♪ it is a 5:00 a.m. here at cnbc global headquarters. five at 5. we begin with wall street on edge as the federal reserve gets set to release its latest rate decision on wednesday. it's the not only central bank that's making moves. also, a developing story, day four of the autoworkers strike. grippaling the production capacities of detroit's big three. now the white house is getting involved. also, hot on the heels of arm holdings. how one software maker out of boston hopes to keep the

appetite for big ipos alive. plus, house speaker kevin mccarthy draws a line in the sand in d.c. as the latest d.c. shutdown showdown plays out. and then later in the show, the sunglasses maker riding coach prime's three-game win streak to the top. it is monday, september 18th, 2023 and you're watching "worldwide exchange" right here on cnbc. ♪ ♪ good morning, welcome to "worldwide exchange." i'm frank holland. let's get you ready to start this day. we kick it off, as always, with a check on u.s. stock features. they've been holding steady pretty much all morning long. the dow would open slightly higher. similar story for the s&p and nasdaq. both fractionally higher. the dow riding a three-session win streak. looks like that may continue. as we always say, it's early. the bond market, look at the bench mark 10-year right now at

4.34. highest level since 2007. also important to note, the yield on the 2-year, back above 5%. we continue to watch that. we're also looking at energy. oil riding a three-week win streak, trading at the highest level since november of 2022. taking a look at wti u.s. benchmark, 91 bucks a barrel, up a quarter% right now. present crude just ticking to 94 right now. up fractionally. natural gas up three quarters of one percent. a lot more about oil later in the show and hear from bank of america and why we could be facing triple digit prices sooner than later. time for a check on top morning stories. bertha coombs is here with those. >> reporter: good morning, frank. let's kick things off with developing story. united autoworkers president shawn fain rejecting a 21% pay boost offer from stellantis, calling it and other offers from ford and gm a no-go as the

union's first-ever strike against the detroit's big three all at the same time now entering its fourth day. fain telling nbc's "meet the press" things could get even worse. >> if we don't get better offers and don't taking care of the member's needs, we'll amp this thing up even more. >> this has the white house looks to get involved now, according to nbc news, set to send a team, including labor adviser gene sperling this week to detroit. and hot on the heels of arm holdings and a hiked pricing range for instacart, klaviyo is reportedly raising the target of its ipo set for wednesday to more than $550 million, according to bloomberg. the boston-based software maker is now set to price shares between 27 and $29 a share, up

from a range of 25 to 27. this new range the company could fetch a valuation of about $8.7 billion. and roark's capital's $9.6 billion deal to buy subway is reportedly hitting the regulatory radar. sources tell the new york post that the ftc officials are taking a closer look at the deal and a possible anti-trust complications. atlanta-based roark capital owns dunkin' brands, sonic, jimmy johns and more. adding subway to its portfolio would create a company with more than 40,000 outlets nationwide. that's three times that of mcdonald's. can't even imagine something bigger than mcdonald's, frank. >> yeah. it's really hard to imagine, for you and i growing up, mcdonald's seemed to be the most ubiquitous fast food chain possible. fact that places or companies

have more locations, hard to imagine. we'll see you later in the show. thank you. investors are gearing up for a very busy week on wall street, including the fed's next monetary policy decision where it is widely expected to hold interest rates steady. other likely market movers, instacart set to begin trading. also, other central bank decisions from the uk and japan. all this with september really living up to its reputation as the worst month of the year for stocks following back-to-back weekly losses for the major indexes. let's talk more about this with robert shine, chief investment with blanky, high tower company. good morning. nice to have you. >> good morning, frank. >> the dow, s&p and nasdaq trading below moving averages, negative month to date. is this simply september seasonty or something else to it? >> right now it's a traditional rebalance, a seasonality.

if you look at friday, quadruple riching on the options. so, you're going to get the seasonal pullback right now. and it's a great opportunity to rebalance your portfolio and pick off some opportunities. >> so you're saying this is a buying opportunity. if you're going to buy, where are you looking to buy right now where's the area of focus? >> well, we like google. google obviously the doj right now has them squarely in their sights. but if you go back to the play book, you know, back in 1998, when doj went after microsoft, even if you bought microsoft back then, you turned out to be actually well ahead of the game. we believe the same case right now with google, whether it's a settlement or a structural restructuring within google, shareholders long-term, we believe that google will still continue to outperform the overall market. so that's a good spot to be in. we also like amazon as well. amazon right now has all about efficiencies and scale. and we're seeing that.

in both of those companies right now are scoring touchdowns with regards to the nfl and bringing on sort of new users into both of their ecosystems. so there's both wins long term. >> i want to bounce something off you. we have new data from the kmomty futures trading commission and this data shows that hedge funds, they're turning even more bullish on the markets right now. so, on the dollar, excuse me, for the first time since march, expectations the fed will signal the potential for further tightening. what's your take on this? the cftc says hedge funds hold 18,000 net long positions on the dollar. what's your take? >> we'll see later this week the federal reserve potentially is going to pause 87% of the betting market right now says they will do so. we believe they will. and as they're going to continue with their every other meeting strategy. they have tomaintain optionalty. we believe it's going to be higher for longer. that's going to strengthen the dollar. the federal reserve has to keep and maintain rates as high as

they possible can and that's going to continue to put strength in the dollar. >> robert, before i let you go, just one other thought about today. normally i ask the later guest about today. we're seeing that september seasonality. what you expecting with futures solidly in the green? >> iwouldn't hold your breath on that one, frank. quite frankly, again, after that options friday, 79% of the time this week sets up to be negative, according to just historical play book. so, right now just keep your powder dry. take advantage of opportunities. and be patient. >> robert, by the way, i caught the football reference. sounds like you spent quite a bit of time watching the games yesterday. it was great to see you. >> great to see you again frank. a lot more to come on "worldwide exchange," including that one word that investors have to note today. but first why detroit's labor stumbles could open the door for far east ev competition. plus, it's not just crude, heating oil, diesel and jet fuel

also surging in september. why that could be some bad news for consumers. and then later, black jerseys, hoodies, hats and shades. we talk to the boulder, colorado, blackout, we talk about the boulder, colorado, blackout, courtesy of coach prime with maker of high profile eye ware. we have very busy hour ahead when "worldwide exchange" returns. stay with us. we're excited about what ai will do for business. introducing watsonx a platform designed to multiply output by training ai with your data. when you watsonx your business, you can build ai to help coders code faster, customer service respond quicker, and employees handle repetitive tasks in less time. let's create ai that transforms business with watsonx. ibm. let's create.

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welcome back to "worldwide exchange." taking a look at u.s. futures, you can see solidly in the green across the board. all three indexes fractionaltily higher right now. europe's trading day is just getting under way. joumanna bercetche is in london with much more early action. good morning. >> good morning, frank. bit of a mixed handover from asian markets overnight. slightly more green in china up a quarter of percent. better retail sales dates. some analysts suggesting maybe we're seeing stabilization on the economic front. hang sang down 1.4%. property sector in focus. a drag downward by the tech sector being pulled down by some of the chip makers in taiwan. and then the nikkei 1.1% green as we head into that bank of japan meeting on friday. again, there are some speculation that they may be

looking to move away from negative interest rate policy. one of the reasons why we are watching the market so closely this week. as for european markets, the picture is not so pretty, every single one is trading under water as we continue to digest the impact of the ecb's rate hike last week. france down 1% and they're watching out for one stock i'll get to that in a moment at the uk index down .2%. we got better asking house prices this month. just in terms of the stock we're watching out for u within france, one of the major movers down 8% in trading. they revealed the updated strategy as the ceo pledges to boost profits and cut costs. but the market reaction has not been that positive. markets were disappointed by the lack of vision and by the lack of their more ambitious targets on revenue growth which explains why they doing so poorly today,

frank. >> joumanna bercetche, live in london. thank you very much. turning our attention now to china and one very high-end automaker looking to capitalize on detroit's labor dysfunction. specially when it comes to the ev market. first up, though, europe and the middle east. our eunice yoon joins us live from a zeekr showroom in beijing. eunice, good morning. >> reporter: good morning, frank. well, traditional car giants in the west are about to face another competitor. zeekr ceo told me in an exclusive that his ev company is about to crawl into the international ring. ♪ >> reporter: andy has big dreams for his small auto brand. next year will be an important year for zeekr and our international push, he says. zeekr is a premium ev unit of chinese car group, new york ipo. it's cross-over svu the x is

rival to tesla's model y. in china, it starts at $26,000, features automatic doors. folding backseats for extra cargo space. a passenger seat that turns into a bed and a trunk that doubles as a picnic table. but zeekr is just one of countless ev brands fighting it out in an economy in a slump. zeekr sold 40,000 cars in the first half of the year, tesla 12 times as many. zeekr and others are looking overseas for business especially in europe where zeekr just shipped its first cars last month. we're confident we can start in the most challenging market, with europe's fierce competition and high standards, he says. and europe is becoming more challenging. just last week the eu announced an investigation into subsidization of chinese evs. analysts are already worried

about counterfailing measures. the company zeekr, though, didn't comment on those plans. frank? >> this ev war is really heating up. so there's already several u.s.-listed chinese ev makers for u.s. investors to differ. how does zeekr differentiate from all those other names? >> zeekr's ceo told me that his argument is that unlike those other chinese evs, zeekr has access to its parent companies, production as well as logistics networks and also that company is very, very established. in addition to that, the sister brand volvo has safety know how and technological. they're able to have a light asset model which means that they could spend more time on their cars and their designs. jd power actually said that the customer satisfaction of zeekr is quite high in china. but that said, frank, very early

days in a highly, highly competitive market. >> eunice great reporting as always. thank you as always. coming up here on "worldwide exchange," we got billionaires row in new york city. it's apparently too expensive for some billionaires. a new reason n tthw oto ro out the old vhs tapes. more controversy in the hollywood writers strike. we have your top stories coming up when "worldwide exchange" returns. stay with us. 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.

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welcome back to "worldwide exchange." three weeks and three wins is the cinderella story the now undefeated buffalos at the university of colorado boulder shows no signs of slowing down. and at the center of it all, coach prime, deion sanders in double o.t. victory over colorado state. sanders on the sidelines in his signature style capped off by a new pair of sunglasses thanks to a new collaboration with blender's eye ware. the san diego eyeglass makers is riding straight to the top of the sales charts. joining me now in a first on cnbc interview is blender ceo chase fisher. chase, good morning. you're on the west coast. especially good morning to you. thanks for joining us. >> thanks, man. i'm super excited to be here. >> we have a big international audience, chase. deion sanders is one of the most colorful, verbose athletes in u.s. history. on thursday a rival -- he's a coach now, a rival coach talked trash about him wearing glasses. then on friday, you announce a glasses collaboration.

was this planned? how big of a sales boost did this all give your brand? >> it was massive, man. so my dad actually put him on my radar a year and a half ago before he was at boulder. chase, you have to take a look at this guy. he is making huge moves in college football and about to make bigger moves. finally i caught wind of him. just so happens that he was in the market for a sun glass deal at this time. and so we reached out. we made something happen before the season as he was really passionate about it. it's been absolutely skyrocketing. so it's super, super exciting. >> wait. you might be dodging the questions here, chase. was this all planned snout is this a stunt? was the other coach in on it? he talked about sunglasses the day before you announced this. we heard reports it's $1.2 million sales after this. how big of a bump was it really? >> it was 1.2 million sales on that same day. the partnership was planned but the drama between the csu coach was not planned. that fell into our lap. the timing was impeccable. yeah, we're on pace to have our biggest month ever.

>> i want to talk about your business now. you're a sunglasses maker. you were independent brand. you were bought by a larger italian company that is publicly traded. i want to talk about your sourcing, though. how long does it take to make a pair of sunglasses. 1.2 million. that was all preorders. how long will it take you to fulfill your orders. >> our first order was for 16,000 unit. we sold 72,000. so, we are working around the clock to get these things filled as much as possible. but we're looking for a december delivery on these preorders right now. so, be patient but we're working hard to get them out the door as fast as possible. >> it's about a four-month lead time is what you're spelling out. how does that compare to the height of the pandemic? what does that tell you about what's going on when it comes to manufacturing in china. >> you know, before -- during the pandemic it was extremely hard to manufacture. factories were shutting down, very little labor. costs were really high. so materials were hard to get. and then you add in the transportation issues with

shipping and planes. so it was a lot harder back then. honestly, this has stabilized a lot more post covid. to be honest, coach prime, there's nothing in the world that could have prepared us for this. so we're doing everything we can to get these things out the door as fast as possible. but we are looking at opportunities to bring manufacturing closer to shore as well just to give us more -- >> give us a sense of what it's like being direct to consumer brand. making most of your sales direct to consumer through e-commerce. who are you using? fedex, u.p.s. and what's that been like as we see both of those companies in a transformation right now, and also getting over some labor issues and talking about u.p.s.? >> we actually -- we use usps. we try to make our stuff as light and easy to ship as possible. we do fedex as well, but right now e-commerce is really, really tough. it's in a big slump in the last five years. the sentiment around ecom has been low.

so brands that aren't willing to take big risk and try things in a different way, it's harder to grow right now. so, i think that's why this coach prime thing is so special, it's so out of the box and big than what most brands are doing. >> it's big here in the u.s. i have to be honest. i'm disappointed you didn't have the shades on. everybody is talking about these now. >> i don't have a pair. i don't have -- >> you can't get a pair. >> i don't have a pair myself. i don't have a pair. they're not made right now. it's crazy. >> talk about a tough supply chain. thank you for coming on. let's stay in touch. thanks for being on. >> you got it, man. coming up on "worldwide exchange," day four of historic autoworkers strike. members say, they will hold out for more. our phil lebeau is back on the picket lines now in toledo, ohio. phil? >> reporter: good morning, frank. you talk about improving the offers. that's what the big three have been doing. is it enough to get the uaw to

say, maybe we're close to settling? nowhere close. we'll talk about the latest details when "worldwide exchange" returns. welcome to ameriprise. i'm sam morrison. my brother max recommended you. so my best friend sophie says you've been a huge help. at ameriprise financial, more than 9 out of 10 of our clients are likely to recommend us. our neighbors, the garcias, love working with you. because the advice we give is personalized, hey, john reese, jr. how's your father doing? to help reach your goals with confidence. my sister has told me so much about you. that's why it's more than advice worth listening to. it's advice worth talking about. ameriprise financial.

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right around 5:30 a.m. in the new york city. there's a lot more ahead on "worldwide exchange." here is what's still on deck. investors getting ready for a busy trading week. top of mind, federal reserve and the latest rate decision. futures are pointing to a bit of a muted start. the biden administration looks to step into the united

autoworkers strike, negotiations between the union and the big three. they just remain at a standstill. our phil lebeau is on the ground with the very latest. and with less than two weeks to go to avoid a potential government shutdown, house speaker kevin mccarthy, he lays out his terms to get a deal done. it is monday, september 18th, and you're watching "worldwide exchange" right here on cnbc. ♪ good morning. welcome back to "worldwide exchange." let's get you ready to start this day as always. we pick up the half an hour with a check on u.s. stock futures with the dow riding a three-session win streak. looks like right now the dow moving into negative territory as we have done this show before, it was just fractionally higher. the s&p and nasdaq fractionally higher right now. something we'll continue to watch. we're also looking a the bond market. we begin with the benchmark 10-year. that yield at 3.34. highest level since 2007.

the 2-year, 5.05. energy market, oil winning a three-week win streak, hovering to highest level in 11 months. wti at 91.34, moving higher in the premarket. up over half a percent. brent crude moving higher, almost at half a percent higher. gasoline, moving higher. aaa, the average price for a gallon of regular, just north of 3.88 a gallon, up from 3.67 just a year ago. something all of us drivers here in the u.s. are paying attention to. but, it's not just gasoline prices that are making their way higher. we're talking diesel fuel prices also surging in recent weeks. right now sitting at 4.47 a gallon as is jet fuel up nearly 40% since may. taking together from travel to e-commerce, it all means some hard times could be coming for consumers. joining me now is francisco blanch, bank of america global research commodity and derivative strategist.

good morning. thank you for being here. >> hey, frank. great to see you again. thanks for having me. >> we're seeing the momentum when it comes to the energy markets. give us a sense, are we headed towards $100 a gallon -- a barrel gas -- oil prices. excuse me. conflating oil and gas right now. $100 a barrel oil prices? >> frank, i think there's a good chance that we will get higher from here. remember, that the main driver of the oil market is supply, supply, supply. we have had saudi cuts now for about 12 months running. remember the saudis started to cut production at around $100 -- $95 a barrel in september last year. so that's right around where we are right now in terms of brent prices. the russians joined the saudis last three months cutting production as well which in turn has triggered a rally in the

price of russian oil. and then to top that off, as you mentioned, we are having bottlenecks on the refining front because these are 100-year-old factories, essentially, that nobody wants to maintain or upkeep. they're being run down as cash cows given the fact that there's an expectationthat the electric vehicle will push fuel demand lower for of course the next ten years. so, that's where we have today. we have refinery bottlenecks, saudi and russia cutting production on a combined basis. that's triggered this run-up in both crude oil but also in the prices of transportation fuels. >> francisco, you laid out a number of macro factors i think a lot of inforvestors are aware. brent rised in the second half of the year. why isn't that priced? why does it still have the potential to move oil prices higher? >> well, frank, the big story has been for quite some time the

the fact that opec wasn't particularly happy with the prices they were getting but also i think what's new is russia joining to cut production. for much of the past year, the price cap situation, the price cap schemed by the u.s. treasury worked well to sent vise volumes over price. that deprived a lot of revenue to the russian treasury which in turn has been struggling to pay for war effort they have running in ukraine. so, they have changed tactic. now they're hoping to maximize volume. we saw it in gas last year and now we're seeing it. >> last night you put out a note citing basically china blues right now. in your mind, production or excuse me, consumption in china is not as high as it's supposed to be. how big of a factor will china be in the oil story for the rest of year? >> i think it will be a big

story still. but remember, even though china is not doing well because the real estate sector is very weak because you have a weak industry onthe back of the trade war, you also have a relatively thriving services sector. you have the number of flights picking up quickly in china. people are spending more money on leisure, hospitality. they may not be spending money on big ticket items but the services sector. and also seeing stimulus across a number of sectors in the government can't control like, for example, transmission lines, rail stations and that kind of thing. so, china is not great but it's not terrible when you look at the demand for oil which is driven by services. >> francisco blanch, great to have you as always. thank you very much. >> thank you. time for a check on top corporate stories. bertha coombs is here with those. good morning again. >> hey, good morning, frank. house speaker kevin mccarthy is

laying out his terms for a deal to avoid a government shutdown with less than two weeks to get an agreement done. the proposal which would fund the government, for about a month, demands an 8% spending cut for domestic agencies with exceptions for military and veterans funding and resuming construction of the southern border wall. those demands would likely not be accepted by the democrat led senate. a house vote on the measure is slated for thursday. goldman sachs says the fed may be in a holding pattern on rate hikes, at least for the near term. new note over the weekend the bank's strategist said the fed likely will not raise rates during the october 31st meeting. goldman adds it expects plot to show near majority of members expecting one more rate hike if only to preserve flexibility for

now. softbank is reportedly looking for deals in the artificial intelligence space, including a possible investment in open a.i. according to the financial times, softbank founder and ceo ma is a owe shi sun is looking to invest tens of billions of dollars in the space. softbank could look to reach a broad strategic partnership with open a.i. and ma is a san speaks everyday to open a.i. ceo sam altman. almost everyday, frank. that's quite a bromance. >> what a way to put it. our bertha coombs with the headlines. thank you very much. turning now to the united autoworkers strike against the big three u.s. automakers now in its fourth day with no immediate resolution in sight. the uaw resumed talks with general motors yesterday and is scheduled to do the same with ford and stellantis today.

appearing on cbs "face the nation" uaw president shawn fain says the union is willing to do whatever they have to do including walking out at more plants. >> we don't get better offers and down to taking care of the member's needs, we'll amp this thing up even more. >> let's get out to our phil lebeau at the stellantis plant in toledo, ohio. phil, good morning. what's the latest there? >> reporter: frank, we have about two dozen picketers outside the jeep plant here where they build the gladiator as well as the wrangler. here is an update in terms of where things stand. you mention that stellantis and ford representatives will be meeting with the uaw today. stellantis over the weekend raised its offer in terms of wage increase for the uaw members, bumping it up to 21%. increasingly, the idea of restoring defined benefit pensions or increasing retiree pay that is in focus. not sure the automakers will go that far in terms of restoring the pensions.

then there's the question of dropping wage tiers. all of that is getting some attention, but the most attention is focussed on the pay gap -- the proposal pay gap, if you will. the uaw wants 40% over 4.5 years. you see stellantis and ford offering 21%, gm offering 20%. take a look at shares of ford, uaw called the talks with ford reasonably productive. we will see ford and stellantis going back to the bargaining table today with the uaw. speaking of stellantis, unique issue here, frank, is the fact that they have idled their production plant in belvedere, illinois, just outside of rockford. it's been idled since february. well, initially they talked about bringing it back, bringing production back, then they pulled it off. that has raised the ire with the uaw. that is unique to stellantis. the uaw wants production restored at that plant, whether or not that ultimately happens, that is a key hurdle that is

part of the stellantis uaw negotiations. frank? >> so phil, we're also hearing that the white house is set to get involved directly. what are you hearing on that front? >> reporter: they're going to be sending a team here some time early this week. now, they're not going to be mediating. they were careful to say that over the weekend that they're not mediating between the uaw and the autoworkers. but they've been in touch with both sides. what they would like to see is greater dialogue and some movement toward a resolution. i'm not sure that's going to happen. but certainly the white house does not want to see this drag on as potentially as long as it could. >> all right. our phil lebeau live in toledo, ohio, very latest on this story. phil, thank you very much. more now about the economic impact of the uaw strike, especially if it turns from days into weeks. and then expands to more plants. mike bresan, head of economic research at moodies. good morning. thank you for being here. >> thank you for having me, frank. >> we know that striking at all

big three is unprecedented. right now targeted actions. fraction of the overall 140,000 workers are striking right now. is this creating a broader economic impact right now with these targeted strikes? >> no. it's not. the fact that it's a staggered strike rather than all three and all workers walking off at once, it means that it's going to be much more limited than we original expect if all three had shut down. >> if we see a full-blown strike about 140,000 workers, one estimate is that that would have a $5 billion negative impact in the first ten days. where will we as consumers see the big impact? also, would this potentially impact inflation, something that the fed is watching closely? >> yeah. that's an important point. yeah, so the first place we may see change for consumers, used vehicle prices. used vehicle prices are much more sensitive to changes in the number of vehicles on the market. and when there's less new vehicles on the market, that

means less used vehicles. less choice out there. the new vehicle market, that will be a little delayed in terms of prices. >> what about the broader inflation story? so you're saying that used vehicle prices will rise. will we see inflation any other areas outside of that, or does that trigger inflation in other areas? >> we don't expect it to trigger inflation in other areas. and we do expect the fed to see through what is a short-term story, short term in terms of number of months that it happens. and prices should come back down as production ramps back up once an agreement is reached. >> long term, if we continue to see this labor disruption, whether it's targeted or full blown strike, what does it mean for these automakers? what does it mean for this transition to evs and the broader economy to have this kind of disruption, many investors worried about wage inflation. is that something that investors should be mindful of going forward? >> so there hasn't been a focus of our research. our research is mainly focussed on the impact to the economy. we expect that this is having

about $45 million per day impact on the economy that's current rates. if it goes up to all 140,000, that could be almost $450 million per day to the u.s. economy. and so, investors should be worried about that impact to the economy, but it's not going to put us into a full-blown recession. our main concern is the other things going on. we talked about oil prices. we also talked about government shutdown. so all of these things combining along with student loan repayments starting, that all risks adding to each other to be able to maybe start a recession. however, our thought is that this drag isn't going to be enough. but it does increase the risk substantially to the economic recovery. >> really that's interesting, mike. i heard a lot of people talk about it hitting gdp. you're saying it would raise recession concerns. spell out how that all happens there. again, you're saying it's not having a big impact right now. you even said the fed would see it as a short-term issue. how does it then potentially

trigger a recession. >> so if you have all these things happening at once, oil start to go over $100, gas prices above $4, that hits consumer sentiment, same time that student loan payments rehit which brings back spending and then you have the strike, which we see could have as much of an impact as .3% on gdp and the quarter. you have all these things combining at once, we could see consumer confidence decrease, which could lead to decrease in spending. >> all right. mike bresan from moody's thank you for your time and insight. >> thank you for having me. coming up on "worldwide exchange," new legal woes for evergrand, sending shock waves across the overseas markets. first, we have your top trending stories. drew berry more hitting pause on her talk show once again following criticism over her decision to resume production during the hollywood strikes. the announcement comes just one week after she said she would be bringing the show back. several actors and organizations calling on her to reconsider.

$250 million for a manhattan penthouse proving to be too much for even the most high-end home buyers. the sticker price for the most expensive home in the u.s. dropping by 22% to only 195 million as demand for ultra luxury condos along new york city's billionaire's row continues to shrink. and no sticker shock for those old vhs tape. classic movies like e.t. and the lion king sells for thousands of dollars ebay with the goonies. $125,000. much more "worldwide exchange" coming back in just a moment. the first law of thermodynamics states that energy cannot be created or destroyed. (♪♪) but it can be passed on to the next generation. (♪♪)

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welcome to "worldwide exchange." time now for your morning call. we'll begin with deutsche bank upgrading price target on micron moving to a buy at $85 a share. deutsche says the inflecting fundamentals for the company should mark the start of an up cycle for the chip maker. we have another rating and price target hike. this time from doordash moving to buy. carrying out a deep dive across all of doordash's key metrics and says it feels confident that gross order value growth should outperform guidance and street expectations in the second half of the year. doordash up almost 3% in the premarket. hsbc giving lululemon a buy rating and $500 price target. the bank says it is convinced the brand can continue to grow and dominate its niche while it

remains in the early innings of its own growth story. shares of lululemon up almost 1% in the premarket. and time now for your global briefing. we're going to begin with shares of evergrande team members of its wealth management unit. reports say the move suggests new investigation into the embattled chinese property developer. the stock tumbling 25% before recovering most of the losses. three chinese firms led by a.i. software company looking to raise up to $280 million combined through ipo's launch today in hong kong. regulatory filings show it would look to account for 144 million of that total amount. the company is on the white house list barring u.s. suppliers from shipping tech to it. and shares of s4 capital plunging before cutting annual forecast for the second time in two months. the group saying it fears a potential recession is making clients a bit more cautious.

s4 also reporting a significantly narrow first half operating loss. coming up here on "worldwide exchange," we have the one word that every investor needs to know today. plus, the beaten down pharma giant that your next guest says he is finding opportunity in. we'll give you that name coming up. cnbc is celebrating hispanic heritage, sharing the stories of influential business leaders with you. here is four seasons president and ceo alejandro. ♪ >> to me it's very important to celebrate hispanic heritage month because ultimately diversity matters and matters a lot. this cannot be the flavor of the month. ultimately it's something that we have to do on a daily basis. and we as leaders have a responsibility to lead by example. and for me, it's not only the right thing to do. driving diversity and inclusion

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♪ welcome back to "worldwide exchange." time now for your wex wrap-up. we begin with shawn fain rejecting a 21% pay boost offer from stellantis, calling it and other offers from ford and gm a no go as the union's first-ever strike against detroit's big three enters its fourth day. meanwhile, the biden administration is set to send a team this week to detroit. klaviyo is raising its target for its ipo to $550 million. according to bloomberg, it is now set to price shares between 27 and $29, up from 25 to 27.

that ipo coming on the heels of arms solid trading debut last week. shares facing a bit of pressure this morning but up 18.5% in the first two days. its market cap hovering around $62 billion. work capital's $9.6 billion deal to buy subway is hitting a regulatory hurdle. sources tell the new york post that the ftc and its officials are taking a closer look at the deal and possible anti-trust complications. and turkey's president is asking elon musk to build a tesla factory in that country. tesla factory in that country. state-own media reporting that president erdogan made the request to musk during a meeting in new york city with elon musk apparently saying turkey was among the most important candidates for the next tesla factory. here is what to watch in the week ahead. the ipo rush picking back up with a public trading debuts of instacart and klaviyo expected. and central bank's top of investors minds with the fed, the bank of england and the bank

of japan all of them set to hand down their latest policy decisions. with that fed rate decision on tap, your next guest says he believes the central bank is in its final stages of its rate hiking cycle. the chief investment officer good morning, david. >> good morning. >> so, you feel like we're in the final cycles, but it doesn't seem like the market quite agrees. we're having a down september right now. and all three of the major indexes trading below the 50 day moving average. why aren't we seeing better stock performance at the end of the hiking cycle? >> tloesz do with the fed and more to do with a lot of things going on right now. you're confronting the hollywood strike. just started the new automobile strike. and uncertainty about a government shutdown in the next month. so, there are a lot of things going on. and your inflation numbers were hotter than expected last week. so we think that all taken together has slowed the market down. we don't think it derails it, but we do expect volatility.

we think it will be a pause that refreshes. but we think the fed, whether they're done or almost done, they're definitely in the eighth or ninth inning for sure. >> a lot of people in the market, we're coming up on a pause during the decision this week. you say it will be a refresh. with that in mind, what's your wex word of the day? >> the wex word of the day is head winds. you're just confronting a lot of very short-term issues. that's going to slow the market down. that's perfectly normal. but we do have a number of head winds that we're confronting right now. led by the strike. >> okay. if we're going to get a pause and a refresh, what areas of market do you think will start to work better as part of this refresh and the pause? >> technology started the year off white hot. it has slowed down since june. a lot of areas started very poorly have started to pick up in a meaningful way. we think that will continue. we look at the stock that has not done a lot this year but good franchises, long-term outlooks as the next opportunity. so we like healthcare is one we

think will do well. utilities have done miserably, financials, same thing. >> so david, we want to get to your pick. speaking of opportunity. we showed our mystery chart. it's pfizer. so you're saying pfizer is a company that you would buy today. you gave us some other picks as well. and it's all based on valuation. so pfizer, for example, trading at about 11, 12 times forward earnings. why is that company so attractive even though it's down 33% year to date? >> well, the fact that it's down 35% has made it that attractive. it's a good, long-term business. it sells at 10 times earnings. we think the earnings will grow over the next three to five years modestly but they will grow to have a 4.8% dividend yield. getting paid a lot of money while you're waiting. management said they will continue to grow the dividends actually at an accelerating rate. so it's a good business. not a great business, but a good business at a great price. >> all right. so you're all about valuation. so you also talked about

utilities being attractive right now. one of your picks next era energy. but you look at the forward p, 21 forward earnings for utility. explain your thesis there. >> we like the overall utility group. nextera is one of the largest new energy plays out there. you're paying a little more for it. folks that know us we like things in the teens. generally sells 25 times earnings at a premium to the group. smallest premium to the group. they also had a very significant amount of insider buying. we think you're getting a great business at a good price and we think if you have a 12-month time horizon this is a really good entry point. not as cheap as we normally like but a very good business and very attractive entry point. >> i expect more choppiness and volatility today despite futures in the green. >> we are expecting choppiness

the next week and two weeks as the market comes to terms with the strike and possible government shutdown. >> thank you very much, david katz. quick look at futures right now, a bit mixed. the dow basically flat. the other two fractionally higher. squawk box is coming up next. thank you for watching. thank the gods. don't thank them too soon. kick pain in the aspercreme. personalized financial advice from ameriprise can do more than help you reach your goals. i can make this work. it can help you reach them with confidence. no wonder more than 9 out of 10 of our clients are likely to recommend us. ameriprise financial. advice worth talking about. the power goes out and we still have wifi are likely to recommend us. to do our homework. and that's a good thing? great in my book! who are you? no power? no problem. introducing storm-ready wifi. now you can stay reliably connected through power outages with unlimited cellular data

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♪ good morning. not much progress over the weekend between automakers and striking uaw members. now the white house is sending a team to detroit to try to help resolve the strike. and on this week's agenda, the fed's september meeting. going to tell you what to expect on interest rates and maybe more importantly for guidance for the rest of the year. plus, government shutdown looming once again. two factions of house republicans, though, reaching a deal on a short-term funding bill, but it faces an uphill battle.

in this case in the senate, it's monday, september 18th, 2023. i told you monday would come quickly. i told you that on friday. "squawk box" begins right now. ♪ good morning, everybody. welcome to "squawk box" right here on cnbc. we're live from the nasdaq market site in times square. i'm becky quick along with joe kernen and andrew ross sorkin. it's monday. it's raining in new york city. you've got the u.n. here. there's no chance anybody is getting anywhere if you're trying to get through traffic this week. yeah. that's what mondays will do to you. well, let's check out what's happening with u.s. equity futures. >> nothing. >> mostly green arrows. >> nothing. >> but the dow giving back what had been green arrows five minutes ago. s&