and seeking possibly breaking up the company. it's tuesday, october 1st, 2024 and "squawk box" starts right now. good morning, everybody. welcome to "squawk box" here on cnbc. we are live from the nasdaq market site in times square. i'm becky quick along with joe kernen and andrew ross sorkin. let's take a look at how things are shaping up today. right now, you will see weakness with the dow and s&p. dow indicated off 140 points. s&p futures off 8. the nasdaq indicated up barely a few points. yesterday, fed chair jay powell said the recent 50-basis point rate cut shouldn't be interpreted as a sign that future moves will be as aggr aggressive. at a speech in nashville, powell

said there would be two more rate cuts it year, but smaller quarter point cuts. stocks fell as powell spoke, but they did rebound into the close. if the economy is weaker than anticipated, they can move more quickly. if things are better than anticipated, things will move slowly. the third quarter is now in the books and the dow actually finished higher by more than 8% for the quarter. the s&p 500 was up 5.5% and the nasdaq up 2.6%. incredibly strong quarter once again and we're on track for four straight quarters in a row or growth in a row when it comes to the markets. if you are checking out treasury yields, ten-year at 3.75. markets in mainland china have been on a tear, but now closed for golden week. let's talk about the strike because it is the big news of

the day and week and how long it goes for the month. union workers at 36 ports from maine to texas began walking picket lines this morning. the lines began after midnight after the talks with the ila and the united states maritime alliance failed to make a contract. thejected yesterday which included a wage hike of 50% over six years. dock workers are pushing for 70% with protections against automation. we will have more on the story throughout the morning and every day on the strike, it will take a week, apparently, to get the supply back online. the sort of knock-on effects are quite remarkable. something like $5 billion a day. >> right. it's something that is a bit of a -- as we have five weeks left into the election, people will

watch this closely. the vice presidential debate. it could bring back people's memory of the shortages we faced during the pandemic. >> you talk about inflation and you talk about it, we export, too, from those ports. there's deflation because we are not going to export pork and beef. >> it seems it may take time. >> you don't want beef -- oh, yeah, it's been around for a month sitting at the port. there could be, you know both effects. israel has targeted grouped operations in lebanon to push hezbollah away from the border. israeli defense force started targets in the southern part of lebanon. israel notified the u.s. it would be limited in scale and

cop scope of the operation. and let's get to hurricane helene. the death toll topped 100 people and north carolina is warning it will probably rise as officials are asking travelers not to come into the region and keep the roads clear for emergency vehicles. more than 50 teams are searching the region for stranded people, but that has been complicated by destroyedroads and bridges everywhere. president biden will take an air tour of asheville. the pictures are devastating coming out of here and hearing reports of bodies found in cars and trees. horrific, horrific damage that's been done. >> when we drive down to georgia, you know, we go through north carolina. i go, i don't think we go anywhere near asheville. it's in the middle of the country. it's so strange. this is a water flooding event.

although, all of the things i'm getting from georgia, where i have property, was a wind event. >> this is a storm with rain and water and storm surge. >> this is the water that happened, i guess, low lying areas. >> the area had been very dry before that, too. it was dry land it was landing on. massive amounts of rain with hurricane helene. >> so far west. i didn't realize north carolina went that far west. unfortunately, i don't know what happened in high school and grade school. my geography's not great. oh, my god. look where north carolina heads so far west. news out from stellantis. the company is extending the uss suspension of production of the fiat 500 due to poor demand.

it would suspend production of the ev until october 11th. and verizon reported problems yesterday. chicago and indianapolis were hardest hit. some users were stuck in sos mode. that appears in the status bar when the device is not exconnecd to the cell towers, but still can make a 911 call. >> people said if they had the iphone 8, they were able. >> anyone want to bet their life on cerebras? cerebras. then there is cerebrus. this is a nightmare for anyone who mixes up the letters.

a.i. chip startup, you want to call it cerebras? >> cerebras. >> unless it's cerebras. cerebras systems is filing for initial public offering. it compete was nvidia chips that run a.i. models. it offers cloud based services. cerebras was founded in 2016 by andrew feldman. who sold c micro to amd for $355 million in 2012. the company plans to list on the nasdaq under the ticker symbol cbrs. and cvs is looking at options for the company and a possible breakup. sources tell cnbc that the board retained advisors to facilitate that review which has been ongoing for weeks. in recent years, it is acquiring

caremarks and other clinics as well. yesterday, glen view capital met to talk about improving operations. that fund owns 1% of cvs shares. it is coming at a time when pharmacy benefits managers are facing tension from washington. and pete rose has died. baseball's career hits leader. he was band from the sport from gambling. for years, he denied he bet on baseball, but admitted in 2004 that he did. he said at the time, never against his own team. nickname charlie hustle. he was known for the gritty play. he spent time in prison from july of 1990 to january of 1991 after pleading guilty of tax evasion. rose grew up on the west side of

town in cincinnati where i grew up. he was admitted to the cincinnati hall of fame in 1983. he was home last night. my son yelled out pete rose has died. >> did you hear up? >> it was a real gut punch. he was a complex man and very difficult man, too, sometimes. some of the other things in his life that probably weren't very admirable. 4,250 hits. when a guy gets 200 hits in a year, it's a big deal. that's a career of 20 years of getting 200 to beat ty cobb to get to that point. he always said he ran out every pop fly and i realize why it hit me because he's been -- i had his rookie baseball card in 1963 or 1964. i was at the all-star game where

he ran into ray fosse. in the all-star game, he was running so hard, he ruined a guy's career. buddy harrellson and the mets made the post season yesterday. this is the same day. pete rose appeared the day before yesterday in nashville with davy concepcion and george foster. he was getting a picture taken. i used to see him around the west side of town. very weird for me to hear it. i know, not that i was going to tear up, but a huge part of every stage of my life. i was in college in '75 and '76. if you needed a hit, pete rose would deliver a hit. i saw people, phillies people,

trying to take credit for pete rose. that irritated me on twitter. all of these uniforms. we never got over that. >> lots of places want to claim credit for him. >> especially after everything. >> i wanted to call johnny. >> johnny bench? >> johnny was aware of some of the stuff. >> imagine the gut check. >> we shouldn't do a phone thing. it's just -- it happens to everyone eventually. how many of these guys? they're all going to be in their 80s. if you're in your 80s, unless you're jimmy carter, god bless him. he's 100, i think, today. still trying -- and, you know, my son and my wife. >> what did you talk to johnny bench about? >> i didn't talk to him.

i thought about calling him and if we should have him on. i don't know. it was weird my reaction. i was saddened. that's the only way to describe it. >> the passage of time. you're the first person i thought of when i heard the news. >> he was from the west side of town and went to western high school. he was not born with all this talent. he was just charlie hustle. i took a picture in cincinnati. there's a statue of him diving into the plate. i got next to that and tweeted that out. oh, well. r.i.p. rest in peace. when we come back, a lot more on "squawk." tonight could be the last major event of the presidential 2024 season. the vice presidential debate stage is set. it's up next. we'll talk to house majority

whip tom emmer how he is helping jd vance prepare. we will also talk to mike novogratz from galaxy. as "squawk box" rolls on. >> announcer: "squawk box" is sponsored by vaneck. tax smart investing today, helps to build a stronger tomorrow. at pgim custom harvest, our unique direct indexing approach seeks to help investors achieve better after-tax outcomes. pgim investments. shaping tomorrow, today

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yesterday. we are watching shares of boeing. now you can see down 148. another 2.5%. bloomberg is reporting that the company is considering raising at least $10 billion by selling new stock. boeing is working with advisors to explore its optioning. cnbc has reached out to boeing for comment. it would have been nice. it was 200 not too long ago in the recent past. it may have been time to raise equity. this is like buy high, sell low. in the meantime, our next guest is helping vice president candidate jd vance prepare for the debate by assuming his opponent governor tim walz. to tell us what to expect about the debate tonight is tom emmer. jd vance said he didn't need much prep. >> i would agree with that. >> are youdoing this over zoom? he said he was in cincinnati at

home? >> no, we did not do it over zoom. >> okay. something going on with zoom yesterday. >> that's something with the vance team. no, what i did, my small part, we spent the last month going through every debate tim walz has done since he started running for congress. i had to learn his favorite phrases. i had to learn his mannerisms and literally, my job was to show jd -- >> did you watch "saturday night live" this weekend? >> i'm stealing the line jazz hands. >> do your best impression. >> i don't. my job was to make sure i show jd what he is going to do. tim will rely on the folks character. he will not get into substance. he will turn back with the folksy -- jd, i'm confident jd

will wipe the floor with him. he will go back to the economy, the border, crime. >> you don't -- would you be surprised if he is very substantive? >> who? walz? >> yeah. >> andrew, he's going to sound substantive. the idea they're going to fact check each other is wrong because nobody is going to fact check tim walz and they should. >> you say nobody will -- do you think jd vance will fact check him? is that part of the strategy? >> i think jd vance will c concentrate on the issues americans care about most rather than get into some high school debate, i think he will be talking to the american people about what donald trump did in his first term with the economy and the border and safety and security around the world and what harris and biden broken in the last four years and how he and trump will fix it. >> it always seems during the

debate, there are three points that everybody goes back to that you revert to no matter what the question really is. what are the three things? are those the three issues he is supposed to revert to? >> i'm not going to put words in jd's mouth. jd -- out east, we call him a wicked smart guy. the border is secure under donald trump, not kamala harris. >> how involved was former president trump with the debate pr prep plans? >> it wasn't my job. trump picked jd because he knows he is really good with this stuff. >> when your name first came up for speaker and you saw pictures

of you. they're both evonkular, it stopped once i saw him the very first time he walked out. a meme with chris farley. it ended there. you don't remind me of each other at all anymore. >> that's very reassuring. you need to understand tim walz is very likeable. when you initially meet him, he's outgoing. he plays the folksy, friendly outdoors man guy next door. as people get to know him and his policies, they do not like him. he is not popular in minnesota. >> congress member, if you talk about favor ability, jd vance is coming in with the worst polling numbers. if he is very prosecutorial and lawyerly, as you are suggesting,

does that win for him and whether people will vote for him? >> i think the polling you are talking about is people have not been introduced to tim walz. just recently been installed. >> these are jd vance's numbers. >> hear me out. nobody had tim walz on their bingo card and he shows up. loo look at this guy. he has all this energy and he doesn't talk about the issues. >> how much did you discuss trying to appeal to suburban women and how do you do that if you will at all? >> my job is to show him what governor walz -- >> that is a major issue for jd vance. suburban women in america. huge issue. look at the polls. >> just like men are a real

issue for ckamala. 60/30. >> these voters you are talking about will vote on their pocketbook and safety and security. it was good for them under the trump administration. it has been awful under the harris-biden administration. i think the theme you will hear is donald trump fixed it once. you broke it. donald trump and jd vance will fix it again >> andrew, honestly, if it were to turn out that kamala harris loses and i have no idea the probability -- i think the postmortem goes back to shapiro. if this was shapiro and vance tonight, it would be a different ball game. >> is it the same story for donald trump if he loses? >> i don't know. he's grown into it.

maybe still the abortion thing with certain women. >> the polling aggregate he shows vance down 11 points. they do admit fewer voters know and made up their mind about walz. >> if you lose michigan -- if you don't win michigan and you lose, that's where you go back and the democrats do not like to lose, that will be the postmortem is picking shapiro. what do i know? nothing. >> whip emmer, thank you. >> that would be a cool name. >> it is, right? >> whip emmer. >> have fun tonight. get your popcorn. >> what time does it start? >> 9:00. >> dag. >> too late for joe. we'll get you -- >> do you want me to be

conscious tomorrow? >> eh. >> it's, it's late. i'll stay up and watch some of it. i hope it make it through the whole thing. congress member, thank you. >> thank you. when we come back, softbank is preparing for a large investment in openai. we'll take you through diet af details after the break. and as we go to break, port workers on strike from maine to texas. what do you think? >> it's not good for american people. frankly, the president saying he would not get involved when he did get involved in the auto workers strike? this is not good. when people don't have groceries in grocery stores, this is the reason why and it's only going to exacerbate what they're feeling across the country. >> congress member emmer, thank you. "squawk box" will be right back. i'm proud i have the seat at

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softbank plans to invest $700 million in openai as a fundraising round is closing this week according to the financial times that says softbank will invest in the second vision fund.

softbank is part of arm. coming up, chevron's deal to buy hess has cleared another major hurdle, but there's another now major obstacle that's remaining. we'll talk about that next. as we head to break, here's a look at yesterday's s&p 500 winners and losers. >> announcer: executive edge is sponsored by at&t business. next level moments need the next level network. more businesse . so, the question is - cyber attack. as cyber criminals expand their toolkit, we must expand as well. we need to rethink... next level moments, need the next level network. the only network with built in security controls. chip? at&t business. your shipping manager left to "find themself."

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good morning. welcome back to "squawk box." we are live from the nasdaq market site in times square. the futures this morning are mixed. dow futures are off 145. nasdaq is up, but only by 17 points. the ftc has banned john hess from the $53 billion merger.

encouraging action that supports suppsupport s higher prices. hess and chevron agreed not to appoint john hess to the board. ftc approval was the minor hurdle to the challenge. right of first refusal over hess' part with guyana. you can see chevron shares are down .60%. ex exxonmobil down .6%. coming up, we talk portfolio strategy for the new quarter and what's going on with the underpinnings of the market. the opti difficult represderivatives. amy wu silverman will join us.

reminder, you can get squawk pod anytime on your latest device. "squawk box" will be right back.

for insight on the options saying about equities volatility, let's bring in amy wu silverman at rbc capital markets. really, people should watch all the time. you were on about a month ago and at the time, you pointed out in previous rallies during the year, you didn't see hedging increase. >> right. >> a month ago, you said the vix was quiet after the spike. a month ago, you said you are starting to see quite a bit of hedging and now it's continuing. nothing's happened in the past month, though, to indicate that all that angst among traders was justified. you still think that something could happen. has the hedges?

>> i say that because the demand in hedging has picked up more with the secondary metrics and i appreciate people don't watch all the time, we do. not the vix, but the volatility of the vix. it makes your brain hurt a little bit. the idea that the tails in the market, the three standard deviation drawdown scenarios. we are seeing money put into these. we have earnings coming up. obviously, we have u.s. elections and the worry continues to rise. that, again, is a very different narrative from the first six months of the year. >> i think the last time you were on there were some straddles that were getting

expensive. is the hedging only on the down side or only on the down side? not hedging against a major melt up? >> on the s&p 500. now, that's not true for china we are seeing the upside hedge up for the etfs. beijing had the sdim letimulus out and the investors are feeling the momo and fomo there. the fxi. k-web and aam are all plays related to stimulus. we have seen historic call buying there, but almost none related to the s&p. the bet there is for limited upside. >> the october lows we hit in the past come after a weak september. it almost seems too late for an extended self -- do you think something like that is possible? a fast drawdown between now and

the ides of october. >> if you see the drawdown in october and the pick up is there. you go back 20 years and you see that. that's after a weak september. how does that play into it? i think things will drag out a little bit. obviously, in november, we see the market do okay. we have fairly large catalysts this time that we don't have every time. we only have it every four years. i think that shifts things a bit later and obviously earnings. usually, you get a tick up in earnings because you have the i'did e i ideyosyncratic flows. >> let's say the selloff is in november. i don't know which outcome would cause that. maybe a wave on either side. maybe depending on the

viewpoint, some people would think a harris presidency is bad. others think the chaotic environment of the trump administration could cause a selloff. so many reasons why you could see a weak november. >> when i talk to investors, a lot of what they say is they need this to be over. there are all these trump baskets and harris baskets and they have both playbooks ready. because the election is now much closer than it was when it was biden versus trump, no one has been able to deploy their play books. that's one reason you see the volatility leading in expensive. >> is part of it is if republicans own the senate and demes own the house, it almost doesn't matter -- i don't want to say it doesn't matter what happens, but from a market perspective, people will say, okay, gridlock. gridlock is good.

we're good for that. if you think that trump wins the presidency and trump helps the republicans take back the house and the senate, whole different game. >> yup. >> right. unlikely if harris wins the presidency that all of a sudden, the demes take the senate, too. there's sort of -- the outcomes are in an odd way very different, potentially. >> they're very different and i think a lot of times for investors, they fixate on the presidential win. the usualissue is what matters. let's say trump wins. a lot of rhetoric on nato has european investors concerned. one of the larger international plays is simply u.s. out performance versus oureuropean.

it is not the nitty gritty, but the broad are positioning. >> all right. it's possible nothing happens. there's so much liquidity and we're in an easing cycle. how much money markets are coming in here? we haven't spent -- >> larry fink said the economy is not going into a soft landing. he said it is not landing. it is growing 2% to 3%. if that's the case with easing cycle. >> i will tell you one of the most popular trades and really a substantial popular trade is continuing to sell volatility. that's with volatility on the upside and not that expensive to begin with. when you look at the growth and notion al value of the funds selling volatility collect further yield, tell us one thing. people don't think much will happen and also not that much upside left and that's why they're trying to yield scrape

options in the near future. >> i think you could take one of these amy wu silverman appearances to the wharton school. >> a case studstudy. >> i understand most of it. three standard deviations i did not really understand. >> i'm working on it, joe. >> the ph.d. program at wharton could analyze everything she says. coming up, salty snacks for joe keenrn. and mainland china markets are closed for golden week. we will talk china with kyle bass in the next half hour. "squawk box" coming right back. >> announcer: this cnbc program is sponsored by baird. visit bairddifference.com.

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pepsico is in talks to ak square tortilla chip siete foods according to wall street journal report that said the deal could be announced soon. pepsi had competition from other companies expressed in buying the company. what do we know? >> i don't know. >> they're supposed to be greai free. i don't know if i've had them. >> we just got them two weeks ago. >> if it's grain free, what is it? >> i didn't eat any of it. we ordered them. it's a trendy thing.

when you are looking for upscale. >> some of those things they try to pass off as chips. you know what they taste like. we're sitting on what they taste like. >> your bum? >> yeah. they taste like a-s-s. why do you ask? why do you ask? layoffs could be the step, the company cut jobs after it acquired the entertainment platform formerly owned by hasbro. when we come back, we will talk about the potential impact of the supply chain and the economy. that'sex nt.

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last night at midnight, 45,000 u.s. dock workers walked off the job launching a strike that shut down 36 ports threatening to disrupt the supply chain. allen murphy, the ceo and founder of see intelligence. we have heard a lot of different numbers. by your estimates, how much does this cost the nation a day? >> it's incredibly hard to estimate, and various economists puts it between 3 and $5 billion per day. what does it mean to higher

freight rates? it's a volatile game, but it will be costly, several billion every day. we don't know how long the strike will potentially last. >> what happens if this last the first week or two, what are the ramifications we can expect to see? >> it will be a challenge especially for importers and especially if you have refrigerated goods moving in refrigerated containers, and if you have bananas, they have to ripen over a period of time and if they go an extra week, they will start to spoil. it's a manageable crisis. if it lasts two weeks then it starts getting to be a big challenge. we will start to see vessels missing and that are now outside

of the u.s. ports and they won't make the journey back to asia and that will push up freight rates. two to three weeks, we will see cost of shipping globally, not just to the u.s. and east coast but globely start to push up. >> can they be rerouted to canada or the east coast? >> they will try and offload as much as they can, but there's simply not enough room in the canadian and caribbean ports to handle all the cargo, so there are few options outside of waiting outside the port. there will be a line of vessels as long as the strike lasts. >> if it lasts two to four months? >> there w-- if it last more thn

a month, it would push the u.s. into a recession. >> you said if it lasts more than a month. >> before the red sea crisis, which is an ability to sail vessels from asia to europe by the suez canal, and you have to go around africa, that basically that means you need a whole lot more vessels, and that means whatever slack we had in the system back in december, which was around 15%, completely got removed because of the red sea crisis. if the red sea crisis had not happened, then the strike now would have much less severe impact and the shipping lines would have plenty of exyes vessels to put in, and now they have no excess vessels and all

the slack has been taken out of the system. >> the idea was the shift was early, and could that lessen the impact or allow consumers to see the impact quite as quickly. how long before consumers do start to see it with empty shelves or higher prices they are paying? i ask because we have an election here five weeks away? >> yeah, it all varies depending on what kind of commodities we're talking about, and pairables move faster to the consumer. it's a rough guide. we are talking about two months, max, three months is usually the flow from when the cargo moves into port to when we see it out in shops. the impact is likely going to be half of the season, and inventories will already start to drawdown. the whole supply chain is

starting to lose. we could see prices go up in anticipation before we see the election. >> thank you. it's just before 7:00 a.m. on the east coast, officially 6:58, almost 6:59. you're watching "squawk box" here on cnbc. i am andrew ross sorkin along with joe kernen and becky quick. israeli defense forces saying troops began raids against terror targets in the southern part of lebanon. israel notified the u.s. the incursion would be limited in scope, scale and duration. of course, the pressure is coming from there as well. the fcc investigating the verizon network outage that happened across the country, and chicago and indianapolis were among the hardest hit, and if

you were trying to reach folks you might have got their voicemail or nothing. and then ford offering home chargers on the f-150 lightning and the transit bought between october 1st, and they will get a level 2 charger at home that normally cost $1,500 and then $2,000 for installation. >> didn't make me want to go out and say, time to buy -- >> well, you get the whole set up. >> yeah, worth $3,300. checking the futures, and i

was worried now. nasdaq is up. let's get to dom chu with a look at this morning's premarket movers. you gave a plug in to the electric car? >> i am a prime candidate, because i have a predictable commute and there's charging here and at the headquarters at cnbc, and i have just not gotten over the hump yet. >> you saw what happened in the wake of hurricane helene with a lot of the cars if you took on saltwater, you have to be really careful. >> becky, to your point, even in the winter out here, forget about catastrophic conditions, even with bad winters and snow out here sometimes you see the evs on the side of the road and what not. for me, my wife drives a toyota

fourrunner, and it seems to be comfortable for her in the weather and we will keep it that way for a while. anyway, analysts as citigroup, they are upgrading ab-inbev. that forecast in their mind is helping drive that bullish call and has it up 1.5%. now to the ev side, chinese maker nio is reporting that third quarter vehicle deliveries are up 12% on a year over year basis. and so chinese evs, a mixed story there. slowing demand possibly but nonetheless, the nio shares are up. and then walmart, the retailer continues to see gains across the board.

analysts are citing express delivery options for a big boost for walmart heading into the big holiday season. check out cnbc.com/pro for more. i will go back and research evs, but not pull the trigger just yet. >> let us know. and then cvs conduct a review, and they have hired bankers to facilitate all this which has been going on for weeks and the pharmacy chain expanded, and yesterday a hedge fund met to discuss ways to improve operations, and a couple bets have not all gone the right direction. you can look at that stock over

a period of time and it has been a challenged one given everything that is going on. news from automaker stellantis. the company is suspending the production of the fiat due to poor demand until october 11th. separately, stellantis is recalling $150,000 plug-in jeeps because of a fire risk. they are advising owners not to charge their vehicle and park it away from buildings until that issue is resolved. watching the shares of boeing, which are falling after bloomberg reported the company is considering raising at least $10 billion to an offering to be stock dilutive. boeing is working with advisers to explore what options it has

as a strike lingers and it has not spresponded to the request that we did ask, and it traded at a 52-week low, which is 151.24, and that sounds awful. it would be about $93 billion if it opens there. in 2022, almost two years ago exactly, on september 30th, 2022, it was trading at 121, so that would be a multi -- like a 24-month low, but it even got below that just in 2022. it has been rough. >> the question is what it means for the credit agencies, whether they downgrade as a result. >> 439, and has been as high as

450 before it started falling apart back in 2019. unbelievable. when we come back, china following stimulus measures. we will talk with kyle bass next about the move to china and what we are seeing with u.s./china relations. "squawk box" will be right back. welcome to ameriprise. i'm sam morrison. my brother max recommended you. so, my best friend sophie says you've been a huge help. at ameriprise financial, more than 9 out of 10 of our clients are likely to recommend us. our neighbors, the garcía's, love working with you. because the advice we give is personalized, -hey, john reese, jr. -how's your father doing? to help reach your goals with confidence. my sister's told me so much about you. that's why it's more than advice worth listening to. it's advice worth talking about. ameriprise financial.

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the chinese markets now take a breather for the golden week and will resume trading on october 8th. joining us is kyle bass, chief investment officer. you heard mr. tepper make the call and you have seen the stock move in china. you have been quite bearish on the country. i am curious what you make of everything that has happened over the last week and a half. >> great to be here, andrew. i think that temper is one of the best hedge fund investors in the history of our markets and he's a grade trader. at our firm you say you can't break your arm jumping out a basement window. chinese stocks have been up over the last 20 years, and if you invested in their shanghai index 15 years ago, you are still not making money even though stocks are up 25% in just a week, so

you have animal spirits arisen, and the biggest rallies are counter trend rallies and china's trend has been down for so many years, andrew. xi jinping has shown his hand, investing in communism never worked. >> is your argument it's a head fake or is it your argument you would short it from here? is your argument that maybe this goes on for another year or several months? what are you saying? >> as far as the policy stimulus is concerned, they talked about a $300 billion stimulus so far in a reportedly $20 trillion economy, so go into the golden week and national holiday, they got stocks up. think about this, andrew. 25% in one week. is that a good time to buy

something? i would argue that this is a trading rally. it has been a massive counter trend rally, but, you know, think about 2014 and think about many years before -- their stock market sits today where it was in 2016, 2009, 2006, and that's exactly where we sit today. if their gdp is up 500% and you are still sitting back where you were sitting in 2006, i don't know, maybe you should consider not investing in communism. do i think the rally can continue and stocks can go up more? the answer is yes, but i equate it to picking up dimes in front of bulldozers. >> therefore, you think the move has been made and it's over already? >> yeah, i guess my view on this is simple. the united states has increased our gdp about 75% in 15 years

and if you invest in the s&p, dividends are up almost 400%. you don't have to discount xi jinping or the communist party and don't have to worry about china going to war with taiwan and you don't have to worry about their partnership with the ayatollah or putin or kim jong-un, and if you just invest here where we live where we have the most innovation and the best companies in the world. all i am saying is as viewers of the show, think about the broader picture. again, could a communist government goose its market and make it go up? absolutely. if you are a trader, more power to you. if you invest in communism in the long run, you will lose every time. >> for some of the folks that do

watch the broad term may be thinking short-term, and that could be a week, a month or a year, and david tepper was sitting over here, and he said to buy everything? >> he's an amazing trader. he's somebody i respect wholly. again, he's a professional investor, too, andrew. if you have all of the wherewithal to know which ones to buy or trade an index, again, it's up 25% in a week. be careful. if the chinese government is through with the fiscal stimulus and realizes their economy is circling the drain and their youth unemployment crisis is exploding and their banks are insolvent because of the real estate market, and if they stimulate and stimulate in a major way, you could still make money being long and i still think it's a bad idea in the

long run. >> can i throw in some of the geopolitical news we are all grappling with, the relationship between china and iran and how you think that plays out and how that plays out in the larger picture in the rest of the world as it relates to china's economy? >> yeah, when you think about it it purely economically, it's almost irrelevant except for china imports call it 12 to 13 mil mil million barrels of oil every day, and china is still a big energy consumer. when you think about geopolitical tensions especially as it relates to iran and you have israel moving in on a selective ground move in lebanon and, again, against iranian proxies across the board, if this conflict expands into a broader regional conflict, which i think -- i don't want to say it's inevitable but it's highly

probable, the relationship between iran, china and russia is one we all must watch. these mad men, the ayatollah, putin, xi jinping, they are all acting together. this is something very worrisome for the world and it's worrisome for political analyst in the u.s. and intelligence community. this is not investing as usual. again, one of the reasons why i say we should stick with investing in america and what we have here. this conflict between israel and iran is likely to broaden going forward. >> kyle, i want to thank you for joining us this morning. thank you. >> thank you, too. >> appreciate it. up next, we will talk rising energy prices, consumer demand, wildfire threats and how ai is playing a role in the energy transition with the ceo of pg&e. plus, you are looking at a live shot.

let's take a look at that shot. there it is. that's a live shot at the port of new york and new jersey, and u.s. port workers from maine to new jersey hitting the picket lines just after midnight. "squawk box" will be right back.

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welcome back, everybody. gas and electric company, pg&e, is hosting its investor conference in new york today. joining us to talk more about the energy transition and consumer demand and much more ahead of that is patty poppe. >> nice to be with you. >> i think about what a tough job you have. you stepped into pg&e at a point when that company was in a lot of trouble and they filed for bankruptcy and california has been a difficult place to do business, and people looked at that and said no, thank you. and you are addressing the deal with safety issues and the fallout from firefighters and raising rates that allows you to pay for upgrades needed on this. what are you going to talk to the street today about? >> we are going to talk about what we call our power pyramid

and it's a foundation of safety. while physical and financial, a lot has changed in the business construct that people don't know yet about in terms of constructions with new extreme weather, and protecting our citizens. we have made dramatic changes, and moody's did an assessment and we reduced the amount of loss by 93% as a result of the changes, and that helps us to run the company and serve customers well and that gives us permission to decarbonize the economy. >> there's a lot of moving pieces here.

bareens over the summer showed changes. there's still a lot of risks associated with this. i was looking at some of the rate increases and consumers pushed back on some of those things. in california the regulators allowed that to continue and i guess they are onboard with what you are trying to do? >> nobody can argue with making it safe. we chose safety and we have to invest in infrastructure fit for purpose. look at what is happening on the east coast this week. it's devastating and tragic. as weather conditions get more extreme, we need infrastructure built for purpose and infrastructure people can count on in california, and it's undergrounding power lines. today the response to emergencies is expensive. trimming trees every single day of the year is expensive, and

building infrastructure fit for purpose is not as expensive. >> it takes a long time and it's pretty expensive, too. maybe not as expensive as cleanup. how quickly can you do it and how much does it cost to put the lines underground? >> we will do 1,200 miles, and our goal is to do 8% of the lines, and we doubled the miles we have done every year and accelerated the pace. we are making real progress on that and we will get good -- we will get better at it and we have gotten much better at it than expected. we implemented a leien operatin system. the fundamental lien capabilities to know problem, see problem, fix problems. the people at pg&e are stepping up to serving better at a lower cost and that's all happening right now. >> i was shocked at the wall

street journal a couple years ago laid out how old some of the equipment was, and there was some things over 100 years old, and that was something you have been tackling and going after. how much do you have left to go? >> we certainly have work to do. i think it's an interesting challenge nationwide. the idea that this grid has reached in many cases, 100 years old, and it's time to rebuild the grid. rebuilding the grid can be funded by load growth we have not seen in our lifetime, and so low growed from evs, and that can actually fund the rebuilding of the infrastructure because today we can fulfill the demand in a more technical way and minimize ai to optimize the grid in a way we have not done

before, andthis is the untold story specifically on pg&e in california. >> that's been the huge question, though, just the demand for ai power itself. how do you keep up with that? we have had plenty of people come in and say it's not going to be able to keep up with it two years from now? >> i have a different point of view. we call it good load or beneficial load. we did cal cue legs and shared with investors. we can add a gig awaut of new demand. new sales can fund that investment and that gets spread out for customers and customers win and their bills can go down 1% to 2% as a result of the new

datacenter load. you have to calculate it and do the right load in the right way. we can lower -- or raise what we call the belly of the duck. the duck curve in california, we can fill up the belly of the duck and utilize energy in the middle of the day and make sure we don't add to the peak, and lower unit cost of energy for this new load, so we can rebuild the grid funded by a new load. that's a winning formula. any other business sector would love it, and we are a little nervous because we have not seen new load in our lifetimes but it's the best thing that can happen to the grid. >> what about in terms of permitting? >> i think permitting can be a real challenge, and speed to power will require some reform and permitting and it will -- >> on a state level, local level? >> federal and state for sure,

and local permitting can be a real challenge. we will get good at that. we can plan for it now. we are getting better and better at being able to see that load to fulfill it faster. >> you mentioned what we have seen in the eastern and middle of the united states after hurricane helene, and what can be done there from somebody that looks at the infrastructure, what needs to be done? >> i do think we need to look at having climate adapting infrastructure. what are the standards? the standards of yesterday don't contemplate the wind speeds and moisture levels and the rain that we saw in this storm. we have to do more than just respond well, which my hat is off to all the men and women who have come to serve and serve the people. this sector works together in times like this and i am so thankful they are safely restoring people as quickly as possible, but we have to build

infrastructure that can withstand the weather conditions and they are becoming predictable and we have to leverage load growth as a means to fund. we are going to replace this infrastructure anyhow because of the aging, and let's replace it that has adapted to the weather. >> thank you. coming up, as many as 150,000 union long shore phupb going on strike. we will talk about that later. then we will talk about the future of health care. "squawk box" is coming right back. discovering innovation today, helps drive growth tomorrow. as a leading global asset manager, pgim has established a track record of helping investors capitalize on growth opportunities.

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barkley notes the iphone 16 numbers have been cut by a key taiwanese supplier, and some saying apple may have cut roughly 3 million units of the key semiconductor component for

iphones for december, which if confirmed, could be an issue of build cut and that is a question of what that will do to apple business. that stock is off 1% on the back of the news. pete rose has died. he denied he bet on baseball but admitted it in 2004 that he did. never against his own team. his nickname was charlie hustle. head first slides and known for his gritty play, and he did face legal troubles and spent time in prison after he pleaded guilty to tax evasion, and a native of cincinnati. 83 years old. a friend of mine, the reds' owner, said our hearts are

deeply saddened by the news of pete's passing. he was a fierce competitor in every team he played for, and he was a red through and through. nobody loved the game more than pete and nobody loved pete more than reds country. he was found at his home in las vegas on monday and not tphrt car -- under the care of a doctor. he was in nashville at an autograph signing with george foreman -- george foster, not foreman, and members of the big red machine. he had been flying around and back at home and found dead in his home.

4200 -- that was ty cobb's record. coming up, the s&p closing at a record. we will talk markets, next. here's the futures ahead of the opening bell. we're coming right back. (marci) lovely. what about the app? (luke) uh-oh! look what i did. it's ringing. hello? hello? (marci) they can't hear you. (luke) hello? (marci) because you glued a frame over the microphone. (luke) i think i've glued the frame over the microphone. (vo) ding dong! homes-dot-com. we've done your home work.

welcome back to "squawk box." fed chair powell saying he's in no hurry to cut rates, and september started strongly. let's bring in the senior investment strategist at edward jones. we have one more quarter to go. >> yep. >> how is it going to end up? >> look, we have been up 20% year to date this far and we had a good first three quarters of the year. keep in mind we are heading into the seasonally choppy month and election day. we could get bouts of volatility. >> what would you do, take the cash and sell it and go on a holiday for the rest of the year? >> we do quite the opposite, actually. if we do see pullbacks or corrections, we lean into it.

one, history tells us if the fed is cutting rates and there's no recession on the horizon, that's a big backdrop for markets broadly. two, when the fed is cutting rates valuations tend to expand so we could see some of the lagging parts of the market that have not seen as much valuation expansion continue to move higher. three, of course, we know fed rate cuts helps consumers and corporations with borrowing costs and we think the un underpinnings are good. >> the elections, does it have any bearing on the out ccome on what the stock market does? >> we think from a technical perspective, we do see this story over and over. we do see the s&p 500 pull back from 5% to 10%. but a couple months after

election day we tend to see the recovery. >> do you buy into that if it happens? >> generally if history is on our side, yes, we think the trend is there. we think fundamentally congress remains pretty divided. it will be tougher and tougher for anybody in the presidential seat to push through major legislation and new regulation -- >> if there's divided government. >> yes, if there's divided government. >> you think it will be divided? >> it will be tight. that's the direction of travel there. >> in terms of what you would buy in the downturn,you would do what? >> we want to stick with the theme we saw play out in the third quarter, the broadening, cyclical parts of the market and some parts of the defensive and value that has to catch up. we would say the theme for the next 12 to 18 months is

diversification. >> what wouldn't you touch? >> what we would be wary of, if you are overweight cash or shorter term parts of the bond market, your rates will move lower in the next 12 to 18 months and you are not going to refinance the cds at the same price today, and that fund rate market is probably going away. north island chairman, glen tcnsonhe fed, deal making and the election. up next, from the port of new york and new jersey where u.s. port workers have gone on strike. "squawk box" will be right back.

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lines. what is happening? >> reporter: as many as 50,000 longshoremen went on strike, and according to many industries increasing prices and reducing availability of products go into the key holiday season. many have been here just since after midnight. early this morning the union released video about the fiery speech. >> we're going to keep this thing going every day in and out. we are going to be on the news. we are going to win this [ bleep ] thing. trust me. they can't survive too long and we are going to get what the [ bleep ] we deserve. believe me. god bless all of you here. >> reporter: the union is asking for higher pay and restrictions that on automation at the point and those are two of the key issues in the negotiations.

the two sides traded counteroffers over pay and added our offer would increase wages by nearly 50% and increased employer contributions when it comes to health care. they also added it would keep the same language when it came to port automation and also semi automation. this strike will cost the u.s. economy as much as $4 billion a day wit comes to estimates of jeffries and other big banks out there. according to jeffries, a one-day strike at the port would create congestion for a week and a t two-week strike would cost congestion into the holidays. president biden directed his team to relay the message to both sides, they need to be at the table and negotiating in good faith fairly and quickly.

the biden administration maintained they would not use the taft hartley act. spirits, agriculture, auto parts, apparel, all saying it would be a big disruption to the shopping season, and it would have a big impact with businesses and also to consumers. >> we're talking about $200 million of products a day that would get stopped at ports. that's -- you know, if that stays for a long period of time, it will be weeks before those goods can be cleared. in addition to shortages, you can see costs starting to go up and that's tough medicine at a time when we are trying to reduce prices. >> with the president of the american apparel, and it

includes fedex, expediters. back over to you. >> frank, this is really interesting trying to figure out what exactly they want. the list of things they already have been offered in the latest offer sounds rich, a 50% pay increase and restrictions on automation to come through. those were the two big sticking points you mentioned. what more do they want? you said they will triple the employer contributions into the requirement funds and strengthening health care options. have they said specifically? i heard a 70% raise they want but anything more specific they have given? >> reporter: i have heard that number as well, and i reached out to try and confirm that. sounds like pay is the issue here. and the biden administration statement specific they wanted them to negotiate keeping in mind some of the profits they

made over the years. the container shipping companies made big profits during the pandemic, and financial gain has not been passed on to the union members. and usmx saying they offered wage increases of nearly 50%, and i believe the union president is behind us and we will try and talk to him and get an idea of that issue. >> thank you. coming up, the ceo of the medical technology company, hologic, steve macmillion will join us. going to break, here's the list of the s&p 500 winners and losers. we're coming right back.

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healthcare, ceo of hologic, steve milne. steve is also the chairman of of alumna. i guess we can talk about the election. but you're here for a specific reason, which i think is worthwhile to talk about and that is breast cancer awareness. one out of eight women, totally curable if you get it early enough. but it's hard to do -- hard to get everyone to do what they need to do because of a lot of myths about mammograms, which you specialize in, right? mammography. >> it is very true. and breast cancer is imminently treatable when you catch it early. >> most common cancer, too. >> yeah, breast cancer, cervical cancer is very common, but also so treatable when you catch them early. and it is the magic of what we keep trying to do in terms of improving the imam imaging, alsr new ai detection is helping. i'll give you two great points on how i think ai can completely

take us to a different level. that is, one, our new ai detection is showing versus human radiologists, we are catching one additional cancer for every ten that are noticed and read by humans. so as we put this through, you think about it, it's image detection. we're catching one more cancer for every ten using our new ai detection. the other part, and becky, you can appreciate and every woman can appreciate, is we're now seeing a reduction in false positives. so when you think about the false -- not only are we catching more, but the false positives -- and you think about the work flow and the cost and the emotional toll of false positives -- >> and unnecessary procedures. >> the woman gets the callback, we want to see you come back in a couple of weeks from now, you're waiting all that time, and so often there's nothing there, but there's been angst, cost, taking more time off from

work, whatever it might be. so these are -- everybody is looking for use cases of ai. these are two profound use cases that i think can really help, you know, even reduce these numbers better and better for health care. >> how many women delayed during the pandemic didn't get the, you know, the mammograms that they needed? >> we have numbers, they're kind of all over the place, but as much as 40%, even a year after, it appears, still delayed. you know, what happens in life, the women are oftentimes prioritizing the rest of their family, and what's really been bad is, as, you know, through the pandemic, everybody lost sense of time. and what seems like having gone one year or two years is suddenly three or four. so part of what we're seeing now is picking up cancers that are a little bit more advanced, that would have been caught earlier, because suddenly a woman realizes, it's been four years

since their last mammogram. >> you just described me. that is -- this is a wake-up call. >> yeah, you're taking care of the kids, everything else, you've got these guys on set, you're balancing everything, right. but it is, and it's back to -- my own mother, breast cancer twice. both times caught early, and she is 85 and very healthy now. so if you catch it early, it's great. >> doesn't really hurt, the mammogram. a little bit uncomfortable -- >> speak for yourself. >> it's uncomfortable. it's uncomfortable. >> we're working on those, our scan times have gotten shorter and shorter. >> dense tissue, you cannot feel -- we have no idea if there's a density. you need to do it that way. >> yeah. >> right? >> yeah. >> some other myths, what are some of the other -- no family history. 85% have no family history. >> exactly. you're on top of this, joe. very impressive.

>> i almost said f&a. no, i am. because it's the greatest thing -- we may never -- it's so hard to cure cancer, because every cancer is different. a colonoscopy is a no-brainer. if you don't get a colonoscopy, you're out of your mind. >> and by the way, there's less discomfort with that -- maybe the pre-- >> it's the mental, it's the mental. >> i have my next one friday. >> it's the mental discomfort. >> it's the prep. it's interesting you talk about -- >> prep. >> the night before. >> yeah. >> you're almost taking off for a long time. >> you almost can lift above the toilet, almost like a rocket ship. >> let's get this back -- >> with dense breast, our hologic 3-d mammography is the only product approved in the united states for the dense breast and the ai detection of

that, because of part of reading the films with dense breast is already -- >> so it's already working for you. >> we've been bringing these innovations that we've been working on for years and years. >> this is all great news. and it's cost effective over the longer haul, for somebody along the way. i guess the question is, is it cost effective for the hospitals to put these machines in. i would imagine insurance gets, you know, the insurance companies are going to make out over this, if you are catching stuff faster, if you're doing it, the up-front costs has to be put in my be the hospital or somebody to put these things together. and that's not cheap or easy and sometimes hospitals have 1 to 2% profit margins. >> luckily in the grand scheme, mammography equipment is relatively a lower capital outlay that even frankly a lot of the i.t. systems, mri machines, ct scanners, all of those things that are so much more expensive. so the magic for us is, there's

a fairly good payback for the hospitals, and the usage is incredible, as you put in a mammogram machine, you can be booking them, you know full out, frankly, and having the woman coming into the hospitals are very good things -- >> and a more densely populated area where this is happening? >> maybe a bit, but the community hospitals. the best thing we can do, really, is gettingmore people to come to them. we've also been trying to help work with particularly communities to make sure that they're bringing their women in, particularly post-covid, where they may have gone the three or four years and not even realized it. and, you know, you can schedule these -- you can schedule a lot of mammograms in a day. so these machines can pay off fairly quickly. >> how quickly do you get the result? >> it is varying -- >> in this new ai role? >> you can get some immediate. if the radiologist is right there and reading -- >> the radiologist never likes to tell you what's going on.

can we fix that? because most times, the radiologist who does the work, actually knows what's going on, and they're not allowed to tell you. >> they're not a doctor. >> i always look at them like this. >> what can we do about this? >> i know, but -- >> to a large degree, a lot of them are being read almost simultaneous or within a day. you're getting results back much quicker. >> how about the ai reads? >> the ai reads can happen very quickly. in today's world, they still need to reflex and have from a regulatory standpoint, have a doctor actually oversee it, so you're not totally handed off to the machine. but most can be within a day or two. >> they don't know how to counsel you on what's going to happen and what happens. >> i want the ai to tell me -- i want to know the initial read, the second, the third -- i don't like waiting. >> i interpret a technician's expression after -- >> it's terrible. >> yeah. >> everyone's like -- >> he looked a little --

>> you looked at the thing. you know what it says. >> what's the radiologist going to tell you? yeah, there's a tumor. good luck. >> he seems fine and kind of start asking -- one of them said, if it's something really bad, they send you somewhere immediately. they don't just send you home with a lump. >> the other magic that ai is bringing, if you think about, there is a still a lot of -- i hate to say human error, but human interpretation of all of these things. and when you think about particularly our 3-d, which generates more images, it's generating about 60 images per mammogram, that's a lot of data to absorb. in the ai world, what's great is it can scan it very quickly and pick it out and send it to the radiologist and say, hey, go look at slide 36. and double check that, instead of looking at all 60. and when you think about just the fatigue, right? i always think about, it's automotive manufacturers, dwryou don't want to get the car that's made friday afternoon.

there's a little bit of that, and also the variation that here in new york, we've got -- you're at the top institutions. as you go out into rural america, as you go to community hospitals or everything else, you may not have a radiologist that is as advanced at reading these things. that to me, andparticularly as you go around the world, the ability to really automate the readings of these images becomes profoundly better at being able to get both faster results and better results. >> one last question, what should this stuff actually cost? >> what should it actually cost? well, a mammogram costs $100 to $200, is really what they end up being. when you think about the value -- >> i'm not sure that's true in new york city. >> but that's -- >> this is what i'm saying. i went to get an mri, and the guy wanted to charge $2,000 or something, and i was like, really? wow. that's something. but they're all trying to advertise these machines. >> yes. so -- but you -- they will

totally make up for the amortization of those machines well within that range. i think of it relative to the cost of prescription drugs, these are cheap, right? think about the cost of a prescription drug versus an annual mammogram, a couple hundred dollars. i'll take our -- i'll take the mammogram all day long. >> what about alumna and there's a lot of ai there, too? maybe next time. >> yes there is, sure. >> you can save all of us with all the hats you're wearing. >> a lot of opportunities. >> come back, steve. >> great to see you. >> we don't say striker anymore! >> it's been a long time. 12 years, believe it or not since i was there. used to bring you the bone saws. i know you always loved those. >> those bone saws. >> he's a wrestler in spider-man. he was a wrestler in spider-man. >> there you go, beyond my scope. >> steve, thanks a lot. >> thank you, great to see you. >> it is 8:00 a.m. on the east

coast, and you are watching "squawk box" right here on cnbc. i'm becky quick along with joe kernan and andrew ross sorkin. among it'd's top stories, tens of thousands of dock workers at east and gulf coast ports walking off the job early this morning. they are striking over wages and disagreements about automation at ports. we're told the last-ditch offer of a 50% wage increase for workers over six years was rejected yesterday. boeing is looking to raise at least $10 billion or looking into raising, i should say, at least $10 billion by selling new stock. that's according to a bloomberg report, which also says a sale probably wouldn't happen for at least a month, since boeing would want get an accounting of how much a current worker strike has impacted the company. and sources tell cnbc that cvs health has reached out to advertisers to conduct a strategic review of its business. cvs is facing potential actor investor pressure and a depressed stock price. reports yesterday said a breakup of the company is one possibility that's being

considered. braeaking news for you this morning, charles schwab announcing ceo wallet bettinger is going to retire at the end of december. the current president, rick wurster, will take the top job. bettinger, who turns 65 next year, will continue to serve as co-chairman of the board, alongside the company's founder, charles r. schwab. we'll speaking with both walt bettinger and rick wurster coming up at 8:30 a.m. eastern time in a first on "squawk" interview. this is a company who knows how to manage and how to find its successors and do succession planning here. walt bettinger placed a big bet back in july adding to his huge stake of shares in charles schwab. we'll get to talk to them about how they see things in the market, what thissuccession planning is all about, and that's coming up in 25 minutes. meantime, take a look at the futures right now. dow off about 1235 points. you're looking at the s&p 500

off about 5 points, the nasdaq up about 5 points. take a look at treasuries, as well. we'll show you the ten-year, sitting at about 3.74. the two-year note at 3.62. straight over to dom chu with a look at this morning's pre-mark movers. >> we'll start off with shares of ford motor. they're getting a little bit of muchlt, up by roughly 2.25%. goldman sachs is upgrading the automaker to a buy rating. cost cutting in ford's ev unit and revenue from the profitable ford pro can offset further headwinds. goldman sachs raising the target price. next up, you have shares of disney on the offer, on the other side of things, now up by about a quarter of a percent. raymond james is downgrading disney from a market perform, citing particular in the media division and slowing attendance and pricing power as demand

flattens post-pandemic. also, competition is increasing with universal parks wentic universe, and by the way, universal parks owned by cnbc parent company, comcast. so disney shares moving between fractional gains and losses. we'll end on pinterest, and those shares are rising, right now, just by about 3.5%. helped along by goldman sachs adding the social media company to its top picks list and removing amazon subsequently. analysts are saying strong sales and youser growth, especially among pinterest with amazon and google are going to help drive some of the upside there. for more on those stories and other top analyst calls of the day, head over to cnbc.com/pro. subscribers get more access to all of those calls. andrew, back over to you guys. >> dom, thank you for that. when we come back, north island chairman glenn hutchins will join us to talk market inflation, the fed, and so much more. don't go anywhere. "squawk box" returns after this.

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all right. welcome back, everybody.

we want to get right to our next guest. he's joining us right now to talk about the markets, the fed, much more, north island chairman glenn hutchins is with us this morning. glenn, it has been way too long since we have got to hear from you about what's happening with the economy and beyond right now. welcome, great to have you in. >> wonderful. thanks for having me. great to be back. >> joe started with congratulations in his roundabout way. >> exactly. >> thank you, joe. >> finally -- finally did it. >> celtics. >> for people who aren't watching, celtics, nba championship. >> have we not seen you since then? >> you have not. i took off the rest of my life. but three weeks from tonight, joe, we raise the banner and get our rings. >> oh. >> in boston, playing against the new york knicks. >> because i've seen you at all the games. >> i didn't miss a single one, that's for sure. >> on tv. >> the wonderful ladies in the green room here, i promised to bring the ring back to show it -- >> we named it the green room

for you. >> exactly, the green room -- good idea! we'll have to call it the emerald green room. but i'll come back with the ring in three weeks, so if you want me to come show you -- >> you've had the other one on -- >> i came here without it today, because i've got an empty spot. i'm waiting for the new one. >> anyway, glenn, congratulations on your celtics. >> thank you. it was a wonderful accomplishment. >> let's talk a little bit about the fed front and center. >> okay. >> because you are somebody, again, who has been on the board at the new york fed and has watched through to see what happens. we saw the rate cuts come in, 50 basis points. the market kind of thought, okay, maybe this is the beginning of another big thing. more rate cuts to come. j. powell basically said yesterday, the chairman of the fed, that we're going to see how the economy goes and we'll determine from there. what's your take on what the fed's next action might be, what the economy looks like right now? >> a good question, becky. so unusual for me, as i was

thinking about my prior appearances here, i think the markets have the fed's posture about rights. i don't think they're overtight or over short, they're a little bit on the down side for unemployment risk. one of the things i'm a little bit on the other side, i'm a little bit concerned right now is this strike that you've been reporting on. you know, at our center in brookings, bernn bernanke did a big study and found that the biggest contributor to inflation was the supply shock. you know, the covid-related inflation. if we get another supply shock, that could -- i'm worried that it might challenge supply chains. but i think, overall, the fed is in the right place, and the 50 basis point i interrupted as, putting in an insurance cushion underneath the economy, so that we don't run into this negative territory with unemployment. but i think the most important thing, and i think the markets have it right, the most important thing here is, it is entirely possible that j. powell and the fed pulled off a soft

landing. and that would be historic. and there were a lot of skeptics who said they couldn't do it. and i think if we actually get through this without a recession, that would be an historic achievement. and it's a testimony to the importance of an independent fed. really, really important. imagine if elected politicians had been in charge of interests over the last couple of years, and where inflation might be today. might look more like our budget deficit, rather than the place we've gotten to. so i think fed independence won, jay powell and his team's skillful management of this episode is like really impressive. >> how long do we have to go before we really declare mission accomplished on that front? >> i'm tempted to use the word transitory, but i guess that wouldn't be useful. >> yeah, if we get through -- if we get into 2025. --

>> you know -- then you're in business cycle territory as opposed to -- >> there is a narrative that while inflation was intransitory, it was supply chain related post pandemic. so you can give credit to the fed or a lot of people give credit to, believe it or not to the biden administration for how they handled it. i'm not sure who gets credit for inflation. >> i'm not sure that we need credit here. but my point is that there's a study that ben bernanke and a fellow by the name of olive ber chard, the economist of europe, the two of them got together and did this study at our center at brookings. and they considered very academic, highly geeky stuff. but they concluded that the pandemic was -- the inflation associated with the pandemic was largely the result of a supply shock. that was then followed by labor market adjustments, associated with it. and they found very little power from the stimulus spending that occurred, other than -- >> you didn't need the fed to tighten conditions. >> you did not need it, but it

happened anyway. >> but once you get inflation expectations in the economy -- >> you need the fed. >> for sure. you can't let that get out. it gets contagious. >> the strike that's taking place right now, how long would they say that it would take before that creates a similar supply shock? two weeks, six weeks? >> i don't know, becky. it's a good question. my sense is -- originally, just keep your eye on it. if it gets extended and it spreads -- it seems to me like it's contained as far as geographically and time, but something to keep your eye on. >> if you believe that the inflation we saw over the last four years was supply shock induced, as it relates to the pandemic, then how do you measure -- i mean, this goes back to the politics of this moment. how do you measure this economy? >> i'm not sure what you mean by that. >> how do you measure the success of this economy? do you say this is a spectacularly successful economy? >> you would say that the problem with wages keeping up wasn't the biden

administration's fault, that inflation has been up 20%. you would say that it was already going to happen. >> it was sort of -- this was kind of baked in. there was some modest contribution to the last stimulus thing. but i think -- >> you think that too many dollars chasing -- >> -- was an issue -- there's dm doubt that was an issue, but wasn't the predominant issue. it wasn't why the economy took off. i think the economy is in very good shape. j. powell said it. i ran into two "squawk box" regular guests, not going to say them who they are, just walking down the street, they said, tell them the economy is good. >> larry fink said it yesterday. >> we've had these debates where others say it's terrible. i don't think it's terrible, but -- >> people that can't buy groceries. >> the macro economic statistics are good. but underneath the covers there, there are some very serious issues with people you have to worry about, no doubt about that. the lower end of the marketplace is something where people are having -- also, this is why the

50 basis point reduction, right? because you've got signs of weakness. by the way, when the elephant stands in the way, the grass gets hurt. the people at the bottom of the socioeconomic spectrum are the ones that will be hurt first. those are the ones we should care the most about, because the others can take care of ourselves. >> you should never have a mission accomplished banner, because the next thing you turn around, you have a horrible labor report or something, and the effects of 500 basis points might be -- >> it's entirely possible, we get into next year and we're in recessionary conditions. >> how do you analyze this election, and the two candidates and their economic policies and how it deals with to the degree you think you care about people that are struggling at the bottom of this wage issue? >> and we understand, you're a longtime democrat -- >> i'm a longtime democrat, that's right, but i'm a moderate democrat. and, for instance, i was just talking to someone yesterday, i would like to have seen my friend mitt romney be president in 2016. i hear a lot of --

>> '16. >> i thought you meant '12. >> what about -- >> it was his turn -- >> what was wrong in '12. >> that would have been a much better time for him to be president. >> much better for him. barack obama was going to win that election. and people around here say very good things about nikki haley and i've got any choice on her. but now it's a binary choice between trump and harris. and obviously, i think for a whole host of issues, i prefer harris. on the economic side, there are a whole bunch of issues other than economics where i think i would prefer her around abortion, health care, immigration, climate change, those sort of issues. we can come back to those later. >> what about on the economy? >> on the economy, the first place to start is place that i just mentioned earlier, which is the independence of the fed. you know, she's very clearly supporting the independence of the fed, trump is not. i think that's a very big deal. on tariffs, i think that tariffs

are a very bad idea. they are aggressive tax -- they hurt the people, the grass that the elephants are dancing on. it's an aggressive tax on consumption. >> what do you think about the tariffs we currently have in place right now? >> i would like to find a way troll them back. i think tariffs should be used surgically and very infrequently. >> you haven't heard harris say she plans to roll them back? >> i'm just saying i would -- but she has not said she wants an increase in tariffs like trump does. >> would you get rid of the filibuster. >> i do policy, not politics. >> when the questions get tough -- >> no, i'm not licensed to talk about politics. >> do you think we should raise the corporate tax rate? >> you know, it's interesting, i came on this show when trump cut taxes and i had written an article and i also told you i opposed it, because -- >> you called it a sugar high. >> but i also said we were stimulating into an economy that doesn't need stimulus. >> would you say that if biden

did it? >> i said -- i just said, on the stimulus policy, it was probably too much. i just said it now on the show. >> a little bit. a little bit. >> but my gold standard, joe, for fiscal policy is the clinton administration, when we had a fiscal stance that balanced the budget, that saw good economic growth. >> newt gingrich is retired -- >> i know. >> and saw record markets. and so i would -- i think anything that's within the boundaries of that stance makes a lot of sense to me. and had considerably higher tax rates than we had today. and it worked. i'm not advocating into any individual tax levels, but i think that we should find way to -- >> we're running a $2 trillion deficit this year. >> just where i was going. so becky, you're looking at me. >> go ahead. they're running out, but i want you -- >> we're all looking at you.

>> i have a diet that works 100% of the time, which is eat less, exercise more. so i think we need to spend less and tax more. and that i think will be the issue of our era. as i look at the kind of tax policies and spending policies and the philosophy behind them that have been proposed by the trump and harris campaigns, i come down on the side of the harris campaigns. i think they emphasize fairness around taxes, not tilting towards wealthy individuals and corporations, but small business, middle class, and families. and she also makes some attempt to score, to pay for her spending. >> i can't wait to get 3% of your net worth every year. >> we can come pack to that. we can come back to that. that's the kind that one needs not worry about. we can come back to that, if you would like, joe, i have studied that issue. >> glenn, they're wrapping us. but i want to ask you about tonight, the award ceremony.

what do these awards honor? >> my dear friend, henry louis gates, otherwise known as skip gates, will be having an event tonight to present the web dubois medal to people who have made extraordinary contributions to african-american history, culture, and philanthropy. it's something we do every year, we had a little bit of a pandemic hiatus, we have lavar burton, from "star trek" to reading rainbow, a businessman you should know, who paid for the distribution of vaccines around africa during the pandemic. thelma goldman, one of the great curators in new york city. about to finish building brand-new studio museum under the leadership of my dear friend, ray maguire, and kathy delaney smith, who is the longtime harvard women's basketball coach whose nearly 700 wins makes her one of the

winningest basketball coaches, man or woman, in history. she'll be introduced by maura haley, the governor of massachusetts. please come, it will be live streamed on our youtube channel. maybe next year on cnbc. >> oh, excellent! by the way, would love to have you back to talk about the wealth taxes, too. >> only if i can bring the ring. >> bring the ring! and we'll talk -- >> i'll be back in three weeks. >> glenn hutchins. >> you got it. >> you got a deal. coming up, we're going to speak with senator john thune, e noty wp thmirihiabout the race to control congress' upper chamber. we'll see whether we'll get divided government or not. stay tuned, you're watching "squawk" and this is cnbc.

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powering possibilities. welcome back to "squawk box." breaking news on the east coast. frank holland joins us right now. frank? >> andrew, i got a chance to speak to the ila president just moments ago. he gave us the numbers that the pay increase the union is seeking. that number is approximately 65.1%. yesterday, the usm max, the port operators issued a statement say they offered the union a 50% pay increase in addition to additional contributions to health care and retirement, and maintaining the same language when it comes to automation and semi-automation. pay still continues to be the divide. the ila union saying 65.1%,

that's the pay increase they are seeking. the umx say they offered a nearly 50% pay increase. we'll continue to follow this story from here, from the port of new york, new jersey. back over to you. >> thank you, frank, appreciate it. our next guest is here to weigh in on the state of the race for the white house, and the senate. taxes, if there was another trump, or if there's a harris administration and more. joining is gop senator john thune of south. the minority whip. senator, it's good to see you. >> good morning, joe. we have people on quite a bit that are counting on gridlock. so i think that means that there is an assumption that the gop is at least going to control the senate, the house is up in the air, possibly even leaning democrat. is that how you see it right now? >> well, a lot of that depends on the top of the ticket. the house in particular correlates pretty closely to what -- how the presidential race performs.

but we feel really good about where we are in the senate. and i think the senate is the quintessential check and balance in our democracy. and represents an insurance policy for people who are looking at what might happen in the house or in the presidential race. if we win them all, obviously, we're in a position to do some things from a governing standpoint that we need to get done. >> if the democrats win them all, they're in a position -- >> they are, indeed. >> they're on the record and the filibuster is gone. >> and that's a big concern. that not only changes the essence of the senate, but changes the country. the democrats have made it very plain that they will get rid of the filibuster, and the list of horribles, of things that they will do if they did that, should be of concern to people all across the country. >> even joe manchin, i think, you would -- or did not endorse vice president harris because of those issues. >> so which races would you highlight in the senate, that republicans -- how about, for example, pennsylvania? >> well, pennsylvania is a great

example of just a very close, dead even race. we have a terrific candidate there that's run a great campaign. we feel optimistic about that one. obviously, again, we have -- we would need to see president trump perform well at the top of the ticket in order to help our do do down-ballot races and pennsylvania is a good example of that. but dave mccormack has run an outstanding campaign. you've got the states like west virginia, montana, ohio, where we have sort of a clear advantage, voter advantage, because trump will win those states pretty handedly. >> i think brown's in trouble? >> i think at some point, political gravity catches up with you. and we have a great candidate who now in the fall, in the weight of the advertising, is shifting back in his favor, all summer, our candidate was taking a lot of incoming fire. but now that that race is -- we're kind of at parodyon the airwaves, it's starting to tighten up and we think we have

a really good chance of winning there. >> i've always wondered about internal polling versus external polling. sometimes they're not even close. do you have internal polling on all of these races that -- how does that work? is it better? >> i think it's more accurate. >> obviously, your polling is consistent. you use the same pollster, the same methodology, same screen in terms of which voters you're trying to reach and acquire information. i would rely more on that research. i think the public polls vary depending on the pollster and how they approach it, what their methodology is. so you have to take that with a grain of salt. but if you're a candidate trying to make decisions about where to allocate resources, you trust your internal polling. and you're doing that, at this point in the campaign, you're polling every night. you have a three-day rolling average that gives you, i think, a clear sort of view into what the voters are thinking. >> you don't have a crystal ball

and i don't know, you know, these are going to be just your opinions, but we've got 35 days, whatever it is. what are the wild cards between now and then? what do you expect -- i mean, what is former president trump need to do, what does vice president need to do? tonight, there's a debate between the vice presidential candidates. what do you expect to see? is it important? >> i think it is. you know, obviously, a lotof people will be paying attention to it. and i think that what do we need to do is we've got to prosecute the issue set. the issue set is very favorable to us. because that's inflation, that's a broken open southern border, that's global instability. i think that the democrats have to own those issues. and certainly, tonight, tim walz, as his, you know, representing the biden/harris administration, will have to answer, i think, some very hard questions about that. the democrats, obviously, are going to want to shift and fpivt

to other issues that don't involve having to defend their record on 20% increase in groceries and 40% increase in energy, which i think is hitting the pocketbooks of a lot of americans. and that in most cases is the issue on which americans vote. so if the republican candidates and the vice presidential candidates on our side can prosecute that case over the course of the next 35 days, i think we have a good chance of winning. if the democrats can distract away from that, that's obviously going to be their plan. >> do you think that -- well, i think perhaps tonight, we see some pretty effective prosecution of that case, from senator vance. we'll see, i don't know, the moderators might be -- there might be a few abortion questions, i would think. from him and probably some cat lady questions. what is it? cbs? which -- >> i don't know. >> i think it's cbs. i think it's margaret brennan and -- it's margaret brennan and nora o'donnell.

so we will see. can't be worse. -- i mean, couldn't be worse than the last -- but can trump stick to the message? i guess that's where my question is -- can former president trump prosecute that case? i think j.d. vance will prosecute it very effectively. but president trump does seem to get bogged down in some retribution or things that happened in the past, the last election, i think he's got a case to make that sometimes it's hard to get through all of the other stuff. >> well, he has a case to make. j.d. vance will make it very well tonight, as you point out. whether or not the moderators, obviously, they'll try to hit him on issues where he'll be on defense. but he'll very effective. he's articulate, he's smart, he understands what's at stake in this election and how to talk about the issues in a way that resonates with voters. the president needs to do the same thing. and that requires a certain amount of discipline, because it's easy to, as they -- they throw shiny objects out there, the democrats, that is, to get off subject.

but if he stays focused, disciplined, and on message, i think this is going a -- it's going to be a clear choice for people. i've always maintained, elections are about differences. and the choices this time around couldn't be more clear, when it comes to the economy, when it comes to the border, to national security, voters will have a clear choice about the future they want, the direction they want to see the country heading. >> senator thune, thank you. >> thanks, joe. good to be with you. >> thank you. >> thanks. when we come back, crypto bull mike novogratz will join us on the markets. but next, charles schwab's ceo announcing he will retire tathe end of the year. he'll be joining us along with the firm's current president, who is sfeepg tepping into that job. "squawk box" will be right back. g . sweetie, grab your piggy bank, we're going all in. let me ask you. for your wedding, do you want a gazebo and a river? uh, i don't... what's a gazebo? something that your mother always wanted and never got. or...you could give these different investment options a shot.

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welcome back, everybody. charles schwab just announcing this morning that the ceo walt bettinger is going to be retiring from that role at the end of the year. that comes after 16 years leading schwab. the current president, rick wurster is going to be taking over. walt and rick both join us this morning right here on set. gentlemen, welcome. this is a big day for both of you.

walt, first of all, congratulations with what you have done with this company. i think it's worthy of sitting back and kind of taking note of this. you stepped into the company in 2008, in the midst of a financial crisis. not the best time to be stepping in, but what happened along the way. it's been phenomenal to see the rise of schwab over these last 16 years. >> well, with thanks, becky. thanks for the opportunity to be here. i often say that not many ceos have their company's stock price in their first 90 days. that is pretty much what i walked into in the financial crisis. but really extraordinary work by tens of thousands of schwabbies over these 16 years. great honor to see our client base grow from 7 million to over 40 million, and of course, clients entrusting us with now almost $10 trillion. it's been a wonderful time as ceo, and i'm incredibly excited now to turn it over to talented executive with great integrity

in rick wurster. >> rick, you have been the presumed next ceo for, i guess, the last several years, since you were named president. you have been through a number of different positions here. the company is coming into probably another transition, at least, that's the read from the outside. walt's made a number of changes since 2008. what you see the next transition for the company being? >> the transition -- i don't think there will be a transition in the sense that we'll continue what we've been doing, which is deliver our clients and delight them. as walt mentioned earlier, we've got over 40 million clients and $10 trillion of assets. and behind every one of those dollars is a client that means a lot to us. it's a farmer in iowa that's farmed for 40 years to try to retire. it's a grandmother that's saved to be able to take a visit to see their grandchild. and every one of those clients is dear to us, and we'll continue doing what we've done for the last 50 years, which is stand beside them, and deliver for them, and help them in their

financial life. >> i should run through that, w walt, under $10 trillion in assets under management, that comes from $1 trillion. 40 million clients, from 9 million clients. a huge build out in terms of building out the brokage, already the largest publicly traded brokerage, you're now the 12th largest bank. and you are somebody who was an entrepreneur before that happened. at 22, you started your own retirement firm, hampton company. and that is something that charles schwab really loved your entrepreneurial spirit. you're not even 65 yet. why are you retiring now? >> well, i think it's a combination of personal and professional issues. i had always targeted 2025 as a time to retire. i'll be turning 65. my wife and i's youngest daughter, our fifth child, just went off to college six weeks ago. we're empty nesters. that seems like a new chapter. from a professional side, we wrapped up the integration of

ameritrade early this past summer. and it was really important to me to be here through that integration, to see that through, from negotiating the deal, working it, to approval with regulators and through the very successful integration. and then maybe most importantly, again, bring it back to rick. having an executive like rick who's ready to step into this role, who's tested, who's proven, someone that i have incredible confidence in. and i just look forward to supporting him in my new role as executive chair and co-executive chair along with chuck. >> yeah, you're not going anywhere. >> i'm to the disappearing, but the role is changing. i go from day-to-day responsibilities and a lot of decision making to supporting a decision maker in rick. and that's exciting to me and i know it's exciting for our team here at schwab. >> rick, what has the fed lowering interest rates meant for the company? because the stock is down 6% over the year-to-date. it's up 20% over the last year. but there have been questions about how you make easy money at

this point. before, it was from being able to take the clients' assets that were there and bank on some of those things. how does the new rate regime change thinlgs for you? >> the biggest benefit of the rate change recently has sent markets up. that's good for our clients. we're in business to support them and help to get them where they want to be in their financial journey. as it relates to interest rates for our company, we've done well in low interest rate environments, and higher interest rate environments. what's key to us is make sure we serve the client and thrive doing so. >> wealth management is new to the company. you upended the brokerage business to going to no fee with a lot of these things. how do you make your money? >> wealth is a big business for us. we're seeing record flows into wealth. there is a bull market for advice. more and more clients we find want our help and guidance. they want someone to assist them, thinking through how they're going to get to where they want to be in our financial journey.

we think we're a great place freud that, and we also support 15,000 independent advisers who are also acting as a fiduciary and providing advice. whether it's an independent adviser or it's us, there's a bull market for advice in our country. >> how do you plan to grow that business from here? is it organically? is it through acquisitions? >> we've grown it organically and we'll continue to grow it organically. we have about 15 million retail clients that we serve, that turn to us for advice. and so there's a group of people that we will look to continue to serve and grow our business with them. >> the markets have been higher, volatility goes up. what does that mean for y'all? >> what's it mean for -- >> for y'all when volatility goes up with the brokage business and with our clients? >> we've seen a lot of trading activity. our trading activity has been roughly 6 million trades a day, which is a high level for a firm. and so our clients are engaged and it has been a bull market.

and so, for us, it's engagement. it's helping make sure we provide research and insights to our clients, so they're making the most informed investing decisions that they can make. >> i was looking at a pie chart of your business. what percentage are active traders, people who are actively on the platform constantly moving things around versus holding? just to the volatility question? >> it's a relatively small percentage of our client base that is actively trading. but they are some of our is some of more revenue-generating clients. >> the biggest revenue generators. >> just on a percentage basis? on a relative basis? >> on a relative basis, they are bigger revenue generators. they tend to bring more net new assets to the firm. higher revenue for each client asset. but as a percentage of our overall client base, they're still relatively small. >> i think one of the misnomers is that someone who's an active trader is exclusively an active trader. when in reality, our active traders are also this segment of our client base, who's most apt to sign up for wealth advice and

management from us. when we introduce quality additional products like american express card at schwab. our active traders are the ones who are most apt to sign up for that. so our active traders are just very engaged investors. they're not the kind of person you might think of, who's sitting behind a desk in front of 12 screens every day, and all they're doing is trading. they're really active and they're investors who are active in all of their behaviors. >> how much of your customer base playing like in crypto to a way -- i ask, because obviously, robinhood and some of the other platforms which maybe indicate tore a younger audience, become very crypto oriented. how do you guys see that? and maybe now they're playing 3 tfs. >> the first thing i would do is dispel the notion that we're not a place for young investors. 60% of our new-to-firm households have been clients under the angege of 40. our client base gets younger

every year. we are engaged with the young investors, and some of them do like crypto. and we have a number of ways they can participate in crypto at schwab. i think the interest in crypto, among our clients and more broadly among retail investors has declined a decent amount in the past couple of years. >> really? >> i think there's been some regulatory barriers to us offering direct kcrypto trading. but if those barriers loosen up a bit some time in the future, i think you should expect to see schwab innovate in that space. the spreads are extremely wide. it's not necessarily a great way for investors to get efficient buying and selling of crypto. so, if the door is open, i would expect us to be there. >> right. walt, rick, i want to thank both of you for being with us today. big news on the company and we appreciate your chjoining us. >> thanks for having us on. >> good golf support from you guys, too. that traces back to chuck, i think. some of it, anyway. >> chuck is a big golfer and a good golfer still at the age of

87. >> weren't you the golf captain on -- >> i was a golf captain of villanova, yes. >> he's got a pretty nice out there, too. >> in pebble? >> yeah, he does have a nice house. >> one of the nicest. >> are you a golfer? >> i'm a golfer. did you say "good"? no. you know, i get a lot of swings in when i play. you know, a lot of them. we'll talk markets, crypto, the election and much more with galaxy's mike dmnovogratz. stay tuned, you're watching "squawk box" on cnbc. thank goodness... ...i called my cardiologist. i have attr-cm, a rare but serious disease... ...and getting diagnosed early... ...made a difference. if you have any of these warning signs, don't wait, ask your cardiologist about attr-cm today. (♪♪) in the u.s. we see millions of cyber threats each year. that rate is increasing as more and more businesses move to the cloud. so, the question is -

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welcome back to "squawk box." bitcoin gaining 8.5% last month, doing better than the other stocks indexes. joining us, mike novogratz. the move has been made, the question is, was there more to the making, mike? i think that's what everybody is trying to understand given where the fed is and how interconnected you think these things really are. >> listen, the fed is going to keep moving rates lower. how fast, we'll see. i think chair powell was pretty

straightforward yesterday, the data is going to matter. i think he would like to move rates faster, lower faster, but he's not going to be a kamikaze. right now you're pricing at about 33 basis points for each of the next meetings. that's probably fair. and we'll see with payroll and a few other big data points. >> what do you think each basis point or even quarter point reduction means to the price of bitcoin if you think that they actually move in tandem? >> listen, i think almost more importantly than what the u.s. is doing is what china just did. we've got now the two biggest economies in the world cutting rates and pumping liquidity into the system. at the same time, we're going to have an election, and either candidate, we're going to have more regulatory clarity. i thought it was interesting what walt bettinger said, he said if we had regulatory clarity, schwab would probably be much bigger in crypto.

at least that's the way i heard him. i think there are scores of companies and large ones with the exact same idea. and i'm really confident that a year from now we will have regulatory clarity. >> under whomever is in charge? >> yes. i spent a lot of time speaking to people around the harris campaign. the one thing clear, this is going to be a first-term presidency, not a second biden term. that means different personnel, different policies. they're going to shift away from the elizabeth warren faction, which i think most democrats realized it was a fool's errand. why are you standing in the way of technology that's important? you think about the important technology that's coming, ai is certainly the most important. but block chain is right there, robotics. >> you've been publicly supporting democrats for a very long time, but there has been a real move, obviously, within the crypto space to support former president trump.

do you see that changing over this issue of crypto the way you now see it? >> listen, it's 33 days until the election and i think most people have made their choice up. and i think this is going to be who gets the vote. to me, i think it's a 50/50 call, who is going to win. and you're going to see it all in seven states, 42 counties, and about 100,000 votes. it's a crazy way to elect a president. i do think going forward both the house and the senate and whoever is in the executive side is going to be pro crypto. i've spent a lot of time with different congressmen and senators. i'm seeing one today on the republican side. and they all kind of get it now. this is an important technology for america. >> when you say pro crypto, what does that -- look, there's bitcoin and ether, then i'm looking at solana. what else are we talking about? >> it's relatively simple what

d.c. has to do. we have to pass a market infrastructure bill that's not too suffocating, right? tell us where we're regulated. one reason we don't have a lot of apps on top of these block chains is that companies are scared to build, real companies are scared to build apps on top of block chains because they're not sure if they're going to get arrested for issuing a token or not. so once there's clarity, you'll see a lot more innovation on block chains, so it's a market infrastructure bill, a stablecoin bill and a direction to the fcc to let companies hold crypto on their balance sheets. those three things, and i'll stop going to washington. >> what are you hearing as it relates to the etfs and how big the inroads have been? obviously there was a big move afoot when this first happened, but it's quieted down materially since then. i'm trying to understand what's happened. because i think part of the

expectation was that all these advisers were all of a sudden going to be out there marketing this stuff, and it was going to shift the balance. >> that's a slower price than i think the market anticipated. a lot of these big platforms are just starting, a month ago, starting this month, starting next month. so i think this will be an ongoing play over the years, not over the months. and i just think the more different ways you give access. the next big jolt to bitcoin is going to be when we have options that trade on the etfs, the s.e.c. said they're coming. i don't know if it's in three weeks or a month. >> what do you think that jolt is worth? >> if you look at microstrategy as the one place right now you can get leverage on bitcoin as a retail investor, it trades at more than 2.3 times the value of bitcoin it has. mostly because of the options. it is the single, often most

weeks the single largest options stock in the whole market. and that tells me something, that there's a whole bunch of young guys on robinhood that want to play crypto and do it with leverage. >> what do you think happens to microstrategy if the options become available? >> we'll see, we'll see. michael saylor has got almost an elon musk-like hold on a lot of people, they believe in him. it seems to be a stock that's very expensive relative to the bitcoin it owns. but fighting elon musk when he was hot was a hard thing to do, and i'm sure people think the same thing with saylor. >> mike, great to see you this morning. thank you. we'll talk to you soon. we're coming right back here on "squawk box" in just a moment. ♪ ♪

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and i'm sure people think the

let's get a final check on the markets. now the nasdaq has actually turned into red just barely, down about 5 points, first trading day of october. the dow down about 147 points. s&p down 7. take a quick look at the

treasurys. 374 now on the ten-year. got a big number on friday. we should know a lot more after the jobs report. we have a big -- i don't know, have we cared about vice president presidential debates in the past? >> it's interesting, especially if it is the last. >> we'll be watching the moderators, too. make sure you join us tomorrow. "squawk on the street" is next. ♪ good tuesday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer, david faber. we kick off the month of october after four straight quarters higher for the s&p, longest streak in three years. plenty of macro to watch today and an east coast port strike. the dow and s&p heading into october at record closing highs. >> with that in