Andrew Ross Sorkin (1:50)

Wish everyone a very healthy happy new Year. Merry Christmas and thank you.

Joe Kernan (1:55)

Happy New Year.

SquawkPod Host (1:56)

A very merry squawk pod begins right now.

Joe Kernan (2:00)

Stand Anderby in three, two, one.

Joe Kernan (2:03)

Qander Good morning. Welcome to Squawk box right here on cnbc. We're live at the NASDAQ markets at in Times Square. I'm Andrew Ossorkin along with Joe Kernan. Becky is off on this Christmas Eve.

Andrew Ross Sorkin (2:15)

Pro golfer Brooks Koepka saw this yesterday. Brooks Koepka announcing that he's going to leave. He's going to leave live Saudi Arabia funded live golf league more than three years after he joined. A statement from Koepka's representatives says the five time major championship winner feels now is the right time to spend more time with his family. Koepka was one of the biggest signings when he jumped to the league from the PGA Tour in 2022. It's unclear in if or when he might try to rejoin that tour. Tour rules say he would have to sit out at least a year before returning. In a rare statement acknowledging a live player, the PGA Tour said brooks Koepka is a highly accomplished professional. We wish him and his family continued success. The PGA Tour continues to offer the best professional golfers the most competitive, challenging and lucrative environment in which to pursue greatness. Pronounced live. You know, that's how inconsequential to me this whole thing has been, Andrew. I can't even remember whether it's pronounced live or live, but I guess it's a stupid name anyway, right? I don't know what happened to consolidation efforts or whatever else. That's what I was looking up because I'm like, I can't live.

Joe Kernan (3:33)

Or because the deal never really.

Andrew Ross Sorkin (3:36)

That's what I mean.

Joe Kernan (3:37)

Got there.

Andrew Ross Sorkin (3:38)

You look at. There have been some great players and there some interesting. It's weird for me to watch the cheering and the weird teams. I don't know how the points work. Some of the great players that went there, you would have to say, didn't really flourish. Like Brooks was on a fast track. The majors winning and I don't know, shouldn't be talking about it. And Dustin Johnson, others that went. And then there's some of the guys that definitely said no to the huge money, Rory and others. And I don't know. I don't know how it finally reconciles itself, but that's an interesting story. So it's Liv, in case you're wondering.

Joe Kernan (4:19)

It is Liv. Meantime, the Trump administration notching a win in its campaign to charge $100,000 for new HB1 visas. That's for highly skilled foreign workers. Federal judge rejecting a challenge to the fee that had been brought by the US Chamber of Commerce. The chamber arguing that the fee conflicts with federal immigration law is going to lead to companies cutting jobs and public services. But the judge said that the President Trump's move fell under his broader power to regulate immigration. She was appointed by former President Barack Obama, in case you're wondering. So a little bit of context and detail there on that decision.

Andrew Ross Sorkin (4:56)

I didn't watch. Hunter. Yes. I don't know if you saw it, but it's a cover of the Post. It's very strange that you.

Joe Kernan (5:01)

I did not.

Andrew Ross Sorkin (5:02)

Bizarre. It's got everybody. It's got everybody. It says that President Obama didn't let him lobby domestically or was saying, you're not allowed to do that. Joe Biden was the vice president, so his son told him not to do it. That's why he had to go and do it abroad at Burismo and Ukraine and other places. But the Post decided that was the most important story of the. Not the 4.3% GDP. That's a pretty good number yesterday. We'll see if it lasts. What happened to the government slowdown? Is that in the next.

Joe Kernan (5:38)

I don't. I think we're going to have to see everything in about a month or two to actually figure out what's going on.

Steve Liesman (5:43)

I'm not.

Joe Kernan (5:43)

I'm looking.

Andrew Ross Sorkin (5:44)

We're embracing it. You're very happy that it happened in the. You just think we can't take it as sure.

Joe Kernan (5:49)

But I also think.

Andrew Ross Sorkin (5:50)

No. Are you happy? A lot of people were not happy about it.

Joe Kernan (5:54)

Well, the people who were not happy were people who wanted lower interest rates and people just.

Andrew Ross Sorkin (6:00)

That's not the only people who didn't want a good number.

Joe Kernan (6:02)

No, no. Look, we all want people who hate.

Andrew Ross Sorkin (6:04)

Trump that didn't want a good number.

Joe Kernan (6:05)

We all want a good number. It doesn't.

Andrew Ross Sorkin (6:07)

You are not. You are not the royal.

Fidelity Trader Plus Announcer (6:09)

We here.

Andrew Ross Sorkin (6:10)

You do not speak for the left.

Joe Kernan (6:11)

Be put through the context of.

Andrew Ross Sorkin (6:13)

You always say you don't speak for the left.

Joe Kernan (6:14)

I do not.

Andrew Ross Sorkin (6:14)

And in this case, you definitely don't because they didn't like that number.

Joe Kernan (6:18)

What are you talking about? Maybe they didn't like that number.

Andrew Ross Sorkin (6:22)

Will you ever move into the real world?

Joe Kernan (6:24)

How could you ever move and admit.

Andrew Ross Sorkin (6:27)

What the real world actually looks like?

Joe Kernan (6:29)

Not just in some kind of politically divided universe. Religious.

Andrew Ross Sorkin (6:34)

You think the left.

Joe Kernan (6:35)

Everything on every.

Joe Kernan (6:37)

Andrew.

Andrew Ross Sorkin (6:37)

If the world. If the tariffs don't ruin the economy, you think the left is going to. Is not going to be disappointed.

Joe Kernan (6:45)

I imagine people who argued that it. Yeah, sure, in a certain way. But I don't think that if you see good. I know it's Chris.

Andrew Ross Sorkin (6:52)

I know it's Chris. And you're being, you know, you're.

Joe Kernan (6:56)

I got my candy cane tie on.

Andrew Ross Sorkin (6:58)

I was looking at. I'm ready to go like a maroony thing. Is it.

Joe Kernan (7:00)

Is it candy cane? It's supposed to be candy cane.

Andrew Ross Sorkin (7:03)

Is it supposed to be candy cane or.

Joe Kernan (7:04)

I mean, it was in the. It's in the candy cane vicinity. It's not a real candy cane, but sure. I thought I was.

Andrew Ross Sorkin (7:09)

You know, that's nice. That's nice. I. I wore red, then I wore green. I thought about purple today. Purple's kind of a Christmasy color, isn't it? But then I thought it would look like, you know, purple strategies.

Joe Kernan (7:20)

Whatever that is, I think, you know, a nice Grinch outfit for you, I think would be good.

Andrew Ross Sorkin (7:24)

A nice Grinch outfit. Walmart has a lot of.

Joe Kernan (7:27)

Do they have a lot of Grinch this year?

Andrew Ross Sorkin (7:28)

They have a lot in their ads. The Grinch is their spokesperson and all their ads. Really? Did notice that?

Joe Kernan (7:34)

No.

Andrew Ross Sorkin (7:35)

You're reading your own book or something. Is that what you mean?

Joe Kernan (7:37)

I'm so focused on the children.

Andrew Ross Sorkin (7:41)

On the children. Okay. A large number of baristas that were on strike are set to return to their coffee house. Starbucks Chief Partner Officer Sarah Kelly posted the news online saying that the Starbucks Workers United union issued an unconditional return to work notice. Kelly said employees at 166 of the 215 affected coffeehouses want to come back, though some locations will remain under a strike notice. In a post on X, the union said baristas are continuing to strike. It also said that yesterday 19 additional Starbucks locations filed for a union election.

Joe Kernan (8:26)

Tease will be next.

SquawkPod Host (8:28)

Coming up on Squawk Pod Christmas viewing. First, how popular is your favorite Christmas movie? Steve Leisman has rankings from his All America economic survey Die Hard, which came out in July.

Steve Liesman (8:42)

So there's a debate about whether it is a Christmas movie. We'll talk about that in a second.

SquawkPod Host (8:47)

Don't worry, that's not number one. Then famed agent for Kevin Durant, Rich Kleiman previews the five NBA matchups on Christmas Day.

Joe Kernan (8:57)

The NBA is just like filled with incredible young stars right now. And then you still have LeBron, Steph and Kevin and James Harden, some of these older guys that are still performing at a high level.

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SquawkPod Host (10:44)

Welcome back to Squawk Pod this Christmas Eve with Joe Kernan and Andrew Ross Sorkin.

Joe Kernan (10:50)

Now to the great Christmas Day viewing debate, Christmas movies or sports. Senior economics reporter Steve Liesman is at the table this morning. The result of the CNBC All America economic survey and what Americans watch on the holidays.

Steve Liesman (11:07)

Sir, we threw this question in with our survey, decided to save it until now. Have a little fun. Whether you have a wonderful life and spend Christmas with family or you're home alone, everyone has a favorite Christmas movie, unless of course, you're a Grinch. We asked a thousand Americans, tell us your favorite Christmas movie. And the winner is home alone, number one, chosen by about 11. About 15% of people made that the number one Christmas movie, followed by Elf and then Grinch, which, by the way, I think Grinch gets two entries there, right, because there's the cartoon Grinch and there's the movie Grinch. I think most people are probably picking the movie Grinch followed by my personal favorite it's a Wonderful Life and then Die Hard which came out in July. So there's a debate about whether it is a Christmas movie. We'll talk about that in a second. A Christmas Story and A Christmas Vacation are honorable mentions here worth pointing out. No movie that got any substantial votes was made more recently than 2003. So we can empirically say the public thinks they don't make them like they used to. We also ask more generally how do you entertain yourself on Christmas? And here are the results. 66% watch or stream a movie at home, 37% are watching live sports, 29% go to the movies, 23% attend a play, musical or concert. This is during the holiday season. I suspect honorable mentions going to a sporting event and traveling out of the country for 8% of the public. The NFL seems to have figured out that people like sports on Christmas. This is the third year in a row that there are three NFL games. I think a couple of them are streamed. I think one of them is on regular network and they tend to raid more highly than the average game, though it might have eaten into the NBA game audience which used to own the day for sports. We also picked up, by the way, a bit of the K shaped economy with how people spend their Christmas. When it comes to will you see a movie in a theater? 38% of the financial elite say they will. And by the way, that's people with higher salaries and more money in the market. So those are the gaps between the higher and lower income. On the issue of attending a play or a concert as well as attending a sporting event. More people with money tend to do those things on Christmas day. So guys, I know what you want to talk about. We could talk about the GDP numbers yesterday and this K shaped stuff that was in there.

Joe Kernan (13:22)

I have one Die Hard Christmas. I have one movie question for you which is I am finding, because you know I have children that they are less interested in watching movies than they used to be, that they're more interested unfortunately in the. In the doom scroll on the phone. Harder to get them to watch a two or three hour, you know, like a real movie because of just the length of it. By the way, we were trying to watch have you seen F1?

Steve Liesman (13:48)

Oh the Formula 1 which is now on Apple.

Joe Kernan (13:51)

I thought, oh, that's like an action packed.

Steve Liesman (13:53)

Yeah.

Joe Kernan (13:53)

Thing. Really hold their attention for as long as they used to. Whereas I feel like sports continue to hold people's attention.

Steve Liesman (14:01)

Maybe Joe and I think have kids more in similar age than yours.

Joe Kernan (14:05)

Right.

Steve Liesman (14:06)

One thing I found was that things that I thought were great movies and you want to turn the kids onto them.

Joe Kernan (14:11)

Yeah. They're not interested.

Steve Liesman (14:12)

They're like, dad, this is really boring, the cutting, that kind of stuff. And I don't know, you have younger kids so they're even more attuned to the short attention.

Joe Kernan (14:20)

Yes. And I just wonder what that's going to do longer term.

Steve Liesman (14:23)

I think that's what's going on with the whole media right now. Right. Which is. Which is the idea. I mean sometimes you just, you're like, well, you want these quick video things that are out there.

Joe Kernan (14:32)

Well then it raises a question about the value of the libraries of all these streaming services. If you don't think, if you don't think the next generation is going to care about movies the same way or TV shows the same way because of the attention.

Andrew Ross Sorkin (14:45)

Definitely changing a little.

Steve Liesman (14:46)

My 25 year old son now has in a process right now of watching old movies.

Joe Kernan (14:51)

Okay.

Steve Liesman (14:52)

So he came back to a bunch of stuff. I was like, johnny, watch this. He's like, no he doesn't.

Andrew Ross Sorkin (14:55)

A lot of references to Christmas in Die Hard. I mean it's the Christmas party.

Joe Kernan (14:59)

What a great movie.

Andrew Ross Sorkin (15:00)

Nakatomi Plaza. They kill the one guy and he comes down in his Santa Claus outfit. And then Han says, now there are only six of you. Ho ho, ho. Remember, Han says that the only thing.

Joe Kernan (15:14)

I remember from that movie is yippee ki yay. You know what?

Andrew Ross Sorkin (15:17)

Yeah. You don't remember when the guy comes in, he snaps his neck, he comes down, they send him down on the elevator and the elevator doors open and someone screams and he's got ho ho.

Steve Liesman (15:27)

But the debate is that you could do that whole movie without any Christmas reference.

Andrew Ross Sorkin (15:31)

You could. What's Hans's name?

Steve Liesman (15:32)

Bruce Willis apparently said it's a Bruce Willis movie, not a Christmas.

NPR Announcer (15:35)

Hans Gruber.

Andrew Ross Sorkin (15:36)

Hans Gruber, who really didn't have any political ideology.

Steve Liesman (15:40)

I thought the more interesting debate might be one about Potter vs. Bailey from It's a Wonderful Life. I mean, we sit here and where do we stand as capitalists here on Potter taking over a failed savings and loan, barely running a risky book.

Andrew Ross Sorkin (15:57)

Right. Even back then, we know where Hollywood.

Joe Kernan (15:59)

There was. There was no FDIC insurance at that point.

Steve Liesman (16:02)

What's that?

Joe Kernan (16:03)

There was no FDIC insurance.

Steve Liesman (16:04)

No FDIC insurance. And he tried to cajole people to keep your money in the bank.

Andrew Ross Sorkin (16:07)

Right.

Steve Liesman (16:08)

Because there's a lot of interesting economic stuff that's been written about this Potter versus Belly. One thing that is for sure.

Joe Kernan (16:16)

What year was A Wonderful Life supposed to have taken place in. Do we know?

Andrew Ross Sorkin (16:20)

It was current in 1939.

Steve Liesman (16:21)

Oh, was it? Yeah.

Joe Kernan (16:22)

Well, no, no, because there was FDIC having now written 1929. There was no FDIC insurance was put in place in 1933 as part of the Glass Steagall Act.

Andrew Ross Sorkin (16:35)

I think then they would have had it because I think it was 1952.

Joe Kernan (16:37)

I don't remember if they did.

Steve Liesman (16:39)

One thing that is for sure, though, Pre.

Joe Kernan (16:41)

Pre.

Joe Kernan (16:42)

The Bank act of 1940.

Steve Liesman (16:43)

Our lending system is totally anonymous. Right. The idea that you would know the person you're borrowing from.

Andrew Ross Sorkin (16:51)

Right.

Steve Liesman (16:51)

And when George Bailey gives that famous speech of I don't have your money, your money is in, you know, so and so's house. That does it. Every single debt market we have, Martini is completely anonymous.

Andrew Ross Sorkin (17:03)

Martini. And then that horrible guy took over the bar. Remember when George hadn't lived?

Steve Liesman (17:08)

That's right.

Andrew Ross Sorkin (17:09)

His name is terrible.

Steve Liesman (17:11)

Get your kids to watch that.

Andrew Ross Sorkin (17:13)

What about Christmas? Why is Christmas vacation. I thought that would be higher.

Steve Liesman (17:17)

I could see if it's on the list.

Andrew Ross Sorkin (17:19)

No, you said it was an honorable mention.

Steve Liesman (17:20)

Well, here's the thing. We've done these in two different ways. In your thought. Sometimes we create the list and ask people about it or we just take their answer and we catalog it and that's. We did the latter with this one. So I. I don't know if we'd had that on the list, if that would have rated higher. You read them? I don't know. That's Chevy Chase, right.

Andrew Ross Sorkin (17:43)

And Randy Quaid and Beverly d' Angelo and. And I think there was a different Russell.

Steve Liesman (17:48)

Why do you think they haven't made a movie since then? Oh, three. Why. Why has it been so long since to make it one has come on and been part of the whole firmament there.

Andrew Ross Sorkin (17:57)

Any good new songs, like Mariah Carey is the last song that took off, right?

Steve Liesman (18:02)

Yeah.

Andrew Ross Sorkin (18:02)

Michael. George Michael.

Joe Kernan (18:05)

Yeah.

Steve Liesman (18:06)

So that's. We're just. We're just locked in. That's it. Christmas now and forever.

Andrew Ross Sorkin (18:10)

When the boomers are gone, the world's gonna look a lot different, save not as good.

Steve Liesman (18:15)

Better.

Andrew Ross Sorkin (18:16)

No. Like if George had never been born.

Steve Liesman (18:22)

Don't you worry though, that like, you sit there and say this is how things were and they were better and then you kind of foreclose that kind of stuff. It's like, you know, they may have good ideas.

Andrew Ross Sorkin (18:32)

No, it's true.

Steve Liesman (18:33)

These millennials and these gen zers. No, that's your kids you're talking about.

Andrew Ross Sorkin (18:36)

I know they do. They're different.

Steve Liesman (18:38)

They're different.

Joe Kernan (18:43)

Tomorrow, sports fans can watch five basketball matchups during the annual Christmas games. It's a tradition nearly as old as the NBA itself. Joining us right now is Rich Kleinman. He is the co founder and CEO of Boardroom. Let's tango. Rich. It's nice to see you, sir.

Joe Kernan (19:00)

Nice to see you. How are you guys?

Joe Kernan (19:02)

We're good. Merry Christmas. So tomorrow we have a lot of NBA, but we also have a lot of NFL going on. So I'm curious how you think this is all going to going to play out.

Joe Kernan (19:14)

Yeah, I actually think the NBA has got a great opportunity. I was interested to see how all things would unfold when the NFL started playing on Christmas day. But tomorrow, the NBA has five incredible games. And unfortunately for the NFL, they have three games that don't mean as much as they probably thought it would mean when the schedule came out. You have Broncos, the Chiefs are not in it. You have Vikings, Lions, Vikings are not in it. And then Cowboys, commanders, both those guys are not in it. So the NBA has five incredible games, good mix of the old stars and these young stars. So I think it's a great day tomorrow for the NBA.

Andrew Ross Sorkin (19:51)

Like someone pointed out all third, third string Quarterbacks in three of the games. But you can still bet. I mean, you can still bet, but it's even hard to bet when you don't know, you know, whether anybody's going to complete a pass.

Joe Kernan (20:05)

Where are you going to be, Rich? Tomorrow?

Joe Kernan (20:09)

I am going to be in the Bahamas, my friends. But I will be. I will be glued to the NBA games. And Joe, it is not hard to bet. There will still be tons of gambling happening. But, yeah, from the stakes of the games, you won't have Mahomes playing tomorrow. So that's obviously big with the Chiefs Broncos game at night. And I don't know if you saw the NBA lineup, but they have Oklahoma City and San Antonio. So you have Wemby and then obviously Shea. You have Anthony Edwards versus Jokic. You have KD versus LeBron. You have the Knicks at the Garden, and then you have Steph versus the Mavericks. I mean, these are five incredible games. It's like 13 hours of NBA.

Andrew Ross Sorkin (20:48)

That's true. That's true.

Steve Liesman (20:49)

I got.

Andrew Ross Sorkin (20:49)

I'm. I'm transitioning. I'm transitioning into NBA. I'm not quite there. It's still early, isn't it, Rich? It's still sort of getting out of the College bowl and in the NFL. I gotta. It's. It's time. I got. I gotta move in. I didn't know. What you just described is really good. And it makes me happy for tomorrow.

Joe Kernan (21:10)

Yeah, and you should get into it. I mean, I think the NBA did a great job of making the early games matter with the NBA cup. And obviously the spurs just won it last week, beating the Knicks. Or the Knicks won it. Sorry, the Knicks beat the Spurs. But right now with the west being so competitive, you have like six teams that are four or five games apart. The NBA is just like filled with incredible young stars right now. And then you still have LeBron, Steph and Kevin and James Harden, some of these older guys that are still performing at a high level. But Wemby and Shea and Anthony Edwards. This is like the best young crop of stars that the league seen since these older guys were young.

Joe Kernan (21:49)

What do you make Rich? This may be taking it off of Christmas for a second, but starting in January, you know, there's this plan for the NBA to try to expand in Europe, try to do this, this. This collaboration with fiba. What. What do you think that means for the league long term?

Joe Kernan (22:04)

I think it's incredible. I mean, obviously the game has grown so much globally. So many of the top players in the league are from outside of America, you know, with the All Star game format this year is going to be the USA versus the. But I think the ability to tap into some of these existing fan bases, these like deep rooted communities around some of these international football teams, these soccer teams, the PSGs and Real Madrid's of the world. You don't get the opportunity to bring a built in fan base like that. And I think these cities are, are ready for basketball. I mean it's as popular around the world now as it's ever been. And I think from the NBA standpoint, to be able to like build that brand and cement that brand around the world, since some of those players are playing in their league in America is an incredible opportunity. And I think down the road you'll have the ability for some of these guys, some of these college players that you've got to know that become like familiar names to go play over there. And I think there'll be like a real demand for it. I'm excited for it. I think it's an incredible opportunity for the league.

Joe Kernan (23:04)

Do you see a moment where there really is trans transatlantic playing? I mean people have been waiting for, you know, this, these, these new planes to get faster. But do you ever see a moment, I mean people, you know, obviously there's different exhibition games and other things that go on, but do you ever see five, ten years from now a completely different sort of setup?

Joe Kernan (23:27)

Yeah, I think it will happen slowly. Like I think, you know, you already have games in the preseason where teams go over to the Middle east, they go over to Asia. Listen, if you're flying from New York to L. A or New York to Portland, you're talking about a six hour flight. Six and a half hour flight. So the idea of flying to go play in London or Paris I don't think is so crazy. And I think that there'll be the ability to have like some fun in midst season tournaments the way they do with the NBA Cup. But I don't think travel ultimately becomes the issue. I think that that league will probably run and stand on its own. But as the league evolves and the town continue to evolve, I think there'll be great synergy with the two leagues.

Joe Kernan (24:12)

You want to pick. Pick the NBA finals this year right now. Too early.

Joe Kernan (24:17)

It's, I mean it's not too early. You know, I think in the east you have like a surprising Detroit team right now who's been first place most of the season. I think the Knicks clearly are in contention. Philly, when healthy can compete with anybody. You know, I Think Miami surprising people. But in the West, Oklahoma City, who got off to an incredible start and everyone thought would run away with it. They've now lost a few games. The spurs are incredible. I mean, the spurs have such a great young nucleus in. Wemby obviously is like a once in a lifetime player. So if I had to guess, I'm obviously going to go with my man KD and the Houston Rockets versus the Knicks.

Joe Kernan (24:56)

And then final question, hot new sport that's going to come on the scene in 2026. Is there anything, anything out there that we got to keep our eyes on? I know people talk about a sports bubble, but there's, you know, here we are in this moment.

Joe Kernan (25:09)

Yeah, I mean, you know how I feel about that. I mean, I think the. It's not a sports bubble. There's demand for all these sports. There may not be a demand for this model for all these sports, especially if they try to replicate the model of traditional leagues. But, you know, Padel has just grown in popularity and exploded in popularity. There's some great new brands around Padel. Everywhere you travel now. These hotels are building Padel courts. There's clubs opening. There's some great new clubs in the city that have opened. My friend Ronnie Feig from Kith just opened Kith Ivy. There's the reserve Padel Club. So I think that the Padel league is starting to gain a little bit of traction. The sport is so big in Europe. I do see Padel having an opportunity. But again, you have to build these brands with a unique business. You can't think of this as trying to replicate the NBA or the NFL or the mlb.

Joe Kernan (25:58)

Okay, Rich, want to thank you, want to wish you a merry Christmas and look forward to seeing you a lot more in 2026. Thank you.

Joe Kernan (26:04)

Same here. Thanks, guys. Merry Christmas.

SquawkPod Host (26:09)

Coming up on Squawk Pod, Santa Claus is coming to town tonight. But he's already started his journey around the world. We'll talk to the experts at NORAD who have been tracking his path for 70 years. The U.S. air Force's Northcom commander, General Gregory Guyot.

General Gregory Guyot (26:26)

Santa is probably the most disciplined and capable aviator that we've ever seen. And so he generally can avoid any type of conflict.

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Joe Kernan (27:01)

End visibility on your most critical shipments.

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SquawkPod Host (28:10)

Welcome back to SquawkPod.

Joe Kernan (28:12)

You're watching SquawkBox on CNBC, a special edition, a Christmas Eve edition of SquawkBox. I'm Andrew Oz Sorkin along with Joe Kernan. Becky is off enjoying Christmas Eve.

Andrew Ross Sorkin (28:23)

Santa Claus has started his Christmas journey and the experts at North American Aerospace Defense Command are tracking his path now for the 70th year. Joining us now from NORAD, Air Force General Gregory Guyot. General, it's good to have you on. Good morning. God speed, be careful. Do you have time to talk to us or should you be somewhere else?

General Gregory Guyot (28:48)

Of course I have time to talk. Merry Christmas to you.

Andrew Ross Sorkin (28:50)

Are you sure we don't want to, you know, safety is paramount here. Can you tell the story since it's 70 years, what happened before I was born? Andrew? 1950. So this is before I was born. General, when this first some kid there was a phone number on TV to call Santa and he transposed the number and got NORAD or the predecessor to norad. That really happened.

General Gregory Guyot (29:16)

That's exactly right. Colonel Shoup answered the call. He was on a alert. You know, we have the watch and have had it for 70 years. And he quickly thought through the problem and eased the kids concern and told him that Santa was airborne but not able to talk at that time. And that started the tradition that's continued for the 70 years since.

Andrew Ross Sorkin (29:37)

That's really an unbelievable story. Is it is the weather cooperating this year? It is.

General Gregory Guyot (29:46)

Santa's airborne on his way towards the international Date line. And. And Russia right now, weather is a little warmer in some places than expected, but we checked yesterday and no cause for concern. No delays, no cancellations.

Andrew Ross Sorkin (30:00)

The. I mean, I assume that you need to alert air traffic controllers and everyone else that we had an incident earlier this week where, you know, Elon Musk keeps sending up some of these. These rockets that, since it's experimental, many of them are designed or what happens is they explode and it actually affected some air travel. I guess you need to be very careful in terms of Santa as well.

General Gregory Guyot (30:31)

Yes, we're very careful. We coordinate with all the right agencies. But Santa is probably the most disciplined and capable aviator that we've ever seen. And so he generally can avoid any type of. Of conflict. And, you know, I can't recall a single incident where we've had him near miss anybody. He's a. He's a skilled aviator.

Andrew Ross Sorkin (30:51)

Do you. Do you still get calls from kids where you get a lot? How many will you get? How many people do you have manning the phones? You don't answer all of them, do you?

Joe Kernan (31:02)

That's.

General Gregory Guyot (31:02)

No. I personally don't know, but we already have on. On staff over about 200 or more volunteers throughout the entire day that are answering calls all day long. And so it'll go from our time at about 4 in the morning all the way through the night to track Santa's journey.

Andrew Ross Sorkin (31:21)

So where. Right now, where is he exactly?

General Gregory Guyot (31:25)

Right now he's over Russia and making his way towards the Wake Islands.

Andrew Ross Sorkin (31:30)

Making his way towards the end. You know, the world is a dangerous place. I would imagine flying over Russia at this point has its own concerns as well, General, and we love to do this every year. What's the next stop?

General Gregory Guyot (31:46)

Next stop after Russia, Wake in the Marshall Islands. And then we don't always know his exact path, but he'll work his way through the Asian continent, westward towards Europe and then eventually North America.

Andrew Ross Sorkin (32:02)

And how does NORAD actually track them? Is it radar? Is it satellite? Is it what actually technique is used?

General Gregory Guyot (32:10)

Well, all the above. Radar, satellite, as well as fighter aircraft, airborne radar aircraft. We take all of those different systems and layer them together to make sure that we can track them through all weather, all conditions. Rudolph's with a shiny nose. And the infrared sensors is helpful for us to track that as well.

Andrew Ross Sorkin (32:30)

Okay, General, thank you. Any changes? Do you call it the Department of War now, General, in the notes? It is. It's the Department of War at this point, is it not?

General Gregory Guyot (32:43)

Yes.

Andrew Ross Sorkin (32:43)

And NORAD's part of that?

General Gregory Guyot (32:45)

That's right.

Andrew Ross Sorkin (32:47)

You see any macro, Any major changes in the last couple of years?

General Gregory Guyot (32:52)

Certainly not with this mission. We have a very reliable teammate in Santa. We have really great systems that we use every day to track activity around the continental United States and Canada. And we use the same systems to track Santa. Everything's on track and 100% operational.

Andrew Ross Sorkin (33:11)

General, I know you got to go. You've got a lot of these hits coming. It's always enjoyable. Thank you. We appreciate it. And thanks for what you're doing. I can't imagine if you weren't doing what you're doing. Could be a problem. Thank you.

General Gregory Guyot (33:23)

Well, thank you very much and Merry Christmas to you.

Andrew Ross Sorkin (33:26)

Merry Christmas.

Joe Kernan (33:27)

I just want you to know they're selling telephones for children to call Santa. But I don't know if those phones are the real thing. This guy's got the real phone.

Andrew Ross Sorkin (33:36)

And I don't know if you have any traditions around Christmas. What you watch. But if you watch the Christmas Vacation, the classic with Randy Quaid and Chevy Chase and there is a scene that people still talk about all the time where Chevy Chase says here Santa's just crossed the northern border. And Randy Quaid, who I know watches sometime, says, clark. Are you serious? Clark. You remember that? And then the turkey explodes. You remember that? There are great.

Joe Kernan (34:05)

Are you going to watch that tonight?

Andrew Ross Sorkin (34:06)

My daughter watches it every year. And I wouldn't be surprised if we're going to watch it.

Joe Kernan (34:10)

What's on your. Are you Music. What do you do?

Andrew Ross Sorkin (34:13)

No, I love. That's not a Christmas movie. It is, though, but it's not.

Joe Kernan (34:17)

But people watch it at Christmas. They do.

Andrew Ross Sorkin (34:19)

It's a Wonderful Life. Come on. You cried everything. That's really one of the few times I actually get one little tiny tear at the very end when he hears that. Sam Wainwright, you know, Donna Reed. Who would be anyone. The greatest mother anyone could have.

Joe Kernan (34:35)

I am watching. By the way. I got tickets. Christmas night after we have Christmas dinner. Marty Supreme.

Andrew Ross Sorkin (34:44)

I'm going today.

Joe Kernan (34:45)

You're going today?

Andrew Ross Sorkin (34:46)

I'm going today. Okay.

Steve Liesman (34:47)

So we are going to.

Andrew Ross Sorkin (34:47)

Family thing for the whole thing.

Joe Kernan (34:48)

Are you here on Friday? Can we do a review together? You're not here on Friday.

Andrew Ross Sorkin (34:53)

No, I'm not here on Friday.

Joe Kernan (34:54)

Call me. Don't call me, actually. Because I don't want to know what you think before I go see it.

Andrew Ross Sorkin (35:00)

And then we gotta go see it. Our friend's in it and he has hair.

Joe Kernan (35:04)

That's true.

Andrew Ross Sorkin (35:04)

Kevin o'. Leary.

Joe Kernan (35:05)

Kevin o'. Leary.

Andrew Ross Sorkin (35:06)

Yeah. He said they needed someone to play an A hole. And he goes, he raised his hand, said, I'm your man. And he said he was so good at it. We got 40 seconds, Andrew.

Joe Kernan (35:15)

We wanted 40 long seconds.

Andrew Ross Sorkin (35:16)

40 long seconds to wish everyone a.

Joe Kernan (35:19)

Very happy, healthy, happy holiday. Merry Christmas.

Andrew Ross Sorkin (35:22)

Merry Christmas and thank you. Thanks for the viewership putting up with us and. Right.

Joe Kernan (35:28)

It's true.

Andrew Ross Sorkin (35:29)

Policeman.

Joe Kernan (35:30)

And.

Andrew Ross Sorkin (35:30)

And, you know, they got teary. We. I guess we should. Do you want to? Do we want to.

Joe Kernan (35:34)

You know, I can cry at a car commercial.

Andrew Ross Sorkin (35:36)

I know you can.

Joe Kernan (35:36)

I could start crying.

Andrew Ross Sorkin (35:37)

We like to bicker, too. No, we like.

Joe Kernan (35:39)

We do.

Andrew Ross Sorkin (35:39)

We like to discuss, too. And we cover the weight, all the sides. You're Mr. Yin, I'm Mr. Yang. We cover the whole, the whole universe.

Joe Kernan (35:46)

But I'm Mr. Yang.

Andrew Ross Sorkin (35:47)

You might be Mr. Yang. I might be Mr. Yang.

Steve Liesman (35:49)

We gotta go.

Andrew Ross Sorkin (35:50)

Make sure you join us Friday.

SquawkPod Host (35:55)

That's the podcast for today. Thank you for listening. Merry Christmas and happy holidays from our CNBC family to yours. Squawk Box is hosted by Joe Kernan, Becky Quick and Andrew Ross Sorkin, weekday mornings on CNBC DC starting at 6 Eastern. You can get the smartest bits of that TV show right into your ears as long as you follow Squawk Pod wherever you're listening now. We will meet you back here on Friday. We're off tomorrow. Enjoy the holiday.

Joe Kernan (36:29)

We are clear. Thanks, guys.

NPR Announcer (36:41)

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