an undervalued free cash flow story here. >> josh? >> staying long pfizer. >> thank you. brian? >> oracle. double digit revenue growth. >> mr. weiss? >> textron. >> i'll see you at 3:00. "the exchange" starts now. thank you very much, scott. welcome to "the exchange." i'm kelly evans. here's what's ahead. call it the meeting before the meeting. consensus is the fed will signal tomorrow the first cut is coming in september, but our guest says markets are too focused on that and not enough on what he sees as the biggest risk right now. he's here to explain. big tech's big week continues amid as selloff, with microsoft reporting after the bell. nvidia down a trillion dollars. one guest says microsoft will be the first real test of real ai

metrics in particular. and the short list of potential running lists of vp kamala harris is growing. brian schwartz has new reporting and how it could change the race for the white house. let's start with the markets and dom chu has their numbers. how is it looking? >> they were green earlier on today, just like your outfit and my tie, but we've now slipped toward session lows at this point. the dow is still clinging onto some marginal gains, up 22 points. but the s&p 500 is at 5402, down nearly 06 points. this is the lows of the session right now. at one point today earlier on, we were up 26 points in the s&p. but 5402 is where we're at. down 1.25%. the nasdaq is at 17,017, that's down 353 points, down two percentage points. it is mega cap technology leading the way down there. many of the biggest names out

there are much lower on the session right now. all of this the setup as we head towards microsoft's results a it have closing bell. keep an eye on big tech. pharmaceuticals, they're both in the red. fizer to a lesser degree. merck down 9% to 10%. some of its outlook called into question maybe some aspects of what the future could look like there and some concerns about its hp vaccine. and pfizer shares, a beat there. they raised their outlook, better sales of some covid and non-covid treatments and medications. much more on that story later on when the ceo of pfizer joins us here on "the exchange" just a little later on this hour. the stock of the day for us is jetblue, flying high, please forgive the pun. up 17% right now, surprise profit, better than expected revenues, and they'll defer some capital spending. all of that helping jetblue.

and jetblue's ceo is going to join "closing bell" later on this afternoon. kelly, back to you. >> it will be great to hear from her as the company tries to fix itself. dom, thank you very much. we're just over 24 hours away from the fed decision, and while it's expected to be the meeting before the cut, there's some division over how many cuts we'll see before year end. steve liesman has the results from the latest fed survey. mr. liesman? >> good afternoon. rate cuts are coming, just not this meeting. there's increasing confidence the fed will cut in the fall. of course, a new focus on how far they go over the cutting cycle and how quickly they get there. 81% in our survey say the first cut comes in september. 86% say the second cut comes in december. what's mising? no november cut. the futures market has not priced that in. march 2025 is when quantitative

easing ends, saying forget politics, mr. powell, do what you need to do regardless of the election. let's do a little math here. the current rate is 5.38. the average for this survey is a 4.91 fed funds rate by the end of the year. so call that 2.25 basis points. then 3.94 by the end of next year. so a gradual pace of cutting. and then the long run rate, 3.1. well, over the time period we're talking about, the fed remains relatively tight, relative to the perceived long-run rate. steven nicholas writes -- >> okay. so fed cuts, 36% say the fed cutting too late is the most

likely outcome. but 36% say the fed gets it right, with 27% saying they will cut too soon. but not much basebadebate about they should do it. perception of political interference, 73% say no. and just 23% say yes. on this show yesterday, pete also participated in our survey and writes in -- >> that's opposed to a rate cut that happens because there's a recession, and they will cut more deeply. expect the fed's statement and the fed chair tomorrow to provide some limited guidance that there is more confidence as inflation is declining and rate cuts come down. but he's not going to show his whole hand how far enough it will be, because there's more data between now and september. >> our next guest says the fed

will signal a rate cut in september. joining us is paul mccallie, currently a professor at georgetown school of business. paul, great to have you here on a day like this. so let me just try to unpack this for a second. today of all days, this divide between what's happening in the market and what's happening in the real world. market selling off, especially big-cap tech. those areas, you know, they were down a trillion or two from the peak. but the data this morning, job openings were good. consumer confidence was good. as someone who's been bearish on the economy, i have to acknowledge that maybe there's more staying power here than i assumed. i laugh because i get on financial twitter and people say more rate cuts, but i'm thinking the numbers we're getting on the real economy show that it's holding up remarkably well. so curious for your thoughts here. >> i think the economy is doing

exceedingly well. in fact, thinking about it really we're as close to fulfilling the fed's mandate as we have been in a long, long time. we have a two handle on inflation. we have a job market that is sturdy. we have an overall good economy. and essentially, the fed can declare that the balance of risks have come into balance. they've been saying for a long period of time, we're moving towards balance between maximum employment, but essentially the data that you're speaking of and the data more broadly are saying we're in balance, which means that it's time to readjust, recalibrate the policy rate back towards neutral. so i think the fed's not just in a good place, but pretty close to a delicious place. >> it sounds like you're echoing

julia coronado who say if they want to keep it in a delicious place, they have to cut rates. let me throw up this quote from steven stanley this morning who has an interesting take ahead of the jobs report. he says -- >> this was the discussion we were having the other day, as well. is potential growth higher than expected in other words, is the economy not growing fast enough to keep the unemployment rate from growing? but maybe, what happen it is friday comes out and the unemployment rate falls? >> kelly, you're not old. you don't look old, but you talk a little bit like an old person. you're talking a little bit like

a person who came up and only understands fed rate cuts in the context of the fed cutting to a recession. the economy does not have to be in the toilet for the federal reserve to cut interest rates. let's go back and review, as we say in bridge, the bidding here. we're coming up on one year where the fed raised rates to 5.38% in order to staunch a surge in inflation. those interest rates, which are far above how much above we can debate any neutral rate have had 12 months to work into the economy, and we're seeing some signs of that. if you want to have a good economy next come december, come next year, you've got to adjust the rate. i'm very much in the peter camp of tweaking. if you only know, and i'm not saying you only know this, kelly, a fed that cuts very quickly, slashes rates in the face of recession, it's hard to know a fed that can tweak the

interest rate in order to get -- if you put up the chart i had up earlier, you see that even over a period of a year and a half from now, the fed will still be 0.8 nominal percentage points above a neutral rate of 3.1%. over that entire time, at least theoretically, the fed will be fight. >> i feel like this is a therapy session, paul. but i think there's a lot of us that millennials, we came into the market in 2007. so at that time, i remember thinking, gee, it's looking better. and when they cut, yeah, and i am like a hammer looking for the nail. it's going to be another great financial crisis, and it's not. why is people like steve saying look at 1996. i'll put the question to you, and steve is quite right about this, how does the fed message? say the unemployment rate falls and the job market keeps growing and consumers are still mad about inflation, even though we know that's the story more from

the past than the future, how does the fed message rate cuts in a decent economy? >> i don't think you should put very much attention on what the unemployment rate's going to do on friday. it could be up or down a tick. it really doesn't change the fundamental narrative. the issue with respect to the labor market, it's gone from overheated, unambiguously overheated now to being in balance. you're seeing that in a whole mosaic of data that is in balance. so that's the good news. and the fed has been using forward guidance signaling that it will be doing this tweaking back towards neutral ever since, you know, the end of last year. and the market has taken that on board with a lot of volatility. so it seems we're coming to the time for the fed to validate its talk.

and i think that's what we're doing going forward is to validate what forward guidance has already done to financial conditions. it needs to do that, and there's also the reality it needs to bring down the short rate, even though the markets have already discounted it because small business and the lower half of the income distribution actually pay the policy rate. so forward guidance can't bring relief to small business and the lower end of the distribution. you actually need to have rate cuts. so that's the process that's going on. a post inflation normalization in the context of a labor market. >> steve, quick last word. >> well, i want to comment on your question to paul, because it really is very much a question of messaging. i think this is powell's challenge tomorrow, and it's

going to be his challenge over the course of what is expected to be a gradual series of rate cuts. we're really -- it's a bit like groping in the mark. eyes closed, trying to find where the floor is here, and where the right place is and keeping the market from pricing in too much financial easing. so i think you have your eye on the right challenge for the fed chair tomorrow. what he doesn't want to say for sure you're all getting a cut, or even down the road we get the dot plot in september again, and that's going to be another challenge for the fed. so this is not going to be easy and not going to be a straight line. it's going to be bumpy, but in general, the expectation is for rates to be coming down gradually as we grope for finding where that neutral rate is. >> this is not the period i thought we were going to be living through, so i need to get over it. gentlemen, thank you. appreciate your time. with the nasdaq selling off another 2% now, people are

asking if the ai bubble is popping. here with his top picks and to explain what's going on, michael landsburg. michael, i don't know if you relate this back to the fed on some level or if things got a little too rich and now we're experiencing a reset. >> i think it's a little bit of a reset. obviously, you know, a lot of ai stocks had a great run six months, a year. this is a typical process where we rotate out only sof sectors. it doesn't mean we're not positive long-term ai, but that's why you rebalance portfolios. i think we're going to get some fed action, but earnings drives stocks at the end oh of the day and that's what you'll see is stocks drive earnings and prices go higher. >> is that true -- obviously, you look at a merck or jetblue, yes, earnings drive stocks, no question. but for those following us and say this is it, the ai bubble is

popping, it's over, do you think that's what is really going on here? >> absolutely not. i think what's happened is you're having some deceleration from some of the rapid growth we had, and some normalization of the prices. if you're looking at kind of the -- how ai is basically taken over our vocabulary, it's gotten a little exuberant. but a lot of these companies are going to drive earnings going forward. so that's kind of what we're coming off of. with the internet itself and a lot of the things we saw, they have these fits and starts. i think that's what you got now. you're getting a resetting of some of those names, and some will deliver, some respect. it's a stock picker's market when it comes to ai. >> i know you have a stock picking event, you like stryker, arthur gallagher. when nvidia is down a trillion dollars, does that entice you at all? do any of the mag seven, which

are down as significant an amount, 8% peak-to-trough, any opportunities there, especially if earnings come in better than expected? >> obviously, a name like nvidia, we owned nvidia since may of '19. it had a great run, it's kind of corrected. i think when we get through earnings season, we'll separate the wheat from the chaff and see who is delivering earnings. if you're a long-term holder, you can look to pick up names on weakness. but it depends on the holding. a lot of people say they're long-term holders and hold for 20 minutes. that's an environment we have to be careful with, because we are getting some momentum taken out of there. and it's liquidity. you've had such a big run, so that's why we're looking at other names outside of tech to be able to give us some exposure, and still getting earnings growth that's a little more predictable.

>> we were just showing nvidia is down 6% today, down 15% in the past month. so it would have to fall more from here to get you more interested in kind of broadening the position, is that right? >> what we typically do is we rebalance. we trimmed our nvidia position about a month ago. that's something we do twice a year, and what happens is it forces us unemotionally to take profits when things get to be more than they should be in our portfolio. if it has a bad six months, we'll add to it back in january. what happens often times is some of these names, people get emotion and attached to them. at the end of the day, they're tickers. and we want to let some of them go when they're expensive, kind of trimming and adding to them when opportunities present. >> it is hard to be unemotional with -- with your money. michael, thank you for joining us with some other picks. we appreciate your time today. >> thanks, kelly. coming up, we'll hear from a

trio of regional bank ceos with their take on the health of the consumer. but first, microsoft reports after the bell today, and one money manager says it's the first real task for monetizing large language models. we'll ask her whether the worst of the broader tech pullback is over. >>hiisthexan." "the chge ts "e exchange" on cnbc. (♪♪) sofi is helping me get my money right to achieve my ambitions.

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welcome back. we've got a news alert on capital hill. emily? >> hey, kelly. the senate just passed the most sweeping regulations for big tech companies in decades with a package of bills that require more data privacy and other protections for users younger than 17. 91 senators supporting, only three opposed. senator ed markey said it was a k sign of rising concerns of tech companies on capitol hill. >> it's very clear, especially with the surgeon general's warning about the mental health crisis with young people in our country. everyone knows now it's time to finally take on big tech and to put these protections on the books. >> the package is made up of two

bills. now, one would ban targeted advertising to kids, limiting data collection and require that companies create this erase function to remove any information. the other bill would require platforms to mitigate -- microsoft and snap has backed that package. meta said the best way for parents to monitor kids is to require parental signoff. supporters are hoping the strong vote will speed passage in the house where the speaker said he needs to look at the details of the bill but he suspects it will have a lot of support. >> emily, thanks. speaking of big tech, microsoft is on pace for its second monthly loss of the year, and my next guest says it's the first real test of large

language model montization. joining me now is kim forest. welcome. what do you expect? >> well, i expect microsoft to answer one of my big questions is, will anybody or how many people will pay for access to large language models? and maybe we can figure out what problem they're actually solving using them. i don't think that second question will be answered, but that is something that drives every investment we make in technology, what problem does this technology solve? because we just don't like throwing money at technology in general. >> sure, it's interesting, emily just mentioned how meta breaks with some of the rest of big tech on this bill. they also break with big tech on their large language model. it's open source. mark zuckerberg insisted this is a better way to go. microsoft is, of course, going the other way. openai is making a billion

dollars a year off of access of its lom, but the question is how long? and what's the way that they monetize that? >> right. and i mean, i think it's interesting that they want businesses specifically to spend $30 a month per seat that they're paying for. now, i have no problem with microsoft in general. it is the tool kit for the knowledge worker, right? how can we do business without excel, word, and power point? we can't. but what is microsoft -- how is it going to make us $30 a month more productive? that's the real question, and they have to come up quickly with some industry packages that are precanned answers to that problem, how do i use this large language model to make my business more productive. >> broaden us out, kim, what's

working, what's not working, the selloff in -- i don't know if we want to call it ai or nvidia, but it is picking up steam. nvidia is down 15% from the highs and qqqs are down 8%. how are you positioning? >> well, i mean, i'm going to go shopping here relatively soon, because, you know, i saw it go up tremendously just on the power of a stock split. i mean, that was essentially what drove nvidia the month of june, which is ridiculous, right? nobody watching this channel that knows what a stock split is, is all in on that one. i think this is coming back a little more normal. but i also think a lot of people out there invested in momentum, which i don't -- that's not what we do. the other key is, a lot of people invested in technology where large language models i pose to you what problem do they

solve? and how much should people be willing to pay for that problem? nobody can answer that question, because we're so much inlove with, oh, watch me get this answer for some weird question. >> i'm a bit of a fan of the -- what do we call it, i've used them myself to be massively productive for tasks that are like write a letter of recommendation. i can give a prompt to do that quite well. generate an outline, there's always a book. write me an outline about -- you know, those kinlt kinds of thint save me some time. it still takes -- does it free up time on the margin? i don't know if you flip the question back to how you ask it, how that makes a microsoft and apple -- if i upgrade to sirri, with a new device, that's all apple really needs is maybe that's enough on the margin. >> well, we're talking now about consumers versus businesses.

and i think businesses, when they invest, they invest a lot. you know, they're going to train people to use this, a call center, let's take that. probably a large language model is tailored to whatever the question is that people are answering. it could quickly get them to a place, now, that's money that a business would spend to get their people more productive. i don't really care about productivity for regular people, because we are cheap. we will give away our information -- >> what about garden planning, are there -- like, i don't know, i don't know. >> how much are you paying for it? >> zero. >> there you go. you made my argument. thank you. >> yeah, exactly. i take your point. maybe at the end of the day, they find out a way to stick ads in it and it goes back to that old fashioned power house.

do you like alphabet before we go? >> i kind of do. i think they rule the world with respect to search. i don't really see them changing, even though openai apparently is coming after them. you know, they know what their customer base is, which is advertisers, and they serve that base well. >> exactly. and they'll do it until they have to come up with a different way. kim, thanks. appreciate your time today. >> thank you. coming up, pfizer hitting its highest level since november after blowing past earnings. after the break, we'll speak with the ceo about what's behind the big change. back after this. and disruptive to your life, posing a real threat to your family's comfort and safety. when the power goes out, you have no lights, no refrigeration, no heating or air conditioning. the winds are not letting up at all here. we're going to see some power outages. number one thing to prepare for is extended power outages. are you prepared? you can be with a generac home standby generator.

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welcome back. pfizer up a percent to touch its highest level since november after blowing past earnings estimates and raising full-year guidance as cost cutting efforts continue. angel la peebls joins us now with an interview with the ceo. >> hey, kelly. thank you so much. albert, thank you for joining us. i want to start with, you've beating your raise this quarter and the stock is all over the place. what more do you feel like you need to do to convince investors

that you can move forward beyond covid? >> we need to have some more levels of this success and execution. this quarter was amazing. we beat the topline. we had the growth of 14% in the non-covid business. we had for the first quarter ever since 2022, when our sales were hundreds of billions because of covid growth in general, and we neat the earnings by 14 cents, which is 30%. so it's not a small segment, it is a very, very big segment. and i'm very happy we were able to do it. but i think we should do the same in the third and fourth quarters. >> okay. one of the drugs that have did well this quarter was that migraine drug, but it's struggled in the quarter be fr this. what did you do to make that drug have a good quarter? >> look, when you acquire a company, always you expect the

first year that sales will not do as well as they were doing, because you pay representatives, marketing and people, et cetera. i remind you that the nertek was the second largest acquisition that we did. the first acquisition that we did, the largest acquisition, this is doing tremendously well. we are beating from the second quarter instead of going down the sales, beating for the second quarter our internal and external expectations. so everything that we acquired i think they are on a good track to deliver on their promise. >> albert, it's kelly here. is there anything you want to tell us about how -- i want to call it the glp-1, but the oral weight loss drug is going, any updates on that? >> yes. there is a lot of things here,

because it is a very large market about it. we told to the world what our -- one of the three molecules that we have in the clinic right now, was able to achieve a very good profile of making it to use once a day. it's an important thing, because it's more convenient. we are now in the final stages of optimizing the dose of the formulation, and if things go well, we'll do regulatory status next year. >> i feel like we're sort of enter thing new phase where people are talking about the growing obesity landscape and how these different drugs might play different roles. where do you see pills fitting into the broader treatment landscape for obesity?

>> look, you need pills to treat the obese people in the world. right now, the pills have a very good profile in terms of efficacy, and with very good outcome. and people don't like injections, so it's clear from all the marketers that they have an alternative, which is a pill, and they would prefer it. >> albert, thank you for joining us today. back to you, kelly. >> thank you both. good to see you. let's get to tyler mathisen now for a cnbc news update. >> thank you very much. the acting director of the secret service says agents who failed to prevent the attempted assassination of president donald trump will be fired. he told senators at a committee hearing that he was ashamed of the security gaps that led to the assassination attempt and pledged to discipline any agents who failed to do their jobs. the u.s. will arm ukraine's pleat of f-16 fighter jets with

advanced weapons. a u.s. official tells the "wall street journal" that the pentagon will supply the aircraft with air-to-ground munitions and air-to-air missiles, the first batch of american made fighters will come from norway and belgium. and air new zealand became the first major airline today to drop its 2030 climate goal. the airline said it's struggling to meet its targets because of issues outside of its control, including delays of fuel-efficient aircraft and the lack of affordability of alternative fuels. kelly, back to you. >> tyler, see you soon. thank you very much. coming up, we're sitting down with three regional bank ceos for their takes on lending and the health of the consumer. we will get a triple perspective on wt's hagoing on in the u.s. economy, next on "the exchange."

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welcome back. the retail banks have quietly had a stellar month. the kre up 19% in july, eight points higher than the broader kdw index.

so as we're counting down to the fed decision tomorrow, let's get a pulse check from ceos of regional banks around the country. andrew samuels, chris snelly, and robert franklin join me now. they all join us from the community investor banking conference in new york city. andrew, how are things looking broadly in pennsylvania? not that we're listening to election implications, but tell us what you are experiencing. >> well, thank you, kelly. you know, we cover a five-state marketplace, pennsylvania, delaware, new jersey, maryland, and virginia. and the economy is doing really well, loan growth is solid. our credit metrics are solid, and so there seems to be a disconnect between what we're seeing with our clients,

business and consumers, versus what we see in the media. but loan growth was excellent last quarter for us, and so things are looking good in our market places. >> you are reading from my hymnal. we have investors saying more rate cuts and they're looking at signs the labor marketing is softening, maybe it, is but i hear things are looking pretty good. your stock, at all-time highs, what's driving that? >> thank you. yeah, what's driving that, the overall market sentiment has gone up, as everybody knows the last month or two in anticipation of rate cuts. we announced an m&a deal that has been very well received. >> interesting. so when we talk silicon valley, what is going on there post silicon valley bank, is it ai, is it macro driven?

>> yeah, i mean, we have had some benefits we've been able to dring over some new employees and new clients based on that. but it was tough last year in the spring when all the conversations that we had being right at the epicenter where that happened. but now the sentiment in the market seems to be pretty stable, and some new entrants are coming in and things are shaking out nicely. >> robert, a lot of people would say this is driven by rate declines and the banks saw their assets under water on high rates but saw people moving deposits, because you could only charge so much on loans. do you think lower rates and the potential for fed rate cuts is going to help the business substun shally? >> i do think so. >> perfect. robert, what about to you? >> well, i loved your introduction with the stellar performance in regional banks. it goes right in line with what we're seeing.

i'm not sure quarter basis point is going to change our market any. however, i athink the sentiment around the lower interest rates is going to be good for the market in general. so we appreciate it. i'm not sure it's exactly time for lower interest rates, but if the fed decides to do it, i think we would certainly appreciate it. >> what are you experiencing in houston, is il st still inflati? >> the houston market is doing pretty strong. i guess my reasoning is more the job's not quite done yet. we're starting to see a little slowing in consumer spending and some other things, and just a slower market a bit. and certainly higher interest rates have had its issues with commercial real estate. but for the most part, and we're pretty much in houston down the gulf coast of beaumont region

and have an office in dallas also. so seeing the same things across the markets, but the markets are pretty strong. >> andrew, build on that. do you think the fed rate cuts could be a big help to the business, or do you share some of robert's companies? >> i think rate cuts will do wonders for consumer confidence. but i'll be candid with you. i think banks tend to manage and structure their balance sheets in a way that any changes in rates will not have a material impact. but i think from a confidence factor, it's -- it will be a big issue if there is a rate cut. we know that there's going to be a rate cut here in the second half of the year, we just don't know exactly when. >> sure, andrew, do you guys have any exposure to troubled assets that you're concerned about? >> so we're -- it's interesting, because we primarily serve secondary markets within the country. we're not in any major metros.

what we're seeing is, you know, our credit quality has been excellent. it's been that way for the last 18 months, and so we're pretty confident that our customers are doing pretty well. you know, this is the cycle in which we're doing a lot of annual reviews, et cetera, and the numbers that are coming in from our customers were very optimistic. >> chris, same question to you -- go ahead, robert. >> well, i was just going to say, it seems like the headlines are around really office. and office in houston and i'm sure in pennsylvania, et cetera, is really not very good. other than that, we have not seen a lot of stresses in the commercial real estate side other than the impact of higher rates has caused some cash flow strains on some of our borrowers, but we haven't seen that reflected in prices at this point. >> i agree with that, kelly, we

have -- we don't do -- have really any office exposure, because we're in sap nta cruz. we've seen declines in overall credit quality, but everything is coming out fine. >> i listen to you guys, i look at consumer confidence this morning, maybe we're handling like 5.5% rates just fine. in any case, we'll see if the fed agrees tomorrow. thank you for your time. andrew, chris, and robert. meantime, bill akman is looking to raise $2 billion in usa's ipo. with you that was much lower than expected. >> pershing's square delayed and down sized. but in several conversations i had this morning, i'm told it is still a go. psus refiled with a $2 billion offering size. that's a fraction of the $25

billion figure that had been floated in the media. size, though, a big point of contention between the fund and the perspective investors. unlike a company ipo where you can tag an implied valuation to fundamentals, a closed end fund trade, if the supply is too big, it's harder to drum up the demand to engineer a premium in after market trading. therefore, i'm told the vast majority, 95% of institutions, wanted to see the cover refiled before putting orders in. at that $2 billion size, the deal is oversubscribed, which means there are more indications of interest than there is stock to sell and they could up-size it from here if they see more demand and have several days to make that decision. we spoke yesterday about that letter that fund manager gill akman wrote. itultimately had to be disclosed in a regulatory

filing. it included one of the firms that placed an order to the tune of $150 million according to that letter. and that revelation spooked media seth to drop out of the deal. however, i'm told that the other firms that are mentioned in the letter have so far kept their orders. so the letter also caused a delay in the deal, because the s.e.c. needed more time to review it. i'm told that review has transpired and they are targeting next monday to price and next tuesday to list the ipo, kelly. >> interesting that the publicity would have scared carman off if he thought it was a fundamentally good deal. but you're say thing is just a process hiccup? >> well, process hiccup, yes. in some ways it's absolutely a process hiccup. it's one of those thing where is when you have an ipo, when you are on a road show, there's so many rules. there's a quiet period you have to abide by. so sending an e-mail to s

strategic partners, it sounded like the thought process is these are the investors that took a stake in the frequent pershing square, the management company most recent equity offering that took place at 10% of the business that was sold. the thought process is that these were under the hood, so to speak, of our management company. so i'm going to send this letter ultimately that had to be disclosed, and that led to the process and delay. but, you know, if it does ultimately take off. it will be about a delay of a week. >> leslie, thank you very much for that update. leslie picker. coming up, kamala harris's vp list, the short list i should say, is stacked with contenders who could raise big money possibly. we'll look at who her team is vetting and the potential impact on the race to the white house. and a dwglance at the markets. ckft ts.aq down 1.3%. ba aerhi

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presidential bid since joe biden dropped out of the running on july 21. but in order to keep that momentum going, she'll have to choose her vp candidate wisely, and that decision could be coming any day now. she's set to go on a battleground tour with her pick next week reportedly. brian schwartz has new reporting on the potential running mates and their ability to raise big money. he joins me now. so, do tell. well, i should say what can you tell us at this point? >> one of the things it seems like either the vice president is thinking about here, who she could pick is how these folks could raise money for her, one of the people she picks as her running mate. we narrowed down a list of a few that could help her there, josh shapiro, mark kelly, walz, pete buttigieg, fundraising network, some tied to unions. pete buttigieg had to drop out. he raised close to $100 million. josh shapiro, going to the hamptons this weekend to huddle with some of the vice president's al lice in the donor

community. so this is where things are getting really interesting for her. who she will end up looking at to help her out. >> kelly, shapiro, bashere, kentucky governor. >> his father is a big political player in kentucky and could be from that key state, too. have that appeal to more moderate voters. she also has to think about. when you look at shapiro, who today was talking up this idea of cutting corporate taxes in the state of pennsylvania, there's seemingly a reason why he's starting to bring up why he likes this idea. it seems very interesting key timing as they try to think about whether they should pick him or not. >> walz you think is on the short list. he came to much more public awareness with this comment about jd vance being weird. now this connection to the union, someone that the team is looking at more closely. >> you have to think about that. if they want to solidify this union support and some cases you

look at the unions across the country, someleaders of unions have been leaning into donald trump. if they want to solidify that support, walz would be someone to go to. mark kelly, this conversation silicon valley, how do you bring some people in the tech sector, mark kelly could be that person. he earned money from rank and file tech people. so that could be another play here for her if she wants to try to raise money from that sect. >> pete buttigieg is making the rounds. how important that the vp candidate themselves brings a lot of cash when it's clear that harris' campaign has been able to get quite a bit of traction with donors without any help at all on that front. >> it's a question for me is how long is this honeymoon going to continue with her at the top of the ticket. and the other piece of that is she -- whoever she picks, right, she will not be able to be in 20 places at once. you have to send your running mate out to raise money and you need someone who can connect with donors in some capacity, whether policy perspective or

somebody they personally like. in my view, what's going to happen here from the reporting i've been doing on this is she'll be out on the campaign trail. she'll be doing these events and doing these rallies. the running mate will as well. that person could be deployed to raise money while she's out connecting with rank and file voters. >> what's the deadline this virtual roll call, a week or until the convention itself? >> i think we're looking at something next week. a timing where the report is that she's going to be rolling out this pick of her's as she goes on the road and campaigns. i think the deadline, is to your point the virtual vote in a matter of days. but the truth is they really have to get this done fast. donald trump's got jd vance. debate the merits with his comments, but he has a rung mate. she has to do this quickly. they're aware of that. that's why they're moving quickly with the vetting process but a very meticulous vetting process and they have to take their time but also they have to move quickly. >> they always say it's meticulous but different to go from -- buttigieg would have

been vet on the trail already. some of the governors would be the first time through the ringer. >> same with mark kelly. listen, one thing to run for senate. another thing to be a governor. another thing to be a running mate on a ticket for president. this is a different ball game. and the vetting process will be much more meticulous for that role versus anything these people have faced on the campaign trail for those roles. >> any risk donors would start to back off if they disagreed with the pick? i can't imagine any of these picks would go over that poorly with the people backing her. >> shapiro, things where he's kind of ticked off people in the progressive community who rely on the democratic party, stances on israel. could that hurt fundraising? maybe. but the small dollar donor come back to the vice president. >> that will be an issue to watch regardless. thank you. go to cnbc.com for more. that's it for "the ehae.xcng" tyler is getting ready for "power lunch" and i'll join him on the other side of this break.

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dad: aim at the wall, but get closer. daughter: (gasps) what the?! daughter: alright. dad: side to side. when you work with someone who knows a lot and cares even more... you can do this. ...you're unstoppable. (♪♪) wow... are you kidding me? you can do this. at truist, we believe the same is true for banking. ♪ good afternoon, everybody. welcome to "power lunch" alongside kelly evans, i'm tyler mathisen. glad you could join us. we're 24 hours away now from the fed's decision on interest rates and 24.5 hours away from jay powell's news conference. we're checking our watches here. we'll hear what our mock fed says the fed should do and what they would do if they were on the fed's open market committee. >> looking forward to that. before we do