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good monday morning. i'm sara eisen with frank holland live from the floor of the new york stock exchange. david rosenberg is going to join us for a late breakfast on the busiest week of earnings season and ahead of the fed on wednesday. and the ceo of graze, with reaction to the white house and voluntarily guidelines as that stock skyrockets. a blowout weekend at the box

office imax rich gelfund joins us. the dow on track for 11 straight gains the nasdaq the laggard we haven't talked about it a lot today but we have the nasdaq 100 rebalance. perhaps that's a factor. a big week of earnings for big nasdaq stockses including microsoft, amazon and alphabet >> i think the conversation this week, frank, turns to can the earnings justify the runup in valuation and can the fed not do anything to completely surprise the markets. when it comes to the fed and expectations, we expect them to raise interest rates on wednesday. >> a quarter point. >> most of the notes i read this morning also expect to maintain a somewhat hawkish view, we could still be raising rates, we still have work to do on inflation because they don't want to declare victory too early. >> most people are expecting a hawkish tone on the press conference with jay powell,

expect him to say we're still data dependent, looking for inflation to cool down to 2% i think a lot of people put the analogy out there. it's like losing the last three pounds on the diet we have a lot of disruptions in the economy with labor negotiations that a lot of people believe could be inflationary. >> i wanted to get to you in particular on the strike we have until the august 1st deadline they're going to talk again tomorrow what is the likelihood they will not be able to strike and disrupt our economy? >> i don't think there's any real odds on it. they're going back to the table on tuesday, negotiating over pay. one of the sticking points is pay for part-time workers. u.p.s. made it clear they're ready to raise their pay rates but their sticking points around automation, work conditions that still have to be ironed out. in general i think most of us should be hopeful that some type of deal can be worked out.

there's some reports out there, there would be a $7 billion negative impact on the u.s. economy if this strike lasts for ten days that could increase if if goes past those ten days. the post office says it has the capacity but does it have the man power, woman power to sort all these packages if all the different parcels were dumped onto the steps of the united states post office what about the customers $4 billion comes at the expense of u.s. customers. we're talking amazon, 10% of amazon volume is u.p.s. packages, etsy, macy's >> this could cause a huge problem. is this where the biden administration could get involved we've seen them in other

systematically important strikes, like the railroads, enter the fray >> in this case, that might be the $7 billion question. the teamsters have asked the white house not to intervene will the white house intervene i reached out to the labor department, the commerce department and haven't heard back yet but that is literally a $7 billion question. >> keep us posted on that. the fed is the big focus this week. while the market is expecting one and done, our next guest says don't look for dovish commentary, he doesn't expect powell to pivot until a recession becomes obvious. joining us is rosenberg research president, david rosenberg the recession is not obvious you think it's coming and you've seen it for a while, but we don't fully see recessionary indications, do we >> well, the data has come out mixed but if you focus on the spending side of the economy, you're right, sara, the gdp is still positive and the run rate is 1.8%.

what i've been saying in my message is real gross domestic income is already in a recession already. you've got an almost unprecedented divide between what the spending accounts are telling you. if you look at the soft market and the credit market, they're telling you that we're in a goldilocks the odd man out is the treasury department you wonder if we're in some new era of goldilocks, why is the ten-year note 3.7% when the fed's about to pin the policy rate at 5.25, 5.5? the treasury market is the odd man out here as far as markets are concerned. you're quite right most indicators are telling you the recession is not here yet. you and i would be having this conversation back in the summer of 2007 or in the -- in the

winter of 2000, saying the very same thing. >> right >> it's probably going to take a while longer to say the business cycle has been repealed, which is what we're talking about, just because recession is not here in the classical sense. the business cycle has not been repealed and that the lags from that policy interest rate as the economy resets to it isn't going to cause a recession, which is a natural part of the business cycle, to me is a reckless proposition to make. >> i know back then they were dismissing the yield curve as don't pay attention. it's sending different market signals. it's what you're hearing, the market expects inflation to come down and growth to remain strong david, there is this thing which is the covid giveback and distortions and the pent-up demand if you took out travel, leisure, hospitality jobs from the last few jobs report, what would the

economy really be looking like and the question is, how long that kind of stuff actually lasts and how it continues to distort our economy? isn't that's what's pushing back against the economy? >> that's a great point. i didn't look at it from an employment situation but i wrote about if you actually looked at the economy, and you stripped out consumer spending on services, which of course benefitted not just from the reopening trade but all -- and the bucket list spending and all the lagged impact of -- mean, whoever thought that all of those excess savings was going to get spent historically when the personal sector received transfers from the federal government, half thought save, half thought spent. let's say more narcissistic society we have on our hands today, more spent. that was the energizer bunny that kept spending and it had a

big impact you strip that out of the data and the economy is flat as a pancake over the course of the past four quarters it's had a huge impetus. the question we have to ask ourselves, is it going to be persistent that's the question that we have to really pose, is whether you want to extrapolate what's happening now or in the past four quarters to what's going to be happening in the next four quarters this is the same game we were playing, remember back in 2007, and everybody thought that, well, the lags from all the wealth effects from housing market were going to sustain the expansion in 2008. instead we got a recession nobody was expecting i think a lot of that impetus -- you know what's interesting is in the latest fed beige book you saw a lot of evidence that a lot of the fun and games spending on the services side, outside of cruise lines and outside of air travel, are starting to subside.

of course you're seeing that in the cpi numbers. you're seeing the inflation in many sectors, service sector, consumer spending, is starting to deflate or disinflate which tells you something that's happening on the demand side i think that's going to be a weak story for the next year >> david, this is frank holland here sorry to interrupt you i think you're hitting on something really important right now. there's alternative data that shows a different picture than the headline data we're looking at wisdom tree begging the table for a couple of months now saying ip flags is flat. if you look at alternative data. is that something the fed will consider it's a big week for central banks, ecb, also bank of japan is that something our central bankers are looking at beyond the headline data and cpi? >> that's a great point. jay powell shifts his focus from one inflation index to another you know, at one time he focused on headline. headline in its core

then he develops the new supercore service sector, which has slowed down markedly in the last few months. you start wondering if the fed is going to start to go back to the headline inflation rate. i think they're still looking -- they're not looking at trueflation. they're looking at cpi/ppi deflator and expectations. i guess it comes down to what sara was saying earlier at the outset, which is how is the fed going to interpret everything on wednesday? we only have one rate hike priced in, and that's wednesday. everybody believes they're done after that, even though the dot plots don't show that. i'm a little concerned in the latest outbreak in oil, the agricultural complex that's 20% of the index. with an unemployment rate of 3.6% and union wage settlements that sara was talking about

earlier, how is it going to play into the fed, is the one risk that has always been at the forefront is are we ultimately going to see a wage price spiral we haven't seen it yet but will this latest runup in food and fuel play a role in influencing wage bargaining? you've seen it in the marketplace already. marketplace expectations are a lot higher today than they were at the end of june i think the fed's in a bit -- i'm not going to say they're in a bit of a box they've been saying -- only 6 of the 18 fmoc participants think they're done on wednesday. the vast majority think they have more to go. and everything we've seen. we've had this hiccup in the commodity market that can't be ignored. and what financial markets are doing in general, right? the fed last raised rates was beginning of may

financial conditions have actually eased i don't think that plays into a fed playbook that wants to see the unemployment rate go up to 4.5% from 3.6% so, that's the risk. president risk is wednesday's meeting, they're going to go 25, but i think the wording is not going to be friendly to the markets. >> i agree i think that would be worst case scenario if they saw inflation bubble back up and they declare victory too early. thank you. david rosenberg with updated thoughts from rosenberg research. the ceo of imax is next. barbenheimer seeing the biggest box office debut can the movie industry bring viewers back to the theater beyond this pretty unique phenomenon we'll discuss. we have piper sandler cutting amex to sell shares are down more than 5%1. we'll get to that call when "squawk on the street" returns

it's been a big weekend at the box office with barbenheimer bringing in over $200 million. imax, which is screening "oppenheimer" notching its biggest weekend since 2023 bringing in $35 million for the company, which is imax's biggest share ever of a film's opening

weekend box office with 20% of total receipts joining us for an exclusive interview is imax ceo rich gelfond. w why was this unique for imax >> historically imax is an ancillary part of the box office if it's a hollywood film, you get drift off the marketing. but this chris nolan filming with imax, he made imax the centerpiece of his marketing campaign we led the way globally. as you said, it was 20% worldwide but 26% on 1% of the screens in the u.s it was 20% on 0.7% of screens globally we really led the box office as a matter of fact, i think there's a paradigm shift going on right now if you look at our indexing for hollywood movies over the last year, we've been a much bigger percentage of the box office

our market share is up 50% since pre-pandemic. >> why is that >> i think, you know, not just in movies, but i think people are seeking out better experiences. look, concerts, the taylor swift concerts has done over $1 billion, or it will. look at sports franchises. i think imax is clearly the best way to see it. and i think after sitting on couches for so long, people want something that's really different on a global basis. >> you mentioned a paradigm shift. i want to dig into that for a second so, you've had a 10% of domestic weekend box office for six pretty big movies. across the spider verse, the indiana jones movie. what is the paradigm shift are people looking for an even bigger experience? is that what's going to bring them back? i always thought it was amenities. i want food, drinks, things like that is it just back to the movie experience >> i think it is on a world wild basis. the week before top gun we did

14% of that box office, which was the highest we had ever had in that franchise. can consistently the last couple of years the percentage has been bigger i think people want a better experience they're used to sitting on their couches, taking breaks, the kids screaming -- >> but you can pause, in all fairness. >> yeah, but that takes away from it, less into it. maybe that's exactly the point, is you really want to be engrossed in something you want to get away you want a break from the ordinary life, which i think doing it on your couch doesn't give you >> what are you seeing for ticket prices right now? how much more are we paying relative to 2019 levels? >> the prices are set by individual exhibitors around the world. remember, we're a technology licensing company. we don't own theaters, we don't have leases. i think it varies, but if i had to guess, i'd say versus '19 they're probably up around 12%,

something like that. >> overall, tickets are more expensive. are you worried about an economic slowdown? we're talking about fed, demand destruction with raising rates a .25% hike isn't the tipping point but consumers are stretched. shares up 7.5% right now >> well, i think you have to sort of step back from it and say the movie has been recession proof for decades, forever i've been in my job for almost 30 years, so i've lived through the ups and downs. and it's an affordable luxury, especially imax. you might cut back on your vacation, you might not go out to dinner at an expensive restaurant, but it's still $20, $25. you know, that's -- that's a getaway. it's like who could go on a vacation for $25 so, i think, in fact, slowing down they'll cut in other places, but i don't think they'll cut it going to the movies. >> i think the biggest question

for investors today, rich, and this pertains to you and your company, but also broadly box office, is how repeatable is this barbenheimer phenomenon for you "oppenheimer," you got a great piece of it. but if that's what it takes to bring the box office alive, that's a pretty big bar? >> like i said, we're global in china this weekend we had a film called "creation of the gods" and we did almost $9 million in china that was 15% of the chinese box office in the first quarter this year, foreign language box office was about 30% for imax. we're doing japan anime. last week we were 18% of the box office so, i think, you know, there's enough global content. you're right, it's like a portfolio in a way every weekend isn't going to be this weekend, but if you play through a year and there's wind at your back because of global trends, i think we'll be fine. >> are you going to get more

deals like "oppenheimer" are you in talks with -- >> for the rest of the year our slate is already filled out. we're very excited about "dune" with warner bros we did about 20% of the box office for dune one. that's coming. we've got gran tarismo and aquaman so i feel good about 2023. >> this movie outperformed the opening weekend of "dark knight." i went the first night that was a whole event just amazing to see "oppenheimer" outperform that movie. >> i think for imax it did one of the reasons was there were a lot less screens, to be fair this weekend you had the barbie screens, you have the top gun screens, you had a lot of screens. so, people who wanted to see "oppenheimer" the right way had to go to imax to see it the right way. obviously, they could have gone other places but we were

disproportionately the number one option. >> so, that was helpful, even more helpful for you. >> yes, even more helpful. >> rich, thank you appreciate you coming by to talk about it huge weekend for imax. an under the radar a.i. play blaze stock up 60% so far this year. we're watching domino's reporting a revenue miss as higher prices led to a drop in demand the street is still bullish. the company playing up future partnerships, for instance, uber eats, and postmates as well, which led to a series of target 'sp e hikes for that stock stay with us oh, i have a shellfish allergy. one prawn. very good. did i say chicken wrong? tired of people not listening to what you want? it's truffle season! ah that's okay... never enough truffles. how much are they? it's a lot. oh okay - i'm good, that - it's like a priceless piece of art. enjoy. or when they sell you what they want? yeah. the more we understand you, the better we can help you. that's what u.s. bank is for.

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this is your moment. critics declare oppenheimer is magnificent. the new york times calls it staggering. it's utterly enthralling and one of the best movies of the century. european markets set to close in just a few minutes. stocks are higher there. rebounding off the lows.

household goods leading the losses telecoms leading the gains new economic data to talk about there. showing a slowdown in business activity in france, germany and the uk during the month of july. that's fueling the recession fears and the biggest economies in europe. meanwhile, in spain, elections held over the weekend led to no clear majority winner, leaving the country at risk of political gridlock all of this ahead of the european central bank's meeting on thursday, where they are expected to announce another 25-basis-point hike, like the fed. the fed and the boj also scheduled to make announcements of their own like the fed, frank, the big mystery into the ecb news conference on thursday is how will -- what will she signal about september? i think the feeling from economists is that europe is still not as advanced as the fed in the hiking cycle. they still have sticky inflation, even though the trends are going in the right direction. certainly today we got new wholesale numbers showing they're moderating that they may

feel they have to do more and hike more, september potentially into the fall. that's the message christine lagarde has signaled in the past. >> the ecb chief economist warning against pricing and any cuts over the next two years we're talking about hawkish commentary in the u.s., similar tone in europe, but the markets are acting the same across both oceans people are hearing what they want to hear, assuming that everybody's done, the central banks are done when you haven't gotten a clear indication of that the fed, whether it was austan goolsbee on our air a couple of weeks ago saying, you should expect two more hikes. they really believe the soft landing is achievable. >> the market is fighting the fed and the ecb on hawkish views. every time we get an inflation report, the market gets more excited about it i think it will be interesting to see how the central bankers frame the rest of the economic activity because europe is weakening. >> there's a famous movie quote, you're saying there's a chance

but the movie is "dumb & dumber." so thag there's a chance of them stopping, and the fed keeps saying, no we're not going to do that how many central bankers have to say it, and ecb, and bank of japan? >> they did pause in june. there's some instincts - >> was it a pause or a hawkish pause? >> it was a hawkish pause. hawkish pause, skip, whatever it was. >> we keep coming up these names for it, different terms. >> yes, but the signal was they wanted -- they want to slow things down. they realize they've done a lot. they're worried about lags to your point, the signal has been for most of the central bankers, including powell himself, there's a little more work to do. >> maybe to your point, the idea of getting inflation down to 2%, maybe that's a goal more pegged to pre-covid maybe we're in a different economy. maybe that's not achievable in the time frame they laid out. >> a lot of people think that's true they won't admit that. that will be admitting defeat. time for a news update

we're not going to admit defeat. we'll toss it to con t contessa brewer. we came into contact with disturbing new police body camera video showing an ohio officer releasing a k-9 on unarmed black man. we have a warning. the video is difficult to watch. >> get the dog off of him! >> state police say this happened after troopers chased the 23-year-old truck driver for half an hour before he finally stopped. according to officials, a local police officer deployed the dog, even though the man appeared to surrender. one of the state troopers could be heard yelling not to release the dog multiple times it's not clear whether the officer faces disciplinary action ohio state highway patrol says it is investigating. thousands of tourists in greece were forced to evacuate from the popular vacation destinations of rhodes and corfu as firefighters work to contain wildfires.

those fires are flaring up as europe deals with a brutal heat wave. you want to hear an amazing story of survival? three people on board a small plane survived they're already out of the hospital when their plane crashed through the roof of a texas home sunday. authorities say the plane went down after experiencing engine failure. unbelievable sara >> thank you contessa brewer. up next, student debt headwinds have piper sandler worried about american express we'll get to a downgrade of that name after the break the analyst hyped the call is withs xt une 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.

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we are about two hours into trading. let's go post to post with bob pisani for a look at what's moving we've seen improvement in the last hour with every sector going green, bob. >> this is all about the broadening rally what does that mean? if you're tired of hearing that word, you'll hear it a lot oil stocks going up, industrials go up and even bank stocks go up and tech stock might go up but not as much. that's the broadening. we're seeing it again today. we've been talking about oil over $78 earlier there's halliburton. all the oil stocks up, hess, valero, occidental, up 15%, 16% this month yet this sector is generally down for the year. halliburton is down.

that's why it has plenty of room to move forward potentially. i've been talking about freeport, one of my favorite names in the world here. this is copper and gold primarily. freeport struggled because copper prices have been flattish this year. big problem with growth over in china. but it's starting to break out a little bit here. we're up maybe 8%, 9% so far this year, even some other sectors like mosaic and the materials group, that's fertilizer, also starting to break out. industrials are doing better we mentioned small groups of industrials hitting new highs recently not caterpillar, but it's almost there. the old high for caterpillar was $264, now $261 it was a new high a while ago. it's had an incredible two-month run. it was $210 two months ago there's the broadening out i know i'm beating the regionals to death it is quite remarkable keycorp, all these regional banks up four, five days this is up 30% or so this month

alone. that's a major sector. we're talking 16%, 17% of the s&p 500 weighting here that's for financials in general, not just banks. they're all moving up dra drama dramatically that's filling a big valuation gap. the valuation is much lower than technology stocks, frank the bottom line is this broadening story really does have a little bit of legs. that's what's extending this summer rally frank, we should be weakening this time of year. usually this time of year is when we see stocks move down so far, just not happening back to you. >> bob pisani going post to toast. now we turn our attention to loan pressure. american express shares falling down 1.5% after piper sandler downgrades the stock to underweight. they expect the card issuer to struggle to meet expectations for 2024 as growth slows and millenials are unprepared to face the return of their student loan payments. the analyst behind that call joins us now piper sandler managing director, kevin barker thank you for being here

>> thanks for having me. >> is it really just all about student loan payments starting back up in the fall? how much pressure does that put on a card issuer like american express? >> american express is starting to see a slowdown in network volume we saw that particularly in the second quarter i think that reinforced our view that the student loan repayments were going to have a pretty hefty impact on american express in particular. just given their customer base and the trends that have been shown. so, you know, the average student borp rower is going to have $400 payment, a medium payment near $250. we expect that to be quite a bit of headwind when -- could have upwards of $5,000 in payments per year that will be in aggregate spending >> student loans are going to pressure the business a bit. you're also looking at the spending of large corporations

a lot of companies use american express as a corporate card. >> yeah, we've seen quite a bit of slowdown in large corporate spending as well it actually went negative on network volume for american express this past second quarter and we're also seeing slowing growth comps were tough from last year, so that would be one of the big impacts. however, if we're seeing this broader slowdown in spending, i think it's going to have an impact on the economy in general and amex in particular. >> you also say valuations is a part of this story amex trading at 14 times forward earnings, close to historical average pre-pandemic when i look at other businesses similar, not identical, mastercard and visa. visa trading at 26 times, mastercard at almost 32 times. isn't this a reasonable price for the business you're getting exposed to with american express? >> it seems reasonable but i think there's bigger risk to the earnings outlook and the growth profile for american express in

particular when you think about visa and mastercard, they are networks embedded across the entire population and already have structural -- when you look at american express, they are -- they're more cyclical and focused on a certain subsector of the customer base so, that customer base is going to have different cyclical trends, whether up or down so, therefore, they're going to have a little more sensitivity to that particular age cohort or that typical borrower. >> you sound negative, but wasn't the story on amex that their credit profile is so much better than some of the others because of its exposure to the high income consumer, that it's exposed to travel and they don't really see a slowdown in travel, and that restaurant spending is picking up and a lot better? weren't all these -- i guess they all were the reasons to own american express are you saying those things are changing i didn't get that from the commentary out of the executives

on friday. >> yeah, the travel's been great. a lot of what has happened since the pandemic has been great for american express their growth is outpaced most peers and the stock has outperformed because of it however, i think those comps are getting more and more difficult, particularly as we go into the back half of this year in 2024 in particular, we just did a student debt survey where he we found a lot of student borrowers are going to pull back, particularly from entertainment and restaurant spend and so although american express we do expect to have outperformance from a growth perspective where you can see that number, the incremental headwind i don't think the market really expects. therefore, our call is more about the expectations not necessarily amex's -- american express's performance. >> kevin barker of piper sandly downgrading american express shares down 1.5% thank you for being here.

>> thank you for having me. coming up, the ceo of braze, an a.i.-focused company. keeping our eye on shares of chevron, preannouncing results that did top estimates that was part of some changes in the c-suite as well, including a succession plan for the current cfo. and waving retirement age of current ceo mike werth, who stays on i remember being on aau trips, high school games. my mom would always say, "you need to fuel the body and you need salt." i would always be the kid not cramping, ready to go. fast forward 20 years and i go from eating salt out of my palm to drinking lmnt.

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welcome back to "squawk on the street." the a.i. boom has been spreading beyond the mega caps customer engagement platform braze up nearly 60% as they leverage a.i. tools to help brands from hbo to burger king grow their base. braze ceo joins us live at post 9 to talk about the runup. great to have you here. >> it's great to be here thanks for having me. >> it's important to mention those guidelines are voluntary the guidelines, do you think it's important to have these guidelines this early in the a.i. story if you were to follow these guidelines, you know you weren't part of the meeting, how would it impact your business? >> yeah, i think it's really helpful to have guidelines like this that set the tone for things most important. what we should be thinking about

both as a society as well as companies. when we look at them with braze, transparency, security, trust, these are things really important to us in all of the product development we do. i would say we're more than happy to be in line with them. >> you hit on something right now, trust you have a lot of customer data, personal data. it's first-party data, though. you would say there's a big distinction when it comes to that in a.i. >> the first-party world we live in means in general when we work with customers, where we're rendering messages to are inside of their products. when we're acting, when we're using a.i., it's on behalf of the customer which means it needs to respect brand voice, brand safety, ensuring the hallucinations are not going awry, what have you. that means we have a heavy emphasis on brand safety, safety transparency you're not alone in a private chatbot room

you're doing this in public. >> generative a.i., we mentioned hbo is a customer, burger king is a customer. how do you put a.i. into the customer engagement platform how does it work for businesses like that that are very different? we're talking about a streamer and is a hamburger shop. >> there's a few things. first of all, i think the use of a.i., generative a.i. in particular, as a muse or inspiration is great to guide creativity and create consent that resonates with customers. we focus on the downside of that lose nation but it can be a benefit in the creative process. i think that's one of the first major areas of cuts across them. if you're going to be running campaigns that are going to help engage with customers, guide them through the product journey, expose them to new things that they care about or that they didn't know they wanted or what have you, a lot of goals around marketing and engagement, you to want creative, you want to resonate with them.

to take a marketer who has only lived one life and let them engage with what are increasingly global and diverse -- much more diverse audiences than we had before, when you can engage with people in every current around the world, currencies, cultural diversity, people that live in different places or have different experiences. to have generative a.i. helped create better resonance with all those groups of people, even when you're one small teamworking out a marketing strategy to deploy that's a place where hallucination turns into a positive you need to still have the controls on top of it to make sure brand safety and brand voice continue to be respected and i think that's where a lot of the safety and transparency comes into play, even as we start to figure out what these things are capable of. >> it's how do you make sure that what we're seeing is not fake and a.i. generated, right >> i think that the idea of something being bad because it's fake, it's one we'll evolve on

as consumers and society having transparency that this is not -- this might be generated by a.i. or touched up and this has been an ongoing issue in the marketing and advertising world for a long time. when we talk about photoshopping something, that has been modified but technology. we need to make sure when we're selling someone a product or telling someone about something they're about to purchase that there's no thallucinations in that because that would be deceptive advertising. there are already legal frameworks that apply to these things we need to make sure those are being respected. more important, though, we can't have hallucinations running awry and communicate in a way that's not consistent with a brand's voice or with the promise that they're making to their customers. >> i feel like that lose nation has bad connotation. >> it certainly does i've never heard another ceo frame it - >> if i'm the ceo of popeye's or -- or burger king, why do i want my customer to have

hallucinations to be attracted to the brand >> no, no. you want your team to engage in a productive creative process. if you think about what your creative teams or marketing teams do when they work with -- when they work with madison avenue idea people, they're trying to come up with great creative inspiration and pull from a lot of different places one of the amazing benefits of large language models and big image sets is they incorporate inspiration from all of humanity what that allows you to do, your single team, whether they're located in bucharest or london or new york city, they're able to get exposure and inspiration from sources broadly around the world. so, obviously you need to make sure that that inspiration then fits in with how you want your brand to present itself to customers. but the idea that it could actually be there and be a muse and inspire people, i think, is an unexplored strength of how these things work. >> you are the first ceo ever say hallucinations might be a

positive you're a glass half full thinker, i have to say that. braze ceo, shares up almost 60% year to date thanks for being here. >> thanks for having me. after the break, twitter has a new name a look at x when "squawk on the street" returns. i remember being on aau trips, high school games. my mom would always say, "you need to fuel the body and you need salt." i would always be the kid not cramping, ready to go. fast forward 20 years and i go from eating salt out of my palm to drinking lmnt. the first time you made a sale online with godaddy was also the first time you heard of a town named dinosaur, colorado. we just got an order from dinosaur, colorado. start an easy to build, powerful website for free with a partner that always puts you first. start for free at godaddy.com new projects means new project managers.

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larger ambitions to provide messaging. >> this is something elon musk has envisioned since 1999 when he founded x.com and then it was a one-stop everything store for all the financial needs, and asian companies and users have beat him to the punch. the most popular is 10 cents we chat, and it moved into payments, games, shopping and even a place to book your doc doctor's appointments. it became an ecosystem in and of itself, and from there the possibilities, montaization and d data collection, and a walled garden is created where it could

cross to each users. you have south korea's kakao, and it leads to the question why we have not had any of these in america, and a big reason is that our internet and payment systems evolved differently. the u.s. legacy credit and debit card has slowed this, and also a largely free system, many asian internet companies were built after the mobile shift and they were mobile native and were built, and so it leads to the question, can elon musk be successful here? there's a reason why they work

in asia and they don't work here >> i was reading through the memo that the ceo of twitter -- ex, sent a letter to the employees, and here's just one thing i will read. she says the use sing at an all-time high. she says what and what audio, video, messaging, payments, banking, creating a global marketplace for goods, services and opportunities it's interesting to hear you spell out how that is being done in other countries here, the idea that twitter becomes a banking app is interesting and new. >> you hit on one of the most important aspects, banking and payments, that's how the asian apps grew. many companies have tried to do this, and even uber tried to

make a financial app and that's what propelled a lot of those in asia, and elon musk got us started with paypal, and i think it's a steep, steep ambition and challenge. >> it's a real rallying cry, this note. you are all invited to come and change the world and the transformation of the global town square. thank you. green across the board for stocks dow is looking to extend its winning streak to 11 straight days now we're back in a moment

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uk, u.s. and swiss regulators announcing $387 million in fines against credit suisse over the collapse of the capital, remember that hedge fund 268 million is coming from the fed, so a potential resolution there, and that long running collapse and who was partly responsible for it if we look at the overall market, we are up almost 200

points every sector has gone green, and it's being led by energy and financials bro broa broadening from the big tech market >> dow on its track for 11th straight day of gains. we have to leave it there. we will toss it over to courtney reagan in for scott wapner >> welcome to "halftime report." front and center this hour, the critical week ahead as the fed makes another key decision on rates. our investment community is standing by. joe terranova, jenning harrington and steve weiss let's get a check on the markets here at noon eastern we are seeing the markets higher by half a percent, and the same thing for the s&p 500. the yield on the 10-year sitting at