guide you through a changing world. ♪ good tuesday morning i'm sara eisen with carl quintanilla. setting the agenda former federal reserve official vince reinhart saying not hiking tomorrow, which is what the market is expecting, would be a mistake. david marcus with us after correctly calling the nvidia surge on this ai enthusiasm. later the executive chair of aston martin formula 1 lawrence stroll on the slowdown in the

luxury market despite a rebound in china. >> markets responding pretty well to that cpi number with year-on-year coming down 4%. s&p got to 4373 at the open. being led by some important sectors at this point. >> i'm watching materials because if you want to see how the market has been broadening out in terms of the rally and not just technology, look at some of these cyclical groups. materials is one of them hitting a one-month high at 2% and up nicely 7% or so for the month of june. still having a rough year but some of the bulls are paying attention to the expansion of the rally. why? well, it started with that good jobs report we got what was that, a few weeks ago higher than expected jobs, less wage inflation confirmed today by more signs that the market is feeling good that inflation is moderating it continues to come down in the right direction at a speed that's probably not as fast as the fed or anybody would like to see but 4% is a far cry from the more than 8% we were at the peak of this inflation cycle.

>> and still getting calls for a two-handle by the fall we'll see what happens with commodity prices watch oil, by the way, trying to get back to $70. best day in a month, even as goldman sachs, i wouldn't say throws in the towel but they lower their brent forecast >> i wonder if it's the soft landing view we also had a surprise rate cut from china, which helps on the optimism side. you know, crude oil and commodities have been under pressure on the disappointing china recovery today they're talking stimulus. >> goldman saying the cpi report backs up their view for a skip this month but a hike in july. >> which is where the market is. >> we're above 50% for july. below 10% for june on odds of a rate hike. that's the skip. meantime investors' main focus is the fed with the consensus shifting to that pause. ahead of the possible hike in july steve liesman has more from our

cnbc survey with shifting predictions of a recession. >> this has been an interesting one. i'm calling this the recession, one we keep waiting for but never comes. the latest cnbc fed survey, an average put 54% probability on rye session, down a couple ticks from last survey but still the average. quite elevated that risk of recession. the average month for the expected start, it keeps changing in december 2022 it was june that the recession was going to start. in march it was september. the current survey pushes it ahead again to november of 2023. the reason, of course, the unexpected strength in the economy in the first half of the year let me show you the quarterly data here. first quarter came in actual 1.3% it had been forecast as low as 1.2% the second quarter at 1.4% is now the forecast

it had been previously forecast as low as minus 0.6% you can see the forecast for the recession in the future. those future quarters start to flat line, minus 0.3%, 0.2%, and positive 0.1%. perhaps expressing the exasperation of many forecasters out there, economist hugh johnson writes, the case for a hard landing statistically is very strong and getting stronger, but where is it? i still expect the harding landing but my confidence in time-worn predictors is being challenged, to say the least here's the inflation outlook we get a two-handle in 2024. not the fed's target but getting closer unemployment, that 1.45 came down as well, seen at 4.50 in 2024 john donaldson, one of the long-time contributors to this survey, he wrote in saying, i don't know to more questions this time around than he ever has before the uncertainty among

forecasters may be a big reason the fed is going to take a pause here, give a foggy economic situation time to clear. maybe figure out if the gado is coming or not. >> thank you. our next guest says not seizing the opportunity, not hiking tomorrow would be a mistake. joining us, vincent reinhart why do you think it would be a mistake? >> we heard the case, employment is growing strongly, a third of a million workers on payrolls, just two weeks ago pressure on labor market the unemployment rate is quite low. yes, inflation has cooled a little bit, but it's still twice the fed's goal and it's stubborn witness the other central banks that decided, got to hike. that pause didn't quite make sense. >> that's why people think they're going to go in july. >> i hope they go in july. the problem is, when you stop, it becomes harder to restart

i always say - >> why >> isaac newton, a body in motion stays in motion a body at rest, stays at rest. what's happened since we got the cpi data, market said they don't have to go well, maybe they won't really go in july. maybe they'll ease sooner or later at the end of the year and that outside pressure makes it harder. you also embolden the doves within your own committee. say, hey, you made a good case in june not to hike. why don't you just repeat it this time around and so i think the chair powell wants basically to teach us -- this is a teachable moment he's going to show us the fed can be nimble, that it can, you know, put off for more information. it's necessary response. but it may be a little -- it may be too clever by half. >> i wonder if part of your view is just sort of a closing

political window to move either direction, right, as we get closer to an election? no >> if i were on the staff of sherrod brown on the banking committee, i would be drafting the letter right now saying, thank you, chair powell, for the wisdom of refraining from policy action this afternoon. >> and from now on. >> that's exactly what you have to do from here on, until the end of time. so, i think -- i think internal pressure, political pressure, and then the market wrap-around is going to make it harder for them to act. >> does that mean there's no way to ever go back to a day in the pre-forward guidance era where you move the dial, meeting by meeting, as we went along? >> it's tough. there's a couple reasons the most obvious ones, put yourself in the place of chair powell we think about the 2:00 announcement of the fmoc he thinks it has a half hour before my press conference

starts do you really want to surprise markets and, therefore, color the questions you get from reporters to color the light, the numbers that scroll underneath you red instead of green? i think the press conference changes the dynamics some. and, in general, you know, given the statement the committee's more scripted, it's just a harder boat to turn. >> so, the counterargument, vince, is that they've done a lot in a really short time period and we haven't yet felt the full effects of that. we've seen some regional bank and some bank blowups. we're monitoring some problems in the real estate market, the credit market. things aren't exactly hunky-dory so let's wait to see what happens and we can always go again. >> i would say if it's a mistake, it's a modest one that's for three reasons the one is they've raised rates a lot. getting more information to make a more informed choice next time around

if you can do the next time around that's the big qualifier makes a bit of sense second, there's quantitative restraint coming the treasury is selling a slug of spills. up to now, quantitative tightening by the fed has been offset by treasury action. the fed ran down three-quarters of a trillion. that was from one pocket of the government to the other pocket of the government. and i think the third reason,ist not as important if you keep the funds rate restrictive you don't know what the mutual funds rate is. put it in a region where you're sure it's restrictive and then keep it there until evidence

demonstrates you get what you want if they don't raise it quite enough, they just have to keep it there a little longer so, they can offset this mistake by doing the right thing later on just keeping the policy rate firmer. >> i guess the risk, vince, is we get stagflation for longer period and inflation doesn't come down fast enough. >> they're not all the same looks. the advantage of going sooner, going there and getting it over with is markets don't have it hanging over you the disadvantage of moving your plateau to a lower rate is inflation is going to be even more stubborn. we'll have a longer period of time before inflation gets back to the fed's goal. it's not going to feel good. >> thanks for talking us through it i feel like this has to be the deliberation inside the fed as well right now vince reinhart, appreciate it. getting some may orders and deliveries out of boeing

let's get to phil lebeau >> take a look at shares of boeing in may the company reported orders of 50 aircraft and with year-to-date total of 127, that's not the focus of the may orders and deliveries. it's more on the delivery side in mid-april there was the warning it may have to do inspections and reworks of some 737 maxs because of an improperly installed bracket in the fuselage they delivered 50 aircraft in the month of may 36 of those being maxs we're not seeing a big impact yet on max deliveries with year-to-date deliveries totaling 206. by the way, the total for airbus in terms of year-to-date deliveries is 244. the backlog standing at just over 4,600 aircraft. that is likely to grow over the next several months because there's several big orders still out there, including some that could get announced next week at the paris air show guys, back to you. >> phil, thanks for that phil lebeau. still to come, former paypal president and coinbase board

member, david marcus called the nvidia surge in march. we'll get on how he's thinking about the recent s.e.c. crackdown on crypto. the street not as bullish as you may think at these levels. ubs joins 12 other wall street firms as it downgrades apple to neutl. he atalwhraweavth cl en "squawk on the street" returns . could be the food i'm eating. no artificials. or these toys that get my mind right. ♪ or maybe it's petco, keeping me healthy for less money. wait, what's money? better quality pet care for less human money. [tweet] oh, a bird. it's what we'd want if we were pets. get $10 off $50 at petco, the health and wellness company. fresh, warm hot dogs! when i'm not selling hot dogs, i invest in a fund that advances innovations like robotics. fresh, warm hot dogs, straight out of my torso!

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welcome back our next guest has had his finger on the pulse of some of the biggest trends of the year for example, he predicted nvidia's surge back in march now calling for improvements in fintech following the bank collapse, as we saw this spring. with the s.e.c. crackdown on bifans and coinbase, he's advocating for more regulation joining us this morning, david marcus, board member at coinbase and president of paypal. great to have you back good morning >> great to be back. >> a number of areas we can go i guess nvidia is the best place to start i just wonder how you think about your call, which obviously predated their guidance by a pretty wide margin >> well, you know, when you look at what's happening in the ai world right now with the explosion of use cases and companies building on top of

these chip sets, it was pretty obvious to me at least that nvidia was going to be the big winner because all roads basically lead to their chip sets and they announced, i think, a week ago or two weeks ago the combined cpu/gpu chip sets that will power most of the data centers that will be behind all of these ai applications so, you know, it felt -- it felt like they were going to be the winners there. >> yeah. you mentioned, here's your tweet where you tuck about picks and shovels. you ask, will it be worth more than appleby the end of the decade do you have an answer to that? >> the jury is out we'll see how things play out. they seem to be in a great position right now to have a potential winner takes all moment and, you know, competition will heat up, but i think they're in a really good place. >> everyone says we need regulation, we need regulation, we need regulation i know you say it about crypto as well. if there's regulation on ai, could it be harmful to companies

like nvidia, which benefitted so much from the surge, or constructive >> well, look, i think here in the u.s., look, i'm an immigrant. i'm a citizen by choice. i came to this country to build tech companies because we had a level playing field and we have clear rules. and, you know, it worked out for me, but i feel like right now we have uncertainty in terms of what regulations are going to be when it comes to crypto, also ai and when you look at what's happening in europe, with france and the uk, when you look at what's happening in asia, with singapore and now even china taking a different, more welcoming stance towards crypto, you look at where we are you know, we're chasing away innovators, builders, and that's what this country was built on i feel passionate about us getting back on the right track here and giving people clear guidelines and rules but also

while protecting consumers really, really fostering innovation because that's what we're really great at. >> although, i mean, you read these complaints be, the binance was classic where the s.e.c. is alleging flagrant disabuse of the law. do you think begigensler is ovei skis or can he push out innovation >> i think you need to be careful not to throw out the baby with the bath water because there are bad actors out there this happened before if you look at the early days of wall street, it was pretty bad then regulation came in and it was actually able to give clear rules of the road, and, you know, we're now in a better place. we have to protect consumers but not at the cost of sacrificing our role and our place in what is going to be the greatest

revolution and evolution of our financial system in many decades. and i think if you look at the complaint towards binance and coinbase, they're very different in nature. and the allegations are very different. so, we shouldn't -- we shouldn't basically conflate these two >> does it make it harder, david, to do what you're trying to do to build out a crypto payments platform? >> well, you know, if you don't have clear rules, it's not great. as far as we're concerned, we're in a much better place because we're building on top of bitcoin which has clarity in terms of it not being a security what we're trying to build is an open payment protocol for the internet and enable people to send and receive payments the same way they send and receive emails and text messages building infrastructure for that on top of bitcoin is just a way to guarantee at least that, you know, you're not going to build an infrastructure that is or potentially will be considered a

security down the road >> finally on paypal, there's another downgrade today as the street's trying to figure out what their move needs to be. i just wonder, how you characterize their challenges and how much is related to, say, apple's move into financial services >> look, i think paypal is still a phenomenal company it has so much upside potential. it needs to innovate and continue to push forward it has hundreds and hundreds of millions of consumers using their products and they're in a great place because they have the two sides of that ecosystem. they have consumers and they have merchants on the other side so, there's just so much room for innovation and upside there. >> they also need to announce a new ceo, which they're also searching for, right >> yes, that's what i heard as well. >> between ai and payments and crypto, david, we're grateful. we look forward to having you

back as soon as we can good to see you. >> thank you for having me. >> david marcus. aston martin executive chairman lawrence stroll coming up talking formula 1 and potential rebound for china sales. keep your eye on global payments jeffries downgrades them saying they don't see any near-term catalyst we'll discuss that call with ceo cameron bready who joins us tomorrow on "squawk on the street."

the european market set to close in a moment. indices largely higher across the board thanks to strong economic data. u.s. inflation in line uk pay data dwrooifing some of the gains. annual wage growth in the uk up 7.2%, which is worrisome for the inflation front. off a 6.7 consensus estimate the yield on the two-year gilt rising to highest level since 2008 on that release obviously, implications for the bank of england they have to

keep going the story abroad is china, that country's central bank with a surprise cutting its seven-day reverse repo rate by ten basis points signaling concern over the chinese economy's growth, making the case for rebound which is leading to a rise in chinese names today. the china internet etfkweb up 4% the surprise rate cut a signal more could come. a report that said they had 12 different modes of stimulus they're looking for to boost the real estate market there, according to a bloomberg report. all of that getting the market excited about china stepping in where it has room. doesn't have an inflation problem to fight the weakness in the economy. >> if anything, continues to export deflation and ppi that's one reason b of a's contrarian trade is to buy ai and hang seng. >> because they think it's too

cheap and about to stimulate, that was the signal overnight. >> their reverse repo cuts that's the first time in ten months we're watching china closely. let's get a news update with pippa stevens. >> former president donald trump is on the attack this morning just hours before he's set to surrender to authorities in miami in his classified documents case trump called special counsel jack smith a thug and trump hater on his social media platform truth social this morning. a law enforcement source says he will not have his mug shot taken this afternoon and his hand will be scanned digitally for fingerprints without the use of ink. trump was indicted last week on 37 felony counts. at least 11 people are dead and more than two dozen are hurt after a russian missile attack on a warehouse in an apartment building in ukraine overnight. it comes as kyiv launches a counteroffensive against russia. more than 15 months after moscow's invasion.

and more than 350,000 jeeps recalled because rear coil springs can fall off while driving. the recall covers some grand cherokees and grand cherokee sls. there was a recall of some of the same vehicles last month because of steering problems after the break, a rare downgrade for apple. we'll break down that bear call next. plus, june is pride month and cnbc is celebrating all month long by sharing stories of corporate leaders like google'd head of brand accessibility. >> my advice is to tap into the power and uniqueness of your identity that is the undeniable you and will help build your career growth early in my career, i hid who i was at work. a queer, disabled woman in tech. it wasn't until i started bringing all aspects of who i

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two hours into trading let's get a check on what is moving we're looking at a solid rally cat, amgen leading the dow let's go post to post with bob pisani. >> with the s&p at new highs we're looking for the market to broaden out. we talked about the need to broaden out. we want to see material and energy and the lag, starting to do a little better the signs are there but not enthusiastically i'll give you some examples. the bank stocks are doing okay wells fargo here, 43, that's probably the highest level since march. you see this volume, 7 million shares wells fargo will typically do 22, 23, 24 million shares in a day. that's a very light volume right now. this tells me it's not so much buying enthusiasm, there's just a lack of sellers out there. you want to see more enthusiasm,

higher volume. same thing with the material stocks here's anthony he trades freeport, nice move up, 5% the same thing here. the highest level since april for freeport same thing with the volume look at the volume on the left side 5 million shares, 6 million. this will normally do 13 to 15 million shares a day same thing in the energy names halliburton has been doing pretty well and close to the highest level since april. the same situation here. you see this 3 million, 3.8 million, they do 11, 12, 13 million shares a day you can say to yourself, all right, we're getting into summer volume, seasonally light wait a minute. if you have a true rally going on, there's no seasonality going on buyers come in no matter if it's july or september. the thing we're missing, volume to back up some broadening out of the market that we're slowly

starting to see. back to you. >> thanks so much. bob pisani. from the desk of we're taking a look at notes grabbing our attention. we kick off with the downgrade of apple from ubs. they expect iphone growth to slow in the second half of the year they talk about a premium valuation and in the long term they think growth outside u.s., china, europe will not be enough to drive growth above mid single digits joining us this morning is our own steve kovach coming off all-time high and a market cap of $3 trillion, at least in sight, steve. >> that's right. they keep inching closer and closer to 3 trillion despite this downgrade from buy to neutral from ubs, i'll use their word, they nudged their price target a little higher to $190 this sh is an issue we've talked about from apple, we hear from tim cook, demand is softening. they make a good point in the thesis they lay out saying, look, the most important markets for the iphone is still china, still the u.s. and still europe.

while we heard tim cook last earnings call talk so much about the emerging markets, talk about india, that store opening in india we covered a couple months ago, it's just not enough growth there. the growth is on such a small base that it's going to make up for the softness in demand in those bigger markets this also trickles down to services, carl, because without a bigger install base, there's not more people buying apps and and services, apple care i will note, there is some bright spots, b of a had a note last week saying app spending is turning around, getting backes specially in gaming. that was a weak spot throughout last year in the app store huge profitable part of the services business, carl. >> ubs, they use their evidence lab, i guess, which is what they survey and try to get purchasing intentions from consumers. they flagged some risk around

12-month purchasing intentions in uk, china and japan down a few hundred basis points from prior surveys looks like kind of stable over the next six months. but weaker is there a high correlation of success rate with predicting that kind of stuff >> i'm not sure what their success rate is predicting this, but it does echo what we've heard from the company itself. for example, their guidance, while they don't give formal guidance, apple, they have sai they do expect revenue to -- they implied, basically, overall revenue is going to be down about 3% or so that's what this report also reflects but they don't seem to be buying the growth story apple is trying to tell around these emerging markets. there's still so much room for them to grow apple is making some aggressive moves there. i mentioned the apple store is opening in india vietnam they opened an online apple store in the last couple of months there. they're trying to make these

emerging markets happen. as ubs lays out, they did the math and said it's not going to be enough to make up for the falling demand in those bigger markets. >> steve, thank you. steve kovach breaking down that apple call to neutral. let's turn now to retail, another call getting our attention. loop upgrading ulta beauty to buy, implying 22% upside for the retailer pointing to the recent luxury expansion as a multiyear growth driver as well as shop in shops in targets across the country. court courtney reagan here to break down that call >> ubs just also named it a top idea coming out of the earnings son. i think a lot of the price action we've seen in the stock is driving some of these calls because it sold off preci precipitously something like 20% and it's well below its historical pe over the last five

years. we know history doesn't always mean it's going to happen the same way in the future i do think the loop capital note points out some things, particularly with the shop in shops in target. ulta does not own that inventory. target does. target is paying for the buildout there the risk to ulta is relatively low when you look at that as a business expansion and target customers can join that ulta rewards program so they get extra customer data. we know even in times when consumers pull back, something like luxury cosmetics is an area we still will buy. it's a small luxury that still makes us feel good as part of our regular routine. i think ulta could be a beneficiary there. we know the comp sales have been incredibly strong over the years at ulta. it's almost unbelievable when you see the numbers quarter after quarter get propped up i think there's a lot of interesting notes from the analysts about why this could be a winner, both from a fundamental and technical

perspective. >> the underperformance year to date is interesting but it's not as bad as el is that because of china or something else >> i think so. i think that china story is a little touch and go. i think we've seen pockets where we've seen strength, particularly in personal care and cosmetics when you're talking about china and the reopening there. but it hasn't been as consistent or potentially as accelerated early on as i think some were calling for. there's a bit of caution there as well. >> thanks, court interesting stuff going on in beauty right now meantime, billionaire lawrence stroll, executive chairman of aston martin joins us on the other side of this break with robert frank. >> we're going to give you the first look inside aston martin's new flagship in midtown where customers can pick their own seat fabrics and custom colors and can more than double the price of their aston martin.

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we've been the brand leader for over 75 years. when i finally could hear for the first time, i could hear everything. unlock our best deal of the year during our 75th anniversary sale. call 1-800-miracle today. welcome back let's go to our robert frank live with aston martin executive chair lawrence stroll at the unveiling of their new brand center in manhattan. so excited for this, robert. >> yes, it is an exciting day for aston martin lawrence, thank you for joining us good to see you. >> good to see you. >> your stock hasgotten an bum

in investment from gilli automotive group they bought $300 million in stock from you, your personal group as well as from the company. what will you do with those proceeds and are you -- do you think they could take an even larger stake in aston martin going forward? >> first of all, good to see you again. the share price has gone up not only because of gili but the tra jek over to of the business. everything i said we would do is now coming to frugs, including this brand new central gilli are good investors they believe the share price isunder valued so a growth opportunity. in addition, we're of the same mindset and they believe in my vision of how to grow the business building the next great, ultra, luxury brand and they believe they can play a part, in helping

with components for our vehicles, small volume manufacturers like ourselves need help, our technical agreement with mercedes, they're also a 10% shareholder in mercedes so it keeps it in the family and will help us with growth in china. they could accelerate our business plan in china using their muscle, which china should be our second largest market after right here. >> are you concerned right now, given the political tension with the u.s., which i assume is your largest market, and china as a partner about that relationship and that supply chain? >> we're not concerned at all. they are probably the most westernized of chinese companies, they also own volvo it's not a china issue for us at all. >> this design center, tell us about what this means for the business and just the importance of customization for your bottom line, which in the u.s. that customization program grew 92% last year. why is that such a powerful driver right now in the

business >> as i said three years ago, started as executive chairman, again, we're out to build the ultraluxury, high performance, greatest brand in the world. part of the journey was first delivering our fantastic dbx suv. took 20% in some countries, 25% in the luxury high performance suv, incredible after two years. uk being the first, u.s. being the second through that experience, we said personalization will become a very big part, particularly in our dbx 707, the second suv we launched and we've seen a tremendous uptick in personalization. first thing i did was align supply and demand and operating this as a true luxury business, only manufacturing to orders we've seen customers want to take and make their cars exclusive, make it personal, as is happening in the whole luxury sector i don't just think it's automotive the second part of the journey was delivering on all our

generations of sports car. we're coming up with our first one tonight. we unveiled it three weeks ago in canada, tonight in united states, our db 12, first of next generation sports car. many to follow in the next 24 months the last part of the journey was in order to really be a luxury company, you have to have a customer luxury experience there's no better luxury experience, i hope you will agree, than walking into this great brand center there's unlimited amounts of personalization you with do, being in a great environment, a traditional english great room to sit and order your very special and customize your very special aston martin last piece of the puzzle from where i started 3 1/2 years ago to now the customer experience and wrap this up with our formula one team, which is having a fantastic year on track, which is a trickle-down effect on the whole brand. aston martin is on fire right

now. >> you know i'm going to pick up, robert, on the f1 point, lawrence, there in the studio, f1 fan i was going to mention the good performance of your team so far this year. my question is, you made your fortune, lawrence, in retail and and i'm curious why you bought the team, how you see it as a good investment and how profitable it is. >> i made my fortune building brands formula one, the business itself, i'll use that word itself, is absolutely on fire. i think you've known the trajectory and growth of formula one, over 2.3 billion people watching the race in 23 countries. it's 100 million people every race touch or watch a formula one race there's no bigger sport in the world that has those kind of numbers. a lot of the growth is coming right here out of the united states with the introduction of miami, very exciting. we'll have las vegas the weekend

before thanksgiving this year. so, the sport is really, really on fire. the enthusiasm from the fans, the fan engagement even you look at austin. i was in austin four years ago there were 80,000 to 100,000 this year austin, 185,000 people there. the growth of the sport is fantastic. i always viewed a formula one team should have a true value, you know, there's no greater franchise in the world, a sport that goes to 23 countries. you look at the value of an nfl team or nba team or nhl, whether it's two, three, four, $6 billion, there's no reason formula one team shouldn't have the similar valuation. to realize the greatest vurn what excites me about the opportunity. >> how about aston martin itself, we have a lot of cross-currents in the economy with volatile interest rates, stock market, slowdowns in some

aspects of consumer spending are you seeing a decline in orders, pricing and the broad high-end consumer, how are they doing? >> no. our order book has never been stronger globally in all markets. and as we mentioned, our last quarter, our asps are up 25% they're up 35% over a few years ago. so, we're increasing prices without resistance and we're taking more orders with higher prices can that's really landing -- aligning demand with supply. without having inventory on the market, you have to go in and buy an aston martin, you have to order it that's having great effect on the residual values of asps. both sports car and suv. >> lawrence stroll on fire in the show room and onthe rice track of formula one thank you for joining us carl >> good stuff, robert. that's robert frank. inted reportedly in talks to m.vest in chips ar

the implications for softbank as well after the break

intel ramping up after there could be the busiest time this year. >> this could get messier. closer to the blockbuster arms

idea. one state continues to be on fire this year. intel as a personal anger investor. they plan on being a strategic investor. they could go to other investors and say, the rival investor is not a success. after a decade of decline, after seeing delays in next generation chips, part of the big turnaround plan is building a business. out of the actual manufacturing of chips. not the design. it can struggle to develop its own processors. it will help to manufacture those chips that they are developing in-house with the help of cutting edge design.

in a convoluted way, they can continue to work ith the most important tech companies making the participation in the anchor investments interesting. the key question is how would the investors feel about this? inspected to raise almost $10,000. more than the total amount raised in all of the ipo market this year. that would require the significant investment by intel. this will cut the dividends earlier this year. to be seen as getting in at the peak of the height cycle is not sustainable and does not last. if there is further room to run, it could be a positive. it is a very strategic place. just as it is hitting the public markets. as ship interest growth.

investors are not upset about this. >> what you hear about valuation? >> looking at a valuation of $30 billion and $70 billion. you take the 10 billion biggest members. that is the benchmark etf. they traded an average times of 20w■3. that would imply the enterprise value of $30 billion. that is pretty good. it's all about how they can sell it themselves. with the mega designer of chips in-house. remember, he stepped back from the day-to-day operations because he needs to get this ipo out.

>> it is interesting on the intel front, having to reframe them now as a source of capital for the industry. curious to see at what point management starts to communicate that new framework. >> we are watching the story about the nvidia sco was in taiwan with a tiny shadow for the foundry business. that was a piece of positive news for this business that many people have been skeptical about. they dominate the geopolitical reasons bringing that back home. it is a steep hill up. it makes sense to be a strategic investor when they will be designing a lot of the next generation chips.

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wall street is buzzing about possible new ownership ad manchester united. likely to succeed in his takeover bid. it was reported that he submitted a fifth and final offer. 30% of the free market. still in double digits. bidding wars have ensued. it is interesting, manchester united is not the team that it once was in terms of reputation and performance. a huge infusion of money could change that and could set them up. >> it is obviously qatar, saudi

arabia, they are interested in sports. golf or soccer. >> they have already been in f1 for many years. a trend that they want to continue. these teams, these leagues, they are blossoming in valuation. >> the fed meeting is officially underway at 10:30 this morning. >> expectation is they skip. >> we will see you tomorrow. let's get to the judge. >> thank you very much. welcome to the half time per report. what it means for the rally tomorrow looming. joining me for the hours today. let's check the markets. a good day going on the back of that. there is the tao, on pays for this past month