it is 5:00 a.m. at cnbc global headquarters. here is your top "five@5 ." consumer prices cdominate the market this week. right now, futures are higher. wall tstreet getting set fo the cpi report this week and what it means for jay powell and the fed's next interest rate call. happening this morning. president biden getting set to depart vietnam after the southeast asian trip after

outlining plans to diversify away from china. a monday merger on tap and possible $4 billion vanilla cream filled deal. and instacart ready to kickoff the ipo, but appearing to be far from the hey day of 2020. it is monday, september 11th, 2023. you are watching "worldwide exchange" here on cnbc. good morning. well welcome to the show. i'm dominic chu in for frank holland. let's kickoff the show with green on the screen with the nasdaq and s&p coming off 1% losses last week, but for the time being, the dow is higher by 75 points. s&p is higher by 18 and the nasdaq higher by 21 points. for the transportation stocks,

they are coming off a nearly 4% loss last week. that index worst since early march. checking on the bond market. yields are on the move. you see just a little bit of higher motion. lower prices and higher yields for the 10-year treasury at 4.2 t 8%. 2-year treasury is 4.98%. the 30-year treasury is 4.36%. in energy, oil is in focus with cpi coming out this week. energy prices are off for wti crude at $86.92. that is off .20%. ice brent crude futures above the $90 mark. down .30%. all of this as investors brace for a busy week with the number

of key events in focus. including earnings from adobe and oracle. a product launch from apple tomorrow and then a possible refreshed iphone lineup. also august consumer prices on wednesday. friday could see the start of the united auto workers union strike. one that could cost the u.s. economy $5.6 billion in the first ten days alone. let's check on the other top corporate stories with silvana henao. silvana. dom, good morning. a merger monday possibly on tap. hostess brands is closing in on is selling to jm smucker for $4 billion to $5 billion. that would be the end of the turn around story for twinkees and zingers and more after two

bankruptcies. one in 2004 and 2012 and then for a stretch where it took twinkies off the market. it is up in the early morning hours. and alibaba's outgoing ceo daniel zhang will step down on the cloud business as well. the news came after his role as chairman step down to concentrate on the intel unit. alibaba says the ceo eddie wu will take over the duties ahead of the public offering for the business. instacart is getting set to kickoff the ipo road show today. the company is aiming for a market value of $8.6 billion and

$9.3 billion. a far cry from the nearly $40 billion valuation in 2021. instacart is expected to start trade on the nasdaq under the t ticke er c-a-r-t, dom. thank you, silvana. we are looking at the cpi report due out on wednesday and it is expected to show easing price pressures, but it will still show the federal reserve 2% target rate is below those levels and comes one week before the next policy meeting on t interest rates. the expectation is to skip the next rate hike. it is 93% chance the fed keeps rates unchanged. for more, let's bring in vance

howard. vance, the consensus right now is the fed is in wait-and-see mode. are the pressures on the horizon lingering to stay hyper vigilant on flinflation? >> they had some staff members of the fed saying the interest rates are where they should be. i know with the staff members saying that, they will listen to the staff members. i think the fed will not raise. the cpi print will be good and the market is in an up trend. i think people should stay long. >> vance, we can say these things, but we still have gasoline prices higher over the course of the last several

months. we know that those consumer prices are very much effected by gas price and consumer wallets. is the american consumer going to be in trouble heading into the fall and holiday shopping season? >> i don't think so. the think gas prices are going up. we are watching it like you are, dom. the fed looks at housing and housing costs. that is an area that is more important than fuel prices. as far as a trader, look at xle and make money off it if energy is going up. i don't think it will impact the consumer. there is too much cash on the sideline. too many people are employed. the economy is fine. the market is in an uptrend. all of the data points do nothing more than scare investors out of the great environment to put money to work. >> speaking of putting money to work, vance, if you are that

bullish, where are the opportunities? some people say the market is overvalued, especially in key parts with regards to technology, media and telecom. >> dom, take out the top seven and the s&p is very easonable. 15.4. look at amd. that pulled back to a nice buy. nvidia is a nice buy. any time nvidia pulls back, that is a nice pbuy. if you look at the qs, dom, 380 on q is one pivot point. it should run up to 387. i think you will run into a new high by year end on the qs and s&p 500. >> vance, is there anything out there that scares you a bit and

make you rethink how bullish you are about the market? >> there are always things that bother you or things we can't see or know. a pandemic or a war breaks out somewhere. you have to deal with it. that is something we can't know. what we know, dom, the trends up. the market is moving higher. participate. >> vance howard. thank you very much. we will see you soon. >> thank you, dom. more to come on "worldwide exchange," and the one word investors have to know today. first, president biden set to depart vietnam after the landmark southeast asia trip. how investors can play that d.c. shift. plus, big cloud is on deck getting set for oracle results after the close today. later on, a first on cnbc interview with the china head of

trip.com. balancing an uneven chinese recovery with the travel boom. we have a very busy hour still ahead when "worldwide exchange" returns after this commercial break. >> announcer: this cnbc program is sponsored by ibm. ibm. let's create. for busine introducing watsonx a platform designed to multiply output by tailoring ai to your needs. when you watsonx your business, you can build ai to help coders code faster, customer service respond quicker, and hr handle repetitive tasks in less time. let's create ai that transforms business with watsonx. ibm. let's create. power e*trade's easy-to-use tools, like dynamic charting and risk-reward analysis help make trading feel effortless. and its customizable scans with social sentiment help you find and unlock opportunities in the market. e*trade from morgan stanley. with powerful, easy-to-use tools,

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welcome back to "worldwide exchange." what are you seeing is the bid in the futures market indicating an open for the dow jones industrial average higher at the

opening bell. s&p implied higher by 28. that's the u.s. side of things. let's see what europe is doing with julianna tatelbaum who is standing by in the london newsroom with the early action from the european continent. julianna. good morning. here in europe, we started out on the front foot. we have green across the board. we have come off the highs of the morning. just a few minutes ago, we got fresh estimates from the european commission. they put forward forecast for growth for the block and the take away this morning is the commission cut the growth outlook for germany. german gdp forecast to shrink 0.4% this year. the expectation from the spring forecast was for 0.2% growth. massive revision. they cut the 2024 forecast for germany. gdp expected to rebound next year, but only by 1.1%. previously, we were looking at

1.4% growth figure for next year. that is factored into trade this morning and investors bracing for the ecb meeting on thursday where the market is pricing in a 38% chance of a rate hike. the decision certainly hangs in the balance at this stage. as for asian markets, under performance in hong kong. hang seng dropped 0.6%. shares of alibaba dropping. the company an announcing the outgoing ceo is stepping down. big news for that company. shanghai is up 0.8%. back to you. >> julianna tatelbaum, thank you very much for that. president biden is wrapping up a visit to vietnam today after the g20 summit in india this weekend. on saturday, the president and other world leaders announced a new shipping and rail corridor to connect india through the middle east. the u.s. and vietnam agreeing to

boost cooperation after the talks with the chairman of the communist party. washington and hanoi are expected to work closely to improve supply chains for semiconductors and rare earth minerals. president biden says these efforts are not about containing china. >> we have an opportunity to strengthen alliances around the world to maintain stability. that's what this trip is all about. having india cooperate much more with the united states and closer to the united states and st vietnam be closer to the united states. it is about having a stable base in the indopacific. >> let's get more with erin murphy with the economics program and senior fellow for

the international studies institute. erin, this is the situation where the u.s. and many countries are trying to find ways to at least balance things with regard to the reliance on china. how much should china take this as an affront to them? >> thank you for having me this morning, dom. that's a great question. i think no matter what the u.s. or its partners or neighbors do, china will view it as an affront. i think what we're seeing countries do more less in the military space is economic spacecraft is part in parcel. over the last few years, countries have tried to diversify the psupply chains an portfolios with covid or

shutting down or they have unreliable partners and china presents a risk. >> this is the situation where the economic side of things is used more effectively than the military deterrence over the last several decades. it is also a situation where china showed everybody around the world what they will do in an economic situation where they think covid or other pandemic is a problem. that's why supply chains are moving. what can china do to ease some of those fears? >> for themselves, it is a way of doing business differently. you heard president biden saying they don't want to contain china, but have china use the rules of the road. trying to be transparent and adhere to w.t.o. and

infrastructure and investment. i think one key that the u.s. and g7 countries and others is point to the way china does business, especially overseas. it brings its own labor. it has o paque contracts. you look at the sri lanka example and if sri lanka could not repay that loan, china could take over the port which is a critical infrastructure. the way china could do business would help ease that locally and abroad. >> before we let you go o, with china's saituation, do you feel there is a path forward for them? what would they need to do to make sure the world views them as more of a trading partner or business partner rather than one looking to take everything out there and make it all about themselves? >> i think there is a significant trust deficit.

it will take a while for china to dig out of the hole and generate the trust a lot of the relationships, the infrastructure contracts with the belt and road initiative, and now the global development initiative has been an act of convenience. countries needed infrastructure and china is willing to provide it. i think there are a couple of things that could happen. you see the u.s. and g7 countries stepping up to fill up the gaps with the struck ture. if you see china going forward with the global initiative, it has to work with countries adhere to feasibility standards and governance. the only way they can help address it is by doing the work. >> erin murphy, thank you for the insight. coming up on "worldwide exchange," when it comes to artificial intelligence, it is

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remember the territory attacks of 9/11 which happened 22 years ago today and the more than 2,900 people who died on that day. the new york stock exchange and nasdaq will hold a moment of silence to remember the losses. we will never forget. let's check on the top headlines with frances rivera from new york. >> dom, good morning. the death the toll from the earthquake in morocco keeps ra rising. more than 2,100 are dead and that number is expected to increase. the u.n. says 300,000 people are affected by the disaster. just yesterday, the 3.9 aftershock rattled communities. it is not ker clear if it cause more casualties. to the world of sports, novak djokovic played lights out to take the straight sets win over daniil medvedev. djokovic wins his fourth u.s.

open just a year after withdrawing from the tournament over his vaccination sdatatus. we had a big blowout on sunday night football. cowboys forced three turnovers on daniel jones. dallas dismantled new york. 40-0. dom, for a monday morning, giants fans hurting with the score line, back to you. >> i have a number of folks i talked to the last few days and cincinnati, new york and other places and pittsburgh, for my niners, week one doesn't tell you what will happen for the season. frances rivera, thank you very much. turning to china. despite an uneven consumer recovery, travel demand after years of lockdowns is stronger than ever.

eunice yoon is joining us with the story. eunice. >> reporter: dom, it is a bright spot when it comes to consumption and trip.com group is hoping to really capitalize on the next stage for the industry which they believe is outbound travel. today, the company had an event in shanghai where they were reaching out to the international partners. in terms of u.s. and china travel, they said flights d doubled 12% from pre-pandemic levels. they are feeling optimistic that things will get better. especially after the u.s. commerce secretary visited china. >> travel to the united states is quite well demanded. in the past, we had 6% compared to 2019 levels. after the visit, more flight capacity will be added on both sides. we are very excited to see that.

>> reporter: trip.com group's ceo told me she is upbeat about the area focus of the u.s. and china which was chinese group tours. they were revived, if you remember, recently. people have been booking their tours to the united states. putting down $4,000 to $10,000 u.s. dollars for the trip. this is for the october holiday which is a major holiday here in whine. t -- china. the ceo said she is happy spending is returning to pre-pandemic levels. >> chinese consumers are the large spenders compared to the rest of the world. the most expensive tour trip.com told before pandemic cost $200,000 usd per person per trip. 80 days around the world.

guess how long it took us to sell the packages? 17 sekconds. that tells you the customers we serve have strong buying power. if you look at the per person, per trip, the chinese consumers spend the most, $2,000 per person per trip u.s. dollar. >> reporter: outbound travel, dom, the next 6 to 12 months is critical. she wasn't as optimistic about inbound travel. she hoped among non-chinese would recover as soon as possible. >> eunice, the american economy is more dependent, leveraged, if you will, on the consumer spending picture than the chinese economy. is there a sense you got with the outlook and picture with the real estate problems and government intervention in the markets there with regard to

whether or not that will dampen sentiment for the consumer spending in the months and quarters? >> reporter: she didn't really mention the broader macro issues that you were talking about when it comes to travel because travel, as i was telling you, is one of the bright spots in the consumption picture. a lot of that is because when you compare to a year ago when most of us were locked up in our homes or just under some travel restriction, comparatively, people want to get out and see more. that was the point of outbound travel. after the pandemic, people are ready for the trip of their lives. that includes overseas from what she sees. inbound travel, you know, as you know, very different picture. >> eunice yoon with the latest on the travel picture. thank you very much. as we head to break, a programming note. join cnbc financial vadvisors

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it's 5:31 a.m. eastern time. there is still a lot here on "worldwide exchange" companing . investors looking to shake off the losses and get gains back on track with the busy week ahead. potentially, the hottest ipo of the year looking more popular than initially expected. we'll explain that story. and rise of the auditing machines. irs is leaning on a.i. tools to crackdown on tax cheats. it is monday, september 11th. you are watching "worldwide exchange" here on cnbc. welcome back to the show. i'm dominic chu in for frank holland this morning. let's check the u.s. equity futures. dow implied higher 105 points. nasdaq higher 101.

the s&p higher by 21. now the nasdaq and s&p coming off 1% losses from last week. in the bond market, yields are showing interesting stability. not much movement in the 2-year treasury at 4.99%. 10-year treasury is 4.286%. let's check on the top corporate stories with silvana henao. silvana. >> dom, good morning. meta is looking to ramp up the artificial intelligence efforts as the race around that technology intensifies. according to the wall street journal, the company is working on a new a.i. system intended to be as powerful as the most advanced model offered by open a.i. the journal says the planned system would help other companies build services to build text and analysis and other offerers.

the clock is ticking for the uaw and automakers before the deadline on friday. if a brief ten-day work stoppage were to happen, it could reduce u.s. gdp by $5.6 billion and push michigan into recession. the group adds auto prices could also climb higher after coming down from record levels recently. a.r.m. considering raising the price of the anticipated ipo. according to reports, the strong demand means a.r.m. is likely to price the ipo at the top or above the $47 to $51 range. shares of softbank jumping in the early trade.

dom. thank you. shares of oracle are moving higher adding to the 50% year to date run so far. the company is expected to report after the closing bell today for the second quarter. the key driver for the gains is artificial intelligence and growing expectations that oracle's infrastructure cloud business oci will get a boost from artificial intelligence, a.i. the stock out performing microsoft by 10% this year on what the ceo called unprecedented cloud demand on last quarter's earnings call. let's dive deeper into the issue with mark. mark, thank you for being here. how high are the expectations for oracle? >> it is interesting. oracle is a name that investors did not love, frankly, until recently. many people bought it because of

the safety it slowed with the downside risk protection if there was an economic slowdown or got worse. oracle's clients are the biggest companies and critical work loads. a.i. and oci have become a bigger part of the story over the last year or less. people are talking about it and management is talking about a.i. and the opportunity and our conversations with clients and our revealing the rest, the street is not modelling meaningful revenue numbers from a.i. at this point. i don't believe the investors are at the point where they are saying this is huge for the company. they see the opportunity and they are interested in the name. the set up is good for the earnings tonight. >> mark, if this is the scenario where oracle is a mega cap technology stock and it has been a player for decades at this point, is oracle likely to become the microsoft story over

the last several years or is it more like the ibm story where it is a slower growth story? more steady and not as exciting for investors out there? >> great question. we wrote a note a couple of months ago in which we compared oracle today of microsoft in 2015 and 2016. there are a lot of similarities. there are a lot of differences, too. at this point, no one expects oracle to accelerate to the level of growth that we are seeing at microsoft. on the other hand, as i said, there's a lot of similarities in here. you know, while the cloud is going to grow 28% to 30%, the overall revenue expectations are in the single digits. i'm above the street in those expectations. the street is not yet at the point they were for microsoft,

but i think there are a lot of similarities to microsoft. this could be another engine that keeps driving up. >> mark, before we let you go, artificial intelligence has been a huge part of the story for many companies out there, including oracle. with regard to what oracle cloud infrastructure, oci, those letters will be prominent for many investors after the closing bell today. how big of a driver can a.i. be for the cloud infrastructure unit at oracle? >> oracle's oci is relatively small compared to microsoft, amazon and google. a small number. therefore, if they have meaningful success with a.i., it could have an amplified effect on the oci numbers. microsoft today is the only one who said a.i. is this big. they said it is 1% of azure

revenue. guiding to 2% this quarter. oracle could do something similar. it could be a bigger percentage of oci revenue because oci is still relatively small. i think the setup is really good that if oracle sets up and starts discussing real numbers or percentages or intimating in that direction, the stock is moving up from here. >> mark, thank you very much. good luck. let's stick with the a.i. theme. the irs is among those turning to the technology with the focus on cracking down on those cheating on their taxes. robert frank joins us now with the story. robert, who is the irs going after with artificial intelligence? >> it is the willy sutton approach. going after those with the money. irs announcing the historic effort to restore fairness to the tax system. using funding from the inflation

reduction act and the a.i. technology tools. irs announced a crackdown on the wealthy tax evaders. dom, first, it targets 1,600 millionaires owing $250,000 or more in unpaid recognized tax debt. taxes they agree they oh, but have to the paid. secondly, using a.i. and machine learning to target the 75 largest partnerships in the u.s., hedge funds, real estate partnerships, law firms and others, that have an average of more than $10 billion of assets. the goal is to find errors which were too complex for the limited staff of the irs. and starting next month, they will send letters to 500 other large partnerships that have the discrepancies to point to

underreporting of income. those earning $10 million a year has fallen from i21% to 4%. the rate is still eight times higher than the overall tax base. the commissioner explained no one making less than $400,000 a year will see increased audit rates. dom, this is an agency beset with technology problems. still way in the dark ages with the computer systems and technology and copy machines. this would be a big step for them using this money and a.i. tool to figure out what the patterns are with taxpayers and better identify the tax cheats. >> robert, you answered my question. you read my mind about this. i'm thinking, i don't think about technology prowess with government bureaucracy, let alone the irs. my question then becomes we know

there was a massive backlash with regard to the hiring of agents to then go and expand the powers and enforcement of the irs. how exactly do you think the story plays out knowing they will now use technology to police this and should people be fearful? i know you mentioned $400,000 or less. we don't have to worry. this could be a political sticking point in an election cycle the year coming up. >> dom, you are right. it will be a political sticking point. as it relates to the technology, they are hiring a ton of data scientists internally as well as using external vendors. they have not said which companies they are working with. microsoft or oracle or other big a.i. companies. they are using this combination of outside convenivendors and i scientists to better improve the technology. i think it is in everyone's

interest to have a smarter irs. their job is to collect taxes. if this allows them to do that better, that's great. the degree to which it imposes added time and burden on taxpayers that may not yield the results, that will be the question with all this investment going forward. >> like turbo tax on steroids for the government. robert, thank you. coming up on the show, heading to court. details on the trial set to kickoff overseas on one of apple's mo pulstopar devices. "worldwide exchange" is back after this. ♪ these are the people, who help you stay well. ♪ ♪ searching lower prices, ♪ ♪ and brands you love on the shelves. ♪ behind the counter, or in the aisles, healthier's better when it happens together. cvs pharmacy. healthier happens together.

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welcome back to "worldwide exchange." a market flash for you in the pre-market trade in technology stocks. baibu and nio are all higher as you can see. we are watching the etf crane shares. chinese regulators overnight relaxing rules for the country's insurance giants allowing them to invest more cash in public equity markets. that rising tide possibly for chinese companies. time now for the morning call sheet. we have a big price target from tesla at morgan stanley. it expects shares to climb to $400 a piece.

tesla's super customer effort dojo can add up to $500 billion to the value. tesla shares up 500%. doeutsche bank is upgrading kenvue. they are more than adequately discounted in the stock price. jeffries is upgrading doordash to hold and 9$$90 a share. those shares are thinly traded right now in the pre-market. time now for the global briefing. class action suit against apple going before the uk court. the tech giant is accused of

hiding defective batteries in millions of iphones by throttling them. appar apple previously argued this lawsuit is baseless. astrazeneca ceo looking to step down from the position next year. the report adds that he has not spoken with the board or chairman about the potential plans. reuters reporting that vietnam airlines expected to sign an agreement to buy 50 737 jets. this comes as president biden wraps up the weekend trip to hanoi. announcing other deals with microsoft and others as well. ahead, the one word every investor needs to know today, plus the consumer space our next

guest says is offering plenty of investment. and join us for the next investment summit for insights and ideas to help you balance risk with maximized returns. scan the qr code on the screen or visit cnbcevents.c cnbcevents.com/deliveringalpha. we'll be right back. retinol overnight means... the smoothing benefits of retinol. are now for your whole body. plus, fast-working crepe corrector diminishes wrinkled skin in just two days. gold bond. champion your skin. (sfx: stone wheel crafting)

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♪ (a lovely day) ♪ ♪ (lovely day) ♪ ♪ (lovely day) ♪ ♪ (lovely day) ♪ a bank that knows your business grows your business. bmo. quelwelcome back. you are seeing a live shot on the screen of the reflecting pool in downtown manhattan not far from here. also, the pentagon, as we remember those on the 9/11 terrorist attacks and those who died on that day. the new york new yorstock excha

nasdaq will hold a moment of silence before the opening bell. inn sta -- instacart is targeting a valuation before the ipo on the nasdaq this morning. the deal could become official today for hostess and jm smuckers. and alibaba says ceo is stepping down as chairman to focus on the cloud intel unit. ubs cutting hundreds of wealth management jobs in asia due to the slump in client activity. bloomberg said the bank cut a number of overlapping roles.

half of americans plan to begin holiday shopping by halloween this year and 12% will start by the end of august. one-third of people expect inflation to impact shopping habits and a quarter feel stressed about the cost of holiday shopping. here is a look at the trading day ahead. earnings from oracle and adobe. fresh read on inflation on wednesday. a pair of big events tomorrow. iphone 15 launch and the department of justice anti-trust trial against google search dominance and the strike on the awed owe auto workers. ahead of that, let's siee how te markets are shaping up. dow up 110 and the s&p is up 28. if you look at the last couple

weeks with regards to small cap stocks, we know the story is large cap. we saw a catch up with small caps. could it be a tell on where the economy is headed if investors are anticipating more pain for small cap stocks? let's get more from the co-cio at bally funds. chris, it seems investors are in certain parts of the market. are they right or wrong? >> we worry all the time. through the summer, we increased our hopes for a soft landing as consumer spending continued to drive the economy forward. we saw cooling of inflation. that is retraced over the last month or so.

you know, it is a process of push and pull. i think the economy is strong and there is some bargains to be had. >> what kind of bargains? stuff in technology that people say is overvalued. it's growth. everyone refers to value and makes it synonymous with energy. >> you touched on an interesting point. the indices are dominated by energy and financials. banks have their own idiosyncratic issues. companies can create for themselves. especially in small cap, we are seeing interesting opportunities. >> where is the opportunity then in small caps and industrials and other parts of the market?

even technology and telecom. if investors say they have run up so much, how much further can they go? >> one area that iexperiences. that has remained strong and one of the most interesting areas in live entertainment and sports. few areas to participate. great to have football bacback. not if you are a giants fan. >> what is your word of the day? >> consumer. the conkconsumer. consumer accounts for one-third of the gdp. it pushed out a potential recession. the question from here is how long can that continue. >> chris, thank you for joining us. >> thank you.

futures right now are pointing to gains at the opening bell. you see the dow implied higher by 110 points. "squawk box" picks up coverage next to kickoff your trading week. see you tomorrow. siness... it i. is it possible to use predictive monitoring to address operations issues? we can help with that. can we provide health care virtually anywhere? we can help with that, too. is it possible to survey foot traffic across all of our locations? yeah! absolutely. with the advanced connectivity and intelligence of global secure networking from comcast business. it's not just possible. it's happening. every business that's why comcast business de is launching theal. mobile made free event. with our business internet, new and existing customers can get one year of unlimited mobile for free. it's our best internet. powered by the next generation 10g network and with 99.9% reliability. plus one line of free mobile for an entire year. it's the mobile made free event-happening now.

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good morning. futures pointing to a higher open ahead of the busy week. we will get you ready for the market catalysts. surprise shuffle at alibaba. the ceo steps down. now he is quitting both the parent and cloud unit. and jm smucker is nearing a deal to buy hostess brands. the company that makes twinkies. does anyone know what it is?

even i don't like those unless you deep fry them. it is monday, september 11th, yes, it is. 22 years. "squawk box" begins right now. good morning. welcome to "squawk box" here on cnbc. we're live from the nasdaq market site in times arsquare. i'm becky quick along with joe kernen and andrew ross sorkin. looking at dow futures which is up 107. s&p up 22 and nasdaq up 100. this is after the down week for the s&p and nasdaq. the first time we have seen a negative week for those two averages. sharply higher moves this morning. if you are watching the treasury