retaliation. it's thursday, november 14th, 2024 and "squawk box" begins right now. good morning, everybody. welcome to "squawk box" here on cnbc we are live from the nasdaq market site in times square. i'm becky quick along with joe kernen and andrew ross sorkin. on this morning, we are looking at green arrows at this point. modest advances for all three of the major averages dow up 42. nasdaq up 25 s&p futures up 8 that comes after a mixed day for the markets yesterday. if we check in on the treasury markets, it looks like yields continue to climb. you are looking at the 10-year at 4.35. bitcoin briefly climbed above

$93,000. this came amid a volatile day of trading yesterday. right now, it looks like bitcoin is above $91,000 month to date, that's just the month to date, up about 30%. now let's talk about the trump transition and what i think is raising a lot of eyebrows controversial pick in washington for the attorney general role. eamon javers is with us. he's at west palm beach, florida, after president-elect left after all the eyebrows raised i got in the car and he looked at me and he said, matt gaetz. that's all that was said, eamon. >> reporter: a lot of people saying matt gaetz in west palm beach, florida as well, andrew president-elect trump said he will name the controversial

florida republican congress member to be his attorney general and head the department of justice gaetz has feuded with members of his own party in the house he's been investigated by the department of justice for sex trafficking and an investigation that ended without charges he was investigated by the house ethics committee for allegedly showing members of congress nude photos of women on this phone. in a statement, matt will end weaponized government and dismantle criminal organizations. gaetz is an economic populist and supporter of at least some of the actions of biden ftc chair lina khan. ban most corporate non compete agreements and called that an indication of economic freedom and free enterenterprise

they expected the doj to drop the court battle over the non compete issue, but the source tells me the mood is optimistic that miss you are measure will e another irmation appointment on wednesday, trump announced tulsi gabbard. she was accused by senator mitt romney of talking points in the recent years she never served on an intelligence economy that is another controversial choice back to you. >> eamon, let's talk about the complications and what this confirmation process may look like we should also discuss this report that was likely to come out -- >> a vote on whether in two days. >> a vote on whether it would come out the house investigation. >> house ethics. >> house ethics investigation.

whether that would come out or if this is a way to prevent that from coming out. what this does more broadly to the questions about what the president-elect's plans ultimately are and the loyalty test that appears to be taking place. >> reporter: look, the president-elect is installing loyalists at all of the top positions of power in washington, d.c. what he's doing here is consolidating power and forcing some recalcitrent republicans to come along with him. what i was texting about with emily wilkins is are there enough to defect like pete hedgeth. he never worked at the pentagon. tulsi gabbard who never worked in intelligence or matt gaetz, someone who has been under investigation by the doj to run the doj. those are lightning rod

selections what trump is doing is pushing the republicans to back his vision for washington. trump feels very strongly the department of justice has been after him unfairly for years and he wants to send somebody in there as steve bannon said yesterday to send a blowtorch in there. >> if he couldn't find a loyalist who wasn't paying minors >> reporter: it engenders more d his position yesterday that ends the investigation. they typically don't release th information after the member resigns. it is typically buried they have to vote to release it

or if there is somebody on the ethics committee, decides to leak the material whatever they discovered because they have been investigating some very intense issues in the house ethics committee >> i saw at least one republican say we still need to see that. idaho. from the house. >> there were questions. >> and susan collins and others saying this has to be totally vetted i saw another republican in the house, i think thomas massie, it's a recess appointment. he's going to be attorney general. deal with it. >> that is the question. is this done through a recess appointment? i can only see one example president dwight d. eisenhower of william rogers. >> for attorney general. >> this is a super powerful role we were joking, not joking kevin

mccarthy when you think about where this goes it does raise -- what surprises me about this is for so much of the campaign, president-elect trump was saying he thought the democrats had weaponized the system and that's what he wanted to rid himself of and what i fear now is that there are going to be people who is saying he is weaponizing the system >> reporter: achb ndrew, you dot need to look for precedent here. the trump team has been doing research for four years about the limits of executive power. the extreme limit. s of executive power here is the hypothetical here is one thing that has never been tested in the u.s. constitution whether or not the president has the power to adjourn the congress it is in the article of the constitution that the president has the power in the case of the

disagreement in the case of the two houses of congress to force adjournment and force a recess. >> he would need mike johnson to go along with it >> reporter: he has been doing research >> he would need mike johnson to go along with it >> it was amazing. >> reporter: you saw johnson for speaker. >> gaetz had defenders some of the usual suspects ken paxton byron donald this comes down to two words jeff sessions. the first senator to back him from alabama for almost two years, furious he recused himself from the russian hoax i think he is still thinking about that i lived a long time. >> reporter: matt etz will do as he's told >> right mitchell went to jail.

elliott richardson had to resign during watergate >> then the most controversial pick prior to this would probably be jfk appointing his brother as attorney general. rfk. >> this doesn't mean he will go all the way in we have seen presidents make strange appointments for positions. i looked at 2005 george w. bush harriet hires.rriet myers. nominated her for supreme court. she was actually white house counsel. probably a very good lawyer. never been a judge >> reporter: that was a very different era, joe he never had the kind of control over the party that donald trump does now >> right to think you can nominate someone to a position like that just because of whatever reason and then it's just so beyond the pale that anyone is going to

look at it and say that seems normal i remember that happened then you know who came in? alito. >> reporter: i wonder how many are sticking their heads out of their holes with this trump. he has a dominate win in the party and he has the senate and house and favorable supreme court. if any of this gets challenged at the supreme court, he is likely to survive there. he is as powerful a figure we have ever seen in the white house in the united states of america and i think the appetite to defy him, given his powers of retribution and focused fury when people do that, we'll see if it's there. >> the only two -- the only two, they didn't say were murkowski and susan collins. graham he had a couple of caveats

he said i'm inclined to give deference to the president that's what he said. initially, we need to vet things >> reporter: my guess is they all knuckle under. >> what's that >> reporter: my guess is they all knuckle under. >> what is interesting about this is -- >> reporter: what -- >> this knuckling under is not just the republicans every ceo i talked to yesterday. i was at the delivering alpha conference i ran into a bunch i don't think there was one individual who said this was an acceptable answer or -- off the record, to this situation. will they go on tv and say that? will they be quoted in print saying that? no why not? because this role in particular, by the way, in particular, this role, puts you in the line of fire legally, potentially. we'll talk in a little bit after

this break about the polymarket story of the allegations of weaponizing the system this goes to the sort of very heart of it and i will say this and i want to repeat one thing a prominent ceo said to me yesterday. he said, you know, i don't know why you do this now so early in the process. >> maybe so you don't look at other ones pete and tulsi >> to heal the country if you are going to use shock and awe. >> he has a lot he wants to accomplish. >> if he wants people to believe in the system and he cares about his legacy and all of the things we talk about -- unless all that was bologna. >> he wants to gut the justice department >> what jeff sessions said is right. >> eamon, you know who does the day-to-day operations of the doj?

we can ask jay clayton he is an ethical guy he might be dependency >> it is interesting to see jay clayton. >> don't ask him >> whether he would be willing to take a job. >> you can ask him he might be one of the people. or matt whitaker had been bandied about. trump thinks he can do whatever he wants at this point no doubt no doubt >> reporter: don't miss the idea that gaetz is a conservative has in na khan in anti-trust policy of where republicans have been in the past gaetz doj would sue american companies in a big way and force breakups and things that you might not expect from the republican administration. >> i had not heard that term before khan-servative

good one >> eamon javers, thank you, sir. we'll talk more to you, i'm sure. when we come back, highlights from the cnbc delivering alpha conference with the advice and special a.i. appearance then disney is set to report this hr.ou we will bring you the numbers and joined on set by cfo hugh johnston a conversation you do not want to miss after this >> announcer: this cnbc program is sponsored by baird. visit bairddifference.com. ooh! penny stocks are blowing up. sweetie, grab your piggy bank, we're going all in. let me ask you. for your wedding, do you want a gazebo and a river? uh, i don't... what's a gazebo? something that your mother always wanted and never got. or...you could give these different investment options a shot. the right money moves aren't as aggressive as you think. i'm keeping the vest.

♪ ♪ ♪ something has changed within me ♪ ♪ it's time to try defying gravity ♪

♪ ♪ dad: hey boss. you okay? son: i said i'm fine. ♪ dad: you can talk to me. son: it's been really, really hard for me.

welcome back to "squawk box. delivering alpha summit delivering insight from david einhorn and nelson peltz talking about the recent rally and what's coming next leslie picker was there and joins us with more >> reporter: andrew, the question about whether or not this rally can continue was a big discussion topic at the delivering alpha yesterday nelson peltz says he doesn't think the rally continues. >> trees don't grow to the sky definitely not uninterrupted there will be something that will upset it. i think you've got euphoria from the election on the other hand, you look at the international stocks that got slayed over the last week or so >> reporter: gug even home partners said it will cause

investors to be more weary and she expect more volatility in the bond market. david einhorn had a surprising sanguine take saying there is no reason the market can't do fine for a period of time >> for an overvalued stock market, that's not necessarily a bear market and has to go down any time soon. i'm not particularly bearish i can't see what's going to break the market at this point not that it can, but there is nothing obvious to me. i observe it is a really expensive market and if you buy and hold for a long period of time, i doubt you will look back and say this was a great entry point. >> reporter: he said he's betting on inflation and revealed a new long pick cnh holdings a trk actor and combine maker. the multiple is cheap and thinks next year or early 2026 will hit

an upswing in the cycle as prices move higher the shares are up 3.5% in early trading today on some of those remarks. guys. >> leslie, you know, i left sort of midway through. i'm curious what actually the conversation looked like in the hallways with matt gaetz and the president and the election and where the markets were going what's the sentiment, you think, in the room? >> reporter: i had some of those conversations. as you mentioned, you had those in the corner off the record with some of the investors with about what's happening in washington that was a key focus for the event taking place a week after. you know, there was definitely some concern about some of the appointments things that people would say kind of in a corner off the record, not necessarily on stage. i think the election was a key topic there for that reason and

the concern was largely, at least with the people i was speaking to, related to inflation and some of the public policy initiatives and what it means, you know, from the immigration stance and what deficits would do under the next administration and what tariffs would mean for inflation and kind of the revival there. >> all right thank you for that, leslie we will show you another moment from delivering alpha that -- well, surprised me and maybe will surprise you. take a look at this. >> it's me andrew. >> and i'm david don't call me dave. >> good point. never ever call me andy. >> point taken. >> this is us now avatars. artificial intelligence. a.i. me is almost as good as "squawk box" me. >> let's be honest "squawk box" you is not nearly as good as "squawk box" me those were the golden years. >> david, even your vatar is

cut throat >> could a.i. you cover you if you oversleep? >> maybe we trick them >> how about i do a trick now. i'm over here now. you thought this was andrew? it is me, david. it does feel cool to be you. not cool enough to stick around, though >> don't body switch on me again. you don't know what it's like to be me and you don't know what i'm capable of [ speaking a global language ] >> that was -- what you just saw, folks, it was all a.i so, there was no voice track the video was not made we didn't make this for this david and i, a company called -- synthesia. it's a unicorn big investor they are working with corporations about 60% of fortune 500 companies are now

clients of theirs. they are working with companies to include power points if you are a ceo, for example, and you want to give a speech or all hands to a global audience, you would record yourself once and potentially and then they would do it in different languages you could possibly not even record yourself once type out your script and never even show up >> you didn't type out a script? >> no, no. in this case, what we did, david and i did. we didn't it separately. we weren't next to each other. we went to a studio. they filmed us looking up and down and sideways and this and that they recorded our voice. so i had to read all sorts of different things i had to read and sound sad and happy and sound this and sound that they did the same thing with david and then the script -- no, no, the script >> you do write? >> you typed it, but it was all

typed and then it just did that all by itself. there was no producers no human intervention and you literally f you decided you want me to read the news, i could be not me and read this to you than could all be typed >> does this concern you like it does me? the idea they can now do this with just about anybody or do you -- >> david and i were joking that we had to sign releases about -- >> you did >> about your likeness for our particular use case, i'm hoping -- we hope our voice and likeness will never been used in a different way. >> they made you sign paper work that said you could? >> the point was, once, i think if you were using this service, you have to allow the service to be able to use all of your stuff. >> what happens if that gets out? i'm thinking of a ceo and then

the ceo says something to make the market tank on the news. >> what is fascinating is the technology, for that to look as good as that did, you have to do it in a studio the future of this, these guys are working on stuff where it can be filmed on a phone. >> what ceo would sign off on something i understand my likeness, if it gets out there -- >> what is crazier about it, i believe within a year or two they can just take the video of you off the tv it has nothing -- it will have nothing to do. >> as good as that was, this is privative compared to a yearing on two. >> that's the point. it won't require whether you sign the release is besides the point. >> i can't even fathom the terrible things that could happen. >> amazing a.i. tool you can play with online right now where you can take an old picture. i did it with my grandfather a photograph and it will animate

the photograph make the photograph come to life it was so real this stuff is coming to a theater near you soon. >> think of the market implications and the government implications of what would happen during an election. >> totally can't wait to see you endorsing jd vance in four years >> by the way -- >> hi, i'm andrew ross sorkin. >> there is a video of me selling gold or bitcoin. >> seriously >> some social media company using and i look like i'm here at squawk and selling. >> you could be selling bitcoin short. >> you should tell those folks, whoever created this that's the danger of it. the cool part should be that -- >> when you're late, we can have you here. >> that, too our show could be broadcast around the world in all sorts of languages and we could be

talking to everybody in real-time. >> once you sign off and tape, okay, we captured this bye-bye. >> remember al michaels at the olympics and they paid him for his voice. there is a separate question of whether incumbent brands win because people will buy into the brands that they know now and harder for younger folks to get into the business. >> they are doing this all in plain clothes just saying how in hollywood, that's a really frightening thing. you no longer control yourself >> would you be okay sitting at home and getting the same paycheck >> sure. they will not pay you the same when that happens.

it's hard to say who'll be more excited on the day after christmas. the guy who got a brand new truck from mom and dad. or the guy who got all the weathertech protection for his truck.

like laser measured floorliners... the under seat storage system... no drill mud flaps... impact liner with shock absorbing rings... and top it off with the alloy cover. find these american made gifts or get a gift card instantly at wt.com. (♪♪) (high five) ♪ [music] i could unlock my front door ♪ (♪♪) ♪ while i dine in baltimore ♪ ♪ no lock box to explain ♪ ♪ ♪ at 9:00 the doors would lock up ♪ ♪ save me from forgetful slip-ups ♪ ♪ if my home just had a brain ♪ ♪ ♪ i could make a custom pin ♪ ♪ watch the dog walker get in ♪ ♪ so ziggy won't complain ♪ ♪ ♪ when my in-law comes a-knockin' ♪ ♪ i can open, maybe lock it ♪ ♪ if my home just had a brain ♪

(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.

welcome back, everybody. the fbi seize theed the phone of ceo polymarket shayne coplan reports say the federal acts woke coplan up at his manhattan home yesterday to carry out the search it is not clear what prompted the raid the company is tying the search to the track record in the recent election saying in part, this is obvious political retribution by the outgoing administration against polymarket against the company that correctly called the 2024 election new phone, who dis here's what he told us last thursday about his exchange predicting that election outcome. >> people who are watching

media, you know, hours later, were like wow. polymarket has kamala so low we were in the office and looking at the odds and it looked like a done deal. if you were just watching tv, you would think it's neck and neck >> so that was his first ever television interview we got to talk to him about some of these things. i guess we'll see what happens >> there was other news out that i don't have in front of me that the whale made more than people thought. $87 million. >> the guy in france >> yeah. >> teo >> he was sure trump was going to win he made more than he thought he had a pretty good idea. that guy was saying yesterday, betting on sports is almost impossible if you had a pretty good idea and you could double your money and pretty sure of, i don't know, whatever reason it would

happen, doesn't mean it's an illicit read that you thought that necessarily probably need some scrutiny. >> what will get complicated with all this is is there a level inside information becomes a real issue maybe not with the election in this way we don't know what they want from his phone what were the communications he was having with others about where the thing or where the results were i don't know i'm totally withholding judgment >> let's say it was totally orchestrated all along to make it look like trump was favored on the betting odds. is that what caused a victory that big i don't know if had an fluence necessarily on the outcome >> you suggest it would have some -- some level of something.

>> maybe if it was much closer than it was, it would be much more concerning there was a, obviously, a movement of some sort in the country that caused what was -- seven states popular vote house and local legislatures flipped that shouldn't have flipped. it was more than just a betting market saying trump was going to win. that's all i'm saying. you think it influenced it >> i don't know. >> you know, there were times -- >> i don't know. >> it flipped a couple of times she was way head >> there are lots of things that influence an election. to suggest -- i believe it is one ponent part. >> one predicted was she was ahead two days before. it wasn't even everywhere that trump was ahead. she had been ahead on polymarket handily ahead until jd vance interview. >> you would say it was actually wrong about popular vote

>> well, when you say 30%, like we said, would you get on a plane with a 70% chance of landing? the 30% can come up a lot. i would not get on a plane that was 70% safe >> we'll hear more. coming up, disney set to report the numbers and first on cnbc interview with the cfo hugh johnston as we head to break, here is a look at yesterday's s&p 500 winners and losers deadline in five! >> announcer: executive edge is sponsored by at&t business next level moments need the next level network. at&t ess helps us deliver. okay! client wants his head bigger. wow, fast response. sent! okay, oop! even bigger. sent. [sending swoosh, notification alert] still bigger. okay, yeah i'm not doing that— [typing noises, sending swoosh] i think it still looks good! [notification alert] oh — even bigger.

in a couple of hours, investors will pore over the latest cpi it is expected to tick up on a year over year basis for the headline and core cpi. we want to bring in krishna guha krishna, the third month in a

row we have seen that, but that was within the estimated consensus range. what do you expect from cpi today? >> i think ppi will be consistent with the fed's preferred core pce measure coming in appreciately lighter than the core pci print or higher firm end of the range over recent months is that going to be enough to veto another fed cut in december very likely not in my view i think we're on track for that december cut., but as we look into 2025, for sure the fed is looming down, with the trump policies, the outlook is more uncertain than the case a short while ago. >> i have to say i care a lot

less about the cpi or the ppi than i did two weeks ago all that matters now is what's going to happen. what is this new administration going to do and how does that change both the economy and the potential for inflation? how do you try to figure that out, krishna >> i think, we've all got to be to use a power phrase humble and nimble humble is because it is hard to predict what the administration is going to enact. the difference with the campaign rhetoric and the policy that will be rolled out and we have to be nimble in updating as we learn along the way. look, it seems pretty clear to us that the trump policy mix across immigration, trade, fiscal, energy and regulation is net reflationary the fed is likely to view it that way, too. that means being a bit more

cautious about rate cuts next year also in part, because once again, the economy is performing a bit more strongly than people had expected that's fundamentally good news it is not threatening, but it does continue to fuel that debate as to exactly where the neutral rate setting is and how much more distance there is to travel before we get there i would have seen four or five cuts under a more disinflationary policy mix with harris i'm expecting next year maybe three cuts with trump, but there's more uncertainty in both directions around that >> you're expecting fewer cuts because you think the economy will perform better and fewer cuts will be needed or you are expecting fewer cuts because inflation will be hot ter and future cuts will be allowed to be given >> i think the fed will be focused on the inflation piece here a crackdown on immigration will

produce a bit of wage friction in those sectors where there's a lot of reliance on immigrant labor. the trade conflict will push up inflation over the course of next year. very importantly, that's mostly a price level shock. so, it's the sort of thing the fed doesn't have to react to too strongly fiscal clearly would boost growth we also expect animal spirits to be very strong particularly among the small business community. that's going to be boosting growth and weighing against what might otherwise be a drag on growth coming from trade policy uncertainty. there's some pop as policies pushing up on growth and some ies creating inflation impact we do think it would be less dovish than otherwise. the magnitudes i think we need to be sober about. i still think the inflation pressures are not going to be

insane the fed is going to be able to cut rates further. they will just be more cautious about the speed with which they move, slowing down to once a quarter after december and they're going to be a lot less sure and sensibly project less certainty as to how far they'll be able to continue cutting. >> okay. krishna, thank you >> anytime we have news disney results just out. here's what's going on adjusted earning of $1.14. that ahead of estimate revenue coming in and beating. $22.6 billion. direct to consumer revenue 5.78. that fell a bit short of estimates. we're going to watch the stock this morning the dtc operating income topped forecast on the other end. we will see what investors think about that in the meantime, other folks looking at lineal network

operating income tumbled 8%. that's a bigger decline. we will understand what is going on there dtc made up for the short fall in the lineal, but still below for the parks, revenue experience came in stronger than expected operating income in that division was just in line. there's a lot of mixed pieces to this disney giving long-term guidance the company saying eps in the new fiscal year will grow high single digits. consensus calling for 4.4% growth that is good news beyond fiscal 2025 this is maybe what is pushing the stock higher double digit growth in 2026 and '27. we will talk to cfo hugh johnston about all of these numbers and cross currents and the succession story there as well he will be with us at table at

7:10 eastern to time the stock in the futures market up about 2%. it is come down to 1%. you never know how much volume is really being traded here because you do have good numbers on one side and tougher numbers on the other then again, the growth story, double digits, if that in fact can be hit in '26 and '27, i think more than llays a lot of the fear. >> but for the grace of god go us just reading it, i'm thinking cable, streaming, lineal >> all of it we got more coming up on "squawk box" this morning. hugh johnston will be with us to breakdown the numbers to answer some of the questions and so much more as "squawk box" rolls on after this.

>> announcer: currency check is sponsored by interactive brokers. the best informed investors choose interactive brokers

growing your business is easy once you know the moves. with godaddy websites plus marketing, you can quickly create a website, and ai will customize it for you. get your business out there and get more customers in here. no sweat... for you anyway. create a beautiful website in minutes with godaddy. 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.

coming up, the nba is coming back to nbc, but will the famous theme song from the '90s return? more on the ground ball rock battle >> can we play it? >> i don't know. we'll see if we get to it in the next segment >> we will we have the best of "squawk box" in the daily podcast. it's 16 seconds long not relyal >> it's six hours. >> a lot of good stuff follow squawk pod and listen anytime. we'll be right back. she switched careers to make money for your weddings. ooh! penny stocks are blowing up. sweetie, grab your piggy bank, we're going all in. let me ask you. for your wedding, do you want a gazebo and a river? uh, i don't...

what's a gazebo? something that your mother always wanted and never got. or...you could give these different investment options a shot. the right money moves aren't as aggressive as you think. i'm keeping the vest.

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.

♪ ♪ ♪ remember that? let the nostalgia flood in during the 1990s, it was the open to the nba on nbc featured the round ball rock theme composed by john tev tesh with the nba coming back to nbc, will we hear that blaring from our tvs? i hope so. the guy who knows the answer is alex sherman at the table this morning. what do we got >> let me tell you a little story, andrew, i wrote a story how nbc could license the song

from john tesh when it became clear nbc was on the verge of bringing back the nba on nbc >> i love this song. it brings back everything for me. >> when i wrote the story, the -- the impact on social media was through the roof >> yup >> in the back of my mind as a reporter, i remembered that and was like, okay let me check up on how that deal was. in the intermediate, nbc sports announced the nba coming back said the song was coming back. there was internet rejoicing i checked up on the deal i hate to break this to you and the audience, but there is no deal yet even though nbc sports said the song is coming back, they're still in negotiations with john tesh. >> john tesh is holding out? >> he is asking a lot. he is asking for a lot of money. nbc doesn't want to pay all of

the money that john tesh wants >> how much? >> probably in the millions. >> this is your fault, alex? you created this problem >> look, fans love this song so, i do not blame john tesh for asking for a lot of money. the standard it's a little window into licensing sports theme music which is an area i never spent time before writing this story the average sports tv song costs about $100,000 a year if you license it i think tesh is asking for a lot more than that and nbc sports so far has balked and said we'll not pay that. tesh held the preliminary discussion with amazon to say do you want it? there's language in the nba deal with amazon, which is going to get games next year, assuming the warner bros. discovery lawsuit pending they are trying

to get out amazon needs to create their own theme music. the nba mandated that. they can't use around round bal. tesh send amazon two other songs. >> they can use that song and nbc should be able to buy the other song tesh is getting something or nothing. >> nbc fully expects to reach a deal for the song and still in negotiations the other thing i was told is tesh held the conversation with the vc firm and he could sell to the vc firm and the vc firm could sell to nbc. >> a little risk off the table. >> there was a big "snl" sketch about this song. >> this is like the "top gun" song you hear it and it brings back the whole nostalgia. >> basketball on nbc >> the other piece of it that i just don't know is the younger

generation may not care. >> they may not. >> they may never heard it in their life. >> i suppose if nbc sports said they want to reach the younger generation, maybe they feel the song is old and bring in a new song >> right >> there's a lot of different things '90s nostalgia is big. look at the reboot of streaming services on tv a lot of the fan base that nbc wants to reach it would be weird to hear this song on espn >> it does feel dated. >> actually, fox sports has used the song for years tesh licensed it to fox for the big east games this song has not totally disappeared. people associate it with nbc. >> the ynthesizer reminds me -

>> tap into the nostalgia base or something else that is modern >> what is that? >> "caddyshack". >> see the gopher? that's what you think of "top gun." that's the only thing you think about. >> if you are under 30 years old, you never heard this in your life and you never know and it doesn't matter to you if i was nbc negotiating with tesh, that's what i would say. >> absolutely. i imagine tesh saying there is blowback from the over 30 crowd. >> they will still watch i'm sorry, john. i'm a big fan. >> you started the segment saying you want the song to come back. >> i do. i selfishly love it. >> you are over 30 >> you are either getting something or nothing that's john tesh's option.

>> i hope the sides meet in the middle and come to a deal and hear the song. >> i thought i heard that song when i watched the nba last week are you sure >> the nba -- >> is that not used? >> nbc is paying $2.5 billion a year now for the nba they are looking to cut costs under the edges here that goes for the whole company. the song, i don't know i want the song to come back. >> not at the expense of firing peechlt. >> exactly that's why they haven't had a deal. news out from tapestry, parent from coach and kate spade is terminating the merger agreement with capri terminating is in the best interest of both companies as the outcome of the legal process is uncertainly and unlikely to be revolved by the 2025 date shares of capri off 7.5%

tapestry shares are up 5%. okay it is now just about 7:00 a.m. on the east coast. you are watching "squawk box" on cnbc a lot going this morning i'm andrew ross sorkin joe kernen is here becky quick is at the table. the futures at this hour, >> disney is on the move. a large part on the back of guidance for double-digit eps growth in 26 and 27, we are going to dig into all of those numbers, hugh johnson is going to be at this table and just a little bit to go over the numbers, as well as succession in strategy and everything else that is taking place at disney, but you are absolutely right, disney is on the move. and something else to take a look at this morning, crypto, in a big way, you have a couple of the others, ether is up as

well.>> adriana kugler speaking about the economy and said economics this morning, we want to get over to steve for the headlines on this.>> good morning, yes, adriana kugler at a conference this orning at a potentially fraught time for the fed, but first she made comments about the policies and economy, you should pay attention to both sides of this mandate, it could be appropriate to pause rate cuts but, we could also gradually reduce rates, the u.s. is seeing cooling in the labor market. and the headline pce, i think she is talking about this month, 2.8% and core at 2.8%.

most of the speech is about the benefits of central-bank independence in the u.s. and around the world, setting a lot of research. she said independent central banks yield better economic outcomes, research shows advanced economies have lower inflation and finally, central bank independence loose credibility to fight inflation, and she said central-bank credibility keeps inflation expectations under control. monetary processes controlled by elected governments could destabilize prices because of short run focus on certain goals by the elected governments and governments could have a set up to modify its debt, the said independence she says could develop policy tools to help the great financial crisis. finally, a president-elect has

been notably silent about the fed since the election, he previously said he might fire the chair but, that should have more influence on setting policy. chair jerome powell advertised before the election, it is not a direct battle but be sent this -- some positioning going on. >> that is what i was going to ask you, is this a cord needed effort by the fed to send somebody to talk about these things? how long ago was this topic decided? >> i believe during the summer it was decided and by the way, these speeches take months to create so it is worth thinking about the idea that i don't think this is in direct response to this problem, it is done from time to time for the fed to come forward and say remember that independence you

gave us? well, here's why it is a good thing and of course now it has a certain meaning that it may not have had before. this will be an interesting test by the way, i think there is one going on with some of these appointments, with the executive and congress and obviously the fed is a creation of congress so this test between the executive and the fed may yet be coming. we will see.>> okay, i think that is an important distinction to make, i'm glad you pointed that out with the timing, thank you, steve.>> what was that top gun song? they are both kenny loggins. that is weird, so danger zone, that is kenny loggins. and i'm all right is kenny loggins, what a star. and footloose. >> that's right, that is pretty

amazing. the price of bitcoin is up more than 30% since donald trump won the election, we will check out what is next for the crypto market. and tomorrow is the first annual ron baron onference, we are going to talk tesla, elon musk and much more, we will be right back

>> the price of bitcoin briefly hitting $93,000 level before pulling back, let's talk about the crypto market and bring in matthew siegel, head of digital assets research.

i thought that it was definitely a log in the tooth, this sort of mania, you say at least for your work that you don't necessarily see that yet in terms of other it is totally overdone?>> joe, we think it is just getting started, as we expected, bitcoin saw this high volatility pump after the election, we are in blue sky territory, no technical resistance and we think we are likely to make repeated all- time highs over the next few quarters, the same pattern played out four years ago between the election and the end of the year in 2020, bitcoin doubled, there were about six 10% orrections so it is not going to be a straight line but we are up 30% so far and a number of indicators that

we track are still flashing green for this rally to continue. this is a state change in terms of government support, look at this cabinet, the vp, attorney general, director of defense, national security adviser, possibly even the secretary of treasury being pro bitcoin , so the number of calls that i'm getting inbound from investment advisers who are at zero and looking to look at 1% or at 1% and looking to get up to 3%, these calls are starting to accelerate and we think the close are going to follow, so our target is 180 k, we think we could reach that next year, that would be a 1000% return from the bottom to the peak of this cycle, that is still the smallest bitcoin cycle by far. >> and doubled from here basically, you look at weird things, so google search for

bitcoin is one of the things, so you would expect if we were getting topped, that would be off the charts, and it is not yet? >> google searches are nowhere near where they were four years ago, coin basis is ranked in the apple app store's, look at the internals of the derivative markets, what it calls for funding to put on bitcoin futures trades . it is up but, once we get into this price discovery mode, it tends to stay elevated for quite some time. >> someone said on day one, i don't know when it actually becomes a big sell on the news, i don't know, maybe i just think it's more of a mania move now than it actually is, but it just seems like it has been a

heck of a move.>> yeah, i think maybe the disappointment phase will sutton one or two quarters after the election, when you stop suing people for breaking rules that have never been written down, that is a long way of saying that regulation enforcement is going to end, we are already seeing the impact of that, there are crypto projects announcing they are going to hold conferences in the u.s. for the first time over. it's just great for u.s. obs and gdp, we've got the bitcoin reserve that would legitimize this asset , pave the way to be used as a global sediment currency, president trump recognizes the synergies between bitcoin and a.i., they are two sides of the same coin. if you want to have cheap a.i., combine it with bitcoin mining

to take advantage of that. >> we've got to disney, bitcoin, they are both important obviously, we've got to get moving to the cfo, but we appreciate your time today matt, thank you.>> when we come back we are going to talk about disney, stock is up on the back of its earnings, hugh johnston is going to sit with us, we are going to go through all the numbers, so much more in just a little bit. then, jay clayton is going to talk aboutrede tmp psintru's cabinet picks, so much more, you don't want to go anywhere. back after this. president in the white house, new heads of agencies, new members of congress, all with their own policy priorities. the 2024 election will shape the future of business

in unforeseen ways. now is the time for us to do modeling, assess legislation, and understand the impact on organizations. from election day to the first 100 days and beyond, ey brings you insights on the issues that matter: regulation of ai, the fate of billions in tax credits, global trade impacts on your supply chain and workforce stability and security. the congressional outcomes will matter a lot for what can happen when it comes to health policy. no matter the policy shifts, ey helps business and government leaders remain resilient and mitigate risk while seizing dynamic growth opportunities. ey. navigate the geopolitical and economic landscape with confidence.

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

i can't believe you corporate types are still at it. just stop calling each other rock stars. and using workday to put finance and h.r. on one platform. tim, you are a rock star. using responsible ai doesn't make you a rock star. it kinda does. you are not rock stars. (clears throat) okay. most of you are not rock stars. oooh. data driven insights, and large language models. oh, that's so rock roll. it is, right. he gets it. yeah.

>> welcome back. disney being on the top and bottom lines this morning, the stock moving on the back of that news, we are talking about what drove the quarter. good morning.>> the top and bottom line beta was driven in direct to consumer profits, that is nearly double what they expected, showing that disney plus cost controls are paying off, revenue was a little bit lighter than outside expectations. disney plus core subscribers added 3 million less than expected, while revenue digital did fall short. and the stream was far more than expected, 38% drop on linear profits, thanks in part to cord cutting.

domestic parks also benefited from cost controls and higher overall guest spending, however attendance was only comparable to last year's levels. guidance for high single digit earnings growth in this new fiscal year looked stronger than expectations, driven by continued improvement in the dtc business, the company will see in approximately $875 million improvement in dtc operating income in the next fiscal year, disney also projecting earnings growth to accelerate through double-digit rate in each of the next two years. andrew? >> thank you, do not go anywhere, hugh johnston is at the table with us, and a member of our cfo counsel is here as well, we are going to sit with you and walk through the numbers. it was fascinating to me, walking through the futures this morning, as that announcement was made, there were people who were disappointed early on with some of the results because they were looking for these numbers, a little bit light on the revenue side. as they continued down and saw

the guidance not just for this year but for 26 and 27, double digit eps numbers, they said maybe this is looking better than we thought. so let's talk about that. what are the challenges that you are confronting right now and what does that look like and what gives you the confidence that the numbers are going to look so meaningfully better when you get into 26 and 27 point >> i think the fact that we have had such a strong 24 overall has been an important part of the uidance we are getting, if you think of the big initiatives we have invested, putting creativity at the back of the center of the company, and on top of that, we said we wanted to improve profitability and we are clearly doing that in a substantive way and we are investing in the parks because we had such great returns, theme parks, cruises, even

consumer products. if you put all of those pieces together, i think 24 in many ways was the pivot point for the walt disney company and we have enough confidence now and the results we are seeing to say we really can guide for the next couple of years.>> this is incredible, if you almost never have given guidance this far out, what made you decide now over the next three years and are you concerned about things like hiccups and consumer spending or even a potential pullback on the economy to impact that long-term guidance? >> we are always going to worry about that, but you have to make assumptions about what the consumer is going to do and we see a consumer that is slowly but steadily going to get better. beyond that, with the significant investments we have made to build the dtc business, it has only been five years so it is relatively new, now it is a business with 175 million subscribers, it is turning

profit over the course of the last year and we see a lot of profitability in the future, and on top of that, the investments we are making in the parks, we feel we need to have investors not just the current business results but what the return is on those. >> you have streaming and espn all figured out at this point. what i think this means, if you can say double digits, that is the base case for you.>> you are trying to drag me upward?>> i'm trying to get you to say, that is pretty good, if you are confident saying the low end of things, i think it could be even better. plus you have movies in studio. visibility is very hard in that business. >> but if you look at what we do in terms of creativity, we were generating too much content four years ago, and frankly it suffered to some degree.

when bob came back, we made it clear we were going to prioritize with less quantity and better quality, and that is what you are seeing, whether it is the tv shows or inside out 2 or deadpool, we have a lot of confidence in the creative process and it is tightly wound. we do maybe five movies per year, i think you will probably see two great ones, and maybe one that is just okay. >> this is a topic that is close to home here at comcast because there is a question about the linear channels or the cable channels, i asked because the linear piece of your business is down meaningfully this quarter and the question is, there was a time where bob and you and others were considering spinning that business off, you chose to keep it. what happens with that business, do you think that you

should have kept it or continue to keep it, when you consider ever spinning off? >> i like the portfolio the way it is right now, i wouldn't change anything, one of the first things i did when i became cfo, i came back with, you can do spreadsheet math to do anything, but when you look at operationally what it takes to do that, this is actually a good integrated portfolio and the cost is probably more than the benefit.>> spinning it off would require too much -->> it is just too much operational complexity, and in many ways if you think about it, it is just a natural hedge anyway, as people leave one distribution general and move to another, it is the same thing.>> part of the argument, i'm curious what you think about comcast, even contemplation of this, is that it is a drag effectively on the

multiple of the company and whether you can capture some kind of multiple as a spun company that you can't right now in the market.>> the amount of multiple we have to pull into make that worth it, it isn't a deal that is worth doing.>> meaning, if you had done that five years ago, this would be a different conversation? >> i was in here five years ago, that is a tough one for me to say, but i like where the portfolio sits because i like the integration. and linear does have a very separate demographic as you know, it tends to be a little older and we want to make sure we don't lose that demographic so i would rather keep it as a portfolio.>> going back to the guidance, did the election play a result in being able to issue this guidance, in other words, looking at corporate tax works?>> not necessarily, i don't know what is going to

happen with the corporate tax works.>> you said you're not interested in spinning off those linear assets, but are there other deals you are interested in right now?>> i like the portfolio as it exists right now, we will look at others as they come along, we will certainly do that. we are not by any means afraid to do it but our portfolio is really good right now.>> in terms of the streaming business and a big boost you saw this quarter, how much of that was due to the bundle you offered consumers with max? and are you going to do bundles in the streaming sites? >> we are always open to good ideas, bundling clearly helps, and max, we think it is going to be good but it is not critical to what we are doing.>> what is your base now for the sports bundle that is now on pause?>> venue right now isn't on the core.

>> when you start to think about what the business looks like two or three years out, is that not even in your calculation?>> right now i'm assuming that court case is going to play out, if anything doesn't happen, flagship will probably do more, so i think we are basically hedged on that either way.>> we have heard new reports of james gorman looking outside the company for a ceo, also permutations where maybe bob becomes the chairman and you get a bigger role. >> i've got plenty of work to do right now, i don't need a bigger role. what i would say on successions, i think this board is being very transparent with investors in terms of its process, i think they are taking their time and appropriately trying to make it a good decision and my expectation is they will make a great decision as indicated.

people need to focus on business and that the board worry about succession. >> i want to get your insight in this state to the consumer because you have great visibility, spending at the parks was up but attendance was flat, typically you are growing in attendance, what do you see in the state of the growing consumer?>> i wouldn't say we are concerned, we saw that coming, but i think the consumer is gradually strengthening. so i think there was a period in the first half of this year where the consumer was really locking down because inflation and people were struggling, i think you are seeing a very gradual growth, which is what we are seeing in the streaming right now. and the parks will continue to strengthen as well, we will probably be better in the second half of the year. >> can i circle back for a second, i was mentioning the venue sports, but there is now

a renewed, or newfound enthusiasm review that the floodgates are going to open and is going to be all sorts of activity and strategic partnerships that might not have been allowed to take place before, we talked about the success with max partnering. what do you see happening here? how has the chessboard change and where do you fit into that over the next year or two?>> i think right now we have a portfolio that is just right the way it is, so i don't think we need to necessarily need to make any changes.>> do you think there are deeper partner integrations or things that you can't do today but you will be able to do after january 20th?>> it is so early to speculate on that, we are only nine days out of the election, but candidly, i think we need to let this play out a little bit longer before we take a

guess on what the regulatory environment is going to be. it's just early.>> do you serve pepsi at any of the parks?>> we do in shanghai, but coke everywhere else. and the seven dwarves never left, as far as i'm concerned.>> are you sure? that is the bigger question i'm asking you. hugh johnston, thank you for coming in. i love this guy. still to come, former fcc chair, jay clayton, his name has been thrown in the ring for a possible role in the trump administration, "squawk box" will be right back.>> time for toy'tria qstn,das ivueio what are the three biggest ipo's of all time? the answer when "squawk box" returns. and offering aflac can help attract

and retain that top talent. you know we like that top talent. and listen, i mean you gotta listen. aflac gives employees cash to help with unexpected medical bills. it's prime time to add aflac. request a call today at aflac.com/prime ♪ snow day by caitlyn smith ♪ celebrate the journeys that bring us closer together. the mercedes-benz holiday love celebration is back with offers on vehicles like the 2025 glc suv. now through january 2nd.

(vo) this holiday, verizon will turn your old or broken phone into a gift. anyone can trade in any phone, in any condition and get samsung galaxy s24+, and watch and tab, all three on us. only on verizon. >> now the answer to today's aflac trivia question, what e ar the three biggest ipos of all time

[sfx: wind, rain and rolling thunder] with the vision to see what's possible and the grit to make it happen, morgan stanley can help create the future only you can see. [crowd cheers] [music out]

>> betting on contests is becoming a bigger part of american culture, from politics

to sports, states are raking in revenues, sports wages are the most popular form of legalized online gambling, is it a good thing? john ford is here to weigh in.>> well, the rise of online sports betting is a good thing on pallets, but we still need people to give them help to avoid destructive behavior, digital platforms can give things trackable and regulated framing, so this modern gambling boom was born exactly 6 years and six month ago today when the supreme court struck down the professional amateur sports protection act, this created a flood of new revenue, states have pulled in more than $6.5 billion in tax revenue in the past seven years, on more than $400 billion worth of bets. that raises a red flag, is this bad for people? let's look at an extreme example, brazil, sports betting was also illegal in 2018, and brazil became the number one sports betting market last year behind the

u.s. and the uk, but results combination of impoverished consumers, high interest rate credit offers and lacking safeguards, as that country reeled from a gambling epidemic. here, seven companies command 85% of the market and they have already formed the coalition to keep the problem gamblers from spiraling.>> well, that sounds fine, what's the problem?>> well, on the other hand, online sports betting in the u.s. is already out of control, the two separate research papers released in august show families in the 30 states with legalized sports gambling are saving last, investing less and going bankrupt more often. there is a detail that should raise alarm bells, housing assistance was spending 20% on gambling sites, and in the u.s., poor households are more likely to gamble.

and more likely to have gone child tax credits, meaning they have kids. i know we don't want the government telling us what we should and shouldn't do, it is a free country but we know in this digital economy, some companies are making every effort to keep us scrolling and betting, thanks to lower interest rates, the worst of these effects haven't hit the economy just yet, but it is coming. this year, sports betting is getting more calls from younger clients, the rates are higher, jobs are more scarce, they need to put guardrails in place right now before more vulnerable families get hurt.>> i have a lot of thoughts on this, can most people know and maybe in the history of the world, no one who gambles is actually up, do they realize that? are there professional gamblers that are actually up? >> the poker players, some of

them can do very well. and sports feels like one of those things, i know these teams and players, i can figure this out.>> but most of the time, you don't stay up, can it be looked at as the cost of entertainment? like i'm willing to expend a little per month so i'm more interested in scoring? >> i think that is a good argument, at the same time we have to pay attention to these papers that show that people are not taking just from their entertainment budget and shifting it over, it is coming out of things that the government and the economy is trying to incentivize people, 401(k), you know, save. >> if you are using it and you've got this bill coming up, and you think you can make it, or whatever.>> the qr code, you can scan that and see both arguments, or you can type cnbc.com to sign up.>> coming

up, former s.e.c. chair jay clayton is going to be with us, do not go anywhere, we are going to talk about all of the big trump picks, back after this

>> umgc gave me the ability to succeed again. it allowed me to understand my true potential in life and gave me the tools to go get it. i feel i can accomplish anything. >> learn more at umgc.edu.

it's time to feed the dogs real food in the right amount. a healthy weight can help dogs live a longer and happier life. the farmer's dog makes weight management easy with fresh food pre-portioned for your dog's needs. it's an idea whose time has come.

>> welcome back to "squawk box", joining us now is jay clayton, cnbc contributor and "squawk box" regular, great to have you this morning. we are going to talk about regulatory oversight but we were already talking this morning about who has been placed in the cabinet and what did they think of it the attorney general, matt gaetz is raising a lot of eyebrows this morning , what do you think of the choice? >> let's talk about the choices collectively and i think they tie back to the key promises that were made in the trump campaign and i think the trump campaign believes they won the border, look at homan, you know where he stands. everybody thinks we have the resources to fix it, he is

going to fix it, so that is pretty clear. you look at efficiency, musk did an incredible job in the last month of the campaign explaining the government is not working well for the people, he is appointed. the economy, there are still appointments to come so we will take a look at that.>> we will watch that closely >> and the justice department, the american people, when they look at the last 10 years and things like the rate on -- raid on mar-a-lago, what was so essential that you needed a nighttime raid to get documents? and this wonderful country, we rightfully have a healthy distrust for government and we need to think about whether law enforcement has been used in a way that really is politically

inappropriate, that is a question that we are allowed to ask and we should ask but i know a lot of people of the justice department and a lot of people at the u.s. attorney's offices, almost everyone i have ever met is a fundamentally good person dedicated to the country but we should be asking those questions in light of the cases that have been brought over the last eight years.>> but that is a weird choice. >> look, it's not necessarily, he was willing to ask when others weren't, what is going on here, very loudly. and i think that is something that people -- >> we are asking about things in his life. >> i'm not going to get into that.>> but this is a different point maybe, i absently accept the idea hat there's a bunch of americans that distrust government, distrusts the legal system, they think it is weapon iced, all of those things i would stipulate as true.>>

isn't that amazing? >> 100%, it needs to be fixed, the question is whether resolving it with somebody on his face creates another level of distrust about government and whether they are the right person. there are members of congress who have literally said that he showed them pictures of naked women on his phone, on the floor of congress, and i think on its face, a sensible person who may have had that distrust says, do i trust this? and there's got to be people in the world that can be both loyal to the president and that would instill a level of trust for the whole country.>> it almost looks like he was less interested in governing, i mean look at what happened with kevin mccarthy, et cetera, and

more interested in being in front of cameras and his own ambition, that apparently looks like it has paid off but there is no governing involved, that is in the journal piece today, they don't bring it up. do you think in two days, do you think the house ethics report should come out as part of the vetting for him?>> i'm going to leave at all to the senate house. look, i have told the transition team and the president, that for a job that i think i could be effective, that would satisfy my skill set and be consistent with my skill set, that i would serve, i think it is so important for people to step up and serve the government then if asked to do something within my scope, i

said i would do it. >> let's talk regulatory, changes are coming, several people on the show are trying to figure out what the trump agenda is going to mean for the economic perspective, you can try to figure out inflation but the regulatory overhang is a huge one and how it holds back the economy.>> it is even greater than we all imagined and one of the issues that we are going to see is, we talked about antitrust earlier, whether we are going to see an antitrust policy that is coordinated with overall economic policy. so if we are going to drive growth through energy, tech, capital, human capital and the like, are we going to have an antitrust policy in the ftc and the doj that fits with that? or is independent of that. there are times when independence, meaning isolation is really silly in the regulatory state.>> okay, so he

pointed out that matt gaetz is what they call some of the conservatives, and that brings some questions into what is going to be done from an mna perspective. >> i expect that we will have a very liberal mna market, because markets are moving faster than ever, who would have thought that perplexity would be a very significant competitor to google search. markets are moving so fast that allowing market forces to determine future direction rather than somebody saying at the ftc, thinking this is the way the market should look, is something we should give much more deference to. >> i would give that face value, what we saw in the last trump administration, that was the case unless you were a

company that really ticked off trump.>> look, i think that often times, people will say that there is a personal motivation in connection with enforcement matter, in order to deflect. when i was a regulator, i can stipulate that i had no personal motivation in cases that we brought. many times, people were like oh, he's bringing this case for this reason or that reason, that happens a lot. we should be somewhat skeptical. and when people say that about anybody in the biden administration, i'm highly skeptical.>> it is harder to deflect when you have a president who is very vocal on social media or true social, saying things about the companies that are trying to get things done and somehow, they are blocked by government offices from being able to do those very things.>> looking forward, i don't expect a lot

of frictions in the mna market, if i were to go somewhere, it would use your market power to tie into another market, that is the kind of thing i could see. >> but otherwise, game on? because it has been shut down for years. >> the markets move on and the markets move faster.>> do you know anything about the economic improvements, do you know nothing from your side? >> i don't know more than you do.>> i think these are extremely important appointments. we have an economy, mark made a comment that i thought was absolutely terrific he said it is a coiled spring ready to explode. he's right. and the economic team should

recognize that and know how to release that spring in a way that is best for the country.>> we keep talking about a coiled spring and sort of everybody should be excited and at the same time, you talked about it, this idea that we might actually be heading into a recession, that trees don't grow to the sky, that it is just impossible.>> is he talking about the markets or the general economy? i think he was talking about the market.>> you love coming in at the bottom. after a pandemic, bring it on. but, if it is a coiled spring, then the market should hold. >> i think the market is anticipating, the market is way

ahead but we have to uncoil that spring and continue to drive the energy forward, tech is so important, you know, efficiencies.>> this is an easy question for you, will you still be a cnbc contributor in a month? >> i hope so. are you firing me?>> no, i'm just wondering if you have bigger fish to fry or not. you have no idea?>> we do love you coming on here.>> we do. you can still come on.>> it's like an argument at thanksgiving dinner.>> we have some great landscapers at the white house.>> jay clayton, thank you. >> coming up, more on the markets this morning, the

futures right now up 97, we are coming right back. (vo) this season, try opendoor's turducken of offers. at the center is our all-cash offer. then comes the option to list for more. all wrapped in the certainty of a simple sale. this holiday, sell your home your way with opendoor.

♪ ♪ ♪ something has changed within me ♪ ♪ it's time to try defying gravity ♪ ♪ ♪

>> tomorrow on "squawk box" , ron baron will join us to talk tesla, elon musk and more, that starts at 7:00 eastern time, don't miss it. tesla is up 30% year-to-date, quk x" wl be right back. perform index. that's the power of curiosity. better questions can lead to better solutions. t. rowe price. invest with confidence.

for the better part of a century, harry & david has been making gourmet gifts that bring people together. to share traditions and make new memories. to bring us all closer, even when we're apart. no matter when and no matter where, life is a gift best shared. harry & david. life is a gift. share more. ♪ i wanna hold you forever ♪ hey little bear bear. ♪ ♪ ♪ i'm gonna love you forever ♪ ♪ ♪ c'mon, bear. ♪ ♪ ♪ you don't...you don't have to worry... ♪ ♪ be by your side... i'll be there... ♪ ♪ with my arms wrapped around... ♪

coast, and you're watching "squawk box" right here on cnbc. i'm becky quick along with joe kernen and andrew ross sorkin. disney topping, driven by a quarter of a billion dollars in direct-to-consumer profits the street seeming to cheer disney's earnings growth guidance in fact, that was probably the most important part of all of this the company's cfo, hugh johnston joined us in the last hour >> i think '24 in many ways was

the pivot point for the walt disney company, and we have enough confidence in the results we're seeing that we can say we really can guide for the next couple of years. >> disney shares, by the way, up by 10% this morning. that is a huge move. in other corporate news, u.s. luxury houses capri and tappest ri, calling off the 8 1/2 billion dollars to merge that follows a lawsuit from the federal trade commission aimed at blocking that deal. and ex-rival blue sky, surging to the top of the free app section in apple's app store that move indicates some social media users may be looking for different outlooks after elon musk's takeover of x. the dow up 103 points, s&p 500, 8, 9 points and the nasdaq up 21 points i want to show you the ten-year note right now you're looking at, well, i'm looking around, 4.47 on the ten-year, the two-year at 4.284.

i want to get straight over to dom chu with a look at the premarket movers. >> good morning. an analyst update of campbell's soup, shares high by 1 1/3% after piper sandler weighed to neutral, and the target price up to 56 bucks. it was 44 prior. they're citing improving retail and volume in the u.s., as well as growth expectations for the raos pasta brand those shares up by 1 1/3%. cisco shares falling after the computer networking dow component reported better than expected profits and revenues and gave a full-year forecast, raised from the prior view, seen as disappointing, those shares down 2 1/2%. a gain on cnh industrial they're up just about 5% this is the european farm equipment maker. it's catching the eye of hedge fund manager, david eyehorn. he told the delivering alpha

audience yesterday that he's taking a stake in the company and says there are multiple reasons why. >> it pays a 3 or 4%metime next we'll come around to an up part o. cycle and people will begin envisioning a couple of dollars of earnings on the next up cycle and maybe you get 10 or 11 times that, in which case the stock could double over the next couple of years. >> cnh shares up 3 1/2% over the 12-month period but down 17% this year. i'll send things back over to you. let's talk more about the markets from the alpha summit yesterday. a note of caution, take a look >> trees don't grow to the sky definitely not uninterrupted there will be something that

will upset it. i think you've got euphoria from the election on the other hand, you look at the international stocks have got slayed over the last week or so >> her take on the rally, head of investment strategy of jpmorgan wealth management trees don't grow to the sky, usually, though they seem to be growing to the sky right now the question is if there's somebody on the other end of the tree, with their ax or cutting it, and when that's going to happen, if it's going to >> look, we think that 2025 is going to be a year to build on the strength of 2024's gains while there has been some euphoria and this optimistic knee jerk reaction to the outcome of the election, what we're basing our expectation for about 10% s&p 500 up side on is an improving fundamental backdrop you've got broadening earnings growth, prospects for deregulation and lower taxes, and we see a lot of opportunity within the index. >> what do you think of warren

buffett building a $300 billion arc, noah's ark of cash? >> valuations are high i think like warren buffett, we would encourage investors to get a little more opportunistic, if we were to see a pulldown and have some value opportunities emerge what we're really kind of basing that outlook on is the reality that earnings growth is going to continue that's going to do the heavy lifting, even as valuations come down over the course of the next year. >> you say even as valuations come down. why do you say the valuations come down. >> at 22, 22 1/2 times, they look a little bit toppish. the good news is from 2025 to 2026, we think that you can get about 10% index level earnings growth every sector in the s&p 500 is expected to grow earnings for the first time in a few years, and so that's what's going to do the heavy lifting, versus 2024's

composition of returns, which has been a pretty even split between the two. >> i don't know if you've seen david einhorn's comments, he said, if we look back ten years from now, and you say this is the time you were putting a lot of cash to work, it would be unlikely you would look at that and go that was the greatest time in the world to do this >> sure. >> for those folks sitting on the sidelines, might have missed the train earlier, or maybe they just came into some money or something's happened here, what are they supposed to do? >> well, talking first -- >> besides call you. >> of course call us. but thinking first about equity markets. we do think that new opportunities have emerged, kind of related to the outcome of the election, the financial sector would be one example of that. >> you don't think that's baked? >> we would be buyers into the strength between the deregulatory

environment, prospects for m&a, there are going to be head winds, we are encouraging investors to look at the entire investment opportunity set fixed income might be tricky, and require investors to be on their toes in terms of navigating into 2025 looking at opportunities in real estate, infrastructure, look really compelling to us. >> elyse, thank you for coming in this morning. >> thank you. advanced micro has announced it will lay off 4% of its staff globally boeing plans to cut 10% of its global work force. joining us now to talk layoffs, also combined with the return of the office, yale university lecturer, joanne litman, a cnbc contributor. one of the points you're making, joanne, is maybe, let's see, there's buyer's markets, sellers markets, what do you call it when a boss, versus employees, starts to get the upper hand again, what kind of market is that you think maybe we're starting

to see a little shift that way >> so thanks, joe, we're starting to see a bit of a shift in terms of where the power resides from the employees to the employers. but i wouldn't get too excited about that right now because, look, the economy is still very strong consumer demand is still strong. and while we're hearing an awful lot about these very very high profile companies that are doing layoffs, for the most part, they are in the tech sector, in our business, in the media sector. and overall, you're not seeing, you know, they represent a very small percentage of the company's that are out there, and the employment that's out there. right? unemployment is low. the other thing, joe, that we're seeing, they are trying to get people back into the office, particularly some of these very high profile companies like amazon want them five days a week in the office, but, again, they're a really small minority. the latest figures show that 80%

of companies are still offering some version of remote hybrid work and that does not seem to be shifting all that much >> i'm not going to say it's a conspiracy theory. but you actually, since layoffs might be coming, you think that some ceos are demanding coming back so that they can get people to say, okay, forget it. i don't want to take this job and ve it. i don't work here anymore. do you think that's actually happening? go . >> every time a company announces this five day a week or got to come back, that's the theory that sounds it is that they want to and potentially there's some truth to that, but the fact is that bosses like to have people on the premises. i've spent most of my career as an editor and editor in chief,

and i like to have people in the office there's something to be said, i'm empathetic to the idea of culture and mentorship and creativity and all of those things, but that said, there is a reason why hybrid, remote work remains so prevalent, and the reason is that it works. right? we are now far enough along that we have seen tons of research that's already come out on this, so we know 98% of employees want it we know from nick bloom, who you guys know well at stanford who has studied this, who has found that when you have hybrid work, not fully remote, hybrid work, productivity remains the same, and employees are happier. the employee retention is better you lose fewer people. so it's all on the up side, whereas when you force people to come back to work five days a week, there's research on that out of the university of pittsburgh, they found it actually doesn't even help your financial results. it doesn't help your earnings per share, it doesn't help your

quarterly earnings all of the evidence is stacking up on the side of retaining some version of remote hybrid work. >> i guess i'm just jealous, i guess. i can't believe that it -- because we have, you know, obviously, there's so such thing, but i just can't -- just seems like a way to work less and sort of just, you know, view around, not do as much and you keep saying that the research shows it's just as productive i don't know i guess i'm old school but there will never be fully remote, maybe. maybe hybrid is something that we'll have forever, joe anne can we agree on that >> i would agree i would agree with you, joe, on the fully remote is going away fully remote has not been very successful but when you're talking about having eople in the office three or four days a week, and then having a day a week -- >> slackers. slackers >> i don't think they're slackers >> we got to go. i'm jealous. >> look, joe, i would rather be

in person with you today rather than on -- >> this hybrid stuff is crap it would be much better if you were here. just kidding, but thank you. good to have you >> coming up, colony capital founder, tom barrack with a wide ranging interview on president trump white house win, the transition, some of the controversial picks making headlines this morning stay tuned, "squawk box" will be right back

wall street forecasts over $100 billion in sales for weight loss drugs known as glp-1. even with disliked injections. dehydratech processing of a glp-1 drug demonstrated improved blood sugar reduction and reduced side effects. study results are arriving monthly and lexaria has entered a new relationship within the global pharmaceutical industry. lexaria bioscience, transforming the future of glp-1 drug delivery.

president-elect trump at the white house yesterday meeting with president biden our next guest, long time ally of president-elect trump and chair of the 2016 inaugural committee, years ago, joining us now in an exclusive interview is investor tom barrack, colony capital founder. good to have you on. >> good to be back becky's timeless, nothing changes. >> love you, tom >> what am i >> i didn't leave you out, i just didn't leave you in >> love it tom, i think one of the things we talked about off camera, were you more involved in the last

trump run and presidency than you have been this time? you have always been long time friends, obviously, with the president-elect, but i don't think you got involved this time until just a couple of months ago. is that a fact >> absolutely. sure, in the 2016 process, none of us knew exactly what we were doing. the president-elect was marching down a road. i mean, think of it, people say he's a great political athlete he's just a great athlete, to wander around politics and business with no background, no governing experience is tough. he did a great job i was very involved then, and kind of just chipping away at the system i thought it was great to have a new warrior in the middle of it, just stirring things up. and he did the best job he possibly could that first term then, you know, we started this process of what people are

calling corruption of the justice system i don't think -- it's not corrupt. these people are not corrupt merrick garland is not corrupt he's accomplished, he's educated he's pedigreed, he's trying to do the right thing the system is corroded so underneath, if you have 94 political appointees who are u.s. attorneys, and by the way, these people are sensational, right, they're 30 to 40 years old, men and women come out of the elite law schools, pedigreed, it's like a rugby game, so you have a political appointed attorney general, who says i have 10,000 felony laws i'm going to enforce them in accordance with my political belief from the president that i have so that's like a rugby game, it's horrible. but they're not corrupt. the system, the fbi reports to the doj, everybody cooperates with everybody, and this is what president trump found himself in i got frustrated watching it after my -- look, my experience, and we talked about it before, at the end of the day, the

system works for all of us. but in moments, it doesn't so you ave to allow it to play out. in my case, after two years of serious litigation, a brooklyn jury who's not a fan of president trump, a brilliant judge who every motion denied for two years, i said i'm going to go for singh for 40 years complete adjudication. president trump, attacked. everybody tried to kill him, financially attacked, personally attacked spiritually attacked and the nation comes up with this incredible moment so i came back to him because, honestly, what i learned is his instincts are so good. they really are. and all of us get frustrated because we have points of view around the edge that seems a

little bit harsh, for instance, on some of his appointments. >> right so give us the take on matt gaetz. you said his instincts you think are great. a lot of people raising their eyebrows on the matt gaetz piece of this, right >> right you take the whole scene who he's put in place up until now. tulsi, by the way, who i know really well is absolutely sensational. you have aj patel, all of thes athletes on our side to shake up the department of justice, just think about it, that is an unbelievable undertaking. because the civil servants, so you have thousands of attorneys, thousands of fbi agents who also are not corrupt, but they see politicians come and go. so it's turn left, turn right, turn

turn left. >> in terms of the trust, let's stipulate, there's a lot of people who don't trust the system in part because there was a worry it was being weaponized by politicians if we don't want that, and then there's a matt gaetz put in this place, the question is the perception, right, if half the country or more distrusts this, i think, more, because there are people in the republican party raising their eyebrows and saying is this the right person, are there other people who can be loyal to the president, if you will, who might be more sensible and instill that semblance of trust and still be able to do the things you're talking about in terms of rooting out the corrosion. >> absolutely. and your analysis is exactly right. and you have to trust the president-elect's instincts. and i had this conversation living on either coast at halloween, i didn't have to put on a costume, i walk into a room, they freak out there's nobody -- i mean, you know hollywood i was not well received in those

circles. and people used to say, why can't you draw him back to the middle, why can't he be reasonable i said, he can absolutely be reasonable, absolutely go to the middle his instincts are saying that's not what america wants to be at the moment he can draw back to that the same with matt, he has a plan, he has a reason, he has an overwhelming vote from the people to do what it is, he thinks is right. let him be him let's all get behind him for a moment retribution is not what he's interested in. he's interested in vindication. >> you don't think if matt gaetz is in that role, a super powerful role. you lived through litigation of your own i don't know what that cost you. i was having a conversation with my son last night, we were talking about this, and my son said, well, if the justice system works, we shouldn't have to worry about this kind of thing. and i said, true, but you also don't want prosecutors unfairly prosecuting people because the

cost is real you probably spent hundreds of thousands of dollars, millions of dollars. >> what's already happened or what you're worried about now? >> both. >> i think that's trump's whole reason for picking him. >> the question is if we're trying to root that out. >> you don't double down. >> and that's the question, i think, about this piece. >> and you're so right and this is the saddest thing, right, is i say the system works. it works for people who have resources. by god's grace, by the way, we can say god, that's another fantastic thing at the moment. by god's grace, my family had the resources to allow me to get through this but normal people who are facing a felony, a federal felony, the conviction rate is 99.7% they have to flip, right, which is the whole system. you think they want me what do they care about a lebanese financial lawyer in private equity it's not interesting to them

you're exactly right but i think sending a shock wave through that system, and i don't know i can't speak for the president, what i can say is he's not using that as political capital. >> you say it's going to be a recess appointment >> yes >> gaetz is going to be attorney general. >> i don't know, again, i'm not speaking for the president. >> is deputy ag important, tom >> super and the third in place is even more important you need somebody who understands the plumbing right? when you go through all of the processes of how the fbi and special investigators and classified information works, prosecutors have the grand jury. the grand jury can indict a ham sandwich, as they've always said the defendants have no rights. but the process of what you do with a civil servant it's the civil servants. >> i mean, i think about it, if you really wanted to deweaponize things and make sure people weren't worried about such things, you almost think

president trump saying, okay, we're going to pardon hunter biden, right, shut things down, and in the process, and it's not that there aren't things that you could definitely go after him for that he's probably guilty of it the question is which cases do you pick and which do you not? >> absolutely. and we're all ready to have it over, right. and by the way, president biden, i know him personally. i adore him. >> biden's not going to do it. >> i'm sad for everything that happened, and the greatest event besides president trump being elected was seeing president-elect trump and president biden shaking hands with real smiles on their faces. >> that was -- a lot of people talked about how real president biden's smile was. i have never seen him -- >> right >> it was beautiful. it was kind of surreal those things are not out of the question >> i wonder who he voted for. >> right >> i'm not sure who he voted for. i'm not completely sure he voted

for -- >> oh, i don't know about that >> i'm not kidding >> i'm so curious, as a business leader yourself and somebody who has been watching all of this, sort of what role you think he's ultimately going to have, what role he's had thus far in terms of maybe even being bigger than we know. there was a line in a story yesterday that said he was a quote, unquote, co-president how much influence he's going to have in this blue ribbon committee, through either executive orders and the like but then on the flipside, obviously there's going to be a lot of, i imagine, bigger issues that will have to get dealt with by congress and the senate and the like >> absolutely. i look at it as a champion lion, and a champion cheetah coming together right? elon musk is outside of the political ring, probably most important innovator, creator, manufacturer, product creator. if you take tesla, batteries,

satellites, links in your brain. right? i mean, he single handedly did more than nasa could do in 20 years. so he's thinking in a generation in a way that has to take us from bricks to bits. that's not the president-elect's main area. so in saying we have to move everybody's cheese, which he's done how do these guys -- they build a data center that takes four years in 18 days i think that focus, and it's not co-presidency. nobody co-presidents with this president. we've learned that, right? it's his road, his path. >> do you think they will be pals at the end of the four years? >> yes, i do i do i think they respect each other in their own way >> who do you want for treasury? >> pardon me >> who do you want for treasury, although we got to go. >> whoever the president picks, you have howard lutnick, scott

bessent. >> tom, thank you very much. when we come back, we have breaking producer inflation data also homeland security secretary will be joining us as well all of this coming up. secretary mayorkas "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. rick santelli here on cm hq, the breaking news of the morning ppi, for october, headline number expected up .2. once again, delivers up .2 in the rear view mirror it was zero unchanged zero unchanged would have been we had four of those in 2024 thus far popping up .2 equals where we were in august find a higher number, you go to june when it was up .3 if you strip out food and energy, up .3, hotter than

expected hotter than the rear view mirror up .3, that's the warmest since it was up .5 in june, equals where we were in august. now, if we strip out food, energy and trade, also hotter than expected, up .3 in the rear view mirror, up .1 hottest since july when it was up .4. let's take a step back and do year over year, a bigger view, 2.4 expected, excuse me, 2.3 expected 2.4 warmer than expected in the rear view mirror 1.9, which was 1.8 2.4 is the second highest -- oh, i'm sorry, third highest reading of the year, to find the higher you go to june, 2.9. if we strip out food and energy on a year-over-year basis, expected 3%. rear view mirror, 2.8, comes in at 3.5 3.5? that is, excuse me, 3.1. 3.1. and that is hotter than

expected strip out food, energy and trade, newscast 3.5. 3.5 is the warmest going all the way back to march of last year march of last year now, these numbers are definitely warmer. if you look at initial claims, 217,000, that is 4,000 less than 221, which was last week, unrevised. 217 would be the lightest going back to may of '24, and finally, on continuing claims, they remain above 1.8 million coming in darn close to expectations. 1,873,000, following a slightly revised 834,000. i'm a little surprised, actually, that they haven't picked up more, considering, let's see, 1, 2, 3, 4, 5, pretty much every single number is hotter than the rear view mirror, and every single number outside of the headline up to .2 is higher than expected. we've seen two-year note yields move from 426 to 429, basically

unchanged. and we see ten-year note yields we went from 443 to 445. 445's also unchanged-ish we're hovering very near the lowest closing yields since the first couple of days in july from a ten-year, and the biggest story of late, outside the big run in equities election, is the resteepening of the yield curve and how the market seems to keep short rates, like two-year notes in line with fed expectations, which was evident in cpi, versus the long end, which seems to be paying attention to a variety of other issues becky, back to you >> okay. rick, thank you. for more on the data, we want to bring in jerome snyder, head of short-term portfolio management at pimco, and our very own steve liesman. you go first tell us what else you're seeing in the numbers >> yeah, something going on in demand for transportation and warehousing services not exactly sure what's going on there, whether or not, i don't know if that was strike related

or something going on there. but that was a pretty big bump right there. not sure if that was the reason. i had, according to my estimate, the energy in loin with expectations, didn't change the number, which was 03 but the dow jones forecast was .3% on food and energy look, this is definitely a bump hotter than expected in terms of the overall direction of things. maybe you make it -- it's in line or a little bit hotter on the month. but i think we're going through a bump here, not really sure most folks that i've read in terms of yesterday's cpi expect november to do better because of certain one-off things airline passengers yesterday, and rick is exactly right. guys, if you can put up -- i don't think you can put them up together -- >> better meaning lower inflation, right >> better meaning lower, yes, in terms of next month. if you could put up charts of the two-year yesterday and the

ten-year, i want to visually show you what rick was talking about. so you can see the two-year yield, i guess it's up this morning. yesterday it fell and stayed down, while the ten-year went down and came back . and that's why you did get that eight basis point increase very interesting i think rick scott is exactly right. the two follows the fed, the ten has the a lot of other things os mind. >> very quickly. a little hotter than anticipated in some ways of looking at it, steve. you don't think this is something that would call the fed off from the expected cut in december >> well, no, because they get another round of inflation reports in -- in november, before the next meeting. >> yeah. okay >> but before the november meeting, so there's reasons to think that -- >> december. >> the airline passenger, some other things in there, we'll see if they all met out. there were a few things that were down. the used car thing was a big

issue. the 2.7% increase in used cars was a reason people were like, that's not exactly what is going on: the rent number is expected to come down i don't know, i'm looking at only the things higher than normal, let's get rid of those most of the economists i have read say they think things are going to improve in november before the next meeting. it's also the way the market is betting. i will say, maybe a little on the hawkish side earlier this week, hey, equal outcomes, inflation could be stuck or could improve we are getting a little bit of hawkish commentary from the federal reserve. the market continues to bet, and i will just check this number here i had an 80% number before this number, and it's still up 77%. down a little bit anyway still a pretty big bet in the market the fed cuts in december. >> jerome, you are in charge of short-term portfolio management at pimco how much more complicated has your job gotten in the last couple of months.

>> it's gotten complicated over the last 20 years. it's been the past couple of months, admittedly, central bank policy around the world has become more complicated, divergent, in fact, what we're preparing is not only a higher rate environment which we have seen over the past couple of years. really more volatility to come, there's a lot of question marks. front end of the market is encountering a bipolar world you're exacting data with the potential policies in the government which haven't necessarily come to fruition, and the longer term markets contending with a longer term view where is growth going to come. what is the impact of government, the g in gdp, and more importantly, where do we think inflation is going to settle in the longer term. these are things that both the public and private sector have implications on a go-forward basis. >> why do you think we have seen the constant push on the longer end of the curve what's your explanation? because we have a bunch of explanations. >> the basic explanation is that

you have more supply that's coming in nominal treasuries, which need to be issued and an evolving landscape that isn't necessarily clear in the short-term or longer term. the trick is that you'll have a steepening yield curve where the longer in demand more premium, more compensation for owning the longer maturities. that's to be determined, and quite honestly, where we need to focus on is in the medium term, where we have risk assets that are priced pretty dearly at this point in time, recognize the fact that the go forward process, a second derivative as we get into 2025, of the policy implications, and inflation and growth, which the federal reserve has been focused on, becomes the dominating factor. december isn't necessarily a big deal because cash rates will continue to go lower but as we get into 2025, the volatility or the recalibration of risk appetite electric driven on factors of the consumer and the government see inflation in the

medium term. >> do you think we're headed into a long-term bear market for bonds? >> not necessarily a long-term bear market. you may not have the inverted yield curves or flat curves we have been used to. what is the appropriate compensation for inflation, and for an investor, fixed income investor, as you think about it, you want to be paid on a real basis, inflation-adjusted basis. if inflation moves from 2% to perhaps 2 1/2% over the longer term, there has to be more compensation, and what we're witnessing is a realtime calibration. investors should take a step back and survey the landscape for what it is it's simply a higher rate environment, where volatility because of risk asset pricing may come in the medium term and think about diversification, a simple approach to reduce the volatility think in terms of price adjusted terms and what price changes can do over that medium term and investors will be rewarded on the longer term, looking at lower volatility, total terms, which puts you into the income generation category. >> steve

>> joe, i don't know if you want to play this game. you know the president better than a lot of people, better than anybody on this panel do you think at some point, joe, he can step forward and offer some principles about what he thinks about debts and deficits, and tax cuts and offset, and that would calm the market i don't know at 4.47 if there's a need for him to do that. i would imagine the market would react favorable with a fiscal, prudent commentary from the president-elect? >> no, i don't see that. i think you're going to hear mostly, and maybe not directly from them, but you're going to hear mostly about how deregulation is going to provide the impetus for a strong economy. i don't think suddenly he's going to say, you know, that no tax on tips, i don't know about that but yeah, i'm not sure about those -- >> ut what if he -- >> what if he said, we're going

to have an overall principle, and our principle will be we're not going to blast the deficit or we're going to try to be neutral on the deficit, do all of those things. >> i don't think i've ever heard him mention the deficit, have you? i don't think i've ever heard him mention the deficit. >> the wild card in the whole discussion is growth, and if you have nominal growth increase, clearly the fiscal side has a recalibration to go. that is to be determined, and what you're seeing in the longer end of the market is not necessarily a question mark, but a natural recalibration in yield terms of trying to assess that risk if you will that makes it more attractive. the federal reserve has a heavy hand if growth diminishes. >> i don't make any outgoing calls. i'm waiting for the treasury secretary appointment. i haven't talked about it. if that does happen, i will talk to you, to the country about the debt if that -- i mean, anything's possible at this

point, isn't it? >> wait a minute, i think so, but i think there's a lot of -- there's a lot of uncertainty, joe, right and we don't know how the president-elect feels about these issues, so i know we got to go, but maybe some discussion for another time, but i think he could have a pretty profound effect >> fed chair i can put in a good work for you. >> definitely not. it would reduce my ability to fish and play music if i was fed chair. i wouldn't like that at all. >> it would reduce your ability to play music, more than what i've already seen. no, i'm kidding. >> you're remembering. >> steve, rick, jerome, thank you, guys. coming up in just a moment, the secretary of homeland security is going to join us for his first tv interview after last week's election he has some big news on ai, and check out shares of meta, the eu announcing it will fine the country, 800 million euros over abusive practices benefitting

facebook marketplace meta ss ayit will appeal that decision stay tuned, you're watching "squawk" and this is cnbc.

♪♪ [inner monologue] this is going to sound crazy. but i know these attack vectors. oh, had a little upgrade have we? ♪♪ okay, so that's how you want to play. ♪♪

when we come back, responsible ai usage, inside the nation's critical

infrastructure the government weighing in with new guidance this morning. we'll talk about it with the secretary of homeland security "squawk box" will be right back. ♪♪ data science can help address some of the biggest challenges in financial markets. if we focus on the mortgage market and follow the life of a loan from origination right through its pricing in the capital markets, our data science capabilities can provide a deep level of insight. at ice we have extensive data sets, especially around three pillars. the property, the mortgage and mortgage performance. this trifecta of data and its history

is a bit of a data scientist's holy grail. ♪♪

welcome back to "squawk box. the department of homeland security, unveiling a set of recommendations for the safe development, and deployment of artificial intelligence in america's infrastructure the framework was developed with the help from the newly established artificial intelligence safety and security board, populated with some of the top ceos in business, including sam altman, microsoft's satya nadella. jensen huang first on cnbc is secretary of security alexander mayorkas thank you for joining us trying to regulate or put guidelines around where ai is going. this is the end of the administration i have a double barrelled question, which is to say, what is the significance of this, and

where you see this going, but also what is the significance of this in the context that a new administration is coming into office in january. >> andrew, thank you so much for having me. let me be clear. these are voluntary guidelines they are not regulations in fact, if companies throughout the ai ecosystem adopt and implement these voluntary guidelines, we can ward off precipitous regulation or legislation that can stifle america's leadership and innovation the guidelines are ground breaking in two different regards. number one, and you referenced at the outset, is the breadth of membership of the ai safety and security board we have brought in not only cloud and compute infrastructure providers, ai model developers, the companies that own and operate critical infrastructure, but we've also brought in civil society and the public sector.

it's a remarkable expanse of participants on this board, number one and number two, it sets forth a model of shared and separate responsibilities everyone in the ai ecosystem has a role to play and has responsibilities to assume and execute to ensure the safe and secure deployment of ai in critical infrastructure, which is our water, our energy -- >> speak to the big details, though, of what these guidelines look like? there's been lots of questions about sort of these various roles, you know, a large language model that's closed like an open ai version, versus an open model that almost anybody can get. it appears from the guidelines that some of the cloud providers, where these things would sit would also have some of their own guidelines around these things how would it work? >> so this is really an

overarching architecture that we hope companies throughout will adopt and implement, and each one has its role to play, and we identify the different responsibilities if it's a cloud and compute infrastructure, making sure that there's the access to that infrastructure is safe and secure, so it's not, in essence, polluted the model developers in making sure there's data integrity. the critical infrastructure operators making sure that they're testing the systems before deploying these the consequences can be incredibly vantageous on the one hand but the risks are real on the other >> what do you think this looks like as there is a transition? i understand these are guidelines, a new administration comes in with new, different, or other alternative priorities, where do you think this lands? >> well it is our hope and the members of the board are committed to it is our hope that

companies and organizations throughout the ecosystem adopt and implement these guidelines it's going to advance the safety and security of the entire enterprise this is not a regulatory regime. it's not a legislative regime. it is a voluntary framework, and we hope that it's really accepted and adopted throughout. it will also critically drive harmonization. what we can't have, companies suffer so much if there's a patch work of regulations that control them, and it's so difficult to comply with sometimes regulations that are either intentioned with one another or sometimes directly conflict we're hoping this adoption and implementation is not only domestic but international as well. >> mr. secretary, while we have you here, you know, we've seen the results of the election, et cetera, and the border and it became such a flash point and such a front and center issue,

and one of the questions to vice president harris was would you have done anything differently, and i don't know whether that affected the outcome, but just in a word, and i know that you serve at the, you know, at the whatever the president asks you to do is the way that you serve, but do you think that there should have been anything done differently over the past four years at the border? do you think things could have -- the election outcome could have been different? anything that you would have done as an individual differently? >> well, joe, i'm not going to speculate about electoral outcomes, but i can tell you this, that the model we have in place now have driven the number of encounters at the southern border down below 2019 levels, the last year before the pandemic struck our country and the world. we're facing an unprecedented level of displacement of people around the world we have actually built an architecture now that is proving tremendously successful. >> that was more recently than i

think some of the damage had already been done, mr. secretary. with all due respect anything prior to that, like from the inception of the administration that could have been done differently? it was something that a lot of people just -- i mean, it became a major flash point. >> no question. >> in the election. >> no question it did, joe, and remember where we were. remember where we were up through may of 2023. everyone across the aisle was really supporting the continuation of title 42, the public health order. not an immigration measure, but a public health order because we were still climbing out of the pandemic more rapidly than any country in the hemisphere, but never the less, still encountering it, so remember what the push was until may of 2023. and then what the administration did was correctly push for more funding for the department of homeland security, as well as

the only enduring solution, which is legislation to fix a broken system. >> mr. secretary, we're out of time how do you like your governor kristi noem, your potential successor? >> i'm going to focus on a smooth transition, and ensure that she, if she is indeed confirmed has an understanding of the challenges we face, and a good understanding and grip on the tools and capabilities we've built to meet those challenges. >> we're out of time tast it's a longer conversation: i hoe pe wget to continue to have it with you. secretary, appreciate your time this morning >> thank you, andrew . >> "squawk box" is coming back right after this

welcome back. tomorrow at 7:00 a.m. eastern time we will bring you an interview with ron baron, a long time investor in tesla and spacex and ask and we will talk about elon musk's new role in the government in the market since president trump's victory and where he sees things headed and he always talks about inflation and what he thinks about that. we have a lot to talk about so make sure you join us. a final check on the markets before we turn things over to squawk on the street in the dow

is up 87 with the nasdaq down 6.6 and the s&p futures up by two points in treasury market today post ppi numbers that were a little hotter than anticipated with the ten-year yielding 4.46 and the two-year at 4.28. that does it for us today and make sure you join us right back here tomorrow and right now it is time for squawk on the street. good thursday morning welcome to squawk on the street in the stock exchange favors it media liberty investor day in the future a steady but the ten- year pops close to 4.5 and the highest since july and the jobless claims lowest since mid may. powell speaks this afternoon and the roadmap begins with