i am here.

shares of lyft are higher this morning up by 5.5%. the co-founders of the company are stepping back from the day-to-day roles as ceo and president. former amazon executive is taking over as ceo. deidre, this stock has come under an extreme amount of pressure in the last year. >> reporter: since the ipo is trading at $10.

the ipo at more than 7$70. he takes over at a pivotal time. he comes from management at amazon and microsoft, but for the last decade, he has been running a non-profit. i asked why he is the right person for the job. have a listen. >> microsoft for a bunch of time and i learned how to compete. amazon after that and i focused on the customer. focused. in the non-profit world, you do more with less. that is the thing that people miss -- misunderstand. >> reporter: becky, i asked if he would prioritize profitability or win back market share from uber. he wanted to do both in the industry. when i pressed him, he had to make sure lyft was priced

competitively. uber and lyft have been at it for years in the price war. that could spell bad news for uber or good news for riders. look at the companies. they used to trade in tandem. as uber has taken market share, you see lyft down 73% in that time. uber up 12%. you look back to 2019. both of the stocks have heavily traded below the ipo prices from 2019. it has been difficult for them to become more profitable. they like to talk about adjusted ebita. losses for uber are still in the billions. david will have a difficult task ahead of him. hopefully communicating with wall street and he will do a better job because the last earnings call, if you remember, was a disaster. some called it one of the top three worst ones they were on.

david risher will have to get up to speed on wall street after a decade of non-profit. >> i heard the interview. it was very good, deidre. he said they will do what amazon does is focus on the customer. focus on getting the rides there and good ride and competitively priced. that is keep it simple, stupid. >> reporter: it is. this is something that lyft has excelled over uber since its inception. you remember the delete uber? lyft has been seen to being friendly to riders and drivers. maybe he is talking about getting back to the core. uber has food international. risher said it was too early to say. this is a stock in the company trading at $3.5 billion. it is sold and up

especially, if you can't turn it around. there have been speculations swirling as it has lost so much value. >> another key point is he is giving most of the bonus off the top to the non-profit he had been running the last ten years. >> reporter: yes. that is great. he is someone who is personable and easy in the platform. he is going to have to really raise morale with the company. >> that is a very noble thing to do. trying to set me up. i said he had a lot of experience running non-profits. i said it comes in handy at lyft. especially after giving the bonus back. i'm not going to make that -- a

gentle ribbing. profitability is a difficult thing to do. i'm a huge fan. if you -- think about gas and insurance and cars and kids now and liability and stress of driving. it has -- >> someone else. >> transformational. i love the service. i don't like waiting at wendy's for the ten people ahead of me. >> they don't have any food delivery. you won't be waiting behind a lyft driver. >> if they are doing one thing and you have one job, you should do that. it is a tough way if you charge what it costs to be there immediately and it is pulse pricing, it is hard to make money. >> they have ground to make up.

they will have to be aggressive. they lost a bit of market share over the last few years. th weaker spot from the pandemic. >> thank you. interesting. hen we come back, a warning of risk of contagion from the banking sector to insurance companies. that's next. later, house speaker kevin mccarthy joins us at 8:00 a.m. eastern time. as we head to break, a look at the s&p 500 winners and at the s&p 500 winners and losers. lily! welcome to our third bark-ery. oh, i can tell business is going through the “woof”. but seriously we need a reliable way to help keep everyone connected from wherever we go. well at at&t we'll help you find the right wireless plan for you. so, you can stay connected to all your drivers

and stores on america's most reliable 5g network. that sounds just paw-fect. terrier-iffic i labra-dore you round of a-paws at&t 5g is fast, reliable and secure for your business.

good morning. welcome back to "squawk box" live from the nasdaq market site in times square. we are flat this morning. there are the futures. the treasury was up above 4%. the 2-year treasury. we he are looking at the 10-year

treasury at 3.55% and 4.03 for the 2-year treasury. that has narrowed a little bit. >> we were above 90 a couple weeks ago. >> yeah. our next guest has two bold predictions. a credit risk contagion to hit insurance companies. the second is the fed will actually cut rates by 100 basis points by december. larry mcdonald is the founder of the bear trap report. larry, people are debaing if we made it through the worst of the banking contagion crisis. >> becky, it is interesting to focus on a.i. and the innovation going on, but at the end of the day, sit back and think about common sense. in 2020 and 2021, trillions of

dollars, more than a trillion of mortgage backed securities and commercial real estate loans and treasuries were sold and basically placed on the balance sheets of insurance companies and banks. investors and people sitting at homes enjoyed that. those loans are still on the banks' balance sheets. when you take interest rates from zero to 5% in 13 months, those loans are now worth between 75 or 85 cents on the dollar. those are massive losses on the surface. the risk indicators are pointing to the highest probability of a crash or drawdown in the next 60 days at the highest probability since covid. >> draw down since what? >> when we have seen this over the years, we saw this before

covid and lehman. what happens is a shop comes in and they price risk and equities focus on a.i. or the dot-com in the '90s. >> so, larry, just to put it in context, you are someone who tends to be bearish in the short term and bullish in the long term. is that accurate? >> yes. let's think about the short term. lvi scandal and stress in london in october and rolled over to regional banks and rolled into credit suisse and deutsche bank elevated. metlife and lincoln financial flowing out and commercial real estate loans impaired and then you talk about capital i which is the consumer which is in multispace. this is a rolling problem.

>> what is the solution? do you think the federal authorities recognize this and have anything to do? >> if you saw mr. powell, chair powell, who was nervous at the pressor. bill pressed him on these things. he is nervous because he knows what is happening under the surface. the fed is stuck in a narrative by the inflation which they have to stick to because it is a public, public narrative. they preach this to the white house. under the surface, he knows what he is up against. it is like 2018 where the credit risk is rising on the surface and he is about to get vetoed. credit risk is about to veto the fed policy path. >> you said this is like 2018. you did not say it is like2008. that is a significant difference. how does this play out

differently? >> well, let's look at this for example. in terms of the stocks, the new york stock exchange stocks above the 200-day moving average, in february, 71%. that's a strong bull market. now, we're down 38% which is the december level. it is not so much lehman event. it is a rolling slow moving credit crisis. the fed is fighting with lots of liquidity behind-the-scenes. it is not concentrated like lehman. it is spread out. banks and insurance companies and people own these bonds that were priced at par with 1% coupons and interest rates of 4% to 5% across high yields. bonds sold to investors at 2% and now sitting on bank balance sheets. it is more of a rolling credit

crisis than lehman. >> the banks have tapped the window from the fed aggressively. giving back some of these things or loaning at par. what about the insurance companies? do they have anything to do? >> becky, have the thing. there are hundreds of billions of losses on the insurance balance sheets. this only addresses the banks. that beast in the market will probably keep pushing until we get a much larger fiscal and monetary response. what the beast wants is what you said. protection for the insurance companies on the mark-to-market losses. the serpent in the market wants a package to protect the markets -- markets above 250,000.

remember the first $800 billion bill failed with lehman and pressure from the market, we get a bigger fiscal and monetary response. >> larry, that is a lot to think about. we will check in with you as this goes through. we have kevin mccarthy later. larry, thank you. >> thank you. thanks for having me. >> describing -- what do people do with weakness in deutsche bank? investors remain on edge and begun to poke at the bank's weak spots. you meet people like that like larry. >> you know who else said that? the bank of england governor testifying before the treasury department with the leadership there asking the same question. he said the same thing. the reason you see this is people are poking right now.

this is what they are doing. >> a lot of smart people. where there is a chance, long or short, they will try to find it. i think we owe them gratitude. i don't want to gloss things over. coming up in the next hour, chairman rashir sharma takes on the banking turmoil. reminder, get the best of "squawk box" in the podcast on

shares of pvh sharply higher. guidance was better than expected. the apparel group of tommy hilfiger and calvin klein expected to grow 3% to 4% after beating forecasts. pvh is well positioned to achieve double dip shareholder growth in 2023. berkshire added more shares of occidental petroleum. a new filings says they bought

3 million shares. they paid $218 million and have a stake of $12.6 billion. we have some exciting streaming news for you. you can now watch "squawk box" live on peacock. streaming all together exclusively on peacock with morning news live. that is today, "squawk box," and "morning joe" you can watch us no matter where you are. go to peacocktv.com for more information on how you can stream morning news live. big deal. >> confusing. which "morning joe" are you referring to? >> not -- >> the cheap imitation of the "morning joe." >> that's not what i said.

>> kidding. we love having joe on. he will say that. finally coming around. i will admit. his name is charles. there was already a chuck. he steals my name. it is on peacock? we're on peacock? >> we are. >> it makes me excited. wow. we made it. we are on tv. streaming. >> we're on devices everywhere. not just tv. >> we are. >> yes. >> we're going to be famous. >> look. you have kids in college. >> yes. one. >> ours didn't take a tv to college. >> we have to get to the program. not sure about the metaverse. streaming. up next, tech stocks are the standout with the nasdaq out performing the broader s&p 500.

performing the broader s&p 500. we will talabout that k the cloud makes it possible to expand your infrastructure. but to make it powerful enough to connect your data wherever it is, you need cdw and netapp. cdw experts will work with you to understand your needs, then customize a netapp cloud services solution to integrate data management for all your clouds, helping you reduce spend, improve security, control data 24/7 and automatically detect anomalies. in the cloud, at least. netapp makes efficient cloud management possible. cdw makes it powerful.

moderate or come down over time. i think what will matter for many of the technology companies is the innovation and growth. you mentioned meta. they have been cutting costs. we are focused on them in terms of how they transition the business. it is important to users and tiesers. we look at apple, they are executing on the product cycles. cyclical head winds and we have to see how it falls. the iphone base is growing.

i think that will set the stage for better growth this year and into 2024. >> i guess for investors, dan, there's a lot to consider and

that's where the innovation is and that's where the growth is. but if you're talking about a company that has a 30 multiple, a 35 multiple, if they continue to innovate and continue to grow and the multiple, because of higher interest rates, drops to 25, that's going to -- you know, that's going to lower stock price. that's hard to -- it's hard to figure out when to enter a lot of these stocks, even though they have very bright futures. >> i think if one focuses on some of the companies, i'll use nvidia as an example, they're investing aggressively and i think their earnings power over the next few years is dramatically higher. i appreciate that higher interest rates could impact the multiple. but if you're able to achieve that revenue earnings and really the free tax flow growth, i think the market will reward those kinds of companies like an nvidia overtime. >> okay. just looking at -- i'm trying to

figure out what the multiple on nvidia is. but that's a fair point. this is where the growth is. that's where you go. but, you know, you do pay for all the innovation in terms of evaluation. it's just something to consider. dan flax, thank you. >> thanks, joe. coming up, ross

good morning. stocks looking to extend yesterday's gains after the offer to buy silicon valley bank. right now futures are slightly lower. the cftc is suing binance. we will speak to the commissioner, russ benem. and alibaba says it will split into six units. we'll catch you up on the stocks you need to be watching as the second hour of "squawk box" begins right now.

good morning and welcome back to "squawk box" here at cnbc live from the nasdaq market site in times square. i'm joe kernen along with becky quick. andrew is off. u.s. equity futures are off. nasdaq down. not a lot happening in terms of the overall averages this morning. s&p off about 4. treasuries back up in yields that we're seeing in recent sessions as the fears with a more widespread issue in the financial sector are waning to some extent. 3.76 on the 30-year, 3.55 on the 10-year. you've got to go shorter to get above 4%. 2-year, 4.02. let's get a check with dom

chu. he's got a look at what's been happening with the premarket movers this morning. dom, what are we seeing? >> lots of individual names, becky, joe, good morning, powering some of these premarket movers. we'll start with alibaba. the china-based ecommerce giant, they're higher by 7% plus. over 2 million shares of volume after it announced plans to restructure itself into six separate business units, each with its own ability to raise capital or look to go public if so desired. alibaba says the move is meant to foster market competitiveness. those shares up 7% but still down 20 over the last year. shares of lyft are higher by nearly 7% right now, roughly 60,000 shares of premarket volume. the ride-sharing and transportation logistics company is getting a new chief executive. former amazon executive david risher will take the top job replacing logan green and john

zimmer who will step back from ceo and president respectively so that move being cheered right now, up 5.5%. also watching shares of occidental petroleum which are higher around 2% plus right now. warren buffett's berkshire hathaway has upped its stake buying another 3.7 million shares making its stake just around 23, 24% of the company. it now owns just shy of 212 million shares worth over $12.6 billion. so those shares up 2%. we'll ending with a check on cryptocurrencies. in the wake of the lawsuit against binance and its co-founder and founder, rather, c.z. as he is known, evading compliance rules, bitcoin price is below the 27,000 mark, down 1%. 26,781. ethereum prices up, 117 and

change and microstrategy up one-half of 1%. joe, i'll send it back over to you. >> different than financial stocks, the crypto, but on any given week stuff like this, shoes keep dropping. in this case it's a lot of regulatory issues still to be hashed out, i think. bitcoin is sort of held hostage by macro regulatory issues. >> and not just that, remember, this is all coming on the heels of coinbase getting the wells notice. >> that too. >> so it's about sentiment. but the curious part is microstrategy. we still look at that as the company that owns bitcoin on its balance sheet so a lot of it is tied to the value of whether shares go higher or lower. microstrategy is almost a pure play on that corporate balance sheet. >> very true. yeah. and you can imagine, microstrategy, if bitcoin is

10,000, it's worth, do the math, it's worth this. if it's worth 60,000, microstrategy is worth this. so it must have been a tough -- a lot of rumors on the way down of what was going to happen to microstrategy. the worst things did not play out. now back at 26, 27, it's a work in progress. >> well, the beauty is they tell us exactly how many bitcoins they have. so yes, it's just about you forecasting where you think bitcoin prices will be. >> we've got to go, dom. when we were talking about those issues up in augusta, maine, admit it to me, when you heard the word augusta, did you think about some other state? >> it's pavlovian for me, you know that, joe. >> you actually start salivating? >> yes. i smell grass. i can hear the music right now. walgreens is out with quarterly results. let's get to bertha coombs. >> walgreens shares are moving

higher. the second quarter earnings adjusted 1.16 per share. down 26% from a year ago. a much lower covid and vaccine testing volumes. remember, a year ago we had that big omicron surge. meantime the drugstore chain posted 34.9 billion in revenues versus 35.5 billion expectation. the company breaks out its results in three segments. it saw strength in u.s. retail pharmacy, revenues coming in at $27.6 billion. prescription top sales were up 4.9% driven by higher brand drug prices. and they also had sequential improvement with prescription volumes because of improved staffing. 500 stores returned to normal pharmacy hours. same-store comps were down 1%. a lot lower over-the-counter covid tests. as far as international, revenues were $5.7 billion.

that also beat expectations. the uk comp sales were up 16% with adjusted operating income well above expectations. on sunday some investors are pushing for walgreens to put boots up for sale again. they didn't find a buyer at the right price last year. u.s. health care revenues beat at $1.6 billion while posting a wider operating loss but primary care saw 30% growth at village mds. walgreens is reaffirming its four-year outlook. the ceo says the acceleration they saw in february is adding to their confidence in driving strong growth in the second half of the year. the company is actually projecting mid-20% adjusted eps growth over the next two quarters, guys. back over to you. >> that's pretty good for a

staid and established company. let's talk markets with anatasia amaroso. we were talking with dom about you never know what's coming, right in front of your face sometimes. we know predictions about the future, those are the hardest ones to make, those predictions, yoga beara insight. i don't know if i can ask you t tell me what's going to happen next week or the week after. but at least at this point you have found the silver lining in what happened at the banking sector. that is that it's disinflationary and may cause the fed to take a lighter touch. net-net do you think that's a positive for the market? >> i do think it's a positive, joe. on the surface you say, well, with banking turmoil, it translates to a credit cycle

slowdown which leads to a weaker economy which normally would not be good for stocks. but we know a weaker economy should also lead to slower inflation. to the extent that it does, it would continue to allow the fed to take a pause. that's what the market has been reacting to and that's a good thing. the other thing that i would say, it does seem like we're having some stability return to the financial sector because of the measures taken. it pulled back the yield on a 2-year from 5% to 3.67% last friday. maybe there's a little less yield out there to compete with deposits. and then you've got lending facilities from the fed, you've got inching towards an explicit guarantee towards deposits and that helped stabilize the banking sector which that's 13% of the s&p. energy is another 5% of the s&p. so now you've got 18% that's close to some stability here. you put all that together, joe,

and i think we're having a more constructive backdrop this week versus the last couple of weeks. and a lot of people have deleveraged their positions, derisked their positions. so just on a technical standpoint i think we're much better positioned and a lot of investors could find themselves chasing the upside to the extent the market moves above 4%. >> earnings estimates have been coming down anyway, based on predictions that the fed was going to follow through, going to 5.5 or 6%. even if we see some additional slowdown because of credit concerns, do you think earnings, the estimates are already low enough or could they come down more based on lack of credit or dwindling credit? >> there's two ways to look at it. you can look at 2023 and if you look at the s&p earnings, at some point analysts were forecasting $250.

today that's $222. so that's more than a 10% move lower, joe, so i would argue that we've revised lower for the economic environment that we have today. and then you look at the first quarter and typically we know in the quarter leading up to the reporting season, you get analyst cuts on average of minus 3%. the cut today is 6%. so i would argue between the earnings cuts for the first quarter, between the degree of negative preannouncement, we have reset the bar a lot lower so it should be easier to beat. and by the way, joe, you look at economic projections and economists were penciling 0% growth for the first quarter and the atlanta fed is tracking above 3%. so i actually think given the lower bar for the first quarter of earnings and given the economic outperformance that people didn't expect, companies may find themselves reporting

better results than they guided for. >> you like nasdaq trade in software and semis within that? >> i do like -- i do like the nasdaq trade. obviously it is where you go if you think the fed is going to pause. but there's more to it than that, right? first of all, there is the strength of the balance sheets. i do think the banking concerns are somewhat contained in the near term but they're still concerns, like lower net interest margins and the exposure to commercial real estate but the nasdaq should be immune from that. you've got strong balance sheets, low interest rate exposure, the dollar which has pulled back 10% which is good for multi-national companies as well. what i also like is you're starting to see confidence return in terms of deal making. for example, i looked at the vc investment activity in software and it has picked up 23% quarter over quarter. so we're starting to see some signs of life. if you look at m & a, it's up

63% from a very low starting point last quarter so that in my mind benefits the growth trade, benefits the nasdaq trade. so i would stick with that. but i will tell you one other thing that's catching my attention which is the dividend-paying stocks. you look at some of the dividend etf and they were hit hard because they have banking exposure. but if you think the banking crisis for now has been stabilized, you can earn close to 4% yield in some of those dividend payers. i think that's a really attractive entry point right now. >> all right, thank you. >> thank you, joe. >> see you later, thanks. >> see you later, thanks. coming up, announcing mark ( ♪♪ ) woman: at first, it was just a team. now, i can't imagine my life without them. man: that coach changed our son.

on the field and off. boy: when the season started, i still thought about dad. but i could start focusing on the things he taught me. woman 2: at first, i didn't know anyone. i didn't know where to sit at lunch, anything really. but that season... that season changed everything. all: (chanting) who's lookin' clean, if you know what i mean? say what, what... (cheering) ( ♪♪ ) (cheering) (cheering) ( ♪♪ )

new this morning, health insurance company oscar health appointing mark bertolini as ceo and the person who led it will be the president of technology. joining us right now first on cnbc are both of these gentlemen, mark and mario. gentlemen, welcome to both of

you. >> thank you for the invite. >> this is pretty big news in terms of what it means for oscar health. let me ask you first, why did you decide to turn over the reins to aveteran in the industry? >> oscar is now 6.8 billion revenues last year and 47 promoter score. that's about 3 for the industry. that's a lot bigger and faster than josh and i, the co-founders, thought we'd ever get to in ten years. at the same time our ambitions have been to have an impact in health care. we started working with mark about 18 months ago in an advisory capacity and realized his ambitions are even bigger than our ambitions so it made a lot of logical sense to bring him onboard. very grateful that he decided to join. i am a computer scientist by training and oscar has some of the coolest technology in health

care. ai is tearing up our playbook at the moment. for me to focus on engineering products is a dream come true as i think it is for mark to run the company. >> the market obviously likes it, the stock is up about 14%, but that comes after a big decline in the stock, down by over 75%. i think we're looking at a market capitalization now of $650 million before you see this bounce today. mark, you've got your work cut out for you. this is an industry you know well, but what's your first plan of attack. >> the first plan of attack is to deliver on profitability for the insurance company and 2024 for the full company. that gives us the full head room to start focusing on the tech stock. the reason that our mps is 47 now, which is way above everybody else in the industry, they're at near zero or less than zero allows us to do something very different in health care and that is to connect consumers directly to the provider networks instead of having to go through insurance.

so our idea is to empower physician groups and health systems around the country. >> let's talk one step at a time. how do you make the company profitable? what's been wrong to this point? >> i think it's been -- >> the insurance company. >> yeah, the insurance company, there have been a lot of travels we've been through in the last 18 months and a lot of discussions about how we think about running the economics of an insurance company. and i think we've learned together how to make oscar profitable. i think we're going to prove that this year. >> is part of that pulling out of arkansas and colorado? >> last year it was 85% down 3.5 points compared to the prior year even though we doubled. you can typically choose one of those two things. the fact that we were able to do that is a fantastic precursor to

this year. and this year a bit more growth -- >> the issue is really focus. let's get the insurance company right. let's not get too far ahead on our own program. let's get that right and move to the next step. >> which makes sense. my question becomes doing something to -- it's kind of the holy grail to have technology actually work to make it easier for consumers, to make it easier for doctors and hospitals to all connect. but it's an expensive proposition. you need a lot of money to be able to do that. and we are now talking about an outside era that's probably much more complicated just because of what's happening with the fed raising rates, with the banking crisis that's taking place and the idea that there's going to be a credit contraction. what do you do about that? >> number one, oscar is well prepared for recession or stagflation, whatever we should see. and there's a lot of arguments

about both. we are a place where people can come and get taken care of. secondly, i think once we prove out the tech stack and we're doing that now with our own business, i think we're going to find the investment necessary to make that happen, but we've got to get the company right. it's got to be profitable, we've got to be growing in a way that makes people want to invest in our company and move forward. so we're not going to do it out of just cash flow, we have to bring out investment. >> mario, you mentioned that the ai revolution is changing that whole playbook. what do you do differently? how will you shake things up yourself? >> so i personally dabbled in a bunch of algorithms for our care internally. more importantly, we spent ten years building an infrastructure. i think we're the only insurance company in the u.s. among the incumbents and startups that runs on its own entirely.

claims, payments, utilization management, member engagement, provider arrangements. that's a very fertile ground upon which to deploy ai modules and predictive modeling. i think we have a chance to be the most automated insurer that does the most work for very quick automation and i think a chance with mark to be the most intelligent system health insurer as well, meaning predicting and anticipating things before they occur, understanding how members will navigate the health care system and so on. we have the highest member engagements of any health insurer already. it is easy to deploy large language models that work for the member and the provider. >> ai is so suited to health care. it's mind boggling. drug interactions, prescriptions. doctors go to medical school for a long time. you see symptoms and regurgitate

whatever that is. you can take the doctor out of a lot of situations. you need them to interpret because it's an art, not a science, but so many things are -- >> to help the doctor. >> help the doctor, augment the doctor. >> the greatest thing about these models is that they sort of find hidden structure in existing language. health care is full of hidden -- of very sort of prescribed structure like cpt codes, diagnosis codes and so on that i think can be written more easily by machines. >> and you were both at bridgewater. >> yes. >> but this is not a cult, even though you're dressed in a uniform. you guys did not coordinate. you guys can anticipate each other's moves. >> it's a common health condition that's already flowing through our veins. >> joe wants a jacket. >> in the macro sense, we think

the market will become increasingly individual, especially individual hras which are being considered in legislation today. second low it's going to be more digital. the pandemic proved digital works in health care. and ultimately we have this kind of relationship with the customer experience. we think a smaller company like ours can move quicker and have them come to us versus having to acquire practices, and spend millions of dollars trying to beld a system. >> the market likes what you're saying. now the stock up 22.5% from where we were. mario, mark, thank you both for coming in. good to see you again, mark. it's been a while. >> we'll be back. >> thank you. when we come back, the cftc suing binance for allegedly breaking trading rules. we will speak to the commissioner of the cftc about those what do you see on the horizon? uncertainty? or opportunity.

whatever you see, at pgim we can help you rise to the challenges of today, when active investing and disciplined risk management are needed most. drawing on deep expertise across the world's public and private markets in pursuit of long-term returns... pgim. our investments shape tomorrow today.

still to come, scott

stallings give us his take on why he sees a recession by the end of the year. throughout the year in march we're celebrating women's heritage, sharing the stories of women leaders in business. here is fashion designer rebecca minkoff. >> i always thought someone would notice what we needed but we have to demand what we need and have a bit of fearlessness about it, even if we're scared. whether that's demanding a better work environment or equal pay for the same amount of work and experience. no one is going to do this for us. we have to be a little bit uncomfortable, stick our neck uncomfortable, stick our neck out and truly fight for what we glad we all got out today. been way too long. [indistinguishable chatter] sfx: [tees off] wooo. nice. sfx: [convivial cheering and laughter] definitely going a little to the left. ♪ piano music ♪ that's it! woah! finally! yeah!

markets get another key piece of inflation data this week. the personal spending and income report will be out this friday. joining us to talk more about the state of the economy and

resix risks, scott sperling, the chair of mass general brigham. thank you for joining us. >> my pleasure. >> did your view of the world change very much in the past two weeks, with -- >> i would say that the view i have had is that the macro uncertainties are as high as i've seen them in my 42 years in business. that has created an enormous amount of risk in lots of different areas, and i think the combination of that with the amount of fiscal stimulus and monetary stimulus we've seen over the last two years has created the situation that we're in today. i have no idea, obviously, about something like what happened with silicon valley bank. i think it's one more example of the unintended consequences of actions that more directly were positive that were taken during the pandemic, but just another

reflection that there are risks out there, as they say, that we just have no idea about. >> ask anyone, we talk about it so much, that you ask anyone on the street interest rates are going up, what does that mean? it's bad for the nasdaq, bad for tech. everybody knew interest rates going up can have a deleterious effect on things. why did we miss the ball on duration? and knowing that we are at zero for so long, shouldn't we know that there's a lot of paper out there that isn't mark to market and we're hearing more and more about it. loans, insurance companies, commercial loans, mortgage backed, real estate. everything is marked at par and it's not at par. >> i think the one piece of good news in that is that the nature of the securities, if you look at silicon valley bank, it was treasuries. so enormous exposure, enormous mismatch in terms of the

assets -- >> but money good eventually. >> one of the issues that we'll see flow through the entirety of the economy. i would say that the probability that earnings are going to meet expectations in the next couple of quarters is not high. i think that's going to be something else the market is going to try to absorb. i think we've migrated the economy to business models that are better business models and that represent a higher percentage of the public equity market than we had a decade ago. you know, i was saying to somebody today that in the four decades i've been doing this, there have been numerous times where we've said that next generation is going to have it much worse than we had it, there's not going to be any growth. and yet ingenuity, technology,

often deregulation leads to spurts of significant growth that's been very helpful to the u.s. economy and obviously we're a major player in the entire global economy. >> is it going to happen again? or have we run the playbook on that? >> i think if you look at what's going on in life science, the technologies driving improvements in life science, if you look at the things that have come out about ai and the possibilities it has to improve productivity, we're not going to get there, i don't think, by bringing rates back down to under 2%. >> that's interesting. the fed might be looking at the wrong thing. >> no, i think what they're saying is let's get it down to 4 to 5% and hope that productivity brings it down to a 2% target. so automation, productivity and lots of different ways are going to be critical to making that work. hopefully that will happen. but in the near term and midterm

i think we're in for more pain before we get to that point. >> is your base case before silicon valley bank, does it make it more likely that it might cause the fed to tap the brake on the rate hikes? >> i think the fed did the right thing by raising 25 bps. i think the messaging of not doing that would be very difficult. i think you all pointed out the fed has a credibility issue because they missed early on. i don't think the members of the fed are ignorant to the fact that inflation is the most insidious, most difficult to control of the financial ills we deal with and trying to bring it under control is important. >> what caused it? pandemic spending? >> not just pandemic spending, but over -- >> spending in general. >> over a decade we've seen the fed balance sheet inflate significantly. and then they had a massive

inflation. but it's also been the fiscal policies that have led to a hyperinflationary -- >> but staying at zero causes bad investments and staying at zero expands the balance sheet, quadruples it or quintuples it. >> and again, if we end up at 4% rate, 5% rate on a historical basis, historically that's not that high. that's not that high. we have just gotten used to free money. and free money creates these kinds of potential problems. >> in the last two weeks, i think the fed has unwound about 80% of the balance sheet tightening that it's done. >> they have. and if you look at what this most recent deal, they're basically saying bring all of that paper that's currently should be marked at 70 to 80 cents, we'll give you 100 cents for it. not sure longer term that's great policy, but, again, the

nature of the choices they have are not attractive. so you can look and say we should have let silicon valley bank do whatever it was going to do and all of the uninsured depositors which were an extraordinary percentage of their deposits, tough luck. but the flow-through of that is not worth it. i think they made a better decision even though it's not one that theoretically i like. >> given the ten years at zero, is just silicon valley bank, that's it? is that as bad as it's going to get? do you expect more? >> i think the issue that silicon valley bank confronted was more extreme because of the nature of their profile. i don't think it's unique. and i think we know that there are lots of issues out there. there are issues -- you know, people are -- have been investing in a number of things,

i think, that were the product of a bubble market, whether it's related to anything cyber anything or it's related to the value they put on a certain set of cash flows. and, again, the uncertainty about what those cash flows are going to be over the next two or three years i think is higher than we thought it would be and the discount rate is obviously higher. >> are you excited about opportunities? >> over the last five or six years, we've been more net sellers than buyers. not because we weren't trying, we just lost. now thankfully, but at the time it was painful. i do think health care technology, automation of financial services, fintech, obviously things like wealth management are areas that we've been major players in for a long

time. we just try to double, triple down on the things that we know we think better than others. >> the hungry traveler still open? >> i don't think so, but i don't know. >> really? >> burning questions. >> 1983 i used to -- >> yeah. no, i think -- i don't think they are. >> how many years ago. >> wasn't that in that little alley. >> yeah. the hungry traveler. it's gone? >> i'm pretty sure it's gone. but you know what, i don't know. >> when putnam moves in, they made it really beautiful in order to attract them and now it's a much nicer building than the one you remember. >> very good. i was at 1 beacon.

>> come back. >> i will. thank you. great to see you all. when we return, the cftc is suing crypto exchange binance rfo

a news alert for you. u.s. auto regulators are opening a probe into 50,000 tesla model x vehicles after receiving two complaints, reporting front seat belts. the national highway traffic safety administration said the preliminary evaluation covers 2022 to 2023 model years over reports of failures of the front seat belt to remain connected to the seat belt anchor while driving. neither of those incidents that were reported involved a collision. the stock is up by 83 cents. a quick programming note, we have some exciting streaming

news. this is -- this is really -- i don't get excited very often and this is exciting. you can now watch "squawk box" live weekday mornings on peacock. this is -- peacock was already good, but if there's any question about, you know, long-term, this nails it. this is going to be a very good service for a long, long time. dive into the latest headlines from the "today" show, cnbc and msnbc, streaming altogether exclusively on peacock with morning news live. that means you can watch us live on the peacock app no matter where the week takes you. head to peacocktv.com/morningnews. for more information on how you can start streaming morning news live. it is cool. >> we're excited. >> yeah. >> yeah. we're kind of special, i think.

new projects means new project managers. you need to hire. i need indeed. indeed you do. when you sponsor a job, you immediately get your shortlist of quality candidates, whose resumes on indeed match your job criteria. visit indeed.com/hire and get started today.

the cftc is suing binance, that's the world's largest crypto exchange, calling it an illegal exchange with a sham compliance program. joining us right now is rostin behnam.

this is the lead story in a lot of places, including "the wall street journal." what happened and what have you found in the investigation that you're doing? >> good morning, becky. good to be with you and joe. as you pointed out, you know, over several years we found that binance has been evading u.s. law, offering derivatives to u.s. customers and intentionally evading requirements to register with the cftc as both a broker, as an exchange for both swaps, futures and options. so this has been an ongoing practice. it's a clear, intentional method to evade law and because they're offering to u.s. customers, we felt like this is an important case to bring and sending a clear message across the crypto exchanges and crypto participants across the world. >> binance and others have said that they would welcome regulation that allows for a clear path. some of the things that you laid out in these charges that you put forth are more than

accidentally wandering into a violation of the law. this looks like it was pretty orchestrated, at least from what you put out. >> yeah, in the complaint it's pretty clear to use your word that it was orchestrated and there was an intent to evade u.s. law. there are things documented in the complaint as well about how to evade or create a vpn to get around the barriers with the internet to have u.s. customers access these markets across the globe. different entities set up overseas with not much in terms of funds coming from non-u.s. entities, u.s. control persons involved. it seems to be a pretty classic example of a very clear evasion, a very intentional evasion of u.s. law. given the volume, given the size of, as you pointed out, binance in terms of crypto markets and crypto volume, this seemed to be a pretty clear case of evasion

and something that we needed to step in aggressively with and do it as quickly as possible, because this was an ongoing fraud going back to 2019, an ongoing violation of the commodity exchange act so we felt we needed to move as quickly as possible. >> a lot of times you would anticipate that a company would say these are some rogue actors that are doing this. in this case it went to the top to c.z. himself. you have commentary or an exchange from one vip team member who was trying to court some of these u.s. market players saying hi, c.z., i went through a list of clients that includes a number of large strategic accounts including a chicago head quarter trading firm who is currently a top five client and 12% of our volume. his response is give them a heads up to ensure they don't connect from a u.s. ip and don't leave anything in writing. let's also make sure we don't hit the biggest market makers with that first.

a chicago headquarter trading firm, the name's been redacted. but they say was currently a top five client and 5% of our volume. do you go off the players that were clearly trying to evade the law as well?

>> well, i'm not going to discuss that at this point, you know, the focus of this complaint specifically is binance, the two individuals, both mr. jha and lim who are the chief compliance officer and their intent to violate the u.s. law. at this point, that's going to be the focus of the charges and the litigation going forward. and obviously, there's a counterparty to that, but right now, we're going to focus on binance, that is the source of the violation of the commodity exchange act and where the case will focus on. >> and binance's response to you, so far? >> i didn't see. i think there's been some press release or some very public quotes about, you know, disappointment, but the fact of the matter is, and becky, as you read yourself, the evidence speaks for itself, so we're going to vigorously continue and fight this case in court, and hopefully justice will be brought in this case, because i think the facts speak for themselves. and as i said before, many, many times, you know, this largely

unregulated market that is speculative, obviously, institutional investors, but a lot retail investors as well. there's a lot of risk and volatility, and in this market environment, it's incumbent on regulators to work vigorously and hard to make sure that we're stopping this activity, so we don't continue to see this illegal activity, this volatility, and ultimately, loss of customer money. >> meaning that the congress still hasn't acted to really give a clear regulatory framework, so both you and the s.e.c. are going to continue to do what you can within the purview of this. can we assume that this is the first of many other actions to come? >> well, look, we've been bringing cftc has been bringing crypto cases going back to 2014 and across the board in terms of individuals and institutions. this is just another case that i think is a continuum of what we've been doing. and as you said, we will use the

authority we have to the fullest extent of the law to make sure that we're bringing bad actors to justice. chairman benham thank you very much for joining us this morning. >> thank you. >> well, realation is not causation. bitcoin back over 20,000. coming up, house speaker kevin mccarthy is going to join us with the latest out of washington, sends a letter to the president about the debt ceiling and that situation, which is right in front of us, which is right in front of us, al going toso

what causes a curve down there? can it be treated? stop typing, and start talking. it could be a medical condition called peyronie's disease, or pd. and it could be treated without surgery. find a specialized urologist who can diagnose pd and build a treatment plan with you. visit makeapdplan.com today. lily! welcome to our third bark-ery. oh, i can tell business is going through the “woof”. but seriously we need a reliable way to help keep everyone connected from wherever we go. well at at&t we'll help you find

the right wireless plan for you. so, you can stay connected to all your drivers and stores on america's most reliable 5g network. that sounds just paw-fect. terrier-iffic i labra-dore you round of a-paws at&t 5g is fast, reliable and secure for your business.

good morning. senators preparing to grill top u.s. regulators on the collapse of silicon valley bank. we'll tell you what you need to know. meanwhile, on the other side of capitol hill, house speaker kevin mccarthy issuing a new call for president biden to negotiate over raising the debt ceiling. a special interview with the speaker, straight ahead. and alibaba shares, the company says it will split into six units. the investor reaction and much

more. the next hour of "squawk box" begins right now. good morning. welcome back to "squawk box" here on cnbc. we are live from the nasdaq market site in times square. i'm becky quick along with joe kernan. andrew is off today. we've been watching the u.s. equity futures and so far things have been pretty quiet. dow futures are indicated up by about three points. s&p futures down by about a point. the nasdaq is down by less than one point. treasury yields have picked up from what we've seen in recent days. in fact, this morning, the two-year is back above 4% at 4.107. ten-year is above 3%. and then crude oil, after wti's best dice since last october is giving back just two cents of that. among today's top business

stories, chinese check giant alback says that it will split into six business groups. five of which will have the ability to raise outside funding and go public. designed unlock shareholder value and foster market competitiveness. the stock is up by 10%. disney axing the corporate division that was developing metaverse strategies, according to the "wall street journal." disney is currently in the process of laying off about 7,000 workers. and the u.s. commodities and the founder of binance offering what the regulators called an illegal exchange and a sham compliance program. we spoke with the cftc chairman just a few minutes ago. >> this seems to be a pretty clear case of evasion and something that we needed to step in aggressively with. and do it as quickly as possible. because this was an ongoing

fraud, going back to 2019, an ongoing violation of the commodities. >> they called the lawsuit unexpected and disappointing. she said full responses are forthcoming, but on an initial review, the cftc's complaint says that they give with the way regulator characterizes many issues. >> speaker of the house kevin mccarthy sending a letter to the white house this morning, urging president biden to get back to the negotiating table to talk about an increase to the federal debt limit. in the letter, speaker mccarthy says in his words, we cannot solve the nation's fiscal problems overnight. and house republicans are not demanding we do so, but we cannot continue to kick the can down the road and ignore america's ballooning national debt, all while you continue to spend trillions more, including through unaccountable executive fiat. the white house press secretary meanwhile provided us a

statement that reads in part, it's time for republicans to stop playing games, agree to a path of clean debt ceiling bill and quit threatening to wreak havoc on our economy. and joining us now, house speaker kevin mccarthy, mr. speaker, great to have you on to highlight this first on what's contained in your letter. you saw, welcome, thank you for joining us. we can see what little tremors do in the financial system. we've seen that the last couple of weeks, which makes us think what a true impasse would mean, if something happened here. given what you're saying and given the response from the white house press secretary, it doesn't seem like we've made any progress since that meeting you had two months ago, with president biden. >> we've made no progress. and joe, you know me, i'm always an optimist. they asked to raise the debt ceiling. they control the senate. they can't pass it in the

senate. even democrats in the house tell me, they would not vote for that. so that's off the table. the president and i met more than two months ago. since that time, he has misled the whole congress and the country. when we were together at the prayer breakfast, he said, we're going to sit down the next day, told the entire congress that we're going to meet. at the democratic retreat, he told the democrats that they were planning meetings. he's never had one meeting that's been more than two months. time is ticking. now i'm very concerned about where we are. look, we came with an idea of being very reasonable and responsible, to limit, save, and grow. we picked ideas that democrats had asked for, limit the amount of spending. that's what joe manchin says. the outgrowth, nondefense, just cap how fast you can grow. find savings. we have billions of dollars of unspent covid money that's sat dormant for more than two years. you can grab some of that back. find our ability to grow this economy through energy, maybe

you do something when it comes to securing our border. maybe you do work requirements, things that he voted for as a senator, which bill clinton put in. for those with no dependents. these are ideas that we have more than $4 trillion in savings. and now the economy is even in a worse position, because of these extreme spending levels that they took with all democrats in power. i am more concerned than i have ever been to be able to get this debt ceiling done, because he refuses to meet with anybody, and then this leaves the american public, and the markets aren't seeing that. >> in the letter, you say, i have no interest in brinkmanship, but it seems like both sides are, at least at this point, ready to take it there. and do you see any, any room for negotiation at all at this point? what if the president, everybody time -- >> no, no. >> what if he says, we did it during trump, two or three

times, with a clean raise, democrats gave you a clean raise, we want a clean raise. you'll never do that? >> no. no. joe, we never did it clean during trump. you can talk to anybody there. you can talk to nancy pelosi. what they did was, we'll raise the debt ceiling if you add more spending. it was an agreement between the two. joe biden did this in 2011. the joe biden agreement talks. every time you have a discussion, 74% of the american public wants us to sit down. we're now in a more extreme position than we've ever been with the democrats in power. they are spending more than in the 50-year average. normally we only spend about 21% of gdp. they're up to 23.7. we just had the congressional budget office tell us, we're going to have pay more than $10.5 trillion just in interest in the next ten years. but in the last 80 years, we have only had to pay $9 trillion in interest. we are at a brink point. we now have a banking crisis, because of interest rates going up, because the democrats'

extreme spending levels. the republicans are not playing brinksmanship. i'm not interested in that. i want to sit down. i went to the president in the beginning of february. i told him very up-front, everything's on the table. let's talk about where we can find ways. let's see where we can grow this economy. from the very beginning, he told the american public after that meeting, even tweeting, yes, we can work together. he told congress, yes, we're going to meet. we told the democrats at their retreat, i'm going to meet with kevin. the only difference is, he won't he wants to create a crisis here, and that's what i'm concerned about. the american public has to be warned, based upon what this president is doing. if they think they can just raise the debt limit, why don't they vote for it tomorrow. >> probably a good idea to get out in front of it. >> that's exactly what i'm doing to tell the country what this president is telling you and his

actions are totally different. >> you know it's going to be characterized that -- and i can tell you, the biden administration, in reading the response from the white house press secretary, it does not give me much hope. i don't know -- did you read the response -- >> i'm not sure what that press secretary ever says. she believes the border is secure. she believes we don't have inflation. let's be very serious with the american public. we are being rational and sensible. everything's on the table, so let's sit down and talk and put us on a better path. we have picked ideas that democrats have opposed. joe manchin believes in limiting the amount of growth in the outyears on non-defense. i agree with that. we've looked at ways that we can pull money that has just been out there dormant for two years. why not pull that back if it's just sitting there. save the taxpayer money. why not look for work

requirements for those that don't have independents. that means you have to look for a job. that means you can volunteer. these are things that senator biden voted for. why don't we find ways to grow this economy, to make us energy independent? why don't we secure our borders, stop killing americans. >> when the president did put that budget out and i will grant you that we even had some democrats on the show that said, okay, it's a starting point and it's obviously, it's clear that this will not be the final budget that could ever pass. but, critics say that you haven't put anything out. and here's -- this is contained in the response from the white house press secretary. if the republicans want to have a conversation about our nation's economic and fiscal future, it's time for them to put out a budget, as the president has done with his detailed plan to grow the economy, lower costs, and reduce the nearly -- the deficit -- i'm sorry, yeah, reduce the deficit

by nearly $3 trillion. so, do you have something to present at this point? a budget? a blueprint? >> let's be very honest about this. the budget doesn't have anything to do with the debt ceiling. i could pass a budget tomorrow. it will still need to pass a debt ceiling. the budget looks at ten years. these are apples and oranges. i sat down with the president in february before he produced this budget. they were more than a month delayed. but that does nothing. i have $4 trillion in savings that i personally told the president, while we sat only because it was st. patrick's day, on ways that we could find savings and come to the table. if the president would have a meeting, exactly what i told him, i would have all the $4 trillion sitting there and provided to you. you can mark it up, tell it to the public, you can do anything you want. the difference here is, he wants to play politics with this, and i do not. i think we should be adults in the room, sit down the way the american public expects us to do, just as a way that government is designed to do. and let's find common ground and not put us into jjeopardy, whic

is exactly what the president is doing right now. >> if you are less optimistic than you have been and you started off the conversation that way, mr. speaker, can you give us some type of road map for how you expect this to play out? i will just tell you that it's tough to win this pr war on the debt ceiling. republicans -- both sides are going to get -- you wrestle with an animal that lives in a sow, you're both going to get dirty. everybody's going to get mud on them from this. and the american people just sit back and go, it's just washington as usual. how do you see this progressing to where we do avert this, because we do not want the catastrophic -- we don't want to test the system with some sort of catastrophic event with the debt ceiling. >> joe, that's exactly where i started where i have. i never once wanted to play one

of the other. i sat down with the president for have the beginning and say, let's negotiate. we don't predetermine what happens here. we know we have to spend less. let's limit, let's save, and let's grow. i told the president we're not going to raise taxes. and raising the debt ceiling, democrats can't even do that. pass that in the senate and send it to the house. chuck schumer can't do that. and democrats in the house tell me they won't even vote for that. you know what, let's not play brinksmanship, which i will not do. let's sit down, let's be reasonable and rational. put your ideas -- i've got $4 trillion different ideas i'm ready to discuss. he won't even let staff go there. i want to put the american public first. that's why i'm talking to you. the markets think that this is all going to get done. why? because the president has misled america. then at the prayer breakfast. then at the democratic retreat. he told them that we are meeting. i don't want to go down that route. i want to solve this problem.

i want to do it today. i don't want to wait until the moment of the time. why would we even do that? especially after the runaway spending and the extremism that the democrats have provided. now we've got challenges in our bajjing system. this is not the time to play games. why is it irrational that republicans and democrats sit in a room together to try to find a solution. when in america that that became to be wrong. i'm the one saying, let's sit down. maybe we can't find an agreement, but shouldn't we at least try? i believe we can. >> speaker mccarthy, you bring up the banking crisis that's taking place in the background. and we had a calmer weekend this weekend after two pretty hectic and frantic weekends of negotiating. i just wonder where you think things stand on that front. do you think we're through the worst of it or there's more to come? >> i think we're through the worst of it. but i'm concerned.

you have trillions of dollars uninsured. if people want to move that money, 200 banks would be in trouble. i'm concerned that you have regulators in california that missed this. you watch the growth of deposits there in silicon valley bank. you've got a regular ural that won't even come before congress to talk about that that was a former staffer to maxine waters. this is a state-chartered bank. why did we miss all the warning signs there? and that makes me concerned in the future. and the last thing we want to have happen is that we don't -- is that you go to brinksmanship, as the president is doing here when it comes to the debt ceiling. you want to know what would help the banks right now, if we came out with a debt ceiling agreement months in advance. the american public would say, yes, that's what i expect of our elected leaders. and that's exactly what i want to do. that's what i'm working towards. and that's what i'm requesting. but you look at the extreme position of the president, not to negotiate? at no time has anyone ever taken

this position before. this is just too extreme to deal with this situation. >> speaker mccarthy, there have been some calls for blanket insurance of all deposits. and that's gotten pushback from more than 40 members in your party. if push comes to shove, if there are worse problems down the road than you think -- where would you come down on this? what would you like to see happen? >> i don't think we need -- i don't think we need that at this moment in time. i think -- >> at this moment in time? >> yeah. i think where we are -- and i don't believe that's the position that we should have at this moment. i think we should look at where we're going, we've gotten through the difficult part right now. but the number one thing, i think we can do to secure all of that, get a debt ceiling done now. >> mr. speaker, i want to just -- while we have a couple of minutes left, i want to ask and talk to you about tiktok and what your thoughts are there. it has been kind of a bipartisan issue, the chinese finally bring us together on something, but

i've started to see some murmuring on the left about the idea of banning tiktok and, you know, everybody want os get young voters and a lot of people, 150 million people apparently love this -- i haven't been on it, but i love tiktok. do you think it should be banned? is that politically palatable to both sides now? are you going to lose one side that, i don't know, feels like they can -- if they were to ban it, i saw democrats, they will never get another vote from any young people. >> i don't want know. if 150 million americans knew that their data was being used by the communist party of china, would they be concerned about using it? do we have a responsibility as policy makers -- you have the co to tiktok sitting before congress that literally admitted that he could not control the data used by the communist party of china. he just wanted to determine, well, there's different definitions of china. we've watched china and president xi actually changed his constitution where he could

serve longer. we've seen him only leave his country twice during the pandemic, both times to meet with putin. i think the last administration had it right where tiktok should have been sold where they kept the data in america to an american economy. i think there's a real concern here with the growing rise of china, their desire of what they want to do, and i think it's policy makers, if you have information and you don't protect the american public, you're not doing your job. if you're more concerned about getting votes than you are about securing the nation itself, that's a concern to me. but i believe that there are votes on both sides of the aisle, to change tiktok as it currently stands today and to protect the american public on their data moving forward. >> all right. mr. speaker, thanks. please be in touch with us if you -- if things start moving. if people start talking, hearing the president about how to handle this. i think the markets are watching.

and you know how time flies. it goes very quickly and this was coming. coming straight at us. speaker mccarthy, thank you. thank you for coming on "squawk box" today. >> okay. when we come back what to expect a little later this morning when senators dive into the collapse of silicon valley bank. and we will get into the question of whether financial firm rescues are ultimately a good thing or a

[ ominous music playing ] here we go! level up your speed. mario! yea! [ screaming ] introducing the xfinity 10g network. super fast internet today. with even faster speeds tomorrow. woo-hoo!

more changes to twitter. ceo elon musk says starting mid-next month, only verified accounts will appear in the service's recommendation feed. up until now, users have seen suggestions about people to follow, regardless of whether they have twitter's check mark or not. i have never followed someone that they've suggested, ever. musk says that the move is the only realistic way to address advanced ai botswarms taking over. it's other side a hopeless losing battle. and also, my blue check mark, am

i -- i'm going to be like other people. i'm not paying for that. i won't. take me off, i don't care. >> and the last time this happened, they had companies trying to be pfizer putting out statements for eli lilly. >> will you pay -- i don't care about -- >> no, i'm not going to pay for my check mark, but it means you'll have a lot more impersonators of people and companies -- >> i've already got that on instagram. a great trading scam. >> the blue checkmark was the best way of indicating that it was someone -- >> i just don't care. although, i didn't think i would pay for sirius xm, either. but i don't think i'll -- you won't pay for -- >> on the other hand. here we go again. you don't -- >> i'm not. >> you won't play for your blue checkmark? >> no, i think you're selling out by doing that, thinking it's important enough to have the blue checkmark. >> i don't know, make my day pb

close me down. >> i find myself using it less. i don't think the number of trolls on twitter has dropped under any of these measures. i feel like it's -- >> it's a weird dynamic. it's a weird dynamic, what people feel free to say on twitter. you would never say that to a stranger -- >> you would never say it to the person. >> unless we've just lost all -- >> decorum. >> yes. and manners. it's horrible. >> yeah. >> horrible. >> excuse me, sir. have you no decency? >> we have some exciting streaming news to tell you about this morning. guess what?! you can now watch "squawk box" live weekday mornings on peacock. you can dive into the latest headlines from the "today" show from "squawk box" on cnbc, from "morning joe" on msnbc, all of this happening streaming together exclusively on peacock, on "morning news live." that means you can watch us live on the peacock app, no matter where the week takes you. head to

peacocktv.com/morningnews for more information on how you can start streaming the morning news live and we are excited about it. >> so it's like the morning show. >> yeah. >> it's nbc's morning offerings. >> morning offerings. >> awesome. coming up, why are americans having such a hard time finding having such a hard time finding some of the most ll-knownwe the hiring process used to be the death of me. but with upwork... with upwork the hiring process is fast and flexible. behold... all that talent! ♪ this is how we work now ♪

they are some of our oldest and cheapest, but our most crucial drugs and the most common to be in short supply. cnbc's meg terrell has more on what is causing the issue. >> it was a lot of coughing, a lot of sneezing. it was horrible. i couldn't breathe. >> 25 weeks into her pregnancy, crystal santiago had limited options for treating a bad infection. >> there's only so many antibiotics that can be prescribed during pregnancy safely. >> reporter: her doctor prescribed amoxicillin, but it took her three days ago to find a pharmacy that had it in stock. a doctor herself had trouble finding amoxicillin for her

baby's ear infection. amoxicillin is among the more than three dozen antimicrobial drugs, include antibiotics, in shortage in the u.s., forcing patients to use sometimes less-optimal drugs or delay treatment. manufacturers of amoxicillin like teva pharmaceuticals site demand increases. but shortages are a problem that's been going on for decades, for many different drugs. they've now reached historic levels. >> there is a high cost to cheap drugs. >> many antibiotics are old drugs and they're inexpensive. manufacturers don't have as much incentive to invest to ensure continuous supply. moreover, a senate report found about 80% of facilities that make the active ingredient for some critical drugs are located outside the u.s., leading to a lack of visibility into supply chains. the pandemic exacerbated problems with an already fragile system. now, experts like eric say it's

time to act. >> my concern is that we don't resolve this now and build resiliency into our pharmaceutical supply chain, we're not going tofr do it. and we'll be dealing with this for 50 years. >> and guys, we reached out to the makers of amoxicillin. novartis' sandos generic unit got back to us and said it's investing to support european manufacturing of generics and other antibiotics, but this is an all-too-familiar situation at this point, particularly for these old, cheap, generic drugs. we'll take a look deeper into that part of the story tomorrow in the second part of our series. becky? >> meg, is this more than the sort of supply chain issues that we've seen in other industries, especially after the pandemic. this was something that goes al deeper? >> it absolutely does. the pandemic exacerbated this, but it's been a problem that's been going on for decades, particularly for these old, inexpensive medicines. and so what we've seen with amoxicillin really is tied to that crazy flu, cold, rsv, all

of these different bugs season, even though you wouldn't take antibiotics for rsv unless you have a secondary bacterial infection, so we heard about that through the winter, but we don't have reserves in our supply chains to make up for shortfalls when demand goes higher than expected. and certainly when there are interruptions like something like a pandemic or even less than that, just a plant closure, we don't have enough functioning supply chain to back that up when we run into an issue like that. >> it was an issue with children's tylenol and all kinds of other drugs that aren't even prescription drugs over the last year, too. looking forward to the rest of the series, meg. thank you. >> by the way, folks, we want to take this opportunity to mention cnbc's healthy returns. you can join virtually tomorrow. we'll be convening ceos, scientists, investors, and innovators in the health care sector to reflect on the progress that's been made to reinvent the future of medicine. including the newest drug breakthroughs and device innovations. if you're interested in join, you can scan the on-screen code

right here to register, or visit cnbc events.com. coming up, rockefeller international chairman and international chairman and former morgan sfstx: [soft beach sounds] c'mon ref, that's a foul! jay? jay's back? gimme a time out. huddle up! i call the time outs. didn't expect to see me so soon, huh? well, i invest in a fund that fuels innovation, like next gen video conferencing, and when i saw your defense in the first half, i had to step in! anyone can become an agent of innovation with invesco qqq, a fund that gives you access to nasdaq-100 innovations. coach, what are you doing?! this thing goes fast. before investing carefully read and consider fund investment objectives, risks, charges, expenses and more in prospectus at invesco.com

welcome back to "squawk box" right here on cnbc. watching the futures this morning, things are a little bit weaker. we've been bouncing back and forth around the flat line. this morning right now, dow futures down by about 22 points. >> three of the government's top regulators will face senators' questions today over the collapse of silicon valley bank. steve liesman joins us now with more. hey, steve. >> good morning, joe. yeah, political axe is already swinging this morning, hours before the first hearing on these recent bank failures with democrats blaming deregulation under the trump administration. republicans pointing the finger at the biden administration's fiscal spending. and the regulators are doing a little subtle finger pointing at each other. sherrod brown, the senate

banking committee chairman will save the official sitting before us today. know that their predecessors rolled back protections like stress tests, and even basic supervision. they greenlighted these banks to grow too big, too fast. the spokesperson for tim scott, the ranking member, will say that scott will focus on the message that the turmoil in the bank sector is a three-part failure caused by bank mismanagement, supervisory neglect, and the biden administration's price increases that caused the need for interest rate hikes. the regulators will seem united in putting the blame first on the bank's own failures, but the bank failures don't explain the failure of the regulators. in testimony yesterday, we learned from michael bar, the vice chair of is supervision that supervisors made five different findings of problems at silicon valley bank, and they don't explain the actions of the federal reserve board, which we now know was presented with

silicon valley bank's problems in mid-february, a month before the collapse, with no information on what the fed board might have done about that. finally, the overriding issue of the fed's monetary policy. the fdic chair points to the rapid cuts in rates and their rapid rise in stressing, and by the way, he says continuing to stress the banking system. this is likely only the first chapter in a saga that could ultimately result on more regulation on mid-sized banks and more focus by the fed on the chaos that its interest rate policies can create. joe? >> thinking about a lot of different things. i can tie moral hazard to the fdic, eventually, steve. even though it's not taxpayer directly, you can connect the dots to where if the fdic and i'm referencing one of the op-eds in the journal today, the

lead op-ed, about this is just a bad precedent. the fdic's job is to try to protect all the member banks from really getting hit hard with this. now, svd was definitely an outlier, but everyone will end up paying for this. and if it does, hopefully the stage is stemmed, that it's not systemic. but if it wasn't, the fdic stuck with $90 billion of these loans to companies, a lot of the loans are probably never going to be above water, steve. and there's a reason why first citizens was up 50% yesterday. that was like a sweetheart deal. and we got -- the fdic got stuck with it. and even though its member banks that are going to get the short end of the stick, they'll raise fees on us or something. we'll eventually have to eat some of this. >> yeah, joe, i read that editorial, as to whether there were certain ideological impulses that might have motivated the sale. but essentially, there was a bidding process here. and let me point you to one

other issue, joe, which is that the dodd/frank rule prohibited regulators from coming in and saving a bank before it went down. because you could not give individual assistance to an existing bank. and every regulator i've talked to or former regulator said it's easier and less expensive to help a bank that's failing rather than one that's closed already. so what might have cost them $5 billion -- >> yeah, it's just hard -- >> it might have cost them $5 billion before they closed, it cost them $20 billion later. sorry, go ahead. >> it's hard to separate out the ideological -- we know mary daly and the san francisco fed, you know, the risk that they're more concerned with had to do with inclusion and climate change, not really duration risk out there. >> i don't think you can say that, joe. just because they did one thing doesn't mean they didn't do enough. >> the hedge funds weren't allowed to come in and bid on it, because they don't like fat cat hedge funds that have the carried interest and everything. the way that it was all -- there

are supposedly other entities interested in bidding that were unable to, because they weren't politically palatable to elizabeth warren and her contingency in the senate. >> joe, it is interesting that both regulators -- sorry, regulators from both parties wing, did not want to see a situation where the bigger banks got bigger, right? that was sort of the situation. >> exactly. >> and the manifest idea, joe, that all of this deposit money went to larger banks tells us that we still have a series too big to fail problem. so, i know what you're saying, and i've heard those stories before. we're trying to report their accuracy, joe, which is, certainly going to hopefully be something we hear during the hearing today, but nobody really wanted the big banks to get bigger. and that's one reason why maybe some of the -- >> create another big bank. because now first citizen's is too big to fail, probably.

>> right. >> it's over $200 billion. >> yeah, over $200 billion. all right, see you later. >> joe, i'm not going to get mad at you for a long time over banking regulation. there's other reasons why we might be mad at each other. >> a lot of -- >> banking regulation is not the thing. >> you have twitter. ideology is everywhere, steve! the world is -- >> i know, i know. >> i know. >> and we're so much better for it. >> there's no way around it. >> i don't know. they cut him off. sorry, steve! we'll see you soon. >> i have a button. >> no, that was the control room. they're about to cut you next. our next guest argues that a culture of bailouts is destabilizing the global financial system. we want to bring in rockefeller international chairman, ruchir sharma, the founder and cia of investment firm breakout capital. his latest piece for the "financial times" entitled, "the unstoppable rise of government rescues", and ruchir, your point in all of this, this is a fine

mess we've gotten ourselves into and you don't know how we get out. >> exactly. the founders of capitalism had a minimalist government culture in their mind. and that's the culture we really followed until we had the great depression, when strength was taken too far, it became a weakness. and it became the great depression. since then, we have gone in terms of increasing the scope of government in the economy. and the irony is this. that just in the 1980s, even though we think of it as a period of unfettered capitalism and deregulation, that really marked the starting point of when you got this culture, you had the first big bail out of a bank. and since then the bailouts have gotten bigger. the rescues more frequent, and we are in this position, where

everything is too big to fail and the interconnectedness of something that scares us. is a long arc. and we've argued that the fdic, $90 billion. and that is not the main story here. the main story is, why do we have such low productivity growth in the economy today. and productivity has been falling over time. and i think that one of the main reasons for that has to do with the fact that we have so much government intervention, which is undermining the social fabric of capitalism. >> ruchir win hear your point, but i think there are going to be a lot of questions. and we've been talking this morning about what comes next. if you're going to paper over some of the banks' problems, you then have to do it for commercial real estate, do you then have to do it for insurance companies or for anybody else whose holding these instruments that have been marked down significantly, because of the rapid rise of interest rates.

i hear your point, that it creates a really bad problem. it doesn't fix things. it just kicks the can down the road. but i think the bigger question that people are asking right now is, what happens if they don't? what's it look like? >> exactly, so i have no doubt that they're all going to be rescued, right? because there is no appetite for any pain, in terms of the political consensus is not there. so i have more debates. so what should be done and what will be done are two very different issues. in terms of what should be done, i think that everyone is going to be rescued. because once you set a precedent, it's very hard to back off from it. >> i will tell you right now, regulators and the fed, the treasury, don't really have the tool box to do this themselves. they need approval from congress. and congress does not seem like it's in a mood to offer up any of these rescues. so you may be right ultimately, but it will be pretty ugly and messy before you get congress to

say, yes, okay, we agree. >> yeah, the government is trying to find all sorts of ways to get around that problem, but not explicitly guaranteeing the sort of thing will be there. i think the broader point is that, why are we seeing lower and lower productivity growth over time? i'm just trying to point out we should be writing, what's the price we're paying for that. why do we have productivity growth of half a percent or so? in terms of productivity growth. where it used to be 2% for much of the capitalist history. why do we have zombie companies in this country to date that are 20% of all companies in this country today are zombie companies. that number used to be 2% in the 1980s. so i think that my point here, just to point out that all of these actions have consequences. we keep thinking, maybe there'll be a debt crisis. that's what the consequence of all of these actions will be,

but that's barking up the wrong tree. because the u.s. still has incredible capacity to bridge money, to run up debt and zbefts. this shows up in lower productivity, lower economic growth, and therefore, less living standards and surveys showing that a lot of americans are not happy with what they're getting, but can't seem to point to what really is the central problem. >> ruchir, thank you for pointing all of this out. i think it's a discussion that we will continue for some time to come. but it's good to see you. >> thank you. when we come back, we will get jim cramer's

let's get down to the new york stock exchange and check in with jim cramer. jim, a little bit quiet at least on the futures front this morning. but there are some things out there. i guess we're trying to figure out, is this the calm before the next leg of the storm or should we feel better, feel like things are getting kind of wrapped up here. >> well, i think they've got first republic is making the calls, trying to make people realize that they're fine. they could have success with that. they've got a good rolodex. it's still not like a concentrated group of investors who are able to pull out so quickly in silicon. so if you get first republic kind of just to slow the velocity of this thing, it's

just going to make it so it's more likely that it's not going to be disruptive to the entire market. and i'm not saying they can pull it off. i'm just saying that we want the market to kind of calm down, a couple of good earnings reports today. wall green is okay, last night, pbh was very good. and so i think people -- i don't want togood. >> yeah. >> i don't want to say people are filling it up, meaning there's nothing to say. i do think being quiet would not be bad for us. yeah, i mean, you know, look, we've had a brutal period. we just need to slow down a little bit. >> that would be a good thing. i think we all need a little bit of a break. >> yeah. >> in the meantime, what are you watching, what are you doing with the -- >> that was a great interview. >> it's interesting watching the fcc and the ftc dive into this, where congress has done nothing about determining what the regulatory landscape should look like. >> i think you hit the hail on

the head, becky, you have the finances, fcc saying the coin based regulations. no one is going to the justice department, they don't seem to be approaching that coin base is safe. i want to -- using the word "viciousness" both in the commission has historically not tolerated anything like what coinbase is doing. they don't seem to see any criminality. they're basically saying, look, this is an organization that doesn't belong in this country and they're going to try to get an injunction. they ought to go in front of judges to get this straightened out. typically, they do go in front of judges. i wonder who in the commission, the actual commission, is stopping the s.e.c., and what they're worried about. why talk. why don't they just act. showing know respect, for almost everyone in the country respects. i mean they mock, the mock the

ftc. these are real organizations, you take up your hands and mock them, i'm trying to figure why that is. >> let's see if that continues. certainly seems like they're amping things up. >> coinbase is not -- they're a company that works in this country. typically, a publicly traded company can be shut down or brought into the commission in a much more vicious way than the current. i want to see actions, no more words. >> i kind of thing their tiptoeing because there's clearly no authority coming from congress. >> clearly, you're right. you're just totally right on this, becky. i'm going to find out who is behind the succession. i've said that to todd, the producer. i'm just going to find that out. these guys have to be outed. somebody is clearly saying, we want this.

i want to see if they're just bored about financial deregulation. or because they're hacked. >> there is a thing for you, jim. jim. we're watching u.yo what if you were a global energy company? with operations in scotland, technologists in india, and customers all on different systems. you need to pull it together. so you call in ibm and red hat to create an open hybrid cloud platform. now data is available anywhere, securely. and your digital transformation is helping find new ways to unlock energy around the world. how do we show strength and stability? and your digital transf(eagle call)helping a mountain? a tree weathering a storm? (thunder) lions? nope. (lion rumbles) we do it with our people.

♪ ♪ the vehicles are all-electric. the feeling is all mercedes. the choice is all yours. see your dealer for exceptional offers today. (funky electronic music)

(narrator) invest in. believe in. move in. grow in. build in. thrive in. all in north carolina. ranked america's top state for business. ♪♪ alex! mateo, hey how's business? great. you know that loan has really worked wonders. that's what u.s. bank is for. and you're growing in california? -yup, socal, norcal... -monterey? -all day. -a branch in ventura? that's for sure-ah. atms in fresno? fres-yes. encinitas? yes, indeed-us. anaheim? big time. more guacamole? i'm on a roll-ay. how about you? i'm just visiting. u.s. bank. ranked #1 in customer satisfaction with retail banking in california by j.d. power. (funky electronic music) ranked #1 in customer satisfaction with (narrator) breathe in. jump in. strap in. live in. join in. thrive in. if you're all in, it's all in north carolina. ranked america's top state for business.

blackrock strategists say that the fed will keep hiking rates despite creditors. cameron dawson, a chief investment officer is joining us from new edge wealth. cameron, you've been taking jay powell, i think, at his word for a while. and as a result, just not too enamored of going into stocks and equities. after what happened, and the idea that maybe a cause for the fed to pause, or maybe it's done some of the work for the fed, are you feeling better about the prospects for the stock market? or even worse? >> well, it all depends on the path of earnings, because just because the fed cuts rates or

starts to ease policy. if you don't see downside to earnings estimates that would be very bullish, similar to assets, similar to what we saw in 2016 and 2019, where the fed started to ease policies but we didn't have an earnings session so stocks said great. now, if we do have an earnings session, that's where fed rate isn't bullish for estimates yet. we have to watch estimates being lowered with higher risk in the wake of regional banks. we think one of the reasons markets have been so resilient over the last few week is because you haven't seen cuts to estimates yet. now, that may reflect certainty or uncertainty about what the overall impact these banking issues will have on the overall economy. >> the blackrock stance that that company takes, if earnings are definitely -- if estimates

are too high. and we're definitely going to see some credit contraction, and we'll see, you know, a lot of thing the fed has already done, we'll see them start taking a bite out of growth. is that the right move for the fed? to just stay -- do you think they'll go another 25 and then 25 after that? do you think that's the right move for the fed, or do you think they've been chastened maybe by what happened? >> well, we do think that the ultimate impact of banking issues will affect the credit channel, as you said. and that if you see loan rollover, that's typically consistent with the fact that you're going into a recession. the problem with that is that it's very lagging. and it tends to move slowly. so, we think about the may meeting coming up, we'll only have march data to consider at that may meeting because the april data comes after they meet. so if you see continued strength within the march data which won't reflect any rolling over

in loan growth, then the reality could be that may still be a very much alive meeting because they're still very much in this inflation-fighting mode as we heard from powell last week and as we'll likely hear from sub-speakers this week. >> with the change, with the ultimate lows -- have the lows fallen for 2023? >> we think it recaps the october low or the december low, it really depends on the path of earnings estimates. if we do see earnings estimates get hot, if we start to see a rising risk of recession, then the lows aren't in. but if the economy hangs in, we don't see loan growth fall off a cliff then the fact that we went low, the december lows might fold. but on the upside, we see a lot of challenge getting above 4100, because you're trading a lot of

time at 4100, even if the fed pauses with interest rate cuts wouldn't necessarily go into the multiples, above 19 times. so we're really looking at a range-bound scenario at markets probably for the remainder of '23. >> very good, cameron, thanks for the update. >> thank you. >> the more things change, the more they stay the same. make sure you join us tomorrow. "squawk on the street" coming up next. ♪♪ investors good morning, welcome to "squawk on the street." jim cramer, david faber on the new york stock exchange. the market fairly stable following a light volume day. in about four weeks, bank regulators on the hill earnings from walgreens, pbh. and the breakup planning to split into six units and explore separate