this is simply posturing we'll see what other headlines may come watching that 4200 level the stock is at the highest close of the year yesterday. can we get back to that level over the next few hours? we'll see. "the exchange" is now. ♪ ♪ welcome to "the exchange." here is what is ahead. existential threat and a big opportunity all at once that's how one of our guests describes ai's impact on the top companies. he brings two names that he sees getting it right and one most at risk plus, tech has been on a tear a handful of mega cap names dropping up the whole market but for how much longer? it is time to trim and markets are lower on reports that debt ceiling talks have stalled. this as joe biden attends the g7 in japan and one of our guests

says it's the biggest economic threat not just for the u.s., but for u.s. allies. we have the latest and we begin with the markets, of course, and dom chu >> and we slowed some momentum down because of those headlines regarding the debt ceiling and everything else, john. right now it's red across the screen we went from fractional gains to fractional losses. dow is 75 points lower the s&p 500 is now pushing 4200, and it got above there at one point today, but now below that, by about six points. now, just to put this in context, the highs, we were up about 14 points, at the lows, down 18. so trying to find the middle of that trading range the nasdaq, down 1/3 of 1% 12,650 the last trade. john mentioned the headlines around the debt ceiling and lawmakers on the republican

sidewalking out saying the president is being unreasonable with their demands that particular set of headlines did drive some down side to the markets overall. we saw a drop in some certain parts of the interest rate complex. we're looking right now at the longer term tenured treasury note yield, which went lower as bond prices went higher. so a bit of night to safety given concerns about the economy, what could happen shorter term for u.s. debt by the way, those moves and same headlines triggered a reversal and a sharper selloff intraday in regional bank stocks. they had a big balance off the lows of the last week or so. because of that, we saw some profit taking. just around there, and the headlines around the fed, jay powell's comments at a conference as well as some of those debt ceiling headlines, we'll continue to watch that this etf is down't 2 toy.25%

and this stock is down big foot locker is down 26% right now. this after coming and reporting earnings and revenues that missed estimates also a cut to their full-year forecast across several metrics. the company saying they've had to discount more than they thought they would have to do move merchandise so foot locker down 26%, john. back to you. >> a stumble for foot locker and as dom mentioned, stocks taking a it will lower as republicans push pause on debt limit talks. yesterday, this was an optimistic tone about reaching a deal also in d.c. today, fed chair powell sitting down with former chair ben bernanke to discuss the economy, saying he has not made any decisions about whether rates are sufficiently restr restrictive. kayla is covering the latest on the debt shedown

kayla, starting with you this is a fundamental difference, you think, in what's happening with these debt ceiling negotiations, or just a continuation of posturing? it looked like this was going to be hard to do. is it just still hard or is it getting harder >> it is still hard, and perhaps this is always pound to happen, john negotiations over the debt ceiling reach thing impasse today, after days of momentum that led republicans, democrats and the treasury secretary to praise the positive path but now they're getting down to the really tough substance and down to the details, leading talks to be off until further notice here's congressman graves, appointed by speaker kevin mccarthy to represent republicans. >> the house passed a strong bill that has great savings and it is responsible and puts us on a path -- [ inaudible -- about how you can move forward and do the right thing,

we're not going to sit here and talk to ourselves. >> the biden administration is suggesting it's the other side being unreasonable a white house official tells me the president understands republicans have issues with their vote count, and republicans, this official says, need to understand what the white house needs to deliver democratic votes, which are required for any agreement to pass they can't get everything they want a spokesperson separately said there's still a path to a bipartisan budget agreement if both parties negotiate in good faith. the top senate republican, mitch mcconnell, tweeting it's up to joe biden and speaker mccarthy to broke ear deal, that they are the only people that can do this, and time is of the essence. joe biden is being updated around the clock by staff in hiroshima, japan where he is attending the g7 summit of the world's largest economies. the debt ceiling discussions have already cut his trip short and are threatening to

overshadow big picture discussions on ukraine and china, and they'll take center stage during a press conference over the weekend >> kayla, stay with us for a moment i also want to bring in ceo of the atlantic council, fred kemp. fred, you say, since we're talking geopolitics and the economy, the biggest economic threat to u.s. allies is not russia or even china, it is u.s. debt default, if that becomes a possibility. is it the default itself that is the threat or just playing with fire here and touching the stove? >> well, two things. first of all, in the war of 1812 when the british were losing the battle of lake erie, which we all remember so well, the british xhan da-- commandant to

the general that we have met the enemy, and they are us this is a bigger economic threat for this year than either russia or china, even if it gets solved what's lingering behind this is a reputation that the u.s. has gained over the last few years of being even more politically volatile, economically unstable. it's also our recent banking crisis and the political violence and instability of january 6th and also leading up to the 2024 election >> i'm no political expert, but isn't the most likely near-term outcome that the can gets kicked down the road a bit as we approach the x date and they figure out this is taking us longer, we'll do an extension thing, neither one of us like it, but the uncertainty gets extended, what does that do to the economy, to america's reputation, the ability to, you know, move forward on the

geopolitical issues? >> so our allies believe that this will be solved, and i think markets by and large believe that, as well. and so it isn't so much the medium and long-term issue isn't that it's what kind of cloud does this cast over us? the chinese will, of course, use this as a demonstration to the people that surround them, you really can't trust the americans. and don't forget, part of the trip that was canceled, which you say why is it such a big deal that the president can go to new guinea? it was planned for months. no president has ever been to the pacific islands. they are strategically located and china sinis investing heaviy there. >> kayla k you tell us how the unusual structure of the house right now, as far as republicans are concerned, plays into this we heard from the freedom caucus earlier today, saying don't

negotiate here speaker mccarthy is in an untenuous position here as a leader, even if he can get a coalition of some democrats and republicans. couldn't that cost him his job >> possibly. he barely stitched together a vote for the bill that passed in april that they are using as the starting point for these negotiations but john, even if he's able to get house support for whatever he negotiates with the white house, you still need 60 votes in the senate where democrats have a slim majority there so when i was referencing what this white house official told me, it's okay if we lose the extremes of either party, because the answer lies in the middle you really need the moderate wings of the republican party and the democratic party to sign onto whatever is negotiated. so yes, it's okay if the freedom caucus wants to make noise on the side and say we don't like the direction that negotiations are going, and you have a handful of more than a dozen senate democrats saying we think

that you have to raise taxes and use the 14th amendment to continue issuing debt if we have to but that's just noise at this point, because i think the white house knows it has to broker a deal that has both sides here. so i think one thing that you can read from what's happening right now is these are politicians who are speaking to their base, showing that they are holding their line and holding their positions, even if the eventual outcome is still different. >> fred, an ordinary session of congress, i would find that reassuring, because the speaker's position would be relatively safe. but if speaker mccarthy does this from both parties thing, he is vulnerable from individual members of the right wing who say we don't like the way you're leading things this seems to be maximum possibility of not coming to a compromise right now i wonder if you think the market has that fully appreciated >> well, i think you're

absolutely right what's interesting about this as seen from the world, and these are all investors and markets, is that our domestic dysfunction has enormous geopolitical significance that our members of congress don't seem to understand this. it has market significance, as well so we're seeing this leading to geopolitical destabilization >> we have to watch the numbers when we talk about votes and the numbers. thank you both let's turn now to the other big story, powell's comments on inflation. our steve leaseman has a recap steve? >> fed chair jay powell with hawkish comments with remarks that were much more neutral about the possibility of a june rate hike, saying the tighter

credit condition from banks could ease the pressure on the fed to raise rates that policy is restrictive now, and the fed faces uncertuncerta. >> we've come a long way in policy tightening, and we face uncertainty about the lagged effects of our tightening so far and the extent of credit tightening from recent banking stresses >> he said the risk of doing too much or doing too little are valid. it was not all dovish. he emphasized that inflation is too high, the data suggests it will take time to come back down the probability of a june rate hike, it's fallen do around 13 e13%.

it had been elevated because there was a june rate hike on the table. powell didn't take it off, but he made clear it was not the first item perhaps on the menu sounds like he won't know what he's ordering in until june. >> we're waiting for that last-minute data on so many fronts between the debt ceiling, debts, inflation, how do you position from here my next guest, hedging equities with gold and silver president of the portfolio family of funds joins me now michael, how defensive do you have to be given the debt ceiling uncertainty and the questions about what the fed's going to do? and if the fed doesn't continue to hike, is it because economic conditions are so bad that you had to be defensive any way? >> yeah, i mean, the equity market, or at least a few stocks in the equity market would lead

you to believe that you don't need to be defensive at all. if you look at the concentration in a dozen stocks or so that's responsible for most of the gains and it's certainly tech heavy. when you look at the broader market, there is reservations there from investors on whether you should be buying stocks. on the other side, you have to take a look at what the fed's going to do. i think steve's summary was great, the tone was measured today. and to be arguing for a watch and wait type of stance in june, barring some other data that contradicts the bears in the next month or so so from that standpoint, that will be bullish. so investors are caught in the middle, vacillating between buying stocks and being first to take care of that rally, or being defensive and hedging and being diversified. >> give me your perspective on the state of today's broad

market risk, particularly with the major indices, and with etfs not only are big stocks popular right now, because they're seen as safe and have their valuations gotten stretched, but they're so heavily weighted in so many indinddices this year >> there was a theme this year that large-cap tech is recession proof. so you had a lot of money flow into that. the stocks have all gone up and performed. it's the only part of the equity market that has performed. so until it doesn't work, it's working. i wouldn't necessarily generally associate tech investing with possible recession so it is a short-term anomaly that we need to see what happens in the future. from our perspective, we would rather be more broadly based

we believe there is substantial risk the soft landing argument is a possibility, a reasonable one as long as labor holds up but if labor falls off, you have a much different scenario. the aggressiveness of the rate hikes haven't fully been felt in the economy yet would argue for a slowdown in the second half of the year in '24 and the fed will be in a difficult position to cut too quickly. >> steve liesman, about four weeks from now, what is it, june 14th, i think, is when we get that next fed meeting. what are the key data points ahead of that, that powell and the rest of the committee is going to be watching and that investors should also be watching it seems like they would like to

pause, but who knows whether they can >> i think there's a couple of things out there the first thing is watching the trajectory of growth it's interesting i've seen some forecasts, john, that growth may be accelerating this quarter we did one and change last quarter. we might do two according to some estimates it simply hasn't fallen out of bed, and to michael's comment, what is fascinating to me is the ability of companies to make money. we knew they could make money before inflation they're making money during inflation. and it seems like if inflation were to fall, companies could still make money, depending on how and why it falls we'll have the unemployment report an interesting factor we saw this week, claims went up on a weekly basis, but continuing claims fell.

so the fed will be gauging the tightness of the job market and there are those inflation reports. we'll be watching to see fed officials pointed to this week, not just is it coming down, but guys like jefferson have been watching the pace at which it's been falling and they remarked that they saw the pace of it falling had been too slow >> so many mixed messages. the data is giving us an "on the other hand" every day. steve, michael, thank you. >> but you need that, john, for your daily segment >> i do. steve, thanks. coming up, the debt ceiling and geopolitics are not the only things keeping investors on edge up next, we'll hlook at the big rally in big tech and what the charts say about the staying power. plus, which names are best positioned for the ai gold rush?

that's still ahead "the exchange" is back after this

welcome back to "the exchange." just a handful of stocks responsible for the recent

rally, and how long can they keep holding up the market diedra bosa has more in today's "tech check. >> to get an idea, john, of how much mega cap tech is leading the market, look at this chart it tells you that we are currently seeing the greatest outperformance of tech versus the s&p 500 ever we'll get that chart up. you will see that the previous two times, we even came close to this kind of dwgap, they were followed by major tech busts tech looks a lot different now than it did then it is concentrated with a few companies worth billions of dollars and underpinned by that platform shift in ai given their size, this runup has been astounding. nvidia, meta, they have more than doubled in value.

dw google is up 14% since that event last week where it game out with a generative ai search model. so investors are looking for the next big winner the space. oracle is up 26% this year, and it could top out in june with nvidia chips it is a late reporter, so maybe you can see that pop if they play that earnings call right. >> there's a huge difference between how the digest tech names are responding, and i would thoughrow oracle in there. you look at semiconductor names like qualcomm, tsexas instruments, they're flattish. ibm, which had a great 2022, flattish so it's not tech across the board necessarily that's outperforming, right it's the biggest market caps >> and it is so concentrated,

these eight names that have a counter for all the s&p's gains this year. you were talking about this with your last guest before the break, kind of seen as more recession proof, maybe a safe haven because of those gigantic balance sheets that's what is different this time, is that these are fortresses they have so much money on their balance sheets even though growth may come down, it has come down for them, they're just seen as safety plays. >> all right the view from tech land, with the bay bridge behind you, thank you. let's dive deeper into the charts my next guest say the move in tech is overdone it's time to hedge long ex-pochex-poche er -- ex-pocher in the sector. is this tech overall or the very biggest tech that it's time to rotate out of? because there is a difference, is there not >> absolutely, a major difference the concentration issue that you

are discussing is important, but it's always with us. if you look back the last 35 years since the beginning of dick's in standard and poors, the top ten stocks are about 20% weight but now they're 30%. of course, the top two, apple and microsoft, are almost 15 the last time we were this concentrated in two games was 1978, at&t and ibm much smaller companies now but what we have is a big milestone this week. the s&p 500 information technology sector this week recouped all of its losses relative to the s&p associated with the dot com peak. what it is a testament to is the problem with overpaying for something. in real estate, in the market, in anything. so that's a long time, 23 years and three months, just to get back to even with the general

market >> i've got to stop you there, because it looks like this isn't the first time we have bumped our heads on that ceiling, or close to it. so what is it also a signal of >> right so the other chart you have there going back to 1974 now, again, 1974, there was little to no tech and pibm was the most valuable company in the world at one point before exceeding a former high, any stock, currency, index or commodity will have to contend with it. hence, the judgment to reduce exposure to the largest names, nvidia, apple, microsoft, and do a double back and look at the mid-cap names that have lagged and play those for catchup >> how are we looking in the way some of those mid-cap names or

i indices charts look? you mentioned names like at&t or ibm that are not the flavors now. intel for a couple of decades ago. so maybe the big names are always popular, but the big names are always changing, as well >> ever changing, and think about it u.s. steel going back, general motors, ge so it's ever change. again, this will happen too. one day apple will not be the thing that it is, and microsoft, as well. for now, they are the kings. the question, is are they a little bit steep, uncorrected or are they expensive >> the whole market is expensive, but these larger companies are especially expensive. so does that mean x these larger companies, maybe some parts of the market are reasonably priced

when you look at the charts? how should investors at home think about that relatively speaking >> sure. we have such a bifurcated circumstance throughout the market, and not only that, but take the consumer, for instance. you have restaurant industry groups making all-time highs, home builders. yet retailers are at 52-week lows one of the problems with bifurcation, it almost always is resolved by generally lower prices so for the russell 3,000, represents 98% of the investable capital in the united states, half the stocks in that index are below where they were on the lows of october 13th we are so dependant on just a few, and that usually ends poorly >> well, to use a cliche that we hear a lot on this network, it is a stock picker's market there you go >> indeed. >> when you bring out that october 13th monday, let's go hunting for those deals. carter, thank you.

still ahead, a first look inside amazon hq2. will it be enough to take the sting out of the controversial call for workers to return to the office we have a eak aksnpe ahead of the opening. "the exchange" is back after this if your business kept on employees through the pandemic, getrefunds.com can see if it may qualify for a payroll tax refund of up to $26,000 per employee. all it takes is eight minutes to get started. then work with professionals to assist your business with its forms and submit the application. go to getrefunds.com to learn more.

♪ ♪ welcome back to "the exchange." i'm tyler mathsen with your

update the georgia prosecutor investigating donald trump and his allies for possible interference in the 2020 election signaled charges could come in august the district attorney fannie willis asked a judge to not schedule trials and in-person hearings during the first two full weeks of august she did not give a reason for that unusual request, but willis previously warned law enforcement of possible backlash during the same period the cdc reported another death linked to contaminated eye drops, bringing the total to four 81 people have been infected with a drug resistant bacteria after using the eye drops. 14 have gone blind patients reported using ten different brands, but the most cases are tied to ezra care artificial tears jeff bezos' space company won a contract to build the

lunar lander the total cost is around $7 billion. the goal is to deliver astronauts to the moon's surface later this decade. coming up, this name outperforming the markets since the launch of chatgbt in november our next guest says investors are rewarding its clear ai strategy we'll look at the winners and losers "the exchange" is back after this lily! welcome to our third bark-ery. oh, i can tell business is going through the “woof”. but seriously we need a reliable way to help keep everyone connected from wherever we go. well at at&t we'll help you find the right wireless plan for you. so, you can stay connected to all your drivers and stores on america's most reliable 5g network. that sounds just paw-fect. terrier-iffic i labra-dore you round of a-paws at&t 5g is fast,

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♪ ♪ welcome back to "the exchange." artificial intelligence has been a big, big catalyst for the big tech names recently. microsoft up 24% since it announced new versions of bing and edge powered by chatgbt. amazon is up 20% since announcing its bedrock program and google has climbed more than 16% in the days following its io event. but it's the cloud names that will come out on top says my next guest with us now is tim veran, cloud

and communications analyst at oppenheimier tim, i'm a little surprised by this, because these hyper scale cloud names have such high valuations one might argue ai's success is baked in so why them and not application players to win in ai >> great question. we don't know who the application also be. most software will be embedded with intelligence at this point, but the models are not really clear. we know that the suppliers are usually winners, and that was kind of the case back in the internet 20 years ago and has been over that time period and we have the best infrastructure, people are going to generally ride on top of that infrastructure and the big three hyper scalers at this point really have the scale to trade these ai models and to host these applications >> what about some of the kind of semi infrastructure, like

your service nows, even your snowflakes that are dealing in data and trying to create a platform effect for themselves, even though they're not hyper scalers, are those too risky >> i mean, it's all going to depend on execution at this point. these companies are a layer above the cloud. we're going to basically need to label the data, curate the data. but that's massive opportunity for most companies involved in the cloud for a long period of time, and the cloud may evolve from a technology perspective and probably will to a much more decentralized look ahead but right now we'll see an acceleration in cloud growth in '24, '25, almost entirely driven by ai at this point. >> you pointed out digital ocean as being at risk, is that longer term or that it's range bound

for a while, because this is a company that focuses on cloud-type services for smaller businesses they're being run by a former cfo who is really trying to keep it as efficient as possible. are you saying that smaller companies that cater to small business are going to get blown out in the ai driven era, or that it's going to take them longer to establish velocity >> great question. they don't have much -- it does not have a lot of cloud ai based capabilities at this point they're still studying it. they're likely going to have to invest in it we think most new startups will be ai focused over the next few years. 80% to 90% will have some ai capability in the short-term and a few of the other emerging cloud names, they are much more high liquoliquor l -- highly correlated with economic growth.

they have been guiding down and haven't seen much in the way of organic growth >> what ends up happening to say not only digital ocean but say a go daddy, that will sell through say microsoft 365. does that type of relationship where they are resellers to small and medium business, change in the ai era or do they end up becoming a conduit through which some of these hyper scalers reach the smaller businesses that aren't necessarily going to be the focus of their larger sales forces >> it's a great question if you look at a lot of the -- i'll use these business models, they only paid about 10% of revenues to the cloud providers historically going forward, it's going to be more like 20%. the cloud providers can extrapolate much higher at this point and it is much more expensive. but it remains to be seen if these companies can pass that through. >> tim, thank you. >> thank you still ahead, from sponsors

to street food, arizona has big plans for its hq2 in virginia, which opens to the public next month. but diana got a sneak peek diana? >> reporter: that's right, john. not open yet, but we got a sneak look inside at the incredibly sustainable real estate development here, and don't worry, we'll hear from an amazon executive about return to office atexcongp "e onth exchange." eye disease for years and your eyes feel like they're getting kicked in the backside, it's not too late for another treatment option. to learn more visit treatted.com. that's treatt-e-d.com. your record label is taking off. but so is your sound engineer. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire (woman) with verizon's new myplan, i get exactly what i want. matching your job description. and only pay for what i need.

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introducing the lucid air. experience the best. ♪ welcome back the first phase of amazon's hq 2 kicking in next week, with employees moving on campus just outside d.c. in virginia diana olick joins us from arlington, virginia. diana? >> reporter: john, these buildings will be powered by 100% renewable energy from a solar farm i sat down for an interview on both the building and back to office >> i think it's important for a company like amazon to

demonstrate sustainability, to talk about where we're testing things, and also send demand signals to the market that these are products and services that we want. >> reporter: and the message resonates across 2 million square feet of sustainable space at hq2 >> this is mass timber, an important part of our sustainable materials. >> reporter: from the ceiling to the floor, there are 3,000 tinted glass windows for cooling and a light that tells workers when is a good time to open them the building is using special coming technology that helps save about 7.5 million gallons of water per year. >> it's more water needed to fill the lincoln memorial pool >> reporter: there's plenty of amenties for the 8,000 workers who will be here, at least three days a week, by the end of the

summer >> we're still committed to all the hiring goals that we set out. so we'll continue on that path really over the next decade. i think our policy at amazon is three days a week in the office, so it's flexible >> reporter: now, as for the second phase of hq2 offices that was delayed, she said they are in the preconstruction phase, still going ahead with it and still committed to it. she added that as for the 8,000 workers coming here this summers, they had expected 5,000. >> so diane, i was doing some research on the other hand segment about work from home and return to offices. and in the south, more people are going back to work in person but in major cities, not so much d.c., maryland, virginia, sort of right there in the middle how are things trending with occupancy and days in the office is amazon sort of out of the norm here or right smack dab in

the middle >> reporter: it's kind of in the middle d.c. is a government town and a lot of people are back in the office a lot of these workers are already in temporary office spaces in other parts. they're just moving from where they are now into the new offices. amazon says given this space, and it is something, and the dog parks they have and all the other amenities, this is the kind of place they are expecting people are going to want to come so d.c. is seeing a fair amount of return to office. obviously, the entire country is still way below prepandemic levels >> i'm eager to hear over the weeks and months how small busi busines businesses around that campus might be impacted. coming up, disney firing its latest salvo with the battle against governor ron desantis. that's next.

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shares of disney lower today after the company is scrapping plans for a billion dollar office complex in orlando. it is the latest turn in disney's feud with florida governor ron desantis, which

started last year after bob chapek criticized the passage of the state's act of don't say gay bill last month. but one analyst says the ongoing battle with desantis isn't the only head wind disney is facing. jeulia boorstin and ryan schwartz welcome, everybody tim, how much of this billion dollar real estate relocation is really about desantis and how much of it is just, hey, disney is cutting costs, and this is a convenient way to put the screws to desantis at the same time >> well, my downgrade was really not related to the florida situation at all, but it was to say there are a lot of things going on at disney with the

slowing business and efforts to cut costs. i don't know how much the billion dollar project in florida is related to, you know, cutting more costs from here or actually if that might be a matter of it wasn't an effort to cut costs that it's not going to happen so there are political issues that are, you know, playing weighing in on sentiment at the stock. i don't think it is a big financial issue for the company. it has more to do with the state of businesses themselves. >> where does hulu play into that downgrade >> well, we didn't downgrade because of hulu, but disney has made, i think, clear on the most recent earnings call that they are looking to buy in the one-third share of hulu that comcast owns and that is a call date that comes up on january 1st. we had previously been thinking they might look to sell that or perhaps extend the current arrangement. but that's at least $9 billion, perhaps more than disney will have to bring onboard. who knows?

maybe there are only plans afoot on hulu. you know, combining those services is good for reducing churn in the bundle offering, but it is not so great for the revenues they generate peruser maybe there is more costs to come from hulu so a lot of questions. and the big issue upfront is when will they put espn over the top? a huge issue for disney to deal with a decision to be made on that. >> julia boorstin, what is the tight rope that bob iger is having to walk here? was it the last earnings call that he actually called out, congratulated universal on its success in theaters? i mean, for disney that was riding high four or five years ago, ouch. >> i mean, look, bob iger always has to walk multiple tight ropes. but i think now there are a couple of keys ones i would point out. in florida he has to walk the tight rope in that the company

is invested in florida they are planning to invest $17 billion in their parks hiring thousands of more people over the next ten years and even though they can opt not to invest another billion dollars and build a facility for people moving out from california, they are stuck there when it comes to walt disney world. so i think he understands that the state of florida needs them and that that will be resolved over time. in the meantime, he can walking that tight rope. on the other hand, you have the tv business. we have heard a lot about weakness in linear tv. there are two pieces of that one is cord cutting. we are seeing increasing and in some ways accelerating cord cutting, which is challenging which is why they're thinking about taking espn direct to consumer then you also have the advertising market yes, they are investing and putting ads on disney plus they have hulu they have all these other platforms that they could run ads, but the linear tv ad business is weak because the overall ad business is weak as well

if you want to talk about a tight rope, he needs to make sure they switch over to espn for being part of the tv bundle and maybe the glue that holds the tv bundle together, he needs to be very careful about the timing and pricing bob iger made it very clear he understands the importance of that decision. >> okay. brian schwartz, back to the political portion of this tight rope, governor ron desantis, looks like he's running for president. he's got to appeal to cultural conservatives across the country. and for a long time, disney has been a favorite target when you want to kind of polish your culture conservative credentials here so how does bob iger win this, or is ron desantis going to win it no matter what? >> well, at the end of the day, this is not going to end for disney any time soon the reason for that is that when ron desantis most likely when he

runs for president next week, this is going to be clearly a staple of his campaign he clearly believes that he's won this fight with disney, but he's going to continue the war with disney when he goes on the campaign trail that's something to keep an eye on if you are a disney executive, frankly i mean, if ron desantis for another year is going to keep bashing your company one way or another, i do wonder how it is going to impact the company at large or at least the image of them and more importantly, there are real questions about how is that going to help ron desantis in a republican primary for president? and the polls suggest it could give him some form of a benefit as he tries to go to the right of president donald trump who is the front runner in the primary. >> brian, i think that maybe bob iger is ron desantis' sister soldier. i want you to just -- are you with me on that? because i think -- right because if you are republican, the attack is, oh, you're too in

bed with big business. if desantis can -- i mean, am i right? >> yeah. in a way you're right. i think this is something he will be riding this train and using the fight with disney to prolonged the war with the couple as a staple of his campaign and as a way to formulate and take base voters away from donald trump on the other hand, i will give you a tidbit of information here a few days ago i was meeting with a very, very close adviser to donald trump. i can't say verbatim what he said about how the former president looks at this fight with disney and desantis because it isn't good for the air waves, but it is clear to me through this adviser that donald trump is looking at this battle in a way that desantis has lost to disney, and he's clearly going to be using that type of messaging against ron desantis when and likely if he runs for president next week. >> i'm not surprised, brian schwartz thank you. thank you, julia and tim well, that's going to do it for "the exchange" just about. but i will be back at 4:00 p.m.

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hi, everybody. welcome to "power lunch. alongside contessa brewer, i'm tyler mathisen coming up, president biden's busy weekend he is meeting with g7 leaders on russia, china and more negotiations on the debt ceiling reportedly stalling. plus, retail's big shrink problem, left. hitting the bottom line big-time it is not kids' shoplifting stuff. it i