candidate spending and a big moment of tiktok and high heels. all kinds of talk. it's thursday, november 9th, 2023 "squawk box" begins right now. good morning welcome to "squawk box" here on cnbc we are live on the nasdaq market site on times square becky is off today i'm andrew ross sorkin along with joe kernen and melissa lee. the dow would open up 90 points higher treasury yields. the ten-year yield at 4.5% we can talk about energy as

well wti at 7 $75.93. bitcoin is up at $36,7911. >> why tom farley our friend among three trying to buy ftx. it might be up katie was on yesterday katie stockton if it got to $36,000, that would be the next stop no news yet. hollywood actors reached a labor agreement. eco the ecocommittee approved the d yesterday afternoon. details of the agreement have not been made public we will talk about that this

means for the tv schedule with puck news matt belloni in the 7:00 hour. >> lots to talk about. senators romney and manchin releasing the fiscal stability act. that is absurd they are so unstable a new commission of senators and house members and outside experts tasked with finding solutions to reduce the national debt can you say simpson? we tried this before the senators are going to join us senators romney and manchin will join us at 8:30 a.m. we look forward to seeing both of these gentlemen and hearing about this we hope we have more luck than the last time with ssimpson.

>> it seems the senators and representatives should have been tasked to find a solution. they are waiting for a committee to be formed >> the inflation reduction act that was a funny name. this, to me, sounds the same fiscal stability act it is like -- it shows you where we are at $33 trillion get debt-to-gdp has not been as high. and let's talk about this given what happened. fireworks at the third presidential debate on nbc five candidates squaring opff with trump sitting out

there was a fiery moment with haley and ramaswamy squaring off. >> her daughter was using the app for a long time. >> leave my daughter out of your voice. >> the next generation of americans are using. that is the point. you have her supporters propping her up >> you're scum >> we will show you what candidates said about tackling reform he called president zelenskyy a tha nazi at one point. >> not to mention the competing circus of trump nearby >> we will have mark sc short. his belief is ramaswamy is a

stalking horse for trump i like the new twitter i like to see funny stuff. one thing was pretty good. nikki haley is dick cheney in high heels she wasn't the only one wearing three inch heels >> is this a disgrace? >> it's politics. >> it's not politics it is taking the entire country to the gutter. that's what it is. >> it's all trump's fault. he took us to the gutter first >> you think >> yeah. i'll say it first so you don't have to say it. >> thanks. shares of eli lilly jumped after the government approved the drug terzepide

the active inn ggredients in the drug >> monjaro for diabetes. it is the same compound. >> the drug has been approved for the treatment of type-two diabetes for monjauro. it sounds like a movie lilly will market the drug as zepound. for use by people who have obesity or overweight with one weight-related condition the cost is $1,060 monthly it is an injection, that is one problem, once a week a late-stage study found those

with obesity, but not diabetes, lost 16% of the body weight at the low end of the dosage and 25%. the names should go along with the songs. like o-o-o-ozempic you remember the first time this was done exxon searched far and wide and two xs had not been used you don't want to name it one of the cars was the word for fart you remember that? >> wasn't it nova. >> you don't want to use something. >> eli lilly stock up 3%

>> most valuable drug stock in the world. >> the full readout of the novo nordisk is the number two value. that will be released this weekend. there are a couple of catalysts. >> $587 billion for eli does not include included in that you think of the other with merck and pfizer 5% yields. >> they supposedly have been losing the value of the bond >> pfizer has a high yield because the stock has come down. 5.3% $30. down from the high of the 50s. 55 it's at $30 right now. talking about the more you

know s softbank with the net loss of $2 billion. the fourth straight quarter of declines net revenue above estimate the vision fund posting its expect straight quarter of gains thanks to the sale of arm to one of softbank's subsidiaries it tanked on wework. weakness in the yen over the dollar denominated debt and the cfo shadaid he believes the bank has seen the worst and is moving to profitability part of this is moving money from one pocket to the other given how that arm deal happened arm holdings delivering results and delivering a beat on

the top and bottom line. the stock is off 5% right now. the slowdown in demand for smartphones and timing for licensing deals is the issue with the ipo price of $51. instacart out with the first report as the publicly traded company. up 14% year on year. the q3 loss of $2 billion is not as bad as expected quarter forecasts is trading 9% below the ipo price. the after hours action had gone up 7% and gave all that back after people realized the top line growth would not be there >> it is complicated that's unclear the advertising piece and all that that only can work if everybody is on the app buying stuff everybody sits and says it is fabulous with the business

model. it is connected to the whole business. coming up, we will talk about disney shares on the rise after earnings beat estimates. $2 billion of additional cost ku cuts we have comments from bob iger st straight ahead and what nelson peltz may say. and representative kevin mccarthy will join us live you are watching "squawk box" and this is cnbc

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welcome back to "squawk box. disney beating the earnings expectations here is bob iger talking about hulu >> we feel good about it hopefully reduce churn and create more engagement which is good for advertisers we have advertiser supported subs for hulu. >> we have our guest here with us at the desk good morning >> good morning. >> the stock is up if you are nelson peltz, is this enough for you >> bob iger sis a leader. he has done a lot in the short

time he has been back. you cannot cut your way to growth a lot of the after market with the content and expenses is great, but you have to focus on the narrative. >> how do you think he gets there? what does he need to do? we keep hearing about the possibility of the espn deal the hulu piece has been figured out. at a time when advertising is not exactly a very strong place to be. how does that play out >> there's a lot in there. on advertising, the strength in the market is in sports, which obviously espn is a big part of and disney plus will go into they all will. max and netflix, et cetera viewers have gone away from

traditional television other parts of the business is hulu and disney plus should help on espn, give bob iger credit for recognizing the problems and discussing them openly disney owns 80% of espn they could bring in one or more equity investors or strategic investors for 36% stake. we value espn between $24 billion to $34 billion the best case is get the sports league in or tech partner like amazon >> let's say they do that at your valuation is that baked into the stock >> no. it's unclear if a league would come in. >> let's say a league would come in or a transaction comes in at

the valuation you are talking about for espn what happens to the value of disney >> it does help a lot. any partner coming in would strengthen espn. that's what bob iger is looking for. content or distribution. technology partner could take it global a sports league could guarantee more content, but maybe more content. >> i'm trying to understand what you think the stock is worth in that kind of environment it doesn't matter who the third party is is it 110? >> that's an amazing number. >> 110 based on that happening >> no, it is not the stock is de-risked all of the negative news is in at this point, potentially good news to come

the industry is in a transition. disney is not immune bob iger is a tremendous leader. >> for how much longer >> a couple of years, maybe. >> really? >> what about ike and nelson >> hard to know what they want you know, i don't think -- >> if shareholders called you and said they want to get on the board, that is a good idea or harmful. what would you tell them >> obviously not my decision >> i know. people would say is it helpful to have activists on the board is that a good idea or bad >> in general, it is a good idea to have somebody driving the shareholder value. >> can we talk about the strike for a second >> absolutely. >> how big of an impact will that have in terms of -- now this has been set, how quickly will production start? what does it do to the schedule

come spring or summer or next fall >> content licensing for disney and warner bros. was down because there was no production for months. >> it will impact comps next year >> it will be helpful as they have content again to sell what is interesting is that the content spend for the industry is coming down overall even with higher cost with talent and labor. everybody has a chance to see how much they are spending one thing disney said is content spending will come downfrom $2 billion to $27 billion the mistake by labor is it gave a pause to everybody and the spending like drunken sailors is over. >> if you could own one of these stocks, which one? >> at these levels

>> warner or disney or paramount? >> she just downgraded it. >> i know. >> warner bros. discovery provides the most upside we like disney and netflix >> what has to happen on the warner side? >> they have done an amazing job. they are leveraged to an upturn. nobody has taken apart the old time warner as the current management team. to the extent to grow with advertising and film or games as they develop, their library has not been used like every other company in the industry. they really have gone through everyone else. including disney it is remakes. >> were they just being too cautious of the ad market for next year? >> they were open about the challenges no visibility. the growth is in sports and they

have that. there is just no visibility to the extent that advertising comcome back >> jessica, thank you. >> thank you so much >> nice to see you coming up, former s.e.c. vice president tom farley is among those looking for the acquisition of ftx. and en wthe will hear from roger ferguson "squawk box" will be right back. tired of people not listening to what you want? it's truffle season! ah that's okay... never enough truffles. how much are they? it's a lot. oh okay - i'm good, that - it's like a priceless piece of art. enjoy. or when they sell you what they want? yeah. the more we understand you, the better we can help you. that's what u.s. bank is for. huge relief. yeah... ♪

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time for the executive edge. a company run by former nyse tom

farley is in talks to reboot ftx. the wall street journal reporting the company called bullish is partnering with truth group to buy the remnants of ftx. farley is backed by lewis bacon and peter thiel. >> farley pointed out the former president of the new york stock exchange is a bitcoiner. stocks, bitcoin. a lot of people think they are polar opposites. we asked him about that many times. are you nuts he always defended himself we know peter thiel. we have known him for years. tom farley gets involved in a

more significant way with bitcoin. does that account for the rise in bitcoin today >> no. >> technical >> all of the applications for the etf. the expectation of something will happen. >> that has been going on for a while. one of the things trending on my feed is bitcoin etf along with trump's vp that's something to think about, isn't it >> sure. >> maybe we'll ask mccarthy or biden's vp shares of roblox jumping 12% after revenue beat estimate. they have two metrics. daily active users were up year over year. the company ceo will join us in the 8:00 hour in the interview david baszucki will join us.

what is his name he has a great name on roblox. my kids used to play and would see him in the roblox universe. >> that is a cool name coming up, reaction to last night's debate -- >> builderman is his avatar. >> the gang of five? the fabulous five? that's all that's left marc short can now talk about this his guy is out mike pence is out. now marc is coming up. and later, we will hear from representative kevin mccarthy. that interview at 7:45 "squawk box" is coming back. >> announcer: executive edge is sponsored by at&t business

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good morning welcome back to "squawk box. we are live at the nasdaq market site in times square

the s&p up four points this morning. nasdaq down ten points before recapping the news we are told you about, senators romney and manchin to propose a new fiscal stability commission tasked with finding solutions to stabilize and reduce the national debt. senators romney and manchin will be with us at 8:30 a.m. this morning to talk about the new bill >> there's growth and more taxes and cutting something. it just doesn't seem like the plan can't be different from sim simpson. >> there are not many options. >> you have to cut some stuff and attach some more >> growth would be good. >> growth is helpful you have to collect some of

that >> right growth we'll talk about that more later. these guys, like mccarthy, republicans don't want to do that with the irs. democrats want to do it. it is funny to see it is a partisan issue it should be something simple. you should have enough wherewithal to collect the taxes that are owed. no doubt about that. republicans see this scary, obama weaponizing and the democrats see a way to cure income inequality and balance the budget take carried interest and this and our problems are over. >> turn it around and say it is like having the police -- do you want to defund the police? >> assuming the crime-ridden neighborhood

>> you are right. >> i don't think we're in a crime-ridden neighborhood >> i think the entire country is in a crime-ridden neighborhood. >> you know ways with the rich people that they got all kinds -- they are not just a avo avoiding, they're evading in your view. i don't think that many people are evading. >> so you don't want the police? >> i don't think we need as many police we don't need police on every corner. >> we don't have enough police to begin with. >> mccarthy will be on you ask him today. he is the guy who said we don't need another 87,000. people say that is a fake number that is over ten years >> it is over ten years and replacing people who are retiring so that number is not a factual number >> the old speakers uses that. the new speaker wanted to use some of the funds to offset

israel support >> it doesn't offset you lose the revenue >> he will be here i want you to just -- he may cancel if he is watching right now. he may be so frightened. >> we have been interviewing kevin mccarthy so long he can handle it last night in miami, republicans sparred in the debate among the issues discussed, reining in spending on social security and entitlements. >> three things that go into determining whether social security can be solid or not retirement age, eligibility for the program and taxes. that's it. we are already over taxed in this country we should not raise the taxes. i don't know if out there tonight and if you are watching, warren, i don't know if warren buffett has collected social security if he is, shame on you

you shouldn't be taking the money. >> we should limit benefits on the wealthy. limit the benefits on the wealthy. expand medicare advantage plans. >> if we tame the tiger, the way we do it is not by picking on senior whose p we do it is not by picking on senior who who paid into the program. you have to grow the economy >> joining us is marc short. former chief of staff to mike larry pence. marc, it has been a while. good to see you. we had your former boss on a number of times where he has not only touched the third rail, but jumped on the third rail and has been talking about evntitlement and social security reform he is not in the camp of wanting

to address that. you can hear the candidates still are in denial that we need to do something. >> joe, reality is it is not a choice we are $33 trillion in debt. 74% of debt today is driven by mandatory spending and annual def deficits we cannot hide and pretend the problem doesn't exist. within a few years, you will have mandatory cuts to social security and medicare. people who do nothing will hurt recipients the most. joe biden and donald trump's decision is the same to do nothing. some of the candidates on the stage said the same thing. we need leaders who are willing to step up and address the problem. >> the age old problem, marc if you say something and you can't get elected, you will not govern vice president pence wasn't up

there any more i'm not saying it was because of his stance on entitlements, but it takes courage you may end up imploding or not being able to win an election if you take that tougher stance >> yeah, i think the difference is if it was ten years ago, you had the democrats run the ads against paul ryan saying push grandma off the cliff. the reality is the ougautomatic cuts are on the horizon americans want to have real leaders and not putting your head in the sand today, when you have interest rates where they are for the first time in decades, americans are feeling the real cost of out of control spending. so, there is no better time to tie that with the average voter saying what you are seeing in inflation is driven in part by

the reality of the debt and spending is out of control let me help address the problem by addressing spending and bringing down inflation. >> let me ask you about something else we were talking about before the interview that is and i understand this ab about similarry summers. nobody wants to raise taxes. what about collecting the current taxes from the regime we have bringing in the billions if you were able to do that what is the pushback from the republicans based on funding the irs? is it based on a muscle memory from lois lerner? >> the recollection the irs has been abusive i think a preferred course, joe, that we are not talking about,

is a simple flatter tax that doesn't require as big an irs. i think we should advocate those not paying taxes should pay. how about a flatter tax code that is simpler so you don't need a big irs to collect the taxes. >> okay. we get a candidate to run on a flat tax and on reforming entit entitlements is there something below 1%? a movie called less than zero. >> you know, joe, as i said, i think americans are ready for people to have honest conversations. in the past, entitlement reform is in the works. i'm not of the next if you don't explain to the american people, they won't comprehend it >> marc, i want to go to the irs

question we have been talking about it all morning. for a year now >> since it happened >> i appreciate you have a perspective about a flat tax and effectively changing the system. given the system, for better or worse, doesn't appear it will be changed any time soon. it seems everything the party represents not to have accountability on the taxes when we havhave vehemently tudefundih police there were people who thought they were being pressured and mistreated the idea you want to defund the police for the country's tax base seems against the idea. we talk about what you want to

do about immigration and is this a country or not you would like to prevent that from happening you talk about law and order and when it comes to taxes, the one thing to help us deal with the debts and deficits, it is no, we would prefer not to do anything about it even better consumer producpteco protections, but consumer being able to call the irs and deal with that. >> andrew, let me stipulate that we should have people account able in the court of laws. >> the irs says explicitly they don't have the resources to do it and everybody who has scored these things and it is proven over titme when people made investments in the irs, they created additional revenue there is an opportunity for

growth in collecting additional dollars. it may be the republican party doesn't want to collect additional dollars and wants to star starve the country of money. that's a different argument. >> there is a mystique out there of the billionaires not paying taxes. the reality is most of the billionaires have afforded significant tax lawyers who have the car of carveouts the comparison to defunding the police, which is a stretch, because we want to have our communities protected and comparing law enforcement to an irs tax collector is something that most draw comparison. i'm stipulating your point that people are not paying taxes should be held accountable i'm not saying we should build a bigger irs to balance the

deficit. >> good debate those are some -- i think -- i like them. if i were you, i would use the same ones. marc that was good. the republicans want to defund the police that's basically what you are comparing it to. you love law and order you hate the southern border, but let the fat cats get away with buying a yacht and getting away with it. >> thank you, again. >> you're welcome. i appreciate your arguments. we both try. coming up in the next hour, we will talk to former house speaker kevin mccarthy on "squawk box" when we return after this

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welcome back to "squawk box. we will talk about the state of wealth in america with robert frank. we will continue that with wealth it is all connected. >> it is all connected, andrew when you talk about wealth, americans added $37 trillion to wealth since 2019. total net worth rising from $117 trillion to 154 at the end of june the past three years is the largest and fastest wealth boom in recent history. we saw inequality decline in recent years the median net worth of households jumping 37% that is the fastest since the fed started keeping data in the 1980s. where did that come from stocks and real estate fueling that growth.

value of stokcks held by individuals grew by $9 trillion since 2019 value of homes grew $16 trillion thanks to home prices. jpmorgan chase says people may say less now but continue spending by drawing down the wealth they estimate it adds up to 4 cents. every additional $1 of household wealth to generate 4 cents of additional spending. that implies $1.5 trillion of added spending power that the american consumer has right now. tapping that may be easier because so much in money markets. on the financial side, there is a lot of dry powder or reserve tank for the consumer. >> if interest rates are not zero any more, is there any way we see this wealth creation repeated in the next five years?

>> not at this level or pace >> zero helped, did it not >> zero was the reason >> this almost is proportional to the size of the fed balance sheet of the percentage gained >> you have to have a wealth tax and you fix the problem. >> wait a second we did see inflation dollars are worth less >> no question in my mind that wealth growth at the top and middle bottom will be slower in the coming years especially as it relates to financial growth if interest rates come down, home prices will shoot up higher that home wealth >> is that inflation adjusted? >> none of that was inflation adjusted knock off 5% or 6% >> where do you live >> 37% increase in wealth. >> i know. you knock off half of that you go to the store and instead of the butler buying all your food

go and check it out. everything costs $8. package of cheese costs $8 >> homes cost more. >> for now until they don't robert, thank you. "squawk box" is coming right back after this. cheather patterns are impacting the way we live and the value of businesses large and small. this can mean disruption to supply chains, changing demand for products and shifting regulation. what does this mean for your business, your clients, and your investments? ice offers data and markets that can provide critical insight. manage your climate risk with ice. this thing, it's making me get an ice bath again. what do you mean? these straps are mind-blowing! they collect hundreds of data points like hrv and rem sleep,

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the fed is reportedry reporting morgan's wealth business to prevent customers from laundering money. let's bring in our guest always good to see you i don't know if you have thoughts on this piece of news there's a lot going on with morgan stanley with the new ceo incoming >> this was news from 2020 this is kyc for all wealth managers so i don't think this is a material effect on the stock but to morgan stanley, you have a new ceo that took the big

un uncertainty out. so we feel that's the right business you want to be, especially in an environment where you have a new ceo that came from capital markets, a 4% dividend yield why not buy companies growing their dividends at 10% and 4% today? it's a good pick for us. >> a big piece to any of the financials is the direction of rates and even james garman said once rates turn, we'll see a huge turn in m&a is the fed done at this point in december >> every ceo says it's the uncertainty of the rates, but we feel rates higher for longer once you take that, you'll

seymour activity and that falls right to the banks then couple the wealth management and so for us, you have free option value, capital markets, ipo activity, and that has rouge returns on capital when it happens. >> are you any regionals >> very few. >> why >> more so because the net interest income. we have a lot of cash sorting there and you don't have that potential upside, because they don't really par take in a lot of that. >> let's get to yuber. we had lyft earnings where do you see this, uber as a lot of the other usinesses, bu that proved to be a good business model >> uber's capital allocation has been fabulous. y uber 1 is improving rapidly. and uber is also international so you put that together with a

great brand. then you have a couple of other options. they have advertising that's picking up the other piece of the business is freight so either they do something with freight, or that starts improving. uber has done everything they said they would were going to do they have a new cfo focused on c cash allocation. >> charter is your other pick. i want to pivot a little bit and hit disney first i'm curious, the stock has a good reaction, up almost 4% in the market at this point on the cost cutting bit of the news >> kind of an interesting story. they're spending more but they're going up because of cost cutting. we like disney, too, but it will take time to sort out. the focus is where are the costs and how do we get that especially when you have people watching their stock you go back to charter they're spending money now for

the future the market hates that at this point. if you get great aloe locallocat hasn't been this cheap in decades. the reoccurring business of charter is fabulous. they're building out and teleco is having a hard time returning to capital i like that. the other ones have much more short-term catalyst. >> thank you coming up, we'll talk to former house speaker kevin mccarthy about the odds of a government shutdown. and later, senators mitt romney and joe mancn llhiwi join us live at 8:30 eastern "squawkbox" will be right back

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good morning welcome back to "squawkbox" right here on cnbc we're live at the markets. u.s. equity futures at the hour, we are in the green on the dow, about 41 points higher things have come down a bit. the nasdaq off about 11 points

the s&p 500 up about 3.5 points. treasuries, the two year and ten-year at 4.51, two-year sitting at 4.94ed, bitcoin sitting at $36,000, moving up quite a bit. the congressional budget office out with some new numbers yesterday afternoon, confirming it was an historically terrible year for the deficit steve liesman joins us with a look at the road to $2 trillion in the deficit, which was supposed to be half that when we started. but rising interest rates has a way of changing that calculus, steve. >> that's just one piece of it it was a miserable yoear for government financials. it's likely a sign unfortunately of things to come. the deficit was $1.1 trillion bigger than 2022 when you

include the reverse of of the student relief plan. the decline was the biggest part because of a tough year in the stock market it was the biggest drop, by the way, in revenues, as a per sent of gdp every recorded. med that was driven in part by higher cost of living checks from higher inflation. we go on, expenses, they pushed up the deficit by $177 billion only $$169 was from increased spending you had $ 107 billion less in revenue from fed bigger tax refunds than normal along with delayed tax payments to be logged in 2024, but the center for responsible budget says -

>> how do we do that ken smetters says, the budget outlook is so bad, the only way to solve it is a 40% increase in taxes now and forever, a 30% decrease in spending now and forever or a combination of the two. he says -- >> it's one of the best private sector models out there for the budget the model expects interest rates to continue to rise at first slowly three year from now, we will spend more servicing the debt

than we will on the military tomorrow at 1:00, i'll be talking with mary daley. >> i have a lot of thoughts. one is that a rising stock market is good for america for a lot of reasons, and a lot of times we hear that it's only benefitting the one percenters, but a lot of the taxes come from a rising stock market. and what causes a rising stock market a lot of times it's better corporate earnings so when these big companies do well, for whatever reason, when wall street is doing better, it just all pitches in to having the country do better. and it would be good -- we hear certain politicians, you know, say i want to -- from the middle out and i don't care about these corporations and big corporations, but you're not

paying their fair share. it's important that they do well, and that's where a lot of the -- that's a lot of where the golden eggs come from. they're part of the goose that lays the golden eggs we want higher stocks. can you believe that, in a flat stock market what if we have a flat stock market for three, four years like some people think because of this new interest rate environment? we're not going to be able to count on that tax revenue for four, five years, steve. >> it's all good if we were to bring spending in line with the revenues coming in >> we just talked about the idea of not spending as much on nondiscretionary it's just a nons.t.atarter withh parties. >> i'm interested, you have the manchin/romney discussion coming up later let's see how they want to do it nobody can touch it, joe i mean, what's sort of amusing

is, this election is likely to put at least one of the two second-term presidents in, perhaps a second-term president not running for office can address the entitlement issue, can address the revenue side of the story, which has got to be a piece of it. you listen to kent smetters, it seems almost impossible to solve this problem from a spending side, and it looks like there's going to have to be some compromise, which, you know, it's a bit like this, joe. you know, the "titanic" is headed for an iceberg. we still have control of the ship, but they're kind of fighting in the captain's tower. >> let's raise taxes on billionaires that's not going to do it, steve. you're not going to be able to use 450,000, as i won't raise taxes on anyone below that either

>> but joe, you bring up a problem like that. i'm not saying you're doing this, but one could bring up a problem like that and find a solution what do we have to do? we have to broaden the base. when we can broaden the base, in part, and also we can do a little more -- >> what is the name of her outfit again [ inaudible >> yeah. when i hear that, i laugh. it's like the name of this act, the fiscal stability act >> you're not laughing at me >> i'm laughing at the irony of that name, and i'm laughing -- it's the "inflation reduction act" all over again. >> you know, joe, those graphs we have about the mess around and find out have you seenthose things? that's what happened when we relied on long-term -- on interest rates being low for a

very long time >> i know. >> what's that >> it was fun while it lasted, those zero interest rates. we have to go. we've gone way too long. >> never happens let's bring in roger ferguson. great to have you with us. i'm sure you've been listening to this conversation about the deficit and the impact on long-term interest rates i understand this is the fiscal side of things, the fed is kerned with monetary poll circumstances but there is an impact on the economy. how do you thinkable that longer term problem >> the reality is that the fed is going to stay focused on its mission. it can control inflation by driving interest rates unfortunately, i think they perhaps mean to move a little higher that leaves the fiscal side to manage through it. it would be very unwise for the

fed to say we must be done now, because we're imposing too much cost on the fiscal side of the house. there are some other ways to fix that problem that you have been talking about, obviously income taxes, increasing revenue, broadening the base, spending more wisely. that belongs to the elected officials. they asked the fed to look at interest ratings and inflation, and that's what they should be doing. >> there's a notion in the masks that the fed is looking at financial conditions and managing that. there's a needle to be threaded, and the reality is that the goldman sachs index last week saw its biggest weekly drop since 1990 should investors be concerned? we did see the s&p 500 go up more than 6% when the ten-year yield gave up 50 basis points. >> look, i think the fed is taking notice of it. president lori logan talked about the concept of retracement

and saying she has to watch closely. we heard from chairman powell that, you know, the tightening of fiscal conditions, mainly with the ten-year rate, could be doing some of the fed's work so yes, this loosening of financial conditions will still be a conversation at the december meeting and it's one of the reasons why the decision meeting, contrary what the markets believe, is still at least a live meeting. not definite, but the probabilities of a possible move there are higher than the market currently expects. >> it's a 90% no move that's priced in, but you think the markets are get thing wrong giving the easing of financial conditions we have seen? >> i think so. we have haeeard a number of the

talking about having an open mind tom barken, president bostic from atlanta, barken from richmond, kashkari from indianapolis december not yet prejudged, there are two inflation reports to come in so i think there's a fair amount of data for the fed to chew on between now and the december meeting. >> rojer, thank you so much. coming up, retail investor sentiment high at the start of 2023 it looks like that interest is starting to dwindle, not surprisingly we'll discuss that after the break. and later, former house speaker kevin mccarthy is going to join us to discuss a lot of different issues last night's debate, the chances of a government shutdown and

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robin hood reported trading volumes have dropped 16% in the latest report, demonstrating a trend hurting brokerages right now. to talk all about this is a "wall street journal"ist reporter and a cnbc contributor.

is this a robin hood specific issue or an across the board issue? >> thanks, andrew. i think robin hood is certainly getting hit the hardest. this was the brokerage that became known as the flashily trading app associated with mean stocks, but brokerages in general are seeing this, as well charles schwab saw its monthly active users fall to some of the lowest levels since 2020, 2021 people aren't trading as much. this is a very different environment than the one, and they're all really feeling the heat right now people simply aren't trading as much i hear from individual investors that a lot of the thrill from trading stocks has disappeared guess what seems more exciting money market funds that's bad news for companies like bitrobin hood

and what a ride for crypto a lot of key traders got burned big from ftx's collapse. a lot have been reluctant to weigh back in, even though bitcoin prices have been rising. some of the stats for robin hood where transactions in crypto in particular dropped 50%, way more than the drop in revenues from options or stocks. so you're seeing some of that speculative mania we saw during the pandemic, it's just come off big-time that's what you are seeing in robin hood's resultis right now. >> when you look at the retail brokerages, is there one or two that will weather the storm? given the valuations, where does this all go? >> it's so interesting

robin hood in particular has really tried to turninto this financial supermarket trying to become known for retime offerings, high-yield savings, et cetera, but it hasn't been able to move beyond that it's still relying on these transaction revenues from stocks, options, and crypto. it's unclear how that evolves. is it able to build that base of wealthier consumers who are going to keep their money there in the long-run, rather than in the place of active traders that it made so much money off of during the pandemic. unfortunately, those types of traders have learned that one, it's tough to make money in the stock market a lot learn that trading can eat away at their returning. so it's unclear how that evolution comes. >> thank you is this like a 2002 or 2003 experience

you remember after everybody was trading, the dot com mania, then the market fell out, and everybody said this isn't fun anymore. and by the way, the stimulus checks aren't coming, and here we are >> if the entire deficit grew, that speaks volumes, doesn't it? who's going to sit around at home and play around with -- it hasn't helped that the mean stocks are -- is anyone on reddit anymore talking about snit >> the volume of traffic on that kind of stream or feed is down, clearly. >> twitter feed has been quiet it may not be mine any way coming up, after 118 days,

the hollywood writers are back to work. and the dow is looking like this, the nasdaq feeling a little pressure, down by two >> time now for the trivia question -- the answer again "squawkbox" returns. out medical bills. good hands! hospital bill for prime?! gaaaaap! did you just say gap?! he's talking about expenses health insurance doesn't cover. good thing coach prime knows about...say it one time! aflac! because aflac gets you money to help close that gap! now how do we get this goat outta here? (whistles) aflac! meet one of my new homies! gaaaaap! get help with expenses health insurance doesn't cover at aflac.com. elephant would've been scarier. (♪ music ♪) doesn't cov(♪ ♪) aflac.com.

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and now the answer to today's aflac trivia question. what does the acronym ntsc mean? the screen actor's guild union in hollywood, entering an agreement to end the strike. where is this all headed, matt how quickly will construction get started and how did this happen >> the construction will start almost immediately, at least the mechanism needed to start production we probably won't see cameras shooting for a week or two but people that are on shows got emails last night, minutes after the resolution was announced to

start production again it was a while wind day. the studios essentially said, give us your answer by 5:00 p.m., there is a deal on the table. we think it's great. you guys have said this is what you want they finally took it >> in terms of the winners and losers in this, how do you see it at this point >> well, a big caveat, because we have not seen the exact terms of the deal yet. it still has to be voted on by the national board tomorrow. after that, they will release the full details but i interviewed the lead negotiator last night for the town podcast we talked a little about it. they say this is the deal that has a billion dollars in value they say this is a deal that gives them unprecedented protections in ai. it came down to ai at the very end. there was a debate over what images down used to create synthetic performers, meaning actors that are not real, that

studios wanted to use the imaging of real actors to create fake ones, and the guild did not want that without come pepensat for that they say they're getting streaming bonuses, meaning extra money when a show is a hit on streaming, similar to what the writers guild got. they say they're getting wages that are going to increase above what the other guilds got. the others got a 5% increase in wages. actors say they're getting more than that. so we'll see the details, but it sounds decent. >> when you think about all of the cuts that we're seeing in terms of spending, and you saw disney spending $27 billion a year to $25 billion a year in terms of content $2 billion by my math, if a film or a tv show were to cost, you know, $50 million or in some casing $100 million, that's 40

projects or 20 projecting, somewhere in between 20 to 40 projects a year are now effectively off the table, and all of the actors, all of the writers, all of the crew, all of that goes away and then you multiply that by all the other studios that are likely to do the same thing. how much of this is really an improvement? >> well, we're in the middle of a massive correction in hollywood, after the decade of the peak tv bubble where the streaming services ran up the level of content productioncedes this was happening before the strike many of the issues in the strike are relating back the that correction, and the guilds wanting protection in this kind of bubble popping environment. your question is interesting, because obviously these deals are going to increase the cost

of shows and movies to make, and how much of that is going to butt up against this movement to cut costing we're seeing, and it could exacerbate the reduction in the content that is made. i think that's a very real issue, but it's something that the guild said this is an existential moment for us, and it's not just financial. these ai projections, you can't put a dollar value on them they believe this is something that will pay dividends to them for decade toss to come. >> in terms of production, on the other end, what's going to be the missing piece so is it from january to march that there is going to be a barren shelf or what will be on the streams sites and the like >> the first six months of 2024 are going to be noticeably

higher you're not going see a lot of movies in theaters, at least the big budget ones in february, march, april some were moved from november to december into that corridor. the fact that last weekend was one of the lightest weekends of the box office, because the sequel to "dune" was moved to march. so we're seeing that hbo is having one of its lightest months of contenl because a lot of that was moved and they couldn't put out the "true detective" show with jodie foster, because there was no jody foster to promote it. so we will see more of the impact of the strike the question is whether that will hit the bottom line of these companies or whether the consumers will notice. >> mad, thank you for joining us this morning it's been quite a ride

i'm sure we'll be talking to you soon again but hopefully on a new topic thanks still to come, former house speaker kevin mccarthy will join us for the latest out of washington as a government shutdown looms we're getting into the holiday spirit as we head to break is that coming up? this is a live shot of the rockefeller scenter christmas tree this is beautiful. >> in its natural state it's beautiful. >> i kind of felt bad, but that didn't last long they're cutting it down today and it will make its way to noshnew york city. it weighs 12 tons, 43 feet wide. it will land at rockefeller plaza on november 1 1. you're watching "squawkbox."

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oil prices sliding to the lowest levels in months, a sign the energy sector is shifting.

joining us is rebecca bab bot. great to have you with us. it's stunning to think that oil is down 20% from highs in a very short amount of time have we moved back to the fear of just deflationary pressures around the world because of weak economies? >> i think we have shifted our focus from the what if, what if supply is disrupted due to the conflict in israel what if china continues to have exponential growth, to what is what is right now is a very balanced supply and demand picture. we have come out of a really strong summer driving season, where we saw massive inventory draws. we're in a place now where we are finding margins have come down substantially we're just not seeing the inventory draws that we have seen at the same time, supply remains robust and hassen come off we're in a place of balance.

that shift in mentality and looking at things through the what is, not what could happen, has really kind of taken the wind out of the sails of the commodity. i would say, though, at this point i think we have overcorrected in thinking about the deflationary fears we just don't have that natural buyer from the macro hedge fund community who is looking into year end and trying to evaluate how to position for 2024, which looks a little more uncertain. >> we have had a lot of volatility in the oil markets and i'm just curious when you look at some of the systematic trading firms, et cetera, if there was related linked positioning between the two that is sort of enhancing volatility in both asset classes? >> yeah, that's a really interesting point. there has been a high

correlation this year with interest rate volatility and crude volatility i think there is a link. i don't think we know, because ct has run a little more of a black box in terms of how they trade. when interest rate volatility picks up, risk appetite across the crude complex getting compressed we see trade ers looking to have their exposure in options. so when the conflict in israel took place okctober 7, we saw a massive explosion in options open interest. we wanted to place the bet outright they wanted the tail hedge i think interest rate volatility plays into that. as we head into year end, risk appetite in general shrinks and it's harder for people to step in and try to catch the knife and crude for a bounce, when they're looking at their end of year and looking at 2024, saying

okay, demand growth in 2024 looks like a million barrels supply growth in 2024 for crude looks like a million barrels the outflow is going to come from what does opec do at their next meeting and how they fiddle with their supply in 2024 to see if they have those drops >> you said earlier that you thought that crude overcorrected and yet we got cpi data from china that showed a weaker than expected picture there what is the risk now >> i think the risk is to the upside but i would say this, the crude consumption, the crude demand we have seen in china has been disassociated from those high-level macro economic numbers that have come from china. we are still in the process of recalibrating out of the pandemic in china. if you look at the high frequency data, we look at the road congestion, their flight bookings, things of that nature.

they look to be in tact on the demands side it is a concern, and you're right, going into 2024, i think that people are saying okay, how much of this -- how long can gasoline consumption continue to d di v divernlg i look at these prices at $75 and opec i think does not bring back supply in the first quarter of 2024. we have some s ppr buying, but there is always that downside scenario where things in china melt and we get a hard landing in the u.s >> rebecca, thank you. coming up, we'll bring you some news about the premarket movers and kevin mccarthy will join us for an interview all that and more in just a

moment "squawkbox" rolls on

congress has less than ten days until government funding

runs out the ball is in the house's court. joining us now is former speaker of the house kevin mccarthy. mr speaker, you were speaker, but it's such a loaded -- you know, after what we witnessed, congressman, it's crazy. i want to keep calling you speaker any ways who knows, maybe some day that will be your title again you speak to the new speaker, he's got a plan for some kind of remedy here within the next week or so. can you fill us in on what it looks like >> well, they haven't laid out exactly, but there's talk of a laddered cr where some of the government is funded at a certain time the one thing you have to remember, whatever passes has to pass the senate and be signed by the president. i don't think creating more cliffs will solve the problem. the real challenge is the last 45 days when you get to the last week, was designed to go to

conference and work out the differences between the senate and house. unfortunately, we went through a speaker's race and we didn't have time to do this so we're back at square one. we probably need a stop gap measure that takes us out to the next month and gets this all finished once and for all. i don't think shutting the government down would be smart i think it cost me my job, but i think paying the troops is worth it >> cutting to the chase, i'm trying to understand the dynamics of the house at this point, because the perception among some that you had to, i don't know, deal with the other side to do these things may have cost you your job. if speaker johnson does something similar, is he going to get a pass because all of the personal issues with some of those gentleman don't exist with him, so suddenly the same things you did -- if he says it this way and you said it that way and it's the same thing, this time

will it be okay? >> yeah, i don't see them -- remember, it's just eight republicans working with all the democrats. so i don't see them doing that to speaker johnson now, and i think it's the right thing to do we are more challenged, we've got a war in israel, unrest around the world and for people to think that you shouldn't pay your troops sitting out in the mediterranean, whether they know if they're going to make their rent or house paymentis, that is the wrong place to be. i don't believe they would ever do that to speaker johnson look, it came down to a -- it was just personal in the basis, and at the end of the day, the public will see that but look, i lost my job over fis worth it putting the country first is the right thing to do. >> they did it to both sides, mr. speaker. they said the republican party

checks into rehab because they're addicted to losing pretty funny, unfortunately, and the laughter there is maybe tears. another election down the drain, not completely >> well, don't misread er everything it's true, the senate lost, the president lost, but in both those cycles where the democrats had big wins, they didn't in the house. i've been the leader for the last two cycles and all we did was win. we won in california, new york long island last tuesday, democrats lost if you look at louisiana, a governor winning in a primary? don't misread what virginia had. governor youngkin had a big hill to climb he was running in those statehouse seats that were redrawn to benefit democrats so, look, republicans are stronger going into the next election in a month -- i mean in

a year, than we have in the last two election cycles. joe biden cannot fix this problem. his problem is his age and he cannot fix that. when joe biden won the presidency with 82 million votes, do you realize that was the first time since 1993 that no republican incumbent in congress lost? >> totally outspent. you're legendary in terms of how much money you were able to raise for these elections. it's true that joe biden has that fatal flaw, but the republican nominee has got a slew of potential fatal flaws, as well. so i don't know how that turns out. let me ask you about the abortion question. what should republicans do what is the right approach to

that because i would attribute 2022 in large part to that. >> it did affect the last election >> the last two. >> but from the same point, think about the most liberal states in the union. california and new york. we won in those states, as well. so it's now up state by state. if you watched the debate last night, i thought nikki haley probably handled it the best you have to address the issue. it's not an easy issue but i watched the democrats go to extreme positions just even in the last congress abortion on demand up until the last term. i don't think the country's there yet either but this is an issue that cannot be ignored members are going to have to be prepared to answer >> do you want to talk about anyone other than who former president trump's running mate is do we just assume what's going to happen? is it still a question of who it

could be besides him or is it just already a foregone conclusion should we talk about a possible vice president >> you still have to go through iowa and new hampshire but think an where we are. each day it gets closer. but if you look at the numbers, president trump is stronger today than he was in 2016. joe biden is weaker today than he was three years ago in this election if you look at the latest polling and you look at the swing states, president trump is stronger than he's been in the past so if you wonder, is the nominee going to be president trump? i believe it will be if you want to talkable running mates, who is the strongest, look at areas that would help. that's part of the debate last night when i sat to look who would it be? i don't think ron desantis is doing well he started out very strong nikki haley seems to be coming on rather strong, and i think

tim scott could be an excellent vp, as well. but that's a choice for president trump when he wins the nomination remember this, this election for the nomination will be over much faster than people think it will be mid march that the delegates, there will be enough that they will be selected so you'll have a longer campaign time here, and i would rather be the republicans who have much better ideas than the democrats. the whole question on the democrat side is whether biden runs that's a weak position to have for an incumbent being so close to the next election >> i know you're going to run. we'll talk about the irs some other time there's some good arguments on both sides you should obviously be able to collect what people owe, if they're not paying, and we -- republicans are a party of law and order. if there's not enough money in the irs right now, it should be funded, right? >> yeah, but you have to remember too, the efficiencies

and technology and others, why is more manpower going to provide that but the thing no one reads into this, remember the debt ceiling agreement we made. democrats voted to take $20 billion already appropriated and signed into law for irs agents to reprogram to another place in government they already voted for that. so that is going forward right now. so if we were going to send money to other countries, you have that as an option to use the money that democrats and republicans have voted for to reprogram. if you're worried about the debt >> former speaker mccarthy, thank you. we appreciate it go where you got to go you have a real job. >> thank you so much coming up, senators mitt romney and joe manchin introducing a new bill called the fiscal stability act they'll join us in the next hour check out the sharing of nvidia.

the company developed three new ai chips i would like to take a look at the blueprint for them just to see how they work. specifically for china, that will comply with u.s. ex-pport rules. "squawkbox" will be right back -thanks for swinging by, carl. -no problem. so what are all those for? uh, this lets me adjust the base, add more guitar, maybe some drums. -wow. so many choices. -yeah. like schwab. i can get full service wealth management, advice, invest on my own, and trade on thinkorswim. you know carl is the only front man you need. (phone rings) oh, i gotta take this, carl. it's schwab. schwab. (feedback rings) have a choice in how you invest with schwab.

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analyst call out this morning on a very popular stock amongst our audience that's tesla, which is always one of the most searched tickers and news queries on cnbc.com those shares down, roughly 350,000 shares of trading volume analysts at hsbc are initiating coverage o. electric vehicle giant with a reduced rating. the target price is 146 bucks, which is roughly 34% below where it closed yesterday. what they cited is rich valuations driven by its innovation story but caution around the timing of tesla reaching its product targets on current time line expectations that kind of confluence of things leading perhaps to a little bit of that 1% downside disney shares up over 4%, nearly 200,000 shares of volume. beat expectations for earnings while narrowly missing on revenues, but streaming platform disney plus did add more subscribers than estimates disney said it would increase

its cost cutting measures and continue to aggressively manage those costs. those shares up about 4.5% we'll end with a big move higher in roroblox. after a near 12% run yesterday, this is the operator of the popular video gaming platform. it reported a smaller than expected loss on better than expected revenues. now, we will have much more on that story in the next hour when roblox ceo david baszucki joins "squawk box" in an exclusive interview to talk all things human co-experience. thanks dom chu. shares of take-two interactive rising again yesterday's jump came after the company said it would publish the first marketing trailer for the long awaited grand theft auto 6 game in december. the company reported earnings that beat wall street estimates. take-two affirmed its full-year guidance current quarter guidance fell short of estimates

there it is up 2%. after the market close in tokyo overnight, sony reporting revenue that beat estimates but operating profit dropping by 29%. you can see that stock down just marginally sony attributed that to weakness in its imaging sensor business, also seen declines in its profits for several other divisions including financial services, entertainment, technology and services. profit in sony's chip division falling 28%. sony supplies camera chips to apple. sony raising its sales forecast on the other side for full-year citing benefits from positive foreign exchange rates the yen has weakened against the dollar ask sony makes most of its income outside of the u.s. when we come back, a lot more, we're going to talk to senators mitt romney and joe manchin on their fiscal stability bill they're proposing, and what it means for the economy. as we head to a break, check out shares of krispy kreme, they're sliding after the company missed

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good morning, the dow snaps a seven-day streak of gains, but the s&p and nasdaq still going

strong on their longest win streak in two years. disney outlining plans to rein in costs. we're going to give you a complete rundown of the company's fiscal fourth quarter. talk about a tentative deal to end the actor's strike, and a new push to tackle the national debt senators romney, joe manchin going to be joining us this morning on their new plan. they're unveiling it today, and it's all happening in just a half hour right here as the final hour of "squawk box" begins right now ♪ good morning, and welcome back to "squawk box" here on cnbc live from the nasdaq market site in times square i'm joe kernen along with andrew ross sorkin and melissa lee. becky is off today and you're coming in tomorrow, at this point? >> i haven't fully decided

i'm 75% at this point. we'll see what the last hour brings. >> i'm trying so hard. u.s. equity futures at this hour are indicated, as you can see, up a little bit. in the green we've had a couple of good days in the last couple of weeks bouncing off some of the lows that we saw after things sort of stalled out in august. >> the longest winning streak for the s&p 500 in two years >> like nine, right? and i noticed today the ten-year is like almost 4.5 i don't know if it goes below that, but it's well below 4.6 this morning, 4.54 and crude, did it have a seven handle it did for a little while. can you say spr maybe? think about it dollar cost average, buy a little here, maybe start easing into it a little bit since we don't have anything left for a real emergency >> all right, here are some of the stories investors will be talking about today.

apple suffering a potential legal setback in europe related to taxes, according to an adviser to europe's top court, an eu tribunal made legal errors, and should review the case again the case was part of the eu antitrust crackdown between multinational companies and eu companies that regulators saw as unfair state aid reports say new york stock exchange's, speaking to cnbc on the sidelines of d.c. fintech week, s.e.c. chair gary gensler said a revived ftx could work if new leadership has a clear understanding of the law gensler stressed both building the trust of investors and making proper disclosure rules mexican media outlets report apple cofounder steve wozniak was hospitalized in mexico city due to a possible stroke he was in mexico to participate in a world business forum event. however, it, mz cited sources in

its own report that wozniak may have experience add less serious bout of vertigo. >> i hope so. check out shares of disney in the premarket after the entertainment giant announced that it had beat earnings and also upped its cost cutting targets. julia boorstin sat down with ceo bob iger in an exclusive interview and joins us now with more hey, julia >> good morning to you, joe. disney reported those better than expected earnings as the company expanded its cost cutting target by $2 billion to 7.5 billion. streaming subscriber additions of 7 million were more than double expectations while the company narrowed losses in that d to c division. bob iger expects streaming growth to continue and he sort of walked back his interest in potentially selling the company's linear networks. he said they're seeing more value there than they did initially. as they look to take espn direct to consumer, they say everything is on the table.

>> we have been considering various strategic options for each of our networks, not necessarily all together, but each of them we do that as a matter of course for all of our assets, we're aiming to increase shareholder value obviously. >> espn was broken out in its own sports division for the first time, a 50% increase in operating income as iger works on the future of espn and sports >> we obviously are planning to take espn out on a direct to consumer basis we feel great about that we believe we have an opportunity to strengthen that hand even more by bringing in one or two strategic partners that can add either marketing support, technology support or possibly content support >> iger struck a more bullish tone when it came to talking about advertising than warner discoveries david saz love did iger saying the ad market is

improving. he also talked about seeing great opportunity in digital advertising, which is obviously a big piece of the bundling of disney plus and hulu you can find my whole interview with iger on cnbc.com. joe. >> i don't know what i'd do, julia, but the positives that i see -- i mean, over the years we remember all the ip that the company sort of collected at what we thought were really high prices but turned into virtual bargains i don't know, pixar i used to think of it more highly than i do right now for some reason i think he said he's going to go back into the studio side and try and right that ship too. then, you know, i think sports, how can you screw up -- sports is just the one thing we know will always be -- get so many eyeballs, but you got to figure out how to do it and who the partners would be. so it's tough, but there's a lot of great stuff there >> yeah, and the guarantee of live viewership for sports is

obviously what makes the advertising piece of that so valuable we've got to talk about the strike because when i interviewed iger, he said, look, he's optimistic that there will be resolution with the streak, and within a couple of hours there was that tentative deal struck there's a lot of hope that the timing of this deal being approved now, the national board of sag-aftra is going to look at this and vote on it on friday, that there will be sort of progress in the ability to get shows up and running pretty quickly and also to finish up or start working on some of these movies that are set for release next summer. so the timing of this, joe, is really essential because it really saves the summer of 2024 box office. >> strikers in all industries seem to finally figure out, you know, if we really cut off, you know, our employers at the knees, it's probably not good long-term for us i mean, there needs to be someplace to strike still around the next time they want to strike, right? >> yeah, and i think that's a

really big question here, how is the industry going to be changed on the other side of this. so much of the negotiations here were about streaming and sag was really hoping to get effective lay percentage of all streaming revenue. and they did not get that, but what it seems like they got -- and we don't have the details of this deal yet, was bonuses tied to success in streaming. more akin to what the writers got in those negotiations, but i think we'll have to see how much more it's going to cost for the studios to produce content because they are paying actors and writers higher fees, and the question then how does all of this plus the disruption of the past 118 days that actors have not been working, how much does all of that change the industry? will we see studios going forward saying we're going to make fewer films, we're going to make fewer tv shows. the overall potentially consolidation of the industry. >> well, at least actors will be back at the film festivals, julia. it was hard for me being the

most -- the biggest celebrity. it was difficult i mean, everybody wanted a piece of me, you know, that actually didn't happen. >> but joe, you're right that actors are really essential, not just at film festivals but at movie premiers and late night talk shows to promote their content. so one reason we've seen so many films delayed from the fall to the spring is because the studios don't have the actors to help promote them. that's one reason why having this guarantee or it seems like there's going to be a guarantee that actors are going to get back to work, allows the studios toe to make sure they have the right time line, which are can be make or break for the box office of a film. >> exactly directors just don't -- there are some that have reached that level but it helps when the actors are there for the whole glitz and the whole feeling of being at a film festival julia, thank you very much

great interview. we are watching shares of ride hailing service lyft, earnings and revenue beat estimates. bookings fell short from rival uber and lyft said the current quarter should also be weak. you can catch lyft's ceo in an interview at 10:00 a.m. eastern time here on cnbc. senator mitt romney and joe manchin will be johnson & johnson -- joining us on the new vision to tackle the debt. next an interview with the exclusive ceo of the gaming company roblox as we head to a break, check out one of this morning's earnings movers, shares of krispy kreme doughnuts fallings despite making great doughnuts it was a miss there down about 5% right now those glazed doughnuts, i don't know oh, look at that beautiful tree headed to rockefeller center as they -- it's a live shot there

that's a beautiful -- you know what it's a full tree too looks great. it will be in rock center very, very soon for the big lighting ceremony stay tuned, you're watching "squawk box" and this is cnbc. and now, save 40% on the sleep number special edition smart bed. ends monday. shop for a limited time. only at sleep number.

welcome back to "squawk box. futures right now are positive the dow up by about 70 points. the nasdaq up by 8 and the s&p adding 9 right now instacart out with its first report as a public company the food delivery platform, the revenue beat expectations up 14% year-over-year, but a third quarter loss of $2 billion was narrower than expected, at least what analysts thought. the current quarter forecast is also above estimates however, the stock is trading about 9% below its ipo price of $30. coming up, can't-miss interviews with senators mitt romney and joe manchin introducing the fiscal stability act aimed at taking on america's $3 billion debt. stay tuned, you're watching "squawk box" on cnbc 3 billion dt

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welcome back to "squawk box," futures right now, you can see on the board up 62 on the dow, got the ten-year down about 4.54 notably bitcoin almost 37,000 up sharply this morning, almost 13 or $1,400, and above the 36,000 resistance level that katie stockton was speaking about

yesterday. let's talk games, game maker roblox posting a smaller than expected loss for the third quarter and sales above estimates, bookings rising 20% from the same quarter last year and the average daily user coun was up 20% from a year ago financial guidance in fiscal 2024 joining us in an exclusive interview is roblox founder and ceo, known as builder man for those of us who may live inside a roblox universe. great to see you, sir. >> thank you for having me on the show i appreciate it. >> let's talk about these earnings they were better than expected, but there's also a whole bunch of things i want to get into because it seems like there's been even a shift in terms of the users on the platform, the ages of the users. therefore, how much they're spending what's happening here? >> yeah, the vision is -- what we're doing at roblox is really the future, a new form of communication, and a way for people to come together when they can't be in person, not

just communication but connecting and doing things even at a distance. so we have people doing everything on roblox from, of course, playing to learning in our office we simulate our office so that highlights our results we're seeing more people around the world. we're seeing great growth in japan and germany, india, and as you know, we're seeing more older people on our platform as well, really solid growth over 17 on the platform so really hitting on all cylinders. >> so do you think that the investor community needs to sort of rethink how they think about roblox in this regard. i just wonder when you talk about re-creating your office effectively remotely online. that's a very -- i mean, you've talked about that idea before, but if that's going to be a meaningful part of the business, that's interesting >> yeah, we want to support our investors both with great bookings growth. this quarter as well we started

to hint at operating leverage as well we showed almost $80 million of adjusted ebitda. we showed that our bookings are growing faster than our cost, which all point to great future leverages as well. we really to both have a great vision, which we think is eno enormous we talk about connecting a billion people with optimism and s civility with a business that can really generate cash and show operating leverage. just to highlight on monday on that one point, i did all of my one on ones in roblox using my avatar to connect with other people on our team >> talking about sort of the real world moving online, let me ask you about this roblox has become to some degree a town square of sorts a little bit different than maybe what elon musk is doing with x, but since the israel-hamas war broke out, there have been virtual protests that have been taking place on roblox, including pro-palestinian protests and others what do you make of that

phenomenon, and what do you -- how are you thinking about that in terms of whether there need to be guardrails around parts of it or not? >> yeah, i want to highlight civility, trust, safety is our top concern, and secondarily our hearts go out to everyone involved with this conflict, we do allow peaceful assembly on roblox, and at the same time, we have the absolutely zero tolerance for terrorism, for hate, for discrimination, for bullying, for reenactment of real life events we do strike a balance with civil assembly, but at the same time we have zero tolerance for anything beyond that. >> and so what does that require on your end, though, to police that >> yeah, lots of stuff really, what we've been doing since the first month we were live thousands and thousands of moderators, increasingly high quality ai that reviews every

image, every sound, that reviews the communication of people, review of all the experiences on ro roblox we take this very seriously. in the recent conflict we've focused extra moderation specifically on this because it's so -- you know, it's so front and center for so many people >> roblox has also launched now on meta platforms quest. how big of a business do you think that ultimately becomes, and is that just the beginning do you imagine -- i don't know if you say say -- are you planning on being on apple's vision pro, for example, and sort of these different mixed models >> yeah, we -- in the last month or two we launched on meta quest. we had over 2 million installs in like the first week we also launched on play station. we had 15 million installs as well the vision of 3d communication with roblox is really every device, every platform, and we think 3d in the cloud, avatar-based communication works everywhere, so people on meta quest are playing with people on

play station, playing with people on ios, android, c, mac the vision is every platform, and so apple vision pro, of course that makes sense someday. nintendo switch. we really want to be on every platform because we think this media and this form of communication works everywhere. >> what do you think about photo realistic skins? i don't know if you saw there was a fascinating interview that lex friedman did with mark zuckerberg that was made public where they were literally photo realistic. i mean, it was truly photo realistic their avatars, and they really were avatars, but the truth was it looked like real people. i know that that takes a lot of processing power how far away from that being a meaningful part of your business >> i think the big thing to think about here is ultimately as this becomes a more popular form of communication beyond play for work or for learning or for going to concerts, more and

more we're going to be able to pick an avatar that represents whatever we want to be we'll be able to be more cartoony, more realistic, and ultimately, photo realistic. and at the same time, we want this to run on any device, even a low end android phone. so as soon as more and more devices support photo realism, we will see that more as an option that people will choose for their personal avatar. >> i know we've talked about this before, but do you ever see a moment where the platform itself becomes more open in the idea that, you know, your currency is something called ro bucks, we've talked about nfts and things that could live inside roblox, but then get moved on to somebody else's platform in other ways >> yeah, i want to highlight there's a bit of a dream here about objects and nfts moving from platform to platform.

we do believe someday, for example, you know, i use the fun use case that someday elton john may come on roblox and make eight or ten 1-unit really cool capes, for example, and sell them for charity, and we would imagine someday that those would go off platform as an nft, possibly get tsold off platform and then come back on platform what we do expect is the creators, whether it's elton john or nike or someone else making a digital item, that they would play a key role and have a fair amount of control in that process. >> when you look at the competitor set today, who is it? >> wow, i think one thing we like to highlight about what we're doing here, sometimes people refer to this as social media. what people are doing on roblox really mimics picking up the phone in the 1950s, which is being with your friends and communicating and connecting,

and it's very, very different than consuming video or sharing images of your life or watching images of celebriticelebrities. in the big picture irrespective of competition, we would say it's a communication connection facility more than those other social media types that said, people on phones, you know, you and i can name all the different ways people consume social media, some of the other big companies, so there's a lot of companies right now competing for people's time. the time on roblox is connected and it's very civil. >> david, i want to thank you for joining us, see you online >> thank you very much appreciate it. >> thanks, appreciate it some fireworks at the third republican presidential debate on nbc last night. five candidates squared off. front runner donald trump again sitting out. florida governor ron desantis had some fiery words about the fed. >> i'm also going to rein in the federal reserve. they have helped create with

their reckless monetary policy what we have faced since the covid-19 pandemic. they botched it. congress botched it. both parties are to blame. fed should focus on stable prices they are not an economic central planner for the american people. >> the fed bipartisan, everybody can always get -- earn a few points i can imagine in either democratic debate or gop debate. >> bash the fed. >> poor fed. space tourism company virgin galactic, we'll talk about that at some other point, virgin galactic, we'll just let you hang there >> and just -- it is something i think about occasionally no, i'm kidding, yeah, just randomly i think about space company virgin -- oh -- >> we won't leave you hanging. it says it's going to pause space flight operations next year to focus resources on developing its next gen delta

class spacecraft joe, you're going to have to wait. >> no, that won't be happening there's a few things i won't do. bungee, no jumping out of an airplane, no i won't zip line again, i'll tell you that much >> zip line? that's scary is that that scary >> i've done it. >> so have i. >> in a place where, you know, you have no idea whether it's maintained properly. >> yeah. >> like where? >> that's the case anywhere. >> all over. >> did you have your kids with you too? >> yeah. >> and they were doing it? >> yeah. >> no, i won't do it again. >> i don't like heights. >> you don't like heights. >> no. >> coming up, we're going to maybe go to some new heights, we'll see, breaking jobless claims, and our big interview with mitt romney, senator mitt romney and joe manchin all that and more, stay tuned, do not go anywhere

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♪ welcome back to "squawk box" on cnbc. we're just seconds away from the initial jobless claims data. futures are setting up, s&p looking at its longest winning streak in a while here, and the nasdaq is up by 10.5 ten-year note ahead of these numbers, 4.5%.

firmly rick santelli is there. we had an auction yesterday and ten ten-year notes we've got a 30-year auction today. and yields at 4.539. >> all right, our next guest -- >> rick. >> yeah, rick. >> oh, i'm sorry you want me to talk? i would just say -- >> let's talk about the auctions and then rates >> yes, in terms of what happened yesterday, i found it very interesting because, of course, there is a huge bias for primary dealers to continue to advocate buying. there's seasonalities, there are a variety of issues that are pointing to the fact that we may have a breach of 4.5%. i'm not sure i'm going along with it yet, okay? i really saw the 5% failure as a big move to the downside and yields that paid off big time, considering that that outside session was the 23rd the 23rd wasn't that long ago,

so we really have covered a lot of ground with the downside move what i learned from the auction yesterday is that the metrics for the auction were pretty much very average it tailed almost the basis point, direct bitters were super light, but yet the response in the marketplace was to the upside it harkened me back to the plunge protection team in the s.e.c. back in the day but evening that the actual supply is going to continue to pay much more attention to debt. so i can't wait for your next two guests initial jobless claims, 217,000. that's 1,000 less than the 218,000 that we were looking for, and it's exactly the same as last week, at least for the moment my guess is here's the revisions trickling in on the wire now they boosted it by 3,000 to 220,000, which makes this 3,000 less maybe the much more important number is continuing claims, which last week hit the highest

level since mid-april. 1,834,000. it continues to move a bit higher last week was downgraded a few thousand, but not much so 1,834,000 still comps to april of this year when it was 1,843,000. but i do think it merits some paying attention to. you know, the problem with all of this data is the "a" word, anecdotal. we could all discuss the mistakes of people pointing to a recession. i'm going to boil it down as simple as we can we had two years where we were prevented from doing a lot of things during covid. you could argue we're having two years of expansion to make up for what we missed during covid, which means that right about now or early '24, i think a big reality starts dawning in the marketplace. i would start paying much more attention to some of the anecdotal slowing. and listen, mario draghi wasn't my favorite ecb president, but he certainly does seem to believe that the eu, the

european union is going to be heading for a recession, and i continue to say that we cannot be isolated in this global environment we are in. i continue to think that weakening is most likely the position to pay attention to, the time line has been wrong, but as we learned, even the omni intelligent fed had a time line wrong, so these things can happen joe, what do you think of our two guests coming up better late than never in terms of paying more attention to the debt it makes me giggle a bit to look at the records of some of these congressmen that all of a sudden seem to be worried about something that was so apparently obvious so long ago. >> the -- when he simpson bowles, so we've been trying to figure this out. this one, actually, it's going to be -- >> barack obama didn't take the advice of that panel back then can you imagine how the world would have changed -- >> i want to know how this is

different. this goes to may 1st of 2025 let's twalk with our next guest about whether there's anything with real teeth and how this is going to work. it's a good idea our next guest are in washington they're introducing a new bill the fiscal stability act from republican senator mitt romney and democratic senator joe manchin would create a commission to come up with potential improvements to the long-term fiscal health of the federal government if the commission approves legislative language it would get faster consideration, it would have privilege, in other words, in the house and the senate wouldn't need 60 originally. it would need only a majority. joining us now senators mitt romney and joe manchin, and you guys are both kind of -- you're both kind of purple, you know what i mean? if there's anyone on the democratic side that's a little bit red, it might be senator manchin, anyone on the republican side that's a little bit blue, it might be you,

senator. that's a good start, but you're going to have to get some of the other parts of the party probably on board with that. is that possible senator romney? >> well, actually, there are ten of us that are behind this legislation. >> i saw that. >> yeah, but you two -- sinema, todd young, hickenlooper, and then you two gentlemen. >> mark warner, a whole group. we've got a good group behind it you asked the question of how is this different than simpson bowles it really patterns itself after simpson bowles, but the debt now is twice the level it was during simpson bowles they were at 60% debt to gdp this is 124% debt to gdp secondly, simpson bowles did not have a privilege process to get to the floor for a vote. this legislation does. the process is better. the urgency is greater until the american people begin to think about what would happen if this debt continues to rise,

we're not going to be able to get the job done i think in this case, we got a good shot. >> and senator manchin, obviously i immediately thought i love the framework you know, you've got leaders from both sides that are going to appoint who they think, you know, might be able to come to some type of agreement and then some outside experts, but the devil's always in the details. it's either got to be less spending or higher taxes it seems like, or some way to stimulate growth >> everything's on the table, joe, basically we have mandatory spending and discretionary spending and non-discretionary spending, which is mandatory and non-mandatory. if you look at those categories in the last ten years, they've all doubled. how do we -- how have we put non-discretionary that we can't even talk about it and can't even debate it this goes in, it's automatic we're going to pay it. it has double instead ten years from 2.4 up to 4.9 trillion. it's just out of control the spending is out of control but everything's on the table. we'll look at nondiscretionary,

discretionary and revenue to make sure that we're basically inability to take care of ourselves. as former governors, mitt and i both, and all the people who have been former governors, you have a balanced budget amendment. you've got to live within your means, and every week we would be consulted with our financial teams and they would tell us if we're on track to be balanced, if we're on track to have less revenue, we had to make adjustments so at the end of the year it would balance out. there are no checks and balances here what's happening with social security, if we do nothing and sit back and say everything will take care of itself, people who get a thousand dollar check right now from social security, my aunts or family members or whatever, within ten years, within ten years, that's going to be cut to $800, and no one will do a thing and they can do nothing about it we want to prevent that from happening. we're putting long-term fiscal stability, 75 years of stability within our trust fund, and in 15 years to have our gdp to debt under control. we're at 124%. the debt of our nation is the greatest threat we have as a

country. our debt mike mullen in 2011, my first armed services meeting, mike mullen was asked the question, what's the greatest threat the united states faces, he didn't hesitate he was chairman of the joint chiefs of staff. he said the debt of this nation will take us down before any adversary around the world >> gentlemen, we're talking entitlement reform again here, which, as you know, is the third rail, and i don't know if you heard rick santelli's comments the president needs to sign this eventually, president obama didn't do anything with simpson bowles you know who the two candidates are. we don't know, but let's just for argument sake, let's think about who -- >> we've got our own hopes. >> if it were as it is right now, senator romney, it would take some convincing of president biden or former president trump to do anything with entitlements. so they won't sign this. i don't care if you have

privilege in the senate or with the legislation. they would take a lot of ka cajoling and arm twisting to get either one to touch the third rail, wouldn't it? >> both president biden and former president trump have said they're not going to touch entitlements and the reality is not everything is on the table because neither one of us and nobody else is talking about changing our entitlements for retirees or people nearing reti retirement those are promises made. those promises will be kept. there's going to be no change in the entitlement program for our seniors. what we're talking sabout is people in their 20s and 30s and 40s, and do we need to make adjustments in that area for instance, linking the eligibility to the life expectancy of individuals and so forth or giving people options as to when they opt into the program and start receiving the benefits there are a lot of thimngs we cn do there's a proposal by a couple of senators to invest in the

stock market by borrowing money and using the returns from the market through arbitrage to pay for social security. there are a lot of ideas out there that don't require changing our entitlement programs for retirees, and that's for both candidates for president in 2024 i think will be able to come down. >> because that just sounds -- senator manchin, sounds like you're kind of parsing what president biden and former president trump have said. if they said we're just talking about retirees right now, i don't think they want to touch it at all, even going into future generations, do they? >> joe, only thing i can tell you, i've been here for 13 years. if there is something bipartisan that comes out of the house and the senate, there's usually not a problem. there's usually not a problem. the president, even though they might not like it, they can blame us the bottom line is getting something out of here in a bipartisan way is a very heavy lift anymore this piece of legislation has to have at least three from either party, you have to have a total

of seven to pass anything out of the 12, which is majority. but three of those have to be from an opposite party, so it has to be bipartisan by the way it's designed and the nature of it going over, so if it starts in the senate and goes over to the house or vice versa, this is a mirror of what the house has done what we're doing is just basically teeing it up for what the house has done we put a few things in guardrails that we think they're in line with it, and now it just depends on who they appoint. so you have four corners that are going to appoint so each corner gets to appoint four people. three members and one expert so with the house majority, the speaker and the minority and over the majority leader here in the senate and the minority, they each have four to choose from let's see how sincere and how determined they are to get people who really truly want to get our fiscal house in order. >> that's the thing, senator romney, i mean, bipartisan, you could break down each party and talk about bipartisan in each

party and have a continuum about this wide in the democratic party or the republican party. so if you had -- i don't even know if there are centrists around anymore -- let's say you did find some centrists in both parties. what about -- what about the guys in your party, senator romney, think about, i know either in the house or senate, you can think of some, think about in senator manchin's party what the extremes are. it doesn't matter if you have three guys that agree on something. that doesn't mean that you're going to get the caucus on board. >> you're absolutely right, and let's not be pollyannaish about this we've got a crisis coming. we recognize that the level of debt in our country cannot continue to go up and up and up because we're going to hit a wall, and you're going to see interest rates ultimately be affected there will be a crisis at some point. we're trying to avert that as you know, under the law if we don't avert this within the next ten years, social security gets cut by 24% so there are some concentrating factors here that are going to come to play

the good news is if you look at what's happened in the senate and the house and the white house over the last few years, we have been able to come together on the infrastructure bill, on the chips act, on reforming our electoral count act, on marriage and religious liberty, on gun legislation, even though the extremes were dug in on the far ends of each party, west were able to get things done on a bipartisan basis. i can't tell you that that's going to get done again. i hope it is, but what i can tell you is if we don't try, we're going to be in real trouble down the road, and so joe and i are working together with ten people that are absolutely committed to getting this done. >> i'm loathe to even talk about something other than this because we don't talk about this enough, and you gentlemen bringing attention to it is important, but let me just talk about something else for a second senator manchin, you said something like -- i said well, we know the two candidates and you said you're still working on that what do you mean by that and i want to ask senator romney that, you said, senator romney

that, you know, there's too many nominees on the republican side. they got to coalesce around one to sort of being the anti-trump. senator manchin, you go first. what did you mean? >> well, my assumption would be this, the people haven't been able to speak yet. the party might be set on where they're going and who they think is going to be the representative, but the people haven't spoken up yet. if the middle ever would coe he's around and say we want someone who can take us into the future fiscal responsibility is one thing, energy, security, border security, all of these things here, they're going to have to find basically someone who's going to bring people together if that's not what's happening and what's being produced the people will go differently we'll see. i think it's too early right now to say what will happen, but the way the party system is set up, it looks like that's a direction they're going. >> all right, senator -- >> my view -- >> yeah, go ahead. >> i've said this from the beginning, i think donald trump

is a prohibitive favorite but if there's any opportunity for someone else to become the republican nominee, the field needs to consolidate and i thought we could wait until february to do that. i think i'm wrong. i think we have to move more quickly than that and look at the numbers and say who's been rising in the pollings, who's doing well in iowa and new hampshire, and people who have not been able to breakthrough need to step aside and let the person who's risen become the nominee. >> who would your favorite be? >> i'm going to let other people make that assessment i think you can look at the numbers and say all right, this is a person who's got a shot. >> senator manchin, some people think an 86-year-old president biden with vice president kamala harris waiting in the wings, that's a scenario that they would rather avoid what about you >> yeah, well, the bottom line is, again, the people will speak up i think you're seeing people speaking out i think you see the polls, basically they're challenging right now. the president has done some things that i agree with and

he's done some things i disagree with that's with any president. with that the ability to lead and being in that position and having the confidence of the people is what it's going to take and that hasn't unraveled yet. i think it will. >> should he have the confidence -- should president biden -- is he too old that's what we're all talking about. it's the female uelephant in th senator manchin. >> the conversations i've had with him are very lucid michigan conversations have always been good what people are seeing and assumptions they're making, they have to make that for themselves if they've had personal contact, make it from that, that's what it should be. >> i'd say it's not the age. it's the record, which is, yeah, the rate of inflation has come down, but to the american household, they're looking at the cost of a loaf of bread at 6 bucks and they're saying my life has not gotten better under bid bi bidenomics unfortunately president biden who's a lovely person, just

doesn't have the record to be able to get reelected. >> joe, let me say this, you know we have more energy -- we have more energy production today than we've ever had in the history of our country we're perusing 4.6 billion barrels of oil, and we have 13.5 billion cubic feet of lng going out to the market to help our european partners. we doubled basically our wind and solar capacity and increased our coal capacity. we have done everything possible to have an all of the above energy security, and no one talks about that we paid down $230 billion with the ira, no one talks about that they talk about environment, environment, environment energy security is what we have done and what we're going to continue to do, and we're going to hold their feet not fire. >> senator romney, what would you do if you go into the voting booth and it's -- and those are the two presumptive nominees what would you -- you don't need to tell me, you know, your personal business, but that'd be a quandary for you, wouldn't it,

if it was former president trump versus president biden >> it's pretty straightforward, it's the same thing i've done in the past i'll vote for ann romney, who would be a terrific president. >> so we could all -- we could all do that. >> or gail manchin, either one we're okay we could go either way >> or gail manchin come on, andrew, which one take your pick they're both great. >> they are. >> senator, it'snice to see both of you. you know what we should ask them about? >> go ahead, yeah. >> we should ask them about the irs. >> let's do. >> senators, we've withibeen ha conversation around this table about funding the irs, defunding the irs, what should really happen there i'm curious how both of you think about that in the context of fiscal responsibility and to the degree that we need to collect a certain amount of revenue. >> okay, i'll tell you this, look, you have to have an irs. you have to have enough agents

to be able to audit people and make sure they're paying their taxes. anything other than that is nuts there's a quote by h.l. that applies here he said, you know, to every complex problem there's an answer which is simple, clear, and wrong. and the idea that we should not have irs agents and that that's going to somehow help us balance the budget is simply wrong we have to have enough irs agents to do the audits, particularly of high income people and make sure that high income people like joe are paying their taxes >> let me just say this, this came about truly in our bipartisan infrastructure, you know, discussions we were having rob portman, our dear friend, we all talked about different things rob was there and we were talking about things, the irs has not been updated at all. technology so far outdated we're not doing anything there agents were dropping off like flies. we're 75,000 people down, and no one really took a look at it, and that's basically the financial arm that gives us ability to do what we want to do

and be the super power of the world. so we start talking, okay, if we invested in this, $40 billion, what would that do and then we said, well, we just can't do that right now because everyone said that would cause a problem on the republican side we didn't do it at that point. it was truly something we all considered then when it came out in the other, we knew it would work $80 billion, i was a little bit concerned. i thought in the 50, $60 billion range is where it would take for us to get the maximum return they kept thinking every extra dollar you put into it you'll get back i think there's a no return, if you will >> point, yeah >> a part of time you put so much money in, a point of no return, and i thought they went over that. when they first took 20 billion out from the fra when the debate between the president and kevin mccarthy, i was fine with that but then they wanted to redirect it to something else as far as other spending it should have been directed to debt reduction but no one can ever think about that

>> we agree, 80 is too high but 0 makes no sense at all. >> all right, because i was thinking that too. we could wipe out the entire federal deficit if we gave, you know, 20 trillion to the irs and got -- we'd have 120 trillion, be perfect problem solved, we don't need your commission. >> right there's need any commission. >> there is a sweet spot, of course and you have to have an irs. you have to do enough audits that people recognize -- >> we should make it easier to file taxes, though, too. but we'll never do that either >> no, joe, andrew, that will be done, and basically, with the new technology, people can do it probably on their iphone the way they're trying to mechanize this thing and change it through technology, i think, is going to be tremendous. that's what we invested in we're down to 59 so when they keep saying $80 billion. it's $59 billion right now, okay it's down to $59 billion and we're in that spot you start taking more away, it's going to be detrimental >> i'm just interested who gets

picked and everything else >> we are too. >> it will be interesting to watch. senator romney, thanks senator manchin, always a pleasure when we come back, another check on one of our key stocks this morning that is disney we'll tell you what bob iger said about acquiring hulu. also another new and fascinating story about warren buffett. the not-so-secret to our success? earn and keep trust. build and maintain financial strength and stability. deliver solutions that meet complex needs. do right by customers, clients, and policyholders, always. repeat daily for over one hundred and seventy years. massmutual. partnering with financial professionals, benefits brokers, and institutions. ♪ ( ♪♪ ) we're in the security business...

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welcome back to "squawk. a new report just out this morning from propublica detailing three incidents in which warren buffett privately traded in stocks that berkshire hathaway was buying and selling. buffett has long said that such trading would be a conflict of interest he's talked about this multiple times, that he does have a separate, private trading account, separate from berkshire, but has said that he can't be buying the same stocks as berkshire but the outlet, propublica, revealed leaked confidential irs records, which were now deemed illegally taken, not but by propublica, but found several incidents of such trades it said that buffett sold stocks in his personal account in the same quarter or the quarter before berkshire bought or sold shares of the same company his personal trades came before

berkshire's moves were disclosed to the public. the transactions involved shares of wells fargo, johnson & johnson and walmart. those incidents involved sales of shares by buffett now, propublica said the leaked records did not include securities he bought and held. you can't see shares that have been bought and held buffett has not responded to a request from cnbc for comment outside of normal business hours and did not respond to, it paersz, to propublica's request. it's a unique and strange story. it's an unattractive story, if you will i've asked him questions during the annual meeting about how he trades personally, and each time, he said, specifically, i don't buy shares that the company buys in fact, there was a period of time where he would say, berkshire owns wells fargo, and i own jpmorgan >> right, that was the second choice >> because that's my second choice it's hard to know what's going on here. you don't get a full picture obviously, there's the other piece, which is that his taxes

were stolen, which is its own other story. >> right >> but you know, you remember back with the david soakal piece, there is -- it does not appear that he is, you know, front-running or involved in some kind of insider trading, per se, or that, by the way, any of the trades were perfectly timed in some way to make some kind of massive profit, on a relative basis to his entire fortune, it's de minimus having said that, he is somebody who has preached a certain time of ethic, a certain type of integrity around stock shares, around how everybody's supposed to behave, and it's -- it is surprising to see that he owns shares, for example, of johnson & johnson at the same time that the company did. it's surprising to see there were those walmart shares. the wells fargo shares and the like i'm sort of -- i'm trying to process this >> why would he have a personal account? if he did, i would just do it -- i would paper trade. it's like, there's no reason for

even -- >> to have a personal account? >> it's so de minimus. >> i don't know if these were things he bought years ago before the company ever owned them and was selling them. was he selling them because if berkshire owns them, he's not going to own them. i wish we had an opportunity to talk to him. >> it's so de minimus, though. >> for the those who care about this stuff -- >> you're right. >> and given how strict he's been about this policy, it is going to raise some questions this morning >> all right that does it for us. >> "squawk on the street" is mi up next see you tomorrow >> we get off early. (vo) while you may not be a pediatric surgeon volunteering your topiary talents at a children's hospital — your life is just as unique. your raymond james financial advisor gets to know you, your passions, and the way you give back.

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♪ good thursday morning, welcome to "squawk on the street," i'm carl quintanilla with jim cramer at post nine of the new york stock exchange. david faber is live at liberty media's investor day in new york a lot from david all morning long meantime, s&p going for nine gains in a row today longest win streak in 19 years to do it, bulls will have to navigate a 30-year bond auction. more fed speak, including powell, and a