good monday morning. welcome to another hour of "squawk on the street." i'm carl quintanilla with leslie picker at the new york stock exchange. narrow no more. nine of the 11 s&p sectors turned positive. will that trend continue? plus, two more deals announced today, adding to a busy few weeks. october was the best month for m&a globally since may 2022. we'll look at what could be ahead in 2024. checking all the right boxes. wells gets bullish on nike. says it's time to move to the sidelines on lulu. we'll talk to the analyst behind the big call. first a look at the markets. stocks are lower after posting five straight weeks of gandz with the s&p closing at a 2023 high. yields moving higher today as well. the nasdaq the biggest loser with nvidia, alphabet and

microsoft down 2%. this is something bob pisani was talking about last hour. the idea we're talking lower beta stocks acting like higher beta stocks in recent weeks, which is an interesting dynamic. >> some complain when mag 7 does too well. but broadening out. our next guest says last week's ecodata points to further signs of a soft landing and believe the fed's message that a rate cut will not come until the second half of 2024. what does that mean for a market that's been on the roll in the last few weeks? joining us at post 9, sonia meskin. a lot on what powell told us on friday. are we in a phase now where we kind of know what they think they want to do but they can't afford to say it out loud? >> it's possible. you know, it's very possible. but what we really need to see,

what we've seen so far is that inflation has decelerated faster than we were afraid it would happen in 2022. the sacrifice ratio -- so-called sacrifice ratio where unemployment needs to go up a certain amount for inflation to go down is much smaller than was feared a year ago. if this trend continues, the fed may very well start cutting rates sooner. it does need to continue in 2024. i think that's an open question. >> do you expect it to continue? >> we think there may be certain factors that may be conducive to deflation decelerating and reverse in 2024. we may hover above this 2% core pce mark for quite some time in 2024. that would, of course, induce the fed, all else equal, to start cutting rates sooner rather than later. >> morgan stanley saying in a note that when the fed begins to cut rates in 2024, they're

assuming that's a definite thing, it is still maintaining a certain level of restrictiveness. it's not until 2025 when the fed would move toward an easing cycle. can you help explain the difference between just cutting rates and having a bona fide easing cycle? i think that helps inform our viewers and investors in terms of the difference here. >> of course. i think the difference really is in nominal versus real rates. the real rate is nothing else but the rate of growth plus -- minus inflation. so, when we look at inflation decelerating, that means that -- and the fed is maintaining a relatively high nominal rate, that means the fed is actually being restrictive. the fed doesn't know how sustainable this deceleration in inflation is, which is why they're coming out saying we want to be restrictive for longer just to be sure inflation doesn't decelerate because we're still at a low unemployment level. but it's tough to say in 2024 at which point they will decide, well, we're sufficiently

restrictive, let's start cutting, and at what pace we should be cutting. >> do you think waller's comments are consensus, we can have benign series of cuts? >> it's ideal for a soft landing which the markets have priced in and the probability of that has risen given the developments in inflation and employment. but it's not 100% guaranteed. there are risks on both sides of the distribution. >> if the market is prematurely excited about rate cuts, what does that risk look like at this point in time in terms of the way the market is currently pricing things in? >> you mentioned there's been some broadening out in market equity performance. that's very, very encouraging. what we would like to see is not just the magic seven outperforming but spreading to smaller companies, companies not levered to a.i. specifically. and they've been more stung by

higher rates. especially in refinancings increase next year, it would be helpful for them if nominal rates decline because they finance themselves in nominal terms, of course. >> on the jobs number on friday, you look at consensus for q3, the street sees us bottoming out in the 30 to 50k range, do you see us going that low or perhaps lower? >> i think the challenge for earnings in 2024 will be precisely the fact -- one of the challenges would be precisely the fact that deceleration is decelerating and they co-move with inflation. whereas the cost structure is a little stickier for most companies. that would potentially compress the margins. it doesn't necessarily mean we go into a recession, but may not be as much juice left in the s&p 500 if rates don't decline. >> we'll see. we got some data headed our way this week even with the fed blackout window. good to see you. as we mentioned, merger monday is back. some m&a news to get to this morning in the airline space.

alaska agreeing to buy hawaiian airlines for $1.9 billion. phil lebeau joining us with both ceos last hour. hi, phil. >> hey, leslie. this was an idea the two airlines were kicking around earlier this year. finally came to fruition over the weekend. as you mentioned, here's the structure of this deal. $1.9 billion deal. this is a case where -- alaska will be taking on about $9 00 million of hawaiian's debt. they both remain. they'll continue flying, alaskan and hawaiian. they expect approval in 12 to 18 months. here's alaskan's ceo saying he believes it will be scrutinized but believes it will be approved. >> on the merits of this deal, simply it is pro-consumer and pro-competitive. when you combine both these networks, we'll have about 1,400 flights a day. only 12 out of those 1,400 flights is where we have overlap.

then you have an expanded domestic platform, expanded international platform for our customers on the west coast and for our residents in hawaii. >> this will be huge for alaska if it goes through. in terms of strengthening its position, primarily in the western half of the u.s. as well as hawaii and asia-pacific, there's the fleet, 365 planes, 138 destinations. this is important. it will triple the number of nonstop and one-stop routes from hawaii to north america. as you take a look at shares of hawaiian and of alaska, you'll see that alaska trading lower today while hawaiian is moving higher. it's important to point out, alaska is offering -- or agreeing to pay $18 a share to the hawaiian shareholders. they believe this will be accretive to earnings within two years, provided it gets approved. we know what the administration, the biden administration how it feels about mergers. we reached out to the doj. no comment. obviously, they will review this at some point, then we'll see if

they still have no comment or if, in fact, we'll see some pushback on this deal. >> and as you know, phil, this doj has been one not too scared of bringing lawsuits against mergers they deem to be anti-competitive. regardless of whether they prevail in court. that's been the m.o. of the department under this administration. so, my question to you is, given that answer they believe ultimately this isn't anticompetitive deal, if there is some sort of administrative antitrust action that follows, can they afford the potential distraction of going to court for several years if that's what ultimately transpires? >> sure. i'm sure they gamed that out, leslie, and they realize that in this environment, while they don't believe that this is anticompetitive, putting the two airlines together, i'm talking about alaska and hawaii, they know where the biden administration is at. they probably sat there -- we asked during the interview, did you think about putting this off? you have an election year.

maybe you put this off three or four months and then you say, we could string this out and eventually, what happens with the election, much easier chance of getting it approved, they said, no, this is the right time so we decided to do it right now. to answer your question, leslie, i think they have the resources to fight this out in court because it would be stretched out over a longer period of time, likely, if the doj says, no, we don't agree with this and we're going to fight it. >> that kind of patience is increasingly part of the m&a playbook. great stuff, phil lebeau on the airline news. a lot more coming up on the current m&a environment. citi's head of investment banking is next with his outlook for 2024. will the deal environment continue to heat up? plus, we'll get to spotify, more layoffs announced. details after the break.

power e*trade's easy-to-use tools make complex trading less complicated. custom scans help you find new trading opportunities, while an earnings tool helps you plan your trades and stay on top of the market. e*trade from morgan stanley. in a crisis caused by a terrorist massacre.

warning civilians to clear out, while hamas forces them back. allowing in food and water, which hamas steals.

the power goes out and we still have wifi alloto do our homework.ter, and that's a good thing? great in my book! who are you? no power? no problem. introducing storm-ready wifi. now you can stay reliably connected through power outages with unlimited cellular data and up to 4 hours of battery back-up to keep you online. only from xfinity. home of the xfinity 10g network. welcome back. shares of spotify moving higher after announcing it will lay off 17% of its workforce. that's the third round of

layoffs this year. ceo says the company will focus on a leaner structure that will allow it to be more strategic about reinvesting profits in the business. he added, economic growth is slowed dramatically and capital has become more expensive. spotify is not an exception to these reality. wells says the move further sments spot's focus on achieving profitability targets. they expect this to be spot's final round of layoffs. not often you get a name doing this where the stock has doubled in a year. >> absolutely. three layoffs this year. we just spoke about alaska airline's $1.9 billion deal to buy hawaiian airlines. roche agreeing to take over carmont therapies for $2.7 billion but it's been a slow year for deal activity. our next guest points out while october was the best year for

m&a since november 2022, it slowed to $177 billion of deal volume. with one month left of 2023, are more deals in the pipeline and should we expect a pickup in activity in 2024? joining us, citi head of investment banking, john. thank you for being here. even looking back to 2022, people would say it's kind of a lower bar as a look-back for m&a. we just talked about the regulatory environment, the uncertainty surrounding the rates environment. what is it going to be? what needs to clear up for boards to say, you know what, we've got these pent-up deals that we've been wanting to do. now or never, we're going to go ahead and do them. >> based on what we're seeing, i think '24 will be a strong year. a couple of things. tough year when you think about the global economic and political back drop. but more importantly, i think companies have really been tightening their belts, so they

are -- they can sit and wait all the way through the year. so, there's been a lot of good corporate finance put in place. when we look at next year, whether it's march, june or september that we start to see rate reductions, that's really not what's going to drive corporates to act. i think it's going to be the fact that gdp, organic growth is likely to be weaker in the year. that's when inorganic growth really kicks in. we've had maximum ambiguity as folks have looked back. when you look at the stock market reaction in november compared to the prior three months, without a doubt, we're seeing more plans put in place. and activity continue to pick up as we go through the end of the year. but i think we'll start to see announcements first quarter, second quarter. >> it sounds counterintuitive, you think of m&a,ing risk-on environment as we saw in 2021 and 2020, but in where there hasn't been as much activity,

that could be a potential catalyst, absent any other large macro factors. where are the key sectors where you think that actually applies and where we can expect to see a lot of activity in 2024? >> i think technology, the broadest sense of technology. that includes what we categorize aztec. that also includes health care tech, financial tech, financial companies. there's definitely growth in those areas. i think we're going to see more and more capital investment for organic growth as well as m&a activity in those areas. >> is energy right now a playbook for how they want to reinvent themselves or is it more of a bolt-on narrative, do you think? >> i think you'll see both. we saw exxon/pioneer as an example of a pretty large transaction moving the needle. but, you know, climate, as we see what's going on in the middle east, this is a key area. there's tremendous investment taking place in technologies and

folks looking to change the way they operate. i think we'll see both. >> it doesn't sound like you think the policy stance is going to get adjusted, even the rhetoric around the policy stance. >> yeah, i think, again, from a corporate's perspective. bond traders will be focused on is it march, june? >> i don't just mean rates either, competitiveness and all that. >> yeah. i don't think we're expecting that to change much. i think, again, transactions and competitive needs to be rethought, in our view, as you think about a.i. and productivity changes that are taking place in the world. so, what is viewed as anticompetitive five years ago, when you look at the new entrants and the way things are happening in media, tech, industrial, health care, we have entrants coming from all sides. i think you have to look at that slightly different. >> what about the ipo market, we've seen what feels like a real roller coaster this year in terms of there are green shoots and someone forgot to water the green shoots. you know, the ipos that came out

kind of have lagged. oh, wait, now we're seeing additional confidential filings so maybe things are picking back up again. what is happening behind the scenes? is it a real pickup in activity or is it these idiosyncratic pockets of clients who or -- or nonclients who may just say, you know what, let's get this done. things aren't going to get any better any time soon? >> i think we're expecting to see m&a pick up really quickly into the first quarter, second quarter. ipos will take a little longer. investors are very willing. we run conferences and they're talking to us about, we're looking for individual stocks, not looking to play macro themes as much. but there's always a pricing issue of what's the right price for an ipo relative to where secondary markets are trading? so, i think that meeting of price is probably going to take a little longer. so, we expect to see things kick off in the first quarter but

it's going to be second half of the year before we start to see ipo markets that feel like -- >> did you consider arm, cart, burke, were those successes, failures? was it a blend? how did you evaluate that run? >> i think there were successes. a few of those are carve-out ipos. when you think about that, that's a much more strategic ipo where they're looking to separate. the bigger challenge is for the growth players that are coming from private. they've had a wonderful growth spurt in private. they can continue to stay private. but we think we'll see those begin to come. klayvo is one. secondary markets determine everything. prior to november, the prior three months were down months. i think if we can get a little stability in the secondary market, we'll see more and more ipos. >> last thing, i wanted to ask you about talent management and

kind of the, let's call it, year two of muted activity in advisory work. of course, you have such a shakeup in the overall chess board with credit suisse merging with ubs and a lot of european banks retrenching. boutique banks have been more competitive in terms of what they're willing to pay. and citi is undergoing its own organizational revamp. how are you continuing to motivate and what are you finding in terms of wage pressure, so to speak, salary pressure for your bankers and keeping everybody motivated in this current environment? >> absolutely. so, it's a cyclical business, no doubt about it. the last two years have been super tough from a fee perspective. so, i think bankers understand that. when you think about citi and where we focus, we're a global bank, extremely broad. we think as markets begin to recover and we get back to all products working in the market,

the large money center banks and true large bulge bracket banks are where people will come to do their m&a activity. that's the market we see coming back our way. we expect that to be the trend. i think if you're talent, yeah, there will be moments where boutiques are looking, but if you look through cycles, you want to be with a player that can deliver globally and around all products. >> the balance sheet aspect. >> yes. >> thank you. appreciate it. >> appreciate it. upgrade at gm catching our attention. we'll break down that call with the analyst in a few moments. mizuho with a new target of 242. a look at what inclusion in the s&p 500 means for uber. this year's more than 140% gain doubling its previous best year ever, a 71% rise in 2020. tethawk on the street" is back afr is.

watching the housing etfs today. the construction etf, itb, hitting an all-time lead by -- led by lowe's, dreamfinders and hxb at the highest level since december of 2012. lgi and williams sonoma leaders there as they sniff out ways lower rates can impact stocks. >> potential to buy and refurbish new homes maybe in 2024. we'll see. we're about two hours into

trading. let's go post to post with bob pisani for a look at what is moving. >> the s&p is down today, but don't kid yourself. it's had a tremendous run. some sectors are overbought. some individual stocks that have underperformed for ages and ages, and all of a sudden at the end of october, interest rates down, started bopping. ibm has underperformed -- i'm trying to say this delicately -- the s&p 500 and technology sector for ten years. all of a sudden, end of october, 140 was the end of october. 160 now. that's a big move for ibm. it's up 15%. we're about a six-year high for ibm. that is a rather remarkable move. had a great earnings report, but other parts of the economy had underperformance all year. the railroads have been terrific. norfolk southern, generally underperformer. 183 at the beginning of november.

227. this is 25% move in a railroad in about a month. and that's what happens when you get lower rates, things start moving, the industrials start moving and prospects of of a goldilocks economy that's happening. same thing with the reits. horrible first three quarters of the year. end of october, simon property group had a very good earnings report. 105. and now it's 130. this is in a month here. do the math. we had the great earnings report, interest rates went down. believe it or not, we're near a new high. this was 131 in february. that was the high. 52-week high. we're approaching a 52 high on a reit. would you think that would have happened? i bet you wouldn't have guessed that. that's how fast things are moving. we even have retailers that have not been good performers. target was at a new low in september. a 52-week low in september. it was 110 at the end of -- end of october and now it's 135. so, you see the move up here in

this, doing terrific. some retailers, sherwin-williams, terrible performer on the year. great month of november. dollar general, terrible first three quarters of the year. so, you see, carl, what's going on here. we're pricing in goldilocks. we're pricing in lower interest rates, pricing in the fed's stop raising rates and potentially cutting in the second half of the year, certainly in the second half, and we're pricing in potential for higher earnings. this is all great. you see the stocks moving on this. now they just have to deliver on this goldilocks scenario. >> well said, bob. thanks. let's get a news update with bertha coombs. >> hey, carl. a search team has discovered the bodies of five missing u.s. crew members who died in a military aircraft crash last week in japan. the air force said this morning a team of divers found their remains and wreckage from the crash today. two crew members remain unaccounted for.

the pentagon grounded a fleet of military osprey aircraft at a japanese base in response to that deadly crash. but ospreys continue to fly in the rest of the region. donald trump is trying to take his fighting over gag orders in his new york civil fraud case to the state's highest court, according to a court filing today. a new york appellate court reinstated the gag order against him last week. it prevents him and his lawyers from making public statements about court staff involved in the trial. and the corruption trial against israeli prime minister benjamin netanyahu has resumed. it's been on hiatus since the war with hamas began. netanyahu is accused of fraud, breach of trust and accepting bribes in three separate cases involving powerful media moguls and wealthy associates. he denies any wrongdoing. leslie? >> bertha, thank you. up next, nike's margin of

victory. why wells fargo is swapping nike for lulu as a top pick. the analyst joins us after the break. continuing to watch gold today. it's moved lower in the last few hours. one of the biggest intraday reversals lower since november 9th of 2020. back in a couple of minutes.

we're keeping an eye on uber today, that stock jumping up more than 4.7% following an announcement it will be added to the s&p 500. the effective day for inclusion will be monday, december 18th. the stock now just a few dollars below it's all-time high. closing at $63 back in 2021. mark mahaney of evercore telling

us in the last hour that this is a sign that its business model is working and going forward, you could see the company do its first share buyback. a sportswear swap from wells fargo grabbing our attention this morning. the bank taking their chips off the table for lululemon, downgrading it to equal weight. lulu coming off their top picks list as the firm replaces it with nike as their top defensive play. the analyst behind that call joining us now. wells fargo's ike. thank you for being here, ike. why nike? why nike over lulu? what's the impetus behind this decision? >> yeah, i'd say the impetus is looking at how this discretionary space wants to behave right now. if you look at the space, the direction is pretty clear. laggard names with easy productivity, margin and/or valuations that are depressed with earnings growth visibility

that's much higher with multiples that can expand. look at the last two weeks of earnings. look at names like burlington, bath and body works, victoria's secret. these are the names that wants to work. nike checks those boxes. unfortunate for lulu, they don't. stock is up 50%, margins are high, top line is robust and there's not a lot of ways to go for them. multiples can't go up. earnings revision, i don't know if they can go up as much as they want. so good for nike in the large cap space. >> it's a valuation play. any clues from the holiday shopping season that also informed this decision? >> i would say on footwear in general, and specific to nike, we did note a much tamer emotional back drop over the black friday weekend. we saw promotions tick up across apparel.

we really saw it in the seasonal goods, sports coats, jackets. footwear is where we saw it the most tame. remember, we're lapping a time where nike flooded the market and athletic footwear was robust in the north american market. this is about rate of changing comparisons. it's going to start getting easy for nike to put up margin. that's the call right now, margin over sales for nike. >> a little more broad, some of those examples that you point out, bath & body, aeo or gap, were those moves suspect? >> look, carl, i think if you asked most people a month ago, where is the consumer going, there was a dire outlook? we saw demand falling off back-to-school, people were worried, savings will run out, gas prices were too high, student loan repayments were killing us. all of a sudden what we found out over the past month is it was just a lull. people took a break. nothing was on sale. inventory was tight and people

took a pause. when november started and the weather cooled down and the deals popped up again, the consumer came out full blast, i don't think investors were braced for that. so the names really working are the names depressed and had the cheapest valuations in the group. that's why we're starting to see that. the consumer is not dead. there's still some life there. the q4 outlooks are actually okay. >> a lot more going on credit but so far delinquencies ticking up but nothing too concerning as of yet. ike, thank you very much. >> thanks. another note grabbing our attention comes from mizuho's desk, upgrading gm to buy. they say with the strike in the rearview mirror they're excited by the company's ev profitability focus and expect strong production in '24. the analyst behind that call joins us, mizuho's bj. great to have you back. you point out a bunch of reasons to like the name. you point out the buyback, some of these trough valuations. are you arguing that some fundamental issues are now getting fixed? >> yeah, thanks for having me

on, carl. yeah, for gm we do like it. major long-term issues with the company, especially starting to get resolved. i think if you look at the uaw agreement, that puts to bed for the next five years much of any cost increases. the company is completely offsetting the wage increases as fixed cost reductions. on the ev side, too, it would be are a more measured, profitable ramp as they bring on the gm battery site. that could be tailwind on the profitability side. number three, testing a $2 billion headwind because of the loss there. it's starting to get curtailed. that will be a tailwind on the profitability side. we see a much better, much more profitable road map for them going out. 2024 will be a much better production year for them.

net net-net, much better cost structures, much stronger ev road map and the cruz being scaled back, you have production ramping into 2024, plus also if we look at sentiment on this name, it's a major low. valuations are at a ten-year low. if we look at what they're doing on the share repurchase side, they're going back to the shareholder. major -- actually stock prepurchases there. there's a major cash flow that's coming through for gm with all the profitability focus. i think that will be a key driver for the stock. and the stock is very cheap. look at tesla. >> what do you think it says to those that have long argued the legacy oems have no capital discipline, chasing their own tail on the ev front, there's no way they can match tesla's cost advantage. are they coming -- getting religion on reality there? >> i think, absolutely.

what you see at gm is a much more balanced approach. as they say, a smart ev ramp. they have a strong i.c.e. portfolio that dominated the market in suvs and trucks but they can parlay that into the ev side. if they can have a profitable ramp on the battery side, do all the things tesla is doing, if they can start to ramp that, i think they have the game together. and that's exactly what's happening. very strong cash flow. very few ev oems can boast the cash flow similar to gm. not just on the consumer side, on the commercial side, too. so, they can push on both sides to kind of drive share and growth looking out. >> vijay from mizuho, putting together green arrows in a tough tape. thanks. up next, google delays its biggest a.i. launch of the year. details ensqwkn e re" returns.th

way back in 1982 we took care of about forty kids and had to turn away over two hundred and fifty. it's the emotion of that moment that said man that just isn't fair, and i think it was at that moment that operation smile was born. every three minutes a child is born with a cleft condition. thousands are waiting for the cleft surgery and care your support gives. they need you. give joy and a new smile. scan the code or go online to give today.

google is now reportedly delaying the big launch of its a.i. product gemini as the a.i. arms race continues in full swing. steve kovach has more for today's "techcheck." >> yeah, it's been over a year since openai launched chatgpt. google made some of the key tech behind that chatbot is falling further behind. according to the information over the weekend, google is delaying the launch of a new chatbot called gemini. it's supposed to compete with and possibly surpass the most advanced version of chatgpt openai launched earlier this year. over the weekend they announced they would delay gemini until january. the report says gemini has had trouble with non-english inquiries as part of the reason for the delay. the delay highlights how google was caught flat-footed by the launch of chatgpt and has been trying to catch up to its rivals

ever since. it rushed out a buggy announcement for bard. that sent shares tumbling, wiping out tens of billions of market share from alphabet at the time. microsoft or partnership with openai has released co-pilot feature across several of its products, including bing and windows and started selling the co-pilot for office apps like office and outlook last month. this almost didn't happen, by the way. in an interview with cnbc.com today, openai coo brad lightcap said the startup debated whether they should launch chatgpt to the public last year. but he said sam altman pushed for it and boy, did it pay off, capturing everyone's imagination about the promise of a.i. and propelling microsoft past google as the leader in a.i., at least for now. >> meanwhile, you have platform reports that amazon's qbot has

self-illusion nations and meta's chief says the idea of human capable a.i. is years away from happening. we're more likely to end up with cat and dog like intelligence in a.i. in the years ahead. >> or if you ask bill gates, he'll say the opposite, this is a new era of computing and will change the way we interact with computers forever. it really depends on who you ask. look, i will point out that in the amazon q bit you were talking about, their problems, this is the problem with rushing stuff out. it gets stuff wrong. google learned that really expensive lesson back in february because they tried to get ahead of the microsoft bing chat announcement. we saw what happened there. google taking this more cautious approach. they want to get it right. they don't want to suffer another embarrassment like they did earlier this year, carl. >> the thought is better to be late than wrong. >> exactly. >> steve, question, how much is each of these companies devoting to this particular product? is it one where openai was kind

of able to use a war chest, so to speak, of capital to put toward this and able to get it out, therefore, faster? and does alphabet and google need to be putting more capital to work in order to keep up, essentially? >> the answer is yes, but it's also -- it's not cheap to make this stuff. openai has the advantage of this relationship with microsoft. part of that investment that mike so the made in openai, it's not just cash, it's cloud space. openai has the ability to have access to all of that cloud capability through azure, through those nvidia chip sets that microsoft can provide in exchange for a part of the company. that's part of it. and we're hearing from all these companies, microsoft, google, amazon, how much they plan on spending in capex while helping other cloud customers reduce their spend. it's going to be a really expensive process. also why we're seeing so many of these companies try to develop their own chips in order to make it cheaper, leslie. >> good stuff, steve. thanks. steve kovach this morning. coming up after the break, we're live in dubai at cop28

with the vice chair of s&p's global sustainability division when we're back after this.

municipal bonds don't usually get the media coverage the stock market does. in fact, most people don't find them all that exciting. but, if you're looking for the potential for consistent income that's federally tax-free, now is an excellent time to consider municipal bonds from hennion & walsh. if you have at least 10,000 dollars to invest, call and talk with one of our bond specialists at 1-800-376-4376. we'll send you our exclusive bond guide, free. with details about how bonds can be an important part of your portfolio. hennion & walsh has specialized in fixed income and growth solutions for 30 years, and offers high-quality municipal bonds from across the country. they provide the potential for regular income... are federally tax-free...

and have historically low risk. call today to request your free bond guide. 1-800-376-4376. that's 1-800-376-4376. first time i connected with kim, she told me that 1-800-376-4376. her husband had passed. and that he took care of all of the internet connected devices in the home. i told her, “i'm here to take care of you.” connecting with kim... made me reconnect with my mom. it's very important to keep loved ones close. we know that creating memories with loved ones brings so much joy to your life. a family trip to the team usa training facility. i don't know how to thank you. i'm here to thank you.

welcome back. >> leslie, in the first four days of the top government businesses, they have pledged over $50 billion in the climate agenda, so joining me to talk about how all that will be

deployed is joining me, richard. you sit on a huge amount of intelligence. are the capital markets ramping up. >> yes, we monster investment flows and investment requirements. i just want to give you one specific example, which is exciting. when you look at the inflation reduction act in the united states, you have been tracking private sector money, and it's the private sector capital market money and it's $100 billion in the first ten months, so when you compare that with some of the pledges and other things we have seen here, $100 billion mobilizing less than around ten months is remarkable. we are seeing that across the world in different ways. >> what is the opportunity for the fortune 500 company to take

advantage of climate, risk model and -- >> well, actually, risk, when we look at risk, in it's national assessment of time, and it says the scale of damages the u.s. is currently paying is about a billion, and that risk is significant and needs to be compared with the opportunity of transition, and quite often those two narratives don't stick well together. >> do we have enough risk modeling? sounds like we don't if the companies are mispriced?

>> yeah, what we found is the s&p 1200 companies, on average, when you look at the assets those companies own and where they are located and what kind of climate hazard will hit those assets. on average, 3% up to 28% loss of asset value by those companies. we need to do something to adapt to that risk, or lower the trajectory. lower the two.

>> that's something that we are seeing across the world. if you look at the intent, not just of the u.s. government, china, the europeans and also japan. japan launched something called a gx strategy, and that's designed to come in $1 trillion worth before the end of the decade. we are seeing vast mobilization of industrial plans, and that could be weaponized because it could end up in a trade conflict on the shoring of machining, and the eu and the u.s. are all doing the same thing. >> so risk upon risk. thank you so much for joining us. we will take it back to carl. >> thank you. in the meantime, high

schools are buzzing about financial education. 700% increase since 2013 in the number of students taking a course by the time they graduate. what states are doing the best job. sharon is taking a look at that this morning. >> good morning, carl. seven states made the top grade, earning an "a" because in those states high school graduates in the class of 2023 were required to have taken a personal finance course. by 2028, 23 states are projected to earn an "a." in the next five years, 4 out of 10 high school students in the u.s. will be enrolled in high schools where a personal finance course will be required before graduating. the increase in the number of states that guarantee high school students will take a personal finance course before

they graduate is partly due to the pandemic, which underscored the financial fragility of americans. >> if you leave it up to the governme school control, the folks that are likely that need it most will not get it until the state requires everybody gets it. >> it makes a difference in financial behaviors in young adults, and it helps them make better decisions about college loans. this week the governor of wisconsin is expected to take action on a bill requiring a course for high school graduation. >> that's encouraging news, but talk about the states that are not maybe getting passing grades

and why. >> some of the states getting failing grades is four of them and the district of columbia, and they got an "f" because they have no requirements, but the bright spots are states like tennessee, which earned straight a's since 2013, and that's because for the past decade its high school graduates were required to take a financial course, and you spent time in nashville, in particular. >> yeah, and not surprising given the way tennessee has planned ahead. this week cnbc is launching a new franchise and we are calling it cities of success, and it explores cities that changed into business power centers and that is driving change across the entire economy. we will feature a different city every quarter, and our first stop will be nashville where amazon, oracle, and pro sports

moved in with rapid succession. that begins wednesday december 6th, this wednesday at 10:00 p.m. eastern time. it's about demographic changes and covid had a lot to do with it, when people could work everywhere, and everybody is fought going to relocate, say, to new york city. >> tourism has been a big boom in that area as well because of the country music scene. perhaps we will see you in a cowboy hat joining the chorus there. >> there are guests, and garth brooks talks about the music industry, and the health care industry makes more than the music does, and -- >> i did not know that. >> we look forward to that on wednesday night. in the meantime, the markets, we managed to retrace some of the steps from the intraday lows. as kramer said this morning, it

will make december choppy. >> and with yields higher. mark zuckerberg filing t