green in a red tape, executed in the gap fill. i'm not long, but i'm watching. >> one more quick look at the markets. we saw markets turning red, the nasdaq fractionally lower. that's going to do it for us. "the exchange" start -- we don't need a co-host. it starts right now. ♪ ♪ >> thank you very much, frank. welcome to "the exchange." i'm kelly evans. here's what's ahead. ppi coming in much softer than expected. jobless claims, the most in ten months. in today's data more noise than signal that something is about to break in the economy? and sam lessons says wwdc shows apple is being smart with ai and a serious warning sign for openai. he's here to explain that. as shareholders vote on whether musk should get his pay

approval, we talk to one shareholder. it's trading at $183 right now. let's begin with the markets. the dow now tracking for its fourth negative day in five. i told them i would be here, i did it. the s&p also in the red by a couple of points after its first close above 5400 ever. the nasdaq had been in the green, then just dipped into the red after hitting a fresh intraday high. flirting that the territory right now. yields are falling for the third straight session. the ten-year after the data this morning, the lowest april since april 1. we are at 4.25. there's the two year and the 30-year. we'll tell you what demand was like in a few moments. shares of gamestop, they're up about 8% today. the latest headline around the name is the annual shareholder meeting was disrupted by computer problems today when servers crashed due to

overwhelming interest. now, let's begin with the economy. that data showing inflation and the job market cooling at the same time. produce prices dropping 0.2 in may, much softer than expected. year on year ppi rose 2.2%. up 2.3% from a year ago. it was well below expectationing. jobless claims up to 240,000 last week, the highers level since last august. chris rupky warning -- >> let's talk about it with dean mackie, chief economist, and cnbc's stove eve liesman. deep, are you worried the jobs market is cracking? >> no, i'm not worried about that. the jobless claims numbers are volatile week to week.

last week, 272,000 jobs gained. that, i think, is more important than one week in a jump in jobless claims. >> steve, do you think the fed will look back at this and say maybe we should have done more in the meeting, talked about two cuts and so forth? >> i'm sort of with dean on this for the moment. there is some holiday stuff in this number that might have messed us up here. we have been in this range, kelly, and it looks 240 is the top of the range, 200 is the bottom. i don't usually get worried about the jobless clams until they're in the 250. but if you didn't put up that comment, i was going to. my concern is from a different standpoint. it's not necessarily weakening demand, it's shrinking profit margin, which might be coming down. if you think about a small business owner, he wants to protect his or her income. what would they do?

that's where you start to lay off people. not necessarily because demand is weak, but because you're trying to protect how much you're bringing home. that's one concern i have. i do believe we're in a period of time when prices begin to roll back, at least partially, and some of the profit margins come down. >> so at the same time, dean, this could be a positive development. the best case scenario, if we ignore the jobless claims and say it was a fluke, all we know is that consumer prices are cooling, that's relief for the economy and for profits. >> that's right. i think there has been good news this week on the cpi and ppi front. we'll see that later this month with the core pce number. that's what the fed needs to see. they need several months of these types of numbers before they're willing to cut rates. so i do think inflation coming down is a positive story for the economy, because it eventually will allow the fed to reduce rates. >> on a side note that's not so much of a side note, yesterday chair powell referenced that the

payroll data is overstated, and there's been some back and forth on it. we know that payrolls could be revised down 60-k last month. goldman is saying no, no, don't trust the quarterly claims data, because unauthorized immigrants can't claim them. so the first rate of payrolls is closer to the truth and we can trust the 272. which camp are you in, dean? >> i think both arguments can be true. we always get revisions to payrolls due to the usual sampling errors, et cetera. so it would be shocking if we did see some downward revision in the direction where the quarterly census is telling us. at the same time, that is an important factor. one to have dominant things over the last couple of years has an an increase in immigration flows, important for labor supply increases. that's allowed the economy to run hot without overheating the labor market. so i do think that's important to realize that because of that

factor, revising to the quarterly census numbers might make the numbers less accurate. >> i find that fascinating, steve. imagine trying explaining we reported 250,000 jobs a month. no, no, that's under 200,000. that number might be misleading and could be 280,000 if you include unauthorized workers. >> that's a good reason to step back and maybe not think about either your investment decisions or your monetary policy decisions with quite the precision that people are looking for. in general, kelly, you can say the job market is pretty strong. 272,000, maybe it's 225,000, maybe it's 350,000. it's in that range of being pretty darn strong. on the other hand, what has concerned me a little bit is the unemployment rate has been ticking up. i don't know if it's ticking up to a normal level and it goes this way. we i was surprised with a lot of

the estimates of the federal reserve. among them, they have a 4% average year-end unemployment rate. we're already at 4%. do they not see weakening? again, that 2.8%, which i understand after powell explained it to me in the press conference yesterday, has a lot to do with the base effects rolling off of lower numbers in the past, not becoming part of the future calculation. i get that. but how do you signal that -- do you or do you not expect further improvement in inflation? >> let's get over to rick santelli, tracking the 30-year bond auction that just went off. how did it go, rick? >> well, all you need to do is look at a 30-day intraday chart. markets have moves. it doesn't have a lasting impact. this particular auction went extremely well. back-to-back as as in apple. a yesterday for the ten-year. today, an a for 22 billion

reopened 30-year bonds. so the yield was 4.403, substantially lower than the one issue was 4.418, which means lower yield, higher price, government is the seller. that is a good thing. the bid to cover, 2.49, meaning there were 2.5 times more bids than actual securities for sale. that was the best since june of '23. all the metrics were good. another outstanding metric, the dealer takedown. 13.7%. ten auction average is 16%. that's the most aggressive takedown since august of '23. so those 22 billion 30 years found homes. it was a good auction. ten-year was 39 billion. a good auction yesterday. what does this mean? does it change the metrics? it doesn't change the metrics, it just means you have to tune in at every auction, every auction's half life might be no

longer than my spot here on tv. but the cumulative effects are important. these two auctions went the other way. there they're some of the best back-to-back treasury auctions that we have had in a while. and right now, 30-year yields are on pace for the lowest yield close since the 28th of march. back to you. >> rick, thank you. now back to the panel. dean, we're well off the highs. let's just take the 30-year, over 5% in november. so we're well below that level, but we are nowhere near where we were a year ago, which was still about 3.90. in general, with bond yields, what is the lasting significance of the levels we're seeing now do you think? >> i think what's happened there is there were a lot of recession periods last year. those were not realized, rates went up. now they have come down, so as people are thinking inflation is going to be coming down and the fed is going to be cutting interest rates.

i think that rates are at a level right now where they are restricting activity in the housing market. they are leading to some effects in slowing the economy. but what we are seeing clearly is the economy is strong enough to keep growing at a solid pace despite that. so that's the bottom line from my perspective. >> do you -- dean, listen, i remember last year when -- we all remember when claims started rising, they rose all summer long only to come back down again. so no one wants to jump to conclusions this time around, but you wonder if the expansion has overstayed its welcome. at some point -- like steve said earlier, the unemployment rate is already at 4%. there are some things now that feel like the tide might be turning in a more significant way, no? >> there's a couple of things that keep me in the camp that we're not in for a substantial slowdown. net worth is higher than any point in the last seven years, so households are wealthier than ever.

corporate profit mcient margin levels are at the highest levels since the '60s. so household and business finances are in good shape here. that's not an environment where we would typically see businesses have a great deal of upheaval. so i don't think we'll see large-scale layoffs any time soon. >> steve, don't you feel better talking to dean? >> always. i wanted to jump in and make a comment about rick's report, which is it seems to me that the "apocalypse now" that i predicted from the amount of bonds we are trying to sell is either postponed or off. what we might be learning, and i don't want to make -- jump to too many conclusions. in the context of low and stable inflation, in the context of a low and stable federal reserve monetary policy, we can sell the amount of bonds we need to sell at these levels at reasonable prices. and so i'm a little more relaxed

today, having gotten through -- from talking to dean, but also having gotten through the last two bond auctions that went quite so well. and i think you can go back in the records, and you would be hard pressed to find two as in a row from professor grumpy santelli in chicago. >> he won't like that moniker. >> you know what i mean, not grumpy, but hard as nails when it comes to grading the bond issues. >> he's a tough grader. even at these levels, how much of a problem will it be for the deficit? i promise not to leave on a sour note. i'm going to leave it here with everything is fine toer a day. dean and steve, thank you very much for your time. let's get a quick market flash on broadcom now, hitting a new all-time high after posting a big earnings beat on strong demand for ai chips. and the company announced a 10 for 1 stock split going into effect july 15th. remember, just a couple of weeks

ago, we spoke with jerry woodard, highlighting broadcom as a candidate for a stock split. companies will look at the performance and like what they see. he also highlighted service now as names to watch. if you include today's move, broadcom is up 19% since we had this chat. the semiukter etf pushing that to a new all-time high. sticking with ai and a name on our next guest's radar in august, he said oracle's database would give it an edge against others in the ai space. fast forward to this week's earnings report, including a deal with openai and oracle is up 33% year-to-date. so we'll give them a little victory lap and get his thoughts on the market. let's welcome back charlie. charlie, well done, well done. >> thank you. thank you for highlighting that pick. they haven't all turned out that well, but oracle has -- one of

the nice story where is it worked for the reasons we said it would. we do believe that oracle has an advantage with the data software that it controls. ai is all about data. ai is all about looking at patterns in data and computers finding those patterns. but ai is not thinking on its own. no computer is thinking, it's analyzing data. and oracle is the company that has the data within companies, and it's really -- it's not helping you write a better paragraph that's going to be the profitable future of ai. it's companies analyzing their own experiences and becoming more efficient through their data. >> absolutely. it feels like it's going to be the read-ups of the cloud, kind of a big move like that. for those who wish they had gotten in the first time and wondering if they should now, what would you tell them? >> it's not a table pounding buy now. it would have been better before when it was more like 15 times earnings. now it's more like 20. and 20 is what i would call a

fair price for the growth prospects that it has. it's trading a lot cheaper than a lot of the other ai plays out there, a lot of the other great software companies. so let's call it -- if one is a table pounding buy, it's extremely cheap at 1 and 10 is overpriced, let's call it a 4 today. >> do you have any other 1s you would like to bring us and are you looking at the rise of ai or elsewhere? >> elsewhere. it is extraordinary what's going on in commodities, in two areas. housing related and building product stocks and then energy related stocks. the price of oil has hung in there at high 70s, and companies like apache, apa, are going to make a lot of money, right now trading at less than five times earnings. there is a sense in oil stocks that the world is going to stop using oil and we just don't think that's going to happen, as india and china and the

developing world grow, they're going to have increases in demand in oil that will last a long time. and frankly, it's getting harder and harder to find reserves. there's a lot of talk these days about a glut of oil, and we think that's wrong. >> i was going to bring that up. we are hearing talk about gluts. the only other thing i would be curious, so oracle had a clear catalyst. in earnings they talk about this stuff, and boom, the stock takes off. this is the kind of environment. what is apa going to come out and say that's going to ignite a similar kind of move? you know what i mean? >> yes. and that is a good question. off often, companies that don't have that catalyst stay cheap for a long time. in this case, i do think it's suranam, a discovery they made with totale, and it will produce in about 18 months. when they start producing that oil, you'll see much better cash flow and much better profits. secondly, they have a natural

gas contract for liquid natural gas that is just getting started right now, as that starts to kick in, you'll see much better cash flow. so those two stacfactors are go to be the catalyst. >> if that ends up being a catalyst for apa, i would have to let you wear a track suit for the victory, because that would be remarkable. charlie, thank you for your time today. great to see you. >> thanks, kelly. coming up, we mentioned apple. they're on pace for its best week in two years. and they're showing a golden cross technical pattern where the 50-daybreaks above the 200-day. after the break, we'll ask sam lessen why apple deserves this rally. plus, coinbase, shares are down since april, on pace to snap a five-quarter winning streak. and what's the next catalyst?

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welcome back to "the exchange." can't get over this apple story. shares up are today's declines, still about 8%. only down a quarter of a point, after worldwide developers conference on tuesday -- monday, thank you. my next guest says apple

deserves the rally because they are well positioned and being smart with ai. joining us is sam lessin and steve kovak is here, as well. sam, really the excitement is this two-day, 12% move. tuesday and wednesday. some say it's the company buying back shares, it's not fundamental, you know, maybe don't believe it. what's your take? >> look, i mean, i've been saying for two years that the ai boom is going to benefit tin c -- the incumbents. the big question has been apple, you know, siri is way behind in a lot of ways. what this developer conference showed, you know, they're not distracted by vision pro. we got to look at the big picture, and apple fundamentally has always been well positioned for this. they came out and showed they've been take thing ai boom seriously and deserve the bump in prices they got.

>> fair enough. so i was trying to explain to my family what happened this week, and, you know, when openai came on the scene i could say check this out, look what chatgbt can do, it can write a poem and so forth. what did apple say? like siri is going to be better. it took me longer to explain. so i wonder if that -- it didn't have that whiz bang wow moment, unless it was for what's happening on the inside. >> yeah, i think it did. i agree with you that it's a little harder to explain. but at the end of the day, there's -- what is thereal advantage that apple has? it has distribution, devices every, where it also has all of your data. so what they previewed in this developer conference is that all of a sudden the series going to do the 95% of ai driven tasks that matter every day, which are far more butler-like. when is this flight coming in, how is this happening, the practical things that you use, and i think it's going to be a

big opportunity. the other thing to keep in mind, we've been saying all along, people talk a lot about the technology differentiation. this is going to come down to who has the data and the distribution. people are lauding this as a great deal for openai. i don't see it. i see apple just put them in a little box, and that is enormous that apple will be the tip of the spear where the higher end stuff goes. so this is an incredibly good set of announcements for them showing they haven't been ignoring this. they're not just the only giant that hasn't taken ai seriously. there's really exciting previews of valuable, useful real pr products. and my god, are they well positioned to control the ecosystem long-term. >> steve, react to that. >> yeah, this shows their dominance like just full-out. the bloomberg reported last night that basically openai -- apple is paying nothing to bring

openai and chatgbt on, at least at first. basically saying our user base is so powerful and wealthy, you guys would be ridiculous not to be part of. this it will be interesting if they said google is in talks with similar deals if google takes those, as well. what also came out last night, openai is going to have to either eat the cost or work with microsoft, because while so much of what was talked about on monday this is apple, this is private, as soon as you use one of these other chat bots, starting with chatgbt, likely gemini, a number of others by this time next year will be there, it will go up into whatever cloud those services use. in this instance, it's microsoft. it's all microsoft. any time you're using chatgbt within the ios ecosystem or mac or ipad, it's asking microsoft. that costs money. either microsoft or openai has

to pay for that or openai has to take credit from the azure credits it has from microsoft to do it. so it's a really complicated picture there. >> go ahead, sam. >> let me go a step further. this is literally the opposite of the deal that google has with apple for core search. this is the important thing people have to really deeply understand about the different power dynamic here. in the case of google and apple at the core, google is able to pay anal bloody fortune every year to be the exclusive provider. fundamentally, the business model is so strong that they can make that an economically rational deal. this is the opposite. openai is providing a service for free in a small box, with full knowledge that apple can go to any other partner. and instead of it being roi positive activities, they're going to lose a lot of money on

every one of those queries. so you have to believe that the data apple is passing to openai is so valuable for this deal to make sense. >> i'm so glad you said that. quick last question. so the only other way this makes sense for openai is if openai's product is truly superior. steve, quickly from both of you, you know, apple, in order to be a good butler, it has to be able to be good at what it does, and to not have the user send it to chatgbt. quickly first to you, do you think they're going to rise to that challenge and have the time to do so that they can push openai out of the way and no one can notice? >> i can see down the road apple wanting to do it all themselves. they can't. at the event on monday, they said openai is not just the market leader, it's the best of these ai models. that's why we're partnering with them first. they say almost the same line about google when it comes to search. so maybe they keep that forever

or maybe they do it on their own down the road. >> sam, last word. >> look, at the end of the day, you can't think of this intelligence boost in a single thing. the reality is that apple will be the best butler in the world. iq 100, knows you personally. gets 95% of the workload you want done. they'll off load your queries somewhere, so the question is are you going to have a better business model than the other one so that they can afford that dominant position? not clear to me. >> great point. guys, thank you both. coming up, elon musk has the votes, or so he says. tesla chair shares are up 4% to. any way, what's next? we'll ask long-time tesla bull nancy tangler. she voted in favor of it, after the break. stay with us. ♪ ♪

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welcome back to "the exchange." it's that time of year, oh, yes, we're less than a month away from the reveal of this year's top states for business. and scott cohen has a look at how they're being scored this year. ♪ ♪

>> okay, here we go. >> with federal money flooding the states, and the very nature of work influx, it stands to reason that infrastructure is front and center in this year's top states study. >> we need to make sure that the condition of our infrastructure is not a limiting factor on growth. >> which look at which states are offering shovel ready sites for development, where is the most reliable power grid and the least risk from climate disasters, where can you find the best access to customers connecting virtually? this year, infrastructure is worth 17% of a state's score, followed by workforce. which states have the best economy? where is the top quality of life? we look at the cost of doing business, technology and innovation, including which states are leading the way in

artificial intelligence. >> the state that's investing and allowing for people to go either into industry or into government to be able to help make a difference is the state that will succeed. >> we measure business friendliness. we grade education, access to capital, and the cost of living. if you've been following this since we started in 2007, you know that those categories are the same year to year, but the weighting is changed based on what is important. never havewe had infrastructure at the top. also taking a deep dive into cost this year, and also foreign direct investment. states are talking about it in a way i haven't seen before. we'll look at which states the world is betting on. you can read all about our of study in the weeks ahead at topstates .cnbc.com. jowl 11 is the big day. >> we've had the "inflation reduction act" and all this money being disbursed, things like that where states are in competition. is that heightened and how does infrastructure play into that?

>> infrastructure is huge this year. it's interesting, when we started this, it was all about ince incentives, then it became about workforce. this is a different year. i haven't seen it change this way, and a lot has to do with the trillions in government money, but also this is what companies want to do, they want to build fast, and we'll look at that into business friendliness area of that. infrastructure is huge. >> do you know who's won already? >> i do. >> okay. so do you think the list in general is going to be very different from the past several years? >> there's some interesting changes, let's just say that. because the way that things have changed. the fact that -- think about it, not every state is great in infrastructure. every state has attributes. >> don't we know it. >> and we take this broad look at infrastructure. so it's broad band, sites for development, it's shovel ready sites, as well as roads and bridges and everything else. >> scott, thank you. we appreciate it.

let's get to tyler mathisen now for the cnbc news update. >> great to see scott in the house. joe biden announced today that he will nominate a markets regulator christy goldsmith romero as the new chair of the fdic, who will replace the current chair after an investigation found a toxic work culture at the agency. tyson food's cfo suspended today after he was arrested on drunk driving charges. it comes about 18 months after john tyson was arrested for criminal trespass and public intoxication after police found him asleep in someone else's house. tyson foods has named an interim cfo in his place. and tennis star rafael nadal will skip wimbledon to prepare for the olympics. he said he didn't want to change surfaces and opted to enter a

clay court tournament in sweden. the tennis competition will be july 27th at the site of the french open, where nadal has won a record 14 titles on the red clay at roland garros. >> now that we know he's playing doubles with alcaraz, whatever it takes, i want to see great matches for those two. >> they will certainly be the sentimental favorites, and maybe in doubles the overall favorites, because alcaraz is probably number one or two in the world right now. >> tyler, see you soon. up next, what's the next catalyst for coinbase? we'll ask brian msong aartrin rare and exclusive interview, that's next.

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welcome back. shares of coinbase are up over 300% this year, and what ice been a major year, seeing increased volume since bitcoin etfs began trading. bitcoin, back toward almost 70,000 level, breaking above the pandemic era highs. but what does the future hold for crypto? kate rooney is with coinbase ceo

brian armstrong. kate, take it away. >> thank you so much. brian, great to be here. this is very much a wall street crowd. there's a lot of suits here. i do want to start with kind of the temperature from financial institutions. what are you hearing in terms of the demand and the acceptance of crypto from this crowd? >> yeah. we're here at the state of crypto summit, the second one that coinbase has hosted. the vibe is good here. 56% of the fortune 500 are doing something on chain. when we survey executives from the companies. the biggest companies in the world, whether it's black rock, jpmorgan doing things on chain, google cloud is accepting crypto payments. so i think crypto is here to stay, and the biggest companies in the world are all integrating it. >> what has the demand been beyond bitcoin? there's a general acceptance that bitcoin is the oldest,

might be the most stable. is there demand for the other trillion dollar assets out there, or is it still a reputational risk? >> the bitcoin etfs got approved, and bitcoin is the original crypto asset. so i think it's going to be a key constituent for a long time. it's digital gold. but crypto has become many different things. we have stable coin now, which are helping with medium of exchange. we have people building lots of new applications on chain with content creators. so coinbase supports a couple hundred different assets. i think there's going to be a couple of chains that are popular and millions of different tokens. >> i was going to ask you about the ability to scale ethereum. what kind of demand are you hearing? >> well, base is helping block chain scales. so the original block chains that came out, they were a

computer science breakthrough, but they were a little slow and experience. but now there's a real scaling story. it's like when the internet went from dialup to broad band. we have started to see massive inflows, and what's amazing, cathy wood was staying this earlier, even with the great inflows today, the major sources that could be there in the future haven't turned on yet. morgan stanley, the crypto etfs haven't been integrated yet. so the futcher is bright, and bitcoin miners are only putting out a small amount of supply, so demand is exceeding supply. >> you spent a lot of time in washington, d.c. you spent a lot of time with senators. there's been a lot of headlines about former president trump embracing crypto. what is your take on that, would a trump presidency be better for coinbase and the industry? >> voters need to make up their own mind, but they need to get

educated on the crypto position of the different candidates. one way we have tried to help that happen is a c-4 where over 1.1 million voters have raised their hand and said we want to elect pro crypto candidates. so d.c. is waking up to the fact that this is a bipartisan issue, and voters care about it. you know, some of the early candidates in super tuesday elections that were anti-crypto lost elections because of it. it's just bad politics to be anti-crypto. the voters want this to be here with clear rules. part of why congress needs to pass legislation. >> so you're not endorsing a presidential candidate? >> not at this point. >> you said if you want to be the go-to app for banking, that would peg you against paypal, a square. what types of products would you add in the banking space and would you ever get into stock trading? do you see yourself becoming

more of a robinhood or a paypal equivalent? >> in the banking world, they have regulatory requirements. we are not intending to become a bank, but we are intending to become people's primary account. so havingmobile money on your phone, your phone is your bank account in the future. there will be a whole generation of kids that grew up and won't have a bank branch on the corner in the way we did growing up. their phone will be their wallet. that's how they get paid and live their lives and borrow money when they need to. so that's the opportunity for coinbase. we have the beginnings of that with coinbase cards, we have usd coin. and in the future, you can just imagine us adding other features, like a wire or bank transfer, and that can be your primary financial count. >> we'll have to leave it there. thank you for your time. kelly, back to you. >> thank you both. we appreciate it.

we'll take a break. coming up, my next guest says it's hard some days to be a tesla bull, but today she voted yes to elon musk's pay package. she joinus ns ext to make her case as we await the final tally. fits and retirement savings. voya provides tools that help you make the right investment and benefit choices. so you can reach today's financial goals and look forward to a more confident future. voya, well planned, well invested, well protected.

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welcome back. shares of tesla are up 4% ahead of its an you shareholders meeting, elon musk sweetweetings set to win share holder approval. >> my next guest is a long-time tesla shareholder and voted yes to the move to information and the pay package. let's bring in nancy tangler. nancy, i don't know where to start with this one. is it true that this isn't

final, that the delaware court might have the last say? >> yes, it is. but i think symbolically it's very important. if you have courts second guessing the boards of directors, then we could be in an environment where, you know, they come back, the court say that dividend payment is too big, that share buyback is not justified. so the bones should be picked with the board, but he delivered on all of the initiatives and the financial targets, and so for most americans, and that's why i think you saw the individual investors really pull this over the line. for most americans, a deal is a deal. and i think that's an important message to just reinforce at this time. >> i think that's right. the fact that it seemed ludicrous at the time that he achieved it, it's wonderful. that's the whole point of sort of putting all your chips on this. but i'm trying to think back to reason why is we would think this wouldn't be legitimate, is it simply the size of it, maybe there were conflicts of interest

with the board or things we know now we didn't know then? what would make you pause before you say i would be a yes? >> well, i think one of the things that would cited was that too much control to one shareholder. but that sort of fails in the face of the dual voting shares that you have at meta and google. so the only way that investors can make their opinion known was to vote with their feet, which is what investors did when mark zuckerberg pivoted to the metaverse. so i do think that, you know, yes, are there conflicts on that board? less than there used to be. i mean, that's important. but i think that's where the question lies, not is the pay too much? and that's what is new. we don't second guess athlete pay. i mean, lebron james has made i don't know, $500 million since his career in the nba. is that too much, not enough? you leave it to the market to make that decision.

and shareholders have made a lot of money. i think elon musk is more entertain than the nba and he's made his investors a lot of money. >> listen, i defer a lot to entrepreneurs, because i don't want to have to start tesla. it sounds like a pain. i don't want to create however jobs he did or increase market vae from $69 billion to $159. i don't want to create revenue miles. it's insane that he actually went out and did this. >> yeah. >> it was known to shareholders all the time. the targets were public so they are in the stock. it's not like this fell out of the sky and people said, wow, we can't believe this. what do you think happens now? even with that said, there's possibly an overhang on the stock. where are we now? >> this is a guy who doesn't take a salary or a bonus so the options will be diluted if the court ratifies it. they will continue to buy back shares. it's a company where, you know, the last two years of earnings

have been abysmal so earnings growth is expected to reaccelerate next year and the following year. free cash flow is expected to double from this year to next, so i think you pay attention to the fundamentals. it trades as an ev company, as you know. our view is it's much more than that, the mega battery pack division is electric utility grade batteries. that's growing faster and is more profitable. you've got a.i. and the autonomous initiatives, and now it seems those will all stay under tes larks and that's why the tock is acting with relief today. >> i think the bigger problem for tesla is not elon musk's pay. i think it's competition from china and elsewhere, and that's something you'll have to face down, but if you can pull all the levers you name they will be all right. nancy, appreciate it. nancy tengler with laughler tengler. still to come, president biden is getting ready to address world leaders at the g7 summit in italy as former president trump is over on capitol hill addressing business leaders and republican

lawmakers. we have the latest on both, and we'lbrg l inyou remarks from president biden as soon as he speaks. stay with us on "the exchange." ♪♪ citi's industry leading global payments solutions help their clients move money around the world seamlessly in over 180 countries... and help a partner like the world food programme as they provide more than food to people in need. together, citi and the world food programme empower families across the globe. ♪♪ (♪♪) (♪♪) what took you so long? i'm sorry, there was a long line at the thai place. you get the sauce i like? of course! you're the man! i wish. the future isn't scary. not investing in it is. nasdaq-100 innovators. one etf. before investing, carefully read and consider fund

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welcome back to "the

exchange." here's a live look at g7 summit in italy where president biden is set to speak any moment now alongside ukrainian president zelenskyy. as we wait for him to take the podium, let's bring in eamon javers with what's at stake. >> reporter: hey there, kelly. president biden and his fellow leaders are speaking about using proceeds from russian banks and back a $50 billion loan to continue the fight against russian aggression. the u.s. is prepared to commit the entire $50 billion, if necessary, but the expectation is that other nations will step forward as well. there are about $300 billion in frozen assets held in the west. some americans have argued that western countries should simply confiscate all of that russian murn and send it to ukraine to finance the war, but european nations appear reluctant to go that far. among their concerns are driving away capital from other regimes around the world that might fear asset seizures of their own at

some point in the future and a fear of an equivalent russian response against russian assets in russia. earlier we saw president biden at a global infrastructure event with two business leaders who are members of the business roundtable in the united states and if when the scheduling had been different, could have been in the room with president trump today here in washington, d.c. that's microsoft ceo nadella and blackrock ceo larry fink. president biden is expected to hold a joint press conference with president zelenskyy shortly. it's a high-stakes moment on the global stage for both of those two men, and we'll take that live when we see it, kelly. obviously a global split screen moment here between president biden on the world stage and president trump here in the united states on the domestic political stage. >> was it up to the ceos, i suppose? were certain of them invited on the italy trip and others volunteered or what not? talk about the difference in scheduling because the group we're going to see in italy and the group meeting with ceos and republican lawmakers on the hill today. >> well, my understanding from

talking to staff with both sets of ceos, the group in italy was pre-set a while ago. it's not as if they were making a to significance they would rather be with biden than trump. we know there's other shows going to the c.t. event. not all will have been invited to italy so it's sort of a mixed bag depending on each ceo's individual situation. >> we appreciate it very much, eamon javers. before we let you go, anything else to expect on top of the reporting of this ukrainian aid package in. >> the ukrainian aid package, obviously zelenskyy and what he says about that package if he expresses gratitude or pushes western financial institutions to do more in terms of confiscating the russian assets, that's something to watch for, and here in the united states we heard from former president trump speaking with republican senators in washington, trump saying this is a nation in decline and citing inflation as one of the reasons why. kelly. >> eamon, appreciate it very much. that's it for this hour.

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welcome to "power lunch," everybody. alongside kelly evans i'm tyler mathisen. glad you could be with us. we're waiting to hear from.who is holding a joint news conference shortly with ukrainian president zelenskyy. we're also waiting to hear official results of the shareholder vote on elon musk's pa