president biden wanted to. it is thursday, september 5th, 2024 and "squawk box" begins right now. ♪ good morning. welcome to "squawk box" here on cnbc. we are live from the nasdaq market site in times square. i'm becky quick along with andrew ross sorkin. joe is out today. he is feeling a little bit under the weather. let's look at u.s. futures. you have the dow up five points. s&p indicated off three points. nasdaq off 37. that comes after a mixed session yesterday for stocks. you actually had the dow higher by 38 points. s&p and nasdaq edged lower. continuing what we had seen the bay before with the nasdaq.

if you are watching treasury yields, that has been something to keep an eye on. the two-year in particular at 3.77. it fell to the lowest levels we have have seen in quite a while yesterday. the ten-year unchanged at 3.76. in the meantime, nvidia denying it received a subpoena from the justice department. it sent a comment to jim cramer saying nvidia wins on merit as refreqlected on the benchmark result and customers can choose the solution best for them. we inquired with the department of justice and have not been subpoenaed. nevertheless, we are happy to answer questions regulators have about our business. shares of that stock up, but not up so much on the back of the news. i don't know if that means people don't believe there's not a subpoena in the works or some other kind of thing or does it really mean the stock never moved the first time around on

the back of the snubpoena? >> all of that stuff happened before the news of the subpoena by bloomberg. >> that was the question. was it leaked? >> maybe it wasn't the question. maybe it was more broad. again, i was looking at the action on that. with the nvidia shares down, that would make sense with the subpoena. all of the competitors would have gone up on it. what really happened in trading is everybody got knocked down with all of the issues. watching this very closely. again, the pushback coming. i was listening to bloomberg this morning. maybe regulators are asking questions and that is called a subpoena, but they were back tracking on those issues. we have breaking news. verizon is buying frontier communications in a $20 billion all cash deal that combines the cell phone carrier.

frontier shares closed up 38% in yesterday's session after the wall street journal reported on the talks. frontier is off 5.6%. that comes after a huge jump yesterday of 28 % for the share. hans vestberg will be with us in the next hour. a lot of questions what they will do with fiber. there have been a lot of deals in the fiber space. it's expensive to do to build out or buy it. we have seen deals recently. frontier communications has run into troubles in the past, including bankruptcy. we will speak with hans vestberg. >> this deal would be shocking

with an investigation of this transaction. shares of u.s. steel plunging by 17% yesterday after the washington post report that said president biden was preparing to nuannounce he will block the planned sale to nippon steel. that is under review on the committee on foreign investment. u.s. steel has not received an update or executive order on the review. president biden and vice president kamala harris and former president trump have all said u.s. steel should remain a u.s. company. the company has pushed back and said if the steel is not alllowd to go through, they will have to shutter plants and move from pittsburgh. you don't't know how much of th is a bluff. shares are down 21% year to date. vice president kamala harris announcing her plans to raise the capital gains rate which she has broken with president biden

by proposing a smaller top rate. in the speech she made in nfew hampshire, harris proposed 38% all-in rate. that includes the capital rate and biden's investment income tax of 5%. president biden proposed nearly doubling the capital ganins rat of 28%. harris did not say whether the proposal would differ from president biden's on taxing unrealized gains which we debated at this table with folks of high net worths. robert frank has more on the tax proposal a little bit later this hour. we will talk about it. i do think we have been talking over the last couple weeks about the idea she may be trying to move more to the center on some economic policies and was she really going to do that and what does this look like?

>> this will actually calm the nerves of a lot of investors. they may not see eye-to-eye on it, but want to see more on the propos proposals. that's a big deal. the way she explained it yesterday was important. she laid it out if you are incentivizing people to invest back in the economy, it helps jobs and helps down the road. that is the thinking the investors and business leaders would look at it with a more open eye. if you are raising the taxes on that, you are not investing people to put back in. >> by the way, the truth is that unless you have the senate and house at the same time, it is unlikely these things happen. that's a separate matter. >> i don't think you can look at any poll knowing it is a sweep in one direction. i believe anything can happen at this point. it was interesting to me to actually hear her reasons around why she would lower the tax increase from what biden had

proposed. i just thought first time i heard her say something along those lines. qualcomm ceo told cnbc the company is working with samsung and google to explore a mixed reality set of glasses linked to a smart phone. the three companies announced a partnership last year, but t comments are the first to shed light on the project. mixed reality refers to augmented and virtual reality with images imposed over the real world. very tony stark like. a.i. features will be run in the glasses and partially in the connected smartphone. >> i think the goggle version is

23 2.0. >> i like the glasses. >> the future of that will have stuff in the glasses. you will see -- i think -- you know i've been bull on the augmented stuff eventually. i think we will all wear glasses. >> the thing with the meta glasses is the weight. i would wear these around. they feel like actual sunglasses. shares of hp enterprises are lower with 3 cents above est estimates. the cfo saying the decline was driven by higher a.i. revenue. most servers have thinner margins with the expensive chips they contain like nvidia. the ceo said hp will sell more along with those a.i. servers. shares of c3.a.i. are

plunging today. a quarterly loss of 5 cents per share was not as bad as 13 cents asp expected. quarterly subscription was leave lower. stock off close to 20%. the board of callaway and top golf are splitting the businesses. callaway combined the business with top golf driving ranges in march of 2021. since then, the stock has struggled if you look at this. consumers have been tightening spending and sales growth slowed. the top golf business behind the places where you go and golf, has raised questions. it is expensive to keep that going and expensive to golf at those places. you see what's happened with the merger. the stock down 21%.

the board is exploring the options for separating the top golf business. the spinoff to shareholders is the most likely course for now. we have news just out from bmw. the company saims to bring the first hydrogen made car to the market in 2028. bmw said the vehicle would be ex existing model with the hydrogen cell. i remember meeting with them and talking about hydrogen cars. here we are. >> you wait long enough after everything shows up. when we come back, former president trump speaking to the economic club of new york today. we are learning more about what he plans to say and we'll have that for you next. don't miss our exclusive interview with hans vestberg on the news that verizon is buying

frontier communications for $20 billion. "squawk box" will be right back. >> announcer: this cnbc program is sponsored by truist securities. experience, expertise, execution. i can't believe you corporate types are still calling each other rock stars. you're a rock star. we're all rock stars. oooo look look at my data driven insights,

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former president trump will be speaking today at the economic club of new york. eamon javers is learning more about what he plans to say and joins us with more.

good morning, eamon. >> reporter: good morning, becky. the speech kicks off at noon today. i have been talking to the former president's son, eric trump, to get a sense of what we might hear from the former president. he may call for tax reductions for middle class and businesses. it is unclear what specific rates he will call for. that is something to watch today. the speech will focus on inflation. that is a key part of the stump speech and that impacts the housing rates. he is focusing in on energy. he is focusing on the energy and electricity which is needed to power the a.i. revolution. in trump's way of thinking, the massive energy production leads to lower input costs and inflation. that lower inflation allows the fed to come in and cut rates at a faster pace. i'll be listening to see what trump says about anything over

the proposed u.s. steel by nippon steel or trust enf enforcement with google which is facing two doj proceedings this week. and the question about tariffs. that is the centerpiece of the proposal in terms of protecting american manufacturing. all of that on the table as we watch a tussle with the economic nationalist of the party and traditional gop tax cutting and regulatory trimming side of the republican party. >> right. how to pay for any of these things. eamon, i'm going to it as well. i don't know what the setup is for this. is this just a speech or traditionally they have a speech and have someone interview afterwards. do you know the details? >> reporter: traditionally, there is a q&a afterwards here.

i don't know how they will do this one, becky. we have seen preliminary information from the campaign, but it is preliminary at this point. we have to get through the morning and figure that out. >> it is interesting. we were talking in the last block about candidate harris have her proposals starting to see more details on as well. this is a race to the final days of the election here, but we are finally starting to hear more specifics and hopefully get to hear much more. >> reporter: it is fascinating to watch both campaigns. you get the sense both campaigns are attacking hard toward the middle here which traditionally that's where american elections are won. you see trump, particularly on abortion, moderating hard and trying to find that center ground that will be more appealing to a mass group of americans as opposed to the base on the right wing. you see harris doing the same thing on her side moderating on taxes, in particular, and trying

to come back toward a more moderate position in the center that will be more appealing to silicon valley and business out there. both campaigns grappling toward the center. >> kamala harris didn't go through the primary process. i didn't understand entirely the dnc's take when they seemed to push further left. further out to the wings and coming back to the center. at that point, people were explaining it as you have to do something to really get out the vote. i think you're right. where is this won? on the wings or the base or won in the middle? >> reporter: look, i think you are seeing the dynamic playing out simultaneously on both sides. both candidates have locked down their base. kamala harris with this weird coming in at the 11th hour campaign is taking over for

biden. she was able to do that at the convention and locked down the democratic base. there is a huge amount of energy. the joy convention she had. donald trump, similarly, with the maga base, he has that locked down. the decision of jd vance shows he is doubling down on maga. both candidates know they've got the base and they have to move toward the center. you fire up the base, but get the vote in the middle. >> eamon, thank you. >> you bet. coming up, "time" out with the most influence al people in a.i. we will reveal the latest. and vice president kamala harha harris' plan to raise capital gains tax. we'll talk about that and more as "squawk box" rolls on.

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welcome back to "squawk box." "time" magazine out with the most influential people in a.i. we have our guest with us. >> good morning. >> you do a lot of lists. i didn't know you would do one on a.i. why? >> this list is two years old. "time" is all about the people who shaped the world. the people who are working in a.i. are the people doing that today. we are bringing our spirit and energy of the people behind the transf transformation. lots of players coming in and out. we hope to give people a guide and by understanding the

individuals, understand what is next coming in the future. >> people know the sam altmans of the world and agge jensen hu. >> there are people coming in and out of that company who are really changing that space. somebody who raised the company to $1 billion in a company that doesn't create anything yet. there is so much enthusiasm of the few minds and ideas and engineers and thinkers and reareach researchers. we are looking at activists and artists saying we are going too fast and think about it. >> elia was one of the people. of the activists, is there somebody who has great power?

>> i hope so. we will also look at the regulators. we see this rising in the u.s. and china and eu. i think a place like californias with scott weiner, pushing for regulations and could change the course of the technology. >> because his push and regulations he is pushing for in california get picked up more broadly? >> exactly. >> i'm looking at alexander huang and scale a.i. maybe people don't know a business tagging all this information. >> it is an entire ecosystem. you put a question in chatgpt. the amount of work and effort it takes to create all that. alexander is powering this work that's happens. >> is there a sense these are good guys or bad guys?

it is confusing from the outside looking through trying to decide if these people are doing what's best for society and we need to happen or potentially doing things that could wreck a lot of hof havoc. >> i think the answer to the question is yes. i talked to former employees the google. we talked about three or four companies creating this change. i think one of the things we try to measure in the list this year is the tieup with the startups of anthropic and openai. >> are these geniuses or evil geniuses? >> it depends who you ask. this technology will transform our lives for better and for worse. >> let me go in a different direction with you. you talked about the openai anti-up with microsoft and anthropic tied with amazon and

google. we can go down the list. there is this hope they're going to be smaller models not run by these big guys and potentially even open source models. i don't see and maybe i missed it. mark zuckerberg, for example, on this list? >> he is. meta is pioneers a different idea. >> this open model to create all of these sort of smaller players. the question is can any of the smaller players ever get at the success of the bigger players? >> i don't think we can answer that today, but i also think a lot of the companies today are giants once started as small players. we talked to sundar pichai saying we weren't first to the consumer facing product. of course, you want to be first. you think about maps and email and google has a dominant place in that. there will be people to disrupt

the models. >> back to andrew's point of the small language models, too. you don't necessarily need, you know, i don't say a porsche, but you don't need the greatest machine to do some of the things we're talking about. if you can find ways to scale it down, you can save on the electricity needs out there and the computing needs out there. you know, not everybody needs the same entire plan of the universe. >> that's one of the things we're trying to chart with the list. people calling attention to the down stream whether to climate or energy and all this data. there is a huge ecosystem that sits on your phone. >> last question for you. there's been this other push for all sorts of companies to describe themselves as a.i. companies. the same way in the '90s, everybody adding dot-com to their game. name. a lot of companies are adding a.i. to their name in how they

describe themselves. how do you decipher between an a.i. company and tech company? >> that's a good question. people are trying through earnings calls and representations to the market saying we are a.i. companies. where the rubber really hits the road and companies are changing people's lives through the technology. >> here is the final question. how often does benioff call you and say why are you putting that guy on the list? he deoesn't deserve to be on th list. so-and-so is so important. >> i think we're lucky that marc is asleep right now on the west coast. marc is an enthusiastic reader of "time." i hear from him. he will be excited to see who is on the list. >> does he know ahead of time? >> no. >> sam, that arnk you for comin.

you're not an avatar. >> thanks. when whene come back, the j data on the docket today. we will have more straight ahead. take a look at this, nasdaq off by 30. s&p futures are flat. don't miss our exclusive interview with hans vestberg on the news that just broke that verizon is buying pioneer communications for $20 billion. as we head to break, let's look at yesterday's s&p 500 one winn and losers. okay, team! oh, thank you so much >> announcer: executive edge is sponsored by at&t business. next level moments need the next level network. 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

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good morning. welcome back to "squawk box" here on cnbc. we are live at the nasdaq market site in times square. we have a lot going on this morning. let's show you the futures. a little bit of green on the screen. on the dow up 14 points. nasdaq off 25 points. the s&p 500 is just up, off,

marginally. i like to call this unch since it is close to one. on the squawk planner, the appetizer for the friday jobs report. today, we get adp private payroll report and weekly jobless claims and the latest read on productivity in the second quarter. joining us now to break it down and what to expect is sam stovall, the chief investment strategist at cfra. sam, this report has gotten important over the last few weeks and the fed is waiting, too. how are you feeling as we get back into the whole season of september and everybody is back to work. traders are back, too. it's been a little choppy so far. >> oh, sure, it has been, becky. i think investors have surrendered to seasonality to the first few trading days of the month.

that will continue until the end of october. all sizes and styles and sectors within the s&p have posted declines going back to 1992. i think in terms of employment data, i think we will end up be favorably surprised with the adp report and jobless claims and also with the payroll numbers on friday. i think we'll find that a lot of the weakness in july was weather-related. >> if we are favorably surprised by these things, the next question for investors is how does the fed react to that? you think that would set them up for a 25-basis point cut? >> i think it will be setting them up for a 25-basis point cut. that is our expectation for a total of three cuts of 25-basis points each for this year and four more cuts next year. our feeling is, if you look back to fed rate history, that only twice has the fed cut initially

by 50-basis points. that was in 2001 and 2007. i think investors will end up feeling the fed knows something we don't if they cut by 50-basis points this time as well. >> okay. that's what we've heard back and forth, but we also heard people we spoke with yesterday who said if they don't cut by 50-basis points, the economy is worse than expected. you don't believe the readings in july and last month -- you think this is a much stronger economy than some of the negative naysayers? >> we do. we actually raised our gdp forecast this year at 2.7%. it was 2.8%. now 2.2. our feeling is while the economy will be slowing next year relative to this year, that we will still be on course for a soft landing. plus, i think the market really

has not been moving in the direction that investors really would like. so, once again, investors are acting like hyperactive first graders playing musical chairs trying to out move the other. >> you said from the technical perspective that when you get to this overbought conditions, you are looking at the market as overbought. you think the economy is strong, but the markets are very fairly well, highly priced, i should say? >> i think there is some benefit to digesting some of the recent gains. we're still looking at technology trading at a 50% premium to its average 20-year pe forward estimate. that is down from the 78% premium we saw recently. the s&p 500 at a 30% premium down from 38. i think that we are getting there and plus, when you have an

overbought situation, doesn't mean the world coming to an end. the dial is reset. we are in the bull market camp, but the market has gotten ahead of itself. >> if i'm sitting at home listening to this, that explains the huge, you know, vomit that came out of the market on tuesday when you were looking at the semiconductors or anything across the board that it doesn't have anything to do with the potential for the subpoena that did or did not come to nvidia and nvidia saying they didn't get a subpoena. this is just investors sentiment turning on a dime because we realize we have bent things up? >> certainly when we look at the semiconductor cgroup and this group was up three digits, 100% over the last 12 months and trading 80% premium to its long-term average.

yes, you can look to individual groups of the marketplace and see where there has been excess. at the same time, while the semiconductors had been readj readjusting, we had seen a broadening out of the overall marketplace. so seeing those groups within the 1,500 above their 50-day above the 200-day and above both indicat indicators, we are seeing an increase along the way. i regard that as more of a positive spreading of expectations rather than being shaken by one group going through a digestion. >> sam, do you think we're in for a big drop in the markets in september or october or not? >> well, there is certainly a possibility. since world war ii, we had 30 times we had two intrayear declines of 5% or more. in 9 of the 30 times, we had

three or more. if we do end up falling into a decline in excess of 5%, history says it will probably be in the low double digit area of 12.5% being the average. certainly, that could shake investors' mindset. typically, you get back to break even in an average of four months from declines up to 20%. >> maybe buckle up, but don't stress too much. sam, thank you. >> my pleasure. coming up, the biden administration planning to block the acquisition of u.s. steel by the japanese company. we are learning more about the letter that cifius sent on the deal. don't go away. "squawk box" is coming bk ghafr is.c

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welcome back, everybody. recapping the deal news that broke this hour. verizon is buying frontier communications for $38.50 a share in cash. it combines the top cell phone provide to 3 million locations in 25 states. verizon's ceo hans vestberg will join us after 7:00 a.m. of eastern time. you see frontier communications down 9%,uthat bau b tisecse yesterday when the news was reported by the wall street journal, the stock fell. "squawk box" will be right back. car, where are we going? we're here. (♪♪)

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welcome back to "squawk b box." vice president kamala harris breaking with the president biden tax proposal. we have robert frank with more. >> lots of twists and turns on the campaign trail. vice president kamala harris calling for a 33% tax on long-term gains. that is higher than 23.8%. it is lower than the 44.6% rate proposed by biden and she endorsed bch tefore the convent. under the plan, she would raise the net investment income tax to 5% from the current 3.8%. that would create the combined rate of 33% on the long-term

capital gains. it requires more than $1 million in more than a year. it is the highest rate since 1978. in new york, the combined would be 48%. in california, just over 47%. she has not announced any changes to her plan to tax unrealized capital gains. we have a lot of discussion at this table for those worth more than $100 million. wealthy donors have been pressuring her campaign to lower the tax. all of them part of the 2024 white house budget she endorsed. for a lot more on the wealthy taxed and spending, go to cnbc.com/insidewealth. we will have that screen. >> what sort of americans will be impacted by this? only 1% of the americans at the moment even pay the highest tax rate at 37%.

>> right. .1% of americans get about half of the total capital gains. capital gains as a whole is skewed to the very top. in terms of how many make in any one year is probably a very amount. but, you are reducing the revenue you're getting, when she went from 44.6% to 33%, we'll have to see how it scores. about up s but she had a lot of spending proposals in that that she endorsed and she added more tax cuts including on small businesses, including exempting tip wages, so, but i think becky's point was very important this morning when she said it was as much about the messaging as it was the numbers. the first time i heard her say we want to tax capital gains to reward innovators, founders and small businesses. >> i'm not sure she believed that. i'm still not sure. he was using the number 28%. she said specifically in that speech if you make over a million dollars, you're not going to pay more than 28%.

as you point out, it is 33%, the highest we have ever seen. >> and it was a little unclear going into that speech and even out of it whether that 3.8% to 5%, whether it would be -- i've seen conflicting reporting on that -- >> where it ends up being 33%. >> right. >> or 28%. >> or 31.8%, keep the 3. it was her donors, i heard, you've been talking to a lot of the tech titans, a lot of pushback from donors saying, look, we want to support you as a moderate, as a pro business person, so unrealized gains and capital gains rate, you got to come down on that. i think she's listening to them, getting pushback from the progressives of the party, however. >> one other point, it is a curveball, back to yesterday, you sent me an email after our segment about what we were talking about unrealized gains and the conversation veered toward philanthropy and folks donate shares, unrealized gain shares where they have a small basis to a charity, charity

turns around, sells the stock and the gain is -- >> never gets taxed. >> gain has never been taxed. >> never taxed. >> i said it and ro khanna said, maybe at some point, you know, over a million dollars a year or $5 million or donations a year or some kind of number, that maybe there should be some kind of tax, so there is some kind of realization event, otherwise you're subsidizing the philanthropy. you made a very interesting point which i think the viewers should know about. >> i think the inequity when you give stock or some asset to charity, getting a full deduction on that -- >> right, this is the piece that you -- to me that was very interesting. not only are you not realizing the tax gain, but you're using it is a deduction against real gains. >> so the robert frank tax proposal here would be that you can only get a deduction for whatever your basis in that stock or -- let's say warren buffett, the bas you get a $10

deduction, my view is he should only get a deduction for what he paid or what his basis was. so i think that takes the burden less off the taxpayers of america that are then not subsidizing a $10 billion deduction. you can only do a third of it. still, and so the deduction is only in the basis. and i think that -- you could still encourage charity and charitable contribution which we need in this country, but you don't get the full deduction. >> we use the tax code to incentivize all sorts of behavior. incentivizing people to give to philanthropy is good. if you want to make it a really simple tax code and not find ways to play around with it, that would cut cheating out, any of those things. we have for forever used the tax code to incentivize behavior for buying houses, sending kids to school, to reward gis for coming back and doing service. i think philanthropy would land

in the things you would want to incentivize society to do. >> all of this is subject to a huge congressional fight, probably, coming up next year. >> robert frank, thank you. smart stuff. when we come back, the biden administration is planning to block the acquisition of u.s. steel by a japanese company. we're learning more about a letter that was sent on saturday and we'll have the details for you next. you can see, week to date, a rough one for u.s. steel, down by 21%. this morning, up by 1.8%. "squawk box" will be right back.

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welcome back, everybody. the biden administration is preparing to block the acquisition of u.s. steel by a japanese company. reuters says that cfius sent

nippon steel a letter on saturday saying that deal would pose a national security risk by harming the american steel industry. joining us right now to talk about the government's involvement with blocking the deal is dartmouth's tech school of business dean matthew slaughter. matthew, looking at this, there is no harbor for this deal, if you look at any section in washington. just about every politician said they don't want this to happen. what is the likelihood of it actually passing under that scenario? >> well, at this point it seems quite unlikely, unfortunately. and that's because essential to national security is economic security. and it long has been the case that engagement with the global economy for the united states precisely through investments like this of great foreign companies in the united states has been a major contributor to the economic strength and dynamism of america, which defeats the kind of good jobs that one seems to be concerned about. >> do you agree that this is a national security threat, that cfius should be stepping in here?

>> nothing i see in the public domain makes me think this is a a national security risk. i remember the meetings, there are a lot of legitimate mechanisms in terms of limiting the scope of business, in terms of the nationality of the executives in the boards of directors of information disclosure requirements. but japan is one of our most stalwart allies in the world. we long have had very productive companies like nippon steel operating in the united states. so it is just kind of hard to see other than maybe some domestic political considerations for what is driving this. but, again, what we should be thinking about is america's vibrancy in the 21st century and how globalization should be playing a part of that. >> you bring up some excellent points about what cfius should be looking at. it seems like nippon has bent over backwards to try to accommodate some concerns that would be laid out, just in terms of who the ownership would be. it is a u.s.-based arm of nippon that would be making this

acquisition. they would keep american managers running it, americans who would be on the board there, a lot of the decisions still being made there, so, do you think that this is cfius gone awry? >> unfortunately it seems to be, and i think you're exactly right, becky, it is an example of these global companies when they invest in america, they bring technology, they bring managerial expertise, they bring the financial and physical capital, and the data, i think, are overwhelming and clear on what the benefits have brought, the most recent u.s. government data is from 2021. that year, there are 7.9 million americans over 6% of the total payroll jobs who work for these u.s. affiliates of foreign multinationals. these companies bring all the kinds of know how that you just mentioned. these companies accounted for about 14% of all the private sector research and development. about 17% of the capital investment. the export over 24% of total u.s. exports of goods. and all those productivity

enhancing behaviors, the bottom line was really good jobs. the average compensation in these companies in the u.s. is about $87,000. which is over 22% above the rest of the private sector's average. so, the benefits, in nippon steel, operating in the united states since the 1980s. the benefits to america from these globally engaged companies working here is very clear. >> matthew, my concern on this is nippon steel said that it would invest about $1.7 billion in many of these plants. the ceo of the company said if nippon doesn't come in, that they're going to be forced to close some plants and that they would probably move their headquarters from pittsburgh as well. do we wind up being weaker as a result? >> potentially. and that's what's heart breaking. if your concern is about -- as it rightly should be good jobs, good wages, the company has made very clear if this investment doesn't go through, they're going to continue to struggle. and so what i think is surprising is america today, it is on both sides of the aisle,

both sides of pennsylvania avenue, we have lost a story, a leadership story for what it means for the united states to be leading in the global economy. we have that story for a lot of the decades, from the end of world war ii on and trade and immigration and investment were central to that. part of why we lost that narrative, we did not do enough to address the real concerns that globalization and all its dynamism doesn't benefit every american worker and community and family. and but yet we got to find mechanisms other than building more walls to address those legitimate concerns. >> matthew slaughter, dartmouth's tech school of business dean, formerly sat on the cfius board. thank you for your time. >> thank you very much. it is just past 7:00 a.m. 7:02 to be exact on the east coast. you're watching "squawk box" here on cnbc. i'm andrew ross sorkin with becky quick. joe is out this morning. among today's top stories, verizon buying frontier communications for $38.50 a share in cash in a transaction

values at $20 billion. the ceo will join us in a couple of minutes to talk about the transaction with us. meantime, nvidia pushing back now on reports it received a subpoena from the department of justice over antitrust concerns. in a statement shared with cnbc, the a.i. chip giant saying it inquired with the u.s. department of justice and has not been subpoenaed, adding the company is happy to answer any questions regulators have about its business. bloomberg reported that nvidia received that subpoena, causing the stock, we think, to slip in after hours trading but may not have been responsible for the true collapse of that stock that day. the stock not up hugely on the back of this news, this morning, indicating that perhaps this subpoena news may not have been the prime mover with that stock and so many other chipmakers earlier this week. top golf callaway brands are higher in premarket on its decision to split into two separate companies with callaway brand focused on golf equipment

and lifestyle, while top golf will focus on its driving range entertainment venues. the dow in the green all morning long, up by 34 points. s&p futures have been bouncing around the flat line. they're up by about 3 points right now. the nasdaq is off by 7. over to dom chu, with a look at this morning's premarket movers. dom, what's happening? >> good morning, becky. good morning, andrew. let's start by checking on shares of tesla, up right now about 2.5% after the ev giant said it plans to roll out its full self-driving assistance software in europe and china next year, pend something reg pending some regulatory approvals. they have a restricted features set that limits operations like automated lane changing and everything else. the shares still down 10% year to date, those gains are coming on the heels of that bit of news. moving on to shares of hp enterprises, off by maybe 3% or so. this is all despite reporting of a beat on profits and revenues

for the quarter. the decline in the stock appears to be due to the drop in quarterly revenue in hpe's data analysis and traditional cloud computing segments. they raised the forecast as demand for a.i. servers continues to rise. those shares down 2.25%. we'll finish with general motors. shares are down ever so slightly, about one-third of 1% on a downgrade to peer perform or neutral from outperform from wolf research. they struggled to expand margins and recover losses from sluggish ev demand. shares are still up about 34% year to date. now for more on that and other top analyst calls, head over to cnbc.com/pro, subscribers get more access to the details and analysis to the big calls of the day. back over to you guys. >> thanks, dom. see you in a bit. coming up, we're going to talk to hans vestberg of verizon on the deal just announced to buy frontier communications for

$20 billion. we'll bring you that story and that interview in a moment. come on back. plus, tiny houses looking to fix a big housing problem. the co-founders are going to join us to explain the concept. it is pretty cool. and it is from the guy behind airbnb. "squawk box" returning in just a moment.

the moment i met him i knew he was my soulmate. "soulmates." soulmate! [giggles] why do you need me? [laughs sarcastically] but then we switched to t-mobile 5g home internet. and now his attention is spent elsewhere. but i'm thinking of her the whole time. that's so much worse. why is that thing in bed with you? this is where it gets the best signal from the cell tower! i've tried everywhere else in the house! there's always a new excuse. well if we got xfinity you wouldn't have to mess around with the connection. therapy's tough, huh? -mmm. it's like a lot about me. [laughs] a home router should never be a home wrecker. oo this is a good book title. news out this morning that verizon is acquiring frontier communications. joining us right now, exclusively to talk about this, is verizon's ceo hans vestberg. hans, thank you for being with us today. for people who are just waking

up, this deal is $20 billion deal, an all cash deal, $38.50 a share. why are you doing it? >> thank you, and good morning. first of all, i think this is very clear with verizon, to build networks, serving our customer with broadband and mobility. this is just extending the opportunity for us to bring the full premium fiber network as well as our offerings, as well as connecting it with our wireless offerings. so it should be a really good for consumers and for customers that we're now getting the next step. and it is actually accelerated our broadband efforts which we're doing both with fios, the strongest fiber offering in the company and the fixed axis. this is enhancing all we're doing and accelerating. it was a fairly simple decision for us between build and buy, should we continue to build or buy? and economics really is appealing for us. so that's really the reason why we're doing it.

>> meaning it is cheaper to buy or it is just a lot faster? >> it is both, actually. i would say given the great transformation frontier has done, you might remember that part of this company was verizon and when verizon sold this, this was a network, they have done extremely good transformation, today more than 50% of the revenue is from fiber. the profit is way more than 50% from the fiber. and, of course, now 7 million passings with fiber and planning to go to 10 where we expect the closing to be 10 million passing. so, it is really a good asset from that point. very different from what my predecessor sold some ten years ago. >> hans, we're looking at shares of frontier, we should point out verizon shares up slightly today on this news. frontier shares are down by 9%. that's because that stock was up significantliy yesterday. you're going to see right now it

is trading at $35.10. that's well below the $38.50 all cash deal that you are offering. that means some people out there are guessing this won't get through. where you to think the trouble could lie in terms of what you hear from regulators? >> i think it is extremely early in the morning, so i'm not sure that that conclusion is correct. we, first of all, we think this is great for consumers and we're, of course, expecting that there is going to be the regulatory approvals will be thorough and go through it. but this is a great thing for everyone involved. so, we are very confident that this will go through, but we will expect the process will be thorough and we will -- we have dealt with this type of process before. >> hans, as it relates to antitrust, you know, regulators will say what is the market? what is the market size? how do you measure the market today? when you look at this market, do you look at it as a fiber market? do you say that's the sort of market size limit? do you say, no, no, actually, we now compete with starlink and we

compete with directv and we compete with others. what is the -- how would you define that for both the viewer and frankly to the extent you want to try to define it for a regulator who is watching? >> i think mostly the other customers and given more optionality for broadband. consumers or smbs, that frontier is serving. frontier is in more -- is in 24 states, plus washington, d.c. basically not overlapping at all with the fios footprint as this was a sort of piece of verizon before. so, i think we are getting more competition, but not only that, we also bring the whole -- my home offering that we announced a couple of months ago with perks, with streaming services, home insurance and all of that to customers. that should give them more optionality and even more sort of great plans. >> let's talk a little bit more

about what this means. the talking about how this will increase the number of homes that you're reaching directly with fiber and dsl. 15 million homes, that's a 50% increase to the 30 million homes that were passed by verizon. but, he says, it is worth noting that even after this expansion, verizon would still lack a fiber-based home broadband solution in over 80% of the united states. and would continue to trail at&t's fiber footprint. what do you do on that point? >> so i think we're in a really good position. we have a unique offering when it comes to mobility, fixed axis and fiber when this deal is closing and we will continue to invest and see we can meet the customer in the right place. our focus has always been to build a network, once, and then have as many profitable connections on top of it. and as many people and customers connected to it. this is really leading way for us to take that lead even further.

so, i -- we're going to compete and we're going to have competitors try to continue to do it, but i think that with the leadership we have in fios fiber and when this deal is approved, getting frontier on top of that and then, of course, as number one on wireless, we want to have a very, very important offering to a product that everybody needs today. mobility and broadband is essential for every organization, every person, in order to actually do the job more or have fun or entertain or whatever it might be. >> ultimately, your plan with this, beyond this, hans, is that this deal will get done in 18 months. what do you do in the meantime in terms of how you spend your money? what is this going to mean in the bottom line to shareholders, with the finances on this? >> so, it is going to take -- we expect 18 months. we will continue our execution on mobility, fixed wireless axis and fios.

frontier had plans to continue from 7 million homes passed to 10 and we're supporting that. so, that will continue. when it comes to the deal as such, you know, it is from the day of closing, it will be the -- it will be accretive growth on both revenue and ebitda and that will take 12 months and will be accretive also in cash flow and eps and the first year shows we have some integration costs. and our 'lanleverage will go up it is very limited on the totality on the verizon equity and that. so all and all, it is a good financial deal. it is going to take some time, so it is heads down and continue to execute the last couple of quarters with good progress on wireless and fixed wireless access and fiber. >> hans, thank you for your time today. hans vestberg at verizon, on the news that they are acquiring frontier communications in a $20 billion deal. thanks a lot, hans. >> thanks, much.

meantime, we got a special guest joining us by phone right now, to talk about the harris tax plan. dallas maverick's owner and investor mark cuban. mark, great to have you on the program. i know you've been outspoken on twitter and x on this issue, and i'm glad you're going to hopefully be outspoken here on "squawk" about this particular plan. i'm curious, both what your take is on the tax plan itself as it relates to capital gains, what you've been hearing from other entrepreneurs and investors, and then maybe we can get into some of the debate about unrealized gains as well. >> sure. well, let me talk about the process. because i think that's the most important element here when it comes to the vice president's tax approach. you know, i talked to the biden administration, i talked to the trump administration, i talked to the obama administration, and i think the harris administration has been most open. they have been very clear to me and other business people that, look, we realize that rich people have to pay their fair

share, but we don't have all the answers. so, mark and others, what do you think is the best approach to taxing wealthy people so that they pay their fair share to help contribute to reducing the deficit, and we can come up with some new ideas? and let me just tell you, i probably talked to them and i know others do as well, three, four times a week about what is the best approach to taxing the wealthy and increasing revenue and cutting costs for that matter. >> what did you tell them originally? what do you think the right rate for capital gains should be? >> you heard her in her speech yesterday, she said that, you know, billionaires should pay more than, you know, the average working people, firefighters, et cetera. and if you just look at the numbers, right, if a firefighter or someone who is working their butt off is making $150,000 a year, they're paying 24%. she came out yesterday and said 28% for capital gains, which when i talk to them, i thought was fair. now, the next question is does

it include the aca, does it include the extra 3.8% and they didn't commit to a number to me, but what they told me is they expected it to end up with a two handle. >> but 3.8% potentially going to 5% is what some places are reporting. so, 28% sounds fair to you, mark, does 33% sound fair if that's what it ends up being? >> no, i agree with you. i agree with you. 33% is not right. and, again, i'm not committing what the final number is going to be, but every conversation i've had, including up to yesterday, after her speech, was that it was going to end up with a two handle. >> let me ask you a broader question, mark, a lot of folks have come on our broadcast critical of the vice president and her campaign have suggested that she is a progressive. and that she is going to operate very similarly to biden or in some cases people would suggest she's going to operate even more to the left of biden as it relates to regulation, potentially taxes, other things

related to business. on the other side, you hear at least privately from folks in and around the biden campaign saying, no, no, no, we're tacking to the middle. what do you think is really happening here? >> kamala harris is pro business. kamala harris -- this is kamala harris' campaign. it is not joe biden's campaign. kamala harris is not joe biden, they're very, very different. she's trying to be -- this is my perspective. she's trying to be very respectful of the president and everything he's proposed, trying to not confltradict him in any way. she talks around taxing in particular, but she's going center, 100%. literally, if you read the transcript of her speech yesterday, she has talked more about entrepreneurs and helping them have access to investment and making it easier for people to invest in startups than any president i've ever heard talk about startups and entrepreneurs. and literally -- she listens, right? this is not something where it

is just her policy piece comes out and says, mark, whoever, let's hope this works. she's, like, list me things you think we should be talking about. you're the entrepreneur, you invest in more startups than anybody i know, what do you think we should be doing and what is going to increase the number of investments and startups? and i had other conversations with her team where it is, like, i literally go through and say the higher the capital gains tax, the more difficult it is to invest in riskier investments. and the people who have the hardest time getting risk capital are women, people of color, young kids that are coming out of colleges, the people you want to take risks on, the higher the cap gains rate, the harder it is to invest in them for obvious reasons and they understand that and they have adapted as a result. >> mark, if people are -- if people are policy, what are the kinds of people you think she is ultimately going to appoint to her cabinet and around her. i'm thinking of a treasury secretary -- >> i have no idea. i have no idea.

>> but i think it is an important question, i think it is a question about who is going to run the ftc, antitrust for the doj, do you get a sense and i think one of the critiques has been that the biden administration did not surround itself with virtually anybody from the private sector. >> right, i agree with you 100%. two things. one, i told her team, look, put my name in for the s.e.c. it needs to change. and, two, that i strongly suggested that she put together a multilevel business advisory group. and they said, once we get past the debate, it is something we're going to look very strongly at. the details of that that i suggested were, one, you have small entrepreneurs and just a council of those type of business people. two, medium-sized companies because they have different issues than smaller, larger. and then, you know, the big companies, because they're going to have a completely different perspective. advisory groups i've been on, there is a whole wide range of people and it is hard for

anybody to come to an alignment because we all have different priorities. but by having this three-tier council, and, again, these are just conversations i'm having, i'm not committing to anything for them, but they're very open to them. >> mark, can i -- >> i can't stress enough, they always say give us your ideas, give us your ideas, when i talk to other business people, they're saying the same thing. she's literally having conversations. >> that's a distinction. >> i can acan i ask, mark, we'r days out two days until election day, and there aren't details around either of these candidates' plans to any certain extent, we're talking about this today, you called it, we ask you all the time to come on, you say no, no, no, no, i'm guessing you called this in this morning because you're interested in putting meat on the bones. we don't know the number, 28 or 33% for the capital gains when you include the other taxes part of that, we're thinking, you think 28% would be okay and 33%

would not be okay. and both of these candidates seem to be at the point where they're basically promising lots of things to lots of people without trying to figure out ways to pay for it. they both agree in some crazy places, whether that be we're not going to tax tips anymore, whether that's -- we're going to -- just the number of things that they actually agree on, whether it is the nippon steel deal. they agree on a lot of things, where they're differentiated it is hard to get real details on any of these things and we're 60 days away. i think americans are being asked to give it a flyer and we'll go with our best guess on things. >> couple of things, one, if you ever have taken over a company that was floundering, ceo got fired and you had to step in, it takes a lot more than the 40 days to -- that she's been in this position, to turn things around. it is not like we have heard the starbucks new ceo come out with every plan, you know, and said everything that they're going to do, it takes time to pull these pieces together. to go from 0 to 100 miles an hour is not easy.

that's the most important. second, you know, she's not just behind the scenes, she is working on the details to determine how we can reduce the deficit. obviously, if interest rates go down that will help a lot. more importantly, you know, as i mentioned earlier, we're having conversations, like, some of the things i've discussed with her team that they haven't said no to, but, you know, things like a higher tax rate on stock buybacks, which i'm a fan of. i think that's finance engineering, but, you know, depending where you take that, where does that lead? if you increase the tax on stock buybacks to 3%, 4%, which some people may think is high, what are the downstream impacts? if you do that, maybe companies will start paying dividends more. then there is the issue of double taxation. so, right now, you know, dividends are exempt up to $89,000 for a couple filing jointly. what if you increase that to 250,000 or 400,000?

now you change the way economics work for a lot of people. now you're probably going to get more people buying shares of stock, and from as a result, getting more dividends and paying taxes on those, and, you know, let's do the math to see what happens to the deficit, and how much revenue that will increase. great, the other conversation is taxing people, borrowing against liquid assets or illiquid assets. the conversation i told them, this is my feedback to them, when interest rates were low, a lot of people were doing that because it was a great art. domestic carry trade if you will. borrow at 2% and invest in a bond at 4% or 5%. because interest rates are higher, that's not going to generate as much revenue. but it is a conversation you need to have. so becky, to your point, she's not publishing a lot of details because she's still trying to flush out what all the details should be. the great part of the conversation is she is not --

she's not ideological about this at all. she's, like, what is the best way to approach increasing the amount of investment, taxing people fairly, so you don't reduce investment, and reducing the deficit. you got to get to the details before you can just throw out policies, just to make people happy by throwing out policy. >> mark, speak to the unrealized -- speak to the unrealized tax gain issue, to the extent that, you know, she, as of now, to the extent she is sticking with any of the biden plan, there would be a wealth tax effectively on some of the wealthiest americans in the country over $100 million. >> every conversation i've this is that it is not going to happen. >> it is not going to happen. >> i'm not speaking for -- it is not going to happen. i'm not going to speak for the vice president, she makes the final decision. again, i'm talking to these folks, three, four times a week, having back and forth conversations. and their verbatim words to me is that's not where we want to go, we need to find alternative

services of revenue and those alternative sources of revenue are meant to replace what the unearned income -- the unr unrealized gains tax. >> on this unrealized tax issue, gain issue, and talking about those taking loans against their unrealized stock, et cetera, and they say, well, you know, if you start to tax that, we won't be able to make investments in startups, we won't be able to give money over to venture capitalists and private equity folks and other things like that. what is your feedback to that distinction? one is critique of one, of one policy, and you get rid of that policy, then of course it moves to the critique of the next version of it. >> i told them if you tax unrealized gains, you're going to kill the stock market. right? and it is going to be the ultimate employment plan for private equity.

because companies are not going to go public because you can get whipsawed, right? my own personal experience back from the internet days, right, all of a sudden i was cash poor, but equity rich. my net worth was enormous, but the number of dollars in the bank wasn't enormous, and so i would have to based off the unrealized gains i would have had to borrow money and i would have been in hot to take my tax bill instead of trying to run my company and a thousand other reasons, right? they realized that's the issue. i can't repeat it enough, even though she's not directly conflicting the biden tax plan, to her, her value proposition is we need to tax everybody fairly. i'm starting from the biden plan as a starting point, but that's not necessarily her ending point. >> mark, let me just say, i appreciate you calling in, telling us what you're hearing on these fronts, that's great. but as you said yourself, you can't speak for the vice president, these are things they're telling you, who knows

what they're telling other people, my guess is they're telling anybody who is donating to them exactly what they want to hear at this point. >> no, no, no, no, no, no, no, no, no, no, no. no, absolutely, positively not. >> i don't know. why do you think they're telling you the truth and not telling other people other things? >> well, if they won't say it publicly? say it publicly. tell all of us. >> but you got to get the details right. >> but we have 60 days to an election. you're asking people to -- >> the day before the election, right, even if it is the day before, look, the next question is -- the second thing i was going to mention -- >> i don't want everybody to trade on what we think and what we feel and what we think may happen, just tell us. >> i get your point exactly, right? but, again, like, any good ceo you got to do it when you get it right. >> i understand that. >> your customer is screaming or yelling, we're waiting on the new pricing for the program, no, let me get it right. >> i'm not going to buy until you tell me what the product is.

>> here is the fairest question. what do you think the fairest timeline is for her to disclose and articulate exactly what the policies are, meaning recognizing she's gotten into this campaign late, i get that piece of it, and the issue of trying to get it right, but recognizing the american public needs to understand these issues hopefully to the best they can, prior to voting, what is a fair amount of time, you say four weeks out, six weeks out, i mean, we're only eight weeks out, right? >> brutally honest on what i think on this. number one, the number of people that truly impacts is less than 1% of the voting population. right? and so this is not number one priority for her. it is not. in terms of speaking about it, and getting the word out. she wanted to talk about startups first. the people like me and my position, we're not at the top of the list. we're closer to the bottom. so we're not going to get that

full detailed disclosure first. and i'm okay with that now. to your question, how much time is enough time? i mean, two weeks, how long does it take for any of us to digest any of this information? and the bigger problem is, like, when she gets the speech like yesterday, i go through and make sure i read the transcript, make sure i understand what she's trying to say, so i can talk to the people about it. most people don't. we live in a sound bite world. you talk about what the other guy is doing, everything is a sound bite. >> but, mark -- >> i was listening and reading through the speech too and the speech didn't give all the details. it didn't talk about the extra 5% in tax. the difference between 28% and 33% is a big deal. >> for most people, it is not applicable for most people. >> but if you're going to say you believe in creating jobs and doing these things, show us the details. and, by the way, donald trump is going to have to show us the details too. he's speaking at the economic club in new york today and we're taking close notes on all of this. my problem is none of these candidates are -- i'm not -- go

ahead. >> i'm not trying to disagree with you that details are important. i'm trying to say, like, any good ceo trying to turn around a battleship, right, there is only so much you can do every single day. and what i'm trying it -- the point i'm trying to convey is she's open minded, she's not an ideologue. she wants to do what is best for business. to answer your question directly when is the right time to have the details and how much time do we need? look, if it is two weeks, if it is 30 days, we're smart enough to figure out what the tax implications are before we walk into a ballot booth. more important is for the other 99%. >> the broader question for the other 99%, one of the other big critiques is that she -- while she's speaking on the rallies and conducted one interview, she's not out there sitting for interviews, where people can ask for critical questions and she can answer them. where she probably would be pressed on some of these kinds of details we're talking about, and maybe she would have to say,

i don't have the details and maybe the american public would say that's unacceptable, maybe they would say that's okay, tell us two weeks beforehand. i don't know what would be the answer. but do you believe it is incumbent upon her to be more out there, not in the rally context, but in the interview context where she is asked these questions in a meaningful way and providing the american public the same kind of access you seem to have? >> so, what i would say is the first thing she's got to do, i look -- i try to put this in context of being a ceo of a big company, right? and she just took over. the first thing she's got to do is introduce herself to all the voters. not everybody knows who she is. as the vice president, she was, you know, second fiddle, period, end of story, right? it was her job to implement what somebody else wanted her to implement or just to carry -- just to carry the message, that was initiated by somebody else. so her first role is to go out

there and introduce herself to as many voters that she possibly can by giving speeches, in swing states, where people can see what she's about, what she is like and what she has to say. and so that's first and foremost. once she gets to a point where, okay, you know, we think she's -- she thinkses she's introduced herself, she probably will do more interviews. but it is not us that she is trying to introduce herself to, right? it is not the people that pay attention to this on a day to day basis. it is everyday people living their lives and just going through their day that she has got to introduce herself to. and i think that is far more important. i'll add one other thing that might be counterintuitive to people. donald trump taught us a lot about how to win an election in 2016. he taught us that the old school way of politics did not work. he told us that you need to go

out there and communicate and talk to people and it is not like when he goes and when he gives an interview, he gets into details like you were saying, becky, but he communicates, he's out there talking all the time. biden won in 2020 by being kind of old school. but in today's election, in 2024, you got to learn from what worked for donald trump and i think she has. you go out, you communicate to as many people as possible, as broadly as possible, so you can connect to them on a visceral basis, because i personally think that the foundation to who wins this election is who do voters trust more? which candidate do you trust more? and communicating and introducing yourself like introducing your company is what matters and she's got to get out there and talk to as many people as possible, just like donald trump has done forever and i think she's learned that and i think that's what she's doing. >> mark cuban, thank you for joining us this morning. really appreciate you calling in and hope that we can talk more as this campaign continues.

thanks. >> thanks, mark. >> thanks, guys. thanks for having me. appreciate it. meantime, from one sport entrepreneur to another, rich ka climben are here. we're teaming up for the second annual game plan summit in l.a., featuring a whole bunch of speakers, evan spiegel from snap, jessica alba, kevin durant and so many more and rich is here from board room co-founder and ceo at the table. good morning to you. >> good morning, guys. thanks for having me. >> want to weigh in on the campaign like mark? >> i didn't hear a thing. just your reactions. >> maybe you -- >> that's got to be so weird. >> let me ask you about where we are in sports, last time we saw you was in paris. i don't think i had seen you after the usa basketball team won. but your reaction to what is happens right now in terms of what the olympics, what happened to the olympics, i saw you i think at the u.s. open this

week, it just feels like there is something happening here in the world of sports. >> yeah. i mean, i think it is probably the one safe space for all of us. we come up, the conversation like you guys just had, you know, i think it was clear the olympics struck a chord in all of us. something amazing seeing these athletes come together and it happened every four yeernars an we're all accustomed to it. in tokyo, we had covid. rio, it didn't impact the way it did. paris was an incredible host city. but seeing the athletes, the basketball team came together, which is interesting to see superstars of that caliber play in the same kind of democratized environment that the rest of the athletes did is incredible. what is happening at the u.s. open right now is special. i've been there twice already, going tonight. the excitement there is unlike anything i've seen in new york in a long time. >> one thing that i think is fascinating in the last year, and i think it is something that board room tapped into early was this confluence of sports and

culture. which is to say, taylor swift became a huge part of the nfl, some controversy happening now about this new campaign that the nfl is doing with her, or involving her, but, you know, you look at the u.s. open, everybody in the audience is a celebrity musician, this or that. same thing happened at the olympics this summer. and just how you think that that is shifting, even just the way the culture is around sport. >> i think the modern day sports fan is compelled by everything off the field, off the court, as much as they once were on the field and on the court. i think you don't have to be necessarily glued in to the stats and the scores and even the stakes at hand. it is the environment and the community around sports and it is really become i think the hotbed for the convergence of culture in general. >> what do you think -- i'm thinking of the kelce brothers and thinking about now -- it was very rare you had an athlete who -- by the way, kevin durant was doing it too, had a podcast, has a podcast, while he's doctor

deu -- during the season. that's an unusual thing where people have become sort of -- it is not that they're athletes, they're also media stars during the season. and used to be people had to go shoot a commercial here or there, but this is a whole different level. >> it is also evolution. social media played a part early. these are astute young business minds. we talked about this a lot. that was the thesis around board room. athletes starting at 14, 15, 16 years old are making decisions about their career, who they want in their corner, who is going to manage their money and they have see lebron james and serena williams build empires and they're coming into the world knowing that's part of the equation. that's something that comes with being a professional athlete. if you want it. a lot of them want it. they had major fan bases and major communities and the ability to directly speak to them. and now they have seen that with that kind of access they can build business and build opportunity. and it is incredible, i think. i think there is more influence

coming from the world of sports right now in all of culture than any other sector. >> how much of it is because of the social media impact. you said a lot of them have followings, they can speak directly to them. is this a new world because of social media? >> i think social media impacted everything for good and for bad in our world, but in the ways that it has impacted good, you see it in sports and the opportunities we all know are available. i think that access has been the differencemaker. you didn't really know it was behind the curtain for michael jordan's business. you didn't know how to attain it, you didn't know how to get it. but kevin, lebron, steph, tom brady, serena williams, coco gauff, we see what they're building. we see how they're building it. >> do you think it just is about the stars though? do you think this goes farther down? it is used to be you look at michael jordan, clearly has a huge business, magic johnson, huge business, but it wasn't, you know, just the sheer number of athletes having success in the business world didn't exist the same way. >> no, because it used to be that you had to be a

supercelebrity and that famous as well as successful on the court. with the amount of money the men and women are making if they have that mindset and desire and audience and community and the access, the amount of people that want athletes around is incredible. so if they want it, there is a version of that for all of them. there is a version of what they want to do, what family they want to build for all of them. you don't have to be lebron james to build this empire for yourself. >> what is most exciting thing you're expecting next week? i'll be out there in l.a. with you. >> i'm excited for the olympic conversation. i think coming off of paris, i really paid attention to what has to come into play for a city to make all of this work. and l.a. will be a challenge for having the mayor of l.a. there and having casey there and jessica alba who is sitting on the committee for casey for l.a. olympics and grant hill who played a big part in what the basketball world means to the olympics. i'm excited to hear what they're going to do infrastructure-wise. they want cars off the road. they want people to stay home and work for those three weeks.

>> i think the convenient yulev closer. you can get around like a real village. >> i think we need everybody there next week. my keynote with rich paul will be exciting. i listened to his audio book over the last two weeks and his story is exceptional. being able to really speak to him, somebody i've known for 20 years and to ask him questions about his rise has been incredible. and, yeah, it is going to be an amazing time. >> rich, great to see you. and we will see you in l.a. next week. >> i like sitting in joe's seat, guys. >> do you? >> yes. >> without the tie. >> you like the view. >> i won't be wearing a tie ever. >> no tie for next week? >> no. i'll dress up, but no tie. we'll coordinate. >> we'll discuss wardrobe. we'll see you on the 10th, next tuesday, in l.a., at game plan, which is brought to you by cnbc and board room. a big morning for sports here on cnbc. in addition, in the next hour, we're going to unveil our 2024 nfl team valuation list.

plus, tomorrow, we're going to bring you an interview with katie ledecky, the most decorated female american olympian, she reflects on her gold medal wins in paris and her memoir "just add water." it was so awesome. you were there to see her in the water. >> amazing. amazing. >> in the water, in paris, and how she does it is unbelievable. that interview is tomorrow. when we come back, greg fleming of rockefeller capital talks markets and the fed. "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 power e*trade's easy to-use tools make complex trading less complicated. custom scans can help you find new trading opportunities, while an earnings tool helps you plan your trades and stay on top of the market. e*trade from morgan stanley your shipping manager left to “find themself.” leaving you lost. you need to hire. i need indeed. indeed you do.

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welcome back to "squawk box." markets, the fed and so much more, greg fleming is here, president and ceo of rockefeller capital management, former president morgan stanley wealth management. nice to see you, sir. >> great to see you. >> we're all trying to figure out what's happening in this crazy market. as we get to october, october is that scary month, september you and i -- we all lived through september also back in the day. >> anniversary is coming up. >> that anniversary is coming up as well, back in 2008. so where are we really in your mind? >> one thing i'll say is that people get agitated quickly when markets start to move. but a few fun facts for you. if you go back to 2011, there

were 35 days where the market moved up or down more than 2%. and in 2012 there were 21. 2023, there was one. and so far there is three this year. so, we're at a pivot point in the economy where the fed is obviously moving in a different direction, where things are clearly softening. you look at the numbers yesterday, the beige book and employment, so whenever you get to a pivot point in the economy, you're going to see more volatility. and it is just normal. it is the market kind of flushing. and working its way through in terms of what's going to happen now. so, i think a lot of this is normal market reaction to a changing macro backdrop and the volatility has been extremely low in the last couple of years. >> what are you telling your clients, though, if you have a lot of high net worth clients in the world, trying to figure out what to do with the money, some have cash on the sidelines and

sitting around and ask are soms know, how bad is it out there, is this a moment to be stepping back in, is it a moment to wait because you think things will be crazy? >> one more fact, if you go back to 11, 12, a lot of volatility and macro uncertainty, the s&p is up almost 500% since then. so we sell our clients and we have the best advisers in the industry, they have a long-term plan, they say stay steady with the plan. clients and advisers now are looking at the election, there is more uncertainty, but they're sticking with -- >> what do you tell them on the election front, by the way? >> it will matter who the next president is. the debate around tax plans, you're starting to see more specifics come out here. one thing that is amazing to me when we get into the election is everybody is staying away from the most important issue from an economic standpoint, which is deficit spending.

and you don't hear either candidate talking about deficit spending, the american people, the american economy, we are spending $3 billion a day in interest expense now. week days, weekends, $3 billion a day in interest expense on the defense budget. >> yep. >> now it does. you don't hear anybody talking about the fact that at some point, and it's not so far away now, we have got to, as a nation -- this isn't a political statement. it's a statement about the country -- we've got to deal with this issue. >> a statement about math. >> it's just math. avoid the whole political debate, which party -- it's just math. you can't continue to spend 6% to 7% deficits as a parsage of gdp indefinitely. no country has successfully done that ever. >> go ahead. >> well just going to say, you're an expert at the markets. market are the ones that sit up and say, no mas. this is not going to happen

anymore. when is there a pushback on treasury buying to say we're not going to continue to do this? because politicians aren't going to address it until their hand is forced. >> becky, a great question. i still think at some point here you could have a higher, higher rates farther out from the curve simply from a supply and demand spanned r standpoint. market says, no. push back on the fed. the amount of debt refbsed on a regular basis, the numbers are staggering. at some point the market will rein it in. >> i agree entirely. the question is the hard part, which is which services is the u.s. government not going to provide to which americans, right? what happens, by the way, i think is, a lot of people see us talk cut, cut, cut, because that's the only the way the math will work and they say we can afford to live with the cuts because we're not the ones hit by whatever the services cuts are, because we've been lucky

enough to be in a place we can afford some of these things and others can't. gets into the nitty-gritty of it. >> back to math where becky was. just the math of it. the deficit today is a result, when you look at long-term trends. 50 years. as a percentage of the economy it's spending that's out of whack. where they've been the last 50 years. there has to be agreement what can't we as a country afford? because the blip over this recent time frame that's created such a significant increase in the deficit is on the spending side. there has to be -- this is where there is a center to the country. some team say 85% of the people are really in the center. the center needs the political parties and maybe the markets will force it at some point. when that happens, though, becky -- i asked my friends around this topic the same question. okay. what's going to cause it to pop? people talked about we lose the reserve currency, maybe rights spike beyond the fed's control. which is that going to happen

and what it will be? if we get to that point that's going to be a big problem. it's something nobody foresaw. >> not a clean or easy fix then. it will be forced. >> greg, a longer conversation, and we hope to have you back to continue it. get into some of the nitty-gritty. thank you for micong in. appreciate it. when we come back, a lot more right here on "squawk box." >> i made a promise to my daughter that i would get my college degree. i had 20 years of experience as an hr professional. i had reached a ceiling, so i enrolled in umgc.

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tesla. and also with us, co-founder and ceo of the company as well. good morning to you both. >> good morning. >> tell us what this is. i've seen it. it's amazing. they're tiny homes, but not that tiny, actually, and on your property separately from your actual house? >> that's right. samarra's mission improve the way people live by reimagining the home. we do that by designing, manufacturing and installing adus in backyards. now, adu stands for accessory dwelling unit. probably seen it before as a caseda, granny home, a back house. this flex space gives homeowners a dream bigger about earning income, housing families, the way kids come in from college. >> this started because of your experience at airbnb? >> right. the idea was born when i was leading an innovation team inside an airbnb and actually in

the market for a factory-made adu and incredibly frustrateed by beautiful products turnkey for the consist mustomer and eao finance. spun it out of airbnb, co-founded together to bring this to a stats-growing market. >> why didn't airbnb want to do it? >> that's a good question. >> airbnb is an incred particularably profitable software company. >> a different business? >> this is a different business. >> what's the cost of one of these things? >> depends what you get. we have united nations from 420 square feet up to 950 square feet depends how they're configured. there are configuration options. typically ranges from 250,000 square feet up to 450 or 500,000 if you get a fully loaded two bedroom, two bath. >> most people buying these are buying them because they want to turn them into an airbnb or they

want extra space on their property for family members as an office, as a -- what? >> so most people, probably 50% of the people, demand we see, people that want to rent them. not on airbnb. typically cities don't allow short tern rentals when they're in your backyard but they do it for long-term rentals. that's the primary use case people are putting them in the back. what's the zoning issues? i was going to ask. a certain amount of property. sometimes you can't build something who close to your neighbor. >> i'd like one for my yard but not for my neighbor. >> eat city, state and municipality has different rules. what's happening in california, for example, passed all kinds of laws. >> because they have such a housing problem. >> because they have such a housing problem. it's all right to have one in your backyard. put it four feet from the fence, six feet from the home no more than 14 feet high you have a right to put them in.

basically guaranteed. >> i can't even put a fence. we got denied. >> sometimes the home owners' association get out of control. >> it's not a home owners association. it's a down. >> complex issues and homeowners aren't experts in construction. why a part of our offering is we handle all of that for the customer. >> how does it work? literally, you own the website and, yes, doing all of that. explain how it works. >> people go to smart.com and figure your unit. a couple option. cust mids, size, footprint, some materials and then we get to work. three things happen at the same time. we start the production process in the factory. we visit the site and start the land prep in the backyard, which takes about four weeks to put a foundation in. and then third thing is we start the permitting process. it's really a hands-off process for the consumer. >> how much does it cost me if the permitting doesn't go through? again, i would love one in my backyard. i can't imagine my town would allow me given the run-ins i've

already had with simple stuff. >> the price i mentioned includes all of those things. >> what if they turn me down and i can't do it? >> before the work go to the city, apply for the work and do all that for the homeowner. we know because we've been in the business long enough what are the constraints that are going to be in each of the municipalities and whether there are restraints with home owners association. do all that work for you. >> right now just in california. >> correct. >> the question is, when does this go national? for those on the east coast, for example? who might want one of these things. >> we started in california just because the market's so good for adus. people need space, can't move out of the home. cost of living is tremendous. do it for rental income you have high rental income. we started in california, and the other thing is in 2016, california started passing pro-adu regulations. between then and 2023, the demand for permits, increase, gone up 20x over that very short

period to the point of it's one out of five of every building permit that gets submitted in california is actually an ad u. we start in california, because the housing crisis is the most difficult, most acute. return on rental is highest. we've seen a tremendous adoption of a lot of these adu laws across the country. >> where do you go next? >> actually saw new jersey and new york recently start talking about passing a lot of adu regulations. >> that's what -- you would go if they would pass regulations? that would be the answer? >> we need to make sure we have the market, the right product market fit. it's a little different in terms of climate we'd have to deal with out here. supply chain a little differ and waiting for kind of the adu laws to adopt. like you mentioned, your property can't do it. >> can't even do a fence. >> we love the idea starting in california, perfecting our model, driving our scale. building our brand kind ofover

9 next few years. >> including new york, new jersey, colorado and many others. follow those across the country. >> crazy to think it's like what you've done with tesla. just, you can buy a house on your phone. >> permitting is the biggest issue. deal with permitting getting the land set up. >> we do all that. the other thing, you mentioned tesla. we do financing as well. think about really simplifying the process, most people that buy another home for their property need financing. just like when you go to the car dealer. go to tesla you want to buy a car you have an amazingly easy process to lease it. or to actually finance it. you which a choice. we do the same thing. our own financing product, a licensed mortgage broker, and we'll take you through the financing process. so it's a very simplified system, and building construction and pound in the nail in your backyard one at a

time and after a year, an unbelievable process. >> joe and mike, thank you for coming in. fascinating. congra congratulations. they're gorgeous. it's the tesla or apple of housing. the question is, i don't know if you ever -- when you ever build big homes? just totally out of the question? >> don't rule it ounct. >> thank you, guy. sticking with housing skyrocketing housing prices are hitting particularly hard in a must-win senate battleground. that's the state of montana. emily wilkins is there and joins us with more. hi, emily. >> reporter: hey, becky. yeah. this brand new house in missoula could be yours. in montana, it's going for almost $3 million. an increase of people moving into the state plus a labor shortage made montana the least affordable state to buy a home according to the national r

realtors association. had to change the teich of home he was building after some became too expensive. >> professionals weren't able to afford. it we've seen those houses in our existing inventory remain in our inventory longer than we would like to see. >> democrat jon tester proposed government funding and tax credits to help average montanans afford a house, and it's also plamed on inflation. in a recent debate talked about a need for trade jobs to help with demand. 's recent polls show shehi has a slight lead. >> thank you. and co-founder brian chesky, he argued widely accepted ideas how to run a larger company are wrong. especially for founders who have

the unique potential to keep a business focused. people are calling it founder mode. the question is, is this the new convey to lead? jon fortt is here to weigh in. jon? >> hi. yes. it is a real thing especially relevant now with an iffy global economic picture and thinner ipo market investors are trying to exert for inflounce how founders run their companies to get them to the next level of scale, and a lot are giving bad advice. airbnb, a $73 million company sd disrupting the housing market. it swerved. popular wisdom to scale a company, launch new products, embrace complexity. ceos going to manager mode hiring comp tept managers delegating dames to them. taking inspiration from former apple ceo steve jobs chesky went the other way. airbnb could only focus what he could tackle on and stay engaged

keeping the ceo in full operation for the company not reports, he kept is simpler, nimbler more functional. sounds like an organization with 6 a direct reports and discourages one-on-one meetings. seems to work. >> so is this really a new way to lead, though? or really just a new spin on trying to prevent bloat from expanding? >> well, becky -- "on the other hand," founder mode isn't a real thing. it's just a self-aware ceo finding the most effective way to keep the business aware and accountable. 15 years ago when hewlett packer was riding high the then ceo known for grilling product executives about operational data and memorizing the numbers. it was a numbers oriented ceo engaging in details. founder of taco bell or chipotle, took over, he used store operations and product

marketing background identifying metrics that matters and stayed plunged into the customer experience measuring improvements, and owner of amd, technical vision and discipline to drive the company out of a ditch, which brings me to my problem with the branding of founder mode. just good management for companies facing growth or crisis, which require a ceo to navigate rapid change. founders have built-in advantages. often know the cheap codes for the games designed. it's not founder mode. it's accountability mode. >> completely convinced me with your second argument. it's good management. the ones who are know this and managers really good don't have to be founders, but they know this, too. >> not navigating a business with rapid change, founder mode is actually really annoying. >> right. right! then it's micromanaging. >> let me ask you a different question about this, though. >> yes. >> does a licence that a founder has, it's not just a licence that they think they have. it's actually the licence that

the employees under them think or know they have. so the acceptance, you know if you're a hired manager and somebody else is layered below you, you might look at them, aww, another hired manager. maybe good or bad or what have you. i think people look at the founder fundamentally in a different way. that's part of what gives them the licence to make changes and actually effectuate things that actually a hired manager has a higher hurd toll get to that respect level. >> yes. >> if you will. it right? >> also givings a licence to do bad things. >> potentially, too. sure. >> bad behavior for a longer period of time. it can cut a couple different ways. founder mode can drive you off the road. if founder mode full self-driving? i don't know. trying to -- well, the newsletter is not full self-driving. you have to sign up for that. >> founder mode for you. you're the founder. not just a hired hand. >> hopefully it works out.

scan the qr code on the screen. get the full text of both these arguments. >> you say right will -- weren't the founder, maybe could tell you otherwise. could happen. >> thank you. the "washington journal" reporting that donald trump will back forming a government efficiency commission recommended by elon musk. that proposal will be part of a suite of economic proposals that trump plans to outline at a speech today at the economic club of new york. the "journal" viewed portions of the speech saying the commission would conduct a financial and performance audit of the entire federal government and "make recommendations for drastic reform." we are going to be watching this speech closely. i'll be there, eamon's andying and checking it out as well, and again looking for details from both the candidates on how they're going to be operating, what they would be doing. >> yeah. meantime, new this hour,

cnbc unveiling our official 2024 nfl team organization. topping the list league's most value team. the dallas cowboys. los angeles rams in next with $8 billion valuation. list created by cnbc's senior sports reporter mike ozanian. he's going to join us later this hour to talk all about it. comes ahead of tonight's big nfl kickoff game between the super bowl champions kansas city chiefs and baltimore ravens. airing on both nbc and peacock. this afternoon "closing bell" an interview with president of the l.a. rams and later speak with roger goodell. you don't want to miss that either. when we come back a lot more this morning. breaking adp jobs data. the numbers and reaction as "squawk box" rolls on right after this.

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all right pap look at futur this thursday morning. dow up nine. paired gains saw earlier. s&p futures down by six points. nasdaq down by about 58. technology shares feltz the biggest pain in this entire week. right now we have adp numbers out. steve liesman has those. right over to steve. >> becky, thanks. just 99,000 adp reporting private payrolls for the month of august rose by just 99,000. an estimate of 140,000. lowest level reported by adp since 2021. good sector up 27,000. really that bad for the good sector. service sector just 27,000. all against a payroll estimate for friday of 161,000.

we'll see how confident economists and forecasters are in that forecast as the day goes by. july revised down by 11,000 to 111,000 from 122,000. where were the jobs and were weren't they? small business did not do very well this month down by 9,000. you see right there. medium okay at 68,000. large businesses greater than 500 employees up by 42,000. by industry, there's education health services at the top again, but not as strong as it's been. construction okay. 27, but in that good sector it was manufacturing that took off the 8,000. financial activities okay, but professional business services down by 16,000. and data on wage gains unexchanged at 4.8% year over year for job stayers. 7.3% job changers. we don't know. ed series not going back to pre-pandemic where the right level is but at least for a couple months bottomed out at

this whatdo you call it, relatively high but much lower than it had been in terms of the wage gains out there. becky, this adds toconcern about the economy. consumer spending kicked down in most districts. only three districts reported out of the 12 districts of the federal reserve reported any increase of business activity. seems to be a gathering weakness here. how much deterioration, we'll see at 8:30 with jobless claims and again tomorrow in the payroll report for august. >> steve, you hit the interesting point. how this is going to impact potentially people's estimates for what they are going to see tomorrow with that jobs number. do you think automatically, is that what normally happens if there's a stronger, weaker number, people adjust the numbers? >> there are a lot of different attitudes about adp. some throw it out. some use it as an essential part of their forecasting. i did the math again. do it every month.

the absolute difference between adp and the bls private sector report has been 31,000 the past three months. so it has been close. it's been very wide in the past. the three-month average. as much as 150,000. but it's been pretty close recently in the 30 to 50,000 range. so i would think it could influence to the down side a little bit out there. the expectations of the market. >> okay. steve, thank you. joining us now to talk more about it is nela richardson adp's chief economist. what do these numbers tell you? >> well, it telling me that after two years of outside hiring and growth we're finally seeing a normalization that's cooler than expected. cooler than average. slower hiring than we've seen in the past. so taken together with other data, it's pointing to a softer labor market. we're not falling off a cliff.

these are not job losses but slower hiring, stable wage growth. >> why do you think small business seems to be feeling the brunt of this? that's where the declines came in, the job losses came in. from small business. >> yeah. structurally the economy's changed a lot over the last four years. i think one of those notable changes has been the pick-up in small business. remember, new firm formation, business application soared during the pandemic, and some of those were really viable small firms. about a third of them were what the census called hyperpropensity employers able to add head count. some worked. i think part of this is you're seeing that structure shift that some of these firms are new, and so they take longer to pick up steam and to hire. more importantly. also, a lot of small firms are tied to leisure and hospitality. restaurants and bars. they saw outsized hiring by adp

numbers in the past two years but the hiring slowed. so it's an industry effect and a structural effect incurring that. >> and if you were on the federal reserve, what would you think this is an indication of a need for? is it a need for 25 basis point cut? a 50 basis point cut? >> i don't think this jobs market actually points either way for a federal reserve that is looking at a co-acophony of data. i'm sure the federal reserve members are attuned to this. it picks up on trends of weakness we saw before the pandemic. like manufacturing. manufacturing was shedding jobs six months leading in to the pandemic. that trend was masked by all the changes we saw over the last three year, but when you look at it, we're picking back that

trend of soft and weak manufacturing. so when i look at that 99,000 private sector, i say, hey. this is a pretty normal hiring market. except for manufacturing. that's the missing part. as the service sector is normalizing, manufacturing is not a team player in this market. >> plays into what we're seeing around all of this talk about u.s. steel and potentially nippon buying them. what we should do around those things. thanks for being here. >> thanks for having me. colorado governor jared polis joining us to talk about kamala harris capital gains tax proposal and disbursing small business growth. less than 12 hours to go before the nfl's first kickoff of the season. ap brand new set of rankings ahead. 7:00 p.m. eastern time on nbc and peacock. don't go anywhere.

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proposing an increased capital tax gain of 28% for americans earning $1 million or more. lop some questions whether it's actually 33% when you include some other taxes that are built in to that, if you would go ahead with the, the rates on some other issues to build it to 5%. what robert frank was talking about with us earlier. we're still trying to figure out thedetails. at rally in new hampshire, ten times the amount. talking about the economic proposals is colorado democratic governor jared polis. gov governor, thank you for being with us today. >> a pleasure. >> why don't we talk through

these economic pieces that we're starting to hear, starting to see a little meat on the bones around some of these things. what did you feel about the increased focus for small businesses and entrepreneurs? >> first of all, it's exciting to see really one of kamala harris' first significant breaks from the biden administration is in a pro-growth an entrepreneurship. 2 25 million new companies and increasing start-ups from 5,000. it's a joke. nothing costs $5,000. to $50,000 encouraging risktakers to start tomorrow a small company, which may be next week's large company. talking about value creation. it's really the way she frames as the opportunity economy. you work hard. you have a great idea. you take risks, you get ahead. a welcome break from the biden administration policies, and we can build upon the success and

create a bitteretter future. >> long term capital gains a big break from the biden administration as well instead of going to the 44% biden proposed she's talking about people making $1 million or more paying 28%. but there is confusion about the net income tax and whether that would be raised to 5% making that total tax 33%. do you know any of the details around that? >> i saw her roll out, again, the 28% rate. a welcome rate from 44%. a goldman sachs analysis showed that donald trump's tariff tax plan would decrease gdp by 0 . 5%. tariffs are a tax on gross. making money or not. 20% times 10% to 20% on gross, on everything, every item ported is a huge drain on the economy. on the way that a smaller tax on net can never be. so that's really fundamentally why kamala harris' economic

policies are much more pro-growth than donald trump's and i'm excited to see the break from the policies. the biden administration, always put out there, right? never passed congress. i don't think anything thought would be like 35, 40, 44%. the fact that joe biden was talking about it was always a drain on his credibility for those who want to value growth. >> anone of the conversations w had with mark cuban, timing, we'll hear more about the plans and proposals and policy issues that the vice president is running on, and unfortunately thus far they've been short on details and one of the things that mark said. he said, look, just jumped boo theboo -- into the race. give her time. the question for a lot of voters, how much time ? we're two months out from the election. when does the american public need to or should know about all of these policies in detail so

we're not debating whether it's 28% or really 33% or there really is a tax on unrealized gains? or there isn't? et cetera? >> look, i think you could learn a lot from the way she's prioritized the policies she has. first one out of the door, housing. one of the biggest costs the american people have. removing barriers to housing. building 3 million new homes getting rid of bureaucracy and red tape allowing builders to build. second, economic policy. right? for the first time really distancing herself from what president biden put out there saying we need more pro-growth economic policy. more than that, we need economic policy that encourages risk-taking and an prentreprenep and excited to see that right out the gate and excited to see the new ideas about how to encourage entrepreneurship and growth. >> governor, thank you for your time. sorry to cut it short.

data is hitting right now. appreciate your time. >> thank you. over to steve liesman who's standing by with more breaking economic data this morning. steve? >> yeah. just waiting on the data here, guys. looking for 229 on jobless claims and for the productivity to rise by, rise up to 2.5% from 2.3% and unit labor revised down. should be hitting just about now. there it is. jobless claims, 227. they will not confirm the weakness that everybody's waiting for it to confirm. that's down from -- again, down from 232,000. the prior week. continuing claims falling to 1.838 million from 1.86. so the number of people accumulating in the jobless -- unemployment insurance declining there. non-farm productivity coming in right at estimate. 2.5% revised up from 2.3.

unit labor costs -- wow. revised to 0.4 from 0.9, guys. this is really confirming for a, a piece of data i know the fed chair watches closely. that the inflation impulse from labor has really come down quite markedly. you know, you were running quite a bit higher on unit labor costs. the productivity story, guys, could be an interesting story talk about here. be really careful about using the high frequency productivity data, but one of the untold stories from that big revision downward we in in the jobs, if you don't revise down the growth it means we're much more productive. could be a gathering productivity story, which is good for growth long term and good for inflation. but like i said earlier today. yesterday's beige book about

flat hire ago cross the districts together with today's adp report raising questions about the strength and momentum of the economy. this number today, the jobless claims, not confirming weakness when it comes to firing. which is sort of what we know. andrew? >> steve, so, okay. put your jay powell hat on. you read these numbers. think about these numbers. you say, what to yourself when it comes to what we'll be hearing, i wouldn't say next month. here already, in september. >> i think the first thing jay is saying is, god, i hope we're really in a productivity boom here. what every fed chair hopes for. i think he'll say, god, i hope we're in a productivity boom and i'm able to recognize it if it's really true and, there. that's the first thing. any economics, any person in economics ever hopes for. that's the first thing. second thing is, good. we don't have a whole lot of firing, but i do have to watch the hiring side, because as you might think about, andrew,

employers try to hang on to their workers. they say, okay. maybe you don't work as many hours, do a different task here, before i have to let you go. so the hiring stalls and then the firing comes in. right now the hiring seems like it's even at 99,000. actually not that bad for a normal economy here. it's just we've gotten used to, as nela said, big numbers in the postpandemic economy here. 99 would be a normal, decent number. see what happens tomorrow. look, my problem here is this. i think i correctly faded the last couple years. all of these recession calls. i don't want that to bias me going forward in the economy really does weaken here and not be aware of what's going on with the economy. it's not going to fade every time, but be a little careful. they had it wrong a long time. ended up reducing, i reported

yesterday, job vacancies not real jobs. that went away. you get to a point now where this ratio of the vacancies to the unemployed is right around one. that means when we do have further weakening in the economy you'll lose jobs not vacancies. >> steve, thank you. for more on the data talk about tomorrow's big jobs report, bring in senior u.s. economist at deutsche bank and ask you the same question i just asked steve. jay powell sees these numbers and of course see what we get tomorrow, and thinks, what? >> thank you for having me. and steve hit the nail on the head. sees these numbers and doesn't see the labor market as a source of upside inflation riskly inmore. that's reflected in unit labor costs reflected in higher productivity. the concern now as espouses at jackson hole is downside risk to the labor market. so the upside risk to inflation, kind of fading at this point. it's all about the labor market and making sure that they don't see further cooling in the labor

market. >> is that a quarter point worth of juice you want to give it? or 50 basis points? >> see what tomorrow brings. we expect 150 on headline payrolls. 140 on private and unemployment down to 4.2. those speak to a 25 basis point move not 50. fed's only really done 50 usually after surprise meetings when there is somewhat of a financial shock or more, greater concerns. >> you think bad news then is good news? i mean, the other piece of this we're trying to figure out when we see the number tomorrow. how we're supposed to sort of read the bad news as good news? >> yeah. >> or you know what i'm saying? >> at this point, bad news is bad news. concerned about a sharper labor market downturn. potentially signal recession. at this point i think bad news is bad news and you're seeing reactions to, in asset prices, recent weakness in labor data. >> walk us beyond the headline

number in terms of the fine print. what are the other numbers that you focus on tomorrow morning? >> for us, looking at the household survey. it's going to be that temporary, on temporary layoff versus what permanent layoff. up to this point basically the rise in unemployment rate from 3.4 to 4.3 has been mostly reentrants and new entrants. sort of a labor supply story. right? >> right. >> sort of a labor supply story. if we see permanent layoffs begin to start to tick up, that's problematic. that's indicating, as steve talked about, that rear seeing a rise in layoffs. jobless claims so far don't sf speak to that. steve noted. followed that pattern from last year but something the fed is looking out for. >> and a curveball. i don't know if you read the "wall street journal." fascinating piece about immigration and workers in the united states. did you see this? >> looked at a a lot. >> an interesting piece, because

it effectively seemed to suggest that if you cut off immigration, even illegal immigration to some extent, you could create productivity problems in this country. curious what your reaction was to that? >> immigration, we freed it. we need it. leave it to policymakers to decide how that is, but, yes. the dirty little secret here is that even legal immigrants pay into -- >> not suggesting we want illegal. but reading the article, that's what it made me think. >> yes. it's a contribution to the economy and to productivity and so, you know, you want to come up with policies that would, you know, sort of bring these people in to the light, i would say, and bring them into the economy more fully. yes. the contribution to the labor supply story is one of the reasons why the fed's not hiking anymore right now. >> interesting. thank you for coming in this

morning. thank you. >> thanks for having me. >> you bet. when we come back, inside cnbc's brand new nfl team valuations list. don't go anywhere. "squawk box" will be right back. . what makes it possible is unmatched connectivity and 5g solutions from t-mobile for business. t-mobile connects 100,000 delta airlines employees. powers tractor supply stores nationwide with reliable 5g business internet. and helps red bull revolutionize coverage of live events. this is how business goes further with t-mobile for business.

verizon buying fiber internet frontier communications, all cash deal worths $20 million. helping compete against at&t and others in the broadband sector. joined us earlier this morning on the frahm. program. >> ap simple position for us between banld buy. should wecontinue to build or should we buy and economics really is appeals for us. that's really the reason why we're doing it. >> frontier's got pabout 2.2 million subscribers. verizon 7 million. five states and also washington, d.c. verizon frontier deal expected to close in about 18 months. of course, some regulatory scrutiny which we talked to him as well? >> you missed the 7:00 hour of "squawk box" today, mark cuban called in to talk about vice

president harris' plan for taxes and small business. he says speaking with her team as economic policy. we talked about the lack of specificity from both candidates two months before the election. by the way, with lots of ballots going out for early voting. >> it takes a lot more than the 40 days to -- she's been in this position to turn things around. not like we heard the starbucks ceo come out with a plan and say everything they're going to do. it takes time to go from 0 to 100 miles an hour is not easy. that's first and forward most, the most important. >> again, people asked to make decisions on this right away with vetting. voting. former president trump will speak to the club in new york. backing creation of a government efficiency commission as recommended by elon musk. we'll monitoring that speech

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welcome back to "squawk box." take a look at futures. red arrows on the screen. dow off 18, 19 points. nasdaq looking to open down and s&p off a little over 11 points. meantime, nfl season is kicking off tonight on nbc and peacock. the super bowl champion kansas city chiefs taking on the baltimore ravens, but this morning cnbc's sports is kicking off its official nfl team valuations on cnbc.com.

the list ranking franchise values of each of the league's 32 teams. according to the list the average nfl team worth a record $6.5 billion. sitting atop the list, dallas cowboys worth and estimated $1 bil 1 billion. and much higher prices can go, the man behind it all, valuations guru and cnbc senior sports reporter, mike ozanian and welcome to the network, to the company. to all of it. thank you for doing this. >> it's great to be here. really excited and what better way to kick it all off than with the nfl. biggest and most profitable sports league in the world. >> so you look at these prices. these price tags. the big question is, is this sustainable. can this continue? and how high if it is? >> mind goes back to first valuing teams in 1989. looking at the list. did all the leagues at once. yankees atop at the time. i said to a sports banker, i

said, because george steinbrenner bought the team for $8.8 million. is this sustainable? no way. because tv rights will never continue to go up like they have. here we sit today looking at these valuations. >> how do you do it? soft the methodology? >> it's simple. basically multiples of revenue looking at comparable transactions. commanders last year sold $6 billion, 11 times revenue. broncos the year before, just under nine times revenue. primary driver. markets determine it a little, too. >> no discount cash flow analysis going on? >> not quite yet but coming with private equity coming into the league soon. >> how come the dallas cowboys have nor revenue than everybody else? >> simple. je jerry jones is the greatest advertiser through licensing agreements get $800 million from

stadium revenue. >> wow. >> the league average is less than $300 million. >> is it beyond just the stadium tie-ins and stuff? where else do they get revenue? thinking of the fans. a crazy fan base including people in new jersey, new york, all over the country. >> a great point. jones knew when he bought the team in 1989 for $150 million the fandom of the cowboys in the nfl was so much brgreater than e league's revenue. to your point, started "the star." a complex built near at&t stadium. getting revenue from that. licensing money, sponsorship money. expanded the grand to capitalize on the fandom. >> what's the cheapest team at the moment? do you think they're undervalued? >> yes, they are. talking ak the cincinnati bengals. a little over $5 billion. trying to get renovations to their stadiums. stadiums are the key right now. talking about 400 million per teams shared equally. doesn't matter how bad you are

on the field what city you're in. stadium revenue from suites, hospitality, sponsorships you keep. you don't have to share with the other teams. >> when the nfl announced they would allow private value of al? >> i knew where it was going so i marked up the value a little less than 5% because they're going to move into this slowly. >> how do you think it's going to change the game? >> on the field, not much, but the way it's going the change the economics is in the beginning, you're going to see some teams use this private equity money for estate planning purposes, to buy out some lps and also for renovations to their stadiums, like the chiefs, for example, they could not get public money to renovate their stadium or a new stadium, they might use some private equity money to renovate their field. >> that was going to be my question. on wall street, you're trying to figure out who's making a good deal, who's on the losing end of a deal. is the league on the winning side of this deal with private equity? are they going to lose as a

result, or can you possibly have two winners? >> i think you can have two winners because the values are going to continue to go up in the nfl. revenue is going to go up in the high single digits, easily, based on the tv contracts and what's happening with sponsorships. the nfl is going to share some of the carry that the private equity firms get on it and divide it among all the teams. >> let me ask you a different question. josh harris, for example, former apollo guy, now owns the commanders, and we did an interview and we were talking about his vision for being an owner, and one of the things he talked about is he wants to bring a championship home. that's what he wants to do. a lot of owners say to themselves, i need to bring a championship home to the city where i am. and in some cases, we did an interview with steve cohen earlier this year, he's spending an enormous amount of money. if you had a private equity owner, if you will, with lps, they may say, no, no, you're not going to spend this kind of money. this is crazy town. by the way, sometimes spending money doesn't necessarily get

you a win either, but will it change the dynamic with how these teams ultimately get operated? >> i don't think so, because number one, you have a salary cap in the nfl. no matter what, the players are going to get between 48 to 49% of revenue. number two, when you spend money, particularly if you have a great quarterback, i mean, the jets revenue, even though aaron rodgers only played, what, four plays last year, the jets revenue from tickets and sponsorships rose double digits just from signing aaron rodgers. so, winning enables you to get more from ticket revenue, more from sponsorship revenue. it's really what i see as private equity seeing the game plan that the nfl has and being able to, you know, get a piece of that. >> how do you think the jets are going to be this year? >> if aaron rodgers stays on the field, look, i'm a giant fan, but if he stays on the field, i see the jets as a playoff team with rodgers and a really good defense. >> revenue, streaming revenue, and just the whole sort of shift. we just saw this nba deal where amazon's now jumped in. obviously, there's a debate

about what's going to happen to warner brothers and everybody else, but long-term, all sports, you think it all goes straight up line to the moon? >> you have these regional sports networks that are struggling. different cities are struggling. what does it look like? >> i think in the nfl, you're going to see it on linear tv for many, many years. we know at least seven more years, based on the current tv deals. the nfl has been brilliant at sort of doing more and more on streaming, starting with the youtube for sunday ticket last season, $2 billion a year deal. now we're seeing netflix. they have a couple of games this year, paying $75 million a year. amazon has a wild card playoff game. $120 million, they're paying. so, they're doing a brilliant job of parsing it on both platforms, linear and streaming. >> is there another revenue piece that you think owners, long-term, will have an opportunity to capture? >> yeah, i think what they're trying to figure out right now is they have some great programming, nfl red zone, nfl plus, the league streaming

service. you've got a lot of historical films, you know, old games and stuff like that. they've been toying with ideas of maybe do we put that in a separate company? do we sell equity in that? how do we monetize that? that's going to be the next big revenue gain that the league has. >> we have roger goodell on tomorrow. what would you like to hear from him? >> i'd like to find out, how many international games is the nfl going to have in the coming years? i think taking the brand overseas is going to be a big part of their growth strategy for sure. >> mike, thank you for coming in. welcome to the club. it's going to be a lot of fun. for the full nfl team valuation list, make sure to go check out cnbc.com/sport or use the qr code on your screen, take your phone and tag it on the screen, it's much easier. don't forget, tonight is the night you can tune into the nfl kickoff game on nbc and also you can just do it on peacock where

the chiefs will take on the ravens and you can join us next tuesday in l.a., game plan conference coming up, a hugely high-powered event bringing together athletes, owners, investors, innovators, to explore the dynamic intersection between business, sports, music and entertainment. scan the qr code or visit cnbc.com/gameplan to register. i will be there along with so many others. you'll be there as well. >> absolutely. >> mike will be there as well. when we come back, top stocks to watch as we make our way to the opening bl wl elonal street. don't go anywhere. sometimes, all the tenacity and grit in the world... ...can't overcome the boundaries we face. ( ♪♪ ) so morgan stanley is partnering with the women's tennis association to remove them. ( ♪♪ )

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all right, swelcome back to "squawk box." we'll start with verizon and frontier communications. verizon right now just about flat on the session. frontier down about 10%. this is all after verizon said normally yesterday it would buy frontier in an all-cash deal worth $20 billion. frontier shares closed up yesterday after "the wall street journal" reported on those deal talks. top golf callaway brands up

about 5% or so after the board said it would split the company up into two separate businesses, unwinding the tie-up. remember, callaway combined its golf equipment and apparel business with top golf's driving ranges back in march of 2021. since then, the stock has struggled somewhat as consumers tightened spending and sales growth has slowed, so top golf getting a pop on those separation plans, and we'll finish with jetblue. the airline's shares are up just about 4, 4.5% after it raised guidance for the third quarter revenue side of things. the company previously expected a decrease of between 1.5 to 5.5%, so jetblue flying somewhat higher. >> dom, thank you. >> am i allowed to do this? >> are you? i said you're okay. look, we are here with colonel mark walker from the marines who are here from okinawa, japan. you guys are doing a tour. what are you here thinking, doing, learning?

>> here in a commanders media conference learning how to interact with the media and talk with journalists. >> here we are, interacting with us. >> we appreciate it. >> we appreciate it. thank you for your service. >> thank you. we really appreciate it. >> thank you very much. >> it's great to see you here, and we'll continue this conversation after. >> thank you very much. >> thank you. that does it for us today, everybody. thank you for joining us, and we'll be back here tomorrow. right now, it's time for "squawk on the street." bye. ♪ good thursday morning, welcome to "squawk on the street." david faber has the morning off. premarkets have been soggy as the focus shifts to the back row. adp with a big miss, first sub-100 print in nearly three years. yields lower across the board as the odds of a half-point fed cut gets more traction. nvidia's under a bit of pressure again. the company denying reports that it received that subpoena from doj. the vice president proposing