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 and andrew ross sorkin. if you look at what is happening, there is some red across the screen at this hour modest declines at this had point on dow down 36 points s&p off 3.5. this does come after a down day yesterday. the dow was down for the first time in three sessions yesterday. take a look at what is happening in the treasury market you see yields right now for the 10-year treasury are 3.66% 2-year treasury at 4.45% andrew. the s.e.c. filed 13 charges against binance as well as its founder cz alleging commingling of funds. announcing they sent the funds

to the european company controlled by cz la allowing customers to continue trading on the unregulated exchange on vpns the s.e.c. accusing binance of what is called wash trading to prop up the price of cryptocurrency cz dismissing the charges by th number four eurging uses to ignore the fear and doubt. he said he was disappointed with the s.e.c. choosing to file the complaint and engaged in good faith discussions to reach a negotiated settlement to revolve the investigation. the s.e.c. abandoned the process and as joe mentioned, you look at bitcoin down to $25,764

lots to pick over there. this is so many of the elements of the case which signalled prior from gary gensler who will be on "squawk on the street" later. we talk about sbf and i don't know how many ftx issues we want in the same bucket could mbe commingling the bigger issue is the vpn activity >> he figured he would let high net worth people trade on those. >> anybody who wanted to pretend to be in a country which is allowed to do business with them and pretend they were not in the u.s. that, itself, is illegal a lot will come out. >> this is an important case it is going to set the tone for what is allowed and what is not.

the s.e.c. has a lot riding this to make sure they say these are the rules of the road. if you don't follow them, you will be prosecuted >> i'm struck with the underlyingassets. if you thought stratton owned stocks -- >> does that impact crypto and crypto coin? >> that is the other piece the other piece which i thought you were alluding to is if you have this case and the ftx case, you think it would tell us where the s.e.c. is and now the s.e.c. going after coinbase which is a u.s. company -- i would have thought if anyone is a winner, that they would be the beneficiary of all this. maybe not.

a lot of the assets or crypto or whatever you want to describe them as will be on that plat p fo -- platform. >> this is the fake it until you make it and move fast and break things meets the regulatory oversight. it may be slow in getting here, but it is here one of the huge -- >> uber in the early days. >> ice age you saw how far down the ice came it comes down slow, but mows over and collapses things. this is once the regulators get. there it doesn't matter. if they don't like what you are doing, you will have a serious problem. >> can you do something somewhat right? i don't know if there is a gradation of right. >> under the law >> in general. you either do things right or you don't. >> although i would argue there is grade here. we don't know the rules. >> there are nuances in everything. >> no lawlaws.

it is hard to break them >> fear and uncertainty and doubt. three things the fourth the fourth thing we are supposed to ignore? did i not understand what it means? >> i see >> you said it meant ignore fear >> ignore fear ignore fear. uncertainty. >> huh >> it is not an acronym. it is not the initials the verb to ignore these three . four power to the people. do what you want if you are trading and you understand the regulators are coming >> did you put up one of those things on yesterday? >> moving to apple >> no. going to in a second after the hollywood actors possible strike >> i wish i could. i'm so excited about it.

>> i know. >> i can't even tell you i thought they hit it out of the park yesterday >> did you >> we better move this story up. >> i was flood >> reality itself is too augmented. >> did you have it on? >> what do you mean? >> no. no >> i saw it. >> i watched mark brown. the best tech reviewer out there. >> i think more highly of it today. >> i think mark is one of the few people who did a review which came out overnight >> $3,500? >> it is the beginning >> the way it looks. it looks like tony stark it is the idea of having a scuba diving mask on is weird. >> it looks like tom cruise.

>> tony stark. the idea when tim cook said this is the beginning of spatial computing, absolutely. i will eventually. >> you may not get the first watch or second watch, but you will have one. >> you are wearing the screen? >> yes, joe. >> is it that great? the things you are doing -- i guess it is cool. >> look, this is why i said this is a great benefit to meta this is not out at christmas time for those who want the $3,500. the sorkin kids watched the video and they said we want one. will i get that one? no would i buy the oculus for $500? maybe. >> you can stream whatever you are and have the immersive

experience sitting down? >> totally why not? >> when they -- >> once you are inside the apple ecosystem -- >> you have the ear buds in. >> you can do that in the oculus now. what makes the apple one fabulous is the apple ecosystem. you are on the apple screen and -- >> 2 million ios devices out there. >> you may be right about meta you had three years of being wrong. i'm not going to take this to the foreign angle. i see things on twitter. funny things of males between 18 and 30 don't date anymore. this is goingto take it to 100 no one will ever go on a date again, sorkin. >> think about it. you like sports gambling of you will go to a basketball

game >> sitting court side? >> courtside >> you might >> will i hit three-pointers that is augmented. >> i say the haves and a vn have not wes -- have nots. all of the girls to feel they are there. that is amazing for a taylor swift concert. that is the promise. >> i'm shorting bumble no one will date >> bumble? >> bumble will be a more interesting service in the future >> i don't want to get in your mind i don't. >> okay. i think once the services translate from one thing to another, it becoming

complicated. coming up, everything we learned about apple's mixed reality headset. joanna sterns will talk about it. and janet yellen will join us tomorrow morning in the 8:00 hour you are watching "squawk box" here on cnbc we're coming right back. size of- gaaaaaaaaaaaap!!! is that a goat?! you talkin' about me? gaaaaaaaaaaaap!!! i think this goat is saying “gap.” must be talking about the expenses health insurance doesn't cover. so who's talking about the money aflac pays to help close that gap? gaaaaaaaaaaaap!!! aflac! aflac! gaaaaaaaaaaaap!!! it's about to go down, baby! aflac! aflac! stop that goat! get help with expenses health insurance doesn't cover at aflac.com

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that new tech. i'm jealous of you and wishing i could put this thing on. tell us everything what did you think >> i heard everything. joe is upset he is not on bumbler. it was a great conversation. this is the best v.r. headset out there. that is the biggest take away after 30 minutes with this i saw all of the cool stuff in there. everything you saw in the demo really did feel it is what i saw. i got to do a facetime with somebody they had a 3d hologram of them

i got to put different windows up in the room i was in. i got to see a safari browsing window i saw 3d versions of movie clips and it was immersive at the end of it, my head was hurting. i felt nauseous. >> that was my question. does it feel like you have a diving mask on i dicouldn't do that for more tn 20 minutes >> i thought this is the comfortable headset i have ever worn 15 minutes, my nose hurt a bit trying to loosen the weight of it apple says they did not have the sizing out they don't have that yet it is still a few months out different sizing >> if we had this conversation five years from now -- we can

talk about this particular product you tried is "the thing. the first one is the first one two or three iterations later may get lighter or battery life is longer. the idea of it conceptually being in a mask of any sort -- if you are a betting person, do you think there will be a big market and families and people in the business world, that will be your computer of sorts? >> i think it will be one of our computers. the idea of spatial computing that tim cook is saying the space around us is the screen. there are no controllers our hands are the ckcontrollers. our eyes are the curser. before we had the iphone, we had stylus getting rid of that here there is a paradigm here

i think the idea that you are talking about, andrew, that we all have these i don't know if we will all have them, but there will be compelling use cases for these the question is what is that we saw it around work and entertainment. that is where the developer community has to come in >> the question is do we need a ipad with the iphone for those families who have a phone and computer and the earbuds and ipad is this one of those things five years from now >> it is one of those things five years from now. no doubt about that. >> in between, maybe you can answer our meta question a lot of people said mark zuckerberg is dying inside as he is watching this yesterday he may very well have been there was part of me that thought given his product costs

$500 or one for $1,000 and maybe over the next year, from a different price point and it does cool things it is funny. apple does a better job marketing this >> andrew and i were having this discussion i don't want the meta thing. i thought it was cool where they showed the lady on the plane who put these on and the earphones in of the. >> you can do that >> the meta sucks because they don't market it the right way if you can actually do that >> i think meta is headed toward being the android of the world more accessible and gets people understanding that there is something i can try that apple has that i can get the lower cost one that is what android became. >> are they android or microsoft with bing and every other second rate thing that people pick up >> will we have a three-leg race

here >> give us an answer on the meta avatars. people thought that was cartoonish apple did not have avatars except on facetime somehow, they have to project an i mage of you on facetime. there is an image capture. >> i got to see this in action i did not get to scan my face and create my facetime hologram. i got to facetime an apple employee what is compelling here is it is 3d there is depth to the image. to do that, they have to scan your face. we saw this in the keynote you scan your face it picks up on all of the attributes of your face. when you are talking, you see 3d

version of that and you are able to -- it mimics the facial expr expressions. i said can you smile and frown and hold up your hands and stick out your tongue. she was weirded out by that. all of that worked okay, this person is here. i didn't get the rest of the body i think over time we will get more of this this is the ho holographic futu. >> i think this is cartoonish on meta >> the avatar in meta is this space. this is the window of the facetime person. still compelling i say the coolest thing is the fact i had this woman hovering on one side and presenting something to me in the apple freeform app and moving things

around and i could contribute with her really, i was blown away about the focus on work for this thing. talking about the use cases here, that works in with the mm mac community which is there final question since you are out with the developers on this platform did you get a sense the developers were excited about it and they wanted to build apps for this and do they intend to do that or is this wait and see approach or racing to this what is the feeling? >> my head was literally in the headset yesterday. i didn't get to talk to many at least the reaction in the room, quote, room, as we watched the presentation on the movie screen was a lot of applause and a lot of excitement. whenever apple enters a new

category, there is development from the developer community i expect to find out more today. many are going to the sessions today to see how to code for this thing. >> we hope you come back to tell us where things go as it progresses thanks >> i'll be back with my face computer >> so you can code with a.i. to put stuff on this? >> yeah. >> i don't know. >> look, i don't care how the back end works the front end looks cool >> i don't want to be on bumbler. it could be amazing. >> that's what i'm suggesting to you. >> you can swipe right i don't know >> i'm a married man with great kids this could be something. >> or you could never leave your house.

testosterone levels are almost zero you never have babies. >> life always finds a way "jurassic park." when we come back, hollywood actors could soon join the writers guild on the picture line. and we will have the latest with the ceo of hyatt. "squawk box" will be right back.

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the heat on the film studios actors seeking higher pay and safeguards against unauthorized use of images with a.i. and current deal expires on june 30th in the meantime, no new negotiations have been scheduled with the striking writers guild of america which accept represe 11,000 is liate night on >> no. reruns >> the last one wans 100 days most anticipate nothing will happen over the summer they are changing summer plans and making new plans they won't work. cnn ceo chris licht apologized to staff. he says the news management of the network was overshadowing the achievements

the profile in the atlantic was published on friday. licht gave access. he said disparaging things about the cnn approach to covering donald trump before he arrived starbucks expanding olive oil infused coffees today. it will be available in alaska, new mexico and texas and vermont. i have not tried it. >> i haven't either. remember butter in your coffee was a big thing ten years ago? >> yeah. >> adding butter to anything would be good for you? just in terms -- >> butter. >> bullet proof coffee >> we had them in. >> a lot more caloriecalories

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good morning welcome back to "squawk box. live from the nasdaq market site in times square. checking the futures there's no reason to check the futures. really they're basically unch 15 points on the dow nasdaq down a little s&p down two points. hyatt hotel is looking at mr. & mrs. smith travel platform it is access to 1,500

properties hyatt announced hyatt studios brand. the upper mid scale extended stay offering in the americas. joining us to talk about it more is the hyatt ceo mark, it is great to see you. >> thanks for having me. >> mark, the two offerings one is for joe and one is for andrew >> that's right. we withhave focused on luxury lifestyle has quadrupled and we tripled the number of resorts. we moved the portfolio into the high-end traveler base mr. & mrs. smith is dead-on to that one reason we were interested is the dedicated and loyal customer base we are looking to extend more experiences to that customer

base we have a high-end well being destination brand. that has been under way for five years. we have a massive amount of space in the united states we don't anticipate in any market likely the type that joe goes. >> if you are driving. >> if you are driving on the inte interstate, we don't have anything to offer there. the brand which is the lowest price point is too high rated for the markets. extended stay market has been on fire for the last year and a half we found the opportunity working with developers to enter that market >> with this move, some looked at this and thought this is the way to make sure you are better insulated with a downturn in the market is that the case >> i think there's a lot of talk about recession. when you look at the high-end traveler and households of

$100,000 and higher in household income, they are more inclined to travel. the survey recently done showing more inclined to travel than ever before in the next six months that category is expected to spend 10% more this season where every other income level is expecting to spend less. i think we are insulated already. it is true that extended stay and upper mid-scale which is the segment we went into with hyatt studios was the first to recover in covid. >> we spoke with tony capuano with marriott yesterday. his point was it is strong and doesn't see weakness some of the discretionary people, you see it 21 days out what is your length of time to say this is a strong market and we see nothing but strength? >> there are different categories of business

leisure bookings are running low double digit last year, but 30% above 2019 levels. really strong. group business, large groups, corporates are booking through the end of the year into next year and following year now. big associations are booking out to 2025. we have a pretty good handle on the leisure market into the next season the group market as well the one you can't tell is business travel. individual business travel is much shorter term. it is the smallest segment in our business it is improving steadily i'm still not sure individual business travel will return to pre-pandemic levels by the end of the year. >> that is because people don't have to go back to traveling the same way >> there is a big dichotomy. small and medium businesses are on the road. the larger businesses and people sitting around worried about recession and starting to game plan what they will do in a

recessionary environment and travel is one they turn to there is an element of that going on which is factoring into travel among large corporations. >> the marriott mid-size is called mid-x studios o sstudios. >> they haven't named it yet i told tony yesterday on stage at the nyu conference. to be clear, studios is already taken. >> he didn't care. >> he'll announce the new brand. they haven't named it. tony was on my right chris was on my left i said studios is taken. >> i have to mention hilton. the company that owns the hilton property in san francisco on union scaquare. announced they will purposely default on the loan because they believe the city and they own two other hotels ohotels

they are defaulting and getting out of the city because they are worried about crime in the city and tourists in the city and people going back to work of the long-term, we don't believe in san francisco. when i saw that, to do that voluntarily, i mean, is this the end of san francisco what do you think? >> we have many hotels there we are operating a few san francisco has been the weakest market to recover. becky mentioned nordstrom pulling out. that was a reversh reverbration. people were shocked. i think there is a need for really significant reform quickly. it is also true that i don't know enough about that particular situation often times especially with cnbs, you end up with complex debt structure

sometimes there is a position to renego renegotiate. there could be something like to going on it is unambiguous that the market is weak the weakest recovery market. >> san francisco we have a problem. >> is that a market where you think other vultures of the world come in and buy up the property and take over this property and rebrand four seasons or hyatt >> it is a possibility that things like to will happen if there are defaults and hotels change hands and the contract is term- term-able. i love san francisco, but i recognize it has completely changed. i can't believe it is not fixable and will recover

it might take time >> how are the properties? >> they're lagging all of the recovery in all markets. chicago is a close second. chicago. >> where is seattle? >> seattle is starting to come back now better. you just were studying this. s those are-- those are the thre weakest markets. new york has come back those three markets are the weakest major markets in the recovery. >> why do you think that is? >> there is a combination of different things which happened. in san francisco's case, the developed now a bit of a reputation with respect to safety and security and homeless situation is significant a lot of meeting planners are going for site visits. >> no conferences? >> they just revamped the conference center. i'm not sure i want to bring

1,500 of my people here. they are looking for other markets. >> no way. you used to have two properties in maui? a high-rise? i stayed there at my honeymoon awesome. >> we have a hotel in hana do you know the road to han isn't thhana we have a beautiful remote get away called destination. >> mark, quickly we have to run inflation. the fed will be meeting shortly. the fmoc will meet to decide what to do about it. inflation is still a problem with what you are paying >> we have gone up a lot it is true i look at it from a total result perspective. wages have gone up, but rates have gone up profitability is expanded. >> if i'm the fmoc and i hear

that, i think it is working into that spiraling inflation problem. >> i think -- i'm not concerned about inflation. i'm focused on have rates over time because that has a direct effect on property values and velocity >> people stealing your names. >> i know. studios is taken. >> i know. enforce that >> mark, thank you great to see you >> thank you >> call this the nasdaq studio >> they said if you do studio, it iis complicated >> i said no we are through i.p >> my brother used to lick his finger and put it in all of the cupcakes and say these are all mine that's what you just did >> will jp run for president

>> i don't know. have him on the show. >> we did. coming up, senator john thune will talk about the agenda after reaching the deal on the debt ceiling. as we head to break, jpmorgan chase's dijamie dimon meeting with a moderate group of democrats today to discuss banking. and the reserve bank of australia raising its rate overnight for the 12th time in a year the inflation in australia is running 7% microsoft will pay $20 million to pay ftc claims that it illegally collected data from children to sign up for the xbox gaming system without parents permission we will be back right after this >> announcer: squawk ceo call is sponsored by truist wealth where meaningful relationships matter most.

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"the wall street journal" reporting -- >> i always tell you the truth >> big banks could face a 20% boost to capital requirements. plans expected to be the first of multiple new rules aimed at improving the resilience of the banking system in the wake of

several banking failures scott, are you comfortable with what we know to try and make predictions or forecast about what it would mean, because there's -- we have basically the overall outline, but there could be significant issues in the details of how this happens and how long it takes to get there and et cetera. do you feel comfortable discussing it? >> yeah, certainly discussing it making definitive conclusions, that's another issue entirely, so we have a bunch of lingering issues in the aftermath of what happened in march and april with those few really, kind of shocking failures. as you suggested, joe, media reports are suggesting banks could be required to hold up 20% additional capital on average and we have to get a lot of

charity as to what that means, big versus small banks it seems it will affect everybody with over $100 billion in assets. big banks were largely -- espe especially jpmorgan, and it seems likely the industry will have several years to reach the new requirements and i think they can get there with time to spare in terms of being able to generate capital internally, and the management of the capital meaning no repurchase, and probably less loan growth as well, and it will get there but will have ramifications for

sometime >> every since the financial crisis, you know, you look at all the different things that go into the banking system since then, and you don't need any of the other stuff, just raise requirements, and i understand if you want a fortress balance sheet and you don't want anything like that to happen and you don't have to worry about all that other stuff if you raise capital requirements, but you just said it, loan growth. we heard the fed doesn't need to go -- at least 100 basis points -- you would not see nearly as much open loans to people, small businesses and et cetera, and it would be go into capital requirements, wouldn't it >> seems that way.

banks are going to be more judicious with how they allocate those resources. as you learn the rules of the road, it would mean they are less aggressive in the extension of credit. there's, of course,ing a robust private market that could extend credit as well, and we are going to see some limitation on credit extension vis-a-vis of what we would have had otherwise >> your five-year growth rate for banks, you would have to pare that back, wouldn't you >> yeah, it's a fraction of what we would have had in the past. i guess the good news is if you look historically, banks have done a nice job managing through regulatory changes over many

decades, and that doesn't mean there will not be pain along the way. >> we had -- it doesn't apply directly to what we were going to talk about, but even banks at this point are watching commercial property and we are talking about something happening in san francisco that's a unique situation. in general they are carrying things that probably would not help if these things got mark to market >> i wouldn't say a complete exit but a deemphasis. this will be a multislow burn. as leases come up for renewal, we will have to require clients to put in more equity or banks

could pare that back as risks. it's just not worth the headline risk of showing a lot of growth there. it's going to be a pressure point for -- up to a few years is the broad reality >> scott, thanks senior research analyst, we'll be seeing you. thank you. when we come back, we have reaction to apple's newly announced $3,500 headset announced $3,500 headset our ow a third kid. what if she likes n stevg golf? it's expensive. we're outlawing golf. wait. can e still play? us the latest on that. about planning for a third kid. you can still play golf... sometimes. take control of your financial future to empower what's next.

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chain, why they may be more prepared this time around. and apple's new vision will it be a game changer for the company. the second hour of "squawk box" begins right now good morning welcome back to "squawk box" here on cnbc we're live at the market site in times square the dow is off, and the nasdaq, it's rare where we are literally not moving there you are, plus 2.5% -- not, percent, just 2.5 points treasury yields, and oil, you

are looking at $70.50 a barrel and then ukraine accusing russian forces are blowing up a dam in the southern part of the country that moscow controls moscow denies the attack evacuation efforts are under way to protect thousands of people living in low-lying areas downstream and the power plant receives cooling water from the reservoir. we will have updates if there are any new developments and then 13 charges against binance. the agency says they sent the

funds. the sec accuses binance of wash training itself, and making it's own trading volume look bigger than it was. and he urged users to ignore fear, uncertainty and doubt. it said it engaged in extensive good faith discussions to resolve the investigations the sec abandoned that process, it says. there's a lot going on here. the sec may have abandoned it but may have been because they

think they can't negotiate the sec quoted the compliance officer as saying in 2018, and i quote, we are operating as an -- it's a landmark case where we are talking about wash trading and seeing some of the commingle of funds binance says it's on the u.s. arm of the operations are safe but a lot of the charges paint pretty troubling picture of these things crypto prices are higher >> i have the original tweet

from see sea one is education, compliance, product and service, and ignore fud, fear, uncertainty and doubt. >> the sec's court complaint asks to freeze their assets, and this is according to the "wall street journal." the receiver has given the permission to track that down. these are some very serious charges. we will see how this plays out >> we have breaking news not on this but on something that may be bigger in the finance world this morning, which is that sequoia, the famous venture capital fund between the what'sup app and tiktok is breaking up into three different funds, three different

companies. importantly, what this says about geopolitics across the world is they are effectively break into a silicon valley, a u.s./europe fund and a china fund and india fund. they had investments in china for a very long time we keep talking about the idea that geopolitically -- i think they are trying to down play this piece of it, but the geopolitical companies do business in all of these different places, and the decision has been made to not do this >> how would this work >> the point is sequoia, which has long been one company -- there have been separate tp funds -- >> one would operate in china and one in india -- >> exactly

what that says about other companies, it's easier to do for an investment company rather than an apple or nike or tesla where you are relying on manufacturing where you produce there and bring things back. >> they say they are doing this because there's conflict between the funds and brand confusion and other things, and they are downplaying the geopolitical issue and that's going to be hanging over this announcement but also maybe raises the question whether others will follow suit. >> it was unrelated, and then when you said sequoia, it brought me back to bankman-fried. >> yeah, they were an early investor, yeah >> the sequoia grows very fall

>> and lives forever >> oak is pretty good. >> you don't need to be on top of the tree. you can feel -- >> that's my point apple revealed the new mixed annual headset, and it's expected to launch early next year and starts with the big price tag. the early version will cost $3,500 steve kovach joins us now from our san francisco bureau i said to joe in the last hour that i am jealous, and i am jealous of you, too, steve tell us what it felt like? >> let's dive into it and i will take your questions, too first of all, it was a very controlled demo. a lot of features were switched off, and no siri voice control, for example, so it's hard to completely judge the devise but it's a meta version of the

headset, and it all starts with the screen on the inside those displays are much crisper than what meta has it looks like real life, almost, and more impressive than the visuals is the audio you can use headsets, of course, but you can use the temples. there's i-tracking on the inside, so you look at what you want to select and make a pinching motion to do that there was a 3-d clip from the latest "avatar" movie, and in facetime you can create an avatar that looks realistic, and the mouthfully moves naturally andrew, you tried it before, and there are meta bavatars and you

look like a muppet when you are talking. i felt like i was courtside at a sun's game i wore it for only half an hour and it felt like weight was on there after sometime and even though it's technically more impressive than any head set i have used, doesn't feel like a killer app yet. my takeaway from most of the experience was entertainment, and that seems to be the best use case now, and we are going to see what developers will come up with before it comes up in a couple months. >> steve, does this change your perception at all? you sat at the desk, and we had a polite debate, and you were i the camp where you thought nobody was ever going to wear these.

i asked joanna five years from now if this product would be part of an ecosystem that people across the world use >> it's noticeably better but you are still wearing the headset. i can't imagine wearing it like several hours a day like i use my iphone several hours a day, but maybe in five years it gets thinner, lighter and comfortable, and that's not to say it's uncomfortable but it's not something you would want to wear for extended periods of time that's the biggest thing they have to work out here. >> it's meaningfully heavier tprrb - >> exactly it's hard to remember, and it has been several months since i tried the meta one, but i did a similar controlled demo at meta, and putting these two demos side

by side it's clear that apple is so far ahead, and you get into the cost, and $3,500 versus $500 >> when you think, though, about this device and the developers that you spoke to and just saw the reaction, is your sense that there's a group of people who are super excited about this, or not excited? do you think the developing world will invest their time, money and energy in building apps for this in a way they may not have for meta? >> here's the cool thing they don't have to if you make an ipad app, that will work. disney, we saw bobiger come ou onstage and talk about what disney is doing there, and hundreds of thousands of apps are going to be on the device at launch because it can do the

ipad apps. it works similar to what we are seeing on the screens, the video demos playing next to me, and it looks like that. there are demos where they render the demo video, and it's blurry, but this is what it looks like the eye tracking is really good, superior over what meta has. >> here's a final product question/price question. this is called a pro device, and apple created two devices in their world, the pro, typically much more expensive devices, and then you have a more consumer version. in terms of pricing, can you see the price of this come down meaningfully given the tech that's in it or not? >> absolutely. it's very clear they will have to find a way to get this down maybe to about a thousand bucks if they are going to get people

to buy it, and 3,000 bucks, you can buy three macs if they can get it down to about a thousand bucks in a few years, i can see people wanting to use it it's technically impressive. >> thank you easing the cloud and a.i. in the commercial real estate market the ceo of digital reality tells us how that's driving more business in the sector when we come back, molson coors, and bank of america raising shares tap should see higher volumes, and you can figure this out, following the budlight boycott "squawk box" will be right back.

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is it possible to protect my business from cyber threats? learn yo it is, withtheirs. comcast business. helping every connected device stay protected. yours. your employees'. even... susan? -hers, too. safe. secure. and powered by the next generation 10g network. with comcast business, advanced security isn't just possible. it's happening. get started with fast speeds and advanced security for $49.99 a month for 12 months. plus ask how to get up to a $750 prepaid card with qualifying internet. welcome back to "squawk box. commercial real estate is in focus at the annual conference, and diana joins us as a special guest. >> digital realty is owner and operator of 50 plus markets

globally i am happy to be joined by the ceo, andrew power. i love that your name is power, first of all you took the helm six months ago, right >> that's right. thank you for having me. >> we have to address the elephant in the room which is a.i. you are basically the landlord to a.i how much has it boosted business and what do you see as for as growth in the future >> it's going to deliver real world business outcomes. it's happening today really it's in its infancy, but it has a long life of growth, and not only for the critical care environment, but our proximity to the data, with 5,000 customers worldwide, the data lives within our four walls

and the proximity for artificial intelligence uses is needed. >> cloud obviously will grow alongside it, correct? >> today it's not bigger than cloud. potentially could match that over time. we are just really in the early innings, the training camp of the season i still view the cloud in the early innings of growth and expansion as well. >> there's obviously competition in the market when we see big companies like microsoft and google building their own operating centers. >> our value prop is in six continents home to all the names you just listed across the globe, some of those names do self build as well, but we are an extension of

their company and they are a trust and infrastructure partner. massive campuses for those companies to have future growth across the world >> the data centers are doing well compared to say, office and retail, but rising interest rates hit all of commercial real estate and valuations on the properties themselves. how does that affect data centers in deals you are making and valuations on these properties >> it's twofold. there's a supply and demand and our proposition is resonating and that's in our favor, and as the last few quarters, based on the capital to build new capacity is more expensive, and as it relates to digital realty, we are evolving our resources to diversify, and they are rotating towards digital infrastructure

and want to partner alongside digital realty >> your stock is recovering year to date, and not year over year and down off the highs from the beginning of the pandemic when everybody was going into realty. >> i am very long and bullish on the prospects of the industry, and on a small stage of global providers, and we get to play this incredible trust. >> andrew, i will send it back to you >> thank you coming up on the other side of the break, labor disruptions threatening the supply chain, but are retailers more prepared this time around we will have that story, next. and janet yellen will be our

guest tomorrow here on "squawk box. you don't want to miss it. we're coming right back after this

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financial retail federation is urging the white house to

step in. courtney reagan joins us with more on what the steps the retailers are taking to try and protect themselves i know it seems it's not all that urgent from the timing and we are a long way away from the holidays >> it's not welcome news for retailers and they are scarred from the last five years of the turmoil in the global supply chain, but the largest retailers are now more prepared. this strike is not a surprising and contract negotiations have been ongoing for a year. more importantly, the trump tariffs on chinese-made goods and pandemic demand and forced retailers to work through

weaknesses in the global supply chain, so most large retailers have spent years diversifying local manufacturers and west coast container volume is down 10%, and this is according to data from decard systems and the timing of the break is crumby for retailers because of the back to schoolers and holiday retailers. they are hoping for a swift resolution, but the industry leaders association speaking on behalf of the industry home depot did tell me at this point the impact for them is minimal. >> i guess the big deal on this, though, is we have been hearing

from every one of these retailers in their earnings, the great news of the shipping costs have come down, and that's the one tailwind pushing them all to better numbers and this happens now and you don't know where it leads. >> i was thinking that same thing, right, and that was one of the commonalities we heard. the longer it goes, the more expediential the impacts come. the five-day mark is critical, and that's where we are now. you can't just flip a switch and turn it back on, right there's a backlog you have to work through, which we learned through the congestion of the pandemic most retailers are in such a better position now than if it happened five or six years ago because of the hard lessons it learned along the way. coming up, author brooks joining us with his advice on the class of 2023 in finding

their dream jobs and the happiness you hope would come with it. not always, though not everybody is as lucky as we are. later, senator john thune. stay tuned you are watching "squawk box." this is cnbc this is dr. arnold t. petsworth,

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welcome back to "squawk box. some green appeared magically on the screen the nasdaq is up everything has been red all morning long the nasdaq is up four points the dow and s&p unchanged. the chief economists out with a new call this morning rpgs

lowering the odds of a u.s. recession in the next 12 months back down to 25% that had been 35%, and the upward revision was made after the failure of silicon valley bank went up to 35 and now back to 25 the fed said maybe pause this month and raise next month >> they are saying in july >> not pause pause is longer than a skip. >> a skip. that's what we are changing it to >> everybody is calling it a skip joining us to talk about the markets and the fed's next move, global market strategist at jpmorgan management, and then

also from the central bank strategy team. this is your wheelhouse. you agree about what we are hearing is they are going to skip in june and hike in july and maybe that's where we see things with the central bank, is that your opinion, too >> so we have consistently said all the way through that the fed is not going to hike in june that was a view that was very much challenged by market pricing not too long ago the price for not hiking in june and keeping the committee together will be to make july with some kind of default to hike again in july unless the data between now and then provides additional reassurance the economy is cooling in the way the fed wants to see i think the fed will signal a july hike is more likely than

not. i personally have my own forecast under review, and i don't have a hike in july. i think the economy is cooling off. the question is whether the data will arrive in time so the fed can skip again in july have a look again in september and conclude it doesn't have to do more. but for sure july is the one that is in play, not june. >> you think there would be limited impact if they were to raise rates again in july. at this point the stuff that is seeing inflation stick is not things rate hikes would work on? >> ultimately by the time we get to july, they will have two cpi prints in hand, and on a year over year basis that could bring inflation below 4% by the middle of the summer, and if that's the case they will have the data in hand to pause for sure if they wanted to hike, at this point if we think about where

inflation is the most sticky, services and particularly in rents, there's not much additional hikes can do about that, because interest rates are not that service sensitive we are in a period of time where there's not a lot of housing supply if you have a mortgage at 3%, you are not going to want to move out of your house for a 7% mortgage the higher mortgage rates go the more pressure that puts on rents because it's forcing people into the rental market, and i don't think there's the added benefit for additional hikes >> you may not cancel your dinner reservations, but what happens with your portfolio? >> we have seen a wild swing in expectations of where the fed goes, and all throughout this period equity markets have been surprisingly resilient

they have not reacted to a lot of the shifts. once the cuts get priced out at the end of the year, we are going to see more market volatility, and we have not seen that that's really prevented a broader correction >> if the market priced in the idea that we are going to see a rate hike in july, and we don't get it, does the market move or not? >> i think if we compare our situation to last year, when you continue to see expectations for rates move higher and the s&p continues to move lower, now we hit more of a stable point where the range of outcomes for the fed is more limited. >> we just talked about goldman, and where do you put the odds of a recession? >> i still have a mild recession

as my baseline case. a bit over 50%, a softish landing, but under 50% i think the economics can work i think you can in principle cool off inflation without a large increase in unemployment, which is the basic, you know, test the way we get a recession or not the issue for me is that the calibration is still hard, right? of course this all works with a time lag and there's a lot left in the pipeline, and we have this uncertain and significant amount of credit tightening coming through the pipeline. the current data still looks pretty good on most measures and certain payrolls, but the odds that you can stick this landing at above 50%, and certainly i would say the possibility of getting a softish landing is not

bad considering what we have been going through, considering the task of getting inflation down there are good reasons to think if we get a recession it weill e on the mild side >> like when >> i would be focused more on the turn of the year look, we still have to run down some of the rest of the savings balances and the momentum in payrolls and in real incomes after inflation. that's going to carry us, i think, in the near term with decent momentum. but as my colleague points out, it's always good until it isn't in terms of the onset of a recession. yes, a plausible thought we could get away without a recession, but i would say rece recession is more likely than not. >> you are calm, cool and collected when it comes to what

is happening at the markets right now. is that a fair assessment of what you have been telling people right now >> we have been telling the consumer and profits to slow down in a concerted way, and because we have not seen that yet i think we have to acknowledge the resiliency has helped markets the big rally in the markets have come from a small number of stocks, and that leaves the rest of the s&p 500 reasonably fairly valued i think we get nervous when things look over valued and it looks like the market is beyond its skis not only in the u.s., but certainly in a number of companies abroad, when we think of international markets if we expect a recession, and we expect a milder one in nature, and that will bring yielded down over time, and that does provide

an attractive entry point. >> thank you both. >> thank you coming up on the other side of the break, in the market for a luxury car join the club. more buyers are looking to trade up despite prices at record ghwexpla, his. einnext this is real time insights jeremy, so good to have you here with us. we know that right now companies are so focused on creating value. what's the best way to do that

>> business leaders can look at their business to understand how and where they have value, and they look at where profits are generated. we look at the capital and resources are required in generating the profits to create a more holistic view in value creation we work with them to create an investment plan, and in some cases that may look like helping grow a new business, and in other cases that could be to re-imagine the inenterprise >> we work with finance, technology and more. we engage the employees to help create an ownership mind-set, so they understand how value is created in their company and the

role they play in unlocking that >> thank you for joining us. >> thank you welcome back to "squawk box" this morning there are more luxury car models on the road, and phil joins us on what is driving the trend >> a big part of it, andrews tesla. ten years ago it was a blip in sales, and things have changed dramatically since then, and so have the number of vehicles.

it's now almost 1 out of every 5. look at the change in the percentage of overall sales that are luxury vehicles here in the united states. it was just under 12% a decade ago. as i mentioned, a big change has come because you have tesla vehicles, which are categorized as luxury models some will say the model 3 and model y, some of those are selling in the $40,000 to $50,000, but it's categorized as a luxury vehicle whether it's model 3 or model y, and they are the number one brand in the u.s. selling half a million vehicles last year. what about mercedes and the traditional automakers they are part of the growth in luxury sales why? a decade ago they were just starting to sell sport utility vehicles and crossover vehicles,

and you can still buy a sedan, but it's a smaller percentage of the saeules. they are built in either alabama or down in south carolina and that growth has fueled a lot of people saying, you know, if i am going to buy, i am going to buy a luxury model as you look at mercedes and bmw and tesla, you will say have these guys been able to do anything relative to tesla it's still tesla's world whether you are talking about luxury vehicles, and if we can we are migrating towards luxury models. >> as opposed to what we see in a lot of other things with the trade downs, phil. i agree, any tesla is luxury, that's the bottom line >> it's marketed that way. look, if you took a chevy blazer and made it as nice as possible,

it would still not be categorized as a luxury model, and that's the way they break down the saeulsz you can't say anything over 50,000 is luxury and everything under 50,000 is not luxury >> thanks. coming up, the class of 2023, ready to jump right into the workforce. find that dream job, start their careers, and our next guest has advice for them as they plan for rve future haard professor, arthur brooks, joins us next. "squawk box" is coming right back

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across all of our locations? yeah! absolutely. with global secure networking from comcast business. it's not just possible. it's happening. it's graduation season our next guest has advice on recent grads on finding a job and happiness. let's welcome arthur brooks, and he's now with harvard as professor and senior fellow. writes the how to build a life column for "the atlantic," and his next book due out in september is "build the life you want" co-authored with oprah winfrey. >> super excited about that. >> me, too >> harken back to the easiest $200 that sorkin ever made is to

read one of your books he charged me for the appendix >> did you read the appendix >> of course >> the dignity of life that comes through work, and the satisfaction that you get through earning a living and succeeding and the happiness that can come only from something like that, and i think we lose sight of that. >> for sure. >> can you do that at home playing around on your computer and taking a bathroom break every five minutes, and screwing around at home or do you need to come in to be happy and get a real job >> different strokes one of the things we see -- i study the signs of happiness

i have been teaching that based on the neuro science of happiness, which is an exploding field at harvard -- >> how come nobody is happy? >> some people are one of the things you find clearly, and the secret to am. >> one of the things you find very clearly, the secret to happiness is love, it's relationships with people. and there's this neurophysiology to that that's very interesting. there's a hormone called oxytocin in the human brain that comes from eye contact and touch. and you get almost none of it virtually. there's a trickle of that that comes along. the people that binge social media is because they're lonely because they have a deficit of this oxytocin hormone. they go online and try to get contact. that's like getting all of your calories from burgers and fries. too many calories, not enough nutrients, get less and less healthy. and that's what happens when all of your time is on zoom and social media so on and so forth.

we need more human contact than we're getting. >> how do you reduce the human nature of scrolling. whatever scrolling you want to describe it as, but i find myself, unfortunately, and i like to think i'm cognizant of the problem, i even have timers on it, after 15 minutes, it's supposed to stop me from doing it and then i say, you know, give me temporary extra time. and i do it to myself. it's like i'm treating myself as a child. >> i look at twitter, drudge, and cbs sports >> how much time on twitter? >> i hate twitter. >> more than you want, probably. >> not as much as people think >> it's a problem, because there's a different set of circuits in the brain -- >> but how you undo that >> the dopamine circuits are behind all addiction there's a very nice book out called dopamine nation it talks about how almost everything we do compulsory has this dopamine thing behind it.

you can get it from food, drugs, porn, you can get it from twitter. >> i don't think you can get it from twitter much? >> you can that's why it's so addictive >> the timers are okay you need to have other people hold you accountable, number one. number two, you need spaces in your device where you don't have your devices like the bathroom. >> that's the best place for the ipad >> number three, turn your screen to black and white. that will stimulate less dopamine >> you're addicted to the apps that you're using. these things actually help a lot. but you also have to be conscience of the decisions that you're trying to make. and at least once a year, you should take probably at least a month away from all of these apps delete them all off your phone you need a fast is what it comes down to. because that will reset a lot of these dopamine -- >> get rid of that and just put on your new apple new thing and sit there for a month, and that will cure you of all of your --

that could lead to some new problems, right? >> no, yeah, that'll be great. >> you remind me a little bit of "ted lasso." you have a very positive mental attitude how hard do you have to work at that >> part of that, one of the great things to happiness is teaching happiness number one, i'm reminding myself of all the happiness hygiene that comes from the science constantly there's this old teaching method about how to learn something very quickly you teach it to another person that's called the plastic platypus method, believe it or not. in this old research, they used to have people teach something to a plastic platypus, could be a rubber ducky or a bowling bowl, but if you teach something you get it forever my secret to happiness is teaching happiness that's one of the reasons what i do all day, i talk to executives and people in leadership position, no so they can be happier, but they can be happiness teachers in their work this is the best show for business every good ceo is watching this show right now if they start thinking of themselves as happiness

teachers, learning about the happiness science, trying to embed it in the work they do every day, they will get happier, their marriages will be better, the relationships with their kids will be better, their work/life balance will be better, like magic, it's because they're explaining these ideas >> who's the best patient you've ever had the best student you've ever had? >> i have these phenomenal students at harvard, these mbas, with a few hundred on the waiting list, and there's a secret zoom link they think i don't know about for the class and my students are great, because they're in the second semester of their last year. they're getting ready to go out in the workforce, and these 180 are coming to my class because they realize that something is actually missing from their lives. they're really good about learning about business. not very good about managing themselves with respect to the happiness they want. the currency of the real start-up is the enterprise of your life. andrew inc, that's you the whole start-up is you. the currency of your life is love and happiness if you can't manage that, it's like you've got the worst possible pnl situation in the company you're taking over that's what i teach them,

business principles -- >> he really does have an andrew inc. that's amazing that you knew that he really does he really does -- >> i know you can't teach it in two minutes, but if you were to teach the audience two or three actual things that they could do right now or at least think about, so that they can go off on their day and at least try to do something that would change their life >> so you need -- okay, two minutes. there's a happiness 401(k) plan, basically, that's, don't try to control all of it. half your happiness is genetic, your mother literally made you unhappy, et cetera, some of it's circumstantial, but 25% of your happiness is directly in your control if you do four things every day. number one, you need to take care of your spiritual or faith or philosophical life. i'm catholic, most important thing in my life but that's not the only way. >> don't say anything dirty. >> no, no, no. you need to do something that's bigger than you. focus on something bigger than

yourself faith or flphilosophy, or walkig in nature. number two, family two out of three people are not talking to their family because of politics. there's only one reason for that is abuse, and politics is not abuse. number three is friendship this has a business audience not deal friends, real friends we know the difference between the two. deal friends are useful. real friends are beautifully useful >> can your family -- >> no, no, it's different. the apex of family -- by the way -- the apex of family and friendship is your spouse. that's the apex of those two that's the only really intersecting point your work only has to have two characteristics. those do not include money or power or the admiration of others, they include earned success and serving other people earned success means you're accomplishing something, you have recognition for what's happening. that's the reason that the free enterprise system is bar none a

happiness system for the economy. >> we take ownership and credit for the debt ceiling, though, because we've had everybody on, talked to everybody, we've had hakeem jeffries and kevin mccarthy on at the same time so we did that the reason i admit to this is, is there a glimmer of hope that biden and mccarthy said nice things about each other? i always say you're failing miserably in terms of bringing -- of clearing the schism of the political divide in this country, but is that a glimmer of hope? >> of course, of course. there's always a dpliglimmer of hope one thing in politics, if you look at what the real political situation is in this country, state and local and mayors and county executives and what's going on in the real america, not washington, d.c. and you see more and more interesting bipartisan activity, you see more and more people coming together. >> more fragmented >> really? i find more creative activity. i am more bullish -- >> san francisco >> that's not a good example but if you go to other places around america, you can find it all over the place

you can find people working together >> will you come back every week i feel better having you here. >> but we've got to work on these things we've got to work on these four things, folks. >> you're ted lasso, but you're not a wanker. >> you're here, you're there, you're every freaking where. who wrote more of the book, you or oprah >> i did the science part and she talked about the life experience part. we came at it from different angles she's the best, best literary partner i've ever had. >> you'll come back. >> i will. >> thanks.

good morning fn under fire. and apple debuting its first new product in a decade. we're going to ask a top analyst whether investors should be excited or disappointed by the vision pro and the countdown to the fed begins we're now one week away from the start of the central bank's next meeting, but it is never too early to talk about what leaders should and shouldn't be doing. we're going to speak with the former counsel of economic advisers chairman, jason furman, as the final hour of "squawk box" begins right now.

good morning and welcome to "squawk box" here on cnbc, live from the nasdaq market site in times square i'm joe kernan along with becky quick and andrew ross sorkin are you here tomorrow, thursday, and friday >> yep >> and we have a little green, it's moving, it's spreading. now the s&p is actually -- better hurry, up just -- nah, see, now it's down anyway, nasdaq continues to trade higher i could just sit here and do this all day -- now it's up again! now it's up again. let's just -- >> how exciting. >> watching paint. >> yeah. let's look at treasuries, 3.67 now on the 10-year, and the 2-year, 4. -- it's far away.

4.46 bitcoin prices rebounding just a little bit this morning they got hit hard yesterday when the s.e.c. said that it was suing crypto exchange binance and its ceo. the ceo accusing both of comingling billions of dollars in user funds. among the charges, the s.e.c. said the finance artificially inflatd its trading volumes and failed to let u.s. customers from using it platforms. in a blog post, binance says it is engaged in good faith efforts to reach a settlement with the s.e.c. and it's disappointed that they acted. they have pulled close to $800 million from finance and its u.s. affiliate over the last 24 hours. binance said that all user assets on its platform are safe and secure, but part of this is what the s.e.c. is charging on this they may have pulled out of negotiations, but they're charging some very severe sort of situations. they're also asking, according to the "wall street journal,"

that their core complaint asked a federal judge to freeze assets and appoint a receiver that's something that's usually done in cases of fraud or a ponzi scheme >> right now there's no criminal case typically when these things happen, the s.e.c. doesn't go first, it usually goes second. usually if the justice department is going to bring a case, they would have brought a criminal case -- >> pretty unusual for them to freeze their assets in a receivership >> it's very interesting to see whether this is a -- this will be a test, as to whether gary gensler efforts here have any teeth. because it's possible a judge could look at this and say, man, we're not doing it this way. >> anyway, don't miss a first on cnbc interview next hour with the s.e.c. chair, gary gensler, who will explain what he's doing and why. and we're already watching pretty closely >> meantime, we brought you this news last hour a lot of people focused on what it means across, not just the finance industry, but maybe business writ large. business capital firm sequoia saying it is splitting up into three separate firms the u.s. and european venture business will be referred to now

as sequoia capital sequoia's china operations will be another business and the india and southeast asia arm will be a third recent macro and geopolitical issues like china's crackdown on its domestic tech sector have made venture capital fund-raising more difficult. the sequoia split is scheduled to happen no later than march 31st of last year. just a reminder for those viewers who may have been confused, if they were, we are not talking about the sequoia fund, which is a publicly traded vehicle. this is the private equity venture capital firm, famous from silicon valley that's done a lot of business in china inflows to tech stocks, as tech stock funds hitting $1.3 billion last week. that's the highest level in more than six months. that's according to refinertive lipper data. analysts are saying the s&p 500 would be negative for 2023 if it weren't for ai-related stocks. for more on this, we want to bring in goodgin bannergee, a

reporter at "the wall street journal" and a cnbc contributor. this has been something to watch. it caught a lot of people offguard >> what a wild ride it's been. we're all watching stocks like nvidia, apple, microsoft notch these huge, huge gains what's even more remarkable, zooming out, you're seeing people pile into the market, pile into the options market, betting on even bigger gains ahead for these tech stocks. the six biggest stocks in the s&p 500 have gained some $3.3 trillion this year that's more than the market value of the s&p 500's materials, real estate, and utilities sectors combined and you still have people positioning for bigger gains ahead. turning to ultrabullish options, trades, and of course, buying these tech stock funds >> i think you said it reminded you a little of the kind of crazy trading you saw during the pandemic >> absolutely. this is reminiscent, and traders have been saying this to me,

too. this is like the boom we saw in 2020, 2021, when tesla, apple, their stocks were splitting. there was this call options craze, and they just seemed to go higher and higher and higher, and i think that's what's going on right now, where you're seeing people get ultrabullish and part of that is, some people are afraid of underperforming the market i was looking at some goldman data that showed that mutual funds and hedge funds, many of them have lagged behind the s&p 500's 11% gain this year that's the big risk. if you're not holding these megacap tech stocks, you can get left behind in terms of the rally. >> is it something where people think the gains will last or do they think it's going to be like the meme stocks, where they collapse, because there's a lot of froth and not enough that's delivered? >> i think there's definitely investors saying that these are looking frothy, but nvidia's earnings, those are real these companies are generating gobs and gobs of profit. so i don't think it's like the

meme stocks. but i do think that you're seeing investors position for their leadership to continue for example, s&p 500 futures positioning was recently the most bearish it's been since 2007, whereas in the market for nasdaq futures, people are betting on that sector to continue its gains >> we've had -- you watch the show you watch when you can we have amy wu, silverman on sometimes. >> she's great >> she is great. >> the one thing that she said that is not really positioned for as a meltup, it's the one thing -- everybody's covered, looking at everything else, and i thought of her on friday and i was wondering, this, you know, a really strong jobs number we thought it was -- remember when it first came out it was like, oh, no. 700 points so i just wonder if we're all missing that where we can be at 45 or 4,600 before you know it with everyone always talking about october lows, mid-3,000s on the s&p.

but when all you see are five stocks taking us higher, you can't help but think, this is not real >> one thing that traders have said to me recently is that these periods of froth, whatever you want to call it, can last a lot longer than people anticipate >> does it broaden out, though >> i think we did see it broaden out a little bit on friday the dow had one of its best days of the year, but in terms of people not being positioned for this meltup, i think that's one reason people are starting to turn bullish >> so then you see the momentum in place for a while and goes with it. peter maluka, he posted something over the weekend that nvidia currently only has $26 billion in sales versus anywhere from $208 versus $225 billion if you're talking about the big four, microsoft, apple, google, amazon nvidia now trades at over 38 times sales and over 200 times earnings we've never seen a price-to-sales ratio that high what do people say about that? >> i think a lot of people are hesitant to call the ai craze a

bubble just yet. and a lot of it is because we just don't know how this technology is going to be impimpact imp impacted our lives we don't know who will be the winners and losers of this these tech stocks have done well for years, even before ai kind of came into the picture and now they've become the top way for people to play ai. i think a lot of people are still very optimistic on nvidia, despite those stocks that you just mentioned >> somebody this morning was saying, if you strip out, i guess, those eight or nine technology stocks that have really gotten a boost from the ai, you would be talking about s&p 500 that's down for the year and maybe that's reasonable valuation for the rest of them do you think the rest of the s&p 500 catches up do you think the high flyers come back down where does the averaging out happen >> it's so funny, because i'm thinking back to the beginning of the year when a lot of people were saying, we think this is like the dotcom bubble we think the tech stocks are going to keep crumbling. and that just hasn't played out. it's been so tough to bet against these stocks, becky.

so i'm hesitant to say that we could see that broadening. but i think a lot of investors are finding fewer and fewer reasons to be bearish, joe, as you pointed out, where that jobs number was just blockbuster. >> from goldman, just raised -- lowered the expectations for a recession, from 35% to 25% >> i'm hearing that across the board. i'm hearing people saying, maybe that soft land willing come to fruition i'm finding fewer and fewer reasons to be bearish. the fed looks like it's going to pause next month what are the other catalysts, kind of the next few months? so you are starting to see people position for that kind of meltup, because of that. >> gunjan, thank you good to see you. coming up, a top apple analyst will join us to talk about the company's new vision pro headset and what it could mean for apple's bottom line but next, we'll speak with senator john thune now that the debt ceiling standoff is over. as we head to break, here's a few of this morning's top

business headlines among them, "the wall street journal" saying that bed bath and beyond, our favorite little story, it's buy buy baby change to retail investment firm, bed bath also reportedly fielding interest from overstock.com for its intellectual property. maybe we should get in on that, joe. all that ip. >> pick another store. >> i think there's some ip, though saudi arabia's latest 1 million barrel per day oil production cut unlikely to lead to sustainable pricing increases into the high $80 and low $90 range for crude oil. that's according to a new take from citi analysts, see whether they're right or wrong stupid, you're watching "squawk" and this is cnbc ossible. that's what you get from the morgan stanley client experience. you get listening more than talking, and a personalized plan built on insights and innovative technology. you get grit, vision, and the creativity to guide you through a changing world.

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welcome back to "squawk box" this morning the debt ceiling fight sucking up so much of the oxygen in washington for the last month, now that a deal is done, congress moving on over battles over spending and taxes. joining us right now, senator john thune of south dakota the senator serves as a minority whip, making him the number two republican in the senate we're thrilled to have you at the table, without a blazer on, no less. >> did it for us >> did it for us nice to see you. >> you can pull it off he does look good, without the

blazer help us understand what you think is now officially on the agenda, that was effectively off the table for at least the last month and a half, as everyone was focused on the debt ceiling. >> everything was balled up behind the debt ceiling vote there are a few things that have to get done that will be bipartisan the farm bill something we do every four to five years it's a big piece of legislation. the current farm bill expires september 30th and, so a lot of focus on trying to get that going. if we don't get it done on time, we do an extension, which isn't a good thing faa reauthorization is another big issue, we do every four to five years a lot's changed in the aviation world in the last four to five years. that's something that should be bipartisan and then the democrats have their agenda if you listen to schumer, it's going to be pharmaceuticals, prediction drugs, something on real safety, regulation. something on ai. he's got kind of his to-do list. and then there's just a normal process of moving appropriation bills. now that we have, you know, a cap established under this deal last week, now we have to try to

get down and do individual bills. going to be a very busy summer and fall >> happy messy is just the appropriations itself? >> how messy >> yeah, given -- >> very. it's always very messy and now you've got to figure out underneath, how do you allocate funds in each of the categories and where are you going to make the decisions about where money gets spent and as you all know, last week's deal just dealt with basically the discretionary side of the budget it plussed up defense, not as much some people wanted and ramped down nondefense discretionary spending, but didn't touch any of the mandatory part of the budget, which represents about two-thirds, 70% of all spending. it's a small amount that we're talking about. but for the first time in a decade, we're actually directionally, you know, decreasing the size of government instead of expanding it >> you are the ranking member of the subcommittee on taxation and irs oversight. we talk about the ayres constantly in this last go-round on the

debt ceiling issue, fithe irs budget was reduced are you happy about that >> i am. i think a lot of the irs -- >> the ramp-up in spending, that included not only the inflationary reduction act last august, but if the president had his way, the president had another 29% increase on top of that you're talking about $80 billion in new money, 87,000 new employees. most of which or a large percentage of which were allocated towards enforcement. the criticism of the deal that was that doesn't do nearly enough for what republicans want to do to the irs >> no, i understand. >> and you're not finished -- >> but the question i would ask is, where do you land on enforcement? do you think that taxes shouldn't be enforced? >> no, i think they should and there's an argument to be made that the irs needed some additional resources and manpower in that area. but it was so excessive relative to what -- if you look at how much was allocated to taxpayer services, which is where the irs has really dropped the ball, a couple of years ago, they were only getting about one in ten calls answered from people

calling into the irs and they have made these assumptions, the democrats have. that if you put this amount of money into enforcement, you're going to generate all of this -- >> you're going to collect a lot more revenue >> and there's probably a certain amount, i wouldn't deny the fact that a certain amount of additional revenue could be generated if you up compliance but it's nowhere close to what the expectation is if you look at tax compliance, it's pretty close to what it's been for the last several decades. >> the right, you know, the left, both harping, obviously, some people would say that that's a good thing. the far right most upset that there wasn't more done in terms of the irs we had speaker mccarthy on he's like, you know, i get this done and now all i'm hearing is, wow, more democrats voted for this than republicans. there must be a reason for that. do you think he got a lot accomplished >> i think he played the hand that he was dealt pretty well. i mean, remember, democrats control two-thirds of washington they have the white house and the senate

we have the house of representatives. and by a very narrow majority. he managed to execute on getting not only a bill through, initially, but then, the second time in negotiations with the wo white house, something that for the first time in a decade actually ramps down discretionary spending and increases defense, without growing government expanding any programs or tax increases. that's pretty remarkable given the constraints that he has to -- >> true or false we have enough revenue and we need to live within our means. >> true, yeah. >> there's a lot coming in so it's a spending -- because you're going to hear that there were no taxes involved with this deal that's what we've got to talk about in the budget. you saw the president's budget it was like a, just all tax increases. >> when you say there's enough revenue. >> you say there's enough revenue, explain that to me when we're spending way beyond our means. now you could argue, do you believe that you could actually balance the budget properly

without doing great damage to our society, you would be able to balance the budget based on the revenue number we're getting today. >> one, by constraining spending, and that doesn't deal with just the discretionary part of the budget. you've got to start looking at how do we make entitlement programs more -- >> i understand that >> and then you've got to couple that with growth so you need pro-growth policies that increase the amount of the pie. but to your point, i think what you're getting at, andrew, we're spending too much relative to what we're taking in if you look at what we're taking in historically, as a percentage of the gdp as a percentage of gdp relative to other developed countries, we're actually on a ratio basis remarkably low on the list now >> that's why we're able to grow faster than all of those other countries, historically. >> in a free market economy, you want to have incentives out there, a light regulatory touch, and i think too often, you know, the democrats focus on growing government as opposed to growing economy. if you want to improve the lives of people in this country, grow

the economy. and that means you've got to have the right tax policies and incentives to invest and you shouldn't be looking at, gee, how much can you get resea revenue as a percentage of gdp >> you've thought about running for president before >> briefly >> why not it's a pain. i always thought -- i would be a vice president you know, you get to do all the cool things, but you don't really do anything, really so that job's too hard i talked about with ro khanna, he's going to have to be the president, i'll be the veep. but in terms of sununu said, i'm out, because, you're already talking about a plurality for president trump at this point. he said anyone that can't get some traction by november should be out of the race or donald trump will be the nominee. what do you think's happening. what should republicans do >> a lot of them are jumping in.

a lot of them are sensing an opportunity that this huge lead that's out there right now may be a temporary but you get a multi-candidate field, everyone will be vying for their share of the attention and i've endorsed him. i think he would make a great republican nominee and has an incredibly powerful story if heard by the electorate, it's a very winsome message and i think he could generate a lot of support. the question is, who breaks out. what lanes are there out there i hope there's a lane for someone like him who's positive, optimistic, hopeful -- >> do you think donald trump would win? >> right now, if you look at it -- >> could he win? >> i think it's really challenging for him to be able to flip votes that have made decision asbestos him already and those are independent voters and voters in the middle of the electorate that decide national elections. >> there's some breaking news out that we should ask you

about. >> the s.e.c. just filed a lawsuit against coin base, saying that it operated as an unregistered broker since 2019 because it never registered a as broker the s.e.c. saying that the crypto assets that coinbase make available on its platform puts coinbase's operations squarely in the purview of security law firms and therefore security >> this comes a day after their case against binance the s.e.c., gary gensler is coming for all of them >> i think the question with digital assets is, how do you characterize them, and which type of -- there's a lot of argument about, they ought to be under ftec as opposed to s.e.c.. >> but right now, there's no real laws on the book. the president talked about -- >> although this latest thing

with coin baste is pretty interesting. he's saying that this is an investment contract that you made with these investors which makes you a security >> now we leave this to a judge to decide baused on whatever yo think the law is the question is whether you think that congress needs to step in and actually create bright lines around this, or whether you believe that gary gensler should be the one making these choices, or a judge, ultimately >> and there was a bill introduced, several bills, actually, introduced around this, but nothing's been acted on, yet. and i think there are -- this is an area -- you talked about ai earlier a lot, too, where i think you have to have some at least some rules of the road around it. guardrails, if you will, to protect consumers and a lot of it has to do with transparency >> if congress can't make up its mind, which is what it certainly feels like, if they're not going to do it, you know -- >> then go for it, s.e.c., let's duke it out.

there need to be laws and regulations set up around this >> the challenge you always have with congress, and this is where i come back to, it should be -- these things ought to be light touch and risk-based toompb something happens in the economy and congress goes to the extreme and overregulates. and gives the regulators way too much power i agree that in these -- all these new areas out there in our economy that are incredibly impactful in people's lives and potentially have adverse impacts on people's lives, you've got to have some general guardrails and rules of the road. and i think there is a void there and i believe congress does need to act >> do you think they will? >> i think we will the question on the digital assets is, you know, again, whether -- who regulates >> i wondered if you will, because for so long we've had conversations about privacy and social media, so many issues

that have been sort of hot button topics that the american people either think or think they need regulation and yet we haven't gotten -- >> and part of it is policy, people, even regulators for that matter, policy makers for sure are reluctant to act in areas that we really don't know much about. with ai, there's a real push to educate and become more informed and i've been doing a lot of outreach as we try to shape regulations around ai. they're fast growing, incredibly dynamic. you want to get the benefit without all the adverse impacts. >> senator, we want to thank you. >> great to be with you all. >> can we get reagan up on rushmore what have i got to do to make that -- there's rock left to carve. >> i'm a fan >> can't you push it through

>> guys like arthur brooks, who gives you news that you can use are people who articulate that reagan vision and i hope it continues to be part of our -- >> tim scott talks about -- >> right >> the united states like that >> he does, indeed coming up -- >> we just need to talk more about it >> we were watching bitcoin tl real -- >> coinbase is down 15%. before this it was a $10.4 billion company. binance, we said, pulled more than $800 million, investors have pulled in the last 24 hours so there's a lot of money moving very quickly on what the s.e.c. d is doing today >> coming up, we are one week from the start of the next fed meeting. nobody seems quite sure what the central bank will do when it comes to interest rates. we'll ask former council of economics advisers jason furman for his take i did the reagan thing just to

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remember the days. let's talk about it. gamestop is set to deliver its first quarter report tomorrow. however investors respond to it,

it's likely to pale in comparison to the scene two years ago when activist investor ryan cohen took over as the company's chairman >> ryan became chairman of gamestop in june of 2021 and not surprisingly, the reaction was extremely positive. >> an in-person meeting, we tried to get the news out that ryan would not be there. we had individuals coming in bass boats and were drinking at 8:00 in the morning, waiting to get into our shareholder mee meeting. >> it was something i won't forget before 2021, we would typically have two to three shareholders show up at the meeting i believe our attendance was over 400 that day. >> for an in-depth look at ryan

cohen's chameleon career, from entrepreneur to activist investor, check out "the making of the meme king," a new cnbc documentary premiering tonight at 10:00 p.m. eastern and pacific. 10:00 p.m. when we come back, we have much more on the s.e.c.'s new case against coinbase. and a programming note for you. don't miss a special first on cnbc interview with treasury secretary janet yellen ats moowig he on "squawk box" in the 8:00 a.m. eastern hour we'll be right back. father's day is almost here, and dick's sporting goods has gifts for every dad. like golf clubs from taylormade, callaway, titleist, and ping. and coolers and drinkware from yeti. get him the latest styles from nike, vrst, and the north face. plus, the hottest footwear from nike, on, hoka, and new balance.

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breaking news, the s.e.c. now filing suit against coinbase in manhattan federal court it says coinbase has operated as an unregistered broker since at least 2019 because it has never registered as a broker, national security exchange or clearing agency and this is after front page of "the journal" was about binance and this is the next shoe to drop >> it feels like the final scene in the god father. >> take care of all family -- >> gensler's going after. >> yesterday did see a big drop in some of the digital currencies

i don't know what bitcoin is showing right now. but you see coinbase down by almost 15% and that was a company that closed yesterday with a market cap of $10.9 billion you're talking about some serious money. we are a week away from the next fed meeting, with jobs running hot and inflation still evaluated, our next guest says that interest rates should rise another 50 basis points. joining us right now is jason furman he srerved as the chairman of te council of economic advisers under president obama and is an economics professor at harvard's kennedy school of government jason, first of all, good to have you in studio >> great to be here. >> let's talk about what you think. another 50 basis points. that's what you think they should do. what do you think they will o? >> first of all, i feel bad. i feel like i just repeat myself month after month with my views on this topic. but there's a reason for that. the data keeps being the same, month after month. and when the data doesn't change, your views shouldn't change i think they should do 50 basis points over the course of this year, by the way not at the next meeting. >> do you think it's a conversation >> i think they're going to

skip, but i think they'll skip and they'll raise the dots and the question is, do they raise those dots by 25 or 50 basis points >> the jobs data hasn't changed, but we've had lower inflation year over year, almost every single month >> lower headline inflation. that's all because energy prices were rising, which i never believed was a problem now energy prices are falling. i don't believe that's a good thing. i look at core every month that's been 4.5% >> so you think it's still wages and labor. that's what's causing it >> yeah. >> why was it taken as kind of a goldilocks number on friday, even though it was so strong was it the 3.7 unemployment rate >> friday was a little confusing, because you had the strong establishment survey, the unemployment rate go up. i don't think it was goldilocks. most people's recession forecast probabilities have gone back down the most forecasted recession in history hasn't shown up. but i think, yeah, i think it's the inflation is just embedded the wages lead to prices, the prices lead to wages and it has its own momentum now

and that's not -- >> is the recession a success -- >> is recession what you would view as a success for the fed? >> success would be if they got lucky with a soft landing. >> you say it's kind of warped, though people that really want them to keep going are disappointed we're not at 5 or 6% unemployment >> it's hard to look at those numbers and not be happy that's the only tool we have unless you support price cont controls >> like minimum wage >> maybe like maximum wage i remember those >> this is what we do now. >> do you think the fed is

like-minded with you for a long time, it felt like you were kind of pushing them. i'm not sure if that's the case anymore. i think jay powell seems to have more of your mind-set. >> that committee is pretty divided right now. you're going to start to see descents, either the doves don't want to raise rates or the hawks are wondering why they're not raising them anymore he has a more difficult management job i think they really, really set everything out for a skip. i don't think anyone wants to change their plans the day before the meeting but that could be a hot number >> if we were to raise rates the way you would like to see them raised, do you think the banks could remain stable? >> i think the best thing for the banks is to get the macro situation stable if we have 4% inflation for the next couple of years -- >> i wonder whether you think the fed should take into consideration whether raising -- if they were to go 50 basis points at the next meeting and do another 25 or 50 based on

your sort of supposition, there might be banks that go out of business i don't think that's a good thing, obviously how bad is it? and how do you think about that? >> fed has two things with the banks. right now, that credit crunch is looking like it might be a little bit less bad than we feared a month or two ago. part of the reason why i think we need these rate increases the second is, what's the impact of their policy on the banks i think where they mess up the banks is when they lose control of inflation over a sustained period of time >> what do you think the unemployment rate needs to look like in the united states to become, quote, stable? >> i don't know. if you want to get floimt to 2.0, i think you need an unemployment rate in the 6s. if you want to get to 2.0 >> that's a massive shift from

where we are today >> i think if the fed gets to 2.99 -- >> but do we need to be at 4.5 at 4 what is it that in your mind >> i would guess around 4.5 to 5. >> and is that will politically palatable? >> that's why we have central banks is to make tough choices they have -- the inflation mandate helped our economy over a period of decades. the idea that we would give up and say we're fine at 4.5% inflation. >> i'm saying, underneath it, that's the fundamental issue, right? >> yeah. >> what you need to do is cause massive -- or not massive, but on a relative basis, what would feel -- >> there's no supply side way to do this without. >> i'm shore you would love -- -- >> all of those things are inflationary and when you have higher interest rates, you can't start

businesses sbrep nurs have a harder time providing the jobs that you need more jobs more people to go into the jobs >> supply is slow. we do not have any lever that can rise supply by a lot on a two-year time horizon. the only lever we have -- >> we use a bazooka when we should have a dart, you know, for what we want to do >> the longer you wait, the bigger that bazooka is >> that's if you believe we're in the '70s. >> well, we don't have -- >> -- thought energy -- >> and supply chain and pandemic reopening. >> no one's here talking about raising interest rates by 10%. >> you don't think it was from overspending for the past two years, either? that's not what caused it? >> it was overspending, it was the fed, and it was some bad luck they all combined, regardless of the cause, we are where we are now. and the longer we wait, the more that unemployment we're going to need, the bigger bazooka we're going to need. that's what they need to try to

v avoid. >> jason, thank you. good to see you in studio. coming up, we'll speak with analyst toni sacconaghi about apple's latest announcement, especially whether the new $3,500 mixed reality headset i'm so excited about can move the needle with customers. stay tuned you're watching "squawk" and this is cnbc

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new product in a decade, shortly after the market opened yesterday, but before the headset reveal, apple's stock hit an all-time high which is pretty amazing. i don't know what we're talking about here that's an all-time high, it became public in 1980. toni sacconaghi, on a new note, he says apple's vision pro provides a glimpse of the future, but he questions whether vr and ar headsets are ahead of their time that's -- i kind of see what you're saying with that, toni. and we keep paraphrasing or qualifying everything with, what about five years from now? no one thinks that this is the end-all, be-all right now. but i can't imagine that there's any way, maybe you can describe it, is there any way that this could be a net negative for apple? could this end up not working for them in terms of the to become price

>> good morning, joe i suppose one could create scenarios where this is a negative for apple they're also investing a lot of money, billions of dollars in the development of this product and if it didn't pan out, it would be an economic loss, but more importantly, you know, it could create broader reputational damage. i think the second thing is, look, the risk of not doing it or doing it poorly is potentially greater, because, you know, technology is littered with platform shifts when the pc moved to the smartphone or the mainframe moved to traditional servers and pcs, companies that didn't make that move got destroyed. and so, there is a possibility that over the next 5 to 25 years, we do have a platform shift. and apple has to be there. so, i suppose the second scenario is, apple plays, but doesn't find the right product/price point to really be

effective in momentum swings to another player >> that'sprobably -- so there are a few scenarios, but, if you were a betting man, you would bet that this is a net positive for apple, or at least they have to do it >> they have to do it. and i think it probably does end up being a net positive. it's really a sense of, to what degree i think right now, most people can't imagine having this computer on their face it's cumbersome, the use cases are, you know, questionable at this point, beyond traditional virtual reality use cases, which, you know, right now are pretty limited there are about 9 or 10 million vr/ar headsets sold per year it's still very much a niche product. so i think already real questions, but we have to remind ourselves of the history of technology when the first smartphone came out, it weighed 2.5 pounds, it was 8 inches long, it cost

$4,000, and took ten hours to charge for 30 minutes of talk time and we see how that evolved. and this is a product that is meant to seed the market it's called pro, because i think it's really targeted at commercial users and developers. and hope t unlock and unleash the creativity of developers then we'll see if there are use cases. it might take two, three, four years, but i believe over time creativity will find use cases the technology will improve. you'll have lighter and more accessible form factors, and this could become a product category i don't know how meaningful ultimately it will be, but a product category. >> we're not anywhere close to doing back flips, toni i've seen you do back flips. the newton was an apple product, once it? i have to go back far to remember the last thing that really flopped.

>> it was. arguably some of apple's foray's, the home speaker, hasn't been real successful. i say in the new category, the newton is the best example. >> have you put one on >> i have not put one on. >> tony, do you see a bigger opportunity, an opportunity for meta in all this i've been arguing if this is a $3,500 product, a product that costs $500 or $1,000 that's available at christmas time this year that can do some of the things this can do might actually become an attractive product commercially. >> andrew, that was actually my initial reaction, this could be beneficial to meta, particularly this christmas, because apple is really raising awareness of the category we've seen apple enter categories and the categories grow tenfold over five years, in part because apple brings great products to market, but also

because apple creates consumer awareness. i think you're absolutely right. we're going to have a quest 3 probably under $500 that has much of the vr cape volleyball that apple's headset has, will likely not have the seamless ar capability this sort of awareness could certainly help meta and others >> all right i don't know do you think if toni had been there and tried one on, he'd be more excited >> i think he's appropriately skeptical and yet excited and what it could mean -- >> tony, on a scale of 1-10, how excited are you, like a 2? >> i'd say right now for apple's financials, it's 1 or 2. it's going to be less than .5% of revenues. ten years from now could this be

5% or 10% and could the head similar look similar to the glasses i have now >> let me ask toni a different question when the watch first came out, what did you think of it and what did you think the potential was long term? >> clearly the watch was an established category and we thought there was potential. look, it's a huge business, but it's 5% of apple's revenues today. >> right, 5 or 10%, yeah >> so that's certainly incremental. it's not changing -- apple needs to continue to develop products and services to drive what is a huge revenue base and drive growth i do think the computer on your face will look more like eyeglasses on your face ten years from now. >> yeah. that would be better bo ndsnodyee a computer on their face thanks, toni

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back to "squawk box. joining us is senior investment strategist at edwards jones, good morning, imana. >> good morning, andrew.

i don't know if you saw what jason had to say he has a view the fed has to raise interest rates materially. do you think equities are in the right place? >> we think the fed is near the end of its iet ening cycle could they have one or two rate hikes ahead of them? sure we don't think that meaningful moves the economy as it did from 0-50 basis points. on the margin, we could see pressure on housing, maybe consumer credit, but more broadly the last 25 or 50 basis points we think the economy can absorb and has been absorb tlug this last 500 basis points or so from a market perspective, we certainly think we're still in this late cycle environment, this narrow breadth points to that as well for a broader market to emerge, we think it might take some time for the rest of the market to

participate as well. >> are you in the category that we're now in a bull market then? >> we think some sectors there's three sectors that are categorically in a bull market, up to-30% plus, those include technology, com services and consumer discretionary the remaining eight or flat or negative for the year. so no, not in a bull market more broadly. we think as the economy heads towards a potential slowdown, a softening perhaps in the back half of the year, that will give the opportunity for markets. they are forward looking, to look past 6-12 months. 2024 is shaping up to be potentially a better year for economic growth, potentially a fed pause, ultimately a pivot lower. earnings are looking to rebound as well. i think as markets head towards that environment and can start looking forward to that, we will get broader participation from the remaining eight sectors including cyclicals, small caps, international, longer duration

bonds. all that has an opportunity to play catchup the volatility we may get in the interim we think could be the opportunity for investors to start positioning for a more sustainable rally ahead. >> mona, thank you for your sfif this morning >> thank you, andrew. meantime we'll take a final check on the markets a bid of red on the screen, dow off 22 points, s&p 500500 off about 3 points, nasdaq down about ten points with everything that's happened in coinbase -- ten-year at 3.7, ten-year at 3.5. let's go straight, if we coupled, to crypto for a second. we've been talking about this news, sec going after coinbase gary gensler will be joining "squawk on the street" in just moments. coinbase off 17, 18% >> coinbase was over 300

coinbase was a $300 stock. >> it was a $10.9 billion -- >> authorized by the sec is to go public. how is it the sec can authorize a company like that to go public and here we are -- if you're an investor. >> i like hearing that from you. "squawk on the street" is next and gary gensler next ♪ ♪ good tuesday morning welcome to "squawk on the street." i'm carl consistent nia with jim cramer and david faber apple and coinbase at the top of the news flow. goldman cuts odds of a recession. another s&p 500 target hike from bemo apple getting into the headset game, looking to bring mixed reality into the mainframe the sec's crypto crackdown, bitcoin dropping to its lowest