with the fed data tomorrow the latest. a tanker truck fire in philadelphia caused part of i-95 to collapse. a section of the vital highway could be shutdown for months. ubs completing the acquisition of rival credit suisse we have an exclusive interview with sergio armotti. it is monday, june 12th, 2023. "squawk box" begins right now. good morning welcome to "squawk box" here on cnbc i'm becky quick along with joe kernen and andrew ross sorkin. we're all over the place happy monday let's see what is happening with the u.s. equity futures. there are green arrows with the

nasdaq and s&p s&p up 10. dow up 14. the nasdaq up 70 if you put it in perspective, let's look at the major indices. the dow up almost 18% since last fall the s&p up 20.2% nasdaq up a whopping 27.3% continuing to power forward with this look at what is happening in the treasury markets you will see the 10-year treasury at 3.765% the 2-year treasury up 4.611. a andrew. thank you, becky the news crossing the wire nasdaq is buying adenza. nasdaq paying an an $10.5 billion in cash and stock for that we will talk with adena friedman in the 7:00 hour

we will do that first here on cnbc joe, a little monday morning deal news to kick us off >> adena is buying adenza? >> i thought the same thing when i read it. >> it has nothing to do with the nasdaq it doesn't hit. >> it does if you read the release. >> it does it is synergy. it increases the market by 40% for all of the things that she talks about expanding the nasdaq expanding that business which has been the growth part of the business business we will talk to adena about adenza coming up. >> an hour. >> she will be here in studio. i don't know what this means >> i've been stunned trying to figure this out.

philadelphia is between here and lots of places >> yeah. >> this is unbelievable. look at this shot. >> yup in the northeast, the gas tanker caused a portion of the highway to collapse in philadelphia yesterday morning. i was worried nothing was underneath at least. you can imagine. pennsylvania governor shapiro will issue a disaster dec declaration today. that is the many north/south highway on the coast from florida to maine and canada. i guess, you know, there are ways to go around it >> there are i was looking this up. 95, if you stay on the turnpike, it doesn't go over the section go down over the turnpike and go down over the delaware memorial bridge and you avoid this.

there is so much traffic diverted from what used to travel over this section of 95 every roadway will be a mess until they get this up and running. >> you are right i think that is the way we go. we don't go right through philadelphia >> i looked it up on the map i'm supposed to be in philly on friday for a concert i was ifiguring out how it impacts. going to a concert stevie nicks and billy joel. >> that's cool that's something to look forward to that is a tgi-friday >> football stadium which is south of where all this happened this is a little further north of the city. it is not the part that the main 95 highway >> where is the concert? >> at the football stadium >> i once saw, as a big swiftie,

i saw taylor swift in philadelphia at the stadium. you need ten stadiums so she can sell out ten. >> these days. meanwhile, new overnight, ubs saying it completed the takeover of the rival credit suisse the company will have a balance sheet of $1.6 trillion, and work force of 120,000 it will cover losses up to $10 billion after ubs incurred $5.5 billion as part of the transaction as it absorbs the portfolio that does not fit the business or risk profile we will talk to the ceo sergio ermotti. that will happen at 7:00 eastern time on ""squawk box. becky. andrew, thanks

illumina says the board of directors accepted the resignation of sdesouza. he will stay on as an adviser through july the board will continue internal and external candidates for the search for the new ceo illumina has been in a proxy fight with icahn icahn treated he is happy with the recent events and including the ceo transition and election of steve mcmillan as the new chairman this came among the hindenberg report that came after carl icahn which damaged him in terms of what he was trying to do.

desouza came under fire with the acquisition that he was trying to bring back into the fold against regulators he was fighting regulators in the united states and europe that was seen as a failed attempt to bring it back in at $7.1 billion acquisition that may be what pushed this over and damaging things with the icahn proxy. >> he was on two weeks ago he has been on the show many times. as has mcmillan. >> from stryker. >> right >> desouza is on the board of disney he is a competent member the mishs here is the grail deal maybe it was impossible to read it properly. what regulators would do given the activist approach the

regulatory bodies all took when he first went down this road with grail, the kind of regulators in the roles were different. we have seen a shift in how the regulatory community is reacting it ha it has been interesting to watch with. >> it is hard to fight regulators when they double down it got to be an ana controversi fight. >> it could be good for drug disc discovery. i don't know if it is less competitive for the field. i have seen it in the journal op-ed pages. why are you stopping this? >> desouza's point is you

wouldn't be able to help as many people >> the government has their own stuff. oil. jobless claims remember claims above that level and we said does this mean anything saudi's cut cannot hold 70 goldman sachs slashing the forecast i was at -- i'm allowed to say this i was at a ruth's chris, at the mall business is bad. business had been bad for the last six weeks ruth's chris is nice of the it -- nice it is pretty nice. >> what happened six weeks ago >> nothing business turned not nearly as good at this time of year as it normally is. what it made me think is the

pandemic -- post-pandemic spurt was starting to -- >> peter out. >> we have been waiting for that the gentleman i know there that i talked tos says that for a ln time people have money from the government when you have it, you use it you are shopping at the mall and this is a fancy -- the best mall in the country you both have been there. >> yup. >> now we got this goldman sachs slashing the oil price forecast from $89 a barrel tot $81. the head of commodities jeff currie cited strong production from china the additional cuts by saudi arabia are unlikely to result in

the price spike. no idea what that says in the middle we will talk to jeff currie tomorrow on "squawk box. i think this may be a becky read coming up. i would not know they have a fancy prompter that doesn't work. >> it is my read it works here. >> dark here no one cares when we come back, inflation data and the fed meeting on the agenda this week we will talk you through what could be happening inflation numbers on tuesday and wednesday. dow up 6 points and nasdaq up 68 later, join us and stick around former fed governor kevin warsh will join us at 8:0a0 a.m. eastern time you are watching "squawk box" and this is cnbc

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get ready and set, go. investors are gearing up for the latest read on cpi tomorrow and fed kicking off the meeting on wednesday. joining us is stvictoria greene. victoria, we were talking about how far we have come from the lows and the fall. a lot of people are buying into the bull runny idea.

you are skeptical. why is that? >> i am. the market is trading on expectation. i look at the world and say is it getting better or worse that is the question i think the consumer is under pressure we have too much liquidity sucked out of the system i think with the pause or skip here, we are still looking at the economy getting worse. maybe we are avoiding the harsh recession, but you are seeing the tightening you will see the lag effect kick in and unemployment move up. you were talking about the less people at ruth's chris, people are reining in the spending. i'm not uber bearish, but you need to be cautious. the consumer is stressed and the economy is driven by the consumer spending money. they are starting to run out of money. i think we are cautious. look away from the nasdaq and places equal weight and value and be

defensive and cautious >> you pointed out that the breadth is whatconcerns you. there are a handful of stocks responsible for this you think the stocks are getting into bubble territory? >> it is i would hedge by saying bubbles are irreleairrational everybody loves nvidia they are priced to perfection. let's say it takes longer for the expectations to come through, you could see it price back down. you see the top five in the s&p 500 is 24% last time that happened is late '90s and early 2000s. small caps are rallying in june, but the bulk of the rally is built off eight stocks which are overpriced >> we have important numbers coming up this week. we have the fmoc meeting

f inflation data in a couple days and the fed decision with the new dumb dot plot. the good news is the fed will slow a little and they will back off which means they are positive over the mid-to-long term >> it is the fed is backing off because the economy is tightening. it is a sign of not higher rate costs and mortgage up to 7 lending is expensive credit card debt is expensive. we think cpi moderated we think it will come down more month over month and year over year the numbers will be nicer at 4.1 on the normal cpi. 5.1 on the core. you are still seeing cpi heiot the question is how strong is the labor market we saw the employers reporting with the 340,000 gains over the

households reporting unemployment reported by households as jumped from 3.4% to 3.7%. the fed has a conundrum on their plate. inflation is still high. it is a pause. it is 27% likely for a hike. don't forget the dot plot may show two hikes, not one. whatever powell says, he has to keep everybody happy >> just to be clear, you are not calling for a decline in the s&p. you think it is reaching the upper end? not necessarily a lot of gains >> you are near price. i know any time a bull market is running, it doesn't trade off earnings it is a technical move up. maybe we will see catch up here. i do think you price in even with goldman updating forecast they bumped it up to 4,500 which is 5% from here.

bank of america has 4,300 year-end target. you will see volatility coming in near term as the market absorbs. yes, we might get a fed ause i'm not saying we are necessarily going to re-test lows, but reaching near-term overbought especially in the nasdaq and s&p. russell 1000 value is equal weight they may start to play catch up to the s&p 500 that is concentrated you need to breathe and caution people from the fomo that really is difficult when you say look at what it has done and i can't sit by >> you miss the run. >> be patient. >> victoria, thank you we have more still to come on "squawk box" this morning including the interview with the ceo of ubs after the acquisition of credit suisse we will have a huge lineup on

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welcome back to "squawk box for lgbtq seniors as they age. sharon epperson has more on how they fill the care gap >> reporter: margaret rush came up with a plan to grow old with her wife >> we both came out late in

life we didn't want to go back in the closest. >> reporter: they created an age 55 plus housing community for lgbtq+ seniors and allies in north carolina pat joined us on zoom while she was away caring for her sister giving an appreciation for what she and her wife built. >> rewarding to know there are 30 something people who have our backs. >> i find that refreshing that we all can say we will die there will be people who will get sick these things will happen we also find that we are really good at taking care of each other. >> every voice is heard. >> reporter: neighbors gather together to discuss shared values and organize events and talk about elder care. >> we want to see each other grow and thrive and develop in the community. care taking is a central tenant.

>> reporter: allison started the business as an aging adviser she says the most important step for older adults is to develop a care plan before they need one >> a lot of people don't think about that between time. retirement and actually needing services there is a really big piece missing when it comes to, you know, what you could be doing to p prepare. >> reporter: she advises to take time to educate about the options for care giving and how to mitigate costs. >> if you have a plan or look at the options, you are not stressed when you are in a critical or crisis you put things in place. you have a step by step plan laid out which will only save you time and money >> reporter: how to create the plans has been among the key discussions in the community >> residents have taken steps to

prepare finances be an arrange for care as they age they held workshops on powers of attorney and advanced directive for medical decisions and finding someone to draft the legal dobcuments. these are the steps to take as you age and lgbtq+ seniors so spouses and partners or loved ones you choose are the people making certain your wishes are carried out. andrew >> sharon, you know, how can you find a financial adviser who can help with these documents? >> you will find a certified financial planner dealing with elder care and elder care attorney you want to make sure you have the documents you need as you age and it is important to ask the professionals if they work with lgbtq+ clients or same-sex couples.

ask how the laws in the state can impact financial planning for lgbtq+ seniors you want to know that the adviser or attorney will be able to walk you through specific challenges that you could potentially face >> okay. sharon epperson, thank you i appreciate it. >> sure. >> joe coming up, rising tensions with china a biden administration official says beijing has been spying on the u.s. from cuba since at least 2019 reaction from former governor judd gregg and evan bayh d unlock n . e*trade from morgan stanley. with powerful, easy-to-use tools, power e*trade makes complex trading easier. react to fast-moving markets with dynamic charting and a futures ladder that lets you place, flatten, or reverse orders so you won't miss an opportunity. e*trade from morgan stanley

good morning welcome back to "squawk box" here on cnbc look at the futures. dow off a little bit four points. nasdaq up 60 points. s&p 500 ups 8 points. china. joe, i'm talking about china i can look at you and say china. >> i know. i'm ready to go. we needed two guys or gals each senators or governors bayh was a governor?

>> he was. >> i think so. >> two terms >> if you haven't done both, you can't talk about china, i don't think. these guys have. they qualify china has been spying on the u.s. from a base in chuba since 2019 secretary of state blinken is set to visit china which was rescheduled when the chinese spy balloon entered u.s. air space of the joining us now is judd gregg and evan bayh. good to see you both, gentlemen. if they never made the movie, "casablanca," we would never know how to say i'm shocked, i'm shocked with spying going on judd, is this different and more concerning

>> no, it isn't in my opinion. soviet union used cuba and the castro dictatorship for years now china is taking on the legacy as a source of getting intelligence about the united states we are confronting in this world a china that basically resists and does not like the fact that american democracy and market economics is more successful than rule of the gun they want to compete with us as a country in various parts of the world. the key here, i think, is that we not overstate the implications and move to some sort of saber rattling we see a lot of that now some in congress and certainly in the pentagon. the house of representatives

republicans has a war game about china. you don't go to war with a country with a billion more people than you have you confront them and say there will be tensions with us we will spy you and you will spy on us. you are stealing our i.p if you are using cuba as a source of getting information about the united states, we will use our technology to disrupt that, too. let's not overreact here >> evan, do you think we try to steal china's technology >> of course we do they have been trying to steal ours effectively for many years. what is going on here, first of a all, good to be here with you, joe and my friend judd gregg judd is right. we have a competition with freedom and dictatorship in the case of china with the control of the chinese communist party that is the long-term picture. the short run, the situation over taiwan will come to a head

in the next three-to-seven years. the chinese are doing all they can to get ready for that. they know if they take military action against taiwan, the first thing the west will do is impose economic sanctions on them they are trying to penetrate our companies and u.s. government and grid and all that to prepare. this is a small part of doing that yes, we do spy on them we try to steal their technology they do the same thing to us the final thing i would say is what they really love and vladimir putin does the same thing. they love chaos in our country and americans divided and hating on each other. when you think unamerican is unamerican because of the political views or ideological views, don't do it you are doing what the chinese want and what putin wants. >> judd, we watched for years

the country liberalize a little. i remember ping pong. it is good for both countries. we opened up and developed a relationship a better relationship. we hoped all that would somehow thaw the human rights and dictatorship by gun. is that a mistake? should we stop engaging, judd? we have big companies totally dependent on their operations -- not totally dependent, but no way they will end or disney will pull out or apple will pull out or any business stop doing business in china. starbucks. any company. >> you are right it is great to be on with evan

his comments were right on you are right. there was a period and there has been a period where we have tried to engage with china commerc commercially to hopefully less than the dictatorship. now you have xi moving back to an autocratic system if it could be more autocratic in the area of commercial activity that is changing the ground rules. we have to go into this with open eyes. we can't be unrealistic. we can't put on rose-colored glasses. we are dealing with a government that manages its people and economy. we want to do all we can to work through those relationships to continue to do business in china in a constructive way, but we need to know that china really wants to replace the united states and replace the dollar as

the world's currency and an replace us as the world's force for democracy. >> the gulf merger, evan, sort of refocused attention on saudi arabia and human rights. i keep trying to figure out should we view both of the countries equally in terms of human rights abuses? i can't imagine -- i know what happened to khashoggi and the journalists. i understand that. i know how important oil is to the west i have heard, if you believe what happened, in the uyghurs work champ shypocracy?

>> no, joe >> we have multinational companies that would not dare deal with saudi arabia h they are in china constantly >> the saudis, you mentioned the khashoggi killing which was horrific, but on the intelligence level, saudis cooperate with us. i can tell you where saudis sharing information saved american lives >> 9/11. 9/11 people remember 9/11 though. >> there is that since then, there are other examples it is a mixed bag. as judd was saying, we have to chew gum and walk at the same time we have to cooperate where we can. part of that is american companies compete in the vast market with the consumers. you have to be careful in a conflict over taiwan, one of the first things they will do is seize american assets there

we have to be careful as you stated about supply chain d depe dependency rare earth materials saudis have issues, but they are an ally. the chinese, and judd rightly mentioned the new leader taking a different approach, they view us with hostility. they think we are arrival of their's. they present a big -- for our children, joe, china is the biggest problem by far >> the enemy of my enemy, they offset iran. china and russia are almost on a united front against us at this time i don't think it is even close. >> of course, it isn't it isn't close with russia

china is probably the world's largest economy within 10 or 15 years. it has 1 billion more people than we have they are confrontational with us in a lot of different areas. we have to figure out how to deal with that evan is absolutely right when they try to takeover taiwan in some form, that will be a massive event for us and for the world. realistically, we have to acknowledge the probability of that is good because xi is going to do it of so far, everything xi says, he has done we have to be ready for that and an as evan outlined, be smart enough to handle it without military confrontation or leads to damage to them that makes it difficult for them to pursue that course. >> joe, can i add one thicng

>> yes >> vladimir putin did us a favor by invading ukraine. he caused western europe to awaken to dictatorship and freedom. there are dangerous people in the world willing to use force to suppress free people. vladimir putin is one. the chinese communist party is the other. >> you think they would not need to be reminded it's europe. >> i know. it is europe. >> twice >> now they have a tyrant on their door step killing innocent women and children they have seen what has happened the germans have a problem they rely on china for exports hopefully over the next several years, they will stand with us and, you know, god willing, we have to do what we need to do to prepare. maybe we can convince the ch chinese to take a more sensible path we have to be clear. >> judd, he is on the

intelligence committee and from indiana. the midwestern sensibility new hampshire is okay. live free or die new england conservativism >> no sales tax. >> you are right in the middle maple syrup. >> we're only physically here. we are not intellectually or politically part of new england. we are probably closer to indiana. good, honest people trying to do a day's work and not pay a lot of taxes >> the new hampshire/hoosier access new power. >> are they still in baltimore i don't think so all right. thank you, both. senator/governor okay let's do this again. we'll take it on the road. >> thank you, joe. >> thanks, joe

when we come back, we will get you ready for the inflation data and the fed meeting we will talk to former fed vice chair roger ferguson ahead of the policy meeting this week and former fed governor kevin warsh has a new piece in the journal "squawk box" will be right back. at 87 years old, we still see the world with the wonder of new eyes, helping you discover untapped possibilities and relentlessly working with you to make them real. old school grit. new world ideas. morgan stanley. ♪ ♪

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billionaire george soros is handing control of the $25 billion p empire to his son alex the mhis son alex is 37 years old. in the interview over the weekend, he is more political than his father and hinted at a more significant role in the elections. george soros has been the largest political donor. coming up, we will talk about the return to work and the offices. you can listen to us any time on the cnbc app we're coming right back.

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#. welcome back to "squawk box. we are continuing the conversation about the future of work joining us in an exclusive interview is brent saunders, new this morning, brent is board joining the board of roam. it's a software platform we featured for virtual work meetings founded by ho howardlerman brent served as board member to cisco, the company behind another meeting tool, webex, good morning to you, brent >> good morning, andrew, how are you? >> i'm great it's nice to see you we haven't seen you in a long

time thrilled to see you now. we're doing it remotely, which is sort of the way of the world i guess. the question i think is we have this fight taking place around the country, all over the country with various businesses taking different positions on what it means to be hybrid, what it means to be in office, what it means to be something else. what is your real long-term bet on what takes place? >> yeah, look, i don't think we ever go back to where we were, and it's interesting because i used to be a real stickler about work was in the office and everybody needed to be in the office the great experiment we got to do with the pandemic of having people remote really opened my eyes to a lot of the benefits but there's still some issues around how to engage people remotely, and the technology hasn't kept up that's where a tool like roam gives us the ability to still keep engagement and productivity high while having our employees all over the place

and last -- and i would just add this if i could, i'm sorry, there's no -- take a company like bosch and laum, we may have an office in new jersey, but i have offices all over the world. my leadership team i have somebody who reports to me sitting in shanghai and europe, so we're never in the same office to begin with. >> explain to the public, and we've tried to explain to folks what roam actually is. it's a little bit hard to describe onto itself without seeing and playing with it, but take a stab. >> yeah, so you're right it is hard to really appreciate roam without actually seeing it, but it's basically a virtual headquarters it's a way to map your organization remotely and have people be able to work together instantaneously so you get back to those casual engagements. i think one of the greatest statistics of roam is the average meeting in roam is eight minutes. think about your average video conference on zoom or teams or whatever it is, it's scheduled

for a half hour or an hour you know, roam in and of itself because of the way it's set up, you can have a casual interaction. it could be audio, it could be video. you could have the big meeting you could have a big feeder and do your town hall. everything is there and it's mapped, no matter where you are in the world, you can engage with your employees, which is the holy grail of all efficient enterprises. >> what is your sense, though, when you talk to other ceos of where their head is at there is a sense -- i mean, we also talked about office real estate i think people are very -- trying to be supportive of their local community insofar as they want people back in the office, as much to advertise their own real estate as it is to keep everybody else that's in that community employed, and i'm talking about the restaurants and the dry cleaners and the this there's sort of a whole ecosystem obviously that we've built around this country. i think the bigger question even is longer term, if roam is in fact the future, if this is

where it all heads or at least there's some hybrid, you know, some kind of hybrid, from a policy perspective, you know, what are we supposed to do when you look at -- when you look at some of these cities that have been almost hollowed out >> yeah, look, i mean, i think at some point we're already there, right and even the return to office mandates that are coming are three days a week, they're not five days a week, and so you know, i think we as ceos, we have to look at it responsibly, and you know my first calling is, okay, how do we keep our employees engaged and productive then it's how do we -- you know, how do we make our products better and how do we innovate and then of course how do we support the communities in which we operate it's always a balancing act. the reality is i think we're going to be in smaller footprints i think we're going to be more in hoteling like offices, and i think we're always going to have some sort of hybrid approach to doing that and look, today it's harder for

companies to think about hybrid because we don't have great tools in the toolbox we have video conferencing, very clunky, inefficient. i always think of the video conferences where bureaucracy goes to grow and decisions go to die, right we need more of that spontaneous interaction. we need the quick interactions we need the way to engage with employees like we used to when you could walk down the hall and knock on somebody's office as those tools like roam continue to improve and build better efficiency, i think the equation that ceos are going to look at is going to be more balanced they're going to have better tools to do it. >> brent, we got to run, just real quick, productivity, similar productivity or do you think it's up or down? because some people have actually argued both ways? >> yeah, i actually think it went up, and then it peaked and it's starting to come down as we get better tools, i think we'll see another spike. that's why i'm so excited about roam. >> brent, nice to see you, sir see you soon. >> great seeing you too.

>> don't be a stranger. >> i won't, andrew thank you so much. coming up, sergio ar ma tee, ubs ceo joins us in an exclusive interview. former fed governor roger ferguson will get us rdy feaor this week's fed decision "squawk box" will be right back.

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good morning, and welcome back to "squawk box" right here on cnbc, i'm andrew ross sorkin along with becky quick and joe kernen on a monday morning u.s. equity future, a bit of a mixed picture right about now. down on the dow about five points you're looking at the nasdaq up about 63 points. you can take a look at the s&p 500 up about seven points. we should flip the board around and show you where treasuries stand ads well we're going to look at the two-year and the ten-year and 4.6 by the way on the two-year, becky, look at that. >> it continues to pick up, although a little lower than we saw just about an hour ago we want to get over to dom chu,

he's got a look at this morning's premarket movers what's caught your fancy so far? >> it's got to be tesla to start things off many of our viewers and listeners know that tesla has had a record tieing 11-day winning streak which has added $200 billion of market value that's like adding just for c context an entire netflix and amd or cisco systems in market value in 11 days those shares are higher by about 1.25%. about 900,000 shares of trading volume if it were to close again in the green today, it would mark the longest winning streak on record for that stock that most recent leg being propelled by news it has deals with ford and general motors to allow them to use tesla's ev charging network in the future, so we'll keep an eye on tesla shares, still working on that winning streak we're also keeping a close eye on the analyst desk. we're getting a call out of jpmorgan where the team has updated carnival corporation

the target price goes up to $16 from 11. they cited amongst other things continued positive trends in bookings and improving balance sheet dynamics they also upped their target prices from competitors, norwegian cruise lines and royal caribbean. carnival is up about 5.5%. b of a did a similar move. we'll cap things off with a check on crude oil prices. both benchmarks lower by 2% for u.s. benchmark west texas intermediate, world benchmark brent crude prices wti, 68.64 brent crude 73.41. this is due in part to analysts at goldman sachs, they've cut their target prices for both bench marks, year end wti is now expected to be 81 bucks down from a prior 89. brent crude 86 bucks it was a $95 target. they cited more supplies coming to market expected from russia and iran amongst others, so andrew keep an eye on crude. you can see the exxon mobils of

the world, marathon oil, even those etfs all down premarket. we'll send things back over to you. new this morning, swiss bank ubs completing the takeover of its rival credit suisse. it's an historic transaction joining us now sergio ermotti. you were drafted back into service to oversee what has been as i just described an historic transaction in switzerland, but frankly around the globe when you think about banking. put it in perspective for us, and i'm so curious on a personal level before we get into the details about being drafted back s into service and whether you really wanted to do this >> yeah, no, yes, thanks for having me. well, actually, it was a little bit of mix between, you know, loyalty to ubs and to the country, but also i always felt that the next natural step for ubs was to be part of a broader

consolidation. nobody wanted this to happen in this way, but now we are here and so i think it's -- i'm very motivated together with my team to make it a great success over the next couple of years >> what does this combination look like to you, and how do you now think about this bank on a relative basis to, frankly, the u.s. banks and other european banks as well? >> well, look, you know, of course there are complications that we have been competing fiercely for 150 years now we are altogether one team this willallow us to compete better, to serve our clients better and in a sense from our standpoint of view, we don't look at u.s. competitors versus european competitors or asian competitors but rather what we do, how we do it we are in terms of size number 21 in the world. but we are the only bank with this kind of magnitude and size

and scope that is focused on wealth management. and this is our characteristic through the combination we will be able to serve clients across the globe in latin america, u.s. we are very present already, but also very complementary in europe and asia. >> there's a lot been written about the culture, the cultures of ubs and credit suisse, and frankly how different they are what have you found? >> look, you know, i think that at the end of the day, you know, the culture is maybe different but i do think there are many, many elements that makes us closer than people think, you know, of course we all had our ups and downs over these 150 years. i think i'm pretty convinced that our new colleagues at -- from cs will embrace the way we operate and found it at the end of the day very similar. of course we kneneed to make su

that we don't fall back into any bad habits or do things the wrong way, but i think that in that sense we have very clear view on how to manage the integration. is ubs-led integration we're going to use our process, and i'm convinced that like we did at ubs, we will be able to restore confidence and proud of people to work for the combined organizations. >> there's been some concern about some of the talent fleeing, as you know, in the banking business, as they say the talent goes up and down the elevators and through the door every single day what do you have to do to keep those who may be anxious or on the fence about where this is all headed >> well, first of all, of course we are always sorry to see maybe talented people leaving. in other cases people were anticipating probably the inevitable restructuring that we will need to go through and decided to do. what we are explaining is our equity story and what it stands

for, medium to long-term it's fair to say that many people, the vast majority do understand that we're going to be a better place to work, a better place to serve our clients, and, in fact, you saw that recently we were even able to attract talents from the outside after the announcement, which is a confirmation that's, you know, what we have on the table here is likely to offer a unique opportunities again for careers and for people to grow >> the financial times has a story this morning about what they're calling a red line that you have created or that the firm has created around certain country, certain types of clients that you don't want to do business with that in truth credit credit suisse used to do business with. how have you developed that red line, can you speak to that? >> we have developed that red line which i wouldn't really call it red line over the course

of the years this is simply what i mentioned before we are introducing our processes, our operating model into credit suisse, and it's not meant to be discriminatory or any other things than what it is we are just basically introducing our operating model. >> question about the transaction itself, when the deal happened, as you know, equity shareholders did not get wiped out, and some of the bond owners actually did benefit or at least not get wiped out themselves in a different way, and there's still a big debate about how that all went down what do you think about the outcome of it? >> look, i wasn't present during the weekend. the decision to wipe out the $81 billion was taken by the authority that supervises the banking system in switzerland. it's not our decision. i think that, you know, my

understanding is that this has been done following what is written in the contracts of the bonds. so i think it's something that i can't really comment beyond that >> and then finally, there's a big debate in the united states about frankly whether the banking system is broken, whether it needs to have more consolidation given just how many banks there are and, frankly, how much money can flee and how quickly money can flee in a way that it couldn't, as you know, even five or ten years ago in an analog world, now that we're in a digital world how do you think about that? >> well, look, here are the issues that first of all, it's a confirmation that regulation in modern banking has to be applied across all the segments of the bank it's very difficult to isolate segments of the banking industry from certain elements of

regulation, for example, liquidity management and so on and so forth so that's lesson number one. the second, which i hope and i believe will be the postmortem of this story is that there has to be a way to make the balance sheet of the banks a little bit more liquid, if necessary, to central banks without having a stigma this will definitely help sound banks, well-managed banks with good assets on the balance sheet to avoid any contagion from any financial crisis again, a mix of maybe being more coherent in implementing regulation across the board and also taking in consideration the changes you mentioned in modern -- in modern society and in the financial system. >> it's a longer conversation. i hope we can do it in person, i'd love to get your thoughts on so many different things we do have breaking news that's just out now from one of your

big competitors. i'm going to send it over to joe, thank you, sergio. >> yep thanks, andrew news just out from jpmorgan, the company says it's reached an agreement in principle with jane doe to settle the class action lawsuit related to jeffrey epstein's crimes the settlement is subject to court approval still, and litigation is still pending between the u.s. virgin islands and jpmorgan as is jpmorgan's claims against former executive jess stastaley. >> it's probably worth pointing out that on friday lawyers for the victim actually filed papers in court to try and have a second round of depositions including jay mie dimon and oth jpmorgan employees they want to have another run at it they said the bank was slow walking the release of documents including some 2019 internal investigation as to what happened, that those documents weren't given to the plaintiffs'

lawyers until after the last depositions. that could have added a bit of fuel in terms of why you see a settlement here. >> you wonder about the dollar figure, and then you think about jpmorgan and, you know, you have to consider that, obviously. probably not a lot of money. >> right. >> compared to jpmorgan what it's capable of. >> it's taking up a lot of headline attention ask a lot of time from their top executives, and that's probably part of it too. up next, another big news story this morning breaking in the last hour, nasdaq making a deal for a fintech firm, nasdaq ceo adena friedman will join us next somehow we were able to get her to come righin ot tour facility here she's our landlord we'll be right back. rude. who are you? i'm an investor in a fund that helps advance innovative sports tech like this smart fitness mirror. i'm also mr. leg day...1989!

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$10.5 billion in cash and stock. joining us with more on the deal, nasdaq chair and ceo adena friedman how many -- when we talk, we talk about how many different things that the nasdaq -- there's like five different areas you're in. this is the fastest growing one. you've been building up, and this will immediately vault that to a much higher -- higher margins? >> yeah. >> faster growing. >> it's an exceptional business, and it's addressing the bank's biggest problems, right? so we've been talking about antifinancial crime as a major area of opportunity for us, but it's also really partnered with the banks to solve their biggest challenges there now with regulatory compliance and risk management, those are the other two challenges that banks face on a continuous basis, and with a very, very large addressable market for us. about 16 billion but for them, they've been increasing their spend on regulatory compliance by about $50 billion a year across the

system since 2010, so our view is that we're here to help them try to do it much more eff effectively, efficiently, and we can bring all of our technology capabilities together to help the banks and partner with them to solve their biggest problems. >> it adds -- i look at some of these numbers, and i understand it will take organic revenue growth in the solutions business to 8 to 11 from 7 to 10. that's good, but it sounds like that's only a percentage point, adjusted ebitda margins for 55 to 57%, but then what i noticed was for sam, really it goes up 40%. >> yeah. >> and you like that business, and it's a high margin business. >> yeah, so when we look at all of our solutions businesses, what's the addressable market that we're addressing with our solutions, and this will increase our serviceable addressable market by about 40%, and the business itself is growing 15%.

it has 80% annualized recurring revenue, which obviously means they've got very high quality revenue, stable revenue that's growing. it also has a very nice margin profile, and all of those things combined make this a really exceptional business that's really there to solve big problems for the banks and be a great partner to them. >> it's like half stock and half cash approximately >> it's in that range, yeah. i think that when we looked at it, we actually approached bravo to seae if they would be interested in partnering with us on this deal they're only a couple of years into their investment thesis they're excited to become a strategic shareholder in nasdaq, and we're going to continue to provide them value while we provide our shareholders value as we integrate the asset. >> 590 million in 2023 revenue. >> that's right, and it's growing 15%. >> but it's growing 15%, but that's still -- what is that price to sale on 10.5 billion.

>> when we look at it, we look at it more on the ebitda multiple but also on what we can do on the asset. >> what's the ebitda multiple? >> at close it will be just over 30 times as we look at the 15% growth rate and the synergies, they're going to be able to integrate that, deliver about $80 million of net expense synergies and about 50 to $100 million of revenue synergies against a very, very high margin profile they're going to bring about $300 million of cash flow into the business, and we're really excited about how we can then cross sell our solutions, be more efficient in our operating model to serve our clients and make it so that we can scale the business even further. >> they had a couple of brands, calypso and the other one. to put those together with the nasdaq is better for thoma bravo in what way? >> well, the fact is they're very excited about adenza as a stand-alone business

they do have calypso and axiom xl are the two products. when they think about how we can complement that with our antifinancial crimes solutions and with our trading clearing risk management solutions that ser serves the financial markets themselves, we see an opportunity to bring more capabilities to each of our clients, deepen the relationships, all of our solutions are modern and mo modular. we can grow as our clients' needs grow the regulatory landscape is changing all the time. risk management is a very significant issue that all the banks are facing so we actually think we're leaning into very significant trends across antifinancial crime and regulatory compliance. >> who are the big competitors of this business >> you knows they have some competitors out in the world they're global, and what they tend to do is they've been very, very strong in europe and in north america just as we are i think there's more competition in asia, so they have a couple of scaled competitors, whether it's i think murex is one of the

examples, but they are the best in breed, best in class, and they've been very good at penetrating the clientele across the world. >> did you get to think about whether this passes regulatory muster >> well, all of the services that they offer are complementary to what we do, so we're seeing it as a way -- >> even with lina khan >> we've looked very, very closely with how we're going to be able to address our clients' problems, and we're really kind of continuing a horizontal capability to continue to manage more of the bank's problems as one partner, but we also see that there is definitely competition across the board we don't see a lot of intersecting products. it's really complementary products, ability to cross sell and continue to grow and expand, both our antifinancial crime solutions with the banks and now our regulatory compliance and risk management solutions. >> the shares of nasdaq off by about 7.5% this morning. why do you think that is is it because, look, if you're looking at the components of the

share component of this, it's about 14.9% of the nasdaq's outstanding shares do you think it's because of the loans or do you think the street just doesn't get it? >> we're really excited to talk about it with our investors later this morning, and make sure that they understand the complete -- the complete benefits that we see as we bring the company into nasdaq. i think that they're going to recognize it is truly an exceptional asset, whether, you know, in terms of the revenue growth, the quality of the revenue, the earnings of the company as well as what we can do together. and i think that they're going to come together and realize this is a great opportunity for nasdaq to increase our growth rate, to increase our recurring revenues, we're going to go from 56 to 60% annualized recurring revenues our solutions businesses will go from 71 to 77 and we'll have an ability to continue to increase our ebitda because their margin profile is as good or even better than ours today so as we chachieve synergies wer going to continue to increase our ebitda margins as well. >> what was your biggest dollar

acquisition to date before this? >> the biggest acquisition we've done prior to this was omx back in 2008. >> how much was that >> we were -- nasdaq spent about $4 billion on that. >> it's 28 billion your market cap. this is 10.5 this is like -- >> this is a really exciting, and i think that it's a part of our -- it really is part of our transformation to be a scale technology provider to the broader financial system we have a vision to be the trusted fabric to the world's financial system, and this obviously really helps us achieve that because it really is addressing the biggest problems that banks have in addition to antifinancial crime. >> you're not over paying? >> and we feel very strongly that we are paying an appropriate price for an exceptional asset. >> all right, this interview might have -- maybe the stock will recover now because you've been so effective in describing it. >> thank you >> you're welcome, adena buying

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netflix's sweeping measures to curb password sharing are showing promising results and turning free loaders into paying customers in the united states, according to early data. joining us is rich greenfield, lightshed partners that's a little harsh, isn't it, rich i mean, i guess they're free loaders, but this has been a

while. it's been difficult to try to figure out for the company this is going to do it >> well, you know, you sort of remember back in the days, i remember richard flefler teasing netflix about sharing passwords back in the day. for a long time netflix was okay with sharing passwords because you had such incredible organic growth, but when you get up well north of 200 million subscribers and you still have 100 million people that are accessing accounts that don't live in the same household as the person who has the account, that you sort of need to crack down. i mean, look, netflix did two things last year, made two big changes because they had a fine growth they launched advertising, right? that was something they had pure religion against and they gave that up, that seems to be working out quite well they announced they were going to start cracking down on passwords. we've seen that start to roll out over the course of the last six months

the big push was in the u.s. just a few weeks ago i think, joe, the one really important thing to keep in mind is netflix has learned a lot the early password sharing crackdown, places like canada, spain, latin america, you saw a lot of noise because of the way they were doing it they made some real fundamental changes to how the rollout works, and those changes have led to a far more muted response, and i think that's why the stock is rallying so hard over the course of the last four or five weeks is increased confidence that the password sharing rollout not only is happening but is actually working far better and faster than it did in other markets. >> 160, rich, right there in the last year, and i knew it i knew it. couldn't do anything about it, but 160 to 421 i guess we should have known at that point did you mortgage your house and buy netflix at that point? >> no, but i think we've said on

cnbc multiple times, we continued to believe this was the winner there's another part of this story we're not talking about that you know well, which is there was this extreme push by all of the peer group, whether it's your parent company with peacock, whether it was disney and disney plus, hulu, et cetera, paramount plus, everybody jumped into the streaming wars, and everybody was willing to lose billions of dollars chasing subscribers with no real focus on profits now that all of netflix's peer group is really focusing on profits, it's really allowing netflix to further differentiate. they just have far more content. they have a bigger marketing push everyone else getting out or not getting out but certainly scaling back their endeavors warner brothers discovery, he has a focus on profit, improving the balance sheet. he is not trying to kill netflix the way the prior team was that tremendous change is actually a nice tailwind that netflix is back, and i think you're going to see more

i don't think peacock can keep losing $3 billion a year, i don't think paramount plus can keep losing $2 billion a year. you're going to see all of these companies focus more on profits and as they do, i actually think that's a nice tailwind on top of password sharing in advertising for netflix. >> things move, life moves pretty fast, you got to -- better not blink or you could miss it. i was watching, you mentioned zaslov, i'm thinking about logan roy who said we're bleeding out from losing advertising, cord cutting's continuing we got to get into streaming we got to do this. i'm like yelling at the tv set no, no, that was only last year when he decided -- >> well, remember, joe, remember advertising. so netflix a year ago did advertising because it was seen as like they got -- we got to do something to get growth back above 10%, and so it was are

very defensive when they first launched advertising we wrote a whole piece on this a couple of weeks ago. what's really interesting, netflix is moving from defense to offense when they think about advertising because now they're actually going in. this is the heart of the up front and they're going in saying we want your ad dollars too, so the cord cutting that you just mentioned was the beginning problem, right you're losing subscribers. now you're going to start losing your ad dollars to netflix, and it's still -- it's very early. it's a small business, but it's growing very rapidly, and you know, co-ceo greg peters has really spearheaded their push into advertising i would keep an eye on how offense the advertising is as they offer advertisers a more compelling way to reach consumers in 2023 and beyond than what they can do on linear tv and that's sort of the double whammy for linear tv that's going to make life that much more difficult and i think really help netflix stock over the course of the next 12 to 18 months as they go on the offense versus being on their heels and

playing defense. >> right, rich, okay, thanks a quick turn around, appreciate it becky. still to come this morning, former fed vice chair roger ferguson will join us ahead of the central bank's policy meeting this week. we'll be right back. also, some cancer patients facing a shortage in chemotherapy drugs, former fda commissioner dr. scott gottlieb for the latest on that right after this (sirens) [due at target in 5!] copy that. make a hard left down the alley. network's got you covered. [please confirm requesting back-up.] -changing route. -go. roadblock ahead. ...back up, back up... reverse! reverse! next level moments, we're 30 seconds out.

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news out from jpmorgan, the company says that it has reached an agreement in principle with jane doe to settle the class action lawsuit related to jeffrey epstein's crimes the settlement is subject to court approval, and litigation is still pending between the u.s. virgin islands and jpmorgan as is the bank's claims against former executive jess staley we will have more details on this coming up at the top of the 8:00 a.m. hour. meantime, becky, we've got a big week ahead for the fed and the economy. we want to get straight over to our senior economics reporter, the professor steve liesman joins us now with a preview of all that is to come, steve

>> big week, big week, andrew. by thursday investors are going to have new information on inflation, the consumer, the fed, and the job market that's going to set expectations for the months ahead here is what wall street forecasters think is going to happen here, tuesday the cpi comes in 4% is the headline forecast, and that's down nicely and sharply from the prior month at 4.9, but the core you can see remains high and is expected to come down much less just 5.3, looking closely at that core services, which is what powell's watching. on wednesday you get the ppi also, but also the fed meeting with a skip expected and maybe a hint of a hike people are talking about a hawkish skip or a hawkish pause, and i put jobless claims on there, usually not a huge one but given the surge we had last week, we'll be watching it closely. 248 is the number, expect it to come down. retail sales down a tenth of a point from a healthy prior month, but a bit better if you

take out the auto sector, markets have embraced the skip and hike sequence with a 71% probability of a pause this meeting and a 68% probability of a hike in july the good news, at least for now, july is the last rate hike that's priced in the bad news, there are no longer any rate cuts priced in this year. we'll be watching the new fed forecast this week to see if they follow through on the expected increase in their year end funds rate more on that tomorrow on the cnbc fed survey. on the consumer an extraordinary note from bank of america that i read over the weekend. it comes from the consumer use of their own credit cards. listen to this here, we see few signs of consumer strain and lower income households continue to outperform higher income households in spending growth. importantly, lower and middle income consumers aren't relying more on credit cards either. strange, the fed will be pausing to see what impact its rate hikes have had, but it's going to be hard to stay on pause if

the consumer keeps on keeping on and showing that kind of strength, guys andrew >> you know, that statistic or just that line in that report almost goes against everything we've been talking about. >> that's why i put it up there. >> are they in a different place? i mean, we've talked to so many leaders of banks around the country who said, look, we're worried actually about some of the folks who are using credit cards, especially at the lower end. that's at least what i thought was the prevailing view but maybe not? >> that's what i thought that's why that -- you know, first of all, it's good data it's high frequency data it's bank of america i think it does cut across the country -- >> hey, steve, we actually had them on the show friday to talk about it, the bank of america institute, had them on the show to talk about just that. it's been really interesting to see. we have them on pretty frequently when they come out with these things, and overall i think it's going to be hard for the fed to ignore, although she made the point, the head of the institute made the point that,

look, if you look down, especially on the lower end, younger generations, they are feeling the pinch because so much more of their money is going towards housing and rent that it's taken up a bigger chunk of theirs versus baby boomers and i think what they called them traditionalists which are older than baby boomers. the younger generations when you're moving more frequently, you get caught up in those increases in the housing market like older generations don't >> yeah, for sure that's an issue, and also there's the delinquency issues that we get in the new york fed data, we have some consumer expectations data coming from the fed today we'll see what's happened there, but the idea that there isn't this stress at the lower end that everybody thinks. of course you have larry summers this morning again saying that the economy is hot i don't know where this recession is, and that's why that jobless claims number last thursday was so big. some people are saying it was a result of seasonal adjustments for the memorial day holiday

you know, becky, it's a curious economy, one that everybody thinks is going down at some point in time. we keep waiting for it i guess we could call it the gadot recession. >> watching the trends on where it's going, it seems like it's starting to hit different places, does make it more complicated. >> yeah, the answer is to listen to roger ferguson after me that's the answer. >> steve, thank you. in fact, we do want to bring in roger ferguson, he is the former vice chairman of the federal reserve, the former ceo of tiaa and a cnbc contributor and roger, you have been incredibly right in terms of what the fed will do you've kind of telegraphed that all along the way. they've been doing what you've been telling us they would, so what do you think happens this time around? >> well, look, i think the market has priced in a pause i agree with that. i think the last time i was on or before i mentioned the concept of a hawkish pause i heard steve mention that as well

i think where i disagree with the market is i see not one but the possibility of two more hikes after this one with no reversal that is year. so i think the market's generally directionally correct but a little optimistic that the fed may be done sooner than the data would allow. >> why do you think that >> because i see a great deal of forward momentum you just talked about the bank of america study i know that there's a question about the strength of the consumer, but recognize it's against the backdrop of a really tight labor market wages are still rising in many sectors, and so -- and inflation is still, you know, certainly hot, hotter than the fed would like so i think the big picture, while there's a great deal of concern about movements here and there, is one of forward momentum, consumers that are doing well, and indeed inflation is too high, and i think the fed's probably going to have to move twice more before they feel totally comfortable that they've gotten this one under control. >> roger, we have kevin warsh

joining us later this morning, he's got a new op-ed in "the wall street journal," and the thrust of it is a little concerning he thinks that even though we seem to think we've gotten the all clear when it comes to the banking sector, there are a lot of issues at play that could really damage the banks and push us into much bigger problems part of what he talked about is if the fed goes to 6%, also talked about commercial real estate, the problems that could pop up he painted it back and reminded everybody of what happened in 2008 when you had bear stearns that went bust in march of 2008, and everybody thought that was a one-off, but then come the fall of 2008, that's when everything else kind of fell and collapsed. he thinks the fed needs to take some -- the government needs to take some regulatory policy changes that would allow banks to consolidate and that would allow banks to recapitalize because he worries that more problems could pop up. are you someone who shares that

concern? >> i'm certainly someone who shares a concern that the all clear in the banking system is premature. i agree with that. i think there are banks that are going to need to have more capital for sure we've seen them move very slowly but the flip side of the fed having to raise more is that it increases pressure in the sector, so i think it's important to call that out it is part of the risk management challenge that the fed is currently confronting having said all of that, the process in the banking system has unfolded relatively slowly, after, you know, three big bank failures i'm not ignoring them whatsoever, but we've seen things seem to stabilize but i agree with kevin too early to say that risk is no longer on the table. it's one of the risks the fed's going to have to balance as they look at this pause and think through where exactly they are. >> if you are calling for an additional two rate hikes after this, you must think inflation is a bigger risk than bank failures >> i think that's what the fed

likely thinks. there will be other tools to focus in on the bank failure world, and obviously that cuts across not just the fed but also the treasury, potentially the fdic, and i think the fed believes that it has opportunities to do both things simultaneously they may be a little off a bit in thinking that monetary policy is separate from financial stability policy, but i think they're going to keep their eye on inflation first and look for other tools to deal with financial stability. >> roger, thank you, roger ferguson >> thank you coming up, microsoft showing off its new video game starfield. its first game in decades, and it's expected it says here, to be out of this world wel rhtac'lbeig bk. ting. no artificials. or these toys that get my mind right. ♪ or maybe it's petco, keeping me healthy for less money.

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behind sony. this is starfield, it comes out of bethesda, which is a game studio that was part of a $7.5 billion acquisition by microsoft. starfield's an open role playing game set in outer space. it lets you do whatever you want, even spend hours customizing your avatar if you don't care about shooting aliens and things like that microsoft calling it its biggest game ever. this is also an exclusive for microsoft platforms, one of the complaints rivals like sony made to regulators in the uk over the activision deal fears microsoft would do the same thing for activision's call of duty. microsoft has cut deals with companies like nintendo to prove it's not going to do that. the deal might not matter now because of the problems with the acquisition, and microsoft needs starfield to be a hit. it's coming out september 6th, guys >> steve, how quickly would you know if this works i maean is this one of these things that will either attract, you know, players like wildfire?

is this something by, you know, you said september 6th, is this by october we know this is a winner or not? is it like the movies? what is it >> it's exactly like a movie that's the interesting thing about video games, even if a game is technically amazing, if it's not a hit, if it's not entertaining, no one's going to play it. i would look at xbox game pass subscription, this is designed not only to sell on an individual basis but also get people signing up for their streaming service as well. so many of the games microsoft showed off yesterday was part hof that game pass thing you can see them making a push >> the sorkin family has a game pass as an app >> there you go, you're going to be playing starfield. >> we do some of that streaming occasionally thanks so much becky, over to you. thanks, andrew when we come back, former fda commissioner dr. scott gottlieb on cancer treatment drug shortages in america, why it's happening. and in the next hour, former

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we've seen companies get out of this space and they were cutting genera generics out of their pipeline so you've seen companies get out. the average manufacturer loses money in about 50% of their portfolio. a lot of these are money losing drugs. it's fine when it comes to pills again but when it comes to the injectable drugs, we're going to have to find a way to pay more.

intro the generic companies taking price increases to offset the cost and it lowers the cost of the drugs. you're going to see more are going to be price controlled now. >> at this point, scott, are we making any headway, in targeted therapeutics what's the percentage of chemo has it declined at all it would be nice to have -- it's kind of a blunt force tool it's the best you can do it works in a phase, and hopefully it gets cancer cells but it also hurts normal cells as well. that's why you get so sick >> yeah, look, you see a lot of

the targeted drugs being used for secondary prevention and also for long-term maintenance in patients who have been diagnosed with cancer. the reality is these chemo therapeutics are still the back bone of a lot of front line regimens, even though this also includes targeted therapies. these platinum based drugs, the ones that are in shortage, are still the back bones of many important regimens in is a cyclical problem two years now we'll be talking about iv morphine and antibiotics. this is 20 years i've been around the fda, we haven't solved it, it's gotten worse overtime it's a structural problem and we haven't done what we need to do to solve it. >> and the government responding to cost measures in many cases makes it worse >> many drugs are priced too

high but they are also drugs priced too low, especially this sterile generic drugs. >> it's the fact of the matter all right, dr. scott gottlieb, thank you. >> joe, coming up, we're going to get back to the big news stories of the morning jpmorga jpmorgan settling one of its cases related to jeffrey epstein. and a potential skip month for rate hikes kevin warsh will be our guest. he has some pretty provocative thoughts about it when we return can they help us improve our digital experience? absolutely. they've invested over $2 billion in tech. that could really help us manage inventory. and save us a ton of dough. then let's take back our market share.

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welcome back to "squawk box" on cnbc. a lot going on this morning. take a look at the futures that we got going on. it is going to be a big week the fed deciding on everything that needs to happen is there going to be a pause or not? we're going to talk to kevin warsh all about it and we'll tell you what the ceo of credit suisse has to say. angd the first a.i. race now in full swing are voters ready to handle the misinformation we'll ask an expert as the final hour of "squawk box" begins right now.

good morning welcome back to "squawk box" here on cnbc i'm joe kernen along with becky quick and andrew ross sorkin we have the dow joining in we've got green across the board. s&p maintaining its recent 20% upward move into bull market territory. so far the market has surprised a lot of skeptics. a lot happening this week in terms of the kcpi and whacky fed meeting for another couple of days, they're going to talk all day long about probably skipping and then we'll see what the commentary afterwards brings and we'll have some commentary from a guy who probably his a pretty

strident fed critic. kevin warsh will be on >> ubs formerly completing its takeover of long-time rival credit suisse. the company will have a balance sheet worth $1.6 trillion, a workforce of 120,000 people. we spoke with the newly returning ceo about the two banks coming together. the culture is maybe different but i don't think that there are many, many elements that makes us closer than people think. we had our ups and downs over the years. i'm pretty convinced that our new colleagues at cs will find

it at the end of the day very similar. >> and credit suisse will see its share delisted from the swiss exchange and the new york stock exchange over to you, becky >> jpmorgan says that it has reached an agreement to settle one law related to late disgraced financier jeffrey epstein. eamon, what do you know? >> we don't have any information right now on the settlement amount here. and they've been ratcheting up pressure as they return for additional depositions in the lawsuit. seems like jpmorgan wanted to clear the decks of this case documents sholdwed an embarrassingly close relationship with jeffrey

epstein. as a benchmark, we know that deutsche bank settled a related case, a similar set of facts for about $75 million back in may. this one could have been north of that. we'll have to wait and see if we can report out the number here in a statement jpmorgan said, quote, the parties believe this settlement is in the best interests of all parties, especially the survivors who were the victims of epstein's terrible abuse a spokesman for the u.s. virgin islands says it will continue to proceed with its enforcement action to ensure full accountability for jpmorgan's violations of law and prevent the bank from assisting and profiting from human trafficking in the future. the -- when i was asked jamie

dimon if he was going to settle this case, he responded curtly he wasn't going to talk about it in the moment. just as an addendum here, just within the past hour or so, the usvi side filed a new series of exhibits in the case, a whole bunch of internal jpmorgan emails which they say show more concerns were raised about jeffrey epstein than has been known publicly inside the bank so this case ongoing >> if that's the case, if ratcheting this up, you would think if you end up settling, you would end up settling all the cases to make it go away >> right i think jpmorgan is in a position where they're going to have to settle across the board. the devil is in the details here and the question is what is that

number usvi is firing a shot across the bow saying we've got more ammunition here, more to reveal about what happened here that could be -- cynically you look at it and say that's part of the negotiation >> thank you >> let's get back to the broader markets and get over to mike san tolly. he says he's firing up the bull detector i'm not sure what that means, a bull market or the b.s. detector, mike >> i trust our audience to figure out there's a double meaning there. the bull market detector was giving a reading up 20% from the s&p that a new bull market was declared, at least on some front. i would ask what that actually manse. you can only make these definitions somewhat with a lag or retrospect. look at how the s&p shapes up over the last year and relative to its 50 day and 200 day average. if it's a bull market now, it became one at the very end of marsh the s&p moved above the 50

and 200 day moving averages and those averages are kind of sloping higher you see this right here, that shows you where we crossed into that zone where you have a somewhat new up trend. as it often happens here, as people get a little bit more interested in the markets, give the market the benefit of a doubt, say a new bull market is under way, it's a little overbought, it's getting a little stretched, the top five stocks doing a lot of the work probably should pull back. we have cpi in the fed this week if we great reset lower, it will prove whether it's durable and here we have a broader measure of the equity market it's been a chief complaint if it's a new bull market, it's been an underachieving one and that index has not actually registered quite as much

strength you still have more of an in between zone i would call it here but you can see, it's kind of more equally between the recent highs and lows on the russell 1000 we've had a broadening out of the rally. look at the t-bill yield it's back to the highs before svb went down, which means we're pricing in at least higher for longer on the fed over the span of the next year, that's about where they think fed funds roughly speaking is going to end up that's higher than where we are in terms of the average. it shows you the market can handle the incremental hawkishness of the fed but i think the big picture, joe, is the bulls have won back, the optimists have gotten a little bit more of the benefit of the doubt if your argument is the october low is going to hold, that's more than 16% down from here so what does that actually tell us?

>> another time, another stupid expression that means nothing and it never works >> it's always been kind of slippery all it's meant is the better returns have happened between october and may rather than the rest of the year i don't think we want do like these simplistic rules that rhyme. >> no. just the super bowl. >> there is something that says we are getting a little bit less seasonable help going into let's say july but we'll see how that goes >> the only one that always works is that super bowl one >> there you go. >> that's exactly what i was going to say to you. at least we know we can trust the super bowl indicator, if you can remember what team was in which league >> i don't think anything works except everybody's always wrong. >> or a coin flip. >> even in sports betting, i'm telling you, it goes all the way back to villanova -- who was it?

villanova? no, villanova versus georgetown i think, right was that it? villanova? >> money knows money knows. >> money does know >> it does the federal reserve's next meeting starts tomorrow. much of wall street expecting a pause in interest rate increases but some still think a hike is on the table joining us to talk about that and much more is kevin warsh, he's a hoover institution visiting fellow. his latest op-ed talks about the fallout from the silicon valley bank collapse and says without a change in policy, the u.s. banks could face a slowdown and need even more government support thank you for coming in and taking the time to talk with us today. i want to start with your op-ed and then we'll get to the fed. what i took out of this is look out, you thought we were done with the problems in the banking sector you could be completely wrong. you want to lay out the risks we're still facing and what worries you about it >> sure, becky

thanks very much for being here and having me with you i might be too scarred by the 2008 financial crisis. i don't mean to suggest that we're on the front end of what we all experienced back then but this is a time where markets are giving the fed a free look the markets have been benign since the crises of five and eight weeks ago and my sense today is they should do what we should have done during this period of calm on this day in 2008 and buy some insurance. the way i look at things we aren't in a -- we are unlikely to be in some durable, strong economy where we should be certain of the future. we should buy some insurance there should be some risk management in the event things don't go well, we should use this moment to protect ourselves and protect the banking system and so what i outline in the op-ed is simply to suggest that the market structure of banking with a few very large institutions at the top and 4,000 institutions below them

struggling to figure out how to have profitable business models, this is not a great environment and the fed should do a couple of things to try to strengthen the banking system so on the other side of this, we've got credit that can go to small and medium-size businesses and they don't have to go to extraordinary lengths if bad things happen. >> let's just lay out the list of risks that you tick off just the idea that you're going to see deposit costs set to increase i think you said it would siphon off and it can all add up to big problems and rough waters ahead. >> you said it better than i can. >> i just took it out of your piece. >> there's a normal lag between the time that interest rates go

up and we see that in funding costs, we see that in deposit rates. especially when during crises consumes are say i'm uncomfortable with my local bank, i better bring my deposits to one of the too big to fail institutions that might be charging only 30 or 40 basis points for the right to put cash there. i think there's a lag and i think almost all businesses and household are going to be looking for higher yields. about 70% of all deposits today, becky are noninterest bearing. i don't think that's going to last for much longer the banking business is going to be subject to greater risks, it's going to be harder to make money. profitability could eat into capital. over the last five weeks, banking stocks are doing well, lending seems to be hanging in there and my instinct is the fed should use this window of opportunity to make sure these other institutions won't just

survive by thrive. so i suggest two things, joe as i came on the set, i said i was a strident critic. i'd like to think the two ideas are quite simple take capital from all comers private equity firms, they want to invest in the business of banking. if we don't let them in the formal banking system, they'll be in the shadow banking system. even if bad things don't happen to the broad financial markets, we need these banks to be on their front food to provide credit and they should allow some consolidation. they let the big banks get bigger and bigger. the small and medium sized banks, becky, they need to be able to compete. let them do mergers and get greater franchise value so they can compete againsts big guys.

market structure is almost everything in every industry that comes on your show and i don't think this market stuktier looks as sustainable as the fed thinks. >> we just had roger ferguson on he thinks the fed is more likely to raise rates at least twice because of these concerns about inflation but he shares your concern that the banking situation, the banking woes are not over and i think it just -- i forgot about bear stearns being the big one that went down in march of 2008 stocks stabilized over the summer, things looked okay it wasn't until the fall of 2008 that things looked much, much worse and we saw the contagion effect do you think the fed shut p should continue to raise rates >> i love roger. he came to me with all these old files and stuck them on my desk and said, kevin, these are your problems now

it's hard for me to judge what the risks are that we have a big banking crisis three, four months for now the fed seems strongly inclined to continue to raise rates the last time that chairman powell threatened to raise rate to 6% was the tuesday before this banking crisis. in testimony the senate banking committee and 48 hours later we were in the soup it wouldn't surprise me if there weren't a couple of dots in these forecasts that my friends at the fed insist on keep publishing in their meeting later this week. so i take those risks seriously. we can buy insurance cheap, which is what the fed can do i'm all for buying it. i share the consensus view and i think it was roger's view that they're going to stand down, not take any policy action this week, but i hope that they do more than that i hope that they decide to be

inprospective. i think it important that all institutions, especially in government learn to live without an audience, learn to leave without -- i want them to be deeply inprospective on bank and interest policy and i want them when they raise rates to get more bang for the buck, to break the back of inflation. i foal look which has pukd them to say that price stability is going to go a lot more and i wonder whether bank instability isn't telling them to be more cautious >> do you think pause is the wrong move if they're going to raise it, do it now, get more bang for your buck >> no, i think they're right to pause now. when these guys are more hawkish than i am.

>> and does inpro specs means you're not going to do anything for a while in. >> no, it's think long get off the hamster wheel. stop running the old contract and see whether you can't come to markets that an inis a clear and present danger to the global economy. you keep showing up with the same dots, the same forecast viewed accidentically, you keep looking at backward moving information. i don't think that's the kind of framework that's going to break the back of inflation. instead of raising rates 525 basis points, you race to raise them 600 we need to change the cadence, the motion, in order that households say this central bank is different, they're going to

break inflation and they've got a chance of achieving something sustainable over the long term >> kevin, thank you from coming in obviously some constructive criticism. >> mostly strident >> thanks, guys. it's an honor to be here >> the inpro expecting back then >> too much back then, maybe not enough now >> kevin, thank you. andrew >> we got a lot more coming up on "squawk box." campaign 2024 is just beginning to heat up we're already graflg about a.i and just in a few minutes we're going to talk about this with u.c. berkeley professor and u.a. expert you're watching "squawk box" and this is cnbc es. i heard about the payroll tax refund that allowed us to keep the people that have been here taking care of us. learn more at getrefunds.com.

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technology company adenza from an equity firm bravo $10.5 billion in cash and stock, roughly half and half. they make software used by brokerages it's expected to bring in $600 million in revenue in 2003 we spoke with the nasdaq ceo in the last hour. >> when we look at all of our solution businesses, what's the market that we're addressing with our slougss in will increase the business and the business has 80% row kuring revenue, which means they have very high-quality revenue, stable revenue that's growing. >> nasdaq says it intends to issue about 14.5% to adenza's

owners it's probably three times as big as any acquisition the nasdaq has done in the past and we know the nasdaq has been diversifying obviously if you live and die with the ipo market or just how hot the stock market is, that's not a business where you can count on -- >> pretty cyclical >> obviously you won't a said they'll be talking with shareholders this morning. >> i asked about 600 in sales on 10.5 billion but then she did the ebitda and it was more reasonable but shareholders at this point are issuing quite a bit of used stock. has it recovered, becky? >> noes that's about where it was when we spoke with her

down 7.95% it doesn't necessarily mean they're joe. it's kind of knee werk sometimes. >> i think a 2 or 3% move, that's an ash trang move think think this is a move where these folks are saying they're overpaying or we don't like the business or a combination. i think there is something unfortunately going on there >> no banking for you, andrew sorkin it's not going to happen >> oh well >> neck. >> i know. it is what if is it's a market check. i don't know if that's a really bad market check or not, andrew. it o could be worse, couldn't it >> i mean, sure. but if the market liked the

deal, i think if the mark liked the deal, you'd see the stock -- yes, can you see a thing where people think it will really help the country and then you take the 2 or 3 credit off. >> i'm not saying it a bad deal. all i'm saying is right now the arket isly youing with the head of company that is listing publicly today "squawk box" will be right back.

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>> we need to be vigilant around a.i. but the dystopian place is if we putt roadblocks in front of a.i >> the suppliers to a.i. companies are going to continue to win i think that can continue for a long time. welcome back to "squawk box. our next guest heads a company that's beginning to trade on the nasdaq today they develop pharmaceuticals to treat substance abuse and mental health disorders ceo mark crossley joins us this morning. in a perfect world a company like yours wouldn't exist. to the public who may not know about your company, what substance abuse issues are you trying to combat >> thanks for having me today, andrew we're a company that was founded to help people suffering from addiction, founded over 20 years ago, focusing primarily on

opioid use distoorder but we ha drugs in the pipeline to help cannabis use and alcohol use and stimulants we read about the opioid epidemic in the press and most people have someone in their familia family or someone in their family has that been affected. and these patients have been left behind and we've been solely focused on helping them find recovery. >> let's talk about the opioid epidemic do you have any view of where we really are and to the extent there are medications, things that you're developing to solve or mitigate this problem, where are we

>> less than 20% of the patients, less than two out of ten people that suffer from opioid use disorder are actually getting treatment. whether it's stigma or lack of awareness, people just aren't getting in for treatment now i think the positive signs of this, it is with to normalize the space, open access and break down barriers. we have funding now to $6 billion and we're hoping over the next five to ten years we'll get more patients into treatment. >> what does it cost on your end for customers or consumers who are going through this right now in terms of dosage, for a dose and how long would you be on this medication as you're trying to to get off of opioids

>> it's a great is there is broad access we have a once monthly medication so of that keeps a constant therapeutic level all day long it changes from the daily dosing we've reduced the choices from 365 choice as year to 12 choices a year to remain in treatment. the good thing is the insurance companies, woo ehave almost 90% of lives covered, which is really, really good for drugs and offer payment assistance vehicles >> what is the cost to the customer and to the insurance company in. >> it's about $1,900 a month for treatment. >> so that's a very expensive cost i mean, it's great for why are company but a big question i think long term in i think the key focusing on this disease

a patient that's in this treatment is saving the company money. they are avoiding relapses have it's and relapsing they know having a partial in trem and had teps those patients find recovery and regain their life >> we got to run but the final question which has to do with canabis dispord. frng and it's obviously being legalized in huge parts of the country. >> absolutely, andrew. as it's become medicalized and legalized, its high thc sort of levels of cannabis, you're talking about smoking, gummies, that are normalizing the disease and we're seeing a higher instance of people districted

related that is come promsing to help those with cannabis use disorder >> do you consider cannabis a gateway drug >> i consider cannabis as a drug that can really cause addiction and start with patients. for my kids, i do not recommend it and we're here creating a product that we think can help people that end up getting addicted to it and having it take over their lives. >> mark, with a lot of different issues and you're confronting a lot of them. >> thank you for the time. look forward to coming back in the future >> when we come back, the impact of artificial intelligence on the race to the white house. we will spack probably call the

first campaign of the a.i. error. and home depot holding an investors conference tomorrow. ahead of that we will bring you an interview the ceo tune in tomorrow at 6:00 eastern time for that. we'll be right back. you ok, man? the internet is telling me a million different ways i should be trading.

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artificial intelligence is now part of electoral politics ron desantis's campaign released a web video featuring fake a.i.

images of donald trump hugging d dr. anthony fauci. the fake images were placed next to three real pictures of trump and fauci. this might be the most reported use of a.i. in political ads so far. stay tuned it's not the first time it happened either. the republican national committee used dystopian a.i. imagery. trump put up a video mocking desantis's campaign launch using voices that sounded like desantis and elon musk and fake photos of trump being arrested have gone viral. joining us to talk about this, professor of digital forensics, misinformation and human perception at the university of california berkeley. we've seen this movie before, i

think, professor how does a.i. change it in terms of disinformation? it just makes it easier or more realistic? because i've seen things for years that are basically what we're talking about here >> you're absolutely right it's not new that politicians are going to lie to you and to the voters it not new we're going to distort reality but what is new is the democratized access to technology that allows anyone, not just a hollywood studio or state sponsored actor to create images of audio and video are that incredibly realistic. it's the democratization of access but also the existence of twitter and instagram and tiktok and distribute that instantaneously to millions around the world in a very targeted way that's a threat to the

misinformation landscape >> what is the answer, professor? i'm ready to give up >> there are days it feels like that, doesn't it, where we can't reason about the world anymore there's just so much garbage out there. there is an effort spearheaded by adobe called the content authenticity initiative to watermark and fingerprint every piece of authentic content so when you record a president saying something, it will be authenticated by your device and verified downstream. and they can also water mark and fingerprint every piece of sin they uk content is he when the pentagon image and desantis images are released into the would. >> there would be some accountability, i think.

if it was against the law and up knew who general even if it was a fine, professor. right now it just just the wild, while it doesn't say what you're allowed to do and not allowed to do it doesn't say you can or can't lie. it says if you're going to be in the business of creating this tom condition flkt we have a mechanism to get in the middle of that and the voters so i think that our members of congress are going to have to start thinking very carefully in this new age of a. inch how they want campaigns and politicians to either weaponize and take advantage of this technology in the interim, we

>> what about where you are see it did we need to assign more responsibility to people, you know, whether it twice twitter are but we're using generated and not liable do we need to change that at some point >> i think we do i at this the until this is over the reason why the pentagon image went viral is because twitter is handing out like candy $8 a month verified accounts and it roobd lube beingically favor and it was retweted has to if you -- not

just the people hosting this, but the ones that are amply fichl we should hold you to account for that >> you saw google or parent company of youtube effectively change their policy around election misinformation from our last election. how do you feel about that heu would change that? i'm surprised they made that decision i thought to myself that i would have thought advertisers would be relatively unhappy about that but maybe not. >> i would say i found it disheartening but not prizing. i thought it was particularly dus prng and, well, there's no problems, i can't foresee any

possible problems. what's frustrating it showed given the desire to do something they absolutely can, now they're choosing you and i think back to the last question, somebody, it but i think al gore ritic imum. >> all right, professor. thank you. we appreciate it work in progress, i guess. >> indeed. >> it is daunting, though. thangss. >> coming up, gentlemen, wedge, and gm choosing the tess chsh big implication, we'll talk about it when we come back or these toys that get my mind right. ♪

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welcome back to "squawk box" this morning tesla can generate as much as $30 billion thanks to deals allowing companies to use their chargers joining us to talk about the impact from these deals. mark is a contributor to cnbc, serves on the boards of hertz. and tesla is now up 11 days in a row. good morning to you, mark. were you surprised about this

outcome? >> well, think initially a bit surprised but it's a really prag pragmatic move by ford and gm. the build out is not keeping pace with ramping up production. the bottom line is what ford and gm get out of this is not just an increased number of chargers but the dependability of them because the current ccs is not so dependable. so it about the consumer experience >> it's a remarkable thing and you have to hand it to elon musk for building this out early and for even opening up in this way. having said that, there's the flip side, which is to say do you believe that ford and gm have effectively made a deal -- not to say that elon musk has a deal with the devil but a deal

with a competitor that competitor, both in terms of economics. you're sending cars there every day potentially, marketing to tesla. what does it do long term? >> well, you well, you know, i the end of the day, when it comes to this, tesla has a unique knack of getting revenue out of their competitors they did it originally when they were selling ev tax credits for the other automakers that weren't meeting their fuel economy requirements, and now they're doing it again with this business that they can build, and andrew, as you know, they've been building this infrastructure out for over ten years now, and so i think the automakers said, listen, this is a shortcut to getting not only selling people an ev, but it's about the ev charging experience, so not only has tesla built it out, it's -- it has high customer satisfaction, and that's important for the

automakers, because, yes, they're giving some money to their competitor, but at the same time, they're thinking about how they're going to, you know, turbo charge their own sales and also about repeat sales the next time a customer who buys an ev comes back into the marketplace. >> obviously, looks like there's huge upside for tesla. having said that, you go on some of these customer forums online, not a lot of happy customers about this particular news they say to themselves, there's already lines in some locations to actually get to an ev charger. now, they're going to be even greater lines. the idea of the exclusivity of it being part of the tesla club. what do you think that means long-term in terms of being able to hold on to some of those customers who may say, oh, well, now i can just go buy a ford or a gm >> i think you're right, andrew. at the end of the day, are you diluting the experience of tesla customers? tesla has to strike the right balance. and listen, they can come up with some pretty, i think, creative things.

for example, you know, do they have charging stations at their locations just for tesla cars versus non-tesla cars? they can do two-tier pricing they can do a lot of things on this >> except that elon you was pretty clear he says that it's -- i listened to that twitter spaces with mary barra and he said, level playing field. he said, we will not be advantaging tesla cars ort tesla owners, so i think that puts him in a tough place to create those special clubs, no? >> it does to a certain extent, but listen, it was vague enough that i think he has some room to be able to create some special experiences for their tesla customers, but it is an issue. but at the end of the day, what tesla has, remember, this is only about 12,000 of their locations are their chargers, and they have over 20 and they're building them out have fast they build out their charging infrastructure much quicker than

the other charge point operators, and so they have the data on where, let's say, the prime locations are of customers, of their customers that are using their charging stations, so i'm sure they're going to use that into your calculus of which charging areas become available to non-tesla owners >> mark, appreciate your time, perspective, as always talk to you soon >> thanks, andrew. coming up, what to watch ahead of the opening bell on wall street, and ahead of tomorrow's fed meeting kickoff stay tuned you're watching "squawk box. ♪♪ at morgan stanley, old school hard work meets bold new thinking. ♪♪ partnering to unlock new ideas, to create new legacies, to transform a company, industry, economy, generation. because grit and vision working in lockstep puts you on the path to your full potential.

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next guest pointing out there's been a lot of volatility in the front of the yield curve because investors have constantly been repricing fed expectations, along with what had happened, the impact of the debt ceiling fight joining us now, director of fixed income at richard bern bernstein advisors they've been repricing it and moving things around because nobody has, in your view, nobody has any idea where things are going. that makes me feel good. >> yeah, it's the clearest thing to me. even in the equity market, look at the valuations on a lot of these companies and how they're swimming around to an outrageous degree clearly, investors don't know how to price the fed, don't know how to price risk, and i think

the volatility that we have seen, particularly in the front end but across the entire treasury curve, highlights that. if you look at the fed funds futures here, what the market expects the fed funds rate to do over the next 6, 12, 18 months, it's constantly going up, going down, going up, no one knows, but one thing i think is definitely clear is that inflation is still a problem growth is slowing. the fed needs to do a lot more work before it ultimately brings down inflation to its target >> you said that's the one thing you seize upon is that one thing we know, it probably will be higher for longer. but i mean, for months, we've pointed out the disconnect between the ten-year and even the two-year and what the fed was saying it was going to do as if the markets had some higher knowledge than the rest of us. now, you're saying, when the gap's narrow and the markets come up to where they should

have been all along, that was all just a head fake the markets just didn't know either so, you really can't -- i just -- you know, then we can't listen or get indications from anywhere >> well, i think the bond market has it probably more right than the equity market does look at the inverted yield curve, and that's a sign right there that the fed's doing its job. that's what the fed tries to do. they hike rates aggressively to slow long-term growth and inflation. that's why you get inverted yield curves, because the front end represents fed policy, and the back end represents growth and inflation. so, you'd expect an inverted yield curve when the fed gets aggressive you don't want to necessarily expect risk assets, whether that be corporate credit on the fixed income side or cyclical equities on the stock market side you wouldn't expect those to do particularly well during this inversion. so, you know, listen, i think it's clear, though, that the fed ultimately needs to bring down growth and inflation, and i

think the bond market probably has it right >> yeah, but the bond market probably has it right. bond market's forecasting -- we thought there were going to be cuts at the end of this year now that's not happening again is it still possible >> it's possible you know, listen, i think it's a pretty binary situation. either you're going to get a lot of cuts, because the unemployment rate spikes, and i think investors really need to recognize that the fed's not going to cut just because inflation comes back down. the fed is only going to cut if growth really rolls over and unemployment spikes. so, to the extent that happens in the back half of the year, then the fed could absolutely be cutting by year-end, but if you look at the resilience of the labor market and the structural labor shortage we have here, i think this is more of a 2024 bid than a 2023 bid. >> what's that "c" stand for is that contopoulos? >> i think it's contopoulos,

yeah >> not big red or anything like that >> nothing like that i got my columbia lion behind me >> could be all those things thank you. we are out of here in about nine seconds we're still holding on to paltry gains. fed meeting starts tomorrow. cpi tomorrow don't miss it. make sure you do join us tomorrow "squawk on the street" is next ♪ good monday morning, everybody, welcome to "squawk on the street." i'm david faber with jim cramer live at post nine of the new york stock exchange. carl has the morning off we get started with another week of trading half hour from now, you can see an up open i never know what to do with these things >> that's why i'm here >> well, you're here for a lot of reasons >> including the fact that it's my job >> including the fact that you get paid to do it. let's get to our road map. it d