good wednesday morning i'm sara eisen with carl quintanilla from post nine of the new york stock exchange. setting the agenda, marathon asset managements bruce richards with us at post nine to weigh in on the fed, the credit cycle, and where the opportunity lies in this market >> hbe ceo antonio neri is with us and later, first on cnbc, the newly confirmed council of economic advisers chair, jared bernstein. he was just confirmed last

night. he will speak with him live from the white house this hour. >> meantime, markets will be suppressed on the dow because of this commentary from unh about the medical cost ratio overall, s&p continues to chug along, about 20 points now from 4,400. one thing i think sarah, we've been talking about, broader leadership, the transports making a move here, up 1.5%. it's going to take you back to say, late march or maybe mid-march, something that you would not ordinarily see if you were counting on a recession >> the cyclicals versus defensive chart has been totally flipped during the month of may, where cyclicals tied to the strength of the economy are outperforming, but we've got to talk about unh today, because it's by itself shaving about 200 points off the dow it's a huge weight right now it's why the dow is negative and everything else is positive on these comments at this goldman sachs conference from united health's ceo for medicare and retirement, saying that seniors are opting for more procedures that were delayed during the

pandemic, and it's leading to rising cost for insurers you're seeing this pill in effect across the entire industry with names like humana down sharply there's united health. big gap down >> it's interesting, we've heard from intuitive surgical that procedures were beginning to bounce coming out of covid people more comfortable going to the hospital but this sort of caught the street by surprise of course, what we know is that it's maybe negative for insurers cost, but device makers, the strikers of the world, that's good news for them >> and pharmaceutical companies as well have been waiting to get back to normal as far as the rest of the market is concerned, there's strength today in groups like the defensives, the real estate, staples, but also financials are up, technology is up, materials. it's a fed day it's hard to read too much into any of the action before 2:00 p.m. we're going to get a bonus, which is the dot plots, the expectations from the fed members about where they see rates going. expectations, did they raise that to communicate, pause in june, which is what the markets expects, hike in july. i think the reaction will be

interesting, so much of this is priced in, including a hawkish message from powell. >> that was the take earlier in the week do you fear the dot plots. and is it going to underscore whatever expectation fears the market is still hanging on to? >> exactly let's talk more about this, because our next guest is still expecting recession to come next year and thinks after a year and three months of hiking, the fed is likely done here and will be on hold for a while? where's the opportunity moving forward? joining us is marathon asset management ceo, bruce richards welcome back great to have you on a fed day >> thank you >> what do you think is going to happen today >> after 15 months, ten straight hikes, this is the day it's the day where they move sideways and they no longer hike and forget that 70 to 80% probability that a hike comes in july or september. i think they're on hold for an extended period of time. >> you think this is it? they're done >> we're done after today. with the economists that work at the fed, the ph.ds and the economists that work there on these models, they have a

variable in the equation called "r." and "r" is interest rates. and that's the one thing that they can control more than anything is "r," interest rates. and in that variable, they try to equate where demand is equal to supply. because when demand is greater than supply, it creates a lot of inflation. so they try to create a dynamic where demand is equal to supply or just marginally higher than supply, creating a 2% inflation rate so they don't want to tinker with that, once they've settled on the rate. once they stop here at 5, i believe they're done for an extended period of time. an extended period is the rest of this year into next year. i don't expect any fed long of rates for some extended period of time. because they put a lot of money in the money supply, cut rates to zero for too long, credit too much inflation a lot of that is on the fed. and what they want to do, really, is exit left let the markets do its work. let the work they've done at 5%, fed funds rate, do its work to slow things down, slow the

demand side of the equation down and i think they don't want to tinker with it my best advice for chairman powell is be ferris bueller. like, take some time off after today. >> so, this is where fed policy gets more into art than science, though because you could make the case that demand has not fallen off enough to prevent inflation from remaining sticky, especially in core services parts of the economy, and unemployment has not cracked, and therefore wages will continue to put pressure on prices >> so make that case >> i just did. >> you did that's a very eloquent case. and sarah, you make a strong argument there let's talk about the reality on the ground, from the vantage point that i see and let's go back to june 8th, where the debt ceiling was fixed and it was codified by congress, signed into law by president biden. and now there's two major impacts that come from out of that let's talk about one and we'll talk about the second in just a second the one very important thing is

beginning september 1st, about 30 million americans -- remember, there's about 150 million americans that work. so 30 million americans, about one fifth the working force have to start paying their student loans. 30 million have to pay between 300 and $400 on average, monthly, which is about $100 billion plus of consumption on an annual basis that starts at september 1, after never having paid a student loan since march of 2020. three years and six months will be september they have not made a mortgage -- not made a student loan payment and all of a sudden, they're starting to have to pay. what does that do to the demand side of the equation because there's one fifth of all consumption in this country. what does that mean to macy's and lululemon. what does that mean to companies that have discretionary spending >> key demographic, too. >> as the summer comes to an end and these are big cohort of our travelers, they'll start

traveling less the second thing that came out of the big debt ceiling arrangement is that janet yellen can now start to spend again ie, start to issue treasuries. and our fiscal year end is september 30th, right? so think about like the nearly $1 trillion of treasuries that are going to be issued so inflation is coming down, got that coming down from 8 to 10% to around 4%, where it is now i think demand does soften further, because i think we are moving to that recession the train has left the station, i think it's inevitable that that will happen, but you won't know it until the second quarter of next year, when you see q4 of this year and q1 of this year was a recession, and they report that in april of next year so with $1 trillion of treasuries, rates are now moving a little higher than they have and with that, there's going to be a big crowding out, and we're seeing that already. so this clrowding is out is the tighter fiscal conditions and monetary policy conditions that will inevitably lead to, i

believe -- >> a recession >> a recession >> it doesn't sound like an environment in which you would want to hold rates this high for that long? >> it sounds like exactly that environment, because they need to break this cycle for wage/price, you know, where the higher the prices are going, the more wages are going higher, and it's just making it -- reinforcing, and reinforcing into everyone's mind that inflation is part of the norm. and they want to break that. so i think they have to keep ate little higher to break that. >> and you're not thrown my historical charts of fed funds where if they move this aggressively, they tend to come down relatively soon >> well, what i'm thrown by is this what i'm thrown by is, when they move rates by 400 basis points or more. you've always had a recession. and they've moved up by 500 basis points in a shorter period of time. number one but what i'm also thrown by is the inverted yield curve look at three-month bills today versus five-year notes

it's the most inverted stit's ee been and third, in addition to pmis, which are weak and third, just how tight financial conditions have become and the fact that you've had some decent-sized bank failures. and when you see that, you are always followed by recession that's what i'm thrown by. that's why recession's our base case but went seen it yet just wait for it, it's coming. it's also why it's the golden era for credit with rates at 5%, we can do short-term liquid securities yielding 8% plus we can make private loans, because the bank aren't lending at 12% to 14%. and it's the highest base rate and lending rate that we've received in a generation in 20 years. so why are we so happy about the financial repression being over? because our investors are incredibly happy with our results and the results of other firms like us that are lenders out there that are getting the

best rates we've got ten in a generation >> this is the private credit boom >> thank you, bruce. i know you're a credit investor, but you often have these on equities and i'm curious, would you fade the broadening out of this stock rally that has surprised everyone >> it's not that i fade it -- the answer is yes or no if i -- but carl mentioned it earlier just a few minutes ago, with the advent of ai and i'm super bullish on what that means to corporate america and the progress of our workforce. some people don't like change, but i embrace change it's going to be just like the internet, revolutionary. >> how do you play that? >> well, at marathon, we're incorporating machine learning and ai into a number of our models today but i'm super bullish long-term on america and our stock market, given that, number one, number two, in terms of the fading and

what you said, listen, the only thing that's changed, because earnings have flattened and actually roll offered a bit. the only thing that's changed are multiples. multiples are higher a lot of the broadening of the rally, away from those eight stocks that have really driven the whole market higher, a lot based upon ai, a lot of the broadening is based upon one thing. people are short coming in, people didn't like the stock market the hedge funds, real money buyers that let cash pile up and now they're just jumping into what they consider -- >> and done raising rates. that's a catalyst, too >> that's also a catalyst. i like that, but what they're not, i think, focused on is rates are going to be higher for longer, they're going to soften from here as you move to raa recession. there's a second kind of act to this as our fed chair powell exits left, as ehe should, for this next year we'll see that later in the show >> bruce, thank you. that was a great preview we so appreciate it.

bruce from marathon asset management >> coming up after the break, the ceo of hp enterprise on ai opportunities, especially for legacy tech. >> and jared bernstein just named the top white house economist. he'll join us later this hour in his first interview since being confirmed chairman of the council of economic advisers last night "squawk on the street" returns in a moment. dow is down 100, but s&p and nasdaq is going strong because of the big move lower in united health care. we'll be right back. data... no big deal? go on... well, what if you partner with ibm and red hat, use a hybrid cloud solution to connect data across clouds, then analyze all that data with watson. okay, but this needs to meet our... security standards? yup. compliance standards? mm-hmm. so they get the insights they need... yup. in real time... check. ...to make quick decisions? check. aaaand check. that's the solution ibm and a global bank created. what will you create? ibm. let's create.

legacy tech businesses all pushing to integrate artificial intelligence into their pipelines and hewlett-packard enterprise is no exception during their latest comall, the company announced their launching $800 million worth of ai-focused contracts joining us now is hpe ceo antonio neri i think that's over the last 18 weeks? >> in q2, we booked those $800 million, but the pipeline grew to $206 billion. >> >> how you framing it for customers, at least? >> customers are looking to get access to the latest innovation. we call it generative ai, but they want to train data in a private way.

and so this is where they need a super computer >> we talk a lot about whether or not this kind of spend will be canal nibalistic to other ley kind of spends >> we're talking about a completely different load. so that's different than email, databases, and like. so that's why to me, it's incremental. and ultimately, our customers are driving a data-first modernization and ai is there to aid that modernization >> do you think investor gs get it, or are they focused on the microsofts of the world and the softwares that have committed to ai instead as the shiny new object >> i think that will get it more next week. we'll make a series of

breakthrough announcements obviously is, they're focused on the big clouds but to deliver a super computer is different than traditional cloud. cloud citizen a capacity cloud we share everything. when you talk about a hirks, it's a dedicated fracture for a large load that's why super computers are becoming very relevant in this new world. you need to process -- >> who else does that? >> to the many people. that's the beauty about our physician in the market. we are the market leader when it comes to super computers we are the market leader we have the top third of the top 100 super computers in the world. and that's a big advantage >> and what chips power that now we're all focused on the chip race to ai? >> all of them that's an interesting question if you think about the largest super computer, or the new one,

with aurora is actually both ea&d and intel aurora is an intel-based system. >> what's happening to enterprise spending ex-ai? >> i think there are pockets of slowdown, no question, in the traditional infrastructure space. whether it's computer storage. we're going through the sick cliblg phase whereby where there is digestion of what was bought early in 2022 because of the supply chain challenges. but there are significant components of growth and obviously, as data growth, you need to store and manage that data. we see the ups and downs, but in aggregate, over the long-term, this will continue >> and in terms of industry silos? >> we talked about this in q2. europe is holding very well. north america has been the one that has been slowing the most

but when you think about the customer segmentation, obviously, the financial services being the most impacted because of the crisis. but when you go to manufacturing health care, health care is very important. has been very, very steady >> i guess it makes sense, coming out of march and some of the drama of march we'll see how the rest of the year develops >> look forward to next week >> it's going to be a great week we'll bring 10,000 customers and 2,000 partners, where we're going to showcase all of our innovation bold announcements across the connectivity, as well as the hypercloud with extensions of offers through hp lake it has doubled in the last two years, and now some breakthrough announcements on ai. >> how do you view the tan, the total addressable market on the new super computing capabilities that you're outlying and selling? >> it's a big tan.

you think about not just the infrastructure, but all of the applications that are going to run on top the fundamental questions that customers ask us, can you make available prepackaged models so we can have our data in a way all the services around it are pretty significant so we believe this time is going to grow high double digits over the next few years >> we'll be watching next weekend. thanks for coming in >> thanks for having me. yesterday, jeffries downgraded global payments, saying there are no near-term upside catalysts later this hour, we'll hear from the ceo of global payments his first interview since taking over the role on june 1st. he probably has a rebuttal to that he joins us right here at post nine >> watching logitech as well the ceo leaving immediately to pursue another opportunity citi does downgrade to neutral on that news stocks down almost 12% don't go away.

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european markets set to close in just a moment index is there largely higher across the board new data showing the uk's economy grew by a fifth of a percent in april, in line with expectations the sterling gaining about half a percent against the dollar on the back of that news. the ftse 100 boosted by oil giant shell. cost cuts are a part of that announcement, as well. but the story abroad this morning, and we've hit this numerous times, but the continued move higher for japanese stocks, the nikkei adding another 1.5% in today's session, and a new 33-year high. apollo out with a note that international investors have become a big part of that rally, now owning about 30% of japanese equities, which is just higher than the holding of japanese households and trusts. we continue to beat this drum, because it continues to move higher, and now the market is up almost 30% year-to-date. a surprise darling on the back

of a number of factors, but overall, comes down to the animal spirits there, within companies and the fact that it's the only major economy that has been easing and not tightening the japanese yen has been weak, and that certainly helps corporate profitability. and they have a new bank of japan governor that seems very much onboard with still trying to get inflation, even though they've had more inflation than usual. >> the old joke around the street is about mrs. wattanabi and how she's spending her cash. the foreign buyer story is completely different nikkei is up 28 for the year germanbacks, record high nasdaq, first best half since the early '90. s&p, obviously 52-week high, so it's not like it's operating in a vacuum >> it's a good point that the global market has shown real signs of strength. the only warning that i would give you comes from matt maile who's looking at the technicals. from miller tabak says it's very overbought in fact, the rsi chart weekly,

most overbought it's been in ten years. after that's happened, you've seen some pretty sharp declines in the last four times however, he says, the longer term outlook for japan is quite good so correction could be sort of less bearish this time around. just keep in mind, this has been a hot market >> yeah, as we are nine to eight points away from s&p 4400. let's get a news update this morning with contessa brewer >> at least 78 people have died after a large fishing boat carrying migrants capsized and sank in southern greece. search and rescue teams are scouring the water for survivors now, but they don't really know how many passengers are missing. authorities believe the boat came from eastern libya and was heading for italy. the italian coast guard first alerted greek authorities about the approaching vessel yesterday. u.p.s. delivery workers may get air-conditioning as u.p.s. workers consider a strike, union leaders in the shipping company announced a ten ty deal to add air-conditioning to those iconic brown trucks

they also agreed to provide new heat shields and additional fans they agreed to a new five-year contract covering some 540,000 workers who were threatening to walk off the job the last portrait by austrian symbolist painter gustav klimt will go up for auction on june. the 27th the painting last sold for $11.6 million. chump change compared to the current estimates. the estimates think it could now fetch $80 million this time around that would make it the most expensive painting ever sold in europe and if you're saving your $80 million to invest in, i don't know, treasuries, you can also think of "lady with a fan" by the grateful dead i think it's less than a cup of coffee >> what a distinction. most expensive painting ever sold in europe thank you, contessa. the new cea chair david

bernstein coming up next it's his first interview after being confirmed by the senate last night we're live from the white house right after the break. and june is pride month and cnbc is separating all month long and sharing stories of corporate leaders with you here's leanna guzman >> i often get asked, why do lgbtqi people need different health care? the reality is our lives are completely different by virtue of who we are and who we love. we are more likely to suffer from heart disease and mental and behavioral health need when we build our families, it is a completely different experience so i think in a world where people like to think that maybe things are more equitable, and we've certainly come a long way, the reality is our experiences are still very different i would invite folks that are not members of the community to really evaluate the voices of those who are and listen when we tell you why it is different and we have different needs. this thing, it's making me get an ice bath again. what do you mean?

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couple hours into trading, bulls definitely have 4,400 in their sights >> two-to-one advancing to declining stocks, a terrific ppi report, high on the s&p. we are getting a modest

broadening out of the market, like we see a little bit more. i know we're obsessed with the nvidia, as a super momentum stock. tesla, super momentum. apple, really big momentum there's a dozen or so really big cap stocks that also had tremendous momentum, ever since the jobs report. you know, ibm was 128 a weekan a half, two weeks ago. look at it, 138 right now. it's a big move up for ibm that's very, very strong momentum for a stock like that that's not what we call a big beta stock american express, this is one of the stars of the dow in the last few weeks. it was 156, 157. look at this, 176. again, not a huge high beta stock. it doesn't move a lot. the s&p moves up usually moves closer to the s&p. that's a nice move, as well.

caterpillar is another one we complained a lot about caterpillar a few months ago ever since again, look at that 247. caterpillar was $208 a few weeks ago. that's kind of hard to believe, but i've been highlighting some of these really big, powerful global industrials, parker hanni hannifin, ingersoll rand eaton, up 15 to 20%. that's even more that's north of 20% in the last few weeks. the bottom line, sarah, is the jobs report kind of changed the dynamics of everything that's when we started seeing some of those big, big broader names, not just semiconductor names starting to move up rather dramatically >> a sort of soft landing scenario reentered the market psychology thank you, bob bob pisani the senate narrowly confirming president biden's choice for chief economist vote, 50-49 after opposition for the entire republican block and west virginia democrat joe

manchin. jared bernstein previously served as an economic adviser to president biden when he was vp, of course, during the obama administration, also held the positions during the clinton administration, longtime adviser to the president joining us now, first on cnbc, the council of economic advisers chairman, jared bernstein. jared bernstein, welcome good to see you. >> thank you that's nice to hear. >> first time you're being addressed on television. so we should get it right. it was a close vote. were you surprised at that >> well, i don't really pay that much attention to the internal politics i've got to stick with the economics. what i will say is as part of the confirmation process, i spent a lot of time up on capitol hill in the senate talking to members from both sides of the aisle we were very careful to make sure that we did that. and putting the politics aside, which i'm just not the right person to speak to, i had great conversations with everybody i had really good conversations

with a number of the republican members on issues that i look forward to working together with them now that i'm confirmed. >> so what are those what is on your to-do list >> well, implementing the president's agenda is obviously first and foremost i mean, we're talking about an invest in america agenda, where we know that private sector companies, some of whom you were just talking about, many of whom are doing quite well, are investing hundreds of billions of dollars in domestic production that's something that's very important to this president. close to 800,000 manufacturing jobs since he took office. now, what's so special about that sector? well, historically, it's been a sector where average compensation has been above average. but it's also the case that is helpful in terms of our productivity, our innovation, and if you look at the legislation we've passed, i think that there are many -- i know for a fact, there are many members of congress on both sides of the aisle who are very

interested in making sure that's implemented. and to be frank, some of that's implemented in their state and they want to see that, too >> you're also interesting the office jared -- or chair, i should say, bernstein, at a time when the economic headwinds are piling up. construction signs are increasing across different industries from consumer to manufacturing, which you were just touting we were seeing a rise in initial jobless claims labor market still remains pretty strong, but we'll start to feel the impact of the 500 basis points of fed tightening and inflation shock. are your hands tied if you go into a recession >> first of all, let's look at the economic outlook, which i think is favorable in terms of consumer spending. remember, that's almost 70% of nominal gdp. if the american consumer continues to do well, they can help power this economy forward,

quarter upon quarter of headwinds leading to a recession. in fact, the strong labor market is delivering earnings gains, and not just nominal, but real so year over year, i think this might have been somewhat underappreciated in the cpi report yesterday -- a little focused on cea on the cpi report yesterday, where not only was the monthly wage gain beat inflation, so that was a real gain on monthly, it was a real gain year over year, but nominal wages were up 4-2. that's a year over year real wage gain. and we've got some analysis coming out shoon, showing the aggregation between employment and wages. and that relationship remains very strong. it's a correlation that's been powering this economy forward. by the way, excess savings has also played a role there some of that's burning off but some of that's still there >> it's burning off, and there's

also these new student loan headwinds, that bruce richards mentioned at the top of the hour and economists are trying to crunch the numbers now that payments are going to start up again after the debt deal, barclays sees a $15.8 billion monthly headwind to u.s. spending as the average student debt holder sees a big monthly payment starting in the fall isn't that going to hurt >> so we've crunched a lot of those numbers. and you know, it definitely sounds a lot when you start talking about a restart of 15. if you look at consumer spending on a monthly basis, it's obviously in the trillions and so that's -- those magnitudes are too small a headwind to really slam on the breaks what they will do is actually something important. and we've seen this in some of the gdp reports. back in march of last year, president biden wrote an op-ed, where he said some kind of remarkable things that have been

somewhat underappreciated. he talked about how important it was for the economy to actually downshift so that we could ease into a transition that was more steady, stable growth. and if you grow below trend, the mechanics or the hydraulics of the way the economy works is if you grow below trend, some of that misalignment between supply and demand in the labor market becomes realigned more favorably. and i think we've seen some of that we've seen vacancies come down and quick rates come down and that actually helps. the idea is to maintain growth if it's below trend, that's not a bad thing in terms of the sort of realignment we're looking for. >> i see the iff this morning says the u.s. will avoid recession in '23 they see inflation coming down to 3.1 you mentioned ppi. i just wonder, to the extent that corporates try to keep their pricing in tact, and benefit on that margin, on the backside of this cycle, will there be pressure from the white house for them to stop doing

that, to have that producer inflation pipeline feed down to the consumer >> i kind of think that's happening anyway if you look at, there's been some margin depression if you look at the deceleration, the slower growth of inflation at least in headline terms, it's really been pretty significant as you well know, in may, inflation came down almost a percentage point in terms of the cpi headline and ppi, i believe that the monthly number has been negative three out of the past four months we're not just talking about a monthly blip here. we have a trend is your friend kind of moment i think that when it comes to corporate margins, one of the key variables here, i don't think it gets enough attention, is the extent to which consumers respond to prices. if the price elasty of demand is very, very flat, of course, companies are just going to keep rising prices without suffering any demand destruction but as consumers and we're seeing some of this on the lower end begin to respond to higher

prices, that's going to help probably in the inflation outlook going forward. a key point there when we're talking about lower income people, they're the ones that benefited the most from the tight labor market and their paychecks have made a big difference to them >> really quickly, do you see the fallout has mostly subsided after the three bank failures that we got a few months ago or are you worried that we might see some pain in the banking system, especially in regional banks and the tightening of credit >> i think that's an important question and i'm sort of paid to worry about everything and so i do those headwinds have obviously been somewhat contained and we're going to watch that very closely. treasure we, as we know, is watching that as well. thus far, the numbers i see suggest that the actions that were taken on that fateful weekend were quite impactful probably even more so than i expected but that's an area i'll continue looking at closely >> jared bernstein, chairman of

the council of economic advisers, thank you very much for taking the time. >> thank you meanwhile, the ceo of global payments after the break his first interview since taking over that job on june 1st. we'll get his unique perspective on the health of the consumer, not predicting a significant downturn plus, we're watching tesla again lower for the first time in 14 sessions opening for trade at 186 on may 'sth it now above $255 per share. stay with us that's what you get from the morgan stanley client experience. you get listening more than talking, and a personalized plan built on insights and innovative technology. you get grit, vision, and the creativity to guide you through a changing world. ♪

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welcome back as we head into summer, a lot of questions swirling about the state of consumer spending our next guest just took over one of the biggest names in payments and as he looks ahead to the next few months, he's not seeing any signs of a severe downturn ahead. joining us here at post nine in a cnbc exclusive is global payments ceo cameron grady his first interview in the new role great to have you. thanks for coming in >> stthank you so much for havig me today >> we've been trying to get updates almost every day at the consumer and at one point, there is a crack are we seeing the beginnings of any? >> i would think the consumer by and large is hanging in, probably better than i would have anticipated as we started the year certainly, there could be a slowdown as we get a little further into the back half of 2023 our data right now is very strong around the consumer and the trends remain pretty consistent my own view is, obviously, there's a lot of concern in the market but with the labor market where it is, the consumer's feeling

pretty comfortable and obviously, that's good for our business and good for the economy overall. >> so it is that dynamic of knowing that your paycheck is durable, means it's not about excess savings or what's getting drawn down or anything like that >> i think that's a big part of it that's why we've seen the consumer hang in probably than i think many people would have anticipated. >> so some analysts that we talked to before are wondering about the leadership transition, saying that jeff sloan, the prior ceo, left somewhat abruptly, sold his stock, should they worry about that. is that a concern? can you take us through why the board made this call now >> we've been talking about this internally for some time it may have been more of a surprise to the stwreet, but it wasn't a surprise internally we've been working to transition into this role in many months now. the reality is running large public companies for a decade like jeff did, it takes a large toll on you. these are stressful, strenuous jobs and they're exhausting. and we had recently completed a

number of transactions in our business to simplify global payments as a go forward matter. we acquired another payments business that's very complimentary to what we do. all of those trbansactions close in q1. we're now in a more normal environment. so the board and jeff felt like this was a good time to make that acquisition >> so there are a lot of questions about what b2b is looking like >> a lot of people would say it has been for some time i think we are on the precipice of seeing significant growth in b2b. and ap automation, ar automation, dig titizes payment across businesses for wholesale goods and services is one of the areas that they're really focused on b2b is a huge addressable market it's three to four times the size of the consumer market, highly fragments and overpenetrated

it's a fantastic growth opportunity for global payments. >> where does the u.s. stand in terms of the ladder of innovating the fastest on that front? >> i think the u.s. is taking a leading role in innovating around digitization of payments more broadly i think we're seeing trends of consumer payments and business payments, we're seeing accelerated trends around the digitization of payments a lot of what we're doing in the u.s. is designed to make it easier, less costly to move money across businesses and from businesses to consumers. >> talk about the competition and what's happening with your market share i feel like there's been a knock against you for losing share and that's why the valuation has come under pressure. >> this is a competitive business and it always has been and always will be i'm more bullish of a competitive environment now than i have been in some time we're coming off of a period of basically no cost of capital and when capital is free, everything's a good idea and when capital is free, companies tend to focus more on growth at any cost versus having to balance growth and

profitability and running businesses for long-term value creation so as i look at the competitive landscape today, i'm actually more confident with where we stand, with a more casual capital environment. we're poised to continue to grow and gain share as we have been over a long period of time this whole idea that we're losing share in the market i think is completely wrong. we've been gaining share in the areas of the market where we choose to compete. and i think we've done a terrific job of that as a company for many, many years >> congratulations on the gig. and we hope you'll come back >> i certainly will. >> thanks for having me. >> good to have you. after the break, american pension funds and their underexposure to vc. some new information about how foreign dollars are getting in the way.

welcome back time for today's "tech check" with deirdre bosa. dee, you've been following the story this week american pension funds and their under exposure to vc, which they're trying to change >> carl, we've been digging into this issue why ordinary american investors missed out on the most lucrative part of tech investing. it doesn't just have to do with poor allocation decisions but with disclosure laws here in california sensitive returns could be made public if they take investment from the two largest pension funds in the country instead they went elsewhere and looked for funding from less transparent, less regulated

places they're the ones who have built up and profited from the american startup ecosystem while the average american has sat on the sidelines. take the saudi sovereign wealth fund long before it was trying to move into american golf it was in american tech it has poured tons of billions of dollars into uber and soft bank vision fund to some of the most prolific investors. calpers call their underexposure to startups a mistake and a, quote, lost decade of returns. the cio of the second large eggs pension fund put it this way to me >> it's very unique to california pensions, not just the counties, we have to disclose a lot of information about our private equity portfolio and frankly in silicon valley they like to be private maybe we're sort of the rodney

dangerfield of the country club. >> they and rodney dangerfield, of course, the character in "caddyshack" shunned by the richer members the disclosure laws were put in place way back in 2005 it was criticized by vcs to reveal investment strategies and sensitive data but it turns out those companies, those vcs, went to the saudis and others instead and they continue to do so as other sources of funding dry up. >> it's remarkable ailman is always candid about this stuff, dee, but it does show you how at least on a global basis the u.s. kind of got shown up here. >> we barely scrapped the surface. it's been in tech for a decade and some of the most lucrative funds and companies.

the alibabas of the world that have been really profiting from american innovation and chris ailman of calstrs says it's ironic because they sit here right next to silicon valley and it's the americans who have missed out on this very lucrative area of investment in tech >> deirdre bosa, thank you wall street is buzzing about beyonce and why the artist may be to blame for higher inflation in sweden. ♪ ♪ every day, businesses everywhere are asking. is it possible? with comcast business...it is. is it possible to help keep our online platform safe from cyberthreats? so we can better protect our customer data? absolutely. can we provide health care virtually anywhere? we can help with that.

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this is cynthia suarez, cfo of go-go foodco., an online food delivery service. business was steady, until... gogo-foodco. go check it out. whaatt?! overnight, users tripled. which meant hiring 20 new employees — and buying 20 new laptops. so she used her american express business card, which gives her more membership rewards

points on her business purchases. somebody ordered some laptops? cynthia suarez. cfo. mvp. built for cynthia's business. built for your business. amex business. welcome back wall street buzzing about inflation and not just ppi today. it's happening around the world, too, as countries deal with rising food, energy and housing prices and particularly interesting data showing up out of sweden. rose 8.2% and now some economists cited by bloomberg blaming beyonce for the miss because more than 80,000 fans flooded stockholm for her world

tour premiere that may have driven an increase in hotel prices which rose 3.3% month over month now the bank will have to hike rates in june. >> thanks, beyonce >> taylor swift driving with her tour with beyonce and swift on tour at the same time, adele in vegas, amazing, speaks to what consumers want right now and it's costing a fortune >> you want to fold in soccer, f1, any event that moves the local economy. >> and getting prices for this event. central bankers are focused on right now because it has been stubbornly high in the face of decline and good spending. we bought enough stuff at home depot and best buy during the pandemic fed chair powell will not be focused on beyonce and taylor

swift but signals a hike coming in july. >> we're going to need a new index that's services, ex-housing, ex-airfare and ex-beyonce >> exactly beyonce and taylor swift i think swift is the bigger economic driver. no offense i love beyonce >> equities have struggled post press they are year. let's get to the judge carl, thank you very much. welcome to "the halftime report." i'm scott wapner front and center this hour, the state of the rally on this decision day for the fed the investment committee debating where your money might go from here no matter what happens in a couple of hours joining me for the hour stephanie link, joe terranova, kari firestone let's check the markets. careful how you look at it today, too you do have new 52-week highs for the s&p 500 and the nasdaq that dow decline there is basically due to united health take that with a grain of salt, and we're going to talk more about that later however, stephanie link, does anything about thi