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)

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.

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.

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.

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]

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.

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.

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]

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 |

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.

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.