mike seifert with a read on the state of the consumer. >> later on, marissa mayer live with us on set we'll talk some ai hype, regulation, regrets on hulu and a lot more take a look at stocks, though, under pressure again today. down almost a percent on the s&p and the nasdaq is down a percent right now. some pressure on big tech, really pressure across the board, every sector lower, except for energy and oil prices have been confirm on some supply issues but nvidia is under pressure after a 100% run-up this year. tesla, microsoft, apple, carl, it feels like the market is grappling with, first of all, the debt ceiling risk, the deal is still elusive after talks broke down last night. we don't know exactly where they stand with time running out to that june 1st deadline, which secretary yellen yirts we've also got concerns that inflation is going to prove

higher to tackle from the fed and it might pause in june, it might go in june, pause and go july, might keep rates higher than the market's expecting. all of that, potential cause for concern. >> as we mentioned earlier, hot infl inflation, at least slower decline. new zealand gave us another 25 >> a dovish 25 kiwi got hit hard >> and the nfed minutes this afternoon, a little bit stale. now mccarthy in about 45 minutes and yellen saying, yeah, even without talking about the actual year-to-date, we're already seeing pressures in what it's costing the government to fund debt >> the market's not throwing a fit. we're not seeing 2011-like market panic yet we see it in the short-term treasury market, yields continue to climb there, but nothing really extreme in the equity market it feels like they have a sense of urgency, but we need to get a

deal done, not a short-term deal, but a longer-term deal i think that would probably be a relief for stocks, although they haven't freaked out that much about it i think a bigger question centers still around, what's the consumer telling us, a mix of earnings this morning. we got abercrombie a lot, some of them are just better than expected and better executing on transformation urban outfitters was better than expected they all talk about the macro economic outlook become more cautious >> with some boost to margins, at least, because freight costs are coming off a bit we'll talk more about that later on we are waiting to hear from the house speaker at 11:45 eastern time on the debt ceiling, even though our next guest sees a low probability of default, still thinks the markets are underpricing risks associated with the ongoing negotiations. joining us today, wilmington trust head of investment strategy, meghan shue is with us great to have you back i would argue that you've retained some sense of caution,

even when the markets got a little excited and bumped up against this range we've been in and it certainly seems like that looks smart now in retrospect. >> thanks, carl. thanks for having me we've definitely been on the more cautious side of things, holding an underweight to equities versus our long-term benchmark for quite a few months now. it's been a little bit frustrating to see the s&p 500 up almost 10% as of this week. but i think as we look forward, we still put a fairly low probability on a default but i think as we move beyond that "x" date, we have to be looking at two really important risks. one is what type of spending cuts come with any deal. i think that there's going to be some cuts on the table, and that in our view, just really weighs further on the slowing growth that we expect in the second half of the year we expect a recession, so that sort of drags it down further.

and the second is really two-way risk around interest rates, which has been getting a little bit more buzz lately, as the treasury replenishes their coffers. interest rates could move higher, but as we move into more of that time frame for a recession, we think they move lower. i think it's a really tough market, and certainly what's been helping to propel some of the stronger parts of the market has been that expectation of lower rates. so that i think that's why it's something we need to be paying attention to >> if your second half recession playbook proves correct, i mean, what is the trade given that we're still talking about resilient inflation, maybe a june meeting that's live where do you expect the cracks to appear? is it going to be in consumption or employment and how soon >> i think we're seeing some cracks already it's just a little bit more in the manufacturing part of the market, s&p global pmis yesterday showing a pretty steep falloff in manufacturing export orders

but also some positive signs on inflation, so i think that's really the environment that we have now inflation is moving lower, but we're also getting signs that growth is moving lower i think the consumer has been that really bright spot for the economy up until now and are being propelled by excess savings, which will probably continue to drain and maybe drain a little bit faster, if we start to see cracks in the labor market but i think this is where it's hard because we've been talking about this recession forever, it seems. and it has not come. but i don't think that this is the time to capitulate i think you have to just be patient here and watch that play out. and we're still a little bit more ostensibly positioned with an overweight income, cash, and looking at those slightly more defensive equity positions, higher quality, things of that nature >> but i see on your -- we just showed an image of the industry, i saw semiconductors and large banks on there those are pretty cyclical, aren't they? >> yes, they are

and we're not super defensive. i think, you know, some of the more traditional defensive successors like staples and utilities have arguably had their best days in terms of, you know, really maybe starting to see some pricing pressure for staples companies, utilities being a little bit more overbought i think there's parts really never part of the market where you can see opportunity in the semiconductor story, is a little bit of a longer term play. we can see some, you know, another leg down, certainly, if we get a risk off market, but looking out a year or two, we think that the valuation and the story of structural trends are really supportive. that's a little bit more of a longer-trend play. and in financials, if you're staying up in capsize, as well as looking at some of the payment processors, i think that's the place to be within that part of the market. >> hard to believe, and the second half sounded like it's a while from now, but we're really

going to get there in a little more than a month, meghan. thank you. we'll talk soon. >> thank you so much so how are larger macro concerns impacting the buying and selling patterns of hedge funds? despite relatively low volatility to start the year, hedge funds have actually made some big thematic moves and leslie picker is tracking that for us leslie, good morning >> that's right, hedge fund managers are being a lot pickier about where they put capital to work in this currently environment. a new note by goldman sachs says, quote, rising dispersions and falling correlations have signaled a market environment growing supportive of alpha generation in other words, it should be a good time to be a stock picker goldman combed through q1 filings and found broad sellings within financial and big tech with some very specific exceptions hedge funds broadly reduced ownership in financials amid the sell-off this year, but they did pile into jpmorgan, black rock, and charles schwab fund managers had been increasing ownership of regional

banks between 2020 and the first quarter of 2022, but in more recent quarters, they were reducing exposure, even before that march turmoil in the industry hedge funds also sold out of some technology names, cashing out after strong names this year goldman said hedge funds did add to positions in companies exposed to artificial intelligence names like nvidia, but others like meta and apple were actually among the stocks with the largest net declines in popularity so, so far, the group has yet to turn those picks into alpha, with equity hedge funds generating 3% returns year-to-date, according to goldman, just one ninth that of the nasdaq 100 guys >> and leslie, what about overall exposure we keep hearing that hedge fund positioning has been very bearish net shorts for s&p futures, for instance, and speculators near all-time highs, right? >> yeah, well, the actual net short positions are near lows,

in terms of just overall float in the market. i think it's about 1.7% of the overall float in the market. but in terms of on the long side, they have definitely been getting a lot more defensive funds rotated towards defensive sectors even more during q1, increasing their tilt in health care, replacing technology actually as the largest sector net exposure and, you know, that's been the case -- it's been technology for a very, very long time goldman also says that hedge funds have little conviction in market direction but high confidence in those stock picks. and that's made evident by kind of that gross exposure formula at record highs, guys. >> it's interesting, a couple of days ago, jpmorgan, leslie, had a note about, you know, the dynamic we all understand, and that is that the market is heavily reliant on a few technology names, but the pains rate theoretically would be if leadership does broaden out and laggards catch up, that would go

against at least some of the playbooks that shave been written. >> it's really interesting and this stock-picking environment is emblematic of the idea that the safe havens in this environment are the megacap names, the jpmorgans and plblac rocks in financials and that's made ever more clear about this lack of conviction about whether the market is going up or down but hey, we're going to pile into some of these names and make them even more popular than they already were within specific sectors it's not just kind of that sector rising. it's very specific names that investors are seeing as safe havens within those sectors. >> and we talk about positioning, but maybe now more than ever. >> and i was referring to the s&p, the future shorts really high levels. it's interesting, with the overall market as well >> leslie, thanks. coming up after the break, t-mobile ceo mike seifert, his

first interview since the company's results. we'll dive into that outlet. display massive move for shares of abercrombie & fitch this morning, up 20% as other retailers have seen retailers pull back, abercrombie says the company is in a position to actually chase demand. we've got anxcsi eluve interview with the ceo coming up "squawk on the street" will be right back

welcome back one of the hottest sectors of the year turns out communication services up around 30% since january. and one of the biggest players in the space joins us here at the ceo council. t-mobile posting mixed earnings, marking three years since the company's polblockbuster merger with sprint. mike, nice to have you here. >> good to be here, thanks >> so we're trying to gauge what's going on with the consumer and for you, it's in terms of subscriber growth. how does it look right now >> it's on track and ahead of schedule it's been an amazing story since we were able to put this company together three years ago and create this version of t-mobile. and you know, you look at the last quarter, we generated more post-paid net additions than at&t and verizon combined and raised our guidance for the year at the same time, a lot of sectors are raising an eyebrow

at the economy and wondering where things are going not so much in our sector or with our economy, because of how important this category is to consumers. >> they can't all grow this has always been the question if overall, post-paid subscriber growth is slowing and everybody is promising higher subs, something's got to give, right >> that's the case it's not my job to grow the whole glory. just my job to grow t-mobile >> you're not a spokesman for the industry >> that being said, this sector is vibrant and healthy there are a lot of questions i've done 40 earnings calls for t-mobile and gotten this question about competition and where is it all every single time every time i get asked, isn't it right now. didn't it just right now get too competitive, too hot in the kitchen for everybody? and look, you compare cash flows in this industry, i want to talk about t-mobile, clothes in our industry are double what they were in 2014 during the 4g era yet the consumer is getting four times more for their dollar. how could that be?

how could the consumer be winning and the category winning. it's 5g. that's the 5g dividend and so, you know, this is a healthy, vibrant sector. >> isn't cable now taking healthy of the industry adds >> we guided up our net ads this quarter, after outperforming expectations there's a dynamic going on there that may be hurting some of the others on the other hand, they're monetizing that relationship as a wholesale provider they have other ways to make money there. cable's growth is higher than a year ago, as it relates to us, our porting ratios versus cable have been better versus a year ago for five straight quarters now. >> if there's incremental scarcity with a more discerning consumer, is that right? do marketing wars heat up here do people start getting really serious about outreach >> marketing wars have always been heated up to the premise of your question, that plays to our strength the customer becomes more discerning that's good for t-mobile we've always been the value leader that's important in a time of a questionable economy but at the same time, now, for the first time in our history,

we're the network leader and that's the promise we made you know, i've talked about that before here. we wanted to be simultaneously the network and the value leader and now we are what's happening is now tens of millions of people, prime credit customers, the best-paying customers in the industry are looking at t-mobile, because we have the strongest network we have more 5g landmass covered than at&t and verizon combined and customers know that now. you see it in our credit our prime credit reached an all-time high in q1, as a percent of our base. and our customers utperformed at&t and verizon customers in terms of bad debt. think about that t-mobile customers pay their bills more reliably than at&t or verizon commustomers >> what about business where are you on business? where the other players had dominated and how big of an opportunity is that? >> it's a big one. at our analyst day in '21, we're still executing against that plan the only ones that are still

talking about things for the -- promises from the past we're ahead of schedule. we said we would get to a 20-share we've moved it up. and you know, we're now outpacing verizon on post-paid phone net ads, post-paid net ads on churn those are good indicators. verizon continues to perform well in that space, as well. that's a great thing to be pacing with them or ahead of them and we need to be if we're going to take share and get to 20 or above here in 2025 >> here at the conference, a bunch of external dynamics are get talked about a lot, ai, head count, capex do you think those things heavily? >> every day every day. >> you do? >> sure. >> we're in a -- look, i don't want to feed the hype cycle, but we're in an historic moment in the history of technology. this is as big as when desktop computers arrived in the '80s, web arrived in the '90s, mobile arrived t in the 2000s, this is massive and it will change how businesses are run from left to right. >> how far along are you to

actually putting n ting numbers. >> there are two big areas that a company like ours can benefit from these transitions one is in curating a better experience for every customer, more cost effectively. our mission is to be the best in the world in connecting customers to their world and if ai can help do that better by giving each customer a better journey when you walk into our story, we should know why you're there what the answer is if you can get people to stay and millions leave, even though we're the only ones with year over year churn improvement, millions leave it's just the businesses are that big if you can crack that code with data, people will have a better experience and we'll benefit financially. >> one more macro one for me you recently raised prices how is that being digested and is there room with inflation now starting to come down, we hope, to keep going. >> our excompetitors raise prics we launched a new set of offers that offer more for more and

kept our old offers in place it's a choice that people have these higher-priced offers are attracting more than 60% of the new customers. they're also our most popular offers, even though we have offers down to $25 a month and that shows that people are picking t-mobile because they want to use our service. >> why are people taking so long to upgrade their phones? >> they're being trapped look, our competitors sock you into three-year price plans for your phone you're paying for it over three years. you know, i'll give at&t credit. at&t had the lowest churn in the industry in q1 that gnaws at us and drives our team crazy but if you look at one of the biggest companies we all look at, thousands of people, at&t customers self-report the highest propensity to churn, while churning the lowest. that means they're the most dissatisfied why is that? because they're trapped. they are trapped and that's what

phone freedom was all about. and it's feeding results in our business i mentioned that the conference for jpmorgan the other day, our q2 looks like it's outpacing last year's q2 in terms of post-paid net ad growth. >> that's bullish, mike. you're such a marketer, i love it we're not raising prices, we're offering more for more >> and sit's a choice. >> and debuting the new t-mobile blazer >> great to be here. >> thank you good to have you still to come, marissa mayer with on why the ultimate ai race between the u.s. and china she'll join us right here in santa barbara. and we're watching kohl's, posting a surprise profit. management also adding it as reduced excess inventory the sephora inside the kohl's is also boosting that much more on the state of retail th abercrombie ceo, stock story of the morning, surging more than 25%. we're back min just two minutes.

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take a look at copper prices falling again, hitting the lowest level since november of '22. now down more than 7% this month. carl, we look at dr. corp. macro economic, but it's been really tied to china lately a reinfection wave in china has been raising names like lvmh and hermes hitting it hard. >> we do not think policy makers will resort to zero covid again. >> even if they don't go all the way back to zero covid, you do wonder what that's going to do to the mobility, the realtime data trackers that we watch on consumer and transportation. it hurts >> sticking with commodities, by the way, take a look at our chart of the day key technical signals are looking bullish and that the sector is at a very cheap levels pippa stevens joins us to break

down some of those calls with wti, i think, three-week high or so, pippa. >> and looking specifically at energy stocks, after two years of outperforming, the sector is lagging this year and has the lowest p\e ratio relative to th s&p 500 in more than two decades. now, drilling down on the sector, the refiners are currently with valero energy trading at five times and six times forward earnings, respectively apa corporation and phillips 66 also on the relatively cheaper side, while williams companies are the most expensive names in the sector when it comes to wall street's favorite energy stocks, halliburton, targa resources and schlumberger are the top picks on the flip side, kinder morgan has the fewest buy ratings at 29% with occidental also at the bottom at 34% and coterra at 34%, as well now, goldman sachs said the

recent weakness stems from higher than expected russian oil supply concerns around industrial demand and a broad rotation into technology stocks. while acknowledging a more challenging environment than the last few years, goldman said that there are still bargains. the firm pointed to enterrify roe, conoco, halliburton, and hf sinclair as names that have underperformed relative to peers, but have positive catalysts on the horizon carl, back to you. >> pippa, thanks we'll watch that closely let's get a news update in the meantime with our contessa brewer hi, contessa >> hi, there, carl the united states is trying to distance itself from a dramatic raid into russian territory by pro-ukrainian forces who appeared to be using military equipment. russia claims saboteurs from the ukrainian military carried out that attack this week. but ukraine insists it was russian citizens who rose up independently. the u.s. has provided military assistance, of course, to ukraine, but it has tried to restrict that to defense

efforts. montana is the first state to pass a full ban on drag show storytimes the state's republican governor signed the bill into law this week montana is the first state to outright ban the storytimes without requiring proof of the performances being sexual in nature it's not clear how often such drag reading events have been held at public schools or libraries in montana russia launched a cargo ship to help resupply the international space station today. it's delivering clothing and food, hygiene products, and kits for science experiments. sarah? >> contessa, thank you coming up, look at shares of abercrombie & fitch. they're surging after reporting a surprise profit and raising guidance we have an interview with the ceo, next. plus, cnbc is celebrating asian american and pacific islander heritage, sharing stories of influential business leaders like william wang, vizio founder and ceo.

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welcome back check shares of toll brothers up almost 3%, moving higher on the back of strong results the company says the increase in demand that started in january has continued into the start of its third quarter. it's now up 30% for the year and sarah, they talked about the percentage of homes that are reliant on the builders and we know people are locked into their low mortgages. the market is depending on builders more than ever. >> the fact that it's luxury, first of all, i think makes it a standout that's where they tend to go and we get these good housing results off the pack of low mortgage rates and mortgage rates shoot up to new highs. we're back to 7% on the 30-year fixed. we'll start to monitor comments from commentary to see if these good trends in housing continues. meantime, story abroad, big drop for stocks right now.

the stock 600 posting its worst day in two months. little movement on the debt ceiling talks here in the u.s., plus stubborn inflation in the uk chief drivers of the sentiment there today. gilts, the british bonds selling off on that hotter than expected number one of the outliers this year is greece, as an unexpectedly large election vote comes in for the ruling party with the athens general composite up the new zealand kiwi indicating additional policy tightening may be over. the story abroad is in china its market index negative for the year, over fears of decoupling, developer woes, a weaker yuan, and now headaches about rising covid cases and a new infection dpbeginning there,

starting to hit economic growth. carl, wanted to highlight the story in the uk with higher inflation, which is leading everyone to worry. and con that's that with new zealand, which has been super aggressive on the rate hikes, and a big surprise today was the forecast that they came out with, signaling that it doesn't sound like the rates are going to keep going even higher. they will remain restrictive from 2024. a lot of people look at new zealand and australia and canada as leaders for the u.s they've done about 525 basis points of tightening, since they started this cycle so we're right behind them >> rates there at a 14-year high meantime, watching the chinese, at least the csi 300 index get wiped out for the year in terms of gains whereas south korea and japan, en fuego >> so much interest there. but the china alternative, whether they're capturing the china story or not, it's been

amazing to see the outperformance in those markets. we'll turn now to the retail sector shares of abercrombie & fitch s skyrocketing, up more than 20% after the company posted a surprise profit for the first quarter, raised its full-year guidance as well joining us in an exclusive interview, abercrombie & fitch ceo, fran horowitz welcome back it's good to see you. it's been bump any your consumer and retail earnings this quarter. but you're really a standout performer. why is that happening? >> first of all, excited to be here obviously, a nice q1 that we delivered. great buzz on campus today it's just a good point to bring our associates back. loving to see all the smiles and all the energy that's happening here that moment is coming from all of them. but a strong q1. we have two strong global brands our abercrombie business is just on fire. we picked up 14% over last year's 13%

we've got such terrific moment in that business and holster, we're making progress you know, we were disappointed on the top line, but again, one number doesn't always tell the whole story. and bebecame profitable, we rose our aur, our inventories are under control. so lots of good things happening and we're in control >> are you not seeing the consumer slowdown that all of your competitors and industry colleagues are talking about zpli mean, honestly at the moment, we are seeing no change to our consumer and off to a good start for the second quarter. >> because of the brand, you think, reinvention that you've done when it comes to -- you've been in a constant reinvention mode since the days of abercrombie teen mall retailer >> we've been on quite a journey. an exciting one. the abercrombie barand is not th brand it used to be.

it's a lifestyle brand the consumer is coming to us, they're loving our product we've expanded into all sorts of new categories she's buying dresses from us and our dress business is off the ch charts we've become a destination for dresses, they're also coming to us to go back to the office and where to work. we have a terrific pants business in men's and womens we turned the bem's business a couple of years ago and now turned the men's business. both genders are trending as well as geography as well. it's an exciting time for the br brand. >> it's carl i would love to get your take on what kind of window retailers can be locking in some of these tailwinds. >> we're excited about what we're seeing it was obvious a big component to the margin -- the groez profit that we were able to

deliver this quarter most exciting, that the flexibility in the supply chain is back. we've reintroduced the word chase into our vocabulary. that's something we are very good at here at abercrombie and the ability for both businesses are well under control down 20% to last year, and that's helping drive the business >> smars supply chain pressures go, can you essentially order and ship anywhere at will is there any danger in your view there would be any kind of echo from the pressures that we saw the last couple of years >> at this point, we're seeing things are back to normal. there's always going to be bumps in the road. anyone mozwho has sat in thisat are ready to take on any challenges but at the moment we're pretty fluid >> what about the mall do we have to worry about the mall again after the footlocker

results? what are you seeing in the stores you have in the mall versus off-mall. >> we are very fortunate to have an omnichannel customer. we're happy for them to shop with us wherever, however they choose to shop with us we were pleased with our traffic through the first quarter. we've been on a big journey with our stores, right-sizing them, right size, right economics. it's working for us. but he and she are an omnishopper. they can shop however and whenever they please to shop we've expanded outside the malt with abercrombie adult, opened up new street locations that are doing very nicely. always listening and learning and testing and seeing what the opportunities are out there. >> and finally, you talked a lot about the evolution of the abercrombie brand, which has completely changed what about hollister >> the hollister customer also has evolved. we really dove in and the team

has been hard at work. so denim is still a very important business for us, but you know, so are dresses and it's coming to us for dresses in holster as well as non-denim bottoms. the cargo trend is very important to us as well as the pant business for both the girl and the guy. it's a new category for them they're having fun exploring it. >> baggy cargoes i can't get into it, fran. i don't know >> they're back. >> all the kardashians are wearing them >> i know, trust me. fran, thank you. good to talk to you today. >> you as well >> thanks, bye meantime, netflix is password sharing crackdown officially rolling out in the united states. the stock is the frth oubiggest s&p gainer today we'll talk about what that means for consumers and shareholders after the break.

let's get to the speaker with an update on the debt ceiling. >> democratic leader before i was even speaker about ways that we can work together on the debt ceiling. hakim told me that he was going to follow the president's lead i went down to meet with the president right after becoming speaker, as y'all know on february 1st i said, let's sit down, let's work together, the democrats, they could have lifted the debt ceiling prior to me becoming speaker. they knew the outcome of the election already they knew we were taking power they passed an omnibus bill but decided not to do the rising of the debt ceiling

speaking with the president, i told him two things. we will not raise revenue coming into our coffers at any time in american history the problem is the democrats has been in power and increased the amount of spending to the highest level we have ever had and now we've had the highest debt at any time in american history. i think it's common sense, it's reasonable and rationale that we spend less next year than we spend this year. every household would do this we have money that sits out there, covid that hasn't been used. we now know the damage that the democrats have done in the majority when they spent that extra $6 trillion that brought us inflation, harming every single family. made us more dependent upon china. it created three of the largest four bank failures in american history in the last couple of months we cannot continue down this path but the president waited 97

address, not even to talk to me. he could have spoken to me and said, we were long on other angles, but he didn't. and now we're eight days away from biden having to default i don't want that to happen. that's why the republicans in the house lifted the debt ceiling with common sense, sensible things, pulling covid money back, work requirements, they let people go back to work. help our supply chain, make us less dependent on china, and more importantly, people working and they're paying into social security and medicare, making those two inentities stronger, d we're cutting the red tape, putting people back to work. that's reasonable. that's rational. but it sits in the senate. but if the with waits too long, he can always take that up >> has there been appreciable progress over the last -- >> look, there are differences where we know where it's at.

you have to spend less than you spent last year. that's not that difficult to do. but in washington somehow, that is a problem they have increased spending with the democrats in the majority on discretionary spending by more than 33%. no household has been able to afford to do that. we can find ways we can eliminate that the president eliminated a lot of places that we can't talk about it we have a short area to do it, but we found a reasonable way to do it. it's not that -- look, i think we can make progresstoday. i'm hoping that we can make progress >> mr. speaker, what do you say to those who believe you can't get to "yes" because so many of your conference can't accept anything else less than the bill you already passed >> one of the things that we should have learned, i will never give up for the american people those are the people i'm looking at can we get to yes? yes. we passed a bill the democrats -- >> but you need a bipartisan bill now >> so you just, every democrat,

nothing has happened in the senate i'm not a senator. i don't control the senate why didn't they pass something the president, he didn't talk to us for 97 days so don't blame me for reaching out to the democrats, for begging the president to meet with me or trying to find it and don't blame us, republicans, when we put a reasonable bill together that we actually took democrats' ideas so when we put spending for government and increase it 1% each year to cap it, so the slow of growth of government, that was a democrat idea. when we put work requirements in to help people get a job, that's something senator biden voted for and president clinton signed into law that was a democrat-supported idea it's not my fault that the democrats today have become so extreme, so far to the socialist wing that they are now opposed

to work requirements that they are now opposed to saving $1 less than you spent the year before. that to me really seems that the problem are the democrats. >> the white house says they're trying to meet you halfway so, i mean, at this stage of the game, since you are at loggerheads, what's the off-ramp here >> the off-ramp here is to solve the problem. to spend less than we spent last year that's not that difficult. they still want to spend more. you cannot do that no household would do that i explained this before -- >> -- their plan is unreasonable >> well, they don't have a plan. th they haven't passed anything you can't spend more money next year than you spent thissier i've explained this before a debt ceiling so the american people understand is having a credit card. you raise and hit the limit. so year over year, you kept raising the limit. so you're paying more interest so now in america, 17 cents out every dollar that comes in just goes to interest

but now you own so much on your credit card, you have to pay it, but you owe more than you make in an entire year. so now for america, we more on our debt than our whole economy is worth 20% more so should you just raise the debt limit or literally think, let's eliminate some waste if we had spent money, billions of dollars for a pandemic that that money has sat there for two years, pull it back. if we can have a provision to help people find jobs, let's do that if we can find a way to cut red tape to let people go back and build things in america and make us energy independent and not beholden to china, let's do that that's all we're asking. we're being reasonable >> you're going to need democratic votes in the house, definitely in the senate, you have a democrat in the white house. why not offer a single concession beyond saying, we're not going to default >> we've offered a lot of concessions the cap on the

spending is a democrat idea. the work -- the work requirement was a democrat idea. the time -- i can't help it if the democrats have become so extreme and now is a party of bernie sanders than the party where joe biden was elected. joe biden is the but if aoc and bernie sanders is going to run their party, that's not my fault i'm not even sure bernie sanders is a registered democrat >> mr. speaker, if the president does not agree to exactly what you want, are you ready to blow past -- >> okay, first of all, the premise of your question is all wrong. when have i ever said you have to agree to 100% of what i want? all i've said to the president from february 1, let's talk. i will not raise taxes why? because we are bringing more revenue in, even to the gdp, not just to the 50-year average but the history of america

only two other times have we brought in 20% of the gdp, 1944 and 2000 i will not put a clean debt ceiling on we've spent more than ever before and have the highest debt than ever before i don't think that's right let me finish the question and then i said to the president, but everything else is on the table. for 97 days he wouldn't talk to me so we passed the bill. we're not getting everything in our bill i'm negotiating with the president. we passed a bill that raised the debt ceiling if i did what you're saying, we wouldn't be talking, but i sit and i am sitting and sending our negotiating team down with theirs their team is highly respect on both sides of the aisle. they know this house and senate well, and i know together -- and maybe you discounted me, too, i didn't win speaker on the first vote it took 15 rounds. and, you know what, i think we're stronger for it and

probably we didn't solve this problem on the first negotiation, but it took us 97 days i firmly believe that we'll be able to get there. yes, sir >> you negotiated yesterday, said the concessions democrats were getting was to raise the debt ceiling so within the room there what concession are you willing to give in order to save the economy? >> i'm willing to make america stronger, to curb inflation, spend less than we spent before. when we're elected, the power is loaned to us from the american public who is representing them it's not my responsibility to represent the socialist wing of the democratic party if the democrat socialist wing and bernie sanders cared so much, they would have passed the bill they would have done something on the border. it is not my fault they won't take action. it is not my fault that the president would not meet with me for 97 days. i'm sorry. but the moment he was willing to meet with me, i've been there

each and every day, and i firmly believe we will get and solve this problem >> mr. speaker, how much time will you give your conference to read the debt ceiling bill once an agreement is reached? >> 72 hours. >> mr. speaker -- >> yes yes? [ inaudible question ] >> okay, ask your question >> okay, okay. are you afraid voters will -- any possible default and what gives you hope a deal can still be reached >> first of all, i don't think there will be a fault and i don't know how you would blame republicans. if there's any blame, we're the only ones who have acted if the american public -- if they get rewarded for not taking action and ignoring a problem, the democrats will win that award every day. that he did that with title 42 on the border. they've done that with inflation. they've lied to us and told us

it was transitory. they did that with the debt ceiling and told us we shouldn't talk yes? >> thank you [ inaudible question ] >> the only thing i look at, if the democrats control the senate and they control the white house, and they wouldn't even do a bill and they wouldn't even communicate, i don't think i have to say who is to blame. if the republicans have passed the bill that raised the debt ceiling, did it in a responsible, sensible way, i think the american public will understand that. first of all let me tell the american public, i am not going to give up i will stay with it until we can get it done. let's be honest about this we have to spend less than we spent last year. it is not my fault that the democrats cannot give up on their spending and you would think if you had the most revenue in the history of coming in, but when the democrats were in power they

spent the most money so we have the most expenses going out, the expenditures it's not a revenue problem -- >> speaker mccarthy giving us an update on the status of negotiations he will be sending negotiators to the white house later, kayla tausche, with an interesting choice of language saying he wanted to finish up talks, and said he firmly believes we'll get a deal i'm just curious about up interest in the choice of language this morning. >> reporter: well, it was interesting language considering how far apart the two sides are and considering there the speaker said when asked what concessions republicans would be willing to bring to the table, he said he would be willing to lower spending, which is what republicans' position has been all along, and yesterday members who are leading these negotiations, when asked what they would give democrats in return, they simply said we'll raise the debt ceiling that's what we'll give them in return clearly republicans are looking for democrats to move their position, to meet them closer to where they are speaker mccarthy denied that the only deal that could pass was

the bill to cut costs that he passed in late april suggesting that there would be support for any agreement and reaffirming that he would give his conference a full 72 hours to read that agreement once reached. there was some speculation that perhaps he could waive that pledge that he made to them in order to move this along quickly. but he's going to hold firm to that time frame which could take you right up until that deadline we'll see what happens when those talks begin just across the street from where i am here, they're scheduled to begin at noon eastern time. guys >> kayla tausche, kayla, thank you very much. let's check back to our ceo summit here in santa barbara joining us now is marissa myers, one of the speakers here, the former ceo of yahoo and now of sunshine it's good to have you here >> thank you very much for having me. >> how is it going you launched sunshine back in 2018 >> we started the company in 2018 we recently launched our first product which is sunshine contacts we have a few other products

like sunshine birthdays. we're focused on everyday tasks, specifically things that help you with your relation shms. we started with contacts and then we're going to build out other things that help you stay in touch with the people you love, care about and work with >> when you're starting a new tech company, it has to be an ai company. how much ai, generative ai, is involved in what you're doing? >> we have some involvement. we have basically smart technology that tries to figure, for example, duplicates, who has changed jobs, who has gotten promoted, how has our contact information changed over time, how do you know them all those times of things. we have some ai that we built on our own to basically make some of these mundane tasks that are in many ways too boring and too involved for people to actually do no one really manages their contacts and if they do they don't manage them that well. >> birthdays, too. >> you can use ai to do that >> you were asked about this in your chat with julia in your

session here at the conference, and i'm curious, you have such a famous history of knowledge and experience in the early days at google, and i wonder how you think in terms of the soil being rich to grow something, how this moment compares with that moment back then? >> i think every moment is unique, and they have their challenges and their opportunities. i think with the moment that ai is having now, some of the recent advances, the push, and i think there's a real optimism and belief certainly i have it, that we're going to see amazing progress in terms of how easy everyday tasks get to be and what we can achieve and the type of accuracy we can do it with. >> you think that hits people in the face in the next 12 months >> i think it happens over the next few years i think it will come in different ways you'll see amazing advances in transportation and health. we want to see those advances come to everyday tasks sometimes things that might be less far flying but actually the technology is still useful and actually helps people understand what ai can do for them on an

everyday basis >> every time there's a ceo opening, anything related to tech, people say marissa will come back, disney or twitter, your name is always mentioned. do you have those discussions, or are you focused on sunshine >> it's flattering but i believe in sunshine and i believe -- i really want to help build a company and be participate of building a company that does what google did and yahoo did and makes things better for millions of people >> it's a tough fund-raising environment, a tough tech spending environment despite the ai hype. is that impacting you? >> i think it's an unusual moment and we're all trying to find ways to navigate it but for us it's really about focusing on the user value proposition and growth, how can we reach more users because our product, the more data you have, the better ai gets, the more people we have on our system, overall the better the accuracy of our product gets.

how to make the product the best we can make it >> it's been fun hearing about it marissa mayer, thank you appreciate it. coming up on noon eastern here we'll keep our eye on the status of debt ceiling negotiations in washington don't forget fomc minutes coming up at 2:00 as we did touch the lower end of the range the last few weeks let's get to "the half." carl, thank you very much. welcome to "the halftime report." i'm scott wapner front and center this hour the moment of truth for tech and ai, both of those trades as nvidia reports earnings in just about four hours that stock has surged this year more than doubling we discuss all that is riding now on that release. joining me for the hour today everybody's at post 9, joe terranova, kari firestone, sarat sethi. the dow is down 265. the nasdaq is under pressure about 1% as well there's the s&p, the broader market under pressure, too watching the debt ceiling obviously just coming off the speaker's comments there