then? >> not necessarily. i think there's a lot of fluff. if something comes to a change the tax policy or the direction of the economy, i think the markets would be vulnerable. >> john, we very much appreciate your time this morning. we look forward to talking to you again, i hope, very, very soon. thank you very much. we'll talk to you again. make sure you join us tomorrow. "squawk on the street" begins right now. good tuesday morning. i'm david faber with sara eisen and bob pisani. carl is on assignment and jim has a well-earned day off. let's look at futures before we start trading a half-hour from now. we're set up what appears to be a higher open. that gets us to the road map,

which does begin with the market. that rally rolls on. the dow and the s&p both coming off fresh records. energy is leading the way to start this week. >> energy secondary jennifer granholm will join us live at 9:00. chuctalking oil prices to the reopening of three mile island. and the ceo of novo nordisk. >> let's start with the markets. and a run that started yet. bob pisani, welcome to the desk. tell us how you feel when we wrap up september. this week, not a great one for the market, in terms of history. >> there's two bad weeks and we're in them. the last two weeks of september are traditionally the worst

weeks of the year. se september is the worth month of the year. normally down 1%, 2%. and yet, we're up 1%. this tells you about the value of being careful of thinking that the events that hatch in the past and will predict the future. there's a lot of reasons to be positive. we talk about this a lot here. the fed is in easing mode. it's a huge positive right now. the economy, there is no recession going on. you can say a slowdown, but no recession going on. inflation is declining. earnings are growing. there are some negatives that are out there. jamie dim jamie diamond highlighted one of them. we talk about the fact that weighs on stocks in september and into october. we have elections coming up. uncertainly around that. and jamie diamond, speaking about geopolitical risks today, as well. if you ask me, david, the thing

i find worrying, is the markets -- sara, maybe you have a lot. the markets discounting an enormous amount of rate cuts out there. on top of the 50, another 150 basis points. >> 200 million the end of next october. >> that's a lot of expectations for rate cuts. to me, that's a little risk now. just like a year ago, they were wrong, when the fed would cut rates and how much. they are probably a little aggressive. that's a little risk in the markets. if you look at the sector leaders, they're not indicating any slowdown, any kind of recession out there. the leadership groups are consumer discretionary and industrials. new highs for industrials. you wouldn't get there if there was a belief the economy was going into recession. the other leadership group is interest rate sectors. nose are utilities and real

estate. utilities have a whole other thing going. they are now an a.i. play because of the power generation capacity. that's why we have the number one stock, vista, a power generation company, outdoing nvidia. >> its performance has displaced nvidia. $38 billion market cap company. >> and came out of nowhere. they had a merger. who would thought that you tills were an interest rate-sensitive play. now, all of a sudden, utilities and power generation are caught up in the entire a.i. debate out there. and this company is the number one performer on the s&p 500, replacing nvidia, as a power generation story. >> you laid out a lot of reasons

the market has been bullish. what's interesting, there was a new cot list we hadn't been including, which was china. there was a surprise of doing more to stimulate the economy. it came from the chinese central bank overnight. the anticipation was building yesterday when they announced a special needing. they're going to cut rates. the reserve ratio rates. another 25 by the end of the year. lowered the seven-day reverse repo rate. they cut mortgages for second homes. they are helping stock stability funds. >> the minimum downpayment to buy a home, right? >> correct. >> 15%. >> and trying to boost the stock market. was it the big bazooka the markets have been waiting for? does it stimulate consumers? maybe. does it show that the chinese want to try to boost their

economy and achieve 5% growth target? yes. that's a positive sign. that's why the chinese stock market jumped 4% overnight. and that's translating to gains to the commodities and leading everything tied to china. it's been a weak china story. if there's resurgence on the back of monetary policy, it adds to all of the stuff you've been pointing to. we haven't included that. >> do they have more room to do that because we lowered rates? >> yes. >> they don't have to worry about capital flight with the weaker currency. the u.s. has gotten bigger on the monetary policy side, it buys room for everyone else. >> don't you think this is significant. it's not a bazooka. but it's a minibazooka. they don't want to help out the billionaires anymore. this is a concession.

the real estate market is not doing well. chinese personal savings rates are at all-time highs. consumers and investors don't see anywhere to put the money. it's a strong package. >> it's an aggressive monetary policy package. the most aggressive we've seen from china. with the property market so weak and the spending and savings number weak, it will take fiscal stimulus. we haven't gotten that out of china. it's a positive signal. >> look what is going on in europe. gold mining stocks. all of the mining companies. everything is up 4% in europe right now. they've done well on the year. luxury, who had a terrible year, lvmh, is up 4%.

i see perburberry. >> the chinese have not taken the bazooka out and really done the thing that many anticipate they need to. >> it's a fiscal stimulus. >> and depending who you talk to, the loss so-called in the property sector can be as much -- there's some firms that say $18 trillion. how you bottom that out is a question. >> between that and the equity market that's been weak for the last three years. >> well, 15 years. i don't know if we can put up the shanghai stock exchange. but the shanghai stock exchange, the main market there, is now trading where it was in 2008. china had the enormous move up in the mid-2000s, on the whole redevelopment. has gone nowhere. for the last 17 or 18 years.

not only hshanghai. but hong kong, same thing. you would think, offshore stuff, do we have a 20-year? this is where it was in 2007. and this is the main exchange. shenzhen is not much different. shenzhen has more technology-related stocks. hong kong is trading where it was. if you can put up the hang seng index. you have 18 years of investment that hasn't produced anything. essentially where we were in 2007 for the hang seng. technology etfs. ali baba right behind us. and k web that trade outside of china. that hasn't gone anywhere. kweb, if you can put that up. that went public in 2013. basically, all of the china tech

stocks. it's where it was in 2013. there you see that going all the way back. and so, china investors are out there, saying, what should we do? there's etfs that "x" china out. so many people feel, in terms of investments, it's been a disaster. ideological and whether we want to do that. >> when you ask if china is investable and if investors are wondering, should we get back in? it's a number of consideration other than just stimulating the economy. the main one is the trade tensions and the geopolitics and the fact the biden administration has kept the trump administration tariffs in place. they've taken a hard line against china on things like semiconductors and advanced manufacturing with export controls. both sides -- it's one point of

agreement between the harris and the trump campaign, talks tough on china. >> yes. we'll talk later about look at shares. and trump talking tough about mexico, as well. significant tariffs for companies that move to mexico. let's talk talk playing a course in this run. tesla, by the way, back in positive territory for the year. after being down 25%, as i recall, at its lows. meta, also rallying to a record high. the multiple remains -- >> 22. >> yeah. >> we talked about this yesterday. it's up 60%, it's exciting. you actually have a company here that had a very rough patch around virtual reality. the metaverse. has pivoted, in all respects, i think, excellently back to a.i.

>> back to the year of efficiency, in the middle there, as well. significant job cuts that were embraced by many investors. to your point, the pivot to a.i. still called meta. positive stories about the s sunglasses, and what they can do in terms of taking pictures. good for people who create content. take videos. i don't know if you have a pair. >> i don't. >> it's the meta a.i. thing that's amazing. it's helping to go into all of the products and essentially be able to ask. you can have meta a.i. overlay and answer questions. that's the pivot for a.i. >> you can have glasses on, and they will tell me everything i need to know about bob pisani. >> you already know too much. >> and in the voice of judi dench. >> right.

>> here's the celebrity voices. john cena has a ton of fans. >> he's great. >> there was a note from citi this week, where estimates were taken out because of some proprietary data for reels, the videos after of meta, say ing i company's video service is showing good momentum on the ad space. good numbers for october 23rd. that's the same for tesla. we're going to get deliveries. consensus is 461,000 deliveries. he thinks that this barclays analyst, says the number goes higher than there. that could add more momentum.

that's october 10th for tesla. >> yeah. >> notable it is back in the black. approaches 6%. we had tim cook saying things about artificial intelligence, as well. he was a guest of jimmy fallon on the nbc show "the tonight show." take a listen. >> apple intelligence is coming next month. it comes in october. it will start with things like summerization of his e-mails. that's huge for me. i get hundreds a say. and one little click and all of a sudden it summarized this long e-mail. >> really? >> yeah. you can do ginmioji. image playgrounds. lots of things you do every day. >> a nice walk by the lake in central park. i think i recognize that. >> i have been waiting with a selfie stick. >> i've been waiting for the apple intelligence thing. it excites me, the personal

digital assistant. that will actually sit by us and really actually help us manage our life. not like, when is the next plane to miami. generally sit there and provide us help, just getting through the day. the question is whether or not this can sit on your phone and not be some server somewhere, that it's going to be the hack of all-time. apple is insisting, that it wil allow a personal digital assistant to really flourish. that's going to be the ultimate app, i think. if it works like what they're saying, it will be amazing. it's in the execution where all of this has problems. we'll see. >> coming up, what to expect from novo nordisk. as lawmakers are looking to ask questions on the high prices for

the weight reduction dgsru. that has been the case thus far as we wrap up the months last week.

i can't believe you corporate types are still calling each other rock stars. you're a rock star. we're all rock stars. oooo look look at my data driven insights, i'm a rock star. great job putting finance and hr on one platform with workday. thank you! guys, can you keep it down. i'm working. you people are (guitar noises). hand over the air guitar. i've got another one.

why choose a mobile network built for places you'll probably never be... ...instead of for where you are most of the time? xfinity mobile was designed for where you need it most. xfinity internet customers, ask how to get a free 5g phone and a second unlimited line free for a year.

to testify on we ggovy and ozemc prices. >> novo's ceo is planning to make the case that ozempic and wegovy is worth paying for. saying no single company can solve the challenges of the complex problems. he plans to promise that novo

will work with the committee on policy solutions to order the structural issues that harm patients. and that novo will never stop working to cure diabetes and obesity. what is not in here, is the acknowledgment of the price of sem ozempic and wegovy prices in the u.s. and it will touch on the $30 billion that novo is spendsing on manufacturing the trugs. he will get into how much diabetes and obesity costs the u.s. every year. he mentions that hopefully soon, medicare will cover wegovy for seniors without addressing how medicare will pay for that. >> that differential in price, though, for countries that have nationalized health services that i guess pay in a different

way. in a sense, the u.s. consumer seems to be subsidizing the cost of drug development so these guys can buy it more cheaply than we can. >> i'm sure what you will hear and they talk about this in the testimony, is the prices is not apples to apples. wegovy is $1,300 a month, the price that pbms pay is lower. in the testimony, they talk about the price of ozempic has gone down 40% since the drug was launched a few years ago. and wegovy is tracking similarly. you can compare these and the prices are coming down. also, that medicare could soon negotiate the price of ozempic. and there's a price competition from eli lilly and other companies. they are making the case that the prices are coming down and you can't directly compare what we pay here versus what you pay in other countries.

>> can they make the case of the health care costs that will be saved as the result of people not being as fat and therefore not as many health comp licatios that come along with that? >> yeah. >> you see that in the written testimony. it's something like $2 trillion the cost associated with obesity here in the u.s. saying that this is worth paying for. again, these are expensive drugs. if everyone who needed them was on them, there's a real question of can we afford that? i expect your will hear a lot about that today. i'm sure there will be a question of will you lower the price of the drugs? >> angelica, thanks for getting us ready. we'll monitor it. angelica peoples, back in d.c. for us. still to come, energy secretary jennifer granholm will join us at half past 9:00. look at the futures into the opening bell.

dow futures up almost 100%s. building on the record highs we've seen in the market lately. (woman) look i got the new iphone 16 pro at verizon. apple intelligence is pret-ty awesome. (man) nice. (woman) you can get it when you trade in any phone. (man) whoa, whoa, whoa! ♪ (vo) now, every phone can be the new iphone 16 pro at verizon. just trade in any phone in any condition and get the iphone 16 pro, on us. only on verizon. it's time to grow your business. create a website. how? godaddy. coding... nah. but all that writing... nope. ai, done, built. let's get to work. create a beautiful website in minutes with godaddy.

since my citi custom cash® card automatically adjusts to earn me more cash back in my top eligible category... suddenly life's feeling a little more automatic. like doors opening wherever i go... [sound of airplane overhead] even the ground is moving for me! y'all seeing this? wild! and i don't even have to activate anything. oooooohhh... automatic sashimi! earn cash back that automatically adjusts to how you spend with the citi custom cash® card. [mind blown explosion noise]

got an opening bell a few minutes away. let's look at the s&p gainers. when we start trading. those are almost solely, if i'm not mistaken, china-related. whether it's copper or lithium. whether it 's gambling and/or buying cosmetics, they are all beneficiaries of the stimulus, right? i guess you call it stimulus for sure. >> monetary policy, mogas.rtge they're trying. >> they're trying. not what a lot of people have said they need to do. we'll take a break. we'll be right back.

headlines on levi strauss. "the financial times" that the company's target of hitting $9 billion in rev they in 2027, will be pushed back, as cost of living hit western consumers in particular.

levi's is also teasing a jeans c collab with beyonce. posting on instagram and tagging her. that got people excited. this makes a lot of sense. beyonce had her first country album this year. and she had a song on the album called levi's jeans. >> there's the opening bell. let's look at the real-time exchange. jennifer granholm, commemorating climate week. she's going to join us a few minutes from now. on nasdaq, cyber arc, celebrating its tenth listing anniversary. broader takeaway on the levi news being reported by the f.t.? >> it's challenging for retail companies now. if jeans are popular and changing styles and they're doing well, just because inflation has thrown a frwrenchn

consumer pocketbooks. that would be the only takeaway. and that and levi. michelle goss has to keep momentum going. denim is trendy right now. jean jackets, jean dresses, grjean skirts. there's a lot of competition, like everybody. that's the challenge. as far as the long-term goal, last year, they were a little over $6 billion. you can see why it would be hard to achieve the $10 billion 2027 revenue target in light of that. if you look at what's at the top of the market right now, it's china-related. tapestry to estee lauder to winn resorts. china hasn't done that much to sim stimulate. a lot of the packages having to do with monitory policy and

housing. giving a hope and a boost that translates to a lot of the u.s. names. nike. te tesla, in there, as well. >> i looked at starbucks. that's not up. think about the big ones. tesla, nike, starbucks. >> caterpillar. estee lauder. >> and ali baba, that trades behind us. >> you got baba over 6%. perhaps there's a belief this is the only first in what will be a series of moves meant to stimulate consumer demand in the country. we discussed many times, it's an export-led economy. they've been really putting the pedal to the metal when it comes to exports. s subsidies. and battery technology. and flooding the world.

probably never this country with e.v.s. >> and alibaba have a duel listing in hong kong. the mainland chinese consumer has a difficult time accessing alibaba. they changed this to a duel listing in hong kong a few weeks ago. that means mainlands consumers can buy alibaba through the hong kong shanghai connect. there's a connect line that allows them to buy stocks a that they weren't able to do before. this provides for more broader access. >> when you were talking about china flooding the world and over capacity, i thought you would mention steel.

we have an interview with the ceo of u.s. steel. now, it rests with the government agency chaired by janet yellen of whether they will get approval to be acquired by nippon steel from japan. and the consideration is on national security. president biden is against the deal. kamala harris is against the deal. donald trump is against the deal. i'm curious to talk to him about what are the economic benefits and the necessities of this deal. >> the stock has moved up because the deal might be blocked in the near term. that's no longer going to be the case, it would seem. and burritt has been saying, if we can't do this deal, we're moving out of pittsburgh. we're closing the mon valley plant, over time. the man you want to hear from is the man who runs the united steelworkers union.

they remain very much in favor -- against a nippon deal. in part in favor of something else. and lorenzen. >> as schaar ra just said, the man time auking about. nippon's vice chairman is saying coming to the table. he is calling on the steelworkers to come to the table. that's a big obstacle. >> i'm glad you're an expert in an area i used to focus on. >> steel? >> no, takeovers. it nefrs ends. >> her knowledge never ceases to amaze. >> incredible. she can go deep on levi's and now on sifious. >> metals and mining stocks up. energy up. materials all up.

tech is getting a lift today. and the things that were leadership, like real estate and utilities, down a little bit. here's a broad rally. 2/1,e eadvancing to declining stocks. real estate and health care, not doing well. it's a great market. it keeps rotating around. you look at the month. megacap tech, a laggered group, not doing so bad after amazon is up 8%. meta up 8%. apple is up 11%. nvidia is a lagger today. and the influence of china. las vegas sans, wynn resorts. china-related. you look around, and you see, it's easy to see why strategists are getting excited. i looked at where the

strategists were. 20 big strategists, the high and the low. right now, the median strategists, year-end target, 5,600 on the s&p. >> are they going to raise their targets? >> that's the median. the high one is 6000 for the year-end target. he's the high unand we're 250 points away from 6,000 on that one. this is where we are. 20 of the top strategists. the high is 6,000. and the median, where 50%, is 5,600. we're at 5,722, and the average the 5,400. heaven knows, we may end up at 5,600 on the year. the point is right now, the

average strategist is way behind. >> who would have thought we would have a soft landing and rate cuts. >> 20% above the s&p and the nasdaq. a deal, a large one, in terms of a go private. the likes of which we have not seen that much this year. sm smartsheet. really? a news alert? okay. that's a record high for the dow. that's the news alert. the statistically insignificant index. we want you to know, that nobody follows or tracks. >> people do follow the dow. >> no money managers benchmark against it. dia insignificant amount. you saw some news about smartsheet. i was about to say before we had that important news alert.

enterprise work management platform. $8.4 billion. this has been reported on let's call it july 18th, initially. that was -- you're talking about 16% premium to a 12-month closing high, prior to news reports or what became the affected stock price. unaffected prior to that. and 41% on the 90-day volume-weighted average price. unaffected stock price. they expect it to close by january 30th. blackstone are splitting. not the first time they've done that. partnereden a smaller deal this year. been some cases they sold assets to each other. they agreed to sell a stake in

seavent. to blackstone. numbers are high. and the 45-day go shop. that you see in many of the privates. and the stock is reacting a bit. no fluz on financing. i was curious, many times the last few years, the fact that the banks have been very much intermediated by private credit when it comes to financing. certainly not, the likes of $8.4 million go private. splitting the equity check helps there. you are talking about a significant check. >> are we going to see more of this? rate cuts? >> all year long -- rate cuts don't hurt, in terms of the cost of borrowing. you need to have, as

importantly, if not more so, a sense on the buyers and can engage there. i believe the economy is stable. i don't believe software companies are overvalued. we've not seen as many privates as we thought. not nearly, bob pisani, the exits or firms that look for in terms of the public markets. many of the exits are private-to-private because companies don't come public. >> i cover this in the etf market, that is tying itself in a pretzel, trying to figure out how to offer equity and private debt. there's a new etf where they will have partly private debt in it. an interesting offer.

the real problem is you can't get private equity and private debt in an etf structure. people are demanding this. i talked to 100 i.r.a.s. they said, how can we get access? >> i think it's funny. as far as the growing, they're working on products exactly the likes of what you're talking about. >> yes. >> that's right. >> they are selling the deal to -- that the private ek can i -- the private credit part to state street. it's interesting. who is determining the prices? how does that go around? that's a difficult thing to figure out at this point. you see the business, the etf business, desperately trying to figure out how to do it. you can't do it in etf structure. >> you don't have to deal with liquidity in any way. >> that's the problem. you can't do it that easily. they're tying themselves in knots to figure out ways to buy

stuff from people. and you have to go back and forth of who is going to set the prices. it is an interesting question p the real problem is, why aren't more companies going public? back in the '90s, tcomplained there's too many companies and too much volatility. we have middle-aged companies sitting around for ten years. >> that's because there's so much capital available to them as they stay private. i want to get to the bond market quickly before we head to the break. check out how treasurers are fairing. we talked about the chinese and the stimulus to the economy. sara made the point, we're 3.8 above where we were in yield. 34.>>.6 >> we'll be right back. at least, not the way it could work.

your people are buried in busy work. and you might be thinking... can ai make it all work? it can. on the servicenow platform, ai transforms your entire business. because when your people work better, everything works better. so, let's get to work. idris elba works here? meet kandi technologies, where

innovative, eco friendly design meets exceptional performance. with officially licensed nfl team edition golf carts exclusively available at lowe's.

elevate your ride and explore electric investment opportunities. kandi technologies. take a look at shares of constellation energy. main news there, turning back

on, one of the reactors at three mile island. that had been decommissioned not that long ago. in order to power data centers from microsoft into the future. they are moving that along according to reports. josh shapiro, saying let's get this done fast. it's pulling back a bit today.

energy in focus this also news that pennsylvania's governor is urging fast track approval for the microsoft deal to revive part of the three mile island nuclear plant amid growing ai data center demand. nobody better to discuss all of this than the energy secretary of the united states jennifer granholm who joins us first on cnbc at post nine. madam secretary, nice to see you. >> thanks so much for having me. >> just in terms of news of day on oil prices, china in there a little bit, it's been weak demand and then the middle east as tensions escalate between israel and hezbollah, i wonder what you think the scope is for a wider regional escalation that could potentially involve more directly iran the big producer.

>> everybody is watching this and seated at the end of their chairs for a variety of reasons, not just because of oil prices, of course. but, you know, it's one of the reasons why honestly being energy secretary at this time has been so rewarding, is because we have really been investing and seen record amounts of oil production, record amounts of gas production and record amounts of renewables generated on the grid, like unbelievable amounts. we had 30 hoover dams worth of clean power added to the grid this year. we are having -- that's a huge amount of added power, clean power, so it's really -- >> inflation reduction act. >> yes. because the united states has become irresistible for developers of clean energy generation, but also for manufacturers of the products that get us there, whether it's evs or batteries or solar panels. since the passage of the inflation reduction act, policy actually works, we've had over

800 factories announce that they are coming to the u.s. or expanding in the u.s. because of the public-private partnership that has been created as a result of the president's invest in america agenda. it's so great. so exciting because that means 400,000 more people are working in this clean energy space, which is record amounts. it's really an amazing time. >> i wonder how much is at risk as -- if donald trump becomes president and has threatened to roll some of it back to help pay down the deficit and pay for some of his other initiatives. >> here's the thing is that, in fact, just this past week there were 18 republicans who signed on to a letter saying, please don't roll this back, because we're seeing the benefits in our states. 86% of the investment. so there has been half a trillion dollars worth of investment in this clean energy space since the passage of the inflation reduction act. half a trillion dollars. of that, $1 for public money, $6

of private money. that's a 71% increase over the two years prior. that money, that investment, those jobs, are going, 86%, to communities that have below college graduation rates or weekly nyse. a lot of it is in rural communities. 60 to 70% is in red counties. it would be political malpractice to undo what is being done and happening and people being hired in these communities. >> at the same time we've been trying to, obviously, replace typical energy sources with renewables, we now have this incredible potential uptick in the need for power because of data centers and the growth of generative ai. how do you see it playing out? i mean, we talk a lot about nuclear power. we were talking about three mile island coming back online, or one of the reactors and any number of other nuclear sites as well being recommissioned, so to speak. how is it going to mix out,

given our power needs could be 20%-hour than right now in a handful of years? >> the estimates are 15% higher within ten years as a result both of ai as well as all this new manufacturing activity as well as electrifying the transportation sector. we are going to need more power. i'm telling you, we are adding that power. we're adding record amounts of clean power. in addition, the hyper scalers for these big data centers they all have commitments to clean energy, too, and they don't want to see themselves located in a community where their demand for power causes everybody else's rates to go up. they're committed, telling us, to bringing that power with them, which is why the need for nuclear small modular react tors, colocating data centers with small reactors or the partnerships, for example, with constellation and microsoft for three mile island to turn on more power, we've got a ton of nuclear sites in this country that have been permitted for additional reactors that could be powering data centers as well, we're working with those

hyper scalers to make sure they, in fact, bring the clean power with them and don't put that cost on everyday citizens. >> can i ask a different question about cyber security. we talk every day about cyber security and one of the big cyber security issues is the reliability of the electricity grid. how reliable is our electricity grid? is it safe and what is your department doing to ensure the reliability of electricity grid? >> first of all the bipartisan sfrurl act gave us about -- us and the department of agriculture, about $75 billion to shore up the grid, shore it up from extreme weather events, shore it up because it needs to, it's old and you need to replace parts, but also for cyber reasons as well. that's not enough money. we have a grid that is old and that, as you can imagine when something was built in the 1950s on wooden poles, needs to be maintained. we need to think about the investment in the grid in that way because we're going to need more power, but here's the good news, that we have been

investing in the technologies that would allow for twice the power to go on the lines of existing infrastructure, called reconducting, putting more power because of new materials on the line so you don't have permitting issues with that. we have built -- we're in the process of building ten more large transmission lines across the country, which is important to deliver more power. but we're also adding to the grid by adding more power to the grid, by more clean generation. so all of this is happening. we're trying to do everything, everywhere all at once. >> are americans ready for more nuclear? wall street is excited but isn't there a trust factor there? >> well recent polls show there is an increase in trust for nuclear and that's because we really have a gold standard regulatory regime in this country for nuclear. small modular reactors, next generation reactors and turning on existing react tors, because this is safe, clean power. >> secretary granholm, never enough time. >> never enough time. >> thank you for coming by. good to see you at the new york

stock exchange. coming up, president biden's address to the u.n. general assembly a few moments from now. the president of brazil watching at the podium right w. 'lbeig bk.no ng) [narrator] not all multi-millionaires built their wealth the same way, you have... the fearless investor. the type a cpa. the bootstrapper. the bootmaker. yeehaw [narrator] but many do have something in common. we all trust schwab with our wealth. [narrator] thanks to our award-winning service, low costs and transparent advice. every day, over a million multi-millionares trust schwab with more than two trillion dollars of their wealth.

(aaron) i own a lot of businesses... every day, over a million mulso i wear a lot of hats.wab my restaurants, my tattoo shop... and i also have a non-profit. but no matter what business i'm in... my network and my tech need to keep up. thank you, verizon business. (kevin) now our businesses get fast and reliable internet from the same network that powers our phones. (woman) all with the security features we need. (aaron) because my businesses are my life. (kevin) man, the fish tacos are blowing up! (aaron) so whatever's next we're cooking with fire. let's make it happen! (vo) switch to the partner businesses rely on.

good tuesday morning. again, welcome to another hour of "squawk on the street." i'm sara eisen, with david faber, live for you as always from post nine of the new york stock exchange. carl is on assignment today. big show with two big events happening live this hour president biden set to speak at the u.n. general assembly here in manhattan. we'll take you there live when he begins. the ceo of novo nordisk is testifying before the senate on the price of the company's blockbuster weight loss drugs. we'll bring you the highlights from that hearing. let's check on the markets right now. china unveiling a broad package of mostly monetary stimulus measures to try to boost their

economy helping china-related names. the names like freeport mac brand tied to the price of commodities, las vegas sands tied to macao casinos, estee lauder. the s&p 500 turning negative. it was positive earlier this morning. if you look at what's working, china-related names like material and energy but financial communication services, health care and services down, and just turning red on the three major averages as we speak. apple up, tesla up, but microsoft and meta are lower. mixed picture in technology. for treasury yields right now, selling continues. firmer yields the story post-fed. we're still below 4% on the 10-year, below 3.8% and 3.77%. we're going to get data here in just a moment on consumer confidence, pce, spending, nyse, a inflation in the week. >> rick santelli has it for us. rick? >> yeah. we are looking at big misses

here on consumer confidence. we're expecting a headline number to be around 104. 98.7. that is the weakest going back to february of '21. i'm sorry, july of. july of '22 when it was 92.3. these are weaker than expected numbers. towards present situation. 124.3, also a very big miss. that's the weakest since march of '21. something very fascinating if you look at the july read, that was the weakest since april of '21. so we are really looking at present situation deterioration and if we look at what lies ahead in the form of expectations, minus -- excuse me, 81.7. 81.7. that's the weakest, well, just since july of this year. now let's switch gears towards richmond fed.

we have manufacturing and service indices. on the manufacturing minus 21, which pemeans it's the 11th consecutive negative number in a row. something fascinating, if we look at the business side the service sector, it's minus 3. our last look at minus 13, well it was the 30th negative number in a row so minus 3 is definitely a big improvement, but it's still 31 negatives in a row. 31 negatives in a row on service sector with respect to richmond fed. so we are looking at yields moving a bit lower on the long end and keep in mind the long end is on pace for its fourth consecutive higher yield close in row. every close since last wednesday's 50 basis points cut by the federal reserve. sara, back to you. >> okay. rick santelli, thank you very much. that weaker consumer confidence in the mix today. the big story is china and that's what moved things overnight. the chinese stock market went up

4%. china-related names the american companies that do business there, the adrs, the chinese companies that trade in the u.s. at the top of the market today. why, well sort of rare publicized, coordinated set of measures announced overnight to try to boost their economy mostly from the central bank. they lowered rates, a key short-term rate, announced plans to reduce the amount of money banks have to hold in reserve until the lowest level and stimulate lending, boosting liquidity to the stock market, lowering a key rate on mortgages and also easing rules for second home purchases because the housing market has been a source of weakness there. add it all up and it's a strong sign that china wants to try to boost their economy. this fed made it easier to because of the sort of jumbo rate cut that we got last week. but going through the commentary today, you know, from economists, it's not the fiscal big bazooka that necessarily markets were hoping for and economists think is needed to stimulate demand on a more

sustainable basis for china and get them out of this, i don't know, almost decade long deflationary slump they've been dealing with as well. for now it's helping, certainly helping sentiment, helping stocks moving after some of these stocks have been so depressed in china over the last few years on lack of measures and growth concerns. that's in the mix today. >> yeah. it's getting a very positive response. of course you can see some of the names that would benefit from a stronger chinese consumer led by the likes of alibaba, pdd which owns temu, jd.com and go on from there. but again, you know, is it really getting at the ultimate problem in part which is, lack of confidence much of which comes from the property equity sector, significant fall in real estate and/or if you're unlucky enough to own a building that never got completed things of that nature that really are at

the heart of so much of the weakness i think you've seen in that consumer in china. >> that's why economists view this, the fiscal spending to boost demand, household demand, spending is the missing ingredient here. maybe they will be more willing to do it now that they've shown more force in terms of stimulus. it's interesting contrast to what we're seeing here in the u.s., mostly better news on the economy. rick mentioned the weaker consumer confidence, but overall, i was looking this morning at an economic surprise chart, this measures where the economic data has come in relative to expectations, and when it's better it ticks higher. if you look at that chart it shows that we've been on an upswing here when it comes to economic data there towards the end. it was weak. remember the growth scare heading into early september, at the end of summer as we were missing and the labor market is softening and now a little bit better than expected. maybe people got too negative about what's happening on the economy as we're tracking for an

almost 3% growth rate in the third quarter according to atlanta fed. our economy, this is what soft landing or the soft patch or whatever you want to call it is that's keeping the market optimistic, at the same time that the fed is cutting rates. jamie dimon of jpmorgan spoke to our counterpart in india and did talk about this whole market setup and why he's been a little bit more skeptical. listen. >> i think the stock market and the bond markets are pricing in a soft landing and -- but also look at the stock markets are generally very high and bond spreads are very low. that's kind of goldilocks. that may very well happen. i'm hoping. i give it a lower odds than the market does. >> he continues to give it lower odds. >> i think he's on television or saying it somewhere every day. i mean he's very determined to let everybody know how he's thinking. >> he's more cautious. stagflation in recent weeks.

>> cautious for some period of time as we know. >> maybe a little bit of jpmorgan is the port in the storm kind of -- >> yes. >> that's the case if you want to look at it in the self-interested way. this idea of the is driving the market and what's priced in, ubs note stood out to me today and say the first step for investors is to be confident that fed cuts ensure that the soft landing evolves into an indefinite expansion which think will happen by year end and september payrolls data released in october should be positive for risk assets but markets priced for a soft landing and volatility could spike again until this shift takes place. in other words, fed has to land the plane and -- with these cuts. >> definite expansion sounds exciting. >> i guess. >> kind of like the university. expanding. >> it would be positive i guess that's what a soft landing is, right. it just -- >> goes on and on. >> doesn't land. >> never lands. >> let's get to the road ahead for markets given the backdrop.

joining us at post nine, evercore isi julian emanuel has the second highest s&p target on the street at 6,000 alongside globally chief economist, pressure off the release of their new q4 economic outlook slowing gdp growth and more fed rate cuts. good to see you both. indefinite expansion? is that possible? >> well r i will believe it when i see it, but at least we know that the baseline case for the next 12 months is one of a soft landing, most likely scenario. it seems like the fed is on its way to stick that landing with the neutral rates coming down to where they think it's between 2.5 and 3.5. it looks like we are getting to the trend growth rate more than anything else at the moment. >> so what does that mean? we're tracking almost 3% growth for this quarter. >> we are tracking almost 3% growth for the second quarter and the third quarter.

i think there are some red flags in the consumer caution that's creeping up, like the confidence index that we saw this morning, and some of the fiscal direct contribution to growth coming from state and local governments those should be reversing to more historical averages. so those positive surprises are sort of behind us now, and it will be more in line with your personal income growth and that's why we have revised down our growth profile. but still, it is a 2% growth profile. nothing, you know, that suggests it's a recession in the horizon. >> in china they're more concerned about lack of growth. i'm curious to get your reaction and what the impact is, if there is any here, in terms of at least those moves that they've made thus far? >> so it was a good start, but as you alluded to earlier, the housing situation, the overhang, you can do only so much with

monetary policy. but to the extent that it incrementally improves the psychology that's good, and for u.s. assets, it's a mixed picture but on balance good because essentially what it does is, it sort of cushions the idea that china was going to drag us into a global growth slowdown type abyss on the one hand. on the other hand, there's this idea with china stimulating, yields are going to go up and it's no surprise at all that yields have been grinding higher consistently since the fed cut rates because you backstop growth, you basically put a floor under how much inflation can go down now, with china doing what it's doing. but on balance, it really is a positive medium term for risk assets. >> is that why your target is higher than other people's on the street? bob joined us last hour showing everybody is behind the curve on their s&p price targets. we haven't reached yours yet.

>> no. we still have a ways to go, and look, it's one of those really challenging years. i want to go back to both jamie dimon's comments and the consumer confidence numbers. essentially, when you take them both together, they keep the wall of worry built. we would be more concerned if we started hearing everything is great, everything is roses. >> it is consensus, though, that we're not going to have recession, isn't it? >> it is definitely consensus. >> doesn't that worry you. >> >> it does. first of all we're approaching into favorable seasonality as we all know. october tends to be market bottoms. the other thing worth knowing is that actually, every single time, without exception, that the -- >> i'm sorry. i have to cut you off. we have the president at the u.n. general assembly. >> my fellow leaders, today is the fourth time i've had the

great honor of speaking to this assembly as president of the united states. it will be my last. i've seen a remarkable history. i was first elected office in the united states of america as a u.s. senator in 1972. i know i look like i'm only 40. i know that. i was 29 years old. back then, we were living through an inflection point, moment of tension and uncertainty. the world was divided by the cold war. the middle east was headed toward war. america was at war in vietnam. at that point, the longest war in america's history. our country was divided and angry and there were questions about our staying power and our future. but even then, i entered public

life not out of despair, but out of optimism. the united states and the world got through that moment. it wasn't easy or simple without significant setbacks, but we go on to reduce the threat of nuclear weapons through arms control and bring the cold war itself to an end. israel and egypt went to war but forged historic peace. we entered the war in vietnam. last year in hanoi i was met with the voietnamese leadership. testament to the resilience of the human spirit and the capacity for reconciliation. today, the united states and vietnam are partners and friends, and it's proof that even from the horrors of war, there's a way forward. things can get better.

we should never forget that. i've seen that throughout my career. in the 1980s i spoke out against apartheid in south africa and then i watched the regime fall. in the 1990s, i worked to hold milosevic to account for war crimes. he was held accountable. at home i wrote the women's act and the scourge against civilians of women and girls not only in america, but across the world as many of you have as well. we have so much more to do, especially against rape and sexual violence as weapons of war and terror. we were attacked on 9/11 by al qaeda and osama bin laden and brought him justice. then i came to the presidency in another moment in crisis and uncertainty. ib i believed america had to look forward, new challenges, new

threats, new opportunities were in front of us. we need to put ourselves in a position to see the threats, to deal with the challenges, and to seize the opportunities as well. we need to end the era of war that began on 9/11. as vice president to president obama, he asked me to work to wind down the military operations in iraq, and we did, as painful as it was. when i came to office as president, afghanistan had replaced vietnam, as america's longest war. i was determined to end it, and i did. it was a hard decision but the right decision. four american presidents have faced that decision, but i was determined not to leave it to the fifth. it was a decision accompanied by tragedy. 13 americans lost their lives along with hundreds of afghans in a suicide bomb. i think those lost lives, i think of them every day.

i think of all the 2,461 u.s. military deaths over a long 20 years of that war. 20,744 american servicemen wounded in action and i think of their service, their sacrifice and heroism. i know other countries lost their own men and women fighting alongside us. we honor their sacrifices as well. the face of the future, i was also determined to rebuild my country's alliances and partnerships to a level not previously seen. we did. we did just that from traditional treaty alliances to new partnerships like the quad, the united states, japan, australia, and india. i know, i know many look at the world today and see difficulties and react with despair. i do not. i won't. as leaders, we don't have the luxury. i recognize the challenges from ukraine to gaza to sudan and

beyond. war, hunger, terrorism, brutality. record displacement of people, climate crisis, democracy at risk, the promise of artificial intelligence, and its significant risk. the list goes on. but maybe because all i've seen and all we have done together over the decades i have hoped, i know there is a wayforward.

test test test testest our task is to make sure the forces holding us together are stronger than those pulling us apart. that the principles of partnership we came here each year to uphold can withstand the

challenges. that the center holds once again. my fellow leaders, i truly believe we're at another inflection point in world history, where the choices we make today will determine our future for decades to come. we stand behind the principles that unite us, we stand firm against aggression, end the conflicts raging today, take on global challenges like climate change, hunger and disease, where we plan now for the opportunities and risks of a revolutionary new technologies. i want to talk today about each of these decisions and the actions in my view we must take. to start each of us in this body made the principles of commitment in the human charter to stand up against aggression. when russia invaded ukraine we

could have stood by and merely protested. vice president harris and i understood that was an assault on everything this institution was supposed to stand for and so my direction to america stepped into the breach, providing massive security and economic and humanitarian assistance. our nato allies, partners, 50 plus nations stood up as well and most importantly, the ukrainians people stood up. i asked the people of this chamber to stand up for them. the good news is, putin's war has failed, and his -- at his core aim. he set out to destroy ukraine, but ukraine is still free. he set out to weaken nato, but nato is bigger, stronger, more united than ever before. with two new members. finland and sweden. we cannot let up. the world has another choice to

make. will we sustain our support to help ukraine win this war and preserve its freedom or walk away and let aggression be renewed and a nation be destroyed? i know my answer. we cannot grow weary. we cannot look away. and we will not let up on our support for ukraine, not until ukraine wins endurable peace under the u.n. charter. [ applause ] we also need to uphold our principles as we seek to responsibly manage the competition with china, so it does not veer into conflict. we stand ready to cooperate on the challenges of the good of our people and the people everywhere, the resumed cooperation with china, stop the flow of deadly synthetic

narcotics. i appreciate the collaboration. it matters to the people of my country and many others around the world. matter of conviction the united states is unabashed pushing back against economic competition against military coercion of other nations in the south china sea and maintaining peace and stability across the taiwan straits and protecting our most advanced technologies, so they cannot be used against us or any of our partners. at the same time we're going to continue to strengthen our network of alliances and partnerships across the indo-pacific. these partnerships are not against any nation. they're building blocks for a free, open, secure and peaceful indo-pacific. we're also working to bring greater stability and peace to the middle east. the world must not flinch from the horrors of october 7. any country, any country, would have the right responsibility to

ensure that such an attack could never happen again. thousands of armed hamas terrorists invaded a sovereign state, slaughtering and massacring more than 1200 people, including 46 americans in their homes and at a music festival. despicable acts of sexual violence, 250 innocence taken hostage. i met with the families of those hostages. i've grieved with them. they're going through hell. innocent civilians in gaza are going through hell. thousands killed including aide workers. too many family dislocated, crowding into tents facing a dire humanitarian situation. they did not ask for this war that hamas started. i put forward with qatar and egypt a cease-fire and hostage deal. it's been endorsed by the u.n. security council. now is the time for the parties

to finalize its terms, bring the hostages home, and secure security for israel and gaza free of hamas' grip, ease the suffering in gaza and end this war. october 7th -- [ applause ] october 7 we've also been determined to prevent a wider war that engulfs the entire region. hezbollah, unprovoked, joined the october 7 attack, launching rockets at israel. almost a year later, too many on each side of the israeli-lebanon border remain displaced, full-scale war is not in anyone's interest, even as the situation has eggscalated a diplomatic solution is possible.

that's what we're working tirelessly to achieve. as we look ahead, we must also great rise of violence against innocent palestinians on the west bank and set the conditions for a better future including a two-state solution where the world, where israel enjoys security and peace and full recognition, and normalized relations with its neighbors, palestinians live in security, dignity and self-determination in a state of their own. [ applause ] progress towards peace will put us in a stronger position to deal with the ongoing threat posed by iran. together we must deny oxygen to its terrorist proxies which call for more october 7th and ensure that iran will never ever obtain a nuclear weapon. gaza is not the only conflict

that deserves outrage. in sudan, a bloody civil war unleashed one of the world's worst humanitarian crisis. 8 million, 8 million on the brink of famine. hundreds of thousands are already there. atro atrocities in darfur and elsewhere. the united states has led aid to sudan and with our partners led diplomatic talks to try to silence the guns and avert a wider famine. the world needs to stop arming the generals, who speak with one voice and tell them stop tearing your country part, stop blocking aid to the sudanese people, end this war now. [ applause ] people need more than the absence of war. they need a chance, a chance to live in dignity.

they need to be protected from the ravages of climate change, hunger and disease. our administration has invested over $150 billion to make progress and our sustainable goals. it includes $20 billion for food security, over $50 billion for global health. we mobilized billions more in private sector investment and taken the most ambitious climate action in history. we've moved to rejoin the paris agreement on day one, and today, my country is finally on track to cut emissions in half by 2030. on track to honor my pledge to qua dropble climate financing to developing nation, $11 billion thus far this year. we've rejoined the world health organization donating $700 million doses of covid vaccine, 217 countries.

we must now move quickly to face mpox outbreak in africa. we're prepared to commit $500 million to help african countries prevent and respond to mpox and donate 1 million doses of mpox vehicle now. [ applause ] we call on our partners to match our pledge and make this a billion dollar commitment to the people of africa. beyond the core necessities of food and health, the united states, the g7 and our partners embarked on an ambitious initiative to mobilize and deliver significant finance to the developing world, we're working to help countries build out infrastructure, to clean energy transition, to the digital transformation, to lay new economic foundations for a prosperous future. it's called the partnership for global infrastructure investment. we've already started to see the fruits of this emerge in

southern africa and southeast asia and in the americas. we have to keep it going. i want to get things done together in order to do that we must build a stronger, more effective and more inclusive united nations. the u.n. needs to adapt and bring new voices and new perspectives. that's why we support reforming and expanding the membership of the u.n. security council. [ applause ] our u.n. ambassador just laid out our detailed vision that reflects today's world, not yesterday's. it's time to move forward. the security council like the u.n. itself needs to go back to the job of making peace, of brokering deals to end wars and suffering. [ applause ] stop the spread of the most dangerous weapons of stabilizing troubled regions from east

africa to haiti to kenya-led mission working alongside the haitian people to turn the tide. but also have a responsibility to prepare our citizens for the future. we'll see more technological change, i argue, in the next two to ten years, than we have in the last 50 years. artificial intelligence is going to change our ways of life, our ways of work, and our ways of war. it could usher in scientific progress at a pace never seen before and much of it could make our lives better. but ai also brings profound risks from deep fakes to disinformation to pathogens to bioweapons. we've worked at home and abroad to define the new norms and standards. this year, we achieved the first ever general assembly resolution on ai to start developing global

rules, global rules of the road. we also announced a declaration on responsible use of ai joined by 60 countries in this chamber. but let's be honest, this is just the tip of the iceberg. what we need to do to manage this new technology. nothing is certain about how ai will evolve or how it will be deployed. no one knows all the answers. my fellow leaders, it's with humilitity i offer two questions. first, how do we as an international community governor ai? as countries and companies race to uncertain frontiers, we need an quality urgent effort to ensure ai's safety, security and trustworthiness. as ai grows more powerful, it must grow -- also must grow more responsive so our collective needs and values, benefits of all must be shared equitably.

it should be harnessed to a narrowed, not deep digital divides. second, will we ensure that ai supports, rather than undermines, the core principles that human life has value and all humans deserve dignity? we must make certain that the awesome capabilities of ai will be used to uplift and empower everyday people. not to give dictators more powerful shackles on the human spirit. in the years ahead, they may well be no greater test much our leadership than how we deal with ai. let me close with this. even as we navigate so much change, one thing must not change. we must never forget who we're here to represent. we the people. these are the first words of our constitution. the very idea of america. they inspired the opening words

of the u.n. charter. i made the preservation of democracy the central cause of my presidency. this summer, i faced a decision whether to seek a second term as president. it was a difficult decision. being president has been the honor of my life. so much more i want to get done. as much as i love the job, i love my country more. i decided after 50 years of public service it's time for a new generation of leadership to take my nation forward. my fellow leaders, let us never forget, some things are more important than staying in power. it's your people. [ applause ] it's your people that matter the

most. never forget, we are here to serve the people. not the other way around. because the future will be won by those who unleash the full potential of their people, to breathe free, to think freely, innovate, to educate, to live and love openly without fear. that's the soul of democracy. it does not belong to any one country. i've seen it all around the world. the brave men and women who ended apartheid, brought down the berlin wall, fight today for freedom and justice and dignity. we saw it, that universal yearning for rights and freedom in venezuela, for millions cast their vote for challenge, hadn't been recognized, but it can't be denied. the world knows the truth. we saw it in uganda, lbgt activists demanding safety and recognition of their common humanity. we see it in citizens across the world peacefully choosing their

future from ghana to india, to south korea, nations representing one quarter of humanity that will hold elections this year alone. it's remarkable the power of "we the people" that makes me more optimistic about the future than i've ever been. since i was first elected to the united states senate in 1972, every age faces challenges. i saw it as a young man, i see it today. but we are stronger than we think. we're stronger together than alone. and what the people call "impossible" is just an illusion. nelson mandela taught us and i quote "it always seems impossible until it's done." "it always seems impossible until it's done." my fellow leaders, there's nothing that's reyond our capacity unless we work

together. god bless you all and may god protect all those who seek peace. thank you. [ applause ] >> president joe biden giving his farewell speech to the u.n. general assembly, his last as president. mostly talking about his foreign policy record but ending there on a few notes, one including explaining why he is handing over the reigns sometimes your people are more important than holding on to power. >> some things are more important than staying in power. interesting. >> message to fellow leaders. >> exultation as well as what you can do, what countries can accomplish. >> the other thing on the foreign policy record, it's mixed, right.

we have this war still raging in ukraine. we have hostages still being held in gaza, including a number of americans. tensions ratcheting higher between israel and lebanon, hezbollah in the north, and so there's still some serious challenges. >> let's get over to senior washington correspondent eamon javers to break down what we just heard from president biden. eamon. >> a reflective president joe biden there wrapping the arc of his career in with the arc of world history during that tenure from 1972 until today, and i think as i've been talking to people on wall street, they look at geostrategic risk now as one of the most significant risks to markets there. this was a president of the united states who was trying to put a bullish and optimistic vision of the way forward in all of these deeply challenging areas that sara just mentioned, including crane, gaza, and now lebanon with hezbollah and israel. heating up and threatening to boil over. the president suggesting there

is always a diplomatic solution to these problems even as some of these situations seem to be escalating beyond control. he's signalling to world leaders they have a responsibility to solve some of these problems and, david, as you were saying, a responsibility to step down when their time comes and that's maybe not something that everybody in that room has done or wants to do, but an interesting message to hear from the president of the united states there. >> all right. thank you very much for the recap as we continue to watch the markets. we've turned south. we started us with a little bit of a rally, and now heading lower. microsoft the biggest weight on the dow. amazon and meta are lower as well. to materials, energy, industrials, utilities and real estate higher but a group of other sectors getting weaker at the bottom of the list, financials, technology, and communication services. we're going to continue to hit some of the big movers and stories for you when "squawk on the street" comes right back.

tax smart investing today, helps to build a stronger tomorrow. at pgim custom harvest, our unique direct indexing approach seeks to help investors achieve better after-tax outcomes. pgim investments. shaping tomorrow, today (woman) look i got the new iphone 16 pro at verizon. pgim investments. apple intelligence is pret-ty awesome. (man) nice. (woman) you can get it when you trade in any phone. (man) whoa, whoa, whoa! ♪ (vo) now, every phone can be the new iphone 16 pro at verizon. just trade in any phone in any condition and get the iphone 16 pro, on us. only on verizon. new projects means new project managers. you need to hire. i need indeed. indeed you do. when you sponsor a job on indeed, it's easier for talented candidates to find it. which makes it easier for you to hire them. visit indeed.com/hire

>> university of maryland global campus is a school for real life, one that values the successes you've already achieved. earn up to 90 undergraduate credits for relevant experience and get the support you need from your first day to graduation day and beyond. what will your next success be?

k3w589 the rest of the magnificent seven but a significant rebound. here with more on the road of ahead for tesla, and its stock price as it gets ready to report its latest delivery numbers, an outperform rating on the stock. ben, to what do you attribute the recent significant move higher in the shares? >>. >> probably two things really. deliveries shaping us, and then second, you know, all eyes on the robo taxi event on october

10 and i think there could be some surprises there. the lower cost vehicle in addition to the robo taxi and the plan to roll that out in a couple cities at first is what we think. >> i would assume we're all going to get focused on that as you said october 10th announcement pushed back as we know. so you think the possibility is there of a new announcement of a lower cost vehicle assuming they're going to share significant advances that have been made on full self-driving and the like. >> we do. it makes sense for the timing. they talked about releasing a lower cost vehicle as early as, you know, the first quarter of next year to get that out in front of people that makes sense from a timing perspective. this is not the next generation vehicle but a low-cost vehicle probably produced in austin as well as in berlin to use their current factory footprint before

they start extending it to new factories. >> is that in your estimates? can you model out what sort of revenue stream that looks like? >> thanks, sara. good question. we have only 25,000 units in q4 of next year. volume numbers likely need to go up, at least for us. i think in general, now they will have to take lines down to bring up the new vehicle so it will be a lumpy 2025 and you're switching out volume of a higher priced vehicle with a lower cost vehicle. there will be movement in numbers there. i think most importantly is having a new vehicle out, the s, the 3, x, y, cybertruck, so i think this will be a new product out there could give the stock moving higher than it is now. >> you know, ben, just a couple years ago the idea of even

asking whether or not tesla can compete with the likes of chinese ev makers would seem to have been heresy. i asked the question of you, many others asking right now, how do you see the global competition evolving given what has been this appreciable income in terms of the quality of chinese evs? >> i think that musk has been very clear that the biggest competition is coming from china, not just in vehicles, but also in autonomy and full self-driving and so, you know, we've watched that very closely. tariffs into europe, definitely help tesla, there is a different segmentation where tesla is viewed as a higher end. the model 3 refresh they did in china is helping sales and i think that we'll see a model y refresh as well in china that should help with sales there as well. but when we get to the actual numbers, when they report numbers probably two weeks after

the 10/10 event all eyes will be on margin because they have been doing things like paying down interest rates giving 0% financing in china that did impact margins last quarter. we expect it to impact margins this quarter as well. >> yeah. and on full self-driving itself, you know, what are you seeing in terms of performance with wherever they are right now, 12.5? they've incorporated generative ai and i hear a lot of progress being made. is that really the case? >> we think so. and we've had the opportunity to ride in different iterations of the version 12 and a 12.5 maybe two weeks ago, and, you know, there's been the pace of progress is accelerating and this is really because, you know, as they've talked about, they're no longer compute constrained. they have this, you know, millions of cars on the road gathering data there and it is a

full end-to-end machine learning versus in the past there were other pieces of the software that people had to code. i think that's one thing we're trying to emphasize is that this is accelerating at a faster pace than it has, you know, in the past and there's so much skepticism because musk has been one year out, one year out, but we do think that, you know, they're getting closer to this. >> so you're a believer in musk's long-held but much delayed goal there will be a robo taxi fleet one day? >> i think, you know, we'll start to see it in select cities maybe two or three, san francisco, l.a., austin, maybe las vegas, phoenix, as early as second half of next year with a purpose built vehicle for the robo taxi. they call it the cyber cab. i think they'll start rolling that out. >> appreciate your time. thank you. >> thank you, guys. take care. >> ben calan from baird. >> after the break the ceo of novo nordisk testifying before

the senate this hour. defending the pricing of its weight loss drugs. we'll share the headlines with you after the break. hispanics have made a great contribution to this country. i'm not talking about just low-skilled workers but high-skilled workers and even c-suite. i would urge corporate america to understand the skills of hispanic americans, their history, their experiences have given them skills that they can use in busines s.

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. max makes construction faster, safer and more cost effective than ever before. and with max doing the heavy lifting, even more people can join the team. solar energy is changing the world, aes is changing the world of solar. boom! at&t internet that's why i'm chief 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)

ryan t. writes, "moving is stressful. can you help me take one thing off of my to do list?” ugh, moving's the worst. with xfinity, you can transfer your internet in just a few taps. just a few easy moves. did somebody say “easy moves”? ♪ ♪ oh no. no, i was talking about moving your internet.

this will move the internet. ♪ ♪ ooh, ooh. -let's keep it professional. professional dancers! -ok! stay connected during your move with the best in home wifi. easily transfer your services in the xfinity app. bring on the good stuff. . the ceo of notvo nor orti i the hot seat. for ozempic and whegovy. >> sanders has a post up up behind him showing the cost of ozempic compared to the prices overseas and to really make the point that the price is higher here. they had this really contention dialogue back and forth and him

directly the novo nordisk ceo and he's been dodging that question a bit but here's what senator sanders had to say. >> the outrageously high cost of ozempic and other prescription drugs is directly related to the broken, dysfunctional and cruel health care system in our country. while the current system makes huge profits for large companies like novo nordisk, huge problems for insurance companies and huge profits for pbms. >> reporter: that's important the last part about pbms. the ceo has been saying it's not just our fault. we not the only company involved in the price of drugs in the u.s. the pbms also play a big role. i thought it was interesting to hear senator sanders also talk about their role here. and he did make a point, though, that he's reached out to the

three largest pbms that said if novo lowers the price of ozempic, that would not negatively affect their placement -- coverage, excuse me, for these drugs. again, this big fak and forth on whose fault is it. we'll go back in and see what else we have to learn today. guys? >> what's get back to this age old question about how much profit? again, you're investing for all those years as a pharmaceutical company, they would say, right, angelica, and therefore you should be able to benefit from from your intellectual property to profit from the investment you made initially. i don't know how bernie sanders views that or what is viewed as enough profit to justify whatever adjustment was made? >> reporter: that came up from senator cassidy, saying they need to make a return on their investment if we want them to keep investing in their

medicines. senator sanders did say these drugs have been breakthrough and could have big potential for people to benefit. i don't think he's completely saying these drugs are worthless, but again it comes back to this question, how much should they be charging the u.s. and how profitable should these companies be. >> why is it just novo? why isn't lilly there? >> reporter: that's a great question. at this point a lot of people know the name ozempic, it's really the drug people know. but whether we'll see lilly up here one day, maybe at this point, but it is novo on their own right now. >> speaking of the drugs themselves, we talk to you about this a lot, the oral formulation under way, is there as well the possibility they'll try to figure out one that doesn't -- that reduces weight without actually reducing muscle mass? >> reporter: yeah, that's been in development. it was interesting in the written testimony that the novo

nordisk ceo provided ahead of time. he talked about competition and eli lilly and all these other drugs in development and that the natural competition out in the marketplace could bring the cost down over time. saying, look, there's -- these prices are going to go down on their own. you don't need to do anything to bring them down. >> thank you very much. keep us posted outside that senate hearing where the ceo of novo nordisk is testifying as we speak. watching u.s. steel today. stock is down a little bit as the drama has heat up around this company and whether nippon steel will be allowed to buy it. dave bird will be our guest on "money movers." >> it's become a political football. >> the pennsylvania as well. >> that's why we pointed it out. as you said, all -- -- trump and biden/harris have all aligned against the deal, although if

cfius does their work it's not clear what they would base a national security finding on, although there could be one for u.s. steel -- >> japan is one of our closest allies. >> right. looking forward to that interview. sara has dave bird coming up in the next hour. as for this hour, it's pretty much over. our live market coverage never stops. i can't believe you corporate types are still at it. just stop calling each other rock stars. and using workday to put finance and h.r. on one platform. tim, you are a rock star. using responsible ai doesn't make you a rock star. it kinda does. you are not rock stars. (clears throat) okay. most of you are not rock stars. oooh. data driven insights, and large language models. oh, that's so rock roll. it is, right. he gets it. yeah. the all new godaddy airo helps you get your business online in minutes

with the power of ai... ...with a perfect name, a great logo, and a beautiful website. just start with a domain, a few clicks, and you're in business. make now the future at godaddy.com/airo

[♪♪] your skin is ever-changing, take care of it with gold bond's healing formulations of 7 moisturizers and 3 vitamins. for all your skins, gold bond.

good tuesday morning again and welcome to "money movers." i'm sara eisen with brian sullivan live at the new york stock exchain. coming up, the ceo of u.s. steel, the first on cnbc since the deal with japan's nippon was announced. his reaction to the biden administration, which just extended its national security review of the takeover. chinese stocks absolutely surging. shanghai composite having its best day in four years. we'll tell you why. then trump's $10 trillion tax giveaway and what it could mean for an already ballooning federal deficit.