his secretary of state. it's tuesday, november 12th. that was only a week ago. only a week ago. "squawk box" begins right now. >> good morning, everybody. i'm becky quick along with joe kernen and andrew ross sorkin. it's only been a week since the election, but, boy, have we seen moves ever since. let's take a look at the futures this morning. this is the first time we've seen red arrows in the morning after the election. dow is indicated down only by about 8 points, the nasdaq off by 35. both the s&p and nasdaq says new

records yet again yesterday. it does come after the dow was up 304 points up yesterday in the session. and we're talking about major moves. i think the s&p is up about 4% since the election day. if you're looking at much bigger moves, you might be checking out bitcoin, which we'll take a look at in just a moment. it's up about 32% since election day. and then you've got tesla shares up about 40% since election day. treasury market this morning it was closed yesterday for veterans day. this morning you are looking at higher yields. the ten, year at 359, and the two-year at 341. >> time now to take a look at the price of bitcoin because we did move higher. now we're about 86,000 right now, but it's been on the move. and check out the move in some of the other crypto-related stocks since trump's electoral victory last week. we've got some big gainers including coinbase up nearly 75%, and then we also have robin hood, up 35%, which is a nice way to tease this.

the robinhood ceo and coinbase ceo going to be on our broadcast this morning. some interviews you do not want to miss. >> you've wane watching this. shares of home depot actually just reporting. courtney reagan joins us right now. she's got the numbers on that. >> hi, good morning. it's good to be here. home depot did beat estimates for its fiscal quarterly earnings on revenue of 3.22 billion. that's also stronger than analyst estimates of $39.2 billion. total tauchlerable sales were down, but that's much better than the negative 3.3% estimate. u.s. coms down 1.2%. that marks the eighth quarter of negative comps. full year comp sales to fall 2.5%. that's a slight improvement from the previous expectation of down 3 to 4%. and i spoke to cfo richard

mcphail who said this is not an expectation of what they expect to come. it was due to warm dry weather in the u.s. and hurricanes milton and helene. the home owners home depot serves are still in this deferal mind-set when it comes to big projects. he says, quote, our customers continue to tell us economic uncertainty and higher borrowing costs are on their minds. also clarifying to say we don't see trade down. we see deferral. it's not as if projects are being executed at lower price points, but he's still not ready to predict when homeowner deferral will turn around. i think the worst of the decline in-housing turnover is probably behind us. very interesting in that they're still sort of slogging along, but maybe some slight improvement in what they've seen

over the last two years. >> i'm just trying to think through, okay, we think the worst of the turnover housing decline is behind us, which means maybe people will start moving again. >> exactly. maybe it will start sort of picking up in that degree because he talks a lot about the housing shortage and how many of their customers, of course, are staying put. they want to do projects in their home. they believe in the asset value in their home. i think he said valued 19, 15 trillion -- i think i'm going to mess mess that up a bit. but trillions of dollars. it's tough to move and with the interest rates where they are, they're hesitant to start new projects that would require financing. >> i guess a lot of that has to do with consumer confidence, and i don't know how that is going to be measured post-election. if you look at the stock market, investor confidence is up immediately. if it doesn't translate. >> two brains the same. i said now we're post the

election, you've been talking about that uncertainty. is some of that uncertainty gone. he said it's only been six, seven days, i don't know we can quite measure that yet. >> did he say anything about the potential tariffs and what that might mean for them? >> we asked about that, and he didn't want to reveal the percentage they source from china, but in the past when we looked at this a couple years ago it was not among one of the higher companies. he did note he sourced a lot from north america. to that my follow up question was what about mexico. he did say we have a decent amount of sourcing from mexico. >> obviously watching closely to see what comes out. there's a lot of people who said take trump seriously but not literally. so the number is going to be a big issue, which countries get targeted. >> exactly. what rates will they be? obviously there's some exemptions. sometimes these companies can apply for exemptions. that's worked for some of these

product categories writ large. it was an interesting conversation for sure, and i think things are still plodding along but still economic factors in the way. >> there might be nobody left down on the stock, in other words nobody losing money. >> 18% year to date. >> 421, i think there was a print at one point we were at 418. everybody else in the history of the world an all-time high. >> passed away the day before or the day of the elections. >> didn't see what happened. >> i think he saw it. >> no, it was tuesday. >> in heaven. >> that's nice. that's nice. it is. i saw something on -- that's a different story but i'll tell you on break what i saw over the weekend where this guy saw the

light and saw -- >> tell me in break. >> but there's something going on i think, i hope. 415 market cap approximately, if you take in today's gain. >> huge are, right? >> almost half a trillion. >> very big. >> courtney, thanks. president-elect trump continues to staff key roles in his new administration. eamon javers has been -- no, no. you're not -- i thought that's what i was leading to joins us now from west palm beach, florida, with the latest. you're not expecting a call, are you? >> reporter: no, i would be wildly unqualify under any of these positions, joe. look, yesterday on veterans day we saw the trump administration -- the incoming trump administration, trump transition fleshing out the defense side, the national security side, the diplomatic side of their upcoming

administration. starting with marco rubio, the florida senator who is expected now to be named as secretary of state. rubio, of course, a one-time trump opponent who's now sort of worked his way back into trump's good graces. he is seen as acceptable to the maga base but also simpatico with donald trump on the two key foreign policy issues. that is on the issue of china, rubio very much a china hawk. and also on the issue of ukraine funding, he's a skeptic on ukraine funding. also congressman mike waltz expected now to be named national security advisor. he's a former u.s. army green beret who served overseas. he's someone who played a key role for the trump campaign during the convention back in milwaukee. and south dakota governor kristi noem expected to be named

homeland security. apparently now she's going to be getting homeland security. all of this is little tbd until official announcements come. we expect her to get that slot, and that puts her in charge of a key piece of donald trump's key piece and that is immigration. that will be a key priority for them. we expect now donald trump to travel to washington tomorrow to meet with joe biden and also to meet with speaker of the house mike johnson. and republican leadership tbd on which republican leader he'll meet with because they're in the middle of their senate republican election today and tomorrow. so we'll see who exactly trump sits down with in washington. but he'll have a chance to reset in the nation's capitol as well as picking all the folks that he's picking for his new administration down here in mar-a-lago, guys. back over to you. >> you have any idea, eamon, whether rick scott has been getting more votes than he did previously? he was sort of a dark horse. do you hear any scuttlebutt, or

does thune have the inside track? >> reporter: i don't. what's funny is down here everybody is focused on the new administration and much less chatter about what's going on amongst senate republicans. obviously in washington that's a crucial area. so fascinating to see over the weekend donald trump tweeting out or posting out i should say anybody who wants to run for leader in the republican senate needs to support recess appointments, which is an idea that might give donald trump a lot more latitude in getting his nominees through up on capitol hill if they do enter a recess very early on in the new term. trump could nominate a lot of people to his cabinet without necessarily getting that senate confirmation. so if he has people he wants to pick on his mind down here in mar-a-lago and he doesn't think they can get a senate confirmation vote, if he can get republican leadership to go along with that, and they all seem to be very willing to fall in line, he might -- >> that's when we could get you

in, eamon. when all the totally unqualified people get in, it's during a recess appointment, i think. >> reporter: i would qualify as totally unqualified, joe. all i'm trying to do down here, all i want is an invite to mar-a-lago for lunch. i hear it's fantastic. let me know if you know anybody. >> all right, i will let you know that. you're ready to talk. i saw it. i know you. >> no, i was going to ask him if there was any -- i wanted to know about scuttlebutt around some of the financial figures down there. treasury commerce, if there was anything new to the names we've already heard bandied about, eamon. >> reporter: nothing yet, but they did sort of national security and defense all at once, so you wonder if they're going to do the economy team all at once, too, coming up. >> do you think it's already prebaked? >> reporter: i think a lot of this has been -- the fact they're moving so quickly does give you a sense a lot of this

was pre-baked, a lot of this was thought through already. >> that's probably susie wilds as work. she told donors yesterday they're looking at this they have two years to get things done, not four, which is smart. presidents often have to deal with that two years in. it sounds like they want to hit the ground running and get as much accomplished as quickly as possible. >> reporter: they are moving very fast, and what a change from what we saw last time around from the 2016 election where it was real chaos on the trump side. this is much more efficient, much more smooth in terms of the rollout. you do get the sense they are prepared and they know what they're doing. >> all right. >> okay. coming up, a lot more right here on "squawk box" this morning. we've got some key inflation data on tap. this week we're going to talk market strategy right after the break prch. and then later we're going to break down election results with west virginia senator joe manchin who's going to be on

squawk. we're coming right back after this.

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of green, a little less green this morning, mona, but we've also been batting around what the fed may have to do or what's going on with the ten-year at least. where do you stand this morning? >> yeah, you know, look, it's been a really nice post-election rally for the markets. i think the s&p is up 3.5% in this week alone, and it's really been driven by a broadening of market leadership theme we've seen begin in the third quarter of this year and really get extended post-election as well. so you see areas like small caps and midcaps playing some catch-up. you're seeing areas like cyclical parts of the market, financials, industrials, energy, play some catch-up alongside your kind of tech and a.i. trades. and of course in the bond market we're seeing a little bit of pressure on bonds given, you know, while we have pro-growth policies potentially on one side, we have potentially some higher inflation and parts of the market that may induce deficits going forward. we say this broadening of market leadership theme has legs, but

be mindful that may start to creep up in the months ahead. >> given how much the market has moved in the past week as you just described and look at the rest of the year do you say to yourself there's a lot more room to run, do you say there's going to be a pull back? where are you? >> that's a great question. look, we've had two very strong back-to-back years in the s&p 500. 24% hast year. are we going to get a third straight ear of 20% plus returns? we think that pace of gains can moderate from year. we know that receive object of 2 to 3, kind of 5, 10% plus corrections hasn't played out. as we get to this period of what are policies going to do going forward, there will be some uncertainty in the market that takes hold. that is still an opportunity. keep in mind, the average bull market does last about four years. it's up over 100%. we're year three of the bull market and we're up 60% plus. could we have some legs here,

absolutely. but we're really watching the fundamental story. what is the economying to, what are earnings doing, and is the fed continuing to move in the right direction? we think the answer thus far is yes and supportive -- >> there's a fascinating piece. we didn't talk about it yesterday, there's a piece in the journal about warren buffett, i don't know if you saw it effectively talking about him building an ark, effectively, a $300 billion ark, and whether he knew something we don't know given he seems to be at least slowly or maybe fast getting out of the market and what that's about, but also was referencing so many of the other big financial houses and what their long-term over the next ten-year base case is on annual basis and they're 3%, 5%, not 20%. >> yeah, absolutely. look, i think the 3% figure had a range around it of 0 to 7%. we do think that pace of gains

may moderate going forward. looking at economic growth of 2, 2.5% in the u.s. we're looking at inflation that continues to coperate but that lends itself to nomnal growth of 5% or so. when you think about it we've had a great deal of expansion already. earnings growth may be the driver of returns. next year we're looking at the earnings growth profile have probably somewhere in the 8 to 10% range. if you purely base it on that, we're still looking at a decent s&p 500 return next year. you have to think about what areas can benefit from value expansion and probably not as much the value cap tech and a.i. parts of the market, but look at other parts of the market that may also benefit from the value benefits expansion in addition to the earnings growth story. that's how we're positioning for the year ahead. >> okay, final question. would you buy bitcoin at $86,000? >> yeah, look, we think there are great opportunities in the market even outside of bitcoin.

when you think about moving some of that cash-like instruments into equities and in bond markets, we still think, you know, bitcoin remains a little speculative here. we continue to like fundamentals in equities and bonds that can really provide that long-term growth profile for investors as well. compound interest, we know, is that eighth wonder of the world. if you stick to your long-term plan, that really is what works overtime as well. >> you should have stopped at yeah. that's how you started answering. you started answering by going, yeah. and if you can buy it at 86,000 you get a deal because it's about 87,500 right now. >> you got to be fast. >> mona, i want to thank you for joining us this morning. >> thanks, guys. >> good to see you. coming up elon musk's wealth

soaring amid soars of shares in tesla. eye popping numbers after the break. and then judy shelten was trump's pick to the fed's governing board, but her confirmation were narrowly blocked by the senate. she'll join us to talk about fed independence in his second term. that's straight ahead. and get iphone 16 pro with apple intelligence, on us. for everyone in the family. only on verizon. (intercom) flight deck we are go for launch! (ethan) is that the one? (janet) so much space! that open kitchen! (tanya) ...is that a walk in closet? (ethan) i want those tiles! (intercom) boosters engaged. (ethan) wait! we've got a problem! (janet) problem?! (ethan) how can you sell your house when we're stuck on a space station for months???!!! (tanya) no, no! bad timing, janet!!! (janet) but that was the one!!!! (brian) no, no, no... opendoor!! (tanya) don't open the door. (brian) opendoor gives you the flexibility to sell and buy on your timeline. (all) really? (brian) yea!!! (intercom) we have liftoff. (janet) nice! (janet) houston we have a playroom!

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shares of tesla have jumped nearly 40% since president trump's electoral victory last week. as of yesterday's close those gains have lifted elon musk's net worth by about $70 billion to close to $320 billion. that's according to forbes.

that puts him ahead of larry elseson, who's now the world's second richest person by $90 billion. elon musk is ahead of him by about $90 billion. there was a bloomberg report talking about how hedge funds betting against elon musk had lost $5.2 million in paper losses. anyone shorting the stock has obviously gotten hurt pretty badly. >> we're back to brucenters millions. >> you spend it quick enough? >> you just can never. $320 billion. >> it's hard to imagine. >> that's why you build a really nice house on mars, i think. with a lot of land. you probably got -- you don't even need fences, i don't think. but he could do that. it's that much money, he could build a house on mars. what else would you do with it? >> take a rocket ship to mars.

>> it's not even his money. i'm trying to figure out what that would feel like to -- your life would not be about money, that's all there is to it. it would be about politics i guess. >> all sorts of other things. >> coming up today's top stories including a halt on flights to haiti by several airlines. this was disturbing, the actual bullet holes after a commercial flight was struck by gunfire yesterday. that story straight ahead. as we head to break, here's a look at yesterday's s&p 500 winners and losers. it all started with a small business idea. it's a pillow with a speaker in it! that's right craig. pulling in the perfect team to get the job done. i'm just here for the internets. at&t, it's super-fast!

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good morning and welcome to "squawk box" right here on cnbc. we're live at the nasdaq market site in times square. take a look at the futures right now. i've got some green, just a little bit of green on the dow naz dock about 22 points, the s&p 500 off about 3 points.

>> let's get you caught up with five things you need to know ahead of today's opening bell. first up chipotle has named scott at its interim ceo. he took over after ceo brian nikhil went to run starbucks. considering spinning off its stake in its home services company, angie's to shareholders. that company formerly known as angie's list. southwest airlines will offer buy outs to workers on volunteer leave in los angeles and atlanta. that move comes as southwest grapples with fewer plane deliveries from boeing than it had expected and expensive new labor contracts as well. in the meantime, boeing's quality chief is leaving after less than a year in the role. the company had said she always planned to retire this year and she will be replaced by a supply chain executive, and several

airlines including jet blue, american airlines and spirit airlines are halting flights to haiti. that comes after a spirit airlines flight was struck by gunfire yesterday forcing it to be diverted to the dominican republic. one flight attendant reported minor injuries. no passengers were hurt. >> thank you. i know what, i'm going to give them a sixth thing as a bonus? instead of five. did we say advi, recently acquired drug for schizophrenia. it did not hit a key goal in midstage study. i had to select which one to go. i decided to skip the matel story. i'm going to skip it. instead i'm going to skip it. that would have been seven things. and stay tuned. we'd have to rise the price of she was one of president trump's

fed board nominees, but the senate voted against her confirmation. could be renominated, i guess. we're going to talk fed independence next. and a reminder get the best of "squawk box" on our daily podcast. follow squawk pod on your fari p cast app and even use a podcast you don't like. listen anytime. we'll be right back. (♪♪) (♪♪) (♪♪) everyone has goals and dreams. and everyone deserves a way to get there. wherever you're going, getting there starts here. state street invest in your future with dia, the only etf that tracks the dow. (♪♪)

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>> the fed's independence has been called into question. utah senator mike lee calling for an end to the fed. in a tweet he wrote in his words, the executive branch should be under the direction of the president. that's how the constitution was designed. the federal reserve is one of the many examples of how we have deviated from the constitution in that regard. yet, another reason why we

should, #endthefed. our next guest says the senator is stand up for the constitution in her words with courage and insight. joining us now shelby shelton, one of president-elect trump's fed nominees. i was thinking about this yesterday. it's good to see you. it's gotten to the point where if it's a discussion, it's almost heretical. it reminded me of a religion to even talk about he idea. it's such a sacred cow. and instead of talking about what might be good reasons to at least look at the inner workings of the fed, it's what you always bring to us, the idea of the way the fed is setup that it benefitted and actually caused them to hoard money because they made a trillion dollars combined

between all of them instead of lending it out. instead of questioning the way the fed works, everybody's like, oh, my god, this is hearsay. it's almost like saying you're going to get rid of apple ie and hot dogs or something. >> i think it has become sacrosanct in a way that prevents us from looking at improvements of the fed. if the definition of central bank independence means no legislative oversight, if it means no limits on the financial capabilities of the federal reserve, and if it means no real accountability, the fed often claims it has responsibility for stable prices, but nobody got fired after we had the worst inflation in 40 years. so i think it's healthy to challenge some of the -- the powers that have been accumulated -- >> it's almost orthodoxy, which

is another religious term, that i think. >> well, should there be limits on how much federal debt it can purchase, can there be limits on the amount of interest it can pay to commercial banks at taxpayer expense to keep reserve sitting at the fed in depository accounts doing nothing to provide capital resources to the real economy. >> here's one of the great conundrums of this. if you left the federal reserve to effectively be controlled by an executive branch or some -- effectively the american public to effectively vote on what they think the federal reserve should or should not be doing, which to some degree is what you're talking about -- i think there's degrees here to what we're really talking about -- in most cases, i hate to say this i think the american public would make the wrong decision almost every single time. i think the aftermath of the

financial crisis of 2008 is a prime example of that given the way the public felt at that time. >> that was the fed, that wasn't the public that brought us that -- >> no, no, no. what would have happened is left to their own devices, we would have shutdown the tire system because people would say we don't want to give any money to banks. right, that's what would have happened. if you had done a straw vote of the american public what to do, they would be like don't give any money to horrible bankers. they get nothing. >> that's your opinion, i don't know. >> but you mean in the aftermath of a global financial meltdown -- and i don't know any other institution that would be more responsible for properly calibrating the amount of money and credit in the system than the federal reserve. now you're talking about absolving it. >> this is not to defend, but i'm saying there will be mistakes made repeatedly if you let -- there will always be

mistakes. you don't believe mistakes will get made? invariably there's going to be some level of mistakes. >> i think you're talk about who should have the ability to manipulate interest rates. you're saying i wouldn't that to be in the executive branch or legislative, but should the federal reserve, should they be doing that? >> although the one point we've made we've never seen a president who wants higher interest rates because it's counter to what they want to do which is stoke the economy and keep it going. >> especially real estate, guys. >> one point of fact which is that senator mark lee is barking up the wrong tree. >> barking up the wrong neck of the woods. >> whatever. the federal reserve is a creation of congress. the problem is not that the executive branch does not have control over the fed because the executive branch did not create the fed. the fed is not part of the executive branch. if you have a problem with the federal reserve and the federal reserve act, it's a problem of congress. this flows from the controls of the purse, which is the

prerogative of congress, and then i think the questions judy asked are interesting and worth exploring should there be limits how much debt. those are prerogatives of congress to put on, and there's a reason for that because of some the things andy said, whether or not you want to be paying banks to limit the floor on interest rates, that's an interesting question. you can't say which what senator mike lee did, which i kind of think is a little embarrassing, that the problem is the executive branch. it's not the executive brafrp. it's congress. if congress wants to limit these things, it has every ability to get together and do so, but it hasn't done so. it has given the fed -- what judy points out is an interesting article a triparthide mandate. i would push back on judy in the

sense there is oversight in the fed at congress. report twice at year at humphrey haw kns. they do testify and respond. if that oversight is not sufficient, it's a problem of congress is what i would point out. >> steve is exactly right in the sense the fed does answer to congress because that's in the constitution. that's article 1, section 8. so it's up to congress to regulate the money. and they have farmed out that responsibility to a government agency. >> right. >> and so i think that's what we're talking about. i just want to say, too, though, you mentioned trump being a real estate guy. in 2015 when he was first beginning to run for president, he acknowledged that. he said i'm a real estate guy, of course i love low rates. but he also said but think of the people who are being responsible, who don't own financial assets who are putting money in the bank to save for

retirement every week. he said they are getting creamed. >> but that was before he was president, too. i mean, i literally have never heard a president say i wish -- >> but think what happened to him. he came in and the very next month, the fed raised interest rates. this was under janet yellen. in 2017 they raised them another three times. then powell came in. in 2018 they raised them another four times. so eight consecutive increases after being near zero for all those year post-2008. and trump made i think the logical argument. he said we have -- we haven't hit the target. we're under your 2% target rate. we have record low unemployment that's benefitting minority groups and ringing in more worker participation. we have good economic growth, good productivity. why would you deliberately, preemptively curtail growth and

limit employment when there's no inflation? >> rates came down and everyone said trump -- >> rates came down and -- did they cave in or did they come around to agreeing with him? >> can we pivot to what judy thinks we ought to do now? you have this very weird landscape. interest rates are lowering, fed is cutting, what's the prescription, judy? >> well, i've said and i've said on this program, i think, of course, zero rates make no sense. when the fed started raising by december 2022, they hit a target range of 4.75, to 4.50. that's where i said you have a real return on capital and you don't get the distortions. that affects their 2% inflation rate, and then i would get hands

off. it's the constant ratcheting up and ratcheting down. right now the fed set itself up with two frameworks. the framework for most of this has been if we see good numbers and high unemployment, we keep rates high. suddenly they flip to the new recalibration approach. and, you know, this whole thing about i think the media sets up this idea that authoritarian president is going to try to browbeat the fed. when the fed made that decision in september, only one member of the board disagreed, and it was the first time in 19 years. i mean, if there's any browbeating going on, it's to get consensus at the fed. suddenly they switch to dropping interest rates and reaffirm that with another quarter point drop, but now this is the first time at a press conference that i heard the chairman start talking

about fiscal responsibility and kind of hinting that, well, we might have to increase interest rates. i like the second approach of the fed, which is to recalibrate, because i think it fits in with a supply side program. if you had more growth because of lower taxes, less regulation, if the fed had a concomtent reduction in interest rate, that dove tails, and that expands supply. the fed's model targets cutting demand. >> chairman powell talking now about fiscal responsibility is there's been ramped up pressure on the fed to do something like that especially as you've watched the longer end yields rise as they've been cutting rates. >> an interesting change in priority. he would only mention it -- remember how passive he used to be and say we're staying in our lane, we take fiscal as given? >> we've had investor after big

investor come on and say the fed should be saying something like this. >> and the market is pricing it in. i think it's important, by the way, to talk about what powell has said. you talk about raising interest rates. he was asked the question would you raise interest rates, and he said you know i don't want to say, but a year from now we might do it, who knows? but it's not our plan. so that's not really what he's talking about essentially. >> fair enough. fair enough. >> i think it's a little much to put words in his mouth and say he's talking about raising interest rates. and i also believe that the idea of the fed -- by the way, joe has been hot and heavy on this idea. we have a running argument, which is an interesting debate, i think. should the fed act in a way to limit the ability of congress to borrow. >> judy thinks yes, i think. >> joe thought they should higher rates to lower the deficit. >> they should at least be really -- maybe they don't do anything, but when they see more things getting passed they're

like -- powell should be like this. >> i called your kids, joe, and i said your dad wants you to have the ability to limit -- >> that's the problem. i am like the fed with my kids. >> i think there's no emphasis. and that's why i welcome even reexamining our thoughts on the appropriate role of the fed, a new emphasis on sound finances and sound money. >> right. instead of a hair on fire moment i think at least admit that -- and we also. he's like why do they keep talking. i don't know when if he's going to have anything to do with the fed in the future, kevin. at some point, but he's like stop with the guidance. stop with the -- there's a lot. >> having a press conference at every rate setting meeting eight times a year was chair powell's idea. >> they originally had it on just the meetings where they had the new forecast. >> right. >> look, i'm in favor of a lot more transparency. i'm not sure this is --

>> if you get rid of the fed, what are you going to do? >> play music. >> your entire beat would be irrelevant. >> there's a different question here which is how do you have this conversation? there may be as important conversation to be had about all the reforms and things you may want to do in the fed and a debate about that, but there's also a danger in the debate itself in a very kind of twisted way, which is if the public and really the investor -- the bond market thinks that this is all, you know, going to come undone or is in disarray, just that unto itself can be dangerous. there's a sort of interesting question about how do you have that debate? if you believe that debate is needed, how do you have it at the same time you have stability? >> i do think we have to consider it, but that is a symptom of the problem. the markets are fixated on the fed. the fed is too prominent in financial markets, too powerful.

>> that's like telling the viewers they're too powerful because they can change the channel. the public has the ability or the bond market has the ability. you can't change them. >> no, but you can have less activist fed, and i think that would be very helpful. i think the fed has self- self-aggrandized and now sees itself in almost a dual with a democratically elected president who was elected because of his policies and his promises related to the economic grievances of voters. i mean, we've seen the fed in the last four years we've had $42 trillion in u.s. household wealth in increase. 62% of that went to the top 10% wealthiest americans, the 90th percentile, and i think it creates a sense of monetary --

>> do you expect for trump to nominate you again? have you talked to him? >> i don't know, i'm -- no, i haven't talked with him about that. i was honored he nominated me twice both before and after the election. because after january you have to reenter a nomination, and he did that for me. >> okay. >> and i'll always be honored by that. >> joe, could you come back? if you're going to end the fed, what are you going to replace it with? >> i haven't figured that out. it's kind of like obamacare. i've got a plan. i have a plan. concept of a plan.

all right, welcome back,

everybody. u.s. consumer spending gaining some momentum as we head into the holidays. spending per household on bank of america credit and debit cards rose 1% year over year in october. that was a rebound from a 9 or a 0.9% decline in september. and joining us right now to talk about is liz everett, the head of bank of america institute. liz, how would you qualify or how would you describe the strength of the american consumer right now? >> i think the way to understand the strength is to look at consumer confidence, right? and we saw last friday consumer confidence continued to go up for the fourth month in a row. we're now above -- we're where we were back in april, and the question is why is that? and our data gives a little bit of a clue in that when we look at the spending on necessity goods, so, gas, for example, it's coming down. why? because gas is deflating, because prices coming down. if we look at groceries, food

inflation is also coming down. so as consumers are feeling better about not having to spend as much on necessities, we're starting to see an increase in disasianary services, restaurants in particular continue to go up. so that feeling of confidence in the consumer is i think what's driving some of the momentum. >> we've been trying to get a feel for what's happened since the election. it's really easy to see investor confidence when you just look at the stock market and the gains we've seen in so many places there since election day last week. the data you're looking at is through october 31st. >> so it's through the end of october, right. >> what can you tell us about anything you might have seen since -- since the election? >> you have to have me back next month to talk about that, but what i can tell you is about expectations. and we're talking about the holiday season. i know it seems early to talk about holidays, but we are in november. and when we asked consumers how they feel about the holidays -- we did a survey -- they are saying they're going to spend on average $2100 this year, which is 7% higher than it was a year

ago when they answered that question. before you get excited there's going to be more presents under the tree, the reason they're saying they're going to spend more is because they're anticipating higher prices. now, we're also seeing 60% of the people said that because they're anticipating these higher prices, they're going to do more shopping at discount stores, do more value shopping, trade down. which is consistent when we've seen through the summer. we saw this in apparel stores, saw this in restaurants, et cetera. people are trading down to more value, but they're still consuming more. and i think the really other important part to understand is what's going on with wages because wages are going to continue to drive the consumer. and our wage data, or deposit data is showing that every group is seeing their take-home pay accelerate. higher income, in particular, which is really important because as you know the higher income drive more of the spending, they are -- their wages are up 2% -- were up 2% in

october, which is a rebound from kind of the flat to negative last year. >> is that a precusser to tell us anything about the potential for inflation, like wage driven inflation? >> well, it does a little bit. now, it's up. it's up 2%. but remember it was up high single digits, double digits before. wage inflation is coming down but it is still positive. >> can you break out spending geared towards halloween or anything that people think of preholiday? >> we don't break out halloween in particular. one of the things i would say interesting to consider, and some of this may be that halloween is considered a holiday, but consumers are now doing more of their holiday shopping, they're starting earlier and doing more of it online. so when we look at the holiday spend in october so far it's tracking above where it was in 2023, starting above where it was in 2022, and that is also consumers have changed how they do that shopping. so no longer are people going to

the mall on christmas eve like my brother and starting shopping then. instead, the period around cyber monday, which is coming up, is becoming increasingly important. so since 2019 that has now grown to be 13% of total holiday spend. >> wow. so even if you're seeing this increased online spending heading into it, that doesn't necessarily tell you it's going to be a better holiday shopping season for the retailer? >> correct, it doesn't. but i will say when we look at the october data, again the shift to not only earlier but online, we're seeing online spend growth double the rate of brick and mortar spend growth. so people are shopping, again, earlier, online, but it still looks like there's momentum for the holiday season. >> come back as soon as you can tell us about the post-elections then, too. >> will be here. >> thanks. just past 7:00 a.m. on the east coast. you're watching jury box on cnbc. among today's top stories the white house transition taking shape. president-elect trump announcing

his first cabinet picks and key advisers. among the nominations former congressman and florida congressman mike waltz, a china critic in line to be named national security advisor. and then florida senator and noted china crit cot marco rubio expected to be named trump's pick for secretary of state. so a lot of names and a lot to consider there. meantime, boeing says its top quality executive leaving after less than a year in the role as the company works to restart its factories after a machinist strike. elizabeth lund was appointed to this newly created role back in february in the wake of that accident where a door plug blew off an alaska airlines flight, i should mention. the 59-year-old was responsible for overseeing the quality controlats boeing's commercial airplanes unit. and social media platforms threads and blue sky seeing an

influx of users since the election as many seek an alternative to elon musk's x platform. it is now adding 700,000 new users in the past week alone while meta's own threads is the top rated in the app store. checking the futures, i guess, not a lot, well actually it's changed a little. we did have the dow about about 10 points earlier, now down about 44. but muted moves given what we've seen in the past week. let's get to dom chu with a look at this morning's premarket movers. >> we'll start with a check on bitcoin, crypto currencies in general taking a bit of a breather as well after that massive post-election rally. bitcoin did hit an all-time record as it neared close to that 90,000 mark. crypto miners like market strategy, robinhood,

microstrategy moving higher. crypto strategies like robinhood and coinbase showing some signs of a slight pull back, so taking a bit of a breather off that massive move we've seen. be sure to stay tuned to "squawk box" later in the 8:00 a.m. hour because ware going to get much more on crypto surge and interview. also coinbase ceo brian armstrong both on in the 8:00 hour, both in first on cnbc interviews give us us the state of play, if you will, in crypto currencies. moving to a big component in the stock market. shares of home depot moving lower. it also raised its full-year outlook. that company seeing a boost of its acquisition with hurricane weather-related repairs and warmer weather driving demand. but america's biggest home improvement retailer still sees cautious consumer spending on the backs of things like higher mortgage rates and borrowing costs in general. so home depot shares up about 1% helping the dow's story. and we'll end with a check on in

line home services check angie, angie shares right now showing a 10% loss there. again, parent company iec also said it's exploring a spin-off of the home improvement platform as of monday. while iec says there's no specific time line for the spin-off, the company is looking at the second quarter. keep an eye on those stocks, joe. i'll send things back over to you guys. >> all right, we shall do that, dom. angie. what was wrong with angie's list? it was better. angie i think of the rolling stones. >> that's a good song. >> or the angie dickinson that's scary. remember that one? >> no. >> with michael kaine? that was awesome. whfrmgts we come back exxon ceo

darren woods going to join us live from the client conference. "squawk box" back after a quick break.

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walmart and drinkcirkul.com. all right, welcome back, everybody. the united nations climate change conference, cop29 began inizer inizer, azerbaijan yesterday. the ceo of exxon mobile. and thank you for being with us today. this is a little different cop. there are a lot of nations who aren't there, and a lot of people wondering what the united states is going to do after trump pruz re-elected to come

back in. he had pulled out of the paris accords before, and i guess i wonder what you are thinking and what exxon's plans are going to be in this post-election world. >> well, good to see you, again, becky. thanks for having me on. i will tell you that, you know, our investment horizon as you know is very long. we think about things from a very strong foundation, fundamentals of where the future is going and build the business and plan based on that future. we don't get too overly focused on any one administration or the changes in those administrations. and at the same time we recognize the challenge that the world faces today with trying to find affordable ways to significantly reduce emissions while continuing to meet the growing demand for energy is a critical challenge. and we think as a company with the businesses that we have and the work that we're doing, we can bring a perspective there to help the world solve this problem in a rational, a thoughtful way that balances economic needs, the needs of

society to continue to grow, of people's prosperity to continue to rise, but at the same time reduce emissions. >> darren, how do you do that when you don't know what the rules are going to be, what the financial incentives will be coming from companies? you all have laid out pretty aggressive plans for investing in carbon capture, things like hydrogen, things like lithium. but if you are no longer going to be compensated for some of those issues, if there's not some carry over plan to where taxpayer dollars put forth for that, do you change your plans? >> yeah, i think with all of our investments, they're obviously built on a foundation of generating advantage returns. we're bringing the advantages we have as a company and the skills and capabilities to lower the cost of doing it, but ultimately the needs to be an incentive to award those investments to generate a return. and if we find those incentives dissipate or go away entirely,

then that would definitely change our investment plans. i think the point we're trying to make is the world needs to have a long-term approach to reducing emissions, that you can do it in a very cost-effective way and we're talking about what those proaches could be to help solve those problems. >> you had vowed about $20 billion through 2027 on some of those initiatives, some of those things like carbon capture. is that up for debate, at this point? will that change if the incentive structure is no longer there? >> so, we didn't vow. i will tell you we had a plan that laid out spending to decarbonize our own business and worked to decarbonize third party businesses, and that totaled about $20 billion through 2027. roughly split 50-50 between our own emissions reductions and those of third parties.

we said for all those investments they were contingent on the right kind of policy and market being in place to justify those investments, and that continues to be the case. >> what do you hear from other countries you're interacting would there, other companies. what do they think about the potential for change? >> well, i think everybody's interested in understanding how the new administration is going to come into office and what changes he's going to make. you know, my position has been, you know, the trump administration campaigned on the idea that biden broke it, and he's going to fix it. trump is going to fix it. i would say that kind of approach ought to be applied to all these things. the common sense approach that he's trying to bring to the u.s. and policy and regulation within the u.s., i think he can bring that same approach to the cop and continue to have the u.s. influence policy around the world, how to rationally approach this transition and do it in an economically sustainable way.

>> i know it's incredibly early, but have you had any conversations with the incoming administration or anyone who might be involved with that? >> not since the election, i haven't had any conversations, no. >> darren, i think the other big question is what happens with the major oil producers? will they step up drilling if there are things that are made easier, if it's regulations that are made simplified to do some of these things? we've made the point that the major oil companies have been very disciplined in their approach in terms of how much they're going to invest and where they're going to put those investments when it comes to fossil fuels both for oil and natural gas. if the regulatory environment changed, would you be putting more money to work on trying to get more fossil fuels out of the ground? >> well, i think the answer to that question is depending on the time frame that you're looking at, i think certainly in the short-term our company, and i assume that many of our competitors are focused on an

optimized investment level today to maximize returns on the dollars they're putting on the ground and fairly unconstrained with respect to what we're doing in the short-term. frng i i think as the industry moves down the depletion curve, access to additional is going to be important parameter in businesses continuing to produce, and so i think the trump administration can bring additional clarity and certainty around that access, which today isn't available to the industry. so i think in the short-term, i wouldn't expect to see a lot of big changes. i think going forward it's really around making sure you have the optionality to continue to do what we have been doing. >> we've seen oil prices actually come down, wti and brent have both come down over the last several months. what's the price where oil is no longer profitable, or what's the break even point for you at

exxon mobile? >> i think it's going to vary across the industry. we have always said we want to be below $40 a barrel. we feel very comfortable with a break even price. as you know we've cut a lot of cost out of the business and focused on technology to lower the capital cost as well. so a break even below 40 -- we're pretty comfortable with that. >> and the demand picture at you see these days? >> demand is at record highs right now. if you look at third quarter demand for oil was at record high. gasoline, diesel. i see as we go into next year we're going to continue to see i think a very good healthy demand for petroleum products. the counter to that, though, there's a lots of supply available to do. that supply is what's keeping the oil markets very stable. >> darren, i want to thank you for joining us again.

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up next, palantir's head of defense joins us to discuss national security, china, and more under president-elect trump. as we head to break, a check on the futures. we're coming right back. >> time now for today's affleck trivia question which fbs college football program currently has the longest winning streak? the answer when "squawk box" returns. i mean, you.

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answer, army, with 13 straight wins. welcome back to "squawk box." president-elect donald trump picking florida congressman mike waltz to be his national security advise, according to multiple sources and reports florida senator marco rubio expected to be named. looking at multiple threats facing president-elect trump, mark gallagher. head of defense and distinguished fellow with hudson institute. he's got a piece we're going to talk about in a second. but, mike, before we even get there, let's talk about some of these names. i'd love to get your thoughts. i think most of these names are actually relatively aligned with your thoughts about national security, specifically china. >> i think these are fantastic picks by donald trump thus far. if you care about standing up to china, if you want an aggressive approach to jihadists in the middle east, you want a strong border, narco terrorists south

of our border or on fentanyl, this is a fantastic team shaping up. i served with mike waltz on the armed services committee, on the intelligence committee. he's a veteran. he has a deep well of experience. he's an incredible communicator when it comes to taking complex national security issues and talking about them in a way that resonates with the american people. and he has private sector experience. that's a rare combination. i think he'll do very, very well, and he he sees the china threat. an unpallgetic voice for american leadership in the world, she's going to put russia and china and iran on the defense. i think she'll bring a reform agenda to the u.n., which is in desperate need of reform. and then rubio as secretary of state obviously right now as vice chair of the intel committee and made it a priority

in the senate. i think beyond a clear view on china and strong stance on the support of israel, what rubio can bring to froggy bottom is a focus on an area that's been neglected for decades now, which is our own backyard, central america, southern america, restoring some version of monroe doctrine in the present day, tackling russian and chinese influence then southern hemisphere. this is three for three right now, donald trump. he's picked fantastic people i i hope he continues this momentum. it's very good news. >> in terms of china, though, because that's been your big issue for a very long time now. how do you think that these names change or impact whatever the relationship looks like? and how much does it turn from being a competition to being demonstrable adversaries? >> i think it will turn to recognizing reality, which is is that this isn't some polite tennis match that we call a competition. it is a new cold war with

existential stakes. china's trying to displace us as the world's sole super power, trying to destroy our alliances, but that's a stepping off point for realizing its global ambitions. so i think this team, again if this trend continues, will have a far more realistic view of not only china's global ambitions but also how to deal with them. that starts with investing in a credible military deterrent, getting very creative, thinking like insurgents in the indo-pacific. thinking about how we get more bang for our buck on the military side. but it also continues into the diplomatic realm, being able to stand cross from xi jinping and adversaries, and not being lured into this sort of diplomatic dance where we take our foot off the gas which i think really explains the last two years of the biden administration. >> can we talk about the defense

budget? this is something i imagine you'll have a view on perhaps will want to influence ultimately, which is to say we're all trying to figure out what tax revenue is going to look like in the future under this new administration, what spending is going to look like. one of the big buckets of spending is defense money. there's a lot of folks from private sector that are now going to be entering this administration with thoughts about -- and maybe also advisory thoughts in terms of elon musk and others about what this should look like. do you think defense spending ultimately goes up, is there so much fat in the system there's a way to do this better? i imagine the new technologies and things given you work at palantir, ultimately from a dollar sper perspective what does that look like? >> i think the budget can keep pace with inflation, which buys time to make budget reforms.

to the spirit of your question, i don't think there's going to be a massive infusion of new resources, which is why you have to get creative. you can do things like leveraging cutting edge software in order to automate the tail in order to reinvest in the tooth. so that the largest branch of the military, dod civilians at 900,000 people don't consume as many resources and the rurss are consumed by war fighters and weapons and the things that actually scare the crap out of xi jinping. so that's one thing you can do. the other thing you can do is use all the money that's appropriated by congress that the pentagon doesn't spend, upwards of $15 billion a year and invest it in the right things like critical munitions and ships. and then also you can enforce existing law to ensure that the pentagon is buying commercial items first. there's existing law that forces a commercial preference onto government agencies. the only problem is they ignore it and violate it. listen, the reason spacex was able to deliver the falcon 9

rocket for $400 million when nasa estimated it would cost $4 billion is because they used commercial procedures and practices. so i do think the next secretary of defense needs an aggressive reform agenda, and it's going to take their personal involvement as well as them recruiting the best and the brightest from the tech sector in order to change the world's biggest bureaucracy, which is very, very resistant to change, and only that type of leadership backed by the president is going to give us that type of change. >> one last piece because you lived in congress, so many of the components and so many writ large are different states and different congress folks are beneficiaries of that. so the question is how do you break that conundrum, which is to say there are going to be lots of markets where folks that used to be in your roll are going to say we need to keep you

to spending over here. >> i think you have to remind the american people and go directly to the american people that this is all about national security. it's not about jobs. it's not about political interests. it's about defending america from the communists, the sohalfi ejihadists, and the narco traffickers who want to destroy us. and everybody needs to understand the stakes. if xi jinping wants to go to war with us over taiwan in 2027, we have two years to restore our credible military deterrent. we can't play stupid, colloquial political games. we have the opportunity right new to reform our entire national security apparatus just like eisenhower did in the '50s. and that was the old cold war. this is the new cold war. we need to recognize it exists and do everything we need to win it. >> thank you for being here.

when we come back the president of global affairs jared cohen will join us to talk out the a.i. revolution and much more. "squawk box" will be right back. ♪ ♪ whether your phone's broken or old, we've got you. with verizon, anyone can trade in any phone, any condition and get iphone 16 pro with apple intelligence, on us. for everyone in the family. only on verizon. (intercom) t minus 10... (janet) so much space! that open kitchen! (tanya) ...definitely the one! (ethan) but how can you sell your house when we're stuck on a space station for months???!!! (brian) opendoor gives you the flexibility to sell and buy on your timeline. (janet) nice! (intercom) flightdeck, see you at the house warming.

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shares of live nation are sharply higher. the company reported its biggest summer concert season to date. the number of shows was up 13%, and fan attendance was up by 3%. profits were up 39% over the prior year, although revenue of $7.7 billion was down by 6%. live nation didn't provide guidance for the rest of the year but said it has already sold a record of more than 20 million tickets for concerts in 2025, as it prepares for tours from popular acts cold play and shakira. that stock up by more than 6% this morning. coming up a break down where americans are spending money and what it says about the state of the economy. we're coming right back.

the latest results of the

cnbc retail monitor for october are out, and steve liesman is here. what did you learn? >> the cnbc nrf monitors a solid bounce back after a disappointing september where americans see a little extra money in their pocket from declining gas prices. from all over the country shows retail sales on gas our metric there up 0.3% and core retail takes restaurants ut from 0.8 to 0.6 year on year. note a solid gain in september, the disparity may be related to the treatment of labor data. we'll talk about that more in a second. sporting goods and hobbies up 2.7. nonstore retail, nonessential items, 1.#.

health, homes, hobbies, and health all doing pretty well. clothing and accessories down a tick. spend on gas has fallen three months in a row and 12 in the past 14 months. retail monitor bounces around relative to the census data you can see there. over the last three months the absolute error rate is 0.3. it remains to be seen how much hurricane will affect the spending data. this data allows us to bore in on week by week spending in seven cities. i just got the data yesterday. haven't had a chance to crunch it for tv, but it's pretty interesting. >> do you know if it shows increases over the week by week? did it steadily build through the -- >> it depends on the category. you can imagine, becky, they went to home depot and we can show that increase in building and home supplies in the week

before. as paul walsh, remember we used to have him on all the time whenever we had storms? he said spending follows the forecast. so if the forecast is going to land -- >> is he talkting about for weather? >> spending related to weather follows the forecast for the weather. >> meaning i get supplied for things if i know there's a big storm. >> if you think it's coming and a big question how much you believe it. it's really interesting i went back and looked -- let me shut this computer up. i'm fascinated by forecast of the weather. they nailed this storm five days out in the western gulf of mexico was going to hit over here in florida five days earlier, and they had it pretty much within a 50-mile range. but of course it didn't hit the tampa area. it went down a little bit south, so there was some spending related to the storm that never hit, and then of course there's a bounce back on the other side of it. also the way this thing hit and one of the other storms hit in

appalachia is very different from anything else we've ever seen. >> steve, thank you. >> pleasure. >> seeou y later. when we come back we're going to talk markets ahead of tomorrow's cpi data. "squawk box" will be right back.

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and get one free for a year. the futures right now, there they are. that's all i need to say. for more on the markets the head of strategy and markets. it wasn't long before we had you on at the time of the election and you noted something wicked was coming this way in terms of volatility. and as you point out, it didn't last the entire day. the volatility and the premium and all the risk rates came out very quickly, but about what time that day the markets knew it wasn't going to be a

protracted thing. and that's what they were worried about. you think they were looking at the betting markets, the options markets, or all in tandem? >> prapts. i think one thing we learned from this exercise at least is relative to polling markets, the derivative markets were far more accurate. you know, the one thing we wrote about is when you look at the vol crush, meaning there's a huge volatility premium that comes in at any event. obviously a u.s. election is a major event. we saw what you would call trump trades. we measured them in thematic baskets, all rally yg prior to that day being over. when you think about signals going forward, the derivatives market, these thematic markets were much more accurate than what the polls were telling you that day, which it still continues to be very close. >> i wonder what if the betting

markets were following that data or whether that data was following the betting markets or both. i think it's all a manifestation of the same thing. investors knowing, you know, when you've got money on the line, it's a lot more than answering someone's phone and either or whatever makes the polls so useless. >> well, i think one thing that's interesting. and you guys have talked about this, too, there was sort of a whale in one of the betting markets, and that person was anonymous, but 3-in-1 thing they've said was they've sort of taken a look at this more agnostically and tried to model out that volatility. if i had to hazard a guess this is probably someone who traffics in derivatives, because when you think about it it's just really getting specific measures of that probability, and that's a very apolitical statement. it's thinking about the proper way to measure those tails, which all fat tails or left

tails or right tails, but getting that down to a accurate level is something that derivative traders try to do all day long. >> the odds were $27 million, and i said at the time i'd love to make $27 million. i think a much better feel for the election than last night's game. if you can double, you know, your money on something like that, but you're not doing it for fun. some of the other stuff, has the trump trade finished? you think maybe not because so many long hedge funds didn't take a position, and they're going to wait until after the election to play these things. >> yes. so what i have said is when you kind of look at different cohorts, meaning the hedge funds or the long onlies, when we've had conversations, and this is anecdotecally, but you see it in the data, too, a lot of long

onlies were saying we're going to wait for the data to be over. some people were prepositioned, some people weren't. one thing that tells me because we have seen this play before, because we saw this kind of the fomo momentum when people needed to get into the a.i. rally early this year. those sort of sentiments in the derivatives market look very similar to what we saw the first half of this year. we saw the call buying that hasn't gone away in what ruyou would call the trump sectors. even though we might have the near-term flagging, that's the tell wind behind you. and after that, you just have seasonality for november. it tends to be a time where volatility is very muted and tends to be a time when the market rallies anyway. >> if you wanted to piggyback from here, what would you do? what would you be long? what would you be short? >> we do in different way. i think the one that is most

obvious right now is iwm. and when you look at the call wing of that iwm, people continue to buy that right tail. now, outside of that we have a lot of thematic baskets we talk about, which is just if you simply look back to 2016 there these beta sensitive play books they might be old economy trades, trades heavily skewed to deregulation, an example of an etf proxy that would play that. but those have done very well. we've seen multistandard deviation moves. when you see that in the derivatives market it means it will continue. >> and russell is going to keep going then, you think? >> yeah, we continue to see that in our skew data. so it doesn't mean there won't be near-term flags, but when you see that it means it continues for a while. >> great. always great to have you. coming up next we're going to talk about global a.i. and

the race with jared cohen of goldman sachs global institute. we're coming back with him after this. that's the power of curiosity. better questions can lead to better solutions. t. rowe price. invest with confidence. there are some feelings you can get with any sportsbook. t. rowe price. ohhh! the highs! no, no, no. the no, no, noooos - oooooooo! the oh, oh, ohhhhs!

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>> welcome back to "squawk

box." artificial intelligence requires an abundant amount of energy and the a.i. boom means companies are pouring huge sums of money in. i want to bring in president of global affairs at goldman sachs and also former ceo of jigsaw. you talk about a.i. or really you're talking these days about the diplomacy that may be required around the idea of these data centers and how much energy is being consumed and how much energy is being used. but when you talk about diplomacy as it relates to a.i., what are you talking about? >> first of all, let's start with what the problem is. there's a lot of known unknown around generative a.i., versus small models. will the use cases every justify the spend to be the more urgent -- >> by the way, what do you think -- >> i think it's too early to know. i think there's a much more urge want question which is can we build the capacity to meet all these demand? the short answer is we can but not exclusively in the u.s.

the u.s. doesn't have enough powered land, doesn't have enough data centers, doesn't have enough base load. >> what does a differentiated data center mean? >> if you look at data centers for cloud versus a.i. work loads, they require, they're ultrahigh density. they require a concentrated power source. and so intermittent power like wind and solar, they don't fit the bill. you need base load power so think nuclear, coal, natural gas. we have plenty of that in the u.s., the problem is we can't transport it from where it is to multiple jurisdictions because it's not in my backyard. there's not a single geography i would say represents a panacea to this problem. >> when you talk about about this is the idea you would put these data centers in mexico or canada and hope you could benefit from them that way? where would you place these

things. >> the u.s. has three options none ideal. one option is you would keep them in the democratic world, canada, australia, the nordic countries good for liquid cooling. france. >> you could do in australia given how much you need to communicate back and forth? >> one of the things that's happened with technological innovation we have a separation now between training inference, so that's unlocked a lot of new geologies. a lot of countries have the same issues we have in the u.s. esg concerns, not in my backyard concerns. the other option you go with the default choice which is persist where it already exists in the global south, think malaysia, indonesia where you have cheap energy. the problem is that power goes to china, so you have a national security concern. the third option goes to the middle east, cheap energy. they know how to build massive amounts of infrastructure at scale. they have plenty of land. they can do it near the sea for

liquid cooling. they have the sovereign ambition to do it. the challenge is once they have all that capacity, these are geopolitical swing states, so how do you keep them on sides? >> how do you keep them on sides? what do you do? what are you telling clients to do? >> first and foremost, it's the u.s. government's choice first and foremost because of export controls. so the u.s. gets to decide who can get the chips and who can't get the chips. so this is an interesting policy question that's going to play out in the new administration. so when you think about these three different options, you have to view it through the lens of the new administration just elected. >> export controls that matter in this record? >> so it turns out there's a limit -- if you think about the geopolitical swing states, these are countries that benefit from sustained tensions between the u.s. and china because they have a differentiated amount of the supply chain. they're trapped to near shore and offshore and they have an abundant amount of capital -- >> i like and why do you call t

swing states? >> india and ukraine is aligned with the u.s. on china. if you look in the middle east they pick and choose they want to align with the u.s. on. these countries just can't do whatever they want when it comes to a.i. because at the end of the day they need the u.s. government to allow them to actually have access to the technology. >> hey, jared, the question about why do we have so much control over the chips when a lot of these aren't even u.s. companies, we were togging about this yesterday and i'm not sure i understand. is it because we are the biggest purchaser, and you have to make sure you listen to us if you want to do business with us? >> it comes down we have a huge amount of dominance because of the hyperscalers. obviously nvidia has, you know, a massive amount of influence in terms of allocation. they're not, you know, the only player but they have a massive amount of influence in terms of

the allocation. the u.s. is kind of an incumbent advantage in this. what's interesting is if you asked me before generative a.i. what the technology story was between the u.s. and china i would have said the u.s. had a three-decade first mover advantage over china and it kind of looked like it was ending in a tie. and then when we all found out about generative a.i. at the same time on november 30, 2022, it gave the u.s. a technology lifeline because china didn't have the compute power that was required to run these large language models. interestingly it was because export controls are been put in place on chips required to run these large language model just a month before we all found out about chatgpt. >> so do you see any company that's outside of the u.s. excelling in this space? >> look, there's certainly plenty of incentive for that to happen. >> it hasn't happened yet because you were talking about china. so where is china on a relative

basis, do you think? >> right now china has an uphill battle when it comes to generative a.i. and large language model. they also don't want to train their existing models at internet scale and the way they govern their models is restrictive. that being said one of the things we're starting to see in china is an efficiency innovation renaissance, where they're using the compute constraints to capture efficiency in the model itself. what i would say is this is where the question of open models versus closed models kmu new play. every time there's an open weighted model that gets release, that model kind of, you know, puts code out into the public domain, and then china has access to that as well. >> jared, we have once again the luxury of taking esg concerns seriously here because we can pay more if we need to if we want the inflation. if capital flow is going did you know hill it's going to places

that aren't as concerned with that. they're going to get the least expensive energy sources. if it goes there, is it a problem security wise it's not here, or are we back to saying, oh, my god, it's vulnerable because we need onshore all this stuff. and will we be able we need to on-shore this stuff. will we be able to use the high degree carbon? will we do the hydro carbon here? if it is india, they may do coal for a lot of this, right? >> two separate questions here, one is the risk of having too much capacity inside of countries who, you know, made decide to share that capacity with adversary. >> or not let us have it. >> a country that is not in line with the u.s. a geo swing state will never pivot away from the u.s. there's a contradiction with

some of the technology and some of the esg goals. this is true for both a.i. workloads and by, the way, for electric vehicles. if you think about electric vehicles, it requires critical minerals to be processed and refined. 90 plus percent of that happens in china to go into batteries. the dirty part gets processed to china so we have cleaner cars. the same thing with a.i. the large language models can be transformative in capturing energy efficiency. the short-term, to run the large language models, the base load power. the short-term contradiction we have to grapple with. there is not a good answer to this because you can't use intermittent power. >> in a trump word, i mean, there could be a lot more hydro carbons doing this domestically and we obviate that.

>> you are still saying it's not enough. >> still not enough. >> my feeling is the u.s. has plenty of potential to do this, but the need to meet this capacity is so urgent. we have to bring another 35 plus gigawatts of power online relative to the 17 gigawatts online feeding the data centers in the next couple years. that's not enough -- that's not enough time. the u.s. is going to continue to lead in the space, but not able to lead on its own. >> are you sure in australia f it is going this way and not that, it is not going to work? you know what i sneen it doesn't work down there the same? you sure? >> before we let you go, we got to -- we got to mention. jared is also an author and now moonlighting as a children's book author of a book called "speaking of america." tell everybody what it's about. >> it takes one line spoken by every single president.

it talks about what was happening in the country when they stayed it and what they meant by the words and how the words have um impact. i wrote it because we have no choice but to talk to our kids about politicians. they hear it on tv and i want a resource for parents to talk about politics and get a refresher on american history. >> jared cohen. >> which one of them has a name very similar to a dance? >> to a dance? >> it was on "jeopardy!" last night. >> i don't think there is a rutherford hayes dance. >> james polk. >> polk. >> the polka. that was the answer on "jeopardy!." i give a boomer report every day. that was one of the answers. what ask james -- who is james

polk. you have to put it in the form of a question as you know. maybe you don't. >> thanks for coming in. >> thank you. it is just after 8:00 a.m. on the east coast and you are watching "squawk box" on cnbc. i'm becky quick with joe kernen and sorkin andrew ross sorkin. bitcoin is $85,9670. that is after yesterday's high was just shy of $90,000. bitcoin has rallied 25% since lasts week's election with president trump een as a friendly president. ioc is looking to spin off angi. the company formerly known as angie's list. in a letter to shareholders, the ceo said the transaction would result in the company's 85% stake distributed to shareholders. if iac goes ahead with the trans

action, it will happen in the second quarter. and amazon is pouring none the a.i. chips as it works to bring down data center costs according to the financial times. the report says that more details are expected next month when amazon announces availability of chips to train a.i. models. home depot out with third quarter results today. the company beating the street's expectation on the top and bottom line. home depot saw the eighth straight quarter of sales, but it was the smallest decline in the last seven quarters. that stock was up 1.47%. joining us is brian nagel at oppenheimer. brian, the improvement is because of what they saw in the third quarter. they're still not giving a ton of guidance on what to expect in the fourth quarter and beyond. what did you think of the earnings report? >> good morning, becky.

look, i think it was more of the same. i know we talked a lot about home depot and home improvement space on your show. as i dig through the third quarter report, i think the upside as you mentioned in the opening, sales were a bit better than expected. negative, but a bit better. the negative was the function of weather. we had two significant storms that crossed florida and southeastern united states in the period. you also have the warmer temperatures which is a mixed bag overall. nonetheless, this was largely a weather driven sales upside. we saw that in margins. the weather-related sales gains are profitable. >> they talked about categories that were improved. things like grills and paint that have been under pressure for some time. is this just the cycle of people needing to renew things or is this a little more consumer confidence? >> well, look, that's the hope. the hope is that all those

grills that were purchased early in the pandemic are going down. there's also a weather component. this is where it gets difficult to decipher this in real-time. as the temperatures stay warmer across the country, that could drive incremental grill sales later in the season. all this said, the positive here is and by no means i would add the would with home depot, but it shows demand. there is still demand for these types of products. >> you know, home depot may have under performed market so far, but year to date, it's up 20%. that's nothing to sneeze at. that does imply people are feeling better for the return of home improvement projects coming back up. >> well, look, i think that's a great point. i frankly have been a bit surprised with the strength of home depot shares like you pointed out, still under performing in a strong market,

but big cap name. as i'm talking to our clients, what i hear a lot of is people buying this stock ahead of which is expected to be the benefit of lower rates. i totally agree. as rates moderate, demand for home related products will improve, but my team and i published analysis not long ago at past rate cycles. what we showed was clear, a leave/lag relationship. the benefits of home related spending comes after rates moderate. that's what i think is happening. what the market is saying is it's only a matter of time before home sales improve as the fed continues to lower interest rates. >> brian, thank you. good to see you. >> thank you. i appreciate it. coming up, bitcoin and other cryptocurrency surging after donald trump's election win. we'll have interviews with two of the most important players in

the industry. robinhood ceo vlad tenev and coinbase brian armstrong in the same show. i'm not kidding. stay with us. "squawk box" will be right back. at t. rowe price, we help advisors move forward by building agile etfs designed to outperform the index. . that's the power of curiosity. better questions can lead to better solutions. t. rowe price. invest with confidence.

welcome back to "squawk box." shares of robinhood up 30% since the election after donald trump taking the white house for the second time. robinhood said the election night was the biggest overnight session ever with 11 times the robinhood ceo vlad tenev. we are watching the all-time highs here can you explain to the viewer and everybody who i think is trying to make sense of this, what under president-elect trump, we'll see in the form of regulation that would result in prices like this and possibly even higher if you believe that's where this is all headed? >> good to see you guys.

yeah, i mean, we have seen basically what people are calling the trump pump. there's widespread optimism that the trump administration, which has stated they wish to embrace cryptocurrencies and make america the center of cryptocurrency innovation worldwide is going to have a much more forward looking policy toward this new industry and i think what you are seeing is the market reacting to that. >> how does that manifest itself? what does it look like in reality? >> well, i think the hope is for, first of all, the approach that the s.e.c. has taken over the past four years which has been regulation by enforcement. not providing clear rules of the road for companies engaging in this new industry. and, in fact, pursuing

enforcement cases essentially trying to stifle innovation and trying to stop these companies from operating in the u.s. that's pushed a lot of really interesting innovation offshore which i think has been unfortunate. so, i think the -- the idea is that we would see that stopping and hopefully some legislation and now that republicans have control over not just the executive branch, but congress as well, that innovation might -- might actually come through. >> and is that innovation -- we keep looking at bitcoin as a proxy for all this. i would think the true beneficiaries is all of the other cryptocurrencies, if you will, and some of the other crypto efforts given that they're the ones that, you know, may turn out to be true currencies you use to buy coffee, but i'm not sure you buy

coffee with bitcoin, but maybe i'm wrong. >> i think the potential is much more broad than that. i think, you know, traders have viewed cryptocurrencies as an asset to trade and a volatile asset, but if you look overseas, you are starting to see the hints of cryptocurrencies in the traditional financial system merge. stable in adoption abroad has overtaken visa as the largest contributor to the blockchain transaction volume. you are starting to see stable coins take off and those will continue to develop and evolve and become more useful. toek tokenization which was not feasible in the u.s., we can start having that conversation because robinhood operates scaled basis in both traditional

finance with the securities and cryptocurrencies. we can see directly the benefits of the new technology because the cost savings and efficiency and the value to customers in the form of user experience improvements like fractional sags and 24 hour trading is undeniable. it costs us roughly an order magnitude less to operate a crypto business and offer the exchange of assets than it does on the triad 5 side. that advantage is undeniable. >> we are seeing your stock trading at 32.20 now. what is the function of more trading in crypto and more trading on the market broadly versus -- i don't know when you think about tokenization or other businesses you might be able to go in, frankly, if all

the of this works out in your favor? >> yeah, i think the stock price is nice and everything, but it's a lagging indicator of all of the work we've been putting in over the past few years to get to this position. i mean, just looking back in the past month, we had a big event in miami, the hood summit. i think i spoke to you guys the morning of that event. >> yup. >> we announced three awesome new products. a web platform, futures index options trading and then a week before the election, we rolled out another new product election products. allowing our traders to trade on the outcome of the election. that was incredibly successful. that traded over a half billion contracts in over a weekend. you saw robinhood kind of climbing the app store charts the past few weeks. now we're the number one finance

app in the u.s. it is an innovation of the products and sectors. of course people are trading crypto. they look what we offer as well. you mentioned overnight trading on election night was the biggest in our history. sunday night as well, a couple of nights ago, was the third biggest overnight session we had. it's pretty big for me. i remember in 2016 robinhood was a young company. our traders or investors could not take advantage of the election price moves. it was just in the futures markets. now we've got four assets that allow investors to capitalize on that activity round the clock. you've got futures. you also have 24-hour markets and cryptocurrencies and presidential election markets. i think the amount of innovation we delivered to retail, sometimes it's hard to comprehend. we're also not done.

there's a lot more work to do and, you know, we're working our way there. >> vlad, i was going to ask you about that. you're hinting at it that you're the number one finance app downloaded right now. it's only been a week. we have seen a lot of action in the stock market though. the most recent numbers i've seen is 24.3 million funded customers and 11 million active users. did either of those numbers go up in the last week? >> we haven't announced them, but certainly we've been seeing increases in activity and increases in trading volume across all assets. i mean, i mentioned earlier, sunday was our third biggest overnight equity trading volume and the biggest was election night. so, it's been a busy november. october was also a strong month. we released those results yesterday and we had over 5 billion net deposits into the

platformn october. so, that was also an incredibly strong month for us. >> do you imagine getting into other types of contracts and the like? the sort of polymarket being able to bet on everything? is it just elections that is interesting to you? do you think you could open it up to other things? bet on whether joe is going to wear a blue or red tie tomorrow? i don't know. this is where this all could head in the end? >> yeah, one of our most productive markets. >> you can tell me what to do. >> that's one of the things, vlad, we should talk about. there's a real issue. the elections are one thing which is hard to know what's going to happen, but there's other things we always talk about the potential for insider information. you can get with sports or other things where it gets a lot more complicated a lot more quickly,

no? >> here's what i would say. i think that this is a regulated space in the u.s., you know, regulated by the ftc. in contrast to the other competitors who are offshore and can't operate in the u.s., the rules are a little bit more clear and strict. i think customers and market participants want that. we have experience working in a regulated space across all of our offerings and i think it's clear that for hedging risk and for speculation and just as a source of information, prediction markets are really important and critical. i think it's important for a regulated player to offer them to customers. >> here's a prediction market question. everybody says it's got it right. then you actually drill down and look into it and you realize the prediction market was right about the electoral college,

true, but wrong about the -- popular vote, for example. this whole concept that, you know, prediction markets are right and polls and everything else are wrong, how do you think about that? >> i think that, you know, obviously the further you get away from the event, the more uncertainty there is. there's uncertainty in the polls. there's uncertainty in the markets. that's why there is a market. there's some people that are speculating and hedging on events going in both directions. but i think what you saw on election night is, you know, the states weren't called until very, very late into the morning and the prediction markets showed a fairly clear result earlier on. i mean, if on a prediction market, you know, it's 95% or 99%, there is a chance it goes the other way, but it's pretty clear. i think the news has -- has

turned into this entertainment. there's this entertainment quality where it is in this interest to create suspense rather than tell you what's actually happening. i think that's where the power is actually revealed. when information is coming in, you can see the markets process that relatively quickly, but the big networks were there saying it's very unclear. we have might not know the result for several days. >> vlad, even the popular vote was in the right -- it had sweep. republican sweep. dem sweep. republican sweep was 45% or 50%. dem sweep was 10%. it didn't say 90%, but pointing in the right direction. vlad, what was amazing about the individual individual states, i was watching shows watching counties to see if it was possible for kamala harris to win. it was 90% on polymarket.

they wasted hours micro analysting what was never going to happen if they looked at the betting markets. >> to be fair, the networks got screened out. >> they pretended to go to each county to see. they had one where they needed 118,000 votes and 100,000 left. they talked about. jake tap per said. >> it's impossible. do the math. >> i think that's where news becomes entertainment. that's what we saw on election night. >> vlad, always great to talk to you. look forward to talking to you soon. >> likewise. thank you, all. still to come this morning, another crypto interview this one you can't afford to miss. brian armstrong and then we have

joe manchin as well joining us. and on friday, ron baron will join us at 7:00 a.m. a long-time believer and investor in elon musk. "squawk box" will be right back. borrow up to $100k. no fees required. (vo) the legend of the turducken is as layered as its many meats. borrow up to $100k. introduced by culinary pioneers, this unconventional feast of fowl has been passed down by generations. this season, defy even more tradition. sell your home with opendoor's turducken of offers. at the center is our all-cash offer. then, the option to list for more. all wrapped in the certainty of a simple sale. this holiday, sell your way with opendoor.

♪ welcome back to "squawk box." take a look at shares of honeywell because they are surging up almost 10%. 9.5%. a report from bloomberg saying elliott management is taking a stake of $5 million and pushing honeywell to consider breaking up. cnbc reaching out to honeywell

and elliott for a comment. none thus far. we'll bring you when we get it. >> it is a no-brainer. honeywell. honey and well. >> cha-ching. up next, senator joe man manchin will join us on the change of power in washington. stay tuned. you're watching cnbc."

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think of what we could do together.

our next guest is retiring from the senate as an independent after 42 years in politics. joining us now is west virginia senator joe manchin. good to see you, senator. we said many times. >> how are you all doing? >> that can't be right. 42 years. >> 1982. house of delegates. >> it's a rough and tumble business. you are looking pretty good. you have that picture in the attic. you got that picture in the attic, maybe. you could do a post tem on

the democrats. i will talk about what you will do now and i know how much you care about this country and i know you've been in politics a long time, but absolutely no way you're going to end up in the public realm at some point again? >> i don't think so, joe. i've given it 42 years and ven it my best in the last 14 in the senate. i tried every way possible to bring both sides together and continue rdinners on the boat to get to know each other. i think now from the outside, i can share my experiences and hopefully guide some people together and working with my daughter, heather on the americans together and show the public we are one united states. we're not divided even with the politics and the politicians

want you to believe that in washington. i want to congratulate president trump. he is putting some people together which are very confident and skilled. you want your president to succeed. i said if my president succeeds, then my country does well and my state is doing well. i'll do everything i can help the administration. we lost that decency and respectfulness that we should have when we are trying to make things better f. i disagree with you, it's not you are wrong, but another way you look at things and it's how you approach it. that's what i've been blessed to be able to have that opportunity to do many teams imes and bring people together. you are not always right or not always wrong, but you can live with that answer. hopefully the administration understands that and reach out. >> we don't have much choice, i guess. i don't know what you think the probability is that there can be

some move toward -- toward unity or understanding or whatever. i don't know how optimistic i am. there are always dead enders in both parties. >> sure. >> nothing's learned from elections and they're dug in. trump seems to have, you know, he's a very divisive figure and he can -- >> he can be, but he's very charming at imes. i've had both sides of him. you have to work with him. you have to take your time and sit down and reason with him. hopefully it gets through. let me just say, joe, r, your, your whole show, "squawk box" is based on the economic might of this country. i hope this separation understands the depth of our indebtedness of $36 trillion.

somebody has to be talking about that. how do you get your inancial house in order? not a word was spoken about that during the campaign on either side. it's almost like it's a non-issue. it could be the biggest stumbling block with any administration getting their agenda accomplished. the border has been a serious problem since day one. i've spoken to the democrats many times. secure the house. secure your border. then you have the different unrests around the world. also, the democratic party, i've been trying to tell them. i said if you want to know what happened to the democratic party, look at west virginia. we flipped more and faster and further than any state has flipped in one decade. from 75% majority of democrats to 75% to 85% majority republicans. i was asked one time what happened to the west virginia democrats. they want to know what happened to the washington democrats. we have done all of the heavy

lifting. we worked hard and now we're not good enough and we're not green enough and we're not smart enough. i guess you just don't need us anymore and they left. they forgot about who brung them. the saying of dance with who brung ya'. the democrat always proper tenth protected the worker. having a good place to work and good benefits and take care of your family. when that left, they left. that's what happened. >> similar to what bernie sanders said recently. you think he's right in that assessment? >> we don't agree on much, but i agree. i got ya'. >> senator, i want that say thank you for always being somebody who was thinking logically about things and not looking down party lines. we've, we've had other senators who left in the past who sounded

kind of similar to what you've been saying about not getting people to work across the aisle. i think back to senator judd gregg that it wasn't as civil. i want to thank you for being that voice and ask you who you think is going to carry on in that tradition with you leaving. >> i'm hoping there's others to step up to the plate. as i look back, we had great success working together. democrats and republicans and the 117th congress as you recall. 50/50. we decided we do something. it gave an ordinary opportunities to five or ten of us in the middle. five ds and five rs could sit down and we had the ability to move an agenda. you could either sit there and get nothing done and say can't happen or get things accomplished. we did some great things. what happened is the administration, the biden

administration took it further than that and tried to basically adopt rules that were not in line or in sync with the bill we passed. i'm hoping the president and the administration can correct that. don't throw the baby out with the bat water. there's good stuff in there with energy. if you want to rename it the energy security act is what we should be dealing with and energy security for our country, how do we do it and implement it and also looking for the future and future of generation of energy, t also meeting the demands of the current economy and defense of our country. how do you do it? there's people there. >> you're gone. sinema's gone. one of your -- >> joe -- >> i know, one of your most important priorities was the filibuster. you were steadfast. that was on the ballot. it didn't turn out that way. it's not going to happen. the other thing is you probably

stopped the green new deal from being ten times as onerous and large as it would have been and you got the rug pulled out from you on permitting and you got scolded for talking about inflation because it was supposed to be transitory. you have a laundry list of items that maybe i wouldn't come back if i were you. >> i don't want to say i told you so, but it was prettiest. you talked about it, too. inflation was happening because we were sending checks to everybody. we had them sequestered at home because of the pandemic. when we had the vaccine that worked, we were not getting them back to work. we were giving benefits far longer than it should have been. it was a perfect storm. it was not rocket science, they didn't want to hear that. they had an social agenda.

i hope they learn from their mistakes. if we have a crisis again, i hope we can manage it again. let's move forward. i'm not blaming anybody. the bottom line is we have a new president. we have donald trump as our 47th president. let's make sure we understand that's our president. whether you voted for him or not whether you like him or not or whether you're a democrat or republican or independent. it doesn't matter. we have to do everything we can to make this government the best it can be. the world depends on us. basically, he is putting good people in. i'll work with them. if they reach out and sk what do you think about this, this and this. i can tell you if it is a bill that was put together like the i.r.a. or the chips act. throwing that much.

the arp. the american rescue plan. $1.9 trillion on top of what we spent in 2020. that was too much. it happened. it shouldn't have. it happened. i hope that president trump and the republican administration doesn't jump right in to reconciliation throwing the democrats to the side and don't need you at all. the 60 vote threshold of the filibuster is there that gives not only us does stability. it gives the world stability. that's what it does. >> i had lots of discussions about who should be the leader on the republican side and i've had people say if it gets too trumpy, i.e., rick scott, in two years, we're going back and the republicans could lose the senate and the house if it gets too trumpy. i'm trying to figure out you right now. you're independent.

are you still kind of a democrat? you still would make a home there? i'm looking at the arrow and i'm looking at -- i want you to give advice to democrats. democrats are saying it's biden's fault. pelosi is saying it's george clooney's fault. what should they do? >> first of all, all of the names you mentioned might be the leader, they're all good people. i know them all and worked very close with them. the big factor here from leadership is lack of viability. does your caucus like you? do you understand where they come from? only thing i would say to all of my colleagues on the republican and democrat side, remember who you work for. remember who your boss is. it's not the president. it's basically the people back home that sent you there. you want to be able to sit down

and know that someone's listening to you and understands your concerns and can work with you. once you have that, that's where the leadership's going to go. that's why, you know, we never -- i'll never forget rob byrd saying the president is not my boss or the majority leader is not my boss. if i can go home and explain it, i can vote for it. if they are choosing a leader, i know rick scott. he's harder right than the ther two. john cornwyn and john thune. i know john very well. he is am icable. rick and i have a good relationship. i tried to work with all of them and i, whoever becomes victorious, we will work and should work with him and reach out. it's tough one.

that's an internal thing. for someone on the democrats said to jump into that, that's wrong. that's a republican caucus situation they will handle. they will pick their leadership team tomorrow and we'll move on and we'll work with whoever they have. >> okay. >> we have a lame duck -- joe, we have a lame duck right now. the permitting bill. we will get that done. it needs to get done for the sake of our country. >> preaches to the choir on the permitting, senator. we'll see you. you have an open invite. we'll see you again soon. >> thank you, all. >> we have a very prestigious position here called a cnbc contributor. i don't know. >> i'm happy -- with andrew and you and becky, i'll do whatever you need. whatever you need, i'm there for you. >> no guarantees. good to have you on. thank you, senator. >> thank you. coming up after the break,

crypto ascendance in washington. we talk to brian armstrong after this. stay tuned. this is "squawk box" and this is cnbc. at morgan stanley, old school hard work meets bold new thinking. to help you see untapped possibilities and relentlessly work with you to make them real. deadline in five! finished and sent. [sending swoosh] we have tight turnarounds. at&t business helps us deliver. okay! client wants his head bigger. wow, fast response. sent! okay, oop! even bigger. sent. [sending swoosh, notification alert]

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we come back to "squawk box." for our second big interview of the hour, we are joined by coinbase ceo brian armstrong. this morning, he is announcing the launch of coinbase 50 index which represents the top 50 digital assets listed on the coinbase exchange. brian, great to have you on the broadcast. there's about 100 things i wachbt want to ask you, but crypto post election. it was similar to what i asked vlad earlier. as you look on the horizon now given president-elect trump and his administration.

what do you see happening? >> good to see you, andrew. one of the most exciting things about this new congress, which is the most pro-crypto congress ever, is we have a chance to get regulatory clarity in the u.s. about the big open issue yous that frankly under gary gensler we have not gotten clarity for a long time. which commodities and that requires the s.e.c. to come together and collaborate on rule making or congress step in with legislation. the fit 21 bill which passed with strong support in the house earlier this year is now making its way through the senate and with any luck, we'll get that passed through the senate and make it to the president's desk here either in the lame duck or the trump administration. >> brian, we have een bitcoin move materially this past week and before that with the run-up of the ex-pectation that

president trump was going to win the election. when you think of the other crown as currencies and they have bigger room to move or not? >> i think bitcoin is the biggest asset and has a lot of room to run. what is exciting about the coin 50 index that we launched is people are aware of not just bitcoin, but dozens of assets in crypto that are now met our listing and exchange and thousands are created every day, believe it or not. some of these are, you know, coins like ton and world coin which is used in emerging markets. things the defi space that people want exposure to or layer two solutions built on top of optimism. i think we will eventually get to the world with millions of tokens. every project or meme on the

internet or every company when they want to raise money as we get regulatory clarity with securities, they should issue the coins as well. increasingly, people want broad exposure to crypto. it is the next version of the stock market and the internet. that is why it is so important for us to launch this market index coin 50 for people who want exposure to the broad market of crypto. not just one asset. >> and you are now talking about the tokens used for example, ipo, something taken off the table during the jay clayton era when people would use them that way. that would upend the financial industry, no? >> i think it's important that crypto is a technology to update the financial system at large and one of the areas in the financial system that could be improved dramatically is capital formation. there's lots of different people

that are trying to build an apartment complex or start their next tech start up. they want to raise money from investors and today there's instances where people are trying to raise money for their real estate project or whatever and paying 11% in financing fees to organizations to package that together. that's just one more area on the long list that crypto could update the financial system. those are going to be securities. so we need to have a clear path for people to register crypto securities. there's ures to figure out and how you make sure these are credited investors when they need that. we, along with the rest of the crypto industry are doing that. the last four years, the door has been shut in our face. any productive conversation of thousand make that happen in a trusted and compliant way and they have been unwilling to engage in the conversation. it is a dawn of a new crypto era with the election that just happened because it is the most

pro-crypto con ever. 268 crypto candidates elected to the house. all nine new senators had an a or b rating on crypto.org. in the white house with president trump, there is a full endorsement of crypto. we couldn't be in a better position to finally get clarit and rebuild the crypto industry in america again. >> brian, i think there is a perception, i think real that crypto industry had a huge influence on this election. not just the presidential election, but around the country and congress and the like. there was huge amounts of money spent by -- by members of the crypto community and including yourself and a question about money and politics and whether that influence is a good thing. how do you think about it? >> yeah, so, there's no question there was a lot of money involved from the crypto industry and there was also a

lot of voter s who came togethe in the grassroots effort. we don't set the rules of the game, but that's how the game was played in the united states. we showed up to defend our customers' rights. it is important for the crypto dry industry organized. we got to almost 2 million advocates who wanted to elect pro-crypto candidates. they have taken a stretch goal and want to get to 4 million advocates in the u.s. by the 2026 midterms. even fair shake u the super pac, they raised $50 million of capital since the election looking forward to the midterms. i think it is really important we keep showing up as a crypto industry on the policy issues. it's important for the future of america and in my personal judgment, i would prefer the government was smaller and there was less ability for people to

go in and influence it. because we have the big government and that's how the rules have been set, both money and the grassroots movement of voters coming together is important. >> what do you think of donald trump's world liberty financial crypto project? >> you know, i haven't looked into it too deeply, to be honest. i'm glad everybody is interested in crypto. i don't have much to say not having looked at it. >> we have to run. elon musk saying he thinks the fed needs to maybe come under trump or the white house or have less independence. do you agree or disagree? >> um, you know, i don't have too strong of an opinion on that. i will say there is a massive issue in the united states with the deficit and with inflation and i do think that bitcoin is a check and balance on irresponsible deficit spending and to really extend the american experiment for a couple hundred more years. it is important we don't devalue the dollar and lose the currency

status. that is why the people are buying bitcoin. >> brian armstrong, thank you. i appreciate it. "squawk box" is coming back right after this. early retire, and startups start up. because it's smart, dependable, and steady. all words you want from your bank. for nearly 160 years, pnc bank has been brilliantly boring so you can be happily fulfilled... which is pretty un-boring if you think about it. i can't believe you corporate types are still calling each other rock stars. you're a rock star. we're all rock stars. oooo look look at my data driven insights, i'm a rock star. great job putting finance and hr on one platform with workday. thank you! guys, can you keep it down. i'm working. you people are (guitar noises). hand over the air guitar. i've got another one.

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let's get a final check of

the mark. in the pre-market, the dow up 85 points. s&p is up 4 points. nasdaq indicated up 15. the s&p and nasdaq new highs yesterday. we will continue to watch as we get to opening bell.4.39. that does it for us today. make sure you join us right back here tomorrow. right now it's time for "squawk on the street." good tuesday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer, david faber at post 9 of the new york stock exchange. futures steady after five straight gains for the s&p amid this post-election rally. bonds opener. five fed speakers, including waller this morning. our road map begins with stock continuing to ride the trump wave. futures higher as traders await nutrition details from the