where could reinvention take your business? accenture. let there be change. hi, everybody. welcome to "power lunch." alongside kelly evans, i'm tyler mathisen. byron ellison, we will talk to about the status of the disney bid and why he thinking traditional media outlets still have value. what's the real state of the travel industry? how about the post-pandemic boom, is it still holding over?

international demand still strong? wee we'll check in with that. >> looking forward to both of those interviews. this morning as optimism has faded as bond yields have turned higher once against. the nasdaq, the s&p down about half a percent. we were up more than 31%. we're down nearly 6%, and the key number we're watching, call that, yes, correction territory. the question is, why? what's changed? for more we turn to michael santoli. mike, maybe i mention treasury refunding in early august as a possible catalyst. >> obviously it's part of the

mix. if i boil it down among the asset markets that are testing the they areholds, it's not just a level, but a somewhat disorderly sell-off in treasuries that's also non-fundamental. yields going up for, quote, the wrong reasons all of that stuff is in the mix, with the market entering august, where where you had soft landing consensus got pretty cozy. then when you have energy and the dollar also closing off some of the escape routes, so to speak, i think that's why we're here. there's some mechanical complications, too, you see a self-fulfilling tactical trading to the down side, as we get into

the end of september. >> mike, stay right there as we continue our conversation. our next guest says the complacency trade is over. let's brick in mike bailey, director of research with tbb capital partners. mike bailey, let me start with you. was last week on wednesday when the federal reserve chair talked about basically higher for longer, was that really a marker in the trail that has led to this week's and last week's sell-off?

>> a lot of investors were staring at each other, saying, it's been okay, what's next? and then chair powell says higher for longer, and that's it. >> would you rae be in short-term treasuries? >> we want to be diversified. i've been resisting that temptation. you can certainly use some of these opportunities to pick up long-term bonds and get 6% yields for a long time. at some point yields will will go back down.

>> mike, i thought you perfectly captured the field. the question is, what is the pain point? what stops this now is everybody on one side of the trade so the vix can move? >> i don't know if it's about a level. i know a lot of folks are starting to raise expectations for how high yield can go. pce inflation is somehow a tether. oil prices somehow have a longer effect i do think it feels as if we're stretching this thing pretty tight. it's about the magnitude of climb in the s&p we had in march, in response to the regional bank mini-crisis, you might call it in retrospect. we're getting a lot of this is

positions built, whether it is the data on friday or something else, i do think that will be the test. what's the character of the bounce we ultimately get out of this. >> michael bailey, i want to get to some of your picks. i'm curious, amazon? >> the question is, do you like tech? yes, but we like tech names with growth trading at a discount. that's key for us. so one of the big-tech names with a significant -- amazon has built on this massive logistics business. it was too big, now they're filling it up. what happens over the holiday season? edge credibility profit growth. we're looking into that. i think they have a much better

opportunity to do that, frankly compared to some of the other ben benefits. >> antitrust concerns don't bother you? >> certainly that is a risk factor. we saw amazon underperform when the news came out. when we look at a massive, massive discount it'strading at, it's baking in a lot of problems. a lot can go wrong, but it could be something that the ftc, over 170 pages, et cetera, suggests that these things play out over years. we would expect some type of recovery from amazon, but certainly something worth watching. a pair of mikes beats a pair of jacks anytime. we appreciate it. is this you talking? i didn't mean to step on you.

soiv. this morning on "squawk box," minneapolis fed president kashkari said he doesn't thing that they can can force a rate hike on their own. i heard it was $93, but i didn't believe it. pippa, why now? >> we finally have reached the november 2022 level that was acting as a distance, now the highest point back to august 2022. this is all about inventories out of curbing, oklahoma, the key energy storage hub, and delivery for the contract. so we got data from eia that shows inventories are now at the lowest there in 14 months, just around 22 million barrels. that's important. once they get until 20 million, we start to approach tank

bottoms. that's when we get quality issues, and pressures with the oil. think about water sediment going to the bottom. now there's more than a $10 spread between the december '23 and december '24 contract. so basically, combined with higher rates s. why would you want to store anything? all about oil -- >> you sell it, right? >> exactly. there is a $10 spread. that's a widely watch spread. nobody wants to store, so that is would we're seeing lower inventories. that's what pressuring the contract today. >> so if we drop below that 20 million barrel that you mentioned, you would expect oil to move up in price? >> exactly. we probably won't drop below that level because there were some factors that kick in. you need a certain threshold to

blend your grates you know, major companies have an interest to keep it at a certain level. curbing is no longer as important as it used to be, because we built that pipeline, but that's where the contract for crude is priced. >> pippa, thank you very much. coming up, we will talk to the man making a $10 billion bid for abc. what is the status of the talks with disney? byron allen will join us next. jenner rack is higher today, as investors like the guidance. next-era energy, selling florida city gas to chesapeake, also reducing growth-rate expectations. we will be right back.

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check out shares of disney, around the pandemic low. the company going through major changes that may including a sale of assets. joining us is a man who made a $10 billion bit for those assets. julia? >> thanks so much, tyler.

thanks for joining me. you're bidding $10 billion for abc, national geographic, fx and some of these local networks. wile purchase they networks? and why at this price? >> listen, this is a phenomenal asset. if disney wants to sell it, we wanted to make it clear we want to bay it. there's -- the real commodity is can you get the deal approved? by far we are the best ones to get the deal approved. i don't think washington, d.c. will roll out the red capital for them. i don't think -- i don't think d.c. will be supportive of private equity and hedge funds buying this type of asset.

it's very important asset. it's local news, national news,le 0% of americans get their news, so they'll be careful in who they approve. it's got to be an owner/operator like me. i've invested a little over a billion buying absence, nbc, cbs, and fox affiliates around the country. local news is very important. when the pandemic happened, in some of our cases or local television stations were getting 90% of the share. so this is not about cash. this is not about capital. that's the easy part. >> when the new first broke you were making this offer and there was a $10 billion number, some said you would have to raise the capital. can you tell us about your financing plan?

>> the hard part is getting this deal done, if they choose to sell it. now, they're not ready to sell it. bob has said they're not ready. bob is really excellent at what he does. he's the best. he's brought in some excellent consultants, and they just said, look, we're not ready. it's something that's a thought. they made that announcement here, that he says he doesn't see it as core. n nextar said they had interest. now, they may never be ready. they may say, hey, we're not ready, we changed their minds. if they are serious about doing it and they get there, we're ready to go. >> so, you also made a bid for

b.e.t., and then paramount decided not to sell. are there other assets you're interested in? >> i think other assets will start to become available. look, i started this company 30 years ago from my dining room table, one of the largest prieferly held media companies. it's a marathon, not a sprint. we'll have our opportunity. folks are going to need to sell. some folks have to sell so they can fund their streaming initiatives. we believe in linear and streaming. if you are willing to sell your linear assets, we are there. these are 100-year-old legacy companies having to reinvent themselves so, this is something that's much needed. folks need to shed their assets that are flat to declining so they can go and invest in assets that are growing. you know, we're a firm believer in operators matter.

when i bought the weather channel five years ago, i bought it from a couple private equity firms who, you know, they thought they had maxed it and this was declining. since then we've pushed up and we're continuing to push it up double digits. this is the type of opportunities that's perfect for us, if they make it available. >> byron, tyler mathisen here. it sounds like -- correct me if i'm wrong here -- one of the central assets you have are the tv stations, because you own tv stations. but you point out that in those areas, and also i assume in abc's network, you have properties that are flat to declining. why are you so interested in traditional stations at a time when so many other people are not interested in those stations? and how do you think you can take those assets and turn them -- you say you've down it

before. what is the real tactics you would use to turn them from flat to declining enterprises into positive growth drivers? >> well, listen, if you buy the station, you want the network. you don't want to bifurcate that. you need those local tv stations. that's why disney was able to resolve their negotiation with charter and spectrum. you need that local news and sports. the local stations carry the true religion of america, nfl football. we just did an 11-year deal with the nfl, paying them $10 billion a year for 11 consecutive years, $110 billion. i'm a firm believer that americans are never going to wake up and say i don't want local news, i don't want college football, i don't want nba basketball and i don't want nfl football. i'm highly confident that these

local television stations will have a great deal of value well into the next decade. i think there are things we can do, growing this company as an independent -- i'm one of the few owner/operators. so, i've had to learn how to produce things very officially, and i've taken certain assets and spend less to achieve more. i think we can do quite well, if given the opportunity to buy an asset like this, if they choose to sell it. >> reporter: one of key pressures is the strike. that means not a lot of new primetime television. in the scripted category on tv this fall. we just had the writers resolved their strike. the screen actors guild is still on strike. how do you see a.i. impacting your business? how are you already using it right now?

>>. >> when i bought the weather channel, they had at the end of the new owner's presentation, you known something like a fully distributed broadcast network that using artificial intelligence, to curate, aggregate and extreme super-hyper news, geofence to the users' zip code. i said, wow. they said don't get excited. i said, why? >> because it loses $25 million, and you may want to shut it down. i repositioned the asset. when i looked at the asset, it reminded me of a conversation i had with reed hastings, a dinner with him before this presentation was made to me. i asked reed, what keeps you up at night? >> he accepted, byron, netflix -- i'm sorry, reed, what keeps you up at night?

he said, youtube. >> i said, youtube? he said, if youtube starts deliver content for free, how do i get people to pay me $15 a month. i thought, there it is. i'm going to put together premium content and make it free, the world's favorite word. i don't think julia want to pay $4.99 for local now. and we hut over 675 local news, we did a deal, pbs, we're on track to have over 1200 local networks. i have to tell you, we have seen the revenue go up 35-plus in a very short period of time with the simple concept of local news, content and premium content for free. we're chasing youtube. we're chasing almost 30 billion a year in advertising.

that's what we're doing with local now. certainly a lot of different things at play. we're so grateful to have your perspective on this big offer you just made. we'll see how it plays out. hopefully you can tell you as the negotiations continuing. byron allen, thank you for joining us here at the code conference. >> thank you to both julia boorstin and byron allen. coming up, the ceo. io joins us to talk about what he's seeing in the travel industry. >> and what about the hotel defaults? stay with us here on "power lunch."

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uaw planning to expand the strike. phil lebeau has the details. >> reporter: they could expand it. we'll find out for sure on friday, according to a source familiar with the uaw's thought process. sean fain will hold a facebook live presentation friday morning, just as he did last week, on 10:00 a.m. eastern time, if there's not significant process. if he holds that facebook live, and if he does say we're expanding the strikes, those new strikes would start at noon on friday. same thing we saw last friday. so it's a repeat pattern, tyler.

they're thinking we want to see their new offers. we do know, for example, general motors will be meeting with negotiators from the uaw later this afternoon in detroit. there are talks, they continue. the question is whether or not the progress is enough to keep sean fain from saying we're going to hold more strikes starting at noon on friday. >> thank you, phil. you know, rick, every time we check in, it seems to be going higher. it's just remarkable to watch this play out all day. >> oh, absolutely. the high print today has been right around that 460 mark with regard -- yeah, 464, right on the nose, it looks like, kelly. we're getting very close, in my opinion to levels that i've been saying are important

technically, right in the 460s. the anniversary date of the high used on the ten, nearly 16% back in 1981, it was the end of september, so anniversary dates are very significant. you really need to pay attention here. let's start at the beginning, real quickly, kelly. it's hovering at two levels we haven't seen since 2006. but, if you look at 10s and 30s on one chart, can you see the difference. they're aiming up. it will be a fresh 16-year high-yield close for 10s, a fresh 12 1/2 year close for 30s. hey, let's and in -- add in bunds? the strike could figure in big time, because the yen is getting weaker and weaker, which makes their cars cheaper and cheaper.

we're on place for an 11-month high close, but only a smidge away from levels we haven't seen in 33 years going back to 1990 and that dollar index is on pace for the sixth consecutive my close. every time it seems to be moving higher in yield, but i have a field that the end of september will hold some reversal surprises. >> you would hope so after what we've seen. thank you, rick. back over to pippa for the cnbc news update. michigan state's football coach has officially fires. they suspended coach tucker earlier, and last week notified him -- a rape survives and assault speaker accused the coach of sexual harassment. the firing comes less than two years after he signed a ten-year

extension. six union people from portugal took 43 european governments to court today. if the european court of human rights upholds the complaints, the governments may be forced to cut carbon dioxide emissions. bruce aspirin steen announced he won't perform for the rest of the year as he deals with the stomach ulcer, but vowed to be back on stage in the new year. time for the next stop on our powerhouse road trip. a couple hot but smaller markets. today we head to the big d, asthe fourth largest market in the country, by the way, where sales are slowing, prices falling just a bit.

we'll be right back and take you to dallas.

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welcome back. is the post-summer slowdown setting in for some of the travel names? marriott's ceo tony capuano joins us, and seema mody who follows this beat for us as

well. >> thank you, tyler. tony, welcome to "power lunch." >> hi, seema. night to be back. >> you had your analyst day today, and revealed some bullish three-year targets, including expansion of 270,000 rooms over the next three years. is that irrespective of where interest rates land? >> i think so. there is certainly some challenges for new construction, particularly here at home as well as in europe, but we've got a couple hundred thousand rooms under construction in the pipeline today, which should get delivered during the period we presented. during the second quarter, we talked about 6.4 to 6.7% under growth for 2023, and we reaffirmed those numbers today. when we wake up on january 1st of '24, we will have already

delivered the first hundred thousand of those rooms that make up that three-year development plan. >> overall the response has been pretty positive, but there certainly has been active debate around the health of the consumers as we see credit card dlin waneses rise, gas prices moving higher. what are you seeing, tony? is there signs of a trade down? >> seema, that's a great question. we haven't seen it yet. you know in the second quarter, we saw global rev par improve of about 13.5%. based on that performance we guided 6% to 8% rev par growth, and we awe announced today 8% rev par growth. two months ago 9%.

so we're really not seeing it yet. to the extend we see a bit of trade down, it's one of the advantages of having such a broad portfolio. one of the things we've been talking about recently was with the acquisition of city express hotels in mexico. we now have a large and growing portfolio in the mid scale tier, so we think our portfolio breadth could face that. >> any signs of returning to 2019 levels this year, tony? >> well, we're watching september closely. obviously the fall, after labor day, should provide some really important clues. we'll look forward to talking about during the third quarter call. what i can tell you is we sort of break up business travel into two categories -- small and medium size business, and then larger multi-nationals.

as we talked about last quarter, the business travel was already more than fully recovered to pre-pandemic levels back in 2022. we continue to see great strength in that segment. we're seeing slower al bet it steady recovery with the big multi-nationals, but we'll be watching that closely through the fall. can you talk about the higher rates. i have to imagine a lot of the properties, maybe some of the your proprietors are financed with a lot of debt. is that debt at higher levels? how does that affect their yields? their profitability? >> certainly a tougher interest rate environment puts additional pressure on yields. le one thing i would tell you is we have a terrific and brought group of owners and franchisees, most of whom have been investing in the hospitality sector for

years, if not decades. i think they understand the cyclicality of interest rates. they're not trying to time the market. they're not investing for yields for a quarter or two. in many cases they're owning these assets for years, sometimes decades, but i think most of them have a longer-term investment horizon. >> tony, how should we be worried about a possible government shutdown? >> well, to state the obvious, a government shutdown is impactful to the broader economy. it's certainly impactful to travel. u.s. travel association came out earlier this week indicating that it could impact daily u.s. travel industry spend by as much as $140 million a day, number one. number two, as you point out, it

could have a real impact on wait times at airports and the like. then, i think third, more broadly, it would be one more negative on consumer confidence, which is obviously something that is materially impactful to our business and to the sector more broadly. there's a lot happening. tony, we really appreciate you sitting down with us today and getting your outlook. >> thank you for having me. nice to see you all. right in the middle of the area we're concerned about, the consumer, so much more. seema, thank you for bringing that to us. speaking of which, target is 40% off the recent highs. and now the company is cracking down on organize the retail crime. we'll look at the fallout, next.

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not a problem for us at costco. he said if there are some increases because of shrinking, it might be because of the self-check out. they have big packages, it might be harder to run out with it, and you have to a member to effectively go out, shop and check out. to your point, target a little -- maybe about 24 hours ago did announce they are closing nine stores in four different areas of the country. they said we did what we could, to improve security, and we can't get a handle on it any further, it's too dangerous, and so they are closing the stores, including one here in new york city. what's interesting about that location, in the point of this discussion is it's also in the

same flex with a costco. they are, again, not having the same issues that target is. >> it's interesting, many of the stores, it seems to me, these will have profound effects i would think on the surrounding community and the people who live there, who have come to depend on those stores for groceries or staples, or other things. >> exactly. in the release that target put out, they said, look, there are 150 target locations collectively in the area of these nine stores that are closing, but alsoing westbound site. to your point, we know when a retailer closes stores, it's almost impossibility to recoup all of those sales at another location and/or online. people go to their stores, maybe on the way from home to work or to school, and if he lose that location, they're likely to fill

in that need with another retail er when asked about what they would do, would they close stores, they said that's more or less the last resort. we're doing everything we did first. tyler, target or otherwise that have had they problems and all the merchandise is locked up at that particular location we're talking about in new york city in east harlem, it's aisles and aisles of everything locked up. it's not a pleasant shopping experience for an honest shopper, either. then it sort of snowballs, because traffic appeared sales fall. >> locked up and sometimes the shelves are not as fully stocked as they used to be, maybe as part of a protective measure. >> sure. >> i wonner whether the physical lay out-of-of costcos, with one

exit with people checking your tickets, and obvious and most quickly, but there's a line of carts moving through at the time you -- as opposed to target, where there may be multiple entrances, nobody checking your tickets. i wonder if that's one reason why you don't have the grab-and-run theft you see at target. >> we've heard from retailers as best buy as at that, at limiting exit points. i know other retails, i believe it was mayy's limiting the door and exit points. from a technological or very simple point of view. >> courtney regan, thanks. we're going to where the we're going to where the stars at night ♪ feels more easy. ♪ ♪ my doc and i agreed. ♪

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welcome back. it's day three of on you powerhouse road trip. we're looking at different housing markets across the country. yesterday, we were in dayton, ohio. today we're heading to dallas, texas. number two on zillow's top 100 markets by size. prices are down 2% from last week, sales are also down about

16%. here is daniel hunt, a realtor with keller williams. welcome to "power lunch." >> thank you for having me, kelly. >> the stat that jumped out to me the most, median sales price, $401,000. so how is the market? >> yes, that's correct. the market has slowed down quite a bit. my team and my sales are down about 10%, 15%. a lot of sellers are giving really good incentives for buyers to purchase their homes. you have a lot of realtor and loan officers teaming up together to do all these can to help buy down interest rates, lower the closing costs. people are still moving here. definitely still high demand here in dallas. >> maybe i'm not right in saying most cities, but in many, many places, sellers have the upper

hand. you seem to be parenting a very different picture, one where sellers are. inflation --. i've seen a lot of different programs from suitable mortgages where people are assuming mortgages, a lot of sell are financing options, a lot of, like i say, realtors collaborating to cut commissions to do everything they can. it is a buyers' market, for sure. half a million probably goes pretty far down there. the median is $369,000, you have

a property that sold a little over asking. tell us this about this property. >> that was a very unique property. we got creative with selling that property. we added -- costs included all of the furniture. i do a lot of tours -- most of my listings i do tours on my youtube, which was able to bring in out-of-town buyers. the way we used to do things, you have to expand or machined to reach individuals maybe looking to relocate. people are looking to move to, so yeah, getting real creative with making our listings and properties more attractive to as many -- >> that one was sold with all the furniture, that i guess was purchased to stage the property? >> no. good question. that particular property was an airbnb, but the airbnb market here, and in a lot of areas, is

changing. they're not allowing rent as in a lot of residential areas. that's causing a lot of investor to sell their properties to deal with long-term tenants. we had to decide to let's sell everything to make this home -- it was staged perfectly, you know, for airbnb tenants. it worked out perfectly. >> all right. daniel, thank you very much. we appreciate it. that gives us a glimpse of what's going on in dallas. >> you're welcome. thank you for having me. powerhouse road trip continues all week long. tomorrow we're headed to albuquerque, new mexico. still ahead, a shake-up at charles schwab. shares are only fractionally lower respect as the market has made quite a -- it's down only 64 right now. "power lunch" will be right back.

(♪ music ♪) (♪ ♪)

the walking tree is said to change its entire location in pursuit of sunlight (♪ ♪) where could reinvention take your business? accenture. let there be change. it's been a tough year, with shares down 25%. indicate rooneys has new reporting. kate? >> they tell me the firm is trapped in what he describe as a cycle of uncertainty.

>> two of those sorts tell me that walt bettinger was set to step down and then silicon valley bank collapsed, delaying his plans. worcester was seen as that delay causing anxiety and uncertainty before the regional banks crisis, schwab was feeling the heat of customers reacting to higher rates. clients had been -- into higher-yielding options. employees say the crisis exacted, and the $26 billion deal was announced four years

ago. the latest was over labor date. it merger has come with one of the usual cultural clashes. employees describe the team as used to moving faster, primarily based in chicago, and then schwab's culture. moving a bit slower. no comments, though, on the ceo transition. pointing out green shoots. they say now it's the good time to play the potential rebound.

>> when you have succession hitches, like many of us know and like staying around, it can really throw off the bench, can't it? in other words, people who thought they were moving up may move out, may leave? >> that's exactly it, tyler. >> where they're going to move into, what spot might be open. i don't necessarily see where mea next opportunity is. so some of these are especially nervous. >> the higher pay sometimes make you -- can you plug deliversal for a? >> please do.

>> i'll be there tomorrow with an all-star cast of cnbc and investment talent. we're look at the landscape heading toward 2024. tomorrow in new york city. look at the dow. >> it's come back in the last hour. >> the s&p is green. if you went to lunch and came back and had a crisis plan, now you throw it out the window. >> we'll take the credit. thanks for watching "power lunch." >> "closing bell" starts right now. >> as kelly and tyler said, this is a late day turnaround. we are fighting back, as we begin the final stretch. apple really at the center of a lot of action today. it'sg