Baby Formula, A Tax Hike, & The Late Show 2/18/26

Summary

Squawk Pod Episode Summary – February 18, 2026

Episode Title: Baby Formula, A Tax Hike, & The Late Show
Podcast: Squawk Pod (CNBC)
Anchors: Joe Kernan, Andrew Ross Sorkin (Becky Quick off)
Main Guests: Dr. Scott Gottlieb (Former FDA Commissioner), Stephen Fulop (President & CEO, Partnership for NYC)

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Overview

This jam-packed episode of the Squawk Pod curates a lively set of financial news and policy debates from that morning’s "Squawk Box." The crew covers topics ranging from New York City’s proposed property tax hike (and the feasibility of a city wealth tax), the state of the baby formula industry and FDA reforms, and an inside look at the regulatory and investment challenges facing the biotech and pharmaceutical sectors. Rounding it out is an animated discussion on Stephen Colbert’s late-night controversy with CBS over an interview with a political candidate.

The episode is rich with on-air chemistry, frank debate, and expert commentary, especially from Dr. Scott Gottlieb on FDA matters and Stephen Fulop on NY tax policy.

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Key Topics & Discussion Points

1. Amazon’s Market Rebound & the AI Disruption [02:46–05:02]

• Amazon: Joe Kernan highlights a recent +1% gain for Amazon after a 9-day losing slump, erasing $450 billion in market cap due to heavy capex projections linked to AI integration (Amazon’s plans: $200B vs. $40B consensus).
• AI’s Impact:
  • Both anchors express awe and concern over how AI could disrupt entire industries, including travel (i.e., “Will there be any travel agents left?”).
  • Sorkin: "The world will be totally different five years from now." [04:58]
  • Joe Kernan: "It’s like trying to figure out the weather...five years from now the world could be totally different." [04:48]
  • Ongoing discussion about the pressure on management to successfully integrate AI and survive rapid technological change.

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2. Streaming Wars: Netflix, Paramount, Warner Brothers, and Government Oversight [06:42–13:25]

• Ted Sarandos’ Interview:
  • Netflix co-CEO emphasizes shareholders deserve clarity as Netflix makes a push to acquire Warner Brothers, competing with a Paramount-Skydance bid.
  • He claims, "Peace Guy does not have a faster regulatory path. I don’t know why the Ellisons would insinuate they have some inside track into the Department of Justice, but I can assure you they don’t." [07:18]
• Debate on Motives:
  • Joe and Andrew debate whether these deals are prudent for Netflix amid a volatile stock price and whether government connections matter.
  • Joe: "Are you rooting for Paramount? ...Why do they want it?" [08:33]
  • Andrew: "Do you go down that path and then find yourself...12 months from now in a situation where the Justice Department is seeking to block the deal?" [09:21]
• Stock Analysis: Both discuss Netflix’s stock swings, questioning whether chasing Warner Brothers is strategic or risky.
• What’s at Stake:
  • Content ownership (e.g., classic movies like Casablanca), cost of marketing, and whether Netflix’s global audience justifies the acquisition.
  • Joe: "I wish they’d take the 70 billion and spend it on..." [13:08]
• Movie Theater Experience: Light banter on AMC’s viability, declining attendance, and a callout to the Taylor Swift movie for its impact on the chain’s brief comeback.

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3. Stephen Colbert vs. CBS: The “Equal Time” Political Interview Fight [14:26–20:51]

• Background: CBS declined to air Colbert’s interview with Texas Democratic Rep. James Talarico over concerns about violating FCC equal time rules; it was posted to YouTube instead (4M+ views).
• Anchor Debate:
  • Sorkin is baffled by sudden enforcement of a rarely-used rule: "If the TV gods want to air something, I think they should be allowed to air something." [17:04]
  • Kernan critiqued Colbert’s pivot to political interviews over comedy: "Stephen Colbert is not a political kingmaker. He’s supposed to amuse me with his lame celebrity guests and comedians." [16:18]
• Media & Free Speech:
  • Spirited exchange over media bias, network fears of political backlash, and whether the FCC is overreaching.
  • Joe: "I’m glad...someone is saying, look, you need to change your ways. You have been so one-sided..." [17:53]

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4. NYC’s Budget Fight: Wealth Tax vs. Property Tax Hike [21:00–31:01; Main Segment at 22:58–31:01]

[22:58–31:01] Stephen Fulop (Partnership for NYC) Interview:

Key Points:

• Mayor Mamdani’s Proposal: Threat to hike property taxes if state doesn’t enact a wealth tax.
• Business Perspective:
  • Fulop: "If you do what he’s proposing to do, taxes in New York City would be roughly 22% on the corporate side relative to New Jersey...New Jersey, a mile away, 11%." [26:12]
  • Claims raising either tax undermines city competitiveness and worries about a business exodus.
  • "You hear across the board that [businesses] are looking to grow elsewhere." [27:14]
  • Cites JP Morgan now having more financial services employees in Texas than NYC.
• Alternative Solutions:
  • Fulop promotes looking at expensive city entitlements and scrutinizing school budgets (school enrollment way down, but budget up) rather than immediately opting for tax hikes.
  • Calls for a "constructive conversation" on spending and efficiency.
• Governor Hochul’s Role:
  • Fulop praises Gov. Hochul for not caving to tax-the-rich pressure: "She’s shown courage to push back on the left in this climate, which is a difficult thing to do." [29:22]
• NYC vs. Other States:
  • Discussion about the risk of becoming uncompetitive like California or Washington if taxes keep rising.

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5. Baby Formula Safety, FDA Reform, and Biotech Regulatory Turmoil [31:07–42:33]

FDA & Baby Formula [33:04–35:29]

• Operation Stork Speed:
  • Dr. Scott Gottlieb explains new strictures following reports of heavy metals in some U.S. baby formulas.
  • U.S. uses drug-like manufacturing standards for baby formula (vs. looser EU rules) to minimize outbreaks, but this strictness also limits reformulation and innovation:
    "Europe tolerates a much higher level of outbreaks in baby formula than we do in the US." [34:26]
  • Adds, "Most baby formula manufacturers really don’t reformulate these products. They stick with old ingredients and old recipes and that limits the variety." [35:18]

The ‘GRAS’ Loophole [35:29–37:29]

• General Regarded As Safe (GRAS) loophole lets some manufacturers self-certify food ingredients as safe without comprehensive FDA review.
• Gottlieb: "We looked at closing this...when I was there...we tried to do it through guidance and proposed a rule...we couldn’t do it without new authority from Congress." [35:45–36:22]
• Predicts only Congressional action can fully tighten this loophole.

Regulatory Unpredictability & Investment Pullback [37:29–41:58]

• The Wall Street Journal’s editorial accuses FDA vaccine division chief Vinay Prasad of excessive intervention:
  "It’s hard to recall a regulator who has done as much damage to medical innovation in as little time..." (WSJ quote paraphrased by Sorkin at [37:29])
• Gottlieb’s Critique:
  • Describes Prasad as unilaterally blocking vaccine and cell/gene therapy approvals, overriding staff and making guidance unpredictable.
  • "You now have many companies coming out saying that they had agreed to certain requirements...and then once those trials were completed...Vinay made a unilateral decision to not approve the products." [38:04]
  • Warns this raises the cost (and risk) of investing in vaccines/biologics, drying up capital and innovation:
    "Investment in vaccines is certainly being pulled back...because of the unpredictability of the agency." [39:30]
• Strategic Risks:
  • U.S. vaccine R&D is losing ground to China, with China now developing a third of global candidate vaccines:
    "...Almost half of all mRNA vaccines...are in development in China. ...So we’re hitting the brakes...at the same time that China is hitting the gas pedal..." [41:10]
• Gottlieb does praise the FDA’s attempts to close the GRAS loophole and improve baby formula regulation—if Congress helps.

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Notable Quotes & Memorable Moments

• On AI & the Future:
  • Andrew Ross Sorkin: “The world will be totally different five years from now.” [04:58]
  • Joe Kernan: “It’s daunting. You don’t know a year from now...but five years from now? The world could be totally different.” [04:48]
• On NYC’s Tax Proposals:
  • Stephen Fulop: “You reach a tripwire at some point, right...If it’s 100% higher than a mile away, people will make this decision.” [26:22]
  • “JP Morgan has more employees in Texas than they do in New York City for the first time.” [27:29]
• On the Late Show’s Political Pivot:
  • Joe Kernan: “Stephen Colbert is not a political kingmaker...He’s someone that’s supposed to amuse me with his lame celebrity guests and comedians.” [16:18]
  • Andrew Ross Sorkin: “If the TV gods want to air something, I think they should be allowed to air something.” [17:04]
• On FDA Turbulence & Biotech Innovation:
  • Dr. Scott Gottlieb: “Investment in vaccines is certainly being pulled back...because it looks like it’s harder space to invest in because of the unpredictability of the agency.” [39:30]
  • “Almost half of all mRNA vaccines...are in development in China. ...We’re hitting the brakes...China is hitting the gas pedal...” [41:10]
• On Economic Growth & Politics:
  • Andrew Ross Sorkin: “I’ll give this president credit for the things that have that have happened. But I think there’s other things around free speech and the like.” [19:50]

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Timestamps – Important Segments

| Time | Topic/Segment | |-----------|-----------------------------------------------------| | 02:46 | Amazon rebounds from 9-day slide; AI’s threat | | 06:42 | Streaming wars: Netflix/Paramount/Warner Brothers | | 14:26 | Stephen Colbert–CBS–FCC political interview fight | | 22:58 | NYC taxes & budget threats – Interview w/ Fulop | | 31:07 | Baby formula safety/FDA reforms (Dr. Gottlieb) | | 37:29 | FDA vaccine division furor; investment risk | | 41:10 | China’s vaccine lead; implications for US strategy |

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Tone & Style

• Energetic with quick pivots between policy, markets, and media stories.
• Debate-Oriented: Anchors don’t shy from disagreement—in fact, much of the value is in these back-and-forths.
• Expert-Driven: Segments with Stephen Fulop and Dr. Gottlieb anchor the episode with credible, in-depth analysis.
• Pop Culture References: Light moments revolve around moviegoing, Taylor Swift, and the late-night comedy scene.

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In Summary

The February 18, 2026, Squawk Pod is a kinetic survey of economic disruption, urban policy, regulatory turbulence, media politics, and business leadership in a rapidly changing world. The episode’s high points include sober warnings about tax policy from NYC business leaders, a technical but urgent rundown of regulatory shakeups at the FDA and their impact on American innovation, and spirited on-air jousting about the role of media and political satire as late-night TV confronts an election year.

For listeners, it’s an essential window into the day’s market-moving headlines, with trademark Squawk debate and insider analysis that leaves you both informed and entertained.

Transcript

[Andrew Ross Sorkin]

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[Stephen Phillip]

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[Andrew Ross Sorkin]

Try our most powerful trading platform [e-mail] TraderPlus investing involves risk, including risk of loss. Fidelity Brokerage Services, LLC Member NYSE SIPC not every sale happens at the register.

[Cameron Costa]

Before AT&T business Wireless checking out customers.

[Andrew Ross Sorkin]

On our mobile POS systems took too long. Basically a staring contest where everyone loses. It's crazy what people say during an awkward silence. Now transactions are done before the silence takes hold. That means I can focus on the task at hand and make an extra sale or two. Sometimes I do miss the bonding time. Sometimes AT&T business Wireless connecting changes everything. Bring in show music, please.

[Cameron Costa]

This is Squawkpod and I'm CNBC producer Cameron Costa. On today's episode, New York City Mayor Zoran Mamdani is threatening a property tax hike in his budget proposal. That is if Governor Hochul doesn't pass a wealth tax partnership for nyc. Steven Fulop does the tax math.

[Stephen Phillip]

If you do what he's proposing to do, taxes in New York City would be roughly 22% on the corporate side relative to New Jersey. New Jersey a mile away.

[Cameron Costa]

And the FDA's Operation Stork Speed, a review of baby formula supply and safety. Former FDA Commissioner Dr. Scott Gottlieb says it's a good idea, but we shouldn't be comparing America's system to Europe's.

[Dr. Scott Gottlieb]

Europe tolerates a much higher level of outbreaks in baby formula than we do in the US So we require drug like manufacturing standards and that limits the ability of manufacturers to reformulate these baby formulas.

[Cameron Costa]

Plus, Amazon has snapped a nine day losing streak. And Stephen Colbert's brewing controversy with his own network, cbs. It's all over. An interview with a Democratic Texas state representative.

[Andrew Ross Sorkin]

If the TV gods want to air something, I think they should be allowed to air something.

[Cameron Costa]

A lively conversation awaits you.

[Joe Kernan]

I'm glad that finally someone is saying, look, you need to change your ways.

[Cameron Costa]

It's Wednesday, February 18th, and Squawkpod begins right now.

[Andrew Ross Sorkin]

Stand Andrew by in 3, 2, 1. Q. Andrew, good morning. Welcome to Squawk Box right here on CNBC. We're live the NASDAQ markets at Times Square. I'm Andrew Sorkin along with Joe Kernan and so say Becky Quick is off.

[Joe Kernan]

So it's just the boys just been spamming the globe.

[Andrew Ross Sorkin]

The globe, exactly.

[Joe Kernan]

Now we're both in Times Square.

[Andrew Ross Sorkin]

Here we are.

[Joe Kernan]

And take a look at the shares of Amazon, the tech giant coming off a market gain of more than 1%, by the way. That was a rebound. It snapped a nine day slide that shaved about $450 billion off of Amazon's market cap. The selling frenzy tied to Amazon's fourth quarter report from earlier this month where the company outlined 2026 capex plans of $200 billion. That was more than the four, four times more than the $40 billion estimate that Wall street analysts had forecast. It's all about AI, AI, AI, AI. It's going to help some, hurt others. If you know how to integrate it, it might help you or your company might go to zero. I'm wondering, do you need someone that knows how to do this? I think maybe management is going to be more important than ever in trying to figure out how to make sure you're not just put out of business by AI and it becomes something additive or that you can going to talk to the strategist, but this is sort of her notion. You need to be able to integrate the positive things about a because it's going to be very disruptive. Are there going to be anybody? Any travel agents left? Will there be any travel agents left?

[Andrew Ross Sorkin]

No, but we could all use a travel agent. I had some travel problems. So you want to be able to call.

[Joe Kernan]

Was it a real.

[Andrew Ross Sorkin]

You want to be able to call somebody.

[Joe Kernan]

But will there be an AI agent that can, you can talk to and.

[Andrew Ross Sorkin]

Do the same thing That's a human or no? Yes. Well, 90% of the use cases it'll be an AI and the travel agencies.

[Joe Kernan]

That are around right now will just have no employees then, right? Yeah.

[Andrew Ross Sorkin]

What do they not. No employees, but maybe a lot less. Yes, a lot less.

[Joe Kernan]

I mean it's a daunting.

[Andrew Ross Sorkin]

Oh, there's going to be. For everything.

[Joe Kernan]

For everything. And you know, we saw with software stocks and people, all of a sudden it like dawns on them all of a sudden.

[Andrew Ross Sorkin]

Yeah, because we can just code our own thing. It's all happening. It's all happening and it's happening quickly.

[Joe Kernan]

And what about five years from now? You have no idea. You don't know one year from now it's like trying to figure out the weather for next. You don't know a year from now how it's going to be, but five years from now the world could be totally different.

[Andrew Ross Sorkin]

Totally different. The world will be totally different five years from now.

[Joe Kernan]

In a good way.

[Andrew Ross Sorkin]

Depends. I think it could be very interesting, but I don't know what we're all going to do.

[Joe Kernan]

Oil prices are in focus. Following some talks between the US and Iran over that country's nuclear program and obviously other things. Iran's foreign minister said that the two countries reached an understanding on what he called guiding principles, but cautioned that that didn't mean that a deal was imminent. In an interview last night, Vice President J.D. vance said that the parties agreed to meet again, but he noted Iran was not acknowledging some key US Demands. He also said military action remains an option. Iran partially closed the Strait of Hormuz, the first time that that has happened, just partially as it held talks with the US Yesterday was conducting some Navy maneuvers that cited security precautions for that move and a lot of scuttle. But I was interested in the op ed pages of the Journal and their take that don't make the same mistake that if you get some nuclear concessions that you call off everything else for Iran. The people in Iran have stepped up and that was something that happened during the Obama administration. They thought, okay, we're getting all these other concessions. Meanwhile, Iran knows that if they, you know, sort of at least pretend to be conceding on some nuclear demands that they'll stay in power. Maybe I'm not saying any regime change, but you should get more than just, you know, just an agreement that looks good on nuclear because we'll be here again in a year, two years, five years.

[Andrew Ross Sorkin]

Julia Boorstin had a great sit down interview yesterday with Netflix's co CEO Ted Sarandos. He's now saying his company is giving Paramount Skydance a week to negotiate with Warner Brothers Discovery over a possible deal so Warner shareholders understand that Netflix is making the better bids. Randos joined Closing Bell overtime yesterday and making a ton of noise, flooding the zone with confusion for shareholders. So they don't really understand the deal including floating all these hypothetical offers into, you know, and talking directly to the shareholders and bypassing the Warner Brothers Discovery board. So we've given the opportunity to get those shareholders exactly what they deserve, which is complete clarity and certainty about what the value of these deals are. Now one of the biggest questions in the fight over Warner Brothers has been whether the government would bless the Netflix or Paramount acquisition. Serrano said there's no reason to believe that Paramount has any edge over the company. Take a look at what he said. Peace Guy does not have a faster regulatory path. I don't know why the Ellisons would insinuate they have some inside track into the Department of Justice, but I can assure you they don't. Warner's seven day negotiating period with Paramount ends next Monday. So the question is, can they convince the board otherwise? And what do you think, Joe Kernan, about the idea of. I think the Justice Department and White House.

[Joe Kernan]

I don't know what Netflix.

[Andrew Ross Sorkin]

I mean, that's the whole. But that. That is the whole story, really.

[Joe Kernan]

The whole story is it's a $70 stock that was $140 about six months ago.

[Andrew Ross Sorkin]

I appreciate that. No, but I'm saying.

[Joe Kernan]

So why do they want it? In terms of what is the market check telling Netflix about whether they need these assets, or is there something else that. That hurt that stock?

[Andrew Ross Sorkin]

I think it's a combination of be.

[Joe Kernan]

Careful what you wish for and, you.

[Andrew Ross Sorkin]

Know, are you rooting for Paramount? Is that what you're doing?

[Joe Kernan]

Not saying that. I'm just saying that right at the very beginning, people said, what does this do for Netflix? Is it really important five years from now? Because it doesn't seem important right now. I think that the.

[Andrew Ross Sorkin]

I think it's important for the.

[Joe Kernan]

I'm assuming that because of the president's friendship with the Ellisons, that they probably would have an inside track. I don't know how far they take it. He has said that he's not going to get involved. I don't know if I. You know, he gets involved in most things in some way or another. So I assume. But Sarandos, is he naive to say that they don't have the inside track? I don't know.

[Andrew Ross Sorkin]

But the fundamental question is, if you are the board of Warner Brothers, do you go down the track of taking this Netflix deal, which you think is the better deal for the company, which is an interesting thing to think about. That's what their argument has been thus.

[Joe Kernan]

Far, because they can come up with the money, basically, and there's no risk, because it's.

[Andrew Ross Sorkin]

Because they're. They're arguing that it's a guaranteed deal and it's less debt, and therefore it's in the better hand. That it's in better hands. That's the argument that they're making. The question is you go down that path and then find yourself 12 months from now in a situation where the Justice Department is seeking to block the deal. And that is what you just don't know. Now, the flip side is, do you go down the path of taking the Paramount deal and also run into a similar situation? Do you think that's possible? There's an argument, by the way, there's an antitrust argument on both sides of the aisle. And then you land in a place, and now you're suing Paramount to get the breakup fee. And do you get the Fee and all of those things. And where. And where are you a year and a half from now? That's a big thing because part of it is what happens to this company a year and a half from now.

[Joe Kernan]

Netflix had run up and do you remember? I remember when it got under. I think there were some splits since then, but it got under 200. There were some splits, and it went to 800 and it did run up. Okay, so I'm looking at the chart. So in 2023, it was down at $30 and $40. But June was not that long ago. You remember. Let's think of what we were doing in June. What happened to the fortunes of Netflix between June and now? To explain the stock going down basically 50% if it's not the Warner Brothers acquisition. Are other things, by the way, is it subscription? Is that slowed? Have they hit a wall on growth? Is that why they need.

[Andrew Ross Sorkin]

I think there is a growth question.

[Joe Kernan]

So then maybe they do need it. But you could say the market check on whether people really want them to win.

[Andrew Ross Sorkin]

Not sure that that's. I think there's been some worry that they've been overpaying, but I don't think that.

[Joe Kernan]

I'm not saying they're overpaying, but.

[Andrew Ross Sorkin]

But no, but that's.

[Joe Kernan]

They got. There's a lot of issues at Warner Brothers and so they got issues at Netflix. It's like for the amount of incremental additive gains in revenue or whatever. Is it worth it? Is it worth it? How much of Netflix would it.

[Andrew Ross Sorkin]

You're suggesting. Here's the suggestion you're making. I will take the other side of. But I believe that what you're suggesting is that somehow if Netflix walked away from this deal tomorrow.

[Joe Kernan]

Right.

[Andrew Ross Sorkin]

That somehow the stock would be double.

[Joe Kernan]

I'm not sure what it would do. I'm not sure if that's.

[Andrew Ross Sorkin]

I don't.

[Joe Kernan]

I'm not sure if that's what accounts for the. I just say the market check right now is that it hasn't been well received, that they're going after Warner Brothers and they haven't convinced people that it's, you know, the most important thing.

[Andrew Ross Sorkin]

Look, because I don't think it ultimately is the most important thing. I think this is a nice to have.

[Joe Kernan]

It's $80 billion.

[Andrew Ross Sorkin]

I understand that that's like the biggest.

[Joe Kernan]

Thing we've had in a while, isn't it?

[Andrew Ross Sorkin]

I think it's more of a nice to have for Netflix than it is for Panama.

[Joe Kernan]

Not only that, I mean, what was the story when Warner brothers was worth $7 a share. What's it worth? Worth 30?

[Andrew Ross Sorkin]

Well, that's. That's a. That's a great question of what even worth.

[Joe Kernan]

So you're not sure?

[Andrew Ross Sorkin]

I don't know, but nobody know the answer.

[Joe Kernan]

But I don't. Netflix has a great business model. Do they need. Do they need this? And the headaches that come.

[Andrew Ross Sorkin]

The question is, if you take all of the Warner Brothers films and. And shows and everything else that are not on the platform, think Casablanca, so many. And you take it off the platform, what does that. What does that do? There's also one piece that I think is forgotten, which is Netflix has such a broad audience globally. Think about the marketing spend for films right now. Think about the marketing spend is outrageous. Right? If you.

[Joe Kernan]

Netflix is not spending enough. I don't know if you've tried to watch any of the dramas lately.

[Andrew Ross Sorkin]

If you know. But if you could.

[Joe Kernan]

I wish I'd take the 70 billion and spend it on.

[Andrew Ross Sorkin]

You could simply market some of these films and on. On the actual Netflix platform, which is basically free to you. It becomes a huge, you know, huge, huge cost savings. There's lots of interesting things that I think could happen.

[Joe Kernan]

We'll talk about this yesterday. I like theater. Popcorn.

[Dr. Scott Gottlieb]

Okay.

[Joe Kernan]

And I can't get that at home.

[Andrew Ross Sorkin]

Okay.

[Joe Kernan]

We had Citron on. He's really bullish on Am not bullish, but thinks AMC is totally undervalued. I mentioned my.

[Andrew Ross Sorkin]

I was just at an amc.

[Joe Kernan]

Isn't it great?

[Andrew Ross Sorkin]

And let me just say I saw a movie called Crime 101. Chris Hemsworth. It was actually a good movie, fun movie. When I tell you your buddy Mark Ruffalo's in there.

[Joe Kernan]

Your soulmate.

[Andrew Ross Sorkin]

When. When. When I tell you that maybe 12 people were in the movie.

[Joe Kernan]

No, I don't.

[Andrew Ross Sorkin]

And nobody was at this movie theater for all the films that were there. And I'm.

[Joe Kernan]

You got to have a good open.

[Andrew Ross Sorkin]

How are these people. How is this whole place even in business?

[Joe Kernan]

But what happens when you get a big opening and everybody's there and it's exciting? You don't respect.

[Andrew Ross Sorkin]

We don't have. They don't have that week after week.

[Joe Kernan]

Right.

[Stephen Phillip]

Well, that's why it's.

[Andrew Ross Sorkin]

That's why it doesn't work.

[Joe Kernan]

Why it's under $2. No, it might work, but it's under $2 at this point.

[Andrew Ross Sorkin]

I'm just saying. I don't.

[Joe Kernan]

You know what gave him a bridge to where it might work was when I set up that Taylor Swift movie.

[Andrew Ross Sorkin]

I know you're responsible for Taylor Swift.

[Joe Kernan]

Not all of her success, just some. Just that. Just the movie.

[Andrew Ross Sorkin]

Late show host Stephen Colbert fighting back against a denial now by CBS that had blocked the broadcast of his interview with Democratic Texas State Representative James Talarico. And for the lawyers to release this.

[Stephen Phillip]

Without even talking to me is really surprising.

[Joe Kernan]

I don't even know what to do with this crap. Hold on.

[Andrew Ross Sorkin]

Colbert's comments came hours after CBS issued a statement on the growing controversy. CBS said it had not barred Colbert's interview with Telo from being aired. The network said it gave Colbert's show legal guidance. The interview could trigger the FCC's equal time rule for other candidates. Now Talarico is running in the Democratic primary for a Texas Senate seat. That interview ended up being posted on Late Show's YouTube page instead of being aired on the Linear channel and was viewed more than 4 million times in the process. So look, there's always been this, this the rule about, you know, equal time. But the truth is it has never been enforced. And so here we are in this moment where all of a sudden there's this effort to enforce it. I completely understand where you don't think.

[Joe Kernan]

The bigger picture is. Johnny Carson would never have some Senate primary person because it was late night tv. It was supposed to be funny. So the whole overriding picture that you're not seeing is this guy is. Doesn't do a late night TV show, in my view. When is he gone? May. That can't come soon enough. Did you see what Robert.

[Andrew Ross Sorkin]

I dislike him so much.

[Joe Kernan]

Oh, no. Okay.

[Andrew Ross Sorkin]

Robert Duvall.

[Joe Kernan]

Can I finish this? When Robert Duvall died.

[Andrew Ross Sorkin]

Yes.

[Joe Kernan]

He just died. They went back to one of his interviews with David Letterman. One of the. It was one of the final David Letterman interviews. He said the guy replacing you. Why is he replacing you? He's not funny. And that's been my view the entire time. I don't need political. He's not a kingmaker. Stephen Colbert is not a political kingmaker. He's someone that's supposed to amuse me with his lame celebrity guests and comedians.

[Andrew Ross Sorkin]

You were a free market guy.

[Joe Kernan]

I'm a joke, Andrew. Okay. I thought you were free market. Is the Fed still independent? That was your big concern. Is Kevin.

[Andrew Ross Sorkin]

The point is that if the marketplace wants to or not. By the way, the marketplace is. May not want.

[Joe Kernan]

So you're contending that the FCC is blocking this guy's.

[Andrew Ross Sorkin]

I don't know.

[Joe Kernan]

I don't even know what you're saying. Are your First Amendment rights and. Are you scared?

[Andrew Ross Sorkin]

Again, all I'm Suggesting to you, is that it so far? If the TV gods want to air something, I think they should be allowed to air something.

[Dr. Scott Gottlieb]

That's the point.

[Joe Kernan]

As bad as it is for ratings and entertainment, that's fine. And they can.

[Andrew Ross Sorkin]

Well, apparently they can't.

[Joe Kernan]

Well, I don't.

[Andrew Ross Sorkin]

Apparently they can't. All right, so the point is if you, if you believe not just in the, it's not about the First Amendment. If you just, you don't want to feel coerced into having certain.

[Joe Kernan]

You don't know that that's the case. You don't know that that's the case. So why would you know that's a case of cc.

[Andrew Ross Sorkin]

Why would CB out loud.

[Joe Kernan]

Why would they not want this guy on? Who cares?

[Andrew Ross Sorkin]

No. Oh, because they believe that Trump doesn't.

[Joe Kernan]

Want him on or something.

[Andrew Ross Sorkin]

That the FCC and the, and the Trump administration is going to somehow try to do something to their network. That's exactly what this is about.

[Joe Kernan]

This goes all the way back. This goes back to the law firms and to the Harvard and to cbs. I think there was a problem at all these places. I'm glad that finally someone is saying, look, you need to change your ways. You have been so one sided all along. I'm glad Bari Weiss is there. I'm glad Harvard has to address anti Semitism.

[Stephen Phillip]

I'm glad that all these.

[Andrew Ross Sorkin]

Now you're.

[Joe Kernan]

No, I'm not. No, I'm not. These are all the things that you think is overreach from Trump?

[Andrew Ross Sorkin]

Well, the question is, should businesses be able to behave without.

[Joe Kernan]

Sit up at night thinking that that's, that they can't.

[Andrew Ross Sorkin]

I think that there's a lot of CEOs who think they can't, they think they can't come out and say what they actually think. You don't.

[Joe Kernan]

I think a lot of CEOs like what, what's happening. You think they're all afraid to say something?

[Andrew Ross Sorkin]

No, no. I think there's elements of, of, of what's going on that they like, by the way, for the most part. Well, the stock market had its own issues. Dow obviously hasn't had any. No. But some of these, these tech companies have had their issues, but that's a different story. Do I think, I think there's some CEOs who like some of the things economically that are happening and then there's other people who think there's a lot of things they don't like.

[Joe Kernan]

What do you think's going to happen if the market continues to go and GDP really ratchets up from some of the tailwinds, oil prices stay low.

[Andrew Ross Sorkin]

The good politically for this administration.

[Joe Kernan]

It's going to be so hard to find something to worry about at that. I guess you have to go back to that. We're not in a free society. I don't know. Go over to where you go to jail.

[Andrew Ross Sorkin]

Is there nothing you for misgendering? Is there nothing you dislike about what's going on right now? You think everything is just hunky dory.

[Joe Kernan]

I'd have to. I would think about some things. I'm pretty happy with the state of the like there's going to be a sotu. There's going to be a state of the Union.

[Andrew Ross Sorkin]

Yep.

[Joe Kernan]

I think we're. Things are pretty good right now. Yeah. Is there anything you do like that's happening?

[Andrew Ross Sorkin]

Oh, look, I think the economic growth has been fascinating and fabulous. I don't know as you, as you used to say about other administrations, I don't know if that's because of the administration or in spite of the administration as you used to tell me when, when things were going well. You'd say oh yeah, it's going well but it's in spite of the president. I'll give this president credit for the things that have that have happened. But I think there's other things around free speech and speech and the like.

[Joe Kernan]

You know, worry about the Fed independence anymore with war. I like Kevin we spent a lot of time talking about but I think.

[Andrew Ross Sorkin]

Look, I think there's a lot of.

[Joe Kernan]

Big questions that a false alarm. Well, listen, it was Fed independence of false alarm.

[Andrew Ross Sorkin]

Let's see if Lisa Cook's job is still there. Let's see how many people get replaced in the Fed and whether it turns out to look a lot more like the Supreme Court or something else. Right. I mean I think there's a question.

[Joe Kernan]

I'm not losing a lot of sleep over Stephen Colbert and some possible Senate. I wish he'd have someone on like a good comedian and have him on and make me laugh and like a.

[Andrew Ross Sorkin]

Good band like I don't think they're trying to attract your. I don't think they want you to.

[Joe Kernan]

Steven needs to tell me how.

[Andrew Ross Sorkin]

I don't think they want to tell.

[Joe Kernan]

Me how I can be more virtuous. Okay, thanks.

[Andrew Ross Sorkin]

Cheese will be next.

[Cameron Costa]

Coming up on Squawkpod, New York City Mayor Zoran Mamdani has proposed a new budget which includes a threat to hike property taxes if Gov. Kathy Hochul fails to pass a wealth tax partnership for New York City President and CEO Stephen Fulop shares the response from the city's business community.

[Stephen Phillip]

You hear across the board that they are looking to grow elsewhere. That is for sure. Picking up the entire operation is a tough thing to do for people that want to have a presence here.

[Andrew Ross Sorkin]

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[Cameron Costa]

Welcome back to Squawk POD from cnbc. Here's Andrew Ross Sorkin.

[Andrew Ross Sorkin]

New York City Mayor Zoran Mandani is delivering his preliminary budget proposal on Tuesday and threatening to raise property taxes as a last resort if he is unsuccessful in convincing Albany to raise taxes on the wealthy.

[Dr. Scott Gottlieb]

Taxing the rich will put the city back on its firm financial footing. And taxing the rich at the scale.

[Andrew Ross Sorkin]

That we proposed not only does that but also advances the affordability agenda. Joining us right now is partnership for New York City President and CEO Stephen Phillip. Good morning to you.

[Stephen Phillip]

Good morning.

[Andrew Ross Sorkin]

Okay, so do you think that this threat is gonna turn into reality?

[Stephen Phillip]

Well, first of all, we anticipated it. I'll start there. So we were kind of prepared with what we wanted to say and point out. But I would tell you I think it's a political mistake. I think that the governor has showed that she's not going to be bullied. So that was kind of the narrative. People blame the mayor for property taxes regardless of how you frame it. And I think that giving two choices of taxes only kind of frames things in a way that makes us less competitive relative to other states.

[Andrew Ross Sorkin]

So. But I think the real question is assuming he can't get the wealth tax going and he does want to balance the budget, or maybe not. How would you do it?

[Stephen Phillip]

If I was looking to balance the budget, if I was the mayor, if.

[Andrew Ross Sorkin]

You'Re the mayor and you're looking around at the money and you're saying we don't really have the revenue, so all the things we want to do.

[Stephen Phillip]

Yes.

[Andrew Ross Sorkin]

What would you do?

[Stephen Phillip]

I think that there are a lot of options. First of all, New York City has entitlement programs that are unique to New York City on rent relief. Most of entitlement programs at the federal level. New York City has those. They're astronomically expensive, I think.

[Andrew Ross Sorkin]

So you could do the rent relief program, but he also has, you know, he ran on trying to make it more affordable for people to live in the city, but.

[Stephen Phillip]

But taxes and job creation leads to affordability as well. You know, housing growth takes a decade in time. He's on the right track there. But there's a lot of things you could do beyond that. I mean, if you want to have a constructive conversation around schools. I know people don't want to go there, but there was 1.1 million children in the schools. Today's 800,000. That is a fair conversation to have. Why the budget keeps increasing. I think that there are other things you can do. The challenge is that his political base is very difficult to please. And he's trying to navigate both the political base and the practicality of being an executive. And that's not an easy thing to do.

[Dr. Scott Gottlieb]

Right.

[Andrew Ross Sorkin]

What do you think the reaction is thus far to what's happening in California?

[Stephen Phillip]

Yeah.

[Andrew Ross Sorkin]

By the way, I don't know if you saw what's happening in Seattle.

[Stephen Phillip]

Yeah.

[Andrew Ross Sorkin]

State of Washington. I mean, it's pretty wild. Yeah. I think you could see an exodus from. From both of those places.

[Stephen Phillip]

Yeah.

[Andrew Ross Sorkin]

I spoke to the mayor and asked him about what was happening and this idea of whether he thought everyone's going to move to Miami. And he said he doesn't believe that. Not only does he not believe that, the numbers, interestingly, even in the past couple of months, don't seem to be suggesting that business is leaving New York. In fact, it appears the business is coming to New York. And I believe that is giving him meaning. The mayor, you know, a little bit of oomphone a step, if you will.

[Stephen Phillip]

Yeah.

[Dr. Scott Gottlieb]

You can.

[Stephen Phillip]

You can parse the data in a lot of different ways. So he would say there's more millionaires today in New York City. If you look at the. The share of millionaires relative to anywhere else, you would say it's decreased. You can make that argument and could have that all day. The reality is, if you do what he's proposing to do, taxes in New York City would be roughly 22% on the corporate side relative to New Jersey. New Jersey, a mile away, 11%. So you reach a tripwire at some point, right. If it's 100% higher than a mile away, people will make this decision.

[Andrew Ross Sorkin]

The argument that he's made is that actually taxes in New York City on companies is lower and he's trying to match New Jersey. Explain why.

[Stephen Phillip]

So, so he's being a little bit disingenuous in that. Because when you layer on New York City taxes, MTA taxes, and the corporate tax for the state, it's roughly 17% today. So if you mirror what New Jersey has in the corporate tax, you go to 22% here. That's, that's independent analysis, nonpartisan. So, you know, at some point you reach that tripwire and the effective tax rate on the income side, right, is more than 50% for high earners here in New York. So, I mean, effectively the state or the city is your majority partner without doing the majority of the work. So it is a problem ultimately. And you do reach a tripwire at.

[Andrew Ross Sorkin]

Some point, do you think, or are you hearing from anybody in the partnership for the city that they are going to leave the city?

[Stephen Phillip]

So you hear across the board that they are looking to grow elsewhere. That is for sure. Picking up the entire operation is a tough thing to do for people that want to have a presence here.

[Andrew Ross Sorkin]

I was just going to say J.P. morgan just built this gorgeous new building right on Park Avenue.

[Stephen Phillip]

If you look at Texas, JP Morgan has more employees in Texas than they do in New York City. For the first time, Texas has more employees in financial services than New York City for the first time. And what we try to point out is that Texas has a comprehensive strategy on how they're approaching this. New York is just kind of stuck in this kind of.

[Andrew Ross Sorkin]

What kind of reaction are you getting from the mayor on that front?

[Stephen Phillip]

I mean, look, we've had multiple conversations on that. I think we're in a place that, you know, he would say, we agree to disagree. But the reality is that he's still navigating the transition from being a legislator to an executive, I think from an activist mindset to being more of the mayor, so to speak, in a responsible governing role. So I think a transition is going to take some time.

[Joe Kernan]

I like some of the things just looking at some of the comments from your organization. It's not. It's got to be. Have we said anything about other than raising taxes for trying to get. Trying to figure things out?

[Stephen Phillip]

Nothing yet. And I think that our place is going to try to be. To have a constructive conversation in figuring out solutions. He wants to partner with the business community. I couldn't tell you.

[Joe Kernan]

In this Mamdani mayorship, is there any chance that you talk about that rather than just more money coming in?

[Stephen Phillip]

So we've had constructive conversations. The question is really going to be around implementation. And, you know, we're six weeks in, so it's hard to kind of cast dispersions or say unilaterally one way or the other. But. But, you know, we're cautious because I think people are concerned about his actions when he does what he did.

[Andrew Ross Sorkin]

Maybe more importantly in the whole dynamic is actually the governor.

[Stephen Phillip]

Yes.

[Andrew Ross Sorkin]

And just give me your analysis of where you think her head ultimately is in terms of where New York State ultimately goes, because she does have the cards.

[Stephen Phillip]

In the end, the most important player is the governor. We are very supportive of the governor. Let's start there. The governor is not one.

[Andrew Ross Sorkin]

Well, you're supporting the governor because so far she's holding steady with you.

[Stephen Phillip]

That is correct. And I will tell you. But that's the reason why you support somebody in elected office. Right. When you have consistent views. But she's shown courage to push back on the left in this climate, which is a difficult thing to do. And she's not one to be bullied. So when the mayor gets up there yesterday and says, if you don't raise taxes on the wealthiest people, I'm gonna do xyz. She has showed a willingness to push back, so of course we're gonna be supportive of her.

[Joe Kernan]

What did I. There was a number that came out. The shortfall. I don't know. Was that in your interview with him? And then it was wrong because Wall street bonuses took care of 60% of the shortfall. Did it occur to the mayor that maybe Wall street isn't the enemy and it'd be nice to not drive everyone out of here?

[Stephen Phillip]

That's a good point. So he came out with a $12 billion budget deficit. We came out that day and said that that's inaccurate. It's the shrank. It's more like Wall street going to continue to shrink when the April revenue numbers come out because Wall street is punching above its weight. And I'm just going to point out that most other states appreciate the biggest industries that they have. Texas appreciates the oil industry. New York City approaches financial services with skepticism.

[Andrew Ross Sorkin]

But what do you think is going on in California then? What do you think is going on in the state of Washington?

[Stephen Phillip]

I think you have a political party that has showed that they're just angry. The, the far left is angry and wants to be punitive. It's the reason that at rallies they say tax the rich. They don't chant fund childcare, it's tax the rich. They just want somebody to have less money than they do because they view the system as being inequal.

[Joe Kernan]

Right. And they get to go on Colbert every night and talk about it.

[Andrew Ross Sorkin]

It always comes back. It always comes back to the media, Joe. It always comes back one sided.

[Joe Kernan]

Me talk about it.

[Andrew Ross Sorkin]

Stephen, want to thank you for coming in this morning. Appreciate it. Thank you.

[Joe Kernan]

Fighting the good fight.

[Cameron Costa]

Next on Squawk Pod, we're digging into the FDA's attempts to reform baby formula. We're also looking at the impact the agency's leadership is having on investments in health. Former FDA commissioner Dr. Scott Gottlieb.

[Dr. Scott Gottlieb]

Investment in vaccines is certainly being pulled back and I think a lot of people are looking to pull back investments in cell and gene therapy as well right now because it looks like it's harder to start space to invest in because of the unpredictability of the agency.

[Joe Kernan]

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[Andrew Ross Sorkin]

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[Cameron Costa]

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[Andrew Ross Sorkin]

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[Cameron Costa]

This is Squawk Pod.

[Andrew Ross Sorkin]

You're watching squawkbox right here on cnbc. I'm Andrew Ross Sorkin along with Joe Kernan. Becky is off today at the fda.

[Joe Kernan]

Getting ready to review infant formula products and processed foods. Joining us now on this and other health issues, former FDA Commissioner Scott Gottlieb. He's a CNBC contributor, serves on the boards of Aluminum alumina, Pfizer and UnitedHealth. And it's always good to see you. Good morning, Scott.

[Dr. Scott Gottlieb]

Good morning.

[Joe Kernan]

It's the latest. Is this maha more anything that that you agree with in terms of this latest proposal?

[Dr. Scott Gottlieb]

Look, there's a lot to agree with here. This proposal from the Kennedy, Secretary Kennedy Operation Storkspeed, as he called it, came after a March 2025 report from Consumer Reports that had tested about 40 different baby formulas and found high levels of certain inorganic metals in those baby formulas, some of which are trace amounts which probably are going to be in anything we eat, fruits, vegetables, because we can detect things at very low levels, but some that certainly shouldn't have been there and were in higher levels than what the allowable limits are. And so this is a real concern. And so what I think the secretary is going to do is put more stringent requirements on testing of baby formulas to make sure that these heavy metals don't occur in these formulas at levels that could pose a risk to children. There's also a refrain among folks, including the secretary, that we don't see a lot of variety in baby formulas and new ingredients that could potentially be more healthful. I think that's a tougher issue because we have a drug standard in this country when it comes to baby formula in terms of how they're manufactured and how we regulate them, versus Europe, which a lot of people point to, which has more of a food standard and allows more flexibility in how those formulas are derived and how they're made and what ingredients are included. We have that drug standard to help ensure that there aren't contaminants in formulas like, you know, bacteria that could cause outbreaks of foodborne illness. Europe tolerates a much higher level of outbreaks in baby formula than we do in the US So we require drug like manufacturing standards and that limits the ability of manufacturers to reformulate these baby formulas. It's much more difficult to do that in the US you have to run effectively a clinical trial, a growth study that if you reformulate a baby formula in the United States, you have to feed it to children in a clinical study and make sure that their growth is maintained as it would have been under prior formula. So it's a very costly, long process. And so what you see in the US Is most baby formula manufacturers really don't reformulate these products. They stick with old ingredients and old recipes and that limits the variety on the market.

[Joe Kernan]

What are we talking about in terms of. And you mentioned it in your pre interview. Is it called gras? The GRAS loophole? What's GRAS standard G R A S that RFK talks about? It's problematic, isn't it? But he can't fix it.

[Dr. Scott Gottlieb]

It is problematic. I think it's going to be challenging to fix through regulation alone. So this is a separate issue. This is generally regarded as safe. So we have a system in this country where food manufacturers can put new ingredients into the food supply by determining based on their own scientific analysis that they're generally regarded as safe. And this is a voluntary process. They submit a notice to the FDA that they want to include this new ingredient. The FDA has 180 days to act on that notice or the manufacturer can put the ingredient to the food supply. Now most reputable manufacturers will wait for the FDA to respond. They won't want to formulate a food product with a new ingredient where the FDA hasn't opined on it. But there is a so called loophole and this is what the Secretary talks about that allows manufacturers to self certify and just put that ingredient into the food supply. And some small manufacturers and those who aren't in my view, acting as responsibly will do that. They'll go ahead and do that. We looked at closing this so called loophole where people could self certify and put a new ingredient into the food supply when I was there. And we tried to do it through guidance and proposed a rule. At the time we drafted a rule, we determined that ultimately we couldn't do it without new authority from Congress. And so I think in a post Chevron world where even less deference is given to regulatory agencies, it's going to be hard for them to do this through rulemaking alone. I think what they're likely to do when the Secretary talks about this, if you read between the lines, is I think they're likely to make a determination that certain of these ingredients they no longer view as safe. And I think once they do that, once they make a declaration and perhaps put out a list of ingredients that they're concerned about, you'll see food manufacturers voluntarily withdraw those ingredients. One final point on this, there are certain ingredients where you have to actually file a petition with the agency and go through rulemaking. So things like new food colors or contact substances, packaging for food, those actually need a formal rulemaking process.

[Andrew Ross Sorkin]

Scott, I wanted to ask you about this. Since you ran the fda, I'm reading from the Wall Street Journal. This is last week. I haven't seen you since this came out. I want you to tell me what you think of this quote. It's hard. This is the editorial board of the Wall Street Journal. It's hard to recall a regulator who has done as much damage to medical innovation in as little time as Vinay Prasad. In his latest drive by shooting, the leader of the FDA's vaccine division rejected Moderna's MRNA vaccine without even a cursory view. This is arbitrary government at its worst. Thoughts?

[Dr. Scott Gottlieb]

This is pointing to Vinay Prasad, who was appointed by the FDA commissioner to run the center for Biologics. He was also appointed the chief medical officer and the chief scientific officer and he's the head of biostatistics in the center for Biologics and runs the vaccine group. So he is effectively running the agency. He's running many components of the agency right now. And what we know based on the reporting in top tier publications is he's acting unilaterally to make decisions on products in a way that just hasn't been done before without, in my view, the requisite experience. He's overruling staff to block the approval of products. It's not just the Moderna vaccine. We've seen more than a half a dozen cell and gene therapies where he's intervened to hold up the approval of those products and change guidance that companies were previously given. You now have many companies coming out saying that they had agreed to certain requirements in terms of what they needed to do in clinical trials to gain approval with the FDA's career staff. And then once those trials were completed and they spent a billion dollars on clinical trials, Vinay made a unilateral decision to not approve the products because he either didn't agree with the prior guidance they were given or the data that they produced.

[Andrew Ross Sorkin]

What is the long term implication of the way he and other members of the FDA are operating in terms of investment by health care companies, new drugs, vaccines and the like? Because it appears that actually investment, for example, in vaccines is now drying up. And I wonder what the implication of that is not for tomorrow, but actually for five years from now in the United States.

[Dr. Scott Gottlieb]

Yeah, look, investment in vaccines is certainly being pulled back. There was a good New York Times article that documented a lot of this. I think it goes well beyond even what the New York Times captured last week in there in their article. There's increased unpredictability in the whole process. That increases the cost of capital, not just within the vaccine space, but within the whole biologics space as well. And I think a lot of people are looking to pull back investments in cell and gene therapy as well right now because it looks like it's harder space to invest in because of the unpredictability of the agency. People just don't know what the requirements are going to be. You can't rely on an agreement with the agency in terms of what the structure of a clinical trial should be, because if you do that and you hit the end points, you face the risk that Vinay Prasad will act unilaterally because he objects to how the trial was conducted or what the data shows, even if you hit your end points that you previously agreed to at the agency. So this is causing people to pull back from investments and just increasing the cost of capital across the board.

[Andrew Ross Sorkin]

You asked me, by the way, Scott, this is not for you, this for Joe. You asked me in the last hour, are the things reasons to worry about what's going on in the country. This is actually something that I put very high on the list of things that are actually worrisome not just for tomorrow, but for the long term.

[Joe Kernan]

Next five that RFK is, is running.

[Andrew Ross Sorkin]

I don't know if it's rfk, I don't know if it's Vinay Prasad. I don't know who, who you want to pin the blame on. But I'm just suggesting that right now there are things going on and they're related to this administration that I think are going to have long term.

[Joe Kernan]

And you found something that's not like you.

[Andrew Ross Sorkin]

I know that you, that's a. I know you don't believe that there's anything out there that's not like you. There are things out there that I would think that even you, even you would say, you know what, actually, maybe that's.

[Joe Kernan]

See, I would have thought the best way.

[Dr. Scott Gottlieb]

One point I would add about the vaccines.

[Joe Kernan]

Go ahead.

[Dr. Scott Gottlieb]

One point I'd add about the vaccines is, you know, we made a decision and a lot of countries did that it was important as a strategic priority to have a vigorous vaccine industry. You saw a lot of companies trying to invest in vaccine platforms coming out of the pandemic. Right now we're seeing a lot of vaccine manufacturing, frankly shift to China. You look at MRNA vaccines, almost half of all MRNA vaccines that are in development are in development in China. There's about 900 vaccines in development globally. 300 of them are in China. So we're hitting the brakes on this at the same time that China is hitting the gas pedal because they recognize this strategic priority to have a vigorous vaccine industry as a hedge against situations like a future pandemic or a new disease in the US we're pulling back from those investments, and I think we're going to be sorry for that in the future when we need new vaccines to mitigate unknown risks.

[Joe Kernan]

Right. It's never perfect, Andrew. It's at 51% at best. I look at even the censorship in the last administration that sort of escaped most people in terms of complaining. You can always find something. Anyway, Dr. Scott, thank you. It's good to see you. There's some okay things happening in the world, aren't there? In general, Scott, you look like.

[Dr. Scott Gottlieb]

I think what the secretary is trying to do on the grass closing that grasshopper makes eminent sense. I just think it's gonna be difficult to do through rulemaking. And I think what they're doing on baby formula is actually good reforms. I think there's some smart ideas embedded in that.

[Cameron Costa]

Oh, that's Squawk Pod for today. Thank you for listening today and every other day. Squawk Box is hosted by Joe Kernan, Becky Quick and Andrew Ross Sorkin. And you can catch them live for three hours every weekday morning on CNBC to get the smartest interviews and analysis from that TV show right into your ears. Follow Squawkpod wherever you're listening now. We'll meet you right back here tomorrow. Have a great day.

[Andrew Ross Sorkin]

We are clear. Thanks, guys.

[Stephen Phillip]

Packages by Expedia. You were made to occasionally take the hard route to the top of the Eiffel Tower. We were made to easily bundle your trip Expedia Made to travel flight inclusive packages are atoll protected.