tv Worldwide Exchange CNBC July 25, 2023 5:00am-6:00am EDT
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it is 5:00 a.m. and here is your five at a5. the latest policy meeting and a rate hike expected tomorrow. a morgan standing mea culpa as mike wilson issues a rare apology on his bearish outlook for stocks and speaking of stocks, the short squeeze trade appears to be back and with a vengeance and bumping up against historic highs plus, six days until unionized u.p.s. workers can hit the picket lines then later in the show, elon
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musk explains his rationale for the twitter rebrand. it is tuesday, july 25th, 2023 and you're watching "worldwide exchange" right here on cnbc good morning, welcome to "worldwide exchange. i'm frank holland. let's kick it off with a check on futures, the dow riding its largest win streak since february of 2017 we're seeing right now that it looks like it could continue with all three indices in the green, nasdaq doing the best out of all of them this as the federal reserve kicks off its latest policy meeting today with interest rate traders all but certain the central bank will resume tomorrow with a 25 basis point boost. ahead of that we're checking the bond market, yields ticking up slightly to the up side and begin with the ten-year, 3.89 just comparely breaking out that
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range bound situation where it was between 3.75 and 3.85. treasuries across the board rising ten basis points as we approach the decision and energy market, as always oil, wti, 78, basically 60, just ticking down depending down fractionally, brent crude at 82.55 very slight movement for natural gas. okay, for a check of some of the top stories, silvana henao has those. mike wilson issuing a rare apology saying he stuck with his pessimistic call on u.s. stocks for far too long in a feet to clients wilson says, quote, we were wrong and that 2023 has been a story of higher valuations than we expected with a note wilson's team is now shifting its 2024 s&p 500 target to 4200 from a
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previous 3900. trading like it's january of 2021, the short squeeze appears back in vogue. according to new data, the number of stocks among the top 3,000 u.s. companies with at least 20% of their outstanding shares sold short is now hitting the upper end of the historical range, even exceeding what we saw during the meme craze. carvana, novavax, lucid group and beyond meat has 40% of their outstanding shares being sold short and elon musk taking to x, the social media platform formerly known as twitter to explain the rebrand. in a late night post he says the twitter name made sense when it was just 140-character messages going back and forth like birds tweeting adding we will add comprehensive communications and
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the ability to conduct your entire financial world the twitter name does not make sense in that context, frank >> i guess i don't even know. more importantly, have you join threads? >> i have not. >> silvana, you got to join. we'll talk later. turning back to the markets they face a major test with rate digs by the fed and the bank of japan plus earnings from 40% of the dow, there is the threat of a crippling strike at u.p.s. but stocks seem to be largely ignoring that possible risk. the latest aaii sentiment survey shows investors have not been this bullish in more than two years. optimism in the market rising to more than 51% in the past week, the highest level since april of 2021 and the spread between bulls and bears widening to nearly 30% could this be the sign of a market top let's discuss with armand penosi and the incoming co-ceo of oak
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tree capital management. thanks for joining us. >> good morning. >> we just saw morgan stanley's mike wilson coming out with a mea culpa. oak tree has more than $172 billion this assets, exposure to so many segments your outlook, has it changed >> we've been quite impressed with the ability of the fed to control inflation and bring it down towards a more manageable territory and economic growth has been quite stable and strong in the meantime as the fed has raised rate, however, i think the impact of these rate increases are going to be de delayed and typically take 12 to 18 months to see recessionary influences or impact from those rate changes and that's potentially in the future but for now with inflation under control and the economy fairly stable, there are reasons to be exuberant. >> so you mentioned recession,
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so what is your recession outlook if you don't mind me asking we had the chief economist of apollo, a company in your peer group saying he believed the odds were at 60%, much higher than the consensus where do you stand >> i think there will be a recession next year. the hard part to know is how deep would that recession be you know, what we do know is that we've had a period of very easy money, very low rates for quite some time and with such a sudden increase in rates and if those rates stay persistently high it's hard to imagine how a recession would be avoided if the economy stays as strong as it is, with positive gdp growth the fed has no reason to reduce rates so are in a position, a sea change where rates will stay higher for longer and the's set bubbles created over the last 10 to 15 years will deflate and what stands to reason a recession
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could follow as access to capital becomes tighter and tighter over the coming quarters. >> so i would imagine like a like of people in the global investment community you're waiting for jay powell's press conference after the decision, that quarter point hike is pretty much assumed it will happen when you're listen to his outlook what do you expect is there something in particular you are listening for? >> i would be listening to his tone about the trajectory of inflation coming under control i would also look for any sort of signs about concerns around stimulus that's already working itself through the economy if you look at recent biden stimulus packages in addition to just the covid-related stimulus there's $3 trillion of spending that's coming in to play in the economy and that is more inflationary, so the biden administration stimulating and the fed trying to pour cold water on the markets are counteracting one against the other and i would look for the fed to talk about how per
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persistently high it's been. >> huge earnings week and have a large percentage of the s&p and dow reporting and have seen the big banks and regional banks reporting. that's kind of following some of -- leading us into your core business, private credit, private lending, which is a huge global business. what are you seeing from the bank earnings? what kind of insight does it give you, something expected to expand with credit tightening overall? >> i think it's a great era for private credit the new vintage of private credit loans are the most attractive they've been from a risk adjusted perspective for many, many year, loan to values on new transactions being done are less than 50%. rates being charged for very large businesses borrowing are approaching 12% to 13% on a first lean basis i think the reason for that is that the investment banks have
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stepped back from the markets due to the loans that created such trouble for them in 2022 and early 2023 and the regional banks are saddled with some real estate loans and smaller corporate loans they expect will be troubled because those asset classes tend to be rate sensitive and we're seeing a pullback from the lending market and an opportunity for the private credit markets to step in especially in large cap sponsor lending where typically the large banks were very active during the syndication process. >> another area you're active in large cap tech and big earnings this week as well. microsoft, amazon, alphabet, what's your expectation? >> you know, the economy is showing pretty good strength and i would expect -- i would expect performance to be consistent with it. i don't think they're willing to see a blockbuster quarter any time soon but expect those bits are quite resilient and reflective of the overall economy being in roughly decent
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shape at the moment, so i would expect strong earnings from those tech players. >> all right, armen, thanks for your time. a lot more to come including the one word investors have to note today, but first six days until unionized u.p.s. workers hit the picket line. we speak with one shipping logistics company getting prepared for what could be the biggest strike in a century. showing investors how to think outside the box, our week lifelong look at some of the under the radar ideas with a check on watches, cars, art and much more. then later double trouble for big tech in europe as the regulatory gears start grinding again. a busy hour ahead when "worldwide exchange" returns
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welcome back to "worldwide exchange." let's get a check on the action in asia. good morning >> good morning. you can see most are leaning more positive. xetra dax around the flat line sentiment data back-to-back from yesterday. all has been in the asian markets and turn over there. you can see the shen zen and the
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hang seng up all of this on the back of hopes that china may introduce some more stimulus, targeted stimulus at the property sector and saw a big bounce in the property index in the hong kong market up more than 14% overnight so strong moves there but in terms of a couple of stocks in europe, bayer and demand has fallen for their weed killer, a little green on the dax but another company we're watching right at the top of the ftse 100, unilever hiked its forecast on the back of better than expected sales growth in the second quarter which came in at 7.9% and managed to raise prices by more than 8% in the quarter and sales volumes did fall less than expected so on the back of that we have seen an uptick in
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the stock up almost 5% and, frank, they have a new ceo and he will be unveiling the latest strategy for the company at the next set of results. >> joumana, thank you live in our london newsroom. developing story, u.p.s. head back to the negotiating table to try to finalize a labor deal if the parties fail to reach a tentative contract, u.p.s. workers have committed to walking off the job on august 1st risking widespread disruptions to delivers all around the country while some have had time to prepare, it's still a lose/lose situation for almost all the players involved the consumer, big retailers and small businesses, but there are some questions about how it will impact other logistics company greg zegris, president of pitney bowes providing technology,
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logistics and financial services more than 90% of the fortune 500 and joins me in a cnbc exclusive. good morning >> good morning. good to be here. >> as we mentioned, u.p.s. and the teamsters are going back to the table today. a lot of eyes on that, again, the deadline, july 31st. in the meantime, how are companies like you, how are you preparing for this possible disruption >> yeah, so, you know, certainly the parties are back to the table and i think the most important thing for your viewers, to know, no good will come from this strike if it does happen this industry has gone through a couple of years of significant disruptions. we're, you now, all fighting t get on the other side of that and the last thing the industry needs right now is a massive disruption that would be caused bier the largest private provider of services in the world going out on strike right now. so if you look at companies like pitney bowes, this is not new
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news, we have been talking to our clients for months about the potential impact of a strike we share clients in common that rely on pitney bowes for delivery services and spoke about the options for creating capacity if there were a strike to be able to handle their deliveries but i would say, frank, as we sit here today i do think there is a bit of a kind of wait and see from a lot of retailers, kind of watching how this is going to play out and almost, you know -- >> gregg, i want to get into it. >> they're taking a wait and see -- >> your customers include ebay and victoria's secret to give the audience a sense of who you work for you mentioned you share customers with u.p.s. and i would imagine with fedex as well, so in general large retailers, large companies use a variety of shipping services what are your customers saying >> the customers that we have
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already worked out arrangements with, we have created the capacity to deal with a strike on their behalf. for other companies who have not planned ahead, who have not gone through the process of, you know, creating room in other companies' networks like ours, they're kind of again in this wait and see mode where, you know, i think the risk is going to be if there is a strike whether a day or two or a couple of weeks like it was back in 1997, it's going to create disruptions for them and going to create disruptions for their consumer, i think the ones that got ahead of in that planned ahead of this will be in a good position to deal with a potential strike but even as we sit here today, u.p.s.' ability to deal with volume coming into their network today is going to be challenged. we're talking about four or five days before the union said they'll strike there's a lot. they handle 20 million deliveries every single day in the u.s. it's a significant amount of volume. >> you know, it's even more than 20 million but 22 million.
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we keep talking about disruption what does it mean for the consumer and businesses? it doesn't get spoken about but a large portion of u.p.s.' business is business-to-business delivery, restocking shelves and things like this. >> i think that's an important one, as well we participate more in the commerce space but at the end of the day that business-to-business, if you think of what u.p.s. handles in our market, forbes said it's 6% of gdp everything from pharmaceuticals and health care to big item ticket goods and a lot can inventory. we have seen massive disruptions to supply and inventory over the last few years and when you're talking about the largest private provider in the space, those businesses will get disrupted. there's a time when they're recovering from the impacts of covid, the china shutdowns as well which are pretty fresh in everyone's mind. >> one last question, a quick answer, we have to get going, the post office said they had
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the capacity to handle any surge. analytics company say they could handle 30 million more packages a day. do you believe the post office could handle all this volume or would there still be a disruption >> there is a capacity versus capability is a short way to answer it. you need two things to happen. you can have the capacity to handle this but you need retailers to have integration with you and tender that freight to you and have a billing relationship a lot of companies went multicarrier that will be the key question as to whether there will be enough ability for the post office to handle some of this freight if it comes available. >> i think manpower might be an issue as well. gregg, thank you, appreciate your time and insight. >> thank you. ahead on "worldwide exchange," prepping for powell my next guest says a flood of new workermas de his job a lot less painful we are back after this
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pandemic overall auction sales falling to 5.9 billion from over 7 billion a year ago christie's had a 23% drop. sotheby's about 8%, phillips down 32% overall sales activity is actually up with 53,000 auction items sold in the first half over 452 auctions but average auction prices fell 28%. collectibles cool down showing up in classic cars the hag geraghty market rating looks at classic car auction results and collector confidence, that just had its biggest drop in three years. the average sale price per classic car down 6% from last year although there is still very strong demand for cars from the '80s and '90s. collectible watches slowing down a bit. prices for trophy models like the rolex daytona and the patek
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phillipe nautilus down over 25% and inventory is rising and a recent report said it was only a question of time before the geopolitical and economic uncertainty was going to filter down to the global auction market now, the one bright spot for auction houses is luxury so overall sales of handbags, sneakers, watches, wine, all that good stuff was actually up 21% in the first half, so, frank, collectibles that appeal to a younger buyer at a lower price point, by that i mean tens of thousands rather than millions, they are the strongest. >> good stuff there, robert. we'll keep this going and bring in josh pooland at sotheby's josh, thanks for joining, robert, frank and i. great to have you here as well >> thanks, frank >> when we look at these luxury collectibles, watches, art, et
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cetera, what should people keep in mind? >> i think the market context matters and, you know, i do think that ultimately we see it is a global market it is resilient and ultimately people are chasing the best of the best and we've seen that play out in the first six months of this year with a couple of examples our new york jewelry sales, for example, were led by two exceptional stones, the ruby which sold for $35 million and the exceptional pink diamond which sold for $35 million also. that was our highest ever total luxury week in new york. so what we're seeing isthat at the very top end of the market collectors are choosing rarity, quality, provenance, the story of the item and then ultimately how fresh a market is it and if
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all those ingredients come together we are seeing robust demand from a global audience at the top end. >> and, josh, i'm curious about this younger generation of new collectors that have just come into this market during covid. we saw a similar phenomena with retail investors in the stock market how are buyers different from the sort of baby boomer more traditional customer of sotheby's? >> i think there's a couple of things driving it. first of all, the digital portion of our business and the way that clients engage has fundamentally shifted, and so obviously social media, but also then enabling transactions whether it's through online auctions has really broken down some barriers for a younger generation to engage with and get into the auction in the secondary market so we're seeing that there's been an influx of demand from a much broader and younger audience and we're also
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seeing some of the motivations have been changing, and so there's a much higher appetite for younger clients to come in and really invest in high quality pieces and those are, you know, status symbols to a certain extent, of course, but also there's inherent value and an emotional connection to those luxury objects so we're really seeing our under 40 audience is growing exponentially and as well as new clients which are about 50% of our business in the luxury division. >> you mentioned the secondary market it sounds like the resale market and looking at data, the resale market increasing from $15 billion last year to $47 billion by 2025 and what is the catalyst for thiat >> staengability and an interest in quality and brands and pursuing storied items whether it's, you know, paul newman's
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daytona or an exceptional diamond as you show here, there is an appreciation and increasing knowledge base from collectors around the world and that's really resonating with young and existing audiences >> josh, last question, when you look geographically around the world, a lot of discussion about china right now and questions over what the spending of the wealthy will be. what do you see china and asia are you seeing them as strong buyers particularly in this luxury sector and how important are they and will they be for the future >> absolutely. asia remains an unbelievably important market for us. yeah, we are investing not only in the new categories that we're selling in asia, but also our physical footprints so we have been -- our shanghai office earlier this year and next year we are assessed to open our new headquarters in hong kong because we deeply believe in the long-term growth potential and the continued engagement from
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asian clients as well as the global audience. >> all right, josh pulp an and robert frank, thank you to both of you and our summer series that continues tomorrow as we take a look at investing in real estate. >> thanks again. still ahead on "worldwide exchange," stocks in china catching up in a big way what has investors optimistic on the markets there. but first your top trending stories of the morning and begin with one of the world's best footballers, he could be on the move for one of the richest sports contracts ever. a saudi club is offering killian mbappe a one-year deal for $332 million to leave paris ss st.-germain and that could include commercial deals and mbappe is not interested and is expected to take his talents to real ma did. c. hosting game plan, bringing in
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influential leaders to talk about the intersection of both sports and business. to sign up scan the qr code on your screen or visit cnbc events.com/game plan 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. all these walls gotta go! ah ah ah! i'd love a second opinion. take the first step to see if your small business qualifies.
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gains. the fed kicking off its latest policy meeting, a hike largely expected but could it end the cycle? earnings in focus. big tech take center stage with microsoft and alphabet due out after the bell we tee up what you need to watch in the numbers it's tuesday, july 25th and you're watching "worldwide exchange" on cnbc. welcome back to "worldwide exchange." i'm frank holland. thank you for starting your day with us. let's pick it up with futures and the dow riding its longest win streak up 11 sessions in a row and futures, a bit of a change, so the nasdaq, the best performer, solidly in the green, s&p fractionally higher and have seen the dow deep slightly into negative territory let's now pick up the half hour, excuse me, go over to our top
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stories and our headlines including this morning, the federal reserve kicking off its latest policy decision meeting today and while it's expected to resume its rate hiking campaign while taking a pause, cme fed watch tool, the fed's future plans, they're just not as clear. wednesday, jay powell's statement and outlook for the months ahead joining me is "the new york times" federal reserve and economicing reporter jeanna smialek. good morning thanks for being here. let's start off, everybody is assuming that hike will happen and i believe you believe it's going to happen but what you expecting from powell's press conference a hawkish tone or something different? >> you know, i think jay powell is going to keep his options open we have a long time before the next fed meeting the fed doesn't make another decision until september 20th so have two jobs reports and two cpi reports, so from their
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perspective they have every reason to really sort of play this as sort of loose as they can, try to make sure they sort of don't commit too hard to any individual path. >> so they want to stay loose. that sounds different from what we've heard from the fed so far and they want to keep it loose and heard in austan goolsbee and other fed speakers that we should expect two hikes including this one expected tomorrow do you believe that we are going to see that second hike? >> you know, i think it's an open question at this stage and anyone who says too confidently one way or the other sort of needs to be more data dependent. i think it's going to thing on what happens in the next couple of inflation reports if as economists are predicting we keep seeing a steady downdrift in inflation, if things continue to just cool off and cool off, i think that there's probably a solid case this could be the last hike. you're hearing goldman sachs call for that. if on the other hand inflation isn't sort of cooling down along that steady path, i think that,
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you know, they've clearly signaled they're willing to do more. >> how do earnings play into this does the fed watch the earnings, specifically the bank earnings we were so concerned about the disruption in banking, tightening of credit, it doesn't appear that narrative is playing out as many expected back in march after svb. >> yeah, that does play a role and what the fed anticipated after the svb blowup is they would do some of their work for them and the fed wouldn't have to do as much work to slow down the economy and banks are still lending, things are tighter but they're only as basically as much tighter as they were going into svb really what we're seeing there is the impact of the fed's rate increases last year and so i do think that probably argues that the fed might need to do more to slow down the economy. on the other side of that, we are seeing the slowdown in hiring we were expecting it's not quite as quick as we were expecting but it's slowly happening and finally seeing that downdrift in inflation that
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has been, you know, long awaited but not realized up until this point so i think those two things combined to make their job easier, hopefully, but i think we'll have to balance those things against each other. >> 3% is not 2%, their target but the labor market is beginning to soften and seeing the consumer appearing to be stretched to its limit are those things the fed will consider when making this decision and maybe another one this year? >> i think importantly, you know, as you said, 3% is not 2%, 3% is where headline cpi is. the magic number is 4.8% which is where core cpi that strips out food and fuel that are volatile looking at that sort of more steady state inflation effort and it's quite a bit higher that's important clearly the fact that consumer spending is pulling back a little bit is relevant to them but it's pulling back a little bit. you know, we're still seeing a pretty robust consumer look at the taylor swift concert. people are still willing to
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spend some money. >> look at an airport right now. jeanna smialek, thanks for being here with us in new york back in d.c. tomorrow for the decision and we'll be reading your articles. thanks for your time. >> thank you. time for a check of this morning's top corporate stories and silvana hen aohenao. apple is facing a $1 billion class action lawsuit out of the uk more than 1500 app developers are suing over the app store fees the suit claims apple's charges to app developers are excessive and are only possible because of its monopoly on the distribution of apps onto iphones and ipads adobe's bid for cloud-based figma will get a full antitrust investigation according to reports which say findings on the matter could come towards the end of this year, the report
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adds the adobe says it continues to have, quote, productive conversations with regulatory bodies worldwide binance revealing plans accusing the crypto exchange of violating certain federal regulations dismissed. in a new court filing they said they plan to submit its response to the agency's complaint on thursday binance is facing a lawsuit and doj investigation, frank >> yeah, really interesting. we've seen an end to the crypto world but moving higher and bitcoin close to 30,000. >> yeah. >> thank you turning our attention to earnings two tech titans get set to report, microsoft and alphabet top of mind for investors, artificial intelligence with both companies making aggressive pushes into generative a.i. and cloud computing services and the outlook for growth even in the
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event of an economic downturn and let's talk about it with the senior equity analyst at hargreaves, thanks for being here. >> great to be back. >> obviously there's pretty big expectations when we talk about microsoft and alphabet not just when it comes to the numbers but announcements about a.i. and customer adoption what are you expecting >> yeah, sure, this is absolutely the big one, isn't it quarter earnings are always quite punchy but for the longest time there's particularly a great deal of excitement happening here in terms of specifically what i'm looking for, alphabet is in a slightly different position and its products aren't necessarily as natural and imme immediately beneficial to some as some of microsoft's apps are but i'm particularly going to be looking at google cloud, right so that's quite a bit smaller than some of its bigger rivals
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but did manage to see significant profits last quarter, you know, $191 million compared to really, really heavy, hundreds of millions worth of losses just the previous period, so really that for me will be the most exciting number i'll look at and do expect there to have been further supercharged growth there but it's going to be the outlook commentary for both, and talking about a weakening of consumer sentiment and that matters for cloud companies so that is the other side of things that i'm really going to be keeping a close eye on. >> you believe the path for alphabet to capitalize on a.i. is a bit tricky but when it comes to microsoft we saw the stock pop and they'll charge $30 a month for generative a.i. services is that a meaningful development? >> yes, i think it is. you know, you think about this in the current environment where companies are worried about asking for more money from vast
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companies or consumers and the fact they feel confident to say actually we think we can charge $30 a month for this tells you if the scope of demand they have mapped and so i think that's incredibly significant and does to me speak to this idea there is kind of this wave of revenue accretion that is going to be coming through, now, of course, that all sounds brilliant but we need a bit of hard evidence of obviously how this lands but the fact they felt confident to do this tells me that they are in a good spot. >> are you also expecting to hear just how much the wave of a.i. enthusiasm is translateing into real revenue and real business, because we don't talk about it a lot but when it comes to cloud computing less than half of workloads are on the cloud and a lot are on premise, but you need to be on the cloud to capitalize on a.i are you expecting to hear broader commentary about demand and expecting to see the downward trend when it comes to
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a.i. growth reversed as soon as this quarter. >> sure, in terms of -- i'm not sure whether i expect it but hoping for it. you've really hit the nail on the head quite a lot of the commentary around the adoption of these services, we are lacking quite a lot of granularity if there is commentary i'll be lapping it up but i expect there to be a bit more talk than maybe we've seen last quarter. and, again, for me some of the buzzwords i'll look out for, those themes, it's going to be how willing are companies to be spending on this tech? right? on one hand moving over to the cloud can make your company more efficient and help your margins but it's expensive, right, to do in the first place so trying to understand exactly where the lay of the land is in terms of corporate spending and resilience at the moment as well are important themes. >> corporate sentiment a key part of the story, if companies don't spend on a.i. it won't help them raise revenues
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sophie, thanks for being here. coming up on "worldwide exchange," potential fresh pressures for chinese companies looking to go public and details on the crackdowns by beijing but first as we head to break some of your big bone movers. whirlpool, shares sinking slightly on a mixed earnings report where it beat expectations but missed out on sales due to promotional activity the company, though, reaffirming its full year guidance and shares are down more than 1% shares of nxp semiconductors higher the chipmaker ceo says he's confident nxp is successfully navigating through the cyclical downturn, shares up almost 2%. and f5 looking to extend its rally and they topped expectations for the quarter, shares of f5 up almost 10% in the premarket. much more "worldwide exchange" back after this. the morgan stanley client experience? listening more than talking, and a personalized plan
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welcome back piper sandler upgraded its rating on walmart to overweight. they believe as grocery inflation subsides the retailer has an opportunity to extend its market share gains we're looking at a different story with disney. it was moved to underweight and 76 bucks per share and factors include the fading popularity of the marvel franchise, "star
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wars" and pixar franchises initiating take two and grand theft auto 6 could represent upside potential it's time now for your "global briefing." we begin with chinese equities rallying in the market's first chance to react to the top decision-making body vowing to boost employment and expand domestic brand and revive a tortuous economy beijing asking law firms to tone down the language used to describe china-related business risks in offshore listing documents of chinese companies and warning the failure to do so could cost them the regulatory green light for ipos. indonesia that is trying to attract investment from manufacturers of evs and is now in talks with major companies like tesla and byd speaking at an industry
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conference, a minister said the inken tiffs will be benchmarked against those offered by thailand and vietnam. ahead on "worldwide exchange," the one word that every investor needs to know today and victoria green lays out a busy trading day ahead and why the markets may hit a wall t weeks ahead stay with us 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. (man) what if my type 2 diabetes takes over? (woman) what if all i do isn't enough? what will you create?
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(woman) i can do diabetes differently with mounjaro. (avo) ask your doctor about once-weekly mounjaro. all right, welcome back to "worldwide exchange. your wex wrap-up the short squeeze appearing to be back in vogue the number of stocks among the top 3,000 companies with 20% of outstanding shares sold short is now hitting the upper end of historical range exceeding what we saw during the meme craze. elon musk taking to x. formerly known as twitter to explain the rational saying the twitter name worked when it was 14-character messages but no it
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no longer makes sense. german listed shares of bayer after they cut its outlook and announced a writedown for some of its weed killer portfolio. shares of unilever higher after topping analysts arizona forecasts for its most recent quarter and raising full year forecast predicting revenue growth of more than 5%. the fdic is warning u.s. banks not to take liberties with deposit numbers following the reckoning. according to "the wall street journal," 47 states restated their figures by a total of $198 billion. wheat prices coming off recent highs earlier this week prices climbed to their highest level mid-february this morning, they're down 1.5%. earnings are said to be a key driver as markets continue to grind out gains sending the dow on its longest daily win
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streak in six years and forcing mike wilson to throw in the towel. a new note, the chief u.s. equity strategist saying he stood by that negative view for just too long simply saying, quote, we were wrong his forecast for the s&p 500 remains at 3900, still well below what the current index stands at 4560 joining me now is victoria greene at g squared private wealth, also a cnbc contributor. victoria, good morning >> good morning. >> so what do you think? mike wilson backing off some of his bearish sentiment. targets where they are at, do you believe we'll see some decline in the markets coming up >> yeah, i mean, look, short term is technically strong and you have a lot of technical supporting this kind of bull market thesis so i don't think we will fully retest the lows but see it hitting a wall because you're still in a restrictive policy and the fundamental view i have is the world getting better or is the
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world getting worse over the next 6 to 12 months? that's what investors need to ask themselves and you continue to see deterioration and things like consumer spend something stuck, manufacturing pmis are falling. when you're stuck in this down cycle, if you look at european manufacturing has attracted the most since covid, i don't see the catalyst to push this market higher and with the breadth being narrow that led us up guaranteed obviously breadth has widened recently but i think you just need to look elsewhere than the megacap tech, your values, small caps and be defensive? >> with that in mind, what is your wex word of the day. >> it's pliability you need to be flexible. is this bend or break? if earnings miss look at a whirlpool, sales missed a little bit but had an upbeat guidance and having mixed results so you need that pliability and flexibility in your portfolio and can this market bend but not break if the megacaps disappoint
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and we saw that with tesla and netflix, not great results but not necessarily a giant killer and tesla rallied so how pliable will microsoft and google be after hours if there's anything in there that investors don't like >> that pliability in mind what is a move you would make today >> i look a lot at value and getting great stats on industrials. i think you need to not forget there are other things than technology to invest in and look for things cheaper so we're interested to see what rtx, i think they rebranded from raytheon to rtx so what they have to see, 3m, gm and look around the market for things more reasonably priced, very strong balance sheets and something that can withstand a slowdown in consumer spending and i think you might be looking to take profit, not to say there's nothing wrong with a microsoft or google, there may be generational holes but looking to hold the stock or looking to trade the stock and so i think you need to be prepared for a little bit of
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volatility and look for higher quality names right now and a little defense. >> vicky, thanks for being here. we have to leave the conversation there that does it for us on "worwi ehae.lddexcng we got "squawk box" coming up next thanks for watching. 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.
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good morning, the federal reserve kicking off a two-day meeting and we'll get that -- find out what happens tomorrow we'll dig in to the potential for a rate hike. it's pretty well guaranteed or assured and what that will mean for your money lots of lots of lots of earnings on deck and we'll hear from verizon, 3m and dow as well as general electric and general motors all before the opening bell. plus, continuing to be the summer of strikes, we'll talk about the labor unrest as a
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potential walkout by u.p.s. drivers looms large for the economy. it's tuesday, july 25th, and "squawk box" starts right now. good morning welcome to "squawk box" here on cnbc we are live from the nasdaq marketsite in times square i'm becky quick along with joe kernen, andrew is on assignment this morning all right, let's take a look at what's happening with the u.s. equities future. it looks like the dow is indicated off by five points but yesterday the dow was up by about half a percentage point, a gain of more than 180 points that was the 11th day in a row that we have seen the dow higher and that's the longest winning streak we've seen since all the
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