>> all day, every. >> half hour. and welcome. >> every half hour. >> you're on. >> cnbc on. >> my birthday. >> we are live at the nasdaq market site in times square. i'm andrew ross sorkin along with joe kernen. becky is out today. a lot going. on this morning. for my birthday. >> the markets are not cooperating. >> we got the. >> dow looking like it's going to open off about 68 points. the nasdaq down about 16 points. >> the s&p 500. >> off about seven points. let's show you treasury yields right about now because you're looking at the ten year note sitting just about 5.54.555. that would be even worse. and the two year note at 4.3. the s&p hit. >> an all time high yesterday. >> it did. so where it is. >> right now is. >> pretty good. >> that is it. >> all i'll say.

>> and we've. >> already discussed. >> it because i. >> i now i've. >> known. you for. >> so long that it is it 20 years probably. >> oh, yeah. >> at least we've known each other probably about. >> 20 years. >> so you. >> honestly were a young whippersnapper. >> behind the. >> old non whipper? >> you're at. >> a point now with. >> that number you gave. >> me. >> this morning. and we're going to get to the news in. >> just a second. but you're at a point. >> now where. >> i know how young you are and how how great a number that you have is. but in your. >> view, this is. >> a number you might not want to spread around to people. >> right? it's just. >> below 50. >> not not just. >> below, but but getting getting close. >> closer closer closer. >> that is. >> you know, that is i think that's you know. >> you've hit the nadir. >> and i think things start going. >> south from here. digest. >> i mean with a lot of different parts of. not necessarily. >> you know. >> i'm just saying i know how young that is. but you're at a point now where that's a. that's a serious age.

>> for you hitting. and you've also. >> got. >> you've also got. >> to start thinking about some of what we talk. >> about all the. >> time and start getting the more mature viewpoint. >> on some of this stuff. >> this is when it all goes. did i try to the trump administration? >> no. >> the red pilling on the birthday. that's good. >> a little. >> no. >> it's just that. >> you've heard that, you know, when you're young it's all about a bleeding heart. >> and you. >> know, and then you get a little older, a little more cynical, and you see how the world really works. and. right. >> my grandmother made it to 103. so i'm amazing. >> you're not. >> even you're not. >> even halfway. >> and i'm hoping between all the. crazy concoctions. >> and you. >> get up at 330, we do. >> you get up at 330. >> you get up at four. you'll be lucky to. make 75. thank you. the trump administration. no, i'm almost there. >> i'm almost there. >> hopefully. >> let's hope. >> the trump administration. scored a. >> legal victory yesterday. >> yesterday. >> a judge ruled in its favor in a case brought by democratic attorneys general. at issue, the authority. >> of elon. >> musk and the doj's team to access computer systems.

>> at federal. >> agencies and to direct the firing. >> of government workers. the judge said. >> that the states legitimately call into question. >> what appears. >> to be the unchecked authority of an unelected individual, and an entity was not. created by congress, which has. >> no oversight at this point. >> but the. >> judge then. >> ruled that the. states had not shown why they were entitled to a temporary restraining order. trump and musk addressed this topic in an interview. >> a tape. >> with a gentleman. >> named sean. >> is it pronounced hannity? >> is that sean hannity? >> i haven't. >> heard of him that aired last night. >> on a network called fox. >> when these attacks occur. the thing that they're accusing the. >> administration of is. >> what they are guilty of. they're saying that things are being done. >> unconstitutional. >> but what they are. >> doing is unconstitutional. >> they are guilty of the. >> crime of. >> which they. >> accuse us. >> that's always the first thing they do. he's in violation of the constitution. they don't even know what they're talking. >> well.

>> they. >> assert it's just. >> a con job. it's a big con job. >> it was not a. trump appointee either. i can't. >> remember which, but a democrat. >> i can't. >> remember which one, but a little bit interesting. >> it was not a. >> you know. >> you do see, sometimes it. >> seems like depending on whether. >> you're appointed. >> by a republican. >> or democrat. >> sometimes it looks. >> like it might hold. >> some sway. but in this case this was not appointed by trump. this was not a trump. appointed by. >> obama. >> appointed by obama. god told me. in my ear. let's also talk about what's going on with autos, because president trump said that he would likely impose tariffs on automobiles, semiconductors and pharmaceutical imports of about 25%, with an announcement coming as soon as april 2nd. >> it'll be in the neighborhood of 25%. >> conductors and pharmaceuticals. >> it'll be 25% and higher, and it'll go very substantially higher over the course of a year. but we want to give them

time to come in because, as you know, when they come into the united states and they have their plant or factory here, there is no tariff. so we want to give them a little bit of a chance. >> and here's. >> pfizer ceo albert bourla on closing bell overtime. when asked about how the broader tariffs on pharmaceuticals would impact his company. >> when it comes to china is not affecting us as pfizer, we haven't any reliance on china right now, nor canada or mexico. it don't bring no products, not even active substances. europe is a different story. there is significant manufacturing in europe as there is in the us. don't forget, it also has 14 manufacturing plants in the us. so we are waiting to see how that could play out. >> bourla and other pharmaceutical executives are scheduled to have a meeting with president trump this week, so we're going to hear a lot more about that. meantime, a law firm that represents tesla and elon musk has now written proposed legislation that would alter delaware corporate law and could

pave. >> the way for. >> musk to 2018. >> pay package. >> to be reinstated if the law were to go through. the law firm confirmed to cnbc that it had drafted the bill, which was introduced in the delaware general assembly on monday, a spokesperson saying the legislation was not drafted on behalf of any specific client, though the pay package that tesla granted to musk in 2018 was the largest. if you remember, ceo compensation plan in public corporate history with a potential $55.8 billion maximum value. but i would just say it was performance based, meaning the stock had to hit certain metrics that nobody thought it would ever hit. last year, the delaware court of chancery ordered it to be rescinded. the judge said the tesla shareholders were misled by the company's proxy materials before they were asked to vote on that pay package. musk has since moved the site of his incorporation for his businesses out of. >> the. >> state and, by the way, went back to all the shareholders and said, now they know everything. and here's the case. you can read all about it. what do you what do you want to do? and they

still voted for it. so it's a fascinating thing to see what's happening in delaware. and by the way, this may happen with other states too, where they're going to have to decide in terms of the economics, even of the whole state, if corporations start leaving, that is a real problem. so politically, delaware is going to probably have to shift in terms of sort of the way things are set up. it has become a super shareholder friendly place, less management friendly. >> place, which. >> is a very sort of interesting dynamic. >> that's a good dynamic. >> you would think. >> but it was. >> it was famous for being a very efficient court. people liked it. >> management liked. it because. >> and those judges, i mean, for the most part, they're very, very smart. they understand the issues. >> this one was. >> very detailed when. >> it happened. >> it seemed. >> activist to me. and it just looked like. >> what we. >> don't. >> want to. >> see a lot of. >> times from the judiciary. >> thank god there. >> is a. there's it's such. >> a it. >> was a. >> constitution that was just

built to last and it really was. it's like amazing. so many checks and balances and, you know, you finally get to a point where someone decides, i know maybe this. >> isn't the ideal time. >> for, for. >> for some people, for the. >> supreme court. >> but it is an amazing system. >> we'll see whether it can withstand. >> this guy. >> the senate. >> the senate. i mean. >> i know. >> that's what you think. >> the senate confirmed howard lutnick. >> to be. >> the next commerce secretary. president trump has tasked him. >> i'm hopeful. >> yeah, i. >> am hopeful. >> it's a. >> it is. >> built these guys. >> i mean. >> i know they. were they had their faults our forefathers. >> but they were. >> pretty amazing. >> really smart. i'm glad they were around. >> i'm glad we. >> got the right guy. he's going. >> to letnick. >> he's like. >> kind of a protectionist. >> at this point. he's. but there are so many around all of a sudden with leading. >> the administration's. >> tariff and trade agenda. and he's said he will have direct responsibility for the office of the us trade representative. letnick told senators during his

confirmation that he would step down from his role as ceo of cantor fitzgerald and sell all of his business interests. if he is confirmed. >> meantime, pershing square's bill ackman, this is pretty interesting, has now raised his takeover bid for howard hughes holdings. now, he previously had proposed forming a new subsidiary of pershing. if you remember to merge with the company, offering current holders $85 per share, the new proposal would be to acquire a 10 million newly issued howard hughes shares at $90 apiece. now, that would give pershing a 48% stake in the company. transaction would not require regulatory approval or a shareholder vote or financing, so it could be completed in just a few weeks. and ackman has said he wants to turn howard hughes into a diversified holdings company, really like in the style of a berkshire hathaway. and that would sort of form the basis of it. you're looking at that stock still down at 76.99. so unclear.

>> maybe that's. >> the. >> polite way to put it of what shareholders really want to do here. you think it would be much higher if that was the case? toll brothers shares. >> we're desperately seeking economic info. >> there. >> but there. >> might be something specific to toll itself, the company that earnings and revenue were short of where the street was as far as estimates. the company said that this was due primarily to impairments and a delay in the sale of an apartment property. at one of his joint ventures, ceo doug yearley said the company's core home building operations. >> did meet. expectations in the quarter. >> is twitter blowing up? no. >> with happy birthday? not yet. >> what are you are you. blue thread. >> or whatever? what? >> blue balls? what's the name of this other thing? what is it? blue. blue something? what is this other thing? did you make the move? >> oh. >> blue sky, blue sky. >> blue sky. now i am. some cnbc. >> people are making. >> that move. i'm. no i'm. i'm pretty much addicted. you are x

you go i'm addicted. i don't even know what it's called. >> i mean along with my true social account i. >> don't need anything other than. >> than x. >> you you can win that. for that. i do not have a true. >> so i don't have an instagram. if you see me on instagram. pushing nvidia. it's not me. have you seen those? it's like. whack a mole. >> it's like yeah. >> i got one. >> i got. >> it's like whack a mole. there's a new ad i know they got real pictures of me, pictures. >> from my. >> oh. >> they got. >> me selling gold now. >> oh right. >> were you. >> how right. >> were you coming up. we're going to get ready for the trading. >> day ahead. >> stocks futures right now are down. >> a little bit. we hit a. >> new high. >> in the. >> s&p yesterday i think the nasdaq later. former saint louis fed president jim bullard is going to join us with his read on inflation jobs and the economy. squawk box will be right back. >> this cnbc program is sponsored by baird. visit baird. difference.com.

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amazing and is something that we get to use every day. >> the broader markets ended higher in yesterday's trading, with the s&p 500 closing at a record. let's talk some markets with stephanie link. she is chief investment strategist portfolio manager at hightower advisors as well as a cnbc contributor. and we can go. steph we can go 40,000ft. we can go three feet. let's do that with both. we'll start with the

macro economies looking pretty good for you i think at this point. let me ask you, let's say, and there's a non-zero chance that policy as far as the fed goes, could be reversed this year before we get any more cuts depending on inflation. would that change your somewhat bullish outlook on the averages or onward and upward because of earnings, which were better than you thought? >> yeah. >> well i. think we can. >> handle higher interest rates. it's clear right. >> because we are growing about anywhere from 2 to 3%. >> we talk about the. >> atlanta fed tracker show. it's very volatile because it's. >> real time analysis. >> so you're running at about 2.3%. and it's really driven by the consumer. >> and it's because of. >> labor, the labor market. >> initial claims. >> and wages, even retail sales. by the way, last. >> week i know it got a negative. >> headline read, but you're still running at about 4% growth year over year. and inflation,

it's sticky, but it's. >> come down. >> and the. >> consumer can can handle it. and so you add it all up. yeah it. >> is about earnings. and even. if interest. >> rates stay higher you're running at about 15%. earnings growth which is way higher than. >> i expected. >> and it's. >> not just revenue growth it's margins. and i think that's really the surprise so. far for me. so i think. >> we'll have to see how it goes. >> in terms of the. >> economic data points. >> but so far so good. >> and it's also. interesting that we. >> are seeing a pretty big broadening out. if i told. >> you at the beginning of the. >> year that europe. >> would be up 11%. >> and china would be up. >> 16%. >> and the. >> s&p 500. >> up only. >> four. >> and that that would have surprised me. but clearly we. >> are seeing the earnings. >> picture broaden. >> out not only here in the. >> states but also overseas. >> so it moved. >> you pointed out like financials pretty good health care pretty good. >> but but now.

>> you're seeing some some broadening out both geographically and as, as you just mentioned along with sectors, which is what we've all been waiting for i guess. >> yeah. and also value is outperforming. >> growth by about 166 basis points so far. so it's look it's only february. it's a long year. >> there's a lot of. >> data points that we have to deal with. but so far. >> so. >> good. i would much prefer. a broader market than one that's led by just seven stocks. it's just such a much more. healthier environment. it's a stock pickers environment. and you know, i'm really encouraged. >> that not only we're seeing the. >> earnings picture better than expected, but earnings revisions in in sectors like energy, in sectors like banks in media. so it's been kind. >> of fun to. >> see also one of the big stories in the journal today about bearishness with investors. we kind of alluded to it yesterday that a lot of retail investors thought it was too frothy, 47.3% bearishness,

and that is the highest level since november of 2023. and i remember, you know, time goes so quickly. but a couple of those great years, i think 23 and 24, there was bearishness throughout the entire year. every person that we had come on here was there. and i remember that that time in november, it was a pretty bear. i think we had sold off into october, and by november we were very bearish in 20 2023. and it was the market was spring loaded. so this in the past, this level of bearishness, conversely, has been a very good entry point. >> sure. >> i mean. >> it's all about sentiment. >> and when everyone. gets on one. >> side of the. >> boat, you don't want to be there. >> you always want to be on the other side. >> within moderation, of course. so it goes both ways and you just have to point to. >> again, we talked. >> about this now a couple times. >> earnings. >> stocks follow profits on. >> the way up. >> and on the way down. and at

the at this moment in time earnings. >> are going higher. and they're going higher. in sectors that no one thought. would see. >> higher revisions. >> so i think that's very encouraging. >> and there's a lot of stocks by the way joe, that are still down in the past year. >> some of the stocks that i. >> you know that that i would highlight. >> united healthcare. >> down 3% in the past year slb. schlumberger down. >> 12% in the past year. >> even snowflake. >> which is up 24% year to date. >> it's still down 17% in the past year. so i'm trying to find. >> some names out there. >> that have. >> are giving me. >> opportunities where i. >> think the fundamentals. are improving and the valuations. >> are at discount levels. >> i snowflake whenever anyone says that. i laugh because. >> i don't know. >> i call people that on twitter. so it's just it's like not it's not a great. >> great name. >> boeing. airbus has this fancy new jet, the latest of boeing's

problems. it's one of your favorites. >> still still one of my favorites joe. >> it's actually my. favorite name for 2025. >> and it's. really because of the new management team, the changing. >> of the culture. >> changing of the guard, and also the problems at boeing are not a. demand problem they have between boeing. >> and airbus. >> 13,000 planes in their backlog. >> it's not a it's not a demand. >> it's a. >> execution problem. >> and i think those issues are fixable. >> and as they get. more planes, as. >> they produce more. >> planes, and then they deliver. >> more planes. >> that will lead. >> to better free cash flow. and that's what the stock really trades on. it's free. cash flow. >> and so they might be negative free cash. flow this year. but i think maybe. >> there's a chance we can see a surprise to. >> the upside. >> if they can get production going at a faster level but at a safer level of course. >> okay. all right. stephanie link thank you. do you wish

andrew happy birthday yet did you i don't know. >> if. >> we're doing that. >> oh thank you, thank you. >> i've got a lot. >> of my people. are are they sending it to youtube. >> they're sending me they're sending me some very funny. >> my conservative. >> that that include happy birthday with images of elizabeth warren, kamala harris. oh i've got a couple of those. >> my people are saying that they love your viewpoint. they don't agree with it. but you're you're civil and they go mostly civil sometimes, you know, it gets heated sometimes. but i've got a lot of my people just to tell them, telling me to wish you. >> that's very kind of thank, thank you, thank you joseph. >> people. >> coming up on the other side of this, federal reserve vice chair michael barr, speaking out about his decision to step down as head of bank supervision at the fed, but stay on as fed governor in. light of plans potentially. by president trump to remove him from that role.

>> we'll show. >> you that conversation in just a moment. plus, ford motor company cutting some bonuses. and we've got details on that next squawk box returns after this. >> nothing stands still. not technology, not the market and not franklin templeton. we've been a firm in motion for over 75 years, always innovating. today we're a leader in public and private markets, digital assets and custom tax management, empowering advisors with solutions to build the portfolios of the future. today, franklin templeton, your trusted partner for what's ahead. >> most power. >> players on wall street. >> rate nvidia. >> a strong buy today. >> yet why. >> then. are so many legendary. investors quietly. ignoring that advice. >> and instead selling the stock hand over fist? every billionaire. >> on your. >> screen has recently sold nvidia. some have offloaded

millions of shares. and mark. >> my words. >> this is bigger than nvidia. hedge funds are quietly selling. all of their tech stocks at the fastest rate we've seen since 2016. it begs the. >> question, what. >> do. >> they know that you don't? my name is mark chaikin. >> i help build three indices for the nasdaq during my 50 years on. >> wall street. >> that means i know how to recognize these signals from the tech market and exactly what they mean for you and your money. >> i explain. >> everything in my new. market briefing, including the truth. >> of what's going. >> on with nvidia today and the specific stock i recommend you buy. instead, i'll give you its name and ticker when you visit the website below. nvidia has been the most talked about stock in the market, and for. >> good reason. >> it's led the ai revolution that has taken the us stock market by storm since they announced their ai powered computer chip in 2023. nvidia's

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this year in expenses. >> during a speech at the council on foreign relations yesterday, fed vice chair for supervision michael barr, speaking out about the opportunity and risks of artificial intelligence to the financial system and also to the broader economy. in an interview after the speech, i asked him how he thinks about the impact of ai on the labor force. we don't know exactly. you know, how this is all going to turn out. >> we have. seen lots of episodes throughout history of. technological innovation and people. >> being concerned. >> that the new technology was. going to make everything that currently existed obsolete. and what. >> we've. >> seen most of the time in history is that the labor market adjusts. >> but it. >> is a very painful adjustment. so the kinds of things. >> that we. >> need to be focused on are things like universal basic income. income supports earned income tax credit retraining measures, all those things. but

it is likely that this technology is going to be. >> very disruptive. >> and we don't know precisely in what ways. i think it's the right kind of question that. >> we should be addressing. >> now, because, as i said, i mean, my view is that ai is kind of overhyped right now in the short term. i think people are. expecting more from it last year. this year or next year. >> but i. >> think probably underappreciated. >> in the long term. >> in terms of the. >> kinds of. changes. we also talked about the economy and the state of play as it is today. >> made enormous progress on inflation. there's still a lot more we need to do, but the overall path of inflation has been on a, i would say a bumpy but steady and i think sustained path towards 2%. the, you know, the bump up that we saw in january was something that we anticipated based on the seasonal pattern that we've seen

in the past, i expect it will moderate again in february and march. so that's all i think positive. >> now, back in january, right before president trump was inaugurated, michael barr announced that he plans to resign as vice chair of supervision. he said that he's going to leave the position on or before february 28th, but he will stay on as fed governor until his term expires in 2032. and we got into a very personal discussion about. why he. >> made that decision in light of. >> president trump's plans to push him out. >> it was a very, very difficult decision for me to make. and i'd say in some ways, a very painful decision. but what what i did is i just looked. >> at. >> the cold, hard facts. and my judgment was that if i stayed in the role. >> that the. >> fight over. >> this role. >> would become a major

distraction for the federal reserve. it'd be a distraction for the fed to be a distraction for me. it'd be a distraction for the team of people that i lead. that. and that. distraction would have prevented us from doing our job, serving the country. and to me, it wasn't. it just wasn't worth it. so i decided to step down from the vice chair role, continue on as governor, where i'll remain my. my term goes to 2032, which is a long time for me. and, you know, i figured i could best serve the public by staying on in that role and not becoming a distraction. >> an interesting conversation with an interesting man at a time. that's pretty pretty fascinating. >> can do the other job and it won't be a distraction. >> but so the issue in this case was. he runs the supervisory role. trump had made. >> no i. >> know, but a. >> distraction in one position but he doesn't think and he why

didn't he just resign. completely resign both and not be a distraction in either position? >> i don't, because i don't think that trump is going to try to push him out of that role. but it does raise a whole different set of questions about the. this goes back to the whole larger contextual question about the independence of the fed. by the way, will they even replace him? there's question about that. who will they replace him with? he did not know in. that in that position. by the way, this also comes as the trump administration has effectively dismantled the cfpb, which of course, is another sort of supervisory kind of agency or institution. so there's a lot of moving pieces to what's going on in the financial world. we also, by the way, got into a fascinating conversation. jack lew was in the in the audience. had he had signed that op ed in the new york times about payment systems and how the payment systems work. the fed sends the money, but the treasury sends the. sends effectively the instructions to the fed and how that whole process works in the

context of what we've heard from elon musk and doge and all these questions. so if you have a chance to check it out, there's a. >> there's a new segment in the new york post under the. >> new segment, the. >> week's best of the babylon bee. >> and they. >> have one of them. i think you'd like how to tell whether elon musk is the. father of one of your children. signs to look for. >> give me some signs to look for. they have a. >> picture of a little baby with elon's face. i think that's funny. the one i the reason i brought it up, though, and i threw that bone for you. >> thank you. >> but i got this one for myself. >> yeah. >> democrats furious that republicans are trying to control government just because they want the election coming up. kfc is leaving its old kentucky home. details next. and as we head. to break, here's a look at yesterday's s&p 500 winners and losers.

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>> you mean.

>> a smart? >> find an advisor@smartasset.com mike pompeo. >> good morning, and welcome back to squawk box live from the nasdaq market site in times square. we are seeing some some red today after another decent session yesterday that saw some new highs in the s&p. at least the s&p and the nasdaq. meanwhile kentucky fried chicken kfc. >> is moving. >> is leaving kentucky. >> can you believe that? >> does it matter? not really. i guess it's branded. >> texas, right? >> right, right. the fried chicken chain's u.s. headquarters are going to move from louisville, kentucky, to plano, texas. about 100 u.s. employees will be required to relocate over the next six months as part of owner yum! brands larger plan to have two corporate headquarters, one in plano and the other in irvine, california. kfc still plans to maintain corporate offices,

though, in louisville, and will build a new flagship restaurant in its former hometown. separately, yum is also asking its remote workforce about 90 workers to move to the campus wherever their work happens to be based, but to come back in. >> meantime, citigroup ceo jane fraser got a raise last year. total compensation for 2024. was $34.5 million, up about a third from the prior year. the majority of her pay, in the form of stock linked awards 11.6 million in deferred stock, 16.5 million in performance share units. in a regulatory filing, the board's compensation committee saying in part it believes that miss fraser's strategic and other priorities are sound and that she's executing on them promptly and thoughtfully. >> and the stock. >> has been on the move recently. obviously, if you go back longer, it's been a tough slog. but it's $8. >> stock even though it's 80. but because of the reverse split, but it's up from like 50,

40 or 50. and it's like was like turning around. you know, whenever we have anyone on to talk about it, it's like there were a lot of issues that she that she's had to deal. >> with and like trying to fix. >> so and that's why the number came in at what seems like an exorbitant number. but a lot of it probably has to do with with the stock appreciation in the stock. >> meantime. >> when we come. >> back a lot. >> more on squawk. we're going to talk about the creation of an iconic tv show. in this case, we're not talking about squawk box saturday. night live. the author of lorn joins us next. and reminder you get the best of squawk box in our daily podcast. follow squawk pod on your follow squawk pod on your favorite podcast app and listen actors. we can make you believe we know what we're doing. when, in fact, we do not. whoops. i have no idea what these buttons do. i've never driven a stick in my life. but my hardest role yet? small business owner. because i have no idea what i'm doing. but godaddy airo does, using ai to build a logo,

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>> it's alive. >> welcome back to squawk box. lorne michaels, the legendary creator of saturday night live, has shaped television comedy for 50 years, becoming a key figure in entertainment, known for spotting lots of great talent. our next guest interviewed michaels, his friends, and so many of the stars and writers of snl over the years. susan morrison is here. she's the author of lorne the man who invented saturday night live, and we were. just discussing the special that took place on sunday night. you've been working on this project for a decade. >> that's right, i have. >> i started in 2015. >> persuaded lorne to. >> get on board. >> the next year. and i interviewed him about 50 times in his office. and everybody in. >> his big world. >> and then i had to sit down and do the hard part of writing it. >> but okay. >> so here's my. question to you, which is in the context of business people, we all talk about him as a great producer and all of that. >> but i. >> think that he is one of the great talent, either talent spotters or talent molders or

talent, something he seems to have a sort of very good hand when it comes to. >> finding the right people. >> yes. >> what is that about? >> did he find the right people to find the right people, or was he was he at every whenever a groundling or a second city person came in and did not audition, was was lorne there to decide or did he have always. >> he's always. >> had talent. >> he's always. >> the. >> final decider. >> he has. >> wranglers who bring. >> in people. they kind. >> of pre pick, but he's. >> always the final decider in the same way. he's the final decider saturday. >> night with. >> what's in and out of the show. that said he's he's he's great at picking the people and he's great at delegating. it's i think that's the key to why he's been able to do it for 50 years. >> he's so fearless. yeah. >> not worried about what his bosses want to do. cool under pressure right. he's a great he's a loyal, great guy too. >> well. another thing. >> about live television that plays to his strengths, one of. >> his longest term. >> employees, jim downey, who was. >> the head writer for 30 years, puts it. >> this way. he says, lauren is

a guy. >> who's not so great. >> at. >> term papers. >> but great at tests. >> in other. >> words. >> you know. >> his superpower is the deadline. >> is the deadline. >> because they're going on 1130. the thing can be. >> in tatters. >> at 1030. and that's the moment. he gets up there after dress rehearsal and talks to his staff and goes, cut this, change that, move this all around. >> i want to. >> know, though, about. >> how you think he's and i don't know if you think that's purposeful. >> the. >> culture he developed. but when you listen to and i was crying like a baby when adam sandler was singing that song. no. >> just, you know, you're the only person in the world that was crying. >> i was crying like. >> i was. >> crying like a baby. >> because. no, because it spoke to me about the culture that this man had created. and for everybody who was sitting in that audience, who really were the people who used to be on the stage, they felt it. you could see. you could see how they felt every word of what adam was talking about when he said, you know, they wake up on sunday afternoon and be depressed. and there was a but all of the sort of aspects of it, they all had this shared collective thing.

and i think that's something that he must have created for them. well, i. >> think that. >> the. >> biggest, the biggest contribution. besides determining what. generations of americans find funny, which is pretty. >> huge. >> is that he's built a. >> culture with. >> walls around it. you know, he's he's got generations of talent who are very loyal to him, as if he's a godfather, you know, and. they and they are. but what's. >> that about? how did he do that? >> well. >> if. >> you think about it, he took these people when they were very young, like, let's say you're 22 years old, you're from oklahoma. you know nothing. this guy is giving you a pretty good salary. he's opening the world. to you. he's suddenly giving you, you know, silk pajamas and telling you where to eat in new york city and how to buy an apartment, and also giving you kind of the keys to the comedy kingdom. he's he's a man with a lot of axioms. i mean, there were times when i thought i could rewrite this book as, like a harvard business school management guide. he has, you know, like 15 points of how to do this and how to do that. >> and what would be the top three? >> well. >> in terms of comedy, i'd say

one is do it in sunshine, which means that you always have to remember that comedy is an entertainment. people watch tv like they're huddled around a fire. they want to be kind of lifted up. lifestyle. one maybe. is buy a more expensive apartment than you think you can afford, because then at the end of the day, you'll come home and you'll say. >> who lives here? i live. >> here, you. >> know, he was kind of decades ahead of everybody else in terms of life work balance. you know. >> if. >> you if sounds like there's no balance, if you. >> took every major. talent discovered on saturday night live and removed it from the landscape of the last 50 years, that's when you realize what lorne michaels accomplished. and i don't i don't have time to mention all of i mean, eddie murphy, bill, bill murray, the biggest mike myers was austin powers. and who was the other guy? >> wayne's world. >> wayne's world, of course. >> dana carvey. just go on and on. current stars, will ferrell, wherever you want to go there.

it's there must be 30 or 40 of them. and that's not including people from that. i remember, like jane curtin, who went on to amazing and i forget some of them. >> but that's what i'm that's what i'm trying to get at. chris. chris farley. >> so it feels. >> like, you know, when we look at it, the hit rate is so high. however, interestingly, two things are going on. so this is what i'm very curious about. just first of all, it became a at some point, belushi. it became a magnet for talent, meaning there wasn't a million places for everybody to go. that's it. so that's that's one thing. >> that i. >> think. >> about a little bit. not and this is not to discredit what he's done, but at some. point he created such a great mousetrap. yeah. that all of a sudden you get a look first look at all of the best talent. and then the other question is how. you know, there's probably, i imagine, a lot of folks that we don't talk about anymore. >> yeah, probably. >> fewer than you think. but there are. definitely people. >> who. >> just come. they do a one year. >> tour of.

>> duty and then they're out. some of them recover, some of them live their. >> whole lives. >> feeling like. >> second or third or fourth tier. the guy who plays barry, i can't even remember his name. >> bill hader. >> oh. he's not he's he's not here. he's first. >> he is okay. >> will ford. >> will forte who was in nebraska. >> tell us about. >> tell us about lauren's business empire itself, which is to. >> say. >> we keep talking about saturday night live. but really, broadway video and all of the tentacles that that touches. i can't tell you how many films i've seen where where he is an executive producer or he touches it in some other way. >> after the first. >> five years. >> he left the show and thinking that he thought he was going to become a movie director, and it was his michael nichols period. and then right around that time, his friend buck henry said, so, lorne, what was your takeaway? what was your cut? what'd you get out of this five years? and he said nothing like he had negotiated no ownership, like no anything. no. and he kind of thought, gee whiz, you know, so when he came back to the show five years later, he, he was just a lot smarter as a businessman. and he had various

advisors and lawyers along the way that in the in the last 40 years, there were a whole series of renegotiations of him clawing, you know, clawing back different kinds of distribution rights and foreign sales rights and things. and that would change every few years depending on the health of the show. and so that in the end, he was owning a big chunk of it. and ten years ago, during the 40th anniversary, comcast approached him, bought back a big chunk of it and left him with a big chunk of change. so he's a very rich man. >> he was. >> in in office guy too, in his suit. >> always. >> yeah. >> he was not doing any. >> remote work. >> on a zoom. >> right during the during. >> covid, when they produced the. show remotely, he was locked down in. >> saint barts. >> and his team did most of everything from new york. he did not he didn't want to become a zoom guy, so he just did all conference calls. >> susan, congratulations. >> the book. >> is called lauren. it is absolutely worth reading. and we also want to congratulate lorne michaels himself. >> half the hollywood box. >> office receipts. if you took

away the. >> people that. >> in the last 50 years and 50 years, how many generations is that that with me, it's belushi and murray, and that's what i. yeah, i know some of the you know me through dana carvey, but know me through dana carvey, but but today i don't know any o [ car engine revving ] >> and.

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details. physicians mutual. physicians mutual. >> welcome back to squawk box. hp is going to acquire assets from humane. that's the maker of a wearable ai pin. you may remember we had them on the broadcast years ago. maybe not even years ago, maybe a year and a half ago. the price tag $116 million. now, that deal includes the majority of the company's employees, its software platform and intellectual property. it will not include humane ai pin device business, which will be

wound down. now, the pin was launched by two former apple engineers in 2024. they're going to form a new division at hp to help integrate ai into hp devices. the pin, a wearable device. there you can see them. they were on the broadcast then, intending to allow users to access ai models, calls and texts via voice or gesture. it was received quite negatively at the time. negative reviews, reports of glitches and quality issues that led to a risk of fire. company had already stopped selling the device, and existing users will be disconnected from the company's servers at the end of the month. a few months ago, humane pivoted from its focus on a hardware, if you will, to the ai operating system for multiple devices called cosmos. hp could eventually use that technology. we'll see to help power future devices. this is an interesting effort. a lot of money went into that didn't work, but. >> it was cool. >> i thought they were showing

us. i said, oh, i got to sit up straight. i got to. >> sit up straight. >> and they were showing a clip. >> of tape of when we had them on the broadcast. it was a very big deal when that when that first came out, the valley was fascinated by this idea that was going to wear a pin. and obviously nobody's wearing a pin. >> no. >> coming up on the other side of this, we'll take a closer look at the home building world and stocks their potential impact on tariffs as well. squawk box returns after this. >> overtime is about understanding what just happened in the markets that day and preparing for tomorrow. i'm looking to talk to all investors, sophisticated investors, beginning investors. i'm always learning. >> closing bell over time for eastern. cnbc. >> for the. >> fourth consecutive year. interactive brokers is one of the fastest growing. >> prime. brokers and is now number. >> five in preqin's ranking of top prime brokers. interactive brokers serves. both organizations and individual investors to get better results,

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>> and. >> shopping online comes with digital threats. so turn on nordvpn and encrypt your online traffic. get 72% off nordvpn and up to one year for free. >> squawk box is sponsored by wisdomtree. welcome to the future of investing. >> sentiment among the nation's single family home builders dropped to the lowest level in five months this month in

february, largely due to concerns over tariffs, which could raise their costs. joining us now with his picks in the housing sector, john lovallo, ubs home builders and building products analysts. do you spend a lot of time worrying about tariffs john? is that front and center for you? >> yeah, it's. >> certainly and thanks for having me. >> a. >> topic du jour. i would tell you though, you know, our. >> view at. >> least is that across the housing complex, tariffs are going to. >> be. >> pretty manageable. if you think about it, the national association of home builders estimates that about 7% of the materials and equipment used in single family construction are imported. i think. >> from a home. >> builder standpoint. >> the. >> biggest kind of exposure, if you will, would be to canadian lumber. >> so softwood. >> lumber and structural panels, about 25% of that is imported from canada. importantly though, the u.s. lumber coalition estimates that about 95% of that could actually be handled domestically. so i do think that

there are some mitigation efforts that can. >> be. >> put into place. >> some resourcing. >> opportunities that can be put into place. and keep in mind that canadian lumber is pretty heavily tariffed at this point, at 14.5%. so the actual cost differential may not be quite as as bad as people fear. >> can you just. >> take a. an overall view of, of the housing market and there's a shortage? it seems like you could sell as many as you've built. why hasn't the industry satisfied what looks like amazing or very strong demand for single family homes? why haven't they stepped up? what? where is the in the supply of new homes? what's been the problem? >> it's a good question, joe. i mean, look, i think that the home building industry is a tale of two markets, right? there's the new. construction market, which has done very well. there's the existing home market, which has been on its on its heels because of higher rates and sort of the lock in effect. i think to your question

specifically, the main pinch point has been at the municipal level, the ability to get land entitled, zoned and ready to actually start the horizontal construction or the land development. that's been the biggest bottleneck. also, keep in mind that labor is tight, right? we're looking at an industry that is probably 3 to 400,000 folks short of where it needs to be. on top of that, about 30% are immigrants. the percentage of illegal immigrants is not entirely clear, but it's something that we need to keep an eye on as well. so labor land have really been the biggest pinch points of the builders being able to satisfy. to your point, that lack of supply. >> well, that sounds like a permitting problem. i mean, there's plenty of land. why can't you build on it and buy it and build on it? what is zoning? what is it? the local municipality. what they want their. they want their cut or something. >> well, so there's plenty of

land, but there's not plenty of finished lots that are ready to build upon. and there's a little bit of nimbyism, right. people don't want building in their backyard. but also keep in mind that, you know, post gfc, a lot of these municipal, you know, the framework was actually dismantled and never fully kind of put back into place. so this is just an understaffed industry. on top of that, think about it. we're building homes today exactly the way we did 100 years ago. we have folks out on the, you know, on the site swinging hammers and nails. this is an industry that has resisted technology for forever, and probably has seen the worst productivity of just about any industry in the nation. so we need to see technology infused into the into the business. there's been efforts to do it, but it's been, you know, resisted upon because of the fixed costs associated with it. >> okay. >> you have. >> two. >> things in the housing you like meritage and then building products, owens corning and

you've got some pretty nice price level or price targets for both. the. why? meritage. why? what sets that apart? >> yeah. so meritage. >> homes $118. >> price target. that's about 60% upside. so nice. nice return there if we're correct. fastest growing among the fastest growing builders in our coverage. go to market with among the lowest average selling price, which is incredibly important in an affordability constrained market. also real ability to improve the return on equity. as they become more asset light, they also, as they instill this new policy of a 60 day guarantee, which is designed to deliver homes more quickly to compete with the existing home market stocks trading at a very punitive multiple under seven times earnings in just about a book value. so we think there's a real opportunity here for some pretty nice returns. >> and then owens corning. you like that too. >> yeah. >> owens corning go ahead. >> did you mention it? >> oh you did. i was looking at

it. i'm getting so many. >> happy birthdays to andrew. >> that i got distracted. >> this this i didn't know was going to was going to come. i mean. that is. wow. can you see that? >> i mean, jt, that is a happy birthday that i didn't see, that i. >> didn't see coming. major. >> happy birthday, mr. president. thank you. >> major. >> for the birthday wishes. >> john. thank you. >> give you. 7 a.m. >> 7 a.m. it's 7 a.m. on the east coast. that that made your day. >> that made your day? >> yes. >> appreciate it very, very much. you are watching squawk box right here on cnbc. i'm andrew ross sorkin along with joe kernen. becky is off today. meantime japan weighing retaliatory action now against the us following president trump's latest tariff threat, calling for 25% duties on auto imports into the us. now, japan says it is carefully examining the details of trump's comments, and they say they will respond appropriately. autos make up the largest component of japan's

exports, with the us being the number one market. meantime, the senate confirming howard lutnick as the next commerce secretary with a 51 to 45 vote, president trump has tasked with leading his tariff and trade agenda. >> a single democrat 51. right now, that's not a single democrat. must be letnik. >> yeah. >> i guess. >> because of the tariffs or. protection probably, yeah. >> bill ackman raising his takeover bid for howard hughes, promising to turn the company into a modern day berkshire hathaway. ackman saying his firm pershing square offering to buy. 10 million new howard hughes shares for $90 each, up from the previous bid of 85. if the deal goes through, pershing square will own about 48% of the real estate developer. the stock, though still at 7750. take a look at futures. dow off about 77 points right about now. you're looking at the s&p 500 off about five points. but what a what a day it was yesterday. and then the nasdaq looking to open higher close to ten points higher. want to get straight over to frank holland at hq with

a look at this morning's pre-market movers. frank. >> hey good morning andrew. we'll start with an earnings mover. take a look at toll brothers. you see shares are down more than 5% after missing on the top and the bottom line. average delivery price of a home also fell more than 1%. however, the company did reiterate its guidance of 11,200 to 11,600 homes delivered this year. tariffs also weighing on the entire sector. shares of toll brothers down more than 5%. another earnings mover for you bumble. those shares just tumbling right now after top and bottom line beats. but user numbers those fell well below expectations. you can see shares are down more than 17%. so net additions those fell by 77,000. the estimate was a net gain of 117,000. the company also revamping in an effort to face its competition and attract more gen zers. among the changes women they no longer have to make the first move. an eye is now being used to help make better matches. also, founder whitney wolfe herd will return as ceo next month. again, shares of bumble falling more than 17%. and we have an upgrade this morning. capital one shares are moving higher in an upgrade from

b of a, you can see capital one shares moving 1.5% higher. analysts also moving their rating from neutral to buy. price target being raised from 207 up to 2.35. just about a 14% upside from where the stock is trading right now. the analysts also see more upside from the pending discover financial acquisition. they say it should provide meaningful synergies long term and also long term benefit overall for the business. that $35 billion deal expected to close later this year. for much more on that another top analyst calls the day head over to cnbc.com, where subscribers can get more access to details and analysis of today's big calls and its big stories. back over to you. >> frank, want to thank you. >> appreciate fetterman to get out of committee voted for letnick. but then i did not. >> did not ultimately. >> vote for. >> a party line vote. democrats during the hearings had problems with some of his financial conflicts, maybe some crypto stuff. >> he's involved in. >> a lot of different stuff, and

his supposedly evasive answers about whether when trump told him to do something, whether he would be able to say no to president trump, whether he would be able to say. >> no. >> and, and then the tariffs and the other stuff. >> fetterman's been in a sort of interesting place. he wants to be bipartisan. he sort of went, i thought almost and then got to trump too much criticism. and then i've been getting i don't know how i'm on i'm on. >> you know. >> you get all those emails from all these politicians who are like trying to. obviously don't give money to anybody. but i get the emails asking for money constantly. and somebody got one recently where he was super progressive in the email. right. so that was very interesting. that's a good law for you. >> what's that? >> you're not allowed to give money to any politician. >> it's a very good. >> law. >> i love. >> that it's a good rule because you don't have to. >> you can. do what you. >> you can do what you want to do innately, but not feel bad about it because you're not right. i mean, the inclination is to not i don't want to give money anyway. >> oh. >> it's you know, if anybody

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>> welcome back to squawk box. this morning markets are going to be dissecting the minutes from january's fed policy meeting today. and for some clues on how long the central bank plans to keep rates unchanged we want to talk about that i want to bring in lauren goodman, economist and chief market strategist at new york life investments. are you of the view that we have a massive inflation problem still, or do you think this is actually under control? >> i believe that it's under control. yeah, i do think inflation is sticky. and that's not only because of the sort of underlying. impulse of inflation that we've seen rear its head over the last couple of months, but also because we haven't seen any pricing yet of risks related to tariffs, etc. now tariffs and their impact on inflation are going to depend on what the tariffs are. >> but from. >> my perspective they really illustrate just a stop on what's a much longer policy train towards de-globalization. and that is an inflationary impulse. >> you know we keep talking about when the tariffs come what they're going to be. but there's an argument to be made and maybe it's just a small piece

anecdotally of the story, which is today, you know, the ceo of ford was on the air last week saying we are already meaning ford is already trying to bring as many parts, as many supplies from mexico, back and forth, back and forth between the border of us and mexico right now at a cost to the company. and i wonder, i wonder how pervasive you think that is. meaning just the prospect of tariffs, if it's inflationary, meaning we're going to see in the numbers over the next, i don't know, a couple of months, irrespective of what the tariffs actually turn into, that there is some inflationary effect just to the prospect of it. >> i think it's a really important point, and there's a couple of ways that i'm seeing it play out. you mentioned business anecdotal evidence, but we also saw consumer inflation expectations jump by an entire percentage point in january. there's no tariffs yet. but that's consumers gearing themselves up for the potential inflationary impact. perhaps more to the point though, these tariffs they're one policy

change after many years. >> of. >> policy changes that are capital intensive. i mean, we're talking about supply chains and where companies might get their their goods and even services. but there's also changes related to. digital and energy infrastructure that cost money. there's changes. related to electrification that cost money. and these are capital intensive. and so i. think that business decision, that capital intensive decision is already happening. we're already seeing it in the data. >> do you think that this is all going to get passed on to consumers? and whether or do you think it just hits the business in terms of prices? the reason i ask is, you know, if you talk to folks in the automobile industry, you go back to ford. i think people are sort of priced out on cars. and so i don't know if you can actually pass these costs on. and i don't think ford is planning to. frankly. >> it's always a negotiation. but what we're seeing is a real bifurcation in the consumer, where lower income consumers are tapped out and have been tapped out. and so when it comes to consumer staples, even the lower

income end of consumer discretionary, there's very little room to maneuver. that extra money is going towards the 15% increase in egg prices last month. upper income consumers still have some wiggle room. and that's because they've seen such a benefit from the wealth effect and equity prices making money off their cash over the last couple of years. and so, interestingly, i think that one of the biggest. risks to the real economy is actually just a 1,520% drawdown in the equity. market because it upsets that balance of how the consumer can spend. >> and is that your base case for this year? no. >> i it's not my base case. >> but i think. >> there are many paths to having a drawdown in the equity market. >> and it's. >> a. risk that i think that we of course, think about the economy as a leading indicator of what the markets do. there's the markets are effectively paralyzed at the moment by policy uncertainty. and so news in one direction or the other. i think we should expect that volatility. >> you saw that article in the wall street journal over the weekend talking just about how pessimistic the retail investor

is right now. does that make sense to you? do you say that's great. that's like the psychologically that's like a wall of worry that they will just climb. or do you say that that's actually an indicator of a more genuine problem? >> it's not an indicator of a genuine problem. unless, you know, you're someone like me who speaks to investors day in and day out, and you have to try and help keep people focused. but it makes sense. >> to. >> be pessimistic, not necessarily because of the environment that we're in, but because equity markets have done a lot of work in the last couple of years. when you're sitting at valuations the way they are right now, it's hard to see where do you get your additional 30% upside? what i would say to those investors, again, is that we're seeing a real change in the global economy. and so valuations being where they are, gives us a great opportunity to rebalance towards some of the themes. i mean, we've been talking about inflation resilience as an example. supply chain globalization. there's a lot of opportunity to sort of rethink that investment mix. >> lauren, thank you for coming in this morning. >> thanks for having me. it. >> all right. >> coming up. >> jacob jacobs solutions is behind the critical

infrastructure needed for the ai race. and in the life sciences sector, namely keeping up with demand for glp one, the company just laid out a strategy for growth. we'll talk to the ceo next. and it's time now for today's aflac trivia question. we're going to do today's not tomorrow's or yesterday's okay. the battle creek toasted corn flake company was founded on this date in 1906. but who was this date in 1906. but who was the founder? the answer when prime, it's me. i mean, you. wake up, come on man! you gotta tell employers to take another look at all the benefits they're offering. everybody wants to build the best team 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

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i've got another one. wealthy become ultra wealthy. robert frank's high net worth perspective. join the list at cnbc.com. inside wealth. >> and now to the answer to today's aflac trivia question. the battle creek toasted corn flake company was founded on this date in 1906. who was the founder? the answer will keith kellogg. >> did you know that? >> i thought it was tony the tiger. myself. that would have been my guess. >> i missed tony the tiger. >> do people. >> eat that stuff? oh, yeah. are you big tony the tiger? to this day, if. >> i let myself go, it would be. yeah, honey nut cheerios, froot loops, lucky charms. you can

see. i can just rattle off my. >> you won't be able to eat lucky charms anymore, rfk jr. is not going to allow all the different colored things that are in that. anything in. >> moderation. you know, mr. cherry coke is 95 or 94 and worth $300 billion. >> tell that to the head of our new health and human services. >> no. >> no no, no. >> he's like. >> it's like mainlining nicotine patches. i mean, he's got his own. he's got his own issues. it's do what i say, not what i do, i think. did you see that? wasn't that a nicotine? >> yeah. >> i've seen it all, but i he's going to take out. what is it? >> seed oils. >> it's not just seed oils. >> you know. >> i'm not i'm not negative. it could be good to know who's in charge. you mean. >> the guy who just wished. >> you a happy. birthday is in charge, and he likes mcdonald's? exactly. who doesn't. >> demand for speaking of demand for gop ones could be a boon to firms building life sciences facilities. one such firm is

jacobs solutions, which estimates that gop ones will drive a get this $120 billion serviceable addressable market within the next four years. joining us now is the ceo of jacobs solutions, bob fregata. that's a nice estimate. not getting ahead of yourself at all. you don't think at this point, bob, i guess we've got even though we think of it as relatively recent, there is a pretty long history for the mode of how these gop ones work, and they do work. >> yeah. >> and joe, so there you're absolutely correct. these types of facilities by the way. good morning. >> and for. >> the record i also am a lucky. >> charms fan as well. >> i've been. >> eating it. my entire life. these facilities are pretty complicated, joe. >> we've been in this space. >> for over 70 years. in fact, doctor jacobs, before he founded. >> the company in. >> the 40s, was. >> a. >> former merck employee. >> so these. >> these facilities. >> are really.

>> tied to. >> the. >> molecule and everything. >> that needs to. >> go into. >> a clean manufacturing environment. that has ingestible drugs. >> and so as. >> these things. >> go. into biologics. >> and everything we're learning from the mrna. >> type of. of products. that's. >> been. >> driving the need for our. >> services in engineering. >> and designing these very complex facilities. >> i'm just trying to think of what what goes into such a facility. could you describe what. and i mean, glp one is different than the than manufacturing mrna vaccines. i would imagine. and so you do across the board life sciences. >> we do. >> manufacture across. >> the board. >> vaccines, drug therapies the full the full deal. >> so what goes. >> into these is that it's a pretty complex process where you know, you're heating your you're you're transferring molecules. you're you're using different media in order to, to generate

the, the therapy. and, and so. >> each molecule or. >> each drug requires a. >> unique process and a unique. >> structure of. >> the facility. >> so think new. >> new. >> therapy, new facility. and today in the. >> life sciences. >> world, we're seeing. more happen than than ever. >> has before. >> their uv. >> lights everywhere. or vacuums. >> or or vacuums. >> there's uv lights. >> yeah. there's it is a it's a. >> process that's deeply. rooted into. >> it's a batch process. so you're you're producing quite a bit of material and then. >> you're taking. >> the slim piece. >> that can then be transferred into a. drug substance. >> and then it. >> goes into a delivery module. >> some of the film that you have there is an injectable, but also there's tableting. form an, and other. >> different types. of drug delivery. >> so it's a it's a supply. chain that, that that's pretty

complicated. >> yes. and expensive. >> and expensive. >> any. is it all domestic. can it be domestic, bob. or are you have tariff concerns. are you importing materials from around the world to do this type of stuff? >> our clients. >> are our clients are. you know, joe, during the pandemic. >> really driven by. >> the lockdown of transportation logistics. >> around the world. >> prior to. >> the pandemic, the supply chain for. >> how these how these. >> materials were, were, were synthesized. >> together in a certain. >> location was pretty. >> distributed from the east to the west. during the pandemic. that really started to move. move west. >> big clients started. >> to. >> consolidate their. >> supply chains. so that's. >> already been in process. >> you know. >> a lot of these facilities, too, are centered around big r&d hubs, really centered around

academic institutions. >> so you see a. >> majority of these complex biologics. >> facilities in europe and in the us. >> bob, can you if i want. a totally complex, large protein or enzyme, can you make that for me? can you design a you can design a facility to, to make one of the most complex molecules. some of them are incredibly complex. or would you do it through the you you you build facilities that have bacteria making the products for you or cloning the products for you. >> bacteria, the actual cells from. >> look at in college oncology. >> we're actually. >> we're actually replicating. so we designed the facilities. >> and the. >> and. >> our clients manufacture. >> the product. >> but yeah these. >> are these are some pretty high containment type of areas where safety and. >> security of the product. is

really, really important. hence the, you know, the deep domain knowledge. >> around the molecule is. >> really, really important. and then the bricks and sticks the facility. >> kind of moves around. >> what what the process is, is developing. >> it's amazing. it takes must take years to build some of these facilities. >> you know, it. >> it does. and then to validate the facility, both, you know, fda as well as. ema in europe. >> but what these. >> these these therapies because they have a shelf life with regards to the. patent life. >> we've really centered our expertise. >> around speed, speed to market. and hitting that envelope of where our clients are trying to optimize, first. >> of all, the need, you know, these are these. >> are some life. >> saving therapies that the need. >> is very, very high. and so we've we've kind of taken. >> that 4 to 5 year type of. >> timeline down to a couple. >> and really focused our efforts on the entire life cycle. >> of, of delivering.

>> that asset to. >> the market. >> who else is in this business? >> not too many. >> there's not from a publicly. >> traded company. >> standpoint, joe. it's. pretty much just us. there's some. >> private players. >> that are that are that are in. regionally based. but it's a, it's. >> a, it's a, it's a space where we. didn't depart and we stayed in it for the better. >> part of 70 years. >> you work with the government, i can imagine to you're going to be it all funding going to be cut off. >> we're we're not going. >> to get cut off. you know, i think earlier on the show, joe, you talked about kind of the. >> political narrative. >> i think lauren actually. >> mentioned it as well. >> there's a lot of reactionary things that are. >> happening right now. but. >> you. >> know. these are these are. >> needs of the world. we're also in the water. >> space, the transportation space. >> and so. >> infrastructure and. >> advanced facilities. >> you know, these are. >> generational macro tailwinds that we're seeing. and yes, could there be some. >> some tariff and some rebalancing of. >> how. >> the world works? sure. but as far as the actual need, you know, we've seen we've seen that

grow over the years. so we're. we're pretty confident that we'll continue delivering, whether it be world saving therapies. >> or ai data. centers or. >> you know, the ubiquitous world of everything that's going on in critical infrastructure. >> very good. >> very interesting to have you on today, bob regatta. am i saying that right? >> you are. >> you are bob regatta. >> yes, yes. >> fantastic. >> jacobs. we'll see you later. thanks. >> all right. >> take care. take care. joe. >> thank you. >> coming up, new york city comptroller brad lander is going to join us. he was in a meeting yesterday with governor hochul to discuss the problems facing the big apple. and later, broadcom's play for intel's chip design. and taiwan semi is focused on intel's factories. with a breakup of the iconic american chip maker could ultimately look like. we'll break it all down. you don't want to miss it coming right back.

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now down just 80 points pre-market. s&p almost flat. down five. nasdaq is actually in the green now. gold's been trading at a series of all time highs today 2952. just under 3000. and bitcoin has kind of gotten your wish lately andrew. it's been stuck right at like 9596. so you could have used it as a currency for like the past couple of weeks. or you can see on the chart that it's been i don't know whether that that continues or not. there may come a time where the volatility, you know, becomes much less than we've seen in the past. i mean, on any given year, you know, you have 50 and 60 and 70% moves in bitcoin. what if it stays there.

i don't know. >> then what. >> then it could. be actually become used. >> at that number. for certain. >> yeah. used it that number. >> so but then that's a question. is it better for it to be used or is that number a risk. >> better. >> speculative. >> right. >> that's worth $1 million. >> because the question. >> right. >> meantime nikola, the much hyped hydrogen truck maker that was briefly valued at more than ford, has now filed for chapter 11 bankruptcy, that company market cap have fallen to about $64 million. the company is listing its assets in a range of 500 million to $1 billion in liabilities, between 1 billion and $10 billion. now, nikola went public back in 2020 before it had sold a single truck. its founder was convicted of securities fraud in 2022 for misleading investors about its zero emissions technology. he was sentenced to four years in prison and is now appealing that conviction. when we come back, new york city comptroller brad lander is going to be with us. we're going to talk about the

state of the big apple, his run for mayor and governor hochul's message to new york city officials. it is going to be quite the conversation. you do not want to miss what's going on in new york. plus, later in the show. former saint louis fed president jim bullard is going to join us to talk about president trump's economic agenda and threats of tariffs and what it's going to mean for and what it's going to mean for the [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] ♪ in any business, you ride the line between numbers and people. what's right for the business and what's best for everyone who depends on it. solving today's challenges while creating future opportunities. it takes balance.

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off believe in yourself, that gives you the power to chase your dreams. i hope to always be a clear, accurate, and investable voice for all of our viewers. you learn a lot here at cnbc. it's also a lot of fun. >> welcome back to squawk box. we're going to talk about a hostage situation this morning. the hostage being the mayor of new york city. new york governor kathy hochul meeting with new york city officials on tuesday to discuss a path forward for the city leadership, which could potentially include removal of mayor eric adams. joining us right now, one attendee of that meeting, new york city comptroller brad lander, who's also running for mayor against adams this year. i called adams a hostage. he is a hostage. that's what it is. let's call it what it is. >> it's been done again and again and again. >> by the. >> justice department often defers prosecution, prosecution in exchange for help with administration policies. do you

like controller or controller? i like controller. >> i like. >> controller. >> but my kids say, dad, you. >> control way too much already. >> you do? and you're a control freak. but see, i like controller. i don't know why it's pronounced controller. >> job is. >> to get things. >> under control. >> it's an mp. how is mp turned into an n? >> it's a. >> like the british. it's a british word. >> that they, like. did fake french on. >> all right. he went to get back. >> hostage negotiation. my hostage situation, which is? look, you had that article where you want to break out the article from the journal. yeah. this is a very interesting. >> i also want to do the post. >> okay. this is a very interesting situation. >> both rupert murdoch entities. brad's favorite. >> okay. but this is a very interesting situation because we have a situation where the justice department has effectively decided to not prosecute the mayor for political purposes. to hopefully get his help with this immigration issue. >> hold that. >> prosecution over. >> his head. that's why i called it a hostage. situation on fox.

>> that's what it is. now, joe, you think that that's an okay way to do it? no. >> i don't i think it's. it smells bad. but at the same time, i'm backing mayor adams and i'm going to read you from andy mccarthy, who also thinks it's andrew mccarthy, that it's a bad thing, but says, i'm not talking about whether his honor will politically survive the revolt of his fellow democrats, who were content for new york city to be governed by a mayor under corruption charges as long as he was defending lawless sanctuary policies. but suddenly alarmed with corruption to the point of ejecting him because he's cooperating with trump. >> let's be clear what. >> happened on monday. >> is that four. >> deputy mayors that the mayor himself. >> hired to. >> run the city, people. >> that supervised. >> all tedious anti all anti-trump because they. >> know. >> but. >> they're all city. they all hate trump. >> they run. >> the sanitation. >> department. >> they run.

>> the fire department. >> they all hate trump. these are. >> people i don't know if you know. >> the four of them. >> they are not about politics. >> they are about delivering services to new yorkers and running the city. there's a snowstorm tomorrow. that's their job. they're responding. >> by the way, for new york city leaders right in this moment, how screwed up is the city? >> i mean this. >> in terms of just to be able to operate the city right now. i mean, it's unprecedented. >> you've never had a leadership vacuum like four. >> deputy mayors. >> and these. >> are the ones that. >> really supervise. >> all the. >> critical day to day agencies. >> that serve new york. >> do you think that. >> hochul should. >> should. >> should kick him out of the role? >> well, i. >> i sent a letter to the mayor saying. >> we need to see the. >> contingency plan. >> what are. >> you going to do. >> to. run city government? >> are you. >> able to deliver? we need to see what the judge does today. i hope judge ho won't take this corrupt. hostage bargain. >> so what. >> do you think happens? do you think the judge might say, we're. >> not doing. >> anyone else who might be ready to step in as mayor at this point? is there anyone. >> at this table, maybe. >> someone nearby? that could. >> be a great. >> it's not me and not andrew, so i can only think of one.

>> i'm running. >> for mayor. because we need a more. >> affordable and. >> a safer and a. better run. new york city. >> and we need honest, effective leadership at. >> city hall. >> and this is not. >> about you enforce ideology. you enforce immigration policies of the trump administration. >> when someone is convicted of a serious or. violent offense, our laws allow for. >> cooperation for them to be deported. but if we're talking about families, kids in school, you know, folks who are, you know, families, you know, grandparents in the shelter system. >> with this. i mean, you okay with the sanctuary city designation for new york city. >> that lets it. >> be possible when. >> someone wants. >> to. >> report to violence or be a widow. >> this could be a. >> crime if you. >> have not. >> committed a serious or violent offense, then we want you to send your kid to school. if you see a crime, we want you to come to the precinct. >> and that might mean that you would have to push back on anything that homan said or anything. >> trump i mean, last. >> week, elon musk. reached in and stole $80 million. >> from new york city. so a long time. >> it's not. >> we have a contract. >> they owe. >> us the money. >> they paid us the money.

>> they took it. >> do you. >> think that 80 million is okay to support migrants that are here illegally versus people in north carolina and tennessee and kentucky. >> not come from. that emergency? >> money and money is fungible. money is fungible. but you see that? that's what it looks like, though. we're taking care of people that are here illegally and our own. we're not taking care of it. it doesn't matter whether it's the same money or not. >> of course it matters. >> congress authorizes. >> money for emergencies. >> and they did. >> this was money. >> that was a different question. do you think that there's a signal that needs to be sent in this, in this state, that illegal immigrants are not welcome? or are you suggesting this is a place where illegal immigrants should come? >> that's a. >> good. >> way to put it in. >> federal government. >> we don't. >> this state doesn't control the border. federal government controls. >> the border. i understand that, but i understand that. but i think you're deflecting. i'm not deflecting. these are. >> people who. >> the federal. >> government sent here. >> they came in. >> they registered at the border. >> that's a separate. >> question than new york controls. they were then sent. >> here largely. >> by the. >> federal government. >> while awaiting their

appointments. >> the last administration. >> and i mean. >> it's. the federal government. they were. >> sent here. >> by the federal government. >> new york. >> says, look. >> if you're here, send your kids to school. we will try to. >> make sure. >> you're not homeless. >> let me ask you a separate. >> question. >> which is there has been a lot, especially in this city. i think you could say that safety and security is a genuine question, a genuine question, a genuine question. >> i'm running. >> for. >> mayor because. it's got to be a safer and better run city. >> okay? and when you hear the stories of some of the folks who have committed violent crimes in this city, on the subway, on the streets, what have you, one of the things you continue we all we all read the papers and we and you find out that these people were violent offenders beforehand and that there are rules and laws in this state that have shifted over the past several years that have made it a lot easier for these people to be back on the streets. but look, one of the guys, my question is, how are you going

to change that? because for reasons that inexplicable to me, this state has moved in a way to allow a lot of this to take place. look, one of the. >> guys who committed a violent. >> offense was. someone that. >> the nypd. >> had arrested. >> was in prison. >> ice then deported. >> him back. >> and that's why he. >> was out of jail. >> and then he came back here again. >> so that speaks. >> to ineffective. >> border controls for certain. but our policies. >> like, what do you think the policies in this, in this state currently not just the city but the state makes sense? well, there's a lot of ways we. >> got to make. this city safer. you know. >> i got a set of plans. to end. street homelessness. >> for people with serious mental illness. so we don't have a mental. >> health crisis. i understand that, but when you talk to police and when you talk to prosecutors in this state, they say the laws are off the hook at this. >> point. >> that i talked. >> to. in law enforcement. >> says that. >> asylum seekers. >> are committing a disproportionate. >> share of crimes. quite the opposite. so if you want to get

a public safety issues, if you want to get at mental health crisis, you want to get a gun violence, you want. >> to get. >> at retail theft. the things that are. making new york less livable. that's what. >> i want. >> to get at with smart crime fighting and public safety. >> what does that mean, though, in terms of changing the laws. >> about changing. >> the immigration laws? >> okay. but let's take the immigration laws off the table. then for a second. >> i. >> thought that's what we well, i think there's an immigration law question, but also there's a separate question, which is what you would do with violent offenders of any sort. i mean, look, you know, there's a conversation right now. >> about the discovery laws in new york, which got reformed a couple of years ago. and as a result. >> you think the reforms, the reforms, the reforms were a mistake? >> i think. >> the. >> discovery reforms. >> are worth. >> looking at because misdemeanors are getting prosecuted. at a much lower rate than they were. and we. >> got to do something about bail reform, bail reform, you know. crimes went up. >> everywhere across the country. i don't believe the bail reform in new york was what led to the spike. i think it was the mental health crisis. i think. that there are some things in the discovery forum that should be fixed, and i

think you just need to address the. staffing crisis. and right now, the management crisis. >> at. >> the nypd caused by eric adams having a corrupt commissioner like he did, that's a big part of the problem now, i think. >> do you think that's why there's this much crime in the city as there is? >> look, in the. >> weeks that jesse. >> three months that jesse tisch has been commissioner, you're seeing crime coming down, accountable leadership at the top. i think that matters a great deal. and again, that's why i. >> wrote i think that if we had jesse tisch sitting here, she would tell you that it would make her life a lot easier if the laws were changed in this state. >> and i think she would tell you, here are the things. i've done to have an accountable for to recruit. >> but you would not you would not. push for you would not push. if you were the mayor, you would not be pushing for harsher penalties and bail reform to be rolled back in any way, shape or form. well. >> i think there's some things we can do to have more flexibility for involuntary hospitalization for people with serious mental illness, and then get them connected to housing and stability. i think those reforms we can make on discovery

that get the number of misdemeanors that are prosecuted back up. so, sure, there are changes that are made, but i think the most important thing is accountable leadership. and that's why i think commissioner tish is doing a good job. that's why i think eric adams has to be held accountable. can't be a hostage to donald trump. he's got to work for new yorkers. he's not focused on public safety right now. he's focused on the safety of just one person, and that's himself. >> do you think that everybody who's here now illegally should be able to stay? and do you think that that sends the right message to anyone who's considering coming here illegally. >> when their asylum cases are evaluated, fewer than 25% of people are found to have credible fear, and those that are not are sent back to the country they came from. but they're due a credible fear hearing and. >> which could be four years from now. and that doesn't have to be totally lost in the dusk. >> instead of destroying the federal government will make sure people. can get their credible fear hearing. then if they don't have credible. >> we've we've seen the. way

your sort of method. that's what we have for the past four years. and this is the mess we're in. and you saw what happened. >> in new york city. >> that what you just but no, but what you just described does not what you just described, what you just described has us in this mess right now. and you lost an election, you know, pretty badly. and immigration was the way it's been handled. >> is done every day is how new york city delivers services to its people to keep them safe, to make the housing more affordable. we got. >> i know we got to go, but i want to ask you just just about elon musk and doge for a second. yeah. which is can you get behind the idea that we should have, whether it's elon musk or some other doge, whatever, whether elon musk is part of it or not, that there should be a group of people looking for efficiencies at the sort of root level. >> it's just that's not what's happening here. i absolutely agree with you. okay. so the. >> question is, do you. >> believe. that there's a efficiency? >> do you believe there's a way new york state federal, do you believe there's a way to create that efficiency without moving

as fast as this group is and doing it in a more transparent way, if that's what you believe, and. >> with the goal. >> of. >> making services work better. that's what my office proposes. every time we propose this radical solution to getting repairs done in new york city, public housing that wouldn't use bureaucracy, that would use technology, we can make government run much more efficiently in our housing, in public safety, and we've got to be bold about it. so that i agree with it just has. >> to be if you're going to if you're going to run the city, what are you gonna do about the unions in the city and the cost that those unions create for the city? >> i mean, look. we've got to reduce the cost of living, and that means reducing the cost of government services. again, in, in. >> how are you how are you going to do that? i mean, one of the things about this city is the unions control this city, whether it comes to trying to fix the subway system. why are our costs three times what they are everywhere else? >> you might ask elon musk for help to come in and look at some of the look. >> what i proposed. >> at the. >> new york city housing authority. >> is an app. >> like yelp or uber. do you think mayor adams doesn't survive? >> you should.

>> be able. >> to raid it on your phone. >> mayor adams survived. do you think? >> i don't think he will be mayor next year. >> oh, well. but but he'll have to. there'll be an election where he's defeated. >> there will be an election. >> where he's not reelected. >> what's going. >> to happen to kathy hochul? that's you know, we got to get through this week. that's next year. i am richie. >> torres fan. >> what's your what's your what's your. >> i'm right now i'm focused on making sure new york city has continuity of government, that people can count on the services they need every single day. >> brad, we love having you on the show. >> thank you. i love coming in. >> appreciate it. >> we're coming right back after this with a lot more. >> thank you. >> the number of. public companies is shrinking while the number of private companies is increasing. at franklin templeton, we're expanding access to the growing opportunity in private markets, offering the potential for greater diversification and enhanced returns through our world class specialist investment managers. we are empowering advisors with

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little bit down 3% in the premarket. the stock was up yesterday on continuing speculation that rival firms broadcom and taiwan semi are thinking about a deal that would split the embattled intel into two. for more on the chip and ai sector, let's bring in matt bryson, semiconductor analyst at wedbush securities. do you know anything about the likelihood of that happening, matt, in terms of intel? >> i don't know whether it happens or not. it would provide a solution to the problems they've been having on the fab side. i guess the thing i struggle with is the market concentration, particularly on the fab side, would be beyond what we typically see allowed by regulators. >> the prospects today for, for chips, i mean, they're not all created equally. can you break

that down for us on on. i mean ai has been, you know, such a an important narrative for the whole group. will that continue? who benefits the most? who doesn't benefit? what changes? >> yeah. i mean, so chips are created equally. so at the end of the day, a. >> lot of. >> the advantage comes from the manufacturing. taiwan semi is better at it than anyone else in the world. so you look at the leaders in the ai space, whether it be invidia who clearly leads with their own gpus, but then someone like a broadcom or marvell who's supplying ai products that are custom built. >> for the large cloud companies. >> they all source from from tsm. and so, you know, there's a difference. and that's part of what intel has struggled with. and that's where their struggles really began. >> is the industry now too

fragmented for just to watch the sox or to watch something that encompasses the whole group and try to determine where the economy is headed right now or where the stock market is headed right now. is it still work that way with chips or. i changed everything. >> i think, for now. i changed everything. so ai. >> is. >> what's moved the semiconductor space over the last year. and i mean, even the last three months, speculation. around is nvidia doing as well as they thought they might be in terms of bringing their new black ball products to market. caused a sell off. and then a rally. deep sea caused a sell off in a rally. and really, that's that's all ai related versus reflective of what's going on in the broader economy. and when you look at demand for these chips and the amount that

we're seeing being spent by whether it's the cloud companies, whether it's sovereign entities, it seems to have divested itself from the rest of the economy. yeah. >> well, i'll miss that because we could always sort of, you know, look at the boom and bust cycles and the semiconductors and, and determine what was happening. i think you're right, though. i think invidia changed everything. taiwan semi we don't even talk about intel or micron or amd. we do a little but qualcomm. thank you. we're going to leave it there because it's past 8:00. and somehow that means something somewhere. but thanks matt. it's 8 a.m. on the east coast and you're watching squawk box on cnbc. i'm joe kernen along with andrew sorkin, who has some little crow's feet that i've noticed at at your age now. and i just noticed this morning because it's his birthday. happy birthday again. if you having well wishers

coming out of the woodwork. thank you. everywhere on. >> my for all of the twitter birthday. >> wishes folks. >> it's. >> i hate when it's my birthday. in fact, i wasn't even here this year because. and you know what day my birthday is? >> january 6th. >> january 6th. perfect. i do. >> becky is off today. among today's top stories. apple told britain's competition regulator that some of the remedy options proposed to address concerns in the mobile browsers market would have a, in their words, a chilling impact on the company's incentive to innovate. this is in response to the regulator's investigation into the supply of mobile browsers and browser engines in the distribution of cloud gaming services through app stores on mobile devices in the country. meanwhile, shares of toll brothers are lower. earnings and revenue fell short of expectations, the company said that was due primarily to impairments and a delay in the

sale of an apartment property at one of its joint ventures. in bloomberg's reporting that elon musk's social media company x is in talks to raise money from investors at a $44 billion valuation. musk bought x, formerly known as twitter, for the same price back in 2022. talks for the new financing round are still ongoing, and the details could change, the report said, adding that the company could also abandon the talks. and you will never abandon x, will you? >> i am addicted, i'm an addict. i scroll doomscroll whatever i'm. >> you get news from it. >> i get a lot of news from it. you release. some is i don't post that much. >> it's pure, it's pure. there are problems. it's not perfect. >> it's pure. but i it's. >> pure in that whatever human nature is willing to put forth in the worst possible way and in the best possible way, you can

see there and you be the judge. that's all we ask. that's all we ask. >> you have to have a little bit of a constitution, though, about what you're. >> you do, but i don't need ap deciding what i'm able to see, which is what, or npr or whatever. so i know it's your birthday, but i can't let you just. or 60 minutes come on. or 60 minutes. go ahead. >> oh my goodness. throwing the glass houses glass houses futures right now. dow off about 80 points. let's show you where the s&p is off about five points. the nasdaq up just about a point two points right there. want to get frank over to frank collins who's got a look at this morning's pre market movers. frank is living in the glass house with us. >> yeah. you know absolutely. and by the way andrew happy birthday i meant to say it earlier but happy birthday to you i have some very special movers for your birthday. let's kick it off. starting off with analog devices. you see, shares are up just about 5% after earnings were beat on the top. and the bottom line also provided revenue guidance for the current quarter. that was in line with expectations. the

company said it saw strength in its industrial and automotive businesses, and expects to see growth in those areas throughout 2025. shares of analog devices up just about 5% right now. next up is garmin shares moving higher after top and bottom line beats also the company proposing to raise its dividend. that's subject to shareholder approval. you can see shares are up just about 2.5%. the fitness segment where garmin gets about 30% of revenue. that was the real driver of the quarter sales for wearables and other devices. those increased by 31%. forward guidance on revenue and eps also beat expectations. again, shares of garmin up just about 2.5%. last but not least, etsy. those shares are falling after earnings were the online craft marketplace had missed on revenue, but it beat on eps. you can see shares are falling just about 6%. however, active seller and active buyer numbers those also came in below expectations, along with gross merchandise sales coming in 6.8% lower year over year. the street was expecting a decline but closer to 4%. etsy also providing similar guidance for gross merchandise sales for this

quarter, ceo josh silverman said. however, he expects improvements to the site and the customer experience to drive a return to growth again. shares of etsy down just about 6%. back over to you and happy birthday once again. >> thank you sir. appreciate it very, very much. >> coming up, testing the limits of presidential power, we're going to talk to former white house legal counsel for george w bush, john yoo. he worked on legal opinions on executive powers following the september 11th attacks. then at 8:30 a.m. eastern time, former saint louis fed president james bullard on the economy, inflation, jobs and the future of interest rate. squawk box coming right back. >> this cnbc program is >> this cnbc program is sponsored by (♪♪)

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>> our next guest says that president trump's use of executive orders are unprecedented in terms of the sweeping scope and in the sheer number. joining us now, john yoo, uc berkeley law professor who helped expand presidential authority while serving as an official in president george w bush's justice department. john, it's great to see you. let's see all the time on all the i've been watching you for years and years, all the way back to that horrible period back at the turn of the century. but i still can't believe you're at berkeley. but i think it's nice. i think that's good. i think that you're like the you're like one of the d-i hires at berkeley as a conservative. i think. >> you're catching. >> me right now in austin, texas, though, so i'm trying to get out. >> while i can. >> you're rubbing that all over? yeah. you're feeling it home, john. that intro sounded like it

was almost a criticism of what president trump is doing. i would imagine you'd make the case that that anything that he's done executive power wise at this point might be unprecedented in terms of size and scope, but you probably would would, would say that he's totally entitled and you probably are behind a lot of the stuff he's trying to do. >> i think that's a fair point. i think. he's going to win a lot of these current controversies. >> but. >> there's some of his executive orders that. >> are pushing the limits. >> and. >> i do think he's. >> going to get a more hostile reception in the courts. >> so look, we're. >> a little bit in shock, i think right now because we've had four years of joe biden, who wasn't. >> this active. >> president trump. has come in and he i think what he's trying to do is restore energy to the executive, which. >> is alexander hamilton's. >> phrase about we even why we even have a presidency. so all these things that we've been talking about, cutting,

spending, firing people, those are the areas where. >> i think. >> president trump is really going to prevail, because those are all about the president running the executive branch. these are all people within his branch of government and the courts. >> and congress. >> especially now, have been fairly deferential to the president there. the executive order is where he's going to run into resistance or where. >> he's trying to. >> change the rights of people outside the executive branch. so i'd say, for example, trying to end birthright citizenship is going to get a harder time in the courts. he may well lose that at the supreme court. >> declaring that. >> there's an invasion. happening on the southern border where. >> the. >> military can respond to immigration. >> and waive. >> civilian immigration laws. >> that's going to run, i think, into trouble in the courts. but i. think he's going to have a lot of success. and you're ready. you're seeing it today. there are already courts that are pulling back from their initial attempts to stop it. looking at the spending accounts and the government. freezing spending, temporarily telling

people that we may not need you to work at the government, take a buyout there. >> i think the. president is he's kind of like the head of hr for the. executive branch of. >> government there. i think he may ultimately prevail. >> it's a. >> beautiful system, isn't it? isn't it? we've got all those district courts where you can shop your, you know, your your case around and find a judge that you know to your liking. but sooner or later it gets to a point where you know, the adults are in charge. it's a beautiful system that we have. i, we were talking about that earlier. eventually, we usually get it right. let me i want to get to something we've been talking about. and that is what's happening in new york with with mayor adams and even conservatives, andrew mccarthy and others think that that smells kind of bad. there's a case being made in the journal today that the justice department in the past has often deferred prosecution in exchange

for companies changing their behavior and doing certain things. i don't know if that's the same as getting a politician or an elected official and having sort of, you know, a sort of damocles hanging over, you know, mayor adams head, if he doesn't do what you know, president trump wants as far as immigration are you is this does this bother you? and then, andrew, you got to you got to use your it's his birthday. i'm going to let him have a shot at you after that. but you're perfectly fine with this arrangement we're seeing with between tom homan and mayor adams and president trump. >> this is not just something that the justice department has been doing recently. this is something that president washington did. so this tradition of presidents saying, okay, prosecutors, look, i totally sympathize with the prosecutors here. i was a justice department official, too. >> i totally. >> see an expert saying we got him on the facts. we got him on the law. i want to prosecute.

the justice department generally doesn't pull back and dismiss charges when they think they can win. >> in court. but presidents have. >> a broader view. so look at president washington. he actually had to. >> face an insurrection. >> this was people in western. >> pennsylvania who. >> didn't want to pay taxes on whiskey. that's what he still called the whiskey rebellion. i'm originally from pennsylvania. i know people in my home state don't ever want to pay taxes on booze. right. so there was a rebellion in western pennsylvania. washington went out in person, led an army in person to put it down. the prosecutors had people. up on charges, and president washington said, drop them all because it's for the good of the country. we have to, you know, live as one nation. and so i'm ordering the charges to be dropped. now, i'm not saying that's exactly what president trump did here, but we've always recognized that presidents can say, even if you can prosecute these guys, we have to balance that against things which are more important, which are in the public interest. >> now. >> your example of deferred prosecution with corporations, i don't think that's exactly the

same, but it's the same idea, which is that the prosecutors, you know, they're the experts. >> you know, the. >> justice department officials like me, we. >> have a. >> kind of tunnel vision. and we do have to defer ultimately to a president who has to see whether we got to balance. that against other interests. >> let me let me ask you, let me ask you, maybe this way we talk about lawfare. we talk about lawlessness in this country. we talk about nobody being above the law. all of these these issues, which frankly, i would argue president trump did run on, meaning he wanted he said he wanted to get rid of this idea of lawfare, of politicizing the law, and contended repeatedly and successfully that president biden was engaged in lawfare, something that he didn't believe that this country should be engaged in. so part of the conundrum in this particular instance is that i think people look at this and say, he's playing politics, he's playing politics with the law. and i think one thing that's important

to understand in this particular case is this was a grand jury that indicted effectively this mayor. i'm not making a comment on the mayor's guilt or innocence. i'm just suggesting that it was my fellow citizens, your fellow citizens, that that decided that this was a worthy case. and therefore, what you have in this situation is a president that is using politics, i think, very directly. the good news is it's transparent what's happening here, but it raises all sorts of other questions, not necessarily constitutional questions, but just questions in the in in the public minds. i and maybe it depends on your politics, but it raises those questions and whether that undermines the credibility of the justice department and just the entire system. >> hey. >> well, i'm sure everybody said happy birthday. happy birthday. i hope you guys have me back on again before your next birthday, by the way. yes, but here's the way i would look at it. here's

the way i would look at i think there's a difference between policy and partizan politics. so i think the problem with the biden prosecution of president trump is that he was going after the guy who was running against him for president, trying to knock him off the ballot that i think is republican democrats versus republicans. i totally agree with you. we don't want to see that in our prosecutions. i don't think that's what the trump justice department or the trump white house is doing here. here's a democratic mayor. and if you believe what the white house is saying, they want to let him off because they. want him to help them achieve their overall policy goal of better immigration enforcement. that doesn't have to do with president trump running for reelection. he can't, of course, doesn't have to do with republicans and democrats. they're doing it for a policy reason. that's why i'm comparing it more to washington's. >> do you think it would. >> be better for the. >> in his first term? >> so, as you know, the. >> the. >> lead prosecutor in in the case who ultimately has resigned, who was a conservative, suggested that the right answer was for president

trump to pardon the mayor, which is to say, you know what, we're going to take this off the table. this is not about anything else, but we're going to pardon the mayor that that would have been the sort of better approach to this situation rather than to dismiss the case with prejudice, which then creates this even more. i mean, i've talked about it being almost a hostage situation, because the truth is that the mayor now has to do what the president wants. and if the if the mayor doesn't it it appears as if the president is suggesting that they will then prosecute this individual. again, it goes this is as political as it gets. right? >> i think that's a fair point. >> again, it's not. >> political republican versus democrats. it's political in the sense of how does the federal government actually make sure mayor adams keeps his word? so if you give him a pardon, what happens if mayor. >> adams says, i'm not going. >> to help you with immigration anymore? so it's very much actually like what. joe was saying. >> with. >> the deferred prosecutions with corporations. it's the same

idea. >> no. >> i. >> understand that, john, but but this is an elected official. but here's the and this goes now to a federal versus state system, right. the mayor was elected to represent the people of new york, right? he is supposed to answer ultimately to the people of new york. and in this instance, given this sort of very unusual circumstance, he has to answer not to those people. he has to answer to one person, and that is the president of united states. and that's something we have not had in this country in terms of how we've wanted to structure it, versus a kingdom or something else. >> look. >> this is not unusual in the sense that the federal government is trying to get states and cities that are resisting federal priorities. like this is something, as you said, this is a federal state issue. this is not this prosecution, but the federal government has used funding cut offs. they've used carrots and sticks, like trying to get states and. >> cities to. but most of them don't have. the i agree with you. look, the federal

government holds lots of states hostage for lots of things. they typically do not hold the mayor hostage and with with the possibility of sending that person to jail. that's the difference. >> yeah. look. >> if. >> i had my druthers, i wouldn't have the federal government going around prosecuting mayors what they should do. and i think this is what's going to happen in your city is they're going to say, we don't think this mayor is acting in good faith here, or they were he was taking bribes from turkey. there you have elections, you have governors. you have a political system that can hold mayor adams accountable. and maybe it shouldn't be the job of the federal government to police all the mayors in the country and hold this sword of damocles over all of them. but that's the way it is now with all these very aggressive u.s. attorneys. so maybe it might be better if they withdraw altogether from policing mayors. >> that was my point to that, that, you know, asking, you know, the quid pro quo in this case, the quo was immigration. and that's not getting rid of

your political opponent. but but you know what, john? you may be back at some point in the future where it's not about immigration or some high minded. it might be president trump just it might be pure lawfare. couldn't you see him going after someone like liz cheney? i mean, that may be down the road. maybe. maybe she did destroy, i don't know. i don't know the details of the case, but it may not be something that's for the i could see it happening where it's just like the biden justice department. you know what i mean, andrew? >> that that. >> that could be coming with pam bondi. i wouldn't do you think, john? i mean, i think we may need to have you back. >> i hope i hope we never see that day and i. >> hope we don't that. but you know. >> attorney general will resign. >> but all right, john. it was great. great having you on and even even though you. what are you going back to berkeley? you'll be welcome with open you'll be welcome with open arms, i'm sure. [alarm beep]

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cnbc.com now. >> we have. >> a special delivery this morning for andrew's birthday. donuts from daily provisions. and i've got i've got my eye. you know what. >> we got to say a very special thank you to danny meyer by the way is that daily. that is daily. and danny sent me a very nice note, very nice with these donuts, knowing that i am a donut lover and in particular a cruella fan. and so these are these are some of my favorites. >> those are the what does that mean, cruella? >> this is i don't know, it's oh my god, it's just amazing. there's some good chocolate ones here too. >> i'm going to come over and you know what? i'm going to have it because i'm i am way down. i've got some wiggle room. >> you got some wiggle. >> room in terms of gaining a few pounds back. coming up, we have some breaking economic news, the latest.

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grazie. for the chef and all of us. >> i only want one. >> we're just seconds away from

housing data. the futures right now, as you can see, the dow has worsened a little triple digits. now, nasdaq also was almost got the unchanged. and now the s&p is down. take a look quickly at the treasuries. and then we'll get to the housing data. because we just got january housing construction data. housing starts coming in at 1.37 million versus the right in line with the estimate. building permits for the month coming in at 1.48 million. the estimate was 1.45. let's bring in diana olick. any anything really surprising here? doesn't sound like it, necessarily, diana. >> not surprising. but, joe, you know, i always like to separate out the multifamily versus the single family. and in single family starts, we did see a steep drop of 8.4% month to month, 1.8% year over year, also a drop in multifamily, but that tends to be a lot more volatile. and the reason this is so important, we did see yesterday in the nar sentiment index, that sentiment dropped dramatically,

down five points to a five month low. and that was mostly on concerns over tariffs. but what we saw in january, because these are january numbers and we didn't hear about the tariffs till the end of january, is that mortgage rates started january 1st at 6.97% and then went straight up, hitting a high of 7.26% on january 13th. so the builders are clearly reacting to the high mortgage rates. we saw that from toll brothers yesterday, remarking on higher mortgage rates and affordability. we've heard other builders talk about that. pulte homes talked about the difficulties in affordability. so the homebuilders are clearly looking at whether or not they can get buyers in the door. the nahb survey showed that that future sales expectations it dropped the most down 13 points. so that's why you're seeing the drop in starts and the drop in building permits, which are of course, an indicator of future construction. so again, it's not surprising, but we are at the very start of the all important spring housing market. and

that's when you want to see builders start to ramp up production. some people will say, yes, there's been a lot of bad weather, but these are seasonally adjusted and year over year we're still seeing the declines. so i think this is just builders pulling back because they're concerned about affordability. they're concerned about potential tariffs and the cost because it's not just their materials. it's land and it's labor. and labor is getting more expensive too, because such a large part of the labor market in home construction is from immigrants. so again, the numbers are not unexpected, but they're not great. back to you guys. >> we had someone on earlier, diane, who said we still build houses the same way we did 100 years ago and we haven't. i'm just wondering, i don't like you don't want. we're not going to have a bunch of those crappy prefab houses, are we? isn't there only one way to build a really nice house, or is there a better way? is there an i way? >> well, there there is an i way. and in fact, joe, we've done a lot of stories on that i and architecture and i and home building and planning and that's helping to bring some costs down. but real estate has always been notoriously slow to

innovate and to modernize. and so we're starting to see that. but again, it's hard when the costs are so high and the potential for cost for materials. remember lumber, gypsum comes from mexico. and chinese tariffs on all those appliances that we pull into our homes as well. that's a lot of that market. so builders are very concerned about their costs and their margins. and interestingly, they're not buying down mortgage rates as much as they had or lowering prices as much. and the nahb said that the lack of these incentives in february is because they're just not seeing so many marginal buyers anymore. that is people on the fence. if you can afford it, you can afford it. and if you can't, you can't. that's how bad affordability has gotten now. >> okay. all right, i got it. all right. thanks, diana. >> before we continue, we just need to explain. >> that's so funny. >> the donut situation. so these are crawlers. >> crawlers. >> crawlers, crawlers. and we should thank danny meyer again for sending them over here. cruella is not cruella. >> she eats donuts made out of dalmatians. >> but a cruella. by the way,

it's not a flavor. this is a chocolate one. they're all these are all colors, colors, colors, colors, colors. i'm not cruel. >> it's not cruel. cruel. it's not cruel. >> eat a donut. they are crawlers. >> and i don't know what the difference is, but i like them. >> i like them, they're really great. i'm sorry to. >> say it's nice. >> i'm not sorry to say. i'm very happy to say happy birthday. >> thought of. >> you to myself. >> yeah. >> me time. i want to talk more about the economy, inflation and interest rates. joining us right now, jim bullard, is the former saint louis fed president. he's now purdue university's business school dean. good morning to you. we've been having. a bit of a raging debate about just how much inflation is actually in this economy right now, and what the fed should or shouldn't do about it. >> yeah, inflation is, i think, on a path to. >> continue to decline. >> it looks. >> like year over year core pce will. decline when it's announced. and so i think. >> that the. >> committee is in. >> very good shape here. there's a little bit of risk. >> that inflation will turn

around and go higher. i'm only putting 20%. >> on that. >> right now. >> markets are a little. >> bit concerned. about that. and that's that's weighing on things a little bit. but the baseline case i think is intact. >> i don't. >> think the committee has to do anything probably before june here. >> okay. but that that's if we just sort of stay steady here. i think part of the question is if the tariff situation gets put into place, what happens then and whether even just the prospects of those tariffs, even today, and we haven't seen the data yet, is already putting some kind of inflationary pressure into the economy. >> yeah. i mean. >> tariffs don't cause inflation. they'd be a tax. and that would be a one time increase in the price level. usually the committee would look through something like that. but you hit. >> the nail. >> on the head about how people should think about tariffs. the issue is who wants to make very large investments around the

world when you don't know. >> what the rules. >> are going to be? >> and the answer. >> to that is no. >> one wants to. >> do that. so it's the expectations of turmoil in this, in this world. you don't know you're playing a game and you don't know what the rules of the game are that interferes with global investment. and that effect occurs immediately, even before tariffs necessarily are actually implemented. and it's that scenario played out in 2018, 2019. and ultimately the fed reacted to that. and i was on the committee by lowering the policy rate in the teeth of the trade war. so i think that's the main thing that markets should be concerned about here. not one time changes in the price level. >> i mean, one of the things that i've been fascinated by, there was obviously a huge expectation that once president trump won in november, there would be a massive wave of mergers and acquisitions. one of the things that has not happened, in fact, january was one of the lowest months in in some time in terms of dealmaking, in part, i think.

and you tell me a function of folks saying we don't know what the tariff situation is going to look like. >> yeah. >> i think when you when you upset. global expectations, then people always want to pull back. they. >> you know. >> a merger would be a huge decision for various. firms that are involved. and you know, semiconductors i guess is one that's been being looked at or split there. so but that kind of decision is. >> hard to. make if you're if. >> you're not sure what the rules are going to be. >> right. >> hey, jim, while i have you here, we spoke to michael barr yesterday, who, of course, is stepping down from the supervisory role in part to prevent, you know, a larger battle inside the fed or around the fed in terms of its independence. i was curious about your personal view of his decision to do that. was that the right decision? and who do you think will replace him if at all? >> yeah, i think. >> he was in a difficult position. >> but now. >> the precedent has.

>> been set. >> that when the new president. comes in, the vice chair for supervision steps down and allows the new president to name a new person. i would prefer that that was a little bit not not speaking specifically to president trump here. but i'd prefer as a matter of how we run the democracy, that that would be a little bit away from the actual incoming administration, because now it makes it just the same as, let's say, other financial regulatory areas where the new president comes in. you say, well, this guy won the election. so now now you're going to. >> turn over all. >> these jobs. i think to have continuity. you would spread that out. a little bit across the president's term. >> the other thing i was going to ask you about, i don't know if you saw jay powell was asked about it last week. this idea of debunking, this idea that banks have been debanking customers and clients that don't have

particular political views. it sounds like to the left, and i mentioned this because president trump specifically called out brian moynihan and jamie dimon directly when he was in davos about th. do you believe that there is genuine d banking in america over, over political ideology? >> yeah, i've. >> seen some of that. sometimes there is a fragmented regulatory environment in the us and some some of the regulators do do things like say. >> well hey. >> i don't want you banking this gun firm or i don't want you banking this cannabis firm. that's another one that's tough. so i think this has been a hot issue, especially for community bankers. and you know, i don't think you want to enforce rules through the regulatory channel. you want if you if you don't like a particular industry, then

you should make a law about that. >> but here's the question. my understanding of it is that, you know, to the extent that regulators have told banks either not to bank folks in the in the gun industry or in the cannabis industry, which obviously, i think there was a question about the legality of the cannabis industry to begin with, maybe oil. i think that was less. so i was going to go with i was going to go crypto where i was going to. and but underneath it, at least what the regulators would say, and some of the bankers would say is it's about whether this industry is as good a credit as others, meaning, are they actually going to pay the money back? and, and therefore what kind of risk it creates in the system. and if in fact, the default rates are higher in the gun industry, or if in the crypto industry. >> with oil. the it has no future. >> come on. these these these guys are in the business of, you. >> know evaluating credit risk. >> and sure some things are more

risky restaurant maybe is more risky than something else. >> the car dealer. >> down the street is, i don't know, maybe less risky. that's what they got to do every day and charge them. >> the. >> right price and, you know, for the risk. >> so i don't think. >> the regulators should be coming in and saying, hey, that one looks. >> that one looks. >> bad. >> that other one looks good. >> that that sounds. >> like interference. >> no. >> we got probably. >> let you go. i'm just. do you think we're going to see another cut in rates this year, jim? >> hopes are fading. i think the you know, the january cpi was hotter than expected. now they got to wait for some other reports to show that they're actually on the downward trend that they're talking about. they won't have that information going through into until spring. they could. i think you still keep hope alive for june, but it's probably less than 50% or even less than 40 or 30% in june. so it's kind of.

>> looking like. >> more likely. >> that you'd just. >> stay on hold here. the committee's in. >> great shape. they they lowered, you. >> know, by 100. >> basis points. they didn't go all the. >> way to neutral. they still got a restrictive policy that's supposed to send inflation to 2%. >> okay. >> okay jim great to see you sir. thank you. >> i. >> i think i have an account at both those places. >> oh do. >> i have a credit important credit card from today's. >> so they haven't debanked you and your political views. >> and i have a bank of america, so i can say that they're not banking. >> well, you may get a call this afternoon. >> i spoke too soon. maybe they didn't know. maybe they didn't know i had them. >> coming up. a key player in the powering the ai race. we're going to talk to mark lipschultz, co-ceo of blue owl capital. he's our special guest. is firm's funding first data center for the stargate project. and we're going to ask him about that critical investment in so that critical investment in so much got eyelid itching, crusties and swelling

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>> welcome back to squawk box. our next guest is the co-ceo of blue owl capital. oversees more than $250 billion in assets under management. a key player in the race to fund the surging energy demand for artificial intelligence, blue owl is funding the development of a data center in abilene, texas, which is the first site of the stargate project. joining us right now is marc lipschultz, co-ceo of blue owl capital. good morning. how did you get involved in this? >> good morning and happy birthday. >> thank you. >> so very. >> privileged to be here. >> on a. >> special day. >> i'm glad. >> you got a donut. >> i got a. >> donut out of it, which is delicious. >> it's free food. >> it's his birthday, but you get the dough. >> i know what a privilege. it's a winner for me. >> how did this happen? >> so, you know, we got involved in data centers the way we have at blue ball in many cases, started from the bottom up, which is, first of all, the blue owl. we're about investment strategies within the land of risk bearing strategies that are about downside protection, stability, income orientation. and we have the largest triple net lease real estate business, right, where we already worked with people like amazon on

distribution centers. so when we saw this emerging opportunity, which really is a type of triple net lease, which is our home base, something space we pioneered, it's really a deep vertical version, which is you're going to be a long term partner to these very strong investment grade. companies. so, you know, that really inspired our interest. we started doing some of that work within our real estate business and then said, like we have in other areas, if we really want to be serious about this and deliver the best results, then we need the best people and the best team. so we acquired this business, ip, who have been a real pioneer in this arena. >> and then they got in touch with sam altman. how did this how did this all happen. yeah. >> so then through a combination of work we've been doing with oracle. and then of course, oracle's subsequent partnership with open ai. and so that really brought us all together. so we actually are the capital partner in the abilene center as example. >> so there is a little concern in the marketplace right now about data centers. this whole sort of deep sea situation sort

of raised this question of if, in fact, i can be produced with a lot less power and maybe even smaller data centers, or maybe not as many growing in the future. what's going to happen here? and also just sort of how these things get amortized over time, do they have to actually get re fitted or retrofitted later? because some of it's about training, some of it's about inference. i mean there are these sort of big questions. and i'd say the biggest sort of cloud question is are we in 1999 laying down fiber. right. and whether there's an overbuild going on. >> so that's a really interesting framing and a really good set of questions. so let me let me come at that from a few perspectives. so first of all, the way we at blue owl approach this again, which i think is very much the dna of our firm. we build data centers in partnership with the hyperscalers under contract. so the question for us isn't really what is the exact utilization rate. it's does microsoft does,

amazon does. you know what meta. google. >> there's five. >> right along with oracle that are building these big data centers. we signed 15 year agreements with them. so our question really is do they believe in the future of and we've certainly seen them in fact reaffirm rates their capital plans on the back of deep sea. so i think from where we come at it, we have the pick and shovel solution that is really counterparty to investment grade near sovereign quality credit. so we love what we're doing. that doesn't make every data center a great idea. because to your point, if you're building spec data centers, hoping someone comes along and uses it, that starts to have some of those fiber questions you're noting. so i actually like the analog to 99, for what it's worth, both the good and the bad of that statement. at the end of the day, the transformative effects of the internet were spot on, right? in 99. the mania wasn't wrong about the transformation that was coming. what was wrong about was picking the winners and losers

around, so to speak, the cutting edge. we stay away from that. i, i don't know if deep sea model is or isn't superior. clearly there are things being done with with distillation learning or reinforcement learning that work. that's part of the advantage. >> but what happens at the end of the 15 year? >> well, so 15 years then you of course, you have in fact, a functional, well developed data center. i mean, what is a data center? the outside of a data center is just a really sophisticated version of a warehouse inside the data center. now, that's where to your point about capital, that takes constant capital refreshment. that's not our part of the business. that's actually the part of the business, the brain of the operation that the hyperscalers, the operators themselves, are refreshing. it's really interesting. the inside of a data center is about triple the capital of what it cost to build, if you will, the physical structure of the data center, billions inside of a data center. they have to keep refreshing. >> you look. >> at the broader maybe we just do public public rights that are involved in what you do or involved in this space. do you

say all these guys are going to win? do you think that there's going to be a lot of losers here? what do you what do you make of it? >> there'll be winners and losers because the word data centers, of course, is being applied as liberally as possible now by anyone that's involved. and all of a sudden, everyone's portfolios will mysteriously transform into lots of data centers. you know, that seems to always be the flavor. so there'll be winners and losers. but if you have long term agreements with people with investment grade ratings, i'm confident in being one of the winners. but there will be people with spec centers. and by the way, in these seats, if you have 10% data centers, why would you invest in that? to get data centers. if you want to invest in data centers, then you got to find a way to really have that exposure. >> if i asked you about what you use, will you say all of the above for energy sources? is that what you'll say? >> yes. i mean, the amount of energy we. >> all you guys say the same thing, but. >> well, what that means fossil fuel. well, what it means, practically speaking. >> is you go ahead. >> well, i mean, in a perfect world, it would be the redevelopment of nuclear capabilities. you don't have that. >> you don't have that.

>> we don't have it. >> when they're shutting down solar and they don't know what to do with all. they've ruined an entire acres of land that they can't even get rid of. those those horrible solar panels. >> solar part of it, wind is part of it. but natural gas fired generation, part of it, obviously the is obviously part of it's. >> part part of it. when you say, i'll be honest, i. >> know what i'm saying. >> okay. how much is. >> fossil gas fired? >> how much is fossil fuels? >> fossil fuels are going to be a more reliable, dispatchable. >> percentage of what you're doing. how much of it? >> well, of course we're not actually doing the power. >> i know. >> but but it's a huge part of our somewhere between coal, which is on the decline and gas are the majority, as you know, of all the power in the us, vast preponderance just that's just a fact. >> everybody says all the above and then they give a they give the woke nod to solar and wind. but it's still fossil. >> fuel. gas is likely to be the predictable the last 50 years for a while. >> yeah. because this is the world we've built. >> yeah. now we're not on the power production side, but we're utilizing it. we need you. >> have to. >> utilize what we do.

>> that's true. >> that's where you're. >> getting it, right. >> okay. >> mark, i want to thank you. we hope you enjoy the donut. >> i'm going to enjoy. >> i don't. >> give away the. >> distinction between a donut. >> and a cruller. >> and a cruller is that eggs are involved. >> oh, really? know that. can i offer one other thought? yes. for your birthday. here's here's one other birthday present. okay, here we go. watch the us canada hockey game tomorrow night. it's going to be an epic showdown. >> there you go. they already played it. >> well they did. and the us won that matchup. and now it's the championship tomorrow night. >> did you see in the first nine seconds i saw there were three a hockey game broke out at that. the at the fights. >> hockey is a serious sport. they they take it seriously. they play seriously thursday in the boston garden. >> but there's some trumpy stuff going on with canada versus the us now too. >> well there's definitely some some tensions that we've seen maybe. >> yeah, three fights in nine seconds. >> yes. that was. >> you know i hope the outcome is identical. >> we're going to have i think a nice big us win. >> i hope so.

>> thank you. it's nice to see you sir. >> thank you. >> great being here. thanks. >> next the market update as we get close to the opening bell on wall street. squawk box coming wall street. squawk box coming right back. carl: believe me, when it comes to investing, you'll love carl's way. take a left here please. driver: but there's a... carl's way is the best way. client: is it? at schwab, how i choose to invest is up to me. driver: exactly! i can invest and trade on my own... client: yes, and let them manage some investments for me too. let's move on, shall we? no can do. client: i'll get out here. where are you going?? schwab. schwab! schwab. a modern approach to wealth management. (♪♪) (♪♪) what took you so long? i'm sorry, there was a long line at the thai place.

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amazing and is something that we get to use every day. >> i. >> welcome back to squawk, the law firm that represents tesla and elon musk has now written proposed legislation that would alter delaware corporate law, and it could pave the way for musk's 2018 pay package, potentially to be reinstated. the law firm confirming to cnbc that it had in fact drafted that bill, which was introduced in the delaware general assembly on monday. a spokesperson saying the legislation was not drafted on behalf, though, of any specific client. the pay package that tesla granted to musk back in 2018, the largest ceo compensation plan in public history. based on the performance of the company, nobody believed at the time that he'd ever get there. with a potential of $55.8 billion with a maximum value. and i remember we talked about it on the air.

that video has gone everywhere. the first day that the plan was put in place. but last year, the delaware court ordered it to be rescinded. the judge said the tesla shareholders had been misled by the company's proxy materials before they were asked to vote on the pay package. tesla then went back to the shareholders and said, okay, we'll show you all the stuff that they said that was terrible. in court, shareholders voted again in favor of it and it was rejected again. now, musk has since moved the site of incorporation for his business out of the state to texas. a lot of other companies considering moving out of delaware as well, which i think is leading to some political pressure on that state, which, by the way, depends in large part on being the sort of capital of corporate america as it relates to incorporation. so big questions and a lot of economics on the line. all right. >> final check on the markets for this morning. hopefully that's it. you can see the 123 now triple digits on the dow. the s&p closed at a new high

yesterday. it by the end of the session might be at another new high. but it's down about 14 so far this morning nasdaq off a little. there's the ten year we had bullard on. he didn't sound like he necessarily thought there was going to be that many more cuts if any. make sure you join us tomorrow, the first day of andrew's next year until next year. >> thank you everybody. thank you for the birthday wishes. >> and the and the crew. make sure you join us tomorrow. squawk on the street is next. >> happy birthday andrew. >> good wednesday morning. >> welcome to squawk on the street. >> i'm carl quintanilla. >> with. >> jim cramer here. >> at post nine of the new york stock exchange. >> david faber. >> is on. >> assignment pre markets a. >> little soft. >> coming. >> off those all time highs as the. >> president teases. >> once again those 25% tariffs ten year yield about a one. >> week high. >> today 45 seven. our roadmap begins with this new tariff threat. the president signaling those levies on cars,