doing very well. >> josh brown? >> amazon. going higher. >> the stock he said is the new apple and joe teranova, finally to you. >> kkr, strike and godaddy. >> good stuff. we will see you on "closing bell." i can't wait as the developer's conference is rnd way. "the exchange" is now. thank you very much, scott. welcome to "the exchange." i'm kelly evans with a very big hour ahead. apple's worldwide developer conference officially getting under way. before we get out to that, let's get a quick check on the markets as we count down to the fed's big event this week and they're largely in wait and see mode. for the most part edging higher on the s&p and new highs for the tech sector in general and the dow is down 43 points. the ten-year yield moving higher

and more hawkish talk out of the ecb, of course, and the rate hike and still the efforts to explain what they'll do next and they're 4.46 on the trend and bucking the trend is apple and right now it is under pressure and down 2/3 of a percent and they're off session lows and we have full team coverage of wwdc this hour. steve cove sackovac is live in o and ed lee says apple needs it show him the money and we'll see if anything apple announces today can change his mind on that. so let's begin out in cupertino with steve. what should we expect? >> this little thing called art fibl intelligence. tim cook has just taken the stage five or six minutes ago along with software box chris figureini and this is about the

software happening on the software today. open ai ceo sam altman has been spotted here in cupertino. we saw a tweet earlier when he took a selfie with a developer here from france. so the nature of that partnership, who is paying who? who benefits in the partnership the most? that is going to be one thing to watch. another thing to watch is how this relates to iphone sales. what are they going to provide here that will convince people to upgrade their phone? that might mean making some of these features exclusive to the newer iphones meaning if you have a 14 or a 13 or a 12 you'll have to upgrade in order to get those devices and that is something you have to pay attention to and then on the services front, we know these ai services are enormously expensive to run in the cloud. we've heard the stories about every time you have chatgpt it costs a few cents in the data center. who is eating that cost? does apple eat that cost? does it pay open ai? does it charge the users a

subscription fee to use some of these ai features? that is another element to watch and it boosts the services business. i can hear it happening right now, kelly so i'm going to go tune in and get the updates as they happen, but that is what we're expecting. >> let's turn to ed lee on the turning point for apple and his thoughts on the stock. what are you watching for and what do you think it would take to excite people and not just have the narrative that apple is playing catch up to sustain itself? >> right. so apple has long been sort of the second to market for a lot of products, but the other thing to really underscore here is that apple is really just a platform company. it's always been a platform company, even the software that runs a lot of its hardware has really been from other d developers and it's apps that drive the popularity and apple doesn't own all of the apps either. if it can convince the rest of us that they're a platform for ai, as well whether it's chatgpt

or google or microsoft or anyone else that's in the market for this, you have a choice as a consumer through apple, then apple can really succeed. it needs to lean into what it's always been which is, as i said, a platform business. >> and so that tells you what exactly for these slew of announcements and the details that are kind of coming out. can they move the needle on that? >> yeah, you know, i think again, there has not been a lot of information yet as to what exactly they plan to do. we've done reporting as have others that they've cut a deal with open ai and chatgpt and they're trying to cut a deal with google and that gives us a sense that, you know what? they probably want to get as many ai developers on to their platform the same way they did with the app store. so if they really become can app store for ai, then i think they're leaning into their strengths and from a consumer standpoint it makes it that much easier to decide i like this

versus that. chatgpt versus google or microsoft, whatever have you. >> i'll quote from the analyst ben thompson this morning who says any analysis of an will's prospects in the ai world should start with the assumption that ai is a compliment to apple's business and it makes the performance software more relevant and not less. would that excite you more about the stock? >> sure. i'm a subscriber, and he does great work. in general terms i think there's a lot to agree with in that kind of statement, but i think that what is also clear is that, you know, while apple has great opportunities they also have great risks. so the first is can they come up with a feature set that compels people to do an upgrade cycle, but the second question is can they compete, right? so they're already behind and they've been a share gainer in smartphones. google and android, they're

leaning into this. they're really strong and so the risk is that apple is seen as a shareholders and the other is strategic and they navigate that with great success and here it's different, right? the technology is not just what's on your device, but is the connection into the cloud and those cloud connections are largely powered by nvidia chips where apple is not as meaningful a player as google, as microsoft, as others that they'll be up against. by leaning on their own chips in the cloud can they really deliver an effective service? the other question is how does the partnership potentially work out with open ai and microsoft? i see a lot of reason for those guys to be close on smartphones, with a lot of competitive stress around the pc market. we'll have to see how they navigate that starting today. >> ed, i'm curious, what would make you as a user want to jump

in and upgrade that iphone. would it be a much-improved siri on the aipcs that microsoft has unveiled to access everything that flows through your phone, and i'm also curious about the privacy implications of that. or are you one of those people who don't need a reason. you'll get the latest and greatest? >> look. yeah, so, look, i think whenever apple comes out with anything new i'm one of those consumers who are, like, let's get it right away. i do think, however, in terms of ai, if it can become a one-stop shop, but more importantly integrate that feature and that service through the apps and calendaring and email if it can sort of give me updates as i'm getting and i wanted to look out for specific people and do the ai right now. instead of this moment where you have to go to it, type in questions and get into prompts and continuously revise it. making my life easier that way

they're potentially the killer app around ai, and still the underlying question i have is i still don't understand how generative ai is a business. you know, chatgpt, open ai, they charge a subscription fee. i pay that fee, but really, they need many more millions to justify their valuation, and i don't really know how it's going to work for google and their generative ai and it's nice to have their answers on the page and that kind of kills the search market in a lot of ways and there are more reasons than ever to jump into it. how is apple going to do with this? what is their way of tapping into what is still a developing market and where is the money going to be coming from and how will it be monetized. >> if siri can answer my questions and do everything i want her to do that is the killer app, and if they can make that the new platform where people are paying for the privilege saying siri, you should know i'm leaving for

work, tell me what the traffic is like and all of these things that people pay for the privilege of providing that data and pushing me into the app or what have you. what do you think about how apple might monetize or if it needs to? >> i think the numberone for apple is selling devices. >> siri's answering. go ahead. >> oh, goodness. the number two is the position as a gatekeeper. i think siri is crucial here, right? i think what we saw with chatgpt 4.0 is siri's obsolescence in the demonstration completely behind the curve where technology is going and the good thing for apple is that has not yet been introduced broadly that gpt 4.0 demonstrated that blew people away. so the opportunity here is maybe in this partnership, maybe with sam there that apple can get that when open ai introduces it

to the world. apple navigates the microsoft relationship and are they going to be able to be competitive over time, but you know, you're right. siri, i think is the edge of the knife in terms of the feature where if apple gets it right, everyone will want to buy the updated phone. if they get it wrong people will switch to the platform that has it. >> the only thing i would add about this, as well is in these early stages because we know we're years away from this working smoothly. how do they avoid this being more work from me. to your point, edward, if even if i wanted to look out for an important email, by the time i tell it to look out for an email, is it intuitive enough to be helpful. >> we've been living in this ai world for a while and it would

start to understand to change the temperature on its own. gaining access to all of your apps and all of your communications and learning what it is which emails you tend to look for and respond to, which calendar events are really important to you or even creating calendar events for you. it will have to be that moment where you as a user is willing to open that up to an ai and having that to sort of sort your life for you. the other side of this is, if a chatgpt and if their app can wiggle their way into other apps there's less need for the apple platform. so there is a potential budding platform war, and the fact that ir cutting a deal with apple tells you they're trying to make nice and they want interoperability, but that is still something that i think i would be on the lookout for. >> we'll go until they get more headlines. they're announcing vision os2 and i don't imagine that's what

you're excited for. >> visionos has a lot of issues and it's not a needle mover for apple today. i think the real meat and the substance will be what happens with ios. >> indeed. >> we'll find that as soon as we get it and thank you both. barton crocket and ed lee, we'll check back in shortly. the other big event is the fed's next decision on interest rates and it comes as we're getting more realtime data showing the consumer isn't slowing down. steve liesman has the results of the latest monitor. steve, what are you learning? >> you know, the american consumer, kelly, bouncing back strongly in may after an average april. it boosted spending in several discretionary sectors and it tells you there's strength out there and it counter the story of a weakening economy that we were talking about. the cnbc and the retail monitor, we use real credit card spending data with affinity solutions that shows may spending and take on autos and gas and that's the headline number to just 0.3 in%.

it rose versus a negative in april. core retail takes out food services rising 1.2% to near 2.9% and it's the sectors that are really interesting here. if you look as krcross the inte, restaurant and bars doing quite well. clothing and accessories along with sporting goods and general merchandise stores also north of 1% here. gas stations are negative as we're building supplies. this is the strongest of the 20 months we've tracked with the credit card data and it is unclear, you can't tell and is it a readout for april or the start of a renewed consumer spending spree? it does fit well with the strong jobs report we have for friday. have a paycheck? we'll spend a paycheck. if this number is repeated next week with the census data it will certainly lead to the

upgrade for the second quarter growth estimates out there. wednesday's inflation report, obviously, most important for the fed, but you're not seeing any weakness either in the payroll number or in the cnbc retail monitor, quite the opposite, kelly, there's been a strength there. >> steve, thank you very much. >> we'll pick up on that, steve liesman. the stocks are changed ahead of the fed meeting and my next guest is preparing for one cut and he sees a soft landing and the stocks will be in that scenario and the ceo of destination wolf management. it's good to see you again, welcome. >> hi, kell. do you share steve's optimism or the findings in the latest monthly survey he told us about? >> i do, actually. -- i do, actually. i think that you're going to see a more resilient economy. we've been the folks adamant that there would be a pretty significant strength, and at

this point i can't find anything that would suggest that's the case so to me, the economy is looking pretty strong at this point and i don't see any reason yet fed would really rush in to cut rates if they don't have any real evidence that the economy is weakening. >> so i'm going to read you an email i got from a viewer this morning that says -- i'm going to use you as the ar tar. i'm tired of these coming on cnbc saying everything is fine and everything is not fine and she goes on to talk about the cost of groceries, the roofer, the painter, the auto repair and talk about the lived experiences are not being matched by the data and steve is telling us about the performance of the market and so forth. >> first of all, i'm not super rich. that's the first thing, and then secondly, you know, i can understand that. i think all you have to do is

buy a hamburger somewhere and be asked for a 15% to 20% tip and it's the cost of living and we're talking about economics -- the economic data regarding people's experience when everything is more expensive, it's just more difficult, right? >> yeah. >> that doesn't mean the economy is a problem. it just means that the purchasing power is shrinking, but the overall economic data looks positive and looks strong. so i don't discount your viewer's question, why is broccoli so expensive? i think in the end people are reacting how it hits home for them and i can certainly understand that. the data is night, but in the end what's your personal experience is. >> you don't think inflation will go down until energy prices collapse. >> yeah. you know, i don't see where is

the headwind? i just don't see it. the retail members and steve went over it and the numbers don't look good and not to say that your viewer isn't feeling pinched. are energy prices going to go down? i guess they theoretically could and ukraine and russia continues on and we have the middle east tension. where is the catalyst for lower inflation? >> sure. >> i used to think up until a few months ago that we had this massive lag of breaks in the economy that was going to screech the economy and do a halt because of the past rate increases. i don't see it anymore, and so i'm desperately -- maybe not desperately, but i'm definitely looking for signs that the economy will slow down in any meaningful way where the fed can cut interest rates and as it goes right now, even one interest rate cut seems to be a stretch.

>> i do wonder in which ai plays into all of this and the reacceleration in growth stocks and as they build out data centers and electricity and everything else to support this and bring us back to technology stocks and you just stick with the market broadly or the leadership? what does that tell you? >> ai, obviously will filter through, andio tal you talk abo job growth and i can't -- and recently the manufacturing company that, announced that we'll move jobs to mexico. so you do have this sort of counterbalancing effect. investors are really faced when it comes to ai with really two choices, right? you can go pure ai and that would be a company, for example, like nvidia that is pure ai or pretty pure ai or you go with a company like, say, apple that's not pure ai, but probably will be ai in the next 20 minutes or

45 minutes based on their presentation. i think it's a matter of safety. if you look at the pure stocks, they have high valuations and you're basically betting on just that. if you look at some of these other companies they have diversified business models whether it's google or microsoft or apple. so ai is going to be a part of their offering and it won't be the sole part so if some of the hype gets crashed out you have some protection, and that's the investor will face those two choices. >> michael, good to check with you today. i appreciate your time. >> michael with destination wealth management. >> coming up, regional banks are coming off their third straight week of declines and that's the longest losing streak in eight months. which are facing a potential downgrade from moody's and which names are voting on, and they're making big gains in the eu parliament, leaving french president macron to call for a

snap election. european etfs across the board are moving lower with french stocks among the hardest hit and those declined 1.6% and we'll look at europe's path forward and what it means for the path ahead and "the exchange" after this. >> this is "the exchange" on cnbc. ah, these bills are crazy. she has no idea she's sitting on a goldmine. well she doesn't know that if she owns a life insurance policy of $100,000 or more she can sell all or

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welcome back. let's get a quick market flash on the gig stocks.

uber and postmates have lost their challenge to the california's gig workers law and has names like uber, lyft and doordash all trading lower. you can see them down as much as 3%. we'll keep you posted as we learn more. the regional banking etf is down 11% so far this year as concerns of smaller bankses linger. the ratings for moody's put eight names on the watch list and this is due to their high level of exposure to the commercial real estate market. joining us for more and the very latest, she's global co-head of financial institutions and it's great to have you back. welcome. >> good to be here. thanks for having me and it's been six, if not 12 months since we checked in and where are we? >> the regional -- luckily, we're not in march of last year. that's the good side of the story. however, we do think that there is a cohort of roughly around 120, 130 banks and i'm thinking

banks between the side of 10 billion and kind of the super regionals, if you will, that will have a little bit more difficulty adapting to different environment, and what i mean by a different environment? first and foremost, rates keep staying high which means that their funding costs are elevated because they cannot pass the funding cost into the deposit and they have options in this environment like the money market fund and the profitability that historically was strong for these banks and secondary, this cohort of banks have a higher concentration. one statistic that we shared with you, this cohort of banks between 10 and 250 billion increased their concentration of commercial real estate between 11%, 12% ten years ago to 12% of

assets. >> was that prior to what happened with the banks last march? since that they've increased their exposure to commercial real estate? >> this was prior. definitely i would say over the last five, six years before the events of last march have been the golden class. we are in a zero rate environment, the economy was doing great and the cap rates were favorable, so a lot of the commercial real estate ended up on banks' balance sheets and roughly half of the 5, $6 trillion eased on banks balance sheet and it's in these medium-sized banks. >> a lot of people say commercial real estate is like the chicken little. the sky is falling. the sky is falling, but the sky is never going to fall. >> well, that's not necessarily the case because you have to think about layer the risks. not all commercial real estate assets are back, but nevertheless which would deem around depends on the 300 to $500 billion is certainly hard to refinance these days and what

are banks doing? they're basically extending the agreement and the financing and 2024 is the peak year particularly in office. there is roughly 3 trillion of refinancing and 20% of that is office and half a trillion next year and in this kind of environment, banks do not want to extend unless they have to, and the banks concentrated in this asset class, so if you want to manage your risks down, you have to sell at a significant discount. that's what i was going to ask you. >> there are a few firms on this list and bank of hawaii, and a couple of hawaiian banks. what do you think they should be doing right now in order to shore up their balance sheets? if one of the variables is the fed, if they're going to lower rates i guess everyone starts to breathe a sigh of relief and maybe not. maybe the office issue is a secular problem. what could they be doing right now if they don't want to sell

prices? >> so what we're seeing, is capital preservation, there's no clarity with the capital. there are a bunch of proposals that would make it more stringent. in addition to the commercial real estate, there are 300 trillion of realized losses in the regional bank's cohort. so there is a layering of risk and the bank deployed where they'll report capital to maximum returns and this is an interesting proposition and what we've seen is that there are partnerships potential in the works where private lenders can come in, of course, at a price and take me a super senior tranche loss in the portfolio and pay for it, and then the bank retains a better tranche of these portfolios, but still maintains the customer. so what we are talking about the golden age of private credit and you and i talked about this maybe six months ago, and that was in the direct lending space. a lot of what we'll see now is in other asset class expanding

and it will secure that, and those assets from banks' balance sheets and of course it's a steep price. >> anna, tha, thank you for expg it. ana arsov. chris from montgomery scott is not sure moody's ratings are warranted when they're negative. >> it's great to have you back. >> explain to us, you just heard what ana said and how would you differ with the concerns from commercial real estate and so forth? >> i think the banks have been building reserves for four years. back in 2020 we had reserves go very strongly and we continue to grow in '23 and particularly in '24. i think moody's news is really old. i don't think anything has changed on real estate, and i think the banks have been setting aside major reserves for office and they'll continue to do so and the rest of the cre portfolios are acting really

well. you have a lease on multi-family in certain parts of the country. even milt-family in new york city is better than advertised and the ok paccupancy is limite. >> are those names that you think you would buy or are you sharing concerns elsewhere in the space? >> think real estate concentration, and they don't have significant concentration on real estate. they've been working down the concentration in the past three or four years. so moody's has taken the same narrative and being negative on cre as a global comment and what we keep coming back to is the profitability of the banks and the pre-tax or ppnr will be an essential part of the stress test this month and we think the banks will pass the stress test and modest changes for capital distributions can occur. i think it's a better second quarter than moody's is

articulating. so i think the banks can lead out of what they can exist on office which is less than what they portray. if you look at what they hold in the system it's less than 6% in the whole office. it's much better than the shadow banking world and that's really where the risk is. the banks have been growing reserves particularly in office for the past three or four quarters. or i think they're ahead of where moody's says they are. >> say they still want to be making some moves and she suggested disposing of assets and sheila barrett was on "squawk box" this morning on whether there should be more consolidation. take a quick listen. >> we have a lot of retail banks and it's highly competitive and they need scales to compete and if you want a market-driven solution you need to let the regional banks get bigger and it is important from a stability standpoint especially when you

get into times of stress. >> is that something you're hearing chatter about? oh, there's a lot of chatter on m and a. the question is it's taken longer for the fcc to approve transactions. we are hopeful that it's going to speed up. that will certainly accelerate. i think there is interest in seeing m and a consolidation and even if investors don't like the deals up front, they tend to like the idea that it creates opportunities for everyone around them. there are cost savings that will accrue. what sheila is saying makes sense. we need the regulatory agencies abide by a standard of a faster approval process which has become slow in the last two years. >> which final word, which are your stocks in the space right now and how much of this is a waiting game that depends on the fed. >> it's a waiting game in terms of what the fed does. companies like fifth-third and

citizens and win trust and moving down to omeris and others, i think you have a lot of capacity to move through the cycle with strong ppnr for credit risk. there's no doubt there's credit risk in the cre, and i just think the banks can handle this no different than if the weather were changing in the months ahead. >> reassuring words for bankers and depositors. let's get to tyler matheson for the cnbc news. postmates and parent company uber losing to the california law that would force companies to treat drivers like employees rather than independent contractors. the 9th circuit court of appeals and it failed to show the law at based transportation companies and exempted other industries. violent crime dropped 15%

with murder down 26% compared to the first quarter of 2023. attorney general merrick garland argued the statistics show that it's clear last year's historic decline in violent crime is continuing. a massive fire breaking out this morning at an apartment building in miami. officials say they are treating multiple patients there including two firefighters treated for heat exhaustion and many elderly residents had to be rescued from balconies. a know ma was fund in the building with a gun shot wound and was hospitalized in critical condition and it is not clear whether that incident had anything to do with how the fire started. kelly, back to you. >> wow. tyler, thank you for bringing that us to. we'll see you soon. tyler matheson. coming up, the political disaster du jour french stocks after suffering a heavy defeat in eu elections. will his gamble pay off and what's the risk if it doesn't? we'll talk to fred kempe about

that next here on "the exchange." to start a business, you need an idea.

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welcome back. more signs that europe is tilting more conservative, whale the social of the parties are set to maintain a majority in the european parliament, the

farther right parties made significant gains and olaf schultz has fallen behind mainstream conservatives. in france, marine le pens forcing the french president to call for snap elections in the country. let's bring in fred kempe ceo of the council and welcome to both of you. fred, let's start with you with the big picture here. what does it all mean? >> well, first of all, it means the center is held and that's good news for investors. the president of the european commission has a good chance at being -- coming back in, that probably means that you're going to have a regulatory atmosphere that's not as strong as it has been over the last ten years. so a little bit more pro-business and a little bit

more pro-regulation and you can see some weakness in the euro. the winner is the center. the loser is macron. and macron got half the vote of the naturally to lepens party. and to me that's the story of the elections and will it pay off and a lot of people in his own party feel the gamble is irresponsible, as irresponsible as was david cameron's gamble in 2016 when he took brexit to the election and took to a referendum believing he would rin win that referendum and paying for it even now. >> if we look at not whether macron made the right decision for himself, but what are the french telling us about what direction they want the country to go in. what is the conclusion there? >> so i talked to a couple of french political leaders today.

one of them in macron's party, and he says it's definitely about immigration. the lepen candidate said you cannot recognize france and that's a very almost racist, but certainly anti-immigration theme. also, the country's feeling more distant from paris, from the center, and mack rn is not a popular lead are. he's certainly not popular around countryside and are all thins calling it and macron gambling that people can cast a protest vote for a's european election which doesn't make much difference nationally, but they won't cast a protest vote for a pro-russian, anti-european party when it comes to the end of this month. they'll vote for me instead. and unfortunately, i think a lot of people in his own party don't believe that's going to be the case. they don't think that the -- that the far right is going to

win an absolute majority, but they think they could well win enough to take the prime minister's coalition with one or two other parties. >> what would the knock-on effect of all of that be whether it's france or other countries tilting more toward the right in a con sfsservative for the russia-ukraine war. >> the euro will weaken and there's already a divergence in interest rate policies between the fed and the ecb and whenever there are questions about the unity of the european union going forward and the euro weakens and we're seeing that. in terms of ukraine policy, the president is in charge for the time being, macron and will be until 2027. so i don't think you'll see anything immediately there. you're also seeing a weakening of orban in hungary and i don't

think there's a short run or medium-term shift in foreign approximately see. i think you're looking more for the euro now and longer term, this trajectory of lapen growing is when macron is leaving office in 2027, he's gambling the three years in office of the lepen party and he'll show how incompetent they are and they'll come flocking back to macron's party and it could turn the other way around and in 20 weven with macron as unpopular as he s he won't be elected. the question is can the center left be elected or will this be at first time that the party, takes over in charge of france. the second largest economy in europe, by the way. >> for translating all of that, as well. fred, we always appreciate it. thank you for your time today. >> fred kempe with the atlantic

council. he recently changed positions following elections in mexico and india and now we can ask you about the fallout about these potential european elections. what are you thinking? >> sure. thanks for having me, kelly. >> the big picture conversations that we've been having this morning have shen that though we're seeing that potentially the center has retained power, there is a lot more uncertainty happening in europe right now and over the past decade we've seen allocators benefitting from u.s. exceptionalism and having the international allocation more in developed market europe and now people are taking a pause and we're seeing various allocators reassess their international allocations and looking deeper and harder at erck merging markets. >> where would you be placing your bets? would it make you bet on european countries or some of your more successful blue chip giants? >> yeah. so within emerging markets and i say if we want to stay within greece, the key area to look at -- if we want to stay within

europe, the first area to look at would be greece. it is one of the most interesting deep value opportunities within the emerging markets and it would trade below book value and they've been from 0% profitability to 12 to 13% in the past years and the growth rate will be remarkable and we have a market-friendly party governing greece at the moment, and at the same time people were talking to you earlier in the show how they were looking at the outcome of these elections and 20% of greek gdp comes in tourism. >> i haven't heard about greece for ten points, and it was supposed to be a grexit before it was supposed to be a brexit. i imagine that's the only place in europe you're looking at and everything else is further aflung. >> >> within europe that's the strong overweight position. >> what about the rest of the globe, quickly? >> the rest of the globe, we see

india as the best structural opportunity in the world staying on the theme of elections. we just saw modi come out with less of an absolute majority than we were expecting coming out of the election, but the coalition governance going forward looks positive. we're expecting economic continuity and most importantly, india still benefits from the most attractive backdrop in the world and a very educated poppopulation, that as people move out of china and look for alternatives. >> indeed. we heard about that with india and mexico lately and some of the cyclicals that you're talking about. malcolm, thanks for joining us today. really appreciate it. >> thanks for having me. >> malcolm dorson. apple with the vision pro headset and the apple watch. that's the news so far at the worldwide developer's conference and you can see the shares heading back toward session lows

as we await further updates on the ai plans and the stock is down 1.25%. the exchange is back after this. [ a.i. copilot ] it's time for an upgrade. awesome. ♪ ♪ [ inner monologue ] i knew what i had to do. because they never stop. no time to waste. this isn't sci-fi. this is precision ai. ♪ ♪

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♪ ♪ welcome back. check out shares of apple. they're down about 1.1% as tim cook's keynote is under way out at the worldwide developer's conference. let's go back to steve kovac with what you heard and not heard yet. >> nothing on ai yet. they're going to get to artificial intelligence. i heard tim cook say it himself, but first they're going over all of the other platforms they have. iphone software, ipad software, apple tv and so forth. i'll just go over a few quick headlines we've gotten so far. first, let's talk about the visionpro, that will go on sale outside of the united states for the first time starting june 28th and that will be in china, japan and singapore. and then in july it will hit australia, canada, france,

germany and the united kingdom and let me move on ios 18, this is the new software for iphones coming in the fall. just more customization stuff you can do on the homescreen. you can put the apps wherever you want for the first time. things like change the colors of the apps even and some cool texting features and you can schedule a text now to send later at a later date kind of like you might on emails and speaking of email, they'll have a more unified, organized inbox, if you're a gmail user, it would put your newsletters in one folder and the your social media in another folders and things like that. in the texting front, a technology made by google and will make texting between iphone and android smoother. it doesn't solve the green bubble problem entirely, but it is better and you can see when someone read your message and things like that

also new health features for the apple watch and they're going over the ipad and you won't believe this, they're adding a calculator to the ipad and i heard hundreds of developers because there is now calculator on the don't understand why are waiting 49 minutes to get to the good stuff. >> i think it's just all the run-up. but yes, i imagine i'll be on with you on "power lunch" right now any minute now going over the new intelligence features. >> thank you, steve. we will let you keep listening. steve kavack. and let's check in with ed lee, and i'm not sure what to ask at this point, ed. what do you think? >> you talked about it at the top of this, you know, apple is famous for being a second to market company, all the things that steve just talked about, the improvements to mail, to text messaging, these are things that you've seen on android

phones and on g-mail for years now. but here's the other thing. by organizing your email, for example, in this way, it then allows an ai agent to better read your emails, for one, right? since they're already kind of categorized. and therefore, it is a way to potentially kind of make use of ai to dig into the apps. and we talked about privacy, a higher level of privacy on the different apps and what apps can access and can't access, and this is an interesting factor ahead of ai. >> barton, what are your guesses? >> look, i do think that for the stock, everything we have heard so far has been really pretty well testify graphed in the media reporting. the features are exactly what you want ap toll do in terms of improving core functional, but there's nothing revolutionary. there's nothing really surprising. and it is helpful, it will be interesting to see what kind of iphone, you know, you need to get, to access the ios 18

feature set, as that is going to be backward combatible to all the phones, or do you have to get the 15 pro or more recent, more powerful, to get this stuff? so those types of details i think will be important for, you know, thoughts about what this means for the revenue trajectory. right now, it is apple doing what apple does. small features, and you know, and historically, a very good kind of understanding of what people want and what kind of drives sales. >> all right, barton, stick around. we will still wait for apple's biggest ai announcements. critics say they're behind other tech giants like microsoft who that have already debuted the flag ship ai products but microsoft ai features itself is facing backlash. let's talk to dierdre bosa about that. >> there is an idea in generative ai that shoe launch and iterate. generative ai needs to be tested in the wild and we've seen that from open ai and microsoft and google and which has a bold and

responsible strategy when the wave kicked off. you mentioned that microsoft is on damage control ahead of the debut of co-pilot plus pcs. and the most exciting feature, it is a game changer, with the future of pcs, it surges out it is a hacker's dream come true and give access to the underlying data. so google's ai overviews forced it to make some changes. the launch and iterate strategy, it is at odds with what we know of tim cook and his team. apple likes to perfect its products as ed just said and distribute among the massive install base. investors were becoming impatient, rivals like ai are pushing out samsung ai devices and are we looking at cautious apple willing to catch up in the ai arms race? so far we haven't seen this. we know they will get to artificial intelligence a little later on. so we'll see. but again, i would point back to google, it tried to balance that cautious approach with boldness,

in the end, kind of what we've seen from them over the last few months is just full steam ahead, willing to make mistakes, willing to go back and adjust after these products are already out in the wild. >> that's a great point. i'm a little surprised it is taking apple so long go to get to this and maybe they want us to be on the edge of our seats and on pins and needles to see what they have to say. >> the one more thing strategy. maybe we'll get that. >> appreciate it. we will head back to ed and barton, and i'll ask it this way. barton, how big is the announcement, how big of an announcement do they need to make at this point to justify the hoopla going into the event or the incremental things that they already announced is, that good enough? >> we'll see what the one more thing is, but i think that what we're seeing so far is, you know, something we're seeing in the past with apple, where they introduced futures, the street

has been maybe underwhelmed or underappreciating what the consumers' reaction is going to be and then the consumer likes the features, and the sales are, you know, positively impacted. so we may be seeing a repeat of what we've seen before, like with the camera, and other features on our phones, where you know, the trading part of wall street doesn't get it until they see what consumers want. and they don't necessarily be the leader of what is happening in a new feature, like ai, they just need to give something that their consumer base wants and to do it effectively, and this may so far be that type of setup. we'll have to see how the rest of this event plays out. >> ed, i mean, again, there is a lot of interesting things here, but i feel like we're still waiting on some kind of big bang discussion point. >> and time is running out. i think, you know, i remember when chapter gpt sort of

launched to the public and people were blown away by it. it wasn't perfect and certainly isn't but it is a way that technology will work and felt like an apple moment in a lot of ways. apple is certainly not at that level. at this point, it is just going to be more about, is it better integration? how is that really working? is it better services? is it more seamless? it's sort of intelligentle ultimately. i think barton makes a good point, though, right, they don't have to be the leader, if it works just that much better than everything else, even if they're second to market or a laggard, that's how they can win, so it really just comes down to, is it really about integration then? is that what they're really pushing and selling here? instead of some kind of major leap forward. so probably not as sexy, but it might make for a better experience overall. >> sure. we'll leave it there. barton, any parting words, final couple of seconds? >> i would say tbd how this works competitively, right? so i think the voice functional

and chatgpt 4.0, that could emerge on platforms and they need to have that at apple, and it would be great to see something like that here with sam altman in the audience. so i'm wondering if siri might be the next thing coming up. we'll very to see. >> gentlemen, for now, thank you very much. appreciate your time today. before we go, a quick check on shares of southwest airlines which are higher today, after elliot revealed a stake of $2 billion. the activist is calling for ceo bob jordan to be replaced and the board overvalued. acn hwest up almost 8% and o trk for the biggest daily gains since november 0620. that does it for the exchange today. tyler is getting ready for "power lunch" and i'll join him on the other side of this break.

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ounces of gold equivalents. permits to mine zero debt with only 10.73 million shares outstanding and a portfolio of world class american strategic metals assets. u.s. gold corp, join the golden age. good day, everyone. welcome to "power lunch." alongside kelly, i'm tyler mathson. glad you could join us. as you can see, the markets are a little bit higher, about .08%. the s&p 500 and nasdaq, a handful of points from record highs. but today, it is all about apple. and ai. the company's worldwide developers conference under way. it is seen as apple's big chance to show off the plan force ai, which we haven't heard