profile state dinner at the white house. we take you live to washington. 3m agreed to pay12$. billion for chemicals in water co contamination. ftx is looking to claw back payments authorized by sam bankman-fried to the hollywood insider he described as a one-stop shop as celebrity partnerships it's friday, june 23rd "squawk box" begins right now. good morning welcome to "squawk box" here on cnbc we are live from the nasdaq market site in times square.

i'm becky quick along cwith joe kernen and andrew ross sorkin. we made it to friday so far, things are not looking good s&p futures down 20. nasdaq off 96. this comes after very slight gains for the markets yesterday. the dow closed flat. s&p gained .30%. it was the gainer for the day in the nasdaq the week, all three of the major averages are down. we have a three-day losing streak for the markets heading into yesterday before the gains. you will see treasuries yielding 3.74 on the 10-year treasury crude oil prices which we have not checked on recently. energy is below $70. wti at $68.75. andrew thank you, becky

3m agreeing to pay up to $12.5 billion to settle hundreds of lawsuits now brought by cities that said their drinking water was contaminated with what they are calling forever chemicals made by the company for decades. it will cover public water systems across the united states that cities say was contaminated in the firefighting home similar settlements by dupont this month it is a big number 3m says this is not an admission of liability and if it is not approved by the court, the company is prepared to defend itself in legislation. the stock is moving higher on the back of with hat would seemk bad news is good news. becky. >> a lot of concerns that this could force them into bankruptcy they are finding a settlement is why you see a little bit of relief in the stock.

>> lawyers all over the country. lawyers all over the country are celebrating. that will be the next mess owe thre -- mesothelioma >> being a banker is like being a lawyer today i don't know you know i'm a family of lawyers. we like lawyerlawyers. >> you could be a lawyer/banker? there are a lot of them around >> that's what the article was keying off of. lawyer to banker to lawyer again. >> the good old days when you do an ipo and be an analyst that's when the bankers really

made a lot of money. $5 million a year. now that's why new york is dying. you can't live on it >> you can't get out of bed for that kind of money >> what about this how far back i cannot turn on the tv without seeing camp lejeune or mesothelioma is this turning into that? >> how many places use these things >> it is not just people who live on a military base. this is anybody drinking water in the area? >> that's what they say. i don't know you can only hope it is not the case >> right okay wondering. let's fill you in on another story this morning microsoft kicked off five days of court hearings on the activision purchase. if a federal judge grants

injunction to delay the deal closing, it could abandon the deal microsoft's lawyer said this court hearing will decide whether the deal goes forward. a loss could force the company into a three-year administrative night mmare to sink the transaction. in the coming days, the court is expected to hear testimony from microsoft's chief and prerecorded video from the ceo of sony. and at the top, we said narendra modi met with president biden at the white house house state dinner last night. he will meet with other tech executives this morning. we have seema mody with more >> reporter: the state dinner at the white house featuring walmart ceo and apple ceo and

g google's ceo as well guests were treated to the vegetarian forward meal. the speech reiterated the strength of the u.s./indian relationship >> toast to our partnership and our people and possibilities that lie ahead two great friends and two great nations and two great powers >> reporter: those comments come as both india and the united states face pressure from china. biden and modi used the meetings to focus on the defense and economic interests while also side stepping issues tied to the modi handling of h human rights and continued pressure of purchaseing russian oil. modi will discuss a road map on how to shift production from

china to india some attending the round table tells cnbc, we can take a step in the right direction by aligning efforts to streamline the technology and rules with the countries. we are in a digital cold war with china this approach will foster an atmosphere of increased cooperation. the meeting, guys, i'm told begins at 10:30 a.m. eastern joe. >> seema, are you aware of substantive agreements that have been done between the president president? >> reporter: yeah. >> i hear trade and equities with india i hear progress made in areas. even agriculture >> reporter: that's a great point. on trade, we have not seen

progress india has high tariffs in companies doing business there from the corporate lens, there is a flurry of deals with the ge deal and india buying high grade drones from a u.s. private company and the semiconductor space with micron and the significant investment in india as they look for ways to diversify away from china. those are among the top deals announced so far >> good. seema mody what was on the menu, seema? do you know how many courses did you see a menu >> reporter: i was reading three or four courses. a vegetarian forward meal. modi is a vegetarian there is a new grain called millet it was featured on the menu along with other fancy vegetarian dishes. not indian food. i was surprised by that.

it seemed like a nice meal 400 guests, including the big ceos, that we bring on cnbc. >> yup as you said, glitzy. that's the word you can use. seema, thank you six lanes of i-95 will reopen today at noon it comes less than two weeks after the tanker truck explosion caused the section of the highway to collapse. construction on the temporary lanes was aid ed by nascar's poconos jet dryer to expedite line painting and one of our future guests this morning, governor josh shapiro praised the repair crews for reopening the lanes ahead of schedule. 8:40 a.m. eastern is when the governor will join us.

that's so nice >> they talked about this section of 95 collapsing -- the one side collapsed and the other side was unstable. they said it would take months to fix it. >> he is in studio >> this is back up and running in two weeks is miraculous. >> we can ask if he came up in a car or flew up here. >> crossed the lanes >> take a look at the work done. i don't know he is an up and comer. we talk politics a lot he is an up and comer. if you are looking for people on both sides of the aisle to fill voids that could some day be created if we don't elect 90 year olds to the highest offices in the land. interested to talk to him this morning. d.c. is relatively new lives in the governor's mansion

now. attorney general for a few years. he's from kansas city. when we come back, we will talk more about the markets. if you look at the futures right now, you will see dow futures off by 100 points. st same for the nasdaq we will talk strategy right after this break later, we talk to billionaire ron baron about the investment in tesla. the read on the markets and the economy and where he is investing his money. you are watching "squawk box" and this is cnbc >> announcer: this cnbc program is sponsored by truist wealth. where meaningful relationships matter most.

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welcome back our next guest says if we get a correction in the next few weeks, it will likely be led by the year to date winnewinners. joining us is zachary hill at horizon investments. zachary, you think some of the stocks which are high flyers are due for a pull back? >> that is right, becky. great to be with you this morning. we look at price action and really extended behavior from a lot of different parts of the market for retails and professionals. a big part of the market climbing the wall of worry this year is the fact we are under positioned as a whole as an inn ve

vestment community we look across the board today, and we think that is not the case any more. we would not be surprised if 5% is a rebound from stocks to bonds and buying of those things which are lagged this year in selling of the a.i. names which led the market >> you have $8 billion of assets under management you have choianged investments f what you allocate to technology? >> yeah. we run numerous strategies of the portfolio of we have gone from overweight technology to underweight and looking for the price action more strategically as we look across portfolios, this year has been about decreasing overall u.s. overweights in international markets. that is to do with cheaper

opportunities with the dollar and it has confounded analysts over the last couple weeks we think the best days are behind it. we will see fewer headwinds from the dollar that has us moving portfolios >> we have seen a huge run what do you think the second half will bring? >> more medium turn. i think the path of least resistance is higher that has to do with primary reason with the strength of the consumer it is under dappreciated. the balance sheets in the sector and personal balance sheets are in a healthy position. we can handle higher rates we think this is a different cycle and one with further room

to run over the medium term, despite the bear iish outlook i articulated, we believe that translates to higher asset prices >> the whole thing we have been watching with the fed and you are not concerned about that you don't think it will catch up in the second half with consumer pull back with any recession or has it been baked in >> i think a lot of that has been baked in. i don't know how many fed speakers were on the calendar this week. i probably can't count on both hands. we get a lot of information from the fed. it is well known with policy i think for this year, likelihood they will hike 25 basis points in july that is a done deal. that was decided at last week's meeting. beyond that will be how the

economy evolveevolves. that is uncertain. in the grand scheme of things, 25 or 50 basis points when you hiked 500 basis points, we don't think that isis relate -- relevn any more we are not spending as much time parsing fed statements >> what about earnings season coming up? believe it or not, that is on the horizon again. that matters more than the fed at this point? >> i think so. a lot of uncertainty around guidance for the year and optimism that things will pick up in the back half of the year that worries me a little bit it is not great right now, but it will get better how do we see company ceos

guiding for the year the market wants to hear it. that is something we will watch. obviously watching the financials they report first. to the extent a couple of months ago, we cared a lot about credit transmission to the economy. that died down would love to get a better look at that. lastly, on the a.i. side of things and technology side of things, i think last earnings quarter was about just promising you are in the space and doing something related to a.i i think now as we see performance across the sector is caught up with the narrative we need to see more tangible numbers. that is another reason why we could get a bit of a correction in a long-term bullish dynamic >> zachary, thank you. have a great weekend >> thanks. coming up, companies ramped up fertility benefits in recent years. the coverage often is not

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indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire companies are stepping up benefits for fertility and adoption benefits. that doesn't cover equally same-sex courtney reagan has more >> many policies exclude same-sex couples

>> we were shocked when we started to look into it and realized nothing is covered by insurance unless you can prove you are infertile. >> the first step was to get sperm tested for us, that was the only part of the process that was covered through our insurance. >> 63% of lgbtq+ individuals plan to become parents 10% of employers offer a surrogacy benefit. for those, they get a $10,000 reimbursement which is common according to experts >> the average cost has gone from $75,000 to $150,000. >> surrogacy comes with added costs. lawyers fees and all expenses and insurance for the carrier and donor eggs

a father through surrogacy before working as a manager. he and his husband's journey costs nearly $175,000. he doesn't think employers need to offer full coverage >> the option is to have support for other co- workers and seeing your employer cares about that journey. >> a new survey of the lgbtq+ community of fertility benefits manager said 75%would leave their current job for a company with better benefits >> are significantly more loyal to the company and stay with the company. >> executives say they field calls from perspective employees wanting benefits before accepting a job. >> we talked about adoption

services you didn't mention it. what goes into the expense i was adopted. long ago in the stone age. what is involved >> adoption is complicated it can cost anywhere from non foster care between $25,000 to $65,000. it can be more of the there are a number of states that make it even harder for same-sex couples to adopt a child no guarantee it can take years. there is a matching process. we talked to a number of people about this you were adopted, of course. i know you know about this personally it can be a touchy question to ask people who want to have children they want to have biological children it is a difficult choice neither one is easier. both are expensive >> i heard stories about what my parents went through funny. my grandmother on my mother's

side lived with my mother and father they didn't like that. what's the deal here >> really? >> you would think they delved into everything. they wanted to know everything when it was all said and done, it was like winning the lottery. like a powerball lottery they were so lucky >> you were lucky. >> no, i'm saying they were so lucky. >> i thought you were saying you were lucky >> i thought you -- >> how about both. >> i like that better. >> thanks, courtney. >> thank you andrew >> coming up when we return, we have more. we are talking about the rebound of tech stocks with gene munster. and ron baron will join us about the thoughts on the market and attestn tesla and so much me

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good morning welcome back to "squawk box. live from the nasdaq market site in times square. feels like deja vu it has been a week where the bulls definitely have not been in charge like they were last week we had claims data yesterday of t the day. maybe solidifying the notion there are two more rate hikes still on the table for the fed andrew >> joe, let's talk tech. this goes to the fed situation the chip sector taking a hit after jay powell's comments on the possible rate hike increase this summer. trying to keep inflation under control.

joining us to talk about the impact of the comments on the sector and how the markets are holding up gene munster from asset management the -- management gene, good to see you. we see folks in your space have a fortunate view and calling their broker and saying sell maybe like jim cramer would say, press the sell button. >> i think that is exactly what happened for a couple of days this week. little bit of rebound and another pull back today. i think the message from powell is we're close close doesn't mean we're there the line is being developed around being tech visionaries for investors. also investors with tech in the investing case, you need to take heed of what powell is

saying he is saying a couple more hikes this year. the market is saying one hike. we learned over the past year the importance of interest rates and the impact to the companies. the dynamic here over the next six months is more at risk with the tech companies if you look at the chip sector, the top chip six names were down 5% over the last couple days that compares to the broader nasdaq down a couple percent the stocks were up 90% year to date 9-0. nasdaq is 30%. what you are seeing is a natural and healthy understanding that tech investors need to take note here >> i think the question is from here on out, and i get the relative issue you are talking about, but from here on out, what is the upside and downside

scenario here 12 months out? >> 12 months, we're optimistic ultimately, we are seeing continued acceleration of the companies implying ultimately. i'm optimistic on tech i feel they will have huge benefits >> you don't think they have already run? you could make the argument they already ran. >> you could you also, i think -- i want to be clear here. the next six months and we're still not in the clear i think there are a couple of more rate hikes. these these stocks will take a pause. >> what is the six months? i'm trying to understand you are talking about 6 months and 12 months. what is the inflection point >> rates are done going up then the market will start moving up once we have one more rate hike. i think there are two more rate hikes. we have one coming at the end of

july it could pause for another meeting and pick up again. i think by the end of the year, we will be in a better position. >> i'm sorry to interrupt. shouldn't that already be baked into the cake? i think there is actually if you talk to steve liesman, we will have more of an expectation of rate hikes >> i think the reason it is not baked into the cake is if you look at the last six months. microsoft is up 58%. t the nasdaq is up 31 if there have been modest gains given what happened last year, i would say it is baked in there has been a little bit more optimism the market is clearly making this case that we have one more rate hike. in some ways, it is splitting hairs. i'm optimistic of where the

companies are going. i think we will get a pull back. i do ultimately think by the time we get in front of the last rate hike next year, it will be a great year for the companies >> two things, gene, you talked about a pull back in tech. if the idea is if you don't have cash in or cash on the sideline, you would wait w why are you waiting? let's not group them together and call them tech pick two or three stocks you like. >> the two i would pick is google and apple in terms of google, in new york, met with investors the message is they don't see google as an a.i. company. the company having significant risk relating to the search business i continue to hear the idea they will have a transition with a.i. that will be negative for what is happening for earnings the next couple years.

i believe there will be a headwind, but investors under estimating what google will do with a.i they successfully navigated from desk top to mobile s they have 20 plus years of search data. google at the top. second is apple. they have been mum with a.i. i would put this out this is -- i guess i buried the lead, andrew vision pro will really surprise people i'm modelling in six years, 10% of apple's business. that is a conservative number. i think ultimately developers will get on board with this and spatial computing is a big deal. those are two names i would focus on >> one other question about vision pro and what i imagine has to be vision without the pro at some point. pricing in terms of volume there is an expectation of half

a million of these being sold in 2024 what number are you putting on that is it more is it surprising on the upside is it going to look in the initial stages that it is not working and really work latelat. that was a bit of an issue with the watch. you look five years later and you say oh, my goodness. >> five years for the watch. this will take five years, too the number for next year, to answer your question, i don't know it will be a low number. i think what is more important is the experiences given the price point. if the app developers are developing experiences that are exciting, i would point to this. this technology, when i demoed it, is next level. not even close to meta ultimately, developers will get on board they will not sell a lot initially. human tendency is to go to the easy and lazy experience

this is the ultimate in terms of lazy immersion it will take off >> gene, i'll be killed. we're going over time. i have one more vision pro question the tech is better than you have seen and better than meta. do you think it is a function of the hardware and how much is packed into it and the fact it costs six times as much or something that is fundamentally different and not just throwing money and tech at it, but integration off it >> the hardware. the first. we are not at the integration point. when you use it, the interface, as it reads your mind, will make more sense to people when they demo this. the tech is remarkable >> gene, always good to see you. exciting stuff >> thank you. >> we hope you are right thanks thanks, andrew when we come back, ftx is looking to claw back hundreds of millions of dollars of payments

that were authorized by sam bankman-fried to hollywood investors. you can get the best of "squawk pod" and listen any time we'll be right back. billion-dollar views. a cutting-edge data-security enterprise. yes, with a slide. a perfect location for the world's first one-hour delivery. an inspiration for the next workout cult. and enough space for a pecan-based nutrition bar empire. it could happen. because there's space for any dream on loopnet. the most popular place to find a space.

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a new development in the collapse of crypto firm ftx. it sued k-5 global and brian baum seeking to clawback ifrn investments made with funds. sam bankman-fried authorized the funds describing it as the most connected person he ever met at a one-stop-shop for celebrity partnerships he worked for the hollywood agent to arnold schwarzenegger and katy perry as evidence, it cites a $214 million investment in the tequila brand when the assets were valued at less than $300.

the lawsuit is without merit and they were thaentering into a lonl long-term relationship this brings up ties with hollywood and politics and a lot of the ways that it has been alleged that sam bankman-fried was trying to win favor and customers and ultimately call on some of them when the firm got in trouble >> no question, becky. the interesting part about clawbacks, as you know, is if you believe that the deal, whatever deal was structured, were fair deals, it is actually hard to clawback money you can't say i went to a restaurant and ate a meal and the restaurant should give me the money back you can only get the money back, typically, if the restaurant tour, if you will, knew they were serving a patron that was

involved in the ill gotten gains. >> i read the complcomplaint. they went out of their way to prove that kives invited sam bankman-fried to a party and he met a lot of important political types and got to go to the super bowl with him and turned over the $214 million followed by $300 million and followed by $500,000 he got nothing for it. it was put into shells of the thi deal this is what happens when you clawback money and try to get back the money when you think customers lost it in the process. my guess is this is not the only suit >> the hard part about the cases is proving -- you need to prove effectively that the other side -- the people he made deals with knew what was happening at

the firm that is the hard part. when you look at what with k5 is now saying, it is more complicated. >> this is not settled any time soon the complaint gives you a lot of fodder for what everybody has been speculating in terms of connections made it will make some hay from the gossip center. >> we said about the relationship with the agent. he was an agent at caa >> yeah. >> who was his buddy >> brian baum. his partner in k5. >> he had a connection with a famous agent >> he is the agent >> he is the agent >> he was the agent at caa he worked there for several years. >> you know these guys >> you know the agents >> bigger than life. >> i have known michael kives

for years. i think becky may know him he was involved at one point with warren buffett and helping put together a movie many years ago. >> i've never met kives. >> he had been out at the omaha annual meeting >> yeah. i've never met him. >> i don't know. kind of the wrong. the bill and hillary thing not surprising coming up, we talk about the market for collectibles. hundreds of movie props are up for auction. we will show you the price tag for the piece of hollywood history next nft. i don't want any physical. are they worth anything? look what i have on my computer. you can watch us live any time on the cnbc app

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an iconic piece of movie history. 1400 items are headed to auction potentially bringing in an estimated $12 million everything from kevin costner's baseball glove from field of dreams to russell close costing in gladiator. the live auction will be conducted by prop store. i have

a new appreciation for the things that the museum of motion pictures, the academy museum in l.a. where i visited recently. i did not know how much i loved all of this stuff. the original piano that sam was playing in casablanca and i see why these things go for a lot of money. they conjure really good feelings in you when you are around them. i understand. >> absolutely. what we are doing is giving people an opportunity for people to bring those pieces home. the same kind of pieces, the live auction takes place across the street at the automotive museum. it is all about people connecting. >> how do things become available and how do you decide what would be an attractive piece? and you let the process work, if it is near and dear to

someone in particular, let the bidding begin. >> absolutely. we have to find interesting materials that people are looking for from films they love. authenticity is a big thing in any collectibles field. and original. these are the actual artifacts that are used in the making of films. the research is something that is important. everything we sell comes with a prop store certificate of authenticity which lets buyers know it is real and guaranteed for life and if there is an issue, they can come back with it. >> that is the gladiator armor, to your left? >> that is what we call his hero dress armor. he wore it in the opening of a film and a large battle sequence, after the battle he goes into his dress armor and goes to marcus a really are.

this is the actual armor. we call screen matched. there are unique flaws in the paint that you can see on screen like a fingerprint and lets you know it is the exact armor that he was wearing in that particular scene. gladiator is a film beloved around the world, won the best picture and we expect a lot of interest in that piece. >> joaquin phoenix, unbelievable and russell crowe was great. as the bad guy.>> is that the terminator -- what is that? >> that is from guardians of the galaxy. the star lord helmet. an original from the film. another highlight in the auction. we have the princess leia dress you had on screen. carrie fisher's original dress. you see the star lord helmet with light up eyes. we have something for everyone. over 1400 lots in total.

at all different price points. some price points are high but there are things for beginning collectors with items as cheap as $400. for $400 you are looking at a smaller peace, it would be hard to get something from "star wars" or guardians of the galaxy but you may be able to get something. as you get into more recognizable pieces, the things that you remember, the price tag goes up because the interest increases >> when you get these things.>> that is what we do. putting the content together. we have relationships with studio companies and some come from independent rental houses. the field of dreams baseball glove was the property masters personal, high school baseball glove. kevin costner was not happy with the first glove and the glove these to be old and aged.

the prop guy went back to his truck and he said the only other glove is my high school baseball glove. that is the glove you see on screen. you can matchup every fold in the leather on screen. it is the one from that wonderful film, field of dreams. >> i guess the older films, maybe it is hard to get some things already spoken for. michael corleone's summer, passed off it. it was there. they have a huge selection on godfather.>> it is very popular. a lot of it is like treasure hunting. some pieces are out there is some pieces are not. >> thank you. great to have you on

we come back we will talk with ron baron and why he is bullish and is big bet on elon musk. we will talk a lot about politics. straight ahead. i'm so... ...glad we did this. [kid plays drums] life is for living. let's partner for all of it. i'm so glad we did this. edward jones

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good morning. ron baron join us for an extended interview. we will get his latest take on the evie maker, markets and inflation. the future this morning are lower as investors try to figure out he feds rate hike campaign. hurricanes have battered the insurance business a look at the sector and how one state is trying to convince companies to come back. the second hour of "squawk box" begins right now. welcome to "squawk box" on cnbc. take a look at u.s. equity futures. we have read, unfortunately on

your screen. the dow is up 121 points. nasdaq up 103 points. will flip the board around and show you where treasuries are sitting. you are looking at the tenure note and the to your note. right now it is at 3.744. the two years sitting at 4.761. you think about the energy, oil, wti crude, by the barrel, it will cost you $60.29. tesla has been on a big run the last few months. it is up 115% so far in 2023. our next guest is one of tesla's biggest shareholders joining us in an exclusive interview is ron baron, the chairman and ceo of baron capital. it is good to see you and have you in studio.>> great to see you. before i left home, my wife said to me this morning, i

don't want anybody hearing your rude stories. for one story. the other i will tell you later. >> i thought we would end the interview right now. if we cannot do -- what will we talk about? >> i want to thank you. congratulations to everyone on your bit coin. and two, i have been on this program for 17 years. because of you people recognize me everywhere. it is amazing and i want to say thank you. i am walking to work the other day on park avenue and woman comes running at me. she grabs nonsense as, thank you, thank you. i love my smile. she said, you are the cool guy on cnbc all the time >> you must get that a lot

>> you want to talk broader markets or tesla? >> i want to mention about -- i will talk about that in a minute. i know that is what you want to get to. yesterday or the day before i was watching the show you talked about psg and how the united states are passing legislation or trying to pass legislation saying you should not consider the factors. i will point out that we do consider those factors and we consider how you treat employees and if you are not treating them well, how will you retain them and hire the best and keep them. and help you train them. we are interested in these things and also interested in making sure the companies in which we are investing, we are conscious of that. to argue against the idea that

it is not important about how much money you are able -- only making money is what is important, we have been conscious of this and because of that we have outperformed. 98% of stocks have been better than the market. 45.5% are in the top 1%. not only the top 1%, but number one in the categories. and the firm is the number one performing firm for mutual funds . we have been able to perform well >> when you say, esg , it depends on who is using it and how they are measuring it. you will not see you are against the environment, social or governance issues. people will measure things and crazy ways. the pushback comes from the bureaucracy and the greenwashing that is used to dress up or dress down other places and i think part of the problem comes from big

institutional shareholders who have said you are going to do things this way. it is not their money they are talking about. >> we are not like that. >> i think the argument gets so convoluted because it depends on what you're talking about when you say, esg. >> i agree. anyway. we are conscious of how companies treat people and shareholders . we are aware of these things. our business, we have never had a layoff in the history of our business. therefore people feel comfortable working for us and they trust us. and we keep going. we do the best we can for clients in the best we can for our customers. our employees and shareholders. one of the things i think is really important is that we don't worry about the stock market. we don't worry about interest rates in the economy and wars. in my whole history there has

never been it -- one year in my whole career. the stock market in this time, with all of that going on the stock market is up 34 times since 1970. the economy in that period of time is also up 33 times. despite all this, we are up. over the next 50 years compared to the last 50 years i think you have faster growth. you

have 35 times the money over the next 50 years which means dow jones which is 34,000 will be 900,000. i'm thinking about 900,000. >> why do you think faster growth over the next 50 years? people say over the next 10 years you could see slower growth and 7%. >> inflation is 4% or 5% of the 7% growth. year-over-year growth is 2%. all the growth is taking place in the past 20, 30, 40 years. that is accelerating by technology. >> you expect inflation to be higher? >> i expect inflation to be as it has always been. 4% or 5% a year. i think everything will be twice as expensive in 14 or 15 years than it is today. it might touchdown a 2% or 3%. even in 1986 or 87 it was 3%.

it will not stay lower. part of our economic program. >> supercomputers and a.i and the quantum advances will make in healthcare and technology, coming quicker and quicker. the idea it might have taken ,1 million for genetic material to aggregate now what is happening in 10, 15, 20 years. think of the internet. >> who knows what will be? >> i will settle for 32 times. >> i will settle for 34, if i am there and 50 years. >> are you rolling that out completely?>> we talk about 120 years. i don't know.

>> back to tesla. i am in debt and living in my friend's basement. unemployed. in 1982 i started baron capital. we had 10 million under management and now we have 41.1 billion and it is down from where it was in november of 2001. and i say what will happen is we will get back to where we were at the end of 2025 and we will back to the trend of doubling every five or six years , in 2035.

>> tesla, you got into this in 2000 -- 2014.>> i met him in 2010. i say we invest in people and bet on people. when he was at our annual meeting, he said it took you quite a while to invest in me. after the stock went up, we started investing.>> why >> i kept visiting him and finally we had a meeting for a couple hours and i said, i cannot believe i do not on this

yet. >> we are looking at the long- term stock in euro that all the way up. back down and then back up again. >> we invested $380 million and we made about $4 billion so far. and cashed in about $1.5 billion. i think will make six or seven times that. in 2030 will be 1500. >> i think when you sold your

soul because were worried it was becoming such a huge part of your portfolio. at the time, it was part of your mandate that you could not have one stock be such a big part of your portfolio. >> i wanted people to know i had not died. and i still on the stock. i was getting criticized. i don't really buy stocks. but i am allowed to buy private companies. and tesla, i am personally 5 million shares. i bought it after all my clients have bought bears. and i said to the board of mutual funds, i will not buy stock for myself any longer. i will only invest in our funds and in private. in this instance i think will make lots of money. and if that works out, i think

we will be stronger financially. the makes an unfortunate move, it will not be pleasant but i will take the chance. if you approve this, i am the last person to buy. i am not taking in one's opportunity. i will not sell a single share for myself until i sell for all my clients. about the clients we sold a quarter of their stock and i have not sold.>> you are holding $4.5 billion. you think it is too big again? so you are not bold and one stock.>> no. i am careful about explaining to people that you own the

stock. the client say, it is too much and can you sell it. whatever they ask. i think you will make double. and after that you will make triple again. you could make seven times the money over the next seven or eight years. >> i am curious if you would explain what your thoughts are on this opening up of the charging stations that tesla is doing. it is creating opportunity for ford and general motors.>> i think it is not that big a deal economically. they make more charging stations available so people are less worried about buying an electric car.

they can charge it wherever they go. most people charge at home at night. and up against that big of deal. there were 4500 stations right now and plugs. the whole idea is to transform our country and the world to electrification and electric cars. >> you buy a ford or general motors car and you can charge your call. you know what is interesting, most people -- $48,000 a car.

$33,000 to buy a tesla. it is better than a bmw. that is why it is the biggest selling car in the whole world. you compare it to any car, and when you buy this car you get an amazing value. $33,000 for a car. >> i want to make sure we get to other stuff >> i will be conscious. 6% of cars are electric 94% that are not.

there is a big opportunity for growth. charging stations are important. insurance helps people buy cars. tesla's return on investments. most companies when they make an investment they make a 15% return. tesla when they were making a profit, they built a plant. that plant would make $15 billion. >> let me interrupt. morgan stanley, it was downgraded because he said the price is too high. likes the company. >> they are hedge funds. the stock went down the day

before. >> are you suggesting hedge fund clients -- >> no. you are talking to someone all the time who has an opinion. and he is trying to generate focus commissions. i am trying to be a long-term investor >> when the stock is down like it did last year, you don't worry? >> i was not worried. but for clients, it went from 300 to 100. it's a same price it was that it was three years ago. it is the same person was three years ago. i had no idea if it will be higher or lower.

elon spoke in paris at a conference last week and he was with, -- >> let's talk about other things you like. krispy kreme. why? >> krispy kreme the idea is they have 11,000 places you can buy a krispy kreme doughnut fresh. they thought there was an

opportunity. every time they invest a few thousand dollars in one of these stores or a stand you buy the donuts, every time they make those investments, you can generate somewhere around $500 a week in sales. that is $30,000 a year. which is a huge profit margin on a business where you at 70,000. potentially another $2 billion of revenue. >> when did you first invest in krispy kreme? >> this past year. it is around the price we paid. $14.5 a share. >> december 30th it was trading it $10.32. it has risen sharply. >> the average price is 14 or

$15. the opportunity come from tesla and spacex, opportunities in twitter. smaller companies like krispy kreme >> with twitter, a lot of fury around that. it is a private company and you are an investor because elon asked you to be. there was a research study that came out last month that said 60% of u.s. twitter users have taken a break in the past year. they point out that is before elon took the platform over. it is not necessarily blaming him for those things. the fickleness of adults maybe coming out of the pandemic when you're not using social media as much.

maybe moving on to other issues. what makes you think there is an opportunity? >> he did not asked me to invest. he has made us so much money. >> you asked him? >> i said i would like to invest. $100 million. it is not that big a deal, $65 million and $35 million. i thought, he could make 304 times the money at the company and i hope so. now that he has hired linda, i think she is spectacular. she will be a speaker at a meeting this year. >> we know her well. >> i am excited about her. and elon was talking about, in the past six months he has made more substantive changes in twitter that he made in 10

years. the focus is on video, the focus is on moderation with technology. and the six agencies that had spoken at this conference in paris, and they all had been on twitter before and they removed the pause. everyone is okay to be on twitter again. >> we invest in twitter. to advertise on twitter.>> okay. >> cyclically that was depressed and now cyclically it is coming back in at the same time all the people who pause are now no longer pausing and they are engaging. and i think they will come back. they were not doing targeting. it was very poorly run when it

was a publicly run company. i assume it will be a public company again. we are studying it and trying to make sure that we think it is a good opportunity and we make a big investment. right now we are watching. >> i want to thank you for your time. always a pleasure seeing you and we appreciate you coming in today.>> elon is 30% or 40% bigger than zuckerberg. zuckerberg knows martial arts. in a cage match, elon is 6'1 he is lost some weight but he is in fighting shape. >> he is bigger than 6'1 >> zuckerberg supposedly won medals and martial art. who would you bet on? >> i would never bet against elon in anything. >> you think he would win? >> i have so many ideas right

now. i need more money. i have so many ideas. i cannot bid on a cage match >> this was a throwaway conversation at the end. >> i don't bet on that stuff >> you are not a gambler >> i don't know. i'm not sure. it is not that you are attacking, is in it sort of -- >> he said he would use the walrus move in sit on somebody.>> ufc actually wants to do this. it is going to happen >> i know. >> i worry if there is a risk in insurance policy. >> stuff happens >> you want them to do this?

>> i prefer they not. it is good pr. coming up a look at some other corporate headlines. instead of this one. "squawk box" will be right back. wait, what's money? better quality pet care for less human money. [tweet] oh, a bird. it's what we'd want if we were pets. get $10 off $50 at petco, the health and wellness company. ♪♪ at morgan stanley, old school hard work meets bold new thinking. ♪♪ 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.

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and advanced security for $49.99a month for 12 monts plus ask how to get up to a $750 prepaid card with qualifying internet. welcome back to "squawk box". we have corporate headlines to big you . 3m has agreed to pay

up to $12.5 billion to settle hundreds of lawsuits brought by cities that said their drinking water was contaminated with what is called forever chemicals made by the company for decades. a class action settlement will cover public water systems across the united states. the cities they were contaminated by chemicals in 3m's firefighting phone. for preparing a new round of layoffs for salaried worker . the wall street journal reports that cuts expected to affect employees at the gas, electric vehicle and software division. bus where ford announced cutting $3 billion in costs. on the list, the indian prime minister attended a state dinner with president biden. several ceos were in attendance. this morning they will attend a meeting and that it is expected to be around 10:30 a.m. eastern time. when we come back, we will

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welcome back to "squawk box". we start looking at shares of microsoft. lower in the premarket. over its activision acquisition. microsoft attorney said the hearing will decide if the deal goes forward. the federal trade commission is arguing a combination of microsoft and activision would be devastating for the gaming industry. testimony expected from microsoft ceo. activision's ceo. and video testimony from the coo of sony. target shows a lower after jpmorgan put the retailer on a negative watch. shares are down almost 1%. among the headwinds, according to analysts, student loan repayments, starting in october. restarting.

inventory markdown risks as well that could hit margins. we are looking at shares of virgin galactic. they are plummeting in the premarket. there was days since january 2022. they are down pets and right now. this after they announced they are looking to raise $400 million from a stock sale. proceeds will be used to develop and expand its fleet. it is raise $300 million the company has announced plans to launch its first commercial flight later this month. all right. >> you do not ask me about the zuckerberg, elon musk. >> no. i am thinking i'm ready for a flight. i'm ready to go up. not ready to go down. that is what i mean. the whole thing is -- with the recent developments. i feel better about the jeff bezos thing and william shatner. let's talk technical. right

up-to-the-minute info, you think some of the overbought condition in certain parts of the markets were worked off this week in a short term rally could resume. but you are neutral, medium- term. >> we came into this week with a reading on the overbought percentage of about 65% of the s&p 500. that is contracted to about 25%. we have already seen some relief from the overbought condition. and that is half and without a meaningful loss of upside momentum. we watched short-term and intermediate momentum and they point higher for the s&p 500. you want to defer to the up trend in the near-term. we hold a neutral long-term by because of the improvement we have seen on the daily and weekly bar charts. we don't

have a decisive cyclical trend on the monthlies but things have improved and it is allowed for more breakouts. the review of the s&p 500 we see more and more stocks that look better. the market >> usually does risk on, risk off. but it did rally and it led the move our. when it got down to 25,000 recently, did you think it would breach and are you surprised that went back about 30? >> it held that support level and it had seen a loss of intermediate term momentum.

most gauges pointed higher. we now have a short-term breakout in did coin. it is a bullish reversal on the chart based on our cloud model. that is a key level forbid:. at the same time we saw either come down to 200 which is still rising. we get nervous when we see that coin down sharply in terms of risk appetite. >> roughly 36,000. which would be achievable with that kind of bullish reversal.

>> yields are in a downturn again. >> we have a down trend within a broader up trend. we think the cyclical trend will keep but we are viewing it as higher. we are looking for more downside. if you look at the tenure there is resistant >> copper is on your radar screen. there were so many things that go into coppers price. supply and investment and things like that. what do you think it is indicating? the recent trading. did we lose you?

>> how does that happen? >> you have heard every bull market has a copper roof. i don't know why. overheating economy, maybe. causes -- >> i don't know. >> it is weird >> i don't know why coppers trading so well. the economy is strong and this is a recession supposedly looming, we have had jeff curry on talking about the underinvestment in mining and all these things >> copper top. >> joe, there is a -- do you have your starbucks. there is a strike brewing, i hope you get the brewing joke at starbucks this morning. it is not a joke

>> good morning. after a public clashing over displays of pride to court in cafis, starbucks workers united said over 150 stores have pledged a week long strike across the country starting in seattle at 10:00 pacific today. the stores that have pledged to strike represent nearly 3500 workers in several dozen more stores will vote on strikes. not all of the stores were impacted by the allegations of changes to policy over pride decorations, but they are striking in solidarity workers united has alleged instances in 22 states pointing at social media where baristas claimed evidence of a policy change on pride decor. starbucks has maintained there has been no change to its policy on pride decorations and said it has unwavering support for the lgbtq+ community and adding workers united continues to spread false information about the benefits, policies and negotiation efforts, a tactic used to divide our partners and deflect from their failure to respond to bargaining sessions for more than 200 stores. local store leaders do have the

ability to make their own decorating decisions within the company's security and safety manual. beyond all of this remains the fact that starbucks and the union have not agreed on a contract union dues are not being paid but it has been over a year and it seems little progress has been made >> the question i ask, what are the union plans from here on out in terms of how long you think they continue to fight for the contract? >> a great question. the union said it is prepared to stay and starbucks maintains a will negotiate in good faith. an important reminder, workers organized stores one by one. that is how starbucks is bargaining. the company also wants in person sessions. the union has pushed for zoom attendance. there has been instances where workers have moved to decertify the union. after one year of being unionized, if progress is not made but several have been dismissed other because they were filed too early or due to pending unfair labor practice

charges. starbucks said the union has not responded to more than one quarter of its bargaining proposals and the union says starbucks is stalling. >> how much of this is about the contract itself, versus the issue of the display of pride and other things at the stores? >> andrew, i think the union is using public pressure like this over things like pride displays in stores to hopefully bring starbucks to the table. it has had strikes over working conditions in certain stores saying they are unsafe. unions are effective in using social media to speak out. starbucks says it has safety guidelines for stores. things cannot block windows. managers could interpret that a flag cannot hang in the window. i think both issues matter to the union but the question remains, how effective will this be in getting that contract . they don't have to agree to a contract, they have to negotiate in good faith. >> thank you >> i think what you think, i

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welcome back to "squawk box". the hurricane season is set to better america's insurance market which is in crisis.

uninsured homeowners were forced onto the state sponsored insurer.60% inducing the worst homeowner's insurance market since katrina joining us now is the louisiana commissioners of insurance good morning to you. it's a serious issue there's a real question, commissioner, about how you actually get the insurers back into the state and what you have to do to induce them back. >> and we're doing what we did post-katrina that really worked very well for us with an incentive program. at that time we offered $100 million in incentive grants from our surplus that we're experiencing yet again in the aftermath of the rebuild paid

for by all those hurricane claims, $26 billion aft afaf after katrina. the legislature and governor have made available some $55 million to replace and supplement the major national carriers who have been exiting coastal exposure not only in our state but from massachusetts to miami and around to mexico ever since katrina. and that continues on a national basis. we have been more successful, i dare say, up until now, than any other coastal state in replacing those exiting major national carriers with small reinsurance

national companies and that resulted in five years prior to laura our homeowners market increasing only 1% per year for each of those five years for premiums for homeowners. so we're using that same model we've distributed now $42 million to eight small regional companies that are writing aggressively now across coastal luce louisiana and we hope and expect that will continue to address this ongoing crisis. >> this is a larger issue than just louisiana as you just stated so many of the big companies leaving coastal cities and states what do you see as the biggest challenge and can this be a profitable business for these smal smaller insurers you're talking about? >> it really can we lost three. we lost it because of hurricane ida, the second of those two hurricanes the first go round with laura, they were fine

had enough reinsurance, didn't have overexposure in the southwest corner but did not adequately reinsure themselves for the laura hit that was really concentrated in the new orleans area and to the west of new orleans. with that overexposure, they failed but more than the failures in our state, we had companies we had attracted from the florida market because of the long time crisis they had there, a man-made crisis as it's called, around litigation to rounding homeowners, companies in the state of florida those companies came to us, to south carolina, texas and other coastal states to do business because they couldn't profitably do it in florida and that crisis caused five of those companies doing business in our state, insuring my home here in suburban new orleans to fail at the same time we were being hit by those hurricanes.

>> commissioner, what are the premiums like? that's the other issue talk about affordability or unaffordability given where you live >> our premiums are always in the top three or four. texas, louisiana, florida and to the surprise of many oklahoma. oklahoma not because of hurricanes and not even really because of tornadoes it the cost of hail that comes often with tornadoes and covers whole counties at a time but we are right in the center in the cost of homeowner's insurance in texas, louisiana, florida and oklahoma >> commissioner, you talked about the man-made problems in florida. there's a real question as to how much you think climate change has effectively created some of the problems that your state and so many other states are confronting. we debated this issue with

everybody from warren buffett to so many others where do you stand on that >> i recognize the fact that i've lived in new orleans my entire life. i lived through hurricane camille on the golf coast back in the 60s, betsy earlier than camille started the national flood insurance program, but the one that had set our record before katrina was hurricane andrew in 1992 that cost insurers for damage in our state a half a billion dollars katrina beat that 50 times and three weeks later rita hit the southwest part of our state and added $3.3 billion more. and now we're hit by laura, 150 mile-an-hour winds when it made landfall in lake charles and 13 months later ida with 150 mile-an-hour winds katrina and rita with 115

mile-an-hour winds there's no denying hurricanes are much more often hitting our state and much more powerful when they do visit louisiana i'm not a denier and i am certainly on the side of those who say we have to build higher and stronger in order to live and do what our state is dependent on in coastal counties, parishes as we call them, in louisiana >> commissioner, i want to thank you for joining us this morning. >> thank you, sir. >> it's a fascinating topic. becky? >> andrew, thanks. still to come on "squawk box" this morning, carlyle group co-founder will join us. and today at noon, this section of the highway will reopen after

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good morning futures pointed to losses at the opening bell the dow, s&p and nasdaq are poised to break their winning streaks. and rebuilding america a section of interstate 95 in philadelphia is set to reopen today, less than two weeks after a collapse we're going to speak with pennsylvania's governor. and ron desantis doesn't want people from other countries to buy real estate in florida. that's not sitting well with some in the sunshine state we'll take you live to miami 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 u.s. equity futures at this hour continue to trade lower. it's been a tough couple weeks of the year but nothing huge but after a very solid week for equities last week treasury yields also not a lot of movement for the week we got the 10-year at about 3.74 and the 2-year 4.75. >> let's start this hour with a deeper look into the markets we get right over to mike santoli. he's been checking things out. >> definitely in pullback mode as joe says. pretty orderly and fairly predictable and predicted. the s&p is still up some 5% month to date. did come into the week looking a

little bit stretched to the up side seasonally you get turbulence around the latter half of june what would mean something more than just a routine pullback it would mean getting below the 420 for the spy etf and 4300 almost exactly was last august's high you're still kind of playing with house money to some degree. the longer term trend is higher, though you see head winds developing, it doesn't seem so much like an easy trade to say people are underinvested and they're going to have to buy the stocks higher. there has been some broadening out but not necessarily to the net benefit of the overall s&p 500. you do have a pretty big outperformance spread from equities over to bonds a lot of times oddly enough, right around a week before the end of the quarter you get some big funds doing some rebalancing activity

this is the total stock market versus the total bond market etf. that's a pretty big spread on a quarterly basis. all else being equal, you'd see a little flow out of allocations into fixed inc now markets overall orderly and calm the volatility index looking at a two-year chart, you're seeing lows not seen since the pandemic on the vix it it's been calm and in its own range. that being said, you're still at the low end of this range. it's getting cheaper to hedge against it i will point out vix futures are all much higher than this level. from july out to the fall they are at 16 up to 20 plus.

in order, there is some anticipation that volatility will go up but that also maeans people are not necessarily super complacent it sometimes gets people's alarms going off, becky. >> the calm before the storm, people start thinking about things like that we talked ito a couple of guest this morning who think the fed is becoming much less important than they have in a long time. this investors of turning his sights towards earnings season, towards other things that are out there. does that feel like a fair assessment to you that the fed is less important or is it just less important until the next time they meet >> i've been on that island most of this year even though the fed is still going to be moving, it's moving over longer periods of time in smaller increments, we're trimming around the edges.

at the hawkish end of the current thinking of what the fed might do, we're talking about two quarter increases by december 1st it's not a scary scenario. real yields keep going up. i agree, it's all about the impact of what the fed has already done, what is it going to mean for earnings and the overall economy rather than what they do next >> perfect mike, thank you. i hear i owe you that you're filling in for me on monday. >> yes enjoy. >> thank you i'll see you later andrew >> thanks, becky join us right now for a closer look at the market and fed as david rubenstein, co-founder and co-chairman. great to see you as always i think i'll get a chance to see you at the aspen institute next week let's talk about where the markets are right now and specifically where you think the fed really is. >> i think the fed made it clear

to everybody that interest rates are not going down this year i think the market futures had anticipated a decline perhaps by the end of this year in interest rates or beginning of it and jay powell's statement in front of congress this week made it clear that at least through the end of the year you're not going to see any rate decreases the market got ahead of the fed i think a little bit, anticipating some rate cuts and i think jay powell made it clear it's not going to happen this year >> i don't know what the carlisle house of view it but when you guys sit around on monday mornings and talk about where rates will be six, 12 months out, is it your view there's only two more rate increases? do you think there's more to go? we talked to folks on both sides of that debate >> the conventional wisdom today is you're going to have two quarter point increases between now and the end of the year and

we're probably with the conventional wisdom. that's assuming there's no exogenous things we can't anticipate the conventional wisdom is almost always wrong. that's the conventional wisdom >> if you say it's always wrong, do you have a view >> well, my -- >> i'm going to lean more than one way or another >> you have to go with the convention wisdom at this point. based on everything we know today, assuming nothing terrible happens overseas and no big calamities, the fed has made it clear they're going to increase interest rates about two more times, probably 25 basis points apiece and next year will look at a decrease but no guarantees there either >> as someone who invests in climate and credit markets, do you say to yourself i want to be buying at these rates because they're only going up from here?

it's goes to trying to decide where things are headed or do you say i have to harvest and sell >> the greatest fortunes are made when things are troublesome. right now there is a lot of complications in the market. some people are very worried about the reals state market, the real estate debt market. there are some challenges and we haven't seen them all come to the fore yet it's a good time to invest assuming you're prepared to hold on if you want a quick flip, that's probably not the best thing to do right now but making long-term investments, now is is a pretty good time to invest. there's not as much competition. if you get it through and get it financed, you're probably going to do okay in four, five years markets show when private equity firms are looked at, what are the best funds and vintages? almost always they're at times when there's economic trouble. right now there's some trouble >> given what you're seeing, though, among your portfolio companies and this goes maybe

to -- it almost like a barry sternlicht question. we had him on earlier this week. he thinks things have slowed down way more than the fed believes they have and that his data is much more up to date, if you will, than what he thinks of as the lagging data that the fed gets what does the carlisle data show you in. >> we have data on several hundred companies we own and we look at that and compare it to how the economy usually does and we send that to the fed. our data does not show a recession any time soon. this is the most anticipated recession in history and hasn't happened yet and our data does not show a recession coming in the near future. we don't see decline in consumers sales. we see enormous spending on things like concerts and thols and restaurants, things like that we just don't see it right now in the data. >> what looks cheap to you right

no, where you say, okay, maybe it's time to -- would you go by real estate in san francisco or regional bank? >> everything is the price tell me what the price is and i'll tell what you we do for sure take commercial real estate. we all know fewer people are going into offices than used to be the case. if you go to big office buildings in new york city, you're going to see people there maybe two or three days a week if you're lucky. some firms try to get their people back every day but really two or three days a week is what you're seeing. at some point people are going to say we need less space and the value of these buildings is going to go down no doubt about it. so real estate debt going to be at sale for discounts at what it is today that's probably the biggest tune over the next two, three years is discounted real estate debt in big cities. >> this goes to questions about

cities san francisco is a city we talk a lot about on this broadcast, we talk about seattle, which has also been challenged, chicago has been challenged. are there certain cities you think are sort of too, you know, too hot to handle? >> occasionally whenever things go down in the city for a while, people say the death of city is upon us. but i don't think the big cities are going away any time soon clearly san francisco had its outside public relations problem for sure but i don't think san francisco is going away. prices in real estate is going to go down there for a while but it still a major city in the united states. it not going away. i don't think people are moving to farms to get out of san francisco. >> is it a public relations problem because people are actually talking about what's happening there? >> there's no doubt there's challenges in san francisco. it's not like everybody's moving out of san francisco to texas. >> i know, but there's serious

challenges in a lot of cities. it's not p.r they have better crisis p.r. people the problem would go away >> i didn't say that you live or work in the new york city area. new york city was thoughtbe dead at the time of the coronavirus there are challenges for sure. there are a lot of homeless people here, washington, d.c., san francisco. we haven't solved that problem but i don't think cities are going away >> in san francisco people are leaving hotels and losing leases it's serious out there it more t it's more than -- you can hire a prch p.r. firm. >> i don't think san francisco is going to fall into the bay.

>> it's nserious. it no it's not going to be san francisco. >> i don't think people are not going to visit stan fran san francisco? >> have you been there lately? >> i have been i don't think the place is going to implode and real estate will be a big deal in places like san francisco and new york >> can i ask you a geo political or political question? there was a state dinner last night with prime minister modi, a lot of people want to move businesses out of china into places like india. sequoia, a famed venture capital firm in california that had a china piece effectively split up into three >> that's right. >> i'm curious what you think the ramifications of that are. there were clearly questions and

issues about american investors investing in china, whether the china investors should be investing in china and how that might be affecting or impacting the way you're thinking about carlisle and other investment firms dealing with china and other countries. >> okay. i should disclose, i am a personal investor in the sequoia-china fund i know it reasonably well. i think their conclusion is it's too complicated to get a lot of institutional investors to want to invest in something in china so it was easier to do what they did. in carlisle's case, we do invest in china clearly it's more challenging to get in and out than it was before and there are political repercussions for the united states investing with china. now people want to shift to india. it's seen as politically safer

in the united states to invest in we're a large investor there but i don't think china is going to disappear as a place americans want to invest in. they probably don't want to be criticized for it as much. it's a mistake to think we can decouple from china. that's not realistic our economies are quite linked and are going to be linked for quite some time. >> do you imagine in the investment world, we used to talk about the idea of splinter net, meaning the internet was going to split, that everyone would come together in davos and the idea of globalization. does the sequoia situation, is that suggestive of something larger i think you'll see more situations like that where people say if you want to invest with us, you don't have to worry about your money going into china. i think in the end we have to recognize that we have economies

t -- i think it's unrealistic to think we're going to be able to decouple in any meaningful way i think the administration is looking at lots of things to kind of say we don't want people investing in china quite the way they used to and they are looking at a reverse sifious executive order. i don't think that happened but it's being looked at i don't think congress will pass legislation but it's being looked at as well. there's no doubt there's some political challenges right now hopefully the politicians can make things better for the united states and china. i think it's unrealistic to think we can decouple of economic relationship. >> my final question to you as to regulations in washington, a place you know very, very well,

the d.o.j. has been much more aggressive how has that changed the dynamic, i mean, with your firm in terms of thinking about what you can buy and what the exit opportunities may or may not be given the regulatory landscape, which has clearly shifted. >> it's clearly different than it was a few years ago it's much more challenging for a private equity firm, since we're typically not combining big companies the way major publicly traded companies are, we don't have as many anti-trust problems as we used to have or as the big companies have, i should say when i was a young starve on i was on the floor of the senate when they passed the hart-rubino act and hart said this is just a notification part and it won't slow anything down it's made it more difficult to sign certain deals in the united

states for private equity term limits doing a stand-alone deal, i don't think the policy is that great. >> we call him a private equity investor but he's become a media mogul and host of so many problems "iconic america, our symbols and stories" premieres on pbs. >> i'll see you in aspen >> former world bank president david malpass will join us and we'll speak about the reopening of interstate 95 you're watching "squawk box" on cnbc ♪♪

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layoffs for salary workers the cut is expected to affect employees at the automakers gas, electric vehicle and software divisions. ford announced plans to cut $3 billion in costs and last summer said they cut 3,000 salaries >> 3m has agreed to pay up to $12.5 billion to settle hundreds of lawsuits brought by cities who said their drinking water is contaminated with so-called forever chemicals made for a decade by the company. the tentative class action settlement will cover public water systems across the u.s. that cities say were contaminated in chemicals in 3m's fire fighting foam. >> and among our stocks to watch this morning, wells fargo downgraded to equal weight from overweight and cutting its price target to $8 a share from $12.

they will likely remain range bound for the next six to 12 months and carmax stocks are higher after reporting a profit. >> and when we come back, a meeting between indian prime minister and executives said to be taking place in washington today. and former world bank president david malpass will join us next. this is cnbc fresh, warm hot dogs! when i'm not selling hot dogs, i invest in a fund that advances innovations like robotics.

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the india prime minister's state visit to washington bringing out some of technology's biggest stars good morning >> good morning, becky china may not have been mentioned by either leader in yesterday's meetings but the deals announced have china written all over it, setting up a $2.7 billion chip plant in india, both seems as ways to diversify away from china. and in the indian ocean china has elevated its navy ship presence >> tonight it's fitting, a fitting way to celebrate the great bonds of friendship between india and the united states that will long endure

>> in today's roundtable, venture capitalists will meet with moody and u.s. national security adviser jake sullivan but pichai will have to navigate the conversations carefully. google committed to investing $10 million in 2020. other topics, ceos will likely address, artificial intelligence, india's controversial privacy bill and rare earth minerals of a lithium reserves were found for the first time in india in the northern side of the country earlier this year. >> obviously this is a market that a lot of american companies are very interested in but it's been a big market for a long time you know, if you talk to business leaders, they would have told you in the past why

they would rather do business in china than india part of it has to do with a centralized government that can get things done in china it a little more complicated when you start looking at state by state in india. >> that's right. india is a land for optimists and pessimists there are real issues trying to expand there so we're waiting for details on how the government address the issues and likely part of the conversation that the ceos will have with modi and his government today the other thing to keep into account is the privacy bill that india's expected to passthat would increase government oversight and make it tough for meta, google and the other tech companies to expand and gain market share there >> thank you >> in his latest op-ed in the

wall street journal, the former wall bank president said faster growth in india would create opportunities for the u.s. but it's critical of the indian government we actually because of recent days because of the visit, we looked maybe a little more closely at some of the -- i don't know, some of the analysis of where india stands right now and there is a worry of some back sliding we think of it juxtapose with china, it's a democracy, a liberal company that is akin to the united states in a lot of ways, but have you noticed some back sliding in terms of free press and religion freedom and other things >> i think tolerance is really important. hi, joe, and becky and andrew. tolerance is really important and india has to work on that.

also, growth is very important as people talk about china, the connection, is china grew very fast for a long period of years and india is aspiring to do that this is a very important part of the message, that they have a growth plan to reach 8% fwroet their gdp, they're shooting for $5 trillion in gdp where is in perspective the u.s. is at 23 trillion or more and national debt in the u.s. is $33 trillion so india is not large within the global scheme but it could be. the population growth alone, they're the most populous country. if they really were able to bring up a median income, it o would be a giant market for the world. so that's the hope >> we for decades watched china with their sort of hybrid form

of capitalism erp employing, it looked like that had been set back, the capitalist systems in terms of government-owned i guess interference in china. same thing in india, david is capitalism not in such a pure form as we have it in this country where we have our. >> i don't think we should compare the two head to head china has a communist party that causes central planning. for a long time this were not -- that was one of the foundations of their growth they were growing 10% of year and they had a lot of companies that were becoming medium-size dps that's one of the challenges, to allow companies that are

successful to add workers. they need labor and government workers not being so bureaucrat and they also need capital market reform. china found ways to have really low cost stock market trades and debt trades. and ind in the other bombeds in more advanced countries and they need to ball l build that rapidly. >> looking at recent analysis of what the world bank now that you're gone says needs to happen in a lot of the lesser developed countries around the world when growth slows, these companies following the pan depp uk now the world bank is unhappy with the climate drains -- it's.

>> i saw a complaint that a small european country has of the entire subcontinent of africa should we expect third world countries to have the same sort of miss. >> if we look at india, they need a lot more electricity. and that's true of many of the fast growing countries >> they're building cole, right? >> they're also building solar and looking for green hydrogen i think these are really complicated issues they have to be worked through which end up being in the advanced chis and in china and what are you going it do about that >> you hook out the invest in

the bigger missions and bring them down. i think that's one of the challenges to do thoughtful, impactful changes, but it m. you know, all this attention on the "the us is heading radly toward 40 trillion of national debt the fiscal deficit every year drains the global capital markets. >> there's simply not enough capital available and investment going into these poorer countries, that should be one of focus, including indo there needs to be more activity to brung in foreign drk all they do

is buy the wonds of the advanced country government it's translating all the big money. it's not a good way to have growth >> do you think it's helpful in the big picture in terms of helping lesser developed countries? i mean, in the end i guess it's what rich countries want but is it in the best interest of these poor countries when they're worried about the most rudimentary things that we take for granted here that they don't have to me it seems incongruous that that's the way the world bank -- i liked when you were in charge more and you got pilloried for that >> i discuss some of these issues on my twitter account and my linked-in account these are issues i think are going to go on for decades and

de decades. poor people needs some kind of latitude from the world community to do that and that'sus you have to be conscious both as wur putting together a plan. >> you know, for, it's like a drop in the ocean compared to what's happening in india and china. >> and i saw in europe the average weight is going up rapidly, which means world materials are under a giant strain the u.s. has the biggest lithium supplies so developing that in a way that's environment consistent is

really important >> david, thanks >> thanks. >> joe, coming up, pennsylvania governor jack shapiro of getting that collapsed section of i-59 rebuilt. and another governor of florida, ron desantis, is now making it illegal for people from certain countries to buy real estate in his state. it not sitting well with key players in thing about and he'll join us next what do you have coming up >> good morning from miami, andrew overseas markets, we'll tell you about the big battle taking place between the real estate industry and governor desantis with billions of dollars at stake coming up after the break. like your workplace benefits and retirement savings.

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welcome back to "squawk box. we have a fascinating story. a little known florida law about to go into effect causing anxiety in the real estate market and among supporters of governor ron desantis.

we go live to that state this morning to robert frank. >> this is a listing in bay harbor islands, just under $20 million. under this new law it would be illegal to sell to buyers from certain countries. citizens of china would be prevented from buying any real estate in the state of florida buyers from russia and venezuela would be prevented from buying within ten miles of critical infrastructure basically you draw that map and it blocks out all of miami governor desantis says this is to protect the state of florida from the influence of the chance communist party. brokers say it an attack on the all-important real estate industry in the state of florida. florida is the top state in the country for foreign buyers and china is the top source of those buyers were $6 billion of sales

last year. >> it's a signal it sends to international buyers all over the world saying you're not welcome here, your investment is not welcome here and a very concerning item. >> now, to enforce this law, if you sell a house to any of these nationals, you could face prison time or fine a group of citizens in florida have filed a lawsuit to block the new law. unless there is an injunction, this will take effect starting next week, july 1st. guys >> explain, this robert. i understand the headlines that the governor is creating i imagine he must think that is a politically palatable, if not popular perspective. do you have think it plays broadly, nationally, to the extent that he is running for president? >> well, let's see there are now 25 states that have laws either pending or that have been approved that prevent the chinese government or

chinese affiliated companies from buying farmland that all started with that north dakota farmland deal this expands it to buying a condo in miami beach there's a loophole here if you want to rent a house, us can be anywhere you want. for any of the barred countries, the rentals are excluded real estate is the second most important history after tourism. it's already caused an uproar here nationwide including the state of new jersey have passed these laws to the chinese government and that's popular, even with democrats. >> robert, appreciate it thank you. joe? >> yeah, interesting >> it is an interesting one. >> it makes me think of tiktok,

too. do we do it or do we not if you do it, it's like that's a big step but then again, you know, this whole china -- china, china, china, that's all we talk about. next to farmland and our defense and nuclear facilities, does anybody say that's a bad idea? did they suddenly take a real interest in farming? what'sle real reason behind that i don't know >> i don't know. is it a national security -- not national security but you -- the country's a pick they're all sort of a list o kind of bad actors >> the problem becomes we don't like the chinese communist party but it not the chinese people. >> right >> coming up, pennsylvania governor josh shapiro. hen we metamorphosize into our new

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welcome back to "squawk box" this morning take a look at futures they have moved lower just in the past couple of minutes you got some red on the screen it started with some red and it gotten worse by almost 200 points on the dow. >> on june 11th a section of interstate 95 collapsed in philadelphia now less than two weeks later traffic is about to start flowing again. joining me is pennsylvania governor josh shapiro. thank you for being with us

today. second of all, congratulations way to underpromise and overdeliver. when this first happened we thought it would be months when traffic started picking up on that section of 95 again what happened? >> thanks for having me on what happened is everyone came together from the union laborers in philadelphia to the white house and president biden who expressed a willingness to pay for this project to my efforts to cut through the red tape. everybody was all hands on deck and we got it done we were working incredibly hard, literally 24/7 the folks doing this back breaking work never took a break and we were able to hit our marks each and every day and make progress. we also decided to be innovative and not just sort of wait on the traditional steps that would have taken months and months and months but instead took innovative approaches to get this road reopened we know that 160,000 motorists

go on 95 every day we know that as long as it was closed off it was choking off comm commerce, for families, and i this i this is an example of what we can do when we come together and support organized labor and smart government and try and cut throughout tlohrough the red tape and focus on getting things done. >> you got a little help from nascar, too, lending their technology to help when the weather wasn't cooperating >> i'm glad you raised that. this is part of our innovative approach we needed about a 12-hour period of dry weather in order to do the final stages of paving and striping and the weather here himself been a little bit unredistrict we reached out to our friend at polk now and use

today could keep the world dry so the great crews at buckley and company and others were able to do the striping and the final steps of road there from the local restaurants stepping up to here in philadelphia to our contractors. even our lawyers who just, like, cut through the red tape and got it done, all hands on deck including an assist from nascar. >> it's great to see you were down at xfinity live getting some wings yourself. governor, let's talk a little bit about, you know, what this means. when will it actually open, this weekend? >> it's going to open at noon today as soon as i finish up with you i'm heading down there, we're going to get the road reopened today, and six lanes of traffic, three north, three south we'll have traffic flowing again in time for today's rush hour and weekend traffic, and then we're going to immediately begin

working on rebuilding a permanent bridge around this so that we have no interruption to traffic while we build the permanent structure. that's the innovative approach we took. in order to get this opened quickly, and by the way, we got it open in 12 days in order to get it open quickly, we had to take this innovative approach now we go about building the final permanent structure, and there will be no interruption to traffic during that process. >> you are the governor, but not new to the political scene you were in montgomery county for a long time and got involved in lots of things that might be particularly of interest to our audience too, and i'm talking about wall street funds. you made sure a lot of the wall street funds were kicked out of managing pension money for state and local employees and you're trying to do the same thing to pennsylvania at large. i want to talk about why you think wall street funds should not be in there. >>yeah, and look this might not make me particularly popular on your

show, but it's what i believe, and it's these smart folks wandering around wall street, but nobody is smarter over the long-term, and if you are focused on a pension fund, so i took this approach in large counties in pennsylvania to basically divest our pension fund from the active manage and go with passive management, and we went with vanguard, but there are options out there, and what we found is over the last decade taking that approach, we be far better than the active management of our two major pension funds in pennsylvania. one is called surs so i'm trying to do the same thing in this commonwealth i don't think we should be wasting millions and millions of dollars on wall street money managers when we can be investing in a more passive way

and creating greater stability for our retirees in the commonwealth of pennsylvania, and again, i realize it probably doesn't make me very popular on your show, but it's what i believe, and it's proven to work here in the commonwealth >> you wouldn't be the only person saying that either. >> you got a solution to some of the big things happening the tourism industry, and my daughter went to penn. i know about kensington and the open air drug -- it's nightmarish what we're seeing in a lot of our biggest cities. do you have any idea how to handle this? >> i do, and i've put forth a nuc number of plans, and i think you've got to think of this if a multipronged approach. i'll be quick. we've got to invest more in law enforcement. we have to hire for police, and be safe and feel safe, and safety is at the core of this, making sure we encourage businesses to reopen, and also look to put more residents in

our downtown areas so we have activity in those downtown areas. we got to make sure that people living in our cities can send their kids to quality schools so that they stay in those areas. so there's a whole host of things that we need to do. there's not one single answer, but we're coming at this in a multidisciplinary way. public safety, economic development, good, quality education for our kids you can't make those changes overnight, but that's the stuff i'm working on every day as the commonwealth's governor. >> governor shapiro, thank you, we appreciate your time. >> thank you >> and ain, ngtutigacoralaons on getting 95 back up "squawk box" will be right back.

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welcome back to "squawk. losing ground in just the last 30 minutes or is joining us is stephanie lang, chief investment officer good morning to you. can you explain what you think is happening here in the markets? we have been taking a tumble the last couple of days here >> well, i think that if you look at what's been driving the market, it's really been this ai tech boom that has had very strong earnings that have led to multiple expansion, and now there's a question of whether

that earnings can remain that robust to support these mu mult multiples. so you also look at the broader economy. i think we've also been surprised at how strong the job market has been, and of course, jay powell's come out this week and has said, we're going to be raising rates much longer and inflation remains our priority so even if that means a weaker job market going forward, so i think those are two things that are on investors' minds, and cause some weakness this week. >> are you in the camp that jay powell is ultimately going to raise rates more than just two more times >> you know, they have been pretty good at surprising everyone on the upside, and i think if inflation remains robust, and the economy remains in this kind of nice range that we've seen, i think they could continue to raise rates. i think globally you've seen central banks really surprise on the upside because inflation has remained stickier. so i think, you know, base case is two times, but i think it

could go further if inflation stays as high as it's been >> when the clock ticks 9:30 this morning, what are you thinking about doing yourself? >> well, we're diversified portfolios and we're staying put this time and we're going to be watching the economic data, but remain a little bit cautious looking forward because we have been in the high recession risk camp, and so we're waiting for that data to change before getting more aggressive, but, you know, what we have been encourage clients to look at is if they're willing to take on il illiq illiquidity, loans are moving up in the private markets and we want to take advantage of what the market has given us. >> okay. stephanie, it's good to see you this morning appreciate it. joe? >> thank you thanks, andrew a final check on the markets which have worsened in the last 45 minutes or so we have the dow down over 200

points it had parroted its losses a couple of hundred times. the nasdaq, a pretty big percentage loss there. a quick year at the ten-year it hasn't been the story for most of the week as you can see. it's been right around 3.7%, and make sure you join us all the way until next week as it's friday "squawk on the street" is next good friday morning. welcome to "squawk on the street." i'm here with jim cramer, and the new york stock exchange. the s&p is on pace to break a five-week win. russell reconstitution today will likely bring the biggest volume day of the year now beginning with this run, all three major averages set to break multi-week streaks the nasdaq is on pace to snap eight weeks of gains and post its worst weekly stretch since april. >> plus,