followers on x. meanwhile, president trump opening a new front in his battle against harvard and other universities. the white house's latest move targets harvard's international students, and columbia's accreditation. and a big day for crypto stablecoin issuers. circle is set to begin trading as a public company after pricing its ipo above expectations. it's thursday, june 5th, 2025. and squawk box begins right now. >> good morning, everybody, and 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 andrew is off today. let's take a look at where things are shaping up.

you'll see some green arrows once again when we check out the us equity futures. right now the dow futures are up by about 57 points. the dow did break a four day winning streak yesterday. it was down slightly. s&p was up but just barely. yesterday it was up by about 1/100 of a percent. you can see it's indicated up by about five points this morning. and then the nasdaq was higher yesteay 20 points today. treasury yields at this hour are a little bit lower. in fact you're actually looking at 30 year below 4.9% right now 486 the ten year also lower at 4.35. we saw yields across the spectrum drop yesterday after the data was a little weaker than had been anticipated from adp. the two year right now is at 387. we do get some more data this week. today it's jobless claims. and then tomorrow we have that big jobs report. in the meantime elon musk escalating his campaign against president trump's tax and spending bill. in a post on x, musk told his followers to call their local members of congress to, in his words, kill the bill. there's

been speculation that musk has come out against the bill because it cuts ev tax credits. he was also a little irritated that his pick for nasa was not given into going through. >> they waited until he was gone. >> gone to say, no, we're not going. >> and he actually. >> supposedly told associates, i gave hundreds of millions of dollars to help get trump elected. and now this. >> is what i get in return. and then he also this was over the weekend. he was saying this, apparently also saying, by the way, posting on doge or posting on x that these people at doge really put a lot of effort into this, took a lot of pain and arrows that were kind of slung their way as a result, and feels like maybe nothing was accomplished by that. >> $9 billion. >> that they won't vote on. >> and you can't even barely get that to codify. it's supposed to be 2 trillion. then it was supposed to be a trillion, and now we're talking about 9 billion. i mean, i'm not blaming doge. it's impossible. that's what desantis said it. you know, doge took on the swamp and it's

the scores. swamp one doge, nothing. i mean, i would wouldn't be surprised if some of it was frustration, i'm sure, for elon musk. >> i'm sure to do that, to take on all of those efforts to and i think it's the hundreds of millions of dollars. but it's also the months of his time. and to watch his businesses being attacked in the meantime. and then. >> terrible what he went through. what's amazing to me is today's thursday. that was friday of last week, when that glowing sendoff occurred in the oval office, when the president said the greatest things in the world. and it was such a love fest. they also played the tape of the cnbc, which was also funny. but people say, you know, trump is very forgiving at times because, you know, you've seen him say things that we've got ted cruz, you've seen things happen, lyin ted, and he does forgive. people do come back in the fold. but then they say, but when it's this much that this is

going to be a tough one, we'll have walter isaacson on, too. it's weird. i think that that now you're hearing elon musk in more favorable light with with some liberals in democrats. but what he's really asking for is even more cuts. >> to them. >> right. that's even more cuts. but but because it would scuttle the bill now they're kind of on his side. >> yeah. but again if he is successful, the democrats are not going to be happy with what he pulls off. >> you know what's frustrating i would i would do the 2017 okay. >> right. just extend the tax. >> i don't know if i do all all those other ones but the tax on tips. did you see what the senate vote was. >> it was 99 to 1. >> it was 100 to 0. so it's like both sides are part of the problem. >> it's really hard to stand up in washington. and when the other party, when whatever party is trying to give money away and look, usually it's the democrats that are doing this. but whenever somebody is giving

money away, other people's money away, it's really hard to stand up and say no to that. yeah, but none of this has made a whole lot of sense. john thune was the one that didn't want to do one huge bill, cram it all together. john thune wanted to say. >> yesterday he was i felt bad for him. i mean, first we had ron johnson, who was so strident about what he was saying. yesterday on right on squawk box. and mike johnson was kind of trying to say, oh, we'll still get it done. then thune was talking in front of a gaggle and he ended saying it was like erupted in barrasso. senator barrasso was behind him, and they both were like this. just just the questions being fired up about whether this, you know, it was almost like piranha, because the bill looks like in the current form could be in trouble. i don't know how they reign it in. i was you mentioned josh hawley a couple of times. he doesn't want to cut anything out of medicaid. >> you can put him in the camp with susan collins. >> and politics really are local. >> yeah. look, and i don't know what holly's up for election.

>> in the state. >> because of their on the medicaid. you know they're. they're on the they are they're suckling at the. yeah they're on it. can you say so. you can say that word tea but you can't really say. >> yeah tea is. >> is okay okay. all right. >> well and i did say tea. >> tea. yeah you did. >> and with what you said yesterday, i'm ready to just let it all hang out. >> oh, as opposed to. >> your usual button downs. my usual. >> my usual. right. president trump, people might not have been watching yesterday, but we don't need to. >> go into it. i won't repeat it. no, unless you want me to. no, no. >> if you do, i'll talk about jardiance as side effects. >> never mind. let's move on. >> president trump says he's going to deny visas for foreign students trying to come to the us to attend harvard. it's the white house's latest attack on the institution, which the administration claims has not done enough to combat antisemitism on campus. in a

statement, harvard spokesperson said this is yet another illegal retaliatory step taken by the administration in violation of harvard's first amendment rights. harvard will continue to protect its international students. this is actually playing into some of the china negotiations. we're going to talk to wendy cutler in a little while. they're not happy about that. i don't know why they want to send students over here so badly. >> because it's an excellent. >> i know. but then they bring them back to undermine the united states. meanwhile, the white house says it notified the accreditor for columbia university that it thinks that the school violated federal anti-discrimination laws. in a statement, a columbia spokesperson said it was deeply committed to combating anti-semitism on our campus, said it had addressed the department of education's concerns with its accreditor. we have langford on today to getting back to. >> senator langford. >> he's he was in i think he's with thune and the others that are still.

>> trying to hold it together. >> it's you know, what the moral of the story is? you should both be glad we never ran for office or in politics. it's impossible, isn't it's. like everybody very. i don't see how you put all these differing constituencies. i don't see how you get it done. there's going to be a lot of whipping, but. >> right. but when you have such thin majorities, it's going to be like the more you try and bite off when you have a thin majority, the tougher. >> it is. >> you see, supposedly there's not a single senator that cares about salt. >> yeah, not a. single one. >> that's the first thing. >> i don't even. >> remember if we said this on air yesterday, but we were at least talking off camera, so it's going to be the first thing to go. i bet. >> all that other stuff. >> if it was hard enough to extend the existing tax, that's what that's where it made it difficult. >> to pile on so many things on top. >> of it. >> when you're not. >> willing to. >> now, i, i'm not willing to write this bill off or to say

that they're not going to get something passed, because i think it would be. >> a 4.5. >> trillion. >> suicide to push those sort of tax increases. >> through 4.5. >> trillion in the next year. >> right. something will get done. i don't know what the final result is going to look like. something will. >> get done. >> at 4.5 trillion. add in the tariff effects and you're almost guaranteed 4.5 trillion in tax increases, tariff effects. you're guaranteeing a recession. >> tariffs are taxes. >> so you're. >> almost. >> guaranteeing a recession. >> if it doesn't. >> pass right. >> in the meantime, president trump announcing a ban on entry into the united states from people from a dozen countries. the new restrictions mostly target african and asian asian nations, including afghanistan, sudan and myanmar. the president framed them as necessary to increase national security and combat terrorism. seven more countries were hit with partial travel restrictions. among those other categories, the proclamation includes exemptions for any lawful permanent resident of the united states and recipients of afghan special immigrant visas. this is similar to something that the president did in his first term. those

were struck down by the court first time around and heavily restricted by what they could do. and we'll see how the these things fare this time around. this is a little different. how they went after it. last time it was called the muslim ban. we'll see what happens with some. >> of these. right. >> and procter and gamble kind of added again john mueller you always are doing stuff with a behemoth like that, but announcing plans to restructure its business. it's done that a couple of times in the past. this will involve though will include cutting 7000 jobs. that's about 15% of the non-manufacturing workforce that will make the changes over the next two years. expects to take up to $1.6 billion in charges related to the plan. executives are speaking in paris, said they plan to trim the company's product portfolio, will exit some categories and divest some smaller brands in certain markets. they didn't provide details yet, but they're saying

that the layoffs are not for cost cutting purposes, but for part of a reorganization to create a better work. >> structure sounds like a way to try and cut the red tape bureaucracy with some of those things. >> i don't know if. >> it's tariff related and. >> well. >> they have been facing pressures from cost cutting from other, you know, from just trying to increase their, their brands. they've been losing some market share in some areas. it may be related to that. i was trying to figure out if any of this was related to ai. it didn't mention any of that in any of the stories that have been written up on this at this point, but that's a significant chop in terms of jobs, 7000 jobs, 15% of the non-manufacturing workforce. those are numbers that you do sit up and start to pay a little attention to. >> you can go back and i mean a long term chart. it i mean, mueller came in and was a really from cincinnati i know, you know been following him for. and there's you know. >> there's the. >> ten year chart. there were. >> ten year. yeah. it's been doing great. and they had you

know they brought in this mcdonald guy after. >> a.g, a.g. lafley. >> and then they brought him. >> back bob mcdonald. >> and they brought. >> a.g. >> lafley back. and then john moran, who was the cfo for years, and maybe they had it. >> they had their answer right there internally, and it certainly looks that way. but i'm not over, you know, the divestment of pringles yet. that was probably 20 years ago. >> or so. i do not remember. it's so. >> cool there that as far as physics, the shape of a pringle is like a foil. but it's very cool. the shape of it. it's almost like a time space continuum, almost. >> because it's the it's almost. >> the almost looks like the universe. yeah. >> in other consumer product news, kimberly-clark is nearing a deal to sell its kleenex and tissue businesses outside of north america for around $3.5 billion. that's according to a wall street journal report that said the company is attempting to focus on more profitable areas. the report says that brazil's suzano, which is a pulp

producer, is close to a deal to buy those businesses and it could be announced today. in 2023, suzano bought kimberly-clark's tissue business in brazil and has been looking to expand. you can see that company's shares are off by about two and a third percent. by the way, josh hawley, the senator i was asking when he's up for election january 3rd, 2031. so he is not up for election anytime soon. this is something that. >> is. >> very important to his constituencies, or he thinks it's going to hurt the health of his, you know, he thinks it's going to hurt the health of his people if they get kicked off these medicaid rolls. >> right. >> all right. when we come back, we're going to talk markets and what investors are watching ahead of tomorrow's big jobs report, plus a look inside netflix and what's sending its shares to new heights. the streamer is set to hold its annual shareholder meeting today. all of that and much more when squawk box comes right back.

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first is tariffs. and the second is what's going on with the national debt with regard to tariffs. i'll start there because i'd like to discuss both. tariffs are very simple. they're just a tax. there's only two ways a company can deal with the tax. they either push it through to the end customer or they absorb it in their margin. and to be honest. >> they eat it. >> they eat it. >> president trump says, right. >> they do. and i'll be honest, i really i empathize with president trump because there's no company that has a mastery of the supply chain more than walmart. but i really didn't like that. he said that they should eat it because when you go public, you subject yourself to a whole nother group of shareholders, and the shareholders get to decide management if they want to eat it, that's going to drive down the stock. so i really didn't like that. he said that. and i think that it undermines the very nature of capitalism that is embedded in public equity markets. so when i look at what's going on, i think that there are opportunities being

derived from what's going on with the variability of earnings because of tariffs. so, for example, apparel, autos, industrial machinery, these areas are being impacted by what's going on with tariffs. but i think that creates opportunity because of the uncertainty around the earnings variability. and you're getting much lower multiples becky in these areas today. >> okay i was just looking at the walmart shares. we had it up. those shares are up i didn't realize 10% since the trump tariffs were enacted on some of these things too. it's up 10% year to date. but i believe we just showed a chart. if you can go back to walmart since the tariffs began. >> yeah, it's really interesting how markets react to things based on what people say and then what actually occurs. i mean, walmart again, they haven't done that right. they haven't. and they have they have not chosen to do that. >> so walmart's been the ones that went to china and said to their suppliers, you're going to have to take a lot of this on.

and they've been pushing back on price increases. >> probably in a position to handle it better than anyone. but the s&p the s&p is almost at an all time high. >> it is. it is. and i think that there's a lot of positives. walmart yeah walmart's a big piece of that. and the mega caps have carried it i mean this has been a mega cap trade for a long time now. and in fact i was going to mention this because since the end of 2020 the s&p is up 70, small caps are up seven. so this has been a mega cap rally. money is just flooded into the big companies. they've been impervious to all of this. and it makes sense. they can deal with tariffs so much easier. they have so many levers to pull. >> this reminds me of covid, when the small companies really struggled with the large big boxes were allowed to stay open. it's true. they're going to be the ones that have the advantage. >> it's true, it's true. so they're benefiting from this. but i think that has created opportunity. when you look at other areas i want to touch on debt. can we talk about the debt for a second. so i hear all these people and they're all talking about that. the reason rates are up is because of the

deficit and because of debt. and joe, you've made the point that interest rates have just really normalized. so i want to make a couple of observations. since 1960, total debt for the us. the keger for that is 7.6%. that's the growth rate for the us debt. okay. if you look at the defense budget, i hear a lot of people saying, well, we're spending as much on interest as we are for the defense budget. well, the defense budget grows at 4.5%. so it makes sense that we would spend more on interest, particularly when rates are up. and when i think about how america likes to spend its money, there's lots of things we spend money on. interest rates are just back to where they were in 2006 and seven, around 4.6. and if you look at the median going back to 1980, that's including when they went to 15%. okay, you're right. at the median 15. or if you go back to 2015, 2016, there was an article in the wall street journal that

said that the danish okay had floating rate mortgages they had taken out, and they were getting paid interest. this was insane. it was totally insane. what was going on with low rates. rates have normalized. so i don't really buy that. the reason that rates have normalized is because everyone's worried about deficits and debt. and i think there's another way to think about us debt. and that is if you look at the total debt divided by the total market cap of the equity markets, it's 70%. it's much lower than actually a lot of other countries around the world. and our country is made up of companies. it's just like a university. a university is nothing but a bunch of buildings. right? but what makes it university is the people that go there, the students and the faculty. that's what makes harvard. that's what makes princeton. that's what makes all the schools. this country is just a group of companies, and it's what sets us apart. and i would argue that, just like you. >> think it's okay to continue to grow our debt.

>> well, i'm just being a realist. i'm just being a realist. if you look at what's going. >> on either way, i guess. >> well, okay, i'll make this point. trump's bill adds 30 to 50 basis points per year to the national debt. that's actually lower than the long term average. the long term average has been higher. it's been more like 100 basis points. the reason for that. >> we've blown out the debt since covid. >> we have we added 6 to 8 trillion. but becky, even with that the cagr has been consistent. we like to spend money here. we do. and the markets tolerate it because we're the reserve currency. and going back to the companies. >> we do it because we can. >> but let me let me counter that with something that geiger capital posted yesterday. i haven't checked their math on this, but geiger capital's account said million seconds ago 1,000,000. >> seconds. >> ago was may 23rd. 1,000,000,000 seconds ago was 1993. 1,000,000,000,000 seconds ago was 30,000 bc. and by the way, the us national debt is now rising by $1 trillion every 180 days. i hear what you're saying, but if you get to 120% of gdp.

>> we're going to 150. >> if you if you start to get to those numbers, it does seem like you're going to risk at some point, treasury buyers saying, no mas. >> i agree with this. >> and the dollar will be worth the same as a dollar. >> has been under pressure, even as our fed has kept rates high and other central banks have cut throughout this year. >> well, the dollar was the highest since oh two. okay. the dollar was the strongest since the dollar was weakened recently. but i want to be very clear. i like cutting spending. i'm not saying we don't need to not cut spending. we should cut spending. but japan let me touch on japan. everyone says japan is the outlier. they have debt to gdp of 250%. the us is 120%. right. going back to oh seven, we were 67. so if the capital markets were really worried about the fact that we've doubled the debt to gdp, okay, then why are the yields at the exact same level that they were 15 years ago? japan is considered an outlier because,

okay, people say, well, they buy all the jgb's the japanese government bonds, they buy them. so that's why it's an outlier. so all the economists say that's the reason the us is also an outlier, though, because there's no other country in modern history that has done what we've done. we have companies that mushroom the ownership interests in companies. and the capitalistic model here is totally unique. i don't think there's any comps for it. so i don't think that we have as big of a debt problem as people say, because i think that the borrowing capability of the us is far superior to what people. >> like mmt and american exceptionalism, which i agree with a lot of. >> the american exceptionalism part, not the mmt. >> no, i don't agree with mmt, but i see what you're saying. but that is the basis for mmt that we can always issue. we're always going to be able to sell our debt. >> joe, look, i want to be an idealist, but i have to be a realist. the kegger is 7.6. it's been 7.6 before covid. it's

accelerated a little bit. the bill is going to increase it a little bit. the deficit is bigger. but i say this, i'm like, well, the deficit is bigger. it's like, well yeah the deficit is bigger. but did people think it's almost like teaser rates when the when the ten year was at was it, you know, 63 basis points. nobody thought this was going to happen. you know it's like i remember the big short when they were like, oh you think the rates are going to stay there forever? i mean, come on. rates normalize. they went right back to where they did mean reversion is at play once again. and that's why i like some of these other areas going back to in the stock market. where's opportunity. there's big opportunity for mean reversion. and it's in other pockets of the market that have not participated, like the big growth names over the last ten and 15 years. >> john, thank you for coming in today. >> thank you. yeah. getting up after the kegger, you know. >> after the kegger was you know, i was talking about the you know, we're talking about i'm talking about debt kegger. you're talking about different types. >> of kegger. i was i was kidding that you were at the big frat party last night. kegger,

bro. >> yeah, yeah. >> you're like. you're like the grad student that goes back. >> yeah. >> yeah, yeah. >> i, you know, i wasn't a fraternity, so i can you were, i was, i was, i was president, i was president of my fraternity. >> no. how did i know that. >> i was, but only by accident. only by accident. because the president actually got booted. so i get a call that the president had been booted because he did something that was inappropriate. >> what a toga party. >> he got in trouble. i was in d.c. on an internship. he got in trouble. he got in trouble, and they called me. they said, john, you're vice president now. you're going to be president. i said, okay, so that's how it happened. the cure for. >> all that. thank you. coming up, a report. you like that topic? that's my favorite. a report of fears in the economist community that some key inflation data may be less trustworthy than it was previously. a freeze on government hiring being eyed as a potential reason. we'll have that story when squawk box returns. >> opportunities can be hard to find, like catching lightning in

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>> plus on the go access to global market data, news and analysis as it happens. start streaming at cnbc.com plus. >> the new report in the wall street journal says that the bureau of labor statistics has told outside economists this week that a hiring freeze at the agency was forcing it to cut back on the number of businesses that's able to survey for price checks. to examine april inflation data, the bureau had to use a less precise method for estimating price changes. it has also cut back on the cities in which it actually collects consumer inflation data, eliminating collection from lincoln, nebraska. provo, utah. and buffalo, new york. the agency said it makes reductions when resources can no longer support the collection effort. economists worry that the staffing shortage will impact the quality of recent incoming

inflation reports. >> the story i read through it, it did go out of its way to say they're not suggesting that there's any manipulation of the numbers that are taking place, but these are really important numbers. if you get inflation wrong, it affects things like social security benefit increases, it affects tips and obviously, questions about the federal reserve's decisions too. exactly. and, you know, i didn't even realize exactly how they conducted this number. they literally send hundreds of people out there to go price check. and it's like channel checks going into stores and checking to see prices on some of these things. they'll make substitutions. if they can't find the exact thing. if you're supposed to be talking about slacks, they may do the substitution with cargo pants or something. >> the margin for error the same on either overstating or understating it. this is just standard. the delta just gets bigger and it could be wrong either way. or does it favor underestimating? or over. >> in a situation where you're worried about prices going up, it may favor under inflation at this point just because you're

looking at a change in the delta. but it's an inaccuracy no matter what. >> the standard deviation just widens on both sides. >> right. all right. when we come back, the wait for video gamers is over. nintendo launching its highly anticipated switch to console. today, we're going to get a live report from the heart of the action right here in new york when we return. where are these people waiting outside, and why are they wearing those hats? first, though, take a look at yesterday's s&p 500 winners and losers. >> executive edge is sponsored >> executive edge is sponsored by at&t business. next level at&t business, we guarantee our best deals on any smartphone with your choice of our best plans. what we can't guarantee...your employees having a similar work style. you hired them. or your staff all having the same vibe...

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love, your mind. thoughtful living thuma. >> all right. welcome back everybody. nintendo launching its switch to console after years of anticipation by gamers. steve kovach is live outside new york's nintendo square, and he joins us now with more. i saw the hats they were wearing. is that a mario brothers thing or something? >> yes. there are a lot of

people who are dressed up last night, becky in costumes and so forth. there's a big launch party at nintendo flagship store right by our offices in 30 rock, actually last night. some celebrities, we saw bow and yang from saturday night live. he was here picking up his switch to. you see a few people in line behind me. they have reservations to come in when the store opens and pick up their consoles. i happen to have one right here. this is it. nintendo switch to you. it cost $450. and it's kind of interesting because there is a tariff angle here. believe it or not, this was announced on april 2nd on liberation day, and nintendo got kind of caught on their back foot with these tariffs. they ended up keeping the console the same price at $450, but did need to raise prices on some accessories and other things to kind of make up the cost. this is produced in vietnam, by the way, which has a lower tariff rate, of course, than china. we actually caught up with nintendo's president, doug bowser, last night to talk a little bit more about tariffs and what they see moving forward about pricing. take a listen.

>> it's an incredibly fluid and challenging situation for not only ourselves but for a lot of companies. so we're continuing to really monitor the market and monitor where tariffs are going before we make any further decisions on pricing. the price that you see right now is the price that you can be expecting in the future. of course, tariffs could change that in the future. but right now $449 for the base sku and $499 for the bundle with mario kart world, it's the it's the price that will be maintained. >> so, becky, like so many executives we talked to, they have to be pretty dynamic and loose on pricing with the tariff uncertainty out there. but for now, holding still. by the way, nintendo says they expect to sell 15 million switch units this year. that would be roughly in line with the first version of switch in its first year as well. and by the way, nintendo is not just a video game company anymore. we know, of course, the partnership with our parent company, nbc universal. they have those theme park attractions in orlando this year out there in hollywood and also

in japan, and also some movies coming out. there's that new super mario brothers movie, a sequel to the original one, and a zelda movie coming out a couple of years. so we're really seeing nintendo move beyond its core of gaming. but today it's all about this new system here, and we're expecting to see a lot of people come through and pick up their new devices. becky. >> hey, steve, these lines outside waiting for a new product that's almost an anachronism. every once in a while you see that with like a new iphone or something that's coming out. but it is really tough to get people who are willing to stand outside in long lines overnight and dress up in characters. >> not not just overnight. becky, we talked to someone here. they wanted the honor of being the first in line. they got here two months ago, so they could be the very first in line. yeah, exactly. they've been camping out in midtown manhattan. >> how do you do that? two months ago. how's the guy gone to the bathroom over the last two months? >> i think they swapped people in line and things like that. i don't think they're actually

living on the street, but they have a system going so they can get people in and out. >> a lot of rain the last two months. that must have been pretty miserable. >> yeah. oh, probably pretty awful. and i would also add, it's been eight years, becky, since the last console came out. so you want to talk about why are people lining up. well that's eight years of anticipation building off of a very successful console. there are over 150 million original switches that are still in use today. it's becoming a huge gaming platform for nintendo. people are still using it even all these years later, and now they're ready to upgrade after eight years. becky. >> my 13 year old, wants one. i have some questions about an adult who'd be willing to sit out in line for two months waiting for one. >> it's all gimmick, and it's to get, you know, youtube views or whatever. so yeah. >> like in three days, can't you just walk right in? couldn't you walk right in like, in three days and buy one? >> you have to reserve it. you have to reserve a spot in line is how they have it. there guys. it's not like apple. >> when's the line going to be gone, steve i mean.

>> can i buy one. >> online then wait a month? in a month, you're just going to be able to walk in and buy one, right? >> probably. they say the store behind me, they tell us over the next couple of weeks they expect to move several thousand units behind me. and again, these are reservations. they have their reservations full for the next two weeks. then they'll open up another tranche of reservations. so the people you see behind me, they haven't been camping out all night necessarily. they have a reservation for when the store opens here in a couple hours, spot in line. it's much more orderly than you would think of some kind of chaotic line like we saw, like with the original iphone or something like that. >> some of these are business people, as you mentioned. if you're trying to get youtube views or if you're trying to buy one and then turn around and sell it on ebay for twice the price or more. >> so then you go home. >> entrepreneurs. >> then you go home and you lock yourself in a room and play video games for like 24 hours a day for six months. >> and then you're much more. >> oh, you don't have to. you don't have to do that, joe. this goes on the go. it's not just a. >> it's not. it's even worse.

>> you can take it on the go. oh yeah. it goes everywhere with you. yeah. take it to work. why not. >> put it right instead of going. >> to buy one? i can tell he's ready to buy one. >> he's been right here on. >> pick one up for me. steve. you've been. you've been there three weeks, right? pick one up for me. >> exactly. next time i come, we'll play mario kart together. okay. >> thanks, steve. we'll see you later. >> thanks, guys. >> all right, coming up. i didn't even know you could. i don't know what the video game is. what it could. i like to, you know, walk spoiled walk on the golf course. i could probably i'd probably be better at video game golf. >> they would kick you right out of that golf course. >> oh, if i was carrying one of those around us. but you need to get outside. >> yes. >> what it would take for the us to reach a trade deal with china. president trump venting a bit this week. it is proving hard to get an agreement with china's president xi jinping. former acting deputy trade representative wendy cutler is going to join us after a break.

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with itrustcapital because access equals opportunity. invest in bitcoin at itrustcapital.com today. i play gigs, sometimes i have to travel and rent out equipment before the weekend, or else i have to cancel. early payday guarantees that i can make it to any gig, any rehearsal, anytime. it's easier for me to do what i was put on the planet to do, and that's music. join me at time.com. >> cnbc live ambitiously. never miss a moment. >> i think tariff anxiety comes from there's been so much change in the last few months that it doesn't matter where you are in the world, that these ceos all

have a little bit of tariff anxiety. >> that's our future. to be able to turn these agents, which are essentially workforce robots, information robots and humanoid robots, you know, physical robots to expand the world's gdp. >> president trump and china's president xi are navigating a tense standoff over trade between their two countries. earlier this week, president trump posted on truth social that she is extremely hard to make a deal with. joining us now, wendy cutler, vice president of the asia society policy institute. she's former acting deputy, us trade representative. and all the anecdotal evidence we hear, wendy, is that both sides are digging in. and even more than in the past, and that a lot of it now comes down to enforcement. and actually, you know, monitoring compliance with things. but is it this simple,

wendy? china's mad now because of the student visas and because we're not sending them ai chips, i guess. and the united states is mad because china wants to use our money and our technology to take over the world. i mean, aren't we aren't we in aren't we the good guys in this? why does the left so frequently celebrate when it looks like trump is like, these are feckless efforts against china, and they almost cheer that that that we're not getting anywhere. >> well, look, negotiating with china and making breakthroughs is always been difficult. even if you reach agreement with china. and that was done just three or so weeks ago in geneva between secretary bessant and his his chinese counterparts. we've already seen there's an impasse in implementation of this agreement, particularly with respect to china's agreement to lift its restrictions on critical metals

and minerals to the u.s. market. and until that happens, we can't even begin the negotiations that were envisioned in the geneva talks with the 90 day clock ticking. so this dispute is escalating. and, you know, hopefully we will find a way to de-escalate and get back to the negotiating table. but this does not bode well for de-escalating us-china relations. >> but wendy, would, by definition, will china ever do anything that would really hurt or stall its efforts at i mean, what what do you characterize china's eventual goal? is it is it in any way benevolent for the entire world, or is it all about china? you know what i mean? i just view their their eventual goals as being antithetical to our eventual goals. so why do we expect to get anywhere with this country that wants to supplant

us as the leader of the globe? >> well, again, you know, look, they have ambitious goals to dominate in many industries. that said, they're very interconnected with the rest of the world. they need our markets, they need some of our inputs. and we still have over $600 billion of two way trade. what's interesting this time around, this dispute with them right now is not about tariffs. china lifted the tariffs and agreed to a few weeks ago. this is all about critical minerals, where china dominates 70 to 90% of the market. and what's also interesting, it's not just the us complaining about critical mineral access. now we're also seeing our european, indian and other other countries complain as well because we are all way too dependent on china in this sector. and it's not a sector where we can, like, build our competitiveness overnight. >> wow. so do we have an ability

to squeeze china in a way where they where they feel it? and in squeezing them. is there any way we're not. we're squeezing ourselves and we're squeezing ourselves because we're it's going to come back and hurt us too. so it doesn't seem like we have a lot of great options. >> well, exactly. but china faces those same obstacles as well. and i believe at the end of the day, that they do want to deescalate with the united states. but right now they feel that time is on their side in this whole, you know, trade dispute with the united states. they think that the u.s. is under much more pressure than china. it is, you know, higher threshold for pain. it is it can take domestic measures to boost its economy. and it's well positioned to wait. >> and she can his people can stand a lot of pain. and he knows that. so it's just that's something we can't do here because we i don't know that we don't have that option because

we actually have elections. so the whole thing, it's almost like the deck is kind of stacked against us. it seems like although there's some things we have in our favor too, because they got a they got a lot of people that are trying to bring out of, you know, into what's the gdp now there. wendy, is it is it even 10,000 a year versus 60 here? i don't even think. >> it's around there. it is, it is you know, it is increased in recent years. but they you know, they still have 1.4 billion people. and, you know, their economy is facing challenges. so we're kind of in a game of chicken right now. and you know, we'll see if the two leaders get on the phone as president trump keeps, you know, urging. >> okay. very good. interesting to watch, that's for sure. it's like intrigue. wendy. thanks. wendy keller. >> thank you. >> all right. coming up this morning, reddit is suing the maker of one of the most popular chat bots. it's contention the

ai bot is stealing users data. that story is next, and we'll be right back. >> it is my honor to welcome the hardest working software on television to the public market. >> and there have been three chapters in the company's life. this one is the one i'm most excited about. >> when logic bends, when certainties shatter. when left is right and right is left. which way do you turn? go beyond the headlines. a trusted global perspective. the economist know which way is up. >> at public, the high yield cash account is a no brainer. i know my money is working hard for me, and i know i can access it anytime i need it. it's very simple. better rates mean faster growth, and that's exactly what i need. >> did you know that your life insurance policy is an asset that you can sell? hi, i'm jay jackson, i'm the ceo of abacus

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mean, to be honest, the decks have made it even better. i'm so happy with it. >> clean. >> all right. reddit filing a lawsuit against anthropic claiming that the ai company is illegally scraping its data to train its claude chatbot. reddit says that anthropic is accessing its content despite being asked not to do so, and has trained on users personal data without ever getting permission from them. reddit has more than 100 million daily users who update the site with the kind of material frequently sought by ai companies for training their models. it's seen as really valuable stuff. the site has a licensing agreement in place with google, also with openai.

for its part, anthropic said that it disagreed with reddit's claims and that it will defend itself. but just like my lawn. >> no, but the cesspools on those chat rooms and reddit, i mean, if that's that's where they get a lot of their info from, what else are you going to do? i know you. >> need more information from these constant places. it does give you took up with it. who are we talking to yesterday? >> if you got if you if your view of the world. >> is based on what's going on on reddit in this chat room. >> you've got. >> you've got serious problems coming up. we're going to focus on netflix. the stock hitting another all time high. it's up close to 40% this year. stay tuned. you're watching squawk box on cnbc. >> in a place like new york city, it's very difficult to find open areas. this is the challenge for the port authority of new york and new jersey, and the new york power authority when looking for ways to meet their decarbonization goals. the largest canopy. >> project in new. >> york state, it is the central

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campaign against president trump's tax and spending bill after calling the plan, in his words, a disgusting abomination. that was. earlier this week, stablecoin issuer circle pricing its ipo at $31 a share ahead of its public market debut. that's above the expected range of 27 to $28 a share. it gives circle a $7 billion valuation. and we've got more economic data on the way. the weekly jobless claims report, april productivity numbers and the latest international trade figures are due at 830 eastern time this morning. ahead of that, we are seeing some modest advances in the equity futures. dow futures up by about 33 points. the nasdaq up by 15. the s&p up by about three points. >> president trump says he's going to deny visas for foreign students trying to come to the u.s. to attend harvard university. he also announced a travel ban on 12 countries. eamon javers joins us now with more. hey, eamon.

>> hey good morning joe. yeah. the president with a flurry of activity yesterday at the white house, a number of proclamations and executive orders. the first one is this travel ban. and take a look at the countries that are impacted. he's talking about 12 countries here that will have suspended travel to the us for citizens. that's afghanistan, burma, chad, republic of the congo, equatorial guinea, eritrea, haiti, iran, libya, somalia, sudan and yemen. there's also partial restrictions here for seven other countries. and the president says all of this is going to take place monday at 12:01 a.m. so there will be a flurry of activity at the border here as well. and then on harvard, a similar issue in the back and forth with harvard university and this administration, the president saying that he's going to deny visas to harvard's international students in this proclamation that the president signed yesterday, trump said harvard failed to present sufficient information about its foreign students to the federal

government. in fact, the administration said that harvard only presented data about three students who had been disciplined, and they said that that number indicated that harvard was not being serious about discipline and security. harvard university, responding with their statement, saying, this is yet another illegal retaliatory step taken by the administration in violation of harvard's first amendment rights. harvard will continue to protect its international students. so, guys, i think on the harvard front here, you can expect that university to continue to fight the administration in court. i would imagine that at some point you'll see lawsuits around this, and we'll see where it goes in the courts. you remember on the travel ban issue, you remember back in trump's first term, he had what he called a muslim ban of travel from certain nations that were majority islamic. that one was initially struck down. there was resistance in the courts. they reformulated it. in the end, they were able to preserve that travel ban in the first in the first term. and

president biden struck it down, calling it a stain on the nation during biden's term. now that travel restriction is back, the president says this is necessary for safety because these countries don't sufficiently vet people because they're hotbeds of terrorism in some cases, and they're not cooperating with u.s. immigration forces. guys, back over to you. >> there's a lot of obviously, as you said, a lot of litigation that we can expect from harvard. but, you know, eamon. the executive branch has a lot of power. and it's almost like fighting city hall. you might win some court cases. you might. but he can do some of this stuff. and alan garber i don't know whether it's good or bad. but you know now he's kind of been set up as the lead of the resistance. i don't know if the resistance to what, i guess the resistance to curbing anti-semitism. i don't know why you'd want to be the face of not knuckling under to curbing

anti-semitism, but that's the position he finds himself in. i don't know how it plays out, but harvard, you know, harvard. >> the argument is, yeah. go ahead. yeah. i mean, the argument is that, you know, there is anti-semitism and then there's free expression, right? and criticizing the government of israel, military actions taken by israel, that sort of thing is simply free expression and not anti-semitic on its face. and so the question is, you know, where in that continuum does it shift over the line? and what harvard has said is we're going to defend free expression and free academic inquiry, but by our professors, if. >> jewish students still aren't. >> safe here. >> jewish students still aren't safe. everybody likes peaceful demonstrations. no one's trying to stop peaceful demonstration. i don't know if i want them screaming. death to the jews and genocide to the jews. and, you know, from the river to the sea. i'm not sure that just seems to spawn the violence against the jewish students. so you can't feel safe. it is not. it hasn't

been fixed. it has not been fixed. and they should get together, figure out a way to fix it. and that's what i mean. i think he's emboldened now because the left is holding him up as some type of, you know, the leader of the resistance. the resistance to what? the resistance to curbing anti-semitism. who wants to be the leader of that resistance? ayman. but this is just me. yeah. look. >> politically, politically, joe, this works for trump, right? because it's both people like me also anti it's also anti elites right? i mean yeah going after harvard and columbia the very top. >> that's the bonus. he gets. >> on the coast. >> the bonus this. >> fits trump's message right. >> yeah. politically thrown in. >> for free because it fits the message of we're taking on the elites. i'm part of you the maga voters. right. and this is part of trump reframing the republican party as a populist, working class, anti elite party. and that, you know, for corporate folks that has some rebound effects because this is also a party now that doesn't

see itself as totally aligned with corporate elites as well, sees them as sort of in the bag with some of those academic elites. and so this is a reframing of american politics in a way that we really haven't seen. and so this is a morphing of a political party into something that's new. and we'll see, you know, sort of in the courts where the fight comes out. and then also politically, whether this ends up being popular nationwide, and this ends up being something that people run on in 28. >> and there is a question how long it lasts and does it outlast donald trump? and i saw i saw george clooney, who actually from my hometown, but i saw him saying, oh, you know, trump's very charismatic and he is, you know, a celebrity. and once he's gone, it's the entire movement will be will be dead, which i think totally misses sort of what sentiment in the country kind of spawned something like like maga. so i don't, i don't know if it ends

when donald trump. >> i mean, if you ask, you know, my opinion. not that it's worth anything, but, you know, can you have trumpism without trump is a really fascinating question. you know, i think ultimately all those factors are in the country. they were in the country before trump, but trump harnessed them in a way that's sort of sui generis, right? his personality, his ability to proceed amongst, you know, enormous criticism, his disregard for the traditional rules of politics and sort of remaking politics in his own image. that's something that very few people can do. and so, you know, could a jd vance do that? could a josh hawley do that? you know, marco rubio, maybe. are there are there people out there who could carry the trump torch forward in 28. you know, i, i don't know that they have the same personal swagger that donald trump has. well. >> they're up against if they're up against. >> aoc. >> they're up against the party's leader, aoc. it might not be that tough of a battle. democrats got their own problems

with with trying to find someone that anyone would vote on. >> the top spokesperson, the top spokesperson for joe biden just resigned from the democratic party yesterday. exactly. bizarre. i mean, that party has some significant challenges, but there's a couple years left and. >> probably not a. >> good sign. we'll see what happens. >> wrapping this up, amy, we're having this heart. >> to heart trending, right? >> having this heart to heart. and they're wrapping us up. i don't get it. they got to do a chart of a stock, i think, to make everyone happy. all right okay eamon. >> come visit us in studio. harder to shut us up. >> yeah. let's do netflix. >> all right. we'll see you then. >> we are going to do that. >> yeah netflix hitting an all time high in yesterday's session. the company is hosting its annual shareholder meeting today. joining us right now is mark mahaney. he is evercore isi, isi head of internet research. he recently raised his price target on netflix to $1,350, which isn't that far off from where the stock sits right now. even though we're hitting these new highs. the last tick

on this was $1,241 mark. what makes you think the momentum continues here? >> well, it it may not becky. you know look the stock's up 40%. it's trading in the upper end of its valuation range. this is a small buy for us. but it's still a buy you've got with its strongest near-term you got its strongest content slate perhaps ever coming up in the back half of the year. when you've got the season finales of shows like stranger things and squid games, also the very popular show wednesday. so the content slate is super strong in the back half of the year. you're starting to see, based on what happened at the upfronts a few weeks ago, advertisers start to pay more attention to netflix. it's not a must buy, but it's a must consider based on the channel checks that we've done. this company has shown the last couple of quarters material, you know, 10 to 15, 20% upside to operating income estimates. so the operating income is rising. the free cash flow is rising.

the fundamentals are one of the strongest in large cap internet today. it's probably a sustainable 25 to 30% earnings growth. so that that by itself you know is the leading play in streaming with the company that probably still has less than 10% share of its global market. that's a pretty powerful combination. and it's a good reason to stick with the stock, especially if you have any recessionary concerns. no, particularly if you have some. this is one of the assets that consumers probably stick with more than any other. >> yeah, i mean, they were talking about how they're going to spend $18 billion in content, and that's not anywhere near hitting a ceiling. is this just a simple flywheel at this point you've got the eyeballs to keep them. you have to keep spending money on the content. and can anybody catch them? >> yeah, somebody could catch them. but, you know, we've had a real separation. >> between netflix and other streaming companies. i'd say for the three last 3 or 4 years. and you know that the market for streaming has been growing for some time. it's sort of

inflected up during during covid, and very few companies kind of stayed with the course and kept with the spending. netflix did. and this is something where the bigger you are, you know, you can bid on these sports rights or you can bid on these major content franchises. whoever has the most subs can amortize that content. the cost of that content over that subscriber base. so there are real advantages here to being the largest player in the in the space. there's also much less regulatory risk for a name like this than there is for the other big tech names like, like a, like a google or a meta. so that that's sort of explains why. meta. sorry, netflix is sitting where it is. but again, becky, to your kind of implied point earlier, look, the valuation here is pretty high in the stock's had a great performance. it's a small buy i think they're much better buys in the internet space. but i'll stick with netflix. it's a really well proven management team. great business model large total addressable market or large tam. these are the kind of stocks you want to own in your portfolio. you want to dig in aggressively when there's a major correction. that's not

where netflix is now. >> two quick questions. who do you think is in the best position to catch up or take a dominant second place position in all of this? and very quickly, you don't have to tell me why, but what are the better internet buys in your space? >> better internet buys? >> i'm going to work backwards. are google, amazon and uber. and then the biggest competitors youtube, amazon and disney. all three of those companies could are long term competitive threats and risks to netflix. >> okay, mark, thank you very much. >> thanks, becky. >> see you soon. the kimberly-clark deal that we told you about earlier is out, and it's different in the details from what had been reported before. the company is actually spinning off its international tissue paper business into a new netherlands based firm and selling a 51% stake in that firm to brazil's suzano. the company says that the deal is valued at around $1.7 billion. kimberly-clark will keep a 49% stake in the company post spin.

you can see the stock is up by about $0.06. suzano shares down by about 2.4%. when we come back, a special interview with jim colter, the executive chairman of private equity giant tpg. we'll get his take on on dealmaking, global investment opportunities and navigating tariff uncertainty. squawk box will be right back. >> at ihg hotels and resorts, you can stick to the agenda or experience something unexpected, all while earning points for free nights with ihg. one rewards with ihg 19 hotel brands, you can guest how you guest.

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at garden centers, or learn more at proven winners. color choice.com. >> the biggest name in private equity. biggest names are gathering at the super return conference in berlin this week. and leslie picker joins us now with a special guest. hey, leslie. >> hey, joe. good morning. yes, i am here with jim colter, the

co-founder and executive chairman. thank you so much for joining us from super return. >> it's a pleasure to be here. >> so you this is your first time at this conference in ten years. and the industry has changed so dramatically over the last decade, whether it's the growth in private credit, the democratization of all to the push toward the retail channel. do you think that the industry has gotten better or just bigger? >> well, physically here you can see the industry has gotten bigger. this has been an experience for me, leslie, because when i started in the industry, you had less people in the industry than were in line for the free ice cream here last night. we're in a hotel with hundreds of rooms where the beds have been moved out, and they've been turned into meeting rooms, and they're handing out swag that say live love and leverage, which is or carried interest as a tote bag. i have a mixed relationship with these conferences. i don't go to many of them because essentially they're about common wisdom.

investing is about uncommon wisdom. but you do have to stop in from time to time. and the mood here is one of scale. you don't often see the scale of the private markets. and one of diversity. different moods, different opinions. and i think what's interesting to me is seeing the physical size and breadth of this marketplace together at this conference has been an eye opener for me. >> yeah. you're right. you bring up a good point about surfing versus statistically significant insights that you could get from just the 7000 people that are here at this conference. one area of groupthink that's been talked about a lot at this conference has been, you know, back at davos this year, the whole u.s. exceptionalism theme was alive and well. and here we are five months later. and yes, we are in berlin in europe. but it definitely feels like the narrative has shifted to investment opportunities in europe given the stimulus here, given that rates are declining, given that the valuation there's

valuation discount to counterparts in the us. how do you feel about that? do you agree with it? and do you think the pendulum will swing? >> this is a reminder of the international nature of private markets. so if you dial back 2 or 3 years ago, essentially europe froze for a period of time. it went on pause because uncertainty creates pause. in private markets, we don't have to deploy. so we can wait until we get certainty. what's happened now is uncertainty has moved from europe to the us as policy issues are creating a moment where the private markets will pause in order to understand rules. but i've always said this about private markets. as you tell us the rules, we'll play the game. but if we don't know the rules, we have to pause. so as a result, there's two areas right now where we see common wisdom picking up momentum. one is here in europe, where i think in some ways some of the geopolitical shifts are creating a resurgence of energy and activity. and then

private credit is clearly the flavor of the moment as it diversifies and gains share versus public credit. >> you say it's a flavor of the moment. it seems like you're not sure whether it will be. >> i think actually, i think it has a long way to go. if you think about private equity. private equity for 30 years has been picking up share versus the public markets. private credit is really ten years into that journey. and so i think there's very substantial way to go yet on that. and yet there is an underlying question of making sure that private credit and the credit cycle are friends. >> which we haven't seen, of course, yet. speaking of cycles, you're here, you're going to be on stage with bono in a little bit to talk about the ten year anniversary of the rise fund and tpg, which focuses on climate investing. speaking of evolutions here, there has been a huge sea change as it pertains to esg as it pertains to climate. i saw a conference board survey from a few days ago

that found 80% of companies are reworking esg strategies, and a large part of that is because of the federal policy makers and regulators that they're they're seeing a less accommodative environment for that. what does that mean for your appetite to do deals in the climate space? and what kind of challenges is it presenting? >> well, the phenomenon you talked about of the pendulum swinging back on business and social responsibility has been going on since ralph nader and friedman in the 70s. jimmy carter put solar panels on the white house in the 70s. ronald reagan took them off in the 80s. so this is an ongoing debate. and what i think our strategy is, you just keep doing what you're doing and keep focus on it. climate is particularly interesting because as we travel around the world, the one place the debate seems unsettled is in the us now and in parts of the us it's particularly it's particularly vociferous, even while texas becomes the largest clean energy state in the us, as

it has so around the world. we've announced several deals recently in europe, in india, in climate where things are going full speed, but the us market will, as i said before, about the general uncertainty, will pause as as the policy gets figured out. >> taking a time out, to borrow from your metaphor earlier. >> as a timeout. but that's a good thing. that's how it's supposed to work. it reminds me very much, leslie, of what the health care market felt like in 2010. right. for a moment, everyone got very nervous about health care investing. the health care stocks went down 15%. the regulatory world was reorganized, and then they doubled over the coming years. it's interesting to me that the public market understands buy on the dip. the private market seems to forget that. >> private market thinks pause on the dip. jim colter, thank you so much for taking the time out here in berlin at super return. guys. i'll send it back to you. >> okay, leslie, thank you very much. that's our leslie picker. when we return, racing the

waters around new york city. the new york sail grand prix is set for this weekend with some big money behind the event. we've got more on that with the co-founder and ceo of sailgp. that's next. and later, finance committee member, senator james lankford, who attended a meeting with president trump about the tax bill, will join us at 8:10 a.m. eastern time. we'll get the latest on where things stand and how they may be working this out. squawk box will be right back. >> time now for today's aflac trivia question. how many high school graduates are expected in school graduates are expected in the us this year? the ♪ (action music) ♪ woah! i can't do it! agh! cut! this gap! it's just too big. bring on the double! aflac! after my hospital stay, aflac helped close the gap by paying me cash for expenses health insurance didn't cover. nothing covers gaps better than the aflac duck.

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>> we are going to write the future of healthcare, one where care is more personalized, more accessible, and much lower cost. this ipo is an important moment, but it is still just the beginning of our story. >> a crucial may jobs report, as investors watch for signs of strength in a changing economy. will wage pressures and policy uncertainty shift the jobs outlook, employment numbers and analysis? squawk box tomorrow 830 eastern streaming on cnbc plus. and now the answer to today's aflac trivia question how many high school graduates are expected in the us this year? the answer approximately 3.9 million, the highest number ever recorded. >> all right. this weekend, 12 international sailboats will be racing in the waters between brooklyn and the statue of liberty. it is the new york sail grand prix halfway through the

fifth championship season of sail gp. and as of this week, fans can actually bet on those races. joining us right now is sail gp co-founder and ceo and yachtsman himself, sir russell coutts. and sir, thank you very much for being with us. >> thank you becky. former yachtsman, i should say. >> former yachtsman, once a yachtsman, always a yachtsman. i think we say this. this is really exciting. you guys have been with us before and we've seen some of this. but the excitement behind this, the viewership behind this, people are calling this the f1 racing of sailing. what's happening right now with your industry? >> yeah, we're going through incredible growth. and of course, we've got a very exciting announcement today with hugh jackman and ryan reynolds taking an ownership in the australia grand prix team, which is obviously the most successful team on the water that we've got. so they've taken that ownership with tom slingsby, who's the most successful driver in the championship. so very exciting. and yeah, we're looking forward.

>> to more attention and more focus. i guess that you think is going to be bringing your way to. anne hathaway has an ownership stake in the italy sailing team. >> yeah, yeah. we've announced the italian ownership last week, and we're not really chasing celebrity ownership, to be honest with you, but. >> are they chasing you? >> it's coming. well, i think for different reasons. i think this the value is growing so, so quickly with these teams that it's attracting investment from a lot of different sectors. so that's exciting. and you know we're we've got a bright future i think. >> where just in terms of the ownership prices, i mean, i think marc lasry owns a stake in one of the teams too. and i think, correct me if i'm wrong on the numbers on this. when he bought in the earlier pricing had been something around. was it $5 million up to $35 million? how have the numbers grown just in terms of valuations of these teams? >> well, you know, it's true. in season one you could probably

acquire a team for somewhere between 5 and 10 million. and we wouldn't sell a team for under 50 today. so it's been a rapid growth. we think we expect that to continue. we're about to launch teams 13 and 14 and take those to market. and there's been equity trading within some of the existing teams at significantly higher valuations than than what i've just said. so yeah, it's growing fast. the good thing about it is that when you look at the it's still a relatively low barrier to entry in terms of price, but the costs are capped and the teams now are attracting significant sponsorship. so a number of the teams now in fact four teams are now break even or better which this early in the in the in the development cycle is obviously, you know pretty good verification of the model. so yeah. >> we've been talking about the changes and disruption in the

media industry and this clamoring for live events. i guess that's behind the increase in value in all of these teams. >> well, i think it's one of the one of the things that's that's really appealing. i mean, obviously, well, maybe not. obviously our viewership is growing fast as well. and each time we add a new territory, of course, we're adding significant viewership. we're a global sports property where we have venues all over the world and iconic destinations. so each time we go to a new venue, of course, that that spikes a growth in audience within that market. so yeah, it's we're still in our infancy in many ways, but, you know, growing very fast. >> who are your viewers? what are the demographics? >> well, it's interesting. it's not it's not the avid sailing fan. only the avid sailing fan is probably less than 10% of our audience. so we just achieved some record viewership numbers

in australia, actually in sydney this year, where we had just over 21 million dedicated viewership. so that's live or near live viewership. and in season one, a good number would have been 5 million. so, you know, each time the properties really stacking up from a sports perspective, we're getting the racing fan as opposed to the avid sailing fan watching this property because it's really nothing like a conventional sailing product. >> more than faster than 60 miles an hour. >> yeah, yeah, yeah. so people when they think of sailing, they think of white triangles on a blue background. hard to understand. far from shore. well, salvage is pretty much the complete opposite of that. >> yeah. where where can people see this if they're not standing outside by the brooklyn bridge? >> well, the best place is we've set up a stadium in governors island, built a built some grandstands there right on the water's edge. and fans get a spectacular view of the racing. you know, seeing this fleet of 12 national teams coming, racing

towards you at speeds of around 60mph when the breeze is up is pretty incredible. and the when they're racing into turn one, it's a lot like turn one in formula one. you know there's it's just an incredible spectacle to watch. >> it's supposed to rain this weekend. does that shut things down or you sail through it. >> you know it's more the wind. that's that's that's our factor. of course. you know, i mean, new yorkers that they obviously up for, you know, getting out. >> everyone gets wet. >> yeah. >> might be a little water around anyway. >> it may be, but yeah sunday looks okay. saturday we might get a little rain during the during the racing. >> all right. well, sir russell, thank you for coming in today. it's really fascinating stuff to watch and exciting to see the growth. >> yeah. >> thank you. thank you. we appreciate it. >> all right. coming up stocks on the move this morning including a discount retailer. it's up sharply. and check out the shares of chewy this morning. jefferies downgrading the stock to a hold saying the valuation gives us pause. squawk box returns.

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>> good morning. welcome back to squawk box i'm frank holland. these are your morning movers. we start off with an earnings mover five below shares. you can see they're up nearly 6.5% after beating revenue and profit estimates and same store sales. those jumped more than 7%. the discount retailer also guiding for current quarter revenue. that's above estimates five below's new ceo says a renewed focus on value is working and shoppers are keeping a tight budget again. shares of five below up nearly 6.5%. also looking at pvh shares after earnings. they're falling even as the clothing company reported better than expected earnings. the owner of calvin klein and tommy hilfiger cutting its full year profit outlook as it faces an estimated $65 million hit from tariffs in its most recent annual report. pvh says most of its products are imported into the countries where they are sold. shares of pvh, you can see right here falling more than 8%. also, the shares of mongodb, they're surging this morning after the data analytics player

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>> the cnbc disruptor 50 list revealed. meet the innovative company shattering boundaries, shaking up industries and changing the game for good. special coverage begins tuesday on squawk box and streaming on cnbc plus. >> all right welcome back everybody. elon musk ramping up his campaign against president trump's tax and spending bill. musk calling on lawmakers, in his words, to kill the bill. by the way, he also called that bill an abomination. joining us right now with his elon musk wisdom is cnbc contributor walter isaacson, who is a perella weinberg advisory partner, tulane university professor, and, of course, the author of elon musk. and boy. >> well, you know, one of the things about elon is when he

goes all in, he goes all in. you know. >> when he goes all out, he goes. >> all in and all out, etcetera. he is somebody who's not exactly calibrated in his things and he is seriously upset. >> yeah. what's he mad about? because we've heard a lot of different speculations about whether. >> you know, he's always been on this strong kick for a long time about the deficit. he just thinks the deficit is horrible and now it's kicked in on him. one of the smaller things, but that's really needling him is the way they treated jared isaacman, who was the person who was going to run nasa, right. somebody who was close to elon and flew on two. spacex, a great choice for nasa administrator on friday when elon musk is in the oval office getting that rinky dink little box, wooden box with a key in it, which is, i think, a little bit insulting from trump. trump told him he was going to get rid of isaacman and then told isaacman then to. and that to musk, was just infuriating because they were doing they were going after jared isaacman to get at trump,

to get at musk. >> who's they? >> the office of personnel. the people who run that. there are few people in the white house that at least musk thinks did it. >> well, it was interesting because the reason they gave behind it, or that's been reported as the reason behind it, is because he had given democrats in the. >> party like howard lutnick, just like scott, donald trump, just like donald trump. and he had told trump right at the beginning, he said, hey, i've donated democrats. it's all public. that was not the reason. it was just a way to get at musk. and he, you know, musk. if you look at how he got angry with. >> biden administration, this is this infighting within the administration. >> yeah, i mean, part of it, but also it's the main thing is that musk has always been fixated on the deficit. and if you look at what happened with biden, it was a lot of things, some big, some small not being invited to the ev summit, but also the whole crackdowns and the regulatory thing of the biden

administration. so i think you're seeing the same thing with the trump administration. >> i mean, to me, it felt a little like just this frustration boiling over. we'd heard reports that, hey, i've given hundreds of millions of dollars to this. not to mention he took months of his time away from his companies, poured it into these efforts in the government, and probably feels like all of that was for naught. he took some serious. >> and joe made a very good point, which is that he went up against an entrenched washington way of doing things and found it wasn't like companies that you actually own yourself. or you can say, yeah, hey, let's get rid of this heat shield. let's get. >> once he realized that walter and i don't like this bill. i don't like it either. but, you know, the journal and the journal has been has not been maga or the. >> journal editorial page. >> the editorial page. they make trump mad all the time. and they've even talked about how this bill doesn't do nearly enough with medicaid and with a with a lot of different things.

but yesterday they did say to have elon almost make it impossible to pass it at this point, or at least to weigh in that vociferously when there's $4.5 trillion in tax increases, that will happen if it, you know, remember the good versus the perfect. ronald reagan said, if i get 80%, this might only be 51% worth doing. but not doing anything is even worse than doing this. >> bill a resounding endorsement. >> it's not at all. i would cut so much more, i don't think. i don't know if i'd put these new tax cuts in. i wouldn't do salt. >> will 2 to $3 trillion in deficit be? musk probably disagrees with you thinks it's just crushing to the country. >> but let me get to susan collins. rand paul thomas massie. ron johnson, ron ron. i'm even going either side. you can find people in the house

that are over here and over here because they're in blue districts, people in the senate that are over here and over here. it has to be what's within the realm of what you're actually doing. and elon found that out. that was my point. he found that out trying to shrink. >> the disappointments i had on the musk going into government was that he kind of shot fish in the barrel. the easy things like, let's get usaid play in pakistan or whatever. and that doesn't add up to real money. here's somebody who could have taken on the procurement processes in government, could have taken on. >> probably impossible to do too. >> well, i think maybe that's what hit him is that this is so entrenched in washington that the big stuff do we really need f-35s and an f 47 and an air of drones? and do they have to cost a thousand times more than they would have cost if spacex had built them? i wish he had gone after infrastructure. the problem was shooting fish in a barrel is it may make you feel good, but those are small fish. >> can anybody actually do this? if elon musk can't. and by the way, there was a limited amount

of time that he was going to. >> herbert hoover did it under the truman administration. >> i think you probably need to be elected. you need to be there for at least four years. you need to be able to sit down and really make decisions with. >> yeah, i mean, elon musk has never shown himself able to be a collegial player with many other people. he's always kind of owned the joint, and he was probably not the person who was going to make this happen, but i actually thought he could have done a lot more when it came to the cuts on. the big thing. >> is this schism between he and president trump, something that is ever going to be patched up, or do you think? well. >> i think they both have, you know, shifting loyalties. i'm not an expert in how trump thinks. i don't know if trump's going to get really furious at him, but i think that when musk gets on a particular jag, like we don't need more than $2 trillion added to the deficit, musk you know, somebody one of the republican congressmen said, you know, i just hope musk keeps being musk. i'm going, well, you got no worry there. he's going

to keep on. >> maybe. i mean, i saw some things that tweeted out to, i guess, does he use the platform, the x platform, of course, to really push this? >> i think i'm surprised. in the past four hours we haven't had 20 more postings, but these things usually last 5 or 6 months. and he feels strongly about this. and i think he's so frustrated with the little things. like i said, the jared isaacman and the big things like you can't go up against the washington establishment. and you know, in my mind, if that was going to happen, he should have really gone hard on the big stuff. he's still got his people in government. he still has luke. he still has the guy known as big balls. they're going to be trying to do these things, but they're not going to be able to take on the real waste in government. and, you know, the other thing that to get to this point, joe, i'm not sure on your 51% that whether or in oh boy, who's the you know. i know

tonight at the 92nd street y the new conservatism or elon musk, they feel that every single one of those tax cuts has to be extended. if they're going to increase the deficit. >> you cannot. >> just extension. >> that because there's new ones that have been piled on. i mean, this. >> is not necessarily a reason for the economy to get a deficit this high when the extensions and the new tax cuts and the extension of the tax cuts, we're not going to look at any of them and say, well, maybe those should be delayed. >> for a while. even the work requirements for medicaid weren't starting till 2029. it was a big deal to get them back. to 2026. but and you've got josh hawley, who i thought was a raging conservative who doesn't who wants to pull back some of the medicaid cuts. you know, it's almost. impossible to do. >> this in missouri. get medicaid. >> i know they need it all. politics is local. yeah, but a lot of the people that get it, they're getting ten times as much as the people who actually need it. >> and a lot of people get it.

need it. >> yeah. but you can't see that medicaid has been totally gamed and abused from what it was intended to be in the first place. there's a much cheaper way to cover the people that you want to cover than just expanding medicaid. that was done. you know. >> if you look even on the affordable care act, which is. >> which is why it. >> happened. >> which is why it happened and why medicaid is. >> it cuts back on people being able to get covered under the affordable care act. you can say that, yeah, we should give tax cuts so we don't have to pay for these things. or you could say, hey, maybe there's going to be some waste in medicaid. and maybe the affordable care act is helping some people. it shouldn't help. but maybe this is a balance we have to have in our society. that the. >> medicaid needs to be reformed well beyond what this bill is. a lot. >> of government from the pentagon to medicaid. >> well, there's plenty of cuts that need to happen, but i just don't think i don't know if new taxes is the way to go either, especially with tariffs. i mean, if or if the taxes aren't if tax

cuts aren't extended, you got 4.5 trillion in tax hikes. >> next tariff. >> you mean. no. if the tax cuts aren't extended. the tax hike of 4.5 trillion. or it is if you don't extend the 2017. >> there's going to be a simple. >> okay, i'll tell you what. the you know, i'm old enough to remember back in the days when government could work and finally a ronald reagan and tip o'neill would sit. >> down together. >> if you wanted to solve this, it's not that hard. you just need something that doesn't have. >> what do you think? why did we go after the pandemic to spending three times as much? why is the deficit 2 trillion instead of 800 billion? why can't we go back to pre-pandemic spending? >> because we don't have a political system. >> no. but or but the things you're saying is that you're throwing. you're telling me grandma's going to be pushed off a cliff? why can't we go back to pre-pandemic spending. >> we could try to have in this country again what we had for many decades, which is the chance for people to come together and say, okay, we're

going to have a bargain. >> on what. >> if that meant going back to pre-pandemic spending levels? you're not giving me even the possibility of that happening. >> i'm not. >> saying it shouldn't. he's just saying it's not. >> likely it can't. the political system. >> by the way, they're begging me to. begging my body in front of you and throw us to commercial. walter, thank you for coming in. >> hey, it's good to see you, becky. and you too. >> all right. >> squawk box will be right back. >> how did you all live like this? >> blow on it. >> wait. >> okay. >> come on. >> go for. >> go! >> i hate. >> these things. that's one of the. >> great things about consumer

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the website on the screen now. >> for more on the markets and what retail investors are watching right now. let's bring in jj kinahan, ceo of ig north america. we're looking at just some of your notes. jj you do point out, you know there was supposed to be best trade proposals. we haven't heard about that. we hear that deals are being worked on but we haven't seen any real details. even the uk deal was more a framework than a specific agreement. all these things sound horrible. why aren't we still at 4900 on the s&p? why are we back to 6000? all you're giving me are things that are right here. and yet the market is up. how much? >> no. i absolutely agree with you, joe. what happened? i do think that we need to see some

details come out. that said, first of all, it's the best game in town. look around. yes, u.s. has been outperformed by other areas, other areas of the world this year, but overall, the us stock market is still the most reliable. and i think when people are nervous, that's where they want to be. they trust the us stock market to hold up best. second of all, you know, it is interesting. on the tariff stuff continues to add volatility. but if you look at what's happened over the last month and a half. >> volatility has been straight up. >> but we've gone from a 60 to now a 17.5. so i think people have become comfortable being uncomfortable so to speak. overall, we do still have i think a lot of people are holding out. you know, if you look at the probabilities of a rate cut in june, they're at 79% right now. so i think a lot of people are also hanging their hat on that quite a bit. >> what's the nasdaq up now. >> percentage wise from the lows. >> you have 30%. >> yeah. yeah i think it's like 3233. it's unbelievable. i mean. >> it's just i don't i don't

understand everybody who comes on is still focusing on on uncertainty and on the tariffs and on the volatility and just ignoring the reality of the situation as the market has, has done is seeing something else. >> well, absolutely. and as i said, you look around, there is no better place, in my opinion, for your investment in terms of stability longer term. >> some people are saying europe now, some people are saying with the dollar declining and everything else. >> if you look at the regulatory environment there and you look longer term, it seems hard to believe that they're going to be able to get a lot of these rules changed fast enough so that entrepreneurs can come over there and really make their businesses grow in the same way they're able to here in the us. >> do you think that the next and we may retest those katie stock, other technicians think we're going to do that? i mean, we're not clear sailing. we're just back to, you know, back to really where we were before we started any of this stuff. but

will it be will it be growth fears. are those coming. is tomorrow's number important. and could it after the adp report could we have a weak labor market? >> i think if you do it's not necessarily bad news overall because of the fact, like i said about the rate cut 79%. if you look in july it's about 2,027%. so does it fast forward a little bit more of that to july. and again, there's so much pressure for that overall. and inflation seems to. >> be is it a good rate cut or a bad rate. that's what we're saying. if it's because inflation is low, it's a good rate cut. if it's because there's growth fears, it's a bad. >> and i think it's some combination thereof to be. >> honest with you. so it's part growth. >> part i do think there are some growth fears. >> over a dual mandate. >> and you know, you just reported the last few days about some of the earnings coming out and how companies are either not not setting expectations or expectations for the next couple of quarters are a little bit lower than, you know, look at dollar tree, dollar general, a perfect example of companies that, you know, over the next

couple of quarters. >> and you know what? retail investors are so bullish activity in meta and in walmart bearish and bank of america and disney. >> yeah all i think. >> could be near-term or. >> i think the disney one is primarily disney and lyft are two that are bearish. and i think it's a combination really of the fact that they both had a nice move up and disney taking some profits overall. >> yeah disney. >> yeah. so i mean look you know we were just talking about the lows. you look what they've done since then. and i think that one of the things that retail traders do really well that people underestimate them for is they're starting to manage their portfolios more like professionals. things that go up, you sell and try and buy some of the things that haven't performed so well. >> and disney has made a move. >> they made a really nice move. >> it was 80 back to 113. it's not back to 200 yet but no. >> but you know given given if you look at the chart right there, given where we've gone from april through may, it's actually been a pretty

impressive move overall. >> yeah, it really is. all right. you know, you didn't like the word. the name joe. should i be j.r. >> when. >> i j.r. >> my acronym was j j j everyone started calling me jj anybody who knows me. >> what was the last j. >> yeah because my initials were taken. >> oh somebody else already had it. >> somebody else already had my initials jj. jj jj were my initials okay. >> you don't even have two j's. >> no. >> and you don't even have two j's. >> no, it's. >> actually i'm not calling you jj anymore. it's just. no way. >> you don't have anybody that actually. >> used to call you joe. >> nobody in my family. >> what do they. >> call you as well? my sister say, joey, but my everyone else says joe. joe, what's. >> it say in the teleprompter right there? >> you get mad when other people have your name because you get confused. >> i get mad when morning joe has my name and calls himself morning joe when i've been on three times as long as he has. >> well, joe, thank you. you hate when i do this.

>> two by. >> two you want to use it, not you, but the other person. >> i'm comfortable with either one. all right. thank you becky. thank you joseph. you're welcome. thank you. good morning joe. >> good morning. thank you. real morning joe. >> r.m.j og morning. >> joe og mornings. >> there you go. >> i'm not going to say my license plate, but i have new customized license. that sort of channel that it's 8 a.m. on the east coast and you're watching squawk box on cnbc. it was a birthday present january 6th. i'm joe kernen along with becky quick. andrew is off today. among today's top stories. procter and gamble announcing plans to restructure, which includes 7000 job cuts or about 15% of its non-manufacturing workforce. it will make the changes over the next two years. kimberly clark well, she's spinning off her international tissue paper business into a new netherlands based firm. that's getting, said kimberly clark. she is spinning it off. i know it's not. you know, people are going to think that. i think

it's a person. yeah. aquaman and selling a 51% stake in that firm to brazil's suzano. suzano is going to pay about $1.7 billion in cash. kimberly-clark will use the proceeds for buybacks and usdc stablecoin issuers circle pricing its ipo, and it's above expectations at $31 a share. we'll see where it opens, but it gives the company a market value of close to $7 billion. it's going to trade on the new york stock exchange under the symbol. that's a good symbol. crkl. don't miss an interview with circle's ceo later this morning on money movers. >> let's get to frank holland. he's here and he's got a look at this morning's pre-market movers. frank, what are you seeing this morning? >> hey. good morning, becky. by the way, quick sidebar. i don't like when people call it the netherlands. it's holland. on a serious note, though, we're looking at winnebago this morning. preannouncing that its fiscal q3 results this morning.

you see, the stock's down nearly 8.5%. the company said the quarter was, quote, hampered by growing macroeconomic uncertainty, especially in its motorhomes unit, which accounted for more than a third of net revenue last quarter. management says they expect net revenue to be significantly lower than previously anticipated. right now. again, take a look at the stock. you're seeing a big drop off after that announcement down just about 8.5%. meanwhile, texas instruments those shares are higher after an upgrade to market perform from underperform at bernstein. you can see right behind me shares up just over a half a percent right now. analysts there saying that their market share for t is steadying after being under pressure for the last few years. it comes before a big earnings report for the semi industry. that's broadcom after the bell later today. right now broadcom shares also up over a half a percent in the premarket. also looking at dollar tree rising after an upgrade to overweight from neutral at jp morgan. analysts there citing same store sales growth in the prior quarter and improved store traffic. you can see shares of dollar tree up about one and three quarters of 1% right now. so this comes on the heels of dollar tree's q1 earnings. yesterday, the stock

tumbled after the company warned that its second quarter earnings could fall as much as 50% due to high cost pressures. and of course, that includes tariffs. again, shares of dollar tree up about one and three quarters or 1%. back over to you. >> frank netherlands. thank you frank. >> thank you. >> you know the difference. i actually looked this up when we were talking. the difference is between the netherlands and holland. netherlands has 12 provinces. when people say holland, they're really referring to north and south holland, which are two of the provinces. so you taught me something. >> the best known but the best known, like amsterdam, is in holland. mostly windmills are in holland, right? >> tulips. the tulips, all kinds of cool stuff. >> a good hoffman, whatever it's called. yeah, frank. >> thank you. >> thank you. >> let's check out shares of robinhood this morning. a bank of america analyst says that the brokerage is a prime candidate for inclusion in the s&p 500 index. that index is quarterly. rebalancing is set to be announced tomorrow. companies often see a stock boost when added to that benchmark index, because passive funds that track

it are required to snap up shares to match the index. robinhood shares actually closed at a record high in each of the last two sessions indicated, up another 1.3% this morning. >> uber announced that nikesh arora, the ceo of palo alto networks, is joining its board of directors. ceo dara khosrowshahi called arora a strategic and disciplined operator and a fierce competitor and a big hitter of the golf ball. in a memo to employees customer, shahi said he recognized that the change might prompt questions about his future, also clarified he has no plans, in his words, to go anywhere, anytime soon. >> when we come back, oklahoma senator james lankford will join us. he was at that gathering of the senate finance committee. republicans who met with president trump yesterday. we'll get his latest thoughts on the reconciliation bill and its fate. and then later, texas senator ted cruz will join us as

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and improve your living situation. get free rent reporting. download self today. >> republican senate finance committee members met with president trump yesterday to talk about his tax and spending bill. this came as elon musk once again blasted the

reconciliation bill and urged congress to kill it. joining us right now is republican senator james lankford of oklahoma. he's a member of the finance committee. and he was at yesterday's meeting with the president. senator lankford, thank you for being with us today. what happened yesterday at that meeting? >> yeah, about a two hour conversation about what's happening on taxes, what our agreement is going to be, what direction we're going to try to take. it was broad in many areas. the house has already passed their piece. the senate's got to pass our piece. then that's going to line up with the house. then the president's got to sign it. so it's very important we align all three together right now. so it's coordination meeting yesterday. quite frankly. >> we heard from senator ron johnson yesterday on squawk box. and he was very outspoken about this. he said he will not vote for a bill that's going to increase the deficit, doesn't like what's in this and is not going to support it. how much more difficult does that make the math when you know you have other senators like rand paul and a few others who are lined up behind him? >> yeah, i think senator johnson can speak for himself on this,

but i think the focus that he has had all along is how to how fast can we reduce deficits. we have $2 trillion in overspending this year. his focus from the beginning is how fast can we actually start pulling that deficit down? the speed of that is actually based on the number of votes that you can get on it. so we got 215 votes in the house for their package after their agreement was we've got to get 51 in the senate. so we got to get common agreement among all of it. there is common agreement among two things. we cannot allow the largest tax increase in history to happen in january. when we go from december to january, the tax rates will go up. we got to stop that. everyone agrees with that. second piece on it is how much can we reduce spending? that's where you got to get as many players together as possible, more than 51 to be able to get it done. so senator johnson is just continuing to push to say, don't forget about deficit, which none of us are. we've got to be able to get down as fast as we can. >> his idea though, senator, and i don't know why it wouldn't work. you would know us better than we do. why? but i don't

know if there's a rush. i mean, you've got you got the executive branch and you got both houses of congress. you could do two bills. you do one where you're concerned about the extending the tax cuts. you do, you do that one, then the next one, you you really do try to get back to where we were before the pandemic, because the spending levels now are astronomically higher. the deficit was like, i don't know, in the trump first trump, what was it, 600 billion, 700 billion? we're now stuck at 2 trillion. what would be the harm in taking your time and really looking at things to truly do what republicans could do if they weren't worried about reelection in two years? >> yeah. so a couple of things with that. one is we've got to get the tax part of this done as fast as we can. so do that, right? i do that. i totally agree, because you've got to get the next five months or so for the irs to be able to promulgate

all the rules, to be able to get that out to businesses, and so that they know the new guidance based on the new tax policy, because we're trying to have the tax policy affect this year. and so that allows people to go ahead and start investing if they haven't already in the second part of this year. that helps our economy keep growing. that's the first piece. the second one is how much can we actually reduce spending? we've got a lot of folks saying they're not going to do anything on the tax bill unless they're also doing something on the deficit. so we're trying to marry up as much of those gains, saying this is step one so we can get to agreement. there's got to be a second, third, fourth step on this. quite frankly, with $2 trillion in overspending, we're not going to solve it all in one year. they'd be like having a jumbo mortgage saying, we're going to pay it all off in november. we're not okay. we're going to have to take multiple steps on this to be able to pay down the jumbo mortgage that we've. >> just worried that that, that, that ron johnson's idea kind of would speak to people and make sense. that and maybe even majority leader thune did. becky, you mentioned that he he talked about it. don't try and

do it all in one bill. >> bill. and do you have the votes the. >> yeah. and the maybe you got to do it. is the die been cast. were too far down the road to go back and reconsider bill. >> but it doesn't prevent us from doing another one. in fact, there's a lot of conversation even yesterday in the white house about can we continue to be able to make progress together on this? but we've got to be able to get this. the house has said, hey, we barely cobbled together 215 votes on this. we can't back up and then do another one and try to be able to figure out, let's get this one done. and then we there's a lot more to be done. >> we knew all along the problem was going to be trying to get the house together. that's why speaker of the house wanted to make sure it was one big bill. but do you have the votes in the senate? are your senators willing to say, okay, we will take what the house has handed us? it's not been the vibe in the senate in the past. it's certainly not what they've agreed to. and that's not what we have heard from several senators on this program this week. again. >> we're not going. >> to tell you you have the do you have the vote count? >> yeah. we're not going to take

it as is. we do not have the vote count to be able to just take what the house did. now we're doing some tweaks on it. when we send it back to the house, we want the house to recognize it and say, yep, that's my child. it's just wearing different clothes. we they've got to be able to recognize the bill that's coming back to them. but there are things we want to do on this. obviously, 215 house members put their fingerprints on it. now it's time for 51 senators also put their fingerprints on it. and to be able to get a final bill, that's the coordination meeting yesterday with the white house, because when this is done from congress, the president's still got to be able to sign it. so all three groups have got to be able to say, yes, it has the things i'm looking for on it. and it's got to reduce spending and it's got to prevent a major tax increase reporting. >> but just reporting suggests that the salt cuts, the salt tax of $40,000 is on the chopping board here. is that the case from the senate? it doesn't sound like there are any senators who are a big fan of increasing the salt tax deductions. and if so, is the house going to recognize as that as their child with different

clothes? because there were some serious holdouts in the house who said, no way, not without that increase. >> yeah, i get it. it's $353 billion in total cost to be able to do the salt increase that the house put in. there's not a senator that's fighting for the salt piece on it. we understand very clearly that this is literally a transfer back and forth in my state. in oklahoma, we pay more in federal taxes for someone who makes the same exact amount of money that someone does in new york, if we change that salt piece on it. so we want to make sure that this is balanced out. i feel sorry for the folks that live in new york, that excuse all, all my friends that are there because of the tax rates that they have to be able to live under. but we also understand every other state shouldn't be punished for what's actually happening there. so there will be an argument back and forth on it. we are going to do something on salt. we need to, because the folks in the house are making that a compelling argument, saying we have to do this, but we're trying to figure out what that can be. >> the senate can. >> change it to 30,000 or 20,000 instead of 40. >> well, i wish just the three of us could settle it right now,

but it's going to take 51 to be able to. >> we live in jersey and we don't we don't i don't know i don't know what that that doesn't do anything. senator. so are you saying that there are still concerns with the existing bill, that the deficit is increased too much and that you'd have to do additional things in next year or later this year or something. so there there is an acknowledgment that this bill is not perfect in terms of how much it cuts, because i know it cuts, what, 1.5 trillion or something. but what's the total spending over the ten years? it's like 90 trillion or something. it's like a or more, isn't it? it's like a drop in the bucket. it republicans are in charge. this is their moment. isn't there a way to do more or are the votes not there? and it's just the reality of the situation. >> as much as we can and still have the votes on it. this is a step at a time agreement. let me take, for instance, the medicaid that everyone's going crazy over. the medicaid is the largest part of it. it's just a work requirement on it. people are screaming and saying, hey,

it's kicking people off medicaid. it's not kicking people off medicaid. it's transitioning from medicaid to employer provided health care. so yes, we've got 10 million people that are not going to be on medicaid, but they then are going to be on employer provided health care. we think that's a better option for the taxpayer and quite frankly, for their families as well. and so we're still arguing through all those different pieces, trying to get as much as we can done. but as i say, this is a step that we're going to continue to chip away. we're not going to deal with the $2 trillion overspending all in one moment. we're going to have to chip away at this to be able to get the votes, to be able to do it a piece at a time. >> senator, again, we're facing this deadline of july 4th is a deadline they'd like to see deadline of later this summer, because the debt ceiling is part of all of this, too. president trump and elizabeth warren have both agreed that they would like to see the debt ceiling just gotten rid of, no longer requiring lawmakers to agree to go over the debt limit on these issues. do you agree with the two of them? >> i think we do need to find a

better way to be able to do this, because it is not actually limiting our spending. the debt ceiling itself was designed to be able to be a limiting factor, to say, we're not going to go farther than this, and without having some conversation about debt that seems to have gone away. so we do need to find a better way to be able to do this so that actually, congress is actually fighting through overspending and finding a way to be able to reduce it, but without actually causing all kinds of chaos globally and in the bond market as we approach those dates. so i think the way it's happening is the wrong way to do it. but we do need to have a way that we're actually focused on what is the moment when congress has to act to be able to look at our deficit? because i would tell you, congress works when it has to work on things. i've been frustrated for years on the debt issues, trying to be able to push on this. when we get to deadlines, we get focused. when there's not a deadline, there's not a focus. so something needs to be there to be able to keep congress focused. >> do you think that you will have this bill passed by both sides and signed by the president by july 4th? >> that is our goal. but yes, we're working towards getting to

that spot on it, and we're going to keep working until we get it done. at this point, if we don't get it done by july the 4th, there's not major calamity at that point, but we need to give as much time as we can for the irs to be able to promulgate all the rules. they've got to get out so we can actually have an effect in this year. july the 4th is still our target. that's still what we're working towards, and i think we're going to get there. >> is john, do you know senator johnson any way he ever votes for this the way it is? or are you just writing him off and working on everybody else or rand paul for that matter? >> no, no, we're very engaged with senator johnson on his in fact, he's on the finance committee. so he was in that meeting yesterday with the president. so he is one of the voices that's in it. he's not wrong in the issue about focusing in on deficit. all of us have been talking about deficit all along. he's pushing our conference to say keep focusing. let's see if we can find more. let's see if we can find more. and everyone is. >> he just wants to do two bills, though i think at least that's what he told us. but you

you figure if you can find a way to do it to satisfy him in this bill, you could do it in the one big, beautiful bill that satisfy him. >> i think the biggest thing that he's focused on is a process of how do we keep going, how do we not just do one and stop? how do we keep going on this? because he's been around long enough to know. it's easy to say, check we did something when we're not finished. we've got a long way to go. still okay, >> senator, thank you very much, senator lankford. >> well, should we ask. >> senator, you got you got any personal questions for him? >> you should ask cruz, because he's doing a lot of work. he's leading a committee that's actually brought a lot of things on this, like coast guard and some of the national security and some spectrum issues. that's a big piece of what he's been working on for a long time. so he's got a major piece of this bill. he is leading. >> you like the beard. >> i'm sorry. say again. >> you like the beard, senator. >> cruz beard. i'm going to let his wife make decisions on that one. all right. now is tonight the nba all of us in the thunder

winning the first game. >> that's right i forgot about that. that's right. tonight's the first game i'm excited about. you know these new york types. and if it's not like a one of the teams on the coast they say no one's interested. that's not true. this is this is big. this is really going to be good team. >> it's a fun team to be able to watch. so i'm looking forward to the pacers twice this year. i'm looking forward to doing it four more times. >> i forgot about that with you. yeah, that's i can't believe oklahoma has a team. it's awesome. all right. thank you. you deserve one. thank you senator right. >> you haven't. >> got anything else. >> you just have the roughnecks, the soccer team and tulsa. >> used to even. >> that's a used to. >> i don't have great they have great. >> college teams. >> they do across the board. the european central bank cutting key interest rates by a quarter point. that was widely expected. the deposit facility rate is now 2% half of what it was in mid

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elevated design for thoughtful living thuma. >> welcome back to squawk box. rick santelli here live at cme hq with the breaking news on this friday eve on the trade balance. and do remember last week's advance only included goods. this one includes goods and services. comes in at -61.6

billion. that's about 5 billion less than we were expecting in terms of the deficit. but it does follow a revised 138 billion with a minus sign that was 140 billion. and that, of course, was an all time record trade balance of goods and services. and as you can see, it has now been cut by more than half. and the big drop in imports seems to be where everyone's pointing the big news there is how much it bolsters gdp. just look at atlanta fed gdp now, which is at 4.64%. nonfarm productivity comes in much more negative than we were expecting. we were looking for a number that was down somewhat less than 1%. this is -1.5%. that would be the worst productivity going all the way back to, well, going back to the second quarter of 22 when it was

-3.3%. and here's something interesting. everybody knows that it's the special sauce of the economy. but consider this in the four quarters preceding covid, productivity averaged 3.5%. with this current number and -1.5 before that, when this is the final read, when it was minus 8/10, the four quarter average came in at 1.5%, a full 2% less productivity than we had pre-covid. that's something to pay attention to. unit labor costs 6.6%, a little higher than we were expecting, the highest since the first quarter of 24 on initial jobless claims. up, up, up 8000 from 239,000 to 247,000. we still haven't been over 250 since october of 24, but we are inching up very close to it. that's what comps on this 247,000, by the way, and on continuing claims, we remain one

two. this is the second consecutive month over 1.9 million. 1,904,000. so we've had two consecutives. we've had three readings. one of them was canceled. but this all comes to back to november of 2021. so even though we could still say well behaved on claims, it's not as well behaved. interest rates. well, they're moving down just a smidge. the ecb cut that put a little pressure on the rate structure. yesterday we closed twos and tens at the lowest yield since the seventh of last month. joe back to you. >> i don't have true social rick, but i'm expecting i'm expecting we might we might get some. >> social media. my life is complicated. >> i know you don't. but when the ecb cuts and then these rates are coming down and we're going to see a two late paypal, i think tweet or what do you call a social media post? it's

not a tweet but tweets. not twitter, not twitter, rick. that atlanta fed number is crazy. is that the. so it's the end of july. our next guest clued me in on that. there's a lot that can happen between now and the end of july. what what would the president say if he got a close to a 5% on gdp? he'd go nuts. >> oh yeah, he would. but see, here's the issue. and this is going to be an issue for this administration. you want the economy to hum along. you want it to do better. and with the import dropping the way it did, pushing gdp up, there's a lot of moving parts actually to how much is going to come through. but let's say he gets a very wild, strong print. that's going to make it much more difficult for the fed to lower rates. and we know he wants the fed to lower rates. he's stressed how many times the ecb has already cut. and in this instance, i'm not sure i can agree with the administration in its entirety.

i'm more in agreement with the fed. oh my god, did i actually say that? i'm not all that fond of a quick cut. i think that there's aspects of the economy that are doing well. we're still looking at equity prices that have been quite resilient. you know, the equity markets have been so much smarter than the analysts. i'm just thinking that i agree with powell. i don't know that we need to be in a hurry. however, i do think some of the inflation pressures are going down. and if everybody recalls before this administration was in power, what did i always say about inflation? that we screwed up our energy, we screwed up with evs. we made a double standard that was taking away from both sides, and there's going to be an underpinning of inflation in the energy sector. well, this administration is negating that and kudos to them. and i think that that is potentially an outlier to get this much closer to the fed's 2% level. so powell is he kind of finishes up his term. he's going to have quite a

complicated process to deal with. >> yeah i'll take all day i'll take all prices any day over over tariffs one one time. you know in terms of the overall effect you stay at 60 or below on oil. the world runs on it for more. absolutely. yeah. for more on the data, the economy and a preview of the monthly jobs report tomorrow, let's bring in jay bryson, chief economist at wells fargo, a lot in your notes here. jay, i guess what hit me was you think by september through september and the end of the year, we get 100 basis points in cuts? >> well, that was our official forecast. you don't think that you don't think the risks are probably a little bit skewed towards later fed moving and not quite as much, but i would what i would say is like, you know, a year from now, i still think rates are probably going to be about 100 basis points. >> but you're worried about the growth effects of tariffs. >> i am you know, i'm more worried about that than the inflation effects. now i think

it's premature to just completely dismiss that. but tariffs at least in theory should be like a one off hit to the price level. what you don't want happening is those second round getting into wages, moving inflation expectations things of that nature. and you know if the unemployment rate does start to come up later this year, which we think it will as tariffs slow the economy down, then we think the fed pivots and then starts to cut rates. >> what do you make of this journal story today that suggests we could be getting less accurate inflation data, because there are job openings at the bureau of labor statistics or job vacancies that have not been filled. and as a result, we haven't been able to measure cities like buffalo or provo, utah or what was the lincoln, nebraska. >> yes. i mean, in general, i don't think it's not just necessarily the bls. it's probably some of the other statistical agencies as well. and so it makes the fed's job harder to be falling through that. we'll call it fog. and so consequently, i think what the fed starts to rely on a little

bit more going forward is some of the anecdotal evidence, like the beige book yesterday now. >> and what they're hearing from their districts. >> what they're hearing from their districts and things like that. but, you know, again, you know, it's it reminds me of a few years ago when the government was actually shut down for i think it was 30 some days. right. and all those statistical agencies were shut down. and this was a period of time. this was early 2019 when the economy was decelerating and the fed was kind of flying blind at that time. but you. >> don't do you write off the adp number. it's not a you know, we can't just we're not you're still at 125 for friday. >> yeah. we didn't we didn't move. >> at 25,000 125,000. >> the adp on a month by month basis doesn't have a lot of correlation with nonfarm payrolls on a month by month. right. you know, if you look over long periods of time, they certainly track each other pretty well. but i feel comfortable at 125 at this point. maybe the risk are skewed a little bit to the downside on that, but i don't think we're going to be seeing the labor market just falling apart. we're not seeing that in terms of like

the initial jobless claims moving up but not spiking. and the anecdotes that we've seen again from the fed and the beige book is you think that the labor market is falling apart at this point. >> i don't know. so it's going to be bad cuts that we get for you. they're not going to be good. it's actually it's a combination of good cuts and bad cuts. good. because the inflation is under control. right. bad because it's due to a slowdown and. >> or slow. >> down growth. >> the economy. right. yeah. we don't have the economy going into recession. right. if you look at our. >> some people do though. >> well i know and i would say we're we're skating pretty close to one. it wouldn't take anothe, you know big shock to potentially push the economy into recession if things are weakening later. >> but then you're all excited after that, right. well. >> i don't know if i'm necessarily. i know you're excited. >> deregulation stimulus, the effects of fiscal policy, monetary easing. >> i think. >> you're ready to throw. >> a party. 2026 is going to be a lot better. year than 2525 is for us is more about the

negative effects of tariffs, 26 is more about some modest stimulus coming from the fiscal side, monetary ease and some deregulation. >> and some deregulation. all the stuff that we were counting on until, i don't know, why are we why were we blindsided by tariffs? we should not have been blindsided. >> if you listen to donald trump a year ago. >> 20 years. >> ago, he was talking. >> maybe 30 with oprah, i think. yeah. >> but if he had those views for so long and he didn't do it in the first trump administration. >> he did do it. but he didn't do it as much. yeah. >> that's that's the difference. i think people weren't expecting more than that. >> yeah. it'll be interesting to see how much this actually sticks right. i mean they're one of those. the court actually put a hold on all this. now the appellate court came back and said, put a freeze on that and it's going to end up at the supreme court. right. and we'll see what happens there. but there's going to be a lot of uncertainty between now and whenever those rulings come out. yeah. >> all right jay, thank you. got some senator coming up or something. so we got to go. ted

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accounts. plus, cnbc global market news and analysis tailored to your holdings. become a smarter investor with the power of cnbc pro. go to cnbc.com pro now. >> president trump's big spending bill projected by the cbo to add $2.4 trillion to deficits over the next decade. that's according to the nonpartisan congressional budget office. concerns about the debt have some congressional conservatives questioning the bill, how it's being constructed. joining us now, senator ted cruz of texas. he chairs the commerce committee. and senator, always good to have you on. we had ron john, which i don't think we can call him that. that's a surf shop. that's a surf. you know, that's just a series of surf. so senator ron johnson, i don't know, he depending on who's on, i get talked into a lot of things. and he kind of made sense to me in

certain ways. senator, in terms of maybe do two bills, do one where you make sure you get the tax cuts extended and then try and really do the work to get back to pre-pandemic spending levels. has the die already been cast, though? is that that that that ship has sailed? we're definitely not going to do it that way. are we? well, listen, i'm certainly supportive of doing multiple reconciliation bills because reconciliation is the main tool to get around the senate filibuster, and we can use it to accomplish important policy objectives. but we have this one in front of us, as it's called, the one big, beautiful bill, and we're going to get it done. it is going to be ugly. it's going to be bumpy. it always is. in 2017, the last time we passed major tax cuts under president trump, it was a long, drawn out process. i spent literally hundreds of hours in 2017 negotiating different provisions. we're doing that again here. and so we will get it done. and listen, i, i think

you mentioned ron johnson. ron is a good friend. he's doing a great job fighting to rein in spending. we absolutely need to do that. that he is absolutely correct. we saw spending explode during covid and then unfortunately, washington politicians left government spending way, way too high. and so i think we need to do everything humanly possible to rein it in, because the debt that, that, that politicians are racking up is bankrupting our kids and grandkids. so you would concede that in its current form that that you have deficit concerns with, with what we're going to do and there's going to be need to be additional reconciliation, reconciliation bills that address that improve on on what this current bill is doing. look, sure, we should do them in the future, but we have this one right in front of us. and i'm glad the house of representatives passed this. i think the speaker, mike johnson, he's a good man. he did a remarkable job with a really

tough and fragile majority in the house. that's the thing. they sent over a bill that that's started this process. i'm glad they got together and got this done. i can tell you, joe, in 2017, it was interesting. you look at how the process played out. the house sent over a good bill. it came to the senate and it got much, much better. and then we went to conference committee and it got much, much better once again. my hope and belief is we can do the same thing. so what i'm urging my senate colleagues is, okay, let's take what the house sent as a starting point. but let's be more aggressive. let's rein in spending. let's be more aggressive on tax cuts. let's pass a really good bill. we're not there yet. but but i've got some real hope and optimism that that's what we're going to do. >> so if you bring senator johnson in do you lose senator collins. it's like whack a mole, it seems. yeah. it seems like in the house to. >> yeah. look, there's no doubt it's complicated. i think there's a real possibility right now that the senate is more

fiscally conservative than the house. and that is not traditionally been the case. but here's why. i think that we have 53 republicans in the senate. i think it is it is quite arguable that the 50th most fiscally conservative republican in the senate is significantly to the right of the 218th most fiscally conservative house republican. what does that mean? it means we can be bolder on things like how do we cut spending? well, for one thing, on medicaid, ensuring that illegal aliens are not on medicaid or are not getting government benefits, that's something that the american people strongly support. that's something that can save hundreds of billions of dollars. on top of that work requirements, i think work requirements are good public policy. they work incredibly well. bill clinton signed welfare reform into law. it proved tremendously successful, getting millions of people back to work, putting work requirements in medicaid and other federal benefit programs again, saves hundreds of billions of dollars. i'll

tell you something else. you know a lot about joe. the federal reserve pays banks interest on reserves for most of the history of the fed. they never did that. but but for a little over a decade, they have. just eliminating that saves $1 trillion. so there's a lot of things we can do to rein in spending. and i'm urging my senate colleagues, let's let's show responsibility for the next generations. let's do what's right. >> you think that's going to go through the idea of telling the federal reserve they can't pay the banks that interest anymore? >> i don't know. i can tell you we had a robust discussion about it yesterday, and we're having a lot of robust discussions. look, something else i'm pressing for is zeroing out the cfpb. that would save about $7 billion. but actually the biggest saving there is not even from from the direct dollars. it's from ending the regulatory assault that that is really hurting job creation.

and so there are a lot of yeah. >> i'm just pressing on the bank ones in particular, because that's of interest to our audience. that would be a big differentiator in what the banks can be expecting to take in as, as revenue and as profit for next year. is that is that likely, do you think, to get done? >> i don't know if it's likely. it is certainly possible. what i'll say is for the history of the fed for nearly 100 years, it paid no interest on, on on reserves. and then following the great financial crisis, they put in the policy of paying interest on reserves right now cost the fed. the fed used to generate money for the american taxpayer. it's now costing about $100 billion a year. and the way it used to work is if banks wanted to make money, they had to go, go invest that money and make loans and take care of it on themselves. i don't see a reason why why the taxpayers ought to be paying for it. that's that's one example that generates $1 trillion. >> you look it was put in place to ensure the stability of the

financial system. they didn't want these runs on things. they were trying to do it. if it's unwound quickly, i just i don't know if it would raise any stability issues, but it would certainly raise profitability issues for the banks if it's done instantaneously. >> you know, becky, what i, what i can say is, is the banks somehow managed to survive for a century. and if you look at if you look at dodd-frank, it was put in place ostensibly to stop too big to fail. now, let me ask you something. how did. >> that work? i don't want to be in the position. >> of defending the banks. and the small banks went out. >> of business. >> many of them. >> you make a lot of sense. i don't know that taxpayer dollars should be going to fund this. makes a lot of sense. it's just a big change that that could come up quickly. senator, can i ask you about one other provision in this? it's a small one, but it's important because of the aspects of ai and what's happening. the house bill includes a provision that's called moratorium. and for those who aren't familiar with this, that would effectively prohibit state and local governments from

being able to write any enforcement of laws or regulations on ai for the next decade. there is a bipartisan group of 4040 state attorney generals, attorneys general who are opposed to this. they say that it's federal overreach, which sounds like something you would traditionally be pretty sympathetic to. they say it undermines the state's efforts to try and address ai related harms. and then there's the whole issue of the byrd rule, which basically says that the senate cannot put a policy writer on a reconciliation bill if it doesn't have anything to do with the actual budget. and that's certainly sounds like this. this is going through your committee. what's going to happen to that, that house provision. >> so listen, as a substantive matter, this moratorium is very good policy. just a couple of weeks ago, i chaired a big hearing on ai. every single witness at the hearing, i asked, what what do you think about the state level regulation of ai? every one of them said it has the potential to be disastrous. and that said, we needed a moratorium. you know, i'll draw an analogy to the 1990s. earlier, i was talking about

bill clinton signing work requirements in welfare reform and how successful that was. i'll give another analogy, which is in the 1990s, that was the dawn of the internet, and bill clinton signed an executive order mandating a light touch regulatory approach to the internet that proved unbelievably successful. at the same time, europe took a very different approach. europe took a heavy handed prior approval regulatory approach. let me tell you what the consequences were of that one decision in 1993, the american economy and the eu's economy were virtually identical. today, the american economy is more than 50% larger than europe's, and the two drivers of that are tech and the shale revolution. ai is going to be every bit as transformation on you. see, you see state legislatures right now proposing ridiculous legislation. if we have a 50 state patchwork, you know what that will do that will drive ai development out of america to other countries, and it will cause america to lose

the ai race to china. that would be catastrophic. we shouldn't let that happen. now, senator, you raise the question, can we do it on reconciliation? that's an open question, senator. >> i just want to. i want to see cnbc's confirming that the president did speak with with president xi. so i just wanted to get that in because the futures were basically unchanged. now we're seeing that some upward movement on that. so cnbc is confirming that that that the president has spoken to the president of china, xi jinping. can i ask you you i don't know whether. >> before he does, i just want you to answer. so you've said from a substantive perspective, senator, that you understand these concerns about the ai moratorium, that you're sympathetic to it because we saw what happened with the internet, and i do remember that, but that those rules with the internet also gave a big advantage to all of the big players, the big players that got out there. it's

been some of the anti-competitive concerns that have been arisen lately, but from a practical perspective, it does violate the byrd rule. so will it be stripped out? >> so i will say in terms of big tech, there has been no stronger critic of big tech in the senate than i have been. and i think they have abused their power in many respects. but it's worth noting, in 1990, big tech by and large, didn't exist. and so i'm very glad we have these incredible economic engines in america. you look at europe, there are virtually no major tech companies like we have in the united states, and that has produced enormous prosperity, enormous wealth for millions of americans, who's, for one, are invested in it drives the stock market. it drives jobs. and so my view, yes, we have to worry about big companies, but i'd much rather innovation, particularly transformational innovation, be coming from america than coming from elsewhere. now on the byrd rule. and for your viewers at home. >> yeah. go ahead sir. >> is it in the bill. >> for your viewers at home? the

byrd rule sounds a little bit arcane, but the process of budget reconciliation is the major exception to the senate filibuster rule. ordinarily, to move legislation in the senate, you need 60 votes. budget reconciliation is the biggest exception to that. but budget reconciliation comes from the budget act of 1974, and it specifies a six part rule that is called the byrd rule, named for robert byrd, who was the democrat senate majority leader who wrote the law of what can be allowed. the basic principle of the byrd rule is you can do things that are budgetary in nature, but not things that are policy in nature. you are right. there will be a very serious byrd rule challenge to the i moratorium. as the house has written it. i can tell you in the senate commerce committee, we're trying to rewrite it in a way that is consistent with the byrd rule. but i fully expect next week to be in front of the parliamentarian litigating this issue. it's not clear if we can do it on reconciliation or not. i hope we can, because it is enormously consequential for

jobs and economic growth. and that's right at the heart of what we're trying to accomplish in this bill. >> i only got a minute. and it's palace intrigue. and you, you know, you and the president have a complicated well, maybe you don't anymore, but you remember no president trump he's a. yeah. so what about elon musk? can they are they friends anymore. is he going to are they going to work together when you got 200 million followers and you tweet, you know, call your representatives and kill this bill, does that does that kill the. relationship? do you think? >> look, i don't know. i am good friends with president trump. i am his strongest ally in the united states senate. i'm also good friends with elon musk. elon is a texan. i spend a lot of time with elon. he is brilliant. the work he did for president trump at doge was incredibly consequential. and here's my view. i'm really glad that elon is speaking out and speaking out on debt, saying we need to show fiscal responsibility in this bill. i hope the result of elon's comments is we see the senate step in and make this bill much,

much better. put in strong work requirements, eliminate illegal aliens from government benefit programs that we show restraint. and if that happens, that's a great outcome for president trump. it's a great outcome for elon. it's a great outcome for the whole country. >> we got i bought some more time. senator. do you think that after, you know, thinking about 2 trillion in doge cuts and then getting to a trillion and now we're having trouble, you know, with with 9 billion codifying, do you think there's some frustration with elon musk at this point that if you take on the swamp, the swamp wins? you probably know that too? >> oh, look, i'm sure elon is frustrated. i haven't talked to him in the last few days. but but i'll tell you what, i am grateful. i mean, he came and devoted five months of his life for free. he's the richest man on planet earth and he put his enormous energy. this is someone who who barely sleeps half the time. he sleeps at the office.

he and he put his enormous energy to uncovering waste, fraud and abuse. and what he uncovered was enormously consequential. now, changing washington is like turning a battleship, and it's now congress's job. we need to codify the doge cuts. i'm glad that the white house has sent over the first package of rescissions it particularly defunding npr, i think is very worthwhile. there's no reason the taxpayers should pay for a left wing media network. but but i want i am encouraging the white house to send over more rescissions, and we need to see congress put it into federal law, because that's how those cuts become permanent. >> senator, appreciate all your time this morning. it is. i hope everybody at home likes sausage because we really are seeing a lot of sausage. i do and i don't like that. very fake. i don't like that fake chicken sausage either. you you like pork? no, no, it's. >> got to be the real stuff. >> i like pork like all the

politicians. right, senator? all right. very good. not not. >> all. >> all right. thanks. good to have you on, mark. that's what. >> they are. let's take a final check in on the markets right now. you'll see the dow futures up by about 100 points right now nasdaq futures up by about 50. the s&p futures up by 14. right now. oil prices if you take a look or wait look at treasuries really quickly. treasury prices. treasury yields are up slightly. the wti right now is up by about one and a quarter. i don't know where treasury yields are. i thought this was treasuries when i looked at the move. yeah yields are still down. so for the ten year 434. all right folks we will be back here tomorrow with big jobs report on that day. make sure you join us then. right now it's time for squawk on the street. >> good thursday morning. welcome to squawk on the street i'm carl quintanilla with jim cramer. david faber is back at post nine of the new york stock exchange. premarket adds to some gains as chinese state med