it's 5:00 a.m. cnbc headquarters and here are your "five@5. they're more caution on the recent rally today it's all about inflation with the june cpi report due out in just over three hours from now. why one index is getting some outside attention ahead of that report. and microft clears a major antitrust hurdle in its pursuit of activision, the tech giant setting its sights on roadblocks overseas. plus, why cathie wood' love

affair with coinbase may actually be coming to an end. and later in the show, taylor swift's ticket master to woes don't once again. it's 5:00 a.m. and you're watching "worldwide exchange" right here on cnbc good morning welcome to "worldwide exchange." aisle frank holland. thanks for starting your day with us. let's kick off the day with the u.s. stock futures we're seeing green across the board at this very early hour. all three indices up fractionally, this as investors wait for the june cpi number with the annualized number to fall from 5.3% to just over 3% that would be, if we see that happen -- the lowest since march of 2021. stripping out food and energy, the core cpi, the economist forecast arrives, this would be the lowest number sin november

of 2021. it could be a market mover we're checking the bond market we begin with the benchmark 10-year. right now we're at 3.94. this sbaskly back to where we started rising above 4%. we're seeing movement on the 2-year and it's settled back down the third year, we've seen steady movement, up ten basis points since the beginning of the month. we're seeing oil move to the upside we're seeing wti up almost half a percent. brent crude inching toward 80 bucks a barrel up almost half a percent. big move to the downside down just about 1% let's get a check on some of this morning's top corporate stories. we have our pippa stevens with us this morning. >> nvidia is in talks to bring in an anchor investor in the

arm. they're the latest company to hold talks with soft bair-oinked arm with the two firms negotiating oval yags potentially between $35 billion and $40 billion. cathie wood' ark investment reducing its hold in coinbase for the first time yesterday touting 35,000 shares. ark is the fourth largest holder and has been buying the stock for nearly 11 months until june, crypto market volatility due to regulatory concerns and a slew of industry bankruptcies and taylor swift's bad blood with ticketmaster still running hot. yoef seas the fans in france reporting issues with the ticketmaster site to purchase tickets for the era's tour.

several hours later the company cited a problem and said it's working to resolve the matter as soon as possible are you a swifty >> i'm definitely not a swifty i don't know much of the music i know the ref reps to bad blood. >> you're not impacted by the sales glitch. >> i was impacted by the concert. the area around my house was backed up for two day. what about you >> i am a swifty i can't get a ticket it's too hard. i'll just listen. >> that's a bad sign when it's too hard. we turn our attention from swifties back to wall street there are signs that inflation may actually be cooling, but some wall street zrat strat gists are starting to lean a bit

more cautious. the latest city cutting the outlet to neutral saying the risks may be elevated and growth stocks may experience a pullback then there's barclays raising the price target to 4150, still warning stocks will likely be range bound. next year given potential headwinds from bank stress and the resumption of student loan bases. lastly stifel is leveling off and could rotate toward defensive names ahead of a potential recession next year. let's bring in our next guest. janet, good to see you. >> thanks for having me. >> brwhere do you stand when it comes to fears of recession. how do you see thele cpi report. how does that shape your view going forward? >> our view is we're cautious at the moment we think the year-to-date rally has been pretty strong

you almost need a special economic situation, which is a soft landing and inflation and coming back down to 2% that is actually quite unlikely. we think recession is likely in the first half of next year. that's because of the travel conditions also the huge curve is heavily inverted i think it will be very difficult not to see some sort of a recession so we're cautious. we think the risk/reward of increasing equities at the state, it's tempting to chase a rally, but we don't think it's worth doing it at the moment. >> i've got. you. you sound beyond cautious. sound flat out bearish you send out warning signals i want to talk to you about how you're talking to your climates who are mostly wealthy individuals. you have 76.5% in equities, 12% in bonds why are you so heavily in the

market if you're so cautious and you see a recession coming >> so bachlkly -- this portfolio you're looking at is one of our higher risk portfolios, so we have a range of portfolios that cater to client risk appetite. we're looking at equities. it's still underweight, but it's actually a small understood weight but the reason is because we don't want to be too far away from the benchmark at the moment we mentioned that we're cautious, but ultimately we think it's going to be a mild recession. we think it's been enriched last october. we don't see a protracted selloff in the market, but equally, we don't see it's going to have a massive rally within it it's going to be a bit of a replacement in valuation bucks not a deep one that's why -- the financial risk that the equity rally may be

going forward, but we want to be cautious at this stage. >> you say there's a risk that the equity market could be fining forward if there is a pullback when it comes to valuations, where do you want to put money for the second half of the year? >> our favorite region in general is still the u.s. and eventually the ai. we think this is really interesting. it basically is an area of innovation we think that it would drive a lot of productivity, gains going forward in the economy not just the tax sector but across the various sectors that could make use of ai it's one of the hurdles that we have at the moment >> all right very interesting the mega cap moving a bit higher janet mui, great to see you.

thank you for your time. turning to shares of activision blizzard, surging more than 10%. hitting their highest levels since 2021 after a federal judge cleared a major roadblock and microsoft's $69 billion acquisition. look at that chart attention can now shift to overseas with similar concerns in the uk. our arjun kharpal joins us. >> the staunchest critic which blocked the microsoft activision deal, they came out after the ftc's decision and said they're ready to consider any proposals from microsoft to restructure the transaction in a way that would address its concerns so they've gone from saying absolutely no to the deal to coming back to the negotiating table. so what were the cma's initial

concerns it really revolved around the gloud gaming market that if this deal goes through, microsoft would take a leading position in what is a very new and young market right now they're also concerned about markets making activities in games such as call of duty exclusive to its own platforms now at the time earlier this year when the cma said that and blocked the deal microsoft offered some concessions. they said they would allow some of the activision licenses to be allowed over a 10-year period as a way to allay some of those concerns over exclusivity. the cma rejected any of the concessions at the time. they said they would be hard to enforce and they said there's a potential for conflict between microsoft and some of these cloud gaming providers and some of these recessions don't go far enough to allay the cma's concerns the question is if the cma rejected the concerns, what exactly will the company offer even more to get the uk

regulators on their side but all in all investors are pretty happy with them coming to the negotiating table. it's effectively the last hurdle before the markets have to clear in order to get this deal over the line and so they're happy that the regulators are talking an hoping for a resolution, frank. >> right knew they're showing the stocks, activision moving half a percent higher. i want to pull on this theread a bit more call of duty could be in contention give us more insight here, what other concessions might we see from microsoft to appease these uk regulators? >> microsoft has already signed a 10-year deal effectively making cal of duty available on its platform whenever it comes up with the same quality actually sony hasn't signed the

deal, but it's early days in terms of what they can offer the uk regulators. they could say, well, offer more concessions in terms of the deal, in terms of the way they're giving these games to other platforms. it's interesting i think it would be interesting. they said we'll let this deal go through if you manage to divest the call of duty business completely at the time they said this is impossible how do we divest this one game out of activision? it will be interesting to see if they bring it back on the table as well. plenty of questions as to exactly the kind of concessions microsoft might offer. they'll have a few months now to hash this out here in the uk. >> arjun, one quick question ftc has until friday to appeal are you expecting to appeal? >> they haven't done so very offen in the past, but clearly this is a huge, huge deal for the ftc and lina khan who's taken up the head of the ftc on

a very anti-big tech, antitrust as well. it could go either way here, frank. a lot at play for the ftc. also whether they like to drag it out will remain in question. >> i have to be honest, as long as thief is available, that's key. >> that is key. a lot more to come on "worldwide exchange" including one word investors have to note. first, much more ahead of today's cpi record and what mark zan city is telling clients after the release. after a sizzling first half of the year, investors are getting a little worried whether we've come foo far and too fast. and caleb is here taking a look at individual investor sentiment and lay later on in the show, beey hope to crack rort frank is here to dig in on that.

a very busy day ahead. >> announcer: this cnbc program is sponsored by ibm. ibm, let's create. well, with ibm, you can use software to help you connect and analyze data— from hvacs to elevators to lights. what if we use ai-driven insights to pinpoint inefficiency? yep. and act on it. saving energy, money... ... and emissions. yup. that's a big one. now you've built something better for everyone. that's the sustainability solution ibm and a global real estate company created. what will you create? ibm. let's create. i was told my small business wouldn't qualify for an erc tax refund. you should get a second opinion from innovation refunds at no upfront cost. sometimes you need a second opinion. [coughs] good to go. yeah, i think i'll get a second opinion. all these walls gotta go! ah ah ah! i'd love a second opinion. no. i'm going to get a second opinion. with innovation refunds, there's no upfront cost to find out. so why not check like i did for my small business? take the first step to see if your small business

qualifies for the erc.

all right. welcome back to "worldwide exchange." our arabile gumede is standing by in our london news room with more arabile, good morning. >> good morning, frank we've got a positive start to the trading day. it's been around just over two hours since the market opened in

europe really it's positivity across the board, taking on from yesterday's numbers. a lot of these sessions have been on the up for two days at the very least the foot see 100 wants to note uk banks have been under a stress test for the bank of england and today have passed that stress test the governor andrew bailey say there are significant risks in this market one needs to consider because we are in an interest rate hiking cycle and things may get a little worse for wear, but having taken that stress test, it does seem a lot of the banks, particularly the uk banks will be resilient and will be able to manage throughout ta time what is the follow-through on asia that marjt wants to look at japanese whole sale prices come on today as well that has slowed them to effectively the lowest pace in six months coming out of japan but the shanghai composite as well as the nikkei managing to dip around 0.8%.

but positivity with hang seng as well as the asx out in australia. >> thank you very much. the nato summit wraps up with volodymyr zelenskyy meeting with key leaders of lithuania including president biden. our steve sedgwick is on the ground and joining us with the latest action and doing some great reporting out there. what's the latest today? >> thanks, rank. yeah, i think we've spoken to 14, 15 leaders including the european leaders and boss f. yes, there is a place for ukraine in nato, in eu, but just not yesterday. we heard from volodymyr zelenskyy on his arrival here today. this is what he had to say >> on our agenda, we have

questions. we have weapons packages, new weapon pack ands. >> on his agenda, they've got two things on the agenda one is for volodymyr zelenskyy to get membership of nato or strong indications of. we talked a lot about that the second is to get arm meant to the battlefield i spoke to his defense minister yesterday and i said, look, aren't all these webs, promises from the u.s., germany and-to-the battlefield and he said, yes, they are getting to the battlefield. they set all coalition of 11 countries who are going to give f-16 training to the ukrainian pilots france is offering long-range missiles and germany, a 700 million euros which is pivotal and 25 leopard tanks on one front, absolutely he's getting support to fight russians on the battlefield.

on another front, he's going to have to put up with the front of the dang gling carrot until hopefully the war is ended. >> that's a clear message you're sending. thanks. coming up on "worldwide exchange," summer may just be getting started, but a new report shows how much inflation is expected to weigh on back-to-school shopping and why disney may be unloading a key property in a lucrative market we've got the whole story when "worldwide exchange" returns at morgan stanley, old school hard work meets bold new thinking. ♪♪ at 87 years old, we still see the world with the wonder of new eyes, helping you discover untapped possibilities and relentlessly working with you to make them real. old school grit. new world ideas. morgan stanley.

76% of 23andme health customers surveyed reported taking healthier actions. new world ideas. more exercise. eating healthier. and simply getting more sleep. because they know health isn't just a future state. health happens now. with over 150 personalized genetic reports from 23andme you can start your dna-powered health journey today. this is a national emergency. they just fired a starting gun. we can end this war, if we put me in charge.

(bobby) my store and my design business? we're exploding. but my old internet, was not letting me run the show. so, we switched to verizon business internet. they have business grade internet, nationwide. (vo) make the switch. it's your business. it's your verizon.

welcome back to "worldwide exchange." the market had gains investor sentiment appears to be shifting they's according to new data out from investorpedia, we're joined now with much, much more good to have you. >> good goto be here. >> what are they searching for. >> we look at over the course of time here's what came to the top of the list what is a doom loop. that's that negative economic cycle, and people have been talking about that with what's been happening in term of downtowns in terms of vacancies. >> the second.

>> fear to the left, greed to the right. people are stuck and they're worried about their money. a lot of that still because you're getting good rates there. but student loan debt was always on people's minds. people want to know who owns it and how much is actually owed and how to minimize taxes on 401(k) withdrawals this surprised me that people are thinking about tapping into their 401(k). >> in june we saw the data bottom out i want to touch on the data you're looking at. the top three are the voo, basically the s&p 500, the rsp and spy. what does that tell us about the market in the second half as so many people are looking in the index that invests in the broader market >> size rules.

you have the voo people are worries about that concentration of the magnificent seven or whatever we're calling him carrying too much of the market's load. people are putting money into the big spys and equal weight and looking into the queues. >> when people are interested in mega cap tech and ai, but they want to put their money more actively in the broader market. >> they want to get a little more promiscuous, but they gravitate to the side where ev everybody else is. that's herd mentality. >> fascinating data that you have here. one of the things i saw were fund flows what does that tell you? what does that tell you about individual investors >> it's push and pull. you saw it maybe toward the end of last year and beginning of

this year pulling back a little bit. if you look at mutual fund closing, they're kind of meh, which tells you the market has been grinding higher slowly. it's been a slow tick higher because people are both -- institutions and individuals, not quite sure they want to c commit you look at the anxiety index. they're anxious about their own money, money in the bank they're anxious about whether they're going to be protected if we go into a recession there's anxiety about personal finance but a little less anxiety about the market which is why you've got the wishy-washiness. >> a lot to watch. caleb silver, editor in chief of investopedia. we have jessica leighton good morning.

>> frank, good wednesday morning to you we begin with that utter devastation left in the wake of that flooding in vermont the state's historic capital area slammed by two months worth of rain in a matter of two hours. the city of montpelier is under a boil advisory and officials are keeping an eye on a stream four areas have been declared disaster areas after 53 years, leslie van houten has been released on parole now 73 she was convicted of the 1969 murders of two. she was originally sentenced to death but an appeal reversed it to life with the possibility of parole. and after nine straight de defeats, the national league won the mlb all star game for the first time since 2012.

kohl's rockies catcher hit a two-run homer in the eighth to help lift the a.l. to a 3-2 win over the american league in seattle. so frank and everyone, let everyone know nobody beats the national league ten times in a row in the all-star game i'll send it back to you. >> a lot of fun. it's great to see you do as always. why top economist mark zandi is optimiss tig tick ahead of today's inflation report and kim kardashian looking to retake control of her beauty empire and the stock's reactionn at oth news "worldwide exchange" is back right after this

welcome back to "worldwide exchange." there are fresh signals on the rate path forward. mark zandi is laying out whether the pressure could ease. >> the green light has been give on the microsoft our robert frank is here he's going to lay out why the clock may be ticking closer to a showdown between lvmh and rolex. it's wednesday, july 12th, and you're watching "worldwide

exchange" right here on cnbc welcome back to "worldwide exchange." i am frank holland thank you for start your day with us as investors pick up more on that in a moment first a look at the market the green across the board the nasdaq doing its best at a quarter of a percent, the other two up fractionally as well. looking at yields you begin with the benchnch mark 10-year we're also seeing more positive moves on the 2-year and 30 yr we're continuing watch and right now we're seeing wti just a tick below 70 buck as barrel, up fractionally. brent crude, similar story right around 79.5.

a bigger downside movement, down almost 1%. back now to our top story and the investors counting down to today's cpi report due out at 8:30 a.m. eastern time they expect the headline number to fall to its lowest number since march 2021 with a 3.1% read year over year. if you strip it out, it's a core number since november of 2021 at 5% one key consumer price is getting some outsized attention this week. we're talking about used car prices we're talking about the latest, something we don't talk often about. whole sale prices last month, they fell for a third straight time since april of 2020 joining me now with more, mark zandi, chief economist at moody analytics. mark, how are you? >> good morning, frank good to talk with you. >> i don't know if it's something you pay attention to,

but how big of a read is it into cpi? i don't remember if you saw last week, adp came in very hot, but the actual jobs number came in very different is there any parallel when it comes to huge job numbers and cpi? >> i look at it. at moody's we construct our own price car index. we saw a large decline in the month of june of about 3%, well over 3%, down 9% year over year, and it matters in terms of -- it's a weight in the cpi. it's probably 2%, 3% it's probably not a big deal but it is indicative 's an area we've seen price increases that added to inflation back a year or so ago and now it's going start to weigh on inflation new vehicle prices have also rolled over. frank, what east most fundamental is we're getting more global production japan and germany, which are

large vehicle producers that supply chain issue since the pandemic, they're ironing those things out and getting more production, and that's bringing down price. >> estimates were 3.1% when it comes to cpi what do you expect are you in line with the other estimates and what do you think it means for the fed's policy path forward you had a conversation with john williams yesterday. >> in line a couple of a tenths percent 0.2 and 0.3 on core cpi. that's encouraging year over year, ta's down from 9% a year ago some of we're moving in the right direction. vehicle prices are a big part of the story. the other big part of the story is the growth in housing services that's a much larger component, a third of the cpi that's going to start to grow much more slowly going forward we're getting a lot more in

rental supply, a lot less demand because of surge in rents previously and portability issues so more supply, less demand. that means higher vacancy. that means slower growth in housing services that's all very good inflation is still too high, but it's moving in the right direction. just to connect the dots back to the fed, the fed wants inflation understandably lower than it is today, but i do think it's moving in the right direction, and i think with another rate hike or two, that seems like that's where the fed rate is going here that should be sufficient to get it back in the bottle in a reasonable amount of time. >> we keep hearing from fed officials it's more likely two what sense did you get after that conversation? >> well, john's not giving me much of a sense. he was asking me the questions i would have loved to have asked him the questions. he was pretty poker faced, so i

couldn't read too much into it my sense is kind of the prepon drens of the view on the rate hike is a couple points each that would be the end of the story. my own view is they've done what they need to do. they could stop right here and be fine, but i suspect they want to go at least another once, probably two more times. that's based on everything else i know. >> right now we're showing the odds for the hike in the july meeting. 92% right now. john williams with a poker face. i want to bounce something else off of you back-to-school spending expected to decline 10% first decline in ten years what does that tell you about inflation and the consumer >> consumer are shifting their preferences. they're shifting what they're spending their money on, away interest stuff and toward services, travel, and ball games.

may be what you're reflecting. i won't reach too much into it i think in general consumers are doing their part they're hanging tough. they're doing just enough to keep the economy moving forward. that goes to pretty good fundamentals job unemployment levels are low lots of excess saving. people have a lot of cash, particularly if you're high income, middle income, a lot of cash in the bank, and they're using that to calibrate their spending i think consumers are going to hang in there. that's key to keeping the economy out of a recession, not too much that it becomes inflationary not too hot, not too cold. it feels about right, but what people are spending their money on feels good. let's get a check of some of this morning's top kornlt stories f our pippa stevens is back with us. >> ibm is considering using cloud computing chips in one of

its services it may incorporate the chip in the watson x service that became widely available this week ibm is hoping to take advantage of the boon in ai technology after watson, the first ai system, failed to gain market traction. disney is reportedly tracking business. it could include a joint venture or sale of the unit. disney has talked to at least one bank to talk about how the business has grown while sharing the costs as they make a bigger pivot away toward traditional tv ceo bob iger will join dave faber for your an exclusive conversation tomorrow at 8:00 a.m. eastern a new development on the potential strike the guild has agreed to work with a federal mediator in

contract negotiations around pay and residuals with film and tv studios. the guild says it won't extend that deadline to reach a deal. if the strike does happen, s.a.g. could join the writers of america on the pivot line. >> that would be quite a deal to have both s.a.g. and the writers on the picket line. "the wall street journal" reporting that kim kardashian is in tox with the fragrance giant coty to buy back her shares of her line the talks could fall apart something to watch. sticking with the high end and the luxury brand market, a battle is already starting to take shape who else to bring in robert frank robert frank, you're here to

break it all down. good morning great to see you. >> good morning. opening a new flagship in new york they plan to double their u.s. boutiques to 50 in the next three years. it's part of their plan to beat the leader in every category there are nearly $3 billion of sales. the owner of tag hoyer says demand for new watches remain very strong. tag heuer has a list for 18 months but prices of watches, they have fallen more than 20% in recent months >> through covid, there was a very strong growth especially on watches and also we saw a huge

surge in the second-hand markets due also to speculation with many resale prices that were increasing a lot this has changed in the last sick to eight months and now it's normalized again. >> arnault said china is picking up, especially the chinese traveling to europe and other parts of the world lvmh is going to offer us a second quarter read and how watches are faring. >> i want to go back to the watches for a second you mentioned prices were going down for some of the higher end brand. is that because people are wearing apple watches and digital watches? do you see a demand for the luxury watches they are beautiful, but they're still analogue. >> and they're expensive

who's wearing the watches are the millennials and gen z. there are some offshore, sort of these iconic trophy watches. those prices more than tripled during the pandemic. they've come down a bit. but still when you go into a store and try to buy a new watch, whether it's from tag h heuer or others, they're hard to get. >> i love those watches. i admit. i wear a fitbit myself great to see you. coming up on "worldwide exchange," your morning's global briefing and positive signals for microsoft over its activision deal over its regulators after that major s.u. decision "worldwide exchange" back in just a moment.

hi, my name's steve. i lost 138 pounds on golo and i kept it off. golo's changed my life in so many ways. before, i was over 300 pounds. now, i literally have the ability to take a shirt off and go out in the sun where i would have never done that before. try golo. it works. 76% of 23andme health customers surveyed

reported taking healthier actions. because they know health isn't just a future state. health happens now. start your dna-powered health journey today with personalized insights from 23andme. welcome back to "worldwide exchange." we check on this morning's biggest upgrades and downgrades by firms you know and stocks you likely own the price target has been raised it looks less attractive after the recent rally given regulatory challenges ahead and the surprisingly challenging

backdrop raymond drains is dismissing what it calls the stock's excessive weakness over regulation concerns in california look at its shares of sun power, up almost 2% this morning. ubs out with a big price target, going from 390 to 525 per share. it sees netflix as the main beneficiary as peers prioritize profit and streaming shares of netflix up almost 0.75% this morn jg a check on the headlines dominating conversations on trading desks all around the world regulators in the uk appear to be softening their position on the microsoft activision deal. it was prepared to consider it after the u.s. judge cleared a

path for the deal. one of the most hawkish banks keeping the interest rate unchanged, the banks saying the banks have remained at a restrictive level and illumina has been hit with a record antitrust find the u.s.-based genetics testing company has been penalized the reports add the fine can total 10% of illumina's global revenue. that's the maximum allowed under eu rules. coming up on "worldwide exchange," the world every investor needs to know and the trading day ahead. what a lower than expected read could mean in the market days ahead. if you haven't already, follow our podcast. much more "worldwide exchange" back after this break. for an erc tax refund. you should get a second opinion

from innovation refunds at no upfront cost. sometimes you need a second opinion. [coughs] good to go. yeah, i think i'll get a second opinion. all these walls gotta go! ah ah ah! i'd love a second opinion. no. i'm going to get a second opinion. with innovation refunds, there's no upfront cost to find out. so why not check like i did for my small business? take the first step to see if your small business qualifies for the erc.

♪♪ at morgan stanley, old school hard work meets bold new thinking. ♪♪ partnering to unlock new ideas, to create new legacies, to transform a company, industry, economy, generation. because grit and vision working in lockstep puts you on the path to your full potential. old school grit. new world ideas. morgan stanley.

live shots from around the world. hong kong. it's evening over there. new york, and our nation's capitol, washington, dc, just getting started. welcome back to "worldwide exchange." we have a w.e.x. wrap-up we begin the softbank arm and the upcoming usipo. most says it discovered a breach following a propose last most. the oecd says 27% of jobs at high risk that rely on skills. they could be at risk as a result of artificial

intelligence. >> cathie wood sells coinbase for the first time in northeasterly a year. bye-bye baby's 11th hour effort to save its store has failed ultimately they could not reach an agreement on valuation. there are primary reasons to cut back we're getting you ready for the key day ahead. two key data points. june cpi out at 2:30 and the fej beige book amazon prime day continues, running until the end of the day. markets with the key inflation as investors prepare for the

impact they're continuing unwind positions in treasuries with long positions now retreating for the most elevated level since 2010 wall street traders cash out on bets on further flattening of the yield curve and more volatility over the uncertainty of the path forward for inflay for more how on how to factor it in, we bring in mimi duff. >> thanks for having me here. >> you're a little bit of a contrarian you remain bullish but you're looking at tips. i know the one-year is one of the things you're looking at yield just under 4% compared to a regular treasury why is that a better play. >> when you buy protected inflation securities you're buying the realized. the break even inflations on the

fronter and for two years is around 2%, for instance, and we think actual inflation will come in above that level. for that reason we like replacing some of the fixed income complex with that. >> you get whatever the level is of inflation and inflation turns out to be on top of the year when it comes to the tips. >> on top of the real yield. you're earning a positive real yield, which, frankly, we haven't seen for a really long time while we do think the fed has more hikes in store to continue to control inflation, investors should be enjoying positive real yields plus the realized inflation in this environmental. >> really interesting stuff. a way to invest. so with a all that in mind, what is your w.e.x. word of the day >> complacency we think the equity markets and

the credit markets aren't really pricing in a prolonged environment of higher rates from the fed or a recessionary environmental. and whereas the fixed income markets as you were saying with the curve deeply inverted and the commodity markets are signaling a slowdown, we feel like they're a bit complacent here. >> one thing that you're looking at is infrastructure if you think the rest of the market is complacent, why are you so bullish on it right now. >> we're a bit underweight in equities and we like infrastructure and real assets because we think they will be supported by government regulatory environment, energy diversification, this sort of thing. so we do continue to pressure equities. >> we're showing etfs. when i look at it, that's pretty high but some of the other ones, kind of a mixed result.

we're seeing mixed results give us a sense. what do you think is the catalyst for the stocks? for the stocks, what pushes those higher >> i think you'd really have to dive into each one of the components of those tfs. this year is a winner and loser in terms of the broad markets. we see the tech doing so well and yet the regional bang down almost 30% i have to get in on the beats on the contributors i don't know if we have time right now. >> i think people are saying investors need to do their home work and look at vanilla stocks. me me duff, thank you. we have some news. chipmaker broadcom is seeking approval this after offering concessions for marvell technology

we're seeing marvel up fra fractionally, 3m up a third of a percent. vm vmware and illumina, 10% of illumina's global turnover and the maximum allowed under eu merger rules. the fine was, quote, unquote, unlawful aconlyg at the shares, frtial higher. that's going to do it for us "squawk box" coming up next. sleepovers just aren't what they used to be.

a house full of screens? basically no hiccups? you guys have no idea how good you've got it. how old are you? like, 80? back in my day, it was scary stories and flashlights. we don't get scared. oh, really? mom can see your search history. that's what i thought. introducing the next generation 10g network. only from xfinity.

good morning we're all getting ready including markets for a key data inflation read and another round. futures so far building on monday's and tuesday's gains

closer to the finish line, a federal judge, a biden appointee, ruling in favor of the microsoft/activision merger, looking to pave the way for a closure later this month. and disney may be looking at strategic options by looking at a deal in india. it's wednesday, july 12th, 2023, and "squawk box" begins right now. ♪ good morning and welcome to "squawk box" here on cnbc. we're live at the nasdaq market site in times square i'm melissa lee along with joe kernen becky and andrew are off today let's take a look at the futures as the cpi number is due out in about two hours' tomb. s&p looking to open at 9, dow up by just about 58 we should note markets are moving higher after the dow was up 1%.