of the smaller brands. it's tuesday, october 22nd, 2024 tuesday. two weeks from today "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. let's take a look at the u.s. equity futures at this hour. as joe mentioned, we are under a little bit of pressure this morning. down 220 points for the dow. that comes after the decline of .8% yesterday s&p futures are down 30. they were down by 11 points yesterday. nasdaq ended the day higher yesterday. the dow was down 344 points

yesterday. the s&p was down .2% nasdaq up .3% of 1%. it's unusual to come in and see the futures down like this because we have gotten so used to things going up and up and up and melting up for months at this point is what we are watching in the markets. the stock market is still up s&p up by more than 20% for the year to date let's look at treasury yields this morning they have been creeping higher this is something to pay attention to, too. the ten-year at 4.2% the two-year at 4.04%. above 4% for the two-year as well there have been a lot of thoughts in the marketplace. people saying maybe it is because the fed is less likely to cut by 50 basis points this next go around and maybe you won't see a cut at the next three meetings as the market said before. that is because the economic numbers are better than expected we have gold hitting another record high. check it out

$2,746 again that is up 37% >> comcast was down 7% yesterday. i don't know why i happen to watch that the dow, usually it tries to make up losses of 330 points. >> we are used to things going up, up, up >> october -- >> new highs on gold i saw we are in terms of the deficit this year. we saw $2 trillion lately, it ramped up a little. >> the expectation is no matter who wins. >> certain parts of what i'm seeing on twitter is even recently and recent months, it's actually gone up quite a bit that is what you do. >> part of it is because tax receipts >> you want to keep things as positive as you possibly can the dow has -- the averages have

been very positive recently. i don't know we'll see. i saw 3.3% on comcast. it is trying to make its way back to 45 now it is threatening down to 40 and change. meantime, minneapolis fed president neel kashkari reiterating lower rates at a slower pace. speaking at the conference, he supports the cut last month, but the next several quarters to get to something around neutral. he noted the size of the move. kashkari needs real evidence that the labor market was weakening quickly. whether that perspective ultimately turns out to be jay powell's perspective mary daly supports the meeting in november and saying she wants to be data dependent and not

data reactive. >> i haven't seen any information to suggest we wouldn't continue to reduce the interest rate consistent with the durable expansion with the price stability of 2%. >> the policy appears too tight on the path to 2% inflation. >> i don't know what kashkari is anymore. i used to think i knew he has gone -- he has been hawkish and very dovish. what was his latest thing? >> he would not be aggressively cutting with the down turn in the jobs market. job data has been incredibly strong his reaction is i'll not be on the path anything but a cautious cuts. >> some of them are stay the way they are oh, he's a hawk. i don't know what he is now. >> i think he moves with the data >> that doesn't help with the

latest data point. you are stride ntly one way or the other. >> he would not be able to be pushed in less than cautious cuts unless the down turn in th jobs market. that seems logical we are trying to pigeon hole him. >> i'm right about it. no qualcomm is revamping the mobile phone chips for the laptop processors in the snapdragon xchips. samsung is among the customers that will use the new chip good news for nike renewing the partnership with the nba and wnba the company will be the exclusive uniform and an pparel

provider for the leagues the last deal worth $12 billion. characterized it as much bigger than the previous deal next on the ceo deal is the nfl deal the league as opened up the process to other bidders the nfl is already in talks with several companies interested in competing for that agreement >> 12-year contract. that's a pretty big deal nbc has with the olympics. nice, long contracts, but they clearly payout they have the right to do those things. >> earlier this week, yesterday, adidas and mahomes that's their idea for how to take on. that might be a pretty good one. he's, he's pretty amazing. there's a story that the chiefs are the best team, but they do

it in a boring way he is such a rainmaker >> however you win. >> he had a bad day the other day and still, when he's in trouble, he's not in trouble he's like headed for the end zone he's really a special, special player they already one two straight. when is the last time someone one three super bowls? they're undefeated undefeated again this year ravens looked good last night. >> jets did not look good. >> no. aaron rodgers. you know what? who needs this he's 40 years old. if a 280-pound person is going full speed and hits you and throws you to the ground, that could happen to me once. i could only and then i'd be done for the season. don't you think? it happens to those guys six, seven, eight times in a game >> it's hard. let's talk about what's happening with former president trump's tax reform ideas

they could offer or they could offer a total or partial income tax exemption to 92.3 million americans. among the policies, the proposal to eliminate income tax on tips and social security benefits and along with overtime pay. with the interview last week, he would consider for firefighters. this is part of the larger transition away from the income tax system and replace it with revenue from the tariffs proposals. meanwhile, larry fink says the election doesn't matter. speaking yesterday, he said he was tired of hearing this is the biggest election in your lifetime and the reality is, quote, over time doesn't matter. he said there's too much focus on whether the market is going up and down any one time

i think noting the firm works with both administrations and speaking with both candidates. trying to suggest they were a bipartisan operation coming up, it's -- i was going to sing this the most wonderful time of the year we're talking about earnings season also foreshadowing a stephanie link appearance of not just her, but maybe her friend we'll get you ready for the big reports. including two dow components later, eric rosengren will weigh in on the latest fed talk. "squawk box" will be right back. >> announcer: this cnbc program is sponsored by baird. visit bairddifference.com.

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it's from the company with 99.9% network reliability. plus advanced security. let's power on! power on with the leader in connectivity. powering possibilities. comcast business. power's out. on today's sideqwak plannere hear from ge and 3 dpls m. they are writing a lot of this stuff in, stephanie. 'tis the season. based on the show we are getting ready to see >> there it is christmas comes early. >> say hello to my little friend are there still pumpkins around?

>> there are pumpkins around we do a combo for the month of october. we get into it in november and december it's only up for two and a half months i like it so that's why it's up early. >> it's a beauty i'm thinking pumpkin ornaments we can't minimize thanksgiving steph, i know you didn't want to talk macro there's a lot of interesting reports coming from companies you own. you know, yesterday, we hav haven't -- so unusual to see the dow go down 300 points it's donewn again this morning. the ten-year is at 4.20 and gold is at a new high the deficit at $2 trillion some day it will matter. is this the beginning of it mattering or a bump in the road? >> no, i don't think we'll

address the deficits under either trump or harris, joe, they just spend differently. i think you won't see them focusing on that piece of it i think rates are going higher because the growth is expected the atlanta fed tracker at 4.3% for third quarter was a lot higher than expected you know it is a volatile series we can't take it as gospel, but you are running at 2.5% for the economy. that is causing people to get a little bit nervous about maybe inflation might start to creep up higher. you and i talked about this for a long time. i would rather have better growth and little higher inflation just from the investment point of view that will help earnings overall. obvi obviously, that's what the bond market is nervous about and that's why rates are creeping higher. >> since the 50-basis point quasi surprise cut, it's almost

like rates have gone up almost every day on the ten-year. >> i know. >> you are saying it's because of a stronger economy. why 50 basis points? it's inn con grus. it is diametrically opposed. it doesn't mean 4.5% we were under 4% now at 4.10 for a while and now 4.20 now with gold hitting new highs. i'm wondering if this is a little bit of trepidation about inflation in a strong economy. >> for certain, for certain people are nervous that inflation is going to rebound a lot higher let's just keep it in perspective though we hit 9% in peak inflation two years ago. so, you are now at 2.5 if we go back to 3, that is not something we want to see, but if

you have stronger growth, then you are going to probably see a little bit higher inflation unless you get productivity to continue to improve. we actually have been seeing productivity improve so, maybe the normalized rate is for 4 or 4.10 or 4.20 on the ten-year you have inflation at 2.5% to 3% it just sits there you have better growth look, retail sales were really a lot better initial claims came down again the consumer is doing okay by the way, let's talk about what target announced today. target just announced they are going to cut prices on 2,000 more goods for the holiday season for a total of 10,000 skus they will cut prices on that's not inflationary. that's interesting to me let's keep aneye on some of those things. >> that would be good. if we do 3%, if we're on a 3% track for inflation and it's on

top of the 20%, it doesn't feel so great it's not down 3. that 20. the cumulative is 20 and now 26 after another year, i don't know how about general electric do you still own that? it's up 45%. >> but i would say wait half a sec. we still have a strong job market and inflation at 4% i do still own ge. i'm nervous because it's up 45% year to date expectations are high. you know what is interesting it is no longer a turn around story. they have the number one management treatment they have the number one market share in engines they are shifting their mix. that carries higher margins. boeing's woes are helpful for ge because you need to service more

planes because boeing is not producing as much. it's actually a benefit to ge. it's a profitability driver and cash flow driver i still like it, but the expectations are high. i have a lot of faith in larry culp and team. >> you have to it was an $84 staock in the las 52 weeks we're talking about these old names. 3m it's going to report and you like it as well, right it's still around. >> yeah, this stock is up 48% year to date it is a turn around story, joe this is all about the ceo bill brown. he was at l3 harris from 2012 to 2020 that stock at that time under his rule, rose 730%. so, he is an operator and an executer there's a lot they can do in

terms of cutting costs and just getting to be a simpler company and spinning out various different businesses so, i think this stock actually is still attractive on a valuation basis. it's not as attractive as when i was buying it at 14 times. it is now at 18 times earnings it's still a show-me story i think they will be able to deliver. today's quarter? i don't know organic growth is not exciting if it pulls back because it is up 48% year to date, i think it is a buying opportunity because the long game veal iis really vy attractive because of what brown can do for this company. >> sounds like you are talking about u.p.s. what brown can do. you see the advertising works on me the advertising works on me. what can brown do for you? you are talking about a guy. an actual person you like the biggest copper

producer how can it not be pretty good if the economy is as strong globally as you think. fcx you like. >> yeah. >> we talked too much macro and christmas tree stuff >> christmas tree. >> throw that out that you like fcx. where are the pumpkins are they outside >> they're outside yes. very much so >> okay. very good. squirrels love eating those things >> you know how you get it off olive oil on it and red pepper flakes >> coming up, news you can use. slicing up the cheesecake factory. activists want the restaurant chain to make changes. still to come, paul tudor jones. that exclusive interview coming

your way at 8:30 a.m. eastern time "squawk box" returns after this. trust. hang out. and check in. they all choose the advanced network solutions and round the clock partnership from comcast business. powering more businesses than anyone. powering possibilities.

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welcome back to "squawk box. ge just reporting. phil lebeau has the numbers. >> andrew, this is a beat on the bottom line with ge earnings $1.15 a share in the third quarter. one cent better than expectations revenue coming in shy of expectations at 8.49 billion i want to talk about the numbers within the numbers operating margin in the third quarter 20.3%. free cash flow of $1.8 billion up 5% versus last year total orders up 28% compared to q3 last year commercial engine orders up 29%

versus last year defense offorders in the third quarter up 19% i got off the phone with larry culp the critical suppliers, the ones they have been targeting to work with to improve the performance, deliveries up 18%. quarter over quarter they are clearly attacking the supply chain and having success. eps in the range of 4.20 to 4.95 operating profit margin or profit overall, excuse me, $6.7 billion to 6.billion an increase from 6.5 to 6.8. increased guidance of 5.6 to 5.8 for the full year. they were expecting 5.3 to 5.6 billion. they beat the street by a penny and raised guidance for the full year

back to you. >> okay. phil lebeau, thank you time now for the executive edge houston activist investor jcp investment management built a 2% stake in cheesecake factory and urging them to spin off three smaller brands oaccording to the report they met with the company. they argue three brands would be better off as a separate company. the health focused chain -- back that up. health focused chain called flower child and gastro pub. jcp told cheesecake factory it would help with the spinoff to help with the growth it is aware of jcp's investment and it regularly engages with shareholders that stock, as a result, up 4.8% for the year to date, up 27%

in other restaurant news, privately held tgi fridays is seeking new financing as the dining chain preparing to file for bankruptcy protection after the planned acquisition by the largest franchisee fell through when the company breached the terms of bond hold eveer agreem and forced to turnover assets to the outside manager. this affects me more than -- >> are you a tgi friday goer >> my boston -- you know, it was a long time ago. >> not anymore >> occasionally. it's been a couple of years. more so than red lobster which you act like you actually went to >> on the corner. >> i disputed your assertion >> i totally believe it. andrew likes to frequent places right in the area. >> stay right here i can't go that far. >> you had a date there and the

waitress came on to you. do you remember that correctly >> that is also true i don't know why we need to tell the audience that from a long time ago. >> it was the only time it happened ever in your life. >> it's true. >> it's never happened to you. >> never happened to me. all right. when we come back, we have results from 3m and gm due in a few minutes. we will bring you the numbers as we hit the first on the cnbc interview with the gm cfo. as we head to brk,ea here is a look at yesterday's s&p 500 winners and losers >> announcer: executive edge is sponsored by at&t business next level moments need the next level network. 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?!

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welcome back to "squawk box. another report and another report by phil lebeau. general motors out with its numbers. back to d.c. with phil lebeau.

>> shares moving higher after the company beat on a top and bottom line by a wide margin 2.96 a share q3 ren q3 revenue above expectations. you look at the numbers within the numbers. strong across the board. q3 margin of 8.4%. up from 8.1% last year auto free cash flow. 5.83 billion a billg increase from last year. q3 anorth america up from 3.52 billion last year. if there are two areas that will raise concern and get questions on the conference call, this is it in china, they lost $137 million after the profit of $192 million last year. gm is a place where they are losing money $383 million loss in the third quarter. that is an improvement compared

to the last year gm is raising guidance for 2024, full year, to earn between $10 and $10.50 a share it was previously 9.50 to 10.50. previously, it was $13 billion to $15 billion free cash flow is going up expecting 12.5 to $13.35 billion. they clearly are maximizing their operations especially when it comes to vehicles and was they continue to grow with evs lots to discuss with paul jacobson we will talk to him in the next hour guys, this is a big beat on the top and bottom line. that's why the shares are moving higher. >> big ice guzzlers?

>> sure. >> does it mention what we sold evs? >> joe, when paul comes on, you can ask him about the ev business >> hybrids still good? >> they're not there with hybrids. they plan to be there. >> f-150s again. >> that would be ford. >> yeah, i'm a big truck guy my truck has two little seats and seven-speed manual transmission >> the truck business at gm is strong right now suvs are strong right now. they expect this strength to continue into '25. remember, we were down in tennessee at the investor day a few weeks ago. they believe in general, what they report this year, will continue into next year. they didn't give formal guidance, but the strength in demand and the robust internal

combustion vehicles and the evs growth will continue into next year. >> they are still building suv snz. >> absolutely. we're americans. >> chevy suburbans >> yeah. >> tahoe >> yup >> all right f-150. that's a real mistake. >> don't worry i don't think paul will hold it against you. we'll talk to him next hour. >> f-f-150 ford. >> he might told the ev comment begi against you. >> i didn't say park it far away from your house. >> phil, thank you we will see you in a little bit. 3m reported $1.98 a share. that was eight cents better than expected revenue was a slight miss. check this out the stock is up 1.25 %.

they are raising the low end of the guidance bill brown saying they are now more confident in the profit forecast they expected to earn $7 to $7.50. this is more than the numbers they and at tticipated beating h quarter. this is a big deal as stephanie link was pointing out, this company is up 48% year to date. a huge part of the that is after the second quarter that came in with with earnings. it was a pretty high bar it support 1.25% this is improvement beyond what people had been expecting. the ceo brown recognize we lost business to competitors because

we didn't have the right products ready to go the stock is up 2.3%. in the meantime, when we come back, how one private equity giant with $200 million under management is living in the world with risks thceo e is joining us. you can follow the best with squawk pod on your favorite podcast app and listen anytime we're coming right back.

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welcome back to "squawk box. our next guest oversees $200 billion in asset management. hosting the first capital event

in new york city later today to mark five years since the company went public. joining us is the ceo. good morning >> good morning. >> congratulations it feels like it's necessary for five years rolling here. i don't know if you saw this a little bit earlier, but we were talking about larry fink what was coming out and saying we should not be worried about the elections and not necessarily worried about the broader things i don't know if he was saying geopolitical issues at large, but you seem to be on the other end of that. you think geopolitical issues are super important. >> yes, they are important if you look at what we are discussing in the investment committees these days versus years ago, geopolitics and societal change. we discuss those themes. when you break it down into what we're investing in, i'm in the

same camp. i'm not this worried we're deploying capital with the themes we're behind. we have a fundamentally positive outlook where the world is going. >> you talked about the prospect that former president trump may become the president again and he wants to implement tariffs. when you look at your portfolio companies and companies you may want to buy or not, does that impact how you think about that in the future? >> i think you have to understand the policies of the largest country in the world and the largest economy in the world and think about how that might impact business. we're investing behind a long-term secular theme in society. digitalization of society. we're looking at the climate help you drive that. driving live experiences if you look at those themes, they are not necessarily impacted by global trade we try to stay away from

commodity industries and cyclical business and look where the world is going. >> in the conflict of where we are in the cycle, do you say to yourself you're in a buying mode because things are cheap or h harvesting mode? >> you know if you are selling well you can measure your returns if you have two and a half times the money in a deal. we're actually doing both right now. where we are in the private equity cycle is we all invested a lot over the last five or seven years. the main focus today is exits. exits, exits, exits. >> the other thing i would ask is about the exits, exits, exits because people need the exits. you can't provide the funds anymore. they are tapped out because they haven't gotten money back.

everybody went to the middle east en now it appears they want to invest in the middle east. they're done what is the capital going to come from? >> there are two sources of capital in the markets in the future global pension funds and sovereign wealth funds will continue to invest in our industry growing at 5% or 7% or 8% like that the private wealth is the theme. now we and some of our peers are large enough to create products for that channel >> in a retailesque way? >> there is tons in the private markets and generate funds we help create. >> what happens in the market to make that really move? >> it is starting to move now. in the past, we haven't had the breadth of products or liquidity in the business to actually provide retail types of products retail products need monthly pricing or maybe weekly pricing. it needs monthly liquidity

that hasn't been possible in the past it is product size to do that now. on the other hand, youasia the regulators are working with us >> when it comes to private markets, we saw in the past year and a half, we use the reit as an example of this there is a time when retail products haven't allowed you out, if you will, the question is if -- that was one example of it starwood was the other in the real estate space. if you have enough of the situations and the market turned the wrong way, do you think that the market could survive >> i think so. i think actually these products have now been tested over a cycle and it worked. you know, what you have to understand is the premium

returns you generated in our industry, part of that is because it is not as liquid as public markets typical investor today, you know, typical retail investor has zero or 1% or 2% in the markets. we believe it should be 15 or 20 the rest of the portfolio should be liquid. it is not tied to the portfolio -- >> because it is not marked on the daily basis for real, is that why structurally it can work out >> we own companies and buildings, basically you can't create liquidity in a company overnight. so, the underlining liquidity and the funds has some limitations and, therefore, to get that premium return that we're generating, we need a bit of ill liquidity in the system and the investors have to find that balance today, they're massively under invested so the growth opportunity is very large.

we look forward to exploring that >> christian, thank you for coming in. congratulations on five years. >> you bet coming up, details about a major lithium find in the united states plus, elon musk is getting sued by a filmmaker over the debut of the tesla cybercab that story when "squawk box" comes right back researchers

logical survey say they found a trove of lithium in an underground brine reservoir. officials say they used water

testing and machine learning to determine that there might be 5 million to 19 million tons of lithium in the formation and that would be more than enough to meet current worldwide demand for the metal. it doesn't say for how long. >> that is what i was wondering, too. this year or next five years the next 20 years? exxonmobil is among those developing projects in arkansas to extract the lithium from the salty brine water for new tkes. >> you think you find reserves and new ways of mining. >> the opposite. >> no. but that's right every time there -- this is what knocks it out. >> they thought we need to be on mars by now. now we got a chance. that is the thing. >> yeah. when we come back, we are awaiting results from verizon and defense giant lockheed martin we are going to bring you those

two reports when they are released up next, the consumer financial protection bureau is issuing new rules to move to what they are calling a more open banking system by allowing consumers to control and share their own data between financial providers. the cfpb director rohit chopra will be joining us next. it's time to grow your business. create a website. how? godaddy. coding... nah. but all that writing... nope. ai, done, built. let's get to work. create a beautiful website in minutes with godaddy.

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corndogs! corndogs! corndogs! ♪♪ i need another corndog! today, the consumer financial protection bureau finalized a rule requiring financial institutions to share customer data with other providers at the customers' request for free the agency says transparency will improve competition in the space and joining us right now with more on the new rule and much more is the cfp director

rohit chopra what is the problem this is intended to correct? >> becky, it can be a real pain to switch your bank account or your credit card or other financial service and what these new rules will do is insject eve more control for consumers in the market by making it easier to move your money to switch and to fire that bank or financial company that is not serving you well the way it works is that consumers will be able to permission their data securely to the provider of their choice, and we think this will mean higher rates on their deposits, lower rates on their loans, and for young people who don't necessarily have a credit score, a long credit history, they can use their payments and transaction information to show their credit worthy worthiness. >> most of the time this would

be done by a credit score. i guess i don't understand the problem with being able to say, forget it, i want to go over here and take my money here if i'm opening a new cd or a credit card or a new bank account traditionally, i don't remember it ever being difficult to do those things how big of a problem is this >> well, if you talk to many consumers, they have lots of auto debits, preprogrammed, or they have direct deposits. they have other places where their payment information is stored this is going to allow them to be able to take a lot of that information and move it to that new account. often, when you switch your bank account, you put yourself at risk of missing payments to other loans, incurring fees, or dealing with other bureaucratic messes and, more importantly, becky, when you're applying for a loan, often, you want to be able to show that you've been paying

your bills, that you are earning a certain income yeah, credit score is one way of doing it, but for many people, especially younger consumers who don't have that longer credit history, this will be a way to digitally demonstrate all of the ways in which they are meeting their obligations. and on top of it, we have put in place some important privacy protections to make sure they are not bait and switches where your data is being misused. >> what are those privacy protections? because we talked to the big banks and they will tell you that they are very concerned about scammers being able to work their way around this the banks spend lots and lots of money on security. what happens if a scammer gets ahold of this information? who is held responsible? >> well, the way it work is this -- under our long-stanning financial privacy laws, you get one of those notices every year that essentially tells you we are going to do what we want

with your data, but under these rules, when you permission your financial transaction data, it can only be used for the purposes that the new company is offering they can't go around and sell that data for some other purpose, and the reason why this is also important, it's not just stopping scams and fraud we don't want your transaction history, becky, to be used to change or alter the prices that you see on airline tickets and so many other goods. we know with artificial intelligence that data can be valuable but we want to make sure it is not abused or misused either. >> but have you guaranteed the safety and security of that data when it's being brought up by a third-party app? the bank is already secured apis that have been developed so they can transfer this information. this will require them not to go

through the secure apis. >> that is not true. they would often use those security apis and the companies receiving them, whether another competing bank, they, too, are responsible for making sure that data is secure and that the data is not misused >> how do you oversee that how do you make sure that that -- by the way, if that information does get stolen at some point, who is responsible for that the bank that originally sent it or the fintech that picked it up >> banks are responsible for securing data and so are fintechs you're right we need to make sure that everyone is being watched as to make sure that they are adhering to those standards of the law, but banks and nonbanks alike are required to have data security standards to not allow those leakages now, we are urging, of course, all of the industry players, they need to modernize, too,

their payment rules and other network rules that they control to make sure that we can take, you know, take on where there may be frauds and scams, but certainly the cfpb and law enforcement will be living up to our role on that, too. >> it seems to me there could be potential for additional fraud that is picked up along the way. >> well, that will happen in any circumstance in a digital economy. we have to make sure that there is some degree of rules. at the end of the day, we should be embracing competition >> sure. >> we should use digital technologies to allow people to switch more seamlessly when the fcc did decades ago, they did one thing to allow you to port your cell phone from one cell phone to another, rather than having to change it and it made sure to make sure consumers could switch more seamlessly and be able to import. >> that was a good move but i'm

concerned more about this simply because it's my financial information that is much more -- there is much more writing on this than my phone number and fewer reasons to steal my phone number than there is to steal my financial information and get a ahold of this. my point is if you're forcing banks to share this information and third-party on who is sharing it gets hacked, who is responsible for that would the financial institution be responsible for it or the original institution you made sure the information is it the consumer >> becky, right now, the way a lot of this information is being shared is something called screen scraping, where you actually hand over your user name and password to a new provider to be able to essentially back door log-in to your online banking. >> why don't you make that illegal? that sounds like a terrible idea >> this is shifting that away from. >> it doesn't make it illegal. >> by moving things to more

secure sharing, we are going to be able to sunset this practice of screen scraping and one of the ways we are looking to making sure all of this works is with higher security in ways that really make sure that the market is more competitive. >> right but the big banks say this is a vendor we don't trust and we have some questions about and they are not longer allowed to say, no, we are not handing this data over my question -- who is responsible for that if you're forcing them to hand it over who is responsible for any fraud that comes from it >> well, multiple parties could ultimately be responsible. it depends on really what is going on right now, when you hand over your payment information and it is hacked, you do have rights under the law to dispute those charges and then banks and merchants and others, they set up their own rules about how they reimburse each other. we ultimately want to increase data security in the system, increase competition, and, becky, this is a way better

system than we had in the past. >> i can understand the desire to have more competition it does sound like there are some questions who is responsible when that information is stolen. rohit, thank you for joining us. >> thank you, becky. you're watching "squawk box" on cnbc. i'm andrea ross sorkin along with joe kernen and becky quick. a bunch of stories to tell you this tuesday morning is it tuesday? >> it is. >> the biggie. houston-base the activist jcp has a stake now in cheesecake fae factory. meta bringing facial recognition technology back after shutting it down three years due to a backlash now meta will deploy the tools

on facebook and instagram to fight security scams and help users who lost access to their accounts and meta people could opt out and data will only be used for comparisons. nike closing a deal to renew its exclusive contract to be the uniform in a power provider for the nba, as well as the wnba for another 12 years that is a decade plus. nike's last deal was reportedly 1 million dollars in 2017. the new deal with be characterized, quote, much bigger than the previous contract. we are waiting for verizon and the stock is a little bit off. now 41%. $1.19 a share was a penny ahead of expectations. revenue was just shy 33.33 billion, just shy of 33.43. the company also affirming

guidance for the year. i think they said 450 to 470 and estimate is 457. hans vedberg said it was a pivotal quarter for verizon and transformative strategic moves, he says. the company is under taking and continued excellence total broadband net additions 389,000 and ninth consecutive quarter with more than 375,000 broadband net additions. 12 1/2 billion was the highest ever reported adjust ebit. a lot of metrics are similar but not exactly like some of the other companies that are in this space that have everything that the other companies have, but a lot of different moving parts. fixed wireless. >> the phone in your home. >> right. >> yeah.

sounds like jumbo shrimp. new estimates of the revenue raised from former president trump's proposed tariffs would tak m make it potentially one of the biggest tax hikes. steve joins us with the details. >> good morning. the conservative american enterprise institute says the taerves tariffs proposed by former president trump would cost americans as much as $3.9 trillion senior fellow at aei says that would amount to one of the biggest tax hikes since at least the 1980s. he said it would be like any other tax increase and have a negative impact on growth and employment and hurt u.s. exporters. trump said the tariffs are paid by foreign companies and boost u.s. growth by bringing manufacturing back to the u.s. most economists from the right and left disagree. in fact, conservative economists find tax cuts will boost growth,

say the tariffs could nearly offset all of those pro-growth policies and their benefits. a paper by the conservative constitute says, quote trump would have almost unilateral authority to enact these tariffs when the constitution gives congress the sole authority to raise revenue, it has seeded tariff authority to the executive branch over the decades. clark packard tells me that all of the president has to do is declare a national emergency and he can implement any tariffs that he likes. the law doesn't specify what constitutes a national emergency and courts have been reluctant to review such findings. now packard says those tariffs can last a year. congress has the ability to override it but needs a veto-proof majority. recent efforts by congress to take the authority away from the president have failed. so nothing stands in the way of president trump and across the

board 20% tariffs if that is what he wants to do. some said on our air here that tariffs are negotiating tactic but the former president has talked about them more as policy and his other plans appear to count on the tariff revenue, joe. so that is what people are saying about these taerveriffs h now. >> yeah. a strange place we find ourselves. the bipartisan agreement is on things that -- both sides say they are against and, i mean, we still have the tariffs that are left on and it's very confusing. like it's two brands of populism we are seeing in this election, steve. not surprised the conservative think tanks, any type of tampering with the free markets and trade is of interest to those guys and gals. >> yeah. joe, i've been thinking about

this a lot you know, i lived in russia six years. >> we know. >> i can tell you all russian products suck. i guess i can say that on cable, right? >> maybe. >> i'm wondering about whether or not they were terrible because of communism which removed the profit incentive or one that removed -- we can have a conversation about the protectism that would cause something in manufacturing if there was no outside competition to push them forward so that is something else to figure that is not baked into these numbers. >> i don't know what you call them something or other that pushes a lot. some would say the new nafta deal, whatever it's called, a new one, that was a result of

threat of tariffs that never really came to be. >> you know, joe, if that is the story, then i think a lot of people don't have a problem with it it's the negotiating tactic. but then when you start building your economic plans on the revenue from the tariffs, it's a little bit different in that regard, right? it becomes policy, not a tactic. >> i understand. but when we hear about how economists have scored the two different plans and a lot of the plans from the other side involve capital gains increases, corporate tax increases, as well as unrealized taxes on capital gains, none of those things are real either and that is how you get the nice deficit numbers for some of those programs both sides are in la-la land. >> except for one set of plans has to go through congress the other does not you can wake up in the morning -- joe, i reported this story eight years ago when president trump tweeted out the idea that he was going to slap

taxes on mexico and canada and that is when i found out he has this authority to do this. >> right. >> without congress. it's quite remarkable. >> if you're depending on congress to pass your tax increases and it's never going to happen. if the other side believes that the tariffs are going to raise the revenue for all of the -- and he can do it himself, one side is more likely to be able to do it, even though -- you know you have to really believe that it would work. the other stuff -- actually, vice president harris has been asked a few times if it's a split government, you're not going to be able, you know, to get these things through and she hasn't had a way of getting around that. all right. two weeks of this and then back to getting along, all of us.

maybe or maybe not maybe a new russia hope. when we come back, a breakdown of this morning's earnings and what to watch in today's trading session. later, investor paul tudor jones joins us for an exclusive interview. "squawk box" will be right back. at waystar, our mission to simplify healthcare payments has never been more important. we passionately believe that our software platform has the power to transform healthcare in the united states for providers and their patients. and we're not finished. waystar is purpose-built for this moment and waystar is the future of healthcare payments. now, we look to the horizon and we see the way forward.

rtx formerly ratheon has

better than estimates and revenue came at 20.09 billion dollars atop the expectations. the expectations had been 19.85 billion. rtx also raising earnings and revenue guidance for the full year. >> other notable earnings earlier this morning 3m is better than expected up 8 cents. they raised the low end of its full earning guidance and looking for $7.20 to $7.30 the low end had been $7 before also, gm reporting an adjusted $2.96 a share and that beat expectations of 2.43 a share on revenue of 48.76 billion for the quarter. gm also raising its low ends of the full year guidance for earnings per share as well and that stock is up about 0.08 of

a% joining us later is paul jacobson of gm i think we had a really good lead-off with financials historically the last couple of quarters, that wasn't very good. you work with morgan stanley, bank of america and goldman really performed well and what they said is expectations going forward are going to be better i think that was a good leading to earnings coming forward with the consumer and capital markets activity and if you look at kind of where they think, you know, business is going. that was a good lead-in. then you've got some good earnings coming, too but you got some companies saying things are squishy for them as well so you have to look below the hood and peel back the onion and markets is 5800 where the opportunities and ratheon has great free cash flow and gm is doing well as well. you have to look at which ones you want to own going forward for the next couple of quarters.

we know we got some bumps coming down the road. i think cash flow, earnings are going to be huge and those that can protect margins because companies are raising prices the last two years, we know that for sure it's the one that can actually raise revenue going forward and not just price. >> okay. what companies fall into those expectations for you >> so as for us if you look back some of the commodity companiesi think copper companies will raise prices and not enough in supply you get a bump in the road i like the comomodities and energy companies when you're selling ten times earning. american express down 5% since they had earnings but they are looking at double-digit growth companies that are growing look at delta. delta is growing so fast, the stock is trading at seven times earning. they are going to basically, i a couple of years, pay off all of their debt. they will not do that but they will increase what they are spending for their loyal customers.

i like a bunch of these companies that i think are going to grow the next two to three years. >> we were talking about lithium discovery in arkansas. that is like a sea change you rarely see in a commodities business i think you like copper better. >> i do like copper but back to slumberj can find companies find more lithium there are ways to play this but i do think you have to be in the commodity space whether it's copper, aluminum or even steel we don't have enough of that if we are going grow the way we want to grow each if it's evs and going to other type of businesses that have to be productive to save energy. >> we have gm coming up, speaking of evs. >> it's a good company and i think the head winds will be strong and ask us how are they going to compete in the ev space and in the robot space stock has done very well

great cash flow but the reinvestment is going to be very interesting. >> so interesting to think a car company now has to compete in the robot space all because of tesla? >> all because of tesla, way mo and other things coming at it and how do you maintain the margins in an ev space where you have batteries, to your point, lithium. is there a whole different way of selling these how do you service them? i think the stock has done well but it trades at a single multiple and it's hard to get it over that. >> thank you for coming in today. great to see you. >> thank you. still to come, ukraine, the middle east, other geo political hot spots, mike gallagher, head of defense, joins us to discuss how the election could shape foreign policy. >> i think that empathy is an important thing but my shoes will never fit on your feet because chances are my journey is different than yours, so open dialogue is so important

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welcome back to "squawk box. vice president harris and former president trump have very different approaches to foreign policy as the election grows closer mike is joining us as a representative for wisconsin good morning to you. i'm curious if somebody is at a cocktail party with you and said what do you think the distinctions on foreign policy are straight up what you think they would be if you said a sentence >> i think a much stronger military deterrent under trump a much more hawkish approach to china and that is really i think where the biggest difference emerges. the biden administration started off with a lot of continuity with trump's china approach. midway through the administration, they shifted and they engaged in this sort of

intense diplomatic approach. they sent every major cabinet official to china in an attempt to turn down the temperature i think you can expect a more approach i think it would be largely populated with sort of reagan-ite national security and walk softly and carry a big stick. >> who do you think would be a part of his cabinet? that is a big question. >> yes i think the secretary of defense, the names you here, tom cotton, mike pompeo and secretary of state, big haggerty and these are all serious and smart, aggressive people i think that would be a fantastic team i hope trump and the trump transition team takes a look at all of them. >> steve liesman was talking earlier about tariffs and talking about even from -- wait. economists economists on a bipartisan way say that these tariffs turn in

to taxes on the american people. do you agree with that >> well, tariffs do -- do come with cost. i think you have to make a distinction between the 232 tariffs i had opposed. these are the steel and aluminum tariffs. i think it was an exaggeration of the intent of the law and not a threat from the canadian steel and aluminum i thought the 301 tariffs trump put in place and biden partially put in place i think a broader dynamic. as we have a more intense or antagonistic relationship economically with china, we are going to have to have a pro-active positive trade agenda with other parts of the world and we need to break down barriers to economic cooperation in a free world. that is the path forward. >> you would be in favor of tariffs in china but not the allies >> no. i think we should expand our partnerships with the allies. >> he is not talking about that, at all he is talking about put up 200%

tariff on deer, if they move some of their stuff to mexico. >> i suspect president trump, as was the case during his four years in the white house, is using this as a negotiating tactic we will see. he doesn't have the opportunity to pull a nixon go to china on the trades for the talk about economic policy which is very important, if we don't fix our military, if we don't fix our hard power investments, none of the rest of it is going to matter and there we have a massive problem with our defense industrial base and our stockpile of critical munitions is dangerously show. you have a smart audience. they are looking at numbers all day and there is almost a perfect correlation between stockpile and peace and stability is in the world. we see the leader of china go to russia this week is because they sense an opportunity to displace america as a world sole super power because our military --

>> do you think under the trump administration 2016 to 2020 from a budgetary perspective as it realities to defense that he did anything that you would say was helpful to either reducing costs, helping the defense department that is somehow different than the biden administration >> well, i was on the armed services committee during those years. what usually happened is the defense department submitted a budget that was insufficient i criticized the secretary of defense and trump at the time. then we, in a bipartisan parks, would have to overrule that. we did increase defense spending but we just put a down payment on fixing readiness issues that the result of the defense sequester under the obama administration we didn't rebuild the navy and didn't transform the fourth estate and didn't modernize the software here. we didn't do the transformative things that will be necessary in order to bend the cost curve,

rebuild our ship building industry base in particular and maximize production of critical -- >> you think he would do that somehow this time and why this time and not that time >> it depends entirely on the team he puts in place. if you look at the history of the reagan administration. it required the president to backing a talented secretary of defense and very talented secretary of the navy and they then had to go to war with their own bureaucracy. if you negates, he had to go to war with his own bureaucracy to fill the m-rap i was the beneficiary of when i was down range in iraq and it will require that same presidential leadership combined with the talent in the form of a secretary of defense who is willing to push the bureaucracy to this day. >> reagan is criticized today on spending too much money on defense. >> i won the cold war so that is not bad. >> certain things -- as opposed to things you spend money on that are absolutely useless. >> part of the problem, too, the military is a microcosm of the

rest of society. the money is not going toward the weapon suspects and what enhances -- same with health care health care, retirement costs are consuming everything and that is largely mandatory spending that doesn't even get congressional review every year. that is the fundamental problem we need to fix but neither party has exhibited enough willingness or courage to fix it. >> fixing the military or the benefits >> i think you can first attack the largest branch of the military which is not the army it's civilians over 800,000 people i think with advances in a.i., we have an opportunity to automate a lot of those functions and reinvest it in the army, navy, air force, marine corps the entire acquisition work force is larger than the united states marine corps. >> do you like elon musk to take a look at these? >> i find what elon is talking about extremely compelling and i've had disagreements with elon on twitter about his views on china, but the space xx x storys

remarkable. >> you want him to invest in innovation and you don't want him to cut the budget. he wants to cut the budget i don't know if he wants to cut the defense budget but he wants to create efficiencies. >> my overall view is that you can cut butter or certain aspects of the welfare state and invest that in the robust military deterrent you want a defense budget that at least keeps pace with inflation but there is a lot of room for savings within the defense budget the property, you know, the navy owns a bunch of golf courses and hotels that it doesn't need to own. it takes $15 billion a year, $10 to $15 billion a year goes unspent. congress proappropriates the moy to the milt and goes into there five years and back into the treasury use that give them the flexibility. >> which job do you want >> my wife is going to give birth in twins in a month so i will not be taking a job other

than a father. >> what about boeing from the perspective of the defense issues all of the issues the company is facing right now, how do they deliver on defense and what happens if that company really gets in trouble if they can't settle this issue? >> it's a massive problem for the defense department so we need boeing to transform and i think we need to partner i think creative paertnerships with boeing and other companies presents the way forward manufacturing base has been eroded ever since we let china to the woo four of the top ten american companies were manufacturing companies and now none of the top ten are. i think spacex is number 11, the closest thing. we need an industrial renaissance here in america and particularly to do that we need to leverage what is our asymmetric advantage and the weapons great software we can produce and produce a digital twin from the fact ril to the fox and map it and get more

innovative what spacex has done and what -- is doing on a daily base. >> mike, thank you. > mi uays fun to be with you. >>congp next, we should mention gmc cfo will be back with us. we are back in a moment.

welcome back let's bring in general motors cfo paul jacobson on a morning where gm beats on the top and the bottom line by a wide margin paul, i'm looking at the numbers and it's pretty clear that the

strength, it's not entirely because of it, but a good chunk of the reason why you've done so well is the strength of your internal combustion engine business how have been able to maintain your pricing that we saw the strength of in the third quarter? >> well, good morning, phil. thanks for having us today it's a really tribute to the men and women of general motors from design to engineering to manufacturing to administration. it's really a team effort but it starts with the quality of the products that we have. we have been in a refresh cycle that i think has kept us ahead of most of our competitors and you've seen that, not just in pricing but market share and demand for our vehicles. it's a fun momentum to be a part of. >> you were strong in the u.s. you had another quarter where you struggled in china a big loss what 137 million dollars. i think a lot of people look at what is happening in china where you've lost a lot of market share and they say it is because the chinese brands are norg

aggressive or they are turning away from automakers like general motors >> we knew coming into the year that china was going to be a problem for us we had a lot of inventory with our joint venture partner. our retail sales picked up in the third quarter and we have been able to work down that inventory and we are about 50% of where we were at the beginning of the year. so we are making real progress we have got a number of meetings with our partner in the fourth quarter. we have talked about needing to make changes to the business, bringing costs down to be competitive in the new market that is there. we think that -- we think that we can turn it around. >> but to get back to my question my original question what is the reason for the loss in share is it ultimately the aggressiveness of the chinese automakers or the chinese consumer turning away from western brands and western automakers like gm >> well, you know, that has been something that has been going on for a couple of years now, as the chinese consumers really migrated to new energy vehicles

across the board but when you look at our portfolio, we got a lot of ice vehicles over there and a number of good evs with our partnership sgm and the mini-ev and others like that and bringing in premium imports. there is sizeable market for us even though it shifted i think we got into a point we had pretty sizeable inventories builds that were causing pricing issues for you us, et cetera we think we can adjust the business and work. it might be smaller than it was historically but something that we can put together and be successful there >> paul, you had success in the third quarter with evs and especially the ev sales but you're not fully profitable yet. you're profitable on a per unit basis but not fully profitable when does that happen? >> we are makingo progress you saw when you were in spring hill recently for investor day, we havegot great infrastructure not just in our battery cell

plants that we got where we are the largest producer of cells with our partner lgs here in the united states, but also we got a lot of flexibility in our assembly line where we can produce ice and evs on the same line in spring hill. we try to build a structure that is fedexible and we know ev demands will have ebbs and slow and saw it slow down earlier this year but a big pickup in september and i think that was some of the vehicles we brought to market. we sold our retail sales were up about 50% in the quarter as we continue to scale, os as we get those scaling benefits and grow into the infrastructure we built, we got a really good path to profitability and feel proud of the team for the progress that we are making >> paul, it is a busy morning with a lot of earnings reports and a lot of interviews like this one that we are going to be packing in to "squawk box. thank you for joining us this morning. a morning that gm beat on the top and bottom line.

thank you. >> we want to get it over to morgan brennan with lockheed market results. >> 680 per share but revenue up 17.1 billion dollars and missing the mark defense contract is impacted by a lack of funding by fighter jets as it negotiates lots 18 and 19 with the defense department that is expected to be resolved this quarter according to the their cfo. segment operating profit and eps and recash flow and raising the dividend and raising the stock they post 166 billion dollar backlog and led by missiles and fire control 2.7 was strong lockheed cfo telling me demand is, quote, very, very strong and pointing to gmors, the artillery rockets that are used in ukraine and other places and missiles are produced for the air force and navy and they make a missile defense system which is what the

u.s. is supplying to israeli along with troops and he notes that is already in israeli on election and defense spending currently set to grow 1% due to budget gaps our base forward is no supplemental you but if there are that would represent upside to the growth framework we are laying out management will lay out that multiyear strategy this is 2025 through 2027 on the 11:00 a.m. eastern conference call. guys shares of lockheed martin, looks like unchanged right now but the stock is trading right near all-time highs it's not just lockheed seeing a strong defense demand. rts backlog surge last quarter and defense is strong and ge aerospace. you just had a conversation with the representative here, too back over to you. >> yes, we did thank you, morgan. coming up, paul jones on the markets and election and fed and much more in an exclusive interview that you can't afford to miss.

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still to come this morning, how the harris campaign is thinking about ways to tax billionaires later, an exclusive interview with paul tudor jones.

that is live coming up "squawk box" will be right back.

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welcome back the results of the final cnbc generation poll are in that poll surveyed just over 1,000 people across the country from ages 18 to 34 according to the poll, top issue when photoivoting for president top is the economy megan joins us right now with more hi, megan. >> that's right. the root of the issue for the harris campaign has been the proposal to tax unrealized capital gaines we heard mark cuban on the show saying they're not going to pursue that but we have not heard anything from the campaign itself so i've been talking to folks in and around the campaign and trying to get a

sense of what's going on i'm told to focus on the language on the trail that billionaires need to pay their fair share they need to find a way to derive revenue from this class of americans so i heard there's a proposal that would tax billionaires borrowing if you're taking a loan out and funding your lifestyle with the loan they would tax the amount of the loan. >> that would make sense if you're using it as cash and income it should be. if it's not stored away. >> that's the argument in favor of it. depends on how it's structured but there is a proposal that said it could raise $100 billion over ten years but what the argument is there's fewer issues than there are with unrealized capital gaines. there are no liquid issues. >> no constitutional issues. >> especially that one >> that makes a lot of sense and

we've said that for a while. the question is how much money is there if you do that. the second question is, if this is what you think, why don't you say that >> $100 billion is not a lot of money, when response for federal budget her deficits modelling now at -- >> i was going to ask, how much is covering home healthcare till death under medicare >> it's not a lot of money to go after this plan. >> how much is this? that's a proposal too. it's got to be -- >> it doesn't offset. >> it's got to be multiples of that. >> i think that's what's so frustrating about the campaign, not knowing the details on anything having people around the candidate saying i hear he or she would do this, not having it put out. seems like it's a lot of pandering on both sides to buy as many votes as they can. whether that's in the form of tax cuts or giveaways and not a lot of measures on how you end

up paying for it. >> exactly i said why are you letting mark cuban out here being the face and not yourself. >> because they don't want to alienate other voters. that's the issues. >> when i said this matters to so many people someone told me they would tell you you're crazy if you told that to the campaign this matters the defense is they don't think it's a moving issue the last two weeks of the campaign but they don't want to alienate. >> they don't want to alienate the base and their big donors, that's the issue. >> exactly they'd rather let cuban talk about it even with trump on the attack but i agree with you, especially reporting on this campaign, trying to get concrete details out of them has been difficult. >> we talked earlier today about how donald trump is promising tax free or tax give backs to 93 million americans. >> talking about deficit impact,

exa exactly. and then there's the congress question that joe was raising earlier with steve liesman if we have adivided government it's unlikely any tax on the wealthiest americans get through but at least this is one proposal >> thank you. >> tax increase. they have a picture of elon musk when they talk about billionaires he paid $11 billion in taxes when he sold some stock. so elizabeth warren and all her constituents will never pay that match. maybe they do but barely. next, the next move for bitcoin we'll talk crypto after the break. and then later eric rosengren joins us gan stanley.

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it is just before 8:00 a.m. on the east coast and you're watching "squawk box" here on cnbc i'm becky quick along with joe kernen and andrew will be joining us in a few minutes. among today's top stovries general motors reporting earnings above expectations and raised the full year earnings forecast but they struggled in china

losing more than $100 million in the quarter. here's what the ceo told us about china in the last hour. >> we're making real progress. we have a number of meetings with our partner in the fourth quarter we talked about needing to make changes to the business, bringing costs down to be competitive in the new market there. we think we can turn it around >> in other corporate news, activist investorer jcp management wants the cheesecake factory to spin off three smaller brands into a smaller public company, shares are up on that news by 3.6%. and suing artificial intelligence perplexity a.i. saying they're copying the publisher's content. they're calling it a scheme to compete for readers while free writing on valuable content. basically taking their content using it without making any

payments >> what are the lesser brands of cheesecake factory >> new ones they mentioned i never heard of them. one is called flower child another one is an italian brand. and a third one. i can understand wanting to spin them off and have them do things this activist investor has offered to help by sharing in the spin off cost. you may say cheesecake factory may say we're going to spin it off and create value for all shareholders there. >> you don't know the individual concept. >> no. >> the flower child -- >> it's healthy eating >> i looked at it i was like you see all these -- >> cheesecake is not healthy price of bitcoin near the 67000 -- >> not so much >> that's a shocker. if it isn't, don't tell me.

>> it's good for you cheese and cake. >> i don't want to know. 67,000 this morning. crypto is -- this currency up about 125% over the last year. joining us is eric golden. we haven't had i guess developments since the etf, have we and that's really what's caused this recent move we got as low as 16 at one point, 16,000 in the last year and a half, two years? >> yeah. >> so 75 to 16 now back to 67. most of it on the etf? hash rate records, what is it? >> i think it's three things the first is in september we saw central banks around the world cut rates. 21 banks cut we haven't seen that coordination since covid or the great financial crisis stocks are all time highs bonds all time tights we're stimulating a robust economy

the second is the election we have whether you believe the betting polls, actual polls, the market sentiment people believe trump is in the lead and if trump wins that's bullish for crypto and finally the etf is probably the most effective product recently etf has raised 20 billion in 12 months five times faster than gold got to that level so every asset management firm has to decide what's our position on bitcoin, what are the products we want to launch >> i'm trying to remember. what was the most recent surge in gold to new highs that was partly the fed i think in printing more money but there are a couple of other things where bitcoin was noncorrelated with gold it looked like gold was doing what it was supposed to do, and bitcoin was acting like a risk

on, risk off asset is it cracked up to what it's supposed to be, only $21 million debasement means it's good for bitcoin? it doesn't act like it's truly going to do that you think eventually that will be born out. >> if you zoom to nothing it's a nothing burger we have so much volatility in the asset class it's not gotten to the point where gold is truly the flight to quality. i think both candidates are thinking of increasing the deficit trillions of dollars inflation isn't going away, the fed is cutting lots of reasons the investors are concerned. >> if it was digital gold -- >> it should be up. >> it's acting more like a risk asset now. the fed cut aggressively and told the market it was going to cut more the volatility in the bond market right now is the market bringing back that time line they're not going to cut that

graefsly, rapidly but if the fed did follow that path you expect all risk access to be higher i expect it in '25. >> everyone has an ax to grind but now i'm told that vice president harris is now amenable to crypto or at least been for people that like crypto and don't want to say, you know, vote for donald trump they're saying i'm hearing good things from kamala. has she been intimating that she's friendly yerier towards bs elizabeth warren and bernie sanders, people do not like crypto. >> this is too late to message they might be pro crypto i think it's falling on deaf ears. >> if she wins the election do you jump on the band wagon, you said you were going to warm up to us. >> yesterday you had mark cuban

on, and it was andrew that pointed out, the democrats sidelined elon musk at an ev event, going after crypto, there have been a lot of relationships that have been mishandled. if harris becomes president i'd like to see those rebuilt because this is a growing and important asset class for the world. we can't turn our heads because there's a couple of senators that really dislike it. >> so it's an asset class for the world. >> i think it is >> if you -- i -- if you listen to the story, the unbanked and, you know, individuals that are in high inflation countries that all you need is a phone, really, right, you can be banked and protect your hard-earned cash, if you're in a place where there's 20% inflation. it seems like the unbanked it's a natural for the unbanked. but is that really happening >> you're correct.

developing nations bitcoin is an important core asset. >> it is. >> to your point, if you have run away inflation it could be a safe asset stable coins will be the most important topic in my opinion over the next 12 months there's $6.5 trillion in money market funds this week you heard stripe acquired bridge for a billion dollars i think it's a huge moment for stable coins and i think that will be the killer application that lets people adopt crypto >> did you hear strip acquired for a billion dollars -- >> no. >> you told me that i -- you were wrong >> i'm sorry. >> i had not -- >> it was all over twitter. >> now i heard it. it is? i need to pay more attention but we have to know so many things. >> i know. i don't know how you do it. >> so you're impressed >> very impressed. >> great i'm impressed with you too let's get dom, i don't have

to say it. you know every day what you do impresses me but you know that. >> i feel a lot of love from you, becky and andrew. >> you do. you get a lot of love from this show. >> i do. not a doubt in my mind which is why i wake up early with you in the morning and come out -- >> that's a little tmi but go ahead. >> all right let's start with your morning movers here and some movement here with regard to the names that we kind of know and understand, blue chip names. starting with 3m up 5.5% after reporting a beat on the top and bottom lines the maker of building materials, adhesive, medical supplies, posted its third consecutive quarter of profit growth and raised the profit forecast in anticipation of a boost in consumer spending due to future interest rate cuts that was part of the conversation you just had. verizon reporting before the opening bell, slipping by 3%

after missing estimates on revenue but beating on third quarter eps. reaffirming the full year guidance the ceo is touting their pending acquisition of frontier communications as helping quote set verizon up for disciplined growth so down about 3%. and ge aerospace, down about 5% right now despite beeting estimates on profits and revenues and raising its full years earnings per share adjusted revenues a miss for the quarter. stock up 81% so perhaps a sell the news type of situation developing at ge aerospace, becky. back to you guys >> dom, thank you, great to see you. when we come back, former boston federal reserve president eric rosengren joins us. and later we have paul tudor

jones. this is "squawk box. stay with us daughter: hey, dad. dad: hey, sweetheart. daughter: what are you doing? dad: i'm gonna clean the fence. daughter: it's a lot of fence. dad: you wanna help me? dad: aim at the wall, but get closer. daughter: (gasps) what the?! daughter: alright. dad: side to side. when you work with someone who knows a lot and cares even more... you can do this. ...you're unstoppable. (♪♪) wow... are you kidding me? you can do this. at truist, we believe the same is true for banking.

i haven't seen any information that would suggest we wouldn't continue to reduce the interest rate consistent with achieving that durable expansion with price stability 2% >> that was san francisco fed president mary daly speaking yesterday with "the washington journal. also yesterday neel kashkari repeated his call for modest, his words, rate cuts over the next few quarters we heard the same from kansas city and dallas' fed presidents at the end of the week they start the communication blackout period ahead of next month's

interest rate decision joining us now former boston fed president eric rosen gren, now a visiting scholar with m.i.t. let's focus on what you heard from san francisco fed president daly she seems to be saying this very difficult line that the fed is trying to follow, that they're being successful that inflation seems like it's headed in the right direction and labor market is going pretty well too so that's a -- such a difficult needle to thread you think the fed is on the right track or are there trouble signs? >> i think the fed is on the right track, and as you pointed out, inflation has come down, and while corepce inflation is

2.7% that's still higher than the 2% inflation target as a result of oil prices being soft we have a total number that's 2.2% so that's close to the 2% inflation target and the unemployment rate is 1.4%. the committee when it met in september thought we would end the year at 4.4% so the labor market already is doing better than the fed expected at the last meeting so i think it's well set up for a 25 basis points cut at each of the next two meetings. >> all these data points unfortunately are things that happened in the past and if the fed were to try to look ahead, they have to use market signals that's why i think maybe there's at least some eyebrows being raised about how -- you know,

whether this is -- whether 50 basis points is necessary or whether we get another 125 or whatever it is talking about the ten year, the yield has gone up every day. gold is hitting new highs. i don't know what that's saying, we are running a large deficit and again we have high total debt stock market was down yesterday but it's, you know, within a -- a hair of an all-time high across the board in all of the -- and you have, you know, forecasts for gdp up at like 3%. what is the reason -- how do we know that things aren't hotter than they should be. >> you have to rely on forecasts. one of the challenges of forecasting is we have an election coming up in early november and the fiscal policies suggested by both candidates

probably is significant deficits going forward and at least one of the candidates is highlighting significant increasing in tariffs. so it makes it a little bit more difficult to forecast. you're right, that ideally you don't want to be looking at where we were a month ago which is reflected in the current data you want to actually estimate where you think the economy is going over the next six months and i think the movement that you've seen in the bond market is, in fact, reflecting people thinking more carefully about the fiscal policy implications so highly stimulative fiscal policies mean we don't need a monetary policy so if you're anticipating significant cuts by the fed it's probably assuming that the economy continues the way it's been going and that we don't have very stimulative fiscal policy if instead you think fiscal policy is going to

be very different that brings uncertainty into the market and i think some of the markets we've seen over the last week reflect that > >> last week we had a guest talking about the open banking rules where the big banks are required to share consumers' data with any third party that suggests it. he suggests that this is needed for more competition the big banks will push back saying they're worried about safety and privacy issues or just straight out fraud if they're forced to give this information to third parties that they don't trust. what's right you used to oversee the banks, which is the better opinion, do you think? >> i think we have to worry about privacy and how data is used so as you know, in europe they pay more attention to the privacy of individuals' data i think there is a tradeoff between more competition and the

advantages that data provide and, you know, potential costs of giving people's data in a widespread way and possibly allowing people that shouldn't be seeing it to actually see it. i think this is one of the areas where the election may make a difference that my guess is that at least one of the candidates is unlikely to go forward with those proposals. so there are a number of areas that could change depending on the outcome of the election and we have an election where the two candidates had different views on things like bank regulation, but also on monetary policy >> i guess i was just seeing if you were just historically to tell someone, the stock market has been ripping and is the economy is ripping and you know, gold is up and we're cutting rates after what was very difficult, you know, to get back to normalcy, up 500

basis points that was hard work to get there here we are. for what reason? at 4% unemployment, what reason? why focus on 4% unemployment as a dual mandate >> i think it's a combination of both but right now the fed funds rate is trading between 4.75 and 5% so if you think inflation is currently let's use the 2.5% that's very tight policy by historical standards so if you think that the economy is continuing to grow at 2% or stronger, and that inflation is coming down and it has been coming down pretty consistently over the last year and a half. then monetary policy is probably too restrictive for the current conditions that we have. that doesn't mean that we're going to get down as low as 3.25

or 3.5 quickly if we have a growth in the economy. so i think it's pretty clear what the fed fund's path is likely to be over the next couple of months i think forecasting out next year becomes more problematic until we have a better sense of what the candidates are saying actually comes true. >> eric, i had a separate question for you this morning. which is "the washington post" is reporting that trump advisers have been mulling this idea of potentially trying to demote michael barr, who's on the board of the fed overseas. the sort of bank supervision aspect of the job. i'm curious what you think of that is that something that you think is plausible could former president trump if he becomes president do such a thing? >> so i'm not a lawyer, but i

would say it would be unprecedented, and it's not even clear to me -- they're nominated for vice chair for a four-year term it is not clear what powers the executive branch has for the independent federal reserve officials to actually demote them so i think it would likely be contested in the courts, not be decided for some time. it's only a four-year term my guess is the courts will still be deciding it by the time the term is up >> eric, thank you this morning for your perspective on all of this when we come back we have billionaire investor paul tudor jones joining us for a special and wide ranging conversation. we'll talk about the markets, the economy, the fed, the election and so much more but next we'll cover some recent medical and arphma headlines with former fda commissioner

dr. scott gottlieb stay tuned you're watching "squawk box" and this is cnbc 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! your record label is taking off. but so is your sound engineer. you need to hire. i need indeed. indeed you do. our advanced matching helps find talented candidates, so you can connect with them fast. visit indeed.com/hire

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welcome back there's the futures this morning adding to yesterday's losses but nothing too troubling yet, too significant. we shall see it is october. and a programming note, bill ackman will join us tomorrow at 8:30 a.m. eastern on set, yes, sir, yes, ma'am, look forward to that some big health care headlines since the beginning of the week those include four workers in washington state who are believed to have been infected with the bird flu. separately o novo nordisk's diabetes drug cut heart risks in

patients dr. scott lgottlieb is here do you want to start with the weight loss drugs or what's happening with avian flu >> that works we can start with the weight loss drugs certainly. >> novo nordisk this new oral pill looks like it's cutting risk of heart disease and many other things does this come as a surprise >> r no. it's a good result remember with this pill you're dealing with a lower dose of the active ingredient than the injectable formulations. so even though this pill is 14 milligrams versus 2.4 you get in wegovy how much of the drug is actually getting into the drug is less. only about .4% of the drugs from the pill get into the blood. so to see this kind of risk

reduction in severe cardiac events like heart attacks and strokes with less exposure to the drug, much less is getting into the blood and patients exposed to less of the active ingredient that's a good result. a 20% risk reduction with wegovy, that was at 2.4 milligrams, that was obese patients this study was done with patients with diabetes but not necessarily overweight. >> i know they want to get to the pills instead because a lot of people are averse to having a needle injection do you think it's better to do the needles to have a lower dosage or do you think it's just as well to go along with the oral >> look. the 14 milligram dose is only in dia diabetes they're actually testing a 45

and 50 milligram dose. that's in phase three, been there for a while. but they're testing higher doses for weight loss. to achieve the weight loss, the weight reduction you see with wegovy you need a higher dose of this oral drug it is possible that at those doses, 125 or 50 million grams you unmask more of the side effects. so that's tbd we have to see the data on that if you're looking to use these drugs for weight loss you can achieve a higher availability of the drug in the blood with the subcutaneous formulations. as i said, the oral dose, 14 mil milligram dosee saj isn't for weight loss. they're coming up with molecules that have the same effect so they'll be easier to manufacture

and formulate at higher doses. one of the challenges is they're can can ballizing this and there's a shortage of drug pucks if they go forward, that's going to cannibalize the injectionables further. >> the idea of the shortages has been where the fda has allowed compounding of some of these make it yourself drugs because there's not enough to go around. now you've got lilly with a lawsuit going after the compounding companies. what is the right suggestion there? if these drugs are hard to come by is it right to allow the compounding to take place? >> the fda does allow compounding in limited circumstances under certain conditions when there's a shortage of a drug the fda stepped forward and said these drugs are no longer in

shortage so they got sued and stepped back a week ago in the context of litigation saying we'll reconsider whether or not this drug is in shortage. it's problematic because it creates the perception that the fda is choosing where to enforce the regulations. they were put in force with result of tragedies from compounded products in 2012. congress pushed back on the regulations and this is one of the more difficult things i did when i was commissioner, trying to enforce the new law and rules because a lot of these pharmacies are prominent businesses in local districts. so if the fda creates a perception is they're stepping back based on policy considerations and cost considerations around these drugs potentially ahead of an election, i don't know why they did it it creates a perception of picking and choosing where they enforce the laws, that's going to make congress more likely to

step in and block them in the future i think it's a mistake to block them from the foemt.enrcen >> dr. gottlieb, thank you. >> thanks a lot. coming up, investor paul tudor jones joins us for a conversation stay tuned you're watching "squawk box" on cnbc

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we are here in downtown soho joined by a very special guest this morning, paul tudor jones, the founder and chief investment officer of tudor investment, and he's the founder of the robinhood foundation which is hosting its conference with j.p. morgan it begins tomorrow we're glad to have you on the program. >> good to see you again. >> we're now 14 days away from the election and i think everyone is trying to make sense of the market and where things are headed and going and maybe, depending on who you think is going to win the

presidency how that is going to impact us. so where are with e? so where are we? >> for me and the hedge fund world this is the macro super bowl coming up on november 5th some elections are not that binary this one is binary not so much because of which candidate wins but it's binary in the sense that what is the market's response going to be to either candidate if they win. so we can either continue down the path we've been on, which i'm going to kind of frame here in a second or we may have that point of recognition where all of a sudden the markets have different ideas than what the candidates have been espousing >> before you lay out where you think that piece of it is, stan miller said he's convinced by

market indicators right now that trump will win i'm curious if you agree with that thesis? part of it is he's looking at the betting markets, the shares of dgt, part of it he's looking at bitcoin. >> certainly the markets are saying he's going to win i think they're heavily skewed by republicans so i don't know if i necessarily believe the betting markets. but i don't have any great insights i really don't i would be more skeptical of on them than i would be normally. it's the same way in football betting you can get a huge bias where the line doesn't reflect reality. so i know what they're saying and i respect them. >> what about other investors. dan lobe came out with a report to his investors saying he's repositioning his portfolio around the thesis that former

president trump will be president. >> and i'm also -- >> you say also you repositioned as if former president trump wins >> yes i moved in that direction for sure. >> what does that mean >> it just means more inflation drags, which i'd love to get to but i think it's reality important that we game where we are right now. a where we are is an incredible moment in u.s. history what i want to talk about is, the debt trajectory that we're on so we've gone in the space of 25 short years to debt to gdp at the federal level from about 40% to almost 100% 60% in 25 years. and if you look at what our trajectory, what cbo predicts the trajectory to be, as well as what we see as -- and we're

going to project further than the cbo. i'm going to show you a chart. this is debt to gdp. so cbo says that we go from 98 to 122 i think 124. that's very conservative over the next ten years if you extrapolate that 30 years, you get 200% debt to gdp. so that's something -- obviously something that can't go on forever or won't and the question is, after this election, will there be some point of recognition, particularly with all the tax cuts that are being promised by both sides and the spending plans. they're handing out tax cuts like they're mardi gras beads, tax can its on everything from tips to tu can it's crazy what's being promised

after the election you have 7 to 8% budget deficits as far as the eye can see. the question is, will the markets allow either candidate -- i think under trump the deficit goes up by 500 billion per year under harris' plan it goes up an additional 600 plan per year i have a feeling all of those are just pipe dreams i think any of those being enacted -- >> you mean the tax cuts put on the table during the campaign. >> those have zero chance of being enacted. the debt markets, the treasury market won't tolerate it. >> why do you think the treasury market continues to tolerate it now? >> you know, it's so funny because financial crises percolate for years. but they blow up in weeks. that's kind of the history of them, right? so, for me, this election becomes one of those seminal points where all of a sudden let me really think whether this

proposition that the u.s. government is making me is something that i actually want to participate in, i just want to -- and i want to try to frame, in laymen's terms, let's assume that i make $100,000 a year you've lent me because we're such great friends, $700,000 that's what you've lent me and i come to you and say, andrew, i'm twoing to pay all that back to you in 30 years, but between now and when i ultimately pay you back, i want to borrow $40,000 every year for the next 30 years. and at the end of 30 years i'm going to pay the whole thing back would you lend me that money >> unlikely. >> i thought you were my friend! >> this is the problem we have. >> that's actually the proposition that the u.s.

government makes to every bondholder today that's the exact same proposition. so think about this. we owe 35 trillion, our tax take is 5 trillion. so we owe seven times what our tax take will be this year our revenues will be this year and our deficit is 2,000,000,000,002 trillion right now as far as the eye can see. that is literally the proposition that someone that the u.s. government is making to someone who buys a 30 year bond -- >> i'm not disagreeing with you. the question is life is relative so some people would say sure you can either buy bonds from the u.s. or some other country that has an even worse situation. >> or you cannot buy bonds. >> at all. >> right >> so anyway, i was watching this vince mcmahon documentary

and in it -- i love wrestling, particularly when stone cold and the rock and all them -- in it there's a term i never heard of called kfab and in wrestling parlance that represents the unspoken, unwritten agreement between the wrestlers and the fans about the elusion that's going on in the rink the suspension of disbelief that was going on in the ring is actually -- we know it's scripted and we know it's a performance but they ask us to think it's genuine and real -- >> that's what you think this is. >> yeah. we're in an economic k-fab right now and it's not just the united states it's the uk, france, greece, italy, japan -- japan being the b biggest of all the question is, after this election will we have a moment

here in the united states in the u.s. debt market where there's a point of recognition that's what's going to happen or what they're talking about is fiscally impossible, financially impossible. >> are you betting on aminske moment >> i am clearly not going to own any fixed income and i'm going to be short the back end of fixed income because it's just completely the wrong price but i just want to add one more thing. >> yep. >> this is why this election i think is so -- it's -- i find it so interesting because the candidates and the parties are so interested in winning this election but if you look at it certainly from a fiscal standpoint you win the prize and let me make it more complicated.

in addition to the problems we have fiscally, the united states has a net international investment position negative 80% of gdp. >> we have a chart on that, yep. >> and so, minus 80% of gdp is roughly over 20 trillion and that kind of shows -- that traces the history of our net international disposition. so let me define that real quick. it means foreigners own $20 trillion more of u.s. assets than we own of foreign assets. that's how you get to the minus 80% of the 20 trillion how do we get there? it's actually a good thing why do we have so many of our assets owned by the rest of the world? because we're the leader in technology, the greatest arena in free markets that there is. we promote and engender can i

use that word -- we promote and engender entrepreneurship. so anyway, think about this, the problem with having a $20 trillion net international investment deficit is that you're also beholden to the kindness of strangers. so now we'll have this election. the next president is going to come in, whoever that is, and they're looking at okay i have $20 trillion that could have wings on it. as well as i've got a fiscally unstainable path, what do i do that's why i tell you, i don't know if you've ever seen those goats that kind of perch themselves on the side of dams and you go how do they do that how do they hold themselves on the side of the dam like that? that's what i think the next

administration, whoever it is, is going to be facing. you're going to have to have the smartest and the most sensitive president, treasury secretary. that treasury secretary damn well better be from wall street and know markets it cannot be a corporate head that does not understand the financial system -- >> who do you think is going to get you that treasury secretary? >> i don't know. and frankly, let me say one last thing, our fed chairperson, our fed chairman and the next chairperson after that, the three of them have to be brilliantly connected to be able to stick this landing. because again if i look at debt to gdp, the path we're on, it's rising faster than the ocean -- >> let me ask this, and maybe we can show this chart. the only way to solve this is to

figure out a way to raise enough money where at least the math starts to make some semblance of sense. >> let me quickly show where we are in terms of our tax take relative to the rest of the world. there's a chart on that, shows five countries goes with the u.s. at the lowest end 29.3% of gdp to france at the highest end, you can see there's canada, japan, the uk. >> now before we get into our own math, let me ask you a question, one reason why some people would say the u.s. is as successful as it is is because it is a less of a regulatory state, less of a tax state and probably representative of that on the screen when you go down and say how successful is the u.s. compared to how successful is france you say france is less successful because its tax rate is higher. >> i would unequivocally agree with that.

there's a fine line, a needle you have to thread you can say one of the reasons the u.s. is dominant because we fast forwarded so much future income by spending so much in a deficit standpoint and it's really occurred, to be frankinht in 2016, in 2019, it was close to 5%, pre-covid, before covid and then of course, biden gets in and sees what trump has done and said let me raise you one with the inflation reactivation act and here we are today. can i just say, between trump and harris, you probably got the two people least suited for the job that's ahead of them least suited for the job that's ahead of them. that's why it's going to be, again, after the election, it's going to be so important and i do think they know -- i think we're doing also a

political kfab with them they know they're not going to do these spending programs it can't happen. >> if both of these folks are the wrong people, but it's still a binary choice, what is your choice >> i'm going to keep that private. and the reason i'm going to keep that private is because there's a lot of causes that i'm really invested in, robinhood is one of them, environment, and i'm going to end up working with people on both sides we're really a divided country right now. i want to make sure i have great relations with whichever administration goes in, because i want to continue serving the millions of people that i do and the billions of critters i love >> let's talk about taxes. that's how the many is going to get raised one way or another. i think we have a screen, if we could. it puts up a little bit of a menu i don't know if it's options >> there are plenty of options

>> there's not many ways to get where you need to go unless you start to do some of these things, maybe. so the question is of what's on the screen, you can let the tax cuts expire. >> can i say this? you have to let the tax cuts expire you have to let those expire that's $390 billion. we're going to have, again, we're going to be broke really quickly unless we get serious about dealing withour spending issues and unless -- we can either -- i don't know if we'll be able to cut spending that much 60% of our spending, our transfer payments. >> if you think we're going broke and you think trump is going to be the president, he's not going to let the tax cuts expire if he can avoid it. he does not want the corporate tax rate to go to 25%, as you're suggesting it will have to he's suggesting it should go to

15%. >> i'm saying just to get us to the point where we stabilize the gdp where it is right now, here's what you need to do ia need to let the trump tax cuts expire. that's $390 billion. you need to raise the pay roll tax on every working person 1% that's another big slug. >> what do you think that does to jobs? >> we're clearly going to have a period of contraction, which hopefully, that's why i was going to say it's going to be really important for the fed to be able to offset the fiscal contraction era that's going to come >> then you want to increase the individual tax rate to the top rate close to 50%. >> hold it, i don't want to do any of this stuff. what i'm telling you is that we have to be serious about where we are fiscally and so i'm giving you -- there's a whole set of options we could go in and cut 25% of the federal workforce. some people may do that.

there's a whole -- there's a website where you can look and play with all of the options you can raise the capital gains rate that only gets you $10 billion a year it doesn't get you what you need i'm simply showing some of the things you can do. yes, you would have to raise the tax rate on the top, i think, probably everyone over $200,000, raise that to 49.5%. if you do all these things, all these things, raise the social security from 65 to 70, if you do all these things, means test, medicare, if you do all these things, all you do is you get to a primary balance. what that means is you stabilize the gdp, you're still actually increasing your debt you're still actually increasing it because it excludes the interest cost, which oh, by the way, the interest bill this year is larger than every single line item except social security. larger than defense spending, larger than medicare >> i want to talk about why

you're here, which is robinhood and this conference. before we do this, given all the things you're saying, are you off buying gold and bitcoin? >> i think all roads lead to inflation. we're going to end up, so -- >> do all roads lead to inflation, therefore gold is a good investment, bitcoin is a good investment? >> i'm long gold, long bitcoin i think commodities are underowned i'm long commodities the nasdaq has also been great probably some combination. i probably have some basket of gold, bitcoin, commodities and nasdaq and zero fixed income if i had it on cash, it would be very short term. the playbook, you see it in japan, 2% inflation, 30 basis points overnight they don't want to raise rates the playbook to get out of this is your inflate your way out and you have a small tax on the consumer, and you run interest

rates and nominal growth rate -- interest rates below inflation and nominal growth above inflation. and that's how you reduce your debt to gdp. you're going to have the fed, they should be easing. >> you want them to cut? >> real quickly, every 100 basis points, given where our debt to gdp right now, every 100 basis points is worth about $90 billion a year to the deficit. $90 billion. so yes, if we're trying to stabilize debt to gdp, we want to run the most dovish monetary policy we can without letting inflation become too much of a tax on the citizenry so yes, all roads lead to inflation. that's historically the way every civilization has gotten out, they have inflated away their debts. >> i want to talk about this because this is also your super bowl of the year >> best day of the year. best day of the fall and that's our investor conference that sold out it's fantastic

we've got everyone from seth clarmen, jamie dimon, ken trope, and most importantly, you have to think about, i think about robinhood and i think about new york this way. you're only as strong as your weakest -- the chain is only as strong as your weakest link. the weakest link in any society are the most needy, the underserved, the people who are at the bottom. so that's what we do we're the spear point for helping those people in this city so we can keep a strong city and a strong society. >> paul tudor jones, kfab, right? that's the phrase? >> economic kfab >> fascinating thank you for this appreciate it very much. joe, i'm going to send it back to you, sir. >> very good all right, thank you >> he was saying the quiet part out loud this is what people won't say about the treasury markets and what's happening and the

potential -- >> our inflated way. >> how to get things under control. >> i didn't know, it's a total aside, andrew. we love paul's daughter, and we're big fans i don't know if everyone knows, zac brown band, he doesn't brag much, does he? >> this guy? >> yeah. >> he's not a bragger. >> not a bragger but i just found that out, paul. we're both fans. >> impressed >> very impressed. >> all right, tell him i don't think he has an ifp. programming note, by the way, bill ackerman will join us tomorrow at 8:30 a.m. eastern time a final check on the markets and if i had talked to paul, you know, i keep thinking about the 4.20 on the ten-year and the new

high in the gold and he's saying these things are going to happen. but these are little things that maybe indicate what he's talking about right now. >> he also said that he would not buy treasuries and that he would be short on the long end of it >> all roads lead to inflation >> which means bonds aren't -- yield might continue we may still be early. >> by the way, this is stuff that is, again, whispered about but not very often said out loud and not somebody saying look out, beware. right now, you're looking at the ten-year at 4.18 the two-year above 4%. you can talk about a lot of reasons that might be, but i think paul tudor jones laid out some big issues. >> he only -- you still do have to -- that's why i get excited about the idea, elon musk could bring some of the excess

problems, regulation, spending out of it, and then hope for growth because we're not going to solve it just from raising taxes. i don't think that's -- it's going to be a combination. >> you need to raise taxes and cut spendings. that's not what the political parties are laying out >> it's going to be solved through growth i think there's a reason, andrew is right, france is at 52% we'll never be france, andrew. i love france, but in terms of entrepreneurialship and everything we do so well here, make sure you join us tomorrow "squawk on the street" is next good tuesday morning welcome to "squawk on the street." i'm carl quintanilla with jim cramer at post nine of the new york stock exchange. david cramer is at the passive summit event in new york ten-year yield briefly piercing 4.20 q3 earning