like the pomp. >> i think is. >> on a day. musk explained the rationale for the. email overnight, and warren buffett's berkshire hathaway growing its cash pile to $334 billion. highlights from. buffett's annual letter straight ahead. it's monday, february 24th, 2025. squawk box begins right now. >> good morning everybody. >> welcome to squawk box right. >> here on cnbc. >> we're live from. >> the nasdaq. >> market site in times square. >> i'm becky. >> quick along with. >> joe kernan and. >> andrew ross sorkin. >> happy monday everybody. here we go again. >> with the. >> wild threesome. >> we are. >> back and. >> we're back together. >> yeah. let's take a look. >> at the us. >> equity futures. >> at this hour. you saw on friday the worst performance.

>> for the averages. >> all year. >> this morning there. >> is quite a bit of bounce back. >> the dow. >> futures indicated up. >> by almost 300 points. >> nasdaq futures. >> up by 80. the s&p up. by close to 30 points. >> and guys it's been. >> 35 sessions. >> in a row. >> since you have seen the s&p. >> 500 drop by more than 1% for more than one session in a row. just this theory that as soon as things sell. >> off. everybody jumps right. >> back in. >> to buy things up. >> i think there was. >> one. >> point where we were down. >> by about. >> 5%, but that lasted about six minutes before everything flooded back in. >> that sell. >> off on friday, the. >> dow was down by. >> nearly 750 points. the s&p was. >> down by 1.7%. the nasdaq was down. >> by 2.2%. >> that capped off the worst week for. >> the dow since october. >> but again, you're seeing this big bounce. back this. >> morning and we'll see where that leads. treasury yields have. >> come under pressure. >> this has been kind of that flight to safety as you. >> saw a. >> lot of. buyers rushing in. the ten year at this point well below 4.5%. it's at 4.43. the two year at 421. there were all those questions about. >> the consumer.

>> on friday and questions about inflation. >> expectations that were. >> built into some of those things. >> 450 on thursday, 750 on friday. that's 1200. that's like. but it's still 2.5%. has there ever with the market at any given time, is it. >> 10 or 12% correction ever? >> just totally. >> out of the question. >> it really never is. >> i don't think. >> and look, if you look at. >> average stocks, they've seen a huge. pullback and a huge. drop down. yeah the. averages themselves have managed to hang in there. and that's the big question for this year whether that will continue. >> but two great years. >> i was thinking. >> about warren. it's been he's been selling for nine straight quarters. yeah it's been two. >> great years. >> but that doesn't mean it wasn't a good time to be selling into to all that strength. we will know eventually. a lot of people have said they expect choppiness for the first. >> half of the year. >> look, you got how many times have we mentioned multiples at. >> 22 times earnings? >> inflation is definitely something that is front and center again. but consumer confidence is down too. that's not that's not great either. so i'm not. but percentage

bearishness was 49%. we mentioned that last week was the highest level in like a year or something. so is that good. >> or bad. >> look people have. >> we're going to talk more. about berkshire hathaway in just a moment. people have looked at his selling and say, why does he. >> have that much cash? >> doesn't he think he's a crash is coming? >> in his letter he. >> didn't say that. >> people said. >> oh, it's not that he thinks a crash is coming, but him thinking. >> that. >> stocks are too expensive. >> at. >> the same thing. he's never going to point to a time and say, i think that the stocks are going to drop at this moment in time. he thinks things are too expensive. >> he never does things absolutely. >> perfect. >> but i bet you he wished he hadn't sold as. >> much apple as he sold. >> it's been a pretty substantially since. >> it started selling. >> probably some sins of omission is what he always likes to talk about. >> what? >> i mean. >> he's getting older, people get more conservative as they get you know what charlie said at 98, he didn't have before he passed. at 99, he didn't have near the energy he had when he was 96. >> i don't. >> know that. >> i want to say that. >> i want to say those words.

>> he's been that. >> conservative all along. >> i looked at what he was. >> doing before the 2001 crash in tech stocks. >> for years leading. >> up to that, he was very skeptical of the run that that had happened. he's he will tell you he's never going to time things perfectly. but he looks at valuations and. >> you can't know any rate cuts this year. did you think about that? >> i'm not. >> counting on anything. >> that's what. >> i mean. >> no i'm. not counting on it. >> unless they're for. >> really bad reasons. >> i hope. >> we don't. >> get any. >> rate cuts. >> because it would mean. >> the economy's tanked. >> let's talk some. >> politics in europe, specifically in germany, germany's conservative party winning the country's general overall election the week this weekend, defeating a challenge by the far right alternative for germany party of the incumbent social democrats, finished a distant third. frederick is set to become the next chancellor. he will begin talks this week to form a coalition government. he has said he won't form a ruling alliance with the far right, but he may have a difficult time negotiating a lasting partnership with the social democratic party, which swung further to the left during the campaign. now the german dax

right now, take a look at where things stand just at about now, we're at about 22.439. and of course, you know that alt right party had been supported in large part by some folks in the trump administration, also elon musk and others. so we've been all watching, trying to figure out what was going on, had that conversation about it with alex karp. >> they they had a 20% showing. 1 in 5 voters came out for it. >> this was. >> 84% of the possible voters that actually showed up to vote. so a. huge outturn in this election, it does put them in a position to be pole position for. criticizing this government and trying to make some gains in the next go around. >> right. immigration is everywhere. you know, if that issue. breaking news. apple announced it's going to work with foxconn to build a server factory in texas by 2026 to build artificial intelligence servers. apple says it will add about 20,000 research and

development jobs across the us. the company plans to spend $500 billion in the us over the next four years. includes everything from purchases from us suppliers to us filming of tv shows and movies. the company didn't say how much of that $500 billion that it had already been planning to spend. whether how much of that is actually new? and on saturday, elon musk posted on x the demand that government employees summarize their accomplishments for the week, warning that failure to do so would be taken as a resignation. soon after, the office of personnel management sent an email asking for a list of accomplishments, but it didn't include the threat of removal. the deadline is 11:59 p.m. tonight. several trump appointed agency leaders urge federal leaders not to comply with musk's order. workers at the department of defense, homeland security, education and commerce, as well as the fdic and irs, were told not to

respond pending further guidance. fbi director kash patel sent a memo to staff this staff telling them not to respond outside their chain of command, he said. the fbi is in charge of all its review processes, and president trump was largely silent about the order. he posted this spongebob meme around noon yesterday and overnight. musk posted on x that this was, in his words, basically a check. >> to. >> see if the employee had a pulse. >> and was capable. >> of replying to an email. this will get sorted out this week. lots of people are in for a rude. awakening and a strong dose of reality. they don't. get it. >> yet. >> but they will. >> in the meantime. >> the trump. administration is firing 2000 workers from the us agency for international development and putting thousands of others on. paid leave. as of. >> yesterday. >> a judge ruled friday that the. white house. >> could proceed. >> with plans to lay off employees and close down

operations overseas. >> the appointees. >> in charge of. >> usaid sent. >> an email to workers yesterday. afternoon informing them of the layoffs and the leave. there are. exceptions for people that are working on mission critical programs, as well as core leadership. >> separately. >> late friday. >> the fda began reversing termination notices for some employees who were laid off. now, the employees who are considered probationary started receiving calls on friday evening and saturday morning from the fda's human resources department. they were informed that they could return to work and would receive computer and network access by today. it's unclear how many of them of the terminations will ultimately be reversed, and i saw an interesting article in the journal today. just about all of these court cases where oftentimes the administration will go in and talk to the judge, and the judge will ask a relatively basic questions about who's getting fired, how many people are you? are you firing? if you if they had just started but hadn't really come on, are they still under a probationary period? and more often than not,

the lawyers don't have answers, which seems to be frustrating. the judges, which may not bode well for the ultimate answers. >> yeah, it's complicated and we are going. >> to see. >> how this all plays out. >> in the meantime. >> as we were telling you about earlier, berkshire hathaway out with its latest quarterly numbers over the weekend, warren buffett's firm sold more stocks during the quarter and actually grew its record cash pile to $334 billion. that was a relatively small additional add. i think it was like $10 billion more that they added over the course of that last quarter. in his annual letter, buffett did not explain why he was amassing more cash, but he did say that that posture in no way represented a move away of his love for stocks. he said. in his words, berkshire shareholders can rest assured that we will forever deploy a substantial majority of their money in equities, mostly american equities, although many of these will have international

operations of significance. buffett did signal that he plans to continue to increase ownership in the five japanese trading houses that he began buying nearly six years ago there at the trading houses. that has grown steadily over the course of time, and they've been allowed to increase their ownership by all five of those japanese trading houses. but again, very positive on america, very positive on the outlook long arc of this country. and a big kind of kiss to capitalism in the letter this time around. >> it's a. >> lot of cash. >> it is a mess. and for march madness to. >> give away just $1. >> million if you. i just don't see why. if he's. >> got that much. >> at that can't go up a. >> little bit. >> i think he really wants to. >> give away the. >> how about. make it? let's do 10 or 100. let's do factors of. >> let's let's you and i. >> do you know him? >> can you. >> you and i just checked i mea, his beloved blue jays are doing really well. yeah. >> in fact, i think you. >> get.

>> much more money if you if they do win. if creighton wins. >> yeah i'm sure he does. did you stay up last night. no. rutgers. >> no. >> oh yeah i did i. >> watched rutgers. >> you did 95 points. >> yeah. >> and. >> it's a trojan. >> it there was. >> a big run by them at the end by the usc team at. >> the end came back. >> they came back. so it was a little scary down to the end but great game great. >> some good games yesterday. there were some. >> really that wasn't. >> that late. >> stay up. >> saint john's. >> pitino really is a good coach. >> yes he is. >> hey before we go to a. >> break, one thing congratulations. >> i don't know when you put this out, but that for. >> eight years. >> you've been. >> working on this. >> but i saw it over the weekend. >> you've been working. >> on a book for. >> eight years. >> when it actually happened. >> and why did we spend so. >> much. >> time now? you're the false humility. last week we spent all week talking. >> about it. >> now you don't want to talk about it? no, i said. >> we talk about when it comes out. >> did you hear my joke? >> no. >> so he's doing. >> he's doing 1929. right after. >> he said.

>> that. >> i said, well, that's funny. i have a book coming out to 1928 and mine's coming out in september. this is coming out. and then i said like eight minutes. >> oh, look at this. an opportunity. thank you. >> where's mine? >> i have to. i don't. >> really have. >> the idea that you. have done this. >> on the sly like. >> and think about. >> i never ask people when they're expecting until it's there and whatever, but i had. >> no clue. and it's a mini series in the making. i see it, it's a limited series on netflix, i see it, god. >> bless your lips. >> hopefully jumping off buildings and stuff a lot. >> this is. >> flappers 1929. i mean, there's. >> so much story. >> yeah, this is the this is the drama. this is the soap opera of 1920. it's i think, i hope one of the first times you actually see all of the people, the real characters, the, the equivalent of the hank paulson's and ben bernanke's and all of the actors in the room talking to each other. you actually see what happened. and i think we all had a vague, or at least i had a vague notion of what had happened in that period, but i didn't. i never sort of, i don't know, in that sort of someone. >> sent in and there was some.

type of movie or little series about it, but it was terrible and it did not do it justice. so it's right. it's right. >> let's hope that it's not right because there's another crash coming. >> i say, i say, i'm writing. >> a prequel, not a sequel. >> that's so you. >> congratulations. >> i don't think i can get out. >> you don't think it'll work getting out in front of him with 1928? i mean, mine has got everything his has. okay, i actually haven't done anything. it's written squat, i talked. >> to this cnbc program is sponsored by baird. visit baird.com. >> with allegra. >> i hope you. >> can stop being sneezy without. >> feeling sleepy. get 0% brain interference for fast non-drowsy allergy relief with. >> allegra. >> it's a no brainer. >> disney's snow. >> white in theaters. march 21st. >> this is a. >> landfill w.m is transformed what you think of as landfills into engineering. >> marvels while. helping to

protect. >> the natural environment. learn more about our modern landfills at. plastic is commonly used across the retail industry to ship products. now, w.m is collaborating with the leading retailer to. >> give. these hard to recycle plastics. >> a. >> second life. see how at. >> opportunities can be hard to find. >> like catching lightning in a bottle in uncertain times. >> it's tempting to retreat. >> or simply. >> wait and see. at cme group, we empower those who act. we deliver tools to help manage. >> risk. >> and capture. >> opportunities in every. >> market. across every major asset. >> class. >> to. >> seize each. >> possibility at. >> precisely the. >> precisely the. >> new projects means new project managers. you need to hire. i need indeed. indeed you do. when you sponsor a job on indeed, it's easier for talented candidates to find it. which makes it easier for you to hire them.

visit indeed.com/hire tools designed. to help them outperform the markets. meet them at interactive brokers investors marketplace for. >> advisors advisors at. interactive brokers keep all they earn. >> on. >> our low cost platform with no ticket fees or custody charges, low margin rates and high interest earned on idle cash to get better results. get a better platform. the best informed investor you think those phone guys will ever figure out how to keep 5g home internet from slowing down during peak hours? their customers have to share a wireless signal with everyone in their area. oooh. you know, it's kinda like when you bring a really big cake for your birthday, and then there's only a little, tiny sliver left for the birthday girl. aw. well, wish her a happy birthday. happy birthday... -it's... ...to her. -no, it's me. have your cake and eat it, too. don't settle for t-mobile or verizon 5g home internet. get super fast xfinity internet you don't have to share.

forty's going to be my year.

>> the chef and all of us. >> on this week's squawk planner on the earnings calendar, we're going to hear from domino's pizza and zoom video today. tomorrow, home depot and restaurant chain cava. wednesday, lowe's, ebay, salesforce and nvidia. and then thursday, dell, hp and warner brothers. discovery. on the data front, we're going to get case-shiller home prices tomorrow, followed by january, new home sales on wednesday. then on thursday, jobless claims, durable goods orders and fourth quarter gdp revisions. then on friday, the fed's favorite inflation gauge january pce data. we're expecting some big retail earnings this week as well. some economic data later in the week as the markets try

to recover from last week's sell off. joining us now rbc capital markets head of u.s. equity strategy lori calvasina. is it almost seems like perfectly symmetrical concerns right now in terms of a slowdown and in terms of nagging inflation? you look at consumer confidence. i don't know if you know, walmart factors into that. and what happened last week. you saw walmart last week. it's part of what hit the dow with unitedhealthcare and walmart. so what's a bigger concern or is it the risks equal now or could we have both. that's all we need. >> we could have both. i mean. frankly. >> i'm a little bit more worried. >> about the consumer right. >> now in terms of my work. you know, we've. >> seen a. >> bunch of these. >> sentiment surveys. >> right, with concerning. >> data points over. >> a couple of months now. >> as you mentioned. >> we had. >> you know, the retail. >> earnings that spooked. >> people and rightfully so. >> you know, when you have a. >> big. >> bellwether come. out and the guidance isn't what people want, you have to listen. >> and on top. >> of that. >> we also had the retail sales. miss two weeks ago.

>> so we've. >> seen concern. >> reasons to be concerned about. >> the. >> consumer coming. >> from a lot of different angles. and it's interesting. >> joe i mean you. >> mentioned earnings and how we're getting. >> all these. >> retail earnings this week. i've been scouring what. >> has come out. >> so far. >> from the. >> consumer companies and the. >> conversation for a year ahead. >> outlook season. >> is really light and really cursory. so we're seeing you. >> know. >> we've got all these, you know, bad data points right coming out. and the companies are just kind. >> of. >> briefly and very quickly alluding to. >> these old themes. >> that they've been talking about for the past. >> year. >> but they're not really. >> digging into, you know. >> kind of how the quarter's. >> gone month to month and. >> how the year got started. >> we normally see that. >> kind of stuff. >> so the silence i. >> find really curious, and i want to see if. >> we're going to continue to get. >> that this. >> week. >> or if we're going to get. >> some real meat. >> i know. >> you don't. >> really talk individual issues, but what do you think happened with. >> with walmart? >> and is it is it are people worried about margins because of tariffs or. >> i think it's the outlook right. >> and you know i think that's a thing that. we've seen throughout this.

>> reporting season. >> is that. >> the. >> four q numbers have come in pretty good, right. >> like the. >> beat rates are up versus last reporting season. and we're. >> not getting a lot of downward guidance in. >> this reporting season. >> but we're not. >> getting a lot of upward guidance either. but is that crazy. i mean, there's a lot of unknowns, particularly for a retailer. if you're dealing with potential tariffs, potential taxes that could come through questions about the consumer, you'd be crazy to get out there and say, hey, everything's great. is it really as bad as the stock sell off would imply? >> you know what's interesting? >> because if you look back last year. at this time, we got a big. >> upward wave of downward guidance. >> and so companies really went out and. kind of. >> lowered the bar. >> and you know, we're. >> getting that for some companies. but we're. >> not getting. >> that generally. >> and that ended up being. >> a good. thing last year. right. because they lowered. >> the bar. >> companies were able to meet those numbers. and we had very stable. >> earnings growth estimates for. >> the year. i only say that because the former us ceo for walmart, bill simon, said he thought that people were maybe misreading this, that that the outlook was or at least what the what the company's doing right now is a lot better than what the stock sell off would. >> and look, i.

>> will say the. >> conference board, you know. >> ceo confidence survey came out last. week and i had been reading. >> week to. >> week and sort of seeing uncertainty, uncertainty. >> uncertainty overtake optimism. >> and i was actually surprised when that conference board. >> data point came out as strong as it did. so it told me optimism has been dented on the corporate side, but not derailed. at the same time, though, with all these negative consumer data points coming out, i would really feel a lot better if some. >> of these consumer companies. >> would come out and say. >> you know, in a more pointed fashion. >> things haven't changed. we're still seeing what we've. >> been seeing. >> and again, it just feels a little light like the rushing through the conversation. and we're not getting a lot of details. >> and i've done this job. long enough to know sometimes. >> it's. >> what you're not. >> hearing that's. >> most important. >> sometimes the good news, bad news does play. it does work out for us. and i could really see. >> if we. >> had continuing questions about consumer confidence in the economy. if the fed's back in the game. i could see the. market rallying even though it really is. because the economy. but they're so addicted to, you know, traders to the notion of god. >> if qe came back.

>> or if there's not, or if we were going to back to 3 or 4 rate cuts, instead of questioning whether it will be any, i could see the market actually in the face of some weakness in the economy. i could still see it doing doing well. >> but look, i think to your point. >> to the ten year yield, right, has been moving a little bit lower in here and we stopped sort of seeing this escalation. i think that was a. >> pressure point on the. market when. >> we were making that run to 5% on the ten year yields. now we're what, at like 4.4 today. >> yeah. >> that's good as well. but i will tell you, joe, the last year and a half, the hedge funds all seem to want to play this game on the fed where they're constantly dialing. >> up and dialing down expectations. and that's jerking around the stock market. >> if you. >> you know. >> if you. >> can all. >> work it out with math, if you're at 21 times earnings and let's say earnings aren't quite up as much as you want, they don't go up 15%. they go up 12%. if you could count on the multiple staying at 21 or going to, you know, maybe even going up because rates come down then, then the market could, could be sort of treading water. i mean,

are you expecting the market up this year. >> so we've got 6600. >> which is not up a ton from here, but up a little bit. you know, it's a better number now right than. >> you think. we get. >> a pullback in the meantime at 10%. >> our 6600. >> based on the idea that we're going to get a 5 to 10% drawdown. >> and so that would. >> yes, that would take you to like 5000 505,800 somewhere in there. that's very normal in this post-covid environment. this post 2022 environment, if you really start to see economic growth expectations, question and pull down in a. way that could result in something more like a 15 to 20% drawdown, and then our targets. >> not going to work, we're. >> going to have to revisit that. that's not in my base case right now. it's a risky monitor. it's a tail risk. but i will tell you, joe, on friday, i was pleasantly surprised that the gdp consensus for 2024 2025 had actually moved up to 2.3%. >> so it's still inching. >> up despite, you know, all this noise and all these concerns. >> i can't even. imagine if we got a 20% drawdown just

politically. what what what that looks like for someone who grades himself. >> right. >> based on stock market. >> you know. >> we had. >> 1 in 2018, right. >> and if you go back. >> and sort of look at 2018. >> and we've. >> we've plotted out a bear. case in. >> case we're wrong on the 6600. >> and part of that was looking back at 2018 when. >> we had. >> extremely high positioning, same way we do right now. if you look at the cftc data. >> back then it was optimism on tax. >> this time it's a lot of optimism on regulation. you also had. >> the trade war. >> that didn't really hit. >> markets until. >> the kind of third and fourth quarter when companies came out and that, you know, kind of took reporting season and said tariffs are going to cause us. >> some trouble. >> and then also went away after that. >> yeah. and but. >> then. >> you also. >> have fed concerns. >> right. it was concerns about too many hikes. and you did have economic growth. >> concerns because. >> of the fed and the. >> trade war. >> so if you got into something like that again. you could do 15 to 20% real fast. >> but we're. >> already up a lot by the time that happened in 2018, and we're

already up now too. all right lori, thank you. >> kalasina okay. coming up on the other side of this, a big deal for one of the world's biggest food delivery players. we get to bring you details after the break. and a programing note. jpmorgan ceo jamie dimon is going to be on the exchange today at 1:45 p.m. eastern time. it's a cnbc exclusive interview. you don't want to miss it. squawk box coming right back. >> at capital group. we believe in the potential energy of fixed. >> income. >> fueled by 50 years. >> of experience. our distinctive. >> approach to fixed. >> income investing has delivered strong long. term results and could power portfolios. >> to reach. investor goals. all you have to do to activate this potential energy. potential energy. >> is activate tamra, izzy and emma... no one puts more love into logistics than these three. you need them. they need a retirement plan. work with principal so we can help you

with a plan that's right for your team. let our expertise round out yours. got eyelid itching, crusties and swelling that won't go away? it could be... demodex blepharitis! and we're demodex mites. we're very common and super irritating to your eyelids... but we love making ourselves comfortable here! oh, yeah...steam time! if demodex mites are partying it up on your eyelids... it's time to eliminate the root of the problem with xdemvy. with one drop in each eye twice a day... you can kill the mites in just six weeks. xdemvy is the first and only fda-approved treatment that kills the mites that cause demodex blepharitis, a common eyelid disease. avoid touching the tip of the bottle to your eye or other surfaces to minimize contamination. wait 15 minutes before inserting contact lenses. in clinical trials, the most common side effects were stinging and burning in one out of ten patients. party's over folks....

it's not you, it's demodex mites. talk to your eye doctor today. your record label is taking off. but so is your sound engineer. you need to hire. i need indeed. indeed you do. our advanced matching helps find talented candidates, so you can connect with them fast. visit indeed.com/hire >> us based. customer service is also. 100% human. you don't. >> have to. oh. >> for those 50 and up, get two unlimited lines for $30 each. with consumer cellular. >> this is the. >> emirates. >> premium economy seat. >> economy. >> perhaps they need to call it. >> something else. >> when cyber threats target the world's data. seconds matter.

that's why the world's most trusted brands depend on reliaquest gray matter to contain threats in seconds. it's the only technology independent, ai driven platform built by security operators. for security operators. >> reliaquest make. >> security possible. >> get invested. join the club. >> as a woman, i wanted to experience. financial independence and become. financially independent in my retirement. >> join the club. last day for new member savings. go to cnbc.com. join now. terms and restrictions apply. >> welcome back to squawk box. shares of european food delivery giant just eat a takeaway are surging this morning. dutch technology investor precision cruises is offering to buy the company for $4.3 billion. it represents a premium of 63% to

friday's closing price. that's quite a premium. ceo of the company saying, quote, we are very excited for just eat takeaway to join the process process. is that how they're pronouncing it? and the opportunity to create a european tech champion company already holds a 28% stake in its competitor, delivery hero. >> all right. when we come back, much more on this breaking news from apple. this morning that it is hiring 20,000 new workers and that it plans to produce ai servers in the united states. check out shares of apple. right now, they're down by about 1.3%. and then a wrap up of the weekend's headlines from the trump administration and doj's department. mike allen from axios will join us in just a few minutes. squawk box will be right back. >> executive edge is sponsored by at&t business. next level by at&t business. next level moments. need the next it all started with a small business idea.

it's a pillow with a speaker in it! that's right craig. pulling in the perfect team to get the job done. i'm just here for the internets. at&t, it's super-fast! you locked us out?! and when thrown a curveball... arrggghh! ahhhh! [crashing sounds] we had everything we needed. is the internet out? don't worry, we have at&t internet back-up. the next level network for small business. ♪♪ i sold a pillow! thank you for calling. >> please hold. >> now that's better. trey palmer doesn't. >> have a massive call center. >> instead. >> your calls are. answered by. >> real. >> people who. know you. >> by. >> name and are empowered. >> to help. >> like me. >> hey, chuck. how are you? >> what can i do for you?

>> 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 are 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. >> get invested. join the club. >> the value you're going to get from making better investments more than. outweighs whatever the cost of the membership is. >> join the club. last day for new

get started at wonder ads.com. >> dew point. >> good morning on this monday. welcome back to squawk box. we are live at the nasdaq market site in times square. take a look at the futures right now. got some green on the screen on this monday morning. the dow

looking like it would open up about 310 points higher right about now. nasdaq up about 106 points. and the s&p 500 up about 33 points becky. >> time now. for economics and a look at office space. dom chu is here. he joins us with more on that front. good morning dom. how you doing. >> good morning. becky joe andrew. so despite. >> that push for workers. >> to. >> go back to the office. >> the stocks of. >> many of these office real estate investment trusts are still feeling a little. >> bit empty right now. >> the vaneck vectors desk. >> etf. >> heavily weighted in office reits, is now 14% below its mid-october highs. >> as you can kind of see here. >> now sl green, new york city's biggest landlord, is down roughly. >> 17% in. >> just the past three months alone. it is now 22% away. >> from. >> its record. >> highs or record. >> highs. >> highs that we saw back in november. bxp properties focuses on property in the country's biggest markets. this is the. >> company formerly known. >> as boston properties. >> the company. >> holds space in boston. >> of course, beantown. >> it's also. >> big in l.a.

>> san francisco. >> seattle as well. >> washington. >> d.c. >> and new york city. bxp is down about 12.5%. >> in the past three months. >> brandywine realty. trust is big in philadelphia, washington, dc, and. >> deep in the heart of texas. >> down in austin. that stock is roughly 10%. below over the course of the past three months. now, vornado, which is another big name in new york city. >> is down 3% in the last three months. >> brookfield properties. >> is global with space in the u.s, but also in places like. >> china and. >> germany. >> india, brazil. and down under. >> in australia as well. >> that stock is. >> relatively flat over the past. >> three months. >> cbre, especially. >> large in places like la and san francisco, is up about 7.5% so far this year. now, one more that we want to call attention to. >> is easterly. >> government properties. they've got a pretty unique story because of all their properties are tied to the federal. >> government. >> not just in washington. >> d.c. >> but throughout america as well. >> they were hard. >> hit by the doge threat. that

stock is down roughly 20% since. >> the election itself. the ceo. has made the case here. on cnbc. >> that the stock has been. unfairly punished, arguing the. >> company provides. >> leases to essential government services. >> now, later. >> on this morning in the 10 a.m. hour, we're going to turn our. >> attention to the. >> all important. >> data center reits. >> they've been a huge focal point, of course. >> becky, with the. >> focus on artificial intelligence, we'll. >> see how. >> those trades shape up in 2025. >> i'll send. >> things back. >> over. >> to you. >> hey, tom, i wonder how much of the pressure on some of those stocks is related to issues about people maybe coming back to work, maybe not coming back to work, and how much of it is related to just the idea that we're not going to be expecting to see cuts from the fed and interest rates are higher for longer in any of the loans that these companies had that they were hoping to roll over. maybe not. they may not roll over into quite as of a friendly environment as people had earlier anticipated. >> sure, becky, and that's. >> a huge point as well, because

this idea. >> that remember, for. many of. these office reits and many, many. >> just. >> rates in general, they've always been. >> competitive income producing vehicles for certain investors. >> out there. >> they are not. nearly as big in. >> terms of yield as. >> other parts. >> of the market, at least right now. >> but if we do. >> see interest. rates continue to stay. >> as you point out, higher for longer, that competitive. >> dynamic of. >> where investors kind of put their. >> money. >> that becomes a much bigger part of that story. >> as well, if. >> interest rates do start to fall. not only do you see kind of like a pickup. >> in values. >> of some of these real estate companies, but you could also see a little bit. >> more. >> of that. competitive disadvantage, right, of being in certain. places like. in cash as opposed to being in certain other parts of the market. >> so as. >> we talk about. >> the. way that. >> these office reits operate, specifically. those macro dynamics are at. >> play, but a lot of that narrative. >> still focuses on whether. >> or not people will. >> focus on commercial real estate for actually using office space, as opposed to, say, other companies like prologis that focus on transportation and

warehousing or of course. >> the data center. >> reits and of course, microsoft and some of that news earlier this morning. >> with regard to. >> whether or not they're going to cancel leases, maybe that factors in as well. >> don thank you. we will see you. >> in just a little bit. >> sure. coming up, mike allen from axios is here to talk about elon musk's email to federal workers. and apple's announcement this morning that it is spending $500 billion. that's with a b in the united states over the next four years. that's next after this. >> sector nomics is sponsored by >> sector nomics is sponsored by sector spider etf. [announcement call] final boarding call. i didn't use agentforce, the powerful ai from salesforce, so an ai agent didn't send me the fastest route to my gate, which has changed.

[airport bus engine] [whistling] i'll tell the pilot to hold the plane. they've got an app for that, dude! agentforce helps heathrow create a first-class experience. agentforce. it's what ai was meant to be. way of life. it's how he. >> helps everyone. >> stay safe. >> he sweats. >> the small stuff before it becomes big stuff. for the one being an unsung hero in a. >> building full. >> of everyday heroes is just how he likes it. the industrial grade products. >> you need. >> deliver fast. >> deliver fast. >> call, click or your shipping manager left to "find themself." leaving you lost. you need to hire. i need indeed. indeed you do. sponsored jobs on indeed are two and a half times faster to first hire.

visit indeed.com/hire cidp is no walk in the park. that's true. but i take vyvgart hytrulo. same! it's the first major innovation in cidp treatment in over 30 years. vyvgart hytrulo has been proven to significantly reduce the risk of symptoms getting worse. and my cidp can be treated with once-weekly injections that take about 30 to 90 seconds. do not use vyvgart hytrulo if you have a serious allergy to any of its ingredients. serious allergic reactions, like trouble breathing and decrease in blood pressure leading to fainting, and allergic reactions such as rashes, swelling under the skin, shortness of breath, and hives have been reported. the most common side effects are respiratory and urinary tract infections, headache, and injection site reactions. it may increase the risk of infusion-related reactions and infection. tell your doctor if you have a history of infections or symptoms of an infection. i'm hittin' fairways with the fellas. i'm hittin' the road with my number 1. ♪♪ that's how we live vyvidly with vyvgart hytrulo. visit livevyvidly.com

or talk to your neurologist. ♪♪ join the club. >> the cnbc. >> investing club is for everybody. i joined to achieve financial freedom in retirement. >> jim cramer. >> is the benefit. >> you. >> get that you can't get anywhere else. it's a great value. >> jim cramer gives you much more than you would ever get from any advisor. >> he teaches how to. >> invest versus just. >> what trades to make. >> return on investment for the club pays. >> for itself. join the club last day for new member savings go to cnbc.com. jim. now terms and restrictions apply. >> welcome back to sparkbox. breaking news from apple. just in the last half hour the company saying it's going to now works with work with foxconn to build an ai server factory in texas by 2026. so not that far

away. apple saying it will add about 20,000 research and development jobs across the united states. the company also plans to spend $500 billion in the us over the next four years. ceo tim cook meeting with president trump at the white house on thursday. the company facing the prospect of higher tariffs on its goods made in china. joining us right now is axios co-founder mike allen. and i think the big question all of this raises this morning is, is this kind of announcement enough to somehow satisfy president trump to carve out some kind of tariff relief, if, in fact, there are going to be tariffs on china specific to apple? >> yeah, it absolutely. andrew is. >> a massive down payment. and i think we're headed exactly where you're saying pulling back. on those tariffs as part of the deal making negotiating. but i'm. >> so. >> glad squawk is playing up this story. this apple announcement. >> this. >> morning which just popped 6. >> a.m. eastern.

>> all the details are up. >> the lead story. >> on axios. this is a landmark story for a couple of reasons. one. >> the effort by the. president to bring. >> manufacturing back to the us. this is a massive commitment to that. and as we. >> say in our. >> story, this gives trump the leverage to say to other companies, apple can do this. >> apple is. >> bringing these jobs. >> in. >> into the us. >> apple is investing in the us. why can't you? why won't you? and the statement out this morning from apple ceo tim. coo. about being bullish on the future of america, talking about writing a extraordinary. >> new chapter. >> in the history of american innovation. so that's one bucket. two, there's. >> an incredible footprint. >> for this. this is all across the united states. and it's part of the big story that axios has been telling that it's no longer just the coasts. look at. >> where. >> some of these big investments are. the swing states of

arizona, michigan, pennsylvania, north carolina, nevada, red states. the massive investment that you were talking about in texas, big innovation lab in michigan. so a footprint all across the country. and third, if you look at how the. >> us is. >> going to have a sustained recovery, it's going to be about building things, making things, doing that more in the us. this is a big step toward that. >> so mike, though, but as it relates to the and it's fascinating news and fascinating all the details you provided, the thing that i can't figure out is the president has been pretty outspoken about implementing tariffs against china broadly. what i'm so curious about, i think what the investor class is curious about is, do we think that there are going to be carve outs for specific companies? meaning if you bring a certain amount of business to the united states, even if you have a certain amount of business in china, that there's somehow some kind of offset or some kind of other deal that's going to be made.

>> the company carve out is a very clever idea, and i don't have a reporting on that, but i can. >> tell you that. >> that direction is where they're headed, and that is finding ways to having made this threat to. not have to carry through on it. because you and i have talked many times, squawk has talked many times about the barometers that the president uses. he's not. >> running again. >> he's less concerned about polls. he cares about the markets. he's going to care about gdp. he's going to care about a lot of the metrics and measures that your viewers do. and he was so excited about this. >> you mentioned. >> that tim cook tim apple is the president once called him. tim cook was in the oval office on thursday. >> gave him this. >> news, tipped him off. andrew, you know this president you can't people who've dealt with him over the years, they say we can't tell him something. if you tell him something, he might well go out in front of a microphone and say it. and that's exactly what happens

here. the president was so excited about this news, it had the desired effect in the president's mind on apple. and he walked in front of cameras when he was talking to the governors. he mentioned this investment coming from apple and saying that tim cook planned the hundreds of billions of dollars in investments. and the president said. >> i hope. >> he's announced it. i hope i. >> didn't announce. >> it, but of course, he knew that. >> he was locking. >> it in, and he explicitly. >> said he was. >> encouraging big. other big companies to do the same thing. so that's the tip off to what you're pointing to. >> let's also pivot to well, there's a couple of things to pivot to. one, i think is josh and just the state of play with these emails that have gone out to employees requiring updates on what they're doing, and now new emails going out on specific departments saying, actually, you don't have to send those emails, folks. what's happening? >> yeah. >> so this. >> is a. >> big message by elon musk. and

as i had conversations with the white house yesterday, there is zero. regret about the way that this was done or about this message, because this is like the they believe that across the country that. what they are doing is popular, and they believe that across the country, most people think that sending five bullets to their boss, which is what this email asked for about what they'd done in the last week, is not an unreasonable thing to ask. now, of course, in government there are a lot of complications. and that's why you saw the defense department, the fbi, saying to their workers, don't answer this like you'll be evaluated by us. because of course, if you work at the fbi, if you work in the pentagon, a lot of what you do in a week is very sensitive. and so they're going to find other ways. to deal with it. and that's the complication. but the message that elon musk wanted to send and the way this unfolded

and in my newsletter, axios am, we called it a three act play on saturday morning before the president spoke to cpac, he tweeted, elon musk asked. i guess we say now elon musk is doing a great job. i just want him to do more. a couple hours later, musk jumps on x. >> says. >> yes sir, mr. president. a couple hours later he says that this email is coming when he's going to ask everyone to say what they've done in the last week. and he says there and this was not in the final directive to the workforce. he said there it could be on pain of termination late in the afternoon. the email goes out from hr at opm.gov, the government's hr office saying, tell us what you did. five bullets. the deadline is midnight eastern tonight. some organizations putting a pause on that, but message sent, message delivered.

>> final question for you. we've got this deputy fbi director appointment. podcaster. i mean, i think he's more than a podcaster, but nonetheless, i think there's lots of questions. will he get confirmed? >> doesn't have to. >> that's the key. dan bongino is one of the most popular, most followed, most powerful of the maga podcast stars. and andrew, super important context for your viewers. this deputy position at the fbi, which doesn't need to be confirmed. the tradition is that it goes. >> to. >> an active duty agent, somebody who really knows the building figuratively, who really knows the bureau. and in this case, the fbi agents association had specifically said that they want that. now you have dan bongino, who former secret service agent, former ny pd, but one of the most

aggressive, bombastic of the podcast stars being put in this spot under the just confirmed fbi director kash patel, loyalist of loyalist. and so that's why axios is calling it trump's loyalty. first fbi that this that all the traditions of independence for the bureau of the out the window and of course the white house, the trump people would tell you that started under the last administration. they are just carrying it forward. >> does it have any impact on operations? meaning typically, the deputy, as you mentioned, i think has been somebody who's been inside that department who knows where all the bodies are buried, knows where. i mean, maybe this goes to the deep state idea also, but nonetheless, in terms of day to day operations. >> yeah, it's a very smart. >> question. >> andrew, and it's something to watch. and you can also watch it at hhs. with rfk jr. will these more political heads be rolled by the building by the people. who are there? that's going to be a challenge for them, as

secretary said at the pentagon as well, how do they get their priorities, what the president wants. >> how. >> do they get what they want when they are new to the system, the organism? it doesn't matter if it's a tv network or a government agency. there's a big infrastructure under them, and that's going to be a challenge for them, is working it. and how does kash patel, how did dan bongino, how do they build trust with the rank and file? i'm sure that the president's popular with a lot of the rank and file, and that will help, but that is what to watch. can they implement the president's maga america first agenda from the top, when there's a lot of skeptics right under them? >> all right mike thank you. appreciate it. >> have a. >> have. >> a. >> great week. >> all right. >> coming up we're going to. >> talk about. >> president trump's plans for the economy. and look ahead to this week's key inflation data. former treasury secretary jack lew is going to join us at 8:30

a.m. eastern. squawk box coming right back. >> this is the emirates. >> premium economy seat. >> premium economy seat. you founded your kayak company because you love the ocean, not spreadsheets. you need to hire. i need indeed. indeed you do. when you sponsor a job on indeed, candidates can find it easier. so you can hire easier. visit indeed.com/hire nation. >> golf has never been closer to the heart of this country. >> straight down. >> exists thanks to american manufacturing and movement to celebrate all things american made. >> we love. >> this game and we love this country. join us on. this

country. join us on. this journe is a bitcoin etf the same as owning bitcoin directly? while bitcoin etfs might offer a familiar face, they lack the true ownership and flexibility of directly investing in bitcoin. with itrustcapital you can buy and sell real bitcoin 24/ 7 with the tax advantages of an ira. real bitcoin means no middleman, no restricted stock market hours. choose the path of direct bitcoin investment with itrustcapital because access equals opportunity. invest in bitcoin at itrustcapital.com today. of your home out of your name and steals your hard earned equity. >> it's roughly 60. >> to 90 days for that person to even figure out that they're the victim of this crime. you start getting foreclosure notices and you realize you've got four mortgages on your house that you didn't even know existed. >> unfortunately, it's on you to. protect yourself. you might already be a victim. check your

title status now at home title. >> 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 design.

>> for thoughtful living. thuma. >> thank you. >> coming up, we're going to talk about the new leadership in germany after this weekend's election and how it could respond to president trump's tariff threats and the rapid shift in the us policy on the ukraine war. and later, much more on apple's announcement that it will work to build an ai that it will work to build an ai server factory in texas. cidp is no walk in the park. that's true. but i take vyvgart hytrulo. same! it's the first major innovation in cidp treatment in over 30 years. vyvgart hytrulo has been proven to significantly reduce the risk of symptoms getting worse. and my cidp can be treated with once-weekly injections that take about 30 to 90 seconds.

do not use vyvgart hytrulo if you have a serious allergy to any of its ingredients. serious allergic reactions, like trouble breathing and decrease in blood pressure leading to fainting, and allergic reactions such as rashes, swelling under the skin, shortness of breath, and hives have been reported. the most common side effects are respiratory and urinary tract infections, headache, and injection site reactions. it may increase the risk of infusion-related reactions and infection. tell your doctor if you have a history of infections or symptoms of an infection. i'm hittin' fairways with the fellas. i'm hittin' the road with my number 1. ♪♪ that's how we live vyvidly with vyvgart hytrulo. visit livevyvidly.com or talk to your neurologist. ♪♪ but it's your people. >> who define. >> your business. that's why. >> paychex just reinvented the way to find and keep the best people. >> smart.

>> streamlined hr technology assisted. >> by ai in. >> our team of experts. >> everything you need to recruit, motivate and support your employees. because your people are your business. people are your business. ♪ ("born to be wild" by steppenwolf) ♪ ♪ get your motor runnin'! ♪ (car horns blare) come on! ♪ head out on the highway! ♪ crowd: hey! hey! hey! b-12. bingo! (buttons snap) (inhaling furiously) (explosion) (car revs) (cheering and laughter) (♪♪) don't worry, girls! i've got weathertech. all together: ♪ born to be wild! ♪ for whatever comes your way, there's weathertech. and with the help of financing from capitas, you can meet all of your business goals. because at capitas, we finance the

legacy builders, the creators, the freedom chasers, the opportunity seekers. at capitas, we finance small businesses. in breaking news. tiziana life. sciences announced a significant. milestone in its. >> clinical development. program for alzheimer's disease. >> tiziana life. sciences stock symbol tlsa. >> on the. >> nasdaq has successfully dosed their first patient with moderate alzheimer's disease with a new therapy that reduces neuroinflammation in glial brain cells. this mechanism. >> of. >> action could. revolutionize the treatment. >> of alzheimer's disease. >> pioneering a new approach to. >> treating alzheimer's. >> tiziana life. >> sciences stock symbol. >> tlsa on the nasdaq. >> get vested. join the club. >> as a. >> woman, i. >> wanted to experience. financial independence. >> and. become financially. >> independent in my retirement. >> join the club. last day for new member savings. go to cnbc.com now. terms and restrictions apply.

>> in global news, germany's conservative party won the country's general election over the weekend. friedrich merz is set to become the next chancellor. he's going to begin talks this week to form a coalition government. joining us right now is megan o'sullivan, the director of harvard's belfer center for science and international affairs. she served in both democratic and republican administrations, including as deputy national secretary advisor in the george w bush administration. and megan, thank you for being here. just taking a look at these elections in germany. probably not the biggest news that the conservative party won, but that the far right party actually picked up about 20% of the vote and a very wide turnout of about 84% of the possible voters turning out for this vote. what does this mean? what's the sea change here? >> sure. >> good morning becky. >> well. >> as you said, this is definitely a step in the direction. >> to. >> the right for the german electorate, with the alternative for germany, the afd that you

mentioned. >> receiving 20%. >> of the votes. which is not just a large amount in an absolute sense, but this is a doubling of the votes that they received just four years ago. and i think it's a reflection of something we've seen in other in other countries, in the united states as well. is that dissatisfaction with the government around issues not only related to the economy, but very much related to immigration. i was in munich just a few weeks ago, and certainly you heard the dissatisfaction of more than 3.5 million refugees from ukraine, afghanistan, syria having come into germany, and many germans feeling that they haven't been well integrated and that they're they're keeping certain. >> services and. >> security from germans who have lived there for decades. how does this play out? because while they may not be able to be in power at this point, they may not make any decisions because none of the other parties will work with them at this point. they are going to move the

national discourse and change how germany does things. >> i think it's. >> correct to say that they've definitely, and their success has shed a light not just on these particular issues, but also on the polarization within german politics, particularly between east germany and west germany, where in east germany you had a very strong showing for this party that we're discussing. on the whole, though, at least with the polls that are coming out, the exit polls that are coming out today, it looks as though friedrich merz and the christian democratic union and the socialist democratic union will be able to form a government without too many other parties, and that will make for a more stable coalition, actually, than was had in the in the previous government. that created a lot of uncertainty and a lot of paralysis. so in some ways, the good news for the conservatives and for german politics as a whole and germans who wanted a

more stable government, is that the election results? you know, while definitely revealing the rise in support for this far right party, also produced a result that i think there's some hope for more stable government, which is what germans need, particularly as the presidency of donald trump presents very new challenges to germany and to europe as a whole, and particularly as it relates to ukraine, but also trade. well, let's talk about the ukraine angle first on this. we know that this government is likely to spend more on defense. in particular, they're going to have to pick up some of the check that the united states is no longer going to be picking up the tab for what it comes to ukraine. how does this change? where where do things stand right now, particularly with the negotiations that are taking place between the united states and ukraine? germany. but europe as a whole, i would say, is in a very serious moment of despair and hopefully galvanization, you know, in the sense that they

need to i should have said they should be galvanized to support ukraine, but also their own independence and their own military. in fact, the person you mentioned, friedrich mertz, who's most likely or almost certainly to become chancellor, said just today that his top priority is to be reinforcing european strength so that europe can gradually move away from its dependance on the united states. this is front most in the minds of european leaders, but it won't be easy because for decades, as we know, the europeans have been very reliant on the us for their collective defense. it's not that europe has not contributed to ukraine, and in fact, europe has spent $65 billion collectively on ukraine's defense, whereas the united states has spent 67 billion. so there has been a big contribution, but it will be very hard for europe not only to replace the united states and ukraine. i think that would be extremely difficult, but to

provide more of its own security. it will need to do incredibly hard things. one study said that europeans will need to mobilize another 300,000 europeans for the defense of europe in the in the possibility of a conflict with russia. we'll need to spend more than three, three, about 3.5% of its gdp on defense. these are very tall orders at a time when the continent is struggling economically as well. so these are going to be some of the priorities for chancellor or soon to be chancellor, and the german government, as well as its european allies. okay, megan, i want to thank you for joining us this morning. obviously, we've got more to talk about and we'll have you back again soon. great. nice to see you, becky. you too. >> it's 7 a.m. on the east coast. you're watching squawk box on cnbc. i'm andrew ross sorkin, along with joe kernen and becky quick, and we've got some green on the screen. dow up close to 300 points right now. among our top stories a biggie.

apple announcing plans to build a quarter million square foot factory in texas. company says it's going to happen by 2026 to make artificial intelligence servers. the move expected to add about 20,000 research and development jobs across the country, the company saying it plans to spend $500 billion in the united states over the next four years, though that figure includes everything from purchases from us suppliers to us filming of television shows and movies for its apple tv+ service. the announcement coming after apple ceo tim cook meeting with president trump last week. so it could be worth doing some math to try to figure out actually how much of that is new money in truth. meantime, elon musk posted on x over the weekend a demand that government employees summarize their accomplishments for the week, warning that failure to do so would be taken as a resignation. then, soon after, the office of personnel management sent an email asking civil servants for a list of accomplishments, but it did not include the threat of removal. the deadline is 11:59

p.m. tonight. and then there are some agencies saying disregard it completely. this goes to a little bit of the, you know, move fast and break things and then potentially sort of go back and fix them afterwards. shares of european food delivery giant just eat takeaway surging this morning. dutch technology investor process is offering to buy the company for $4.3 billion. it's a 63% premium to friday's closing price. >> let's andrew mentioned the futures. we are seeing some some pretty good snap back today 1200 points on thursday and friday. the dow lost. let's get to dom chu with a look at this morning's pre-market movers. hey dom. hey good morning joe. good morning becky. good morning andrew. let's start with domino's pizza though shares are lower after reporting quarterly earnings that were just shy of analysts expectations. >> the shares. >> are. down about 3.5%. same store sales growth came. in at. four quarters of percent here,

below the forecast. >> of more than a. >> 1% increase. >> the company also. >> raised its quarterly dividend. >> by 15%. the shares. >> are up just over 3% over the course of the last 12 months or so. so domino's pizza. >> again under. >> pressure on earnings. meanwhile, alibaba shares are lower today despite an. >> upgrade to. >> overweight from equal weight over at morgan stanley. analysts there said that they underestimated the surge in ai driven cloud. demand since deep sea emerged. last month. the chinese e-commerce giant said it plans to invest at least $52 billion in its cloud computing and ai infrastructure divisions over the next three years. so alibaba shares down about almost 3%. and we'll finish with. >> berkshire hathaway. >> those shares. >> are up. >> just about maybe 1% or so after its fourth quarter earnings surged on the strength of its insurance business and higher investment income as well. buffett sold more stocks in the quarter, growing berkshire's cash pile to a record $334 billion, but did fail to explain why. in that highly anticipated. >> annual shareholder.

>> letter, the. >> company did say that. >> they will deploy a majority of their money in american. % ownership. >> of cash equivalent assets unless. >> there are better alternatives out there. so berkshire. >> hathaway. >> shares up. about 1%, joe. >> and by. >> the way $334 billion is roughly the size of bank of america. >> so it's a pretty big cash pile. >> i'll send things back. over to you guys. >> it is. >> seems like he always kind of says he's always got since he likes things that appear cheap. a lot of times it's been hard over the. i think he's complained and not complained, but. >> he has. >> acknowledged that the more money you have, the harder it is to put it to work. yeah, to put it to work. tom. thank you. >> you got it. >> when we come back, new york congressman richie torres will join us on. who he's endorsing in the new york city mayoral race and the budget. that's the budget battle that's taking place in congress right now. and later, former treasury secretary jack lew will be our special

guest. that comes at 830 this morning. squawk box will be right back. >> 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 solutions. >> to build the. >> portfolios of the future >> portfolios of the future today. alternatives by franklin when i started walton goggins goggle glasses, i had no idea what i was doing. but godaddy airo does. using ai to build a logo, website and social content. so i can let the world know, if your goggles ain't goggins, they don't belong on your noggins!

district and find it exclusively in professionally sourced listings. download the realtor.com app today. flightscope mevo plus is the ultimate indoor and outdoor golf launch monitor and simulator. it gives you the club and ball data you need with the accuracy you demand. plus comes with ownership of simulated golf courses for you to play and practice at home. mevo plus is an essential golf partner to help you improve and understand your game better. put more purpose in your practice. to learn more and get your mevo plus. shop now@flightscope.com. don't miss a cnbc premiere episode of shark tank tomorrow, 9:00 eastern cnbc. >> get invested. >> join the club. >> the cnbc investing club is for everybody. i joined to

achieve financial freedom in retirement. jim cramer is. >> the benefit you get that. >> you can't get anywhere else. it's a great value. >> jim cramer gives you much more than you would ever get from any advisor. >> he teaches. >> how to invest. >> versus just. >> what. >> trades to make. >> return on investment for the club pays for itself. >> join the club. last day for new member savings yeah, it is weird that we still call these things phones. well, yeah. they're more like mini computers. precisely, next slide. xfinity mobile customers are connected to wifi 90% of the time. that's why our network has powerboost with wifi speeds up to a gig where you need it most. so, this whole meeting could have been remote? oh, that is my ex-husband who i don't speak to. hey! no, i'm good to talk! xfinity internet customers, cut your mobile bill in half for your first year with xfinity mobile. plus, ask how to get the new samsung galaxy s25+ on us.

to send info kit.com. >> physicians mutual. >> physicians mutual. >> all right welcome back everybody. markets are going to be focusing on some more retail earnings this week notably home depot and lowe's. also from ai chipmaker nvidia. and then later in the week attention will be on the fed's preferred pce inflation data. we're going to talk some markets right now and some stocks to watch with stephanie link, the chief investment strategist and portfolio manager at hightower advisors. of course, she's also a cnbc contributor. and steph where where do you think we stand right now? friday was the biggest sell off that we've seen all year for all three of the major averages. you had united healthcare being blamed for a

big part of this, but how do you think the trade is going to fare this week? yeah, i mean i think, becky, the markets don't like uncertainty. >> and we've have. >> a little bit of it right now. so we're in a tricky spot. we got some of the economic data points in the last two weeks have shown a little bit of a slowdown. you're running at about a gdp number of 2.3%, down from about 2.9%. i wouldn't look too much into the january data, though, because we did have really challenging weather, and we also had the california fires. so there could be some noise in the numbers. i think two, 2.5% is reasonable for this year. of course, it is down from three two and 3.4% over the last two years. and we're going to be a little bit slower this year, simply because we just don't have the fiscal stimulus as a tailwind. but there were other things last week that, you know, kind of people were talking about as well. that caused a little bit of anxiety. not only was it the data, but it's also the unknowns about the tariffs.

it's also about the tax cuts maybe being delayed, government layoffs, maybe government shutdowns. so there's a lot of things to kind of think about. and we were up 23% last year in the s&p 500. and so the normal average for the total return for the s&p is 7.7%. so we've had a good couple of years. and now we have a little bit more volatility. but i think earnings are still poised to grow about 7 to 10% this year. and that's pretty good for the overall market i think. do you think we've seen the highs for the market. or you just think it's going to be a little bit of a rougher ride. >> i think it's going to be a rougher. >> ride for sure. >> i think we could eke. >> out maybe mid single digits, maybe upper single digit growth in the s&p. and that is mainly because i think earnings are going to grow about seven and a half to 10%. what i do think is interesting, becky, is that we are seeing not only a broadening in sectors in the s&p financials and energy materials and that sort of thing. we're also seeing

china up 20% this year and europe is up ten. excuse me china is up 20% this year. europe is up 10% this year. so you're seeing a broadening out. overall i think that's very healthy though. let's talk about what you're going to do this week and beyond. you own shares of home depot. so we're getting those earnings coming up this week. and you own shares of unh. what are you what are you going to do with either of those stocks? yeah i mean, home depot. look, i think it's just a challenging time for housing, but i do think that home depot has done a really good job in a challenging environment. we've had eight straight negative same store sales numbers. they've never seen that ever in the company's history. i think at least at the very least you have easy comparisons. but i think they're doing a really good job with the pro business. and that's over 50% of their revenues. so that's a good mix there. >> as opposed to. >> lowe's which actually has more do it yourself. so i think

home depot should do better than lowe's. but we're all waiting for the housing environment to get better. and you need lower interest rates for that to occur. i still think, though, that housing is a great long term theme because we are 5 million homes short in this country. and the home builders, if you talk to them, they've been under producing for 15 consecutive years. so i do think that housing, when rates come down, housing will actually recover. and in the meantime you need to renovate and you need to replenish some of the things in your home if you're not buying a new home. and i think that sets up well for home depot. on united healthcare, it's a challenge. certainly there's a big overhang. first and foremost, the company hasn't even confirmed that there is a new launch, if you will, by the doj. it looks like it's civil versus criminal. that means likely more of a monetary settlement versus changing of the business. and they've got 20.7 billion in free cash flow. so they can afford to have have

a monetary settlement. obviously this is not good news, but coding has been an issue for years and years in this industry. and they actually now have new plans in place, new rules in place that they're putting in. they're phasing in between 2024 and 20 to 2026. that should help with this situation. so i just think it's six and a half times ebitda. yeah. what do you do with that stuff. i'm going to buy it when i can. i'm restricted just because i talk about it. i've been talking about it for a couple of days now, but i will buy it six and a half times ebitda. becky for the best in class company in the managed care space. historically that number has been 12 times ebitda. so you've really cut the multiple in half as well. best in class is measured. how? market share and execution management. i know the industry is under a lot of stress right now. but within the industry these guys are the best at what

they do. all right stephanie link thank you. thanks. >> coming up next, new york congressman richie torres endorsing andrew cuomo for new york city mayor. even though he hasn't officially entered the race. he's going to join us after the break. he's been taking on kathy hochul and making some fascinating comments about what's happening in the state of new york, in the city. and then small caps in a rut. the russell 2000 trading below its 200 day moving average. a closer look at the move lower and what it could mean for your portfolio. squawk box coming right back. >> most power players on wall. >> street rated 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 stock has been on a history

making tear, officially surpassing microsoft to become the world's most valuable company today. however, many investors are worried the tide is changing. nvidia's day in the sun may soon be coming to a dramatic end. and as a result, i predict a different under the radar stock is primed for big potential gains from this moment on. to get its name and ticker 100% free, simply visit the 100% free, simply visit the website below. gold bond believes touch says everything. it says... i got you. and i'm never letting go. ever. gold bond. get in touch with irresistibly touchable skin.

agent proposals because when agents compete, you win. >> don't all. >> apps do that? >> not really. trust the number one app real estate professionals trust. download the realtor.com app today. >> my first ambition in life. >> was to be a pro athlete. >> my leadership skills came from my time on. >> the. >> field as a quarterback. >> i first person nfl vr. >> game allows fans to see what it's like to be their favorite athlete. being able to see. >> an idea turn into a company. is one of the most. fulfilling things that you ever. >> could experience. >> new york congressman richie torres endorsing andrew cuomo to be the new york city's. next mayor. congressman torres joins. >> us this morning. >> to talk. about this and. >> much more. >> i, i think that we have pointed out many people are able to have pretty solid comebacks in politics. in the further we get removed from. i don't even remember. i remember some of what it was. but i also remember as a governor, he was pretty well thought of in terms of just being of operations, of being,

you know, there's i think a little bit of. nostalgia for, for how he was. >> as a. >> governor. >> versus the. >> the current governor. why are you doing it? he's he's definitely like a centrist in terms of immigration and israel and other issues like that, much more centrist than some parts of the democratic party right now. >> well, look. >> i mean, andrew cuomo. >> is a common sense. democrat who represents. >> that's an oxymoron. >> well, no, no, it's. >> not because most democrats. >> do have. >> common sense. and for me, the two most important virtues. >> in. >> politics are competence and courage. and andrew cuomo has. >> the competence to run. >> new york. >> city in a moment of crisis. and he has the courage to stand up to the extremes. >> of american. >> politics, whether it's the far right or the far left. you know, there's. >> a mayoral. >> candidate who openly identifies. >> with the democratic. >> socialists of america. which celebrated the mass murder of jews on october 7th. and so when it comes to confronting political. >> extremism in. >> new york, when it comes to. >> confronting the crisis.

>> of crime. >> we need. >> not a nice guy. >> but a tough guy like andrew cuomo. >> is this. >> is this an endorsement of governor cuomo or an indictment of mayor adams, in your view? >> look, it's both. you know, new. >> york city. >> is. in crisis for. >> deputy. mayors have resigned. >> the city is less safe than it should be. >> you know, in the subway. >> system. >> the. >> murder rate is. >> at the. >> highest level. in 25 years. >> and what we. >> need now. >> more than more than ever, is the kind of stable and strong and steady leadership that governor cuomo can provide. and the effectiveness of andrew cuomo. >> as an executive. >> need not be taken on faith, right? it is a fact that the redevelopment of moynihan train hall is a fact. >> the redevelopment of laguardia. >> airport is a fact. >> the redevelopment of javits center. >> is a fact. >> and so. >> we as new yorkers, every day we live and see the legacy of andrew cuomo as a great builder of new york city. can i ask you just about atoms right now? sure. and how you think about

him? i have made the comment that he that our mayor is being held hostage by the white house. i mean, it's sort of a remarkable situation because he could be prosecuted at any moment if he does something that this white house doesn't want. >> the congressman is probably in favor of the you call it a quid pro quo. the quo that, that that trump wants from adams. you one as well. and that's tightening up immigration and crime. >> i want a. >> mayor. >> who can. >> govern independently of the far right. and donald trump. >> represents the far right. and i found it. what i find. >> striking is that donald trump. >> made the decision not to pardon. eric adams or to or to permanently drop the charges, but only to do so temporarily. and so the fear of a re indictment keeps mayor adams permanently. >> under. >> the thumb of donald trump. i've also made the argument, i think, politically, at least in this city, it hurts adams rather than helps him insofar as the citizenry of the city says to themselves, you know, we can't have somebody who is directly

under the thumb of somebody else. but i understand there's part of me that can rationalize why adams would accept a deal. >> but i'll come back. >> to this. >> the reason you left the progressive caucus was because the far left of your party is soft on immigration, not as pro-israel as it should be, soft on crime. so the things that trump is, is demanding from mayor adams are the same things that you want. and the reason that you i mean, you call it far, right. what is immigration? far right is crime. far right. why are those far right? >> i would argue the attempt to defund medicaid and. >> the. >> tune of $880 billion. >> defunding the police, i don't know. >> but but. >> i. >> but i would say the issue. >> is not his cooperation with the trump administration, which is a policy disagreement. the issue is the quid pro quo like that. >> to me is. >> profoundly unethical. and we have a mayor who's lobbying not for the interests of new york. >> are you. >> running for governor. >> self preservation? >> are you running for governor. >> considering a run for

governor? >> considering. and what would you continue to distance yourself from that flank of the from the aoc? i don't know, what do you want to call it from the progressive caucus. i'm not to blame them for losing. >> the election connects him to the progressive. >> left. >> because he left? >> yeah, he left the progressive caucus, right. >> particularly on the issue of israel. >> after october 7th. >> yeah. well, i hope that that, among. other things. >> or immigration or not so much. >> look, for me. the no state saw a greater swing toward donald trump than new york. and that, to me, is not a coincidence. >> that's a. >> consequence of failing governance on the part of kathy hochul. like the majority of new yorkers, feel we're heading in the wrong direction. we feel our quality of. >> life. >> our public safety, our affordability. >> are declining, our cost of taxes are rising. >> we're paying more and more. >> for less and less. >> in 2014, the state budget was $142 billion. today, the governor proposed a $252 billion budget. there's not a single new yorker who has seen a $110 billion improvement in the delivery of government services. i got maybe a complicated one for you, especially if you want

to run for governor. what do you think of congestion pricing? look, it's a necessity because congestion pricing. >> would generate. >> about $1. >> billion in revenues. >> which is a bondable funding stream for a $15. >> billion capital investment in the mta. >> and for me, the preservation of our public transit system. >> is one of the most important. >> i say complicated because obviously you're unpopular. you're going to require votes from folks upstate and in westchester and long island and other places in new jersey. >> you know, even people who are in the boroughs here who now have to pay a toll and a tax where they never did before. i mean, it feels like it hits pretty hard on the heads of blue collar workers in particular, who have to come into manhattan for their jobs. >> look, i would never downplay or. deny the cost, but, you know, the future of our city depends on a fully funded, functioning public transit system. our public transit system has over $100 billion in capital needs. and i feel it's. irresponsible for donald trump to create a $15 billion hole in the mta's capital budget without an alternative that fills the

gap, i think it's going to have any economic impact on the city. that's negative. i mean, some people would argue that it could create a negative impact. if you feel like there's less people that can get into the city. other people would argue that you can create the productivity gains as a result of cars being able to move in and around, and actually the public transport system working better, that that unto itself should make the city a lot better. it's hard. it's too early to tell. i mean, we know that there's been, you know, congestion has been radically reduced in the central business district. emergency times have improved. but, you know, it's too early to tell. but ultimately, preserving the public transit system should be foremost among the responsibilities of a governor. >> how do you get people who are using it to actually pay, instead of jumping over the turnstiles and not paying on the busses? >> it's not either or. i think it's all of the above, but. >> i agree we need to crack down. >> on fare evasion. >> congressman. thank you. >> always a pleasure. >> it's good to have you in. and you're nearby. yeah. you could be here. you could be here easily most times. >> on monday mornings on your way to dc. yeah. what did you

do. >> last week? can you send me. can you send me a list of what you were doing last week? was there did you get a lot done? >> i did, i. was in the district. >> okay. go on. >> and just advocating. >> top five, are you going to have to send an email to elon or. no. no, because i don't i do not report to what about his what about your staff? no. my staff reports to me and i report to the people of the bronx. what do you think of these emails? >> what do you think? >> elon musk is out of control. look, i i'm all for removing fraud, waste and abuse from the government. but that means applying a scalpel. he's applying a machete. i mean, he's shutting down agencies even at the cost of violating an act of congress. so i strongly disapprove of what he's doing. okay, come on back. we'll of course, debate it more. you bet. >> thank you. congressman, when we come back, small caps in focus as the sector enters correction territory. we've got a breakdown of what's driving that move next. and then president trump's idea of adding bitcoin to the sovereign wealth fund. why? anthony pompliano

says it is the single most important thing for crypto assets at prices. squawk box will be right back. >> and with ai. >> we can look at so much. >> more than sales data. see that. predictive analytics? >> how long have you been doing this? >> as long. >> as we've been. >> with bdo. >> people who know know bdo. imagine a switch that could wipe your personal data off the internet with one click incogni stops identity thieves and protects your privacy. turn on one switch to limit unwanted robocalls and spam emails, and to reduce exposure to data breaches. switch on peace of mind, go incognito and get 55% off today.

off today. >> when you finally decide the global personal mobility market is projected to hit 40 billion by 2030. damon is built for this moment. with a bold vision for electric personal mobility, we're setting new standards in safety, intelligence and accessibility. from travel to take out and transporting goods. damon offers versatile solutions for both personal and business needs. damon, pushing the charge in personal mobility. making. >> better investments more. >> than outweighs. whatever the cost. >> of the. >> membership is. join the club. >> membership is. join the club. last day for new member savin one scorching heatwave will leave me powerless

to cool my insulin. - when the storm rolls in, my time to find a pet-friendly evacuation center will have run out. - i'm relying on luck, but who knows if it'll be on my side. vo: when it comes to disasters and emergencies, it's not a matter of if, but when. take control. 1. assess your needs 2. make a plan 3. engage your support network let's prepare so we all have a better story to tell. glass of wine, look at the ocean and we feel like we're in heaven.

>> i. >> welcome back to squawk box. small cap stocks hitting a rough patch. the russell 2000 had its worst session on friday since the december 18th, falling 3%. frank holland joins us now with more on all of it. good morning. >> good morning to you, andrew. so small caps like the rest of the market look set for a rebound today. russell 2000 futures moving higher up over three quarters of 1%. but of course on friday as you mentioned the russell had its worst day of the year moving at 10% below its 52 week high. that happened back in november after a big post-election pop as part of a trump trade. you can see here worst performing indices since it hit its 52 week high. also worst performer since the inauguration, down more than 3% since the inauguration. again worst performer the major indexes in both of those time frames, so that five year inflation rate of 3.5%, the highest since 1995. that's the five year outlook from the michigan consumer sentiment read, was one of the reasons for

the decline. tariff concerns also another reason, both of them very troubling for the interest rate sensitive small caps. it's really a trade that's dominated by cyclical sectors. the concentration of financials, industrials and materials in the russell is considerably higher than both the s&p 500 and the nasdaq 100. probably not a surprise there. that inflation rate is only added to the lack of clarity about when or even if we could get rate cuts. one of the reasons we have seen a major shift in investor sentiment. state street says small caps have seen net outflows of nearly $1.5 billion year to date, after seeing inflows of over $11 billion following the election. you see the numbers right here. so again big shift when it comes to sentiment coming up this week we have a number of notable small cap names reporting earnings that have seen their shares under pressure in recent weeks. they include chip maker ambarella. you can see you don't see it right here. but those shares up about 8% off their 52 week high. meme stock amc and beyond meat, all of them well below their 52 week high. >> okay, frank. appreciate it.

transports also moved into correction territory. and that leads, i think, a bit to the question of do we think that the sector is ultimately rebounding? >> well, you know that's a great question. so if you look here on friday, you see a lot of big time transport names under pressure. fedex a key dow transport component also expediters down here trading lower. but then if you look at today you are seeing a rebound. now one of the reasons for the declines on friday was kind of the amazon effect, at least on fedex old dominion xpo. these are all less than truckload truckers. amazon posted a job for an amazon freight ltl manager, leading to a lot of concerns about these stocks. but you can see if you look at the pre-market today, we are seeing a rebound when it comes to these names. fedex really the exception. but some rebounds when it comes to these names. a lot of analysts putting out notes believing that that risk is overblown. and every couple of years we see sell offs in transports related to amazon risk. important to note, though, expeditors kind of a different story. allianz raising their stake in expeditors this morning. that news crossed the wire this morning. those shares up just about 3.5%. one of the leaders in the s&p 500. but the

amazon effect hitting transports. analysts saying it was actually overblown and expecting a rebound. actually an upgrade from stifel when it comes to a number of these same names. okay. >> frank allen, thank you sir. thank you. appreciate it. >> all right. >> coming up we're going to talk crypto with pompe anthony pompliano. up next though the cnbc change makers list with out julia boorstin has a preview. hey julia. >> joe good morning joe. >> 50 women driving change. >> across everything. >> from ai. to education. healthcare to entertainment. we'll reveal the list that's we'll reveal the list that's coming icy hot. ice works fast. ♪♪ heat makes it last. feel the power of contrast therapy. ♪♪ so you can rise from pain. icy hot. what if you could invest in a future where skin cancer treatment is noninvasive and relatively painless? medicus pharma's groundbreaking solution delivers chemotherapy directly to the tumor site, offering a mostly painless alternative to invasive surgeries.

with the skin cancer treatment market expected to exceed $20 billion by 2030. medicus is poised to meet the demand for cost effective non-surgical options. now advancing phase two studies. medicus pharma, leading the charge in skin cancer innovation. >> fda approved treatment. >> for this disease. >> now. octapharma is racing. to become the first biotech ever with a drug to treat ncp. okeyo the first. >> to initiate. >> a phase two clinical trial for this disease. lead clinical site is tufts medical center. >> okeyo pharma's. >> drug, if approved by the. >> fda, would. >> be the first ever for ncp. >> be the first ever for ncp. okeyo the global personal mobility market is projected to hit 40 billion by 2030. damon is built for this moment. with a bold vision for electric personal mobility, we're setting new standards

in safety, intelligence and accessibility. from travel to take out and transporting goods. damon offers versatile solutions for both personal and business needs. damon, pushing the charge in personal mobility. faster than ethereum and at a fraction of the cost. whether it's fueling meme coin mania or building infrastructure for high frequency trading networks on wall street, developers are choosing the solana network. and now osprey brings you a tradable ticker for solana. don't let solana fly by. you can start investing in it right from your brokerage account or ira. >> osprey funds. >> your trusted. >> guide to select crypto. >> this is the emirates. >> premium economy seat. >> i don't.

>> economy. perhaps they. >> need to. >> call it something else. >> get vested. >> join the club. >> as a woman, i wanted to experience. financial independence. >> and become financially. >> independent in my retirement. >> join the club last day for new member savings. go to cnbc.com now. terms and restrictions apply. >> today we reveal the 2025 cnbc changemakers list. our julia boorstin joins us right now with more. hi julia. >> hi becky. we are spotlighting 50 leaders. >> transforming business. >> and society. >> our list. >> includes ceos. founders and executives. selected from hundreds of nominations. based on their reach, impact and. >> signature achievements. >> in the past year, driving change in their organizations and beyond. the 2025 changemakers spanned 14 sectors, including. 12 startup founders,

leading companies with a total valuation of more than $ billion. they've raised more than $2 billion. nine public company ceos oversee a combined market cap of about $385 billion. >> three women are leading nonprofits. >> two women. are leading tech innovation through government. and three women are shaking up sports. this year's list includes four founders taking aim at women's health and menopause. and five women are shaping artificial intelligence technology. >> each has. >> driven meaningful change in the past year, aligning purpose and profits. and this group is leading the way for other female changemakers. majority of women on our list say that at least half of their direct reports are women. you can find. >> out more about. >> our cnbc. >> changemakers at cnbc.com. >> changemakers, becky.

>> julia. what are some of the key trends this year? >> one thing we saw. >> consistently across. >> all. >> the different industries represented. >> on this list is this idea. >> of doing. >> good and doing. >> well at the same time. >> so many. >> women on. >> this list. >> are purpose driven. >> so what. >> they're trying to. do is align purpose and profits. and we. >> saw this. whether it's. >> with health care. there is a woman named toyin ajayi who runs a company called cityblock health. and they're. >> working to treat. >> low income patients in a more. cost efficient way by really making sure. >> that their whole health. >> is, is, is, is addressed, including. mental health. and then. >> you have people like jennifer garner. >> who yes, she's. famous as an actor, but. >> she also. >> co-founded a company called. >> once upon. >> a farm that is creating healthy food options. for kids. >> they did. over $100. >> million. >> in revenue. >> and what she's figured out. >> is in the success. >> of this. >> company, she could also have. >> a huge positive impact as well. >> julia. thank you. congratulations, and we look

forward to seeing the rest of the list. >> coming up. lots of news in the crypto world to discuss, including one of the biggest ever crypto heists. anthony pompliano is going to join us next. and then later, former treasury secretary under president obama. jack lew is going to join us to talk inflation. doge and much more. squawk box will be right back. >> cnbc changemakers is >> cnbc changemakers is sponsored by only servicenow connects every corner of your business, putting ai to work for people. pfft ... every corner? every corner, nick. ow! so kate in hr ... hey kate! ... can focus on people, not process. patty in it is using ai agents to deal with the small stuff, so she can work on the big stuff. and ai helps jim solve customer problems before they're problems. oh. so we all work better, together! my work here is done. excuse me, which way back?

connection to a ball, a club and a single purpose. it's a. release from the noise, a respect to the silence of the course. we love this. >> game. >> because we need. >> this game. >> straight down celebrates the sound of. >> the game. >> buying a car is kind. >> of a big deal, and you deserve something you love because it's where big life things happen. and little ones too. this is your car. and sometimes your office. oh. it's okay. we're good. and you're going big places. >> wait. >> where are you going? at cargurus, we get it as the number one most visited car shopping site with the biggest selection of cars. we make sure your. >> big deal. >> is the best deal.

>> 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. >> get a. >> better platform. the best informed investors choose. our xfinity network is built for streaming all the stuff people love. how can it get any better? -i'm just spitballin' here, but, what if we offer people apple tv+, netflix and peacock? for one low monthly price. -yes. so, people could stream the shows they love. and we could call it... xfinity streamsaver! mmmmm. what about something like: streamsaver? ooooooo. -i love that. add streamsaver with apple tv+, netflix and peacock included for only $15 a month... and stream all your favorite entertainment, all in one place.

the largest crypto heist ever. joining us right now to discuss the crypto market and what's just happened. anthony pompliano is the founder and ceo of professional capital management and author of how to live an extraordinary life. this week, anthony is hosting new york bitcoin investor week, which we'll get to as well. good morning. so how much should we worry about the safety or

security if you will, of crypto after this situation. well look anytime. >> that you have a. >> hack people obviously. >> get worried. >> about this. but the way that i described the treasury and the. >> fed has never been hacked. >> the further you get away from the creation of. >> the money point. >> then you get less secure. banks have been hacked, armored cars have been hacked, or people have had money stolen from their wallet. same thing in crypto. the blockchain itself, the bitcoin blockchain has never been hacked. but if you go and you take that, you. >> put it in an. >> exchange or you put it in some sort of custody solution, those can get hacked. and so i think it's important to pay attention to. the most impressive part to me, though, was this is a 1.4, $1.5 billion hack. customers obviously were worried. they ran to the exchange. they withdrew $4 billion. no problem. and so obviously the exchange had the money. usually what we've seen is when these things happen, the exchange gets caught, you know, not having the money or there's some sort of issue. but i think that really the system kind of worked how it was supposed to. and they're going to work to try to recover that 1.4 billion that was taken from. what are you thinking right now, just in terms of price of bitcoin? we keep looking at it. it's off the highs. you know some people have

talked about it going at $250,000 half $1 million $1 million. where are we on that journey if that journey is right, we've had other people come on and say, there's a flaw at 70,000. and we still have these big debates about strategic reserves being built, but we also have big questions about what the federal reserve is going to do. so i think if you look. trend not specifics, right, everyone's going come out with these price targets. i have no clue where the price is going to go in terms of exact number. but what i do know is that in these bull markets, historically, we've seen very big drawdowns. in 2017, bitcoin went up about 20 x, but there were six different drawdowns of 30%. >> on the. >> way to that 20 x in a single year. what we've seen lately is actually those drawdowns are much more muted. so you're getting about 15% drawdowns. and so what that tells me is one, there's a persistent bid for people who want bitcoin. but second is that there likely is going to be less volatility to the upside as well. right now the beauty of bitcoin is that less volatility to the upside means that maybe we go up ten x off the bottom. >> we just talked about it last week anthony that finally it's

acting like something that. almost could be used as a currency because it's been 95,000 basically. for eight weeks. >> do you. >> think if the fed doesn't cut this year is there any reason for bitcoin to go up. it's so i mean it just to me it. >> looks. >> like every. >> time it looks like an easing cycle is coming. that's when it goes. and when it looks like it isn't. even though it's counterintuitive because you get a hot inflation number. that's why you're supposedly own things like gold and bitcoin because of inflation. but a hot inflation number means the fed doesn't cut. so and then and then bitcoin goes down. >> yeah. there's this great study done. >> by this. >> guy sam callahan. >> what he basically said was bitcoin is the most sensitive asset to global liquidity. so global liquidity is really important to pay attention to. >> well that's just a. risk on. >> thing to a point. now the other thing i'm paying attention to is this idea that's being popularized by jim bianco, which. >> is the. >> mar-a-lago accord. and basically the idea is that the dollar is too strong, and instead we're going to use we're going to use tariffs, we're

going to go and we're going to use the sovereign wealth fund. and then we're also going to get payment for security. those three things. the general idea is to reduce the debt, get interest rates. >> down and. weaken the dollar. >> if we're able to do that, i think that that would be very good for. bitcoin and for stocks. and so the question is how successful are they going to be in implementing this plan. we know the sovereign wealth fund is coming. we know that they're implementing the tariffs. can they get the payment for security in europe is another question. but i think that these are all things that they're trying to do. and that would be good for asset prices. the sec dropping its case against coinbase. how significant is that in terms of what you think is a relatively, i imagine hands off policy at minimum for the crypto industry, at least for the next three and a half years. yeah. so coinbase specifically, i don't think many people were not buying coinbase stock because they had this lawsuit going on or this regulatory issue. and when the lawsuit was dismissed, you didn't see a big pop in the price or anything. so i don't think that from a company perspective, people were really worried about it. it's kind of par for the course. if you were a public company in

crypto, you likely had a tussle with the regulators. but what i do think it does is it signifies a changing of the guard. right. you're going to drop this and they're saying, hey, moving forward, we're going to create clear rules and regulations. we want to actually encourage this innovation. we want to be supportive of the industry. and so the dropping of that case is that's a big part, because the industry decided to support trump and put a lot of money into this administration. look, one of the weird in this administration. yeah, one of the weird things about, i think business and finance is people have become much more political. and when i get asked why did people become more political? i always say that i don't think business and finance people were more interested in politics. all of a sudden. i think what happened is that politics and regulators started to meddle in business and finance, and those people realized either we start to participate here or we're going to get steamrolled. what do you make, though, of just a broader conversation about money and politics? because clearly the money is what's had a huge impact, right? there was not a lot of money going into, you know, the biden administration. and they had whatever their view was of crypto. now there's an administration that had a lot of

money put behind it. yeah, money in politics is a really interesting thing because on one hand, you have the person who actually raised less money and spent less money became the president in this election. but the other hand, definitely money is something that is going to change people's mind. but i think that the more important thing for trump and his administration is that they all actually own these assets. if you go through the cabinet, if you go through a lot of the nominations, they own bitcoin. and so is that not trouble you, though? because i think that you and others have come out quite publicly and said, you know, there've been questions about nancy pelosi and her husband and questions about all sorts of folks in congress who have owned different stocks or assets. and people have said, this is totally wrong and totally conflicted. now, now, now, this administration owns all of these assets and everyone's like, it's fine. and actually it's a good thing because they understand it better now. so that's a double edged sword, right? it's i actually don't think people have a problem with politicians owning stock. you know, one of my favorite stats is ken langone once gave an interview and he said that his average holding period is 42 years. people aren't really worried about what

decisions he's making on a day to day basis. i think the problem that people have is when you're actually actively trading around certain events that are occurring, so it's the action of trading versus just holding for a long term. same thing with bitcoin is if we have people who are actively trading bitcoin based on different things that politicians are doing, i think that that would be a problem. but if people are just buying, holding dollar cost averaging into feel about meme coins, then president and the president's wife. yeah, i think that meme coins are a pretty big distraction from what actually is going to end up being the work that people need to focus on. and you see that, you know, strategic bitcoin reserve. i don't see anyone talking about putting meme coins in there. i think that there is an understanding that there's kind of an entertainment angle to a lot of this industry, but the really serious people, the people who want to go and actually have a positive impact on the country and on the economy, they're focused on bitcoin. we got to go. what you got this week though, just 30s bitcoin investor week. we've got a great lineup of folks all week long. it is the largest collection of sophisticated investors trying to learn about bitcoin. and hopefully we'll we'll figure out some banks and stuff that are doing more things with bitcoin. great. thank you. appreciate it. good to see you. >> when we come back the

department of justice opening a probe of unitedhealth's medicare advantage billing practices. last week the cleveland clinic's toby cosgrove will join us next. and former treasury secretary jack lew joins us for a wide ranging interview. squawk box will be right back. >> wall street rated 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. and video 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. and video stock has been on a history making tear, officially surpassing microsoft to become the world's most valuable company today. however, many investors are worried the tide is changing. nvidia's day in the sun may soon be coming to a dramatic end. and as a result, i predict a different under the radar stock is primed for big potential gains from this moment

on. to get its name and ticker 100% free, simply visit the website below. >> or. >> no matter why you started your business, your goal is to keep on growing. and with the help of financing from capital, you can meet all of your business goals. because at capital, we finance the legacy builders, the creators, the freedom chasers, the opportunity seekers. at capital, we finance small businesses. >> get vested. join the club. >> the value you're. >> going to get. >> from making. >> better investments more than outweighs whatever the cost of a membership is. >> join the club. last day for new member savings, go to

cnbc.com now. terms and restrictions apply. >> welcome back everybody. shares of unitedhealth moving in the premarket once again today. that comes after serious allegations last friday that the department of justice is investigating the company's billing practices in relation to medicare advantage. the stock, if you're looking over the week, was down by 10.5%, according to the wall street journal. at issue is a practice by private insurers like united health. that's called upcoding. that's where the insurer overbilling the government and therefore the taxpayer, by adding diagnoses to the patient that are designed to trigger additional payments to the insurance company. for insights on this complex issue and possible ramifications for the wider industry, we want to bring in doctor toby cosgrove. he's former ceo and current executive advisor to the cleveland clinic. and toby, it's great to see you here. >> nice to be here. >> thank you. this is pretty complicated. you start wondering what it's all about. this was not just unh that sold off last week, but also companies like

humana and cvs, other insurers. a lot of questions about medicare advantage program. what's happening here? what can you tell us? well. >> i think it's a really interesting what we've got here. a lot of people, i don't think. understand the origins of it and the differences between just medicare and medicare advantage. it turns out that back in 1965, kennedy was the guy who signed medicare iran. and at that point, the people over. 65 didn't have any. >> insurance at all. >> to. >> cover them. now, 2% of the people in the united states. >> don't have. any insurance to cover them. >> things went along. >> well. >> but they. >> were realizing that it was costing a lot of money. >> and so 30 years later, that. >> the clintons. >> brought. >> around what they call. >> medicare advantage. the idea. >> was to improve. >> the quality. >> and to. >> bring the private. >> sector in, to make it more efficient than the government could do.

>> now. >> several interesting things. >> happened out of that. >> first of. >> all, there. >> was. >> some efficiencies. >> brought. >> the number. >> of hospital. admissions for. >> medicare advantage dropped 50%. >> compared with just. straight medicare. >> there was. >> a 20% reduction in the number of people going. >> to. >> the emergency room. there was much more wellness. brought in. but at the end, people flocked to it. in the last. >> decade. >> the number of people who have medicare advantage has gone up doubled. >> in that amount of time. >> and now 54% of people over. 65 have medicare advantage. now, the reason that they're interested. in this. >> is because. >> of the. >> copays for medicare advantage were substantially less for the individual than they were for just straight medicare. there's bigger co-pays there, but the disadvantage is that it's costing more. it's costing the government more. so what they did is. >> they brought.

>> in the government to essentially administrate the medicare and all the insurance companies. >> we brought in the government to. >> take care of government brought in. i'm sorry. >> the government originally brought in private industry to try and make it more efficient. exactly. >> and that's where. >> more efficient on some places. but then the cost ballooned there too. so what happened exactly? >> and so what you. >> look. at now is that it's. >> about cost. >> about $100 billion more. or 30% more than it would if you were. >> in straight. >> medicare to the government. >> why is that? and what is this practice of upcoding? >> and part. >> of that. >> is what has. been people are. >> upcoding and the risk scores are going up. as you explained at the beginning here. and that is widely. used throughout the industry. some companies more than others. but what you. there has to be a solution. >> to this. is it fraud like

these companies? well that's that's saying okay, we're going to add these diagnoses on because we get paid more for that. even if you don't have the diagnosis. that sounds like straight out fraud. >> well, i'm not sure you call. >> it. >> straight out fraud. >> but i think everybody has done it. >> and it. >> is something that is does benefit the insurance companies. >> and how is it not straight up fraud? i mean, i'm giving you a diagnosis that you don't have because i'm going to make more money from the government. >> well. >> maybe you. don't have it. >> maybe you. >> do have and it's. not treated. i mean, for example, you might have obesity, diabetes. and they. >> argue that. >> a sort of an. >> early diagnosis of all these chronic conditions is exactly what you're trying to do to keep down costs long term. but then you throw in a i don't i don't even remember the common one. it was hormonal something or other that, that you don't even need to test for. and it's very obscure, but it jacks up the rates that they can charge. >> it just sounds like a game of whack a mole where the insurance

company, the government tries to say, okay, we're only going to pay for these things because we think this leads to efficiencies. so insurance companies figure out, okay, here's how we game the system again. >> so i. >> think this. >> is an abuse. and the question is. >> really how do you fix it. >> and it's interesting that metcalf, which is an independent government agency, came along and said. >> here is the. >> approach that we'll do with this and we will reduce the amount of upgrading, if you will, of medicare patients. and we're going to do it in a two pronged way, such that people who are abusing this more will get more of a reduction. people who are giving it less. >> meaning, insurance companies, because it's not it's not the patients who are doing the abuse. >> exactly. >> so if you are an insurance company that does a lot of this, and maybe this is the department, we still don't know. we're just guessing that the department of justice investigation into this will aim to put a chill through the rest of the industry and keep people keep insurance companies from doing this.

>> yeah. and but, i mean, i think you. >> have. >> to have some sort. >> of a. >> way to do it. and i think metcalf has a very approachable, fair way. >> to do it. >> so that people who are using it a lot are penalized or companies that are using it, a lot are penalized more and reduce more. so i think that there is there's been a lot. >> of good. >> that has come from medicare advantage, particularly for patients. but there's also been some abuses. >> yeah. doctor cosgrove, we're almost out of time, which is crazy. explain the most complicated thing we can possibly think of and do it in six minutes. but is this something that's fairly common practice among hospitals, among doctors, among insurance companies? i mean, i can think of a few instances myself where, you know, you can't get services, you can't get therapies for certain things unless you have a special diagnosis that maybe doctors give out freely because they understand that's the only way to get the system to pay for the services that are needed. >> you know, i frankly don't think that this is a common

amongst doctors and hospitals that do this. >> i'm sure. >> i have this. what you're looking at here has brought this to attention is insurance companies. >> do you think that medicare itself by definition, because it's you know, it's not i mean, you said bringing in medicare advantage at least puts a profit incentive or private sector concerns on a government program. i mean, it's big, it's bulky. it's you know, you go over budget and you just tax people more. >> it. >> by definition, is something that is probably ripe for abuse, waste and fraud. >> yeah. >> i think that the. >> profit motivation came in here and. >> that can backfire. >> but and that that. has potential for problems. >> there's also the situation where the government won't pay what it costs to fix people on some issues. and look, that's well, that's a that's a different issue. >> that's denials. >> that i. >> think that you're talking. >> about here. >> and no, i mean just pricing

in terms of what it costs for the doctor's time, what it costs for the hospital, what it costs for those. >> well, you know, clearly medicare and. medicaid pay less than it costs the hospital. >> to medicare, be keeping every 90 year old alive for another six months. >> that that's an ethical issue. and on a personal. >> personal basis. >> zeke emanuel right. >> it's the death penalty. >> 75 out of here. >> i. hope not. >> that's a complicated question. >> it's this is a this is a complicated issue. yeah. but there is a solution for it. there has been good things that have come from it. and, you know, i. hope it gets remedied. >> who's got to fix it? and can you do it? >> can i do it? yeah. no, i don't. >> issue interest in going to washington to fix all this. >> be nice if the pharmaceutical industry. >> fix it. no, i don't think i'm going to be going to washington at this. >> stage. >> of my life. >> okay. >> i got to get the right guy in there. >> be nice. if we had the right

pill for everything, wouldn't it? yes it would. do not want to innovate. but they got to stop advertising constantly and spend the money on on innovation. if i hear a jardiance. if i see one more group of, you know, full figured people dancing around following each other, what the hell is that? why do i need to watch that? why do they have to advertise that? why can't the doctor just tell them they need it? >> well, i think that the people, the pharmaceutical company clearly recognizes that they can create demand. >> it's the wrong way to spend the money. >> so i so you know where i'm on that we agree. but i thought you'd be in, like, some kind of free speech land where corporations should be allowed to do whatever they want to spend. >> they should be. but, you know, they should hear about it from us. and we don't like hearing, oh, you know, every song that's ever been written is now in your, you know, those worm songs. >> but i think, you know, there there is an issue. >> yeah. >> go ahead. >> there, there is an issue here that, you know, even $100 billion in the greater scheme of five, almost $5 trillion in health care is a small potatoes,

really. and you and you have to begin to look at the bigger picture. and the bigger picture is going to be can we embrace ai to help in a major way, reduce the cost of health care and improve the quality of democratize knowledge and get people's and get more efficient care to more people? and i think that is the bigger issue that we're dealing with in health care right now. >> agree completely. doctor cosgrove, thank you. we really appreciate your time and hope to see you again soon. >> my pleasure. >> thank you. meantime, we've got some breaking news right now from robin hood. want to get straight over to kate rooney, who joins us this morning? what's going on. >> andrew good morning to the sec is now dropping its investigation into. >> robin hood. >> over its cryptocurrency business. the brokerage firm just saying that the agency sent a letter last week explaining that it had concluded its investigation and does not intend to move forward with an enforcement action. this does follow a wells notice that was sent to the trading firm in may. >> of. >> last year. those typically inform a company or a person

that they are under investigation. >> and they tend. >> to become to come before, rather a lawsuit. robin hood's chief legal officer, dan gallagher, who was. >> also a. >> former sec commissioner, saying in. a statement this morning that, quote, we applaud the staff's decision to close this. investigation with no action. and he says this investigation never should have been opened. robin hood crypto, he says, always has, always will respect federal. securities laws and never allow transactions in securities. he also goes on to say, as we explained to the sec, any case against robin hood, crypto would have failed, he says. we appreciate the formal closing of this investigation, and we are happy to see return to the. >> rule. >> of law and commitment to fairness at the sec. this is guys, the latest win for major cryptocurrency companies in this new administration. many backed trump's campaigns and you're seeing a lighter regulatory touch here. companies had pretty tense relationship to put it lightly with the former sec chair under biden, gary gensler, many complained of what they

called regulation by enforcement instead of the agency. any setting, any type of clear rules or guidelines, it does follow. the big news guys. last week, with the sec dropping its lawsuit against coinbase, and brian armstrong talked about that with you guys. crypto is becoming a bigger part of robinhood's business as well. crypto transactions were up about 700% when they last reported for the fourth quarter. at least. it was a huge driver of revenue in that quarter. stock, last i checked, was. >> up. >> slightly almost 3% premarket. guys, back to you. >> okay. so here's the complication. and i'm curious how you think about it. on one side, it may very well be that these enforcement cases and investigations were wrongheaded to begin with. that that may be i have no idea. right. and then on the other side, we're seeing that most of the crypto industry spent an extraordinary amount of money to get this new administration into office, which is now dropping these cases. and so there's sort of this very interesting question about the credibility, both of

the initial decisions and what drove those, but also these decisions and what is driving them. >> that's key context here. i mean, it's coinbase especially i think robinhood was less active on the lobbying side. but coinbase led this charge really against the former sec. gary gensler really became an enemy of this entire industry. so i think there was also sort of this grassroots individual investor animosity towards the agency, which i think the trump white house has sort of picked up on, not only from a fundraising perspective, you could see it as pay to play. and i think that would sort of raise eyebrows. but at the same time, i think there was this sentiment among individual retail investors that call them securities or not, you know, want access to these more speculative. >> assets. >> meme coins in some cases. and they want their brokerage platform, robinhood in this case, to be able to list them. so i think there is also the big picture political stuff, but a little bit of a grassroots sentiment side of this that is also worth taking a look at.

their big thing was, you know, are these securities or not? and that rule goes back almost 100 years. so they were sort of fighting over this sec rule that none of us ever think that much about the howey test. but it's a big win for this industry, you know, regardless of the political landscape. they spent the money and you're seeing it pay off. you know, a month or so into this new administration. >> kate, i want to thank you. appreciate it. >> thanks, guys. >> futures right now take a quick look. they've been up for most of the morning, which would be a bounce back from those tough sessions on thursday and friday. 272 points now 97 on the nasdaq. let's get to mike santoli. the new york stock exchange. morning mike. >> yeah. >> morning joe. yeah another down friday. but we do get that reflex rebound so far in the pre-market up about half a percent in the s&p 500. and that was after about 2% downside on thursday and friday. we went right out on the 50 day moving average for the s&p 500 on friday. so figure we're going to

bounce about half a percent from there. still looks pretty routine in the context of like a three month trading range. market kind of losing some momentum and not as much confidence behind the move. also some crowded positioning and momentum stocks getting unwound. i would say that this 50 day average is starting to look pretty flat. so maybe that's shorter term trend you know, has to be be rescued by the next rally. take a. look at some of the cyclical parts of this market that have really shown some growing concern about maybe some kind of a pause in, in economic growth or a little soft start to the year. this is the banks that's industrials and that's the small cap. and the key thing here is not that they're exactly the same shape. but all of them are basically either into their election day gap higher or a little bit below it in the case of small caps. so if you think the economy is just sort of on a stutter step here and it's going to pick up markets, giving you an opportunity to actually play that and say they've unwound that sort of idea of an economic acceleration right out of the gate. take a look at bitcoin

relative to nvidia going back to the middle of 2023. been some strange synchronicity here or maybe not strange. a couple of things to note here. they've come back into line, but also both very rangebound. so some people are kind of talking about how bitcoin did not really confirm the new high in the nasdaq 100 last week. still looks fine in a longer term chart, but keep an eye on it for risk appetite. intel guys. >> okay. >> very good. thanks, mike. >> we will do that. see you later. >> before we head. >> to a break. >> take a look at shares of strategy formerly known as microstrategy. in a new regulatory filing, the company saying it has completed a $2 billion offering of 0% convertible senior notes. those are due in 2030. it used those proceeds to buy $2 billion worth of bitcoin, at an average price of $97,500. of that stock, the stock up marginally about $302

right now. and take a look at the price of bitcoin. we're seeing just about 95,600 bucks. coming up we're going to talk about warren buffett's berkshire hathaway stacking more cash on the pile a record $334 billion of it. we're going to get into his latest moves just ahead in former treasury secretary jack lew on everything from doge taxes and the state of the economy. squawk returning after economy. squawk returning after this. (♪♪) (♪♪) what took you so long? i'm sorry, there was a long line at the thai place. you get the sauce i like? of course! you're the man! i wish. the future isn't scary. not investing in it is. nasdaq-100 innovators. one etf.

before investing, carefully read and consider fund investment objectives, risks, charges, expenses and more in prospectus at invesco.com >> tiziana life. sciences stock symbol tlsa on the nasdaq has successfully dosed their first patient with moderate alzheimer's disease with a new therapy that reduces neuroinflammation in glial brain cells. >> this mechanism. >> of action could revolutionize the treatment. >> of alzheimer's disease. >> pioneering a new approach to. >> treating alzheimer's. tiziana life sciences. >> stock symbol tlsa on the nasdaq. >> your business needs to hire. >> someone now. so in addition to managing your business, you have to go through hundreds of resumes and hope for the best. or you can go and. >> get the best. >> introducing paychex recruiting copilot. >> it uses. >> ai to help find. potential candidates from millions of profiles, whether they're looking for a job or not.

>> then it helps you get in touch. >> and get them hired five times faster than job postings. get your own paychex recruiting copilot now at. every day i'm reading extensively. i'm checking the markets. >> throughout the trading. >> session, working the phones, talking to sources and. >> doing my own. >> reporting to share insights, info amazing and is

something that we get to use every day. >> take a look at the futures. right now we have some green on the screen nicely. actually, we got about 269 points higher on the dow. nasdaq up about 93 points. the s&p 500 looking open about 32 points higher. also the treasury yields right now you're looking at the ten year and the two year sitting just at about 4.4 on the ten year, the two year at 4.2. and for some more insights right now on the capital markets i want to bring in oksana baranova. i never get your last name properly and. i got it out. hey, are o n.

>> e. >> r jp morgan asset management. good morning. good morning to you. just help us understand what's going on here because we've been on this sort of wild run. things seem seem great. but then you sort of read these articles about just how confidence is disappearing and you're sort of trying to make some sense of it. >> policy uncertainty. >> is not a friend of animal spirits, right. and it's. >> really that simple. and we have a lot. >> going for this economy. and on balance the data continues to come in strong. but certainly there are some softer data points coming out. >> we also have a lot of uncertainty, obviously, around what's coming out. >> of washington. what are these dodge layoffs going to do? will that. eventually kind of put a dent in the. >> cocktail that. >> we. currently have, which is a tremendous amount of deficit and debt, right? in an environment. >> of full. >> employment, which generally is a recipe. >> for higher inflation. >> which is what we've seen. and of course, this administration is. hoping to support and unleash. animal spirits. >> but policy. uncertainty is an

enemy of that. >> and therefore you think, what happens? >> and so there. >> a few sort. >> of. >> competing things going. >> on right now. >> but for the backbone of the market, so to speak. right. which is the ten year treasury, which is the level. >> of yields. >> that is poised to stay. >> elevated for longer and possibly. >> move even. >> higher. because all of the. things that. >> contributed to. >> a move higher. >> are still in place. >> we still. >> have tremendous amount. >> of ai. >> data center spending. we still have tremendous amount of fiscal spending. we still. >> have a. >> resilient consumer that continues to spend. we you know, that all of that treasury. >> issuance coming out of washington. >> is going. to create a floor, because it's. >> unclear where. >> is the. >> demand going to. >> come from for all of that. issuance as our balance sheet doesn't. >> look. >> i don't know if you heard steve cohen was down at this fii event where trump was last week, and i don't know if it took bravery or whatnot, but he basically came out quite publicly and said that he was dumping stocks, that this was going to be a very tough

environment, that actually things had run their course, and at least for the short term, that it was going to be a very hard place to play. do you agree with that? >> so i think that's frankly impossible. for anyone. >> to call the. >> top. >> top of the stock market. we do know that. >> in the. >> i. >> don't think he was calling the top necessarily. i think he was saying right now is just it's almost too difficult. and that we had this sort of remarkable run and that maybe there's going to be a pause. >> and it's certainly plausible. remember in 2018, we did have. >> a 20% pullback. >> in 15 to 20% pullback. >> in the stock market under the first trump administration. >> so it's not. >> unthinkable that an administration. >> that comes in with a certain agenda. >> which is. >> generally positive. >> for the bottom line of the capital. >> structure. >> can still. >> create this. >> kind of volatility. >> what really is very. >> fascinating to me as a. >> credit watcher. >> is that all of this uncertainty. >> is. >> creating a lot of angst around. >> stock. >> valuations. >> but we're not seeing. >> anything. >> happening in credit valuations, which are. >> absolutely, without a doubt. >> the richest we've seen possibly ever, the amount of

light or the tiny amount of light. between high yield spreads, which are junk rated and cash, has never been smaller. >> why do you think that is? >> i mean, that's really the. perplexing thing. >> is that. >> there's so. much complacency around this credit risk. in the lower rated part of. >> the credit market. and yet we're all completely focused on the s&p. of course, all eyes are on nvidia earnings on wednesday. >> right. and there's all this sort of dissection. >> and yet i think. >> where there is absolutely a top of the market right now. >> is in credit particularly low rated credit. >> and we will most likely. >> see a meaningful spread. >> widening there. and i think. >> that's going to. >> be a greater. >> opportunity in the short-term. >> multiples are high, right? i mean, and we know that. and i don't expect necessarily any help from the fed to keep multiples. >> and in some, you know, the perverse. >> thing about where we are today is that bad news. >> is good. >> news, right? >> so if we were to. continue to. >> see markedly. >> slower, softer. >> that. would be good, because. >> that may be good. i also. >> used to.

>> mainlining i know. right. and so. >> exactly what. >> you're. >> saying will have. >> been assumed to be alive and well. >> right now we're down 2.5%. do you think that the positive animal spirits from deregulation and even the prospect of cutting government spending is net net offsetting some of the policy uncertainty about tariffs? >> i think that's. >> the question. >> that no one can answer right now, because there's so much policy uncertainty. yeah. >> and you know. >> year. >> to date we're. still doing okay on the s&p. i think the consensus generally is it's going to be a single digit year. but again, to me where investors really should. >> digit up. >> yeah i mean that's the consensus i mean who knows. and generally look in. >> earnings have. >> come in okay i think what's been lacking is the positive forward guidance. right. and that's what the market wants. and that's what it got throughout 2024 where initially companies said there are lower. >> and then they came. >> in and kind of had a lot of positive forward looking guidance. and we're not getting that today. >> but to me, where. >> investors really.

>> should get. >> used to no. meaningful price returns is fixed income is credit. i think investors have gotten very used to that in the years leading to 22, and it's going to be. >> a completely. >> different ballgame. >> and much more tougher one. >> and a choppier one. >> nice to see you. thank you. thank you. >> appreciate it. thank you. >> when we return, we've got a breakdown of warren buffett's annual letter to shareholders, everything from his advice for lawmakers on capitol hill to berkshire hathaway's $334 billion cash pile. and, by the way, check out shares of berkshire's class a shares. they're up more than 200% just over the last ten years. for the last year, they're up by better than 14%. squawk box will be than 14%. squawk box will be right back. (♪♪) something amazing is happening here. teams have more power to withstand outages. that's because cdw solutions architects are building more resilient it

and electrical infrastructures with schneider electric. with eco care remote monitoring services, and 24/7 support, your organization has the power to do more than keep the lights on. make amazing happen schneider electric and cdw. later. >> but later. >> turns into never. now your books are behind, but they don't have to be calls. and you know your numbers lose the stress. no more excuses, just real bookkeeping. zen. do the official bookkeeper and accountant for small businesses. >> think equity. >> financing growth. think equity. >> think equity. >> funding, innovation and growth.

>> think equity. >> learn more today. >> learn more today. >> the average dog only lives to be ten. that's ten birthdays, ten first summer swims, ten annual camping trips. at the farmer's dog, we don't think that's long enough. that's why our freshly made food comes pre-portioned just for your dog. because a dog at a healthy weight could live a longer, happier life. [dog barks] ♪♪ realtor.com. in a tap, get free proposals from local. agents who truly know your area. choose the one that's right for you and gets you the best value. try it gets you the best value. try it now. only at 7 million us businesses rely on tiktok to compete. within a week of posting, i had over $25,000 in sales. i don't have a million dollars to put towards marketing and branding. tiktok was the way and it saved my company. we had a video do really good

this week. sales were up 29%. about 80% of my business right now is from tiktok. small businesses thrive on tiktok. tiktok brings in so much foot traffic. i need tiktok to keep growing. we have so much more work to do. invested. join the club. >> the cnbc. >> investing club is for everybody. i joined to achieve financial freedom in retirement. >> jim cramer. >> is the benefit. >> you get that you can't get anywhere else. it's a great value. >> jim cramer gives you much more than you would ever get from any advisor. >> he teaches. >> how to invest. >> versus just. >> what trades to make. >> a return on investment for the club pays. >> for itself. join the club. last day for new member savings go to cnbc.com. join jim now terms and restrictions apply to.

>> check out the shares of apple. the company says it's going to work with foxconn to build an ai server factory in texas by 2026, and will add about 20,000 research and development jobs across the us. apple plans to spend $500 billion in the us over the next four years. ceo tim cook met with president trump at the white house on thursday. the company is facing the prospect of higher tariffs on its goods that are made in china. >> in his annual letter to shareholders, warren buffett discussed several topics, including the country's growing fiscal issues. he gave advice to the trump administration, and he looked back on his 60 years at berkshire hathaway. joining us right now to break down the letter is mccray. gabelli funds portfolio manager. and mac, let's talk through maybe the results first, because they also released their quarterly earnings at the same time. there have been a lot of notes out on wall street this morning on it. most of them point to the strong underwriting performance of the insurance companies, strong profits overall. and then ubs is actually raising its estimates and its price target on the b

shares to $557 from $536. what are your thoughts just about the performance of the company? >> right. it was. actually a. >> pretty good earnings release. >> so there's. 1.44 million. >> of the a equivalent. >> it's trading over 720,000. >> so it's. >> $1 trillion company. as you know last. >> year the insurance between the income. >> and the underwriting. >> increased about $8. >> billion year over year. so that boosted results to $47 billion of operating earnings. you combine that with investment gains. book value rose. 88 billion to 650 billion. imagine these numbers. >> so that's 16%. >> that's pretty remarkable for a. >> company of that size. and so on the operating side doing well obviously you know with the investments. and then they're sitting on the cash. so the one thing that i think disappoints investors but really shouldn't is the buybacks. >> and he hasn't. >> bought back. >> stock since may. >> the last level there about 627,000 per a share. so that's

down 10%. >> from the current price. >> so that's. >> something to look forward to in. >> the future as he puts the cash to work okay. >> that cash. let's talk about it $325 billion. it's the largest cash pile that any company any public company in history has ever had. it's greater than if you even add up today's numbers from apple, microsoft and alphabet. and they all have some pretty big cash words. what do you think the plan is behind that? why do you think he's doing it? >> so i. >> think there. >> was a couple. >> of idiosyncratic. components to it. you know, he's wound down a lot of the apple. >> position. >> bank of america. >> so that's. >> you know, those were two things. >> you know, contributing to that cash. >> plus last year they generated 30 billion. >> of operating. >> cash flow. >> which was about. >> 600 million per week. >> that would end up on his desk to be allocated. >> so this is still. >> a very strong. >> cash producing enterprise. >> but this is all. >> a good thing. i think people do get impatient in the short term. and, you know, if you go back to a few of his. >> letters a few years ago, he talks. >> about, you know. >> really rare opportunities. >> coming around, you know.

>> every 5 or. >> 10 years. and so, you know. >> look, we just have to have faith. >> in the system. >> it's worked. >> over those. >> 60 years. and he has some great managers below him that will keep that doctrine. and so this is a good problem to have. and you know, and if you look back at 0809. >> you know, there was a time when they really. >> accelerated capital and went into dow. >> goldman sachs, mars, et cetera. and they actually reduced. their cash balance below. >> that 20 billion threshold. >> so there was a time when they put capital work. and it certainly. you know. >> it's. >> basically he's looking around thinking that prices are pretty expensive, including his own stock which he's not buying back either. >> yeah. i mean so. >> it's trading at 1.5 times tangible book value. >> so you. >> know, clearly it's at a level it's kind of the. >> higher. >> ups. but you know, down 10% is not. unrealistic in this market, which has been pretty volatile as. >> you know. >> and look, there could be other events that. >> we. >> don't know and have. shown up. >> in history. >> so i think he's well situated to take advantage of that. >> one of the things that he pointed out in his annual letter was just this idea that

berkshire hathaway paid 5% of all total corporate taxes last year. that's kind of a astounding number, right? >> i mean, that's a testament to what he's built and his team and all of the asset allocation over the years. and i think he's proud to be able to contribute to the. >> you know, the corporate. >> and he's talked. >> you know. >> past letters about corporate responsibility for our overall budget of the us. >> and. >> contributing that. >> and you know, making. >> sure. >> there's opportunity. >> for other people as well. >> so i think i think that's just a testament to. >> the progress. >> that the firm has made. >> i mean, i guess the message he had to washington was spend it wisely and make sure you protect the strong dollar, too. >> right. >> so he kind of snuck in some of his own, i would say political views and. >> fiscal views. and, you know, he does that very delicately and responsibly. and i think it's. well heard by by the world. >> yeah. what what other takeaways did you have from the letter itself. >> well, you know what's great about this big hoard of cash? it's just the advertising. >> everybody's debating it. but

you know, there's. >> a lot of. >> private companies out there. and i think the. >> forest river anecdote that he brought up about this owner operator, having. >> done really well in the business. >> and adopted. >> this entrepreneurial. philosophy in terms of. >> his salary. >> relative to warren's and. >> how that business has done very well. and that's, you know, a sign to. >> say berkshire. >> has the capital. >> they have the doctrine to do all. >> this stuff and. >> execute for you. >> and. >> and also. >> do well with the stock price. as well. >> you mentioned some of the management. he did say that it's not going to be long before greg abel is the ceo and is writing the shareholders letter for, for the company. >> right. >> and. >> you know, he talked about his health there a little bit too, is a reminder of kind of. >> the physical limitations. >> as well. but again, greg abel. >> just you know, he. >> brings that. >> presence, he brings that entrepreneurial thinking. and i think could ultimately. >> be a better potential operator. >> than than warren. >> in some ways, in. >> terms of. >> commanding the. discipline and the accountability from.

>> the subsidiaries. >> matt, i want to thank you for coming in today. >> great. thank you for having me. >> good to see you. >> coming up, five former treasury secretaries recently penned an op ed pushing back against d.o.j. former treasury secretary jack lew was one of those members. he joins us next to discuss the payment system and so much more. take a look at shares of microsoft before we head to a break, though. according to a research note by td cowan, the company canceled leases in the us with at least two private eye data centers. the firm said the move could indicate oversupply of capacity and the shift could be linked to openai, which has pivoted towards softbank as a major financial backer. we'll discuss that and more when squawk box returns. >> in a world of uncertainty and disruption. how will your

investments stay resilient? we've been navigating change. >> for 125. >> years. >> always looking. >> forward. anticipating risks. >> and trusted to manage over $1 trillion. >> in assets worldwide. >> solving for the needs. >> of investors today and >> of investors today and tomorrow. that's the (traffic noises) (♪♪) the road to opportunity. is often the road overlooked. (♪♪) at enterprise mobility, we guide companies to unique solutions, from our team of mobility experts. because we believe the more ways we all have to move forward. the further we'll all go.

>> get vested. >> join the club. >> as a woman, i wanted to experience. financial independence and become financially independent in my retirement. >> join the club last day for new member savings. go

to three vetted fiduciary financial advisors at smart. com. >> welcome back to squawk box. in a recent new york times op ed titled our democracy siege, five former treasury secretaries wrote about concerns over efforts to undermine the nation's financial commitments. we have one of the authors with us this morning. jack lew served as treasury secretary under president obama. he's now a professor at columbia university. and we welcome to the broadcast. good morning. it's nice to see you. just take us behind the scenes in terms of your thinking to put this together, to contact all of

these other treasury secretaries who said yes. who said no. was there sort of a thought? did you call. >> any republicans at all to do it? jack, i. >> guess i think it's clear who. >> said yes. >> the five of. >> us signed five democrats and with. >> pretty broad range of views on. a lot. >> of topics. >> so bringing the. >> five of us together is not a small thing. >> and it was rooted in a. >> concern for the most basic. >> core principle. >> i mean, as secretary. >> of the. >> treasury, as the piece says, each of us took an oath to uphold the laws and constitution of the united states. >> part of that. >> is a congress has the power of the purse. and there's a concern. >> at the. >> time, and i think still that that is being challenged. >> there's also a. >> concern that our payment systems are very complicated. they contain the most sensitive personal information about every one of us and every american. they contain national security information, and how they're handled has real consequences in terms. of personal.

>> and national security. >> have you or anyone that signed that discussed any of this with scott bessent? >> i personally others. >> have, and i should say i didn't organize the letter. there were a lot of conversations. i'm not. >> sure. >> who actually did organize it. in the end, it was a it was a shared. concern that that we needed to speak. >> out on something. >> that might seem a little dry, but is pretty basic. and, you know, the third. >> point i would. >> make in terms of why. is the notion that the united states pays all its. >> bills is. >> pretty fundamental. it's why the full faith and credit of the united states is trusted all over the world. home in every household. that depends on a social security check or any other payment from the us government. putting that into question in any way has consequences that none of us fully understand, because it's never been challenged. but they're serious. >> so how much is your concern about. and i don't think it is this, but looking for the

efficiencies, if you will, versus how these efficiencies are being examined and then what happens or around the process. >> i don't think there's. any concern, at least on my. >> part. >> challenging the government to be more efficient. i spent most of my professional life trying to make different parts of the federal government more efficient, efficient, work, better provide better service. those are laudable goals. the question is how you do it. and if you break the system as you do it and put people in the nation at risk, that's. >> the wrong. i mean, this is the first time that anybody's really gone in and decided to look at the sort of line items via the treasury, right? like historically, you would go to the different agencies and maybe you could look around and maybe you could figure it out, maybe you couldn't. this does seem to be the most efficient way to at least get at the underlying math. >> on the. >> surface. >> i see the logic to that, but that's not how the system works. >> how does it work? i'm totally confused by it because it sounds

like it's an antiquated system. there's all these different payment systems. none of them work together. it is an old system. >> and it's the largest payment system in the world. so it's a complicated system. but the responsibility for basic program decisions and integrity is not made at treasury, except for the very limited number of programs that treasury runs. it's made at each agency. the laws made by congress, the agencies execute it. the only thing that happens in the payment system is matching up names to people who are on a no pay list for some reason, because they've been sanctioned or found criminally liable. that's a mechanical process. treasury doesn't have the skill or the people to do the program work. it's not treasury's job. if for 80 years this was run by nonpolitical career professionals whose job was to make sure that the bills were paid, they were paid on time. they were paid based on the instructions given. there

are things you can do in the agencies on program integrity. as omb director. >> twice. >> i did a. >> lot. >> of. >> work to try and improve. >> program integrity. a lot of the things we're hearing about program integrity are exaggerated and incorrect. i mean, you have to. >> ask the question. >> when we're seeing that a lot of the numbers that are tallied up confused millions and billions, how much accuracy is going in to this kind of swat team that doesn't understand the complicated system and thinks you can approach it in the way that they're doing? i think that there's going to be more of that, because i can tell you, having spent most of my professional life in this system, it's really complicated. would it be good to simplify it? yes. can that be done in a week or a month? i don't believe so without breaking it. >> check the age old question between democrats and republicans is, i guess, spending versus taxes. and i. >> just. >> have a really fundamental question. i saw some of your notes talking about if the trump

tax cuts were extended and how expensive that would be, and how economically disastrous that would be, in your view. and i'm just back to wondering what the right method. i mean, i look at what happened with the biden administration. we were 3.5 trillion during the pandemic. and briefly he got down to 1.3 trillion for a deficit. then we were right back up. we're right back up to 1.7 and then 2024 back to 2 trillion, basically. and that's just layering, layering on more spending, whether, you know, take your pick the ira, any of those things. why is that better than trying to keep taxes for corporations lower for individuals lower. keep it in the private sector, leave it there and cut the spending. why continue to ramp up the deficit from why is that a better method? >> so, you. >> know, joe, i'm one of. the

few people who has been consistently saying we have to worry about our overall fiscal posture. >> so the. >> biden administration did not do. >> that in either a democratic or republican administration. i'm the only omb director who has had three balanced budgets and surpluses. so i respect fiscal discipline. what i don't respect is pretending the tax cuts don't cost money. you look at extending the trump tax cut. the savings that are in these budgets would barely under pretty strained assumptions pay for them. and then they provide room for another. $4 trillion of deficits where there's magic savings that would reduce it to call it 2 or 2.5. >> trillion in 2007 is not. >> a question. >> corporate revenues, weren't they at an all time high following the tax cuts of 2017? >> the. >> but aren't we. >> the things that drive. corporate revenues are a combination of things, macroeconomic conditions. i will say that this administration inherited a very strong economy. but when you look at what the

cost of a tax cut is, it's projected by models that look at how the economy. >> in my mind, that doesn't sound normal, that the cost of a tax cut. we should start with that. i haven't paid the taxes yet. you need to justify the spending to tax more. >> but joe. >> if you care about a deficit, a dollar of spending and a lost dollar of revenue have the same effect, you have to borrow a dollar to pay for it. so if your concern is the total debt and the annual deficit, you have to care about both. >> but you see how republicans and democrats just talk at each other about this. >> believe me, i've spent. 40 years working. >> of writing, of writing the taxpayer a check in the form of a effectively a refund or a dividend or something. obviously, you'd be borrowing to do that. >> first of all, you haven't paid any of the bills to do the new tax cuts you're talking about. so how you decide to do

that on top of other taxes. >> but don't you think that the numbers have to add up? the push to do that is to make it this effort more popular. isn't that what this is about? >> sure, everybody likes to get a check in the mail. that it's not hard. to be popular. >> saying. >> we're going to send you some money. the question is, where does it leave you overall, if it leaves us deeper in debt with more borrowing, then it has the same effect as spending. >> i ask a different question, which is, you know, here you are being very public about your concerns about what's going on inside the treasury. there is an argument to be made, and i just don't know if you've availed yourself of this or have tried and it hasn't worked, but whether it's better to make these types of have these types of conversations privately with the treasury secretary, with people inside the administration, or is your view that they are not taking your phone call, or that they would otherwise not engage with you? >> look, i've always believed in having. private conversations. i don't think it's to the exclusion of having public statements. we were very careful

in that op ed not to make any accusations about the current secretary of the treasury or what they're doing. what we've said is we were never in the position where we were asked to do these kinds of things. so we actually tried to be very respectful, and i would be happy to have a conversation with anyone from this administration who called me for advice. i've reached out to people in some areas. >> when scott bessent says that that technically the payments have to go through the fed and that they're basically getting the treasury is sending instructions to the fed. the fed is the one that's actually making the payments, and that therefore, whatever's happening over here on the treasury side can't actually have a demonstrable impact. i mean, that's what he's effectively trying to say. you're saying you think that's not true. >> the fed operates based on. instructions that are sent from the treasury. >> right. >> so the instructions that go to the treasury then get paid by the fed. the fed is a

ministerial agent. >> and so when we hear, for example, that the state of new york or the city of new york is not getting the $80 million that they had been pledged, in fact, somehow the money was taken back. that's the kind of thing, i. >> think. >> that there's many things going on at the same time. you know, the freeze on federal spending that has been on and off the memo that went out. there's a lot of confusion, and i know that there's a lot of areas where money is not flowing normally, even though there have been, you know, courts that have said it should flow, at least for a period of time. i think this is going to get sorted out in the courts. it's going to get sorted out as things settle down. but right now there's a lot of confusion. the thing that i am concerned about is if you reach in and decide to pick and choose what to pay, that is a whole different kind of way of running federal spending. that's not finding waste. i mean, you look at, for example, trying to stop funding for an agency,

reaching in and saying that agency won't be paid. the treasury doesn't play that function traditionally. >> is your broader concern that it leads to questioning of the full faith of the united states government, and i think i count on the i. >> think we have a depth of trust and confidence that is not going to be drawn down quickly. so i don't want to be, you know, you know, kind of warning something is going to happen tomorrow. but it only has been as strong as it is because administration after administration, democrat or republican, have all done the things you do to say you can trust us if you start doing things that cause that to come into question, that's a different world. >> but your perspective that we need to get our fiscal house in order and that there is bloat. how much bloat do you think there is in the federal government? you know. >> i can't give you a pinpoint estimate, and bloat to one person is a priority to another person. so it has to be sorted

out, you know, in terms of what your your priorities are. >> what about just waste, fraud, government employees who aren't showing up? >> yeah. >> i don't. >> think office buildings that aren't even at 50% usage. >> i don't think would move the needle in terms of our macro fiscal position. should we try to eliminate whatever waste there is? absolutely. >> what do you think about selling assets, real estate, for example? what do you think about i mean, let's say there's an empty office building. yeah. are we better off selling the building? are we better off trying to rent the building to somebody else? yeah. what's the way you'd approach that? because that is going to be a big thing when this is all. >> over the years we've done a lot of asset sales. >> i've kind of presided over. >> budgets where we. >> sold spectrum rights. that's an asset sale. buildings are a little bit harder to sell because they have to. >> be emptied out. >> but we did it through base closings. there was. >> a brac. >> process where. >> we what, are we better off doing that or are we better off renting? the reason i say that is some people would say there's

a finite amount of real estate on the ground and you may ultimately need it, and maybe you can make more from the rent long term than you can selling it. it might help to bring down the debt immediately, but maybe long term is actually a mistake, right? that's the question. >> about asset sales. >> is there. >> one time. so if you're looking at your long term fiscal trajectory, you have to treat a one time asset sale as a kind of a blip because you can't do it every. >> year. >> or else you won't have any assets left. i don't think it's a long term solution. it's a smoothing thing that has worked in many budgets. i can't tell you whether renting or selling. what i can tell you is that the, you know, there will be a need for people to run programs, to answer telephones, to get people their checks when they're lost or something has gone wrong. those people are going to have to work somewhere. so i would be careful about skinning down so that if this process leaves us at a place where the public says

service is not where it needs to be, we have some place to put people and not to create a kind of fact on the ground that, well, we have nowhere for people to work. i understand in the modern economy you can have people work remotely, but that's not so popular now. >> but you would let the tax cuts expire. >> i didn't say that. i would be very. careful about how i looked at which ones, if any, to extend, and i would ask the. >> question. >> how are they paid? i think the corporate tax was cut more deeply than it needed to be in 2017. you know, when i was treasury. >> secretary 25. >> i. >> proposed a lower. >> number, you know, than than current number. there could be a serious conversation about where you balance ultimately to have a balanced fiscal policy that leaves the trajectory of the deficit and the debt going down instead of up. we're going to need to have a bipartisan conversation where people talk about everything. >> you must have taken issue with spending a $2 trillion deficit last year. what was why, when we were under $1 trillion until the pandemic, under trump,

under obama, what was your deficit? 500, 500 billion? you know what it was. i have to tell you that last year i was worrying. >> i was. >> i was oh, don't punt. >> over, over. >> don't you punt in israel. >> worrying. >> about a. >> war 24. >> i'm going to ask you about gaza and what to do to. >> going to take. >> a oh my. >> god. >> commented on my 2024 question. >> okay. >> we'll let you do that. you did have bigger what a mess. and i just you know, what we just infuriates me. you know, it's just. >> hey, jack, i know we got to go, but i have one ukraine question, which is there's a big question about whether you think that when we've sent the when the us us has sent money to ukraine, that should be considered a grant as the president of that country says, or it should be considered the equivalent of some kind of loan, or that there should be some kind of payback when this is all over. and what you think that says about sort of this entire i

was going to say schism, but really war. >> look, i think it's a mistake to think about things like american assistance for ukraine as something that we just do for others. we do. that to defend our interests, to defend our allies in europe. and i think that the terms of our assistance were clear at the time it was given. it is reasonable to talk about terms going forward, but i think the tone of that has to be respectful and mindful of the fact that we have very substantial benefits when we protect our interests in europe. >> all right. jack lew, thank you. nice to see you, sir. we you. nice to see you, sir. we got a lot more coming up ♪ are you having any fun? ♪ ♪ what you getting out of living? ♪ ♪ who cares for what you've got ♪ ♪ if you're not having any fun? ♪ ♪ have a little fun ♪

a beast lurks between the numbers. some watch from the safety of the sidelines, but others saddle up and ride that one ton rowdy ribeye for all he's got. if that's you, join us he's got. if that's you, join us on tastytrade. named best o when emergency strikes, first responders are the first ones in... but on outdated networks, the crucial technology they depend on, is limited. that's why t-mobile created t-priority... ...the only solution built for the 5g era, that can dynamically dedicate up to 10 times the capacity for first responders. t-priority. built for tomorrow's emergencies. ready today. (♪♪)

economy. >> perhaps they need. >> to call it something else. >> buying a. car is kind of a big deal. how do you know if it's the right car for you? ooh. with the most deal ratings and complete vehicle history from car gurus. car gurus. >> that's how. the average dog only lives to be ten. at the farmer's dog, we don't think that's long enough. that's why our food comes in personalized portions. because a dog at a healthy weight could live a longer, happier life. ruri: ichi, ni, san, shi... (1,2,3,4...) hina: ichi, ni, san, shi... (1,2,3,4...) akari: ichi, ni, san, shi... (1,2,3,4...) others: ichi, ni, san, shi... (1,2,3,4) ♪♪ ♪♪

you were made to chase your passions. we were made to put them in a package. >> than outweighs. >> whatever the. >> cost of the membership is. >> join the club. last day for new member savings. go to cnbc.com. now. terms and restrictions apply. >> the cnbc changemakers returns. >> 50 women innovating and driving change across industries. >> find out who has. >> made. this year's list. >> meet the new icons. >> the cnbc. >> changemakers list revealed. available now at cnbc.com. >> changemakers. >> coming up, we're getting ready for nvidia's quarterly results later this week. squawk results later this week. squawk box will be right back. ♪ empower ♪ so handsome. oh, i can't buy this. hang on there. actually, you can.

your empower investment account has performed well. and this whole off-white-ish cantaloupe thingy is really working for you. so... so...? so... (♪♪) hot to trot! nobody says that, what? get good at money. so you can be a little bad. empower. business. >> americaneagle.com optimized our website, turning our proprietary data, content and diagnostics. >> into a powerful platform that reaches more diyers, pros, and enterprise clients than ever before. >> if you're looking. >> for an agency who can solve your complex digital challenges, contact. americaneagle.com today.

today. >> at. discovering innovation today, helps drive growth tomorrow. as a leading global asset manager, pgim has established a track record of helping investors capitalize on growth opportunities. pgim investments. shaping tomorrow, today. financially independent in my retirement. >> join the club last day for new member savings g like.

>> you're. >> getting away. >> with something. public rec. undercover comfort. >> invidia reporting results wednesday after the bell. joining us now is sarah kunst, a clio capital managing director. as goes invidia overall tech goes. and as tech goes, so goes the market. is it that

important, sarah? or not as much. >> so i think nvidia is really important. i just don't think that its fundamentals have that much in common with the rest of the mag seven and the rest. >> of the. >> market right now. you know, i like nvidia. i think that despite the sort of deep sea. >> hubbub, what. >> was lost there is the fact that they were using nvidia chips, just slightly older ones. this is a company that has prevailed through it all. over the last 30 odd years. they've been public. and so the reality is that, you know, a little bit of a of a shake up in who's using what chips is not going to derail them. >> now is that. >> going to spook. the street? maybe. but i think long term this is still. >> just a really. >> really solid company that's not. super tied to a. >> lot of. >> its mag seven peers. >> how is. >> the mag seven? what kind of shape x nvidia do you think it's in? is it in a just. >> a. >> sort of a consolidation period? >> i mean, it's not a monolith, right? so you're asking. >> about very.

>> different companies. i think on. >> one hand. >> you have. >> names like alphabet, which personally i think is undervalued. i think that they're not getting. >> enough credit. >> for things like. >> waymo, their. >> self-driving car unit. i think that there's. >> just this huge. >> disconnect between sort of what they're. >> good at, where they're investing ai, which is a. >> space they've. >> been a leader. >> at for. >> for years and years and. >> don't get credit for and what the stock price is doing. and so i. really like alphabet and i think that's probably undervalued. on the other hand you have names like tesla where increasingly it looks like that that sort of. >> magic is fading. >> and, you know, they're not sort of. >> a super. focused company right now. there's trade. >> wars, inflation that aren't great for them. >> when you look at some. >> of the electric cars. >> coming out of china. >> at better. price points for rest of world, you. >> know, there's a really. compelling story there. >> and so i think that there are. very different. companies within the mag seven that some of. >> which are super well priced and are things to look at as a buy. >> and others are, are maybe. >> sort. >> of past the peak of their hype cycle.

>> i wish we. >> had more time. >> sarah. >> i don't know. we have a former treasury secretary on and we you know, we can talk forever, but what are we going to do? it was good to have you on. we'll have you on again. keep it short today. have you on? hopefully soon. again soon. okay. >> all right. that does it for us today. make sure you join us right back here tomorrow. right now it's time for squawk on the street. >> good monday morning. >> welcome to squawk on the street. >> i'm carl quintanilla with jim cramer david faber. >> all back at post nine of the new york stock exchange. the bulls going to try to get something back after the worst day of the year friday. cutting the s&p is year. >> to date gain. >> in half. big week of earnings with nvidia and salesforce watching ukraine. >> german elections. >> and the house budget roadmap begins, though with apple's. >> anti-tariff play. >> announcing plans to spend $500 billion to greatly expand domestic chip and server manufacturing. >> in. >> the us. echoing a similar move during the first trump