of airbnb after the company warns of slower demand in the united states. it's wednesday, august 7th now, 2024, "squawk box" will begin right now. ♪ good morning and welcome to "squawk box" right here on cnbc. we're live at the nasdaq market site in times square. i'm andrew ross sorkin along with joe kernen. becky is off today. as joe was showing you, let's show you the u.s. equities. the dow is down after the opening. nasdaq up about 218 points right now. the s&p 500 looking to open about 54 points higher. now, the major averages all snapping a three-day session losing streak. the dow added nearly 300 points and had been higher earlier in

the session, and nasdaq adding 1%, while the s&p 500 adding as well. overnight, japan's nikkei up. but still down 14% over the last month. >> the high on the dow yesterday was well above 39,000, like 39,428. 39,447. it closed below 40,000. there it is. is that the daily? no, that's not the daily, but it went as the other averages did. as we went into the close, it came down quite a bit. it came down. i don't know what's going to happen. i'll tell you, andrew, what i thought. i was thinking about this. do you remember a year ago, a year and a half, well, there's a

recession coming. everyone was like, yeah, recessions are a natural thing. now you really can't get anyone to say, noing i really don't think we're heading into the a recession. i think the soft landing is -- you can't get anyone to say, yeah, i do think -- >> which in your contrarian thinking -- >> -- makes me think recession never come when anyone is expecting it. you know, 114,000 is fine. 43 is -- for the unemployment rate, that's very, very low historically, so now you're hearing all sorts of excuses for w why. >> it's rare. >> that's why you become the g.o.a.t.

it hasn't been common for the fed to stick to soft landing. maybe they do this time. we we're going to have someone that i was impressed with last time because it's an insurance company, the money's got to be there. i'm not sure what emily will say. she'll be on in a second. here's treasuries this morning, which we did see a little backup in rates, which is -- believe it or not, that's like a rebounding as well. we were down at 275 or -- i'm sorry, 375, 374 on the 10-year. now, not within spitting distance of the 4% number again. and we're not disinverted. isn't there a better word for disinverted? when the first thing is normal and then it gets not normal, inverted, why is it disinverted? it's not. we're inverted again. and the vix still coming back

down. all the way down to 22, 23, that's pretty amazing. it doesn't show it there, i'm not sure why. it got up intraday. that mustbe closing. these charts. i think it was quite a bit higher than that. the gold right now. >> the gold right now. >> the gold market, 2434. almost 25, i think. it did get pretty close. and then bitcoin moving a bit higher. bitcoins, however many there are, there can only be 21 million. i think it takes it like 2,200 or something to get that. like it gets harder and harder to mine these things. 57, it got to 347 in the selloff on monday. that's coming back. so volatile.

i saw crude, i think, was down again. oh, no. it's up a little. i don't know. that doesn't look like -- does that look like a rip-roaring global economy? that doesn't really right there. >> meantime we spoke to the ceo of uber yesterday. right now lyft out with its quarterly results, rising 41%. net income of $5 million. that compares to 114.3 million dollar loss last year, so things flipping in the right direction there. gross bookings up over 17% ore the prior year. total increasing to 15% over last year to 205 million. the rideshare company saw a free cash flow of $256 million. looking ahead, you see the range of $4 billion to $4.1 billion, and that piece of the puzzle was

below estimates and adjusted ebitda from $9 million. you had all this good news on one end and you're looking at the stock moving lower today, down about 2.5%. we're going to get to talk to david risher, the ceo of lyft. he'll be joining us. >> why was uber so great and this is like coca-cola and uber's like pepsi? uber's got all this other stuff like snacks? >> that's interesting. it's also an international business. >> sometimes it's good, sometimes it's bad. daraa seemed very happy when he was on. i don't get it. >> we're going to get to find out. by the way, maybe you can decide

that their guidance -- you know, you have to believe all the guidance, right? that's part of the issue here. these guys are guiding down. dara said he's not seeing that. >> this is another one that and also. >> it's a little bit confounding. airbnb shares are down. the company reported earnings it missed expectations, warned that it's seeing signs of slowing demand from u.s. customers. the company said it expected moderation in year-over-year growth in its key nights and experiences category. it also cautioned it was seeing shorter booking lead times. shorter booking lead times. i know we just did something, andrew. there's places where it definitely makes sense, you know what i mean? places where i would rather be pampered by the great staff at holiday inn or motel 6 or

whatever, red roof. but then there's other times where you're on your own. you don't need that waffle breakfast maker you can do yourself on the free breakfast that you get at a quality inn. >> have you done an airbnb? >> i said we're doing it again, and, yes, we did it twice last year when we go to telluride, in fact. >> it works out for you. >> it's unbelievable. >> there you go. >> but you've got to take care of your own breakfast. you don't have a waffle maker, right? did you go -- in paris, did you do that any of the mornings? any of the mornings? >> no. >> number of the mornings. >> no. this is the difference between joe and i. >> yeah. >> joe would go to the hotel breakfast. it was free breakfast. >> coffee, kraps, powdered eggs. >> you tell me how great it was.

>> it's not great. there's no sneeze screens. you're skeeved out. >> so -- >> there's a lot of people. not everyone was sneezing. some people were sneezing. >> meantime back in reality, we are waiting on disney to roll out its results this morning, but ahead of those numbers, the entertainment giant announcing price hikes starting in mid-november. most plans are going to cost a dollar to $2 more per month, the most excellencive f plan for hulu will costs $6 more. disney and disney+ will be $9.99 and 15.99 dollars and hulu with ads will costs 9.99. espn plus, which features ads,

will costs $11.99 a month. we're going to be getting the results a little bit later. when we do, we'll have an opportunity to talk to the ceo. we'll talk about the quarter and the price hikes and everything else that comes out when it happens, and we're going to speak with him at 7:10 eastern time. >> what did i tell you? what did i tell you about this? hulu -- i mean, how much is this? hulu's much more valuable than disney is letting on. >> oh. that's because the parent company of -- >> oh, i forgot. i wasn't even thinking about that. >> where are you going with this. >> no, i was thinking about that. >> explain the view. >> no, i'm kind of kidding. hulu was kupd of lime.

you take it, no, you take it, you take its, no, you take it, okay. >> then they took its and said it's not that great a price and there was a minimum amount. now things are starting to turn. profitability is starting to come for streaming, and hulu is worth a lot more and they'd better pay up. >> the big question is if all these prices are getting raised at a time when the consumer is getting -- >> we'll see if it sticks. >> you can hold. i don't know this, but i would assume they're going to guide for either flat or lower number of ultimate subscribers. >> maybe, maybe. obviously peacock suddenly is, you know, looking -- the tate

feathers looking a little better, strutting its stuff a little. we'll see what disney streaming results look look today. i think we're turning a quarter, don't you think? because if everybody is cutting the cording they're still watching. they're doing something. it's either roku or something. >> the question is how many of the services are you going to have? that's the ultimate question? how many are you going to have? >> what's your streaming bundle look like. the carter familied my have five. i don't know. they might all have netflix. that seems to be the standard. it peacock the your next one? do you see the money going out to the stleemling services do i follow what's going on? >> what's going on my credit card?

>> do you u handle that side of the sorkin become? i handle the expense side. >> i monitor things. >> why am i not surprised. i'm paying for stuff, i'm sure, i haven't used for years. is there a way to find that out? >> once a month, look at the bill. >> look at the bill. >> yep. by the way, i would look and say, okay, we've got to do this, we've got to do that. sometimes i say, this is the austerity month for us. >> would you look at my bill for me? >> i can do that. >> all right. coming up, should investor mg ts spread more volatility. we'll jump to the markets yet. as we head to break, look at some of the big movers on nasdaq this morning. "squawk box" is coming right back.

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the futures indicating it wouldn't make up for all the losses we had at the beginning of the week. joining me now is emily rowan, john hancock chief investment strategist. i talked about you a little bit earlier because of some of your comments. you think that the risks of recession really are increasing.

are we at 50 yet? if we were at 10, where are we now? >> yeah, we're getting there. maybe a seven or eight. we're still in this never-ending late-cycle environmental where the lagged impact of tightening hasn't tipped us into contraction yet. we are seeing, of course, some cracks in the labor market and decelerating economic growth, but we haven't seen the earnings. there are not a lot of smoking guns as we've seen with equity markets. you can't blame earnings. over time stock prices show profit. there's a 12% earnings growth year over year. i think there was such an impressive price action coming into this earnings season that you almost had to be perfect. it reminds me. i keep thinking of the image of the pole vaulter that keeps breaking the record at the olympics. that's almost what you had to do as a company heading into the

earnings season. >> i've been watching pole vaulting my whole life. i can't believe the human spirit. a world record is a world record. suddenly we're getting higher and higher and higher. i saw that. that was amazing. it was -- he could have cleared it by each more than what he cleared it by. yeah. and i -- i think in terms of olympics now, too, for some reason. so the earnings were -- i don't know what you would give it. you wouldn't win a gold medal. i don't know if you medal with the earnings we saw from tech in the latest season. would you even be on the podium? they were okay, but they weren't as good as what the price action would have needed to maintain it. >> yeah, it would be pretty close if not on the podium. again, the valuations within tech have gotten extremely frothy. the s&p 500 at one point -- the growth index was trading at

about 50% higher than its 20-year average. again, the earnings are there. you look at communications services this quarter, coming in at 22% earnings growth. the classic tech sector coming in at 12% earnings growth. there's not a lot of the complain about there. yes, maybe a gold medal, but pretty darn good. i think you saw technical elements, of course, the unwind of the carry trade, creating a growth scare. it was slightly overdone, and it's something we should have expected with markets going pretty much nowhere but up. >> in the medium term, you say we may have come to the end of the longest late cycle period in history and could soon be moving to a recession. you're underweight stocks and overweight bonds, are you not? >> modestly, yes. we do think ultimately the lag of fed tightening will tip us into contraction. the one thing that's kept us in

the late cycle environmental is we've been spending like crazy. in fact, we've increased the size of the deficit of almost 70% of gdp, which is unheard of in an environment where we're still not at 2% inflation. the labor market still remains fairly robust here, so we've extended the cycle. we've seen the impact of that fiscal stimulus fading as we head into next year, and we think the cracks in the labor market are going to get bigger. topline revenue growth is l slowing, capital is increasing and markets are getting squeezed and they're going to lay off workers. we want to emphasize the income in bonds. we would be looking at every backup and bond yields as an opportunity to lean in to that income that's available. we still like stocks. we're looking at quality at a reasonable price. we want companies with great balance sheets, tons of cash,

low interest burdens, and the ability to protect the low profit margins. >> when the history is written about the fed and how they handle this, the soft landing, will they hit that, take a step back, or fall on their ktuckas? >> it's possible. the time the fed nailed it was the mid-1990s, but that was a period in which inflation has nod run away and growth was decent and the fed got ahead of it back in the 1990s. we may get through the soft landing. that doesn't mean we need to have a horrible recession, but it's got to show up. >> consensus is soft landing -- mission accomplished on soft landing. that's what the consensus is right now.

>> and that's mpriced into the markets. >> two years ago, we yeah, we're going to have a recession. we should have one by the third quarter. that's all we heard and it never came. now that it didn't come, it's never coming. emily roland, thanks. >> coming up, an anti-semitism lawsuit moving against harvard. we'll talk about that. and david risher in a few minutes about the company's results and so much more. "squawk box" coming up right after this. when you need to prepare for unpredictable adventures...

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a u.s. district judge has denied harvard's request to drop

a lawsuit against a university alleging it didn't do enough to protect students from anti-semitism. the lawsuit said harvard failed its jewish students. the lawsuit was filed by six jewish students saying the students didn't feel safe on campus and alleges the school didn't punish anti-semitics. it argued that breaking up the protest would have infringed on the first amendment right of the students and the court said it's quote, unquote that the school can hide behind being dubious. it will look at first amendment issues and anti-semitism which continues to be pervasive in this country. >> i don't even want to delve into all of this. it's kind of in the rearview mirror. i don't think we should forget those protests and the number of

not just the outside agitators, but the number of what was organic from the academics -- at those institutions and from a lot of the students that openly advocated positions that are absolutely beyond the pale. >> the question is it in the rearview mirror or is it just going underground again? >> here's what i don't want to discuss. here's what i'm getting to. i'm seeing on twitter that the reason this -- i told you this dude -- did you watch him yesterday? sh shapiro? >> shapiro. he's an assassin. i don't know why he wasn't picked, but there are some who say the pro-hamas wing of the democratic party. is there a pro-hamas wing of the democratic party? that's an easy way of saying it's too -- it's too trite. but if you want to describe it quickly, that's what it is, and

there is some appeasement and some -- i think they bent democrats to the worry about michigan and minnesota and it basically is appeasing the pro-hamas wing, and there should not be a pro-hamas weng. >> first of all, i pray this there is not a pro-hamas wing. >> do you think there is? >> there are some people -- >> and one of them's gone, cori bush. >> -- in washington that have used it -- >> what do you think happened? there's a lot of reasons. >> i imagine that there's a lot of reasons. >> that might be one of them. >> there was a piece in "politico" that suggested that the comradery, the relation between kamala harris and walz -- >> you know what i think? i think shapiro would outshine on policy issues and everything

else. >> i think it's fair to say, you know, there was a view apparently -- just from the reporting -- that there were people inside her camp who thought that he was either a showboater or something else. >> because he's got the goods. >> and he's got the goods. i'm not saying he doesn't have the goods. >> maybe not even has the goods. >> this is not defensive -- >> this is not what i wanted to get into. >> i'm praying, i'm praying that it's not about shapiro being jewish. that's what i'm hoping. >> not that he's necessarily jewish, but there are people that are so worried about the perception of not being -- you know, not the -- there's the have and have k-nots, the palestinians -- if you need to -- >> take it straight up and say straight up anti-semitism. i don't believe it's anti-semitic -- that i they're

anti-semitic, but i would say in this moment. as an american jew i know somebody who literal lay said to me yesterday, you know, given our popularity right now in the world, that might be the right decision. i thought, oh, my god, that's terrible to say, terrible. but my point is that that is in people's heads. did you see what van jones said yesterday? >> no, i'm afraid to ask. >> no. he said he believed that he believed anti-semitism is marbled into the democratic party. that's what he said. and that there's a strain inside the party, and that's where you're going with this. >> i'm not really going there. it's that people are actually saying the reason they didn't pick shapiro was to appeal to the pro-hamas wing of the democratic party. there really should. be a pro-hamas wing. >> i absolutely agree with you. there should. be. that whole idea is crazy, and i pray it's not true. >> we're not going to know if it's true or not.

it's true u in shades of gray. it's already true. your praying is not going to work. it's too late. coming up -- my point was, just think back to those -- what happened. so there it was. the -- that garment, all of -- global i.t. outage has now turned into a war of words between microsoft and delta air lines. we'll have the latest next on "squawk box." >> announcer: executive edge is sponsored by at&t business. the next-level moments need the next-level network. it's super-fast so, any pre-launch concerns? what if nobody buys them? that's mean or, what if everybody buys them? oh, i hadn't thought of that that's probably not gonna happen can we handle that kind of traffic? the network can handle it! i downloaded eight hours of true crime stories just during our last video call i'm learning a lot

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who need community, connection, and maybe a bit of magic. are you with them? learn more at uso.org today. the fallout has two corporate giants playing the blame game as microsoft fires back at delta air kovach is jo >> delta had to cancel flighted for several days in a road. ceo ed bastian said on this program last week the outage will cost the airline about $500

million. rebooking, hotels, so forth. they say, they declined to fix the system and microsoft ceo satya nadella emailed delta and received no response, also alleged delta is using outdated i.t. systems and the extended outage could be because of o'vendors besides microsoft and crowd soft. they named folks like ibm and others. they pointed out that you night nig nig nig nighted -- united and other airlines were able to get up and running. delta did not respond to mostly what microsoft and crowdstrike have been saying in recent days, but a spokesperson did tell us they spend billions on i.t. operations.

this is not over yet. >> here's my question for you. is it possible -- i mean effect i will i what microsoft and crowdstrike are saying is there was a certain set of systems they did control or they were running on where the problem was, but that there were other systems that delta had that maybe were daisy chained into this other system and this sort of created a cascade effect across all of those systems in a way that was different at the other places because they either had firewalls. >> they're basically saying you have old computers, old i.t. systems. this is your fault. you weren't ready for a system like that. they had to go through it. that's why it took so long. by the way, ed bastian when he was with you guys in paris last week, he said, we haven't heard from them. they're saying the opposite. they're saying our ceos directly reached out to you and you didn't respond.

we offered i.t. help. both microsoft and crowdstrike are saying this. >> what do you believe? >> i believe crowdstrike is mostly at fault. >> if you read the legal language, most of these software providers have almost no liability. >> here we have delta asking for half a billion. >> the way the contracts are spelled out, it's very hard to imply liability unless there's meaningful and gross negligences. >> this is not over. >> thank you for bringing this. appreciate it very, very much. when we come back, we're going to talk about ridesharing company lyft. it reported its earnings this hour. the ceo is going to join us to break town this numbers, his new guidance, and what it says about the consumer around the united states. back after this.

going to talk about ridesharing

going to talk about ridesharing

welcome back to "squawk box." woe were talking this morning about least reporting its second quarter results. we did that earlier this hour. joining us on the set in person, no less, with those numbers, is lyft ceo. it's good to see you. we were talking about guidance for the future, a little bit lower than had been anticipated. the stock is under pressure this morning as a result of that, i'm afraid to say. we want to understand, a, what just happened, but also, b, to the extent you're a barometer or signal to where you think the consumer's headed in this country, what's more to come? >> what just happened is we had our first profitable quarter ever in the company's history. that's a big deal and i'm going to look at the camera and say that inch you to the team. they've worked hard. record rides, record riders.

all of those things are good. and, by the way, faster pickup times, best pricing we've ever had. look, when we looked to the future, jamie dimon gave me advice. he said, just be careful about what you predict. what you can predict, what you can control. we can control great etas and del deliver, and we're superfocused. >> are you trying to say the guidance -- you're hoping to set it? >> look, i think everyone wants to beat the guidance. our goal is always to do what we say we're going to do. >> what do you see happening in this economy? we're all having debates every day. the market's down. there's questions about what the fed is going to do, growth in the country. consumer. are you sighing anything? we talked to your competitor yesterday and he said, we see

nothing. we're all sitting around going, if these guys are seeing nothing, what are we talking about here? >> i'm seeing 2 million people taking rides to get to the airport, school, whatever. lyft is a really important part of people's lives every single day. we don't see anything to worry about, we just don't. >> how much of the business is the consumer on their own versus b2b busy travel? >> the vast majority is consume sneer is that something you hope to change? uber seems to have taken a little more of the business. >> we're stronger on the consumer side relative to them -- well, doing know. we've got segments like health care and bnb. we love our riders and our consumers. >> you were talking about price competition. in some cities it's been a race to the bottom, which is not

good. that race seems to be over for the most part, but i think there's still a healthy competition taking place. >> there's healthy competition. i'll tell you where it's interesting right now. we're opening up a can of whoop ass on pricing. >> when is the last time somebody said opening up a can of whoop ass on our network that. >> i totally support you. there's no other great way to say it other than saying whoop ass. >> honestly, i looked it up on chatgpt and they said it's the right way you said it. pricing, you go down 25% q on q and that's why we're getting good growth. we actually have a new feature. 's called price lock and i allows people who commute to lock in on the same price every

single day for the same route. we're focused that and that's kind of our focus. in terms of -- we were also talking about sort of people look at both you and oober and we're saying it's like coke and pepsi in terms of the different kinds of businesses, and how do you think about getting into any of the other businesses or do you say mobility is the business? >> mobility is the business. we've had record bike rides. i think over 170,000 ride as day in new york city the last couple of weeks, which is crazy. that's like a public transit -- i think that's about as big as b.a.r.t. in san francisco, but we're focused on that. we've got partnerships. at the end of the day, we're really focused rideshare. that's a huge strength of ours. >> in terms of the conversation piece on pricing, just to go back to this. i was explaining i do this

little arbitrage between you guys and uber to see who's cheaper at any one moment. i do think you're cheaper than uber. >> our goal is to be priced at where the market is. and when we can deliver better -- >> what does that mean? how do you do that? >> a bunch of different ways. have a pricing team that spends their time 24/7 as well as a.i. we want to make sure drivers get paid well. >> what percent of your drivers happen to also be uber drivers, taxi drivers, or other drivers? >> it changes city by city. >> does it matter for your you? >> we want a preference. that's why we're seeing a preference shift. also women plus connect brings people our way. at the end of the day, people are going to be on multiple apps. they just are. i think it's a reality of the

market app. people are going to take their asset and put it to best use. >> final question. i imagine there's going to be a day when i say to the phone, i need a car from here to here, find me the cheapest version, and hopefully the phone, if it does what i want it to do, it's going to go into your app, the uber app, five other apps, and its ooh' it's going to do that. do you worry about that? >> it turns out people do like our brand. brands do matter, of course. people make brand choices every single way. that's why having the fattest etas, the best experience in the car matters so much. people are saying not just what the's the best price -- >> if it's a dollar difference, will you go with the dollar? >> would i go with the dollar?

>> your ash traung -- >> i don't know. no, no. dollar is not -- >> would you prefer one? >> it depends where i am. we were in paris and i was using uber for obvious reasons. >> back here, you don't have any preference. >> yeah. but i will admit sometimes i use uber eats, so i'm already in the app. >> so the dollar wouldn't be enough for you to switch out of the uber to a lyft. >> $5. >> $5. i told you -- >> that's what i'm getting at. did you say open a can? >> open a cap of whoopass. >> it comes in a can. >> i believe so. >> can you have a bag? >> as your spokesperson -- >> does its leak out of a bag? i'm not sure. i'm a little unsure on the exact packaging. >> you know who we need to get? a spokesperson.

the rock. he used to say that. he used to say open a can of whoopass. t is that right, producers? >> i may be wrong. if you're watching rock, open a can of whoopass on things to take a lyft. >> i'm for it. i think there could be other -- especially -- >> we'll do some research. >> maybe some removable type containers. probably recycle the can. >> "squawk" returning after this. i don't know what to say.

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welcome back to "squawk box." we have got disney just reporting its earnings.

earnings of $1.39 a share, well ahead, i mean, well, well ahead of the $1.19 estimates that had been -- analysts had been expecting. it is on revenue of $23.16 billion, that's also ahead of estimates. this marks the first revenue beat since may 2023. disney's entertainment segment operating income nearly tripled to $1.2 billion. that's well ahead of the $833 million the street was looking for there. company saying the performance was -- strong performance due to significantly improved results and licensing and other. disney plus core subscribers growing 118.3 million, also topping estimates. but experiences, and i think people will focus on this, on the top and bottom lines, we knew it was going to -- saying that the results are impacted by, quote, moderation of consumer demand toward the end of the third quarter.

that exceeded our previous expectations and that demand moderation could impact the next few quarters. the stock on the back of that news at least right now -- thinly traded before the markets opened, up 3.5%. >> this is the number here. streaming business, operating profit of $47 million, first time. >> yep. >> last year, loss of $512 million. so it went from minus 512 to plus 47. so, that allowed them -- >> coming a quarter ahead of schedule. >> yes, quarter ahead of schedule and that allows them to beat for entertainment operating in 1.2 billion, the estimate was $833 million. so, i mean, streaming is -- might be turning the corner. >> we'll see. >> back to -- >> i didn't know hulu would be so high. everybody knows there is an

arbitration, a case -- >> did you check? >> it's still ongoing and there is a debate, a fight over what the valuation is. could it be $40 billion on one end or $27.5 billion? >> you know what the world -- the exchange -- what is it wex, the word of the day, the word of the day for hulu, more. it is worth -- whatever it is worth now, it is worth more than it used to be worth. more. >> the stake you have in it, is it based on what it is today or was it when they called it a year ago? we'll see. coming up in the next hour, we're going to break down results -- >> i'm working with you. disney ceo hugh johnston, we can talk about this with him in a little bit. few more days of olympic action left in paris. carl quintanilla joins us with a look at the a.i. startup -- hulu is worth more than we thought, carl. i mean, i can't get him to say

that. it is just obvious. is it not? >> i'm with you, joe. i was going to weigh in. my mic wasn't hot yet. it is good to see you guys. i know you both understand the tech a.i. story here in france very well. tech startups are a huge priority for the french government. they are offering business credits, they have simplified regulation, they're creating a business incubator, it is not exactly what you think of when you consider europe and regulation and growth, but that's the perception that some leaders here say they're trying to break. this is station f, the world's largest startup campus. right here in paris, at this repurposed former train station, about half a million square feet, 30 different programs, all aimed at supporting the next generation of entrepreneurs, a lot of them focused on a.i., all of them taking advantage of the resources the station has to offer. >> all of this early stages of creating company, hiring of

employees, and just getting out of your room and getting a space to meet with your founders and do the first steps of the process. >> reporter: 65 nationalities are represented here, pretty vast array of talent. it is has attracted partnerships with apple and google, meta, microsoft. satya nadella, sam altman, cheryl sandberg, trying to improve the tech ecosystem, not just here in france, but around the world. >> the french nation is like the startup nation, right? and i think you really feel it here. this is the beating heart of the startup system in paris. it started drastically. there was a lot of political will to make it change. >> reporter: with political will now lighting a fire, foreign direct investment in france is now at record levels. and station f director roxanne vargas says this is just the beginning. >> we started to hear investors from around the world saying we're focusing now on france,

within europe. these are things we picked up on several years ago but in the last 12 months really accelerated. i think that's largely because of a.i. >> reporter: station participants have raised more than a bill euros each of the last two years. and as of 2023, they represented 15% of all funding raised in france. andrew, i know you talked with macron about this not too long ago. there is a generation of founders and entrepreneurs raised in france, educated in the u.s., they know silicon valley, and to a large degree they're trying to come back home and teach some of those lessons that they learned abroad. as for the games, guys, what a night for men's basketball. crushing brazil by some 35 points. to secure a spot in the semis. devin barker with a game high 18 points. they're going to face serbia in the semis tomorrow. and, andrew, how about kevin durant making history now as the team usa all time leading scorer in olympic competition now, with

494 points. he's surpasses lisa leslie who had 488. and as kd ksaid, records are mae to be broken. >> it was awesome. it is a nice way to tease it. we're going to talk to kevin durant, just so you know, the game plan event that is taking place in l.a. in early september. so folks should go check that out. but was it awesome, carl? we're obviously all watching it. did you end up, by the way, getting to go to that -- there was some kind of big usa basketball party with snoop and all sorts of folks. >> yes. yes. there was a huge effort by both the nba and nbc. you know how this works, andrew. everyone says, you must be having the time of your leetch. it anything you do is kind of extra credit. >> carl, i don't know if you got the journal over there or not, but there is an interesting piece on some of these guys, they never have seen the games

watching from a bench because they are -- they are the superstars of the team and the idea that they sit, like, you know, tatum or -- and all of them, high fiving their teammates when they come off and playing along, but some of the biggest stars in the world, steve kerr, has not put them in sometimes if it is not the right time and there is some -- some of the great players in the nba are not playing for team usa. some of the very best. >> serbia will be a great example where they're against yokich from the nuggets will be on the other side. that's what makes this whole -- the knockout rounds will be really interesting because of that reason. >> volleyball has been unbelievable too. and the beach volleyball, which -- >> beach volleyball. >> you were smart enough to go see that. >> very cool. i tried to drag -- i tried to drag you there. >> i had how many other things that day, it was, like, 12:00 at

night. it was 12:00 at night and i still had makeup on from the show which was on -- right? >> that's just on a regular day, joe. >> i hadn't been able to touch it up. that's the problem. >> carl, you're doing -- it is awesome. it is awesome to watch. we appreciate it. and i know we'll be seeing you again very, very soon. >> we already had been to fencing and swimming. >> i know. doing a lot of stuff. it is just after 7:00 a.m. on the east coast. just past 1:00 p.m. if you're in paris this morning. you're watching "squawk box." i'm andrew ross sorkin with joe kernen. becky is off. among today's top stories, a lot of things going on in the markets, airbnb shares, they are plunging, the vacation rental company reporting second quarter earnings that missed expectations and warned that it is seeing signs of slowing demand from u.s. consumers. meantime, china's imports growing faster than expected in july, but export growth coming in below forecast exports in dollar terms rising by 7% year

over year. missed stichlt ed estimates of increase. novo nordisk is lower. maker of the popular weight loss drug wegovy posting weaker than expected second quarter profits. trimmed its full yoear profit outlook and missing sales estimates. the company's ceo saying he still sees very attractive growth ahead for the company. checking the futures this morning. they are rebounding once again, getting back to some of the highs that we saw yesterday. which as i said still don't get us back to make up all the losses we saw on monday. let's get to dom chu with a look at this morning's premarket movers. hey, dom. >> so, joe, andrew, we'll get started this wednesday morning by checking on shares of cvs health, up by 3% or so. the drugstore chain reporting a beat on earnings, but a miss on the revenue side of things for the quarter. the company lowered its full year outlook, citing weakness in its healthcare benefits

business. those shares by the way are down 28%, 29% just this year alone. cvs health in focus. then we'll check on shares of rivian, down roughly 7% or so right now after the electric vehiclemaker posted a beat on the top and bottom lines. but reported widening net losses for the quarter. those shares have been hit hard this year, down by 40% or so as the company tries to reduce costs amid losing thousands of t dollars in every vehicle it makes. rivian down 7%. and we'll finish off by rlookin at shares of lumen technologies, up around 30% premarket after climbing 93% in yesterday's session. you can kind of see some of the moves that we're seeing there. and the reason comes as the telecommunications company said it secured $5 billion in new contracts, and is in talks to secure an additional $7 billion. the company raised its annual free cash flow to between 1 and

$1.2 billion, from a prior estimate of between 100 to 200 million. that likely contributes to that significant jump in the stock price, but lumen technologies not a name we talk about often, a $6 stock, but up 29%, getting a lot of attention. i'll send things back over to you. >> it was about, i don't know a.i. connections, something about a.i., i read, dom. but i checked out the history of that beauty, yeah, so, it was down in the low single digits. and it had been 40. maybe ten years ago or something. so, $5 billion market cap before today, so at 40, it was a $40 billion market cap. so, it is that fallen angel that is getting some attention right now. a huge percentage gain just in -- look at that. >> sometimes timing is everything, right? >> you got to go back ten years and you get all the way back to the $40. >> it is bad. if you look at that overall,

look at that trend line. >> there it goes. there it goes. i predicted that. i'm really good at predicting the past. the future is much harder to predict. >> i'm going to work on that too. i'm not good at it either. >> future is much harder to predict. we got a lot more coming up including hugh johnston, he'll join us in a moment to break down the results from the entertainment giant and the decision to raise streaming prices. "squawk box" coming back after this. i can't believe you corporate types are still at it. just stop calling each other rock stars. and using workday to put finance and h.r. on one platform. tim, you are a rock star. using responsible ai doesn't make you a rock star. it kinda does. you are not rock stars. (clears throat) okay. most of you are not rock stars. oooh. data driven insights, and large language models. oh, that's so rock roll. it is, right.

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okay, team! oh, thank you so much i couldn't have done it without you. honestly, i don't do a whole lot here. i'm really just here for the at&t internet, it's super-fast so, any pre-launch concerns?

what if nobody buys them? that's mean or, what if everybody buys them? oh, i hadn't thought of that that's probably not gonna happen can we handle that kind of traffic? the network can handle it! i downloaded eight hours of true crime stories just during our last video call i'm learning a lot welcome back to "squawk box." disney just out with earnings of $1.39 a share, better than $1.19 that the street had been expecting. the company also beating on revenue of $23.16 billion, marking the first revenue beat since may of 2023. joining us right now, hugh johnston, disney's cfo. great to see you. congratulations on what has turned out to be a great quarter. want to talk about that great

quarter, also talk about the experiences piece of this, that is a challenge, part of the business, a lot of people have questions about where the consumer is going in this country and elsewhere around the world and i want to get into the pricing issue given that some of your streaming products are going to go up in price and just how much pricing power you think you have. let's go back in time first and talk about this last quarter. >> yeah. happy to. good morning. great to be with you guys as always. quarter was very strong. as you noted, 4% revenue growth, 35% eps growth. and as a result of that, we raised the eps guidance for the year to 30% growth. so, certainly feel really good about that. portfolio is working very, very well. and as you all have noted, most importantly the entertainment business, which is really the heart of disney, is performing exceptionally well right now. in a lot of ways, we returned ourselves to the standard of excellence that we had when we were producing multiple billion dollar films per year and we had the three biggest films in the

biggest film in may, biggest film in june, and biggest film in july in total, aggregating to almost $3 billion in box office. so, feel really, really terrific about how that business is going and that, of course, pumps oxygen into the rest of the company. so, yeah, it has been a great quarter and we feel very, very optimistic about the future. >> on the streaming side, is this a major turn? we swung from a big loss, obviously, to a gain now. is this a turning point not just for you, but do you think this is a turning point for streaming more broadly? >> we certainly think it is for us. and if you look at where we have been over the last few years, you go back to a couple of years ago, we were losing a billion dollars in a quarter. we're at the point where we said we were going to make money in q4, we did in q3 and our expectation is we're going to continue to go up from here. so, very, very positive about that business. you mentioned pricing as well, and i'll get in front of that one a little bit. it is interesting, people tend to focus on price, but, remember, value is what the

consumer receives. price is what the consumer pays. and the value that we're putting into the streaming service with our ip right now, with inside out 2 coming and all the great tv shows like "the bear" and "abbott elementary" and showgun," we can take that pricing. >> the expectation, we're showing different pricing structures on the screen now, huguely without ads, $18.99, withed as, $9.99, i assume you're making more money on hulu with ads than without ads. what percent of your customer long-term is going to be watching it with ads and without ads, for example? >> yeah, it is a great question. and the reality of it is we're relatively indifferent between if they choose with or without ads. we're trying to give the consumer the most choices they have, so if they want ads, that's terrific news for us. if they want it without ads, we're perfectly fine with that as well.

it is hard to predict where it is going to land. we'll see what the consumer tells us and adjust accordingly. >> how much growth are you expecting on the subscriber side with the new pricing increases? >> so we said in the next quarter we'll grow modestly. beyond that, anytime you take pricing, you typically get a little bit of dislocation. but i think the climb is going to be inexorably upwards. we have a rock that is terrific right now. the combination of disney plus, along with hulu espn, we'll be bringing flagship with espn later in the year, we have a terrific value proposition and a great broad brand portfolio that makes it very attractive to consumers. >> i don't know if you were hearing joe and i talking earlier about hulu and the value of hulu. and how much hulu is worth and maybe how much it should be worth, how does this change the

value of hulu or does it? >> what an asset, hugh. like a crown jewel. it is like a gem. >> there is a -- >> a crown jewel. >> we should say there is an arbitration going on between our parent company comcast and your company over that valuation. i believe you believe it is worth something like $27.5 billion. comcast believes $40 billion. i also wonder are you supposed to freeze it in time or does this have any impact on it? >> i'm married to a lawyer, one thing she taught me long ago was when you're in the middle of a legal case, don't talk about it in public. >> oh, my god. pay up. >> let me ask you a question that i think you can speak to, the experiences part, the parks situation. obviously you made a big point in your release to talk about just how that has now become a challenged business or more challenging than it used to be. what do you see going forward and what are you seeing about

the consumer right now? if people are going to take price up on streaming, for example, but then they won't go to the parks, how do you think about those two things? >> yeah, so, a couple of thoughts on the business. first, we actually grew the business in the quarter. so, i know it is a little bit short of expectations. but this is not a business that was down from a revenue perspective. attendance and domestic parks was flat and in addition to that, the business is in a fundamentally healthy place. it is just a little bit softer than it was before. the second thing to keep in mind is compared to where we may have been five or ten years ago, 40% of that experiences business is either consumer products or inter international parks. and those businesses are doing very well right now. the u.s. consumer is a little bit soft. you've seen it from a whole variety of consumer companies reporting that we're both well familiar with. but in reality, people will tend to hang on to their vacations quite strongly because it is an

important piece to the family unit, and as a result, we think this is just going to be a few quarters and we'll be fine coming out of it. >> the question about travel, though, and we were looking at these airbnb earnings which were way below expectations is whether the sort of yolo life is coming to an end here. >> yeah. i'm not sure that that's the case. for a couple of reasons. certainly the lower income consumers are more stressed and they're dialing back and watching their dollars more. at the same time, higher income consumers are traveling internationally much more and we can see that in the data that we get. those people we think eventually they're going to come back and as they come back, the attendance will start to come. so, you know, one of the things about this business, and it is a great business, because it has such terrific ip, it tends to get hit late, it gets hit less and recovers early, relative to the other theme parks that are out there. so, i do believe the parks business is in fundamentally good shape. it is a little bit softer than

it was before. and we think it is going to continue to grow as we look forward to the coming quarters. >> you also announced the pricing of venue, which is the sports bundle that is going to be coming. what is your expectation of what that does to the larger bundle at this point? at that price point? $42.99. >> $42.99 is the number, right. it is a great question. what we really tried to do with espn, and espn is the strongest consumer franchise out there in sports. and the third quarter, we actually had a 49% share of sports viewing with espn. we're trying to bring sports to the fan wherever they are. and in any way they want it. so if they want it through the bundle, that's great. if they want it through espn plus, relatively narrow app, that's great. flagship adds a little bit more. venue adds a little bit more. we're trying to create consumer choice and then allow consumers to choose how they want to view sports and how much sports do

they want. >> do you expect it will accelerate the unbundle of the bundle if you will? >> i don't think so in a material way. i think we're more picking up people who probably exited the bundle. at the margins, might it a little bit? i suppose that's true. but we don't see that as a major strategic thrust with venue. >> and how do you see the profit sharing or revenue sharing in the early days, probably revenue sharing but we'll see, between your partners and i'm thinking now of warner bros. because if tnt doesn't have basketball, i imagine that's going to mean that the sharing program is going to look different. no? >> well, of course, they'll have it for the upcoming season. so that doesn't really kick into gear until the following season. we're all going to get paid based on the rates that we receive out of the broader cable deals that we have. so, from that perspective, no real change. we're relatively indifferent. >> but they may not hold on to those rates is the point. >> that's going to be something

that we'll all have to take a look at when we get closer to that point. >> okay. we appreciate it very, very much. thank you for joining us this morning and congratulations on a great report and moving up a quarter early on that streaming number. so, great. thank you. >> great to be with you guys. >> still to come, former boston fed president eric rosengren on the central banks rate path and whether he thinks an emergency rate cut is or might be necessary depending on what happens. "squawk box" will be right back. tax smart investing today, helps to build a stronger tomorrow. at pgim custom harvest, our unique direct indexing approach seeks to help investors achieve better after-tax outcomes. pgim investments. shaping tomorrow, today

this summer in paris, pgim investments. we're seeing hard work, dedication, and a whole lot of... [“joy (unspeakable)” by voices of fire ft. pharrell williams begins to play] anastasia pagonis still feeling the joy. grant holloway how about that! keep the flair, keep the emotion, keep the showman, the sport needs it. ♪ ♪ welcome back to "squawk box." some stock movers to watch this

morning. we are looking at shares right now of server company super micro computer, falling sharply after the company announced fiscal fourth quarter profits and revenue miss on expectations. gross margins also falling to 11% from 17% a year ago. company did note that it does see a record demand for new a.i. infrastructure and expecting higher than expected revenue in the next quarter. super micro announcing a ten for one stock split, split adjusted basis on october 1st. that stock right now, where you see moves of this magnitude off by 14%. >> wow. check out the shares also of reddit, the social media platform posted better than expected sales numbers and narrower than expected per share loss. and the company now sees stronger than expected revenue in the third quarter as well. this is reddit's second report as a publicly traded company. coming up, is the recent dip a sign that the move in small

caps is already over? we'll touch on that area of the markets next. and then later, former cea chair jason furman joins us to talk why he says -- tell us why he says the fed should keep an emergency rate cut on the table. "squawk box" will be right back. >> announcer: time now for today's aflac triaiv question. which american athlete holds the record for most consecutive olympic gold medals in the long jump? the answer when "squawk box" returns. helped pay for medical expenses, groceries, rent. it really helped close that gap. (whisper) go, go, go! (group) yay! go aflac! go duck! get help with expenses health insurance doesn't cover. find an agent. get a quote at aflac.com. wish we had aflac on our team. you can! [ music ] (♪♪)

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>> announcer: now the answer to today's aflac trivia question. which american athlete holds the record for most consecutive olympic gold medals in the long jump? the answer, carl lewis. yes. and we're going to see whether noah, andrew, can actually -- should be the 200, don't you think? the 200 meter. that would be first american to do that since the same guy we were just talking about, carl lewis. >> you and i should run the 200 meter and see what happens. >> i could run the 200 meter. >> you could? >> yeah, it is like market calls, don't -- you can say which direction, or when it is going to happen, just never say both. right? we could finish.

we could finish. >> walking. >> recent market volatility has investors wondering if the summer's rotation in the small cap stocks is over. joining us now, jill carrey hall, senior u.s. equity strategist and head of u.s. small and midcap strategy. like so many things, jill, it is something can happen, and it can be exactly what you want, but then it usually has, like, but it has got a but, but at the same time this is -- so we thought that inflation slowing would allow the fed to cut rates, which would be good eventually for the small caps. so we started to see the -- started to see the rotation. but if they're cutting much more quickly than they thought or needed an emergency cut or needed 50 basis points, then you're talking about an economy that is actually slowing, which would hit the e-side of the small caps. so, how do you gauge which is -- which is a headwind and is it the headwind always worse than

the tailwinds, are the tailwinds win out? how does it work? >> right, we talked to a lot of investors and they think the fed and the confidence was one necessary condition was neceand the thing we have been highlighting that was the other necessary condition for the rally to be sustained is if we see improvement in the fundamental story. i think what is worrisome is that the -- in the beginning of the year, everyone was expecting that by this quarter small cap profits would have recovered, been positive, been outpacing large caps, that hasn't happened. estimates have continued to get revised down for small caps. so there is a big expected pickup in profits growth in the fourth quarter that we don't know if it is going to materialize. trends this earnings season haven't been that great, guidance is much weaker for small caps, sales have missed. we have seen a record negative spread in corporate sentiment on earnings calls and the history

of the data we have been tracking. so i think until we can see a shift in those fundamental trends for small caps, we have been seeing the rally could stall. if we see a better shift and watching the macro data as you mentioned as well, because indicators like the ifm have been declining, that's a correlated one with small caps. we're still not expecting a recession or recessionary rate cuts. still expecting a soft landing, so still expecting the economy to remain resilient. but small caps have been in thenningthen i this earnings recession. so the data will be important for them as well. >> it sounds reics like you're the rate cuts are what you were hoping for and what you were expecting. maybe 25, two of those before the end of the year, that will allow -- that will mean the economy stays soft landing, stays, you know, doesn't -- no recession, so there could be earnings numbers for the small caps should be expected to be okay or improve, but in the

past, it hasn't always happened. why has there been an earnings recession in small caps? >> we had both large and small caps in earnings recession last year. it was a period where, you know, we have seen parts of the economy weaken, we had these periods in the past where you had, for example, manufacturing recessions, but not a full on economic recession, small caps have also sort of deteriorated in quality over time and at least when you're looking at the russell 2000 index, about a third of the companies have no earnings and we saw them get hit during covid, and then another earnings recession, you know, most recently, so, typically the earnings recover faster than large caps, but we haven't seen that -- >> so bottom line, the nascent rally, small customer doing very well, there is a rotation. is that continuing or it already has run its course? >> for now we see a pause until we can see more confidence in those fundamental trends turning around. and the economic data holding up obviously. as you know, we're expecting a

soft landing, but watching the data, some things can change. i think the way to position right now is there are still parts of small caps that are still well positioned. i wouldn't buy the russell 2000 index necessarily, but i think focusing on the stocks that have been able to beat and raise, focusing on stocks that are simply revising estimates up in an environment wherefore casts have been coming down, focusing on quality, which is a hedge against volatility, volatility does rise at this point in the year in election years, some of those areas of small caps are still poised to outperform. >> okay, great. jill, thank you. thank you for coming in, in studio. i hope, you know, i'm hoping i did -- it is b of a global research, the b of a does stand for bank of america global research, but it is not bank of america global research. have i got that right? >> i think so. >> that's in yellow here. i don't know whether you got the same notes.

era nkf a stands for ba o amic-- >> branding for b of a global research. coming up, venture capital ti capitalists, where they're putting their money in the race for the white house. don't go anywhere. [dog barking] ♪ woman: [screams] ♪ [explosion] [explosion] ♪ [lock clicks shut]

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a group of venture capitalists placing more bets on the race for the white house. megan cosellia joins us on the set with more. >> yes, absolutely. so this is a group of some 820 now venture capitalists, tech leaders, overseoverseeing and t message is they want to support harris because they're pro demo democracy, pro strong institutions and they feel like they have to. their goal is to raise $5 million by election day. not a huge amount of money on its own, but more trying to send a message they felt like what she called a changing narrative in silicon valley that it didn't represent her and didn't represent the people she was talking to most often. so she called this a accn accidl movement because in over a week now they have gotten 820 or so signatures and big names, mark cuban. >> what was the reaction to the

donor class yesterday? >> quite good. reed hoffman put out a statement saying he thought he was pro business, he was pro innovation and -- >> isn't that all to be expected? i'm talking about those that are sort of -- those who are sort of locked in to the democratic party and the system and know where they're going to be. >> this is a stretch. you got mark cuban and come on, he sat in the front row of every hillary rally. what about peter teal, andr andreessen, musk. when i think of vc, i don't think of mark cuban and victor -- >> i'm talking the broader wall street donor class, business donor class. >> but the big switch this year is that vc out there which would have never come anywhere near trump is suddenly much closer to trump. that's the headwind. >> they say they got this movement here because that that is a group and they're very loud and they're successful, but

they're not the only group. to your point about the donor class, i was trying to talk to people before the pick was chosen about who they would choose and what i thought was interesting is donor were ambivalent. they had their favorites, the people they liked, but they didn't say she has to do this or the ticket is going to go down the drain. >> you didn't get the sense that there was a clear leaning toward shapiro in the business community? >> i didn't think overwhelmingly so, not to the extent they felt like this was the bad choice or the wrong one. >> i'm not saying -- but i'm saying there was a sense at least from the folks that i would be talking to, and maybe i'm talking to the wrong group, that would say, you know what, if the plan is to move towards the center, if that is the ambition, the signal would have been more shapiro than a walz when it comes to fracking, when it comes to, i mean, look maybe some of the international issues. >> driver's licenses, illegal

immigrants, they can vote. this guy is left of bernie sanders. >> that's not true either. >> it is. >> he's not left of bernie sanders. >> he is, in certain respects. bernie is in awe of some of the stuff he got done in minnesota, andrew. he is. >> joe manchin is praising him too. i think two things on that, he's bipartisan, he's an independent, and they're saying that this is a -- he was the seventh most bipartisan member of congress when he was there over his six terms. and that he can come off as more moderate. they're praising progressives are praising his progressive agenda but business leaders say we can work with this guy. it seems like the polling of shapiro didn't make it seem like he was a runaway to help them win pennsylvania so they didn't feel like they had to pick that choice to make that step, that they could do it anyway. >> megan, great to see you, thank you. >> thank you. >> coming up, pressure mounting on the fed's rate th.pa we'll talk to former boston fed president eric rosengren on why he says aggressive easing is not

needed. that's next. "squawk box" will be right back.

welcome back to "squawk box." i'm frank holland with your cnbc olympic brief. gabby thomas took the 200 meter gold medal on tuesday night, first american sprinter to do so since allyson felix back in 2012. the u.s. women's soccer team headed for the gold medal match after beating germany 1-0 in the

semis. so the u.s. men's basketball team advanced to the semifinals after beating brazil 1-8227. kevin durant passed lisa leslie for the most points scored in all time olympic competition. the team plays serb ia tomorrow. "squawk box" will be right back after this. this cnbc olympic brief is brought you to by comcast, bringing the joy of the olympic games home. you next time though. oh i got you, i got you. down goes jewett. jewett and amos are down. what a lovely sign of sportsmanship. you okay? yeah. ♪ ♪

sure, i'm a paid actor, and this is not a real company, but there is no way to fake how upwork can help your business. search talent all over the world with over 10,000 skills you may not have in house. more than 30% of the fortune 500 use upwork because this is how we work now. friday's weak jobs report and monday's market route spiked recession fears and placed pressure on the fed to cut rates for a closer look, let's bring in former boston fed president eric rosengren, he's now a visiting scholar with m.i.t.'s

golub center. good to have you on. is it good to have any of you gentlemen or ladies that have actually been there when the decisions are being made to get an idea of what is going on, if we could be a fly on the wall. do you think at this point there is anyone on the fed who is considering an interim cut or would consider it if the data continued to deteriorate in terms of the labor picture? >> i think the conditions would have to deteriorate very substantially to do an intermeeting cut. intermeeting cuts indicate that there is a severe concern that without taking action, you'll end up having a bad outcome for unemployment or inflation. that's not the situation right now. we have had some substantial volatility, but i don't think it actually tells us very much about the u.s. economy. the main reason we're seeing the volatility is that many traders

were very comfortable borrowing in japan and investing in risky stocks in the united states because both the bank of japan and the federal reserve were on hold. once the bank of japan made it clear that they would be willing under some circumstances to raise rates, and the fed would be willing to lower rates, the exchange rate risk on that trade becomes very substantial. and those traders start unwinding those positions. so i think it tells us more about financial positioning than it does about what the underlying strength of the u.s. economy is. >> what is the next data point, do you think? or the next three or four that are going to be the most important and do you think, eric, that it is definitely economic data or will market data, by that, i mean, if there was another -- another day like we had on monday, let's say that there is a couple more of those, would that -- then you wouldn't

need the economic data to get the fed to act or do they need to actually see it -- because, you know, it is a lag. they don't know what's coming and the market might know before the economic data. >> so you're right. the market does anticipate things they think are going to happen. but you have to ask what are they anticipating? so far, if you look at private sector forecasts, if you look at the atlanta fed gdp now, they're indicating gdp growth for this quarter likely to be between 2% and 3%. gdp now's close to the top of that right now. i would be closer to 2.5%. but we're not seeing much in the way of underlying economic data that would indicate that financial markets are actually signaling a problem. one reason the fed sometimes reacts to significant changes in financial market pricing is because they're worried about broader financial stability

risks, that banks or other financial intermediaries are going to start having significant problems. right now, most banks are well capitalized and in a pretty good position. there is no obvious financial instability issue here. and the economy continues to be doing reasonably well. so, if we thought that there was undermining of confidence of both businesses and consumers, that might be a reason to do more in september or at future fomc meetings. i don't think it would be a reason to do anything between now and september. it also looks like the fed is in effect a panicked reaction to changes in financial market pricing. and to be honest, we had a pretty good run-up over the last couple of months. it was probably not unanticipated that at some point there would be some declines and financial markets and financial traders are poorly positioned for a change, they need to exit those positions quickly.

but that doesn't tell us much about the underlying economic conditions of the u.s. economy. >> the rule that a half a point increase in the unemployment rate ushers in recession, which has been -- the som rule or whatever, i know you're familiar with it, we're there. would you have ratcheted up your probability of a recession versus a month ago? i don't know what you were a month ago and where you would be now, but would it be up ten basis foipoints, is it 30% now, 40%? >> yeah, so i think it would be well below 40%. >> it would be what? >> the economy was doing pretty well going into this last stretch. so, inflation was coming down, the unemployment rate was close to full employment. gdp growth was doing reasonably well. gdp last quarter was 2.8%.

so, those aren't conditions that normally are indicating a flashing light for recession probability. so i probably would have had probability of around 15% or 20% coming into this stretch. with the stock market being this volatile, things can happen. you can find out that some financial institution are particularly poorly situated for the kind of volatility we're seeing. so i would increase it maybe 5 or 10 basis points, but i don't think it is dramatic. i would wait to see if there is underlying economic data that seems consistent with the concerns being pressed in financial markets. >> okay. eric rosengren, and you've got no -- i know you like your colleagues and, you know, the fed has a tough enough job without all the second guessing and monday morning quarterbacking, but all the

wagons are circled. we haven't had anyone on that thinks that houston, there might be a problem. we haven't had anyone say that, any of the previous fed people. i hope you're right. obviously. but thank you. >> i hope so too. >> okay, see you later. >> okay. chatbot that compensate content creators. later, surrogates of the harris campaign. maryland governor wes moore will join us to talk about the race for the white house. wire we're going to come back with the governor in just a little bit. back after this.

coming up, a.i. start-up building a chatbot sourcing info and sharing revenues with content owners like "the atlantic" and "financial times." we're going to talk with the company's ceo right after this. this is "squawk box" and you're watching cnbc.

welcome back to "squawk box." generative a.i. start-up raising $25 million in a series-a fund-raising round. the company building its own subscription chatbot sourcing information and sharing revenue with content owners and could be a game-changer, depending how it goes, for the world of content. quite worried, frankly, about

a.i. and what it's going to do. bill gross, idea lab charmin. a serial entrepreneur created all sorts of businesses. this is a serious one and worried how content creators will be compensated. this may be an answer. >> i think this is the answer, andrew. set the stage. a.i. is powerful and unfair. and we're making it fair. creators and users deserve protection. an grew, you've written books. i have yours right here. great books. >> god bless you. >> thank you. copyrighted consent scraped, served up in answers to search queries. yours and all quality content properly needs to be compensated. right now a.i. rhythms are stealing content. no attribution to hoomp owns it. gnome stealing, indiscriminate, scraping bottom of the barrel leading to inaccuracy and

hallucination. by relying on content partners leads to unfairness. response incredible. since the last day announced yesterday morning 50 more creators and publishers contacted us and ceo, you know, jess, reached out to me. by the evening signed a deal to join our platform. we're excited about the enthusiasm we're seeing. it's an existential threat to creators around the world. >> bill, here's the question. the way your system works, it's effectively creating attribution after the fact? meaning looking at what's being spit out and then effectively trying to almost tokenize it on a certain attribution basis? >> what we do, invented an attribution algorithm to look at output of generative a.i. and figure out the sources that contributed to it. for text, for images for music and movies. this is going to be so powerful,

because this can lead to fairness. attribution is so important. if you don't give credit to the people who create the knowledge the knowledge will disappear. no incentives for people to continue creating the great stuff. we feel we're building a new economic model. it's not paper click or licensed to train, it's fully pay per use, the way we believe it should be. >> how is that going to ultimately work, though, in terms how content creators do get compensated themselves? >> we're proposes a site wield build getting 50% revenue share of all revenue we make. whether subscription, advertising, micro transaction res revenue. we believe 50% should be shared. our al ba gorithm figures it ou what amount each sew get based

on their kcontribution. >> say too big to fail online to get spit out in whatever the document is that the a.i. produces. so three sentences of my book and three sentences represent, let's say -- you know, 5% of whatever the full document is that somebody's creating. how does the compensation work? >> yes. we've come up with a system that takes both the words, the style and the claims into account. the claims is the important part. so you might make a very novel claim in those sentences which is so unique across the whole internet and across all works, that gets the dominant portion of the revenue share. we've worked on this algorithm to make it fair and working with partners to assess whether it's fair. we want to be the independent sort of attribution everybody agrees is making the splits properly so everybody is compensated the right amount. >> bill, it is a fascinating

project. as somebody in the business, i'm rooting for this to work. so we wish you a lot of great success and hope that you'll come back and continue to tell us about your progress. >> thank you so much. great to be here. >> thanks. it's 8:00 a.m. on the east coast. do you know where your children are? remember this? >> i do. i do. >> yes. mine, i don't know, because -- they're still children to me, but -- this is "squawk box" on cnbc. you know where your children are. >> i do. i do. >> that's good. there will come a time when you don't. i'm joe kernen along with andrew ross sorkin. becky is off today. among the day's top stories disney beating analysts third quarter profit and revenue estimates. disney+ turned profit first time ever. stock under 90. cfo hugh johnston had to say about that when he joined us last hour. >> if you look in sort of where we've been over the last few years you go back a couple years ago. losing $1 billion in a quarter.

now at the point we said we'd make money in q4, actually did in q3 and our expectation continue to go up from here. >> drug store giant cvs reporting second quarter earnings above expectations, but the company slashed its full-year profit outlook third quarter in a row. and the deputy governor of the bank of japan says it's bank won't raise interest rates when markets are unstable. that's lowering expectations for a fleer-term hike in borrowing costs. you might remember one week ago today the doj surprised traders with a 15 basis point rate hike made the trade less attractive and spoons for the rout in the nikkei and here. on monday the nikkei continuing its come back. today rose another 1%. a look at futures this morning. looking up after what's been a wild, wild week. dow looks like it will open up about 290 points higher, nasdaq

up 203 points higher. s&p 500 looked opened about 51 points higher. a look at treasuries as well. ten year now back up at 3.927. two year up over 4. just came to 3.99 hovering around 4. straight over to mike santoli at the new york stock exchange what he's looking at this morning. mike? >> yeah, andrew. yesterday a constructive maybe not decisive bounce after that three-day skid. you did have about a 1% gain in the s&p 500 but closed about 1% off the intraday highs now the pre-market futures and s&p suggest we're going back and retest yesterday's mid-day highs. see what work we have to do here after this decline cracked below the 50-day moving average. above 5,400. a hurdle. market's in a corrective phase. you have halting rallies. people trying to test it, see if there's actually genuine buying as opposed to relief rallies.

what happened last year. initial drop below the 50 day in august. that is rebound out of that. yields started to surge and the full 10% correction. obsiously different now. a growth scare. not about yields going higher and inflation staying higher. see how that develops. semiconductors relative to the s&p 500. lost leadership to a degree of semis. nvidia looking to firm up. on ot down side. x and nvidia semis well underperforms s&p one-year basis. trying to hold things together 20-plus percent decline pup see the air under the semi. part of the repair process of this market at this point. take a look at a longer term five-year churn. big decline in alphabet, antitrust finding did harm,

didn't change overall trend relative where meta is now, too. hard to say if these are going to be, joe, defensive stocks again, as they've served at times recently, but that's one of the things in play today. >> very good, mike. certainly is. keep an eye on it. coming up several big interviews. speak with a former u.s. assistant attorney general in charge of antitrust on the ruling against google, and former council of economic advisor chair jason furman and maryland governor wes moore. stay tuned. you're watching "squawk box" on cnbc.

welcome back to "squawk box." an accusal of inspires to boycott the platform robbing it of billion of income. violating antitrust law. video message arguing a small group shouldn't be able to dictate what kind of content is

monetized. fumbled after elon musk bought that platform. i say of course not because he bought the platform. we know that's what ultimately happened. the company was doing at least $1 billion in sales each quarter. that's down about $150 million a quarter now. we're going to talk more about antitrust with former assistant ag markan delrahim in just a few minutes. joe? sick of this, by the way. suing advertisering because they're not advertising. >> right. thinking i was revisiting my default position on google a little bit, too. some of the censorship and other things, the way they prioritize certain things. >> the way you want them to be -- >> no. i think it may be google -- i just think maybe google might not be the perfect corporate citizens. >> now willing to -- >> i don't know.

open to talking to you about it. i'm open to talking to you about it. normally say, let the chips fall where they may. but in this case -- >> suing the advertiser. saying you're not advertising with us so we're going to sue you. >> it's because they don't like their ads next to something, the mark zuckerberg liberal line, then i would be angry that that's -- >> i think mark zuckerberg has-- >> i'm talking in general out there. remember what twitter used to look like before he fired 15,000 people they didn't need? >> but the question is, do you think that the advertisers should be allowed to talk to each other? >> well, said prices, set prices definitely. >> not set prices. to make decisions like this? or say we think you guys are not a good publisher. we like this guy. not this guy. >> no. that doesn't sound -- >> very interesting. >> doesn't sound good. although the things that go on -- things that go on we don't -- that we don't assume

are actually going on, probably -- >> blow your mind. >> don't you think? >> probably. across the board. >> yeah. >> this is you, sir. >> and i'll read it. the vix settling back down after it spiked earlier in the week. joining us with the mark sell-off, what comes next? what were you thinking when it got above -- how high did it get, scott? well above 50. wasn't it? >> well above 50, joe. obviously a shock, because living in a slow regime for quite some time now. but, heck, going back in our etf work over the years i think there's been a strong group of traders out there that when they see these volatility spikes there's a natural proclivity to want to sell into it, because the real feature comes with etf on the vix usually means there's better odds that the elevated vix won't usually persist. >> do you think at this point

the highs have been seen on the vix? i guess that's the same as saying do you think that the, that the panic we saw on monday was that just a one-off, or was it the start of something that could lead, maybe, to us thinking that maybe the soft landing narrative is suspect? >> well, i think you touched on the key point. i'm not positioned to comment where the vix is going from here, but these spikes usually are not long-lasting. i would say in terms of what's transpired a lot of discussion around trade and degrossing all of this probably feeds into the same narrative. the narrative many investors were caught positioned down a path that got upended on three fronts. you lost some of your a.i. conviction. with the nvidia news. you've lost some of your soft landing conviction, as we're

looking at the more recent economic data pointing to higher conviction of a fed pivot. then on the election side, a very strong view that you had a pro-business trump lead that now has been erased. so all three of the forces that in our view have been supporting the market as we were at or near recent highs have had some doubt run into play, and that's quickly, quickly been reflected to a point where, you know, we think we're more confident that we're getting close to having priced a lot of that concern in. >> do you think at this point, looking at technical data that we're seeing, scott. is the lag effect of all the things that the fed did, is there more to come? have they been too restrictive? stayed too long, in your view? i know that maybe is not -- you know -- what you normally comment on, but are you worried about that. >> look, my view has been that the fed loses the narrative.

that's my big concern. that you hold an aggressive hawkish stance too long. you don't allow for the fact that economic data, as its reported, will tend to lag the fundamental circumstance and wake up and find that economic active they been in a decelerating mode and now you have to go into overdrive and attempt to pull it out. right? with a more aggressive response. which is now what's happening, right? so the good news, if you will, is that we're now talking about here in citi, two back-to-back 50 basis point cuts september and november and another 25 in december. looking at a more aggressive response. now, i have to navigate what all of this means for enings via economic sensitivity and i got to tell you, joe, our view has been pretty consistent here that we think you have to be clear on differentiating the s&p 500, i.e. that definition of wall

street, from the broader economy and main street. s&p beats to a different drummer fundamentally. our earnings resilience call on for some time now doesn't change. i think what has changed is the positioning setup that on those three fronts that i mentioned have been sort of upended here, the pullback that we've had has alleviated a lot of the concern in terms of twol aggressive growth expectations priced in. we're back to a point looking at a more reasonable setup. whether we're at the very end of this, very hard to say, as you go in to periods of transition from fed hawkish to fed dovish or less restrictive, the volatility pick-up usually is notable during those time frames. economic activity does tend to kind of come in, and fundamentals could be under pressure. even though we're getting closer to a more aggressive fed pivot doesn't mean the coast is clear but sure means we're setting up

for a more traditional early cycle rotation. >> yeah. some team think we're late. so the trade itself of the -- the magnificent seven to the russell and small caps. is that over? >> well, look. the initial trade, in our view, was very much a short covering rally that was predicated on increased enthusiasm around soft landing potential. got that. small cap is more economically sensitive from the way it trades and the way its fundamentals unfold. so the closer you get to that -- let's call it this early cycle rotation, again, aligned with an easier fed, the closer you get to being able to look at the valuation setup for small cap and say, hey, this is actually pretty good exposure to be in as we get to that point. we've been saying for some time, leg in the small cap. don't go all-in until you get to

said fed pivot. we think if the setup here on the pullback is back to where we were previously, start legging in. closer to that fed pivot and begin to look at the 25 fundamental setup, we think the small cap rally has room to go still. >> very good. okay, scott. thank you. time will tell. thanks. okay. when we come back, the maryland governor, wes moore, on his support of wall street for vice president kirstenbosch. > -- vice president kamala harris. and talk about antitrust cases going on. department of justice antitrust enforcer former head of all of it, makin delrahim will join us. "squawk box" coming right back after this. and more about discovering magic. rich is being able to keep your loved ones close.

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welcome back to "squawk box." there's futures. pretty similar to what seve seen most of the pre-market session. pretty good number there's. up almost 300 points on the dow. 230 on the nasdaq continuing a comeback we saw yesterday from monday's rout. major indices broke three-day losing streaks. big legal news federal judge ruling google illegal held a monopoly in text advertising. appealing that ruling. joining us the man who opened the case into going's former assistant attorney general, markan delrahim. partner now add lake and watt ki kins and so much to talk about, markan. >> nice to see you. >> i want to talk bradley what we're seeing in the antitrust world. a number of cases are making news. the google case, we mentioned, something you started. i wanted to get your reaction

where things stand right now? >> well, the judge ruled this week and i think it's going to be interesting to watch the process. the next step will be remedies and i would anticipated google to be appealing this case. it will take at least a few more years before we see the end of this. >> when it comes to remedies, and i think you and i talked about this before, do you think a remedy is more likely behavioral, meaning watchdog over the company? or do you think structural, as in breaking up pieces of it? >> you know, there's some tough precedents for structural remedies. mainly the microsoft decision at the d.c. circuit where judge jackson had actually ordered breakup of microsoft and the court of appeals reversed that unanimously. so i think it's going to be tough. but the supreme court gives a lot of discretion to the district court judge. last, or two years ago the ncaa decision justice gorsuch's

opinion lays out some of the groundwork and gives a lot of discretion. interesting to see what evidence they put forward and how they could justify whatever remedy actually addresses the harm they found. it's going to be from an academic standpoint fascinating to watch. >> i have a broader question for you. which is, i played this point yesterday. you can disagree with it, which is -- are cases like this fighting yesterday's war or yesterday's challenges, if you will, and the reason i mention this is all of a sudden here we are in 2024 and very well may be that the search world, the blue link economy's going to get upended by the open a.i. economy. all of a sudden we're talking whether bing and microsoft, partnered obviously through open a.i. to be something, become something again. whether we think that perplexity or some of these new competitors are going to emerge?

>> you're absolutely right. i mean, that's something we thought a lot about at the justice department while i was there. and what is the right solution? i don't think the right solution is really some of the wholesale proposals to change the antitrust laws. i don't think that's the solution. we have to take a look at the process and the procedures. especially in these dynamic markets. 20 years ago a lot of folks were worried about, you know, microsoft. do they have -- there's a whole new set of technology companies like google and facebook and others that came about, and antitrust should not have interfered with what microsoft was doing. you know, unanimous d.c. circuit disagreed with that, but the question becomes, if there was harm that was found, how long did that go on? and is the current legal system responding to that? i'm not a fan of the regulatory system like you have in europe, but there could be tinkering in the judicial process that could

make it a lot more efficient. >> mentioning this other case, though, brought just yesterday by elon musk's x against advertise erg. unusual case. don't want to advertise on my service so i'm suing you because you all ganged up on me. what do you think of that? >> i have not read the complaint, to be completely honest with you, but these types, some of the hearings, the information that came out of the hearings, they raised some questions. whether or not they become antitrust problems we'll all have to wait and see. this reminds me a little of what justice brandeis said a number of years ago about some of the impact on first amendment they have, but worth it really turnsen into an antitrust case we're all going to be watching seeing how the case develops. a lot of antitrust reactions to the esg efforts.

when you have a group activity that, you know, is meant to do good, but the supreme court has continued to remind us that competition is the answer, not collusion, and the ends do not justify the means how you get there. >> how do you both handicap this election but maybe handicap it in a context of the regulatory landscape and what that ultimately is going to look like? there's obviously a lot of people in the business community who feel that this last several years has been very complicated to make deals, that's chilled the world of dealmaking. do you see it that way? and how do you see it changing, if former president trump becomes the president again, or if vice president harris becomes the president? >> that's a great question. i have been, being back in private practice and advising

clients, what has changed is the process. you know? how long a merger might take. how quickly could they get into what's called second review or second phase of a merger activity, and also if you have a remedy. if you have a solution to a merger that might be problematic in some respects. can you sell it off and how receptive will the agencies be? i think vice president harris gets elected, my guess is you'll see a lot more of the same. the same type of process. a little bit more uncertainty than you'd had previously. whereas i think president trump -- >> before you get to president trump, do you think she would end up sticking with lina khan, for example, or your successor in that, by the way, there's -- one of the things you keep hearing i don't know if it's true, is that she may try to move more to the center. some donor classes sort of pushing her to move. i don't know if you think that would be the case?

and what do you tell your clients about that prospect? >> look, lina khan i don't know if they want to stay. those jobs are grueling. been in them for several years now and the typical life cycle of those jobs you shuffle through, i don't think -- i wouldn't think if they wanted to stay that, you know, a future president harris would remove them. they seem to be having the same ideological philosophy about enforcement in regulation that the vice president has expressed, and certainly her new running mate, too. so i wouldn't be surprised if -- >> if the former president, former president trump becomes president again, how do you think it shifts? and the question is, people say that now the environment's very uncertain when it comes to dealmaking. but another view it also could

be uncertain under a president trump. i don't know if you believe that's the case. >> you know, i think there was -- when i came in in 2017 and i was appointed, a lot of times personnel is policy. it's how that person -- so much discretion in these types of jobs. you know, s.e.c., ftc, doj, that depends on their ideological bent. how they view free markets, and the role of antitrust in them. so i think people, you know, expected me to be more of the ronald reagan laz sy fair and i taken the good and timely antitrust enforcement actually protects the markets and keeps it free from government regulation. my guess is you'll see somebody in that same mold. remember, president trump was the first president to actually be a plaintiff in an antitrust case. he actually parhimself might ha

views in the type of persons he picks for these types of jobs. >> i guess just to -- like the elephant in the room is that you could have a president who in general was less averse to mergers, that might have a personal issue with some of the people involved at the head of the company that they're trying to merge, and that could actually come into play in terms of regulatory issues. do you think that that ever happened or could happen, in, you know -- i mean, that's been bandied about that, you know, if president trump didn't like the ceo, that he would take out on the company. not let it marge. not let it merge. >> i haven't seen it, of course, going back to nixon and the itt case. lbj, newspaper cases he held out mergers until they endorsed him. there's some colorful history. >> yeah. >> but i don't think that really

happens much. of course, president biden was much more, you know, had an executive order and competition policy was much more of a direct policy from the white house, and, you know, professor tim wu being inside the white house directing some of the policies. you had morin that, but i don't think in specific cases, i have not seen that really come into play. certainly didn't come into play during my tenure and i would doubt it has come into play during this presidency. >> okay. markan, thank you for joining us and look forward to talking to you very, very soon. >> great to see you. thanks so much. coming up, former council of economic advisers jason furman on the fed then maryland governor and kamala harris campaign surrogate wes moore joins us now that the vice president has flushed out the 2024 democratic ticket. it gets complicated, because the

vice president is picking a vice president to run with her. so a lot of vice-presidents running around. stay tuned. "squawk box" will be right back. easy-to-use tools, and paper trading to help sharpen your skills, you can stay on top of the market from wherever you are. e*trade from morgan stanley

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"wall street journal" op-ed. federal reserve chairman jerome powell must be kicking himself for not cutting the fed fund rates at last week's federal open market committee meeting. former council of economics chair jason furman wrote that and joins us now to explain. i wonder, jason, whether we need to just rethink everything we thought about the soft landing and's everything else that we're assuming, you know, is going to play out the way we wanted. is thereship question in your mind whether it's clear sailing here? >> look, all of this data is incremental. the economy never tells us the knew direction it's heading in super clear language with one release. it's all about balance of risks and, yes, the balance of risks have shifted in my mind, a greater risk of recession than there is of elevated inflation at this point.

>> and being someone who's been around for quite a while, obviously some of us have been around even longer, quite a bit longer, but when we're all expecting recession, we never get one. and we were two years ago. remember that? third quarter, fourth quarter, first quarter. i don't know. maybe early -- i mean, everybody. now it's nobody saying that. it's like we've dodged it. it's not going to happen. does that make you uncomfortable? >> look, i think odds are we're not going to have a recession. i don't think there's some great reason to believe we're going into a recession. it's just that inflation is about half ap point above where it should be. the unemployment rate a rising. i think inflation's going to head probably back down. certainly at-of-if the unemployment rate stay there's. so stay there. the fed can focus the other way. even if they cut rates in september, when they cut rates in september we're going to have

a somewhat contractionary stance for monetary policy. not headed into recession, cut the rate to zero. panic with a 75 basis points emergency cut. one are your guests talked about two days ago. >> right. >> this is a recalibration. >> it's still weird we were at five or six cuts, market believed it. went all the way down to one, maybe two cuts. and now some people are all the way back to five or six. how quickly things can change, and it's really not that many data points which caused a big revisiting of our expectation. you said you're not expecting a recession. no one ever knows 100% but 20%, 30%, 40%. did you ratchet it up in your mind, the possibility? >> yeah. when i saw that unemployment print. it's called the saum rule now, looking at that back in 2007 and

making us nervous about tipping into recession. you can explain it away with the immigration surge, pronouncing a big increase in firings and the like. but still, i'm a bit nervous. give me a one-year horizon. yeah. about 20%, 25%, higher than the normal 15%, if you don't know anything. >> some people said it's already the longest late cycle economy in history. and that it's crazy not to think that, that at some point that could happen. so we're up, the sauhm rule at 0.6 now? whatful we go 0 to to a full po rise in unemployment? at that point you would say immigration or that looks like a problem? >> look, goes up another 0.1 or 0.2 in the next report i'd be

really, really quite worry and think the fed would need to act in a very strong and decisive way. i think it's more likely the next job the print, unemployment falls back now something like 4.2 and everyone breathe as huge sigh of relief. what i'm expecting. what i'm hoping. of course, you need to be prepared forring in. >> and jason, put your political hat on as if going back to d.c. what do you think of this vp pick and what do you think harris onices would look like? >> an awful like like a continuation what we've seen over the last three and a half years. walz is an exciting guy, hard to watch him speak and not have a smile listening to him but they haven't had time to define new positions. why i think extrapolating over the past years talking about the fed. one of the tremendous things

that president biden has done is just respect the independence of the fed while it was ratcheting rates up and then keeping them high in an election year. not a lot of presidents would do that. it's helped our economy. helped get the fed the room they need to bring inflation down. >> i would think you -- and some people that normally would not want to rock the boat, democrats have said, i certainly hope she would, vice president harris, would tack more to the center. there are people who say that that choice, jason, was almost like analogous to trump's choice of doubling down on, for lack of a better term, of a maga vice presidential candidate. i mean, he's pretty far left. wouldn't you -- this is not a -- the "journal" wrote a piece on it today that says it's exactly the same what trump did. doubling down on the base. >> you look at the voting

record. he had in congress. not that different from the types of positions that governors should. >> how about as governor? i can read you things what he did as governor. i'm sure you've seen them. >> not going to agree with all of them or all of what anyone's done other than follow what someone else says. joe, i think a lot of it, coverage bears this out, a real personal chemistry thing and certainly heard -- everyone i know including republicans that know walz love him. they just love him at a personal level. people who served in the house with him are really positive about hill. i think that is what won her over. >> maybe it did, because -- just as an objective observer, andrew, right? i was -- i think republicans really feared josh shapiro. you saw him speak yesterday. he's -- pretty impressive in terms of, he certainly reminds me of your old boss.

some of his cadences and oratorical skills. >> oh, yeah. no. he's terrific, too. there's a lot of great people in the democratic party. and by the way, i wouldn't clear any of them to judo vance who's someone that -- >> wears eyeliner and likes couches apparently. i don't think either one of those things is true, but i heard the joke. a pretty good joke. pretty good joke, but wasn't in hillbilly, nothing about a couch. now finding its way into his speeches. jason, thanks. fresh pond. where's the last time you were out there? >> about a month ago. >> you're busy. all right, when i come up that's what we're doing. when we come back, we've got another interview. maryland governor wes moore joins us on vice president harris' decision to tap minnesota governor tim walz as

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kamala harris hitting wisconsin today with her newly named running mate minnesota governor tim walz. the vice president focusing heavily on swing states this week. joining us on the harris-walz ticket support among business leaders, wes moore, surrogate for the harris campaign and one of 55 democratic leaders on the national advisory board and a former wall streater himself. good morning to you, governor. >> good morning. good to see you. >> what was your reaction to the walz pick, and to the extent you can speak to what the donor class and maybe the business community is thinking about this. >> my thoughts were, i was ecstatic. i thought it was a great pick. not because it opens up so many different areas electorally. tim walz is someone not just able to do well within the blue

law of the michigan, wisconsin, pennsylvania grouping, but also i think about his background as a military veteran. the guy was a sergeant major in the army. he then came back to become a coach. he then went on the to become a congressman. when you look at his body of work, he opens things up like georgia and north carolina. because of his military backgrounds. i think he's just a great partner and a great fit and i think for the business community you're able to look at his record and say, this is a common sense leader. someone able to not only have minnesota be one of the fastest growing economies. you look at the fact it's also the home of gm. it's the home of united health gr group. it's the home of target. currently has a 2.9% unemployment rate and saying you can be pro-business and also say you'll take care of the most vulnerable. it doesn't have to be a binary choice and i think that's an

exciting vision for people to be able to embrace. >> to the extent donors looked at shapiro somebody more moderate, do you agree with that assessment? also i say, by the way, speaker johnson yesterday said that shapiro was "overlooked for the vice presidential election because of hi gentjewish haerit and position on that." who do you think about that? >> i think it's important it's not a box-checking exercise what a person can get you or can't get you. this really is, in its purist form. it's a person making a decision of who do i want as my partner end of the day? and had wonderful options to choose from and i think selected a wonderful option in tim walz. and for the people that, in the business community, i think about what we had here in the state of maryland. where when i was inaugurated

started 44rd in unemployment. now going on 12 straight months lowest unemployment in the entire country because we are doing in maryland what i know till walls believes in in minnesota saying you can actually be pro-business, you can do things like addressing reform and cutting regulatory red tape making it easier for businesses to grow and thrive in your jurisdiction, and make sure you're dealing with issues like housing. issues like child poverty. dealing with issues like education. that's actually the best way to kpr create a pipeline for economic growth. so i think that the thing that the business community will see is that in tim walz what you have is a successful chief executive of a state and of a state that's doing economically well and there's a reason for that. because having that data-driven approach is something that does work. >> governor, good to see you, by the way. it's been a while. >> good to see you. >> yes. there are some that -- you know,

talk about in terms of a lot of vice president harris' positions and it's a good way to probably say this. probably similar to what we have seen in the biden administration, but -- politicians, when when they're senators, it's different than perhaps when they're a vice president, but there are some things that the vice president is on the record for saying in the past that maybe she wouldn't say now, and some people thought that that's why a more centrist vice president might help her get to that position, and i just thought it was interesting. you mentioned united health care being based in minnesota when one of vice president harris' positions was no private insurance companies remaining, that everybody -- it's got to be universal health care for all. that would not be good for united health care in minnesota, and i'm wondering, there's a lot of things that she's going to

have to clarify. it's been two weeks and a honeymoon period, but we still don't know that much about how she feels, and some people say the pick of governor walz moves her further to the left or keeps her in the left where she was. >> no, i would actually say that you have, and what leaders do, leaders are consistently moving and processing information and being able to make the decisions that are in the best interests of their people. i can tell you her policy right now is not a health care for all position. when we're talking about how do you create real economic growth where you're able to work in partnership between the private sector and also government and know that the private sector is a partner and not an adversary, it's something that is important and something that's a deep belief of a harris/walz campaign and will be of a harris/walz administration. one thing that we know is that we now are going to have 80 days for people to get a clear

understanding of where the individual policies are, and the thing we know about the vice president is when she's pushing for things like making sure that we can have an enhanced child tax credit, making sure that we can do things like investing in child care so we can actually get people back into the workforce, when we're making sure that we can invest in high-quality education so we can create a better pipeline for employees and employers, that kind of stuff does matter. and so, i think, over these next 80 days, we will have a chance to see real clarification on these issues, and i'm confident the american people will see that the harris/walz administration is going to be one that's best for the future economic growth for this country. >> governor, i got a hard one for you. we were just talking, there have been a lot of calls from the donor class, specifically, on harris to potentially move or move away, if you will, from lina khan, for example, and to try to have a different type of

regulatory regime that might be more open to transactions and deal-making and other things like that. do you think that we are going to hear about a shift in terms of her regulatory views, and do they really differ from president biden? >> i think we will, and i think we have to, and i think, you know, making sure that we have a regulatory body that's able to have an influence, that is able to have an influence, real capital and liquidity flow, making sure that we are both supporting our small businesses and making it easier for small business to be able to grow and also making it easier for our large industries to be able to compete within our states and within this country, is something that i think is going to be important. and i think it is important for people to remember, too, that as the vice president is thinking about a future-facing administration, that there are going to be different dynamics that are going to require different philosophies.

there will be different sociopolitical and just political dynamics that is going to require a different set of -- a different lens and a different vision, and i think that's what the vice president is going to be able to offer. this is not just going to be, how are we speaking about the work of the biden/harris administration? this is going to be about, what is going to be the impact and the hope of the harris/walz administration? which i do think will have some differences with what we're seeing within the biden/harris administration. >> governor, do you think there is a wing of the democratic party right now that is more pro-palestine -- i don't want to say pro-hamas, but more pro-palestine than pro. >> israel and do you think there was anything in the decision yesterday related to that, whether it's being able to win michigan -- what we saw on

college campuses was mind-boggling. >> van jones, by the way, i don't know if you saw this, governor, said specifically yesterday that he believed there was a strain of anti-semitism that was marbledinto the democratic party as somebody who's jewish and american, it was upsetting to hear. >> i think there is a dangerous string of anti-semitism that still is cloaked within american society. i don't think this is a political party issue. i'm looking at the fact that just in this past year, i have now had to allocate millions of dollars going towards hardening homes of worship so people can go and worship their god in safety and peace, that i have now had to spend where i do my weekly updates with our intelligence agents about what we're seeing and hearing. we have seen just an absolutely -- an absolutely dangerous rise in anti-semitism and anti-muslim attacks, activities, and threats. so, we know that as a nation, this is something that we must wrestle with and it's something we must deal with, and we cannot

shy away from it. the beauty of this country, the beauty of what makes the country great is the fact that we can have an all-inclusive and all-inclusive society and a place where people feel safe in their neighborhoods, communities, and in their own skin. that's what makes this country so unique in world history and that's the kind of values that we have to fight for. i think that the dangers that we've seen of anti-semitism, this is not a political issue, not a democratic issue, not a republican issue. this is something this country must wrestle with and something this country must deal with, and we must deal with it with a lens of love. >> governor moore, i want to thank you. appreciate it very much. "squawk box" coming back right after this. bringing you an elevated experience, tailor-made for trader minds. ♪♪ go deeper with thinkorswim: our award-wining trading platforms ♪♪ unlock support from the schwab trade desk— our team of passionate traders who live and breathe trading. ♪♪

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that's just -- man. it's like bitcoin, right? the vix was all the way up to like 56, went from like 13 to 56. it's back to 24, but up a little today. and there you can see bitcoin's up a percentage point or so. oil was up a little, but down in the low 70s. me and you again tomorrow. >> see you. >> i'm going to get some profit roles. we can share. ♪ good wednesday morning, welcome to "squawk on the street," i'm david faber with jim cramer live from post nine of the new york stock exchange. carl quintanilla is at the olympics in paris. let's give you a look at futures as we get ready to begin trading on this wednesday. half hour from now. that's looking like a very strong, quite strong open. not sure how you want to characterize that, jim. >> i'm going to call it early since the market isn't open yet. >> thank you for that. >> no problem. >>