around that same threshold of 3.684% two-year is left almost at 4.3%i want to thank melissa lee and robert frank for being here today. that does it for us today. make sure you join us tomorrow right now, it's time for "squawk on the street. ♪ >>> good wednesday morning, welcome to "squawk on the street," i'm carl quintanilla with jim cramer, david faber, live at cnbc's inaugural ceo council summit in santa barbara, california take a look at futures this morning. still in debt ceiling limbo, although talks resume today. uk inflation runs a little bit hot. decent batch of some specialty retail earnings. our road map is going to begin with that d.c. debt deal no signs of progress, but negotiators are set to meet

robert frank is investigating the situation., those troubles on wall street starting to be felt in the hamptons there's too many summer rentals and not enough rentals there are 5,700 summer rentals available. that's about twice the normal levels renters have dropped their prices 10 to 20%, but that's probably not enough. the problem is all the people that bought homes in the hamptons during the pandemic are trying to rent them. there are fewer renters because of the lower stock market and job cuts and lower bonuses on wall street. >> when you feel good about life and your situation and the things around you, you go out and make the expenditure on a rental this year people may not be feeling quite as good. >> reporter: kelly, there is one bright spot. that is the very, very top end, these oceanfront estates, this 12,000-square foot home, ten bedrooms, 12 bathrooms, big pool the ocean is right in front of me the rental price for this, $600,000 for two weeks >> i wouldave to get like 1,000 of my closest friends. >> by the way, this

growing worries in commercial real estate, we got a new record now for empty office space our robert frankt. good morning, robert >> good morning. those numbers showing manhattan has 94 million square feet of empty office space, an all-time record they can space up 75% since pre-covid. president overall vacancy rate now at 17% there are no signs that this is going to improve any time soon new leases were down 44% over the same month last year and the office occupancy rate that's how many people are actually coming into the office right now, that's been stuck in manhattan at around 48% for the past year. the reits with high concentrations in new york office space seeing big stock declines vornado trading at a 27 year low. the ceo saying the company will take a breath in its timeline for developing penn station. sl green trading down at 52-week lows other urban markets also in trouble. san francisco's vacancy rate hitting a record in their first quarter with nearly a third of their office space now unleased. this, of course, is perhaps the second blow of that one-two punch for the regional b

as mounting layoffs and continued work from home prompts companies to leave their leases behind robert frankrt >> melissa, manhattan now has 94 million square feet of open space. equal to 37 empty empire state buildings. vacancy rate up 75% since pre-covid. the overall i havacancy at 17% no signs this is going to get better new leases were down 44% over the same month last year, and the office occupancy rate, how many people are coming into the office, that's been stuck around 48% for the past year. the concentrations in new york seeing big stock declines. vornado trading at a 26-year low. the ceo saying the company is going to take a breath in its timeline for the big penn station development. other urban markets in trouble san francisco's vacancy rate, nearly a third of their office space is now unleased. and mel, this is another potential problem for these regional banks, which, of course, have most of the exposure to commercial real estate and a lot of it in office in these big urban cities. >> when you say 94 million square feet of vacant office space, i'm trying to look for the silver

robert frank is here with details.ding a lot of cash and they plan to put some of that to work into private credit a new survey found that near's a third of family offices plan to invest more in private credit and that makes it one of the top investments. private credit is where small groups of investors and institutions make their loans directly to companies without a bank the big attraction here is double-digit returns thanks to these higher interest rates and growing demand because small and medium-sized banks simply aren't lending as much. >> i think it leaves room for a whole new group of investors to kind of come in and be really opportunistic in this space, and if you know anything about family offices, they love being opportunistic on dislocations. that's why we see higher cash balances >> the private credit market has tripled over the past eight years to $1.4 trillion and larger than venture capital and it also has risks as companies struggle to meet these rising debt payments and family offices are working wi

are live from the nasdaq market site in time square i'm becky quick along with melissa lee and robert frankoe and andrew are off this morning. we're keeping an eye on what's happening in the market this morning. under just a little bit of pressure today after being down yesterday. this was a day that was down because of what was happening in washington right now you see the dow futures down by 71 s&p futures off by 8.5 yesterday the dow down by 235 points if you've been watching the treasury yields you've seen an increase 3.88 we are getting down to the wire. >> speaking of the wire, let's get the latest on the debt ceiling negotiations in washington kayla tausche joins us with the very latest. kayla. >> good morning, melissa the standoff continues the negotiators have not met since midmorning yesterday when they told reporters there was still an issue over the funding issues among the most fundamental that are part of this deal and after that meeting broke up midmorning, there were no other calls for the rest of the day as the white house team briefed the president on where things stood an

robert frank. >>> we're an hour into the trading day. about an hour and seven minutes.hat's caught your attention. >> great jacket. >> thank you. >> don't look better than me it's annoying. hostage to the debt negotiations that's annoying as well. brilliant interview with yellen yesterday. >> thank you. >> we got as much out of her as you can expect the important thing, everyone is passing around 2011, the chart of 2011. remember everybody, we have it, put it up, august 2011, congress increased the ceiling but two days before the treasury said this is it and we had a real problem. we had a debt downgrade. this is 2011 so that's the left side there. we went from 1325 to 1120 on the s&p, on the debt negotiations. this is real and the market has m memory saying these guys look like they're going to push it to the wall again it's frustrating as a market reporter because we're hostage here so more of the market is what you got here all 11 sectors down at the open. it's been defensive for a long time consumer staples hold up tech is a big cap tech is holding up and everything

are live from the nasdaq market site in time square i'm becky quick along with melissa lee and robert franke off this morning. we're keeping an eye on what's happening in the market this morning. under just a little bit of pressure today after being down yesterday. this was a day that was down because of what was happening in washington right now you see the dow futures down by 71 s&p futures off by 8.5

robert frank joining us with the details, robert.usiness. >> yeah, no question, sara family offices, in fact, could help cushion the blow from tighter lending by the regional banks. a new family office survey from goldman sachs showing nearly a third of family offices plan to invest more into private credit this year. that makes it one of their top investments. that's to lending by nonbanks and the big attraction here, well, it's double-digit returns thanks to these higher interest rates. you add to that less risk because you're at the top of the potential creditor list and growing demand because these small and medium size banks are not lending as much. >> i think it leaves room for a whole new group of investors to kind of attend and be really opportunistic in this space. if you know anything about family offices, they love being opportunistic on dislocations. that's why we see higher cash balances >> and, sara, as you mentioned, the private credit market has just tripled over the last eight years to $1.4 trillion it's a very compl

robert frank joins us and tells us what that's all about robert robert, it's a beautiful spot. >> reporterdown there are 5,700 homes on the market prices are down 10% to 20% they're going to have to come down a lot more. the problem is, all the people that bought homes here in the hamptons during the pandemic now want to rent them and there's not enough renters ball of all the issues on wall street and the falling stock market. >> feel good about life and your situation and the things around you, you go out and you make the expenditure on a rental. this year people may not be feeling quite as good. >> reporter: now, the one bright spot is ocean-front properties like these, there just aren't enough to meet demand. this house is in bridgehampton, 12,000 square feet, ten bedrooms, right on the water, 50-foot pool the rental price for this is $600,000 just for two weeks. that may sound like a lot, but a house recently rented on the water for $2 million for just one month. so, at the very high end, on the water, there's still more demand than supply. but the rest of the hamptons still scramblin

on the struggling reit space, office space no such luck empty office space hitting a new record robert franke state buildings one. i don't know if you have that still in your head was it 70 empty empire state buildings? >> this matters. manhattan is the largest commercial market in the country. lots of eyes on the commercial market as it relates to the regional banks we just had numbers, 94 million square feet of empty space that is an all-time record that is equal to 37 empty empire state buildings. if you look at the overall vacancy rate, we're now at 17% that is also a record. the number of new leases declined 44% in most recent month over last year and you look at the reit stocks, you look at s.l. green, cornado, empire state realty, they're at 52-week lows they had a moment of optimism where maybe people would come backto work. 48% is basically the limit we've seen in manhattan for the office occupancy by workers horseback to work. we haven't been able to get past the 50% number. >> two crosscurrents on the one hand we have people who might have to come back to work now maybe we can pun

thanks robert frank. >>> let's stick with a.i.and bring in piper sandler's brent bracelin a nice note trying to frame how we're going to think about this and one of your pieces of advice is to basically challenge any bias that you've hereto for had, right? >> it's interesting the time we're at right now things are moving so fast. i know just four months ago, we were talking about maybe a handful of large language models ruling them all. today there are 50 plus large language models trained on a billion plus parameters and it's important because we're trying to make an assessment of where the world's -- what the world is going to look like here in the next three, four, five years, and the ground is literally moving underneath us very hard to be super confident in some of the conclusions, so yes, our first observation after 100 investor meetings and company meetings and bus tours around a.i. is really question everything. >> what do you do about consensus? even a lot of desks this week who by the way have been extremely active, have

. >> robert frank did that story that family offices are now getting involved. >> yes there is certainly -- whenever there's an opportunity, there's more people involved you just want to be with the people that have done it successfully for a few decades. >> is the debt ceiling interesting to you at this point or is this all theater it's so short term, we think, right? >> i think whenever there's a risk of the u.s. government defaulting on debt, it's of interest we're, of course, tracking it. we -- like everybody else, we think it's highly unlikely but we are preparing for portfolios for that possibility again, we think it is highly unlikely and that's what the markets are telling us at the moment >> how do you prepare your portfolio for that >> one good thing, interestingly, we are long investors in emerging market debt which no one thought would prepare you for investing in u.s. treasury but there's a little bit of that happening in terms of preparing portfolios, we are running several contingency scenarios, if they downgrade debt, what would that impact in terms of our client guidelin

. >> thank you very much >> blue owl co-founder and also the family office story robert frank was talking>>> meantime, amazon hoping ai can help diversify its ad business that story is coming up. stock roughly flat since reporting in late april and nearly 30% off the 52-week high. we're back in a moment ♪ ♪ the biggest ideas inspire new ones. 30 years ago, state street created an etf that inspired the world to invest differently. it still does. what can you do with spy? ♪ ♪ >>> advertising the latest industry under threat from a.i., and amazon is building a.i. tools for merchants to generate photos in ad campaigns here's more. >> that story, there's a winner and loser as well. more and more we have been talking about the downside stock of the a.i. boom, and they are trying to price in companies that could be left behind. the market is now entering the prove you won't be disrupted stage when investors are focusing on companies given the a.i. halo affect there's a idea that big tech likely wins again, and that dynamic could play out between amazon's advertising unit and the smaller ad agenc

show and tell with robert frank alongside the ceo of bentley coming up in a couple of minutes. >> howbout cckil in hi-f-ayour new bentley? >> take it for a spin, go pick some up. we're back after this. lily! welcome to our third bark-ery. oh, i can tell business is going through the “woof”. but seriously we need a reliable way to help keep everyone connected from wherever we go. well at at&t we'll help you find the right wireless plan for you. so, you can stay connected to all your drivers and stores on america's most reliable 5g network. that sounds just paw-fect. terrier-iffic i labra-dore you round of a-paws at&t 5g is fast, reliable and secure for your business. ahhh! icy hot pro starts working instantly. with two max-strength pain relievers, so you can rise from pain like a pro. icy hot pro. - double check that. eh, pretty good! (whistles) yeek. not cryin', are ya? let's tighten that. (fabric ripping) ooh. - wait, wh- wh- what was that? - huh? what, that? no, don't worry about that. here we go. - asking the right question can greatly impact your future. - are, are you qualified t

robert frank's going to join us with that story next at 7:30 a.m., the professor, jeremy siegel is goingat it will mean for markets he thinks they're done we'll see about that the white house revealing that president biden looking to create some new rules around airlines that would require them to compensation passengers for significant delays or cancellations, this stemming, of course from what was a number of delays, southwest being perhaps the most pmintrone we'll discuss that and break down the details of it when "squawk box" returns >> announcer: this cnbc program is sponsored by baird. visit bairddifference.com. ♪♪ at morgan stanley, old school hard work meets bold new thinking. ♪♪ partnering to unlock new ideas, to create new legacies, to transform a company, industry, economy, generation. because grit and vision working in lockstep puts you on the path to your full potential. old school grit. new world ideas. morgan stanley. we're here today to set the record straight about dupuytren's contracture. surgery is not your only treatment option. people may think their contracture has

from the irs shows covid doubled the flight of the wealthy out of new york and california in 2021 robert franks with more. >> joe, stats show income migration accelerated during the pandemic from high tax to low tax states new york losing $25 billion in income from taxpayers who moved in 2021. that's up from $9 billion in 2019 california losing $29 billion. that was triple the losses that s they saw before the pandemic if you combine 2020 and 2021, those two states lost more than $90 billion in income from out migration. many of those from high earners. the big surprise was lorida. florida gained $39 billion in income that is more than twice the pre-covid levels about $10 billion came from new york the rest from illinois, new jersey, california and other states texas was the distant second adding $11 billion more than half of that coming from california. all that income flight now finally starting to show up in tax revenue. california recently going from $100 billion surplus to a $23 billion deficit this year. new york's tax collections running $12 billion less than last year. the state now lo

we have robert frank with more >> two years after it acquired tiffany, the profits doubled s sales reopenedst expensive store for lvmh arnault says the next decade, not the quarter, is looking out for the brands. >> we need the store the perfect jewel box over being pressured by the street or others saying we have to open. i think this store is the real definition of how long-term vision >> other parts of the strategy is lvmh moving up the value of tiffanys it has higher priced profit lines. you are looking at the vip sales room of the new york store the landmark store prices to get in the vip area start at $200,000. the products go to millions of dollars. ironically, by not focusing on the share price, the price up 28% this year. >> you say to get into the room is $200,000 at the entry level do you have to agree to buy something? >> i think you have to agree to be a serious looker at the $200,000 product. >> there are stores where they lock the doors and don't let you in unless they check out closely. >> they look at your sales history and if you bought before, it is easier >> what is the

robert frank will join us with some new data. "squawk box" will be right back.ad we did this. i'm so glad we did this. i'm so glad we did this. life is for living. let's partner for all of it. i'm so glad we did this. edward jones i'maany questions?dyhis. -yeah, i got one. how about the best network imaginable? let's invent that. that's what we do here. quick survey. who wants the internet to work, pretty much everywhere. and it needs to smooth, like super, super, super, super smooth. hey, should you be drinking that? -it's decaf. because we're busy women. we don't have time for lag or buffering. who doesn't want internet that helps a.i. do your homework even faster. come again. -sorry, what was that? introducing the next generation 10g network only from xfinity. and this is ready the to go online. now. any questions? -yeah, i got one. how about the best network imaginable? let's invent that. that's what we do here. quick survey. who wants the internet to work, pretty much everywhere. and it needs to smooth, like super, super, super, super smooth. hey, should yo

h we have robert frank with more >> melissa, 94 million square feet of empty space in new york city its up 75% pre-covid now a record rate of 17% there are no signs this will improve soon new leases were down 44% over the same month last year and the office occupancy rate, which is how many people are still coming to the office, has been stuck in manhattan at 48% for the past year the concentration with the new york office space with stock decline. vornado trading at a 27 year low. it will take a breath in the time line for developing penn station. the $2 billion plan to develop 5 million square feet. you have sl green and empire state down other urban markets are in trouble. san francisco rate is nearly one-third of office space now unleased melissa, this is feeding into the regional banking crisis. >> robert, thank you robert frank. >>> coming up, the latest read on consumer trends johneyn lloius ptowi jn after this break >> announcer: executive edge is sponsored by at&t business at&t 5g is fast, reliable and secure oh, i can tell business is going through the “woof”. but seriously w

sergei gifting $600 million of his shares probably to charity >> robert frank, okay -- well, we couldtreat's biggest tech socks with mitchell green. but next, the magic number movie earsth theaters are hoping to see this summer at t-mobile, your business will save over $1000 bucks. what are you going to do with it? i could use a new sign. with t-mobile for business, save more than $1000 bucks versus verizon. and get the new samsung galaxy s23 plus free with no trade-in required. ♪ opportunity is using data to create a competitive advantage. ♪ it's raising capital to help companies change the world. ♪ opportunity is making the dream of home ownership a reality. ♪ ...and driving the world forward to a greener energy future. [applause] sometimes the only thing standing between you and opportunity is someone who can make the connection. at ice, we connect people to opportunity. >>> memorial day is always a big weekend at the box office and now there are big questions about whether it can return to pre-pandemic levels. julia boorstin is joining us with more. good morning >> good morning. t

homeowners are starting to cut prices to entice more renters, but there is one bright spot robert frankealize there is one road out there two lanes? >> one road and this morning at 5:00 a.m., there is already a traffic jam on route 27. it is just crazy and if you're a renter this season -- >> what's wrong with the jersey shore. seaside heights, get some ink. that's what i'm doing. >> yeah, well, if you're -- it is still -- if you're a renter, that's going to be good news this summer. but if you're a homeowner, not so great news. there is just a flood of rentals coming on the market this summer and just not enough renters. there are now 5,700 homes for rent this summer in the hamptons that's about twice the levels that you saw pre-covid now, homeowners have already cut their prices between 10 and 20%, but they have to cut a lot more if they want to bring in renters, some of them are offering free chef services. more importantly, shorter term rentals, giving renters a chance to do a week or a month. the problem here is supply and demand there is a huge supply because a lot of people bough

joining me now is robert teeter and joanna gallegos. >> thanks, frank >> jo, i want to go to you first. we talked about the fitch downgrade of the credit rating we talked about the yield hitting record levels. the possibility of default makes the shorter term pobonds less attractive give us a sense of what strategy w would you advise on bonds? >> i think what we are telling investors to remember is this a b political situation. we have seen this in 2011 and 2013 and 2017. agreement was reached around the debt ceiling we think this will get resolved. for investors that want to avoid volatility, we recommend the treasury portfolio duration. this doesn't mean going far out on the curve, but matching what you have seen in the market which is moving out on the curve with the 1-year or 2-year or 3-year treasury exposure remember the debt ceiling has been raised 40 times since 1942. some short-term rate spikes reflect those that mature next week you need to sift through >> a lot of people are sifting through it we will get more in a second robert, all of the volatility and uncertainty and you

robert: unfortunately, there has been a dodd-frank rule change.ad of the fdic at the time had the ability to, from an executive order, basically take over and raise fdic insurance from 250,000 to five hundred thousand dollars for the banks, which didn't quite solve the problem but it helped the situation for the large banks back then. dodd-frank has changed that. now you need congress to up there to 50 to 500,000. i don't think congress will agree to a dead ceiling anytime soon, they certainly will not agree to this change right now simply because of what is a priority on their plate to deal with. that leaves the treasury having to use other tools in their going back, to 2008 and 2009, we all started seeing shortselling. unfortunately, we are seeing a concentration of private equity doubling down -- they are getting together and strategically and forcefully going one after another after another. it is almost the same playbook that we saw unfortunately with the big banks, now with the small originals and if the regulators don't step in for a short

robert p. craft. captain frank captain keith risak jr. deputy sheriff jared erosi. officer nichlas vela. lieutenant jason t.tomloa. sergeant mathew horton. deputy constable neal adams. sergeant john joseph donahue. correctional lieutenant steve taylor. officer jorge alvarado jr. major roderick c. covington. officer dominick m. francis. lieutenant william david lebo. deputy sheriff darren almendarez. officer tray sutton. sergeant christopher michael vaughn. deputy constable jennifer chavez. patrol officer brian lee simber. officer darell wayne fortner. sergeant pedro tony can da -- candia. deputy sheriff james jerry prichelo. officer roy andrew barr. corporal david p. jones. deputy sheriff nichlas w.toulier. deputy sheriff walter donald jenkins jr. deputy sheriff robert adam howard. border patrol agent daniel salazar. chief deputy sheriff jody wayne cash. officer stephen charles plum jr. supervisory police officer yu tao. senior correctional officer daniel sincovich. correctional officer jade drenin. mr. cammack: thank you to my friend and colleague for helping name the first 120 of those

. >> thank you, robert falck >>> time for a check on the other headlines with nbc's phillip mena >> thank you, frankmanitarian aids and shelters are at capacity. homeland security secretary says this is a minor number >>> and former president trump was asked about the january 6th capitol attack >> the question to you is will you pardon the january 6th rioters who were convicted of federal offenses >> i'm inclined to pardon many of them. i can say inclined to all. what they have done to these people, they are persecuted these people my answer is i am most likely if i get in and i will say it will be a large portion of them >>> the renaissance has begun. beyonce's world tour kicked off in sweden. it was an hour-long performance with outfit exchchanges. gold and also a bee inspired set. if you want to catch beyonce, it will be july 12th in philadelphia >> that is my hometown i may have to check it out phillip, are you in the bey-hive >> i went to a jay-z concert and it was not a jay-z concert it was a beyonce love fest she stole the show that night although they showed up for jay-z. >> we may have to m

robert f kennedy human rights. it also found that more americans think that the media is hurting american democracy than protecting my next guest tonight is frank has no frank as an emmy award winning journalist. he's now director of strategic initiatives at george washington university school of media and public affairs. and i have to say when i was a way back in the day when i was a news writer at c n at the washington bureau, frank was the bureau chief there. frank, it's good to see you. again, there's, there's a lot to talk about, a lot of it, good, some of it bad. i wanna start though, with this new poll which finds about 4 and 10 american saying that the press is doing more to hurt american democracy. only 2 out of 10 say that the press is doing more to protect democracy. i mean, this is a real crisis of trust, isn't it? yes. first of all, it's good to see you again. thank you for having been here. i think this is an important conversation. this isn't a really very serious problem. it's been in existence for some time. it's gotten worse and it's fed on itself, so the more there is distrust in media. the more media actually heads for the c