it is 5:00 a.m. here at cnbc global headquarters. welcome to cnbc. here is your "five@5." head-to-head, vice president kamala harris and donald trump facing off on their first debate the candidates fact-checking each other on everything from tariffs to taxes to the future of the u.s. economy. >> his plan is to do what he has done before, which is to provide a tax cut for billionaires and big corporations, which will result in $5 trillion to america's deficit. a potential market mover as

the august cpi report, it is one of the final reads on inflation before the fed's meeting coming up next week a lot of people will decide whether it's 25 or 50 basis points >> big banks a focus after a terrible tuesday a big warning from jpmorgan chase's jamie dimon takes down a risk for u.s. investors. >> the worst outcome is stagflation. you know, in my own view, i wouldn't talk it off the table. plus, oil bounces off of it lowest level in three years as hurricane francine bears down on the gulf coast. and nippon steel tries to solidify their deal. it's wednesday, september

11th 2 11th, 2024 you're watching "worldwide exchange" on cnbc. good morning i'm frank holland. we're going to check on the u.s. futures we saw the s&p and nasdaq both posting back-to-back sessions, however, the dow closing in the red it's in the red across the board. closing down 20. the dow opening 180 points lower. the nasdaq actually bouncing off of its lows, just under half a percent right now, down about 78 points the big focus for today is the banking sector that's after a warning from jpmorgan chase lowering its outlook. the bank coming off its worst single-day drop since all the way back in 2020 we're watching the banks and the premarket. you see jpmorgan chase down a half a percent the premarket facing pressure as

well you can see right here across the board, citigroup, fractionally lower wells fargo down half a percent. bang of america one of the hardest hit, down 1% we're checking the bond market ahead of the key inflation report it's expected to tick down slightly year over year. core expected to remain just about the same at 2.2% yields at the lowest level since june of 2023 take a look. the benchmark at 2.31, the 2-year at 3.56 and the 30-year at 3.93. we're looking at energy, oil moving higher this morning but keep in mind, it's moving off its low since 2021 looking at the outlook for crude, francine is bearing down on the gulf of mexico. looking at oil this morning, you can see it is moving higher. so wti, the u.s. benchmark, up over 2%.

what you want to look at is what it's trading at per barrel back below 70 bucks a barrel brent crude, the international benchmark trading at 70.45, up 1.75%. let's see how the markets in europe are reacting. our silvia amaro is in london with much more on that trade silvia, good morning. >> very good morning, frank. always good to see you at this stage we're lacking stroun conviction in european equities, but look at the ftse 100. this is after some disappointing economic data. we saw the latest gdp reading showing no growth in the uk economy in the month of july that had also been the case in the month of june. let's see what the bank of england tells us when it meets next week.

this is what we're looking at in the european session we had a lot of corporate announcements this morning for instance, in the retail space, inditex actually posted better than expected autumn sales. that is boosting overall the retail sector. as you can see on your screen, it's the best performing sector, up by about 1.6% we're also monitoring quite closely what's happening in the banking space after news that unicredit bought a 9% stake in the german lender, commerzbank let me take you to the worst performing when it comes to some of the performances we had seen yesterday, health care had already been under pressure after disappointing results in terms of the lung cancer trial by astrazeneca, and health care continues to be one of the sectors under break pressure this morning, down 0.4%. but at this stage, the worst one, telecoms down by half a percent. as you can see, frank, at this

stage, all eyes are on the cpi of course, tomorrow, we're also going to get a new ecb rate decision in europe. >> yeah, a lot of things going on with central banks both here in the u.s. and in europe. silvia, always great to see you. as we mentioned before, u.s. futures are under a bit of pressure as they assess last nate's presidential debate and await the august cpi joining us now is our next guest, a member of the cnbc financial counsel. ivory, good to see you. >> good to see you as well, frank. >> following the presidential debate last night, which one do you think is having a bigger impact on futures right now? >> i think it's the cpi. you know, everybody is looking at the fed and what they're going to do next week and how much they're going to cut. the market is so addicted to low interest rates and liquidity i think that's going to have a far greater.

path on the markets than what we heard last night. >> the consensus is this is the final data point, helping the fed decide in your mind, does it matter does it matter if it's 25 or 50? is one going to move the market? is one going to scare the market we've heard a lot of different theories on "worldwide exchange." >> i think 50 basis points is going to move the market a little bit more because we're going to get a re-acceleration of inflation we may not another chance to cut interest rates when the next cpi comes in hotter. they may want to front run the inflation and increase the amount of rate cuts they have now because they may not have the opportunity later on in the back end of the year. >> wait, ivory you're saying a re-acceleration of inflation because the estimates have it pretty much holding steady from other economists what makes you think it might reaccelerate >> like shipping containers, for example, there's a 12- to

18-month lag it hasn't hit yet. what's happening with the red sea and the houthis, i think we're going to e soo all of those start to hit don't forget, rent and autos have sort of plateaued that may -- that may change, right? that's already embedded into these numbers, and my guess is at the back end of the year, we'll start to see the other factors play a role in the prints we see. >> i saw a note where you think it's reaccelerating. that's a bit of a contra view. that makes you bullish on gold and what people call digital gold, bitcoin. give us a thesis there w why do you think it's reacce reaccelerated? >> we're about to cut interest rates even though they haven't hit their inflation target we're spending $3 billion a day. that's double what it was 2 1/2 years ago, triple what it was

ten years ago. that i have to monetize all that debt remember, you're changing something in abundance, a dollar for something that's scarce, which is bitcoin, bitcoin, because we have this explosion of debt, that that's going to outperform relative to the debasement of the currency gold does well when you have gdp that's slowing you had gdp in the fourth quarter that went up 3.1%, but now that's plateaued the economy's starting to slow down. >> didn't mean to cut you off there. you see volatility coming. with that expected volatility, you're advising your clients it's worth mentioning again. we're going to show it right now. one ticker is bjun, the other is ajan t you're basically covered for the first 9% of losses and the

second for 11. why now? >> the reason you have allocation, you want to diversify your portfolio and normalize the return so you don't have the big swings up and down, right? so as one asset class zigs, the other zags they become increasingly correlated that's why you start to add the alternative classes. they're not as correlated as the markets. now you can diversify with one other thing, which is called the strategy in other words, you may have like -- like bjun has the market cap. you only get 20% if the market's up 15%, you get all 15% of that. on the flip side, if the market is down 10%, you only lose 1% because you have a 9% buffer if the market's down 5%, you don't lose anything. these reset every year in this case, it resets in june. what i'm doing is putting

guardrails on the portfolio. that's another layer on top of the asset allocation. >> you're one of many. ivory johnson, also great to see you. thank you for that investment idea >> you've got it, thank you. for much more, head over to cnbc pro to cnbc.com/pro. we have the one word all investors need to know. and coming up, we'll have the highlights from the debate and much more on the inflation report we're going to speak with jpmorgan's joyce chen with her top choses on the fed. also francine and everyone is bracing. we have a lot more on "worldwide exchange. stay with us

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welcome back to "worldwide exchange." vice president kamala harris and former president donald trump faced off last night, the two sparring on economic issues including inflation and tax cuts >> we have inflation like we've never seen before, probably the worst in the nation's history. we were at 21% that's being generous because many things are 50%, 60%, 70%, 80% higher. >> his plan is to do what he's

done before, which is to provide a tax cut for billionaires and big corporations, which will result in $5 trillion to america's deficit. my opponent has a plan that i call the trump sales tax, which would be a 20% tax on everyday goods that you rely on to get through the month. >> for much more on that, let's bring in jaret seiberg good morning great to have you. >> good morning. >> first, i want to get a quick take on the debate did you see a clear winner we've been looking at the odds all morning long we seem to see a bump the vice president kamala harris. did you see a potential winner >> the winner is every democratic voter breathed a huge sigh of relief compared to what democratic voters went through with the biden debate. they've got to feel a lot better this morning harris performed well, she got under trump's skin but, you know, the reality is

unless you have an opponent who does as poorly as biden did last time, it's very hard to get a knockout in one of these debates. >> hard to get a knockout during the debate something i want to ask you about. something of a pop culture moment after the debate, taylor swift giving an endorsement for vice president harris is that meaningful >> yeah, i wrote about that. i don't know if it was last night or this morning. i think that's a huge deal it's going to be a talking point all day, particularly her connection with the nfl. it's going to get talked about over the weekend when people are watching football. so if you're a democrat and you had your candidate who performed well fwh the debate and then you get the taylor swift endorsement, again, you went to bed pretty happy. >> all right speaking of endorsements, there wasn't a lot of economic talk, financial policy talk during

this debate, but vice president headquarters went out of her way to talk about some endorsements she has for her economic policies i want to play the sound bite for you and get your take on t >> the best of our country, if not the world have reviewed our relative plans for the future of america. what goldman sachs has said is that donald trump's plan would make the economy worse mine would strengthen the economy. what the wharton school said is donald trump's plan would actually explode the deficit. you know, a lot of talk about rising debt here in the u.s., jarrett. is this a meaningful point is this something that resonates with voters? >> yeah, i mean, the debt's a really complicated issue when it comes to voters. generally republican voters care a lot more, yet it's hard to august that trump isn't the bigger spender among the two, and this would be tax spending rather than social safety net

spending as soon as i say u the goldman sachs report a week ago, i knew it was going to show up in this debate it was tailor-made thrown at trump. i thought she handled that well. to handle the wharton analysis, that's where trump went to school another way to needle the former president. again, you know, it was really smart moves, but i'm not sure it causes any trump voters to suddenly say, you know, i need to rethink how i might cast my ballot. >> all right one thing we didn't see a lot of deep conversation about were tariffs. in a lot of ways, that seems like that might be one of the defining issues between these two campaigns and inflation tariffs. in your mind, as we look at this debate, are tariffs going to become a bigger issue when it

comes to this campaign >> yeah. i think both sides are emphasizing tariffs. i'm surprised it only took up three or four minutes in a pretty long debate you know, harris has defined this as the trump sales tax. trump argues this is his solution to paying off the debt, to financing additional tax cuts so i think we're going to hear a lot more about tariffs and what they can do and how much money they can really raise. again, tariffs impede free trade, and free trade has been the underpinning of the western economic model for decades now, and so it's a really big deal, and it do e serves more a attention than it's been getting. >> jared sieberg, thank you for your time and for your insight. >> absolutely, happy to join you. coming up on "worldwide exchange," we have your big "money movers" and a mean

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and welcome back to "worldwide exchange. time now for your big "money movers." that's three big stocks of this morning. we're going to start off with shares of dash & buster's. they're jumping after the arcade and restaurant reported an estimated profit but the company says turnaround offerings including menu and

price offerers should include revenue and sales, up just about 13%. gamestop, however, falling sharply. surprising investors with a second quarter profit, but sales dropped more than 30% than it forecast gamestop also filing for an offering of up to 20 million new shares and it expects to close more stores than it has in the past two years shares down half a percent. oracle with better than expected quarterly results this morning you can see shares are down just about a half a percent. coming up on "worldwide exchange," the case for 50 basis points jpmorgan's joyce chang is here with her take on the fed ahead of today's cpi report. and as we head to b break, live look at the 9/11 memorial

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. it's about 5:30 a.m. in new york there's a lot to cover yet futures get ready for the cpi

report the fed is expected to cut 25 or 50 basis points. shares of big banks are lower after warnings from top ceos that it should be a tough path forward. should investors be concerned. and what the bank's ceo says about the conglomerate it's wednesday, september 11th, 2024 you're watching "worldwide exchange" right here on cnbc ♪ and welcome back to "worldwide exchange. i'm frank holland. thank you for joining us let's get you ready for the trading day ahead. let's take a look at the stock futures right now. they're in the red across the board. the dow looks like it would open 190 points lower, the nasdaq down a third of a percent, 75 points lower right now we want to look at some of the

biggest drags on the dow we would open at 190 points lower. unitedhealth down 50% -- excuse me, half a percent not 50%. that would be crazy. jpmorgan chase down half a percent. followed be i intel also down by just about half a percent. we also wanted to talk about the banks overall. we saw banks moving lower yesterday after some top ceos talked about the impact of possibly net interest income we'll talk about that much later in the show. for now e i want to talk about the bond market. yields, they're at the lowest level since june of 2023 take a look at the benchmark the two-year, 3.6. the 30-year back at 3.92. we watch hurricane francine. it's expected to make landfall on the gulf of mexico. we'll look at the impact in just a moment take a look at oil right now

it's up big right now in the premarket. wti up 2 1/3%. brent crude up almost 2.5. that's a look. now let's take a look at this morning's top stories. nippon steel looking to take over u.s. steel. silvana henao has more. >> the vice chair will meet with u.s. officials in washington today to save that nearly $15 billion deal that will include a sitdown with the committee on the investment, which argues that the deal would raise national security risks. meanwhile berkshire hathaway unloading shares of bo after

bank of america remains berkshire's third largest holding at just over 11% behind american express and apple and speaking yesterday, b.o.a. ceo talked about it. as you mentioned, we are watching energy prices with hung francine expected to intensify more before making landfall in the gulf later today they're all higher this morning, and oil and gas companies in the south have been forced to shut down production in that region, which produces about 15% of all u.s. crude and 2% of natural gas. the u.s. offshore regulator estimates about 25% of the

gulf's oil and gas production is currently offline, frank. >> certainly something we'll watch on c nbc silvana, thank you very much. turning back to our top story, wall street counting down to the release of the august cpi. that's at 8:30 a.m. eastern time it's be ever the fed meeting next week. economists are expecting fed prices to tick down slightly from last month. core inflation expected to hold steady at 3.2% while prices are trending lower, ceos at some of the country's biggest banks remate discipline on the future path of the u.s. economy. >> i would say the worst outcome is stagflation it's recession with i here inflation. in my view, i wouldn'tn't take it off the table. >> our team sort of says no stagflation issue at all that's because they believe the underlying economy is at 2% by the end of the year. that is all trend growth rates

>> and joining me now is joyce chang, chair of global research. good to have you here. >> good to be with you, frank. >> i want to get your take on the two sound bites. your boss, jamie dimon seeing stagflation. the other not seeing it. >> if you look out to 2025, there's a lot of risks there the services side is still running high, but there's the debate on what will happen with respect to tariffs if you have an increase in tariffs and just some of the work we have done looking at this, you look at a 10% universal tariff, you're looking at it. you look ahead between services, some of the tariff risks associated with the elections, you could still have some upside surprises as we look out into

making a 2025 forecast on what will happen. i think more immediately what we're going to see is some of these upside surprises ar are ebbing. >> it seems like you're saying stagflation depends on the outcome of the election. only one candidate wants to see tariffs. >> the tariffs are going to go away but you're going to see higher fiscal spending. we do see growth slowing down. the stagflation, part of it is inflation. part of it is the growth outlook. you're not seeing that in europe and in asia that growth is picking up that much so it had really been anchored on the u.s. growth story, which is slowing down. we've got a global expansion that's growing, but it's uneven. >> we've hiad people on

some think it will spook the market others think we need it. >> it's a dual mandate right now you do see some moderation of the labor market and i do think that the combination of some of the upside risks of inflation over the near term coming down and the labor market condition softening, which is at odds with the rest of the world really put in place, 50 basis points being the right thing to do. when we look at the rest of the world, we think the gradualism is going to continue there, but for the fed, i think the focus is on the dual mandate i think there's still a debate i wouldn't necessarily say this is something that's unanimous, but we're looking at 50%. >> you have have dual responsibilities too you look at the economy and you look at the markets. i know you're saying this cut is going to be good for cyclicals, staples, health care, utilities, since jackson hole, they've moved higher they've moved down 1 1/3%.

staples, 2%. does the 50 basis point cut, does that continue is that already priced in? give us a sense of what it means for the markets even though you think it's good for the economy. what does it mean for the markets? >> i think 50 basis points may not be fully based in at this point in time, but i think some of your defensives are going to do better here health care, facilities. we think on oil, it's up valued. we think 80 is on target they've outperformed and i through you can see more of that the uncarry, i think it's over you had some positioning in some of the mag 7. >> why do defenses outperform with a 50 basis point cut?

that seems confusing. >> i think you still have to look at the market you have technicals, a lot of the carry trade was unwound, but if you look at positioning and valuations, there was risk there. some of the more defensive sectors, looking at health care, real estate, staples, telecom, more emphasis has been put on more of it, looking into the elections that joyce change, also lack forward to your insight. coming up on "worldwide exchange," betting on obesity kiugs. ving thera, you see shares up about 2.5% we're back in just a moment. to help you see untapped possibilities and relentlessly work with you to make them real. at betmgm, everyone gets a welcome offer. so whether you're courtside trying to hit the over... work with you

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exchange." we start with bank of america. b.o.a. see as slower catalyst ahead and risk for patent litigation jpmorgan initiating viking therapeutics jpm says viking's oral obesity drug could be highly competitive in that very popular space. and jefferies upgrades williams sonoma. the uk economy sag

cincinna-- stagnating for the month of july. and shares of 7-eleven's parent company in japan falling. there's a $38 billion deal they've asked them to retain all documents for a review. and bank of japan policy makers will continue to raise interest rates they added that last month's market selloff has not changed the bank's plan. coming up on "worldwide exchange," we have the one word that every investor needs to know today. plus, trouble ahead for the big banks. shares are under pressure once again on new warnings from top sector leaders we're going to talk to oneop t analyst on whether the concern is real or overblown we'll be back on "worldwide exchange."

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[sfx: wind, rain and rolling thunder] with the vision to see what's possible and the grit to make it happen, morgan stanley can help create the future only you can see. [crowd cheers] [music out] welcome back to "worldwide exchange," taking a look at f futures, down. the dow would open 175 points lower. the nasdaq well off of its lows earlier, down. we're looking at some of the gainers on the dow chevron on the top of the list those shares up half a percent remember, we're seeing a big bounce coca-cola, staples, one of those names that are going to do well. up a quarter of 1% the laggards on the other side

unitedhealth down half a percent. jpmorgan chase we're going to talk about some of the pressure on some of the banks this morning yesterday financials, those weighed on the dow they're down again this morning as i was just mentioned. two big banks. goldman sachs david solomon saying trading revenue could fall 10% daniel pinto telling an industry conference that it will drop more than analysts expected next year jpmorgan saw their biggest drop yesterday since 2020 we want to high light shares of ally financial after the consumers are struggling to pay off their loans. let's discuss whether they're company issues or major red flags for the entire sector. good morning great to have you here. >> thank you for having me. >> let's start with the headline question i'm looking at financials. they're up 17% year to date.

now we're getting warnings from some of the biggest players in financials is this a big situation investors need to be worried about, or is this simply a bump in the road? >> i think it's a bump in the road it's an area that we've been talking about for some time for jpmorgan as you pointed out yesterday at an industry conference, their cfo suggested that the net interest income, that the consensus had for next year is too high and they've been telling investors now they've been overearning net interest income, and the reason they believe it's too high is they expect the federal reserve to be cutting interest rates steadily between today or september, let's call it, and the end of next year, and they're so-called asset sensitive, meaning they benefit when rates went higher, and they did an outstanding job when rates went higher, but they've been warning that eventually that's going to run its course.

>> very quick, a bottom line, is this a jpmorgan issue or a broader bank interest when we're talking about net interest income >> if banks are positioned for rising interest rates, it will impact jpmorgan, but most banks are not asset sensitive. they're neutral to slightly loolkt sensitive. >> let's get to goldman sachs, forecasting a decline in their trading revenues that seems like a big deal for just about everyday. >> it's interesting because there was mixed results. other banks gave guide answer. goldman was by far the weakest you had other banks talking about revenue being up slightly versus down by 4%. third quarter last year was a very strong trading quarter for goldman in particular as well as citigroup because of fixed in

trading, and the trading this year is a little weaker, so what i think you are going to see are mixed results. but clearly goldman's numbers were the weakest. >> what about allied financial kind of flagging some issues with consumer credit and people having the ability to pay off auto loans and things like that, is that something that you see banks struggling with or is this more of an ally issue? >> it's more of a lending issue. jpmorgan gave guidance on credit card losses than what they set in line earlier in the year as others talked about, credit being relatively resilient so i think it's more of an ally issue. they tent to be a little more aggressive in their lending than some of the bigger commercial banks, but it's something to keep an eye on if you're in the camp that the

unemployment rate would rise steadily through next year, you'd see more rise. for now it's an ally-centric issue. >> i don't want to get too in the weeds. sometimes when you say this, people's eyes roll and they change channels. the battle game proposal, the fact that it's not as onerous, has that been priced into the stocks is it not as bad as investors i thought it would have been >> i think most of it is priced in we were all expecting it to be much less onerous. it's going to carry high levels of capital for the greater risks they have. but as you pointed out, it's much less half of what they were originally expected to carry in additional capital so it's essentially a new rule to build up capital, and it's not going to be as significant

as it was in the original rule, which came out in july of >>. >> ger /* /* gerard, thank you very much. coming up later today, don't miss an exclusive interview with goldman ceo david solomon. stay with us much more "worldwide exchange" coming up in just a moment tony, its gone. no. how am i going to do this? welcome to the mdy mid-cap cup, presented by state street global advisors. today's challenge is to play 9 holes without the middle of your bag. how does that sound? that sounds terrible. ♪♪ ♪♪ ♪♪ ♪♪

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and welcome back a live look at the world trade center as dawn approaches. it, of course, looked very different just 23 years ago. also, here's the 9/11 memorial in new york city. today marks 23 years since the deadly attack on u.s. soil in which nearly 3,000 people lost their lives after three planes were hijacked and crashed into the world trade center, pentagon, and into a field in shanksville, pennsylvania. time now for your w.e.x. wrap campaign edition. kamala harris and donald trump facing off with 54 days until the election they sparred over inflation, the economy, and taxes they attacked each other in the

nearly two-hour head-to-head. >> his plan is to to what he has done before, which is to provide a tax cut for billionaires and big corporations, cl will result in $5 trillion to america's deficit. my opponent has what i call the trump sales tax, which would be a 20% tax on everyday goods you rely on to get through the month. >> first of all, i have no sales tax. that's an incorrect statement. she knows that we're doing tariffs on other countries. other countries are going to finally after 75 years pay us back for all that we've done for your the world, and the tariff will be substantial in some cases. the best economist in our country if not the world have reviewed our relative plans for the future of america. what goldman sachs has said is that donald trump's plan would make the economy worse mine would strengthen the economy. what the wharton school has said

is donald trump's plan would actually explode the deficit. >> she doesn't have a plan she copied biden's plan, and it's like four sentences, like run, spot, run four sentences that are just try to lower taxes she double have a plan take a look at her plan. she doesn't have a plan. >> and moments after the candidates left the debate stage, the harris camp challenging donald trump to a second debate, also enjoying a new endorsement from pop star taylor swift donald trump said it was a great night and he'll think about another debate you can see the downward move right here on the stoxx. similar move in those predicted odds shares of trump media & tech down just about 15%. ahead of the market, we're

checking futures they're red across the board the nasdaq well off of its lows of earlier today for more, let's bring in sarat va see chi good morning. >> good morning, frank. >> what do you think of the cpi? >> the cpi number has been pretty well discountied. you could get a surprise there, if you get a negative number that the cpi number is too high, i think you'll see a lot more red in the market, but really the focus is how slow is this economy, what's the lay pore market doing, and, really, where is the fed going to message what they're going to do going forward. >> your w.e.x. word of the day is "messaging. i want to ask about the 25-point basis cut. a lot of people believe the final data point and fed's

decision-making process, where do we stand and how do you see it impacting the economy and the market >> so that goes back to my messaging, right i think cpi is going to be important. look, if you see a pretty ben everybody lit number, the fed could do 50. they could say, hey, we've got inflation under control, the message is we want to stay ahead of it because when you look at what they did last time, they were a little behind the ball. i think that's important if the cpi number comes in as expected or a little higher, it will be 25 they've got to take care of the not just the economy, but inflation. >> we're coming off the presidential debate last night bank of america came out with a note yesterday according to their research, their note, the s&p 500 has a negative average return in september and october. in a presidential election year, they say they have positive average returns of 1.4% return

basically what they're pointing to is historical precedence. do you believe we're going to see it repeat and those are the sectors to be in right now >> i like the sectors for fundamentals i'm not a technician that in this month you must do this or next quarter you must do that. we've had the market up over 15%. you have to look at where valuation takes you. fundamentals do matter in this economy, and financials, utilities, reits, they're cheaper compared to the market and you have much more opportunity there. do we get seasonality? of course, we do yo i've got a lot going on in terms of uncertainty, with the election, wars going on overseas, and an economy that we don't know what speed it's at right now and you have to be careful. i wouldn't be surprised if investors take money off the table. interest rates are dropping, so you'll see some allocations from eck request i the i to fixed

income and interest rates locking in as well you will see the two-years coming down as well. >> you're putting your money where your mouth is. looking at the chart since jackson hole, shares in double digits while the s&p is negative do you think that continues with a 25-point basis cut, or for that to continue higher do, you need a 50-basis-point cut? >> i think staples will do well. i'm not betting on that. i'm betting on fundamentals. they have price fixed in their contrast so that as it rolls off, they have additional. you want an interest rate lowering environment, but if you get 50 more capital flows because people would want to equity return as well as the equity growth. >> you're talking 2.5% you're saying with falling bond

yields, that's also attractive. >> it is because investors will say, if i still want equity exposure and i want to say i keep up with inflation, why don't you owe companies that have dividend growths. >> sarat sethi, thank you very much. one more look at futures and across the board that's going to do it for us on "worldwide exchange. "squawk box" starts right now. > good morning futures are lower ahead of the numbers. it's playing out like september, it really is, after last week. a couple of bright spots but down again this morning, triple digits. trump v harris on the debate stage. we'll have the reaction to last night's main event with both candidates going on the offensive on the economy and inflation insays here. and what's going on with

gamestop this morning? the shares are sharply lower it's wednesday, september 11th never forget 2024 "squawk box" begins right now. ♪ good morning, everyone, and welcome to "squawk box" here on c nbc. we're live at the market site from times square. i'm becky quick along with joe kernen andrew ross sorkin will join us. the consumer price index for august is coming out economists are looking for prices to rise by 0.2% with the core of food and energy also rising by the same amount ahead of