Squawk Pod Episode Summary

Episode Title: Cava CEO, Tariffs & Inflation, & Perplexity’s Bid for Chrome
Date: August 13, 2025
Hosts: Joe Kernen, Andrew Ross Sorkin, (Becky Quick absent)
Notable Guests: Brett Shulman (Cava CEO), Jonathan Kanter (former Assistant Attorney General), Steve Liesman (CNBC Chief Economics Reporter)
Main Themes:

• Inflation, tariffs, and Fed rate policy
• Cava’s stock plunge and CEO’s response
• AI competition and Perplexity’s bid for Chrome
• Changing economic and political landscapes

Episode Overview

This episode of Squawk Pod tackles the multi-front challenges shaping the current economy and tech landscape. The hosts explore recent inflation data, debate tariff impacts, and dissect expectations for Federal Reserve policy amid political turbulence. The Cava CEO addresses shareholder concerns after a steep stock drop, and legal expert Jonathan Kanter weighs in on Perplexity's headline-grabbing $34 billion bid for Google’s Chrome browser, setting the stage for the next wave of AI antitrust battles.

Key Discussion Points & Insights

Market & Economic Crossroads: Inflation, Tariffs, and Rates

Timestamps: 02:32–14:30, 17:04–22:54

• Inflation’s Murky Path:

  • The hosts parse new data showing core CPI rose just over 3% in July.
  • Joe Kernen highlights that the last leg of inflation reduction—from 3% to the Fed’s 2% target—remains tough.
    Quote:
    “The last mile … from 3 to 2 is always going to be the hardest to get. It wasn't, you know, we got down here pretty quick from where were we? Nine at one point.” (Joe Kernen, 05:10)

• Tariffs & Political Strategy:

  • Discussion centers on shifting predictions—where once most braced for tariff-driven inflation, now consensus deems it less alarming.
  • Sorkin references John Hatzius’ forecast of recession with extreme tariffs and how these predictions evolve with political news.
  • The Trump administration’s potential for changing job reporting methods is noted, as well as the firing of the BLS head after job report revisions.
  • Steve Liesman and the hosts explore whether supply chains or foreign exporters eat tariff costs. Quote:
    “There's been two criteria, Joe. How much is coming through and is it bleeding into other areas?” (Steve Liesman, 17:54)

• Fed Policy & Personnel:

  • Speculation over a possible 50-basis-point rate cut at the next Fed meeting (“Scott Bessant broaching … rate cut”), and discussion of Fed personnel moves.
  • James Bullard is discussed as a credible, experienced potential Fed Chair. Quote:
    “People know him, people trust him, calm, calm, he's got some credibility, fearless and does not seem political to me.” (Andrew Ross Sorkin, 12:10)

Cultural & Technological Shifts: Super Babies and AI Search Wars

Timestamps: 14:54–15:20, 29:23–43:03

• Super Babies & the Pro-Natalist Push:

  • Brief segment on Silicon Valley’s interest in smarter children through genetic screening and testing, raising ethical debates. Quote:
    “Doesn't everybody think their own kids are the smartest?” (Andrew Ross Sorkin, 14:11)

• Perplexity vs. Google Chrome – AI Search’s New Battlefield:

  • Perplexity’s $34 billion bid for Chrome is dissected as a response to DOJ antitrust moves against Google.
  • Jonathan Kanter explains why browsers are now “the front lines of the AI wars”—with Chrome and Safari/Apple as critical distribution points.
  • Google’s argument that Chrome has no value outside its infrastructure is countered by Perplexity’s bold offer. Quote:
    “Browsers are going to be the front lines for the AI wars and I think that's becoming clear. And right now Google and Apple own most of the distribution points.”
    (Jonathan Kanter, 01:35, repeated and elaborated at 34:17 and 34:41)
  • The conversation also revisits the parallel between Musk/OpenAI and Apple distribution, and what antitrust logic is now at play.
    Quote:
    “Now here you have Perplexity with 34 billion reasons why it has value outside of Google.” (Jonathan Kanter, 34:22)

• The Next Phase of Tech Antitrust:

  • Kanter acknowledges that as the platform wars shift from search and advertising to AI, new regulatory approaches will be needed.
  • “Do we want the next generation of technologies to thrive and compete, or ... the previous generation ... locking up markets?” (Jonathan Kanter, 37:24)

Cava’s Earnings Drop: CEO Brett Shulman’s Resilience

Timestamps: 22:58–29:05

• Stock Plunge Context:

  • Cava shares drop by 25% after missing revenue and sales forecasts. CEO Brett Shulman appears on air to answer for the disappointment.
  • He emphasizes long-term strategy, strong new restaurant openings, and a robust supply chain offsetting inflation and tariffs.
  • Supply chain innovations and managing overseas sourcing are detailed. Quotes:
    “Even before our IPO, I told the team ... stocks will go up, stocks will go down. But what really will define us is how we build this over the long term.” (Brett Shulman, 23:35) “We haven’t seen inflationary pressures today. I’ve got to give a shout out to our supply chain team … really mitigating any cost pressures to pass through to our guests.” (Brett Shulman, 25:39)

• Consumer Health & Menu Innovation:

  • Shulman reassures the hosts that Cava is still attracting customers despite economic ‘fog’ and that another new protein (chicken shawarma) is set for launch.
  • He admits these strong comps create difficult year-over-year comparisons for investors. Quote:
    “We could have accelerated [the chicken shawarma launch] and launched it in June ... but we didn’t think that was the right thing to do for our operations team or for the business.” (Brett Shulman, 28:31)

Political & Policy Tangents

Timestamps: 39:03–42:54

• Corporate Taxation and Tech Policy:

  • Conversation with Jonathan Kanter veers into politics: Should government take a “chip tax” (e.g., 15% of Nvidia and AMD revenues), and how industrial policy blurs lines between capitalism and state control. Quotes:
    “When you start blurring the lines between the state and the state's enterprises or the free market, we start to look a lot more like China.” (Jonathan Kanter, 38:22)

• Populist Politics:

  • The hosts press Kanter on left-wing political figures (Mamdani, Warren) and issues like rent freezes and state intervention, with Kanter noting their resonance is due to public concern about cost of living.
  • The discussion underscores shifting themes in both Democratic and Republican messaging on economic issues.

Notable Quotes & Segment Timestamps

• “He's a riddle wrapped in an enigma. Have you heard that expression? ... Wrapped in a conundrum, surrounded by confusion.”
  —Joe Kernen (01:15, 10:59)
• “Stocks will go up, stocks will go down. But what really will define us is how we build this over the long term.”
  —Brett Shulman, Cava CEO (23:35)
• “Browsers are going to be the front lines for the AI wars and I think that's becoming clear.”
  —Jonathan Kanter (01:35, 34:41)
• “The stock market trades like it’s game over in this debate between saying it ain’t going to ever happen and those warning, just, you wait, that's a bad sign.”
  —Steve Liesman (19:26)
• “When you start blurring the lines between the state and the state's enterprises or the free market, we start to look a lot more like China.”
  —Jonathan Kanter (38:22)

Segment Timestamps

• Inflation, Fed, Tariffs: 02:32–14:30, 17:04–22:54
• Super Babies & Pro-Natalist Tech: 14:54–15:20
• Cava CEO Interview: 22:58–29:05
• Perplexity Bids for Chrome & Antitrust: 29:23–43:03
• Politics, Tax, and State Markets: 39:03–42:54

Tone & Takeaways

With its trademark blend of sharp analysis and colloquial banter, this Squawk Pod episode captures the shifting optimism (and new fears) on inflation, the real-world impact of economic uncertainty on businesses like Cava, and the high-stakes tech battles now moving from search to browsers and AI. Whether debating the Fed’s next move, grilling CEOs on earnings misses, or unraveling the next phase of antitrust, the hosts keep the focus on what matters for markets, policy, and the digital future.