Squawk Pod: Tariffs, taxes, & spooky season movies - 09/10/24 | Audio Only

bring in show music please hi I'm CNBC producer Katie Kramer today on Apple leading with AI a new iPhone I want it and a new watch it's going to be able to detect sleep apneia I already know I have sleep at it's debate day before vice president Harris and former president Trump Face Off China tariffs and taxes on the docket investor Kyle bass joins us why shouldn't we tax the people that use our system to earn their wealth why why wouldn't the playing field be leveled against foreigners foreign investors pay zero and former SEC chair Jake Clayton says tariffs work think about how much better we have come out of Co because of our ability to use our economic Tools Plus don't be scared blumhouse Productions is out with another horror movie this week for filmmaker Jason Blum Parenthood inspired his newest Scary Story everyone's scared everything and uh that annoys me so this movie is about that this movie is about standing up for what you believe in it's Tuesday September 10th squawk pod begins right now stand Becky by in 3 2 1 C please good morning everybody and welcome to squawkbox right here on CNBC we are live from the NASDAQ Market site in Times Square I'm Becky quick along with Joe kernin Andrew is On Assignment today we'll be hearing more from him about what he's doing out in La I cannot believe we're talking about the same case and it it's the same I had to look into the details too are we really is it 201 2017 Ireland I remember it I remember it well and U it it's still breaking news even though it's at least 10 years old just happened a couple of hours ago Europe's Top Court ruled against Apple in the tech Giants a 10-year battle 10-year Court battle over its tax bill in Ireland uh in 2014 the Europe European commission open an investigation into Apple's uh tax payments in Ireland the tech Giants headquarters in the European Union in 2016 the commission ordered the country uh to recover $4.4 billion in back taxes from the tech giant saying Apple had received illegal tax benefits from Ireland over the course of two decades I don't know Ireland's corporate tax rate was down in a low it was trying to attract technology technology companies coming in yeah apple meanwhile says uh it's disappointed uh with the ruling I don't know if it's uh the end or or not but you know after 10 years what how much money is that to Apple at this point it's a real it's a real number obviously wonder what what happens with that because I don't know I don't know how that they have it in escro in the meantime does it go through I mean I just got a a note from New Jersey that said I had underpaid in 2021 a phone call no no no it was my phone call that I've definitely underpaid and and I they tell me where I need to send it and I I keep trying to send them the money and I I can't find the address I can provide an account for you no but the the and and it was my fault the I talk to my account yeah it was small but the fines on top of it are huge I guess that's probably not the case here because it was a dispute that was going back and forth so maybe you're not racking up fines on that the entire time because I can only imagine you just I don't uh they don't even you don't even want them to Rebecca quick might be someone different than Becky quick anyway I you don't want any I paid it yesterday immediately it was brought to my attention and I paid it immediately I'm not going to argue with them over this no you're not no you're not and you're not going to say you know me and you know when these 880,000 new agents that you and Andrew wanted so much when they really start get getting active I want them to get active because they're going to go after other people too I I'm tell no this was minor I I pay everything that's out there every single bill that ever comes through that's not for whom the bill tolds all right the announcement from the EU comes less than a day after Apple launched its new lineup of iPhones the 16 pro and pro Max and apple watches CEO Tim Cook says that those phones are built for AI from the ground up but Apple Intel features won't be available until a beta version rolls out next month since the very first iPhone we focused on giving our users a device that's incredibly powerful remarkably easy to use and beautifully designed every year we've built on this Foundation to create experiences that make a real difference in our users daily lives although I have to say the kind of cool commercial that they have touting everything this thing can do the video I don't know if you watched through it some of the things that he said I I want it I haven't gotten a new phone in a while this looks like it's got a lot of great things like the new camera itself and when they get the AI features with it you can do all kinds of quick things that kind of pull in and pull out I want it for that alone it's got better battery life um better battery life yeah I th those two things alone are enough but the pro the prospect of what AI might be able to do for you in terms of writing emails trying to do some things and get it through and by the way I have an old phone so I haven't updated in a while I don't even know what mine is I I have 11 maybe there's a way to find out I I know I got to go look inside and find but yeah well I don't you think it's enough to it's so much better it will cause people to get it well I think it's the promise of what is so much better the battery life and the and the camera alone are enough to suck me into it the other thing there are a lot of people who have not upgraded so it's been a very long time since some people have seen upgrades and maybe that kind of pulls them in as well mine is not old I recently got a new case because the silicon case eventually wears that a little my battery health is my main uh the main issue that I have and I think I'm it goes very quickly uh your battery health my battery health is all the way down uh already to 85 maximum capacity yeah you need a new one I don't really need a new one but pain and if you get stck goes down pretty fast yeah and if you get stuck somewhere it's brand new it's amazing it's like oh my God it's only it last for three days right but you know um there's that there look there were a couple other things I thought were interesting that they talked about the Apple watch is going to have a bigger um a bigger screen so you can do more on it yeah but it's going to be able to detect sleep apnea really yeah I think that's one know I have to say that need the airpods are going to be able to eventually be turned into hearing aid devices so I'm kind of on board with those features God all these it's the Apple Health push that they've been doing to be able to do more more things and I think that's cool and that is all good yeah you know the one thing that is best for and we've talked about it again and again lose weight lose weight lose weight I got some great news yesterday or or get an Apple Watch if you if you are 61 and you're my age which we won't go into do you know what your maximum uh the best weight you should weigh is 163 lbs that's right in the center I looked at 144 which would make me people would worry about me they would 144 to 185 so I've down 20 like already yeah and I'm supposed to get another um just to get to the high end I need another 17 lbs seriously yeah I don't think I'd look lot that's that sounds like you'd be emaciated I know and that's a get to a decent I mean they get to a BMI of 20 what about a BMI of like 22 is okay BMI of 22 would be okay but everything just go down the list of pre-diabetes and Asthma and high blood pressure and sleep apnea and dementia everything in the world goes away which is why people look at OIC as a miracle drug go for launch and there's nothing like a says here a rocket launch in the morning that's an Ode to to David Faber that great piece he wrote years ago the Polaris Dawn who was having us write stuff was when cnbc.com Pam Thomas Graham I think it does is that was it really that's who it was um the um this when they wanted us to write stuff for we have had some some uh different people uh well just by definition we've had a lot of different people over 35 years that have been in charge the polar Dawn Mission lifting off a short time ago from the Kennedy Space Center in Florida the SpaceX crew uh dragon on board a falcon 9 rocket carrying private astronauts Jason isaacman these guys are all pretty cool end gals Scott potit Sarah Gillis and Anna Menan they will use SpaceX design suits to attempt the first all civilian uh Space Walk they're also going to undertake a number of experiments and tests uh including on the starlink based communication system and they're going to perform scientific research uh on human health uh during that space flight mission is slated to carry the crew to an altitude of 800 70 miles above the Earth's surface it would be the highest that humans have gotten since the final moon mission uh in 1972 and a first civilian spacewalk the highest civilian Space Walk um I I forgot to be nervous because it it was last week they tried a couple of times uh to do this and um we we talked about how at this point there's been a lot of of of SpaceX launches and Polaris launches so it should go well but you can't just always can't help you but the former astronaut Mike mamino we spoke with a couple of weeks ago he said that anytime you did a space walk that that was really heightened tensions because there are so many things thater our our space suits weren't compatible with NASA space and Mike m me definitely was like a the XXL uh big and tall man space suit that guyy a he's a monster uh I know but yeah he's if it were him he he would be very excited he he was he said he was really looking forward even if he was going he'd still be excited so much for you and I no no no no no no not going to do it by the way wanted to mention James earol Jones passing away yesterday at the age of 93 I've noted that and uh and I noted the coverage I mean he was great and and I just couldn't help just watching different n networks cover it because one network talked about how he was the voice of their network over and over and over and over and over again which I immediately thought of cuz we all think of that this is CNN exactly right another Network I didn't I didn't watch it all day long but at least the first couple times no mention of that I don't know why geez it's just not not a it's like oh yeah he was you know what was he Darth V Darth vad thing most well known for was a role that he wasn't even credited the thing he was most well known for was that no Darth Vader I think Darth Vader more than anything I mean I of course the second thing me when ous with a a Global News Network for how many years was it it was just funny for for another network not even to mention not even to mention by the way in my head the first thing was Darth Vader the second thing was same and by the way he did and F the dreams I mean is it really you can't even that shows you the state of the current news in this you even breathe the other he was classic guy he was a funny guy I don't know if you ever saw him on Letterman one time Letterman did a top 10 where James Earl Jones showed up in character and just did the top 10 top things 10 things that like ridiculous things that he could say that would still sound really impressive he was also in Clear and Present D Clear and Present D yeah he was amazing in that yeah right Harrison Ford was devast he died in that Andis for was it was it was very upset yes exactly he also had the egot you know the Emmy the Grammy the Oscar yeah one of the very few actors who did all of those right there's that actress uh uh the the the one who was on Sesame Street yep yeah right Rita Marina R hence the uh the age issues that it's just alluded to next on squawk pod tariffs against China and taxes too high too low are sticking points in the 2024 presidential election and they will be Hot Topics in the first debate between Donald Trump and kamla Harris tonight former SEC chair J Clayton is highlighting the geopolitical shifts we've seen in the years since the co pandemic China was our number one trading partner they're number four now yeah because of the different measures we've taken across the board tariffs the usmca and hymon capitals Kyle bass weighs in on the New World Order Taiwan just started exporting more to the US than China for the first time since 2002 so we're changing our trading partners are this is squawk pod stand by Joe his mik here you're watching squawkbox on CNBC I'm Joe ker along with Becky quick Andrew is On Assignment Becky's here like that color what color is that it's a light blue isn't it it is it's a light blue actually you've got pastels going in this morning a little pastelly I'm feeling pastell mon days look like Easter Easter which which uh was coming again at some point comes faster than I know taxes and Chinese tariffs have emerged as key issues in the presidential race investors hoping to get some clarity from uh Donald Trump and kamla Harris on their economic plans at tonight's debate including uh how any new policies could impact uh inflation joining us now Jay Clayton former SEC chair and a CNBC contributor and Kyle bass founder and CIO of hmon Capital Management you were were you in the I wouldn't say in the Trump Administration but you were sort of SEC chair Etc you could be in look I I feel good about the Trump Administration feel very good about it and you are I I think I don't know we talk about a lot of different things you're a China Hawk No Doubt do you consider I either one of these candidates free trade candidates um I so you saying do I support unrestricted free trade the answer is no uh do I no is either candidate we're going to talk about Chinese tariffs we're going to get in issues of national think you think the when when you hear the one talking point all Democrats use against Trump is is that he's going to wreck the economy with tariffs you you you agree with some of these tariffs I agree with I agree with many of them notice that the the 301 tariffs on steel and aluminum exist today and the reason those were put on is defend our industries from a state actor executing non-economic transactions to try to put our our whole industry cross the board tariffs on everything well I think it's a great starting point I think it's a starting point to negotiate down from so I think it's an effective negotiating strategy so you don't think it's Bonk yeah let me let let me jump and say I I agree tariffs are just one economic tool but it's one of the few economic Tools in addition to sanctions which are a little more circumscribed that a president has unilaterally and when a president is dealing on the world stage economics National Security they they go together and a president who says you know what I'm not going to use tariffs is giving up a significant go wrong Jay because he go does he go wrong by saying we're collecting taxes from other countries and we're making billions of dollars collecting taxes is because that's not what's happening that that's not that is clearly not what's happening in all cases but but it is happening in some cases so so for example when China is dumping goods and you put a tariff on on those goods you you were bringing the price back to the Natural market clearing price and we are and we are collecting taxes for that well what you're basically doing is stopping consumption people are not going to buy the cars if you tax them heavily enough with it you know punitive situation to say we're not going to get this let's let's look at tax let's look at something that has happened in the LA postco Co we scrambled all the economic eggs in the world China was our number one trading partner Kyle was here pounding the table saying that is really silly they're number four now yeah because because of the different measures we've taken across the board tariffs the usmca we have near shored and onsh shored a tremendous part of our economy um what did we have we pumped a bunch of energy we're way up on energy pumping from before in favor of things like the chips act and things that have done to I'm in favor of understanding the complexities of the world stage and what is good for America and when I hear somebody say we shouldn't use tariffs I'm like that's that is that is a tool that has been used very well what about the idea that you shouldn't think that you're going to get a lot of Revenue raised from tariffs that we are doing it as a punitive tool using it as a punitive tool and saying okay we're going to change Behavior we're going to change things and make sure that we're not aiding people that we don't think are helping us or countries we don't think are helping us but if you think you're going to raise a huge Sovereign wealth fund that's funded by that crazy look I I think it's the short the the revenue impacts are naturally shortterm because of the adjustments that I just talked about so that that is absolutely true but I mean think think about how much better we have come out of Co because of our ability to use our economic tools China's fourth Taiwan just passed them well T Taiwan just started exporting more to the US than China for the first time since 2002 right right it's Meo we're changing who our trading partners are and and and we why is all this because we have Nimble energy we're up we're up 40% on gas from when Trump took office we're up more than a third on oil and we have the world leading Tech sector the five biggest companies in the world our tech companies and and when the rest of the world printed money in response to covid much of it came back to the United States because our leadership in Tech and energy I mean we really do hear um equivalencies Kyle to the negatives of of both candidates we hear on one side what some people think is is not a a great idea and that is taxing unrealized gains price controls uh go down the list raising corporate taxes but immediately there's going to be what bism thrown back the other side well this lunatic Trump wants to put tariffs across the board on on on all that do you see how it's used in in the in the what's being lost in this argument there's something that's really obvious to me that's not in any of these policy discussions foreign investors whether you're the qari Sovereign wealth fund or the Saudis or UAE or someone in Asia all the Investments they make in America whether it's venture capital or Equity or they buy stocks or they trade stocks they pay zero tax they don't pay a dime a foreign investor pays zero why don't we level the playing field why don't we have why are we going after American citizens that have worked so hard to get to this wealth and we're talking about crazy unrealized gains taxes I think that's insane that will kill Capital formation but why shouldn't we tax the people that use our system to earn their wealth why why wouldn't the playing field be leveled against foreigners foreign investors pay zero it's actually hard for me to believe and no one's picking this up why wouldn't we do that why would wouldn't we do that before we ever talked about doing something else taxing Americans it makes no sense to me right what do you gentlemen expect for tonight J what do you expect um it's ABC Trump is tariffs tariffs are bad it's going to increase inflation um uh from the Trump side I think emphasized that the pre-co economy uh 3% growth 3% real wage growth um 3% unemployment all with low inflation uh was the result of comprehensive policies um hopefully we'll have a more substantive discussion than just tariffs are bad yeah I mean again we go back to this tariffs is bad argument where Trump put these tariffs on steel and aluminum Biden campaigned on killing those tariffs and they still sit there today because they had a national security imperative that's why they're still there uh they weren't enough on aluminum because China ended up putting our big aluminum smelters out of business so uh to to take this broad brush and say they're bad just to to Jay's Point earlier about the complex of the of the world you have to Target things when you're trying to protect industries from Reliance on bad guys to be like relying on Germany to make our ammunition in 1938 we don't want to do that um so we need to stop relying on China to help us with our military industrial in your view who who would China prefer the next president to be I mean I think that's obvious they'd prefer K why I think because Trump's unpredictable and Trump trump and his National Security Council were willing to to really go Levy these these um these sanctions these tariffs think about what Trump did in 2017 he had Iran buckled down like 12 billion in working capital M you want to see sanctions properly executed those were properly executed the sanctions on Russia right now we sanctioned 10% of their oligarchs we didn't touch their Banks and we let the energy business Thrive which is 60% of Putin's GDP like we didn't sanction anything our sanctions on Russia are nothing Burger we need someone in the seat that knows what they're doing that is willing to press the hard button and the hard button is going to hurt but so far we haven't had anyone in there that's willing to press the hard button when Trump was in there he had Iran buckled down and then all of a sudden this current Administration flipped and said you know let's give them $100 billion and you see what happened when that happened like I don't think we have a cohesive foreign policy Economic Policy sanctions policy yeah and let me I I'll go on the domestic side our energy strength and our strength in Tech and the fact that more than 50% of the world's Capital gets invested from the United States those three things what I've heard from the Harris Camp is skepticism of those three things the green New Deal is anti-energy the taxation on capital gains is anti- capital flows okay and then in Tech you know the idea that they have been that Lena Khan has somehow you know bought into the European view that us Tech is bad I mean there's nothing has brought people out of poverty around the globe more than getting connected to our India's entire strategy on pulling people out of poverty is connecting them to the digital economy yeah and think think about one more thing we need to start acting like the power that we are we are 4% of the world's population we're 25% of the world's GDP we have 45% of the world's Capital markets we need to start acting like we're strong and stock stop acting weak we need to lead with strength like we used to the uh there's a widely circulated view where I I think uh pres I almost said former President Biden so sad but um where where President Biden said we uh read my we we will end fossil fuels and at the time the left was like yes thank you we're going to do it now because we're at at maximum production we're at new highs for production they're all the ratified that that that didn't happen and now they actually brag that the bid Administration has brought us to the Forefront of of oil and gas production and simple stat on have they not though has not B it's amazing because let me a simple stat on that gas went to 525 nationally on average at at sort of the height of the Co supply shocks right it's now down to 325 that $2 Delta is $600 million a day in people's pockets if you don't if you don't understand that this Biden did not end the fossil fuel industry we at all time oh it's together it's together like look we're from I'm from Texas so the high prices are what we have the biggest grid we have the biggest electric grid in the country 85 gwatt grid a third of our grid is alternative power today wind and solar produce a third of Texas's power but every day at 700 p.m. we have a catastrophic failure over a third of our grid the wind stops blowing and the sun goes down to transition to all alternative power I don't think those people actually understand the construct of the market it's going to take decades it's going to take 50 years there's a huge reversal by the B including hitting the spr right to to keep prices down where where is the admission that that's the that that's where we really are and that the green New Deal was one of the silliest things we've ever heard all right Jay thank you Kyle thank you te will be next coming up next on squawk pod you just like scary stuff huh I love scary stuff I do too but why what wrong with us it's horror filmmaker Jason Blum the producer behind get out and Paranormal Activity is back with another movie to scare us but it's still fun if you put fun and jokes in a horror movie the movie is actually scarier because it's you can't keep someone on their edge of their seat for 90 minutes we'll be right back welcome back to squawk poot spook season is upon us which means horror films are on the brain and in theaters one comes out this Friday and it's from the same team that brought you get out Paranormal Activity Halloween the new ones and Five Nights at Freddy's here's Becky with more blumhouse pictures latest release speak no evil is coming to theaters this week the film is expected to follow the Studio's tradition of turning low-budget horror movies into major box office successes joining us right now is Jason Blum he is blumhouse Productions founder and CEO we should mention many of Blum House's movies are owned and distributed by Universal Studios which like CNBC is a unit of Comcast but uh Jason is a friend of the show has been around for a while and coming in and talking to us about this stuff and Jason I have so many things I want to talk to you about what's happening in the content business right now but why don't we start with the film that's out because this like all of your films um scares me to death even when when I'm just looking at the trailers at this point the the run the you know the little passage of the word run when the kids are kind of passing that over and James McAvoy like seeing what's happening here what's this film about what what what really jumped at it you and why'd you make it uh yeah this is our second film with James McAvoy and uh and it was it's a remake of an of a Danish film and what I was drawn to about the movie what the movie is really about is that currently and you know for the last few years I think we especially parents have a tendency to overp we're too polite we're scared to kind of say how we really feel and this is about a family that gets in a situation where they're overp pleasing to the point of actually putting their child in danger and I thought that theme resonated with me um there's this herd mentality in my uh in my kids schools so uh so that's what first called me about the like these stupid yes days where you're not allowed to say no to anything your kids Act exact and everyone scared of the scho they're scared to you know everyone's scared of everything and uh that annoys me so this movie's about that this is about standing up for what you believe in good and standing up to your kids and standing up to your kids told me to watch split that's what you're talking about right split was our other James maoy film yeah did you like that one I I loved it yeah night was that was night's movie yeah we did three movies with night we did the visit split so what is it with you I mean you uh you just like scary stuff huh I love scary stuff I do too but why what's wrong with us um um you know I when I was when I was she's getting list getting getting the list let's see you know I liked all different kinds of movies when I was when I was younger in in the beginning of my career but what I found with scary movies is it was I loved independent movies that could be distributed by a studio and really horror movies are the only genre that you can make low-budget independent movies and have a studio release them so I was really attracted to that part of scary movies and now we've been kind of building what I'm building is uh is a company that you know what I want Blum House to be is like what Disney is to family I want blumhouse to be to to scary so we have we have a big new year next year we have 10 movies coming out next year which is more almost twice as much as we've ever had before we have five shows we have three video games and we have a handful of Live Events so I'm trying to scare people in all different media oh my gosh when's the theme park coming the theme Park's coming soon we have uh we're a part of Halloween Horror Nights now uh which is oh I was joking no we know it's true we have we're a big Halloween Horror Nights happens in Los Angeles and Orlando and there are multiple U mazes and kind of experience based on movies and we have five movies uh with mazes in Orlando and Los Angeles I mean true terar can can you can go too far I think maybe what's that true tear I think you could almost go too far I don't think you do typically what's CR what do you mean tear things that happen on on in this world I think you could go too far I think of a movie like almost like hostile or or you would not do that no we we don't we don't we don't do the the most violent movie we did was well The Purge and Halloween were like that but it still wasn't as even just violence but it can be I mean it can almost be too depraved can it yeah yes and I don't see you doing it we we don't we don't do that some people do though we do more Supernatural chainsaw masacre the original is that too depraved or did you like it that's that that that I I I didn't love that movie I don't think we do a chainsaw massacre B Five Nights at Freddy's Megan I like horror movies that are fun those are two movies did that's what that was my point we did last year I think I think I think it's if you put fun and jokes in a horror movie the movie is actually scarier because it's you can't keep someone on their edge of their seat for 90 minutes you have to get them to relax so we put jokes and we put fun stuff in and then you scare them and you're scared because you're not expecting it who's your demographic cuz I watched a lot more scary movies when I was a teenager than yeah our demographic is younger but surprisingly more young women than men really we're 55% women 45% men so young women take their boyfriends to horror movies isn't that funny yeah then we can cuddle and you can cuddle exactly and hold hands let me ask you about the horror movie that's playing out in the content business right now I hear from so many people that it has gotten so much harder they can't get projects greenlighted um there's a cut back in spin across the board and that's because streaming that was the Wall Street darling that provided all this money has has gone away and and and investors are looking for profits now um do you see that in your genre do you see it outside how how was it playing out and is it way worse than it was before the streaming bubble took off um uh uh the the I think overall we've always operated our business with a normal p&l all the way through stream we don't we you know we're not really we we Supply streaming a little bit but our primary business is a theatrical business so for us I think it's normalized the business and horror is one small bright spot in Theatrical last year horror did almost a billion dollars um uh and this year box office is down this year as compared to last year but that's really specifically because of the strike and covid and we had those two things that knocked theatrical to the ground but you even see by the end of this by by August we were down kind of 15 to 18% in June and now we're down like 12% so we may finish the year pretty close to last year and I think next year it'll come up but um so that's where theatrical is I mean it's it's definitely down but it's coming up and it's recovering from those two things I think the the the rewarding of content companies for subscribers and not profit got the whole business out of whack and there's this kind of Correction going on I think ultimately the correction will what will will achieve is a few less TV shows and maybe a few less movies but they will be better I think people are now adopting uh my philosophy in our business which we've always had is you don't make money unless the thing you made made money doesn't seem terribly complicated but that has not happened for a long time and that's coming into Vogue again now you have gone at this you said you focus on the p&l and there's you've got a few rules that you really follow very closely to make sure you don't go over budget what are they well the biggest we not too many special effects not too many locations not too many speaking Parts but the biggest Rule and the most expensive thing about movies is how much you pay the above the line the writer the director the actor the producer and include that includes us we never take fees on our movies we only make money if the movies make money and everyone else follows suit the director the writer the other producers the actors are all paid the minimum they're we're allowed to pay and then if it works everyone does well and if it doesn't work you go on and you're not hurt too badly and I've been I've been screaming from the rooftops that if your actors and your create and the Creative Group that's making the movie is actually invested in the movie the movies will be better and the shows will be better and I think that's going to happen Jason thank you for coming by again and I think Joe and I are both looking forward to seeing this next movie too love them all speak no evil well thank you thank you for having me sounds scary speak no evil speak no evil on Friday that's the the opening speak no evil yeah opens this Friday yeah exactly EXA thank you guys thanks thanks for having me that's squawk pod for today thanks for listening squawkbox is hosted by Joe kernin Becky quick and Andrew Ross sorin tune in weekday mornings on CNBC at 6 Eastern get the best of our show right into your ears when you follow pod wherever you get your podcasts we'll meet you right back here tomorrow and we are clear thanks guys [Music]