tv The Exchange CNBC September 5, 2024 1:00pm-2:00pm EDT
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kerry? >> costar, commercial real estate. if interest rate comes down, it helps homes.com. >> j&j. i think their total revenue guide is conservative. >> jb? >> paypal, hang thing there. i like the price action. >> see you in the final stretch. "the exchange" is now. ♪ ♪ i like those whiskers lly e. here's what's coming up this hour. more signs of a labor slowdown ahead of tomorrow's jobs report. the ten-year yield touching its lowest level since july of last year. stocks also taking a bit of a hit. the first few trading days of a month proving the september sceptics right so far. but our strategist has october optimism. also, watching u.s. steels under pressure after the reports that joe biden could block nippon steel's takeover, despite
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the administration's friendship with japan, but no one is a friend in an election year. we'll get the take on this troubled deal ahead. are you ready for some football? the nfl season kicks off tonight with the chiefs facing the ravens. we bring you the most valuable franchises in the leg where valuations have topped $10 billion. before that, though, let's get to today's market action with 49ers fan dom chu. >> there you go. i'm wearing the red tie just for the kickoff today. so it's not a comment on the chiefs so much, although they're a fantastic team. the markets are a little mixed right now. more tilted towards the red end of things, just like my tie and the 49ers colors. the dow down three quarters of 1%, 40,680. the s&p is down 22 points, roughly one half of 1% declines. you may recall over the last couple of days we told you the levels we were watching were
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right around 5505. that still remains that level of that 50-day average price on a rolling basis. we are now just a little below that, so we're trying to see if there is some stability around this 5500 level. we'll watch that particular trade. the nasdaq composite outperforming, although it's only up 0.1 of 1%. thematically speaking, transportation and airlines specifically outperforming. jetblue is up 9% after it gave current quarter revenue guidance, updated guidance, that was better than some analysts were looking for. jetblue up about 9%, carrying a lot of the carriers up, alaska airlines, all of these up between 1% and 7%. so keep an eye on these airlines. and then if you want to look at the m&a deal of the day, verizon, the giant out there, is down 2/3 of 1% after it confirms
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its deal to buy frontier communications for $38.50 a share. you may recall yesterday we saw a massive runup after that report that those talks were happening. we got the official confirmation. so we're giving back a little bit today, down 9%. but $38.50 in cash is the deal price for frontier. kelly, back over to you. >> the tie is a little pink there, dom. >> how about the pocket square? >> i'll see you soon, dom chu. let's dig further into the data. the smallest gains in payroll since january of 2021 in august. but both initial and continuing jobless clamsims improved last week. and services cmi, it came in stronger than expected, but the employment component weakened. what does this tell us about the economy and the wobbly stock market? andrew slimmen is here from
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morgan stanley. our very own steve liesman is here, as well. steve, i still can't shake the beige book from yesterday. i don't mean to bring up old news, but the employment thread throughout the reits this morning was interesting. what do you make of it? >> yeah. i think what we heard in the beige book yesterday was kind of confirmed in the -- at least the adp data we had. and just to remind people the thing that stood out was only 3 of 12 districts were seeing growths, the federal reserve groups. consumer spending ticked down in all districts. so when i look at the whole suite of data, i see a very big -- a mix, kelly, when i look at, for example, the beige book was weak. you also had weakness in things like jobless -- not jobless claims, the adp this morning. let me just find my list here. you had strength in
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productivity, there we go. weakness in spending, the jolts, i can't believe was just yesterday. some services, and that pmi you mentioned were moderate to strong along with factory orders. kelly, the way i've been putting it is this way -- the levels of everything is still consistent with a soft landing. we don't have big negatives. the momentum, however, is down, which you would expect if we were landing and landing softly. but we just don't know where it all stops. >> andrew, i'm glad you're here. we could debate as we have been what's going on with the macro. you're looking more at the flows. a lot of what's going on in the stock market is driven by who's buying and who's selling. yesterday, we were talking about corporate buybacks being a key part to watch. what would you say is significant about that? >> what's interesting about that is, you know, i hear everyone come on and say the second half of september is going to be weak. why is that? why is the second half of
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september? then you wind the clock back to august, and one of the reasons the market rallied so quickly off the low is the window for corporate buyback was open, and they accelerated the purchases because of the decline. >> oh, did they? >> then you fast forward to the second half of september, now it's right before earnings season, so companies can't buy back their stocks. so over half of all buybacks go on hold in the second two weeks of september. so oh, okay, maybe that's why the number one buyer of stocks can't buy going into a reporting season. so maybe that's why we tend to get a little more volatility. >> which makes sense. if you back out and say is that really a fundamental reason for stocks to linger, is it an entry point? >> of course. i think now is the time to just be cautious, and don't chase the defenses that are working, because i think when we get to the fourth quarter, that won't work. now it's just time we're in this
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unknown period. what's interesting is last summer, the market -- or this summer, hit almost 5700. there just wasn't enough upside to year end. we had another five months to go. so the market needs a narrative to sell off. you go fill in the narrative. >> i could easily fill it in. >> i just know there wasn't enough upside. so we need to have some turb turbulence. >> you've been bullish, so you felt as though we were hitting those year-end or outward price points a little too quickly? >> too quickly. the reason i'm optimistic, is remember on december 31st, we're going to be pricing off of next year's earnings, because that's the next 12 months. if you look at the bottoms up, which is the research anys talking to the companies, they're at 280. they started the year at 275 for next year. that number keeps going up. not the top down on wall street,
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but the bottom up. that tells me, they're not talking to companies, the companies are saying you better guide down your numbers. >> even though we've seen some high profile blowups. steve, what would you add to that? >> you know, always watch corporate finance as a way of figuring out where things are going. i was kind of gratified, when things got a little carry with the carry trade and the jobs number in early august, and the market seemed like the apocalypse was nigh, i look to corporate credit spreads and saw them not blowing out. in fact, they've come in. so this risk of default i watch very carefully, how much risk of default is being priced into the corporate bond market? i haven't seen much. there is some out there, but not the kind you see -- this gets to a whole series of data points out there, kelly, that you want to follow, which is, again, the
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levels are not bad. the momentum has been towards weakness. but take jobless clams. you're at 230. you have to get to 300,000, 400,000 in terms of worrying about a recession. gdp plugging along at 2.1%, down from the 3% that we did in the second quarter, but still level wise at potential. so i love what andrew is talking about and what he's watching in terms of what corporations are doing with their balance sheet. they have important economic outcomes, but i'm not seeing the fear of the apocalypse in those yields right now. >> as you know, andrew, as everyone looks at the spreads and says okay, which -- you know, sometimes they start to widen, but for the most part they've been quite tame. there's the sense of who's got it right? are spreads going to catch up to the stock market? so far, they're agreeing that the spreads have it right, so to speak. >> correct. absolutely right. what's important is right now you would be hearing from companies would be picking up
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the phone calling saying, business is good, but we're not getting that, which leads me to believe q3 could be okay, which means we're going to go into 2025 with those numbers, and that's why i think you -- >> we have to go, but i buried the lead, which is you're buying nvidia, is that right? >> well, not now. but one of the reasons, another little factor, why is it that momentum stocks do well in the fourth quarter? mutual funds, most of the fiscal year ends in october and they sell their losers. well, if they're selling the losers, what do they buy? the winners, which is why the winners tend to do well into year end, because people have sold what has lost. >> when are you going to be buying? >> i think it's too early -- >> nvidia? >> i'm going down the list. i think you want to have that list ready going into october. >> all right. maybe in that way a positive echo of the past couple of years. andrew, thanks for coming in.
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steve, thank you, as well. be sure to catch steve's interview with austan goolsbee tomorrow. that will be around 11:30 a.m. eastern. as the labor market shows signs of slowing, recruiter sentiment just hits it lowest point in 18 months. does that spell trouble for the jobs report? back with us is kevin snow. this is taking a notably more do we say down beat tone in the past couple of months? >> yeah, and great to see you, kelly. yes, you know, we're certainly feeling the pain. recruiter sentiment is at a 2.6 out of 5, the lowest level in 18 months. the workload, the number of jobs that recruiters are working on, are also down. it's been down for a few months now, and it's a really tight, tight, tight labor market. you saw in the jolts report, the hiring is down 5% year over
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year. but quit rate is down 10%. so if candidates aren't quitting, that causes even more pain, certainly if companies don't have the compensation levels that they want to offer these candidates to come quit their job, and 92% of the recruiters reported that 92% of the candidates that they're talking to are employed. so we have lots of people employed, fewer people want to quit. that causes a lot of pain in filling these overall jobs. >> one of the things we're looking for is vigorous hiring to absorb the new entrants we've seen into the labor market and anyone facing a layoff. where should we be looking for industries actively hiring and expanding right now? >> as you saw in the jolts report, and we have our own report, was down 8% in terms of overall job postings. so it's certainly taking a real hit. we saw on the -- in the recruiter index, health care
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services are still there in terms of overall jobs themselves. ironically, government jobs are still in the top four industries. they're down 2% since july. ironically, there's a lot of ai jobs now. so ai jobs in the tech industry represent about a little over 6% of all tech jobs, now related to ai. so you have ai skills, that's certainly a good place to go. the other thing we started to see is the growth of remote jobs. while those ticked down, their overall percentage of the open jobs are now at about -- a little over 6%. so companies, hey, if i need talent and i can't pay more money for the talent, let me provide a remote operation for them, as well. we saw that in the job report, so that remote level with those remote jobs. >> what would your takeaway be from a report like this either
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tomorrow or in the coming moments, still talking about positives or do we say this is a labor market that's contracting? >> so first off, for tomorrow's report, slight, slight gains. look, we've been saying "difficulty" for months, and when the government came out they had overstated jobs by 818,000, now we understand why we were correct. i think the longer term makes us really nervous. we saw the overall job postings themselves come down by 10% numbers according to the jolts report. we saw 8% total jobs in our report. that makes me very nervous for the next quarter. companies are -- we're still seeing some layoffs. people are lesser likely to quit, so there's less momentum there. and if companies don't have the compensation to offer people, and you saw that slide, one out of five jobs the recruiters reported are offering less compe compensation. so i think it does not bode well
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for what the next bunch of months look like. >> i'm going to leave it there. we'll see if that measures up, so to speak, or not. evan, thank you very much for bringing us the data today. appreciate it. >> thanks, kelly. have a great day. former president trump is speaking at the economic club of new york. let's bring in eamon with the headlines. >> take a live look at the former president, who is taking some q and a as we talk right now. he's wrapped up his prepared remarks and talking to the audience. he's engaging in a lengthy discussion here during the hour or so of his remarks about tariffs, tariff policy, giving a history lesson about former president mckinley, who donald trump used as an underrated president who says that tariffs work, they bring down costs and protect american industries and generate revenue for the u.s. government. he announced that he favors a
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15% corporate tax rate, but with a catch. take a listen. >> my plan calls for expanded r&d tax credits, 100% bonus depre depreciation, expensing for new manufacturing investments, and a reduction in the corporate tax rate from 21% to 15% solely for companies that make their product in america. >> so that last part is the key, kelly. we'll have to ask the campaign how they will define that, but he says he favors bringing corporate rates down from 21% to 15%, but that 15% only goes to companies that manufacture their products in the united states. so we'll get some more guidance on the details around all that from the campaign. but clearly, just a caveat here, with all the harris proposals out there on tax and on the trump proposals out there on tax, these are proposals during a campaign season. these candidates would have to
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get elected and then pass them through congress, the makeup of which is unclear right now, before any of that could become law. >> it was fun to see becky and larry and some of the journalists sitting up there with him. we're getting to the policy stage of this campaign policy, and the betting odds will reflect voters weighing much more of the nitty gritty of what the two would do. do we think there's more gap emerging between their policies when we heard previously when we were talking more broad brushes, that they were both on the flip sides of a coin. >> these are emotional appeals, really, what you see on the campaign trail. the former president beginning his remarks today, denouncing kamala harris saying that the united states is in the midst oh of what he calls an economic nightmare. so the real emotional hooks here. but they're trying with these various policy prescriptions, to rope in specific groups. the former president here
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clearly speaking to corporate shareholders, saying we're going to lower corporate taxes. that's going to be good for you and the stock market. we saw kamala harris and some of her proposals, speaking specifically to silicon valley perhaps by suggesting that she's going the deviate from some of biden's proposals. they are very much microtargeting with some of these specific proposals, even as they engage in these emotional appeals to voters more broadly. >> we're still waiting to hear from the biden administration if they are going to block the nippon/u.s. steel deal. thank you. we appreciate it. coming up, jpmorgan downgrading its outlook on china amid rising tensions and a challenging economic environment. now some of that pessimism is spilling over to the business world. we'll tell you which companies are cutting investment there is and what it will take to turn around china's economy. this software name is holding up. it's up 5% since our market
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guest called it one of the places to be two weeks ago. we'll speak with the ceo, next. and here's another check on stocks, all the major averages are now in the red, with the dow erasing a 110-point gain, and the nasdaq hanging on to about a one-point increase. back after this. >> this is "the exchange" on cnbc. technology officer but all you did was plug it in, you didn't do anything neither did you exactly exactly exactly exactly impressed? honestly, a little exactly (slurp) ♪(voya)♪ there are some things that work better together.
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welcome back to "the exchange." broadcom reports after the bell, shares are down 6% this week, the third biggest name in the etf, down 8% since tuesday. let's get more on what to watch for. >> now can broadcom change that story? the number one thing investor also be looking for, ai projections. does the semiconductor that sells its networking chips to big tech see a rise in the coming year? they expect it to come in between $11 and $12 billion. it is slowly working with meta and google to build their in-house chips. investors will want clarity on its reported partnership with openai and any plans to develop a chip that would rival nvidia, and an update on the challenges it's facing using intel's manufacturing process to build silicon wafers.
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the stock has lagged in recent days, but still up about 40% this year, and broadcom does not historically beat and raise guidance the way nvidia does. options mafgts s s guidance the way nvidia does. options mafs markets still expe a 7% move. >> more broadly, in some ways they're all barometers. but for broadcom in particular, this is a name lot of people like because it has the hardware and software, supposed to have a more robust model if you're concerned about the ups and downs in the chips cycle. >> one week ago when we heard from nvidia, that didn't provide enough clarity for the broader industry. so this is the second attempt for the market to basically understand what expectations look like. and broadcom is a diversified semiconductor player. so it's just a good gauge on how the market is expecting demand to go. there is a disparity in semiconductor sales right now. analog, industrial, automotive,
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not holding up well. the only thing holding up is ai. >> with jeep halting production, you think there's a lot of parts of the economy got doing nearly as well this one. thanks for now. we'll hear from a chainmaker powering ai this afternoon with broadcom, but now to a software company using ai to improve efficiencies to target issues and improve sustainability. aspen technologies was our mystery chart, climbing 34%, and will cut 5% of the workforce in the first quarter. here is the ceo, antonio petria. welcome. >> hi, kelly. good afternoon. >> thrilled to have you here. give us a closer look on what's happening on the ground, and what would you say is primarily driving business right now? >> what we see, especially in the oil and gas refining and
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chemical sectors is focused on continuing to drive efficiencies, but also managing their business to make it more sustainable, sort of managing through the energy transition. this is driving a greater focus on technologies and digitalization, including artificial intelligence capabilities. >> do you think the impact of ai, the spend on it, is going to prove overhyped and it will go through a correction period or will it climb even higher? >> kelly, in our case, we've been involved with artificial intelligence for 20 years, since the late '90s actually. we went through the ai winter in the late '90s. but since 2010, we've been introducing more ai capabilities into our products. it's not about a stand alone ai application, it's about enhancing the accuracy predictability of our products using these capabilities.
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we're seeing customers interested in this approach to ai, because in a way the first principles of engineering that exist in our products, the chemistry, the physics, the optimization, provides the guard rails for ai. and when you're deploying these capabilities in very complex assets to operate, you want to make sure that it's trusted, robust and provides those guard rails. so this that context, we're seeing customers becoming more discerning about the type of ai that they're willing to deploy in their organizations, differentiating between large language models versus ai algorithms that are driving specific use cases. so we continue to see increasing demand in these areas. >> this company was founded, to your point you've been around for decades. 1981 it was founded out of m.i.t. headquarters. our friend julie beale says she
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looks at smaller and mid caps, saying for those that missed out on the ai boom, your company is another way to play it with a track record to make oil and gas companies more efficient. that said, some of the analysts who -- shares are up by 5%, but the analyst community is concerned with writedowns in russia and so forth. can you tell us about the business prospects there in a time of tremendous uncertainty? >> i know now that we're going through a moment of economic uncertainty, and russia had to do with us exiting the country after sanctions were imposed. but the last two years, we've integrated a couple of great businesses into aspen tech. we've transformed them and we've moved into utilities and transmission and distribution of electricity, managing and operating the grid.
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and a business around the subsurface simulation for oil and gas exploration and production. now that we're through the integration and transformation of these two businesses, our side of the russia business, we feel very excited that we're now poised to really start executing on our go-to-market strategy, to drive and create use of our technologies. our customers are telling us that we're uniquely positioned, not only to help them drive efficiencies but to drive resiliency. for example, for our global refining customers, and we're the leaders in that market, we estimate that we create about $22 billion a year in value, incremental value. but also reduce the emissions by about 16 million metric tons per year, co-2 emissions.
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so this is the value proposition of aspen tech. we can make you more profitable and more sustainable at the same time. >> speaking of the company who works on these efficiencies, it makes you feel more bullish about holding stocks more broadly, thinking these will have gains. antonio, appreciate your time. >> thank you, kelly. appreciate it. still ahead, it's in surprise the dallas cowboys top cnbc's inaugural team evaluation list, but we'll look at their path to profitability and the franchise is likely to dethrone them. and one of openai's co-founders is raising $1 billion for his ai startup. "the exchange" is back after this this that you'll definitely want to hear. depending on
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authorities say four of the several victims died from so-called dry drowning, suggesting some of the victims found an air bubble in the cabin after it sank, but died when the air turned toxic after they consumed all of the oxygen. the senate committee said today it will hold a hearing next week to question four major semiconductor companies about the alleged use of american made chips in russian weapons found in ukraine. executives from analog devices, amd, intel, and texas instruments are expected to testify on compliance with export controls designed to block russia's access to american technology. youtube is tweaking its algorithm to limit videos showing teen's content about weight and appearance. in a blog post, youtube execs say the restrictions are rolling out globally, and will stop recommending videos to teens that idealize specific fitness
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levels, body weight, and physical features. that's going to be a tough thing for kids these days, kelly. >> tough to also have an algorithm figure it out. bertha, thank you very much. valuations for ai startups are continuing to skyrocket. this time it's openai -- safe, super intelligence and raising a billion dollars. is it a sign of a bubble about to burst. deidre, it's part of this larger discussion about whether ai will benefit a new crop of startups or just the existing platform incumbents. >> it also points to the fact that this is a race all about talent. let me just put that billion dollars in perspective. that's not a billion dollar valuation, but a seed round, meaning the earliest investment at the earliest stage of a company's life in the case of ssi, there's no revenue or a product right now.
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but this is seen as one of the most soft off research scientists in the field. he's going to fetch around a billion dollars, just like we have seen other figures in the space. again, technical research scientists raise huge amounts of money without products or revenue. so it's really sort of this white paper crowd, and ilya came from openai. he helped co-found that company with sam altman and then left because of safety companies. so ssi is all about developing ai safely, similar to what openai and anthropic aim to do. this is at the earlier stages. an investor in this deal said that this is essentially a bet on oppenheimier. otherwise, it doesn't make sense. that is why you are seeing the money follow these people versus the products. you see that from mega caps alike. >> real quickly, is this a large language model or something
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else? >> yes, we can assume so, because he's trying to create an alternative to what openai is doing. so yes, he's likely developing a foundational model, which means a ton of money. he needs to be able to get chips, talent, that's where that money is going to go. >> is it the content that's going to be training it is not being stolen effectively? >> it's even bigger than that. it's ai that doesn't wipe out humanity. that's it simply. that's what all of these are trying to do. that's why we need kill switches. >> at this point, the clients just want it to help them get business. i think everyone is past the kill switch point. but deidre, thank you. he will need lots of money. deidre bosa in today's edition of "tech check." coming up, astrazeneca confirming that employees in china are under investigation and being detained. we're live in beijing. and smartsheet popping on -- and
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five current and former astrazeneca employees are being detained by police in china. it let's bring in eunice yoon with the very latest on this story. eunice, what do we know? >> reporter: well, kelly, astrazeneca confirmed that a small number of employees are under investigation here in china. that statement came as a response to reports that five chinese nationals either currently or formerly employed by the company, were taken by police over the summer in relation to a probe into improper patient data collection as well as the importation of an unlicensed liver cancer drug. the uk pharma giant isn't commenting further. however, china is very important to the business, accounting for about 13% of revenue, of which it hit $6 billion last year.
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the industry also has been under scrutiny, kelly, for alleged corrupt practices. and that's something that we're seeing throughout the health industry. >> so, eunice, in this case, is this something that can distinguish it as -- does it seem i don't want to say random, but story specific or does it fit to a larger pattern that's been witnessed at all since that famous episode a year ago? >> reporter: yeah, and that's the difficult thing, because even online today, people were linking this to anti-espionage activities. and i think that guilty or not, what we're seeing is that the way the government handles these types of cases has been really just adding it to a mix of factors as to why foreign investors are turning more negative on china, because we
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have the geopolitical tensions, the slowing economy, the upgraded national security, as well as anti-espionage legislation, of which a lot of multinational companies complained it's very difficult to know how to comply because of what they consider to be vague wording. so you have all of this, plus high profile detentions. and then that gives a sense of what you were just describing, this arbitrary nature of all of this action. so, again, guilty or not, we will see the results oh of this investigation. but at the same time, the way the government handles it makes foreign investors very nervous. >> eunice, thank you for that report. the detention of those workers not the only bad news out of the region. jpmorgan just down graded china to neutral due to geopolitical tensions and tiffany just down sized its flagship store in
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shanghai. fred kemp is here, ceo of the atlantic council. fred, i mean, jpmorgan taking china to neutral, i'm not sure what their track record has been, but i think that's a mute point. it's a question of how low should it be? >> we know that 5% growth is overestimated. yours tr astrazeneca story, tha flowing out. but at the heart of all this, you've got china trying to export their way out of this structural economic slowdown, so that's part of what is behind jpmorgan's decision. they're not taking this on through stimulus, because that could undermine party control, so we also have nothing to drive internal growth. and then there are growing geopolitical tensions, the first one, you know, you could have new tariffs against china to take on their overcapacity and
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their export gluts. but you also have new tensions with taiwan, trying to force the eventual unification there. you have the ramming of philippine vessels in open waters with the eu that's come down hard on them over that. so there are a number of things, and china could turn inward and say let's fix all this, because it's not working, our party control is not working. we have to change the wait we're doing our economy. or they could lash out and to distract their own people and others from what's going on. let's hope it's not the second one, but i'm doubtful that they are going to be self-aware enough to really take on the reduction of party controls, to stimulate the economy and quick cracking down on some of the industries that have been the goose that laid the golden egg in the past years in china. >> i think their signals are crystal clear, honestly. that's what's making it so
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frustrating for a lot of u.s. companies. fred, let me ask you, because it's this kind of high profile example of potential nationalism we might face. both candidates, trump and harris, i believe, have called for the blocking of this u.s. steel sale to japan's nippon steel. now, i think japan was supposed to be, what they call a frenemy? you know the term, what is this diplomatic term? >> friend shoring. >> doesn't matter what the term is, because it's not working. >> the treasury secretary gave a friend shoring speech at the atlantic council. the whole idea was, we're going to de-risk, but work with our friending. well, who's a closer friend than japan? and so, for political reasons, for 19 electoral votes in pennsylvania primarily, joe biden -- sorry, also kamala harris and president trump are putting domestic politics ahead of american global leadership.
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because you can't ask the japanese at the same time help you crack down on china in its economy and economic malpractice, and then tell the japanese but you can help us when we're taking on china but not a good enough friend to invest in our steel. let's not forget, the worker would be better off. nippon steel and the japanese would pour a couple billion dollars into creating jobs, into modernizing. so this one person who i talked to about this today said friend shoring is fine, but there's no friends in an election campaign. so we have to live through november, but this is not a good sign to our allies, the japanese. >> i think it's a great larger point as we ponder what we'll hear from the biden administration on this potentially this week or next week. but there's a much larger signal that it's also sending to a key ally, as well. fred, thanks for your time. appreciate it. >> thank you, kelly.
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coming up, shares of dollar tree are rebounding somewhat today to break a nine-day losing streak and have lost 35% of their value in that time with yesterday's 22% drop. jpmorgan, vemo and loop downgrading it. the shares a urep 5.5% today. the shares a urep 5.5% today. back after this. i'm afraid i can't do that, jen. ♪ (suspenseful music) ♪ why not? did you forget something? ♪ (suspenseful music) ♪ my protein shake. the future isn't scary. not investing in it is. you're so dramatic amelia. bye jen. nasdaq-100 innovators. one etf. before investing, carefully read and consider fund investment objectives, risks, charges, expenses and more in prospectus at invesco.com. at aes, our energy solutions have powered the world forward for more than 40 years. and as demand continues to scale, so do our solutions. introducing maximo - our new ai-enabled solar robot.
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that is a cool graphic. >> i love it. >> cnbc crunched the numbers and the dallas cowboys remained the most valuable franchise according to the nfl team valuations. america's team is value at more than $11 billion. that's $3 billion more than the second-place rams. the list ranks overall franchise values of each of the 32 teams and according to the list the
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average nfl team is worth a record $6.5 billion. cnbc's senior sports reporter michael ozanian. $ $11 billion. >> you're killing me! i'm a giants fan. i know you're right. >> we can get into the nitty-gritty of which of these includes the stadiums? are they all apples to apples? what stands out to you? >> you said the key word, stadiums. in the nfl what drives the pecking order among the 32 teams is who generates the most revenue. you mentioned the cowboys $11 billion. the cowboys have enormous sponsorship deals with at&t, molson, unlike revenue from tickets, you don't have to share any of that. you get to keep all of that money and that's ywhy the cowbos are number one. i would have to imagine would like to pursue it if they could?
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yeah. it gets tough when you have a lease agreement that defines how much money you get and you don't fully operate the stadium. it's tougher for teams like, say, the indianapolis colts and san diego charges. los angeles charges -- strict tenets in that building. i still think they're in san diego. the old nfl days, but these teams don't get the bulk of the sponsorship revenue at the stadi stadiums and all of those jerseys that are sold. >> i don't know about the l.a. situation, but could some of these other ones? >> tough, tough, tough to do because the nfl rarely lets teams move, you know? that's why the chargers and rams co-built their stadium financed by stan kronk, the rams. the charges only about 15%. >> wow. that's a huge differential, and look, the larger point is the valuations keep climbing.
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as you said, you've been in the business for so long and everyone says they can't go higher and they still go higher and ultimately, don't you think the retail investor is the prize and if they can somehow, i don't know if europe is the example of this or not, but unlock these etfs that the everyday person could have exposure to? >> my guess is maybe eventually, but my guess is not for a long, long time and you'll see the slow march instead of 10% and maybe march 30% like some of the other leagues, that will probably happen first. some people have talked about maybe they'll go public. there have been times when sports teams have been public. i don't think the nfl will go there. the nfl doesn't need the capital. private equity, like you say i think that will largely help finance the limited partner portion of team deals which could be in excess of 3 billion. >> what is the share of money that's coming from tv deals versus ticket revenues and that kind of thing and it varies a lot by team, but how much do people have to rely on tv
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contracts ever increasing in order for the valuations to go ever higher. >> it's a huge portion. so this year, the league, each team no matter what city you're in or how good or how bad will share $375 million from all of the tv deals and streaming deals included. that's very important and it's part of the national revenue that gets evenly distributed which this past season was a little over 400 million. that makes up about 65% of their revenue which is why even if you're like the cincinnati bengals or one of these teams like the colts who don't have that great stadium deal, you'll still sell for well over 5 billion. >> that is incredible. michael, thanks for being with us. it's very fun to have you here and run through it all and a very fun day. for the full list, head over to cnbc.com, and tonight is the kickoff game and tomorrow roger goodell will join "squawk box." what is the nfl worth now in how many teams are there? >> 32 teams. >> i can't do my math.
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>> it's a lot. it should be a s&p 500 company and mike will be there september 10th in los angeles. to learn more and register scan the qr code or go to cnbc events.com/gameplan, and i will see you next hour for "power lunch" right after this. luncuse. extra benefits they may be eligible to receive at no extra cost. and if you have medicare and medicaid, you may be able to get extra benefits, see if there's a plan in your area and to see if you qualify. all of these plans include doctor, hospital and prescription drug coverage. plus, something really special, the humana healthy options allowance. your allowance. to help pay for essentials like eligible groceries, utilities and rent. even over-the-counter items. and whatever you don't
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