loans they originate in europe. the firm funding capacity has grown 130% to nearly 17 billion over the last three years and the gross merchandise volume growth for the first nine months of the year was 34% higher than last year. but still below 2022 levels. >> happy weekend, leslie and to everyone. it is friday the 13th. join us next week, squawk on the street is next! . >> when president reagan was here, he talked about putting the bear into hibernation and letting the bull run free. how does that sound? >> that is what we are going to do. >> president-elect trump with jim yesterday at the stock exchange as markets try to price in changes after a new administration. welcome to squawk on the street. we are here at post nine.

futures fairly steady on some solid corporate results. 10 year yield up every day this week. now the highs of the month. the roadmap begins with a trump transition, the future of salt, the fdic, new trade threats from china and canada. broad, surging with the cusp of the trillion dollar market value and that unitedhealthcare ceo with an open letter this morning saying that the health system is flawed and needs to be fixed. let's begin with the president- elect's historic visit to the nyc. he bid a fair amount of news here and upstairs. >> talking about crypto. very important. we have the nice soundbite. i thought the most important thing was china. it starts out that i have a good relationship with x i can't. that is not what i was looking for it all. i thought this was a chance to say, listen, i don't like the way i have my hawks.

and he says if it doesn't work out, i know you guys have done bad things or whatever. it's almost as if he said, i'm going to personalize diplomacy. i will be like nixon and kissinger. i have advisors but i will make this to be president x, you are going to do with me. there was definitely something he was signaling. that is not idle. and i think those that think it wasn't the most important part of the interview may not realize that there is something afoot here. i think that the president is saying, we need to end this trade war one way or the other. we end it good by making it so the u.s. will win because you need us or we end it bad. and if we end it bad, you are a loser and we may be okay. i think personal diplomacy is coming up. >> that is interesting. after the reports of the invitation to xi to the

inaugural which we don't think wheel get accepted. as a reminder, here is what the president-elect did say about that yesterday. >> we are having a lot of talks with china. a lot of good relationships with china. i have a surprising relationship. when covid came in, i sort of cut it off. that was a step too for. a bridge too far. we have been talking and discussing with president xi some things and other world leaders. and i think we will do very well all around. >> now the general weigh and with the china's moves on nvidia and drones and minerals and then canada, this report where they are weighing in export tax. how do you think other countries are responding? >> i think they are either bluffing and being tough or they will rollover. i think that this man is coming in with the mandate and the mandate is, in his eyes, if biden screwed everything up, i will make it right. biden screwed up china. president biden, very tough on china.

they screwed up but i will fix it personally. i will take on every trade partner who we did not have a good relationship with the last four years and i will fix it. the presidential personal diplomacy is new for us. we did have nixon going into china and saying listen, i'm the most anti-communist person ever in the government but i'm going to change this. i think there is more to what he is saying in terms of what he intends to do. and he played a different card yesterday. i have friends that told me, who was that man? that man is somebody who is forgiving. he is somebody who is humble. -- and i can't really say what i said about that here because i'm not a thug like i used to be. and i like that i'm not. i do think there was a sense that maybe you could be forgiven . you can come.

you can pay a million dollars or do whatever you want. i will not let you win against our country. but we can make a deal. and i think china, where he is with china, his thoughts, they are basically saying, they are on the precipice of china. we could push them over. i think what he is saying is, i have a good relationship. maybe we can make china better or make them pay. >> that is interesting. there are threads you can build. we have them on the ropes. we have the middle east on the ropes. within this big report yesterday out of the council of foreign relations looking at the partnership between china and russia which they argue is a monumental threat to the country. >> this is not the russia of april 1945. for heaven sake. this is not eisenhower saying, we will let them go into berlin . come on. the other articles in the paper tell the truth which brussels is in a massive retreat.

the deal i think the president will make with russia isn't going to be favorable for us. >> talk to the nato chief yesterday. we are not ready for what is coming in the next four or five years. it is time to shift to a wartime stance. that is the kind of thing we are talking about. >> it won't be a traditional kind of war. i think the negatives and the doomsayers will be surprised. nato, what other countries in europe are doing? they are going from 2% gdp, to 3% gdp. is a because of russia? no. it is because of trump. they are more scared of trump than russia for heaven sake. i think russia is looking at this situation in syria and i'm looking at it from the point of view that russia is out of money. >> a gas station with nukes. >> really quick, if geopolitics didn't harm the markets is your materially, do think that changes in 25?

>> i think it is hard to imagine what it would be like if china were to say, you know what, we aren't going to -- we are no longer going to keep building aircraft carriers. we have to get back to bring u.s. business here. and i think that there will be a price to pay. we don't have it yet. i do feel that -- i'm much more bullish after what i saw yesterday. bullish about the world. it was hard not to be. i think you have to be a nihilist not to feel bullish and i'm not a nihilist. >> it will be difficult to price some of these changes in. >> i remember when reagan came here. what i said was, holy cow, i have to get long. tech at that point was like, i was trying to bring the microsoft deal to goldman. i got the deal and they never gave me the gross credit for it.

and i have never forgotten that. that is 40 years i never got the gross credit for bringing microsoft. >> when you said, should people buy more stock, they said, i don't want a situation where becomes the dip. >> before, i think they would have said, what you want me to do? should i just take it up? a little more boisterous in the old days. both him and me. he did not claim to be able to say, i will do well. there was humility. there are so many people here that are so cynical these days that they could just say, jim, what are you listening to? i'm saying that i listen to a guy right there. i had read an article in the new york times that said, best day ever for trump. maybe that's true. but that was devoid of cynicism too. maybe be a little less cynical. you can be a little ironic. but be a little less cynical. >> we will watch it closely. broad come is a big story

surging in the premarket. company issued stronger-than- expected guidance and posted earnings. some ai demand. >> in q1, we expect the momentum an a i to be as strong. and 3ai in the fabrics. next-generation. and we will be the first of its kind to market in that process. we are on track for volume shipments and hyper skill customers and the second half of fiscal 25. >> turning on to storage. from the bottom six months ago, q4 storage connectivity revenue has recovered. some 20%, to $992 million.

and in q4, we expect revenue to continue to grow. >> the key goes to 260. >> talk about 60-$90 million. not total adjustable market but a service adjustable market. this man -- this man, hock tan, he has got some remarkable orders from google, from meta, from bytedance. now he is talking about owning -- and this is my read between the lines. i think he has apple and open ai. marvel up six. they have amazon web services. they also do businesses with some of these. this is a combination of ai. not only real but $16.9 million real. he will get his fair share. morville will get their fair share. you cannot knock nvidia. what he is doing is, if you have chips that have and friends come he can come in and

make them better. but remember that morville is amazon and that is the big one. >> isn't that a negative nvidia story? >> he is also big partners with nvidia. >> what we didn't mentioned yesterday was, in all the time person of the year stuff was lisa sue being named ceo of the year. >> where was that? >> i had dinner with her when i was in california. at her table when it was announced. this is a really important story. amd is not winning right now. nvidia is winning right now. amd does not have the business i was hoping they would have with amazon web services. it has not been in a good position. she does have a lot of other stuff that is certainly in the data center and does have a number two gpu in the process

unit that nvidia dominates. i have been after her to be able to say, could you please give me something big here. give me something big. i think what you get is she crushed intel. intel, we forget what intel was like. with 10% of the market and until 90%, it was, until worried about the justice department. not bite in. were saying we hate anyone who makes a lot of money. we hate the rich. which was like, give me a break. give me a break. but amd beat and tell. >> the piece is largely about the scope of her 10 year. >> she has been amazing. >> and had minimal datacenter chip market share. >> the scott stock was at 50. she took me to dinner. dismissed everybody and said, i'm about to take you to school so you understand how wrong you are. and i just sat there and at the

end and said, short into. and i came home. she is from queens like my wife. i said two women from queens and they really know me and they really only now. >> there is some good color on how tough she is in the piece. we come back, the ceo of united health group puts an opinion piece and do you -- in the times. triple q is 30% for the year. don't go anywhere. what's right for the business and what's best for everyone who depends on it. solving today's challenges while creating future opportunities. it takes balance. cla - cpas, consultants, and wealth advisors. we'll get you there. at t. rowe price, we help advisors move forward by building agile

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son: i said i'm fine. ♪ dad: you can talk to me. son: it's been really, really hard for me. the healthcare system is flawed. that is the message in the new york times opinion piece where we are mourning the death of ceo brian thompson. in response to social media chatter what he says, "we know the health system does not work as well as it should and we understand people's frustrations with it. no one would design a system

like the one we have and no one did. it is a patchwork built over the decades." jim, there is also a good piece in the times today about thompson himself growing up in iowa. didn't get on a plane until his high school years. as he was laid to rest, it was a sad story. >> . 17 worked to lower the cost of the system but raise the quality of each estate he was in. always talked about how aca, more competition allowed, republicans allowed, there would be more competition. there would have been much lower prices and more competition for the customer. and if that was the major flaw of the system, typically for medicaid, i would come back also and say, can cvs -- we have a bipartisan effort to make cbs give up its pbm.

and people say, what is that? there is every single aspect of this business that has people pointing fingers. the problem says mckesson. mckesson says, we are the answer. andthey will say this is the way small drugstores are in business. there is no comprehensive system. and saying, we need competition. and is the american way and we don't have it. >> i know the justice department was unhappy with united health. >> we don't even know whether this would be a sale in this alleged assailant was insured by unc. so cvs is a good one. and u looks enticing. >> united health, say nobody takes them on.

they could take on united health and i would sell it. >> even from here. >> this would be the case that the justice department would win. this man died. i was a homicide reporter for a long time. i have never seen it. >> and we have not even mentioned the posters that have gone up in some cities. >> this man was murdered. >> we will dive into the story more. certainly some deep issues in healthcare and in biotech. e retdown to the opening bell. onmo look at the premarket on an eventful week. more squawk on the street in a minute.

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we don't expect a negative impact for the most recent communications regarding the potential for increased tariffs and 2025. we have been proactively moving and sourcing away from china over the last several years

with the expectation of fully exiting the country by the end of the 2nd quarter. >> we are also transitioning products manufactured in mexico and believe we can successfully reposition sourcing with no disruption to the supply chain. >> gary friedman watching that . >> there are many things that have been in play. gary had to deal with the idea of pulling out of china. he was most concerned about the quality of what happens when you pull out of china. what happens to quality if you go to vietnam? he was not initially happy. he has been very much in sync with one truck with what trump said. the worst housing market in three decades, he pulled it off. this is finally there. a lot of the european expansion is good. it is well ahead of what i

thought it would be even last quarter. my hat is off to him. there is a gigantic position. gary bought so much stock and people felt he was rolling the dice. but he knew his business. i think he is a delight and is a competitor like none other. >> orders up 13. accelerating in a november. i think they were up 18. >> i knew because i had him on last time and i could see the projector he. people last year thought it would be minus, minus, minus. and gary is an inventive -- if you ever tell him, i told him i like to the cheers. how do they look? where are they? the guy is so competitive. he really thinks everybody else has no clue of how to do his business. it is not furniture but a piece of art. >> moving from 3:30 to 440.

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service titan entering its second a is a public company after giving a boost to the ipo market yesterday. the software vendor coming off of a 42% gain in its debut. and the nasdaq, jim, we have been talking about whether or not these guys, names like this, will start stealing oxygen. >> it is good to see. if you are a bull, you needed to see deals being done and priced to move. price for the people who buy. at the end of any cycle, it is the opposite. you get hurt if you buy. we are the early part of what i think is a new cycle. the brokers have a lot of deals lined up. to those who want to come public, what they are saying, we need to get the deal done but the buyers have to win.

that is an example yesterday where the buyers had to win. there will be a bunch of these deals where you will be saturated. >> we talked to lynn martin yesterday who said the pipeline is encouraging and it is kind of hard to argue with market conditions right now, wouldn't you say? >> this is a good solid grower. it isn't one of those companies that won't make money for years and does enterprise software. it is one more company that does analysis and some cybersecurity. like there is a legitimate working person cohort that does better when they use it and i just thought that this was the ideal company to kick off the next cycle. >> what you make of the argument this morning that picks and shovels are working but adobe is not. >> there is an undercurrent of adobe which is that they raise price too much. they are still the gold standard

. with the gold standard may not be as necessary because of the way we do advertising. not as good but so cheap. oracle, i think oracle did this to themselves. they kept saying how great things were. and when they came out, it will come back but not yet. >> the maker of power transmission products. 125 years at the nasdaq logistics company ch robinson. potential tariffs. the president-elect with the post. >> unbelievably good call. a lot of people in transportation, it is a joy because they can tend to be closemouthed. >> interesting to say. trump said he knew a lot a

this case, seemed to be siding with labor. >> the traditional republicans would say the big problem is that we can't automate like rotterdam where they have three people. it's not like that. and it is not like that typically because these are so powerful. but a republican would come in and we would try to figure out how to change this. but they won't do that. it is a very contrary position. the president, people say is mercurial and i understand. he is arbitrarily mercurial. but there are taxes on the system. >> i think they are a little surprised too. >> a lot of people, the teamsters, teamsters have been a renegade union at one point and hated the democrats. bobby kennedy senior, and i

think we will be continually surprised. >> that is what keeps so many off balance. you mentioned rfk jr. you talk to him on the floor just yesterday. and other times has this piece that one of the lawyers working with him to pick staff is positioning with the government to remove vaccine approval. what do we believe? >> we said, a lot of people put words in your mouth but the most important thing is, high participants. reconsidering the polio vaccine to me is basically saying, -- numeral. >> it is a ton of dark humor about iron lungs. >> those of us that remember getting the injection because we were afraid to go outside because of polio. trying to

think, bobby kennedy junior is my age. does his family not worry? the fear that you had about polio, it is just tremendous. but anyway, i want to be open- minded about a lot of things. but i'm not open-minded about that. >> the technical seasonality we are and for these next couple of weeks is historically pretty good. >> and nine days we have had ugly markets. oversold on the oscillator. whatever you have been saying about the data center, forget about it. it is so much bigger then we thought. i think she is the greatest and i have admired her work forever. but hock tan is one of the

toughest business people in the world. and he was -- in a way i never heard him. i interviewed him two times ago in california and i never heard him like this. basically saying, look, this is the greatest cycle ever. he doesn't use super cycle. >> look at that. >> stock was down initially. so many people trade in the first 15 minutes and they shouldn't be in the business. they should be thinking about their lineup. maybe the draftkings lineup. maybe they should be doing a daily fantasy or finishing, maybe they didn't make the playoffs. how could they not understand when hock tan is talking about a level of business. 60-90 billion in fiscal year 27 . it is impossible. you should be buying marvell

and yes, you can buy nvidia and this has become the poster boy. people say stuff about nvidia that isn't true. i hear about nvidia doing something that is just not true every day. it is painful but a lot of people want to knock off nvidia. it is the king. you always want to knock the king. >> in june for the year, it was up 170%. since then, up about 3%. that is what people are thinking thinking. >> that is just classically so stupid. if you think about the numbers that apple gave you, the percentages, and you look at all the times people told you -- we have gotten the negative stuff. you have to stick with these companies. there are alse periods of underperformance. but i think 25 will be a big year for nvidia. and i thinkblackwell will shift and volume. people forget what they do which is video. when you do video, you can do robots. you can program them.

you have a robot who was swab. go listen to the last few speeches the ceo has been giving. it is about reasoning. they reason now. by the way, reasoning for salesforce. the salesforce stuff is remarkable. when you see these adds with -- i don't want to give them away does but i think you will say, i want to deal with a company that does -- that has the salesforce. >> eat today does upgrade. crm. and also cut service now. >> jackson. i was talking to gorman who is the ceo and they said jackson is doing quality work. that was a remarkable switch. >> when you go deep into the piece, you don't hear anything bad about service now other than valuation. and you get a little excited

about what salesforce is doing. i'm very excited. >> we forget that time magazine is owned by nvidia. >> one interesting call today is housing. jpmorgan coats toal and horton. he demand drivers. rates, affordability, workforce, will not be helpful they argue and 25. >> workforce, we are looking forward to does not meaning hopeful about, but looking forward to immigration. i read that piece. you are supposed to buy -- brothers. it has been a remarkable run. i salute. it is million-dollar homes. what is interesting is there will be some dissent next week? we will hear this? >> from the fed? >> yes. because the downgraded toll made me feel like, i don't want to play the game if there will be cuts or not but it made me feel like if you are buying a home, you will be wrong this time.

it was kind of a chilling piece. >> morgan also points out immigrants overall account for the largest percentage of u.s. construction workers in 20 years. >> what can i say? that is our economy. when we look at inflation, we should be thinking about the birthrate and the birthrate is way too low. >> have you seen the announcements out of china and japan trying to get the birthrate higher? >> people should remember that if you want to go back to see what birthrate meant, go back to east germany. go back to the suicide rate of east germany. the chinese birthrate, the chinese economy, it feels a lot like east germany to me. people have to go back. study east germany. study what happened in that country. it is true. >> in that case, a lot of it

is self-inflicted. >> i know you want to get to costco. >> a nice print. >> what you think? >> two things. people are buying gold and jewelry and gift cards and home furnishings and sporting goods. all things under pressure. health and beauty under pressure. the big-ticket things, people are buying a lot of expensive food, double digits in meat. but my favorite part, i have always said, nobody, comes after inflation like costco. three things that were emblematic. peanut butter produced 11.9, to 999. and chicken stock, $9.99, to $8.99. and $749, to $649. that is and will manic of what

is done in this country. >> people to go there will recognize the power of costco to keep prices down. >> we pointed out in the documentary years ago, when they had a vendor that did hotdogs and tried to raise the price of them, they said, we will figure it out ourselves. >> and they do. when they saw the rotisserie chickens are so good. they had these really good pizza slices for samples in allentown that i went to a couple weeks ago. don't eat before you go to costco. >> because you will eat there. >> they have some stuff that his killer. don't love the calories. >> jam, materials. nine straight negative sessions. we have not done that in almost a decade. >> the fourth rate cut, newport

takes off. and we are so far from that. cleveland cliffs, very good company. there is no hope there. i shouldn't say it. i'm not going to tout it. but i do think that when you look at these, you should be thinking china. and you look at some of these transports, these shipping companies, they are 15% yields. star bulk. don't touch them. china is an ordering anything. china is just -- now they are talking about physical stimulus. and we sit here and we think every day, wow, it is going to happen. it is going to happen. what they need is to have a trading partner and they need a trading partner like the united states. and i think that is what president trump is doing. >> look at otis. the big market is china.

does not building anything. otis has a great service component and the chinese are passionate. the safety concerns are like hours. i do think that everybody who is trying to figure out that china will get it together, give me some evidence, please. it's not anything to do with minerals. i just don't see it. i just think they are nowhere. >> also reason crude can barely hold 70 today. opec cut the forecast four straight months. >> you can think russia has to cut back or iran will be surrounded. and taking a leave of it. and getting the price of oil down and getting the ppi number. and how do you entice the oil companies to drill more in this country? they don't seem to want to do it. >> the chevron cap was in that vein. but others argued exxon has figure out a way to continue to invest even if the base price

is lower. >> i think chevron is a better buy than exxon. i like the buy back. but these stocks have been incredibly hard to own. rick put together a pretty darn good company. you would think that somebody would come in and take a look at devon and kept -- kick the tires. the stock at 52 week low and 26% down. four-man stepping down, no real infrastructure beyond him in terms of people working there. obviously this was his company. and you are not giving or getting 1 ounce of m&a chatter. people don't want these stocks. >> and intellectual who has done a great job. >> talking about the banks all week. now this journal piece on what you can consolidate the fed or do away with the fdic

completely. >> and i read that. the first thing it says, that is showing. to be go back to it's a wonderful life. or can you say, how many regulators they have. how is that possible? treasury stress test and another do fdic. i think we all feel the banks have to pay the price for what they did wrong. but i also think, do they have to pay the price over and over. ? regulars are hard to get rid of. it is almost impossible to get rid of an gency when you create one. it will be interesting to see what this man can do. >> the fdic is onerous, we were complaining two springs ago. >> i think you could put them under one roof. i like the fdic. i think it is a great organization. but does it have to have the same people going to the bank that the treasury has and the federal reserve has? i don't get the. i think there are a lot of regulators. and if ou are trying to save money, obviously does not the

regulators that are paid so much and that is the problem. i think you feel hamstrung if you are a bank. the apparatus -- i want banks to be safe. but the apparatus of compliance people, we used to call them dead weight. the renegades days are over. so many people dedicated to compliance. a lot of that is dedicated to having another regulator or another regulator. maybe we have one super regulator that is really tough. by the way, and britain, the top guys pay a fortune. top regulators paid a fortune. i think that is good. >> we are going to get a new chair of the house financial services. on squawk today. and actually talked to the team about, in this case, a lot of things. in this case, crypto. take a listen. >> i would have to think long and hard about what the value of that is to the united states or the treasury. but i'm certain of this.

we need a fair-minded fit for purpose regulatory structure for digital assets in this country. >> referring to a reserve there . >> i asked the president- elect. i do think there are a lot of people who, behind the scenes did not like the sec's approach. the approach was basically to prosecute. and the c because ftc was very concerned with losing crypto to your. president-elect trump worried about losing crypto to china. you want to have some regulatory stance here. you don't want to just be hijacked by others. and i think people felt that that is what gensler was doing. i think what they were really saying is, there are 50 bogus cryptos. they were always willing to facilitate the cryptos that were bad but there was never bitcoin and it was never a

thing. >> the other thing this week has been commentary from other banks or exchanges saying, we would love to play more too but our hands are tied. >> the dow will figure it out. i don't know why they think their hands are tied. i think you have to be a little more creative. and i don't mean creative in terms of financial engineering but i'm saying, go follow fidelity. fidelity is a great company. i have my crypto with fidelity. i'm not endorsing fidelity. i have had and don't -- fidelity since 1977. i do know they have made it very easy. you want to buy it, you can during the commercial. >> i'm holding 100,000. >> a lot of aggressive targets for 2025. >> i don't think the government will be able to pay back the 36 trillion. maybe they can. i own gold and i own crypto and i own those because i'm not a nihilist but i am a realist.

>> 10%. >> i don't get why you wouldn't . that is why when these and people say they want crypto, they say they like it because it goes up. >> taking a look at bonds as well. what week it has been for the central banks. after canada during this week and next week we will get our own. more reports today that they may try to avoid an increase. we will see what happens in the coming days. right now tenure highs of the month. stay with us.

the nasdaq, another all- time high. 20,061. one of the leaders this week has been warner bros. take a look.

the city comes out and says, we think comcast and warner's cable networks will seek to merge longer-term. we believe the sale of the cable networks may pave the way . what is left? >> remarkable turns right now. nasdaq all-time high. dow up 65. stay with us! our latest deepwater development, anchor, produces previously inaccessible oil and natural gas, allowing us to deliver the energy we all need today so everyone can follow their own road. that's energy in progress. ♪ in any business, you ride the line between numbers and people. what's right for the business

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paypal gets an upgrade. you can see, jim, it is up 40%. no. this is alex chris. we met him on the stock was in the 50s. david interviewed him. if the stock comes down, he is fixing paypal. at a big february analyst meeting, you can see how much it was fixed. it was a company that was despised by wall street. a lot of overpromising and under delivering. this man has had to apologize for what has happened. is about to go on the offense. >> it has been a series of upgrades. >> not idle. >> the company is becoming maybe even the most important.

>> there is news about a new loan partnership today today. >> i think paypal is doing a lot of things right. and it is a beloved brand. they never kill that. they did a lot to destroy it but they couldn't kill it. >> interesting that the founders have found new life and the policymakers. >> it is a kitchen cabinet. >> how about tonight. >> i have an outfit that has the housing. they do decking. they are growing like mad. if you have a product that is really good, it can out run a warrant housing market. >> that is the point about friedman surviving the worst housing market and 30 years. >> the highest of the high end. >> when i say furniture, we are talking about that. >> i have a rocking box this

weekend. >> we will let our imagination do the work. >> steelers fans asked to be able to wear it. >> have a good weekend. see tonight. 00asrnimasat 6: ete te we have the nasdaq all-time high holding 20k. don't go anywhere! to searc even if your phone is old or dated, you can turn it in at verizon for gifts for you and the family. it's your last chance to get galaxy s24+, watch and tab. all three on us. that's up to $1,900 in value. survive the holidays with samsung, powered by verizon.

♪ good friday morning, welcome to another hour of "squawk on the street." i'm sara eisen with carl quintanilla live at post 9 at the new york stock exchange. daufd david faber has the morning off. take a look at stocks, a mixed picture for the week. the s&p is higher this morning, a third of a percent, it's all technology and consumer discretionary. on the week as a whole, we're down a little on the s&p, a

third of a percent. the nasdaq is up almost a full percent. this has been a week of out performance from big cap tech. today it's broadcom leading the charge, which we'll talk about in a moment. lifting some of the semiconductors. nvidia higher, palantir is doing well. of course these stocks are bigger than most. tesla is having another good day, up a few percent, another 1.6%, a banner week. take a look at treasuries. this was a week we got a firmer cpi and ppi, wholesale and consumer inflation. ahead of the fed next week, which is widely expected to cut interest rates. ten-year note yield, a little elevated, 4.36%. the narrative is cut and pause, and maybe that's what the market is telling you now with the selloff in treasury. we're 30 minutes into the trading session. here are three big movers. broad koj broadcom shares rallying, and citing strong demand as it develops custom ai tips. more on the street reaction, what to do with the stock in a

bit. rh posting big gains, despite missing earnings estimates, raising its q4 guidance, it expects revenue growth between 18 and 20%, which is well above expectations. we're keeping our close eye on the latest ipo. service titan, dropping about 6%, a little less than that, a day after the stocks surged 40% in its debut, was thought to be a very good sign overall for the ipo market into next year. but, carl, the story this week continues to be one of optimism, around the stock market, around the economy, very appropriate that the president-elect visited the new york stock exchange this week. this chart stood out to me most from goldman sachs, the inflows into u.s. equity etfs and mutual fundings. one of the highest levels we have seen ever. it speaks to the enthusiasm we're seeing for the u.s. equity market and for the u.s. economy relative to the rest of the world and also just relative to

where we thought we would be at this point. >> yeah, i mean, the only push back is that breadth has been negative for nine straight days. a third of the s&p is beating the index, and the ten-year yield has been higher every day this week. >> there are warning signs, it might not go straight up. i think overall, the optimism is there, the sentiment is high, and the flows are into u.s. stocks, whether that's in mega cap tech, which has been taking the lead this week or small caps, which has been the outperformer in the last few weeks, the broadening effect. we don't know where that's going to end up. we know there's a lot of optimism. i mentioned the small business optimism index that it spiked this week. i want to pull apart components that we didn't get to that i think shows the mood change in america, particularly among small business. they looked at plans to add employment, and again, big tick up from the previous months. plans for capital outlays or spending, a lot higher. look at the expect economy to improve at 36% was the highest that they have seen in years

from small business and a huge surge after the election. so just highlighting some of what small businesses feeling, real sales higher, a big increase. now a good time to expand. these numbers were negative, like as recently as a month ago. so, yes, it is tinged by politics, sure, and how they feel about the current election and the climate, but also just the economic outlook, i think, is certainly raised. you heard bill ackman on this show yesterday. he was here for all the trump fanfare, has been a big supporter. listen to what he said about the kind of environment we're in right now. >> we're stepping into, i would say, the most pro growth, pro business, pro american administration i've perhaps seen in my adult lifetime. i don't know anyone who is opposed to the business plan of this next administration. and i think it bit of a

self-fulfilling prophesy. the backdrop is you've got a fed that's lowering rates, you have inflation under control. you have a ftc, which is going to be more thoughtful about allowing transactions to happen. that's very bullish for markets. >> no doubt about it. >> you've got the wealth effect, right? >> i mean, very excited about, i think, the current market prospects, and also sums up the mood that you are starting to see in the surveys, like small business or in the in flows into u.s. equities. you mentioned some of the pushback, the knocks. tariffs high on that list, right? what's going to happen with tariffs, is that going to disrupt the economy, lead to inflation. one quote stood out to me this morning. i know you read david rosenberg as well on rosenberg research. he's been on the disinflation theme. he argues that the trump policies will not be inflationary. he says on net they will lead to lower inflation, as we saw in his first ten-year, tariffs are

one off price level shift with no lasting inflation. the likely move to reduce the inflationary effects of the inflation reduction act, disinflationary. i thought that was interesting because it goes against the grain in the sort of worried consensus and in the background that some of these policies will lead to inflation. i mean, rosenberg as an economist and strategist says absolutely not. >> i'm looking back for the comments that made last week with david costen where he said the exact opposite. >> right. and there's a debate, that tariffs are indeed, inflationary, right, because they will cost more for consumers, if importers have to pay more, but there is a question about whether it's a oneoff increase or not, and you can't argue with the fact that ai, deregulation, cuts in government spending, that ultimately could put pressure on

the economy. that would be the bad effect, but also could be disinflationary. the bottom line is president-elect trump ran on the biden inflation, saying he's going to fix it, and it's not acceptable, so it would be hard for him to put in place policies that were very inflationary. i know he ran on tariffs too and that's a big thing for him, but there's that sort of competing idea out there, and i think the market has faith that he cares enough about the stock market and the american economy and about inflation that it will not get out of control. >> we're back to the discussion, how do you let the economy continue to run hot and remove a big part of the labor supply and also cut your grocery prices in half, which he backed away from a little bit yesterday. >> the good news is we don't import a lot. billion dollars avocados and produce, a lot of the grocery is here. that shouldn't be as affected by tariffs, and if you have lower corporate tax rates and deregulation, that could prompt companies like kroger and costco and walmart to invest a little

bit on pricing to get grocery prices lower. that's the flipside, but everything else, we'll see what the tariffs look like! >> meantime, broadcom announcing strong guidance for q4 saying it sees a massive opportunity ahead for ai revenue. dig in deeper with harsh kumar who raises his target on broadcom from 200 to 250. great to have you back. happy friday. >> thank you. >> the print itself didn't feel like a blow out. it's these numbers about 26, 27, is that the reaction today? >> the most important thing in the earnings call is the visibility that broadcom provided to 2027. what you have effectively is a month ago, nvidia came out and talked about a very good prospect for 2025. a week ago, you had marvel come out and talk about prospects through 2025 into '26, and now you have broadcom coming out and talking about extremely d

prospects through 2027. with capx rising, he's talking about a number that's potentially rising 400, 300%, and that makes investors feel extremely comfortable about the ai capx spend. that's what's going on here. >> there's been some discussion this morning about how the picks and shovels element of the story continues to work, but the incremental story, say, regarding adobe certainly this week or oracle is still less certain and hence the payoff. the eventual roi is less certain. would you agree with that? >> i think the dynamic that most people forget is that the capx that is being spent into ai is being used to offset or will be used to offset a lot of the opex. when you think about chat bots that are helping out, displacing effectively call-in operators or centers, i have heard of companies using chatgpt and other mechanisms to check the code that they write, and i have

heard of companies using such programs, generative ai programs to write the actual code, and what i'm hearing is the checks are pretty good. the testing is pretty good. and the quote is actually pretty good. when you think about those kinds of dynamics, you're thinking about a massive amount of costs that could be taken out of the system for ongoing business, and that's where the roi lies, and of course you have the cloud providers, which will show you, you know, meta will show you videos you like a little bit faster and, amazon will sell you stuff or recommend things a little bit faster, but the real enterprise will save money through basically writing code, saving code, you know, cutting out customer service people and things of that nature. that's where the real return will be. >> can you just explain, harsh, to a layperson, so the ai chip opportunity is what is so exciting here for these stockings and what leads to, what, 20% moves. where broadcom sits and who it competes with, is it broadcom

and al, so where does broadcom play here? >> that's an interesting question. you have to break out the pu market into two pieces. one is your plain vanilla, intel-like chip that does a lot of different things, and you can buy it off the shelf, and you have software available and a lot of help available from vendors to be able to work this. not just sophisticated people. let's say your typical enterprise or medium sized business, that's what nvidia does, what amd does. you have broadcom and marvel, that will make you a custom chip that's 20% cheaper, 30% faster or 20% faster, takes up 25% less power but there's no technical help, no software provided. you basically have to know what you're doing. you have to be a diy guy, a google, a meta, a microsoft or an oracle to be able to use those chips.

now, these chips are not meant for everybody. each have cost, 4, $500 million to make. they're not making chips for a 5,000 unit order. they're making the chips for 250, 400,000 unit orders and so the customers are chosen appropriately. that's roughly the split. broadcom makes custom gpus which they like to call xpus and so does marvel. the other side is amd and nvidia. >> harsh remarkable print and reaction today. the story we'll continue to cover with your help. have a great weekend. thanks again. >> thank you. thanks for having me. we are watching the banks today, following reports that advisers to president-elect trump are looking to shrink bank regulators. interesting story here. leslie picker with more. what's your reaction to this? how realistic is it? >> i agree that it's an interesting story. how realistic it is remains to be seen. it requires an act of congress

to change a lot of the agencies, especially if you were going to eliminate one, but the prospect of reforming the multitude of government agencies has been a big topic in the industry. bank's interface with a host of regulators, including the fdic, the fed, the occ, cfib, and fha and ftc to name a few. and reputationally, it's been somewhat of a tough few years after the bank watchdogs. the regulators were perceived to somewhat be responsible for not catching those issues sooner than earlier this year, the fdic was found to have a toxic workplace culture, ripe with harassment, discrimination and misconduct. the regulators have been sued several times by the banking industry over alleged regulatory overreach. the latest is yesterday over the cfpb's overdraft rules. there was several instances where it became clear that the agencies were not on the same

page. the fdic approved the acquisition of signature, but then it was the office of the comptroller of the currency that reportedly encouraged the bank to make some drastic accounting moves that surprised wall street leading to major volatility in the stock price earlier this year. another example is the new capital rule, basil 3 which remains in limbo, the agencies haven't agreed on the path forward. to be sure, and i think this is why you're seeing some of the stocks in the red today, a huge, huge risk with reforming the web of bank watchdogs is the loss of confidence in the banking system. former dfic chair sheila bare said treasury has no expertise in handling bank failures, changing the guarantor would create confusion among depositors, who were comforted by the sign at the banks. >> the occ, the doj, there are a

lot of regulatory alphabet soup here. >> yes, exactly right. it's an alphabet soup. there are, you know, inassistances where there are duplications, there are instances of disagreements, in a situation like nycb, the disagreement on the bank and potential pitfalls in becoming a bigger bank led to volatility because of the changes they need to make with regard to slashing their dividend and booking some losses in their loan book, all of that is a little bit more of an art than a science, and some regulatory arbitrage played a role there. and so a lot of people who look at this, they say, well, maybe there is a way to streamline. make it so there aren't duplicative functions. there aren't areas where there's so much disagreement. on the other hand, when you take a system like the banking system that's integral to the economy, you may not want to mess with it

too much, out of fear that it creates more moral hazard, and potential pitfalls with regard to crisis of confidence, carl. >> that is the balance, really fascinating look. we'll see what happens as some of these policy changes are awfully hard to predict. leslie picker watching banks today. we are great breaking news of d.c. for that, we'll turn to eamon javers. >> mckenzie and company agreed to pay $650 million in a deferred prosecution agreement that will resolve a federal criminal probe into the company's consulting work, advising purdue pharma, a former top partner, martin elling agreed to plead guilty to obstruction of justice in the probe by the department of justice. the criminal charging document alleges the consulting giant knowingly and intentionally conspired with purdue pharma and others to aid and abet the misbranding of prescription drugs. the document also said mckinsey

is accused of knowingly destroying and concealing records and documents with the intent to impede the investigation by the u.s. department of justice. mckinsey had previously agreed to pay a billion dollars to settle lawsuits by states, local governments and others related to its opioid consulting. this would seem to mark now, guys, an end to a disastrous chapter for the country and the company. back to you. >> eamon javers, following it from the beginning. thank you. as we head to break, here's our road map for the rest of the hour. the major averages are trading around record highs, but there is some underlying weakness. we're going to dive into it, and discuss whether we will see a santa claus rally or a santa slump. crypto may be the hottest thing on the street, that's not the case from main street. exclusive results. and unitedhealthcare group's ceo out with an op ed calling for health care reform following the murder of one of the

company's top executives. "squawk on the street" will be back after a quick break with the s&p 500 and nasdaq higher, the dow a bit lower.

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xfinity internet customers, ask how to get a free 5g phone and a second unlimited line free for a year. stocks are sitting around record highs. there's underlying weakness in the market. the s&p 500 had more stocks close lower rather than higher yesterday marking its ninth straight day with more losers than gainers.

according to deutsche bank, that's the longest streak we have seen since 2001. will investors see a santa claus rally or slump. senior investment strategist joins us now. what do you make of that issue, mona? >> we have had a great run in 2024. the s&p is up about 27%. are we surprised to see a little bit of pullback, volatility, keep in mind, this is year end where folks are thinking about rebalancing, repositioning, tax loss harvesting, to us all of that aligns to a market that may be taking a bit of a breather. we think momentum is on our side. the santa claus rally tends to happen in the week after christmas through new year's, and we think that could be a possibility to year end. more broadly, the fundamental picture remains in tact. an economy that's not showing a sign of recession. a fed moving rates lower and we think inflation remains contained broadly. this week's data said that as well. that still calls for a

continuation or at least the underpinnings of this bull market remain in tact. >> so i showed this chart earlier about inflows, u.s. equities logged $186 billion of inflows over the last nine weeks. largest inflow on record. money is flowing in post the election, as the fed cuts. how much more do you think there is to come in from the sidelines, whether it's from cash, from overseas? here's the chart. it's pretty stunning. >> yeah, you know, a couple of things in play here. one, we know about that $7 trillion sitting in money market funds and secondly, this has really been a year and perhaps continuation of the u.s. exceptionalism story. this is a confluence of a u.s. domestic economy that continues to perform, and we're seeing that play out in domestically oriented parts of the market like not only large caps in the u.s. but mid and small caps in the u.s., and part of that cyclical value story is also driven by that u.s. exceptionalism as well.

we expect more of that in the year ahead, certainly, and we do think as investors start to think about 2025 positioning, yes, we continue to like and they continue to like the ai mega cap technology theme, but i think that exposure to those parts of the market that have scoped for valuation expansion, that will see better earnings growth ahead, and that will benefit from the global rate cutting cycles, those will also play some catchup, and continue to play some catch up. diversification theme, broadening the market leadership, we think the flows head in that direction in years ahead. >> you mentioned inflation being contained. ppi did run hot. headline cpi was the biggest month on month in july. three-month annual rate on core is hotter than the 12 month, how much of a risk is behind that statement? >> you know, look, i think the inflation story heading to the fed's 2% target and staying there is a tougher one. but the contained story perhaps

inflation remaining in this 2 to 3% range is one that we could get behind, and one thing to note is it's not only inflation absolutely. it's relative to what folks are getting paid, and this year, what we really saw continuing from 2023 is that wage growth outpaced the rate of inflation. folks were taking home real wages that they could spend and we continue to see a consumer that hung in there. we think that story continues into 2025. we think wage gains will continue to exceed inflation rates, which we think will remain in the 2 to 3% range, even with some of the uncertainties around, whether it's tariffs, deregulation, the tax cuts, et cetera, we still think inflation remains contained but more importantly, wage growth exceeds that rate. >> everything you said is positive, the economic environment, the backdrop, everything, and yet the fed is cutting rates next week. feels like a sort of odd that the market is 100% priced for a

rate cut with stocks at record highs and the economy chugging along nicely. >> it's a good call out. the fed is cutting rates for the right reason. they're not doing it because they're worried about a recession as we saw in '08 or '20 during the pandemic. they know that the fed funds rate at 4.75% is well above core pce even at 2.7, 2.8%. they want to get to a neutral, less restrictive policy stance. there's an oldie of old age. something tends to kill them, and usually it's either recession, fed rate hiking cycle. and we know the last one is hard to handicap. the first two we just don't see on the horizon. so bumpiness ahead, absolutely, volatility, perhaps, but still seeing that kind of bull market hang in there. >> mona, thank you very much. mona mahajan, it is interesting, carl, some economists agree with

this point. we do not see a conclusive case for a fed rate next week. hard to fight the market when it's at 95% chances. a lot of data would indicate that shouldn't happen. this is not a fed that typically surprises. >> that would be a surprise, and we know why because they condition the market to not expect surprises. >> it's lack of surprise than data pointing you there. we continue to track bitcoin up today, up more than 40% since president-elect was elected. our survey shows the public has hesitancy about owning cryptocurrency. steve liesman has more on that. >> crypto may be the hottest thing on wall street, that's not true on main street, not yet. the all economic survey showing reluctance among americans to embrace it, and shows an opportunity for virtual currencies if you can gain the confidence of the broader public. just 13% in our survey saying they own crypto now, and 32% of that group are in that younger

cohort, 9%, 65 and older. college grads are about half of that. high school or less, just 21%, and here's the democratic/republicans, you have had a president-elect talk a lot more favorably about it. we don't know who's smarter here. we know perhaps who's richer at least for the moment. 7% say i think this is the ultimate confidence test. will you take your wage in crypto, just 7% say yes, but 22% say, hey, maybe some day. 61% say keep your crypto out of my paycheck. 10% are unsure. crypto finding greater acceptance as an investment, but it's old-fashioned stocks that are really hot right now. take a look. real estate is the number one. just barely choice of investments among our 1,000 respondents across the country. that's down 9% from 2022. stocks up 9. gold about even. savings account, well, of course you're getting a better coupon

or rate in the savings account, and there's crypto, up by 4%, with 15% being chosen. 40% say it's a good time to invest in stocks. up 6 points in august, and the most optimism we have seen since 2022. you can see there, and that goes back to 2018, where it was 43-30. even though we're talking about investments, we find a lot of politics when we look under the hood of these numbers. republicans are 56% more net positive on stocks than they were in august. democrats minus 12. independents are 22% more positive than they were right in between the 22%. vote any way you like, folks, but as we have shown in previous reports using this data, it's almost never a good idea to play politics with your portfolio. democrats leave gains on the table under republican administrations. republicans end up poor when they invest against gains against democrats, guys. >> similar to the sentiment data where we have seen a real break

on the political front. on the crypto thing, i wonder, steve, if we do,less regulation or more better regulation on crypto leads to more access to retail products like etfs and other platforms, i wonder if that will help americans feel more comfortable because it's still not exactly obvious how to trade it and where to trade it. >> you know, sara, that's a really interesting question. you could go both ways on this. you could see some deregulation opening up access, and maybe making it more available, but the lack of regulation could create that moment where people get ripped off masse and that would decrease the confidence in it. looking at this data, it's a confidence issue, you have to get people feel like, if i took my salary in it, if i were to pay in it, it would hold value.

i don't know about you, sara, but when you look at something that went up the way it went up, that operates less like a currency, and more like an asset, and therefore it doesn't have the currency feel to it. >> maybe it's regulatory clarity in the middle there between deregulation and regulation. >> good thought. >> thanks, steve liesman. unitedhealthcare ceo out with a new op-ed saying americs al ce sta'hetharsyem is flawed and needs to be fixed. we're going to give you the highlights and talk about it next. r policy - even a term policy - for an immediate cash payment. call coventry direct to learn more. we thought we had planned carefully for our retirement. but we quickly realized we needed a way to supplement our income. our friend sold their policy to help pay their medical bills, and that got me thinking. maybe selling our policy could help with our retirement. i'm skeptical, so i did some research and called coventry direct. they explained life insurance is a valuable asset that can be sold. we learned we could sell all of our policy, or keep part of it with no future

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welcome back, i'm silvana henao with your cnbc news update. secretary of state, antony blinken said this morning in the middle east there are encouraging signs that a gaza hostage deal and cease fire is possible. he emphasized today the role turkey can play in using its influence to get hamas to agree to a deal. blinken made an unannounced visit to iraq today to meet with the prime minister for talks on the future of neighboring syria following the toppling of the

assad regime. french president emmanuel macron named centrist ally as the country's new prime minister today. it comes after a no confidence vote toppled the former prime minister's government last week. he will be tasked with addressing france's ailing economy and rafting a cost cutting budget that will gain the approval of lawmakers. and a german newspaper reports unidentified drones have been spotted flying over the u.s. air base at ramstein in germany, among other sensitive locations. the report says the sightings on december 3rd and 4th were confirmed in a confidential security report. the german defense ministry declined to comment. i'll send it back to you. >> sketchy. thank you very much. unitedhealth group ceo writing a piece in the "new york times" about what he calls the flawed health care system in america. bertha coombs here with more.

i guess he felt the need to respond after the debate after the murder of one-his key executives. >> andrew witty started off saying that brian thompson 's colleagues are mourning his killing and bearing a grief and sadness they will carry for the rest of their lives. the unitedhealth group ceo says the company is struggling to make sense of the vitriol and threats made at people in the company in the wake of the murder. quote, no employees, be they the people who answer customer calls or nurses who visit patients in their homes should have to fear for their and their loved ones safety. he also acknowledges the frustration that many of us feel with the u.s. health system and says it needs to be fixed, echoing comment that he made during his opening remarks at the ill fate the investor day back on december 4th. >> in no way you would design something as complicated and as contradictory, and as difficult

to navigate as the system we all find ourselves in today. because nobody designed it. it simply evolved and we're now in a situation where we're all trying to strive to deliver better patient experience. higher quality outcomes. lower cost outcomes, greater transparency, greater predictability, from within a thicket of a system of regulation and complexity, which none of us designed. >> the investigators say accused gunman, luigi mangione railed against health insurance denials. a united health spokesperson confirmed to cnbc that they have no record of mangione having been insured by united health care. he's scheduled to be back in court on charges in pennsylvania on december 30th. >> bertha, there's a ton of reaction to the op-ed, not all of it pretty to look at. but it's a little bit short on

policy prescriptions and ideas, right? do we expect that to come later? >> you know, someone the other day was saying this could be a bit like a real sort of water shed moment in that people are really going to talk about the policy and ideas. we have certainly been seeing a lot of that in washington over the last couple of years. this level of discussion could well mean that we see more policy that is more specific to try to breakthrough some of that complexity and create greater transparency and really deal with these frustrations that we all feel when we are often trying to put in a claim. >> i just have a hard time having this discussion after the murder of an executive. i feel like it's a moral perversion to use that as a justification for why we should be talking about health care reform. >> it is. and it's not anything that anyone is very comfortable with. but the reality is that americans do feel frustrations

in dealing with the health care system. and it's not just patients, you know, doctors feel frustration in trying to put in claims for their patients and insurers say they are aware of that and feel frustration as well. this could perhaps be the one silver lining that comes from this terrible, horrible, very sad moment. >> that's true. we talk about innovation and the new age of possibility we're in from a technology standpoint. still waiting to see how it could benefit sectors like this one, and americans lives. bertha, thank you. when we come back, we'll get a closer look at how china will approach the second trump presidency, and how they plan to retaliate against some of these u.s. tariffs, perhaps. we're back in a moment. today, we're nearly 30,000 u.s. employees strong. in more than 60 u.s. based facilities, across 16 states,

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e we're having a lot of talks with china. we have a good relationship with china. i have a surprising relationship. now, when the covid came in, i cut it off.

that was a step too far. that was, as they say, a bridge too far. we have been talking and discussing with president xi some things, and others, other world leaders, and i think we're going to do very well all around. >> that was president-elect trump with our jim cramer yesterday right here on the floor, that historic day at the new york stock exchange talking about the u.s. relationship with china, as investors continue to monitor the chances of a trade war, and just how this is going to unfold. cnbc's eunice yoon is here at post nine. what a treat, great to see you. are we going to see a better relationship between trump and xi than we saw biden, xi, the invitation to the inauguration? >> i think a lot of people are asking that question and really don't know. when you look at who trump has nominated, he has nominated hard liners, such as representative mike waltz as his national security adviser, but then he has elon musk who has a sizable

business in china. he has nominated david perdue, who's seen as softer on china. in the meantime, secretary of state, marco rubio, the nominee is somebody who has been sanctioned by china. so it's all a big mixed bag. >> and peter navarro is still there. he's pretty tough. >> right. i think the expectation is the trump administration sees the unpredictability as an advantage. it's unclear as to whether or not it could lead to miscalculation. >> now, there's reports sort of assembling the kinds of tools they could use to fire back on nvidia and drones and minerals the other day. the question will be how much impact that has. >> right. i think that china has been over the past several years, though they say that they don't like decoupling, they are decoupling themselves. and they have been diversifying with their agricultural purchases to make sure they're not reliant on the u.s. they have been putting in place a series of regulations, like

the anti-sanctions law, as well as antiespionage law to make it easier to fight back against the u.s. they have been putting in place certain regulations to make it easier for them to fight back against critical minerals as you had, to your point, for these different minerals that are important for u.s. industry, and they're doing all of that, and also signaling that they're much more willing to go after u.s. companies. >> what's also different this time is that china's economy has been weak and they've had problems with foreign direct investment, the capital markets there, as opposed to the u.s., which has been the envy of the world, in terms of our economy and markets and the capital flowing in. i wonder if that changes the leverage here. >> it changes the leverage on some level. we don't know how much. what we have seen in the past administration, the first term, is that china is much more focused on tech dominance and national security as a priority. so xi jinping's administration compared to past chinese

leadership has been not as interested in growth or at least signaling that growth is important. they want to, like, mitigate the risks, but they want to make sure that the way to make china great again is to really focus on making sure that china is the one that dominates technology in the world, and is able to improve its national security. >> given that weakness and that vulnerability, does that make a showdown with taiwan more likely or less likely? >> it's difficult to say. i think that because the economic situation is so vulnerable, it would be just another thing to make it that much more vulnerable to the sways of what's going on. but at the same time, it's xi jinping, a black box, we have no idea what's in his mind, other than him and his leadership, so could he be in a situation where he sees the signaling from president trump, get answer invination from president trump, why there could be some negotiation going on, maybe he would decide that would be something he would be able to go for. >> did the threat from president-elect trump of 100%

tariffs on countries that try to diversify away from the u.s. dollar, did that get any attention? >> all the tariff commentary has gotten attention in china. they don't know. again there's been a lot of discussion, 25%, 10%, what's actually going to happen. mostly people are in a wait-and-see mode to see what actually happens. >> what do people think of trump in china? >> there are a lot of people who like him, that see him as an entertainer. they look at him in that lens. they think he's somebody xi jinping can work with. >> good to have you on set. >> it's great to be here. >> talk in person about some of these long standing issues. we'll see you around in the next few days, i hope. yun is yoon the ai trains you need to watch for '25 when we're back in a couple of minutes. and stabil.

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it's your last chance to get iphone 16 pro with apple intelligence. get four on us. only on verizon. ai continues to drive innovation in tech with a handful of new ai updates coming this week from the likes of apple and google, as you know. still plenty of uncertainty around regulation and labor. our next guest predicts that u.s. work forces will double in 2025 with ai-powered employees left unchecked by federal regulation. joining us this morning is matt wood, pwc commercial tech and innovation officer, formerly the vp of ai from amazon web services. by the double figure you're including this agentic work force which we're just now trying to get our arms around, right? >> yeah, that's right. thanks for having me, carl. what's really interesting about the innovation we're seeing with artificial intelligence, particularly over the next 12 months is that we're going to start moving from a world where

we have to prompt and ask questions and get answers from our ai assistants to ai systems that are able to complete tasks on our behalf and respond to objectives, not just questions. and so with an agentic system, you'll be able to ask an assistant for help and the assistant will go ahead and create a to do list based on your objective, and that could be an objective something like, hey, go book me a flight. i've got $100, turn it into a thousand dollars. and the agentic system will be able to take a look at that problem, understand it, and weave in all the tools it needs to be able to create a to do list, and systemically work through the to do list to complete the objective. that really opens up what artificial intelligence systems are capable of, and we're right on the cusp, the early days of seeing these agentic systems flourish. some of the early ones are very very promising, but it's early. >> you see that hitting critical mass among every day american life sometime in the next 12

months? >> yeah, for sure. you can kind of think of agents as equivalent to being the apps on your phone. so when you've got a phone, and you ad a new app to your phone, the phone itself gets more capable, but all of the other apps on the phone also get more capable because they can exchange information and use the capabilities of each other. so as you start to add more apps, it's not just additive in terms of the overall capability, it's a multiplier because all of these apps can use each other to solve harder problems. in an agentic world, if you have an ai system, you add a single agent, that's very useful. every single agent you add on top of that multiplies and compounds the capability of the system, and makes them not just a little bit more useful, it makes them a lot more useful. >> the app analog helps people understand it a little bit better. you mentioned travel. we talk a lot about financial services. is there a dream sector where you think the use cases hit the

hardest? >> yeah, what's really interesting about the actual way that ai is being used today, it's a little counter intuitive, but where i see the most usage and the organizations that are moving the fastest, it's actually in regulated workloads, in financial services, it's in health care, it's in insurance, life sciences, manufacturing, those sorts of use cases where the regulatory environment, which has made felt like a bit of a head wind to those organizations over the past 20 years, has driven the right set of investments when it comes to the underlying principles necessary to be successful with generative ai. and that's almost all around data, so data, data quality, data governance, who has access to the data, what it can be used for. all of those things are well understood by those organizations driven in part by the regulatory environment they have to perate in. to make use of artificial intelligence is small incremental investment on top of

that existing investment, and that allows those organizations to move, you know, much more quickly i expect the same to be true for agentic systems going forward. >> we got to talk, again, in the coming months about whether or not that's destructive to employment. certainly it dove tails with the efforts to streamline regulation at the government level. matt, appreciate it very much. matt wood, pwc, thanks. >> thanks. president-elect trump telling our jim cramer yesterday that he's met with mark zuckerberg and jeff bezos is coming next week, amazon, meta, open ai sam altman's are donating $1 million each to his fund. tracking all the political donations, especially from big tech, megan. >> that's right. we took a look at political donations from trump's appointees and found ten people who donated more than a million dollars to republican candidates and republican super pacs this election cycle alone. this is according to a cnbc

analysis of fec filings. elon musk led the way, but even setting him aside as an outlier, five of truck's pick for the cabinet and four future ambassadors as you can see here, fall in this category. linda mcmahon, trump's pick for education secretary spent $24 million, howard lutnick at the commerce department spent $24 million, and scott bessent spent almost $3 million this cycle alone, and 359 to republican candidates and groups in the last years, a staggering total in the big money post citizens united era of politics that we're in. for comparison, we did not find any political appointees from biden or obama administrations that donated more than a million in a single cycle and in trump's first term, that's two, linda mcmahon, and betsy devos, the education secretary. while it's true that wealthy donors get the plum ambassador roles, there is a distinction

even there. trump's pick for uk ambassador, warren stephens, he donated more than $25 million this cycle while biden's uk ambassador was also one of his top donors, but she spent just about $645,000 for democrats in that cycle. so really a dramatic increase here, guys, even compared to trump's own first term. >> what do people think it means? i mean, does it raise conflict of interest? does it matter? is it just that trump has a lot of close contacts with people that he trusts that are very wealthy and very successful business people? >> right. it's a reflection of how much money is his cabinet, how many high net individuals. the donations shouldn't raise a conflict of interest. by themselves, this is just sort of an escalation of a pattern we have long seen, a reflection, a very unusual one of just the multiplication of those donations that we're seeing and how much money drenches all of these campaigns. the conflicts of interest would come just by nature of the

business dealings and the extensive investments that all of these people have and how they're going to divest. many many questions there. so the donations themselves more a reflection just billionaires are going to be in his cabinet and how much more now is in elections. guys. >> one thing for sure, it's going to be complicated and heavy duty paperwork for the senate confirmations that they have to submit everything, right? >> yeah. you would imagine. >> appearances, money, ties. >> megan, thanks, megan cassella, watching some of the money today. we have lost a little ground after a nasdaq all time high, now in the red across the board. "money movers" starts after this. it's odd how in an instant things can transform. slipping out of balance into freefall. (the stock market is now down 23%).

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good friday morning. welcome to "money movers." i'm carl quintanilla with sara eisen on the floor of the new york stock exchange. dan niles, the top performing mag seven name in 2025. and president-elect trump shrinking or deregulating bankers. that this hour. >> and charting the rally in the s&p 500 and si