moving to cancel qualcomm's license as it escalates a legal dispute. it's wednesday, october 23rd, 2024 "squawk box" qbegins right now good morning, everybody. welcome to "squawk box." we are live in sometimes square. i'm becky quick along with joe kernen and andrew ross sorkin. mcdonald's shares are down sharply. that is a dow component. you can see the pressure that it's putting on the dow this morning. dow futures down close to 1756 points s&p futures are down and close to 10. nasdaq is down about 56 points it comes after the dow and the s&p both closed fractionally

lower yesterday. nasdaq up several sessions in a row and seen gains there treasury market is something to keep an eye on yields have been picking up pretty substantially ten-year yield now at 422. the two-year is at 4.05. andrews, yesterday, in talking to paul turdor jones, he is worried about whoever wins the election is inflationary and he is moving away from treasury. >> he likes commodities and gold and likes the nasdaq also. >> i thought it was very strange that he almost is welcoming inflation as the only way out. out of options. >> otherwise, it's pretty extreme measures you have to take and spending cuts >> he'll be fine you know who inflation kills and so for us to handle our debt

problem, we got to inflate the hell out of our -- it's always been the way that countries get out. >> talked about this forever inflate your way out of these issues. >> i guess the least of really bad options maybe. >> i think what is interesting is he talking about higher taxes on companies and individuals >> every time he has been on, he has been a big tax guy. >> he says he doesn't want any of this. >> but i think when you've got billions, it's a lot easier to say we got to raise taxes on all of these people who have millions. >> you know what, though he is not the only walk saying it but the only one saying it outloud. you talk a lot of the bad investors we know they will add to up this and say the same thing. >> i know we are hearing about tariffs. i think there are good ways to

blow money and there are bad ways to blow money if tariffs are going to cause inflation, okay? and you want to inflate any way, at least you are trying to bring manufacturing and bring jobs. >> that is an interesting perspective. >> if you're going to i off the plate -- i'd rather inflate that way than with wasting money on government programs that don't work like installing ev stations and doing one in a year and a half for five or whatever it was that we spent. that is what i got out of it it was like inflation, i guess that is the only way, but it's just not a good way to run a country. you're inflating your way out of debt to make your debt less than what it really is because the dollars aren't worth as much. >> what is -- >> growth. >> growth is not -- not only do you have to have growth you have to collect meaningful more revenue and we do not. >> from the growth. >> correct i think that -- >> give it a shot.

maybe it's a too idealistic but what i'd like to happen. >> we showed a chart yesterday of percentage of tax revenue as a percentage of gdp and the u.s. is the lowest on the list. >> exactly >> lowest on the list. >> and countries with higher have terrible -- we have outperformed. >> i asked that question. >> i know you did. you know it then why are you making a point now that it's -- >> well, we only showed you, i think, five countries. >> let's just put it, it was japan, france was at the bottom, right? >> france was at the bottom out of 51. look at switzerland or a number of other companies on the chart you could move the needle from 29% of gdp to revenue to 30, 31, 32 and -- >> maybe, maybe. >> -- you would still have a pretty great economy. >> maybe. >> you would look at other economies are doing probably better than ours.

>> every day you brag on the u.s. economy versus the rest of the world. >> yeah. >> every day. >> uh-huh. >> but don't tie any of that to leaving more money in the private sector for innovation and entrepreneurship and all of these things we know work. >> look. we have a serious debt deficit problem. paul tudo jones pointed out we are carrying more on our interest and that is a serious issue. >> but -- >> you would let it ride >> i would try for growth and not comp.. i think it's a doom loop oh, we spent more so now, you know, we have got a higher deficit so now we got to tax more >> got to be a balance to this you don't think a balance -- >> i think we have a pretty good balance. >> you think this is the balanced version >> this is the balanced version. i think we tax plenty. >> what do you think was going on in the '90s >> what do you mean?

bill clinton -- back to the '80s when i think the prosperity we were enjoying 40 years where it came from when we cut taxes. >> massive spending. >> i understand who spent on defense. you have to look at the math and say there was enormous amount of spending in the '80s and in large part -- a whole number of economists conservative economists who will say that that spending is what led to some of the great growth that happened then. >> it's the age-old question for me is, you know, you try to keep taxes as low as possible to keep the private sector humming or do you just take your chances by going to a much -- you are taxed. you are taxed now. >> can you do both in moderation >> i don't know where you're going to go for it i know 1%, they accrue a lot of

the benefits but they did shoulder the lion's share of federal taxes. >> you know what i love? this conversation was kicked off by looking at a treasury board >> well, are we above -- are we at 43 yet? >> 422 we are watching the yields and be a conversation we continue. billionaire bill gates said privately he donated $50 million to a nonprofit organization that is supporting kamala harris presidential run according to "the new york times" report. gates has not endorsed harris and that he intended for that donation to remain private the donation to the nonprofit arm of future forward according to the times and so-called dark money organization that does not disclose its donors. following that report about bill gates, we have some exclusive commentary from warren buffett when asked for comment on that story he said, quote

separately, buffett posted a notice on the berkshire hathaway website saying, quote. buffett explained that post to cnbc saying i'm worried about people empercent nating me and that is why we put that on the berkshire website and nobody should believe anybody saying i'm telling them how to invest or how to vote the rise of artificial intelligence is trying to influence the election has been of concern to mr. buffett and others buffett was alerted to a fake

post of a political endorsement of him on instagram recently and he told me i don't even know how to get on instagram. >> makes two of us. >> he added people to realize anything they see with my image or my voice, it just ain't me. >> i wonder what the cutoff is for that he is 90. >> 94. >> it comes down to me, i don't know how to get on instagram either i guess below me, everybody knows how to get on instagram. >> probably. >> probably. >> you may disagree with what i'm about to say i don't know it seems to me that something is happening in this country which is very possibly troubling, which is this -- you know, warren and others used to very publicly talk about who they supported. he was very active when it came to hillary clinton before, and you've seen lots of other ceos, whether hank paulson in the day or whomever talk about who they

supported. it is only now in the past i would call the trump era that business leaders have effectively stopped talking about who they really want to support. i would argue, in part, because what you've had it this very unique and strange situation where they are scared both of the candidate publicly criticizing them and/or using not just criticizing them but potentially getting into office and using that as a weapon against them, and mobilizing their own campaign against the company and it's a combination all three of those things. >> he has been talking about this for years you've been going to the annual meeting for years he is talking about tribalism and it's changed the country and -- >> i know where you're going it's not a -- poor bill aikman

who is coming on today to explain his condition, he has been hammered of this for coming out to support donald trump. so has elon musk who used to be everybody's favorite -- >> everybody's favorite. >> are you saying if you support kamala harris you get more grief than if you support donald trump? it's both sides. >> it's not a both sides situation. the reason we are in this situation. >> it's donald trump's fault. >> we didn't have situations we had ron desantis or other politicians -- >> all right, all right. >> putting companies into the cross-hairs. you didn't see democrats do that >> you think you can support donald trump the last election in -- that is the difference this time silicon valley feels more comfortable doing it which they don't do it last time because of -- >> you will not see the ceos of the major tech companies do it elon musk is a very unique company. big ackman runs his own company.

>> too bad they are scared. >> most of the people who are publicly talking about politics today run their own businesses. >> that's true. >> that's true. >> they operate their own businesses and most of them with the exception of tesla, frankly, are not public companies. >> if the mainstream media hadn't gotten to the point where this is hitler and a threat to democracy and the end of the world and existential threat >> i didn't say that john kelly, his own chief of staff said it. >> peter baker decided the lead story. this is not news this is the biggest scandal-plagued candidate. is that news that it's the lead story in "the new york times"? >> it's known he is most scandalized president in the history i don't know what you're talking about. >> not one mention of the trumped up charges in new york, of -- you know you haven't seen any -- those 32 felonies that were misdemeanors,

the statute of limitations ran out and letitia james who was elected. >> i thought we had enough of this conversation. >> but for you to take this to where, oh, everybody is afraid ball game donald trump is such a bad guy. >> they are afraid they are that's how this has happened >> can i set the table why nobody wants to say anything >> how much courage did it take big ackman to support trump? >> i like bill a lot and happy he is coming on today and i want to talk to him about these things. >> you say he says these things. >> unlikely. >> he did. you know how much grief he's got? read his tweets! >> god bless him for coming out. >> either side if you do it you're going to get grief from the other side trump has been so vilified by the left you can't even -- he is not allowed to go to the -- dinner because it normalizes him! he may be president again. get used to it. >> this is not only happening in the political corners but happening at family dinner

tables. >> get used to it! an awful way to think about it because we have a country that is divided >> right. >> that is divided it's happening the other way, too, it would be that divided. >> nobody should say get used to it we should figure out a way so people don't have to feel this way. >> the only way for you not to happen is for him not to get elected is the only answer for us because he is such a -- he is like a eqdifferent candidate. you think he is a threat to democracy and that is the left and media has put him in that position >> we are getting more heated as the countdown continues! this is a conversation that we will continue after the break. when we come back, we will talk more about treasury yields on the rise this week. we have off to a great start at the top of the a. block but keep an eye on this here is a look we will talk about that and the move and impact on stocks straight ahead first, a deadly e. coli outbreak tied to mcdonald's.

starbucks pulling its guidance check out the two stocks today mcdonald's, which is a dow component is down by 7.25% and starbucks shares down close to 5% we will talk to a restaurant analyst about both of those companies next when it comes to investing, we live in uncertain times. some assets can evaporate at the click of a button. others can deflate with a single policy change. savvy investors know that gold has stood the test of time as a reliable real asset. so how do you invest in gold?

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it's our son, he is always up in our business. it's the verizon 5g home internet i got us. oh... he used to be a competitive gamer but with the higher lag, he can't keep up with his squad. so now we're his “squad”. what are kevin's plans for the fall? he's going to college. out of state, yeah. -yeah in the fall. change of plans, i've decided to stay local. oh excellent! oh that's great! why would i ever leave this? -aw! we will do anything to get him gaming again. you and kevin need to fix this internet situation. heard my name! i swear to god, kevin! -we told you to wait in the car. everyone in my old squad has xfinity. less lag, better gaming! i'm gonna need to charge you for three people. welcome back to "squawk box "owe this morning.

i'm sorry, guys. it is not found by i got a funny text message to tell you about maybe during the next commercial break. a nice tease here. fast food stocks are under some stress this morning this part is not funny starbucks reported disappointing preliminary fourth quarter results and cdc linking ing mcdonald's to a deadly e. coli outbreak let's talk starbucks first my sense was always going to be that once brian was put in this new role, that they were going to probably not report great earnings and at some point might throw everything in the kitchen sink so, frankly, a year from now, they can try to reposition the company and actually have a whole lot of better numbers. how surprising was these preliminary results to you

>> so from a top line basis, they were surprising in that the u.s. business with traffic down 10%, came in worse than what we were anticipating and i think what many investors were anticipating the earnings side of the equation, you know, i'm more on your page in that, you know, we were all expecting effectively a kitchen sink border that he is starting from effectively the ground up here to try and rebuild this business. pulling in fiscal '25 guidance is not that big of deal and effectively gives him some time to build out a plan to really get this business going in the right direction the next 12 months look what his letter or the transcript effectively highlighted was the fact this is going to take a long time. insist not a simple fix. there will be reinvestment back into the products and into the labor and reinvestment back into the stores all of which is going to take a good amount of time and a lot of capital, which means that

earnings growth might be under pressure for quite a bit not just 12-month window. >> let's talk about the top line numbers because stores in the u.s. off 6% and stores in china off 14%. we are talking top line revenue numbers. what are they going to have to do to move the needle there and to the extent we have heard hints around a strategy. i know we will hear a lot more next week. do you have great hope what is your take? >> boy i think this is going to be a long process, meaning this is not a simply fix they need to fix out the issues at the stores and menu complexity and, more importantly, afford ability to the customer and perception around that. that doesn't necessarily mean they need to cut their prices but to bring more back to the customer simple example is the dairy

substitute set that some of us might use and soy milk and oat meet milk and you're getting an up charge. starbucks could say we are giving you for what you get for a regular dairy and one way you can kind of express afford ability given you're the scale across the globe they likely need to address the mobile order and pay side and the instore side in china, that is a whole other conversation i could go on for hours. >> back to the u.s i don't know if you watched, brian's video yesterday where he was talking both i think to the public but really to the partner -- he calls the partners t to the stores, the employees, the efforts they want to undertake to try to make that experience in the store feel more like old style starbucks and old style coffee shop. what i was hearing between the lines was really trying to

repriorize the instore experience to some degree to the mobile experience. in some ways the mobile experience has almost taken over the store. how much do you think that a plusible plausible story. >> i would add and getting back to coffee and so the not having so many crazy drinks that are hard to make behind the counter too. >> both of those i think are import important. keep in mind both of those are significant sales for starbucks today. 31% or so of their transactions in the u.s. come from that mobile order and pickup channel so anything changing that will likely change the direction of their sales. you look back pre-pandemic to now, a large chunk of what cumulative 50% check growth is by the rise of these alternative beverages. the moment they start pulling those from the menu, there is likely going to a sales head ww wind so it's a difficult needle

to thread. brian and his team i think is the best suited executive to try to fix this. i don't think it's an easier turn around in 12 months. >> the numbers, 31% growth from when 50% growth from when >> sorry 31% is their mix of transaction ons on the mobile order and pay side the 50% growth is the cumulative check growth in the united states since pre-covid so effectively 2019. >> john, let's just real physical pivot to mcdonald's before we let you go this e. coli outbreak, obviously, is going to be a problem the next couple of weeks. beyond that, does it create a brand problem? do you think folks either don't come back or say they are going to stay out of the stores for, you know, months on end? what is the real impact of this? how do you see it? >> i think it will be temporary

in nature and not to dismiss anything that happened to the folks that got sick and, obviously, a death, it's not great. i think they got the brand and important the protocols to address this across their supply chain. first, making sure it's contained. sound like it might be that it's going back and effectively admitting to the public that something happened and we are fixing it third, overcorrecting. i think they are going to go in that sequence. lils likely means in the short-term sales will drift temporarily perhaps a couple of weeks and slowly build back up as they regain customer traffic. look the big thing for them they came into this window effectively with afford ability issue in the eyes of the consumer over the past 12 months and they have been improving that since the late june period but this is a step back for them in the u.s. it's not a great setup but, you know, 7% reaction on this news

feel appropriate, given that the temporary head wind that it will provide to sales domestically and the build-back will take a little bit of time. >> john, thank you for your perspective and we will be watching starbucks next week and i'm sure talking to you in the coming weeks. >> thanks. >> any guess on how much beef mcdonald's uses per day? >> whoa. >> i don't know. in this case, how many onions do they use that is why the e. coli was coming from. >> 5.2 million pounds per day. 1.9 billion pounds annually. there is no onions on a big mac? this is just a quarter pounder >> in 2018 i think they started using fresh beef instead of frozen beef. >> this is only a quarter pounder? >> yes but they changed the

entire process. >> there are onions on a cheeseburger. >> i think the supply chain these are the fresh ingredients we used for this get back to 'chipotle. >> it's the tiny onions if you order a cheeseburger i think they have special -- fresh ingredients they put on this it's a huge concern. it reminds me so much of chipotle and what they went through in 2015 because the fresh food in their supply chain. >> i'm just glad it didn't happen in north carolina because you know who is fault it would be. coming up, qualcomm shares are falling after the uk's arm escalated a legal battle early this morning details ne. bill ackman will join us later on an exclusive interview why he is back in form area president trump's re-election bid.

welcome back treasury yields on the rise this week amid cautious comments from fed officials about the path of interest rates maybe a lot of other things they are watching, too. we want to bring in the fixed income portfolio manager at jpmorgan asset management. we have some pretty heated conversations this morning about why treasury yields are on the rise you want to weigh in on what you think is mapping here? >> i think it's a perfect storm for the market we got detail the last month to suggest that the risk is lower you go back a month. we had two months of reports' fed 50 bases points. i think the market is concerned.

we had better employment data and better sales i think the potential republican sweep is getting priced into the market and the idea of deficit i would argue is already unsustainable and gets much worse. i thinkwe got two scenarios where interest rates 3 1/2 to 4% are much higher and i think every market tow pay attention to it. a neutral rate is not 5. as rates get higher i think it will crowd out investment and impact the housing market i would already is somewhat frozen. >> i think the bigger question is has the fed lost control of this maybe the rise we see in the longer end of things at this point is the thought that the

fed is not going to cut rates further from here. but maybe it's even if they do cut rates, it doesn't matter, we are concerned about inflation on the learnionger term look of th. >> they suggest this is the start of a cycle i think the question what is neutral rate we are at 5% right now and the fed thinks it's a little below 3% i would maybe 3, 3 1/2 but not 5. i think the fed is still going to cut rates the income is steepening which means that rate is rising and i think fiscal year and maybe inflation risk as well the fed think has control on the front end but not that much control on the long end. i think the economy is much more sensitive to that long end those long end rates keep rising think about the mortgage market and where companies borrow this is all happening in the context of a soft landsing.

>> mortgage market, what happens to your car loans, what happens to those things. what we have seen with insurance costs that have become untethered because of the high inflation rates that insurers were dealing with and finally getting to raise rates on some of these things, all of those lead up to questions if your actual cost as a consumer go up and continue to rise, are you going to demand more from your pay, from your paycheck? and if that, in turn, leaves to a sort of a vicious cycle? >> exactly i think we have to look at the labor market let's look at the totality of data the last three months weak reports two months ago and a strong report and smooth it out. the labor market is strong and we are in a soft landing and very rare and i give the fed a lot of credit. i think companies did root thing and locked in rates. i think the households did the right thing. if you're in a soft landing, we are seeing the labor market slow down we are not seeing layoffs but

the base of hiring is slowing down the ability for consumers or the labor market to ask for higher wages, i think, is not that high it was there two years ago it's not there right now to your point if cost of living is going up but my wages are staying stable, i have to cut back somewhere else. there will be a lot more in terms of earnings people cut back somewhere else because they have to spend on certain things. >> thank you >> thanks. >> we appreciate it. at&t just out with its results and earnings on an adjusted bases 60 cents a share and compares to the 57 cents the street was looking for revenue $32.5 billion lower and street looking for $44.4 billion. telea concompany adding net adds phone subscribers and fiber net ads.

revenue number of was below expectations that was in large part he said because people are holding on to their phones a little longer and not upgrading to that circle and he says not a problem for at&t because those are not profitable dollars when people upgrade their phones what they make money on is the services and he said people are sticking with their services look at broad band revenue up 6.4% and fiber revenue up about 17% and wireless revenue up by about 4% he said the biggest parts of the company are growing faster and they did beebitda stock off 3.25%. i think the debt projections they say they are on track to meet those goals that they had given the street by next year to get to 2 1/2 times net debt to

adjusted ebitda. they have been doing this while adjusting continue to invest in the business but the stock is off by about 3 1/2%. there were some areas where there were other misses. broadband subs added 226,000 the street was looking for an add 258,000. they say part of that is because of the one month work stoppage that they faced in the southeast because of union issues. that issue has since been resolved but they also had hurricane helene andfiber net a the quarter. they expect hurricane milton and helene to be issues as cleanup continues and see how much it will cost on that. shares are down right now 3.6% i think there was a charge in this, too. a big write-down they were t

taking a charge that came in 4.4 billion dollars of noncash g goodwill on the enterprise segment. the wire lines investment are written down over this legacy. take a noncash impairment and that happened in this last quarter. >> a lot more coming up. millions of americans preparing for open enrollment. we will have tax tips as you pick your insurance plan you need to know this stuff. a look at yesterday's s&p 500 winners and losers

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welcome back to "squawk box" this morning we are live at the nasdaq market site in times square we are having fun on a wednesday morning. look at the futures. they are having a little bit less fun than we are dow off 200 points and nasdaq looking it will open down 78 points and s&p 500 looking like it would open down about 14 points joe? >> just over half of private

industry workers with medical care coverage participated in high deductible health care plans last year and many are eligible for a tax advantage investment account to help pay for their medical expenses but don't understand how a health savings account works. we have them, don't we >> no, we don't have them. >> we don't have any >> no. but a lot of people do. >> things i don't use that i could put in to and use? remember >> you're like a lot of people that is why we are talking about it. >> flex plan. >> we are talking about this 26 million people who had a health savings account or hsa at the ends of last year. assets in these accounts reached about 137 billion this june and grow by the end of 2026. that is according to the research and investment firm devinyear. half of americans don't understand how an hsa works. only a third of eligible

employees have enrolled in this benefit and less than a quarter who have enrolled have funded their accounts what is the advantage of having one? hsa is a savings and investment account that offers significant tax savings. >> you're able to put pre-taxed dollars into your health savings account as long as the money stays within the confines of the hsa, it is not taxed assuming you pull the funds out and use them for qualified health care expenses, those funds aren't taxed either. so you earn a tax break every step of the way. >> starting next year, individuals can contribute up to 4300 in hsa or $8,550 for a family the type and coverage you choose is key you can only contribute to an hsa if you're enrolled in a high deductible health plan which the irs defines as having a minimum

deduct 1650 dollars for individuals or $3300 for families experts say making the most of the tax benefits of an hsa generally requires covering current health costs out of pocket and keeping the funds in the account invested so that they can grow and then be used in the future. for a lot more advice on how to grow your wealth, join me and tyler matheson and financial experts including "morning star" christine benz tomorrow at 1:00 p.m. eastern time for the event. scan the qr code on your screen or go to cnbc.com/yourmoney. >> we used to have something like this. what was it? i tried using it at one point and it was ridiculous with the -- like, what we had to go through. you didn't use it all, you lost it if you tried to use t they gave you grief left and right >> you're doing what a lot of people do. confusing an fsa and hsa flexible spending account and health savings account

flexible spending account is very different you can't put in as much money you're not investing that money. if you don't use that money that year, you lose it. >> the bigger issue is they try and go after you for everything you try to write off i used it one year and it was fine the next year, we had some changes that went in i think because of an irs change where you basically -- it was guilty until proven innocent innocent you were using these things that what allowed to be used to i remember i had my son and i tried to call up and say that i was using it for costs that they gave me while i was no the hospital recovering. >> right. >> the questions that they asked were ridiculous and insane i've never put any money into that thing ever again. >> it's really hard to what is covered. >> this is more information than anybody wants. i won't say it they accused me trying to get cosmetic surgery for things that were stitched back together? >> what?

>> yeah. episotomy! >> we have to pause e ow athshnd cancel the rest of the guests of the rest day and we will talk about this for the next two hours! >> it was ridiculous >> you said cosmetic surgery i'm thinking botox >> the costs people have is their health care! it can. on the servicenow platform, ai transforms your entire business. because when your people work better, everything works better. so, let's get to work. idris elba works here? mm-hmm. ya, he's super nice. (man) look at this silly little sailboat... these men of means with their silver spoons, works here? eating up the financial favors of the 1%. what would become of them when they discover robinhood gold allows others to earn their very liberal rates on idle cash, unlimited deposit bonuses and handsome retirement matching? they would descend into chaos.

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welcome back legendary investor paul tudo. jones is worried about the investment and spending promised by both presidential candidates. >> will we have a minsky moment in the u.s. and u.s. market and a moment where there is a point of recognition that what is going to happen or what they are talking about is actually fiscally impossible, financially impossible. >> joining us with insight how ceos see the debt problem is

mike weinberger. good morning put i'll ask you how i set it up remain how much do you think ceos in america jingenuinely care about this issue >> they care about it and you lead the committee at the business round table. at the bu roundtable and all -- how the deficit and the national debt unfold will have a direct impact not only on our companies, but certainly employees. i listened to your banter earlier today, not so much the healthcare -- becky's issues, but on the deficit, and there is so much to talk about, i wish we had more time. first of all, it is a spending problem, the position we're in today, and we're projected to go not a tax problem. doesn't mean we don't have to raise taxes. i'm not saying that. if we can't cut our spending, we have to raise taxes. we averaged 18% gdp in taxes through all the ups and downs of the tax changes over the last 30 years and the projection for cbo

over the next ten years is still 18% of gdp we collect in taxes we had 21% of gdp spending it is now 23%. the difference is the deficit. and it is projected to go to 25%. so really it is a spending problem. but, again, if we don't have the courage politically to deal with the issues -- >> let me ask you, mark, let me ask you, if you don't believe -- so there is two pieces here. one as you said, it is a spending problem and, by the way, i don't think a lot of people will disagree. we probably have to spend less or figure out what we're doing on the growth of the spending. the question, and then you said, well, if it is a spending problem, some people look at that and go, well, it is not a tax problem but you seem to suggest maybe it is a tax problem too or not >> well, i'm saying that interest on the debt is like a tax. it is a deferred tax increase. and it has a huge effect on us it has inflationary aspects. and so i do think if we -- we

have to raise taxes. one or the other or both and probably will be both. >> probably both okay let's talk aboutthe spending piece of it. what would you cut we're making you a politician for the day here, a ceo who wants to cut meaningfully, by the way, not just around the edges. >> there is only one place to go 75 cents of every single dollar the federal government gets it spends on transfer payments and interest on the debt there is only 25 cents left to spend on everything else 12 is defense. you won't cut there. the other 12 is everything we think of to grow the country, you're not going to cut there. you have to figure out a way over the longer term to deal with the transfer of payments which are not investments in the future don't even pay for the infrastructure we have to fix. so, that is the politically tough issue. when i led president clinton's entitlement tax reform commission, we put out a whole host of options, increasing the retirement age, means testing some of the programs that are transfer payments, dealing with the high cost of medical care, a

number of issues like that that's where you have to go. >> clinton, we lost all those hard-fought progress that you made, mark, all that reform that, you know, that a democrat actually orchestrated and we're back -- we're almost back to where we lost it all at this point. >> well, listen, we have more people who are elderly and the cost of healthcare is going up. >> demographics, but -- >> and so it is demographics and it is the cost of healthcare, frankly. the tax side, though, in all honesty, the other thing i wanted to raise, you know, from a tax perspective, we do want to collect 7% of our taxes from the business income. you guys were talking about that earlier. great reason for that. every economist will tell you that's the least efficient tax there is and it is paid by either consumers, buyers of the products or employee labor or shareholders, one or the other

it is a tax on individuals but the reason that's so low, andrew, when you talked about it, a lot of our income in business comes in passes through and private companies which other companies don't have that's not added in the comparison it is true we tax income and profits much more relative to other countries than they do because they have value-added taxes and we don't we have the most progressive tax system in the world too for that reason, but people don't think about it that way. >> i'm glad you came on. >> mark, thank you for joining us this morning. a longer conversation. hope to have you back soon >> happy to do it. take care, guys. bye, becky. >> bye-bye, see you later. when we come back, coca-cola set to report. we'll bring you the numbers straight ahead and later, quarterly results from boeing as the company's largest iounn prepares to vote today on a contract offer. the ceo kelly ortberg will be on "squawk on the street" at 9:00 a.m. in an exclusive interview i. when you work with someone who knows a lot

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coca-cola just reporting earnings of 77 cents a share that's 3 cents above estimate. and revenue also above at $11.95 billion. global unit case volume declined though 1% during the quarter and for the full year, coca-cola is affirming its guidance. want to hear more, ceo james quincey will be on "squawk on the street" at 10:00 a.m. eastern in an exclusive interview. >> it is almost 7:00 a.m. right here on the east coast, exactly 6:58 you're watching "squawk box" here on cnbc i'm andrew ross sorkin with joe kernen and becky quick if it is before 7:00, you're up a little early sorry. >> it is

we appreciate it >> 7:00 is a cutoff for a lost folks. among today's top stories, at&t reporting earnings of 66 cents a share, beating estimates by 3 cents. revenue, $32.2 billion net ads of 403,000 you're looking at the stock on the move this morning up about 3% on the back of those earnings reports. meantime, shares of enphase are dropping this morning as the maker of solar panels and battery systems reporting lower than expected third quarter results and seeing lower sales ahead of the company, ahead of all this the company saying revenue from the u.s. rose more than 40% from the previous quarter as inventory returned to normal, but sales in europe falling 15% on weaker demand and on that top line news, bottom line news too, looking at the stock up almost 15% right at this moment. and texas instruments, third quarter results beating

estimates, helped by a recovery in orders for analog chips and improving demand from china's ev market shares are rising despite the company forecasting fourth quarter revenue and profit below expectations due to continued weakness in the industrial business mcdonald's and starbucks both slipping in the premarket trading for two very different reasons. kate rogers joins us now with more on that front hi, kate >> hi, becky, good morning we'll start with mcdonald's, shares of the fast food giant down the company had been linked to an e. coli outbreak with its quarter pounder product. this is the first outbreak of foodborne illness at mcdonald's since 2018, more than 500 people were sickened from bacteria in its salads the company says the issue may be linked to slivered onions used in quarter pounder and sourced by a sing le supplier. there are 49 cases of illness, 10 hospitalizations and one death per the cdc. the company said all local

restaurants have been instructed to remove the product from supply and the distribution of slivered onions has been paused in the impacted area it is also temporarily removing the quarter pounder from restaurants in colorado, kansas, utah and wyoming as well as portions of idaho, iowa, missouri, montana, nebraska, nevada, new mexico, and oklahoma and then moving on to starbucks. late yesterday warning with preliminary results that missed across the board and suspending the 2025 full year guidance. this is clearly a big change in leadership under brian niccol as this will be his first quarter as ceo he said his focus will be on the u.s. business first, on menu marketing and more the company says it is expecting 80 cents adjusted, lower than $1.03 estimated. same store sales fell double the anticipated drop another key market, comp store

sales declined 14% in prepared remarks, niccol saying it is fundamentally clear we have to change our strategy so we can get back to growth and that's exactly what we're doing with our back to starbucks plan. that news weighing on the stock as well. back to you. >> it is so interesting. there is all this demand for fresh food back there and this is circling back to mcdonald's mcdonald's responding to that like we have seen from lots of other companies, chipotle and more, but it shows the problems that can exist in the supply chain when you are trying to present fresh food that has not beenfrozen, doesn't have any o the preservatives or other things in it, maybe this is a case of something like that kind of working its way through. >> certainly, becky. so many analysts are drawing the comparison for better or for worse to chipotle in 2015, some firms saying that this is not like that. it is much smaller, it is much more contained if you remember they had an e. coli outbreak in 2015 and hit with more neurovirus issues after that that came in waves

so it remains to be seen if this winds up being that type of a news cycle for mcdonald's. chipotle has very much since reversed course and got that issue under control. but it did at the time hurt the brand. they since moved on. mcdonald's, again, this is a smaller seemingly for the moment more contained issue, but if the news continues to come in waves as guggenheim warned this morning, that could weigh on the stock and be a big issue for mcdonald's. >> it is a bigger issue than the starbucks situation. simply because it is a dow component. and this is going to put pressure on the major average. so, we're watching that too. shares of mcdonald's down by 7% this morning we'll see whether the news comes out of this and how this is followed up. kate, thank you. >> certainly, becky. thank you. >> thanks. shares of qualcomm falling, this following a bloomberg report that said british chip designer arm looking to scrap a key license. it says arm has given qualcomm a 60 day notice of cancellation of the architectural license agreement, it allows qualcomm to

design chips based on arms design is cancellation takes effect qualcomm might have to stop selling products that account for much of the revenue or face claims from massive damages and see that stock off 4% now they have been in a legal dispute since 2022 cnbc reached out, we should mention to qualcomm, regarding the report, nothing back yet but hoping to bring you that when we get it. >> coming up, a new perk for amazon prime members that story next. and later, bill ackman will join us in an exclusive interview on why he's backing former president trump in the election coming up in a couple of weeks less than that now "squawk box" will be right back. (vo) what does it mean to be rich? maybe rich is less about reaching a magic number... and more about discovering magic.

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this out from amazon this morning. prime members, ten-cent discount per gallon of gas at approximately 7,000 bp amoco and am/pm gas station. the company says based on u.s. average driver statistics it could save members a nearly $70 a year amazon also plans to add an electric vehicle charger -- charging savings offer at bp stations with more details to be revealed next year how long does it take now? >> i don't know.

>> you don't know. you don't know what they got it down to. if you don't wait in line to get the -- you can do it at your house. >> depends if it is a super charger or not. >> i still don't know the answer. >> i think 20 minutes, yeah. that's still -- >> then there is a line. if there is a line, then these are all questions i think -- that's why it's tough. >> yeah. >> speaking of lines, you're going to love this next story. american airlines is cracking down on passengers who try to cut in line prior to their boarding time. a new system is being tested in some airports including albuquerque and tucson it will play an audible signal when passengers try to jump ahead of others who have paid for their position in line the line cutters will be sent to the back of the line to wait for their boarding group reports say that the airline is pleased with the results that it has seen so far and it will soon expand the test program to reagan national airport in the d.c. area. this is another situation where

if you've been there, it is a cattle car and everybody is trying to rush their way to the front, this is all because the airlines charge to bring bags on now. >> here is the separate question i don't know if you had this experience you paid to be in the -- whatever group, the better group, you don't get on immediately because maybe either not you're late or whatever it is, and there is, like, two places, you can get on the special line for you -- >> cut to the one or stand in the back where -- >> do you start to -- what looks like cutting everybody, but not really cutting everybody because you paid for the thing, or do you have to get back in the line -- >> i think you can go to the place where you are, but they're going to kick you out if you don't have the authority to be there. >> sometimes i don't sometimes i go to the back of the line because i don't want to look like a line cutter. >> it is a good social graces question. >> people know you, you definitely don't want to do that entitled andrew ross sorkin. >> i'm usually wearing my n-95 mask, so sometimes they don't know what i look like.

>> only one? i thought you -- don't you wear one on each side >> i wear five i can't even breathe i can't even breathe. >> when we come back, cnbc's your money, your vote road trip continues. if i see you at the airport with a mask on, just, you know -- >> the thing goes off -- and then you're -- you got to walk to the back of the line. oh, my gosh. >> walk of shame. >> we'll go to cane county in michigan which could decide who wins the state's 15 elecral to votes. you don't want to miss this. plus, quarterly results from boeing due out shortly the numbers, market reaction, it is all coming up do not go anywhere "squawk box" rolling on. oh, absolutely. (inner monologue) my kids don't know what they want. >> announcer: this cnbc program is sponsored by baird. visit bairddifference.com. we get all of our financial questions answered. so you don't have to worry.

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welcome back to "squawk box. take a look at the futures right now, we got some red on the screen 216 points off on the dow. nasdaq down 67 points, s&p 500 off about 12 points. joining us now to talk markets, the chief investment strategist at i capital good morning to you. hopefully an opportunity to see paul tudor jones yesterday he had a whole bunch of views about bitcoin, the nasdaq. are we 13 days away from the election >> never buy a bond for the rest of his life. >> wouldn't buy a bond i don't know about that. what would you do? >> well, probably wouldn't buy bonds going into the election. and, you know, look, rates have reset higher for a variety of reasons. some of it i think does have to do with pricing in the possibility of a red sweep and what that would mean for budget deficits some of it has to do with stronger growth expectations and i think that's actually good

news for the economy that's good news for the equity markets. and some of it has to do with repricing the fed expectations, which i'm not completely on board with i think even a strong economy still justifies rate cuts as long as inflation is somewhere around 2%, 2.5%. i would be sticking with equity markets in this situation. we know that volatility tends to rise into the election we know that it typically subsides thereafter and i do think that if you look at both candidates' proposals, there are measures there that will likely lift the budget deficit, if they're allowed to pass, assuming you don't have a split congress so, you know, having that as a backdrop, i think that's why you worry about the long end of the curve and stick to the short end of the curve, stick to equities, stick to alternatives. >> we were talking about folks like dan lobe who put out notes to investors saying he's repositioning his portfolio to some degree around the possibility of a trump win and i ask about that, because i now heard from a number of business leaders, ceos and the

like and investors who are starting to try to think through the math and permutations of what the tariffs ultimately would actually really mean are you putting that into your basket of things to think about? >> the market is starting to move on that speaking of baskets, if you look at goldman, for example, republican policy basket versus a democrat policy basket, the republican basket outperformed since late september the reason why is partially because you do have a high probability of a red sweep and a trump win, but i think the other reason you have some degree of outperformance, the basket has financials in it, industrials in it it has the cyclicals that are also the same time benefitting from late rate release story that is filtering into the market so i probably would not necessarily preposition for any sort of election outcome at this point. predicted odds is one thing. if you look at the polling numbers and look at the counties, you know how close some of the things are so i wouldn't preposition, but i

would think about what is the economy likely to look like post november 5th, and it is all about strong economy also going to be benefitting from rate relief story that's why i do like financials. i do like industrials. >> you think it is a win almost for the economy, no matter who wins or no >> for the economy, big picture, i don't think the economy gets swayed one way or another regardless of who wins and the reason i say that because one factor is the possibility of a split congress, but the other factor is both candidates have pro growth supporting policies and also some negatives so if you take former president trump, for example, yes, there is a negativity of tariffs, but at the same time, there is the positive prospect of corporate rate cuts. >> what is the biggest progrowth policy that we have seen in the biden administration i can't name one in the biden administration, and what is she proposing that is pro growth >> the pro growth measure will be the child tax credits which

are estimated to add about $100 billion in consumption to the u.s. economy and it sounds -- >> keynesian. >> it sounds like additional potential gdp growth but that could be offset by the tax increases that vice president harris would be proposing. but the point is that either side has stimulative policies, things that would pay for those policies and would be contractual, but net-net, one side or the other, the impact to gdp is actually negligible i think where the markets will become focused is what does this mean for sectors, what does this mean for baskets, what does it mean for factors i do think that you can see a lot more dispersion within equities, planning on who wins. >> i think we learned -- don't you think we learned more and more we have a great economy that almost operates in spite of washington it is, like, if gridlock is

really what we want, it is, like, we can count on the u.s. economy to keep chugging along and outperforming, as long as we don't screw it up. >> as long as we don't screw it up and if you look at profitability of companies if you look at margins, innovation that is happening -- >> look at the innovation too. yeah envy of the world. and 25 years old, these people >> thank you >> bah humbug. how do they get so smart so young? coming up next, the cnbc your money, your vote road trip rolls into one of the most important counties in america. brian sullivan is there. he's going to join us after the break. and then how mcdonald's management should handle the e. coli outbreak linked to its quarter pounder, but not as skeevy as if it was the meat it is the slivered onions, which is skeevy enough "squawk box" will be right back. >> announcer: time now for

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>> announcer: and now the answer to today's aflac trivia question in which countries is coca-cola not sold the answer, cuba and north korea. the 2024 -- >> that's it just cuba and north korea? >> right >> among other things that makes cuba not a great place the 2024 your money your vote election road trip rolls on. and we have -- we have found our way to kent county, michigan, one of three counties that flipped back to biden four years ago after going for trump in 2016 winning kent might be critical to grabbing michigan's 15 electoral college votes. brian sullivan is live, he's in grand rapids with more on what we need to know ahead of the election a road trip. i hear road trip, i think

"animal house" immediately i wonder if there is anything like that happening on -- have you seen otis day and the knights or any of that robert cray was one of the actors anything like that >> i'll paraphrase it is a family show. you messed up. you trusted us, right? i'll go there. otis, he loves us. i can see the rapids are not so grand since they dammed them up, but this county is going to be grand for either trump or harris and maybe third party candidates can play a big role in that as well of the three states in our road trip, pennsylvania, kent county, michigan, and then we got kenosha, wisconsin, and that surrounding area, by far the biggest 650,000 people, so a lot of votes here to be had. very critical, trump then back to biden part of that so-called blue wall, which we'll get to in a minute here. here's one of the things interesting about this county.

it is one of the few we're at where the unemployment rate has actually gone up over the last four years you had 2.3%, full employment in december of 2019 before covid hit. we're at 4 now that's still low, but one of the few counties, swing counties we're covering, with the unemployment rate actually ticked up. so you talked about "animal house," maybe a little illusion to drinking, so why not? yesterday, when we rolled into town we decided to visit a brew pub down in wyoming, michigan, not just here in city center, but sort of that middle ring, inner ring which could swing the election, great guy, lenis, a brazilian native, used to work for ford, three cats brewery i asked him, how are his sales and how is his customer spending going and he said it actually has gotten a little worse. listen >> i've seen spending go down and the amount of people that come in go down.

of course, there are seasonality effects in this business, in any business, in any area. but if i compare, like, summer this year versus summer last year, there was a massive increase, not just for us, but for similar business in the area >> he said that the price of his french fries, the wholesale price went up 40%. he had a big post covid pop. who knows if the downturn is just from a super high level post covid, or the start of something inflation, major story here in michigan this is a critical county, critical state, along with saginaw county, which is really one of the only -- two of the three, one is very tiny in the northwest corner that flipped. >> all right where's next, brian? >> well, today we're going to be kind of moving around, talking about the inflation story that sort of suburban middle ring downtown, a little more blue

the middle ring, a little more purple out in the sort of the more rural area more red. we're going to do that a little bit today. and then on friday, well, tomorrow, we're going to be driving to wisconsin, go through chicago, and up into kenosha kenosha, some people say it is not a swing county necessarily, joe, but the -- there is our route. but the reality is that all those sort of lower milwaukee western milwaukee suburbs with salk county, those are going to determine how this whole thing comes out and there was an article yesterday, nbc news about the campaign worried about the so-called blue wall cracking >> you got to hug the lakes there because that's where the factories are, located along the lakes, that's why they're so key and why you got the union activity and the question on what is going to happen with some of those things there too, brian. >> yeah. and each of these counties has something in common. and they all voted together by the way, these blue wall states,

p.a., michigan, wisconsin, every time since 1988, they go together that's why this call it the blue wall some are saying maybe they don't go together for the first time in 36 years because while they are similar, there is differences. erie has got a lot of problems erie, i love the people we met, but let's be honest, 24% poverty, poorest urban zip code in the united states, grand rapids is a nice city, billionaire benefactors in the devos family and meyer retail family kenosha in the middle. and each of these counties does have something in common, though they have got an urban core, which tends to go more blue, call that 80/20, blue to red a suburban middle ring which call that 50/50. and then you got the rural outer ring, call that 80/20 red to blue the suburban ring in the middle, north of here, ten miles, east of here ten miles, that will determine the election

probably not grand rapids, probably not the rural areas, guys, but that middle suburban ring is where it is all going to be decided. >> dthat's the last time it wasn't all in sync i think we got to go, brian. we will see you soon have fun >> thank you >> road trip >> thanks, brian very quickly, take a look at the futures. dow futures down by 220 points we have been awaiting boeing's numbers. and as we await that, again, dow down by 220 points because of what's -- 243 now. let's get over to phil lebeau with boeing's numbers and we're seeing some additional weakness in the dow >> becky, let me run down these results. these are roughly in line with the company's preannouncement last week. so, there is no surprises here in terms of the numbers coming out from boeing for the third quarter. a loss of $10.44 a share

q3 revenue $17.8 billion operating margin negative 32.3%. operating cash flow negative $1.34 billion. free cash flow, negative $1.95 billion. and you break down the three disks at boeing, commercial airplanes, that's where the big loss is, $4 billion loss for the third quarter. just over $4 billion defense loss $2.38 billion global services, that's the one part of boeing that's working right now. a profit of $834 million they ended the third quarter with liquidity of $10.5 billion. that's critical as they set the stage for a possible capital raise in the weeks to come there is no guidance at this point. they haven't given guidance for some time, which is understandable but when you take a look at what new ceo kelly ortberg going to be saying and we're talking with him in a little bit, turn around will be taking time. he also says that the company's culture, it must change. and he's making it very clear,

there is a game plan that is going to be coming together, but no silver bullet here. it is going to take some time to turn around boeing that's the message that he's putting out as the company is releasing its results for the third quarter. we're going to be talking with kelly ortberg coming up on "squawk on the street," a cnbc exclusive, don't miss what he has to say we will not only talk about where the company is right now financially, more importantly his road map for getting the company stabilized and then eventually growing again and, again, he's saying right now, it is not going to happen overnight. it is going to take some time. we'll talk about that with him shortly after 9:00 guys, back to you. >> and we're looking forward to it thank you, phil. very quickly, folks, we told you about our aflac trivia question what countries is coca-cola not sold in? turns out there is a third we listed two. not sold in cuba, not sold in north korea, let's add to the list, russia, because coca-cola exited russia with the ukrainian

invasion by russia so, just add that to the list. one more country "squawk box" will be right back ♪ ♪ this one is for you.

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welcome back to "squawk box. taiwan semiconductor denying reports the u.s. is investigating dealings with huawei last week the information reported that the commerce department was probing whether the chipmaker provided a.i. or smartphone chips to huawei in violation of u.s. export rules then yesterday a reuters report said taiwan semi chip was found in a huawei product by tech research firm tech insights. in a statement overnight, they told cnbc it is a law abiding company committed to complying with all applicable rules and regulations and saying that it communicates with the commerce department regarding the matter in the report and are not aware, they're saying, of any investigation at this time taiwan semi saying it is not supplied chips to huawei since september of 2020, so the question is whether that report

was wrong, is it that there actually were chips and taiwan semiconductor didn't know or taiwan semiconductor not being straightforward? these are the options to contemplate. >> yes coming up -- we don't know the answer -- when we return, a breakdown of some of today's big stories this morning, including mcdonald's and boeing, both are dow components deutsche bank shares are also lower this morning we're going to tell you why when we come right back "squawk box" coming right back after this

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shares of deutsche bank lower. the company reported a smaller third quarter profit, than analysts were expecting. investment banking revenue and asset management revenue were each up 11% year over year but revenue in the bank's core divisions came in slightly soft and provisions for credit losses were much higher than in the

same quarter a year ago. whethen we come back, mcdonald's saying it is taking swift and decisive action following an e. coli outbreak in certain states we'll talk about management's response right aer ts fthibreak. and later, pershing square's bill ackman will join us in an exclusive interview right here on set we'll be right back.

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connectivity is a big part of my boys' lives. it brings people together in meaningful ways. ♪ ♪ welcome back, everybody. mcdonald's shares down sharply this morning on news of an e. coli outbreak that has caused one death and sickened dozens of people in at least ten states. for a look at how mcdonald's should navigate their way through this, we want to bring in gotham mckunda. let's talk a little bit about this

obviously things happen. you can think of a lot of different instances where a company has to react to something that has gone on this is drawing a lot more attention because of the size and scope of mcdonald's, because it is a dow component, and because this is going to be an issue that we need to see how quickly they can follow up and attack this. what would you suggest that they be doing right now in response >> hi, becky good to be back. so, it is also drawing more attention because it is mcdonald's it is not the mcdonald's, it is as american as possible to be, so it is going to get more attention. the first is there is a playbook for how to handle this that was written by johnson & johnson in the 1980s. it is very clear communicate, communicate constantly, be absolutely transparent, say what you know and say what you don't know. don't hide don't pretend. be clear people will accept you don't know everything. the second and most importantly

always, always, always tell the truth. don't fudge. don't cover. don't give partial truths. don't hide behind legal excuses. be as transparent as you possibly can be at all times and third is, once they isolated the cause, and it is still not 100% clear where this came from, you want to be proactive you want to actually move faster and do more than the regulators are going to require that you do and sort of say we're not just -- we're not just responding to this, we're going to be ahead of the curve on these changes. >> are they doing that right now, and it seems like we already have gotten to the point where we believe it is the sliced onions coming from one supplier that made its way into a couple of different distribution centers if that's the case, and we can say, okay, it was a problem with one supplier, it was yoonions, o the meat, that seems like it is a best case scenario

>> for them in many ways it is the best case scenario we can see what happened with chipotle, they didn't have one food poisoning incident, they had incident after incident after incident that went in and when the investigations found out, there were systemic failures in the food safety protocols that ended up with them paying a $25 million settlement at the time, the largest food poisoning settlement in history. this is not that this is one supplier i'm sure they're breathing a sigh of relief, however tragic it is, the death of one person, but saying it is one supplier is not enough the idea that mcdonald's food is always safe is sort of intrinsic to who they are, right so they do need to ask, well, what went wrong at the supplier, was it some sort of a freak accident or is this an indicator that maybe our processes are checking on our supply chains and managing them need to be tightened up >> what would you suggest on the

public relations front of these things first of all, you have to take the actions, make sure you know what you're talking about, tell the truth and then what? >> and you got to -- you have to lean in. you have to be -- you have to speak as much as possible. you have to not -- you cannot hide behind your returns that's just critical i would also suggest as much as public relations, there is a nonmarket astronaut. the u.s. food supply, we have seen increasing food poisoning across the u.s. economy over the last few years, driven aleast in part, not entirely, but at least in part by cutbacks in fda inspections on foods including the abolition of the position of deputy commissioner of food of the fda whose job it was to oversee the safety of the food supply, which a few years ago that position was abolished and has not been re-created. >> can i just say, looking back at what has happened, that happened a few years ago i can think of instance after instance of big problems that

happened while that position still existed. mentioned chipotle thatwas 2015, mcdonald's, an issue in 2018 with their salads, and think back to what was happening with rats in taco bells at one point. i can think of a lot of instances there were some pretty bad outbreaks before any of this happened, before that position was gotten rid of? >> that is not a cure. it is not anything close to a cure all there is no such thing as a propro perfectly safe food supply i got it at home once when i was a kid. it happens what we do know is that the numbers -- >> did you just throw your mom under the bus? >> you know, my mom was -- my mom was wonderful in all aspects, but even moms occasionally make mistakes it can happen. and it can happen to my mom, it can happen to mcdonald's so, the numbers are going up i'm not arguing that, you know,

reconstituting this position or bringing in more inspectors is going to mean no one in the united states gets food poisoning. that's not true. we would like it to be less frequent and we seem to be seeing the numbers going in the wrong direction. >> is this a quick fix on a national my guess is corporations being motivated may be one of the best ways to attack this. >> so no one wants this to happen the problem is the incentives run the wrong way. even if you are making mistakes with food safety the odds are you're going to be fine most strains are e. coli are perfectly safe most people who get e. coli poisoning even ingesting an unsafe strain do not know they've gotten food poisoning if they do, they do not report it the incentives run in a way there's always a slight

temptation to pressure for speed over safety, cost cuts over safety most businesses, obviously, are never going to do that but if the stakes are if you get it wrong people might die you want to make sure the lowest common denominator is not the threat >> thank you coming up, boeing reporting earlier a breakdown in the results of the furute of the plane maker coming up. and then bill acman joins us to discuss the markets, the election and much more sexua "squawk box" coming right back c♪ my protein shake. the future isn't scary. not investing in it is. you're so dramatic amelia. bye jen. nasdaq-100 innovators. one etf. before investing, carefully read and consider fund investment objectives, risks, charges, expenses and more in prospectus at invesco.com.

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boeing shares a little bit lower right now, down about 1% the company reported results that were basically what they told us, mostly in line with the preannouncement earlier this month. boeing lost $10.44 a share during the quarter on revenue of $17.84 billion the company's new ceo saids the company needs to become leaner and improve quality. later this morning boeing machinists will begin to vote on

a new contract proposal that could end a five-week strike and this morning joining us is ron epstein, bank of america's senior aerospace analyst boeing shares already bounced a little from the mid 140s but they're pretty close to multi-year lows. if it's going to work. if they're settling the strike if kelly starts putting things in place for a turn around, still might be at a point where you could buy it long term or no? >> ultimately, if you're going to be an investor in boeing you have to think longer term. kelly rightly pointed out in the release, it's going to take time to turn this around. he highlighted important things that have to be addressed one that we talked about before on the show, culture and what's going to happen there. i think everybody is wondering,

i know i am. what's kelly think boeing is going to look line in five years? hae said it's going to be a leaner company, what's that mean are they going to dispose of assets what are they going to do? at the levels today, if they can get production back to where it should be or close to where it should be. if they can get the operating performance maybe not to where it was precovid because one could argue they were overearning but berth than today, could it be upside in the shares yes. but i think investors have to be patient. i expect if the strike ends today or in a couple of weeks whenever it ends that would be a positive catalyst for the shares there's been a lot of talk and news about boeing doing a capital raise. if they can get that behind them, i think a lot of investors looked at that as an event could you see it on a trade in the shares to the upside

sure but to get boeing back to the levels it was or close to the levels where it was pre-covid, pre the max crisis, there's a lot they have to overcome. both sides of the company are losing money today so a lot has to change >> as far as the business to be in, is there a better business than trying to satisfy the demand globally for airliners? you know, if they could just figure it out. they had it figured out for a long time. you know, make them really well and really safe and it's -- you know, you don't want to do it quickly but hit your numbers that all the carriers are expected so they can satisfy the demand they're seeing from customers. but, you know, if you just get those things right, it seems like the future would be really bright yeah, sounds easy.

>> i agree >> globally, how many new planes are we going to need in the next five years globally >> yeah, so, a lot think about it this way. globally on a monthly basis, both boeing and air bus together deliver, you know, 737, 8320 class airplanes at 120 a month and wide body they could both deliver those at 15 to 20 per month. that's a lot of airplanes if you annualize that up month over month and there are only two players that do this you're 100% right. if boeing can get back on the execution track and start delivering airplanes to their customers, have happy customers, have happy employees, get through the strike, there could be a pot of gold in the future but there's a lot of work that has to be done to get there. you're right they split a global market demand for airplanes that

are everywhere, with one player in europe. they have the sales now it's all about execution. >> it's not going to be -- china is not going to -- going to hurt boeing or air -- i mean, on the margin maybe but these are the two leading -- >> i think you have to think about this this is very important it is a big market, right. so if you go out ten years from now and think about the number of airplanes that could be delivered. is there room for a third player absolutely >> it's culture. you're right it's culture but obviously they've done it before they've delivered a lot of planes that were very safe and well made. so then the -- you started with culture and then end with culture too. so they have to get it together and get back to the place where they were before you think ortberg is the right guy? he's anen engineer.

>> he's an engineer came from a copy that was well liked and well run, collins had very happy employees, customers, it was a well-respected company so he comes from the right dna if he could turn boeing into a collins, that would be a roam run. i think that's what everybody is hoping for the difficulty is it's a bigger company with big problems and a balance sheet that's challenged. if you could turn boeing into a collins or half a collins, that would be fantastic and reflected in the shares for sure >> you got a price target? >> right now we're neutral on the shares the price target is 170. it's early days. if we see evidence that things are changing obviously we'd always potentially re-evaluate that but right now just being cautious because there's a lot going on >> great i wanted to ask about the board and whether -- you know, it's so

insular and for so long it seemed like the wrong people were running the plane seems like that's changing ron epstein, thank you kelly ortberg will be on "squawk on the street" at 9:00 a.m. eastern time. it's 8:00 a.m. on the east coast you're watching "squawk box" here on cnbc. i'm becky quick along with joe kernen and andrew ross sorkin. coca-cola, global unit case volume down, the stock down by about 1% make sure to catch coca-cola's ceo exclusively on "squawk on the street" at 10:00 a.m. eastern time at&t reporting mixed results with below estimates i spoke with the cfo who told me revenue missed in large part because people are holding onto their phones longer. it's not really a problem

because he said those aren't profitable dollars for them. he said people are sticking with services, that's where the profit for at&t lies and he added the biggest parts of at&t businesses are growing faster. that stock up about .7%. and starbucks suspending the fiscal 2025 outlook, citing the recent ceo change and the current state of its business. the company announcing preliminary fourth quarter results showing sales fell again trying to execute a turn around. brian niccols said he plans to share more details during starbucks earnings call scheduled for next wednesday dow off 210 points nasdaq down 75, the s&p 500 a little over 13 points i want to get down to the new york stock exchange. mike santoli is at the nyse. what are you thinking about? >> another tentative start about 120 points of the 200 plus

the dow futures are down attributable to mcdonald's decline at the open. moderate declines suggested by the s&p 500 futures. it has been soft footing this week on monday, i mentioned this is the week after an options expe ration in option that means there's deferred selling, a little movement, higher volatility, we've been pressured by higher treasury yields as well hovering below the highs every day this week has been one big megacap, even as the majority of stocks have been digesting and consolidating to the down side. look at where the ten year treasury yield has gotten to it's creating a hesitation in equities, feeling for the spot it's going to pinch equity valuation and performance. i have the 200 day average you see we just popped barely above it right there there's a down trend in place that maybe is going to get

broken, some suggest four and a quarter is an area or 2% yields is where things get dicier though it's worth pointing out we were at the level in july before the growth scare hit we have the weak unemployment claims number. repricing the fed, the economic resilience of the company, and, of course, inflation expectations also have gone down so all that in the mix looking at the big megacaps. microsoft yesterday popped at an interesting spot 50 and 200 day averages coming together on the same point traders took a shot and now an upside move there. it's been dead money for six or seven months, microsoft has not been a help, a huge run into mid year or thereabouts and not a lot since so see about making a stand to play catch up here. >> mike santoli, thank you, sir. when we come back, a lot more on squawk we'll talk about the yields with esther george.

and later this hour, do not go anywhere you do not want to miss this, billionaire investor bill ackman now on the race for the white house. all of his views unfiltered here on sq"squawk box" after this.

welcome back to "squawk box. our next guest is with us to weigh in on the ridse in treasuy yields as we make our way to the next fed decision which comes two days after the presidential election joining us now is esther george. we have seen things creep up i wonder if you're sitting in washington right now what you think we would ultimately be doing? i think we're having a couple of technical difficulties right now with esther george's connection

so we'll try to get her on the broadcast in a moment. so the question comes from the interview with paul tudor jones yesterday. we've been asking that -- >> gold is hitting highs and rates have gone up almost every single day since they cut on the 10 year. >> i don't know if you can hear us, esther but we were discussing the idea that rates continue to climb despite the cuts and what does a jay powell make of that and think about that >> good morning. i think this is a very unusual time when the fed is cutting rates and this is not a weakening economy. i think part of what we're seeing in these longer term rates is the fact that markets are adjusting to the expectations that they've had for some time about the path of interest rates and i think beginning to take note of the fact that we are financing some pretty big

deficits as we go forward with really no end in sight at this point. >> and so, when you get to a november, post election. if you were on this board, what would you be telling jay powell to do? >> so the fed has taken a big cut already. and i think my inclination would be to proceed with caution here. clearly this is a committee that must commit to a forecast. they can't really, although they say they go meeting by meeting, you really are laying out a forecast the most recent data appears to have been stronger than the level of confidence you had going into that big rate cut but i think the fed will have to follow through on its forecast until it sees a little more clarity around how the economy is unfolding and in particular, the path of inflation. >> do you think it was a mistake to cut as much as they did in

september? >> so i don't think you can say it's a mistake yet certainly history will give us a chance to do that. but in the scheme of their current rate cycle, again, i think you have to give this time to play out. and what will matter going forward is the path and how much further they go with that. >> so how strong do you think this economy is? i mean, that's fundamentally th question, not just the growth piece of it but also the labor piece of it. >> i think the economy looks pretty good andrew when you look at the outlook for growth, when you look at the labor market and again we've seen it come off an historically tight level of job markets to now coming into better balance, at the same time, that inflation has come down, those are all good indicators for the economy that doesn't mean that the path ahead isn't going to be

challenging, though. >> let me ask you -- if we can ask it in an apolitical way but i know we have 13 days to an election why do you think this -- what do you attribute the economy's strength to? >> well, i think you have to say that the economy is really operating off a combination of the federal reserve and the federal government taking massive actions during the pandemic we have seen a tremendous amount of fiscal money come into the economy and that is still there. you have seen the federal reserve with a large balance sheet, low interest rates and that combination at a time when supply chains were backed up allowed inflation to get a foothold in the economy. so now you see things backing off. >> when you look at the fiscal spending do you say that was inflationary and that was a bad decision or do you think that

was a good decision, okay decision how do you think about it? paul tudor jones was on our broadcast yesterday and he said eventually the only real answer to our problems in the u.s. is going to be to inflate away our problems. >> i think you have to say, in the short term, many of these decisions are good when you're trying to provide relief to the economy. policy makers however have to look to the long run and the long run is not a pretty picture when it comes to our fiscal situation. so the outlook is inflationary there is more upside risk there and puts pressure on the federal reserve as an independent central bank to decide how it's going to respond. >> that's my question. we talk about the different mandates that the fed has. when it comes to our debt and deficit and how much we're spending over time, how much do you think that's going to get calculated into the larger

scheme of things >> i think it has to get factored into that it has to get factored in this way. you have to look at the path of inflation and understand where there are upside risk, what should the federal reserve be doing to manage that potential risk and that's why, i think, they will have to be more gradual and cautious and looking at the path of interest rates ahead. it doesn't mean there's not going to be further cuts but i think the resting point for those interest rates could well be higher than originally imagined. >> china notwithstanding we have led the world in the way our economy operates i guess i'm talking about europe, you know, versus europe or south america i think 40% higher gdp average over the last 40 or 50 years so we do have a -- we have an economy that's the envy of the world. are we at risk

we were talking about whether we want to get up to france's 52%, you know -- their much higher overall tax rates. much more regulation, much more of a social safety net we're down at i think 29% for taxes. are we at risk of losing that pre-eminent status >> i think you always have to keep in mind what are the factors that led us to be such a great economy and the envy of the world? and that has not come by accident it's come by a combination of things our capital markets our rule of law. but also responsible federal spending and right now, that spending does not look responsible. in fact, it looks like over the long run it could undermine many of those advantages that have made us a great economy and that's why i think it's well worth policy makers' time to really zero in on this issue among many they have to think about.

>> is that something you could not have said when you were the kansas city fed president because you're talking about the spending taking place by your regulator? or your overseer >> i think it is the responsibility of policymakers to talk about factors affecting the economy and affecting the fed's mandate. and when you see upside risk to inflation regardless of where it's coming from, i think policy makers have to note that as part of their outlook for the economy. so i think it's unavoidable. it's not to be political it's to say these are the factors that are influencing an outlook on the economy. >> liesman told me absolutely not. congress decides, the fed says whatever you need we will accommodate. i think they should too. you know, i don't know if the fed is partners in crime with

congress but it's their duty to say, hey, people, what's going on >> that's the definition of it independent central bank >> okay. >> okay, thank you, esther appreciate it. love to talk to you soon. >> thank you. coming up a national emergency that's what "the washington journal" is calling the crises at intel. and then bill ackman joins us for a wide ranging interview on the election, the economy and much more. stay tuned, you're watching "squawk box" and this is cnbc.

welcome back to "squawk box. boeing's new ceo, kelly ortberg, laying out a fresh vision for the company as they reported a third quarter result this morning saying the company needs to be leaner and improve quality and is hopeful the striking

machinist deal can be reached and everyone will get back to work the union members voting on a new proposal today boeing reported a more than $6 billion loss and you don't want to miss the interview later with him next on "squawk on the street." our next guest has a new piece in "the washington journal" titled crisis at boeing and intel are a national emergency. writing the u.s. still designs the world's most innovative products but it's losing the knack for making them. joining us is greg epps. you're right, this is a national emergency. what's to be done about it maybe before we get to what's to be done, describe what happened. >> if you go back a generation and you looked at a list of the most admired manufacturers in america you would have had intel and boeing near the top of the list and probably also general

electric it's shad and shocking what happened to all three companies, ge the shadow of its former self intel is struggling to compete with amc in taiwan and boeing, it's struggling. it's not crazy to talk about break up or bankruptcy this isn't just an issue for shareholders it's an issue for the country. these epitomize what was once the most advanced products with a spinoff for the economy and national security. if we lose any of those companies i think it's troubling for the country. >> what are we to do the chips act was supposed to help intel and make sure we were manufacturing chips in the country. boeing, i think you make the excellent point that neither of these companies are doing this because of cheap imports coming from overseas. these are self-inflicted wounds on both of these companies.

>> i think it's easy to say what we shouldn't do than should do i don't think an across the board tariff is going to be a help to these companies. they could be harmed by a trade war in that respect, actually. and fundamentally, turning these companies around is a job for shareholders and boards. they come to the finalization culture they were obsessed with the share price, earnings per share, didn't invest in long-term projects boeing decided to upgrade the 737 instead of a new airplane. intel said no making the chip for the iphone that's number one. what's the role from government? i firmly believe the best thing washington can do is make sure the world's best manufacturers have a presence here what's the chips act is doing. it's handing to also cmsc and

micron, two semiconductor manufacturers as their presence grows in the united states that helps bring up the local ability and supply chain and i mention this takeover bid for u.s. steel by nippon steels. both conditandidates oppose it g it's bad for the workers but nippon is expert steel makers, don't you want to make the best steel here in the united states? >> seems like it would make sense. you point out this is financial incentives that were structured the wrong way that caused these companies to basically get greedy and not think about the long term. this started under ceos long before the current ceos in both of those companies where is the retribution for those who started it i mean, there's been no club ax

at either company. there's been no anything other than shame on you for making wrong calls and making the wrong decisions. how about the shareholders and the push back they might be able to generate? i i guess it's easier to sell and walk away, but where are the repercussions? >> you know, books could be written and books have been written want the mistakes made by the managers and ceos of these companies. i don't have a lot to offer with that i think shareholders need to look in the mirror, the idea of looking to get share prices higher all the time, buybacks, you have to contrast that with the attitude that the companies and the investor base, tesla and amazon, these lost boat loans of money for years but investors gave them a long rope because they believed in the founder that you build a great business with the earnings you want to make five to ten years from now not the next quarter or second

quarter. when i see that kelly ortberg is talking about bringing management back to boeing's factory floors they're going to sell stocks at a rally, that's encouraging it tells me they're starting to think long term. and i think the union has a role to play here, too. with some justification, they say that boeing got brought down by the mistakes of managers. they're in this together what good is the best contract in the world if the company that gives it to you is struggling to be around 10 or 15 years from now. everybody, i think, has a part to play here >> greg, thank you >> thank you coming up next, the interview of the morning, perishing square's bill ackman will join us on the final countdown to the 2024 election stay tuned you're watching "squawk box" on cnbc

election day, less than two weeks away it is a wednesday, it's on a tuesday. in an interview, bill ackman, and the first thing, bill, just say if someone wants to look

more closely at what your views are, this is a pinned tweet and i think it's kind of a magnum opus on your decision which you had to i think explain must be one of the most interesting periods of your life, i would think recently. >> i wouldn't say that. >> no? >> it's not as consequential it's a consequential election but to my life i've had more consequential moments. >> we're all inundated with the election this time around. it's a pin tweet number of good friends and family have been surprised about my decision to support donald trump and then you go into what some of the reasons are. some finally say accepted but they don't want you to talk other people into voting -- >> i guess i'm violating that. >> you said you think it's so important at this point not that you're endorsing everything trump has done as an individual or a politician but because you think certain things about the

biden/harris administration or harris administration, it's that important for you to get this out because it's for the country. and you hementioned 33 things you're worried about in a harris administration more than talking about a trump administration. >> actually, i intend to do the inverse. this is why not kamala and i also intend why trump before the election. i haven't had a chance. >> this is long. >> it's long -- >> there's 33 -- >> the why trump is the inverse of each of these things. we can go through each of these points i don't know if we get through 33 in the show the inverse is the reason to support him. >> what are the three worse things if biden were to -- or if harris were to be elected. >> i would say it's one of the few times in history you can do an ab comparison we've had

trump's first term, biden/harris and now an opportunity for trump and so we have data to look at ilook at the world during the trump administration versus the world now. it's a bit like drug testing you give the placebo to one side and what the outcome is. i think my biggest issue is the u.s. does not continue in a -- we have some massive world war iii global confrontation i think the world would become a much more dangerous place. and the last -- this administration the reason for that in my view has been the perception and the reality of weakness in the executive branch. >> starting with afghanistan i think. >> probably before that. you can look at what happened, georgia, the acquisition of georgia and the invasion of georgia taking of crimea, the syrian red line, these are things that really obama era but biden really played a role

then, of course, the withdrawal from afghanistan which i think looked like a total abandonment of our partner in the region catastrophic consequences for millions of aftghan women if you look at among the -- a friend of mine was helping to get, you know, high school robotic girls out of -- you know, robotics contest out of afghanistan, all these young women who lost opportunity so i think it was one of the more tragic moments for the country. i think at foreign policy decisions like allowing iran to start selling oil again. they rebuilt their balance sheet, $200 billion, that's what enabled the funding of hamas, hezbollah, right and then our lack of response to the u.s. forces and u.s. assets

being attacked by the houthis, they were on the terror list, they were taken off by the biden administration so we could provide support to the yemen people and when they started attacking u.s. assets we did nothing. only recently have we been more aggressive responding to them. it's like the broken windows thing in a city. terrorists test you out, if you don't respond, the only thing they respect is power. putin rolls into ukraine >> right. >> and i think a major hot war in europe, i hope -- i thought i would never see this in my lifetime a major war in the middle east and it's become a lot less safe to be american 45 americans were killed by hamas. we still have american hostages being held, which has been completely forgeten and never discussed. i haven't heard anything from

biden or harris on hostages. >> i heard more israel better do this more than iran better do this. >> the last couple of days there was some information that came forth that sinwar told his team, don't negotiate any further, pull back from the deal. because the israelis are losing support of the american administration where do they get that from? from our withholding weapons and leaking it we were holding back weapons in a hostage investigation. you asked me three things, that's number one. foreign policy number two, 94 executive orders reversed in the first few days, which opened the border. millions of unvetted people coming into the country -- first of all i am pro immigration. my family immigrated here in the 1890s but they were vetted, tested for diseases. they had to land somewhere where they could demonstrate viable,

you know, able to economically support themselves and, you know, i think even kamala at this point recognizes the problem. a series of executive orders by biden started to address the problem. i think the open border has been a massive problem. >> that's two. what's three >> three, i would say on the economy. you know, you go back to remember the -- were it nothing for mentioned, we would have is had a build back better on top of the financial subsidies coming into the economy, probably 20% inflation or some crazy number if that had been approved there's no understanding of how the economy works. again biden committed to a certain amount of fiscal stimulus as getting elected. and just powered through with it and the impact was very, very negative people harmed the most in the last four years are the lowest economic and those are people for whom inflation has been catastrophic.

inflation not just in groceries and fuel, but also, you know, rents and cost of living, insurance, and these things are driven by -- you know, my opinion, a lack of understanding of economic policy those are probably the three largest. >> first of all, you were a long-time democrat >> i would say i've always been a centrist but i supported mor democrats than republicans. >> this is john kelly, the former chief of staff with trump. he says in many cases i would agree with some of his policies. so you agree with the policy piece of this that i think trump is presenting. but he says it's a dangerous thing to have the wrong person elected in high office he goes on to say in his opinion he believes that trump meets the definition of a fascist would govern like a dictator if allowed and has no understanding of the constitution or the concept of the rule of law he goes on to say that trump had

made admiring statements to him about hitler, you're jewish and care about israel. expressed contempt for disabled veterans and described those who died on the battlefield for the u.s. as losers and suckers how do you get your head around that >> it's one person -- >> it's 28 people who worked for the president not just in close proximity but in the oval office with him who have come out publically and expressed things of this sort >> let's -- >> kamala lost 92% of her staff, too. >> that's a relevant point if you want to talk about -- by the way -- >> one point -- piece on that. there are people who would argue that maybe she was not an organized person and was not a good executive in that regard, but i don't know of anybody who came out publically against kamala harris claiming that she

was for hitler, that she was against the constitution, and that she was calling people who died on the battlefield on our behalf losers. let's put the -- stimulate that. >> let me address. number one, i don't think trump is for hitler. i think that's absurd. >> why say it? when you know that that -- >> this is my hour give me an hour. >> you know it's not true. >> one, trump is not for hitler. most of trump's friends are jewish grew up in new york city real estate community he has a daughter who's jewish grandchildren who are jewish probably the most pro-israel president in terms of committing to do things and executing them. >> what he said -- >> moving the embassy, delivering with the -- you know, controlling the heights to israel >> that's not the question >> i think it's absurd but let's talk for a moment get back to kamala harris. i have personal experience with kamala harris and it relates to

cnbc in march of 2015 at pershing square we received a brown envelope in the male in it was a staff memo from kamala harris' staff when she was attorney general of the state of california and a memo about why her staff believed they should shutdown her bbal life and the consent degree they were found to be a peyramid scheme saying if you don't commit to your actions we can shut you down her staff apparently unbeknownst to us took a hard line analyst, came to the conclusion it was a pyramid scheme advised her she should use her powers as attorney general to shutdown the company and wouldn't what did her staff do? they leaked the memo to us and leaked it to the media why didn't she do anything about it it was march of 2015, she's running for the senate

and her husband, okay, worked for a law firm that was herb life's lawyer she was told it would hurt her campaign for senate and two she didn't want to go against a company, herb life was strategic about the law firm they hired. i don't know if doug emhoff worked on the case that's a character issue in my opinion. for her entire staff -- for her staff to leak a memo like that suggests something about what they think of her as a leader. >> just on the trade off of character alone, you think her character is worse than his? >> i'm not saying it's worse. >> how do you measure character. >> getting back to herb life, it's a company that has caused enormous economic harm to the lowest economic strata many undocumented immigrants those were herb life's and probably still are people ripped off by the country she could have protected them

with a stroke of a pen and chose not to because shelf it would harm her senate campaign and cause grief for her husband's law firm that to me is a character issue. >> how do you feel about former president trump who has spoken about how he's frustrated and upset with google which is in your portfolio and how he believes it's a rigged company and plans to two after them on a personal basis right. >> i don't know that he's -- he's unhappy i think the -- >> we've seen, by the way, google a.i. if you look at the early iterations, gemini and otherwise -- >> how do you feel as someone who owns a stock like that and has a president speaking not just about we could have a fill sofic conversation whether google is a monopoly or they're doing good things or bad things. it's different when you say i hate this company because i think they're doing something

bad to me and i'm going to go after them as a result of it that's a different thing >> okay. i'm here because as an american citizen i think it's the best interest of the country for trump to be president versus kamala harris. it causes harm to a company that i have an investment in, so be it. >> it's kamala. >> kamala. >> kamala. >> he's not saying kamala. >> no. >> it's -- i apologize vp harris. >> so my point here is i don't think -- i don't think trump is perfect. i don't think vp harris is perfect. but i think it's a very different world again on global security i think trump is going to end the war in ukraine i think putin would like the war to end it's been a disaster for russia. i can't see a world and the vice president sitting down with putin and resolving the war. trump is a deal maker this is

what he does for a living. he's going to threaten putin with hundreds of billions of dollars for zelenskyy and if zelenskyy is the problem in the negotiation he'll threaten to withdraw support for zelenskyy and both will feel threatened -- >> what happens when putin goes after the rest of europe >> if putin does that, trump will be -- there's a reason why the world was a safer place, because the dictators feared trump. trump says look, if you step into ukraine i'm going to bomb moscow assume he would say something like that. putin would take that thing seriously from him he wouldn't know if he was serious or not that's the de -- the deterrents come from the risk -- >> that's a big delta on a good outcome and a bad outcome? >> with no experience in foreign policy being the commander in chief for the country. >> i say the vice president has

had experience in foreign policy -- >> bad experience. >> experience and it's been a disaster >> just empirical the world is a less safe place. look at what happens happened on college campuses right. kids are afraid to go to class or at a minimum, their learning has been disrupted by violent protests on campus starts out as antiisrael and then anti-american protest people are burning flags this was not happening during the trump administration trump said if any student here on a visa is supporting a terrorist, i'm going to deport them immediately i haven't heard that from vice president harris. >> just as a -- do you think that a repudiation of some of the aoc or this part of the democratic party where it is right now, it's -- it may be coming i don't know you know, if you don't believe the betting odds, fine

just as a repudiation of some of that it would almost be a positive for the country. >> 100%. i think the single best thing for the democratic party as a party is for massive losses. and that will cause a reboot, a change in the leadership -- >> the danger is that when you characterize someone as a fascist dictator rapist and you've already got him there and if the american people do elect him, there are certain people that are never going to accept this. >> a judge has determined -- a judge determined rape. >> he wasn't convicted of rape >> there's a lot of legal cases that are brought against trump which i think lack -- and there are cases -- >> that's beside the -- >> determining -- >> findings for juries. >> juries make mistakes and they rely on instructions from judges. >> one thing i was going to ask about is you care about ms.

information and truth. >> yes. >> you have been prolific on twitter. >> which increases the repost of an error -- >> that's what i wanted to ask you about this you have a massive following and what you think your responsibility is as such given that and one of the examples you had a tweet out earlier this year directed at bob iger, disney's ceo who owns abc, effectively alleging or claiming and you said, if true, that you felt that -- or you thought the debate, given some of the stuff going around, was mishandled -- >> what i said was the following -- >> my -- >> so i'm on twitter, x, published an affidavit that made a series of claims about the debate that had some credibility to it -- >> it turned out to be wrong >> elements of the debate that made it look -- the nature of

the fact checking and otherwise. and if that happened on cnbc, right, the right thing to do, in my opinion, is fine, do an investigation, determine whether it's true or false. >> questions had they been given to the candidate -- to harris -- >> among other things. >> and your point was they didn't turn it down, they didn't say no this didn't happen and there were other things like the size of the podiums that hadn't been disclosed in advance. >> there were a series of allegations that made it look like the debate was quote/unquote rigged an objective media organization would say we're going to look at the emails, see if something untoward took place. and in light of the proximity to an election -- >> but it turned out to be wrong. >> i don't know. >> you published it that it turned out to be wrong. >> i said it looks like it was not a true -- there's been no

investigation. we know i think there's questions about the credibility of the person who posted it that made me come to the conclusion it's likely not true. >> are you going to change or shift what you post as a result of things like this? do you think this is the way to do it? >> if someone were to -- if it were to happen again were someone to question the fair nsz or treatment of candidates in a debate, and i thought it was credible and the media organization that controlled the show did nothing about it, i would have no qualms at all about pinging the ceo and saying, look, this is worthy of an investigation or a clearer denial that's not the case we still haven't gotten that. >> you think there are -- you heard our earlier discussion do you think there are ceos afraid to come out for kamala harris because of retribution from the trump administration or vice versa is it harder to come out for trump or -- i think it's a no

brainer. i could go to every book party in new york and cocktail party and the main stream media would love me and joe kernen would be great if i were to endorse kamala harris. >> you're right. >> it's a nightmare for you. >>ceos - >> and say, i'd like to support -- >> thank you for saying what you're saying. i wish i were similarly situated but all my employees would quit. i hear stuff like that. >> if you read 20 things kamala harris has said it's to business and free markets and the filibuster and the rule of law and to the border and they're all afraid to even say, well, she didn't mean any of it. >> joe, you're preaching to the converted. >> i know. look, i think we could tone down the emotion. i think it's a really important decision if you want to make the decision on economics or stock market, you should feel free to do so. if you want to make the decision on the basis of -- >> character.

>> -- national security, if you just -- the people who -- i've had many, many people who continue to support vice president harris who say to me, you know what, bill, i agree with basically every one of your concerns, but i just don't like the guy. i think he's rude, i think he's - >> but it's not -- >> -- he's crass, i don't like his style, i hate him. that's a meaningful percentage of people. then the people say, okay, the world's going to end, democracy is over, he's going to become a dictator at 82 at the end of his term, he's now stalin. there are some meaningful, thoughtful people who this is what they believe. by the way, i respect them. >> by the way, i would argue those people fear the risk of that i don't think anyone thinks that risk exists with kamala harris do you agree with that. >> i think the -- >> your risk - >> can i just ask you, bill, we've talked to a lot of people this last week and a half, we've

heard from a lot of people who are major investors. are you making bets on what's going to happen with the election where would you put those bets >> so, we have no bets in the portfolio on the basis of who's going to be president. you know, we don't short stocks anymore, as you know we own these great american businesses obviously, in a better economy -- and let's talk -- it's cnbc. let's talk a little about the economics of the next candidate. trump is the only candidate that's talked about in the growth of the country and the only way we're going to dig ourselves out of $36 billion o liability is growth. there's two answers when you're overleveraged. once is you can negotiate with your creditors, the other is increase the value of your assets how do you do that you increase your profitability. how do you increase your profitability? reduce expenses. he's the only candidate -- actually, let's talk about team for a moment it's not really trump versus

harris it's the trump team versus the harris team. what have we seen? trump's picked jd vance as his vice president i'm afraid of misproceed noubsing - >> kamala has picked -- has picked walz. walz is a self-described knucklehead. i can't imagine a world in which this guy is president of the united states. you have to look at the vice president as a potential president of the united states if i line them up, you know, you've got a guy who grew up in a very, very challenged environment, addiction family, rural america, makes his way to yale, armed forces, now he's venture capitalist, senator. extremely articulate obviously, highly intelligent. compare and contrast elon musk, one of the most consequential business leaders -- >> 100%. >> -- in the world, has proven he can take on 12 things at the same time -- >> she's got mark cuban. >> -- and change the world as

to -- who has put himself out here in this election, and first the only one talking about government efficiency, right, and trump's all in but rfk, okay, rfk is a highly intelligent, capable person. he's focused on a couple of issues that are -- mean a lot to me number one, the food industrial complex, what's happened to the health of americans over the last couple of decades he's going to focus on that. i think that is a critically important issue. i think examining the 73-shot regime we give our kids and -- it's worth doing. >> you've spent your whole career talking about truth, honestly you go out there publicly talking about companies you think are lying. >> sure. >> i just want to know what you think when you see, for example, former president trump publicly say, on the record, that he forced deere to not move to mexico, and then the company has to come out with a statement that says that that's false. fundamentally false. he puts on twitter -- or on

social -- on his social media platform that jamie dimon is endorsing him, and then jp morga has to come out and say it's not true. >> that's not what happened. jamie said some positive things about trump. someone posted on twitter that jamie endorsed him and trump, in effect, retweeted it. >> but someone who cares about truth, the deere example, because that's as black and white as they come, what do you think of that? >> i think there are many examples of trump convincing or threatening a cup that if they open a factory in mexico, he's going to tariff their goods and maybe it scared the company. but he's -- hold on. i want to make my own argument. >> you can. >> you get to do it all day. >> there are lies on both sides. >> vice president harris puts stuff out about trump that are completely false for example, he's going to sign a federal abortion ban

he's not going to sign a federal abortion ban in capital letters, he said it publicly, posted it. i can give you multiple examples look at her twitter feed, x feed, it's a series of lies about president trump. again, i look forward to a world, maybe it's four years from now, and we have two candidates and it's november 5th again and none of them have lied none of them have personal issues they're like the world's most incredible candidates and it's so hard to decide because they're amazing. human beings are flawed. donald trump is flawed kamala harris is flawed. >> they lie and it's the same. what about eating pets honestly - >> first of all -- >> we only have a couple of minutes. >> let's focus about the issue the issue is when you totally open borders and flying 20,000 immigrants from one culture into a city of 40,000 people, and there isn't sufficient infrastructure and they don't have driver's licenses and they have different habits. by the way, maybe, you know, it

wasn't cats and dogs but they were trapping geese in the pond or whatever. whatever the ultimate truth is it's the -- there's a symbolic element there. by the way, there are -- in the debate, okay, vice president harris said multiple things that were not true. hold on. she said multiple things that were totally false she was not fact-checked for one of them. trump was fact-checked for some that turned out to be true crime rate was up meaningfully and that was fact-checked to be false. and they changed their results andle said violent crime has increased over the last four years. i think that's why at the end of the day, it's going to be about which team do you want do you want trump/vance/elon musk, i think gabbert is capable, democrats come over who are the team members on this side that we know other than tim

walz tim walz is -- i mean, maybe he's a good guy, but he's one of the most unimpressive -- i can't imagine him being senator, let alone -- >> i don't know if you believe it that, perhaps, if jamie dimon would be open to being her treasury secretary >> that would be fantastic by the way, who ends up being president, i'm going to support that president because i care about the country and i think the citizens' obligation is to help the country and whoever the president is first of all, trump's going to have a very effective treasury secretary, who that person is. you know, jamie dimon, i think, is pretty cautious, as is every business leader, about leaning in either way. >> the treasury secretary of the united states or secretary of state, that would be a good thing, in your mind? i'm just asking the question >> i don't think he's a treasury secretary candidate. >> secretary of state? >> one of my concerns for trump this time around, would highly capable people be willing to step in and work in a trump administration i think the answer has proven to be yes

and i think, you know, the other benefit we have, trump did not expect to be president of the united states. you know, the polls were like 92% clinton and, you know, 8% going into the election. he was completely unprepared at 12:30 in the morning everyone surprised that -- although i had bet he would be president, by the way. i won a couple of nice dinners on the basis of that he was unprepared. took time to assemble a team he was attacked immediately with the russian investigation. this time he's had years of experience he expects -- he expects to win. people are publicly lining up to support him, you know, sort of already. i think he'll have no trouble bringing in a very capable team. there are many ceos who are, you know, former ceos, other very capable business people who want to be in this administration i'm going to help him any way i possibly can i'm not going to be a member of the administration - >> okay. we've got to - >> we're out of time >> we're out of time

>> thank you >> thank you for coming in and great conversation. >> we can check the markets quickly. >> oh, thank you >> make sure you join us tomorrow boeing ceo is going to be on "squawk on the street" and that's coming up in a couple of minutes. we will see you tomorrow thank you. good wednesday morning welcome to "squawk on the street." big morning for giant corporate other thannings. at&t, coke, and we'll talk to the ceo of boeing in a minute. the road map begins with the heart of earnings season boeing ceo will join us, exclusively in a few minutes. mcdonald shares are tumbling this morning at least ahead of the open a deadly e.