nasdaq futures again trading sharply higher. we've got positive results from taiwan semiconductor helping drive chip stocks higher. that's been a very important sector of this big bull run. a new report says uber has explored a bid for expedia in its push to become a super app. details straight ahead. and vice president kamala harris sitting down with bret baier of fox news. it's thursday, october 17th, 2024 and "squawk box" begins 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.

this morning, we are looking at green arrows. these are moderate advances. the dow is up 24 points. s&p is up 22 points. then you have the nasdaq up 142. it comes after the dow closes at a new record. the s&p was up .50%. the nasdaq was up .75%. russell 2000, check this out, it closed at the highest level in nearly three years of november of 2021. the fed has started its process of lowering rates and the markets expectations ahead of that. the treasury market, you'll see, the ten-year is sitting above 4% still. we've been stuck here for a while. the two -year below at 3.95. crude oil and wti this morning

at $70.69. that happened as thoughts of israel may go after iranian refineries came back a bit. that is down 6.5%. stocks were down in china overnight as the government expecting to stabilize the economy there. at a briefing billed as a heavy punch combo, the finance minister announcing property to support developments. they said china would renovate 1 million homes in under developed areas. so far, the government has not put a number on the amount of stimulus it plans to inject in the economy. that's why you see stocks off 1% with the hang seng and shenzhen. >> do you remember at the end of yesterday's show? >> nothing happened. >> let's check the futures. there's no reason because the dow was up 2.

i never want to say it will end up 300 points. it could go down, too. that's what we're feeling like every day. is it the liquidity? is it what druckenmiller says? we'll talk about druckenmiller. >> in a minute. look, it's just -- >> liquidity. >> people waiting to buy the dip. the people saying the money coming in the treasuries is coming out. >> some people said yesterday, it may have been tom lee's firm that said there were, you know, certain assumptions. in the lower-inflation environment, it is better. you don't have to adjust them. it's a surprise maybe it's that good. maybe it makes sense. who did we have on yesterday who said? the most hated market that we've seen. meantime, this is a fascinating story. we are watching shares of

expedia after the financial times reporting that uber has explored a possible bid for the travel web site. uber approached advisers in recent months after the idea of acquiring expedia was approached by a third party. the focus was on the role of dara. he said any approach would be friendly because he would then recuse himself from the discussions. the report says the uber there was at a very early stage. no formal approach or discusses have been made with expedia. dara is a former protege of barry diller. synergy by people, not the actual business.

>> those two guys are pretty smart. >> if you want to make a super app, they don't seem -- what's the overlap exactly? you need to take an uber to the hotel? >> it is all travel related. >> once you're in the world -- >> i don't think of uber as mostly travel. >> i don't think of uber as uber eats and food delivery. >> go back to the super app. go back to the amazon of travel. if you can be the amazon of travel where you just go there because that's how you get your flight. >> you don't need to be the uber part to be the amazon of travel. >> no, no, no. think about the many millions of people who have the uber app already, much more than expedia app and use this thing every day in a meaningful way in your life in the same way you use amazon

every day in your life. if this is the place to go for travel -- by the way, airbnb is trying to create experiences and other types of travel-like moments. there is going to be a race in this world for all of that, eventually. >> to try to be the place. >> maybe you don't need them all to be together. >> interesting to watch the shares. expedia shares up 8%. uber down 3.13% on this consideration. >> it's interesting. interesting experiment at the minimum. where it goes anywhere, i have no idea. >> i think the initial knee jerk is what you said right away. maybe there's synergy between the people, but not necessarily between the businesses. you can strain. if you use the super app idea. everybody does have uber, i guess. everybody has google maps. >> so, to me, the argument against it is actually an a.i.

argument which is i actually long-term think all of these apps are inter mingled. you will talk to your phone in the future or some a.i. agent and the a.i. agent will do everything. some people would say, well -- >> for your travel? >> for everything. planning your trip. planning your amazon. in the future, if this all works the way it's supposed to, you will say i need toilet paper and it will not necessarily go get it -- it will get you the toilet paper you want at the best price from wherever. >> why did you come up with that? >> i thought it was a business i basic item. >> go with batteries. >> everything's great. >> i will say it is hard to shake. i don't like the a.i. results i'm served up when i have results. i want to dig into my research.

>> the idea over time is you will use this and it will usurp the apps itself. it will be challenged. you will pick from wherever. >> i think brands matter. >> some people think that and some people think the opposite. >> not for everybody. if you are a really great brand, you will stand out and consumers will look for you. otherwise, you will get co commodotized. >> brand for physical items. brand for service? maybe not. when you think about an uber, it's actually -- it could be a lyft driver or an uber driver. they are the same people. the idea it's a brand is a fallacy. >> that's where they made the mistake allowing people to be both. you are not a brand. you are a card in the window.

>> there are homes available on vrbo. the same homes are available on airbnb. the idea the brand is anything is an interface. a ui. >> for a service. >> therefore, the a.i. piece of it becomes significantly more important. >> i still like uber better. i don't know why. you're right. it makes no sense. i'm fooled into the brand with this. you're right. the same people. i shouldn't. vice president harris sat down with bret baier on fox news yesterday. how the interview went depends on your perspective. >> your campaign's slogan is a new way forward and it's time to turn the page. you've been vice president for three and a half years. what are you turning the page from? >> well, first of all, turning the page from the last decade in which we've been burdened with the kind of rhetoric coming from

donald trump that has been designed and implemented to divide our country and have americ americans literally point fingers at each other. >> the country's on the wrong track. they say the country's on the wrong track. if it's on the wrong track, that track follows three and a half years of you being vice president and president biden being president. that is what they're saying. 79% of them. why are they saying that? if you are turning the page, you have been in office for three and a half years. >> and donald trump has been running for office -- come on. >> madame vice president. >> the vice president addressed her view of the economy. >> why do you think more people say they trust him on the economy than they trust you? >> i think that when you look at an analysis of our plans for what we would do as president of the united states, it has been

clear to those who study and understand how economic policy works that moving forward, because i do believe the american people are ready to turn the page on the divisiveness and the type of rhetoric that has come out of donald trump. people are ready to chart forward. >> she said her presidency would not be a continuation of the biden presidency. >> i saw it. i thought it was a pretty good interview for her and a pretty good interview for him. >> i saw it with my own two eyes. that's how we introed it. you see different things. i'm not going to try to convince anyone of anything this anymore. we all saw the same thing. i play golf with bret. i know him. i texted him. this is what i said.

i said marian oo rivera was the only guy who got unanimous vote for hall on the first vote. maybe i'm so gratified she was on, they gave her good questions. >> they were good questions. i will say this, he did not allow her to answer the questions. >> she never was answering the substance of the question, though. just to divert to donald trump. why should he let her answer? answer the question. i thought right out of the gate, why did you get rid of the 90 executive orders? why did you open the border and let 13 million people in? why? we never will get an answer. everybody got to see whatever they wanted to see. finally, you know, cbs -- fox isn't going to go back and take out the bad part and not release

the transcript and stelize it. >> you have to give her credit for doing the interview. >> i agree. who knows what it's based on. at the end, supposedly, there were four people going stop! bret said that. >> for har snis. >> trying to wrap the interview? >> yeah. >> that's pretty frequent. >> that's often their handlers doing that, not them. >> exactly. >> we'll talk about more throughout the broadcast. in the meantime, i want to talk about this. billionaire investor stanley druckenmiller are saying markets are pricing in the trump victory. you can see it in the bank

stocks and crypto. bank stocks are higher across the board and including earnings that beat estimates. bitcoin, which might be a better arbitor of the elections. $66,200. on the crypto piece, you think that's the heartbeat of the campaign or election, i would argue in many ways, but the truth is both candidates are open to crypto. >> we have to go bitcoin when it was 59. suddenly it has been to 75 or whatever it was. >> druckenmiller also says he won't be voting for either trump or vice president harris himself. he called trump a blowhard and said the harris presidency would be bad for business. he said he would probably wrote-in someone when he goes to the polls. it is unlikely.

>> he also said he was still licks his wounds from selling nvidia. >> trying to do the cause and effect of the stock market. it is no better than reading the market watch after. as people took profits recently. if you are a biden supporter or biden-harris supporter, the market is up because of biden. lately, i sort of thought and agreed with that. i watched the betting. people, man do people on the left hate the betting markets. >> by the way, druckenmiller does not have a dog in this fight. >> he might not. he loves german shepards, too. that brings people together. a love of a certain breed. amazing. when we come back, jobless claims and retail sales data on the agenda.

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shares of taiwan semi are higher this morning after the company reported a 54% rise of profit in the third quarter. they expect current quarter revenue to rise from the prior

quarter or 35% year over year. what's driver growth? sm smartphone and a.i. related dem de demand. the ceo said on the company call that the demand is real and every innovator is working with tsmc. this morning, the stock support 8.3%. chip stocks are rising after the results. you see strong gains from arm holdings and assuper micro. we havehave matt powers with us. matt, we talked about why the market keeps going higher. why do you think that is? >> good morning, first of all. thanks for having me on. it's earnings season and the election is a phi few weeks awa. what we are seeing is volatility peaks before the election and

subsides afterwards regardless of the results. what we are telling our cliepnt focus on the earnings and less on the election and battle for congress. what we see is the s&p is priced at 21 times projected earnings for next year with the mag seven pe is 28. in comparison, the equal weighted s&p is 17 times next year earnings. investors need to explore long-term outside of the mega cap tech. look for them and hold them. it is standard practice. >> what do you see that you like outside of the mega caps? >> earning share price. there's not a lot to report on the economic side. all eyes are on earnings. main take aways is pressure to deliver results and the bar is high. it is nice we moved away from

some of the interest rate discussions and things appear to be good right now. two sectors that we like, financials and utilities. i think just yesterday, they touched all-time highs. all major banks came close to exceeding expectations. the banking systems will capitalize with balances somewhere around $3 trillion and they're ready to support economic expansion. when you've got the six largest financial institutions telling you they're in good shape and the economy is in good shape, the market response has been positive. >> we have seen that spread out to the russell 2000. it's at the highest level since november of 2021. within financials, i know you said you are watching morgan stanley recently. what did you think of the earnings yesterday? the street seemed to like it. >> a lot of people say it's rates, but not just rates, but

capital activity. wealth management has increased and asset management benefits from the rotation from fixed to equities. you have the financials are strong earnings growth and strong balance sheets and high div dividends. morgan stanley, you think about a company that diver diversified. you think about all three of those. w they have been on our radar for a while. you had the announcement on your show and ted pick was on the show. we thought it would be great to circle back to them. they knocked it out of the park and they validated the reason we like them in the first place. investment banking increased 6% year over year. new asset growth in the unit is up. reduction in rates again in the rotation to equities is certainly helped the asset management side. at the end of the day, we have a

dividend growth lean and that leads us to the companies. they have a yield roughly of 3.3%. explosive growth over ten years. >> let's talk utilities. what's the name you like there? >> nextera. i like to talking about them a little bit. investors look for reliable ener income alternatives with the environment. this is a story from powering a.i. data centers which has been talked about most of the year, but they're the world's largest generator of wind and solar. the power will relay on renewable energy. they're in a good position. it is interesting post hurricane, i think 3 million people lost power and one-third of that were -- nextera is the

company of florida power and light which is the largest regulated utility in florida. one-third of those customers were fp&l. they announce earnings next thursday. curious how that plays out. regardless, going back to the dividend side of things, growth rate over 10%. they have a 63% payout ratio which is good for the utilities sector. that's our pick in that area. >> matt, i appreciate you joining us. >> thank you, becky. coming up, we will talk about the job cuts from the valley to the farm. two corporate giants are trimming payrolls. we'll bring you the story next. and robinhood announcing new products. ceo vlad tenev will join us in the 8:00 hour. "squawk box" coming right back. e as a reliable real asset. so how do you invest in gold?

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welcome back to "squawk box." some news that is not so great this morning for employees. meta beginning layoffs across departments including whatsapp and other departments. some had their jobs cut by the company. the company spokesperson telling the outlet that few teams at meta were making changes to ensure resources are aligned with the long-term strategic goals and strategy. meantime, similarly, in a different area of industry, if you will, deere now laying off 300 people in iowa and illinois with the slowing demand for farm equipment. it is shifting production from

u.s. to mexico and stress they are due to reduced demand and weakening farm economy. deere slashed the outlook back in may. the expansion of crop supplies leaving farmers with less to spend on new equipment. apple's chief people officer is leaving the company after less than two years. this is bloomberg reporting this. it says employees were notified yesterday that carol surface, if you were wondering what this person's name was, is departing. the chief people officer title was created for surface and covered human resources and diversity and inclusion and recruiting. she previously held a similar role at medtronic, the healthcare company. implantable defibrillators. coming up, a new survey

results reveal that members of one particular generation are making out their credit cards in the past two years. details are next. as we head to break, here is a look at the s&p 500 winners and losers. >> announcer: executive edge is sponsored by at&t business. next level moments need the next level network. a speaker in it! that's right craig. pulling in the perfect team to get the job done. i'm just here for the internets. at&t, it's super-fast! you locked us out?! and when thrown a curveball... arrggghh! ahhhh! [crashing sounds] we had everything we needed. is the internet out? don't worry, we have at&t internet back-up. the next level network for small business. ♪♪ i sold a pillow!

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good morning. welcome back to "squawk box" here on the nasdaq market site in times square. the dow is off 17 points. nasdaq up 163 points. s&p up 22 appo2 points. i want to tell you shares of elements health is plunging $8.37 a share. it missed estimates. you are looking at the stock unchanged, but not the case. revenue of $44.72 billion was above the estimate of $44.7

billion. it is slashing estimates to $33 a share. that is down from the prior guidancef $33.07 a share. it is seeing challenges in the medicaid business. healthcare stocks across the board. you are looking at a lot of red. centene is down 6%. the only one moving higher is humana. the survey shows this morning that gen xers are more likely than any other group -- that's gen z. i got it. they are likely to be maxed out on the credit card in the past two years. it is not on low-income b borrowers. high-income are maxing out.

sharon epperson is with us. tell me about the z and where we fit in. >> the bank survey of 3,000 card holders that found 1 in 5 or 20% had spent up to the credit limit they had on a card at some point between march 2022 when the fed started raising interest rates and the second week of september this year before they began lowering rates. meanwhile, the percentage of gen xers who maxed out the cards in that time was far higher. 27%. that's more than millennials and baby boomers or gen z. across the board, they relied on it for basic expenses. being a care giver with half of parents with children under 18 maxed out credit cards or come close or 39% of parents have done the same. while the lowest earners are

most likely to hit their limit, more than a quarter of card holders with six-figure incomes have maxed out, too. this is showing up in missed or late payments. one-third of maxed out have gone delinquent in the past year compared to less than a quarter before the pandemic according to the new york fed. it is an issue to deal with the credit card balance, you can consolidate your debt and consult with a credit counselor to get a handle on your situation. for more advice to achieve investment goals, join us on october 24th for the cnbc your money event. scan the qr code on the screen or go to cnb cnbcevents.com/yourmoney. >> is a single boomer maxed out? >> yes. the gen xers --

>> what was that? i thought you were playing hip hop in your ear. >> so upset that people are maxing out. >> today, by maxing out, does that mean they can't pay down their debt? i max my card out, but pay it off every month? >> right. >> you can't build credit like that. >> that's what the delinquency trend. >> you have to leave a balance. >> i have multiple credit cards if i want. >> all maxed out? >> no. >> you're what this story's about. >> i pay it off. i never pay interest on any of this stuff. >> i maxed out a card or two. that's the key. making sure you pay it off. >> that's what i love to see the statistics on. >> that's what the delinquency is showing. the rise means many are missing

a payment or late on a payment. mostly on the credit card bill payment, but also on utilities and also on rent. people are hurting and they're using the credit card for basic expenses and not able to make the payment. >> i have a question for you and a trend on social media a lot. people who are adults who say my parents or gen xers, they have money and i don't, why don't they give to me? you are struggling, but living fairly well. people who have houses and multiple cars and struggling to pay stuff. maybe they overextended this stuff. i don't have this you have money, give to me. >> if the parents do that, they won't be able to have their savings to live through retirement. that's the key. that's why many people who are failing at retirement are doing so because they are supporting adult children and you sometimes have to, you know, say it.

it's the idea it's owed to me. >> you have money. i want it. i'm struggling. give it to me. it's a weird -- i've seen it a lot. >> a sense of entitlement. >> yeah. >> exactly. >> there was a story yesterday. there are a certain percentage of people that feel they don't feel they are make their next maintenance payment. not like becky paying everything off, but the minimum for the first time in a while, they're worried about being even that. >> exactly. that's why they're missing the payments and going into delinquency. as we are going into the holiday season where people are spending more. >> it's a bad time for that. pumpkins and then christmas. >> christmas, right. >> nobody's going to get the big reese's double candy. we used to do to that house

specifically. you get a tootsie roll and they put one in. i walked up here for that? or an apple. remember apples? i don't want an apple. >> you can't do that because of the razors. >> that is showing you how people are feeling tapped out. yes, we see the market up, but that doesn't feel anything to me. >> gdp, stock market, unemployment or employment. thanks, sharon. >> sure. >> great news. grim raeper. when we come back, which financial giant is using a.i. unveiling the annual rating next when "squawk box" comes back. >> announcer: currency check is sponsored by interactive brokers. the best informed investors choose interactive brokers.

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we clcome back to "squawk box." we have data out with the artificial intelligence inn de decks ranking the banks for a.i. topping the list is jpmorgan chase. joining us is the co-founder -- >> you did very well. >> close? >> beautiful. >> we're okay. >> a lot of practicing. >> help us here understand what these rankings really are and what they are ranking, if you will. >> yes, yes. is being released today. it's very exciting. it is a ranking of the 50 biggest banks in america and europe. we look at the a.i. and banking.

we look at talent and the talent stack of the bank and research patents and investment in partnerships and open source use cases or roi. >> some of this is the banks using a.i. or investing in a.i.? >> all about what they are using a.i. that transition to being a a.i. first or a.i. forward bank. we look how forward the banks are in the journey. >> we have jpmorgan at the top. >> yes. >> how much distance is there between the various banks on the list? is jpmorgan in a completely different league than everybody else? >> yes, yes, they are and leading more. what we've seen lsince last yea, jpmorgan is growing twofold over the rest of the index. what we're seeing is those that had a head start are doubling down and jpmorgan is in the lead there and far ahead of the other

banks. >> let's walk through the actual use cases. i think one of the things that happens is you speak to a lot of folks at the banks and most corporate america and they are not actually thrillingly happy with what the a.i. is giving them right now. meaning, the use case is not totally there because of hallucinations or leakage. there's lots of data you can't put into the systems. >> yes, absolutely. we're in the very early innings of a.i. adoption. we're just in chatgpt and then in the testing phase and now the banks are putting these in production. you are right. a lot of reliability issues and the use cases are being tested out. we are seeing the leading banks are putting a.i. in production with the human in the loop. we are looking at a.i., but we're not there yet. the leading banks are starting

to look at that, too. >> actually, let's talk genuinely about the actual context they are use it. the reason i why and i think we mentioned this yesterday, if you talk to marc benioff as salesforce, he will tell you most of the products that microsoft put together with openai and some of the other products out there, they are actually not really up to snuff yet. they just aren't. >> the question becomes is the market ahead of itself? >> right. and everybody is trying to -- there is a bit of 1999 can we put dot-com at the end of or name to think we're ahead of the game although it doesn't matter what's happening? part of me is asking this question because i want to understand the use cases that you actually think are real and are working. >> so, the use cases that are real and are working are examples would be for wealth management and financial an

analysts. the gen a.i. tool cuts the drudge work in pulling together information that means they cut out days of work. it's not going to replace, but augments and supports their work. we're looking at productivity gain of 10% to 30% with the banks that are using it so far. there are a lot of kinks and things that need to be ironed out and property producing the productivity gains up in the 60% to 70% area. so, those are use cases -- >> you are talking wealth management. give me an example. >> you are an analyst pulling together some information that you need to present to your client. >> yup. >> that information might have taken you three or four days or a week to pull together. >> here's my question. are they actually using a.i.? i don't believe it. do you believe that anybody is using a.i. against actual

financial information insofar as my financial information is inside some institution and they are taking my financial information and then actually doing something with it and actually using prompts to actually go get the information? not copy and wasp pasting from other screen? >> they are pulling information on their clients gl. >> do i believe they are making books and when they want to make a presentation to me? sure. >> yes. that is the lion's use. put the information together on you. it is cutting out the drudge work and cutting out that -- >> it is fancy power point. >> so far it is, absolutely. and it is not going to be let out without a human in the loop for a while. it is not going to pull together that information and send it to you, andrew, and you make a decision that is then going to be automatically executed. not yet.

but it's coming. it's on the horizon. but it is in the early days, early innings. >> we entered into a partnership a couple of years ago cnbc with companies that look at screens and it could be earnings per share, free cash flow, and then s&p 500 here's the 15 companies that manifest all ten of those qualities that you're looking for and they give it to you. and a.i. needs to take that and i guess what would it need to do, customize andrew ross sorkin's age and risk profile and put it all together? >> i'm saying most are not allowing you to query the data directly. >> but where is the a.i.? and just going to a screen like that, that generates certain names of companies? >> you pull in all of that -- you got much more power now to pull in lots more data points and generate some knowledge and content and that has been done by hand. >> and almost be in essence the index fund if you do all that. >> thank you. >> thank you for having me. >> just trail the s&p 500 fund

from vanguard. >> thank you. coming up, a massive doj settlement from a major defense contractor. weavth he e details after the break. and netflix set to report after today's closing bell. we will get you ready for those results. "squawk box" will be right back. >> still don't get it. the bootstrapper. the bootmaker. yeehaw [narrator] but many do have something in common. we all trust schwab with our wealth. [narrator] thanks to our award-winning service, low costs and transparent advice. every day, over a million multi-millionares trust schwab with more than two trillion dollars of their wealth. at betmgm, everyone gets a welcome offer. so whether you're courtside trying to hit the over... multi-millionares trust schwab or up here trying to hit the under. whew!

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rtx subsidiary ranytheon is going to settle probes into foreign bribery and fraud. raytheon is paying $124 million to settle sec charges it violated the foreign corrupt practices act. the company was accused of bribing a high level government official in qatar and failing to disclose those bribes in export licensing applications with the

state department. rtx said the settlements relate to probes previously disclosed by the company and takes responsibility for the misconduct that occurred. in addition to the monetary settlement, raytheon will retain an independent monitor for three years and enhance its internal compliance program. you see that stock $125.76, down by just 46 cents. coming up, netflix getting ready to roll out quarterly results. we'll get a preview of what investors can expect next. and uber has reportedly explored a possible takeover of expedia. both stocks on the move this morning. we'll have an update when "squawk box" returns.

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now on the east coast. you're watching "squawk box" on cnbc. i'm andrew ross sorkin with joe kernen and becky quick. among today's top stories, a lot going on, deere laying off 300 people in iowa and illinois amid what they're saying is slowing demand for farm equipment. company saying the cuts they're saying unrelated to plans to ship some of its production from the u.s. to mexico. hard to understand how they wouldn't be related to some degree, because farmers have less money to buy tractors and you want those prices to be lower, if you could. elon musk is reportedly tapped close to confidant to lead tesla's operations north america and europe. the move coming as shares of tesla have slum ped as you see. and walmart offering savings from now through christmas to allow customers to make holiday meals for less than $7 per person. the retailer bringing back its inflation free thanksgiving meal, one quick shopping list for people to buy their essentials. the list, which totals just over $53, is available on

walmart.com. okay. travelers just reporting its earnings and if they don't say so themselves, they are calling these excellent third quarter results. let's see, looks like the street, they came in with earnings of 5 it t $5.24 a shar that's better than $3.55 the street was expecting. a much better number. revenue came in at $11.32 billion, that misses estimates net preet yums and they delivered a core return on equity over the prior year. travelers management saying they remain very confident in their outlook for the business into 2025 and beyond. just looking through some of the numbers really quickly, though, they say the core income was up largely -- primarily because of higher underwriting -- underlying underwriting game, higher net favorable prior year reserve development and higher

net investment income. it was offset by higher catastrophe losses. if you look at that number, $940 million in the cat losses. they took helene into account and came out with much better numbers. early days on milton. that's a fourth quarter event. we'll continue to watch that. looks now like the stock is off by $1.50 a decline of .6%. a check on the futures overall this morning. right now, dow up by 37. s&p futures up by 25. nasdaq up by 175. dom chu is here, he's got the look at the morning's premarket movers. what are you seeing? >> so, another earnings ripple effect on the dow as well. we'll start with those earnings and one big one in particular here, taiwan semi is climbing this morning, shares up more than 8% right now. you see the company reported a 54% rise in net profits for the third quarter. the chipmaker also forecasted a 35% jump in its current quarter.

the strong results were boosted by continued demand for a.i. products. so taiwan semi reversing the slide we have seen over the course of the past week. now looking at some of the health insurance stocks. this morning, after. levance health cut, the insurer said it expects to pay out more in claims. they reported a miss on its third quarter earnings while revenue topped estimates. now, you can see with it down 13.5%, but molina, cvs health, centene, many names are down in sympathy. united health a fractional gain over there. we'll see if the health insurers can focus. and then we'll check on what is happening with shares of expedia and uber technologies down 4% for uber, expedia up around 7.5%

after the financial times did a report saying uber explored a possible bid for the travel book website. the report went on to say the ride share giant approached advisers in recent months and interest is still in the very early stages. uber's ceo served as expedia's ceo from 2005 to 2017. so interesting development there and possible m&a transaction moving those shares. back over to you guys. >> dom, thank you very much. netflix is set to report after the bell today. joining us now with what to expect, tom rogers, orbit gaming, former cable president and cnbc contributor. this company and how we judge it is kind of changing right before our eyes, i guess. and i think there will be a little bit of a slowdown in subs, but that's not going to be what we're supposed to look at

anymore starting next year, not even going to release that info. we're supposed to watch how the advertising model is progressing. how do you think it is going to play out tonight? >> well, i think you hit it right, joe. how we judge this company is very much changing. for a while we were looking against the legacy media company streamers, hulus, disney plus, max, peacocks. and clearly it has broken away from the pack on just about every metric with respect to those services. but the next big growth leg for netflix is presumably going to be advertising. and that puts it against some very different competitors that are miles ahead of it. amazon, not only has the amazon

prime streaming service, but is aggregating all the other services for the most part with the exception of netflix and other channels. and really providing a platform through which everything in the streaming world can be watched. and with youtube, you're talking about with google the number one advertising company in the world, with amazon, the number three advertising company in the world, miles ahead of netflix when it comes to data and targeting. and from that perspective, netflix is in a very nascent position with probably no more than 15 million subscribers in the u.s. that actually have their ad service compared to youtube, which probably has a couple billion eyeballs across all of its platforms of watching that service. >> a couple of billion eyeballs, one billion people, tom? >> joe, you've got me on that one, again, yes. >> i just mean, a couple billion eyeballs, i think it is a

billion people. >> when you look at football, and sports, and netflix moved into that space a little bit at least when you think about some of this holiday games and the like, how much of that is going to drive new subs, how much is that just strictly an advertising play. can they make the advertising component of that profitable just on its own. is it about preventing churn? when this experiment is looked at a year from now, is it going to be seen as a wild success and how would you measure it? a lot of questions in there. >> clearly it is part of an advertising strategy because sports and viewership live is premium advertising dollars and you can aggregate audiences for advertisers in a way that on demand programming doesn't serve the same advertising needs. and some of it, like the christmas day nfl stuff is very high profile and i'm sure when it comes to certain sports enthusiasts it will have

subscriber acquisition elements to it as well. when i look at in the sports realm, i think is really going to create another possible surge in subscribers for netflix is something disney is going to do, and in an odd way, disney may be handing more subscribers to netflix and that's when espn flagship, core espn service next year goes into a full streaming service, and you no longer need the cable bundle for purposes of accessing the last part of the sports world, which really hasn't gone to streaming yet, and i think that's going to have some real consequences on further cord cutting, probably taking an awful lot of the diehards of the cable package who have held on to it for sports and feeling as if they're freed from it. when that happens, netflix should be another -- should be the biggest beneficiary of all

that when those subs are thrown up in the air. >> this is -- i don't know if this is a turning point in what netflix does, tom, but how do they boost margins now? is it going to be from raising prices on the not ad supported service, or is it going to be being able to get more subscribers for, don't know, for the $6.99? can they raise prices there? what does it -- if you were them, how would you -- they don't make any money with advertisers now, they don't break it out and it is not that much. can they raise the price of the ad free service right now if they're not going to add as many subscribers? >> well, they do regularly raise the price. and price, of course, is a function of what kind of engagement you're getting. and that's where netflix wants us to focus what is their engagement. the first half of this year, the

engagement story is a little odd because over the course of the last 12 months, they added about 39 million subscribers, but their engagement was up 1%. that sounds like you're actually stepping back in terms of the amount of engagement per subscriber you're getting in actuality because it was password sharing crackdown. you had those -- that viewership already and then just monetized them by cracking down on password sharing. but to your point on margins, i think they not only will raise price on the nonadvertising tier as they always have, but in doing so, it drives more people to the ad tier. and the today is the cheapest ad anywhere all of streaming at $6.99 a month and they want to drive more viewership to the ad tier. that's the nascent part of the

business. >> better engagement too there, right, tom? they get longer or better or not many do that? they're just starting out. >> they have a long, long way to go there. they're in 12 countries, but they -- and in those 12 countries it looks like about 45% from what they last said of new subscribers are coming into the ad tier. but to really be a player there, they have a long way to go. last quarter both hulu and peacock, for instance, were driving more ad revenue to their streaming services than netflix was. so it gets a disproportionate amount of attention from investors relative to what they're really doing today. that's their next leg of growth, for sure. >> okay, tom. thank you. tom rogers, we know him well. >> we do. >> co-founder of cnbc? kind of, right? >> here before me. >> from the beginning. og. >> og.

coming up, meta announcing a new instagram campaign and safety features. we're going to speak to meta's global head of safety about it. that's next. honey... but the gains are pumping! the market's closed. futures don't sleep in the after hours, bro. dad, is mommy a “finance bro?” she switched careers to make money for your weddings. ooh! penny stocks are blowing up. 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. the right money moves aren't as aggressive as you think. i'm keeping the vest.

why choose a mobile network built for places you'll probably never be... ...instead of for where you are most of the time? xfinity mobile was designed for where you need it most. now xfinity internet customers can buy one line of unlimited and get one free for a year. welcome back, everybody. meta is announcing a new instagram campaign and safety features targeting teens to raise awareness about extortion scams. it is where you convince a teen to send you nude pictures and then threaten them that you're going to show their parents, other people that they know in

the community, if they don't pay you, if they don't do what you want from there. joining us now is antigany davis. it is pretty explicit. why don't you talk about the new moves that you're making today. >> yeah, so this builds on our existing protections for teens and our launch of teen accounts and our ongoing efforts to fight sextortion. but what we're doing now is announcing a first ever campaign within the app, in app campaign, educational video for teens that tells them what sextortion is, how to spot it, what to do if you're targeted. we're also coupling this with a suite of new features to protect and prevent them from being s sextorted. >> it is something you have to worry about with kids everywhere. i had the conversation with my teenager. because it is not just social media. if you have a phone, you got a camera on it, you can send pictures, people can send you

things, but with social media it adds a whole new layer of allowing strangers who may or may not be who they say they are into you to try to prey on some of these things. >> i'm glad to hear you've talked to your kid about it. i do think it is really important and part of this campaign is a whole effort with parent creators to give parents the information they need about what this is, as well as how to talk about it with their teens because one of the things that these predators do is that they -- the scammers, they prey on your shame and teens don't come forward. what i want teens to know is it is not your fault, these are adversarial criminals who try to target, who try to trick, they use a lot of sophisticated mechanisms to do that. if you're tricked, talk to your parents or a trusted adult or a friend, there is help. >> i will say, my son's not on social media, he's 13, and i don't want him out there in that mess. i've talked to him about this because you don't know where it is going to come if he doesn't

have a roblox account, but you never know where these things are going to come from one way or another, online game, you don't even realize people are coming in and these strangers are out there. i applaud what you all are doing. but i think it comes a little late. i do think this is something you guys have been out there for more than two decades, you're just now coming to the point where you are identifying nudity pictures that are being sent to teens, you know this is happening, you took off 1600 people i think last week who were a group of people, a gang, you thought were trying to do some of these sexting things to come in, why not more? why can't we do more? if i forget my password, i have to go in and identify all the pictures of a motorcycle or a streetlamp, you can find these things and do it, the technology exists. >> yeah, i've been at metaphor ten years and these have been ongoing efforts. i think what is important to understand here is that these are very adversarial actors and so we develop protections and they, of course, are going to try to get around those

protections. and we then develop additional protections. i do think that we are highly focused right now on financial sextortion because there has been a rise of it recently. after covid, we saw this crime, this crime change. but we are listening to parents. >> i just mean from the perspective of, you know this is an issue, you know teens might be receiving or sending sexual pictures, naked pictures, you can identify it with the stuff that you have, i've always kind of gone back to the real world equivalent of this, if we knew there was a chuck e. cheese and there was one predator who was hanging out in it, we would shut them down. you have 1600 you kicked off last week. they're probably going to try to get around your new protection and come back in. how do we deal with this more effectively? >> when we do know, we take them down. we do use technology to find -- because they do try to come back on. and we use technology to find, for example, the same phone is

then tries to come back on to the platform to block them, to block them again. we also have developed additional features, so, for example, to identify potential scammers. not even people who are actually doing this, but people who may be potentially doing it and preventing them, for example, from following you, blocking them from following you, even requesting to follow you. >> that's what i wanted to ask you about. this idea -- look, i imagine what is happening inside of meta is a whole question about trade-offs. we can either lock this whole thing down, or we can -- the trade-off is going to be that we're going to allow people to have afree flow of information, but if we have a free flow of information, there is going to be some stuff that is going to get through. the question is whether there are certain either people and/or age groups either self-identified or otherwise that should be locked down in advance. i mean, i think that is the

fundamental question. even with the trade-off being that they're going to be some users, and maybe even a large number of users, who are completely and utterly annoyed because they're going to get trapped or -- entrapped or trapped by the system that actually misidentifies them. so part of me wants to understand the sort of psychological, philosophical conversation that happens inside meta about, you know, whether i get trapped, hopefully i'm not a predator doing anything inappropriate, but somehow i get sort of put in some kind of net for a reason that makes no sense, i would almost prefer that you put people -- innocent people in a tougher place if you could avoid some of these horrific things from happening and i want to understand that conversation. >> yes, it is an interesting conversation and actually we do find ourselves erring on the side of caution in this area. so, with the launch of teen accounts, for example, we will

be putting anybody who is under the age of 18 into these accounts. they have built in protections, for those who are under 16 -- >> hold on, this is going to answer your question, give me one second. for those under the age of 16, they have to get their parents permission. as part of this work, we are going to be trying to identify teens who may be lying about their age, teens whose -- predicting what age they are. people are going to -- >> something they show you or -- >> people who we predict to be teens who may be adults are going to get trapped in that system. that is okay. we will then ask them to verify, to demonstrate that they're an adult and we can move them back into a account. the idea here is that we want to use technology to predict there are going to be errors and you'll see that. >> currently, do you to that? >> we're working on building that technology. it is complicated to build. >> i'm not saying it is not complicated to build. the question is do you feel like it is fair to say you're late in building it? meaning, this idea of

identifying kids online or people who are not identifying themselves as the appropriate age seems like something that you would have thought about a long time ago, this is not a new issue, it may be hard to resolve or not so easy, but when you see that one person is friends with 30 other people who all do identify as 15 years old, all of a sudden i actually don't think the model becomes that difficult. it becomes difficult on the edges, sure. >> well, so, it is actually more difficult than you would think. and no, i don't think we're behind. this is actually a challenge for all of industry, all of industry is facing this challenge. we do already use some of this technology. we are expanding this technology. the other thing that we are doing, because it is so difficult, is we're pushing for legislation that would require the app store or the operating system to give that information to apps like ours across the internet. the reason that matters -- >> the user themselves. >> the reason that matters is

because the app store has this information. they know it already. we don't have to go through trying to collect somebody's i.d., or ask them to provide, like, a facial selfie. so, this is -- >> and apple doesn't want to give you that information. they think you're going to use that information for advertising or in some other way. that's the issue. >> but there are very simple ways for them to give us information that would not necessarily be any more privacy intrusive. we only need the age, we don't necessarily need the birthday, for example. >> the age then allows you to turn around and tell said advertiser they're part of a different demographic. >> when i signed up for my facebook account, i told you how old i was. >> correct. >> so you should have that information. >> we have what you told us, but as a parent -- teens may lie. >> parents may not lie, but the

predators may lie. >> you're right. this is one of the reasons we want to do this also because -- >> do your own homework. you created these accounts and you unleashed them, you figure it out. >> but we deliver them through the app store and they indicate to us that they provide safety and security and that we -- all apps pay a fee to be in that app storch it is the way and it makes it much simpler for parents. parents are there, you would be able to say, i don't approve. you don't want your teen on social media. if you try to download that app, you would be in a position immediately to get a notification. right now you're not. >> teens are pretty tech savvy and find ways to get around these things, just like predators do. i do think -- i appreciate that you guys are looking at this and trying to work this, i appreciate you're coming on to talk about it, but one message i would send back is please have them push faster and harder to make sure they're protecting. >> as a mom, i am really trying to push it as are all of our people who work on safety.

>> thank you. >> thank you. >> we appreciate it. >> i think i'm with her on the apple piece, they don't do a good job on this. >> it is terrible. >> we're not done just yet. when we come back in a moment, tariffs good for the economy or not? we're going to break down what the former president donald trump's plan could mean for it all. we'll discuss it and debate it when "squawk box" returns. >> announcer: time now for today's aflac trivia question. what are the five new sports pending approval that are set to be included in the 2028 olympics? the answer when "squawk box" returns. how aflac pays people money for the expenses health insurance doesn't cover. aflac! health insurance does leave a gap. but aflac gives people money to help close that gap. aflac! oh! coach prime got one on the line too baby! uh huh! see that's how you hold up a trophy. trust me. get help with expenses health insurance doesn't cover. find an agent. get a quote at aflac.com. i hope you're hungry. i'm glad i brought my own dinner. uh huh.

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republican presidential candidate donald trump has said that if he's elected, he's ready to put significant tariffs on products to protect american jobs. and the key word is here, but are widespread tariffs good for the u.s. economy? jon fortt is here to weigh in. because i guess we have decided that targeted tariffs are good since both parties have them and they both -- both admin administrations left them on. you're talking specifically widespread tariffs? >> absolutely, joe. and, yes, by and large tariffs are good for us and let me break it down. if politics were a video game, and the president were a character, you could play, tariffs would be your most powerful economic move. a tariff is a tax a business has to pay to bring goods into a country. the usa is a reasonably big country with a huge consumer class by global standards. so almost every sizable company in the world needs to sell here. the argument against tariffs is

that they just tax the u.s. consumer. if you say i have to pay 100 bucks to bring my widget over from china, i'll charge $200 for it. it doesn't always work that way. what tariffs can also do is encourage companies to avoid the extra charge by making things here in the u.s. or they can level the playing field for u.s. manufacturers getting crushed by cheap imports. you can't just swallow these headlines that claim tariffs are just attacks on u.s. consumers. if tariffs always dramatically raise prices for consumers, why didn't that happen in 2018 and 2019? the truth is the u.s. has been so focused on making it easy to import goods from other countries that we have made it reflexive for other countries to tariff u.s. products while we let overseas goods flood in and tariffs can't stop that, joe. >> that was fantastic, john. thank you. that's jon fortt. >> there you go. >> yes. >> okay. isn't there -- >> there you go. >> you already said that. you gave a couple of negatives for tariffs in that part.

you have more? >> but he gave the negative and knocked it down. >> knocked it down. okay. >> it has been four years. you know how this works. >> i know how this works. there is a limit, i would think, to how far you can raise tariffs before something like that -- i mean, free market people, it is the t word, it is like a word you never want to hear for free market people. >> well, joe, on the other hand, more tariffs are a terrible idea. kind of like assuming one button mashing video game move will keep working when your opponent figures it out. trump's tariffs, many of when the biden administration continued, did lead to high prices. stimulus pushed them higher still. tariffs did something else. they opened up new markets for chinese goods, according to the federal reserve, european asian countries absorbed low costs good that would have come here and in some cases they sold them to us later.

and then there is unintended consequences. we know that high labor costs also incentivize more of the move toward automation. so a logical tariff scenario would be to move more manufacturing to the u.s. but with robots doing the work because tariffs could also increase prices and costs domestically. it is true the u.s. for too long allowed other countries to block our goods while sending theirs right in, to the extent that targeted tariffs can correct that behavior, that's great. but over time, they risk making other trade partners more reliant on china and more willing to tariff our products as their middle class grows. >> it is the start of a new -- the luddites up to this point have never been right. every time there is a technological advance, more jobs usually come from it, even when you think that the old jobs are going to be gone and not replaced.

>> right. >> at the macro level. >> i think we may hit something with automation, where, you know, servicing the building the automation, servicing the automation, all those things don't add up net net to how many jobs are lost. once again, we could be wrong again about whether automation is disruptive or additive. do you know? what do you think? >> i wish i knew. >> but the luddites have never -- >> long-term i think it is going to be great. that would make a difference in your second argument. >> it would. >> that's a good point that, yeah, we build stuff here, but if you're not -- if you're paying $80 an hour, instead of $10 an hour somewhere, you know, in the far east, then you bring in automation. >> yeah. well, here is something we can all be right about. >> yes. >> the on the other hand newsletter. you can get -- you can see both arguments and here is an easy way to get it.

qr code on the screen. use your phone. >> you just reminded me of the mypillow guy. i don't know how you got to -- but go ahead. >> i want to say thank you to that. which is wrong on so many levels, but you can -- there is a qr code you can type in cnbc.com/otoh. it is not like a pillow in any way. >> you took on tariffs. you went and did it. >> hey. >> two weeks ago -- >> "squawk box," this is the place. >> that is the place. it is funny. it does seem to be two sides to those things. >> come back next week, if you could, because i'm going to tease this. >> i hope i can. >> this is the story i want your opinion on. >> the one? >> it is a tease for next week. this is the tease for next week. uber and expedia -- >> i was listening to that

ear earlier. >> their shares have gone for a ride this morning, if you like that. >> i like that. >> take a flyer on that. >> a possible takeover deal after this break and potentially next week we're going htoear about whether this is a good idea or a bad idea from jon fortt. thank you. thank you for accepting the assignment. >> we may need you here every day, jon. with gold and copper prices pushing towards all time highs, us gold corp. offers investors leverage to both gold and copper at its project, and mining friendly wyoming. u.s. gold corp has a reserve of almost 1.5 million ounces of gold equivalents. permits to mine zero debt with only 10.73 million shares

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welcome back to "squawk box." blackstone just reported quarterly results, earnings of $1.01 a share, nine cents better than expectations. just ahead of estimates. the chairman and ceo saying the third quarter represents the highest amount of overall fund appreciation in three years with over $40 billion of inflows. total assets under management increased 9.9% to $1.1 trillion. the company repurchasing 1 million shares during the quarter and we're going to get to talk about all of this with the company's president and coo, jon gray, who will join us in the next hour. we're watching shares of

expedia and uber this morning. a financial times report said that uber has explored a possible bid for the travel booking website. that report says that uber approached advisers in recent months after the idea of acquiring expedia was brooached by a third party. it is an interesting deal because the head of uber who used to be the head of expedia and a nonexecutive member of the board there. joining us is dan ives, managing director at wedbush securities. very interesting deal. what do you think of it? >> i think it should be a major strategic home run for uber. right now this is them going on the offensive. they're trying to expand their tentacles. look at expedia, that would fit in extremely well and really give them, i think, massive monetization opportunities. this is one that makes a lot of sense. i think every which way. >> the market may not agree with

you initially, knee jerk reaction, uber shares down by 3.3%. we don't know anything about this. this is very early days. nobody knows how this deal with work, if they would go ahead with it, what they would pay and maybe that's the biggest question. makes sense at what price, do you think? >> i think for uber, i mean, you could -- this could make sense even 15, 20, 25% higher at expedia because you look at some of the revenue synergies they could get from this, this is something that could really, i think change the revenue trajectory of uber because of the cross sell. i think clearly what dara is going after, they're on offense. you go back a few years ago, cost cutting, strategically defensive mode, they have a massive mojo and gaining more and more share. you look at what they could acquire. i think they're going to be on the hunt for m&a. expedia, would fit like a glove

into the strategy. >> dan, explain to me why you think it would fit like a glove. i understand the concept, i made the argument, i could also make the argument these things work just as well independently of each other. >> yeah, i mean, i view this as -- this is one step toward a super app. no different than what we see in asia, you know, throughout, especially in china. the super app concept is where uber is going. to take it broader, you think about more and more competition down the road, whether it is from tesla and others, uber right now is trying to just build more and more of a moat and this is going toward a super app concept. that's where something maybe knee jerk the stock would be down, but i think investors will like the strategy. right now uber has massive momentum. this is the time to go aggressive on m&a, not sit in the right wing going 40 miles an hour. >> the question i'm asking, is this a financial deal you think you can buy expedia at a good

price and improve what it is doing and hopefully generate additional sales because you have more people that you're able to leverage off the uber app to other places, into the expedia universe, would that be the sort of basic argument or do you think it is genuine synergies between these two businesses that are ongoing, to say which percentage therefore of uber users do you think are traveling meaningfully in -- and would be using this app to book -- to make all these bookings? >> well, i think there could be 10 to 15% revenue synergy in terms of how many uber customers are ultimately using expedia apps. i think you think about it, this is really uber trying more and more to be a one-stop shop when it comes to travel. and maybe a few years ago they were hesitant. now is the timeexpedia, bringin

the band back together, no one knows expedia better than dara, and this is something on every metric i think would make a ton of sense from an m&a perspective. >> if you didn't buy this, what would you buy? >> if you don't buy this, they're going to have to go more and more down the autonomous route. partner with waymo, that'sicall small other deals they could do. in terms of globally, what they're going after, one company sticks out here, expedia. >> dan, thank you. good to see you. >> thank you. >> we'll talk crypto when we come back.

it's our son, he is always up in our business.

it's the verizon 5g home internet i got us. oh... he used to be a competitive gamer but with the higher lag, he can't keep up with his squad. so now we're his “squad”. what are kevin's plans for the fall? he's going to college. out of state, yeah. -yeah in the fall. change of plans, i've decided to stay local. oh excellent! oh that's great! why would i ever leave this? -aw! we will do anything to get him gaming again. you and kevin need to fix this internet situation. heard my name! i swear to god, kevin! -we told you to wait in the car. everyone in my old squad has xfinity. less lag, better gaming! i'm gonna need to charge you for three people. . andreessen horowitz released its annual state of crypto report this week and the firm put the number of worldwide cryptocurrency owners at 617 million, a new high. that driven in part by the mass adoption of stable coin. joining us now with more on crypto, anthony bpompliano,

professional capital management. it is election season, we have been watching bitcoin, druckenmiller said that perhaps the recent move is an indication that some players think that trump may have moved ahead. he's moved ahead on a lot of the betting sites. do you think that's why -- it is back to 67, which is not anywhere near the high, but it is well above where it was three weeks ago. it was threatening to go under 59,000 again. so it has been moving up for the past week or so. >> i think the market conditions are definitely playing in favor of store value assets. gold up 30% this year. bitcoin is just more sensitive and more could you -- last night. did you hear the actual question? what is was? related? andrew points out that vice president harris has been sort of courting some of the crypto? >> supposedly. >> i don't think it matters who the president's going to be. >> even the last week has nothing to do with it?

>> much more likely about six months after the having you get pricing in or supply shock. also have central banks around the world cutting interest rates. co supply expanding and a bullish investor base. how excited about stocks moving up, et cetera. go back look at 2020, this is right about the time where we went from, call it $10,000 for six months. just went straight up. from $10,000 to $64,000 in march of 2021. i'm not a huge believer, it's the month of october everything goes up. usually september is down but it was an up month and invalidated that thought process, but i believe there is something about around six months after the having you start to work in that supply change, get a monetary regime change and i think bitcoin will continue to run through end of the year. >> okay. because the reasons you gave right at the top were, could go back three months when on, six months when on, nine months.

the same you've always said. same selling points. >> bitcoin is the simple lst in finance but hardest to understand because it requires not over thinking. i think that's a really kind of important point, which is, bitcoin is a finite asset. increase money supply, drop interest rates and people around the world realize that they need a store value, they're going to buy bitcoin. interesting is charlie balilo from creative planning put out a chart. the last 30 years u.s. lost 50% of purchasing power. one generation. they're looking for other assets. what i think is important that bitcoin is not a threat to the u.s. dollar. we're seeing and the andreeson report pointed out what people are doing, using bitcoin as a savings account. buying it and holding it. they don't want to spend the bitcoin but using stablecoins. they have hundreds of millions of users. just like in the traditional world you have a savings account, a checking account, you

never tougch your savings account. it's digit the. stablecoins checking account to pay for everyday xmexpenses, googood, services, et cetera. you are introducing a multicurrency world historically wasn't possible. it was incredibly expensive and difficult. stablecoins you pay for and those two will ride and stablecoins a huge bull market for the u.s. dollar. >> so the great masses of the unbanked. are you seeing bitcoin become, i mean, if you have a phone, you can have a bank. anywhere in the world. is that -- you've in the past said, you know, that's like fairy dust. remember? sprinkle a little fairy dust. you've been in foreign countries. ask the guys, what are you talking about? no idea what you've talking about. do you think -- can you make the case that's actually happening? >> give you a couple -- >> just fairy dust that --

>> let me give you a couple numbers. two report recently came out. nick carter at castle island, huge study. then a new guy head economics at tether put out a bunch of data. tether claims 330 million on chain. not in centralized exchanges, on chain with tether in those wallets. add in exchanges tens of millions more. 400 million plus more just with tether. nick carter and howard went and looked, said two out of every three emerging market crypto users converted stablecoins and going back and forth between assets and said 40% of these emerging market crypto users bought a good or service with stablecoins. again, just crypto market emerging market users. so what is the percentage? a huge question. only 10% of a nation, go and talk to people on the ground, only one of ten people say i've got stablecoin, but a high penetration of usage for stablecoin for those who have

them. >> you can paint an unbelievable picture, andrew, people in high-inflation countries that work their ass off and then, you know, a week later whatever they work for is worth, you know, 10% less. in a week. if it were you go on bitcoin, there's a place where -- so i don't know if it's really happening. >> a huge story now. see if it appens. stripe reportedly looking a the acquiring one of these stablecoin businesses. you look at at digital payment provider hey look, adopt these. stablecoins, buying, bitcoin for saving. right now dumb to spend your bitcoin in america. you get taxed. be it's a huge issue. >> thank you. >> would you say you've been getting a the it relentlessly all day already? >> every morning. with a smile. >> getting -- we got to do that. do you? days i'm, i don't feel relentless at all. >> it's just a shame. >> doing just fine. >> are you sure? >> positive. >> more coffee, or something.

blow. i'm kidding. >> i forgot. a very important one question that's super important. do you think peter todd is -- did everybody watch the hbo documentary? >> i didn't koch but saw the guy. >> do you think that's him? >> andrew, ear also toshi. >> when we come back, a formula for success. billion mayor todayo wolff joi joins us. and jon gray coo jnsoi us and robinhood ceo vlad tenev. we'll be right back.

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for any reason. [vampire hiss] (vo) start your move at opendoor.com. it is just before 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 kernen and andrew ross sorkin. among today's top stories, elon musk has reportedly tapped close confidant amiant to lead tesla. this as shares slumped and demand for vshevs declined. meta laying off people including instagram and reality raps. and raytheon agreed to pay more than $950 million to settle doj probes into foreign bribery and export control fraud. raytheon is also paying more than $124 million to settle

s.e.c. charges it violated the foreign corrupt practices act. dom chu with a look at this morning's free market movers. >> joe, becky, andrew, kicks things off with a mover and dow component travelers up almost 6% in the pre-market trade after posting a nearly threefold jump in third quarter profits. a beat on earnings. much higher than the $3.55 the street was calling for. now, revenue did miss expectations, though. net written premiums increased 8% record $11.3 billion. travelers management remains confident in the outlook for their business into 2025 and beyond. meanwhile, health care stocks also continuing decline this morning after elephants health former anthem blue cross/blue shield cut its forecasts. unprecedented challenges in the medicaid business. also reporting a miss on third quarter earnings and revenue

topped expectations. the other health care stocks in the ecosystem, molina and others, feeling some of those ripple effects from the elevance report. end with chip stocks. complete sector higher on the back of taiwan semi earnings. 54% rise in profits over the quarter and forecast today 35% jump in current quarter revenue on a year over year basis. boosted by demand for a.i. products and amd, nvidia, intel, broadcom amongst others, seeing a bid in the market. keep an eye on chip stocks. back to you. >> dom, thank you. meantime this weekend formula 1 arriving in austin, texas. the race kicks off the fourth quarter of the brand prix season. just six races left 24 mercedes trying to climb up the leaderboard for the driver and championships for more on the business of formula 1 we bring

in toto wolff, principle of a formula 1 team and mention no month no holds barred book titled "inside mercedes formula 1 life in the fast lane is out." he's a former professional drivers him. we just discussed this. you're not driving too much anymore? >> couldn't imagine as a young day one day i wouldn't be enjoying it anymore. doing these events louis and george, going our laps. i realized five, six years, that's not what i felt before and the muscle isn't trained and things become not as enjoyable. >> now an investors managing the whole team. are you shocked at the success of f1 in the u.s.? >> yeah. i think we had a few events that coincided that helped us grow in the u.s. first one obviously covid.

we were able to put on a show without spectators. the first global sport that did so. people were at home and watched the sport. netflix did a fantastic job with the "drive to survive" series which i wasn't so keen at the beginning. ferrari also didn't participate in the first series. >> wish you did now? >> well, we discussed with my ferrari colleague back in the day whether we should do it and felt we were racing for formula 1 world championship and he said it's not cirque du soleil and realized after time a mistake not to participate. netflix hit households. then fantastic season in '21 when the red bull mercedes ended up in tragedy that cost louis the champion shs. use social media extensively leading to the situation the sport is strong in other areas in the u.s. ais growing.

>> huge growth. the question what does the line look like? does the line look like -- trajectory at that same pace or is it now slowing down? i think sort of questions about how much more it can grow. especially in this super competitive environment in media for sports rights right now. >> i think from a pure economical standpoint us as a franchise league is that our contracts are very long term. we're signing tv deals, sponsorship contracts or promotion contracts with racetracks up to five to ten years. a stable income stream. i think when it comes to the fans we just need to continue to entertain, and we need to be wary what regulations we put into the sport. >> like what? >> like how fast are the cars going? putting in half electric, half combustion engine. >> isn't that the team are cars, too? the biofuels and changing out

the race cars? >> yeah. re represent mer cedes in that and mercedes all ev. markets demanded it. cars are great. but the infrastructure is simply not there yet and that's why the demand is lacking. i think what we are doing is what's happening in the real world. people enjoy driving combustion engines, but if we can make them hybrid, even better. if we fuel them with biofuel, waste-based buyo fuel it's sustainable. >> and good for the sport or a mistake for the spore because it's going to change the sport? >> i think staying technically relevant and novelty is important for the sport. always part of formula 1. fastest laboratory in the world. >> will these cars go faster? >> they are going to go faster. already to date incredibly fast through the corners and on the straight but are going to go fast again. >> how dangerous do you think this is and the faster the cars go, how much more dangerous do you think it is today? >> really dangerous, but the

sport doesn't show that anymore with camera technology you have you don't realize the cars are are going 200 miles an hour, cornering speeds, astonishing. you can't believe the car will make the corner when you see it coming. and it's dangerous. we were just lucky we didn't have very bad accidents in the last few years. >> lvmh just got involved with a big sponsorship. ten-year deal for a lot, a lot of money. how many more deals are there out there like that, in f1, do you think? >> that is obviously a spectacular deal that doesn't get much better ins luxury sector and all of their sub brands, and it's a -- i think if they perceive us as luxury and being on par with their brands, that's good news, but we've seen strong influx of technology companies. the best once, that came to work in formula 1 and the marketing side and technical side. a.i. and machine learning is one

of the big topics. so far, knock on wood, it's going okay. >> how much more broad dawe want the sport to be? considered now a very upscale sport. look what's happening in austin over weekend or when it goes to miami even vegas. it is a luxury in the same way we described lvmh. does it need to be longer term? >> quite interesting. look at our demographic, it's affluence, very much. when i'm in the big cities in the u.s. i see thinkenthusiasm. out of the 1city it's less. football is the preemdominant sport. we need to gain arparticipationn the united states. the niche, big in south america.

430,000 last year. >> you want it to be luxury but aspirational? >> we want to be luxury, inspirational and also want to provide opportunities for people who can't afford to pay $1,000 for a ticket. >> long term, i know your wife's involved in this. do you want to have more female drivers in f1? what does that look like? >> absolutely. i mean, i've been with -- for many year, 15 years since my wife and i are together. i've seen struggle agency professional racing drivers. preconception a woman isn't fit or strong enough to drive a car and that is simply not true. that's why she's running formula 1 academy, also formula 1 series as managing director with the aim of having more women in formula 1 in a few years and needs to start -- a few years ago, 100 girls, and now more

eventually bringing women into formula 1. >> toto, thank you for joining us. have a nice weekend. >> you bet. a lot more on "squawk." interest rates expected in just about seven minutes from now at 8:35 eastern time. and blackstone's president and chief operating officer jon gray who will join us and break down the company's quarterly results just out in the last hour. we're coming right back after this. ♪♪ amazing. jerry, you've got to see this. i've seen it. trust me, after 15 walks, it gets a little old. ugh. stop waiting. start investing. e*trade ® from morgan stanley.

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welcome back to "squawk box." blackstone reporting results in the last hour. private equity giant earning $1.01 a share better than expectations. revenue $2.34 billion ahead of estimates. more on the numbers and the remarkable amount of money inflowed into this firm, jon gray, president and chief operating officer of the blackstone group. good morning, jon. how are ya? >> good morning, andrew. >> talk about the earnings and maybe delve deeper into what's happening as you see it from your portfolio in the economy,

but we just talked about the inflows, and this idea that you have $1.1 trillion with a t. a record high for you. >> yeah. it is remarkable. when i joined the firm back in 1992, we had less than $1 billion. it's been an incredible run. it's a testament to the vision of steve schwarzman, the talent of our people and delivering for our customers and that's what we did in the quarter. we had the highest appreciation in total amounts in the funds in three years. we deployed more than $54 billion, highest amount in two years, and on the fund-raising, which you noted. more than $40 billion came in getting us over $1 trillion 1. the key why this is happening is twofold. one is, we're seeing a healing of capital markets. you see it every day on your program. debt markets are better. equity markets are better. the second thing, which is really important for us, is we

focused on some of the best neighborhoods out there. data centers. energy and power. india, private credit. we like to say where you invest matters and driving performance leading into these great areas is so critical for us. >> you talked about d.c.eployin and harvesting captital. not sure we're there. >> employment picked up. think about a cycle when things are recovering you want to lean in, invest before the all-clear sign, which we've been talking about and why we've invested more than $120 billion over the last year. in terms of the harvesting side, that's the one area that's lagged, but that's what happens. you sort of plant the seeds first and then harvest. and as we look forward, there are very good signs. we've seen interest rates come down both short and long rates,

spreads have tightened a bunch. you know. we've seen anywhere from 100 to 200 basis points's tightening in corporate, real estate credit. we continue to see liquidity comes into the marketplace. the banks, who you've been talking to the last few days are much more open to lending money. the commercial mortgage-backed security market is fourfold bigger in terms of volume and the equity market is improving, as you know. record highs opinion i think the next tumbler to fall into place will be the ipo market. when we look at 2025 i think we'll see more of that. we're having discussions now that are not just theoretical about taking companies public but practical. that happens as equity markets strength be. it's like a magnet pulling companies into the public markets, and that's another reason we have optimism as we look forward. >> i wanted to take a quick pause half a second.

steve liesman is at the desk with us now. breaking news i believe from the ecb and we'll come back to you jon in a moment. >> european central bank cutting interest rates by a quarter point in deposit rate down to 3.25. by 0.25. cut consecutive first time since 2011. speaks to a global cutting cycle of which the fed has been a little bit behind the curve or other central banks going a little more slowly, and just quickly i haven't had a chance to look at outlook here. interest rates on the -- down 3.25. pandemic emergency programs are declining. reducing balance sheet. and i'll come back to you later. expected inflation to rise again before declining to target. that's interesting. their headline was down below their -- core was higher. and not precommit a particular

rate path. largely expected, another cut coming, but not expected for the ecb to forecast that definitively. >> fair enough. stay where you are, steve. back to jon gray. maybe you can speak to what we're hearing from the ecb and also where you think the federal reserve is going to be, at least the next couple of months. do you believe there's going to be two cuts? do you think less? more? and i'd love for you to comment only, a competitor said it, march rowan runs apollo said he didn't think actually the fed needed to be cutting at all. mark rowrowan. >> we're not surprised what the ecb has done lehere. we see inflation cooling broadly around the world. if you look in the u.s. what we see is, we survey our companies, and in the third quarter, wage growth dropped below 4%. that was the first time in the

post-covid period we've seen that. look at rental housing across our large single-family, multi-family portfolios we see those housing costs growing at less than 2% versus the 5% in the government cpi data. that's the biggest component of cpi. so i think the data gives the fed air cover. we're in the camp that the fed has room to lower rates. their mission here is twofold, as you know. which is to look at price stability, inflation, they're, getting good data. and that will allow them to focus on their other mandate, which is employment. so i would be in the camp that the fed will lower rates. they're going to do it deliberately, because they have a healthy economy, but they do have room to cut, because the data reflects that. >> jon, i have a -- an economic question, but it's tinged with at least politics or policy, which is to say, yesterday stan druckenmiller believeded that former president trump would

become the president. it that is the case, there is a likelihood of a massive tariff program. i'm curious how you think about that as it relates to preparing for it, given all of the portfolio companies that you own and what you think it would do to the businesses? >> well, we obviously have a ways to go on this election, but i think if you had former president trump win tariffs would obviously be part of the equation. i do think it's important to keep in mind where things ultimately land. what will be the size of the tariffs, which countries will be affected. which industries. and that may look different than what's being discussed today. it's hard to know, and i think as investors, it's hard to speculate. want to be thoughtful. yes, i think we'll have tariffs. we did have tariffs in the first trump administration that continued in the biden administration, but i think we've got to wait a little bit and see, but certainly companies

in export-oriented industries have to be thinking about the impact. >> the other big question i wanted to ask about this world of private credit. you are now in the private credit business i mentioned your competitor, mark rowan, apollo, pioneer in his own way, different than the way you've approached it, but there are questions about the private credit market. does it make the system more resilient? does it create more risk in the system? >> well, we think it does great things for the system in terms of reducing risk, and today just as background, we've got 432 billion dollars of corporate and real estate credit. it grew 20% for us in the last year. the reason i say it derisks the system, if you look at our model, we operate on a capital-light basis. we're just a third-party manager. some of our competitors have chosen to become insurance companies. it's a different approach for us

in that way. the second thing i'd point out is when you look at what we're doing in, let's say, non-investment grade lending to companies. private equity companies, we're essentially just bringing up investors right up to the borrowers and doing it with pension fund capital on an unleveraged basis or in our bdcs less than one times leverage. that's different than banks, a critically important part of the system but 10 to 12 times levered. may sell less. less leverage in the system. i point out great duration matching. getting in trouble, a big prime mortgage portfolio 20-year duration. those deposits unfortunately lasted 20 minutes. when we put assets on the balance sheet of our insurers, they've got long duration hold power. >> right. should we be concerned that the banks are loaning private equity -- banks are loaning

money to firms like yours as well? >> yes. they're lending money to firms to, what we're doing to certain specific activities, but when you look overall in our private credit activities, it's less leverage in the system in terms of what we're doing, and it's better duration matching, and if you look at the ultimate outcome here it's reducing risk, because it's spreading it throughout the system, and it's lowering the cost of borrowing for consumers and companies. and it's one of the reasons the u.s. system is so vibrant. we'vegot great capital markets. we've obviously got very healthy banks, and now we've got this private credit system. i think it's one of the reasons we're seeing such strong growth. >> right. we've asked you about it the last couple quarters. got to ask you about the status now. blackstone's real estate investment trust. known at breit. where are you in terms where you think you are in the path and where it relates to beating thresholds for fees and the

like? >> well, we're incredibly proud of breits. the vehicle delivered in the main share class, 10% return for nearly eight years. 50% higher on an annual basis than the public reit market. we managed to give 100% liquidity to every who sought it over time, and we love the portfolio. it's helped us through this difficult period, but it is also really positioned going forward, 90% of the portfolio approximately is in rental housing, logistics, data centers and a big focus in places like texas and florida. where we are in real estate is obviously we're on this recovery curve, and that's going to be very helpful for breit, debt costs have come down. more people are talking about investing in receipt estate and we're beginning to see that in the floats. redemptions are down more than 90% from their peak. october 1 inflows were up 30%

from the third quarter and if current trends continue, we expect to have positive net inflows in the breit and to us it's something we have a lot of pride about, because we weathered a storm and we've done a terrific job for investors. >> jon gray good to see you this morning. appreciate it and hope to see you soon. maybe at the desk here a couple blocks away from you. talk to you soon. thanks. >> look forward to it, andrew. >> you bet. all right. when we come back, a check on apple after its chief people officer exited the company after less than two years. ay tedstun. "squawk box" will be right back.

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welcome back, everybody.

apple has seen a slew of c suite departures. hate the phrase. whatever. seen a lot of big executives retired in recent months setting the stage for the changing of the guard at the world's most val automobile company. steve kovach joins us with more. >> and notable departures. back to january, in fact, even at the board level pointing to a generational shift. a lot of these people there for years and decades. we learned yesterday chief people officer carol surface left after not even two years on the job. she was appointed february 2023. also this month dan riccio, overall hardware boss stepped aside until 2021 stepped aside maikel apple headset and in august, luca will take yore role -- another role. on top of that other senior executives leaving after decades, head of procurement and

a top vice president. and al gore and former boeing cfo james bell. mandatory retirement ages at age 75. why they had to leave and a few interesting things to highlight what we're seeing with these departures. first, some of these guys stepped down from cook's leadership team but stick around apple running smaller teams or projects for the company. including cfo maestr i and riccio falls into that category and many incredibly senior and there for years or decades, plus younger executives are stepping in, hardware boss, john ternus and tim cook ceo 13 years and coo before that, guys. >> the luca news, biggest that could have sent the market kind

of tumbling and concerned what was happening. the idea he's not leaving, sticking around. probably more about commuting. >> could be a little -- just -- interesting towards the end. why i highlighted three people who stuck around. phil shiller at apple since, way early, marketing boss. he's still there and call him an apple fellow. semiretired? i don't know how to explain it. >> still wants his brain. >> and running an important part of the business. app store working with regulations they're facing in europe and things like that as well. it's really interesting to see what's going on. talk about succession, right? tim cook. he'll be 64 in a couple weeks. ceo 13 years. he said, told dua lipa of all people on a podcast he plans to stick around for a while and shares don't fully vest until 2026. >> the way they do it, create a place for the people so important to them. >> exactly. >> try not to burn people out,

run through them and run them out the door. >> for the most part, true. get to rick with news, rick, on jobless claims. >> certainly do, joe. september retail sales. start out there. up 0.4 of a percent. that's better than expected. and 0.4, at least up until now with unrevised, follows some solid numbers going backwards. we have up 0.1 last month. doesn't sound great. prior to that 1.1. holding on to gains. not slipping into any negative territory on these numbers. st strip out autos improves up half a 1% equals june. surpass that you have to go to march. strip out autos and gas. up 0.7 of a percent. that's the best since june when it was up 0.8 and a control

number? that is when you sen ynthesize, come up with a core up a again. powerful, rearview mirror up 0.3 and 0.4. and revisions are coming in actually 0.1 better. now switch gears, shall we? initial jobless claims. 241,000. expecting a number close to 260,000. in the rearview mirror, 258 became 260. down 19,000. but there's a lot of asterisks here whether columbus day holiday, whether some of the storms, hurricanes may have prevented some of the states from keeping up with their, you know, putting in their information. so we want to put a little as tras -- asterisks there. haven't seen 1.9 million since november '21. 1 million 867, biggest since the last week in july slightly higher and last, certainly not

least, philly fed. an october read expecting a number around 3. it's triple that. 10.3. best number since just july when it was around 14. look at interest rates, they moved much higher. i've been talking about the last couple days. if you look at what propelled the interest rates higher, it was the 10/4 release of the september jobs report, and we moved over 4% in the 10, but all maturities jumps and arced. back down to those it levels yesterday in anticipation of what is probably the next most important number. retail sales proved pretty good. now looking at the yield around 4.07-ish. prior to the release 4.03. a number up about six, seven basis points on tens. 395 where we were on 2s, leapfrog up to 4% now up 6 basis

points, and the fact we breached 4% in a two year tells you how important some of these metrics that are top tier measurements of the economy are to investors trying to handicap what the easing cycle will be and trying to parse through weird stories about its really sad that the fed's data dependent? shouldn't data dependent be their central theme? joe and the gang, back to you. >> all right. thanks, rick. for more on the data, bring in lindsay piegsa chief economist our own steve liesman and, like, muttering. steve, going to -- go to you first. what were you muttering about? >> this is a strong report. that's going to lead, again, i think, to an upgrade or a revision upward in the street's forecast for gdp third quarter. this economy, which was supposed to be weakening upon which the idea of the fed could easily reduce rates with no -- not

looking over its shoulder now has to look a little over its shoulder and onder, is this economy strengthening again? i think rick is right. i'm going to take a pass on making a judgment on the jobless claims numbers, because of all of the distortion out there and a time of year there's some distortion, not to mention the hurricanes and other stuff rick mentioned. i don't see a reason why the retail sales number should in and of itself be disported. w -- distorted. strong on clothing. general merchandise. food and drinking establishments did well. and as rick pointed out that core number is what feeds into the gdp. so -- it was supposed to be a weakening economy. it's not weakening, and i just wanted to take a quick look at probabilities. still banking on a quarter. 90% probability of a quarter point. down a little bit and 74% pr probability of the next quarter out there.

think about a pause maybe in there somewhere. the idea if the inflation numbers come out worse again or the employment numbers come out stronger again, that a pause would once again be on the table, joe. >> muttering. i thought i heard you say something about the mets. but had nothing to do with -- lindsay what did you think? >> a very strong number and i think this underscores the notion that the fed maybe took too big of a step out of the gate with that 50 basis points cut underscoring the need looking forward to take a more tempered patient approach potentially dialing back even the need for a november rate cut. when we look at inflation moving sideways and in some cases moving higher away from the 2% target, we see the labor market strengthening as of the latest report. non-farm payrolls report. unemployment ticking down, wages higher. the consumer showing even more resilience. to your point, could see q3 gdp expectations move above 3%. >> around 3. >> likely to take it higher.

>> and 25 would be stronger than 24, joe. >> lindsey actually said, and -- i'm afraid to even posit that the fed could have not known what they were doing with the 50 basis points. i think -- you still think that there was a method to the madness, recalibrate, whatever. she just said it. they could have been totally making a policy mistake. >> to be clear i thought the fed should have gone a quarter, back in september. but i think you can justify it in the way that you were way restrictive. i thought you were -- >> could be wrong. could have been a -- ill-conceived, ill-considered move. es especially if inflation and the economy? >> i don't agree with a what they did but i understand. they painted us a pretty clear picture looked where the rate was, on the overnight funds, over 5%, and you consider where

the two year was and the rest of the curve was, how t bills were starting to trend. you could make a case that they want to be more in line with the rest of the curve. the issue, what the fed is doing wasn't necessarily what data and the economy were screaming and take a real chance of trying to be a little ahead of the game as the chairman has pointed to. they want to help keep the economy going. don't want to wait until the necessity of easing arises. well, there's risks in doing that. the risk, your interpretation of the economy down the road you're expecting is not what you end up with and that is beginning to happen. not they're going to necessarily have egg on their face for the economy looking better. i think most investors actually expected that and i think that's why stocks flew, but i think where they'll going wrong, stickiness of inflation they've already thought of as surrendered to some of their policies. >> i just want to add quickly that it's a mistake when you

turn down a street and it's a dead end street and the ocean's at the end of the dead end. it's okay if you go down that dead end road and you turn around. if you press the gas and go further into the water. my point, 50 itself may not be a problem. it would be further rates -- if indeed you have -- >> and already seen fed officials back pedal. powell said we're in no rush. already tried to push againstmarket expectations, but to rick's point. a lot of that september move, the motivation, was pressure from the market. not what the data was saying. we've seen this time and time again. the market getting ahead of itself and now being forced to recalibrate back to reality. back to what the data is really sugg suggesting. >> we recalibrated by 60, 70 basis points the one-year outlook for fed rate cuts, joe.

put back in 70 basis points. >> talking bond market. because they're not responding to what the stock market is saying. stock market saying don't do anything, i think. >> the stock market seems to love good data and bad data. right now the market -- >> loves lower -- >> earnings coming out in good shape. right, joe? >> look even better if inflation continues to come down. if it doesn't, they don't look at good. lindsey, thanks. see you, rick. you said, eight times -- everybody in the control room yells in my ear. >> major day. >> yell in my ear whenever you say that. >> because of your obsession with it. >> is it really that? >> yes. >> all right. >> thank you, everybody. when we come back, we will head to the summit talking to robinh robinhood ceo vlad tenev. we'll be right back.

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make a difference?" this is your answer. so many are still suffering. so don't wait. call the number on your screen. or donate now at mercyships.org. that's the number on your screen. ♪ welcome back to "squawk box." robinhood announcing a new suite of products for advanced traders. joining us from the first-ever summit in miami, robinhood ceo vlad tenev. i want to hear about the summit and also talk about the new features that you've implemented in the product for advanced traders. it feels like a major shift from where you started and what you were doing. what's the impetus for this? >> well, first of all, the hood

summit, it's the biggest event ever held for active traders. it's here in miami, and we had 800 of our best customers joining us for the event. we announced some product. we had over 1.7 million joining on live stream as well. and, really, it's just to mark two years of progress from us becoming a great app for beginning investors all the way to an advanced platform that serves the needs of sophisticated active traders as well. >> so that's what i was going to ask in terms how you're thinking about the -- the market for your product today versus the way i think maybe people thought about the product before? >> yeah. there's three things that we're focused on. the first thing is being the market leader in active trading, growing market share. we've done very well on mobile historically, among younger people and folks that primarily

trade and invest on mobile, but about half of the market is on desktop web where you have more real estate on the screen, you can do more sophisticated things, like have charts and data in the trading, in the same interface, and so we weren't really ap player in that space but last night announced a new platform called robinhood legend, which is the first platform on desktop built specifically for the needs of active traders, and the feedback was really positive. i mean, really there hasn't been a great trading platform built with modern technology and with charts integrated until we announced robinhood legend. so we had 1,000 people sign up, and get access to the product in the first 40 seconds after we opened up signups, which i thought was pretty amazing. >> i want to ask about two other

trends taking place among retail investors and whether they are markets you want to play in. one is, talking about the election, you might imagine. there are folks who now want to bet on the election. you can technically actually do it right now. even in the u.s., before you couldn't do it. do you think that's a good development? a bad development? how do you think about the betting markets for political purposes? >> look, i think -- i'm very pro-markets. pro-free market, and i think that there's legitimate geopolitical risk to hedge and investors should have action to all the tools at their disposal to hedge their risk appropriately. so, yeah. very much in favor of more access to markets and more clear information. i think that the great thing about these markets is, people have money on the line as well. so you can kind of trust that

they care much more about the result, and those results should be much more reliable, in a sense, than just simple polling. >> so i don't know if you saw, but stan druckenmiller made a comment about another trade he thinks may be indicative of where this presidential campaign could go, which is the crypto trade. the trade around bitcoin. curious about how you see crypto moving? obviously bitcoin has moved higher, and whether you think that's a signof former president trump gaining a lead in this election? because there's a view that he may be more pro-crypto. at thepro-crypto. at the same time, i think there's a sense that vice president harris may be more open to crypto than she used to be. i don't know if you see a massive distinction between the two. >> both candidates seem like they're in favor of the u.s. being a leader in the space,

which i think is a welcome departure from the status quo. so, it could have an effect. the markets could be reacting to the political sphere. but also, we're seeing broad-based optimism right now across multiple asset classes. i don't think it's just crypto. and you know, markets shift up and down. the scenario can change very, very quickly, but right now, when we talk to our traders, many of whom are at this event, they're expressing a lot of optimism. they believe the future is going to be better than the past. america's kind of at the intersection of all of these new trends and innovation, if you're looking at electric vehicles, artificial intelligence, there's a lot of potential there, and they see america and the u.s. stock market as the best way to kind of capitalize on that. >> i don't know if you saw the

story, or if you can add any intelligence to this. politico reported that your chief legal officer, dan gallagher, has been floated as a possible pick for s.e.c. chair if former president trump were to become the president. >> yeah, i mean, obviously, dan has been a great team member. he's been -- continues to be amazing to work with, has been responsible, in large part, for us becoming such a great regulated player and upleveling there. so, of course, we'd love for him to continue doing that, so i have mixed feelings myself about these reports and rumors. but also, you know, i appreciate that, you know, we need people that have extreme regulatory knowledge but also care about innovation and america being a leader in financial services and

cryptocurrency and all these related enterprises. >> vlad, outside of leading robinhood, you funded and have founded this a.i. start-up, harmonic, which is effectively doing math problems in a.i., and i was -- i don't know how much the audience even knows about that project and that effort, and i thought maybe you could tell us about it and where it stands and what's going to happen to it. >> yeah, in a nutshell, we think that it's going to be important to create artificial intelligence models that have the ability to identify when they're correct and actually prove output information that's verifiably correct. there's a big problem with hallucinations of these models. models are getting better and better, but if they're going to be used for anything mission critical, including for financial services use cases, use cases in aerospace,

automotive, then we need a much higher standard for correctness, and imbuing mathematical proof and mathematical problem-solving, we believe, is the best way to guarantee that. >> how good or bad do you think these other models are? if yours can do math, and you think these other models can't, what's holding them back, and what are you doing differently? >> yeah. i mean, this is -- it's sort of like an area frontier research into the field. basically, the way harmonic trains these models is through something called reinforcement learning, and reinforcement learning relies on having a reward for the output, so basically, like, just like humans learn and get rewards from our environment, you know, if we're doing the correct things, we make friends, eventually, we pass on our genes

to the next generation. a.i. models getting rewards is a great way to train these models with whether the output is right or wrong. and the great thing about math is, unlike english, it's sort of black or white, binary whether output is correct. so, you can actually create a reward signal that's much stronger and more reliable than just language. >> vlad, i want to thank you for joining us. congratulations on the summit and the new product, and we look forward to following your progress as always. >> thanks, andrew. thank you guys. >> you're welcome. coming up, f ainal check on the markets ahead of the opening bell.

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(diver exhaling) (music intensifies) (diver yells) (shark roars) - whoa. (driver gasps) (car tires screech) (pedestrian gasps) (both panting) (gentle breeze) - [announcer] eyes forward. don't drive distracted. we're watching the shares of expedia after a "financial times" report that said uber has explored a possible bid for the travel booking website. the report says uber approached advisors in recent months after the idea of acquiring expedia was broached by a third party. it says a focus of the discussions was the role of uber ceo dara khosrowshahi, who served as expedia ceo, you might recall, from 2005 to 2017,

remains on the company's board. that likely means any approach would be friendly, and khosrowshahi would have to recuse himself from deal discussions. reports are at a very early stage, and no formal approach or discussions have been made with expedia. let's get a final check on the markets this morning. we are up across the board. it now looks like the dow futures are up by just over 75 points. the nasdaq futures are up by just over 200. s&p futures up by about 30. wondering why you're seeing such strength from the nasdaq this morning, and you can look directly to what's happening with the chip stocks. taiwan semiconductor out with a big beat overnight and also raising its guidance, higher forecast for the year. check out how that has improved the fortunes for all of these other tech stocks as well. lam research up by about 4%, along with arm holdings. super micro, up 3.8%, and marvell, up 3.2%. all of this on strength for what we've seen in a.i.

that continues, and that's what taiwan semiconductor said. let's look another treasurys after the data that we got earlier this morning. the ten-year is at 4.06%. the two-year's at 3.98%, so both of those yields ticking up slightly from where we were before the data and earlier this morning. and the dollar, at this point -- oh, sorry, first oil. oil's been down significantly. if you were looking at a weak chart, you'd see it's down by more than 6%. closed yesterday at the lowest level we've seen in about two and a half weeks, and again, that comes on thoughts that israel will not be attacking iran's oil facilities at this point. you can see the dollar this morning, right now, across the board with what you're looking at, mixed picture. right now, it's time for "squawk on the street." ♪ good thursday morning, welcome to "squawk on the street,"