good thursday morning. i'm sara eisen live from the floor of the new york stock exchange setting the agenda for us today, forget rate cuts

hikes are across the globe powell with an indication that two more hikes may be ahead. we'll break down the flight of the hawks. charles schwab asset management ceo omar aguilar on the parallel of equity and fixed income markets. and the fed chair is testifying in front of the banking committee. live updates throughout the hour. stocks were on track this morning for four consecutive days down. five consecutive days down for chips. we have a little buying in the middle of the session. nasdaq is doing okay it's the financials and industrials a source of weakness as powell is talking about raising capital requirements for the banks. >> topping the tape is the kre, the regional bank etf. we were glued to this after the collapse of silicon valley bank. people watch this as a tell on sentiment, on problems for the banks. the more talk of hikes, of

course, people worry about flows out of 6 regional banks because they get more attractively priced yield there when it comes to money shifting around that's been a pain point for the regional banks it's something powell is talking about as well when it comes to real estate exposure >> it's something waller has talked about as one of the hawks on the committee who said, look, we're not going to let monetary policy be determined by some mismanagement at a small number of banks so, the hawks want to blow through this whole dynamic and not pay too much attention to something that some would argue is already in place anyway that is lower demand for loans. >> and the doves would say we haven't felt the full impact of the credit tightening as a result of the pain, which is ongoing in regional banks. we need to watch the stocks. they've had a nice rebound in carl, june, but that index is still down, as you can see, more than 30% year to date. for more on how we're trading, let's bring in cnbc seniors market commentator, mike santoli.

hello. you're watching investors coming to terms with the fact there may not be a rate hike cut coming next year, bostic said that yesterday. how is that impacting the rally? >> and even when the market was pricing in cuts. they're no longer doing that i think we're at a phase in the market where with the fed does next is less important at this stage than what the impact is of what's already been done i say that because one year ago, you know, since a year ago the nasdaq 100 is up 30% the s&p 500 is up 13%. the fed funds rate, now we're at 5. however you want to slice it, the fed is in the range of being finisheded for now even if rates stay higher for longer, we're arguing around the edges, arguing six and eight months in the future, and at the hawkish edge of what the fed might do based on powell, we're talking about 50 basis points by halloween. that's not necessarily a scary scenario certainly not relative to a weekly jobless claims going to keep going up, are we okay with

flattening out earnings? are stocks too expensive one of the reasons, too, fed policy is not necessarily, to me, the key swing factor as longer term yields are range bound since september. if you look at the 5s, the 10s, the 30s, they're basically sideways since september or so since stocks bottomed. all of that being boiled together creates a little more balanced footing for the market. i say balanced meaning not super bullish, not, hey, we got this that means the fed is all of a sudden on pause and we can run higher it's more there's no longer the assem triof people are underinvested, earnings are not falling apart. all of that stuff to me has already been priced in now we should probably pull back everyone sees that you know, maybe recognizing that the fed's not done is going to be an excuse for one of those pullbacks. >> what you're saying is completely reflected in the tone on the hill yesterday where the questions were about the grateful dead. today the questions are about senator tillis' dog. that's the kind of conversation you have unlike in the uk where it does

feel like they're facing some kind of emergency. >> there's a greater sense of urgency. you talk about the regional banks. that's not something we can say is solved. therefore, it can erupt again. you can see a little more stress develop there. then it becomes a different equation in terms of what monetary policy means for stocks but right now it's a quiet moment in the banking system and we can see if that continues or not by the way, if inflation doesn't settle down, we have another challenge. >> the headline that powell has been a dead head for the last 50 years. >> sara was frustrated about the headlines yesterday. >> by the way, that's the more reassuring kind of claim than you just discovered the dead because a man of powell's age, that could be a nostalgia trip and not some new-found passion. >> he and my father, long-time dead head. mike, i think there's one thing to highlight that is happening and screaming a little bit which is the yield curve we closed below 100 -- negative

100 yesterday. the difference between the two-year and the ten-year. big recession indicator. we're now back to levels of march. we're near the cycle low >> and it's been in place for quite a long time. in fact, one of the longest periods of an inverted yield curve. and i think it's worth saying, yep, we recognize it that means that the market is suggesting that the next significant move by the fed over the next two years is going to be lower not higher. that's kind of what it's saying. it's also saying inflation seems like it's going to be contained, if it's not already. yeah, we have risk of recession. no doubt about it. deceleration often leads to recession. i think that's why the bull case for now is almost like, well, we muddle through, we stay around 2% growth, earnings flatten out and maybe firm up into next year and maybe not everybody is completely topped up on equity exposure after this run. >> mike, we'll talk more in a little bit that's good to start the hour. our next guest argues despite

the market with bullish landing, it's time to look at fixed income joining us today, schwab asset manager and chief investment officer omar aguilar great to have you back walk me through the framework you're using in light of what we were discussing, that is this dethe way in which cuts were needed is healthy or not. >> good morning. it's kind of an interesting time in the market where there's a lot of confusion you can actually spend a good amount of time making a case for a bull market or making a case for a depressive bear market in both cases and you look around the world and we continue to see mixed signals across the board when you think about it just in the last few minutes of your conversation, you know, the case for a soft landing scenario, which is, for the most part, pricing into what equity performance has been, equity investors seem to be thinking we

may just may avoid a recession if you look at performance of the market, you see where the multiples are. when you see that expansionary feeling, investors seem to be thinking equities are just at the point where it may actually just take off. on the other hand, if you look at fixed income they seem to be a completely different universe. when you think of every leading indicator, the inversion of the yield curve that was just mentioned, that will point towards not just a recession, a deep recession that should come any time soon. i think what happens when you put all that together and you look at the global picture, which is another part of confusion, which goes into the fact that you say, well, the fed is on pause in the u.s., the economy in the u.s. tends to be decelerating but it's still okay when you look at europe and the uk, that's a problem because the euro economy is in recession and, therefore, the ecb and the bank of england are raising rates. then you go to emerging markets

when there's stimulus going into china and potential for growth that comes down to maybe the opportunity to look broad and diversify your portfolio. >> do you think the -- do you have a year-end target on, say, the ten-year yield and is it outside of the range we've been stuck in >> well, i think the ten-year and i think the big part of what we're seeing here is we're probably going to end up seeing a little stabilization of yields i don't think it's going to be too far from where we are now looking at the longer term i think what's going to change is the shape of the yield curve. i think we're going to see a little bit of a lower end because, as described before, a lot of the two potential increases on the fed rates on the short end of the curve is already priced into the market, so we're probably going to see the top of that and we're going to see that duration starts to actually play a little bit of a role more towards the second part of the year, which will make a lot of sense. a lot of that will depend on the labor market a lot will depend on inflation

numbers. i think we're in a good place when we see that cpi number but only will take a surprise in cpi that will potentially change that -- may change the way the yields behavior. i think for the case for equities, you know, we still need to see that stabilization of yields before we can declare the all-clear. i think we're probably not going to see that until the fall once we get fully done with everything that we are going into with the fed raising rates. >> if you were worried about that, omar, you would have missed a 30% rally in the nasdaq so far this year everyone hated the nasdaq coming in because of raising rates and potential recession. what do you tell your clients to do with tech now >> i think what we're describing is basically take a barbell approach i think we believe there's a lot of benefits, as described earlier in the question about high-quality fixed income. there's a lot of great opportunities we haven't had for a good ten years where you

actually now see interest rates and income that's actually coming from fixed income, believe it or not, and it's great. i think there's an opportunity to be in that higher quality deponent in fixed income at the same time, just because we might have a good probability to avoid that deep recession because we have been doing these rallying recessions, there's an opportunity to start moving towards growth, increasing duration in fixed income, looking at high-quality credits and at the same time starting to put yourself more towards potentially taking advantage of areas that are not as expensive. for example, the small cap equity, which has been underperforming for large caps for the most part. that's more of an expansionary component. having that barbell approach is probably a good balance, neutral for what you can see for the rest of the year >> we're waiting for that. not happening at least today but we'll see about the days to come omar, great to see you still to come, from the bank

of he can land to the swiss central bank to turkey, the hawks are in control globally when it comes to rates what does that mean for the fed? india's pm meeting with the president and executives from companies like alphabet, microsoft, tesla, all trying to take advantage of these waning china/u.s. relations we'll go live to the whi hse "ua othstreet" continues after this a third kid. what if she likes playing golf? it's expensive. we're outlawing golf. wait. can i still play? since we work with emower, we don't have to worry about planning for a third kid. you can still play golf... sometimes.

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let's look at dri. the ceo said on the conference call that guidance for the year assumes negative traffic you can see the shares are off the intraday lows. they did have some comments, too, sara, about food deflation and labor inflation actually softening about 100 basis points quarter to quarter that's encouraging. >> also some interesting color about the fine dining trends that people aren't drinking as much alcohol as they did last year coming out of covid at the fine dining establishments and people under 35 are not visiting fine dining as much as over 55 interesting color on the trends. just about 15 minutes from the european close the story abroad this morning, the surprise interest rate hike from the bank of england the surprise is they went 50 basis points steve liesman on that decision, steve, which comes on an interesting day when we've had hawkish comments and move globally now we find ourselves in this place where central banks are

taking it at different speeds. >> eah, you know what's interesting to me, sara, i don't know if you're getting the same commentary but people are a little angry with the backe of england and the central banker over there, the governor, mr. bailey i think the reason is because nobody likes to be surprised the only reason central banks should surprise is for effect. in other words f there's some reason to jar or shock the market to make sure they know you're serious is to come in jpmorgan is coming in, hey, maybe we don't understand the boe's reaction function and maybe it's time for the boe to be a little more clear about why they might raise 25 or why they might raise 50 nobody likes to be surprised what is happening generally, sara, is central banks around the world are raising rates, but at different speeds. and i think they're trying to find the place to stop and i think one of the more

remarkable moments was australia and canada both of whom paused and came forward earlier with rate hikes. now you have the fed that paused and they're likely to keep hiking you still have inflation that's high around the world. if you look at the different central bank rates, hey, we're number one when it comes to most of the developed nations at 5.13%. then you were down from there, the ecp at 4:00. now the bank of england is hiking,canada is hiking as well i don't know if you have time or want to talk about turkey, because as you know, sara, that's a whole different game. >> so, i'm so glad you mentioned the 650 basis point hike in turkey they finally raised hiking rates is what is needed to cure -- what's their inflation numbers these days >>. >> i don't actually know it's very high what central bankers here in the

states and europe and england understand is you have to show a long-term commitment to battling inflation. you have to show resolve you have to show willingness to have weakness in the economy turkey has not done that investors are not clear that the turkish central bank is independent for the government it takes time to establish that independence through cycles and to show it and then you get a positive effect in your currency, you get a positive effect in your bond market where people don't have to price the risk of really chaotic policy turkey raising rates is a step in that direction but a very long way to go to establish the credibility of these other central banks that allows it to have a positive effect on inflation. >> i love you went there thank you. it is a big story. it also kind of, steve, feeds what bank of england did and you mentioned the criticism there, which ecb did, which struck a

very different tone, lagarde did than powell did, it feeds into some of the criticism around powell and the fed's move to pause if they're just saying they're going to keep raising interest rates now we're going to get a test case of who's more prudent when it goes to pausing or raising and shocking -- they're getting a strong currency which helps in the inflation fight. >> yeah, it is interesting, sara i'd ask you -- i guess powell is not selling this speed versus level idea very effectively. he tried to explain it yesterday, you know, as you get closer to the destination, you slow down. i've explained it as you're filling up a tire with air if it's flat, the first two minutes, you let it go as you get to the end, you do a little more staccato in terms of how you put the air in that feels like the way the fed is doing the fed has done every other meeting at previous -- previous

times, since 2019. so, the idea that it paused and should have hiked if it was going to hike anyway, what he's saying is we want to do this more slowly, take our time i kind of get that, but i also hear what you're saying, which is this pushback, which is why did you pause if you're going to hike >> right steve, fascinating times thank you. glad to have you here to go through all of it here around the world. carl, really, it makes this conversation we're going to have on next wednesday at the ecb forum, which is their big jackson hole meeting, a conversation with the four top central banks that are now -- it's not going in different direction. going in different speeds and doing different things in terms of reacting to inflation numbers. you're going to hear from andrew bailey, from christine lagarde, jay powell and the new bank of japan governor why they're doing what they're doing in conversation with another. >> it's remarkable given their statements today at least are so dramatically differently i'm thinking bailey and powell. >> it's been a while since

they've been on different pages like this. next wednesday, 10:00 a.m. the next story is happening at home. that's india's prime minister modi meeting with the president in washington. our seema mody is at the white house with more. good morning, seema. >> good morning, carl. prime minister and the president are using this leading to solidify their shared interest in countering china with a flurry of tech and defense deals. micron and applied materials both announcing plans to set up new chip factories in india. the timing of the prime minister modi's visit as tensions with china still high, and while india may hold enormous potential, u.s. executives we've spoken to said the country's recent actions to increase data oversight is slowing tech companies' expansion plans that is expected to come up in google ceo, microsoft ceo, among

others, meeting modi tonight and at the ceo roundtable. india's market is nearing all-time highs we've seen consistent etf inflows over the last few weeks where we've seen outflows in china. ray dalio said he remains bullish. >> you have a reformer, a radical reformer, who has the ability to transform and the popularity to transform it >> $98 million emerging market, known for taking that long bet on adoni said he has increased his exposure to india to $13 billion. then i ran into roger ferguson, guys, former ceo of tiaa today on my way to d.c and he acknowledged the opportunity in india, but said as an investor it's too complicated. that could be a challenge and opportunity for the indian

delegation >> seema, keeping track of all of the announcements and sectors we're talking about today, trade, defense, space, ai, you've covered a couple regarding ge you've got to wonder what they're saying right now in beijing, just days after the president called xi a dictator and we're not letting them get high-powered chips. >> i imagine the deal getting most attention in the east is that ge announcement not only selling engines to the indians, but announcing they will co-produce these military fighter jet engines in india and give the country their ip. this is technology that would, in fact, need a congressional approval but it's certainly a sign -- or reflection of not just the u.s. government but a major industrials trust in india and could lead to even more deals. in fact, we are expecting the indians to buy about $3 billion worth of high-grade drones from the united states. so the defense deals specifically notable to say the

least, guys. >> seema, thank you. seema mody at the white house. later this hour, a $70 billion data center play that counts nvidia as a customer. we'll talk to the ceo about the opportunity generative ai presents to the company. watching boeing down after the machinists at spirit aerosystems started a strike 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.

we're about two hours into trading. a little indecisive today. we've been up and down, up and down we're lower now, down 55 s&p negative post to post with bob pisani for what's moving. >> four to one declining advancing stocks at the open but we pared that and now worry almost unchanged on the s&p 500. i want to point out two problems we're having one, and i think this is prevalent this week, is the problem with somewhat higher

interest rates not dramatically but it's putting pressure on some sectors. the regional banks have been underperforming all week these are all down essentially four days in a row they had been rallying going into the end of last week. key corp was as high as $11 and now under $10 this week. that's quite a big drop. the other regional banks are in line they are all underperforming the s&p 500. talk about interest rate sensitive. the reits have all been notably underperforming this week. again, as rates are trading towards the higher end of their range. this is essex, an apartment reit primarily. and it had been rallying until this week. they've all been down 4%, 5%, 6% essex is down 3% today there's one problem with interest rates the other problem is we're having a hard time getting cyclicals rallying in material stocks that had been raling here's halliburton these are all very sensitive

towards oil. oil is trading towards the low end of its -- it's below $70 today. halliburton, all the oil stocks were rallying until today. it went to $33 on friday now it's $31 again, trading with oil, but cyclicals in general have been having a tough time. remember, carl, you can't get the market advancing if you don't have any cyclicals doing anything, just technology. it's hard to get the advanced decline line up. now with interest rate pressure, not a lot but a little we're seeing impact on more interest rate sensitive sectors like the banks and the reits. back to you. >> not surprising given the news flow today thanks. let's get a news update with contessa brewer. despite fears the vessel's oxygen supply has run out, the u.s. coast guard is continuing its search and rescue efforts today for that titanic tour sub missing since sunday experts say it's impossible to

predict exactly how much oxygen is left because there are too many variables there a british submarine and two more remote-operated vehicles from france and canada have joined in that search. a powerful tornado hit a small town in texas, killing four people and injuring at least ten more that the twister hit matador about 70 miles north of lubbock. fire and rescue teams are flying drones to try to assess the damage forecasters expect more thunderstorms today but not tornadoes. the gop presidential field is getting even bigger ex-cia officer will hurd joining the party's race for nomination. he made the announcement today with a video attacking former president donald trump vowing to be a common sense republican for, quote, complicated times. sara >> contessa, thank you after the break, evercore reiterating its outperform rating on amazon despite yesterday's ftc saying prime will continue to dominate and

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let's get to a note grabbing our attention, evercore staying bullish on amazon despite yesterday's ftc lawsuit. the firm saying amazon remains far and away the most popular online retail site and prime penetration continues to rise. it's not because cancellation is a complicated process.

that's what the ftc complained about. evercore's head of internet research, mike mahaney why are you not worried about the ftc and what we got yesterday? >> this ftc is a serious issue i'm not judging whether or not amazon made prime cancellation complicated or not i think if you try to cancel your prime subscription now, it's very easy to do the more important thing is the satisfaction levels we tracked at amazon in the u.s. over the last dozen years have been extraordinarily high people choose amazon because of price, selection and convenience and the gap between how consumers rank amazon and other online retailers is extraordinarily wide and has been for a while so, they deliver good service to customers and customers respond by signing up for things like prime, which can save people a lot of money. >> so, does the ftc suit represent a threat, in your view, to the business? >> i'm a little out of my league

in terms of the legal risk i'm guessing not i guess what i focus on is are consumers happy? we see 94% of u.s. consumers continue to rank amazon as their favored online retail site and it's been very consistent for a decade now what i find interesting in terms of amazon, we have a triple trough thesis on the stock. we made them one of our top three picks recently because we think margins have troughed. revenue growth has probably troughed and we think the multiple has troughed. i'm interested in the fishing elasticity what we found in this report is prime customers who use same-day shopping you order it the night before, you get it before 7:00 in the morning. you order it in the morning, you get it it in the afternoon those people spend three times as much as an average amazon customer as amazon continues to roll out faster and faster shipping, and they talked publicly about doing this, i think you'll see more and more spend and amazon's

ability to gain share is going to increase. it's a real accelerator in terms of amazon's market share in the u.s., this same-day delivery for prime customers. >> the bulls have been all over this the last few days, mark i see a note today about how they're not behind in ai loop upped their target saying aws deceleration comes to an end. the real driver will be unit economics in retail. do you gagree with that last part >> carl, i don't i think it will be equal in order for the stock to move materially up from here, you need to have aws growth reaccelerate we think it will starting in the back half of this year and you need to have ongoing recovery in the retail operating margins. it's both of those by the way, i think you'll see that in the retail business. amazon's retail business had negative margins last year, the first time in a decade, but that's because there were enormous costs they took on,

fuel, shipping, et cetera, everything went against them last year. you're copying against that this year, but also they had this massive fulfillment buildout the last two or three years. they're starting to increase capacity utilization, means rising margins i'm probably more confident in the margins we're covering and units getting positive than the aws reacceleration i think both will happen and as they do, you'll see a rerating in the stock that's why there's a lot of torque on amazon stock to the upside, even here. >> you say it's one of your top three net longs. what are the others? >> meta, i still like. i know it's had a huge rally here today, i know that. it's trading at 16 times gap earnings the cheapest igh-quality tech stock out there, my opinion. second is uber i think we're finally starting to break out on this stock after multiple years of really nothing. i think we're finally starting to break out you have three value catalysts coming up as they start to finally achieve consistent gap

earnings profitability, they start buying back stock and i think they get added to the s&p 500 next year. i think you have value catalyst for a name that just hit free cash flow inflection point i like uber. >> mark, thank you for joining us mark mahaney, enthusiastic about amazon let's jump to another note grabbing our attention morgan stanley lowering ge estimates on goldman sachs based on an interview with david solomon on this show solomon saying they added $400 million consolidated real estate impairment and will see more this quarter warned of similar numbers when it comes to exwit -- equity exposure did take down the estimates significantly by 10% for the year on new guidance from the interview. something to note ahead of bank earnings. >> and the board meeting in

india as people watch solomon as well the data center company outlining numerous ai initiatives at investor day. stock rallying 50% from the lows plus watching intel. investors not feeling bullish after intel gave plans to compete with taiwan semi you can read more about that at cnbc.com the stock is down 3%1. dow's down 28 points we're back in a moment ♪ the biggest ideas inspire new ones. 30 years ago, state street created an etf that inspired the world to invest differently. it still does. what can you do with spy? ♪ ♪

just want to take a look at shares of tesla going back into positive territory moments ago actually, the overall market as well tesla it was interesting because the stock had been down more than 4% on the back of a downgrade from morgan stanley's adam jonas he took it down to neutral despite the move, jonas says the stock is a must own. it wasn't bearish because he raised his price target on the stock to $250. >> bull case $450. >> a pretty wide range. meantime, one of the world's biggest data providers holding investor day in new york city. equinix shares up 15% year to date as the company lays out its strategy to keep meeting the needs of enterprise customers leaning into digital transformation and ai. joining us at post 9 in a cnbc exclusive is the ceo >> good to be here. >> we were joking during the break about the appetite for

answers and use cases about ai how would you describe it right now among investors and clients? >> well, i think ai is a big topic and a big driver i think another wave of digital transformation -- i was talking yesterday about a series of waves from sort of consumer-led digital in -- a major wave with cloud fueling that and i think the pandemic fueled the flames and i think ai is sort of fuel on the fire from there so, i think it's going to be a big driver. >> can you lay out some use cases specifics and how this works for your business? >> yeah, we've been seeing ai inside of our business and selling into those workloads and use cases for years, but i do think we're seeing -- going to see an acceleration of that. i think some of the use cases -- retail is a great example. any that has lots of data, develop insights and use those insights in real time. so real-time pricing of e-commerce, for example, is a classic use case one that's very latency and performance sensitive.

i think plays to our advantages. >> you're a data center company. so, explain where you fit in in the digital infrastructure, who you're competing with and whether ai is the source of growth for you. >> it's one of many but i think the broader growth is digital transformation as a phenomenon we talked about ourselves probably on this show in the past as the engine room for the digital economy. we're more about that foundational infrastructure at the data center level and interconnection that's allowing our customers, who are the driving forces of innovation in digital transformation, all of the hyperscale clouds, all of the major providers, you know, content and digital media, all the saas market. we had three customers with us yesterday, sfwlchltscaler, nvidia, and -- actually, nasdaq, oddly. so -- but it was all, you know, companies that are really driving forces in their respective industries leaning on our infrastructure to do it.

>> are you being affected by the macro concerns, the rising interest rates and pullback we've seen in tech spending? >> not really. what i would say is the commitment to digital transformation seems unequivocal. people, even though they're tightening belts in other areas, i think they're doing that to support digital because, one, it's part of doing more for less a lot of people are using digital to do that candidly, it's a basis for competition in most industries today, is how you're faring from a digital perspective. >> do you think we're at a period -- it's so early on that they know they have to spend but they don't know what they have to spend on? >> i think there's definitely some of that we talked about three categories digital leaders who are figuring that out and are a little further advanced, digital followers who are starting to figure that out and digital starters yet to figure it out. i think a lot of people are going through that i think cloud is a great example where people talked about pullback on cloud and those things you have to recognize, you know,

aws was a $500 million business in 2010. they're going to be an $85 billion business this year that is a massive growth rate. and so there's some digestion of people saying, how do i really use cloud effectively? how do i want to do this i think we're seeing some of that in terms of people starting that out ai is going to be a similar thing, i think. >> if demand is not a problem and you're seeing plenty of it, what about supply, do you have capacity to meet all that? >> super question. i've often said over the last several quarters that i'm more concerned about supply than i am about demand i think we have to continue to be cognizant of can we put the capacity in place, things like availability of power and permit our use. those are things we're working closely with our partners on and something that i think as the market leader we're. positioned and differentially positioned but something we have to watch. >> sounds like you think ai is going to act as a ballast to what orderly would be late cycle uncertainty and cost discipline, right? >> i think so.

look, cost discipline is real but i think ai is helpful in addressing that. i think it is going to be part of another wave. all of these waves have been mutually reinforcing ai is cloud-enabled. now there's a lot of ways ai can come to bear, sometimes private infrastructure, sometimes public i think ai is going to be a stabilizing force as people are making those investments in digital and will be a catalyst. >> do you think regulation at all adds friction to sales or -- i mean, is it just too much to ask regulators to keep up with >> i think that thoughtful regulation -- look, concerns about security, privacy, data governance, you know, inclusion, all very valid concerns. and i think that as long as regulators, i think, are willing to partner with, you know, the stakeholders and businesses driving innovation in ways that doesn't stifle that innovation, et cetera, i think we have to find that balance. some level of regulation is

required i just think we've got to find the right balance there. >> it's pretty amazing the moment we're in, knowing -- or thinking we know what's ahead. >> no doubt. it's impossible to predict again, as we mark our 25th anniversary, we couldn't possibly have expected what has come and it has been a crazy journey. i think the next quarter century is going to be even more exciting >> thanks for coming in. congratulations on the investor day. >> thank you pleasure to be here. thank you. up next, microsoft and the ftc beginning their trial to help decide the fate of the $69 billion acquisition. meantime, june is pride month. and cnbc is celebrating all month long, sharing stories of corporate leaders. here's boston consulting managing director and partner, michael shackner >> i truly believe corporate america can play a great role in advancing diversity, equity and inclusion. there's so much you can do as a company to create an inclusive environment so that individuals from the lgbtq community can be

their authentic self i was always looking for mentors to get encouragement of being your authentic self at work and to unleash a power you all have to drive better innovation, drive better outcomes, be better problem solvers.

we moved out of the city so our little sophie could appreciate nature. but then he got us t-mobile home internet. i was just trying to improve our signal, so some of the trees had to go. i might've taken it a step too far. (chainsaw revs) (tree crashes) (chainsaw continues) (daughter screams) let's pretend for a second that you didn't let down your entire family. what would that reality look like? well i guess i would've gotten us xfinity... and we'd have a better view. do you need mulch? what, we have a ton of mulch.

çó■ó■p microsoft and activeor it'sing off request today "tech■ check. microsoft and ftc are meeting in court today for the beginning of aç■ five-day heari that will likely determine thex■ fate of microsoft's $69 billion deal to buy activisiont■ in the u.s. the ftc isñ■ seeking a preliminy injunction in federal courtq alleging microsofttúlntends to close its deal with q■activision before the july 18th deadline no matter what regulators say and the ftc won a temporary restraining order last weekr blockingç■icrosoft from buying activision untilx■x■ the judge s a ruling it welcomes theñi■chance to arg its case and the belief from that side is itxd■has a better chance of convincing a federal judge its acquisition is legal than thei■ administrative law judge it would have to3■■■face t they are summer.

if microsoft prefails the ftc will likely drop its lawsuit seeking to block their transaction. we're expecting to hear from major players involved in the deal over the nextñ■ several ñr■ microsoft ceo saty nadella, phil spencer and bobby kotick are on the witness list phil spencer walked into court a ew minutes agoalked into court a we'll hear his testimony in just a few minutes. the ftc arguing buying ñ activision would give microsoft an unfair advantagx■1 inñ■l■ tho 'g marketñr■but microsoft saysç■ that's a sony and nintendo in market share. ftc sayingq■ microsoft will make gains from çó■d■ctivision especy call ofñi■i■i■duty■■ exclusive ■ platform microsoft denies that saying it has cut deals with companies likew■ñ■ nintendo it's not over. it's working through the appeals process in ther whose regulator denied the activision deal this spring that

will take the better part of the summer to play k$■]■ut, guys >> right china approved itn■■ the uk blocked it.l■ now we have thisñ■ ftce■ suit. howr contentious one? i know the size of the deal is very big, but what is the background here? >> reporter: it is the size of the deal and the ftc has been going after big tech since chair lina khanñi■took over. than what the uk did bringing in the console side of things saying this would give a dominant share in consoles inko■ u)jg that xbox has and otherjf rivals they're trying to play it both waysñ■ whereas the uk decision s 4■®. wau deutsche bank calling the bottom on bud light sales

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the buzz on bud light

continues, but a little different m■■■oday.g,■ parent company abm tojl■a buy initiating a catalyst r for bud light that recent head business does not fully from the currentç■ challenges. the business in theñr■u.s. is currently down 12íu■■ analysts point out it is not losing shelfñ■i■ presence with ■ w■ driver of ther know they have a proprietary survey, perception 42% of bu light drinkers, carl, it is likely they will buy the brand in three to six months which is more than those saying they will not.w■ they see signs of hope of recovery >> 9modelo has been talking what a great spote■ they expect to g here eventually, maybe not like this.i "variety" has a piece about the advertising push that bud is going to put behind bud light

already spending more in the first quarter than last year aeñs >> you're going to be seeing all kinds ofg■ñ■pushé■■■for bud lig, country music concerts and that kind of thing. >> we'll see if they can win onss deutsch goes to buy. some ofa5■u■■■our headlines we' then hour from fed chair jay powell in his testimony before the senate finance committee, he doesn't expect rate cuts anytime soon, reiterating that message, and cuts will havel■ to wait unl they're confident inflation is moving down to their targeted 2% powell also making somexd■d■bul commentsi■ taking note on the housing marku■■48pvr'g he think housing activity has hitc■ a bottom which jibes with the recent datai] we've seen interesting to hear from the fed chair who is tryi,oñ to bring down the prices of housing >> ande■ a couple of instances where he says we don't want to do too much, we're tryinght?w■■o avoidt(■overdoingxd■it on hikes. already, though, i'm seeing a lot of discussion was about capital requirements and already you're seeing the bank lobby

it would be a dangerous thing to do >> it's political and it doesn't matter for monetarywm+■■policy this greatf■ cfoe■ coun%)■■eveni mentionedfá robert kaplan, theo■ former dallas fed president, so much stimulus. we focus on the consumer stimulus but infrastructure, i.r.a., the inflation reduction act, arpa, the americani] rescu■ plan act, all just pushing al■ t of money into the system working against the fed.-■ >> it isñ■ expensive.e it's t(■2:00 eastern let's get to the judge.f e1i] welcome to "the halftime report." i'm scott wapner the great debate, who is r&■y in charge of this x■market the bulls or the bears?e why that answer means everything, of t(■ourse, to your money. joining mei■ó■■■tox■ discuss ith baruch, jim lebenthal. let's check the markets and see what we are doingfá thisx■ hour. stocks are tracking fort(■four down days in a