good morning time is running out. debt ceiling showdown. a new warning from janet yellen on the looming deadline and potential for economic can catas catastrophe. and the biden administration looking to crackdown on the airline delays and cancellations. becky is in omaha with the highlights on the warren buffett investments and take on the economy and a.i. and anlot more it is monday, may 8th and "squawk box" begins right now. good morning welcome to "squawk box" here

we are live from nasdaq here at times area i'm andrew ross sorkin along with joe kernen and becky quick in homaha. we will get you to in a moment u.s. futures with the dow up 37 points nasdaq is offthe 8 points. the treasury yields is showing the 10-year treasury at 3.64 we have a news alert biden administration is requiring carriers to compensat for delays or cancellations. specifically back in december when delays and cancellations caused chaos

southwest is the one with the biggest problems and that is down 1% this morning >> welcome back. we should say that people were with us on friday. welcome back >> welcome back to the program. >> from the 550-point move in the dow on friday. after the jobs number seemed, you know, we don't know a any more take your pick goo good bad? after all was said, no banks went out of business it is good >> that was the implication for that day the implication for today. this is the show that never ends >> it is the s&p for the week there is the week. scary for a while. s&p 4,136. that is all i wanted to say. we forget. >> i don't know if i would make

a bet this would be all clear. >> no. i don't think it is 3,600. i don't think 3,200. unless the world just -- i don't know -- ebola. i take it back. >> or debt default >> you are worried. >> i'm worried we will have chris on in a moment we will talk about the banks. >> i know. >> i want to talk about how buffett is trying to calm people down >> with the banks? >> with the debt ceiling he said there will be bank failures nobody will lose money if you are a depositor, relax. he said -- if you look at the number -- >> if anyone could, he could >> he did make a bet on "squawk

box" where he said if you think you are losing $1, i'm willing to put $1 million of my money on that >> becky, if you believe your deposit is safe, he is right about that if you watch the stock of some -- of your bank falling precipitously and going down materially, and then not just individual, but treasurer of the company who has payroll and money at the bank and if you think it is guaranteed, you sit with your board or management team and say maybe we should move our money that's how this happens. no way around that >> a good fiduciary. it is one thing to say nobody should worry it is another thing to say the money i was responsible for is now gone that is understandable this is why he was frustrated about the communication from

officials and not more clear messaging. once you start a run, it is impossible to stop they could have slowed things down it is not great messagimessagin. >> it bounced on friday. >> i thought you were going to say cat. >> you can't say cat they're too nice they're not that nice in my opinion. they are see aloof friday stabilized. you are seeing what is happening. i'm back to thinking about the economy or recession or no recession or debt ceiling. i'm already thinking about regional banks >> i know, you are not alone, joe. the debt ceiling is a huge issue. look, go ahead finish your thought. >> i'm done. i've got other thoughts. that will take a while >> let me tell you what they

said and we can get back into the conversation debt issue is a lot of an issue. the concern over the default is driving up costs you can see with t-bills buffett told the crowd that berkshire bought $3 billion in short-term t-abbills at 5.9%. he said he think it is is confusion that is causing the market dislocations. >> you shouldn't have so many people misunderstand a debt ceiling, but it will get changed. there is a $250,000 limit on fdic and the u.s. government and american public have no interest in having a bank fail or have deposits actually lost by

people we had a demonstration project the weekend of silicon valley bank and the public is still confused >> buffett thinks the debt default will be avvoided in the final hour we will see. you mentioned a.i. came up this weekend. that is an issue that buffett has concerns about when you consider about it in the long term. >> i am personally skeptical of some of the hype that has gone into a.i i think old fashion intelligence works pretty well. >> it can do all kinds of things when something can do all things of things, i get a little bit worried because i know we won't be able to uninvent it we did invent for very, very good reason the atom bomb and world war ii

it was enormously important that we did so, but this is good for the next 200 years of the world that the ability to do so has been unleashed we didn't have any choice. when you start something -- einstein said after the atom bomb he said this will change everything in the world except how men p tthink. i would say the same thing, thought the same thing, i don't mean that. with a.i., it can change everything in the world except how men think and behave >> remember, buffett has long been concerned of nuclear and chemical and biological warfare. he has given money to this cause to think up solutions. add a.i. to this list.

charlie munger had concerns over the market at the top of the list is commercial real estate he mentioned it last week and brought up again on saturday >> i do think that the hollowing out of the downtowns this the united states and else is going to be significant and unpleasant i think the country will get through it all right, but as they say, it will involve a different set of omens. >> we will have more throughout the show and objectioccidental petroleum. we put this on cnbc for the first time i know he had concerns about doing that in the past he didn't want to make it too easy for people not to come here he has enjoyed the party atmosphere here.

it did not hurt at all usually 40,000 people here they gave out more tickets than before seeing the lines and more people were here than ever before the meeting started at 8:30 omaha time on saturday i walked in to the auditorium and walked in at five minutes before 8:00. all the way up to the rafters. every seat was filled 30 minutes before anything got started. >> wow. >> i was watching. i didn't watch on the air. i watched some streaming first time to see. very well done >> we missed you, andrew i know you had reasons you could not be here and i'm glad you had the opportunity. >> thank you hope to see you next year. when we come back, more on "squawk box, oi" we will talk t

chris whalen later and then also talk to jonathan kanter at 8:30 a.m. we are coming right back after this >> announcer: this cnbc program is sponsored by baird. visit bairddifference.com. as sleek as it is spacious. as smart as it is beautiful. introducing lucid air. experience the best. ♪ ♪ ahhh! icy hot pro starts working instantly. with two max-strength pain relievers, so you can rise from pain like a pro.

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depositors will not lose money stockholders and debt holders should lose money. the people who borrowed out on commercial real estate and now the loans are not extended, they should leave it's too bad it is part of borrowing on 100% margin which is what people were doing in customers rommercial r. they took risks they shouldn't have taken it needs to fall on them >> that was warren buffett speaking at the annual meeting about the banking crisis joining us for more is chris whalen chris, i don't know if you were listening to the conversation before the break we were commenting on and previewing what warren was saying he seems to suggest everybody is going to be fine he said on our broadcast two or

three weeks ago with becky in tokyo, he thinks every deposit is safe. it may be true, but if you are a treasurer of the small business at one the of the banks that collapses, you might make another choice where are we >> warren is right retail depositors don't have anything to worry about. it is the business depositor if you have to meet payroll in a couple weeks and the treasurer is offering that on t-bills, that is an easy choice to see what we wrote about overnight is that banks are forced to raise deposit rates to where the treasury is. that is this week's news >> that's this week's news we seem to have a bit of a comeback last week after it felt like a lot of anxiety around pacwest and other banks. then we seemed to get to a

slightly better place. how do we get out of the woods here >> unless the fed is willing to walk back the current policy and give the banks more breathing room, we won't get out you will see more banks fail you will have a couple of things going on on the one hand, you have big losses on the books of the banks and the 10-year treasury widens out, it looks worse. if it tightens to 3%, it looks better the cash flow problem inside these banks is not going to go away unless the fed does something. i suggest they need the assets from 2020 and 2021 at cost for the banks until we get out of this i don't think the fed will do that we are going to see more problems that's it. >> do you anticipate seeing a real deposit guarantee program that is explicit put into place?

>> no, i don't think they have the votes on capitol hill yet. we have to build a crisis before anybody is going to act. that is how washington is now. i think the industry is getting away with not paying an assessms on the total deposit base. as you have seen in the past two months, if we see instability with smaller banks, the business customers will walk. >> chris, you can't see it western alliance and pacwest and comerica and first horizon would you buy any of these at this prices? >> no. i got rid of western alliance. there is no reason to hold it now until the fed is done with what they're doing i think all banks are suspect.

why take the risk? >> i think the only reason you take the risk is massive upside on the other side. i think people are happy they piled in to pac west on friday if they were able to capture 33% spread, right? >> it is easy to have a big up day when the bank is trading three times the book value i think what i would tell people is since the failure of silicon valley bank, the better managed institutions have come to realize they have to raise deposit rates to where the treasury is. what i see coming in this quarter, andrew, is a big down leg for net interest income. simply because funding costs will go up 100% this quarter i think this is something we have to focus on for earnings >> the other piece of this once you get to the fourth quarter or first quarter next year, you start to see the true losses

emerge in the commercial real estate world and which banks get hit then >> well, banks revolve around commercial real estate that is the popular lending. consumers are not a big profit center fore banks i think over time, commercial real estate, you will see losses it is lumpy. >> is there something the banks can do to get ahead of the problem? >> not really. how do you sell short commercial real estate when you are the senior lender? the equity has been wiped out. mr. buffett was just saying it we have to take our lumps. the cap rates and everything about commercial real estate for last few years hasn't made sense. we have to re-price that asset class. >> all right chris, thank you i appreciate it. >> have a great day. >> great to see you. thanks. coming up, the third

installment of "the guardians of the galaxy" hit the box office andrew, i want you to explaining something. in the "wall street journal" giving disney's marvel studios a strong, but tepid start. how does that work we will tell you how that stocked up to expectations next. is it one or the other if it is strong, can it be tepid? as we head to break, check out the price of oil strong, but weak day we'll be right back.

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the weekend box office marvel and disney's "guardians of the galaxy" brought in $114 million in ticket sales. that was below expectations. guardians brought in $168 million in international ma markmarket bringing the global haul to $268 million. the gang of four will meet president biden at the white house tomorrow to discuss the debt ceiling deadline. and the programming note, the list of startups is back for the 11th year.

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good morning welcome back to "squawk box" live from the nasdaq market site in times square. nasdaq looking to open down eight points. president biden is beginning a meeting with the congressional leaders tomorrow at the white house to finally discuss the debt ceiling kayla tausche is joining us from washington with the latest good morning >> reporter: good morning, andrew first time those core four leaders will meet with the president at the white house since after the midterms the meeting tomorrow will mark hope the closed door talks can spur progress than the public positions so far

janet yellen has warned the u.s. could be unable to pay bills beginning as early as june 1st she said yesterday that economic chaos would ensue if there is no deal >> with the rates defaulting on interest payments due on the debt or debts due for social security recipients or medicare providers, we would simply not have enough cash to meet our obligations. >> reporter: congressional democrats pursuits of debt clean limit hikes seems dead on arrival. senate republicans would block it 43 would vote that way in the house, the timeline of the petition to raise the debt ceiling with no strings attached has been moved to june a short-term extension could be met for negotiations to take place. that was the outcome six times

since 1993 that strategy paid off in getting a longer-term deal whether it was between one month or eight months in duration. a short-term extension is one option discussed internally by biden administration officials it is being described by sources as a fallback option the white house officially says that is not the plan sepa separately, the administration is weighing on leaning on the 14th amendment to continue issuing debt secretary yellen said doing so is yet another bad option. sources say using the 14th amendment would have no precedent and doing so could inject uncertainty into the treasury market and make auctions uncertain as well that makes the administration's use of this unlikely a lot is riding on the meeting tomorrow andrew >> kayla, what are you hearing ahead of it from republicans in

terms of where they see any kind of wiggle room >> reporter: i think house republicans suggest their bill should be the starting point for negotiations when i talked to administration officials, there are a couple of places within the bill where they see fertile ground over negotiations they see this as a potential middle ground on permitting performance policies the house gop bill introduced the reversal of the biden signature policies that is a non-starter for the white house. there is a lot of negotiations for the starting point for the bill the republican leader in the senate, mitch mcconnell, will leave it to mccarthy to necesgotiate what his conferenc can agree on and not meddle in the middle >> thank you, kayla.

we have a programming note janet yellen will be on "closing bell" today at 4:00 p.m. >> can kicking is a fine art you have done it six times the short-term deal. republicans can say we did a clean debt ceiling you start negotiations that might be it for more on the debt ceiling negotiations this week at the white house, let's bring in former director and president of the american action forum and former congress member donena edwards. is that the next thing extend and agree and negotiate >> i think so. thus far, we have a house bill that cannot pass the senate. all sides need to get together and figure out what can pass in a bipartisan fashion and still

get to 218 in the house. i don't know if there is enough time to do that before june. short-term extension while they work out the nuts and bolts is a likely outcome at this point. >> congresswoman, you know, instead of the hand wringing and 45% drop in the stock market and people are talking about chaos that seems like we have done this before. we let it go too long. does that make sense to you or do you stick with it cleanly and do it now and the president is sticking to his guns what would you do? >> right now, it looks like a short-term extension might be the best outcome for right now the fact is that i think when secretary yellen announced a couple of weeks ago that we would hit the mark in june, it took people by surprise that

they would last through the next couple of months of negotiating. clearly that is not the case what i don't think is negotiable are the policies that biden took an th lot of heat and energy tos the last couple years. there has to be give on the part of republicans the appropriations bills in the house are already, you know, churning through the grind grainger announced last week, i think, that they would be marking up appropriations bills. the spending part of this will be resolved over the course of the summer >> doug, do you think when the four get together tomorrow with the president, will it be congenial? i wonder i wonder what it is really like.

i know the posturing we see and we get tired of it i guess it is just washington and it has to be that way. when they all get together, don't you think they understand it is politics at that point or no could they both have positioned hardened out of acrimony >> i think point number one is you are right. when four people get in a room and start talking, it is different than four individuals taking public positions in washington there will be a conversation which has a chance to be more productive than public posturing. i do think there is an enormous gulf between the congress and white house. neither understands each other it is good to get together to have the con versationconversats both staked out positions they cannot pass. they have to figure out which can go, some have to go, and the

white house has to figure out what to take so far, to be fair, it is hard to figure out what with mc mccarthy's priorities are. you have a list of riders in the policy bill. that is far from unusual we have done that half the time. which one of the riders matter to him and caucus? where are the lines? that is what they will find out tomorrow they will see how far they can move and still have the votes to get through the house. >> congresswoman, that sounds like sausage making we see all the time the president's budget he released doug, i would say the same thing there. none of it has a chance of seeing the light of day. both sides ask for a lot of things to put a stake in the ground congresswoman, this is wis whate believe. do you think permitting is possible we heard kayla say that may be

fertile ground bring senator manchin back in the fold he is still mad about that >> maybe budgets are aspirational, right? the real sausage making takes place in the appropriations process. to the extent the white house can really focus particularly speaker mccarthy on appropriations and where they may have give and take on spending and that is the pathway down which they'll go and they can go ahead and move forward on the debt ceiling i'm not saying that i think, you know, it may not include some of the policy prescriptions, but at this point, i think all of the four leaders know that we can't default. that's just a bottom line. i think when they get in a room, they will all acknowledge that i think three of them know that

for sure i think mccarthy is in more of a bind because the hard right of his conference really just will not allow him any wiggle room. that, i think, is going to be the challenge coming out of tomorrow and going through the next several weeks >> doug, i asked everyone that comes on donna mentioned kevin mccarthy if the president were to say i'm sticking it has to be clean or nothing. that pushed us into default, whose fault would that be? who would get blamed mccarthy or president biden? >> there is an an enormous battle to claim the moral high ground there is no moral high ground. we have done debt ceiling increases that are clean and some with policy riders. it has been 50/50 through time i would echo what the congresswoman is saying. everyone knows you have to raise

the debt limits. you cannot contemplate default chaos would be horrific. the art is getting to yes. that is what politics is about they have to figure out how to get to yes that is not who is right and who is wrong let's make a deal where 60 senators and 218 house members can vote it is not more glorious than that it is sausage making it has to be done. >> i love sausage. none of us wants to see it made. especially blood sausage becky? >> i was going to throw something out. blood sausage is disgusting. i want to throw something to the panel. congress and the administration is pushing back and forth. short-term debt prices are going up significantly you are costing the government more by doing this you look at the four weeks of t-bills for the stuff that

expires at the beginning of june 5.9% the highest level you have been dealing with all of the refusals to come to the table and work out a deal is costing more money 5.9% for four weeks when the 2-year is below 4% >> i think that is a real challenge. what needs to happen coming out of tomorrow is that there really needs to be a solid statement from the four leaders that is going to calm the markets down because i think what you don't want is in the process of the next four weeks to have the negotiating going on in public and then to have that negative impact on the markets. i'm would be concerned if they come out of tomorrow and not have something that they say jointly that stabilizes the market. >> we can only hope. congre congresswoman, thanks.

doug, give the congresswoman the last word. you got enough in there? >> i want to say the market reaction is the outside force that will move the deal. you need to see that >> maybe you are right okay very good. doug and donna, thanks. coming up, we get back out to becky in a moment in omaha and show you what warren buffett said with the investment of paramount global and later, congress member jodey arrington will weigh in on the debt ceiling and what he is expecting from the meeting tomorrow with president biden. we are back right after this thank you! like your workplace benefits and retirement savings. with voya, considering all your financial choices together... can help you make smarter decisions. for a more confident financial future. hey, a tandem bicycle.

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welcome back to "squawk box. we are live in omaha, i am, at le least. at the meeting, people tried to figure out the berkshire holdings are if you look at the recent holdings. berkshire hold 94 million shares of paramount global. that comes to about $1.6 billion as of friday's close we woecn't know if

>> do you have a p guess >> i don't have a guess. i asked the shareholder question i like to know an answer to it have they -- he has ann't given us a single reason why this is a great purchase >> you didn't do the connie chung? >> no.

he didn't tell me anything. >> whisper if n your ear >> it was more than 20 years ago. that was 30. >> i don't know who he was with. >> it was barbara bush >> the first lady. >> that is how long. back when he was president. >> she did fall for it i don't think warren would have fallen for it. can't hurt for trying. >> i don't think so either we have more, becky. we will come back to omaha in a bit. when we come back, tech stocks and show you what mr. buffett said about his stake in apple. that's next. >> it was about hillary. >> really? had. >> yeah. >> reminder, you can watch us live on the cnbc app look at beautiful shot of the capitol this morning we'll coming right back. (water splashing) hey, dad... hum... what's the ocean like? ♪ are there animals living underwater?

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. welcome back, warren buffett praising his largest holding apple calling it a better business than any of its berkshire. >> apple, you know, has a position with consumers where they're paying maybe they paid 1,500 bucks whatever it may be for a phone, and these same people pay $35,000 for having a second car, and if they had to give up a second car or give up their iphone, they give up their second car we can't have anything like that that we own 100% of burt it jus happens to be a better business

than any we own. >> joining us right now to discuss apple, gene munster, the managing partner of deepwater. it's a fascinating comment to hear warren buffett effectively say he likes apple just about better than anyone else he owns including businesses he owns outright. >> i had to read that quote like three times because i don't know if it's right for the oracle of omaha to pick favorites, but that seems to be what he was saying, and that definitely stuck out to me, especially given they've owned this for seven years. when they initiated the position, trfhere was a lot of question what was warren buffett owning apple for he was not a tech investor the line that he was following here was his history understanding consumer behavior, and so it is that consumer behavior piece, which i think has elevated apple to the top of his list here, most favorite status, which is remarkable.

>> what do you think of the stock at this point of the ball game i maean if you go back and look, this has been one of the great stocks that he bought, he did it zen seven years ago. it's at a different place today than it was then. >> i would think i would point out that his commentary on consumer behavior marks a shift we were starting to see which was important in terms of owning the stock going forward. every five or ten years there's a change in terms of how investors view collectively the investment thesis on anpple it was the devices, then we shifted to services. during that services period, there always was this kind of underlying anxiety that something would fall apart with the iphone i think investors were scored with what happened with sony and nokia, blackberry.

now i think we're entering into this next phase. this really is about this active install base this is one of the reasons warren buffett loves the company and says he is can sleep well at night knowing this it passed the 2 billion mark back for the december quarter up 8% year-over-year. remarkable kbrgrowth that's a hard number to grow that fast. meta has 2 billion active users. they grew at 4%. in this march quarter they talked about that number growing again. they'll probably break it out on an annual basis. what does this mean for apple investors in the stock what surprised me is that apple guided down for the june quarter, and the stock still rose up about 5% on that and i think that speaks to this idea that investors are increasingly looking at that active base, and so then let's just peel back and talk more about what's going to happen with the active base if it is true that the active base is what matters here, let's

start modeling that out. it turns out it's actually an easy number for apple to grow. even though it seems like a very difficult number, their products business is so big, they can continue to grow that active base, even if the products revenue is down 25 to 30%. there's a complicated model there. it's going to grow 4 to 6% this year. >> we want to thank you, appreciate it. i want to talk to you if you think there's oh companies that look like apple today. we'll do that next time. more highlights from the berkshire hathaway meeting including what warren buffett revealed about his plans and jonathan cantor is coming up at 8:30 m.a. eastern "squawk box" is coming right back

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the fed is done raising rates. regional banks bouncing back after a brutal few months. which names are actually moving higher today r. and warren buffett and charlie munger, the second hour of "squawk box" begins right now. ♪ good morning, and welcome back to "squawk box" right here on cnbc, we're live at the nasdaq market site i'm andrew ross sorkin, along with joe kernen. becky is in omaha, the berkshire hathaway annual meeting which was live streamed and broadcast live for the first time. becky did a fabulous job so many interesting questions and fascinating answers.

>> there was something else going on across the pond. >> well, that was the other king charles. >> great jokes >> we have our own king charles the opening line. >> and you love the new king charles show that's coming on. >> i do with gayle king and charles barkley. >> it hasn't started yet, but i think it's a great name. >> that's what you said. >> u.s. equity futures at this hour, dow up about 70 points the s&p 500 up by 6 points the nasdaq off about 10 points treasuries right now, you're looking right now at the ten-year note at 3.462, the two-year 3.962 let's show you the energy complex and tell you what's going on with oil right now. wi crude, crypto our barometer of risk on, risk off now we're under $28,000 on bitcoin. 27,961 >> it's been weird lately,

bitcoin. it hasn't been risk on it's always been when the risky assets were going down coinbase has its own eregulations. senator majority leader schumer and minority leader mcconnell and house speaker mccarthy and minority leader hakeem jeffress all janet yellen. >> we do need to raise the debt ceiling to avoid economic cal calamity we would simply not have enough cash to meet all of our obligations. it's widely agreed that financial and economic chaos would ensue. >> ( in a programming note, secretary yellen will be on "closing bell" overtime on cnbc

at 4:00 p.m. today eastern time. >> very cool let's get over to dom chu with a look at this morning's biggest premarket movers, including those regional barks. >> yes, sir. let's start with those checks on the regional banks most of them, the ones that are caught up in the industry crisis, the ones that are continuing a strong rebound in the premarket so far, we're talking about the western u.s. regionals most caught up in the failures of csilicon valley and first republic bank. p pac west is up 31% first hawaiian, unchanged, we'll watch to see if there's any movement there zion's bancorp. up 4.1%. pac west has lost 82% of its value over the last 12 months and western alliance has lost two-thirds of its value in that time frame as well with regard to some of the analyst calls getting some attention this morning, we're

watching shares of pell ton. they're on the rise north of 2% around 40,000 shares of premarket trading volume the fitness equipment, wellness content trader gets an upgrade to market perform or neutral it was a prior sell or underperform rating. they kept the $9.50 target price. they cited most of the negativity around the subscriber erosion of pelopeloton. those shares getting a rebound, again, post earnings rebound last week, and we're going to end with a check on bitcoin. andrew was talking about it before and joe it's lower by 3.5% one of the reasons why, part of that decline in the broader crypto overall industry is being attributed to exchange operator, which has halted withdrawals on a number of occasions for bitcoin due to what it characterized as high network congestion it had to kind of entice minors to come in and value and verify

items on its blockchain a little bit more bitcoin prices down 3.5% we'll see if that sticks that way, i'll send things back out to you in omaha, nebraska. >> thank you very much we are taking a look this morning at some of berkshire's top holdings as well its number one holding is apple over 915 million shares with a value of around $159 billion as of friday's close. that is berkshire's biggest holding in its portfolio, and while buffett says he doesn't understand the iphone, he does understand consumer behavior, and he's delighted for every 1/10 of a percent that berkshire's share goes up. >> instead of owning 5.6%, they get down to -- they got about 15,000,000,700 and some million shares outstanding they get down to 15 and a quarter billion without doing

anything we got 6%. we can't own more than 100% of bnsf we can't own more than 100% of garanimals or c's candy. we'd love to own 200%. it just isn't doable they're good businesses. and to think that our criterion, our criteria for apple is different than the other businesses we own, it just happens to be a better business than any we own. >> of course if he thinks apple is better than any of the businesses that berkshire already owns, it does beg the question of why doesn't he use -- why doesn't he buy more berkshire has $130 billion in cash maybe they're waiting for other opportunities. buffett did say when he sold a small portion of the apple stake a few years ago for tax purposes that that was a mistake. now, let's turn to oxy with a value of $13 billion berkshire holds almost 20% of

occidental petroleum that's a stake that has steadily increased over the first quarter. when asked about the company at this weekend's meeting, buffett said this. >> we will not be making any offer for control of occidental, but we love the shares we have and we may or may not own more in the future, but we certainly have warrants on which we got as part of the original deal on a very substantial amount of stock at around $59 a share, and thos. i'm glad we have them. >> probably worth pointing out that buffett was not asked directly whether they were going to buy occidental outright the comments, he made a point of saying we're not going to buy the company outright, maybe shooting down any speculation that could have been out there at last year's annual meeting, buffett announced to the crowd,

berkshire had -- the stock was trading well below a microsoft's bid for the country. he was asked if berkshire reduced or sold that stake since the cma indicated it would stop that merger from going through. >> i don't know how it -- how it turn turns out, but if it doesn't go true, i don't think it's true any shortcoming by either microsoft or octivision. not everything that should happen does happen i think the british government is making a mistake in this case, but that's life in the big city i would say what we do will depend on a lot of things charlie. >> well, i think -- well, we do -- yeah, you kissed that one

off beautifully. [ laughter ] >> charlie's comment to that, k k kissing that off beautifully is because the question was quite pointed. did you sell any of your stock in activision. basically buffett said we're not going to answer those questions. you're going to have to find out in the s.e.c. filings along with everybody else he did say if you dug through the company's quarterly filing very closely, the one that just came out saturday morning, you might be able to find some indication i have not been able to determine that myself, but it's a challenge. >> i didn't see it either. i looked my only thought was because -- deciphering who knows what, he said we have -- there was a comment made about sort of we have -- you know, you'll have to see how we figured it out. we still are have to figure it out or something that made me think that actually they're still holding the position

that was my only little thought. >> yeah. >> everybody's looking at these like little wiggle words >> you know, he's avuncular, and funny. the words are exactly what he wants to say, how he wants to say with the exact intention of what he wants to give you at any given time duh, he's only worth -- he's beat the market like -- like the smartest not only investor but you know -- >> sometimes charlie -- >> super genius. >> sometimes charlie will give away things a little more. famously greg able >> but not unintentionally, not oops, i stuck my foot in my mouth. >> i'm not sure he was intending to do that. >> sometimes -- at his age he doesn't even gave crap. >> he might not care that's a different story. >> i don't think it was an intentional when he revealed a couple of years ago in los

angeles i guess this was two years ago, that greg able was going to be the one to take over for buffett as ceo eventually. i don't think that charlie meant to do that he meant to do that in passing, but i would probably argue that's been a good thing for the company. it's certainly been helpful forfor greg to do more of what he's doing and probably made for a more natural position. >> shareholders were clamoring to find out who the successor was. the most interesting comment beyond the apple piece of it all o over the weekend might have been that he said there is no second choice for greg able, meaning that if greg able is not it, he didn't have another person lined up >> yeah, i think he said that that would be up to greg and the board. i think it's pretty difficult to think of somebody who could step in for jane all of a sudden too. these two gentlemen are so key,

running the insurance businesses, greg running the non-insurance businesses they are both key men i would argue. >> becky, we're going to be coming back to you in omaha in just a little bit. we've got a lot more coming up, from here to across the country. when we return, banking turmoil creating a big opportunity potentially for others to start lending money. robert frank's going to join us with that story next at 7:30 a.m., the professor, jeremy siegel is going to tell us why the fed is done and what it will mean for markets he thinks they're done we'll see about that the white house revealing that president biden looking to create some new rules around airlines that would require them to compensation passengers for significant delays or cancellations, this stemming, of course from what was a number of delays, southwest being perhaps the most pmintrone we'll discuss that and break down the details of it when

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private credit, especially replacing those regional banks a new survey from goldman sachs shows that family offices are preparing to poor cash into private credit a third of family offices say they plan to allocate more money to private credit and two-thirds currently have some private credit exposure. now, the attraction here is double digit returns thanks to these higher interest rates and on tom p of that you have banks pulling back on loans. >> i think it leaves room for a whole new group of investors to kind of come in and be really opportunistic in this space and if you know anything about family offices, they love being opportunistic on dislocations. it's why we see higher cash balances >> and the private credit market has tripled over the past eight years to $1.4 trillion most family offices are working with special managers or funds

for their private credit, although a growing number are making the loans themselves. family offices have nearly half of other investments in alternatives, hedge funds, private equity and real estate they have 28% in equities and 12% in cash. t that's a very high level of cash our latest family office investor interview out today on cnbc pro lall right. >> i was going to ask one quick question do you think there's going to be massive regulation around the shadow bank system or do you think that's not touched until there's a problem? >> not unless there's a blowup until there's a blowup, it's like family office themselves. people are saying why should you regulate this. we haven't seen publicly any major blowups in the credit market it's expected to grow to $3 trillion in the next four years. you have to expect with that kind of dgrowth there are going be some problems >> thank you

let's hope there are when we come back, fears of a recession are coming down, at least for the moment oil prices are on the rebound after sliding for several weeks. will this trend push energy prices higher as we head into the summer that's up next right here on "squawk box. back at 73.24 a barrel ♪ ♪ opportunity is using data to create a competitive advantage. ♪ ♪ it's raising capital that helps companies change the world. it's making complicated financial concepts seem simple. opportunity is making the dream of home ownership a reality... ♪ ♪ ...writing new rules and redefining the game... ...and driving the world forward to a greener energy future.

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welcome back to "squawk box," everything oil prices are moving higher today. this comes after that stronger than expected jobs report on friday, ease some of the concerns about a recession joining us to talk energy prices is helene croft, global head of commodities strategy, she's also a cnbc contributor thanks for being here this morning. >> thank you for having me on. >> so is it fair to say that you were surprised to see wti fall as low as $68 and change last week or what gives? w i know we're worried about the economy. >> i mean, macro concerns have really been hammering oil prices also maybe chinese growth isn't

picking up as much as expected but right now i think market participates will start to focus on the fact that these opec cuts are now coming into place. and we are going into another opec meeting in just a couple of weeks. so i do think the focus will soon be shifting to summer driving season and what is happening with oil supplies. >> what do you think opec's likely to do with another m meeting coming up? do you think there's the potential for additional cuts? >> i think it's really interesting that we did not know until after whether it was virtual or whether they would go in person. they have just announced this cut in april there had been some sense that maybe they would take a pass, go virtual, make it basically a nonstory, but they announced last week that they are going in person we will be in vienna on june 4th. that raises the expectation of additional opec action these opec countries are very committed, a small number of them especially have very

important development programs big spending needs, and i don't think they want to risk another fall back in oil prices. >> helima, we know how volatile these prices can be, and every bit of information that gives us some suggestion the economy's up or down has been really hammering things we are getting closer to that summer driving season. do you think there's a point where the immediate demand picture starts to take over? >> again, i think that once you can get past recessionary and rate hike concerns i mean, oil will struggle in the sort of macro wall of worry scenario if those fears start to rescede i think there will be a greater fundamental, india demandhas been really strong china may have been more muted than anticipated but china's demand is growing. we are heading into summer driving season again, these very important cuts will start to take effect, ask i

think also there are these other supply stories we haven't necessarily been focused on which have become more meateria. there's a very significant iraqi pipeline, taking crude from the north to turkey. that has been down for several weeks. i do think as we get into summer these spupply stories will start to take impact. >> what was the level the biden administration said it would refill the petroleum reserve are they going to miss their opportunity again? >> well, they have said that they will refill, if it's in the 67 to 72 range wti, but they cannot refill when they're in the middle of a sale it's a congressionally mandated sale that will take place this summer they're saying come this fall if prices are trending directionally down, that's when they would refi for the spr. market participants are somewhat skeptical saying you've missed

previous witndows. what is the definition of trending down. administration officials continue to say they are committed to refilling the spr. >> okay. helima, thank you. good to see you this morning. >> thank you for having me on. >> joe. >> thanks, still to come, the warden school's jeremy siegel here to talk about why he thinks the fed is done raising rates but unlikely to cut just yet. and we're going to hear from texas congressman jody arrington for the latest out of washington on the debt ceiling and what he's expecting from tomorrow's meeting between president biden and con congressional leaders. cks mi rhtx" icongig ba i'm so glad we did this.

i'm so glad we did this. i'm so glad we did this. life is for living. let's partner for all of it. i'm so glad we did this. edward jones

welcome back to "squawk box. take a picture quickly it's all green the nasdaq has turned now positive there's only one thing, and that is the fair value. that's the only red on the screen all three averages are now up a little bit big day on friday. treasuries, take a look, the ten-year is now 3.47 still under 3.5 even with that really strong number on friday,

the latest monthly employment report showing a stronger than expected increase in non-farm payrolls for the month of april. the unemployment rate dipping to 3.4% the strength of the report causing some speculation that the fed could keep raising rates. the bar is high for it to continue let's bring in jeremy siegel, professor emeritus at finance university -- finance at university of pennsylvania's wharton school of business good to see you again profession there was some revisions from previous months. it was stronger than expected but definitely we've seen the average come down to where it's not running nearly as hot as it had been maybe that's why we saw the markets react that way the fed wants to at least the body language, they want to position that they still might raise, and i understand that you probably understand it too but you don't think they will. >> right i mean, i think the bar is extremely high

let me tell you what i think has to happen. on wednesday we get a cpi. it has to be much hotter than expected, ask i don't mean just 1/10, i mean, you know, 2, 3/10 hotter we need a very hot employment report for the month of may, and then on the first day of that june meeting, we get another cpi, and that has to be much hotter if those three things happen, which i think are way out of certainly extremely low probability, not impossible. then i think another quarter point might be on the table. but look at all the uncer uncertainties of what the debt ceiling. you guys have been talking about it it is amazing that the treasury bills, which are considered the safest in the world that, you know, one month surgery builds up 5.5% or more, above the fed funds rate, which s you know, between 5 and 5.5. that is a very rare situation.

is that going to be resolved by june and even if they kicked it down the road, probably with an extension, that won't be resolved for a period of time. i think the body language and i think you're right i mean, powell was saying that i'm going to let the forces of the rise in rates, which is 500 basis points, the tightening that we know is coming because of what's going on in central banks. there's not going to be a banking crisis i'm not worried about that and a deposit flight and all that. that's something that is certainly going to take hold, and i think he's content to let that play itself out and see if that does enough to keep slowing the rate of inflation. by the way, one other thing i thought was very interesting, he said -- and he said it twice, that he didn't think that wage increases were the principal

cause of inflation remember, that's something that he had focused on before i thought that was an interesting statement. that's something that i believe in i think it's wrong to suppress wages which have fallen behind inflation going forward. he did make that remark twice in the press conference that followed so that body language, that statement, the bar is extremely high, so i think, you know, 500 basis points, nice round number, right, five percentage points, i think they're going to wait a long time and actually start reducing rates later. >> it's been a big move. so we are -- so you think in the face of what you're seeing with yields, i mean, the market's completely different than where the fed is, and we keep having that argument, who's right, the fed or the markets you think they're going to stay there for a while, even though the bond market is saying you're too high, or do you think that

something happens where they cut sooner than they're planning to. >> here's the bar for them to lower rates. you got to have a negative payroll. you got to have a negative payroll. i mean, one or two negative payrolls, don't forget we're getting in a political season where everyone's t primaries, and you know, if we got a negative payroll, that's going to hit headlines the polls have not been great for biden in terms of his handle ing of the economy all you need is a couple of payrolls and rises on employment rate and the political pressure on the fed to say hey, guys, isn't it, you know, time to maybe start notching down that fed funds rate, you know, even if you haven't killed the last vestige of inflation, something that would be needed and in fact, if the -- if you do see a faltering of the real economy and lowering of that rate, i don't think inflationary pressures are going to be a

major concern for the fed. you're going to have to see negative payrolls. it's not impossible, certainly, that's when the talk will begin on maybe lowering rates and you know, two or three of those combined and i think by the fall, we might actually see them notch down rates. >> jeremy, people said if there's a pivot, the stock market's going to be off to the races. there was a pivot. people forget, somehow the market already sniffed this -- it was almost at 4150. i'm talking about the s&p, 4136, so somehow -- i wonder can it get through 4,200. are we in the sustained up trend, or is this the top end of another bear market rally? >> that's hard to say. i've been impressed. i think everyone -- i thought earlier we would see payroll go lower, and certainly we did see

that 150,000 revision downward for the previous two months. i mean, you have to look at, you know, the trend of the employment rate. you know, we might have a mild recession. i think what the market really wants is, okay, we might have a mild recession, but the fed will recognize that, won't raise rates anymore, and will start thinking of lowering rates, and that could set us up for a good fourth quarter if they became really strubborn and keep on talking about we haven't killed inflation yet, then i think the market is going to have a higher time surpassing the previous -- the previous highs. but certainly the internal strength is there. first quarter was good the guidance was not terrible going forward, and the market says, okay, a mild recession, you know, i can live with that 2024 looks good to me.

>> the wage inflation that had been a problem, the service sector you've been looking at other things that were really deflationary in your view, do you think these other -- the ones that the fed had their eye on, are they tamer now, or can that rear its ugly head again? >> i think that there you get the housing, and we know that the fed has finally realized how lag the official bls statistics, which go into the cpi are for housing and we know that housing is 40% of the core cpi, and so -- and it's still rising, 6, 7/10 a month despite the fact that housing prices are, you know, 5% lower than they were a year ago rental prices are 5 to 10% lower than they were a year ago, and that will go into the cpi in indexes in the second half of

the year and add downward pressure to those official indexes. so, you know, not quite yet, i think, i've got a few more months of those shelter indexes going up, but then as powell himself is recognized, that's going to apply downward pressure to the official. but year-over-year for the next few months it's certainly going to be stagnant, i think, 4 to 5% that's not going to go down. i don't think that that's enough for them to say i'm going to raise another quarter point, with all the uncertainties and cumulative increases, i think they're going to say i'm going to let the forces play out and see where we land in the second half of this year. >> anything going on next week looks like few things. >> graduation. >> that's right. idina menzel is going to be the speaker. do you know this guy, brent staples? do you know him, honorary degree

at penn. >> yeah. >> that's a big deal. >> speaking at the graduation through the years, whoever it is >> i know, i can't believe it's happening again, but it is >> they seem to happen faster and fast er and faster. >> it's like every year, i think. >> graduations keep on going on. >> time is logmorithmic a year ago is faster and faster as you get older. >> that's the same expression, i feel like i have breakfast every hour now >> -- for your waistline, right? >> i didn't think of that, no, it's just i'm up again, it's 3:30 again thanks, professor. >> joe, thank you. and i don't know what you guys are talking about. it's not getting faster for me >> yeah, well, it's only 1:40.

>> elon musk became a topic of discussion at the berkshire hathaway shareholders meeting. we're going to tell you what warren buffett and charlie munger had to say about the tesla founder next. plus, you can get the best of "squawk box" on our favorite podcast. you can listen anytime, and we've got three -- count them, three special squawk pods that are coming up from the bksreerhi hathaway meeting katie cramer has been here and interviewed lots of people stick around, we'll be right back

dad, we got this. we got this. we got this. we got this. life is for living. we got this. let's partner for all of it. edward jones

welcome back to "squawk box. shares of tyson foods are tumbling, the company reported an ajusted loss of $0.04 a share. analysts were expecting earnings of $0.80 revenue, also below expectations and the full year revenue outlook is lower than expected becky. >> thanks, joe elon musk tends to make headlines everywhere he goes, and in some cases places he doesn't go he actually made headlines here

this weekend in omaha, even though he wasn't here because a shareholder asked charlie munger for his thoughts on tesla and the spacex ceo >> i think over elon musk overestimates himself, but he is very talented. so he's overestimating somebody who doesn't need to overestimate to be very talented. >> hoe would not have achieved what he has in life if he hadn't tried for unreasonably extreme objectives he likes taking on the impossible job and doing it. we're different. warren and i are looking for the easy job that we can identify. >> yeah, if we could do it playing tic tac toe we'll do it. we have a wholly different way of going about -- we don't want to compete with elon in a lot of things we don't want that much failure.

>> yep [ laughter ] >> by the way, i probably should have set that up just explaining, charlie was asked very specifically would you say people who -- i think the quote that charlie's often known for is saying, you know, a guy who has a 120 iq overestimating himself to have 150 iq, and said specifically is that elon musk you're talking about that's charlie kind of backing up saying, look, he may overestimate himself, but he does it with very good reason. this is a very highly successful guy. this was kind of a snide question that they responded to by joking around and saying some of these things. munger also called musk a brilliant guy whose dreams have foundation did elon musk see this yes, he did because all of it was reported on twitter with some of those cuts being posted as well. musk responded to the comments on twitter, and this was a response to one of the actual clips of what we just showed you.

musk said he appreciates the kind words from warren and charlie. there was some back and forth a little later elon wrote, i'll ask warren and charlie is what he said. >> anybody who thinks musk has an iq of 120 has an iq of about 75. >> and by the way, charlie corrected that he said that this would be -- i forget the numbers, he raised it signi significantly. more like 150 to 170 is what he said. >> if elon is a guy with a 160 that has a 190, that's how you'd have to -- >> that's what charlie restructured it. charlie said this would be a higher iq we were talking about. >> we should say this is a switch for charlie and warren because we've been at meeting over the years, becky, where there have been questions about elon musk, there's been

questions about tesla, and the answers were less enthusiastic, let's just say >> there have been questions about areas they've competed because they invested in byd. >> byd, yeah >> a long, long time ago what was that 2003, 2004 when that initial investment came up. there are always people throwing questions at them like why don't you buy tesla. they've joked around it has gotten a little contention in the past elon musk talked about how he was going to compete in the candy business. it was a joke, he never did. i don't think eli -- i think they've been pretty clear, and charlie made these comments in february at the daily journal meeting. is it february that they held, he just said he really gives him credit for what he's built up. i think they've been impressed by his successes, particularly the successes that have really become -- >> no, no, i think they're impressed today. all i'm saying is i think there was a time if you go back in time where they were a little

less, as i said, polite, enthusiastic. >> that was pre-covid. i do remember the comments because i remember specifically m musk talking about threatening to compete with him when it came to candy pretty sure it was pre-covid, four or five years going back. >> you can teach an old dog new tricks, but you know, they resist for a while i think you've seen it with tech and everything else with those two guys but it's hard, eventually i think you can teach an old dog new tricks >> look, they bought apple seven years ago. >> speaking from experience? >> yep, i'm still learning. >> coming up when we eturn, short sale is racking up billions of dollars betting against regional banks now questions are being raised, banning short selling of stocks. tomorrow, big reveal, cnbc's annual list of fast growing startups the cnbc disruptor 50 list on

air is and online. you can check it out cnbc.com/disrupters. "squawk" coming right back can they help us improve our digital experience? absolutely. they've invested over $2 billion in tech. that could really help us manage inventory. and save us a ton of dough. then let's take back our market share. checkmate, chess heads. girls, i said “bedtime”! (cecily) you're looking pleased with yourself. (seth) not to brag, but i just switched to verizon. (cecily) so you got an awesome network... (seth) and when i switched, i got to choose the phone i wanted. for free. not bragging. (cecily) you're bragging. (neighbor) oh, he's bragging. (seth) who, me? never. oh, excuse me. hello, your royal highness, sir... (cecily) okay, that's a brag. (seth) hey, mom. i gotta call you back. (vo) visit your verizon store during our spring savings event and choose the phone you want, like the incredible iphone 14, on us.

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an update now on a proxy

battle with carl icahn it believes it has the right team to deliver a strategy in place. they say board members bring no additive skills, no independence from icahn it's urging supporters to reject icahn's nominees and accuse francis desouza of destroying $50 billion in shareholder valley and he's been critical for illumina for following that position despite the company regulators >> andrew, just a comment on this no mention in this letter of carl icahn for the ponzi-like structure. that took off like 20% of his company that day to me that's kind of a remarkable level of restraint to not mention any of that, taking the high road, but probably more

restraint than i would have taken myself >> implied, though, because you just implied it. >> well, i did but i read through the release and went wow. >> in its omission it's glaring. >> potentially, yeah >> meantime, our next guest's latest -- >> they didn't point that out to me i saw that myself. >> you thought about it immediately. >> our next guest examines whether bank short selling should be banned liz hoffman in the piece that she writes, quote, short sellers have may $7.4 billion for betting against the banks. going back to 1930, i think president hoover talked about potentially banning short selling. this has happened before, this conversation >> it has. good morning thanks for having me i mean, listen, the historical

inputs seem to suggest it doesn't really work. i would say this is not a depositor story anymore. it's an equity story depositors stopped freaking out a few weeks ago. if you have an equity problem, it requires an equity solution in '08 bank stocks continued to go down during that two week but actually outperformed the market and in the mean time they passed tarp if you have a clear end point you're trying bridge increasingly nervous equity holders to, it's not a terrible idea, i don't think. >> how long would you put it in place. >> it was two weeks last time. the thing about this particular crisis, it's benefits and

starts and then a lot of urgency, something goes wrong and we settle back into this low drum beat of anxiety but not enough urgency to actually do anything about. i asked jay clayton who was on your show last week and he said it's a temporary bridge. if there's an idea that you're building towards, perhaps recapitalizing these banks, either privately or publicly or making explicit that deposit guarantee. right now you have this deposit asymmetry. the bigger banks they're effectively insured and the smaller ones no one is clear the feds have gone out of their way to not say those words out loud >> even if you guarantee the deposits and you are have money at a regional bank and you see the stock falling precipitously, whether you're money's guaranteed or not, you're taking the money. if that's true -- but then there's a secondary question, you talked about two weeks you'd almost have to put this in

place for two years. we've been going through, as you said, fits and starts, it's not clear that there's a beginning and end here you get into q1, q2 of '24 when you'll see the roll of the commercial real estate issues affect some of the smaller banks especially, it gets even more complicated. >> i totally agree i never understood the argument on the short sellers if you say mcdonald's is going out of business tomorrow, people are not going to stop buying hamburgers your point, the other thing here is that there is a rational argument that these banks should be massively rerated as stocks anyway, their margins are going to be massively repressed in the next couple of years, either

having to pay up for deposits or relying on the fed term low facility, which is expensive money. should we stop investors from expressing that these stocks will be worth less in the future i don't know >> what do you think about the idea this we should follow canada and australia and other countries and call it a day and decide we'll have four, five, six big banks? it's almost sacrilegious in a way. we like big banks. it's unclear what happens if you just have four, five, six big banks but maybe that's almost what's happening already >> i agree i've been kind of a reluctant defender of too big to fail. went through this in '08 when you have the problem, you want the risk in a room where you can see it you want to send eight town cars to the banks and say we want your ceo at the fed in an hour

we are sort of nostalgic for this frontier bank, the savings and loan that doesn't practically exist with the exception of small business. but there's a very fair argument to be made that we have way too many banks in this country >> liz hoffman, appreciate it. good to see you. >> thanks for having me. >> town cars kind of lost that suburban feel. big suvs >> don't poor mouth yourself call it an escalade. >> but town cars, everybody used to be in a town car, sedan >> it's true >> coming up, treasury secretary janet yellen warns of economic chaos if coness grdoesn't raise the debt ceiling jody arrington will give us his expectation about tomorrow at the white house. we'll be right back.

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good morning dow futures in the green following an end of the week surge last friday. we focus today, regional bank shares bouncing back and key comment from the oracle of

omaha. meantime, janet yellen warning of an economic calamity if the debt ceiling isn't raised. and inside the biden administration's crackdown on mega mergers, we've got a very special interview this morning with jonathan kanter, the head of the department of justice's anti-trust division. the final hour of "squawk box" begins right now good morning and welcome back to "squawk box" here on cnbc live from the nasdaq market site in times square that's where andrew and i are. becky quick isn't. she's out in omaha still >> i is. >> i are, i is just not me. >> she's in nebraska following that big -- >> sorry, can't hear you

>> following that annual shareholders meeting now the equities positive. now it's down. treasury yields under 3 1/2 on the 10-year and the 2-year still under 4% >> here are other stories investors are going to be talking about this morning treasury secretary janet yellen saying failure to raise the federal debt ceiling will cause what she says is an steep economic downturn and chaos. she urged congress to act before early june, making those comments on "abc this week" just yesterday. we'll talk about that with the chair of the house budget committee. you can harr janet yellen here in an interview on cl"closing bell." >> and a push to have airlines compensate passengers for

significant delays or cancellations. like look a little bit more like what they do in europe the stocks not down much except for southwest. and then a big weekend at the box office for "guardians of the galaxy, volume 3," opening with though that was a bit below expectations maybe that's why the word tepid was thrown in there. becky quick. >> thank you very much we want to get over to mike santoli who was also at the berkshire hathaway meeting >> i feel like people are synthesizing the message, though kind words about apple and i think the regional banks

providing support for the s&p this morning, too. a lot of us thought warren buffett might have more to say about value. they talked more about how there is an implicit guarantee and maybe it's more idiosyncratic than systemic. here you see the s&p 500 has not gotten too far from the end of that stub or range, 4200ish. this looks somewhat promising, the fact that the market didn't really want to go down even to challenge the 4000 level on the recent pullback. so much talk about how nasdaq has been keeping the market sup support. essentially they're neck and neck everyone talking about how the nasdaq has done all the work is really talking about this orange

line this year as opposed to the dow's massive outperformance last year. it's kind of an ebb and flow in terms of the type of stock that has worked take a look at gold. there's a lot of commentary that the stock market seems not to be particularly rattled or paying much attention to the debt ceiling debate gold seems to be doing that as well as the short-term treasury bill market is registering concern. maybe that concern is holding stocks lower than they otherwise would be without it. you see this, a five-year chart. it's trying to break out that also could look like running out of team. that's an interesting one to watch as a sentiment tell if nothing else, guys >> mike, maybe a little surprising that there was no commentary on bitcoin at the berkshire annual meeting this week and nothing that charlie monger or warren buffett had to say about it i would say, though, thousands and thousands of shareholder questions came in and i don't recall seeing a single one of

those questions. none of the shareholders here asked that question either maybe it's because people know pretty well what they think about that and it's tired and old. there were a few questions about gold but they didn't comment on any of it because again i think we know what they think about gold, too. but maybe that has finally run its course in. >> i think that's very telling that you did not have a real ground swell of interest here. sometimes those questions come in and they're trying to prompt warren and charlie to reiterate standing positions but i think the fever has broken to some degree when it comes to bitcoin among retail at least certainly in the last year or so things that they have said about it have this air of we've been proven right about this in terms of what's going on in crypto. >> it's hard to be proven right -- >> it's come up recently >> they were saying it's 17,000, it's back to almost 30,000

that might be why they're not talking about it >> maybe nobody asked. >> i wouldn't ask them again i've heard enough of it. >> exactly >> it's like hitting your head against the wall it feels really good when you stop i think that's why no one's poi it you should try it. i think that explains a lot. let's get back to the banks. thanks, mike regional bank shares gaining in the premarket, following big moves on friday, including an 80% surge for pacwest and 49% jump for western alliance. joining us on what regulators may be looking at, former executive at the new york federal reserve and a current special advisor at cs bank international. the regional banks last week, dino, it was really horrific and rebounding 80%

that's very odd with no news as a backdrop it has a lot to do with short selling and big players in there. i think maybe looking at balance sheets and deciding who's next, things like that but is it over at this point >> probably for the immediate term the worries about these big interest rate mismatches, we might be past that all the banks have not reported so we've seen kind of where at least the banks were at the end of q1. sort of you did have probably some short covering on friday, that kind of help. so those banks that we might have been fearful had interest rate mismatch, probably those guys were past that. the thing over the next six to nine months is going to be commercial real estate who has the commercial real estate exposure. that's what the market will be sniffing out for in this city and san francisco, other cities, you have a lot of

leases that will be coming up. the landlords will have a hard time finding tenants for those leases and then the debt holders, the creditors are going to have issues that they're going to have to contend with as that comes up. and the regionals are going to be in the firing line when that comes along but we're still a few months away from that. >> what are people assuming about implicit/explicit deposit guarantees buffett has said i'll bet a million dollars to anyone who puts up -- like it means anything to buffett. it's like put some real money up, warren >> did he put up like a hundred million for march madness? >> that's a million, too you love the deposit conjecture.

so what do you think people feel is the status quo right now about -- guaranteed to a million? >> i think people think it guaranteed -- i think people think if you have $250,000 or $250 million in the bank it is guaranteed whether it really is or not, we never really tested it beyond one bank at a time you get three, four banks on a weekend, call me i think it's going to get very complicated very, very quickly >> do we need do something, spell it out >> the fdic has a proposal they put out recently clarifying that business accounts, demand deposits that they'll be used for things like payroll that they'll be protected as well when was the last time we had a major bank fail where the deposits were not protected? it's been a long time. >> pretend for half a second you're the cfo or treasure of some company that has money at a regional bank. you're watching the stock

precipitously decline. you talk to your board, to your management everybody says, oh, i think they're guaranteed they might be guaranteed should we take our money, not take our money what do you do you say let's go and we'll figure it all out later. we'll ask questions later. >> there's too much career risk for those people so the money gets move. >> bingo was his name-o, that's the problem. >> i think buffett was right in what he said and it was confusion and he's going to have to clarify -- >> is it just the language i think it's more about that last week i was tying what happened with gamestop oddly enough with this moment. all of a sudden we saw the

digitization and then we saw svb, billions leaves in four hours. there's no way to insure against t this it used to be the people had to line up around the bank and it might take you a couple of days or a week to get the money out now if you can just do it, what do you do? >> the old method tell the tellers to go slowly, count slowly, take a lunch break, that does not work anymore. >> close the doors >> and that reality, that's got to -- the fdic is aware of it. >> once you've decided that that cat's out of the bag, what do you do >> you are going to -- i mean, so my view is that they're going to have to be more definitive about protecting all deposits, at least demand deposits not all time deposits but --

>> it could be sacrilegious but do you think five years from now we're look canada, like australia, we have a handful of big banks, we know they're too big to fail, they're basically government entities anyway and that's what it is. >> we've gone from 14 banks to four you probably are going to have five or six very big banks and maybe like another 2,000 small banks. we probably are headed in that direction. most companies are moving in that direction already >> why is your money at the 2,000 small banks then >> over the very long run, who knows what the number is of small banks. but in this country there is that romance banks, small banks, community banks, the role that they play. >> it's high yields for probably the wrong reasons. >> it's also political politically these

institutions -- the local car dealership and the local bank has a lot of pull politically in a lot of communities so congress is not going to go along with sort of a regulatory structure that leads to, you know, a massive contraction to four, five banks. this contraction between easy money and hard money -- >> i get that's where we are the question is is that where we should be? >> i don't know. i think politically it's going to be hard to go to the canada or australia model that you point out. i just don't think we can get there, even if we should it's just not how this country is wired >> i think it would hurt growth. you said we decided no dead cat bounces and no cats -- who put the cat in the bag that you're talking about. that is cruel and anyone who did that, am i right, you shouldn't put the cat in the bag in the

first place. >> you're a dog, you're a dog. >> see what i'm saying >> good point. >> thank you >> becky has a cat >> more highlights from berkshire hathaway's shareholder meeting. and is congress any closer to railing the debt ceiling and stay tuned for a wide ranging interview with the chief anti-trust enforcer with the department of justice. it's an interview you can't see anywhere else. all that and more when "squawk box" returns how do we show strength and stability?

(eagle call) a mountain? a tree weathering a storm? (thunder) lions? nope. (lion rumbles) we do it with our people. i can't, you know, thank my parents enough for making sure that this connection is here. one of the things that my mother told me when she was in the hospital, she didn't tell me, actually, she couldn't speak at the time, but she wrote it down... "go see alicia." oh, my goodness. you know, and there was never a time that you were too busy. there was never a time you said i'll call you back, you know. i needed to be there to carry you through, just like, you know, some of my friends carried me through.

welcome back to "squawk box. the futures in the green on the dow, s&p up about 9 points, nasdaq off about 7 becky in omaha >> andrew, thank you treasury secretary janet yellen sounding another alarm on the u.s. debt ceiling. >> we do need to raise the debt ceiling to avoid economic calamity we would simply not have enough cash to meet all of our obligations, and it's widely agreed that financial and economic chaos would ensue >> yellen making those comments

yesterday, the day before the berkshire hathaway annual meet hearing in omaha warren buffett described poor messaging on the debt ceiling and recent banking turmoil >> you shouldn't have so many people that misunderstand the fact that although this may be a debt ceiling, it's going to get changed. although there's a $250,000 limit on fdic, the fdic and the u.s. government and american public have no interest in having a bank fail and have deposits actually lost by people we had a demonstration project the weekend of silicon valley bank and the public is still confused >> the next potential debt ceiling catalyst, president biden, is set to meet the top republicans and democrats from the house and senate tomorrow. joining right now ahead of that is texas congressman jody

arington thank you very much for being here today i've heard you've described this as your greatest leadership challenge yet. how certain do you think or do you think we'll be able to reach a deal that averts some sort of crisis >> well, it's been a challenge because in the past we've kicked the can down the road. we've just raised the debt selling basically giving an unlimited line of credit without any guardrails or consideration for spending or in this case after $10 trillion of spending the last two years, out of control spending, that's driving record inflation which has been devastating to working families across the country so, you know, we're just asking president biden and the democrats to do what's been done in the past. quite frankly, president biden has led negotiations in debt

ceiling legislation where they considered spending controls and fiscal reforms and it's that straight forward the two are not mutually exclusive. this is not unprecedented. we just have to be responsible, consider our economic condition, consider the amassing debt that we're going to put on the next generation of americans and start to rein it in responsibly. >> there are five days, i believe, where the president and the key members of the house and senate are going to be in town over the course of the next month or the next three and a half weeks i would say, before the debt ceiling is hit, according to what the treasury secretary is saying, just the date she'll most licke live run out of the ability to move things around and change things around the edges given the short number of days left and the market's reaction, if you look at four-week

t-bills, you're talking about rates about 5.8, 5.9%, which shows the serious concern investors have at this point, at least in the short term. would you consider something that allows you all to negotiate past that to avoid the extreme of the u.s. defaulting on its debt in. >> we're halfway on the deal because republicans have submitted their proposal, passed it out of the house. so chuck schumer and his democrat colleagues along with the president have to decide whether they're going to engage. he's called a meeting. that's a positive sign if they'll follow suit and do the right and responsible thing by coupling the debt ceiling raise with a common sense spending reforms, then i think we're there. but we've got to have -- >> congressman, let's just talk about this honestly. the treasury secretary was kind of equivocating on all kind of

stuff yesterday. the more she was pushed on it, the more kind of silly the answers started to look. i think people understand what's happening here both sides have said they have dug in, that they're not going to basically take anything but what they have laid out. obviously something needs to get done do you think that something is going to be reached between now and the next few weeks or do you think it going take a little longer to work out the doetails kevin mccarthy has said this is a floor, not a ceiling >> three out of four of americans expect the president to follow suit with what we've done i think our proposals are straight forward they're very common sense and very reasonable. we're just talking about clawing back unobligated, unspent covid money. >> it's a longer laundry list. i understand and agree with some of your points

i think taking back the unspent covid money makes a lot of sense but it's a much longer laundry list than just that. if they were to say we will negotiate over these issues and budget, do you think that's going to be enough to push across if you look at both extremes here, it seems tough to find the idea that you're going to find common ground between the two. >> well, look, they have been hoping, i believe, and wishing that the republicans couldn't get their proposal passed. i don't think they thought we could do it. so now -- >> i think that's probably right. >> now they have to respond in kind they have to have the same sense of urgency that we have. the president hasn't returned speaker mccarthy's call for his request for continued conversations and negotiations he's been running the clock out. now the ball's in his court. we have a good list. i think it's very straight forward. able bodied adults who receive

public assistance out to work. we should not continue the barrage of regulatory assault on american energy. we can't get out of the recession what we're heading for if we don't have pro work, pro growth, pro energy policies. they can counter but they now have to step up and act like responsible leaders. we've done that and we have set that example and we have placed in their hands a list of proposals that we have gotten consensus on it's their time to respond and the american people expect them to because the american people have had to tighten their belts and change their spending habits because of the spending primarily that has driven the inflation that these folks are suffering with >> congressman arrington, i think you're right that democrats were counting on you not being able to get something

passed out of the house. axios reported that speaker mccarthy actually called you incompetent about this were they wrong? was there 100% agreement at least in the leadership in your party at this point? >> i think there are a lot of people in washington that wanted us to fail, quite frankly. and i don't put stock in any of that the results speak for themselves we got 217 republicans to pass a proposal with all that noise in the background, and now i think all of washington establishment and our democrat colleagues are very sober and awake to the fact that they've got to deal with this because we already have and it's an imperative that they do because we've lifted the debt ceiling. our proposal lifts the debt ceiling. and it just adds along to that the addressing the spending that

is driving all the things that i mentioned with row eespect to inflation, soaring interest rates and a weaker economy >> chairman arrington, i thank you for your time. >> thank you >> coming up, an interview with the department of justice anti-trust chief jonathan kanter next up, though, top teaakways from warren buffett. stay tuned you're watching "squawk box" on cnbc with voya, considering all your financial choices together can help you make smarter decisions. voya. well planned. well invested. well protected. what do you see on the horizon? voya. well planned. uncertainty? or opportunity. whatever you see, at pgim we can help you rise to the challenges of today, when active investing and disciplined risk management

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>> we are the reserve currency now to some highlights from this past weekend's berkshire hathaway hathaway meeting here in nebraska >> you have to have a punishment for the people that do the wrong thing, and if you take first republic, for example, you could look at their 10-k and you could see that they were offering non-government guaranteed mortgages to -- in jumbo amounts at fixed rates, sometimes for ten years before they changed

the floating and that's a crazy proposition. if it's to the advantage of the bank, they got the guy coming in that says i'll refinance at 1.5% and then 1%. if it's advantage the other way, you don't give options like that but that's what first republic was doing. it was in plain sight and the world ignored it till it blew up >> berkshire's owned bank stock and he has stepped in the past to inject cash into this industry when it was in trouble. >> we don't know where the shareholders are the big banks necessarily or the regional banks or any banks are heading i've got my bank and i've got my own personal money and independent probably above the fdic limit and i've got it with

a local bank and i don't worry about it in the least. but in terms of owning banks, events will determine their future, and you've got politicians involved, you've got a whole lot of people that don't really understand how the system works and i would say that you've had something less than a perfect communication between various people and the american public, so the american public is probably as confused about banking as ever. >> for their parts , investors today may be more bullish about specific stocks. without much reason you are looking at some of those stocks up pretty significantly. pacwest bancorp is up to 7.71.

western alliance is back to 30.30. like every day it depends on what the market wants to focus on >> absolutely. when we come back, big tech is in focus don't go anywhere. "squawk box" returns after this. find top-rated drivers and irons from callaway, taylormade, titleist and ping. tour balls from your favorite brands. and the most dapper styles from travismathew and walter hagen to calia and lady hagen. you handsome devil. select the best golf shoes like footjoy, nike and more. and get back on the course with one-hour pick up. look good and play great with gear from dick's sporting goods. i'm so glad we did this. i'm so glad we did this. i'm so glad we did this. life is for living.

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welcome back to "squawk box. i'm dominic chu. let's get a reset on market movers this morning with a regional bank trade to kick things off most of the stocks more active tilting toward the up side as you can see here we're showing you some more dramatic moves in western u.s. based lenders that are closer to the fallout of silicon valley banks and their failures. western alliance a solid bid, up about 12 1/2% as well and bank of hawaii and zions caught up in the uptick swell keep an eye on tyson foods which

is falling by roughly 10% premarket, nearly 200,000 shares of volume. the meat company reported worse-than-expected results and cut its full-year outlook amid profit margin pressures like beef, chicken and pork products. and we'll end with fertilizers that's scott's miracle grow, around 3,000 shares of volume helped along which analysts at jpmorgan who upgraded it to an overweight, they keep the $80 price target and they cited a belief that the pressures that scotts faced increases over the years has come to an end up 3%. i'll send things back over to you. >> and m & a activity.

the d.o.j. ran into problems trying to block united health's acquisition of change health care among other cases currently in focus, jet blue's bid to buy spirit airlines and of course google and there's potential for apple and so much more joining us to talk about anti-trust scrutiny. this is his first broadcast interview since taking on his role we very much appreciate him being at this table because some of our viewers are trying to understand how your administration and everything you're doing may impact them thank you for being hereof. >> >> thank you for having me. it's a real pleasure to be here. i think a lot of the business community today looks at you and says oh, my goodness, this is a

very graggressive, different department of justice. some would even go so far as to say that this, you, and the ftc and others are pushing the law or trying to push the law in ways that are not even intended. >> so first let me start by saying that, you know, we started this process with the wind in our sails. we have a president of the united states who issued an executive order that promotes competition and competition policy throughout the economy and throughout the government. i have the honor of working for an attorney general that is himself a brilliant anti-trust lawyer and believes in reinvigorating enforcement we are a law enforcement agency. we follow the facts and the law wherever it takes us and we believe that the anti-trust laws exist to promote a competitive, resilient economy. and that rising tide lifts all boats. >> last year "the new york times" started a piece with the following quote, "president biden's anti-trust regulators

have adopted a mantra -- in order to win, they need to be willing to lose. is that right? >> we bring every case because we believe we can win. we follow the facts in the law and we bring cases that we believe are right on the law and right on the facts >> but the reason i say that is you're not only trying to -- you will not only bring a case that you are think is a slam dunk win. >> he said they bring every case i take him at his word you're trying to get together, we're going to bring a case. that's what it looks like now. >> no. what i said is we follow the facts and the law. if a merger is anti-competitive and harms competition, then we bring a case >> it looks like it's almost not about consumers, it's about employees, like companies can't

be put out of business anything that would harm a anachronistic industries, you can't even rationalize those because there's big job losses is it still about customers here we things about tech where it's never done better, never been cheaper and yet they can't get together because you're worried about competitors. >> congress enacted anti-trust laws that competition is good for society, good for consumers and lower prices, good for entrepreneurs in term of access to capital and markets to compete with inowe vase, good for workers and their ability to earn a better wage >> sometimes i think it actually hurts competition by keeping competitors that aren't competitive in business because of worries about the economic effects of job losses, et

cetera >> i work at the u.s. department of justice and my mission is alongside my colleagues at the d.o.j. to enforce u.s. law that's where my focus is. >> let me make it more complicated. we are in the midst of a banking crisis in america. you have just seen some of the smaller banked gets merged up with some of the bigger banks, the jpmorgans of the world some people would say you need to do that for safety and soundness. i would think that in the world of anti-trust regulation, you would have to look at that and say, you know what, i don't like that, but how do you weigh and balance those two different ideas? >> so the beauty of law enforcement is that it fact intensive, it's deal intensive we look at every deal on its merits we apply the law as it's written and then evaluate whether there is a substantial lessening of competition such that we have to go to court to challenge the deal it's worth noting that the vast majority of deals don't go

challenged we get thousands of filings every year only a small fraction get investigations and even smaller fraction get challenged. >> it used to be that you'd think of the media market, for example, as the three or five different networks and that it was. today you'd have to say that apple's there and amazon's there and you can go down the list and all of a sudden it looks like this uniquely fractured market and yet i think there's a lot of media companies who would say, i don't know if i could merge with somebody else because of the way the department of justice would think about it >> competition plays out across a wide range of dimensions and our job is to understand those dimensions, whether it's price, subscribers, advertiser costs. for advertisers, the ability to programmers to get funding to

develop their programming. there are wide ranges of consideration that go into anti-trust markets >> you've seen meta, for example, not your case but ftc and they've said, look, how is it possible that you're going after us at the expense of -- not at the expense of but here's tiktok, this chinese-owned company that they think is going to effectively become much bigger because of the regulation that's going to come on to them. how does the foreign piece of this work in your mind >> andrew, so i've heard people make the argument that we need to toll ray monopolies in the united states so we can be more competitive abroad i don't subscribe to that view it's my belief we are at our best at a society when we are a free, open, vibrant market we are hat our best when we ar competitive, when we have opportunity for all businesses of all sizes, of all stripes and by enforcing the anti-trust

laws, we're preserveling that competitive opportunity for our economy and for all players in our economy. as a result, we are better we are more competitive. >> what if a company is just so good that it has a natural monopoly do you need to target that >> our laws only focus on anti-competitive conduct -- >> sometimes it looks like -- for example, when i text someone and it comes back green, it's like what's wrong with you what kind of phone is that right? i mean, they're so good -- apple is basically a monopoly. >> so you're saying it's not easy being grown >> that, too is apple a monopoly? >> well, i think there's a question as to whether they've gotten to such a state velocity, if you will, that the app store itself becomes a utility that's the question. i would celebrate it

as a consumer, i love the app store and i love that it's secure and i love all that as a consumer, but there's a lot of other folks who would say, especially people in the app store who would like a different deal >> again, i won't comment on any specific company or any specific investigation but what i can say broadly is it really just depends on the conduct monopoly law focusses on whether a company has market power, monopoly power and whether that company is using that power to affect competition. >> we talk about chat and a.i. all the time but there a whole number of next generation technologies that seem to require both scale and enormous sums of money. because to get this stuff to work, you need to be buying the video chips and other chips not by the dozen but by the

millions the amount of money it takes, just the infrastructure to do it is enormous. so i'm imagining that over time there will only be a handful of players. and i'm curious what you think of that. >> yeah, so important inflexion points of technology have often co-unidentified of and telecommunications networks. those inflexion points create amazing opportunities for productivity, things that are beautiful. at the same time, markets can tip, especially markets that are highly dependent on scale, on data and in a world of algorithms and the world of a.i., some of those technologies do have the tendency or may have the tendency to tip. so from our perspective, we want those benefits to be delivered to as many americans as possible we just want to make sure those

markets are free from anti-competitive impediments but to do that, we have to understand the technology. one of the co founders of a.i. inches constitute at stanford. the reason we hired her, world rear nound and other data scientists is because we knew we had to ramp up our expertise so we can understand how these markets work only if we understand whether these markets work can we then apply the law effectively. >> i was thinking about net neutrality i just fundamentally just sort of am laisse fair about a lot of things the hippocratic oath can you think about that >> we want to make sure things are not being made worse by

illegal behavior that's our job, law enforcement. >> we had roger altman on this product. he was quoted everywhere saying there are so many deals that just don't happen anymore because they're worried about you bringing a case. it's not that they actually get to a trial, it's not that they actually get to be adjudicated but as a result that he would argue, i think, and i don't want to put words in his mouth that this new approach is so intimidating unto itself that certain transactions that maybe should be happening aren't >> so i did see that interview and i listened to the rest of that clip where he said there's still plenty of deals that don't have anti-trust concerns, that don't raise competitive concerns it's just those without competition that are leaving the board room we care about making sure that deals do not substantialli subsy

lessening competition. if our enforcement is keeping those deals to getting to us in the first place, then i see that as success first time guest, long-time watcher. >> that's what we like to hear thank you. >> thanks for having me. coming up, much more on the markets as we make our way towards the opening bell on this monday morning futures right now are green, except for the nasdaq. ufutntru worried abo aitst stf. we'll be right back. (vo) sail through the heart of historic cities and unforgettable scenery with viking. unpack once, and get closer to iconic landmarks, local life,

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key inflation readings ahead of this week -- ahead this week, both cpi and ppi we get through the jobs report and then that comes. joining us to talk about the potential market impact, cameron dawson, chief investment offering of new edge wealth. here we are, 4,150 it's been going up, cameron. is it going back down, or are you ready to jump in >> well, we're in the same place talking about the same things because the market really has gone nowhere for the past couple of months and the last six months, the last year, the last two years, we're now officially

flat but this market, i think, is going to have challenge getting much above the 42, 4,300 level without a real change in recession probabilities. we're already at the high end of prior valuation ranges, we're trading at 18.7 times 2023 earnings, which is expensive by historical standards, so that puts the onus on earnings to deliver to the upside, and we're seeing after this earnings season is, yes, companies are coming back better than expected in the first quarter, but analysts aren't raising their estimates for the full year '23 because there's already a big ramp priced in and a recovery priced into the back half of '23, so we think we're still stuck in this sideways chop without the ability to have escape velocity, really, unless you see recession risks fall materially >> waiting, waiting, waiting for this recession it's very -- it never repeats itself we know that sometimes it only rhymes, i'm talking about history, but are

you sure there's going to be a recession in 2023, cameron i can't say with certainty, and i have seen times in the past where we have been waiting for a recession for one, two, three years, and it just doesn't happen when you're just waiting for it to happen is it definitely in the cards in the next year? >> no. it's not a certainty, and one of the reasons why we saw the economy hold up so much better than expected, really in the past 18 months, is because loan growth remains so strong, so despite the fact that there was all this terrible sentiment, we all expected a recession, it was reflected in soft data, hard data remained resilient. banks kept lending, consumers continued to spend because they had jobs, and that is the state today. a recession in the very near term is certainly not guaranteed, but the risk of recession still does remain high, simply because of the speed and magnitude of the fed's tightening cycle, and now, of course, this new risk that we

could see bank lending slow rather materially, which is typically consistent with much slower growth and potential for recession. so, the risks are still there, but the timing remains still very uncertain >> got about a minute left, cameron. when does the market start going up in terms of when a recession -- a lot of times people say, by the time you're in recession, it's time to buy the market so maybe we're not in yet, so in your view, it's not time but right? does it coincide does the bottom usually coincide with the first quarter that we have of a recession? >> not necessarily, but i think that there's two things that typically happen around recessions that makes markets have buying opportunities. the first one is that earnings estimates get cut very materially, so the bar gets lowered, and you have a reaction from fed policy where you see the fed react to recessionary conditions and start making liquidity much more abundant, cutting interest rates and doing quantitative easing. that typically boosts

valuations, so even though real economic growth and real earnings might still lag in the recession, usually the market bottoms long before those turn higher, simply because the fed is reacting, pumping markets higher with liquidity. so, we really haven't gotten to either of those states yet, either the fact that earnings estimates have been cut -- yeah. >> okay. our minute's up. cameron, thank you we got to go becky, we'll see you soon. join us tomorrow >> see you tomorrow. >> oh, good. "squawk on the street" is next ♪ good monday morning, welcome to "squawk on the street," i'm carl quintanilla with jim cramer and david faber at post known of the new york stock exchange. following through friday's rally. busy week for consumer earnings, the debt ceiling negotiations, and inflation data we'll get the loan officer survey this afternoon. our road map begins with a big week for investors the banks rebound. we'll get that latest read on cpi and