at treasuries. we should be looking at this later next week because we have the ppi and cpi and i think the jobs numbers are important. with hurricanes and everything else it is muddled and it could be hot so make sure you join us because this is next. good monday morning. kramers in san francisco with j.p. morgan healthcare conference getting underway today and the futures are week -- weak. mike you can see the numbers and it is an important week

with bank earnings and cabinet nominee hearings and cpi and a roadmap begins and they are calling out the misguided a.i. rules and lulu and abercrombie raising guidance plus moderna shares tumbling in the premarket with the pharmaceutical company focusing on vaccines lowering its 2025 forecast by roughly $1 billion as it continues to cut costs. the shift into the trump era is something else we talk about. mark zuckerberg sounds off on apple cup social media, censorship and the need for more corporate masculine energy. >> let's go to the j.p. morgan healthcare conference. i want you to raise the curtain on the week but talk about this premarket price action which you called hideous this morning. >> we had this incredible speculative wave and you talked about this stocks going down and you called it nuclear and here they have been up a lot in

those are all coming in. and healthcare really hasn't had much of a move so the interest rates are going higher and i expect 5% to hit on the 10 year but the tone is hideous and i think the tone is being set by the biden administration doing a last-minute 200 page ruling about who can get a.i. and who can't. i have to tell you, david, i think that the mark zuckerberg interview with joe rogan was seminal and it basically said apple you're done and nothing since steve jobs in a defensive interview and one of the most offensive i have seen a long time. >> he is very outspoken these days and i don't know what is going on there so many different things to take from that interview, which we will discuss later as well. the bond market here i am curious to get your thoughts.

as the yields adjust to certainly the growing likelihood we don't get as many rate cuts and certainly as many as they expected they would in 2025 and not that long ago. >> yes. i think that whole concept of the rate cuts as a post to a few has to be off the table because it does look like we had some very serious misjudgment by the fed and we have to talk about the fires right at the top and not about -- enough talk about this. what could happen in terms of public health and what could happen in terms of the inability to breathe but more importantly as you know the loss of life and the distractions so immense it is starting to impact the economy so we yet don't even know what could be the results. >> the situation is getting tougher with the death toll up

to 24. it looks like the wind will kick up midweek and makes the fighting more challenging. there was discussion over the weekend about community banking and their involvement and underwriting home insurance and their out right commercial real estate exposure and they did inform insurers by about a full percent. >> i have to tell you that the insurance regime out here in california is so strict that you have to wonder why bother to write anything. there is a sense to me that it will take longer to come back than people realize. the rebuild will be immense and it's not done. if you talk about will happen with the economy, how important california is but this is one of those things we can't really factor in that we must in terms of figuring out what it means for the whole united states

economy. >> without a doubt and potential higher rates and conversations taking place about whether it is appropriate to rebuild in high risk areas. as they do often they pass propositions in many years ago they had rates perhaps lower than they should be which would have dissuaded certain homeowners from building in certain areas. >> i think we will look at this and say there are reasons why this happened with the reservoir not working and issues of what the firefighters have and if we will talk about the economy or talk about the rate cuts or rate increases we may have to put this on pause maybe when the smoke clears, it means things could be slower but to go back to what we talked about. one of the reasons we have this

is we got way too speculative. you wake up this morning and there is a 200 page document that we can't seem to get that says there should be a restriction with a.i. chips for all but 18 countries. you have the premier ceo of a.i. going around the world talking about sovereign a.i. and then a document and again a proposal that says, there are only 18 countries that should be able to get this and that will send the complex down. it is absurd in the sense that no one spoke about it and they didn't give it to any ceo to comment on and it is the last gasp of an administration that threw a grenade into the whole complex. >> but very much unclear is a lot of it won't be reversed under a new administration. >> i suspect all of it will be. >> it is tough on china and a lot of it is designed around

our defense, so to speak in a larger context given the threats that a.i. poses in the wrong hands and the fact we want to be ahead in our development for many of our adversaries. that is the basics of why they have done what they have done, isn't it? >> yes. let's say there are 120 countries and it means there are a lot of countries besides china that get excluded and you see this down a lot and this has been very weak. we have some numbers that say apple will be weaker and you overlay the fact that mark zuckerberg and i have to hand it to him is he basically made the justice department's case against apple and it's almost as if he sat down with the outgoing administration and said look what i tell you apple is doing because everything he is complaining about and the justice department is complaining about, it was one of those damning interviews and i couldn't tell if he was having fun are basically saying

that apple is the axis of evil and others to play along because they are getting scared of it and he isn't scared and he is taught tae kwon do and let's get them. and wide ranging so it's a lovefest. >> it is interesting that it is rogan's continued ability to get people to open up in surprising ways but the discussion was how widely an operator mark zuckerberg is siding with one part of the aisle and he is making this very over shift to the right wing. >> let's call him savvy. and there were these moments and he lives on the ranch and he shoots pigs and he is pro- gun but it what point does joe rogan say maybe you do martial arts to kill people in the next line was the equivalent of is good to kill people?

maybe we should listen to them because it did have an element of extremism that i am not used to anyone having. >> this is a bit from that. >> you use this to put in place a lot of rules that i think feel arbitrary but haven't really invented anything great for a while and it's like steve jobs invented the iphone and now they are sitting on it 20 years later. >> yes. >> i don't know what to say. look. i don't want to make it to central an issue and it was a libertarian lovefest but one thing is certain that is if you want to say the most horrible things about apple you say nothing has been done since steve jobs and number two that they locked out everything and number three that they make every single innovation and the

thing i liked is they say they can earn twice as much if apple didn't do it it was doing but i have to tell you that this is a combination luddite anti-tim cook and kind of a smiling hatred against the company that a lot of us love. >> may be still smarting over the changes in ios that caused a tumble over a period of time although that has been dealt with as they have moved into the regenerative a.i. world and bringing that benefits potentially at least in terms of what they can offer and advertising. it's interesting to see them move there but it's always frustrating for us and we would love to have a sit down with mark zuckerberg but they won't do that and they will use those platforms whether it be jeff bezos and/or somebody else. >> right.

he said -- the idea that he is being made to look bad by regular television is a very old feud and joe rogan is sophisticated enough to be able to put enough mine out for him to go for it and i don't know whether mark realizes how damning it sounded but i think if only just because he made me feel like he himself really despises the company that we love and i wish there had been some pushback in all there was was this. >> let's get back to where you are with healthcare because you will have a busy file -- days ahead of you and we have the biggest biotech a deal we have seen in 22 months. they are obviously making a big splash with $14.6 billion to acquire this company that is been around treating this but what we are talking about is major depressive disorder,

bipolar disorder, manic episodes and also schizophrenia. it is an important area where we did see some a positions -- acquisitions made by previously bristol-myers and others also treating similar things and if memory serves johnson & johnson was involved in the bid for other things but this time my understanding is they were there and made an approach six weeks or two months ago let's call it and there was no process and you know that if you are a company like this who your potential buyers are and j&j came and were serious and came quickly and got a deal done at a significant premium and there was some chatter around moving it up and there were some patent settlements that moved out to 2038 and 2040

which is beneficial for the key drug which will have a long runway. they already have a franchise so this adds to it but a large deal particularly given last year and you will hear a lot about this at the conference and there were no deals above 5 billion in biotech so we started this year off with a large transaction at least at this point and certainly for j&j. >> you and i both know it's known as a place where deals come together but this was incredibly interesting deal because bristol-myers apparently has this approved and exactly for some of these indications that intracellular is supposed to be good for an this has been been kicked around since 2019 and not have the favor of psychiatrists so far but i want to find out how good this drug is. the other thing i would say is that finally we are getting

deals and this is the deal that could pass muster under the current rule but i think it's a sense that j&j has had such a hard time with so many things going wrong and i will have bristol-myers on later today but j&j said everywhere they turn things are not working their way including a boston scientific competitor that was pulled from the market because of some neurological issues involving four different people last week but i will stay in touch with this area but maybe this can change this week and i want to hear what they say because bristol-myers has the one that everybody is buzzing about not what intracellular has. >> j&j likes it and the phase 3 studies and that treatment for antidepressants saying it demonstrates clinical meaningful improvement in

depressive symptoms rated by physician rated and patient reported outcomes but a deal that we want to spend a bit of time on given its size and importance and it has been around but it could be taken out. >> i do want to know and i know when they approve this drug for bristol-myers it was a big deal because it was the first and now we discover that hold it that intra-cellular had something? if they did why did they say is the first in 30 years of his indications and we have to dig deeper and that is why i have them on today and i think we don't have j&j which isn't talking and amgen close enough to the fires located that they had to cancel. >> we will get to the guidance from moderna from retailers and a busy morning and when we come back speaking of the fires we

get more of these wildfire estimates as they continue to surge and get a live report and upgrades with caterpillar, rh and look at the premarket is the future this morning below the close and more squawk straight ahead.

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that's what i do. is that love island? more strong wind is forecast for los angeles is the wildfires rage. governor said the fires will be among the worst natural disasters in united states history. we are on the ground in pacific palisades. >> good morning. >> about 10 minutes here from first light and behind me is a 16 unit apartment building were a studio cost $1 million. the oceanview remains but that is about it. let's look at what it looked like before and here is a picture that illustrates one of

the biggest challenges right now for the area and demand for short-term house he with one insurer saying they preemptively signed leases on 100 homes anticipating a housing shortage for their clients and wells fargo out with an estimate of insured losses approaching $30 billion. economic losses could be as high as $150 billion. the disparity in part due to the massive problem of being underinsured with multiple experts in the industry saying that homeowners were not able to get adequate coverage through the state ensure of last resort and the payouts are capped at $3 million so that will begin to cover the rebuilding of some of these homes and the cost for private insurance was so high that many homeowners may have opted to take the risk if they didn't have a mortgage that required them to have insurance with prices for building materials up 37% with construction labor up 35% and you will add that to

the hazmat costs of cleaning up what is now toxic waste sites rebuilding a significant undertaking with longtime los angeles developer mark weinstein believes some owners will throw in the towel no matter how alluring the view is here in the pacific palisades. it is something we do plan to watch. >> i am curious we are more interested in the rebuilding effort or the longer-term effect of what some say over the weekend was the uninsurable or not mortgage a bowl and they will question what will be viable after the 30 year fixed? >> there have been some insurance experts and i am thinking of a broker who has been actively trying to work

with bankers that say should we really require 100% replacement cost insurance coverage? here is an indication of why they may want this to be the case but definitely not just here but in texas and florida, new york, new jersey. that is an onerous undertaking if you have to get that insurance where they are skyrocketing. i have been told that multiple insurance ceos have basically predicted that the steps the state takes next in terms of the insurance market will determine whether california becomes an insurance desert and it was already a place hard-to- find and very expensive and we will see what happens. >> after that piece in the l.a. times over the weekend looking at these policies that were canceled even before the fires began and we look forward to hearing from you. squawk on the street we'll be

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the opening bell is brought to by a leader in income alternatives and responsible investing. time for a cross country mad dash and we have lulu on the docket? >> there is a lot of things. they had already delivered a good last quarter and they were excelling but here 581 to 585 from 550 6564 and they had a fabulous holiday season but they had the most momentum of anybody in retail. >> you are right. it is what we expect to be scarce today mainly green on the screen but some of the

bigger names will be down. >> even retailers that raised guidance and this is a great example and let's get the opening bell. and they are celebrating martin luther king jr. and with the technology and let's see were reopened. one thing that will support the indices to some degree will be energy as we have oil at this high and sanctions drying attention again. >> it is surprising but the research is negative and i think people believe in remember that 2016 there was a tremendous halo from this situation that trump advocated. i think once again people are very skeptical that that won't happen and when you look at the

price of oil and natural gas, remember, the pause that president biden put on his worrying everybody because people don't know what will happen. i would say the best place to be is the pipelines and they are the winners the matter what we have to get natural gas from the permian to the gulf and it's incredible how the pipelines were put on pause as well and something to watch as people recognize that president elect trump will probably get rid of that ban first thing. >> when it comes to natural gas as well you come back to us seem we have been discussing which is mainly the growing power needs of the centers running large models and running everything in general in terms of the cloud as well. the fact that you won't be able to power them simply with renewables and nuclear as we have discussed so many times especially the small modular reactors years away. natural gas will be key with in

terms of powering so many of the generation that will be needed for an unprecedented surge of the need for power over the next 5 to 10 years. >> that is the right name to put up and good job in the control room. we did see the deal they did on friday and we talked to joe dominguez and in fact he talked about natural gas being part of the components for years in terms of powering what is going on not to mention we would say a little bit of doubt but did you hear money talked about small reactors? he said they are years away >> it does cost so much and i don't know how they will work but the company would probably build them here and they don't

really have a game plan to do anything before 2032 but i do think this is a crisis and there are very few companies that know how to build data centers quickly and they are getting killed because they had a series of estimate cuts and some very -ones that have to do with any of this construction so today is a really ugly day and the companies going down are almost all driven by negative research but the one thing i would point out that is positive is when you listen to chief justice roberts when he spoke last week on this tiktok ban, he was critical of the tiktok side but i want to go with the idea that google, you tell -- youtube, meta, are the winners and i think tiktok will

be stopped and you will be able to get the updated version and i think it's something rather amazing and don't inc. many people sought and it will happen sooner than expected. >> you think it should be stopped? >> i think that chief justice roberts, the questions he asked were on point and he said why should we let the people's republic of china control something and then have it be protected by the first amendment and i always felt this was a congress issue and nothing to do with the first amendment but protecting ourselves from the people's republic of china influencing younger people in particular about communism. it is a politicized issue but a lot of people who feel look out that chief justice roberts had it in for him and i was listening to what he said and he is a tough guy and he really showed this on friday. >> it is very interesting.

people will discuss this. president elect trump and he is in for much longer and elected but he doesn't want tiktok to be ban. -- banned. things could change? >> absolutely. it seems legislative. i think what really matters is tiktok is huge. it is so big that nobody can take it over so you really have this possibility at what point do people feel that the united states could do this and maybe it's $300 billion and those stocks are up and shockingly they are the managed care stocks in the medicare provisions were much better than expected on friday. and on tiktok and bytedance obviously is the owner a private company and one of the larger private companies in the world. when you take out the cash.

and we talked to some of the investors. it was something like five times the earnings and they are not as concerned as otherwise he would believe given the strength of the business in china given the success that bytedance has with the potential of tiktok being banned in the united states but its value at this point is incredibly low given it's amazing earnings power not to mention the enormous amounts of cash it has as well. >> that is true about allie bob and people decided that you can't trust china and we will go back to that reference with that must listen to joe rogan interview that was three hours. there is not a lot of hubris about the actual product.

and its difficult to connect to the apple issue or system and i love it. and the new ones will let you speak. and it was such a tour de force and i loved it. i didn't like what was said about apple and i think that was unfair.. >> the criticism this morning was that blaming apple for not innovating which you think about how much they stole from snapchat and x and his new effort to use community notes, where is the innovation and that? >> it was such an unfair interview and they are on android and it doesn't really

indicate with apple very well. have some fun. i am sticking to apple as a 300 billion customers and 1 billion users although about how many people are in the meta-universe but it was hurtful and i think when you say stuff like nothing is been done since steve jobs died it is in ill-advised strategy. >> the other thing is it was a notion that the company although two thirds male isn't masculine enough. >> it is one thing to say that we want to be welcoming and make a good environment for everyone but another to basically say that masculinity is bad and i think we have swung culturally to that part of this spectrum where it's like masculinity is toxic and we have to get rid of it completely. no. both of these things are good

and you want feminine and masculine energy. i think you will have parts of society that have more of one or the other and i think it is good but i do think the corporate culture sort of had as long toward being this somewhat more neutered thing. >> so many questions for a company that once employed sheryl sandberg. and the author of lean in. >> mark zuckerberg is amazing and i think in a way and i don't know what gym is doing but in a way -- >> i don't want to comment on it. >> it's capable of shape shifting to the extent it is important for his company and therefore important from shareholders and he is good at it. >> he is good but i know you ride the subway quite a bit and this real i've only touched it

a few times. that was one of the many incendiary comments and i thought it was the one over the top, the masculine and feminine stuff and i have gone everywhere in the world you are not supposed to go to. >> it was surprising that it went into that territory. but mr. zuckerberg raised the message she wanted to get out with significant changes in terms of fact checking on a platform and so many other things and he has been successful in that and using a key platform we know is very well listened to by supporters of the president or president- elect i should say but he is effective. >> what about it? >> that concept about let's say

i will come out against that and it is of what i believe and i don't know where you are. >> i am against it. i will flat out say that. >> i didn't know whether you are neutral and i thought you might because i know joe rogan is out there. maybe we should put him in the context of huber libertarian. i have to admit that he is fun and then he said as long as you kill those it is fine. i felt at the end of that interview which i did listen to twice i felt i was the buccaneers, green bay and i can't even tell you how many different teams i felt like. >> i was looking for a space to ask you how you feel about your eagles manhandling denver and i guess this is it.

>> there was no green bay player left on the field after what we did today. >> i have denver in my head. >> as a bills fan as you know i was excited by the. it will be quite a matchup of course allen versus jackson coming up next weekend with the two mvp candidates. go bills. >> true. >> he is proving such a gentleman. >> he is amazing. >> i did bring it up. i brought it up. >> we mentioned the mark zuckerberg interview and the other when they are talking about is jamie diamond on cbs talking about a host of issues regarding optimism around the economy and the role he believes that terrorists -- tariffs they are away to be

used. >> it is unfair competition, security editions and any tool it could do damage. >> you think it is a legitimate negotiating tool? >> absolutely. >> we will see to what degree that he translates that view directly to the administration. >> and what we end up up -- with in terms of that and i think in the journal there was an interview with the incoming head of the cea and the council of economic advisers in favor of this but speaking of this puts get to a report because it is involving the steel industry, a company that we have talked a lot about which is u.s. steel and they have seen over the weekend an important move the termination process and remember president biden terminated the deal by nippon to acquire u.s. steel with 30 days to do so and now

it has been pushed out the same day the current merger expired. they have time to pursue their case against cleveland cliffs and the like but we have other news and something that would've come to the floor if in fact that timeline had been maintained. that is that the cleveland cliffs which was the cover bid so long ago when they first sold and they agreed to that in 2023 to sell it to nippon is back and back as you can see in partnership with nucor and it's a potential bid and no forcing function here for them to come forward unless president trump were to do something in terms of immediately having the termination again for changing things and unclear what it means. but nonetheless sources close to the situation indicate that

cleveland-cliffs has partnered with nucor with a bid for the company in the high 30s all- cash as opposed to the previous deal and reflective of the change overall in the industry which hasn't been positive and remember the deal is 55 so that puts it in perspective but as part of this cleveland-cliffs would buy it and turn around and sell this key unit in arkansas and that is what they wanted and previously they had taken a look at it and they made a bid alone and there were always antitrust concerns and this would ameliorate those concerns and there would be something that went along with it and they would keep it in pittsburgh and they would brand the steel product, iron or

would be under the cleveland- cliffs brand name as well. none of this may come to the floor, but it is something certainly investors want to keep in mind as we see how this process plays out over what could be many months in terms of the continued attempts by nippon to challenge the ruling and challenge cleveland-cliffs and what they say was interference in their deal to begin with but they are partnered again and sources say partnered with nucor for that bid whether it comes to the floor or not and again far below of course the 55 and i should mention as well with the nominating deadline coming up you could see some investors a getting into the fray to keep u.s. steel honest but if you heard them i don't think there is a need to worry about it when it comes to their desire to try to see with the very big number. and it just keeps going on and

on with so many things in the upcoming trump administration whether it be the tiktok ban or this approach and what it means for the u.s. steel deal or whether it be tariffs overall and what it means for this industry and we will get some information about a week or so when they come into office. >> i think we have to think twice about whether trump would kill it and when trump was running. i will say cleveland-cliffs is close to president elect trump. and i think there is a possibility that something could happen here. i do believe that when you speak to lorenzo, i tell you, he is so close to trump that i really think that lorenzo has it done and i think it's an

interesting deal. >> that is kind of what you are dealing with that if he is close enough and if you move back the termination date with the biden's already saying the deal could happen then you have this bid according to my sources in the high 30s all- cash and with the immediate big river to nucor. >> i think that cleveland- cliffs gets it from the beginning and i have been saying that and they will get it. >> >> lorenzo is a winner. >> as we go to break some important metrics to watch. and it is a 14 month high and we get this tomorrow and it's hanging onto a nice gain and a lot of that adding 142 points as this advantage advanced notices role in. be right back.

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let's look at some retailers with a big consumer conference beginning this week. macy's trimmed the guide and abercrombie raised the guide with stocks down 15%. hershey pointing out that michelle will require mid-26 and also boot barn 243 beats 205 with comps up mo 9alst and stock trading is coming up next. freeze in your tracks? or, let curiosity light the way. at t. rowe price, we ask smart questions about opportunities like advances in healthcare and how these innovations will create a healthier world tomorrow.

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are high. >> this is for 50 more or less the all-time high and you can see it there and you think really here $33 and still you don't want to own it? >> we have to get to these numbers but they never made this personalize vaccines they said they would a few years ago when i met them out here at the health conference and not a good day for many stop or moderna. >> actually the fall of 21 with 497. >> it has been a mess. i don't know what to say. it's talking about whether we are too masculine or feminine >> just throw in that third rail. >> all of these years it's just been me.

>> it was better than -- >> i have bristol-myers on tonight. and boston scientific is one of the best stories out there that they are doing so many things and going into single-digit growth and i really like them and i have a lot of people out here and i have to ask you buddy about the fires because i don't think they realize their are respiratory issues and they are not talking about it. but they are genuine. >> you will be the eyes and ears it probably the most important conference of the year some say and we will see you tonight at 6:00 p.m. eastern time. >> i got up at 1:30 a.m. it's really the way to go. >> there is no sleep tonight. w will see you tonight. >>e have the russell below today the first time since december one. stay with us.

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when other vacation rentals make you share welcome to another hour of "squawk on the street." i'm sara eisen with carl quintanilla and david faber, live, as always, from the new york stock exchange. stocks are under pressure at the open. we've got the dow higher thanks to unh, adding 104 points on its own. caterpillar, home depot, goldman sachs. the s&p 500 down half a percent because technology is lower. it's such a big market weight, it's why the nasdaq is down 1.24% here in the early going. tech, communication, services all weaker. some of the usual suspects, the big winners last year, super micro down 6.5%, palintir, nvidia all weaker today. there is strength in the cyclical groups, energy is up strongly on the price of oil. materials, health care, industrials, financials and real estate are higher. take a look at treasuries. this has been one of the

headwinds for stocks lately. we'll talk about global wields in a moment. the ten-year is elevated again, $477. the two-year is lower. the 30-year just below 5%. i mentioned energy stocks outperforming, up almost 2%. oil rallies to its highest level since july on a fresh wave of u.s. sanctions on russia's energy industry. we are 30 minutes into the trading session. nvidia, i mentioned, shares falling after the biden administration announced new restrictions on ai chips. those new regulations will cap the number of ai chips that can be exported to most countries, while maintaining a block on exports to china, russia, iran and north korea. nvidia calling the move misguided. apple shares are under pressure on a new reporting iphone sales fell 5% in the final quarter of 2024, and its global market share slipped. details later this hour. j&j buying intracellular

therapies for more than $14 billion, boosting its presence in the market for neurological disorder treatments. both stocks, interestingly, are higher. keeping a close eye on the wildfires in los angeles this morning. the death toll now has risen to 24 over the weekend. forecasters are again warning of dangerous weather with the return of these strong winds about midweek. california governor gavin newsom says the state's wildfires could be the costliest disaster in u.s. history. we will get a live report in just a moment. we're also watching the economic data this week in the markets because we do have a few biggies. we'll get cpi and ppi, wholesale price inflation, retail sales. cpi is important because we're back on inflation watch again with the economy doing better than everybody thought and the inflation numbers a little bit stickier on the way back down. obviously, some big conferences, be on alert for company earnings, pre announcements this week. we'll be at the national retail

federation tomorrow, jim is at the jpmorgan health care conference, and big earnings, especially the banks. i will be listening for commentary from the bank ceos on what they're seeing in the economy, what they're seeing in inflation. one of the reasons i have been on this stubborn kick about inflation still being present and the economy being better than expected has been because of the bank ceos, and when i was with them in october for that conference, they didn't expect two more rate cuts for the rest of the year. we got two more rate cuts the rest of the year. but i think that was a surprise to a lot of people who look at the economy. the global yield story is front and center, and it is being anchored by the u.s. bond market, no question. this is the $28 trillion market, the biggest and deepest. yields are up around the world. uk yields elevated, they've got some deficit concerns. german yields elevated. even japan yields are elevated because of inflation concerns. it does come back to the u.s. last week we got a chance to

speak with treasury secretary janet yellen, one of the foremost economists. she led the fed as well. i asked her what she thought was the message from the rising bond yields. listen. >> surprises to the upside on indicators of the performance of the economy that suggest that the path of interest rates going forward may be a little bit higher than people expected. i think there's also uncertainty that has increased about where the economy is going, what future policy will be, and the so-called term premium in interest rates over the last number of months looks like it's gone up as well. although from abnormally low levels. >> that term premium that everyone is talking about, the extra risk that longtime investors are demanding, it gets to the concerns about debt and deficits. here is your latest look from the new york fed, and it is

elevated, highest since 2015. >> yeah, since 2015. i was wondering how long. because as she said, it's off very low levels. >> abnormally low levels. and, look, 2015, so we're not at extreme levels. but i do think there's this combo of monetary policy and fiscal policy concerns, and that's how you deconstruct the move in bonds. you've got a pro-growth administration coming in, where some of the worst case scenarios are getting priced in about tariffs or immigration being inflationary. >> deportation. >> deportation, immigration policies. and until we get some sort of clarity, and as long as the data comes in good, it feels like yields are just on this march higher, toward 5%. we had 5% once in 2023, carl, but briefly. and before that it was a pre-financial crisis phenomenon. it's been a while. >> yeah, we're definitely going to be -- tomorrow is an

important day for the markets overall, global markets. s&p and dow are coming off the worst days since december 18th. our next guest says be cautious due to, quote, unusual seasonality. head of barclay's strategies joins us this morning. good to have you back. as we were saying, we're all bracing for some numbers that we hope are not warm. what kind of risk do you see embedded in stocks right now? >> i think it is first primarily the valuation, because i would call them rich in aggregate, but they are quite full. and so they are very sensitive to the moving rates. so the extent that rates are below 4.5%, i think we're in a good zone where inflation is contained and earnings are going to be strong. but i think once you cross the

4.5% threshold, the negative correlation of equities to rate movements, and the issue you were just discussing and the move higher up in rates and concerns about inflation being sticky or, in fact, even inching higher. so i think that is the principle. on the other hand, the good news on earnings, things look quite decent and, actually, they should pick up compared to last year, though the components of that varies quite a lot. >> we mentioned the phrase unusual seasonality, attributing it to you. what's unusual about it? >> so typically what happens is you have the fourth quarter which ends up being quite strong, compared to the first three quarters. last year was the opposite. you had extremely strong first three quarters, we never saw the rally, really, in q4. and q4 compared to history was kind of on the weaker end. typically what this suggests, that q1 is kind of flat to down. we'll have to see how that plays

out. but seasonality right now is not in the market's favor. >> finally, come inauguration and day one of the new administration, there's reports of maybe dozens of executive orders and policies being unleashed, the market is going to have to absorb all of that in a hurry. how will that make -- at least the month of january challenging? >> very challenging, right? because with the new administration they're two opposing forces. on one hand you have the pro-growth policies which the market has increasingly focused on thus far, lower taxes, for example, and less regulation or deregulation. on the other hand, what has been underpriced is the impact of immigration, especially, for example, in the markets, and tariffs. so i think there's a big debate, obviously there are a minority

of economists who actually think that that is, for example, going to be positive. but a majority of them are concerned about the inflationary impact and negative impact of growth. and clearly, the inflation impact will show up in premium like it is now. >> thank you. look forward to talking again soon. >> thank you. as we head to break, here is our roadmap for the rest of the hour. mark zuckerberg slamming apple on its lack of innovation and random rules. we'll talk about it. plus, the big banks are getting ready to kick off earnings season. yes, it's that time already. we'll get you set up. >> and tiktok warning of broader consequences does scotus does allow a ban on the social media app. a big show ahead as "squawk on the street" continues after this break.

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let's get to the wildfires in los angeles. for that, we'll go over to nbc news morgan chesky with the latest from altadena, california. morgan? >> reporter: yeah, david, good morning. and we are seeing some actual glimpse of hope here in this firefight. we've just heard in the last hour officials say the eaton fire is now more than 30% contained. that is significant, and that's really as a result of some of the winds dying down over the weekend. we know palisades fire still sits around 12% to 14% contained, a signature firefight

still going on there. this is an ever-evolving firefight. and despite the progress here, the main concern right now is that we do have winds expected to pick back up today, tomorrow, even potentially into wednesday, and that's why officials are stressing that we are not out of the woods just yet. this devastation behind me clear proof of what this fire is capable of. the cause still remains under investigation. we do know that the eaton fire and the palisades fire have had investigative crews go back, try to locate the origin of the flames, also using surveillance video, ring cameras in some instances to try to paint a picture of what exactly happened on that fateful tuesday afternoon when the flames took off. meanwhile, we still have more than 100,000 people in the greater los angeles area that have been displaced as a result of these fires. relief centers are popping up all over the city. we visited a location that the red cross had opened up in a rec center. they are at capacity, housing

people from the palisades fire. david, you hear one story from one person and you realize that they are not the exception to the rule. they have lost everything, in some cases, but the clothes on their back, and they're having to rebuild their life from scratch. fortunately, we are seeing more relief, more donations pour into this area, which is an encouraging sight, despite the devastation that remains, david. >> yeah. morgan, we know that firefights successfully beat back, i think, the palisades fire from encroaching on a key residential area such as brentwood. is that still a risk with the winds starting to pick up again, or does the level of containment mean that at least there's a hope that a lot of residences are going to be saved from here? >> reporter: david, i don't want to steal any words from firefighters here, but they would say everything is a risk as long as these winds remain high.

they've issued that particularly dangerous situation label from today through wednesday. that is something that they do not take lightly. so while they have been mentio, canyon, where there was a firefight over the weekend, there is certainly no letting up with the knowledge that these santa ana winds could return, david. >> appreciate that. altadena in particular, such an important story to watch. when we come back, we'll continue to monitor that story. we'll watch moderna as well, on pace for one of the worst days after ever cutting their sales outlook on weak demand for covid and rsv vaccines. when we come back, the bank stocks, as they kick off another earning season. we'll talk about top picks in a minute.

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there are a lot of other companies in the world that would be able to build a very good ear bud, but it just -- apple has a specific protocol that they've built in to the iphone that allows airpods to

basically connect to it and it's just much more seamless because they've enabled that. but they don't let anyone else use the protocol. if they did, there would probably be much better competitors to airpods out there. whenever you push on this, they get super touchy, and they basically wrap their defense of it in, well, if we let other companies plug into our thing, that would violate people's privacy and security. no, just do a better job designing the protocol. >> that was, of course, meta ceo mark zuckerberg on an episode of the joe rogan experience on friday, slamming rival tech giant apple. just the latest in a long feud between zuckerberg and apple. it's not hard to see why, obviously. zuckerberg, even himself said, if they didn't have the random rules, that meta would be a lot more profitable. clearly they compete on the headset, vision quest, and he went after apple for not innovating in a long time.

they compete with their own virtual reality headset. but the whole shift right from zuckerberg is fascinating and really capped off a week of it with the joe rogan appearance. he really is moving toward the elon musk playbook. and i do wonder what he wants from president trump as he has now met with him again at mar-a-lago this past weekend. >> not getting jailed might be a start. >> not getting jailed? >> yeah, put in jail, as president-elect trump wrote about in his book. >> i don't know if there was really a chance of that. less regulation, maybe, for big tech. just overall, i mean, the shift on dei, just getting comfortable. >> the current powers that be, it's something that he's very good at doing and has been good at shape shifting, so to speak. interesting, the criticism of apple. stock of which is down almost 8% for the year, so not off to a good start. obviously, our viewers remember when apple changed ios and for a

period of time meta was in a very difficult position in terms of its ad targeting. then they came back, roaring back, obviously, with no algorithms and ai-driven ads that have allowed them to monetize at a higher rate. it's not as though there hasn't been -- i wouldn't call it bad blood, but certainly some difficult times between the two companies. >> it was straight out of musk's playbook. he went after the new class of creators, the elite, the cultural elites, and said that, you know, there should be a new crop of social media users, there should be a reordering of society, and he sort of hammered the media in particular and tv anchors and news people. i don't know what his beef is there. >> he also told carl and i that we can be more masculine on set. >> he was talking about corporate cultural, masculine energy. >> i didn't realize. >> i think the 9:00 a.m. is plenty masculine. i don't know that we need that. >> thank you. >> but i think he was talking about the shift in corporate

culture, saying that that sort of aggression is not there. >> i can't let it all out here? >> feminine energy is always better. >> what's better? >> feminine energy. i disagree with mark zuckerberg. another earnings season kicking off with big banks set to report. our next guest is bullish, writing that after two down years, eps is set to grow again. joining us with expectations of earnings, ceo of kbo, a stifel company. what do you expect? >> good morning. like you said, we've just had two years of down earnings per share, and we think the banking industry is turning the corner on a variety of fronts. one is we think we're embarking on a two-year growth cycle. the biggest banks we think are going to grow earnings 15% this year, so that's because the yield curve is no longer inverted and it's because we're getting a little bit more loan growth. we also think that there's a

positive coming on the side of regulation, which could have a material impact on the biggest banks and on other banks. and having just less intensity like we've had it, we think could be a bullish case for the banks. so many of the banks still trade at a discount to the overall market, right after the election the stocks went up 11% the first day. they've given all of that back. we know there's a lot of concern right now about higher for longer in rates, and that is causing us to maybe narrow our stock selection some as we go into this earnings reporting season. >> so how do you think about winners and losers now that we have seen this big rate move? >> so, number one is asset sensitive banks. the way to think about it is the underlying trends are positive for the industry, the banks that are best positioned are the ones who are asset sensitive, so we like state street, for example. and the bigger banks tend to be more asset sensitive. we also think this investment banking cycle is gearing up.

we've got 25% growth for investment banking revenues this year and 15% growth for trading in our large cap estimates, and if the proposal does get walked back some, there could be more capital return. it actually would cause citigroup's earnings per share to go up by 18% if there was an entire non-increase in the proposal. so we think these are some bullish factors that can support especially the biggest banks. >> tom, how much are you thinking about -- you mentioned state street, we'll get their numbers on friday. but the regionals and the community banks, how much should we be thinking about a potential for an echo of what we got in the spring of '23? >> well, so i think -- first of all, the spring of '23 was quite extraordinary. >> exactly. >> i think that had to do with the significant change in rates

and how much bond buying the banks had done during covid. so that has been better managed. and i think it would take rates to go a lot higher. there would have to be a pretty significant shock for more pressure to come there. i think with the smaller banks, they don't have the non-interest income resources in investment banking, so their earnings per share are going to be less robust. we think they're going to grow earnings at 6%, even though there are several banks that we think will benefit from possibly better or more tailoring for them in the regulation side. so we think that on a stock-selected basis, the current rate worry is an opportunity to selectively buy some of the stocks that have now round-tripped the trump bump. so that's how we've been proceeding. >> tom, it's not as though we're not coming off a really strong year, though, for so many of the big cap banks. i mean, they outperformed the s&p by a good margin last year.

do you expect that will be the case in 2025 as well? >> david, unfortunately, that's a reflection of how poorly they did the year before. so, even though they did a big percentage move -- my experience is, when the earnings profile for a company is improving, their earnings per share is growing, it gives them a chance to raise dividends, gives them a chance to build their balance sheet. there's also a real capital growth story in the banking industry right now, which i think is very positive. i have found over my career that that's a good environment for the stocks, but i think you're right. i've talked before on your show about there being coiled springs. i wouldn't call the sector a coiled spring, but i do think there is upside, and really the best judgment for investors to make is, is this current rate worry worth what's happened to the stocks? because there's a lot of rate worry in these stocks at the moment. but let me say one other thing, though, to be cautious. you've heard me say this before on your show. the biggest torpedo in the ocean

is always credit quality. if rates were to go up so high that it would re-ignite a conversation about credit quality, i do think that would give investors pause. our channel checks don't show anything like that happening now. i do think there will be one-offs this quarter, but we're still coming off a low basis. >> tom, sometimes with these rate moves you don't quite know what breaks inside the system. it was silicon valley bank, it's been commercial real estate worries. sometimes when you get to these levels, that's when people worry about underlying exposure that they don't know about. is that a risk? >> well, i think it could happen -- yes, you're right, it could happen quickly. what i can tell you is we're going to learn a lot in this earnings quarter, but, remember, silicon valley and first republic, there were a lot of incredible events that led to that. silicon valley had nearly

doubled in a year in terms of size, they took a tremendous amount of covid liquidity and bought treasury bonds, held to maturity. those factors aren't there right now. and, remember, we were talking about three banks. there were 4,700 that didn't fail. on these banks got off side, painful for their investors, no question. but, look, risk is not gone in the banking industry. that is for sure. but we don't see that type of risk here right now from where we sit. >> okay, tom. thank you very much for weighing in. >> great, thank you. lululemon raising q2 guidance on strong oliday demand. not helping the stock this morning. the ceo will join us tomorrow morning to talk all things consumer. still ahead, former fcc chair ajit pai talking everything from the fate of nektok to expectations for the w administration. he's here at post 9 in just a moment.

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welcome back. i'm silvana hanao with your cnbc news updates. multiple officials tell nbc news negotiators made significant progress over the weekend in talks over a cease-fire deal between israel and hamas. the white house is reportedly pushing for a deal by the end of the week. the agreement would end more than 15 months of fighting in gaza and secure the release of hostages taken by hamas in its surprise attack on israel. the supreme court declined to hear a hear by shell and other oil companies to toss a climate change lawsuit by honolulu. the hawaiian city accuses the companies of misleading the public for decades about the dangers of climate change caused by burning fossil fuels. the companies argue that climate change is inherently an issue of

federal law that should not be addressed by state courts. and beyonce is the latest celebrity to donate to los angeles fire relief efforts. her foundation said it would contribute $2.5 million to help people who lost their homes in the fires, as well as to churches and community centers helping with relief efforts, david. >> thank you. the supreme court heard arguments friday over the upcoming ban on tiktok. it is slated to take effect on the 19th of this month. this is primed for increased engagement and produced a slew of changes to its own content moderation policies. joining us is the former fcc chair, now a partner at searchlight capital. nice to have you here. >> good to be with you. >> we were dealing with the ban of tiktok toward the end of your first -- well, when you were chair and the end of the last trump administration. where do you stand on it this time? do you think it's appropriate? >> well, i think the supreme court is weighing some of the

same national security considerations and free speech considerations that animated congress in the first place to pass the law. that law, as you know, was itself predicated on president trump's august 2020 executive order in which he said this was a national emergency, that this issue deserved attention. and so i think we saw the supreme court, really serious consideration of the national security considerations involved in bytedance, a chinese-owned corporation, potentially controlling some of the data of u.s. users of tiktok. >> i mean, obviously, they were weighing the free speech implications. many who listened to the arguments believe they were coming down more in favor of the national security considerations. we'll have to wait and see. meanwhile, your former boss, president-elect trump is not in favor of the ban. i'm sort of curious as to whether you have a playbook on how it will play out given, obviously, the legislation has already been passed. >> it will be interesting to see what the supreme court does. obviously they're weighing those issues i discussed. in the oral argument, if you

listened, they also opened the door to procedural complexities. for example, could the supreme court issue an administrative stay to allow the next administration to take some action to facilitate a divestiture. could the next administration simply decide not to enforce the law. these are the types of things the supreme court opened the door to. and interestingly, the solicitor general said she was not necessarily opposed to an administrative stay or the next administration having a chance to issue its own extension of the divestiture deadline. we'll see what happens, the next week is going to be very fraught both in the judicial branch and next executive branch. >> does the president have a mechanism to intervene otherwise? >> the president-elect did submit a brief in this particular case, weighing in on neither particular side. once he takes office, he might as the supreme court seemed to hint, have the opportunity to extend the deadline for divestiture. that's one of the things -- it wasn't fleshed out in the oral argument. >> what about these groups that want to buy tiktok here,

american investors? like the latest is kevin o'leary from shark tank. he's been at mar-a-lago. does that help the chances or is that ultimately just in the chinese decisionmakers' hands? >> ultimately it's in the chinese decisionmakers it's hands, and they've said we would not divest to any buyer, wonderful or not. it's going to be a question of whether or not the chinese government allows a divestiture. the law does give the president, either the current president or the president-elect, the ability to extend by 90 days the divestiture deadline if, indeed, those discussions are going to be likely to be fruitful. we'll see if a buyer emerges in the next week who is credible. >> given the complexities and uncertainties, how do you think about the rivals of tiktok and how they're planning for a range of outcomes? >> it's interesting, what you saw in other places where tiktok has been, banned or limited, for example, in india where tiktok was banned, there's been a massive shift to other

platforms, youtube and invoices. i would imagine there might be a similar dynamic here if, indeed, tiktok is no longer available on u.s. communications platforms. i think by and large, the u.s.-based social media companies are relatively immune from some of the same considerations that animated the law here. so i don't think they're in direct danger of being regulated the same way. >> brendan carr is going to be taking the job you once had soon. what are your expectations in terms of the fcc and how it will differ from that under the biden administration? >> i think brendan carr is going to be a superb chairman. i worked very closely with him for many years and i know that he has both deep expertise in all of the issues, as well as a determination to work hard to advance the ball in terms of american innovation and investment. and so i would expect him to clear out a lot of the regulatory underbrush that has accumulated over the last four years. for example, there's been no spectrum option authority for the fcc right now, which is incredible when you think about wireless innovation being a leader of economic growth in

this country. >> i had john stankey on not that long ago talking about the dod and saying, come on. is that a valid argument? >> it is a valid argument. i saw it during my time, that every single ban that we were looking to put into the use for public airwaves, there will be some federal agency that would put up their hand and say we're in favor of 5g, just not in this band. and over time that brings down american innovation. you have rules on the books from 1975 that prevent a radio station and newspaper from owning each other. it doesn't make any sense. i think brendan is going to take a forward-looking view to make sure the marketplace is reflected in the regulations of idea. >> many of the media ownership rules are just not adapted for the current age in any way. >> it's incredible. >> which leads to questions as to whether you could see a deal in which, for example, our parent company or at least our current parent company, comcast, would be allowed to merge with a charter or a large

telecommunications company. >> that's more of an antitrust question than ownership question. >> the sec has an important role to play. >> it applies a different framework to those types of transactions. i don't want to opine on any particular transaction, but the next administration will take a fair look at where the marketplace is and where the puck is going, so to speak, to make sure that it's not standing in the way of valium maximizing transactions that ultimately will benefit consumers. >> what about the issue of free speech? we were talking about the zuckerberg changes on fact-checking in particular, this is something that carr has actually pushed for. how much can he do with this type of thing when it comes to fighting for what he calls free speech? >> well, i think there's also, obviously, a bully pulpit function to being the chairman of the fcc. and i think that brendan and others have made the point, and mark zuckerberg said the

election was a cultural tipping point. when it comes to free speech, i don't think there should be a tipping point. there should always be a thumb on the scale in favor of free speech and i don't think there should be independent fact-checkers standing in the way, deciding what americans can say and do. >> so you applaud the changes? >> i do, even if it is, of course, coincidental with the election results. i'm not sure if it would have happened but for those results. nonetheless, as an advocate of free speech, i would certainly applaud the decision. >> do network news operations need to worry about how they edit and interview that runs afoul of how the administration sees the interview? >> all i can say is during my time i took the very firm position that the fcc shouldn't be in that business of micromanaging how interviews are done and that kind of thing. that said, the incoming chair made some statements that might suggest he takes a different view, and that's his prerogative. we'll have to see how it plays

out. >> all right, we'll have to see how it plays out. appreciate it. thank you. still to come, the battle to contain those deadly wildfires in los angeles rages on this morning. we'll get a closer look at the rebuilding challenges with a local developer who does have a read from the ground, in a minute. u need to hire. i need indeed. indeed you do. sponsored jobs on indeed are two and a half times faster to first hire. visit indeed.com/hire

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let's get back to the california wildfires. our next guest specializes in architecture, construction, and residential projects in southern california and los angeles, and says the rebuilding efforts will require a whole lot of new thinking, everything from construction technology to permits. bill baldwin is the ceo and joins us this morning. appreciate you taking some time at a very difficult week. good to see you. >> thanks for having me. i want to start with just my heart is going out to everybody who has been involved in this. i've been involved in this for decades and have been involved in rebuilding from fires before. what we're seeing is unprecedented. it's heartbreaking. >> i think the whole country has realized that quickly.

bearing in mind that the top priority is caring for the people and families of l.a., do you think eventually we're going to graduate to a rebuilding mind-set, and if so, how is that going to look or sound different? >> i think they will. i think these communities will come back stronger than ever. on top of all the grief and loss, they have to brace for some timing. it will take a while between clearing land and getting permits and drawing plans and getting the estimates done before we can get them back on their feet. but that timing, actually, will help from a building point of view because that timing for the houses with the losses will allow the building arts industry, the architects, buildings, engineers to gear up and brace up to help these people. i know everybody in my industry is now trying to figure out how do we best help. it will be a regional thing, it will not just be local. >> right. we mentioned construction technology. is that a big piece of this, how buildings are going to look and

be built differently, beyond the buffer zones and policies of the past? >> absolutely. when you look at, especially in the eaton fire and altadena, a lot of these homes that contributed to the dominoing from what was a forest fire into an urban fire, these are 60, 80, 100-year-old homes and they were vulnerable. now everything is going to be built to more modern fire standards. again, that in terms of fire resistant materials, landscaping, buffer zones around the house. these houses were significantly better than what we've seen here and will be much more resistant and it will make them insurable, which is a huge issue in california. yeah, the building technologies will weigh in large and i think it will be a huge part of rehabilitating these rehabilitating these communities. >> another is the timing. typically doesn't california have onerous permitting and regulatory statutes when it comes to development? i know governor newsom suspended

some on the environmental acts, for instance, in terms of rebuilding. but what else, any sort of indication on how long this will take? >> i think that's going to be the start. they're going to have to figure out how to move more quickly through other aspects of the building permit process. but, again, there's going to be some time involved. given the loss that's gone on here, i hate to say this to the homeowners, but there will be some timing involved and there's going to be a lot of people coming to the table. i think the fact that we have total loss here and we have time involved, it's going to help us gear up for it. but, yeah, there's going to be some time. people are going to have to have some patience with this. >> bill, there is a question from some as to whether there should be rebuilding in some of these areas at all given the changes in the environment, the climate change, the expectation for continued periods of great drought and what that will mean for fire risk. how do you see it? >> yeah, and i think everything

is an educational process, just like earthquakes in the past, we've learned from them and adjusted how we build. this is an unprecedented fire. santa ana is common here, but this was 100 mile-an-hour winds. there may be certain sites that are going to be far more challenging to rebuild and we'll have to take that into consideration. it will be an education process and that will have to be looked at in terms of some areas, can we build back or not. >> finally, bill, you mentioned what will eventually be a local push to update policies and permitting and construction standards, but there's the added question which has now been floated nationally as to whether or not federal assistance should be tied to certain conditions. i wonder if you think that's fair or whether maybe local officials will be happy to do it because they were going to do it anyway. >> yeah, some of that is outside my purview of expertise. i'm hoping that we get as much help here nationally and locally as we possibly can.

i think that this community needs to come back and i think it will come back stronger than ever. but we need help from everybody, and i think that empathy, both locally and nationally, is huge. i think we all need to come together and try to come through this as a nation and as a state and as local communities. >> bill, our thanks to you. please come back, and hopefully we'll be talking in the coming months about the rebuilding process. bill baldwin, thank you. >> thanks for having me. our coverage of the california wildfires continues next hour. ceo of edison international, one of the biggest utilities companies operating in the state, is going to join us for the latest on what is being done to contain the spread. that's on money movers. openai's advice for the incoming trump administration when it comes to ai policy. we've got new details after a quick break.

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openai, the company, of course, behind chatgpt is out with new recommendations for the incoming trump administration around ai policy. kate rooney joins us. she has the details. >> david, good morning. so this is a policy blueprint from openai a week before the trump administration takes office. it includes recommendations for lawmakers, and the gist of it is geopolitics, arguing the u.s. needs to invest in ai infrastructure to beat china. openai's head of policy says there's an estimated $175 billion from global funds ready to invest today. they say if the u.s. doesn't attract that cash it will flow to china-backed projects, strengthening the ccp's global influence. here is what i was told this morning. >> there are two countries in the world that can actually build ai and specifically ai infrastructure at scale, the u.s. and china. and so for the u.s., the question is do we want to make sure we're attracting that money

to the u.s. as opposed to seeing it go potentially to china. so huge economic opportunity because of what this can do in terms of the economic development in different parts of the country, but also huge national security implications. >> he calls it a race that the u.s. absolutely has to win, says chips data and energy as well as tant are going to be key in winning. there is a line in the blueprint about models being trained with neutral political values, trying to counter the woke ai criticism. i also asked him about whether elon musk has been a rival of openai, and mark zuckerberg, who has gotten more outspoken would support the effort. he said anyone who wants to see the u.s. win over china and wants democratic ai to win over authoritarians would support something like this. i asked him quickly about mark zuckerberg's more outspoken stance lately, especially on joe rogan over the weekend. >> in silicon valley there is, you know, an interest and desire for folks to be authentically themselves. i think that authentic quality comes out over the long term and

it's not only what people say, but it is what they do. and, you know, i turn it back a little bit to how we're thinking about things. the blueprint speaks to how we are thinking about the world and ultimately what we want to do to help move the world forward. >> we did also learn that ceo openai sam altman is going to be in d.c. previewing what this technology can do for lawmakers. guys, back to you. >> all right, kate, thanks. i mean, obviously already, hundreds of billions being spent this year alone by the hyper-scalers. but they want even more. kate rooney. let's take a look at some of the moves this morning. apple actually kind of a free-rider when it comes to spending, at least on ai, many say, is down about 2.5%. you heard kate talking about mark zuckerberg's interview, made some news over the weekend, given his criticism of apple, its lack of innovation, at least what he had to say. the stock down almost 8% so far year-to-date. of course, sort of general concerns there in terms of the

upgrade cycle, of course, carl, that continues. >> yeah, this counterpoint, some boutique research arguing that iphone was down 5% in the december quarter, added to that the zuckerberg color about the pace of apple innovation. >> and more eu potential scrutiny. there's a report in bloomberg they're digging into the app store fees, something that joe rogan and mark zuckerberg were complaining about as well. >> yes, any type of complaints there. we've got a market that is down 0.44% on the s&p, 1.1% when it comes to the nasdaq. a lot more coverage of it straight ahead. were built or somethin g? nope. ellen and i want to go on vacation, so i'm going to go back to last week and buy a winning lottery ticket. -can i come? -only room for one. how am i getting home? sittin' on my lap like last time, ronald. fine, but i'm bringing this. [ whirring ] alright. or...you could try one of these savings options. the right money moves aren't as far-fetched as you think.

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>> good monday morning. i am carl quintanilla. sara is down the hall, studio m with a big interview coming up. >> hey, carl. we are itting up with cliff, the founder of a qr capital management. thinking about the market, the rays