curious how you think about that, also, geopolitically as a business, the national security concerns, jamie dimon, we were talking earlier about, you know, what companies you should do business with. should you do business with people in china or not. given all of the concerns that people have? >> we'll keep you posted on headlines. i'm carl quintanilla with sara eisen. you have been listening to the nvidia ceo live at "the new york times" deal book conference. obviously, a lot to get to regarding ai and geopolitics. we'll have a lot more on his comments ahead this hour. first, three rate cuts in 2024. deutsche's ceo of the americas lays out where monetary policy is going and what it means for your money. >> then, apple and gulf coast gulf goldman sachs, a look inside apple's effort to unwind its credit card partnerships. >> and what's the impact of ai might have on its revenue growth? we'll discuss. >> first up on the markets, looks like the rally carries on.

not as strong as it was at the open, but still up a third of 1%, the nasdaq up 0.4%. the drop in yield, the two-year yield has gone from 2.6 to 4.6 today. late october, now back down to 4.2. in the last hour, jamie dimon saying there's a chance rates actually move higher from here. >> the prevailing view, take a chart and it's always been w wrong. my view about the economy, i think there's a higher chance that rates have to go up. and adding to that sentiment that cut expectations a little premature right now. have a listen. >> i believe that inflation is going to be stubborner than i would like it to be. then, i think, talking about

reducing rates at this point is just premature. >> let's bring in cnbc's senior markets commentator, mike santoli. i think the key was yesterday, hearing from waller who's a governor sort of blessing the market's view that inflation is coming down, and if it continues to move towards target, we can cut next year. barkin walking it back a little bit, but he's not a voter. >> and it's to be expected that fed officials will not fully come out and say, here's the road map to rate cuts. what the market does realize is, if july was the last cut, the lanch -- or the last hike, the average time to the first cut, historically, is like six or eight months. you're almost there. french quarter gets you there. you've had very long stretches beyond that. the point is, the market will not sit here and say, hold indefinitely. if we think we have downside momentum in inflation and the fed is acknowledging that they don't have to be at the target before they cut, and that the economy doesn't have to be in stress before they cut, then you can triangulate it to say, fine, the two-year should not be above

5%. beyond that, maybe the market overshoots in the short-term. but what i find interesting is the way it's kind of tweaked the energy in the stock market a little bit, you mentioned, sarah, only up a third a percent of the s&p 500, but that's just because everyone's selling the winners and the megacaps and buying everything else today. breadth is still good. the russell's up 1.3%. i just looked at the ten worst-performing s&p stocks year-to-date, okay? they're up on average 2.5% today. okay? that shows you -- >> is that a tax loss selling thing? >> in theory, it would be tax loss selling is finished. what it really means is, we got into this stage because we bought the megacaps, they were inlated from macro ressures, higher yields, and disruption. and maybe we took it slightly too far. so it's a lot of really redistribution of cash within the market, in general. we're right on the precipice of getting back to the july highs in the s&p, whether that creates friction or just is a breakout point is to be determined at

this point. >> got within a stone's throw of 4607, which was that july intraday high. 55% now of the s&p 500 above the # 200-day. this was sort of the idea that you would rely less on the megacaps and everybody else would come to party. >> exactly. so definitely some technical progress. the math gets a little hard. the bank stocks are up 5.5%. on a year-to-date basis, being an indexer, a real doctrinaire, keep costs low and buy the s&p 500 has saved you. if you were actively managing a portfolio, there's no chance you would be 7% in apple, and 7% in microsoft, and 28% in the top-ten stocks and you wouldn't have sold nvidia after it doubled. no active manager would have done that. >> i think one of the debates, and bill ackman revealing that he thinks the fed will cut in the first quarter. will he be right twice?

he had a really good bet against the long bond that he closed out at just the right time when bonds started to rally. if that's the case, that's even better than the market expects right now. >> i suppose it is. that's the part that gets a little bit tricky. i think if the fed is going to be doing these fine-tuning cuts and it's not because the economy is really faltering, it seems like the first quarter is a little too soon. it's a little too soon to show enough progress on inflation -- >> or enough weakness on the economy. >> exactly. and you wouldn't necessarily wish for the weakness on the economy to be buying stocks right now. it's tricky, timing wise, but directionally, it seems like how things are moving. >> mike, thank you, for that set-up. our next guest is encouraged by fed commentary this week, seeing three rate cuts starting in june next year. a year-end s&p target of 4,700. joining us now is deutsch bank cio of the americas. it's good to have you. what do you think gets the fed cutting rates next year? >> yeah, it seems like the recent fed speak has given some credence to what we have been

saying and what our outlook is for next year, sarah. you know, i think it's a bit premature to think it's a first quarter phenomenon. most likely, it's somewhere in the middle of the year. we're thinking june is the most likely time when the fed comes up with the actual rate cut, the most blunt instrument they have. you have to look at labor market dynamics here, and the labor markets are still very tight. so it's very difficult to assume that just because you have this disinflation traction, pretty much well entrenched, but the fed is going to start cutting. i think the good thing here is that the fed's conversation has pivoted. they are no longer talking about how high to go or how many rate hikes to make, but how long do they stay on the sidelines and how long the pause is going to be. i think that's positive for the markets and actually, you're seeing that happening in the two-year, you know, treasury rate movement. >> so i guess, how much more room is there for yields to go down from here, giving some

support to stocks? >> i think on the two-year side, you can still see some downward revisions, as the three rate cuts, which we are a little bit off consensus. the market expecting another 100 basis points of rate cuts from now until next year end. so we are calling for one less, but we still expect the two-year to end next year by around 395. the ten-year is a little bit more trickier, given the deficit that we stare at. and the appeal of u.s. treasury at this point. so the ten-year probably stays around 420 for us. a little bit of a curve steepening from here on. >> so no rate cuts. your target's 4,700. why won't there be more enthusiasm for equities if all those things happen?

>> it's a combination of, if you need this perfect cocktail of events to take place narcotics to really go higher, at least from our perspective, that catalyst might be somewhat missing, you know, 4,700, it's moderately constructive, but not euphoric. i'm seeing a lot of, you know, projections from a five handle. i think for that to happen, you need to really have aconference of events that will be a perfect mix, you know, a soft landing scenario 100 points of rate growth. last but not the least, we're thinking of energy dynamics and nothing changes fed projections and alters inflation forecasts than the oil markets. i think there are a lot of what-ifs for that number and we are somewhat more conservative and 4,700 for us seems to be a

much better place for us to be at. >> you think there's some interesting value places in europe, i think, and internationally. and i'm curious about why with such a benign outlook in the u.s. do you think europe can also stick a soft landing? >> yeah, that's really our expectation, sarah, that europe, you know, they grow at a somewhat muted pace, 0.7% next year. but if you look at rage growth. a similar story to what we have seen here in the states this year, you know, the consumption is a big driver. epps growth for european stock indices is double-digit earnings growth. and when you're comparing growth, the value, the p\e multiple at which you're buying growth is a little bit more appealing to us from europe. i think somewhat of a barbell strategy, where you still stick with the growth sectors here in the states, but you also compliment it with the value sectors from europe and maybe even some other parts of the world might be a good way to navigate to 2024. >> you think small caps

outperform, or is there too much risk in your playbook to count on that happening? >> they do. there have been laggards for the last 18 to 24 months, but it's a little bit early, too premature to start banking on small caps just yet. you would want to see much better guidance from the rates markets to make that riskier call. >> deepak, thank you for joining us and sharing your views. >> absolutely. thank you. >> deepak purri from deutsche bank. meanwhile, the ceo of intuit is up after the break. stocks up nearly 20% in the past month. plus, a bull/bear debate on tesla ahead of the release. two conflicting notes this morning. we'll also get to general motors. its newly announced buyback and the boosted dividends. "squawk on the street" will be right back. in the u.s. we see millions of cyber threats each year. that rate is increasing as more and more businesses move to the cloud.

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take a look at shares of phillip 66, an outlier in the

energy space right now. eliot management discloses a $1 billion stake in the company, asks for two seats on the board. the activist investor says phillips has, quote, fallen further and further behind its peers like marathon and valero as it moves away from refining segment. still backing the current ceo from the time being, but eliot warns that he'll need to step on the gas. the shares, as i mentioned, are higher today amid weaker oil prices and a weaker sector performance. >> let's get to intuit. shares higher this morning after delivering a beat across the board to kick off its fiscal '24. they point to some resiliency across small business with guidance for the current quarter coming in your own word consensus. joining us this morning in a cnbc exclusive is intuit's ceo, tasan gazarzi. so this doesn't seem to be the kind of numberyou would see in a sluggish macro. >> first of all, thank you for having me. you know, one of the things i shared yesterday on earnings is

that when you look at the small business sector, 50% of small businesses go out of business after five years. however, those that are on our platform are 20 points higher likelihood of success. so all that means is that when you're using our digital tools to be able to grow your business to manage your cash flow and inventory, you're far more successful than if you're not. and with that as context, small businesses are thriving and they're being challenged in this environment. you know, their cash flows are 90% of what they were this time last year. however, they're about 130% higher than several years ago, the pre-pandemic levels. they're in a much better position today than they were three, four years, however, challenged in the environment. but i would end where i started, far more successful on our platform than not. >> ai-enabled automation. we're starting to get some real practical applications that apply directly to, say, an owner of a small business. can you give us an update on

what you've got? >> yeah, sure. you know, first of all, i'll just remind your viewers that, you know, we have been at this for a decade. we have a data platform where we've been implementing ai across our platform for more than a decade, and that's fueling a lot of our innovation across the platform. and i would say several years ago, we really upped our game with what's possible with gen ai. and a lot of what you're seeing today is because of what we've done in the last decade. a lot of what we're now doing today with intuit is this, which is really creating a future done for you, with a gateway to human expertise. so we're always there for you to help you grow your business. that growth and that potential is yet to come. we're not only excited about where we are, but the potential of the future with all of our gen ai investments. zpli just wanted to dig in a little bit more on the small business side of things. people have been nervous about companies that are exposed to small business right now. you said that they're under

pressure, but the results are still good and i'm wondering how long you think that is going to last, what sort of visibility you might have into next year. >> yeah, well, one of the more interesting things about our platform is we have 100 million customers on our platform and for small businesses, you know, we have over 500,000 data points per small business that we've seen. we've seen a lot of the money coming in, money going out, the creditworthiness of their vendors, the number of invoices that they're getting, which is an indication of, you know, future cash flow coming in. so there's a lot of data that we see. and as we look, you know, across the trend lines looking backwards, and look across everybody that's on our platform, as i said, we're going to see a couple of big things. one is they still have strength in their cash flow. it's stronger than it was several years ago, prepandemic. and they're actually having an easier time hiring employees now. there was an incredible war for talent, there was a constraint

on their growth. what we see is that companies on our platform, the number of companies, the number of employees that they're hiring is still quite strong. and the other thing that's strong, although down from a year ago is the customer spend. you know, consumers are still spending with their small businesses. and one indication of that is that what we shared yesterday with earnings, which is up 21%. that's very strong, in context of the environment. that was 30% last year, so they are feeling the impact of the environment, but yet, still thriving on the platform. >> on the consumer side, then, given the esilience, what kind of pricing power do you have for a platform like turbo tax? >> first and foremost, our big focus on turbo tax, now you have a platform where you can do it yourself, get access to an expert virtually, and we'll do all of your taxes for you, all digitally, with virtual experts. with that as context, our focus is the 100 million folks that

have somebody else do their taxes for them, whether it's a consumer or a small business that gets their taxes done. and we disrupt them from a price perspective, we're far allower if you go to a local place to get your taxes done. our focus is the pass loong benefit to our customers by being disruptive from a price perspective. and that's where we believe our future growth will come from when you think about turbo tax. >> what's your take on these supposed free filing programs out of the irs. do you consider that a material threat? where are we on that type of adoption? >> first of all, i'll start with the facts. and that is that free software is available to all americans. if anybody chose the get their taxes done for free, it's available to them, based on what private energy provides. facts are important in context of the current environment. we don't believe it's the best use of the government's money to go build tax software, because it's already available to all

consumers. but nevertheless, for us, it's not a threat at all, because it's yet another free tax software. and free is already available to everyone. so therefore, another free tax software is really not a threat. you know, our focus is, the benefit for consumers, particularly in the assisted segment, where they go to get help from someone else, and we're digitizing all of that, so folks can get access to their refund as fast as they can, virtually, from wherever they are. >> finally, we mentioned the shares, obviously having a very good run. not quite to the 2021 highs. but any appetite to use that currency for any kind of m&a? >> you know, our principles around m&a don't change, you know, our focus is always time to market, always about delivering the benefits to our customers short and long. and our views around m&a don't change whether it's a great economy or a not-so good economy. acquisitions are important, but also hard to pull off and get the benefit out of them. we'll continue to put our cash

to good use in terms of internal capital allocation. and if we see opportunities that could accelerate our time to market, we're always looking, but our views don't change based on the current environment. we always want to do the right thing. >> that's an important week for software, that's for sure, sasan, thank you for the insight. before the break, all day today, we are remembering the legacy of berkshire hathaway vice chairman charlie munger who passed away yesterday at the age of 99. munger was the longtime friend and business partner of warren buffett and an institution here on cnbc. >> i could have done a lot better if i had been a little smarter, a little quicker. >> what are you talking about?! you've had success in everything you've done in life. what would you like to do differently? >> well -- i might have had multiple trillions instead of multiple billions. >> don't miss the special program tomorrow night on

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european markets starting to turn around this morning after two straight down days. the german dax leading the way. highest level since august. european informerses are feeling more bullish as fed governors here are indicating that they

may be ready to lower rates earlier this year. the fits with the dollar index. the dollar index down more than 3% just this month. plus, inflation is starting to fall in other parts of europe. got some numbers from spain and germany today, both showing cooling year over year numbers in november for inflation and coming in better than estimates. so good to see the continued progress, certainly, on inflation here in the u.s. i guess the question is, who cuts first? ecb or the fed? >> dax at a four-monte high. eocb did raise some global guides. >> the forecast out next year, they said global growth will be in the 2 to 3% range, but that's soft landing, which you said you can't take necessarily for granted. but that's increasingly the feeling about the economy next year, both in the u.s. and europe. if they can do that, that would be amazing. >> amazing, yeah. some landings are softer than others. we'll see. a couple hours into trading here. dow holding on to 22 points. let's get post-to-post with bob

pisani and see what's moving. >> we're slowly closing out an astonishing month. we are up 9%. that would be the fourth best month in 12 years or so. and it all started when interest rates a started moving down the very first part of november. and we got some very decent earnings report at the same time. we had seasonality kicking in. we had three effects here, like a lake-effect, coming in that really accelerated the move here. but the big thing was the ten-year yield. just this week, ten-year yield, 4.5 started, now 4.3. broad, the equal weight s&p moving just about the same as the market cap-weighted s&p this month. broad moves here. some about 60 stocks down in the s&p this month. so i think megacap tack moving nicely. banks, transports, even some of the old ipo names this year have been doing a lot better. salesforce, i'm going to put up salesforce, crm will have earnings after the bell today. look at that, beginning november 1st came up here, we'll have --

we'll see what they do, but they are 2 to 3% off of the new high. that's been a big move up, 10, 11, 12% so far this month. the banks have been rallying as well in the month of november. jpmorgan has been on a tear all month. saw jamie dimon talking today, look at that, at the far end of the chart. that's about an 11% move here. airline stocks were horrible going into the start of november. and they have all turned around, bottomed out. there's alaska, lights kind of went on there, 31 at the beginning of the month, now it's 37. same thing with everybody else. delta, southwest, united, all up in the mid-teens. and all are straight down for several months here. even the ipo business, remember, birkenstock, what a disappointment birkenstock was. it went public in -- put up birke birkenstock, went public at 46 in october. round trip there, it's now back to where it was its initial price. it's been trading below 46 where it started the whole time it's

been around here. and there we are, back to where we were in the beginning. gamestock has been rallying. they'll have their earnings out september 6th. some activity in the options area in the $20 strike price area and i think what's going on, and gamestop closed at the lowest level a couple of days ago since february 2021. you'll see occasional, you'll get game sstop making big moves but this is around the earnings report that will happen next week. guys, back to you. >> thanks, didn't they just liquefy that meme etf. >> roundhill. meme. gamestop was a component in that. that's a sign. a few years ago, they started this, the etf business, they hop on the current trends, memes were a big trend and they liquidated because there wasn't a lot of interest in holding those kinds of names.

>> that and there were a lot of losses. thank you, bob. time now for a news update. contessa brewer has that. >> a u.s. military aircraft crashed into the sea off soft southern japan this morning. six people were onboard the air force osprey and at least one person has died according to the japanese coast guard. it's the most recent in a series of fatal accidents. the u.s. is charging an indian national with conspiracy to assassinate a u.s. citizen who advocated for a sovereign state for sikhs. the man was arrested by czech authorities and is awaiting extradition. the charges after the biden administration announced last week authorities had thwarted a plot to kill the sikh separatist. house speaker mike johnson said the charm will vote tomorrow on whether to expel congressman george santos. the decision, just a day after a house democrat filed the second resolution to expel him. the calls for expulsion follow the release of a report from the house ethics committee that found the new york congressman used campaign donations for

personal gain. santos has denied the charges. carl? >> contessa, thanks. coming up next, a bull/bear debate on tesla ahead of that we expect will be the cyber truck unveiling tomorrow. we'll watch gm on pace for its best day now since january of '21. then, barclays laying out the future of streaming. their vision for consolidation in the space and the three to four services they say will survive. take a look at markets. the nasdaq has just gone negative as we do lose some steam. the s&p 500 goes around the flat line and the dow loses more than 100 points of the rally right now. so we'll keep an eye on that turn in the market. salesforce is still adding about 32 points on the dow. but microsoft, unh, and mcdonalds are dragging it lower. we'll be right back.

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headup of tomorrow's cyber truck event and two tesla notes are catching our attention, first from the desk of rbc. they're calling the model a halo truck that could help reinvigorate a brand that has arguably lost some sunshine in recent years. but the desk of guggenheim remains bearish, saying they don't believe it will meaningfully change the story over the next few years. phil lebeau joins us now. what are you hearing from analysts and investors. do you buy that halo effect case? >> there is a halo effect that is expected from the cyber truck. it's so unusual, so differentiating, if you want to use that word. that's probably not even the right word, that it makes people say, wow, look at that. having said that sarah, do not expect to see large numbers of halo trucks out drivingaround the country. you're just not going to.

they're going to deliver ten of these tomorrow, the first ten, and gradually ramp production through 2025. they don't expect to get to full production until mid- to late 2025, and that's if everything goes as planned. this is going to be a challenging vehicle for them to make. and also to a certain extent, a challenging vehicle to sell. i know you will hear people say, well, they've got a million reservations. a reservation is very easy to make. you know, you put a little bit of money down, and then if you don't decide -- if you decide you don't want it, you don't have to buy it. and so i think a lot of people are going to look at the cyber truck and they're going to say, what will be the ultimate true demand for this truck? we still don't know pricing. we'll find that out tomorrow, but it's not going to start under 50,000. remember when they said, $39,000 for a rear-wheel drive. nobody expects that to be the case for the very base model, single-motor base model. and so, what we want to find out tomorrow in addition to the specifications is, really when we get to look at it, what's

going to be the pricing and do we have a better sense of what demand is going to be? basically, i don't think we're going to find that out tomorrow. i think it will be the usual, elon musk/tesla delivery show we usually see with new vehicles. >> does it matter if we don't know when it will be widely available for purchase or when it dlielivered? >> well, we know it's not going to be for a while, because it's going to take a while to ramp up production. look, the dementias on the vehicle, in addition to the fact that it's stainless steel on the frame, this is not your typical vehicle that they're manufacturing here. and that's going to mean it's going to take a while for them to ramp up that production. and then there's the other question. how much demand is truly out there. do i think this will sell well in southern california, which, by the way, is the number one pickup truck market in this country, absolutely. because it's the type of vehicle somebody wants to drive in and make a statement. do i think you're going to see a lot of cyber trucks in des moines, iowa, not a chance. first of all, evs are not

popular in the midwest or, you know, areas away from the coast, and on top of that, at the price point, very few people are going to buy these outside of those hot ev markets. >> i thought it was interesting today, phil, rbc called it the halo truck, in that, yeah, it's not going to be much of a financial drag, but really is more intended to revitalize the brand, which they say has lost some of its shine in the past few years. >> i think that's a fair argument. when was the last time you had somebody say, i saw a tesla, unbelievable-looking car. you can't say that about the model-s. even with the refresh, the model-s is an old-looking vehicle, so to speak. the model 3 and the model "y," they're very nice looking, but not revolutionary. you don't look at it and say, wow, check that out. we haven't seen something like that in a while. the model "x," very interesting looking, the gull wing door was

interesting. but that could now change. >> i think they're very cool looking. where does gm fit in all of this? phil, you talked to mary barra this morning. >> they have to get their act together when it comes to ev production. second to what's going on with cruz, ev production is crucial to their future. they've already invested billions. they'll invest billions more, 23 did not go well. they're struggling to ramp up battery cell production. they've got to get that together in the next year and certainly by '25, when they believe that they will have single-digit margins on their evs, because they're losing money right now and will next year, as well. >> phil, thanks. our phil lebeau, busy week for autos. meantime, let's turn to a note from the desk of barclays. it takes a look at the future of streaming. they conclude that the number of streaming services is likely to drop and streaming economics are expected to be more unevenly distributed than legacy media. and when it comes to netflix, they highlight the reasons why the company needs to start

thinking about perhaps a broader fly wheel. our julia boorstin has more on that today. hey, ulia. >> such an interesting report here, carl. and so much of this look at the future opportunity and with the future of the streaming landscape will look like, comes down to the fact that in the most valuable markets, namely the u.s., it's very saturated. and it was really interesting to look at the chart here and the forecast of how when it comes to the u.s., assisit's a zero-sum for these streaming services. and when it comes to advertising, it's not like ad dollars are just going to help these companies bring their prices down. that's a complicated equation, as well. there's some talk about consolidation, but also a rebounding, which is something that we've been talking a lot about here. how will we see these new bundles form? is it just about a bundle of espn plus, disney plus, and hulu, or will we see these bundles really be solidified

around things like amazon prime video, and the way they're using the video and entertainment content as sort of an anchor for some of their other assets, as well. >> speaking of prime video, julia. and it's been a busy week for football, prime included. but, i mean, we're judused to b numbers on nfl, but when you're talking 40-plus million people watching a single game over thanksgiving week, that definitely turned some heads. >> nfl on cbs delivered record-setting viewership on thanksgiving weekend. the thanksgiving weekend viewership, 90 million viewers in combined average viewership. these are huge numbers here. and i think it really speaks to the fact that sports are the most valuable content on live tv, hands down. and this report actually digs into this a bit. and says that sports can be an gr aggregator into its itself. and sports can be carved up and divided up around more platforms than any other content. and this idea that sports attracts people where other

content forms need an aggregator. it's really a different kind of content. and what we saw with amazon, creating this new black friday game and using that in conjunction with black friday shopping wing really speaks to the particular value of sports content and how that's different, from original scripted content. where you'll go to an appletv plus or a netflix and say, what kind of content do you think i'm going to like, whereas these established brands and the nfl, the nba, there's nothing else like that. it's going to be a different type of monetization opportunity for these streaming services, but also, carl, as you well know, it means the cost of those sports rights will only continue to increase. >> there are a lot of good charts in this note. i thought also what was interesting, the saturation that we've reached the saturation point on streaming. and in many places, is bigger than paid tv markets. so what's the upshot. what do analysts think is going to happen? is it consolidation, is it changing in the way we value these companies, the economics of streaming? >> perhaps all of the above,

sarah. and i think you're absolutely right. this is something i don't think we consider enough. we think about peak paid tv and think, that must have been the ultimate in entertainment consumption and saturation. the reality is, more people right now are subscribing to streaming services than subscribe to paid tv services at their peak. so i think there's a sense of consolidation, if not of companies, because of the regulatory environment, a re-bundling of services, where we may see these services offered together. the fact that verizon was bundling up streaming services on their own accord, they're sort of making themselves the platform that can be the go-to platform for their entertainment services, they want to be the base of the bundle, which is how we used to call it. so i think we'll see a rebounding and perhaps a consolidation when it comes to the really big companies, it will be hard to get any of those deals approved. and i think a sense of, if it is a zero-sum game in the u.s., because it is such a saturated market, a lot of the growth will have to come internationally,

where those subscribers may not be as valuable, so that puts more pressure on the ad market there as well. >> julia, thank you! julia boorstin, digging into that barclays note on streaming. up next, can nvidia repeat its success of the past year? we'll hear directly from ceo jensen wang, stay with us.

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nvidia's chief jensen wang speaking of a deal book summit earlier this hour, just one of a slew of high-profile appearances he's made in recent weeks, including in all the big tech cloud conferences. our deirdre bosa has more on today's tech check, even as they continue to present at the wells tmt conference. >> jenison has been everywhere this year. he's always saying something interesting or important. deal book the latest stop on his tour. have a listen. >> you can't solve this new way of doing commuting by just designing a chip. every aspect of the computer has fundamentally changed.

so everything from networking to the switching to the way the computers are designed to the chips themselves, all of the software that sits on top of it and the methodology that pulls it all together, it's, it's a big deal, because it's a complete reinvention of the computer industry. and now we have $1 trillion worth of data centers in the world, all of that's going to get retooled. that's the amazing thing. we're in the beginning of a brand-new generation of computing. it hasn't been reinvented in 60 years. this is why it's such a big deal. it's hard for people to wrap their head around it, but that's the -- that was the great observation that we made. it includes a chip, but it's not about that chip. >> yet, as ben thompson's news letter put it this morning, he who controls the gpus controls the universe. it's a "dune" reference. so jenson huang has become the unofficial spokesperson of genai.

now huang has been in washington to speak to lawmakers, taiwan to meet suppliers, and on stage at every major mega-cap cloud and ai keynote. there was google cloud next in august, microsoft ignite in november, amazon's aws reinvent just yesterday. getting a little help from nvidia and huang gives more credibility and more sizzle to their efforts, and amid a shortage of nvidia gpus, critical to ai tools, it helps to show their cloud customers they have access to the man himself. this was a particularly interesting dynamic, because it comes amid speculation of growing friction between the two companies. amazon has been pushing its own in-house ai chips, while nvidia is moving on to amazon's turf, offering more cloud computing services of its own. for now, they still very much need it each, and the bottom line is the generative ai arms race is creating new competition and alliances across tech, and we're still not sure how it's

going to shake out. huang and nvidia, they might have the most at stake as new challenges continue to pile up. to name just a few, there's those export controls to china, more competition from the likes of amd, but also amazon and the big tech players. and a more than gain this year that will be very tough to repeat, guys. >> on the amazon front, is that a headwind or a tail wind for nvidia that they're deepening their relationship on one hand but then building out their own chips much like microsoft is, right? >> exactly. it's both. and that's why neither are willing to sort of abandon the other. and that's why amid these sort of simmering tensions that are growing between the two companies as they move on to each other's turfs, they still need each other. amazon has spent so much on capex over the last few years. microsoft and google will continue to. that's what jensen huang was talking about in that sound bite. it's all being reconfigured right now. they're restructuring their

infrastructure for their cloud units, and that requires, for now, gpus from nvidia. so right now it's sort of this frenemy situation where they need each other but we're not sure how it will shake out. it kind of remind me of these rivalries and alliances, apple versus qualcomm versus android and some of the alliances made there, too. >> i thought you would appreciate huang saying he is appreciative of his corporate governance and board structure, while not necessarily bashing the openai nonprofit status. >> he was careful. he's always so candid, which is something we like about him. >> thank you, deirdre. deirdre bosa. up next, apple trying to unwind its goldman sachs partnership.

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and up to 4 hours of battery back-up to keep you online. only from xfinity. home of the xfinity 10g network. apple searching for a new credit card partner looking to part ways with goldman sachs sending the bank a proposal to end their deal within the next year to 15 minutes. so, as goldman sachs ends its foray, who is likely to step up behind apple's card and savings accounts? a closer look with cnbc banking re reporter, huson and steve kovach. bring us up to speed on this partnership. >> the writing has been on the while. david solomon has been clear that consumer banking has been a money loser for them. they are exiting the other businesses and now finally the last part of it is there were

discussions about amex take that go over. we have acknowledgement, you are not in the business anymore, we agree with you you're going to be out of the business, and we're going to give you about 12 to 15 months to find another issuer to pick it up. >> how lucrative of a deal is this? >> hugh and i were just talking about this. it's such a strange move, it's not like apple created a new digital product but they did make it a lot easier and more visible and transparent than most other credit cards are. for example, sara, making your monthly payment, it can tell you if you pay this much money, here is how much interest you will be charged where you don't have that kind of clarity necessarily and that nice user interface you might have when you're paying off your credit card through your amex app or something. that's part of it, but that also

hurts the credit card lender, because they kind of benefit from keeping those waters a little muddy about how much you're actually paying as a credit card customer, what your interest rate is and so on and so forth. hugh and i were talking about this calendar billing, starting over on the first of every month is another issue they will have to work through. i wouldn't be surprised if wherever apple lands next, which ever bank it is, whether it's a capital one, they will have to renegotiate the intricacies of how the app actually works and the payment structure, too. that's not how traditional companies work. it's clear it didn't work out for goldman, sara. >> hugh, you and steve cover opposite ends of this, would we argue this is a bigger u-turn for goldman than for apple in terms of unwinding this participate of the business?

>> it's the final embarrassment for goldman sachs. they've been clear, as we talked about, this is not a business for them. apple is committed to this and they have millions of users. and for apple, the stakes are higher because the handover to whoever this is, and, by the way, there are only a handful with the scale and balance sheet who can handle this. capital one, chase, barclays, maybe synchrony, perhaps amex but doubtful. whoever takes it has to do a good job and that will be complicated. it's a defightful product. >> do we know apple wants to pursue this and diversify? >> and wallet itself.

just the wallet app in jun is a huge part. it's another part that keeps the iphone sticky and not moving to android or something like that. there's a bigger risk with the new eu regulations and eu is poking around the wallet app and making pushes for apple to open that up to other wallets as well. that's another thing to watch even as apple tries to find a new partner. >> meantime, jpmorgan's strategy releasing the '24 outlook, 4200 target on the s&p and earnings both of 2% to 3%. they do recommend investors be overweight bond proxies and quality with utilities the sweet

spot. >> he has been bearish but worried about geo politics, shrinking growth, you can make the case. most people have been more optimistic on the soft landing story, fed kuntz, helping that out. a lot of data tomorrow. to frank holland and "the half." carl, welcome. i am frank holland in for scott wapner. another big pullback in yields as more fed speak moves the market. we close out a november to remember. our investment committee is standing by. joining us for the hour here at post 9, joe terranova, kari firestone, sarat sethi and steve weiss. a check on the markets with the markets off their eyes earlier today. the dow is up fractionally. the big thing we're looking at is yields right now at 4.30, just a short time