. good monday morning. welcome to another hour of "squawk on the street" from post 9 of the new york stock exchain. bill rudin on the state of commercial real estate and the current interest rate environment. plus, the succession plans at his own firm. >> nmondelez ceo discusses the quarter and whether they're seeing any ozempic impact.

>> peter orszag with what he's calling a turning point in the m&a market. first up on the markets, looks like we're going to follow through on the rally we saw last week. a 6% up week for the s&p 500. it's up 0.2 of 1%. nothing too dramatic. there are strengths in technology, staples, consumer discretionary, utility. nasdaq is up a third of 1%. bond yields are a little firmer but still way below the highs from last week. we are getting breaking news out of the fed right now. steve liesman has that for us. >> sara, good morning. fed governor lisa cook talking about financial stability in areas of concern and areas of lesser concern. she says overall asset valuations are generally higher than historic levels. lisa cook is a member of the financial stability committee. she says commercial property values are higher than fundamentals would suggest. commercial properties, for example, are high relative to

rental incomes. delinquencies for mortgage-backed securities have moved up recently. she's concerned commercial real estate prices could decline and decline sharply if delinquency rates generate selling pressure. business debt in general has at historically high levels relative to gdp and relative to assets. the measures of the ability to service that debt remain strong. limited past due, she notes, of higher rates to service debt. the household sector looks pretty resilient. there is some emerging signs, she says, of stress for households with low credit scores. we've seen that in some data. we'll get some more data on that tomorrow. banking system, overall, she calls resilient. deposit volatility which we saw this past spring, she says, has eased. hedge fund leverage remains elevated. and she's concerned about nonbank financials like money

markets open-ended funds. two more things. she said it's important to enhance resilience at large banks. she's giving a nod to basel 3 reforms that some members of the fed are in favor of. others do not support them. and finally, she says the fed should pay close attention to implications of artificial intelligence for financial stability. so, sara, i think she knew you had bill rudin coming up because there's a bunch of things that are right in his wheelhouse. >> yeah, but as far as policy, steve, any takeaways on her views? she does not talk that often. >> no, she doesn't. they does not speak about policy, just about financial stability. it is a good question, though, about how views of financial stability do affect views of monetary policy. michael barr, the vice chair for bank supervision gave a speech not too long ago saying, maybe we need to think more about financial stability when we make

monetary policy. >> it's sort of the subtext when they make the policy. >> yes. >> thank you, steve. let's dive into the commercial real estate market. cre is expecting 2023 to be the best year for manhattan deals but saying rising treasury yields predicting national office properties could see a 40% drop in value next year. as you just heard, the fed's lisa cook says she's concerned commercial real estate prices could decline sharply. joining us with his outlook for the real estate sector is rudin management ceo, bill rudin, one of the largest private real estate companies in new york. 32 properties totally nearly 16 million square feet. good to have you back on, bill. >> good morning. >> should the fed be worried about commercial real estate? >> no question she should be worried. there's about $1.5 trillion debt coming due in the next couple of years. with the higher interest rates, refinancing these loans are going to be problematic.

but with the recent drop in rates in the last couple of days, hopefully that's a sign that rates will start coming down. but there's definitely, you know, significant headwinds in the marketplace. but again, it depends on what sector. residential, multifamily still doing relatively strong. commercial, the b-class buildings have huge issues. the a buildings are doing very well, particularly in new york city. i think there was nearly 30 deals done this year above $150 a foot in terms of rents. and some even higher hitting $200. but the older buildings not amen tiesed are the areas we'll see problems. that's why we need conversions happening. the president announced a few weeks ago significant potential funding where transient-oriented, new york city, there aren't too many buildings away from mass transit

system, so that's an optimistic sign for the future. we need the city and the state to pass legislation to allow conversions to happen. we're doing a conversion with larry silverstein and metro lofts two blocks from here on 55 broad street, 600 apartments in 400,000 office -- was an office building, goldman sachs. >> so it can happen? >> it can happen. >> the bathrooms aren't in the wrong place -- >> it's not easy. you have to spend a lot of money and put the amenities in for the younger demographics, which is where this market is. we need banks to start lending again, rates to start coming down. invesco is going to put in $5 billion in terms of lending, stepping in for where the banks are restricted today. very hard to get a construction loan. >> are there metropolitan areas in this country you consider

true canaries to some of the yashz you think we might face in the next couple of years? >> well, you know, it depends, you know in each region. we really focus on new york city. and like yesterday, we were talking about the marathon, we've been the longest continuous sponsor of that race, 47 years since it went five burbur boroughs. my granddaughter handed out the troe fippfy. we watched the runners and millions of spectators. urban areas are strong. people want to be in cities, but we have to deal with the migrant issue, we have to deal with crime. crime is coming down. you and i talk about crime all the time in new york city. so there are a lot of issues we have to deal with. we're seeing a tremendous influx of people renting our apartments, wanting to be in the city. 25 apartments above $4 million sold last week.

so, there's definitely activity, even with the high interest rates. i saw before you were talking about rates coming down. so, hopefully rates will start coming down and lending will start happening again and get some liquidity back in the market. >> what's happening with rent prices? >> rent, we're strong through summer. we had an incredible july and august, which is typically slower. september, you know, i think plateaued. and i think the rents are probably at their peak at the moment. but we're a supply constraint city. that's why we need more supply in the marketplace. get an even balance of pricing for the customer. but also allow us to go get financing. so, there's still tremendous activity going on in terms of renting. in is usually an off part of the leasing season. people usually come in the spring so that, you know, for schools and finding apartments. but we're seeing pretty reasonable activity going on. >> we keep hearing and talking

to folks about dry powder moving in and getting ready for the kind of downdraft you're talking about. moving operations to north america to get ready for that moment. is that comforting or disturbing? >> well, there's no question about it. boston properties, who was a partner of ours in a building in brooklyn, the brooklyn navy yard announced on the earning call they've got several billions of dollars ready to deploy at the right moment, focusing in midtown on park avenue corridor, which is a very strong market. we've seen last quarter, the third quarter, over 6.5 million square feet of lease assigned. predominantly in midtown east. other parts of the city also. but there's strong leasing activity there. i'm sure there will be opportunities for people who have capital. there is capital out there. they're on the sidelines. they're investing in short-term treasuries at 5%. so, that's why we need the rates to start coming down. they will be opportunities. there will be distress but

opportunities for people to take advantage of that. >> yeah, i was going to ask you, you said the next few years are going to be rough for commercial real estate, specifically in office as these companies -- these buildings need to refinance. what does that look like? is it a wave of defaults? is it something more systematic that could hurt the broader economy? >> it's definitely -- i wouldn't say a wave but you've already seen significant defaults, and particularly large companies. but i think you'll start seeing smaller companies, you know, owners who have their vacancies drop from 90% to 75% or 80% and floating rate loans. you will see -- you know, hopefully there will be some restructuring because the banks don't want to take the hit on their balance sheet. so, it will be a mixed bag. and then again, really dependent on what happens with interest rates. if interest rates start falling next year at a significant level, i'm not an economist, i'll leave that to mr. leaisema

to determine. we need the economy to obviously slow a little bit but not too -- not go into a stall. and we have to find that right balance. again, there are opportunities, as, you know, people default, other people will step in with new capital and come in and see opportunities. >> speaking of, you recently announced a succession plan for your business. your kids are going to take over. how do you do that? how do you keep -- have a family business where you have two children? >> well, you know, typically you don't get to the fourth generation or the third generation and so my cousin, eric and i, he was president and co-chair. i was ceo and co-chair. we determined a while ago that samantha and michael, who have been in our business for over 15 years, that we wanted -- we strategized about all of this

and put all the pieces together. this was the right time, they were given the acknowledgments and they brought a great team together. it's great to watch. i got a front row seat on it and my cousin and i are very happy they've shown the commitment and doing the work and we're still there. we're a resource. we're there to help them and give them, you know, institutional knowledge, so to speak, but they've done a great job and we're very, very excited for them and it's also -- we're not handing over the control of the plane with the tailwinds. there's a lot of headwinds. but they stepped up and we're very excited to pass the baton onto the next generation. >> you'll still do the television, of course. >> we make it a full-time job. it depends on -- >> cnbc contributor, jop opening. >> happy to always come down and talk to you guys.

it's always fun. to talk about where we see the world going. >> thank you, bill. we so appreciate it. bill rudin. >> thank you, guys. >> ceo of rudin management. >> meantime -- >> for the time being. >> january 1st. some details leaking out on the overhaul at citi as project bora bora. we have more on the potential extent of job cuts jane fraser announced. >> let me caution, it is early in the process. they're still working on the top layers of the org chart as we speak. the managers and the consultants i've spoken with have said internally the discussions are for job cuts, of at least 10% from many major businesses at citigroup. we're talking about obviously there's the consumer business, there's the investment banking unit, and in particular, i've

learned executives are actually almost undoubtedly going to suffer losses of greater than 10%. that's because of jane frazer's push to eliminate things like regional managers and co-heads that have gummed up the company to this date. for instance, we've also learned citigroup is looking at eliminating chiefs of staff and chief administrative officers. apparently there is a lot of them across the organization. those people will be pruned as early as this month after november they'll be working on the lower levels of the org chart on who is going to stay and who is going in jane ph fraser's new citigroup. >> it says we'll be saying good-bye to some hard working colleagues. >> she's talked about this for the past several quarters. >> it's been considered out of .

in the first 2 1/2 years of her tenure she's been known as the kinder, gentler ceo, allowing those to do remote work. so, this sort of tough talk has really put a lot of anxiety in a lot of citigroup employees i've spoken to. they're on edge because they don't know if they'll lose their jobs in december or january and if their bouss will lose their job and where they fit. >> thank you for that. we're watching that very closely. still to come this morning, a rare double downgrade for paramount. b of a says the rally has come to an end. plus, is a wait list to buy a ferrari a reason to buy the stock? we'll talk about this more when "squawk on the street" comes back. let's check it out. says here it gets plenty of light. and this must be the ocean view? of aruba? huh.

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paramount shares are lower this morning thanks to this big bear call, double downgrade from b of a cut their target from $32 to $9. they say the inherent asset sale they were counting on doesn't seem to be in the cards. stock is one of the biggest losers on the s&p. julia boorstin with us to talk about the call. >> tough words saying effectively the real value in this company was that it might sell off pieces. and that the pieces would be worth more than it is valued at as a whole. she points to the fact that the company did not take the opportunity to sell bte, did not take the opportunity to sell showtime. what she's saying is the longer the company goes, the less valuable each of those pieces are. i think she's lost faith in the idea there might be asset sales

here and she's concerned. that. she does point out that the direct-to-consumer business is doing business than expected. that is really why we saw a spike in the stock last week. i don't know if we can pull up a one-week chart here but it's important to point out that even with the massive selloff today, down 8%, the stock is still up 15% over the past week. so, she's downgrading it after it had this massive run on those better than expected results. look at that spike there on wednesday, thursday, friday. i think she's reacting to that stock, look at the direct-to-consumer business. >> does she explain why there haven't been deals despite what she calls credible bids for several assets? >> we know there were a number of credible bids when it came to b.e.t. paramount global is a different type of company because it is controlled by sherri red stone and her national amusement. this is a decision sherri redstone would have to make

about whether or not they wanted to sell. the argument paramount says we believe these assets are worth more together and we have the potential to build an incredibly valuable streaming business and manage this shift from linear, which is suffering, into streaming, which is growing. so, i think that's really the argument here. is this a company that can transition to the next digital phase. paramount would say combining the showtime and paramount plus apps together into one service makes them stronger, helps with retention and that they're being very disciplined when it comes to costs. i think that's the key argument here, carl. >> and the bulls, the real bulls on the stock would say that the entire company could be up for company and redstone looks more eager or willing to sell. warren buffett being in this stock and everything else. >> yeah. i think there's so many questions about the media landscape here. when it comes to a really big deal, if paramount were to sell in entirety, the question is, who would the buyer be? what is the regulatory process

be like and would the buyer have to then agree not to buy certain pieces of this or paramount would have to sell off certain pieces if they were redundant with a media company buying those assets. if you look at the buyers, if it's not a tech company, a media company would not be able to probably buy the entirety of paramount global because there is redundancy. the question is, is a tech company a buyer and could you get this kind of deal approved right now? >> we were talking about hugh johnston in the framework of disney. your thoughts? >> we'll be hearing from disney after the bell on wednesday. hugh johnston has an incredible amount of financial expertise. he's seen as someone who could manage the structure of this company as it looks at making major sales or transitions, what is the future of espn look like? are they going to sell off their sky assets in india? what is the linear business look like? do they sell off those assets? of course, they're now completing the acquisition of

hulu from cnbc's parent company, comcast. so, so many moving parts here. and disney is a company that could structurally look very different a couple years from now than it does today. this is the cfo who certainly has the financial chops to manage that kind of transition. >> and you mentioned earlier sort of the tie that johnston and trian had in pepsi. >> a while ago, trian went after pepsi, tried to break it into two, snacks and beverages. they fought back. hugh johnston and nelson peltz became friends, maybe or, or more aligned rather than competitors. i think it's interesting that johnston is going to come in as cfo. nelson has been critical of the last cfo of disney, who is on the procter & gamble board as he launches this activist campaign against disney. i would also just add, you know, julia, that johnston has had some operational expertise as

well. he's been vice chairman since, i think, 2015 or so. and really has presided over a pepsi that 55 quarters of beats, the track record speaks for itself. >> yeah. it will be interesting to see when we start hearing from him on the call, certainly the outgoing cfo christine mccarthy -- former cfo played a very active role on the call, breaking down a lot of the different numbers. disney is restructuring its reporting structure, so the way the company is divided up is changing. we're going to be hearing about more -- hearing more about that on wednesday. but so many different pieces of this disney business. going in different directions. if you think about the growth of the parks, the resilience of the consumer demand for those businesses, the fact that disney is doubling down in the parks business. the other end of the spectrum, they are cutting costs when it comes to entertainment. bob iger laid off thousands of people in the spring, in part --

in conjunction with his response to nelson peltz there. this is a company that's been through major upheaval. it hasn't even been a year since bob iger has been back as ceo. >> so much media news and we didn't get to -- we hope maybe the final rounds of the sag-aftra talks. we'll save that for next time. julia boorstin, thanks. another research call we're watching from the desk of barclays, upgrading ferrari to overweight, raising price target to 350 euros. strong earnings, above consensus guidance the catalyst there. stock is up another 1.3%. robert frank joins us to break down the bullishness. >> this stock like their cars is very expensive. has a market cap over $60 billion. it's 50% more valuable than ford or gm. i think what analysts and investors like is the certainty. how many companies do you know, guys, where you're already asking questions about 2026 earnings? that was the conference call.

because 2024 and 2025, they already know what they're going to be. they're already sold out of cars for the next two years. and they're making more per car. they're selling more expensive cars. they just released a car that sells for $5 million, which you can only drive on the track. you can't even drive it on the road. how many companies can do that? and they're also adding a lot of personalization. when people choose their own paints color, choose their own leather, that's adding hefty profit margins on a company that already has 30% margins on every car. >> what is the valuation like now? is it like an lvmh? it's not like an automaker. >> you remember with the ipo, that was the premises who said we want to be valued as a luxury company. people sort of bought it at the time. they're a little under lvmh, certainly under hermes. the question is going to be, what does the electric future look like for ferrari? will they love them as much when

it's an ev? >> and the answer to that is? >> a lot of buyers buying their cars now because they think this will be the last i.c.e. engine ferraris. i don't know that an electric ferrari will be differentiated enough from even the best toyotas or porsches or everything else to get the margin they get now. now, the ceo says, look, we have people who will continue buying hybrids. we will continue to make combustion engine cars even after 2030 but a small number and that will be the question. >> i wonder how much they'll benefit from the adam driver film, too. >> look, they get great press. we'll see if racing continues to go well for them. >> they had a rough weekend. what was that? >> they had a rough -- they have such a lock in formula 1 and the sponsorship is so good. sara, your documentary coming up on formula 1, ferrari used to depend on core sponsor for 60% of revenues. now it's diversified sponsor.

no sponsor gives them more than 18% of their race revenue. that's a smart business for them. they have to make it there. they have to make it in preowned. they're out of new cars to sell. they don't have any cars to sell for the next two years. >> well, they are doing well as an f1 team. the valuations of all the teams have done well. ferrari gets more money because it's a legacy team so it gets paid more to stay in the sport. >> which a lot of people think is unfair. >> they didn't have a good start to brazilian grand prix for leclerc. the documentary airs november 16th at 8:00 p.m. on cnbc. when we look at how the teams make buckets of revenue and how they've changed he since the liberty acquisition. thank you, robert. always fun to talk ferrari. the ceo of mondelez is coming up later this hour on the quarter. plus, whether they're seeing any impact or expect to from the weight loss drugs.

watching birkenstock, down 10% since the ipo on october 11th. a bunch of initiations. we'll get to those. 11 firms have a buy or overweight. six with the equivalent of a hold. no sells, at least for now. we'll be right back. when you're looking for answers, it's good to have help. because the right information, at the right time, may make all the difference. at humana, we know that's especially true when you're looking for a medicare supplement insurance plan. that's why we're offering "seven things every medicare supplement should have". it's yours free, just for calling the number on your screen. and when you call, a knowledgeable, licensed agent-producer can answer any questions you have and help you choose the plan that's right for you. the

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performing sector after last week's strong performance. the biggest mover, ireland based ryanair. the company reporting all-time high profits in q3, announced it would begin regular dividend payments for the first time in 2024. outside of europe, the nikkei in japan closing at its highest level since september 2020. it's not all good news. there's signs of an economic slowdown as japanese services pmi, while still positive, did slow to the lowest level of 2023 in october. and china saw its first ever quarterly deficit in foreign direct investment since data tracking those numbers began in 1998. you've been spotlighting this. just another sign of the economic headwinds in china, stemming from them, but also compounding them if they cannot attract that foreign investment. >> plus i think three straight months of outflows of both china and hong kong equities has been a tough quarter for china. >> property sector is weighing. let's get a news update. >> good morning. the judge asked donald trump's

lawyers to get the former president under control just minutes into taking the stand in his civil fraud trial in new york. the request came as trump testified he thought his apartment was overvalued and believed his mar-a-lago resort was underestimated. he also tried to distance himself from the exaggerated financial statements at the center of the case, saying he knew little about them and banks didn't care about them. a border crossing between egypt and gaza is open today for limited evacuation. only foreign passport holders will be allowed to exit. the crossing temporarily closed over the weekend after a gaza city ambulance was hit in a strike friday. south korea is planning to launch its first domestically built satellite to better monitor north korea, which is expanding its arsenal of nuclear weapons. a spacex falcon 9 rocket will carry the satellite into orbit later this month, sara.

>> thank you. still to come, mondelez ceo dirk van de put, the company behind oreo, cliff bar, ritz crackers, noting consumer demand remains resilient. we'll talk about that with the ceo in a moment. i think i'm ready for this. heck ya! with e*trade you're ready for anything. marriage. kids. college. kids moving back in after college. ♪ finally we can eat. ♪ you know you make me wanna...♪ and then we looked around and said,

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welcome back. global deal value reaching a nearly ten-year low in the third quarter. it is the recovery on the horizon? joining us is peter orszag. welcome. you know, we were hearing there were green shoots and things were starting to happen and we've seen some evidence of deals, but that was before the

events of october 7th and the world feels like it's changed. have you seen a noticeable impact on deal-making? >> well, first, i think again we need to really be clear about the process of having the m&a market come back because it will, first of all, happen in fits and starts. second of all, it doesn't happen overnight. i think we've talked about the first thing is client dialogue, the tenor of that changing. then you have announcements picking up and then revenue. so, some people are looking for the immediate revenue. it just takes a while for that to show up just given the way the process works. with regard to the events in the middle east and elsewhere, there is a lot of geopolitical risk out there in the world. i wouldn't say it's having a massive effect yet on most of the client dialogues we're having. obviously, if it were to expand and spread, that would become a much bigger concern. more broadly, it's impossible to make a business decision today

without assessing the geopolitical trends. >> there's also the rising rates issue. we saw this other leg up in rates the last few weeks. it's come down over the last week or so. hard to tell. can you really see any pickup in activity unless we know rates have stabilized? >> well, i think it is important for rates to stabilize. the level also matters, but probably less than the degree of stability. so, yes, there's been some volatility in the treasury market. i think this highlights a few things. obviously, our fiscal outlook is worse with higher rates than with lower rates. i think it also raises some questions. it had been kind of the new in thing to focus on a new metric as an indicator of whether we're on a stable path or not. when interest rates can move as quickly as they have, it illustrates that that metric is probably not a reliable

indicator of whether we have to make some adjustments or not. it's also unfortunate, by the way, that we didn't lengthen the maturity of our treasury debt when we could. this is something bob ruben and i called for in 2021 when the ten-year was at 1% instead of 4.5. >> of course, druka miller tried to push back. how much do you think she really deserves? >> i'm sorry. you broke up. i didn't hear the last part of your question. >> i'm just curious how much criticism do you think yellen deserves or how much is worth going back and thinking about? >> i don't think finger-pointing is constructive, but i do think we've got an opportunity now to reengage in the debate over the fiscal trajectory, which is going to obviously influence those long rates.

the past is the past. >> do you think that is having an impact on long rates here? clearly, the market was encouraged by the refunding announcement last week, that it was less than expected. but do you think this is going to be a perpetual issue that will keep real rates elevated for a while? >> i think there is a substantial risk of that. if you look at the pressures that the budget will be under, not only the demographic trends we already knew but also probably the need for additional defense spending given the geopolitical risks we were talking about a moment ago, and also the spending -- the necessary spending associated with energy transition, you can see upward pressure on government spending over the next -- the foreseeable future. frankly, probably an inadequate revenue base to match that. so, there will be plenty of supply coming onto the treasury

market, which does tend to raise rates. >> given that back drop, peter, higher rates potentially for longer, the start and stop m&a environment, you're now leading lazard. i wonder how you position a firm like this now. you announce lazard 2030 recently. where does growth come from in this sort of environment if it's going to be prolonged? >> well, i think there's lots of opportunity on both sides of our business. again, both sides see significant growth opportunities on the advisory side. as just one example, lazard has always been known for combining that business advice with insight into the geopolitical environment. all the more so now that we have a new geopolitical advisory unit that's doing that professionally, as it were. the demand for our type of advice is stronger in difficult periods and that's one of many factors leading us to have a

bright outlook over the medium to long term for our firm. >> peter, thank you very much. i'm sure you're getting a lot of calls on that. peter orszag, ceo of lazard. when we come back, is big tech's growth status in debt? info tech are the two top sectors but is a leadership rotation ahead? 'lta tt aouple of minutes. hi, my name is damion clark. and if you have both medicare and medicaid, i have some really encouraging news that you'll definitely want to hear. depending on

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the seven biggest tech stocks now down an average of 9% from their 52-week highs and there could be more reason for caution ahead. that's the focus of today's "techcheck" with our deirdre bosa. >> good morning. the mega caps made it through earnings season with profitability intact. there was another theme that may have been overlooked. that's failure of future guidance. elon musk threw cold water on tesla expectations. meta warned of an ununcertain outlook for the year ahead. google's cloud growth missed and amazon and alphabet gave muted guidance. it's an especially interesting dynamic given the money they're pouring into a.i. startups. openai and anthropic, the tech giants are creating this virtuous cycle. the money they invest comes back to them in the form of sales because they can charge those startups a similar amount to use their cloud platforms. back to amazon's announcement around the anthropic investment. at the top of that press

release, amazon wrote, anthropic selects amazon. so they get as much on the back end as it is about giving customers access to new a.i. tools. the journal reports that google's $2 billion anthropic deal came months after the startup agreed to spend $3 billion on google cloud. not to be overlooked, of course, microsoft's $13 billion openai deal that sees openai spending billions of dollars on azure. in this way, big tech becomes both those startup's biggest backers but also the most direct beneficiaries. it's win-win. they get more top line growth or stakes in the startups become more valuable if the startups themselves take off. for mega cap investors it's a master stroke. less so for competitors, like the vcs trying to get an early piece of the generative pie or startups building outside of this dynamic, the lesser

players. on friday i went to see ftc chair lena khan. she was in san francisco. one of the founders in the room asked her if she was looking at the structure of these deals because it could set up big tech to dominate and squeeze out the little guys. she said it was something she was thinking about and bring back to think about in d.c. only microsoft has told investors its cloud is reaping the benefits of a.i. driven growth. amazon hinted at better deals. google was probably the most disappointing. this could be a growth avenue for them but could also be a delicate point as well if the regulators look into it. >> it's really interesting that sort of cycle that you laid out. the bigger companies are not scooping up the a.i. companies because they're now at what eye-popping valuations in part because they've been buying all their services. >> right. but they're building up those valuations. that's sort of on the vc side.

they're not going to pay -- they're not going to pay for a $90 billion company that's at its earlier stages, bringing in $1 billion in revenue. that's not part of their model. in a way mega cap is sort of looking like the new tiger, the new softbank in the cap is infl these valuations, and it makes sense for them on the back end, too. >> kramer had fierce words about the cap she's putting on amd in general, and some deals are getting announced even if they believe they have to go to court for it. >> a few weeks ago we looked at amazon's pace of acquisitions, and this is where she made her name in yale law school, that seminal paper. they have done many acquisitions since her time at the ftc. i asked her on friday, one of the biggest criticisms on

regulators is they are backward looking, and she said the only way to get the regulations in place is to go after the deals that already happened over the core businesses and that's exactly what she's doing. we will see. she does, to your point, carl, she needs a win and we are seeing some of the biggest court cases we have seen for big tech right now. >> the ceo on the other side of the break. don't go anywhere.

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mondelez, analyst encouraged by the revenue growth that beat

ex expectations across all regions. joining me is the ceo, dirk van de put. >> hi, sarah. good could be back. i think it has to see, first of all, with the categories, biscuits, chocolates and baked snacks that categories quite strong and in an environment where the consumer is under financial pressure those are categories that tend to do quite well. and we have been investing in new brands, innovating and driving disptribution so we hav performed above those categories in the last quarters, and it's a reflection of what we have going for us at the moment and the interest in our brands with the consumer continues to be strong.

>> and where does it go into 2024 as some of the inflation costs come down? >> first of all, yes, pricing was a big driver, and at the same time we had a volume mix of 4% which, i think, in today's world for most food companies, it's not where they are, so that shows the strength of our categories and business despite of the pricing that was going on. for next year in most of our input cost, they will be flat. unfortunately we have cocoa and sugar going up next year, so we will have to see pricing particularly in chocolate next year. >> do you expect volumes to hold up, as you say, at the higher than industrial levels? >> yes, we do. we expect volumes to go up slightly. we know historically chocolate

is not a very what we call a very ae listic category, and they love to keep consuming their brand. historically we have seen chocolate is not so sensible to price increases. >> can you explain what is happening with sugar and cocoa? where do they rank in terms of driving pricing to say freight or wages, what we have been dealing with in the last few years? >> cocoa is a crop issue, and we have to see about the crops next year and if the supply is suppressed, the prices go up. cocoa tends to go up and down over the years, and over time cocoa would come down again.

i do not see a reason to get too nervous about it. supply and demand on sugar right now, and something as it relates to overall supplies compares to the rest, i would say. wages, we will see next year and energy and packaging and other things that we have seen so far are going to be relatively flat. again, a lot of it is, for example, we will see where oil prices go, but overall the focus is on cocoa and sugar at the moment. >> what do you think about the threat of the obesity drugs, and if they show game-changing health results, how does that impact a portfolio that includes a lot of sugary and sweet snacks? >> we can only go by the data, and since there is so much talk about it we have done quite some work on it, and i think the

overall estimate of the effect is a bit overblown. today we see no affect on our sales, and if we extrapolate how many people will be on the drug ten years down the road, in the u.s. and around the world, and then looking at how the consumption patterns change, the affect on the business will be relatively small. in ten year's time the estimated volume we will be at by then will be impacted half a percent to 1%. there will be a small affect, but the timeline will be so long it will be so small. >> that is the most specific calculation i have heard from a food company. we appreciate you taking the time. thank you very much. >> thank you.

>> dirk van de put of phaupb. we will get more retail names picking up into high gear with ralph lauren. the market is still celebrating. >> yeah. thank you so much. welcome to the "halftime report." i am scott wapner. we will ask the investment committee what happens now and whether there's enough momentum to keep the major averages criming. joining me for the week -- or for the hour, maybe for the week, joe terranova, bryn and scott weiss. the s&p 500