good tuesday morning. i'm carl quintanilla with sara eisen on the new york stock exchange. is the only solution to the u.s. debt crisis inflation? plus, airbus ramping up production as demand for planes skyrocket. the ceo is coming up at the bottom of the hour. later, a pulse check on the consumer, the ceo of casey's general stores with us on the back of strong earnings. stock is up 10%. topping the tape is some

indecisive positioning. according to bank of america fund manager survey as they wait on cpi tomorrow. mike santoli is here with more. what are you watching in positioning? >> we worked off this excessive bearishness by long-only fund managers and a lot of other indicators. no longer -- we also don't have people positioned for the market to run away from us on the upside. we can call it indecisive, call it neutral, call it confused, data-dependent. all those fit. we've been fighting the same battles with oil prices nudging above the comfort zone, perhaps, and then yields, how are they going to absorb this inflation number tomorrow? so, i think the big picture story of this year remains in place, which is disinflation, you know, you've had the fed mostly done if not fully done. earnings are tilting up slowly from a trough. all that is -- and then the argument what is priced in? have we priced in benign soft

landing scenario or do we have more to benefit. >> it will be fun to watch the doves who were earlier tuned to headline. this time really tuned to core, right? 4.3 is a nice number. >> i think i take comfort in the fact the numbers have been coming in close to consensus forecast. it's no longer this bucking bronco. we don't know where the numbers are going to end up type of story. the other thing the market has taught us this year or reminded us is while we are far from target and far from the fed's target. they want to get there and they'll get there, 4% inflation is more like the toggle for the stock market. below 4% is more comfortable historically. we can make some progress in that zone as long as it's not rising from that level. so, you know, i feel like you still want to see further progress, but it's not so make or break when we're in this area. >> but at what, 19 times earnings, the question is how much of the soft landing is already priced in. >> that is the big question. you know we can slice it every which way. you look at all these blue chips

trading at the exact normal 15-year multiples outside of the top seven stocks. you have a much more tame valuation. but you still have seven stocks trading at 30 plus times earnings that are trillions of dollars in -- >> that's what coston told us at goldman sachs, most are trading at 17. >> really quick, b of a note the desk talks about signs you would look for if you were to call a top, nvidia action, oracle and the morgan stanley tesla call. >> it's so tricky because you have multiple opportunities for people to declare, you know, it's all priced in, are we o overhyped in the short term. the oracle is interesting because of the willingness of the market to give them credit for being -- having levers to a.i. and then having the reality check that it's obviously not nearly the whole story there. although dell has held on to most of its upside, which is a similar story.

wish i could say, yeah, this is it, perfect, let's put the pin in it, but it's very hard. >> thank you, mike. mike santoli. let's get more on the state of the markets and credit and the economy. we are joined by pe giant carlyle group co-founder david ruben steen. i rubenstein. thank you for joining us. >> thank you for having me. >> do you think the fed is done? >> i think the fed is likely to do one more 25-basis point increase before the end of the year. that would be my guess. and i think that's probably the conventional wisdom. >> so you're thinking november, december? >> it's difficult to predict exactly when, but i think the fed wants to make it clear that it's not completely happy with where inflation is yet. its target was 2%. we're not quite there yet. whether we'll get there or not, we don't know. but i think the fed is recognizing the market is expecting cuts next year. but the market isn't expecting cuts this year, so i think the fed can get by with

25-basis-point increase without unduly affecting the markets. >> the cuts next year are a hot topic of debate. do they come in the first half, the second half, what are you thinking? >> well, of course, as the fed chairman always says, everything is dependent on the numbers. so, we'll have to see what the numbers are in the first quarter. but i don't think the fed is itching to lower interest rates right now. i think they feel inflation is coming down, but i think they would more likely to do something by the second half of next year, not in the first half. that would be my guess. >> given that outlook and the fact that we have seen the stabilization a bit in interest rates, although yields are -- the ten-year is around 4.3, is it enough to unlock the capital markets, to get activity going? there's been some optimism around green shoots and m&a. we're seeing ipos come back, arm is on thursday. do you buy this is a comeback? >> the history of the markets is when interest rates go down, the markets go up. i expect that will happen now.

i don't think the markets are going to be too excited right now. i think they're going to probably wait until there's more clarity probably early next year where the fed will -- what the fed is going to do next year. i do think the markets are beginning to show some signs of life. i do think you'll see more m&a and more buyouts in the early part of next year than you've seen this year. >> david, one last one on the fed here. another note this morning, i mean, the question's getting almost a little tired but one does write, the rigidness of the 2% target that held for so long is no longer applicable in an era of change, energy, housing. do you think the fed is interested in getting us there? if so, how would they communicate that? >> i think the fed has taken a 2% target because that's what we had for roughly 25 years before this inflation came about in the last year or so. and i think the fed would like to get back to 2%, which is considered to be a level where inflation is not a factor in

financial markets. but i think getting there is not easy. and i suspect at some point the fed may say, well, maybe a little closer to 3% is okay. high 2s. getting to 2% is going to be very, very difficult by, you know, next year this time even. >> and do you think -- how do markets react in terms of fed credibility and dollar strength, if that were to happen? >> well, the fed's credibility is very important to the fed. and the fed has been consistent saying 2%. perhaps could reinterpret that a bit. i don't want to say the fed is going to change at 2%. right now they're adamant that 2% is their target but there are many ways to calculate 2%, i suspect. >> you see so many different companies and different industries within your portfolio and beyond. do you agree we can achieve a soft landing, one more hike and done and they're able to do that, bring down inflation as needed without taking us into a recession? >> the history of increasing interest rates, as much as the

fed has done, does not suggest a soft landing is possible. on the other hand, right now i do think a soft landing is more likely than a hard landing. the fed has done a pretty good job of, you know, conditioning the market for what it wants to do. i think a soft landing is not impossible. i don't think we'll know for another six months or so. i do think we have a reasonable chance of escaping a recession. u.s. economy is in pretty good shape relative to other -- the european economy and the chinese economy. in fact, we're probably much better shape than the chinese or european economy. i think the fed has done a pretty good job. while people like to criticize the fed because it's easy to do, i think the fed has done a pretty good job under jay powell of getting us to a point where inflation is back to where it probably should be, much lower than it was a year or so ago. >> david, on china, people continue to kick around the so-called japanification where it's a slow slide, 1990 style. others argue with the aging population and this rekals trant

government and the debt load that it's going to be more dramatic. do you have a view either way? >> many western economists for the last ten years or so says the chinese economy can't do what it's done. with aging population, the real estate market was going to collapse and other things in the chinese market was going to go down. generally western economists have not been right. the chinese have figured out how to keep their economy going at reasonable levels. the numbers may be a little suspect from time to time. when the numbers don't seem to be favorable, they don't release them. i think the chinese economy is not going to collapse at all. i think they have enormous amount of foreign reserves they could deploy and i think they have a different system than we do. i think it's harder for us to predict. i don't think the chinese economy is going to be going into a recession any time soon. >> do you think it's safe to invest there now, given that, all the geopolitical concerns? >> well, it's a little more treacherous than it was a few years ago, for sure. sdpe depends on what you're investing in. real estate may be more

complicated, technology companies. you really need to have people on the ground who know w they're doing when you're investing in companies. it's more complicated than investing in the united states or europe for sure. but i do think there are pretty good opportunities there if you know what you're doing and you're not dealing with regulatory issues all the time. >> you know, we're getting a big apple event today. they've made high-profile migrations to their supply chain into vietnam and india. do you think china feels that? do you think there was something behind xi's absence at g20 that sort of speaks to the share shift that's going on regarding supply chains? >> well, the supply chain issue really arose, i would say, when covid came and people in the united states realized that not just on iphones but a whole variety of other things we were very dependent on china to manufacture things. i think american companies have been trying not just because of the china factor but trying to not be so dependent on any one country for supply chain. some manufacturer has come back here. and i think vietnam and other countries in southeast asia are going to get some of the business that china had.

it's very difficult to replicate what thooin has because they have so many people and they're very good at producing a lot of products. >> david, while we're talking about all the big picture sort of risks that investors are thinking about now, i think we should mention the u.s. fiscal position, because i know you watch it very carefully. it does feel like there's a heightened awareness and concern in the markets right now. i don't know if that's part of the reason yields are elevated right now, but these high debt numbers, the fact they're high during an expansion period, and that we're going to have so much issuance. doesn't that tighten the economy and supply? >> well, the debt in the united states is like the weather. everyone likes to talk about it. at the beginning of this century we had $5.6 trillion now we have $33 thrrillion. the only way out of it is inflate your way out. we're not going to increase taxes very much at all and we're not going to cut spending very

much if at all and we're not going to go to the imf for a bailout, and we're not going to default on the debt. what do you have left? you inflate your way out of it and that's basically what we're doing. my young grandchildren will be paying off this debt many years into the future, i suspect, with inflated dollars. >> do you think that's why we're seeing high yields, part of the reason? >> well, i think right now we lived with these high debt numbers for quite some time. people in washington, the government officials basically say the market was so terrible, the people in wall street would not be financing this debt. people on wall street are saying, well, government must know what it's doing, it keeps issuing debt. nobody's really doing anything about it. it's too difficult to get anything done. 85% of our budget is locked in at defense interest rates -- interest debt and defense spending and social security and entitlements, so forth. very difficult to cut the budget. i don't have an easy answer for it. i don't think we're going to do anything to cut the deficit very

much. i suspect we'll have closer to $2 trillion deficit this year, not a $1 trillion deficit. >> great. not so great, but thank you for coming on with all the predictions and the opinions. >> let me -- i don't want to end on a down note, let me say generally the u.s. economy is in pretty good shape. the fed deserves some credit for taking on the inflation issue. they may have gotten there a little late but i think they've done a pretty good job. i think we're likely to have a soft landing rather than a hard landing. >> no doubt. it was all of powell's training at the carlyle group that prepared him for this moment. david, thank you. >> thank you. david rubenstein. still to come, we will go live to cupertino ahead of the apple event and launch of the iphone 15. maybe isps, charging ports, some rumored changes. and the ceo of airbus joins us. a surge in travel causing a jump in demand for airplanes, causing a stock jump as well. ghba see wl etrt"ilbe rit ck.

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weak demand environment. in fact, i was here just a month ago talking to ceo tim cook, and he told me in the united states and other important markets for the iphone that demand is just weak. that's why apple is expectingto see its fourth quarter in a row of declining sales -- overall sales, not just for the iphone, that is. a couple things to watch here. one, as they face that environment, whether or not the analyst predictions become true and they actually end up raising prices on the pro line of these new iphone 15s we're expecting to see. analysts are saying 100 buck price increase. that means starting price of $1,100. on top of that, and i know we'll have joanna stern talking about this, but big change from the european union forcing apple to make a change to the hardware of the iphone, the port on the bottom is expected to change from the lightning connecter that you and i have been using for the last 11 years or so, that's changing over to the same kind of connecter called usb-c

that android phones and loads of other phones use. apple will make it sound like a good change but they are being forced to do this. a eu regulation affecting american tech companies. four models of the new iphone similar to what we saw last year. two of the regular base models of the iphone 15, one with a larger screen. but all the new technology, all the new features get put into the pro models. that means faster processors, better cameras and expected titanium casing. we'll get all the details in a couple of hours right there behind me on the steve jobs theater. >> looks gorgeous. the hallmark of the last few events have been their ability to brag about going vertical in chips and faster processors. i wonder, is there discussion about the qualcomm deal taking some shine off of that? >> reporter: not really. apple has been silent on that. in fact, yesterday i was asking, do you have anything to say about this qualcomm

announcement? just pure silence on apple's part. it was a great advertisement for qualcomm putting out that announcement yesterday. qualcomm gets to say not only is iphone 15 powered by qualcomm mow democrats it will be the 16, 17 and 18 over the next couple of years. so, i don't expect them to talk about that. they like -- apple likes talking about its own silicon and, yeah, it's very clear after what we heard from qualcomm yesterday, they're not able to translate that success quite yet, what they've seen in the processor side to these mow dedems they r on qualcomm for. >> we'll talk about that. steve in cupertino. we haven't talked about the china issue, which was the only topic of discussion last week. >> right. the concern was reports about chinese government banning government use of apple iphones. and then the possibility, and, again, nothing confirmed here, that would expand beyond that in terms of a ban. we know china's very dependent on growth from china for its

revenues. that consumer business has been strong. for china. >> were you struck by rubenstein's comments a moment ago about chinese economy holding? >> not really. because they do a lot of business in china and have investments in china. it was interesting that he went against the doom on the economy. he said they have trillions of dollars in reserves and they'll figure out what to do. he also said economists have been bearish on china for a while and they've been very wrong on china for a while. so, don't expect apple to get into any china commentary today because it's all about the unveil of the new phone. but i think between that concern and then, you know, we were talking to tony, he said also apple has been in a slump. their sales this year of iphones were weaker than last year. it's not necessarily that things are falling apart. there's still strong demand. but it's kind of a slump relative to where we were. that could be part of the weakness in the stock lately as well. >> yeah. every story about apple the last few weeks is led with three-quarters of declining revenue growth. we are getting breaking news out

of washington. for that we turn to emily wilkins. hi, emily. >> hi, sara. hi, carl. there's going to be news on capitol hill. speaker kevin mccarthy is talking right now. he is expected to announce his support for an impeachment inquiry into president biden. this ties back to hunter biden, a lot of his foreign business dealings, and whether president biden was involved either in soliciting money or he was paid. we have had inquiries going on for several months looking into this. we haven't found any direct evidence that biden was involved. mccarthy is saying that what we have found has raised enough questions to begin an imp impeachment inquiry. republicans are not entirely united. while republicans have been pushing for something against biden, digging him into, you have more moderate republicans saying, hey, this is not what we should be focusing on right now. we have to be digging into kitchen table issues.

there's been concerns from congressman ken buck there's not enough evidence right now. there's enough pressure on republicans that you're now seeing mccarthy come out and endorse that as a path forward. of course, the question at this point, this is an impeachment inquiry. are they actually going to get to the point where they move to impeach? >> emily, i also wonder -- so, congress is back, sharp reminder there. i wonder how it relates to this upcoming deadline, september 30th, where the federal government runs out of funding. we could be facing a potential shutdown. does this increase the risk there because of the -- what this might do? >> it's a great question. it kind of depends on who you ask whether the two are related. certainly, congress likes to say they can walk into gum, they can put together the spending bills while doing an impeachment inquiry. mccarthy faces a battle from his own members to ensure the government is funded. a lot of the same members pushing to have this impeachment inquiry go against biden are the

same ones who have a strong list of demands of what they want to see if they're going to fund the government. and so part of mccarthy's strategy here could be to give them an impeachment inquiry, solicit support for passing a short-term funding for the government that will give them more time to get the bigger bills together. of course, it's a question on whether that's going to work. chip roy yesterday talked to reporters and he told them, look, these are two separate things. the impeachment is one thing, the spending is another. we have demands we want met on both. >> fascinating that it's an order from the speaker and not a house vote. we'll see what happens later in the week. emily, thank you. emily wilkins in washington. let's get back to apple. "wall street journal's" joanna stern is with us after the curtain-raiser from our steve kovach. good to see you. are you a buyer of this view that a huge part of the install base hasn't upgraded in years and is poised to? >> i definitely believe a lot of

the install base hasn't upgraded in years. that's because we have seen incremental updates over the last few years and phones last even longer, right? you can replace that battery. you can replace that screen when you break it. so, that is part of the reason. i think that this year we're going to see, again, another incremental update, what people may say is revolutionary but evolutionary. and around that, we do see people who are going to need to upgrade. whether that's the two to three or three to four-year cycle. >> we were talking a moment ago about some of the higher expected asps at the high end. are you going to be sort of on watch for what you think the consumer can pay, can afford? >> yeah. last year my review of the iphone 14 was go pro or go home. it was very clear the pro models had superior features. had the dynamic island which some people said was a gimmick. i liked that feature. it has the better cameras. it has the better design, better screens. so, when you look at all of that as the package and if you're

only upgrading every three to four years, then why not spend more of that money? that was my case in my review. i expect they'll make the same case this year with some of the improvements we're expecting in the pro lines. >> i do wonder, joanna, whether they say anything or whether you know anything about chips. we were talking to an analyst that's really bullish last hour from oppenheimer. he said that will be the key. that will put some concerns around huawei and china to rest, and that's something investors can get excited about, if they make some sort of advancement towards a.i. using their own chips, in light of the qualcomm deal yesterday. >> absolutely. it's a no-brainer. we can bet. i would say there's going to be four to five minutes on the new chip, on the new a-series chip, how that's going to be improving, again, performance on the pro lines, forcing people to feel like, okay, if i get that pro line, i'm going to get better a.i. processing, i'm going to get better photo processing and making the case through the features, not the

chip. >> we can't wait. it's always a fun ride to watch, even from a distance, joanna. thanks for the heads up on this. joanna sterns joins us from the "journal". the ceo of casey's general stores is coming up later this hour. a check on the consumer and how gas prices are playing a role in that quarter. draw your attention to morgan stanley. stock at session highs. company says at barclay's financial conference that credit capital markets performing really well right now. part of several banks this morning that have had constructive comments about either markets or the consumer. we're back in a minute. ♪♪ we're not writers, but we help you shape your financial story. ♪♪ we're not an airline, but our network connects global businesses across nearly 160 markets. ♪♪ we're not a startup, but our innovation labs use new technologies to help keep your information secure. ♪♪ we're not architects, but we help build stronger communities. ♪♪ we're not just any bank. we are citi.

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welcome back to "squawk on the street." i'm bertha coombs. here's your cnbc update. massachusetts city is under the state of emergency after flash floods dumped more than 9 inches of rain last night. local officials say the flooding inundated roads creating sinkholes and damaged homes.

the mayor warned people who lived there to stay inside as the rain came down. schools are closed today as the city cleans up. the former spanish soccer president resigned over an allegedly unsolicited kiss at the world cup, will testify in spain's national court on friday. he has been accused of sexual assault and coercion because the player involved says she did not give him consent. the high court is in charge of the probe because the incident took place outside of spain. and aaron rodgers' season is over, according to nfl.com. the new york jets star suffered a torn achilles against the buffalo bills. the injury came just four plays into rodgers' debut and during the jets' opening possession. i think the new york football teams were just cursed this weekend, sara, between the

giants getting trounced 40-0 and then big buildup for aaron rodgers, ten minutes in, he's out. >> didn't they win? >> they did. but, man, i don't know. >> what a bummer. sad news. thank you, bertha. bertha coombs. the ceo of casey's general store is next. stock higher after fuel prices helped to fuel profits. the ceo will join us on the back of the results with his outlook for consumer spending. the stock hitting a 52-week high. coach saban, this goat done took over our office. and he's using it to send out medical bills. good hands! hospital bill for prime?! gaaaaap! did you just say gap?! he's talking about expenses health insurance doesn't cover. good thing coach prime knows about...say it one time! aflac! because aflac gets you money to help close that gap! now how do we get this goat outta here? (whistles) aflac! meet one of my new homies! gaaaaap! get help with expenses health insurance doesn't cover at aflac.com. elephant would've been scarier. (sirens)

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welcome back. let's dig into bullish commentary we've gotten on the state of the consumer the past couple of days. first jamie dimon who said that consumer balance sheets are in, quote, great shape with more cash in their checking accounts than precovid. wells cfo telling the conference the underlying performance of the consumer is, quote, still really good. b of a constructive on the consumer given balance sheets days after the fed showed new u.s. data showing household wealth hitting a new record on a nominal basis. important to keep in mind. >> true. it's interesting to see the divergence in forecast for gdp from the atlanta fed and the st. louis fed. all over the map. atlanta fed is still tracking 5.6% growth for this quarter. i think st. louis' is negative growth for the quarter if not very little. it does depend on the consumer. there's some mixed -- there's some questions.

retail sales on thursday will be really important because the resumption of student loan debt begins. starts october 1st. there's evidence it's already started. we started seeing money flowing into the department of education. that could take a bite out of consumer spending. and gas prices are on the rise. people spend more on gas and less on restaurants and services, which has been the strong point. >> indeed. the gas price drag is important. although goldman last week tried to argue the early resumption in payments on loans might mean they're getting ready and there's less drag from here on out. we'll see. >> true. let's take a closer look right now at casey's general stores. that stock hitting a 52-week high after delivering an earnings beat in fiscal q1 with higher than expected fuel margins as they say they also plan to add more locations next year. joining us for a closer look and first on cnbc interview is casey's ceo darren rebelez. thank you for joining us. it's good to talk to you.

where do you think the consumer is right now? >> thanks, sara. great to be with you again. what we're seeing is the consumer has been fairly resilient so far this year. we are seeing a little bifurcation between the lower income consumers and everybody else. but in our footprint, about three-quarters of our guest base make over $50,000 a year. in our more rural geography, that's a pretty substantial income. so, those consumers are doing just great and we have great momentum in the quarter from a sales perspective. we are seeing a little pressure on the lower income consumers, but they're not stopping spending. they're shifting around to more affordable options like our prepared foods and like our private label products. >> i mentioned the fuel margins. that seemed to be the good surprise in the quarter. why so much better than expected and where do we go from here? >> yeah. fuel margins hung in there really well.

i got to give a shout out to our fuel team because they executed in a challenging -- somewhat of a challenging environment really well. what i would say is over the last couple of years, fuel margins have been really volatile. there's been a lot of exogenous reasons for that. this quarter was a little more rateable from a supply standpoint. so, the way we look at fuel margins moving forward is these margins at more elevated and historic margin levels are a reflection of what's going to be happening in the future. i think they are more sustainable at these higher levels. a lot of that has to do with the fragmentation of our industry. two-thirds of the convenient store industry are operated by chains of ten stores or less. so, when you think about the inflationary environment we've been in through the last couple of years, that puts a lot of pressure on those smaller operators. they have to raise fuel prices and extract margin simply to

survive. in that environment, that works to our favor. we're seeing that play through on a lot of different fronts in our business. >> how would you characterize or describe the pricing strategy going into q4 and early next year ex-gas? >> well, from a pricing standpoint, we look at category by category. our merchants spend a lot of time trying to position our pricing relative to our competition based on what that category is. so, in some categories we want to be very aggressive and we want to drive traffic for those categories. so, we'll price it accordingly. other categories maybe we don't have that focus and we're more looking to gain margin and grow growth profit dollars. we strike a balance across the assortment. it all blends into pretty good margins for us. frankly, we have some of the best inside margins in the industry as a result of that approach. >> so, how big can you get?

your stores are mostly, what, in the middle of the country, midwest, right, ohio, indiana, illinois. how big are your ambitions when it comes to expanding? >> we can grow a lot, sara. just a quick data point. we have 2,500 stores in 16 states. but 2,000 of those stores are in only nine states that we operate in. so, we have a lot of white space just in our existing geography. but there are small towns in rural communities across the u.s., obviously. so, with only 17 states penetrate -- 16 states penetrated at this point, we still have a long, long runway for growth. >> how discretionary is convenient store spending, darren? what happens typically in recession? because gas you need. but, you know, those extra little treats that people buy, i don't know. >> yeah. actually, sara, you know, we've

performed really well in recessionary environments. one of the things that really helps our business model is that we sell basic needs. so, 80 mrs of what we sell is consumed within minutes of purchase. really highlighted by our prepared foods business. so, when you think of more discretionary retail, it's easy to give up maybe not buying that new television set or a couple hundred dollar pair of jeans, but when you're talking about your delicious breakfast pizza and cup of coffee or energy drink to get you through the day, those are low dollar purchases and make you feel better about getting through the day. so, we find that the categories we play in are very resilient in recessionary time. >> and pizza, which is a staple for me always. i don't think people realize you're the fifth biggest pizza chain in the country. quite a distinction. >> well, it is. really, pizza is the crown jewel of our business. and, you know, in this quarter we launched a new thin crust

pizza platform, which performed exceedingly well and really highlighted the value and differentiation of casey's. that's what helped drive traffic into our stores. that's why we had such a strong quarter. >> analysts were excited about that thin crust pizza launch. thank you very much for joining us. appreciate the color. >> thanks a lot. the ceo of airbus coming up next. travel demand bounces back and airlines scramble for planes. cnbc's financial adviser 100 list. you can head over to cnbc.com/fa100 to view the entire list. e. i've seen bigger legs on a turkey! rude. who are you? i'm an investor in a fund that helps advance innovative sports tech like this smart fitness mirror. i'm also mr. leg day...1989! anyone can become an agent of innovation with invesco qqq, a fund that gives you access to nasdaq-100 innovations.

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demand for airlines is striking as airbus has been one of the biggest beneficiaries of increased demand. let's get to phil lebeau who joins us with the airbus ceo in d.c. >> hi, carl. gall a guillaume faury, ceo of airbus. what's your take on global traffic and where it's headed over the next six months? >> it keeps going. demand is very strong. we see the wide-body business recovering as well. we keep having a demand for planes that is significantly higher than the ability to supply. that's why -- that's what we're working against. >> and making sure you can meet that supply depends on the supply chain. we talk about this every time we meet. how much more comfortable are

you now with the strength of the supplier base than you were, let's say, a year ago? >> yeah, things have been improving in the meantime, obviously. but we have more expectations as well as we are in the ramp-up. we keep seeing a lot of -- and our job is to try to manage those bottlenecks as good as we can to keep growing at the pace we have indicated to our customers. >> is the bottle neck with suppliers employment, the ability to find the skilled labor they need? >> depends on the suppliers, but that's one of the drivers. we've had some drivers as well coming from the availability of raw material, of logistics around the world, price of energy. it's a complex environment. >> you have the geared turbo fan engine, which is on a number of a-320s, which are going through inspection or going to be repaired because of the fan blade issue in terms of the manufacturing process. are you still a believer in that technology? >> oh, yes, we are. of course. it's a very good technology. it sells the market well in

terms of performance. we have some durability that needs to correct and that's ongoing. plus the recent quality product airbus is addressing that will put aircraft on the ground in large numbers for the next two years. that's something that needs to be done for protecting safety. that doesn't undermine the technology itself. >> you have the a-320 in mobile which you plan to get up to 30 by, what, 2026 from where you are right now. can you make it there? do you have the manpower and the supply chain that will give you the confidence that you can meet those targets? >> yes, we are very satisfied with the footprints we have in the u.s. and also in canada for the 220 and the 320. we are on our way to grow. we are putting together fourth final assembly line in north america for the a-321 which we start producing and delivering by 2025. then we'll be up and running going up to 30 planes a month in

the u.s. or in north america. that's quite massive. yes, we are on the trajectory to do this. >> on the flip side, you have production in china, massive market for airbus. because they haven't placed an order with boeing since 2017, this has been a market that's been very good for you. what's your take on the china economy right now? >> china economy is softer than what was expected going out of covid. still the demand for planes is very strong. we have one assembly line in china and we are building a second one for the 220. we want to be well equipped in china to serve china. i remain optimistic on the growth of the business in china. >> i have to ask you about the push for lower emissions. you have staff production being subsidized in the united states. you just announced a deal to work with the development of saf. in europe it's not incentives.

does that need to be changed for manufacturers to hit their targets? >> you need a good combination of regulatory framework that supports the use of saf but you need a way to help as a government or as an authority. because the beginning of the cost curve is very expensive. that's the place where you need to give some incentives, some subsidies to grow through that part of the cost curve that's painful and then it flies by itself. a good combination of regulatory framework and subsidies is the right framework. we very much welcome what has been put in place with the united states with the i.r.a. proves to be strong and successful. >> how do you feel about the a-380 flying for lufthansa again, with routes in the u.s.? >> it was difficult to take the decision to stop the production of the 380. the 380s were put on the ground. we see them flying around the

world. that's a pleasure because we love that plane. >> you're a proud papa there. thank you. guillaume faury ceo of airbus at global aviation summit in d.c. >> extremely cool, phil. still to come this morning, the doj taking on google search dominance in this antitrust trial. wide-reaching implications and detas tethbrk.ilafr e ea with your hearing, if you start having a little trouble, you're concerned that it's going to cost you money. to this day i only paid what i had to pay for the device...

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the doj trial against alphabet kicking off today, the biggest antitrust case since facing off with microsoft two decades ago. back then when the big personality was bill gates, this time it might be alphabet's pichai. >> he's a peacetime ceo. sundar pichai is a really nice guy, is that enough? sundar pichai is calculating and efficient, the wartime google needs. since taking the job in 2015 sundar pichai has increased the val up of google more than 300% facing critics inside and outside of the company. internally he has had to navigate an increasingly del delicate, turmoil over discriminatory policies, contracts to government

agencies, and ai research center in china. none has impacted the business in a material way. google is still seen as one of the most desirable places to work here in the bay area. when pichai did have to cut the workforce, he did so swiftly and efficiently. he laid off 6% of the global workforce amounting to 12,000 employees in january. perhaps his biggest crisis came this year when wall street thought google had fallen behind in the generative ai race and microsoft and chat gpt were going to kill its golden goose, search. no one thinks google is behind anymore. take a look at this chart. it is outperforming microsoft this year by nearly 15 percentage points. so wall street and the doj perhaps should not underestimate pichai over the next few weeks and months as the doj makes this case that google has abused its power. finally, i can not mention this. when nadella said he would make google dance, pichai answered yesterday in a wired interview

and said in cricket there's a saying that you let the bat do the talking. so, guys, sundar pichai may be quiet and soft spoken, over the years he's proved himself, and this could be an interesting battle shaping up between him and google and the doj. >> i was going to ask how they've been dealing with the regulatory issues. today's case reminds me a lot of what they faced in europe and have been facing in europe from their antitrust market. not sure margaret would give him the glowing reviews but i'm curious what that's been like. >> she might call him a formidable opponent. sara, you know better than anyone, it has faced more -- google has faced more penalties, more fines in europe than it has over here to a wide degree. but, you know, something sundar pichai has done over the years, he's known who to appoint. this move we got last earnings call was moving the cfo to president of the company. she is going to have more of a

role with regulators. to move someone so high profile that has been so good at her job as cfo into that kind of role could be really interesting. we'll see if it turns out to be a good one. the other thing i'll add, i wanted to provide opposition to the idea sundar pichai has done a lot that proves he might be a wartime ceo, when the stock does 300% and is riding this ai wave, 300% since he became ceo, that makes up for a lot of other stuff. >> all right, deirdre, thank you. good to get your perspective. deirdre bosa. still to come, a key energy agency says it is the beginning of the end for fossil fus.el we have their new time line and who it is next. every day, businesses everywhere are asking: is it possible? with comcast business... it is. 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.

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your shipping manager left to “find themself.” leaving you lost. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire energy is in focus today on the street ahead of the international energy agency declaring the demand for oil, coal, and natural gas will peak this decade, calling it, quote, the beginning of the end of fossil fuels as the world marks a turn to more renewable energy sources. higher oil prices contribute to that pivot. crude did hit the highest level of the year today, got to 89.

>> i think it's notable for two reasons. one, they are the international energy watchdog and, two, the specific forecast for the first time they're saying is fossil fuel consumption will peak just before 2030 and fall as the climate policies take place. so get ready, i guess, although it's not going to be good enough for those that say we need to warm our planet even faster. >> of course that's a global picture already in china, the huge refiner there, has pulled forward their peak demand a couple of years. it's happening in some parts of the world more than others. looking at the market, the ten-year yield has turned lower on the day. it feels like we've broken that correlation we had lower yields, higher stocks. the dow is up 54 points right now. the s&p has come off its low. there are pockets of strength. we have energy up. you mentioned oil prices, industrials and utilities. one big interview on the markets

and the economy we're looking forward to this week 10:00 a.m. talking to ken griffin. he doesn't speak that often. he is, of course, the leader of citadel, one of the most -- well, the most high earning hedge funds and wealthiest individuals in our country, on thursday. >> this week on the economy and the markets. the judge is in huntington beach. let's get to him. all right, carl. thank you very much. and welcome to "the halftime report." i'm scott wapner. as carl said, live today from the future proof wealth conference here in huntington beach, california. our josh brown has a big part in this event. we'll talk about that in just a moment. he is with me, today, along with liz young and shannon saccocia. less than an hour away from apple's big event a few hundred miles north of us. we'll size up what's at stake for that company, definitely what's at stake for the stock, and the markets as a whole. let's take a look right now. the dow, a