look at some models could cost you a pretty penny, the tech giant trying to squeeze a bit more out of users who might want to buy the pro version and analyst saying it could cost $100 more than the pro models of previous years apple hoping the announcement might bump up the stock price after shares fell earlier this week, will be following this on "mornings with maria" 6 - 9:00 a.m. eastern on fox business. that will do it for us, thank you for watching. we will see you next time. >> "barron's roundtable" sponsored by global x etf's. ♪.

jack: welcome to "barron's roundtable" where we get behind the headlines and prepare you for the week ahead. i'm jack carter. rising interest rates pushing bond yields higher, all ask rick reeder how to navigate the market. then a hawkish bed and aggressive antitrust action have quieted m&a activity but a reliable might be on the horizon. we'll take a look at the sectors in play. later it could become a lot more expensive to watch monday night football. we begin with three things investors to be thinking about right now. it is september historically a rocky month for the market, stocks closed out in the red as investors look ahead to august inflation data out on wednesday. shares of apple are down after china expanded the ban on iphones preventing government employees from using them on the job and with football season underway will tell you which online betting apps are worth the wager. on the variance roundtable been lovington, carleton english and jack out. his darkly is not a great market

and investors are reading the script. >> this is just as you would imagine it would be we get news apple iphone are going to be banned from being used by government employees in china apple falls, text talks to have any connection whatsoever to china, technology maker of the hard drive nvidia was down and that took the whole market down with it. this is more of a seasonal th thing. as you said september is a bad month is worse than any other month going back to 1928 john 1.1% and receiving the start of that right now. >> the energy sector is supposed to do well around memorial day ahead of the driving season. that did not happen so much now, energy is on the search, good news for investors and bad news for drivers this is geopolitical politics as well. energy had the best performance of more than 1% and it's because russia and saudi arabia have decided we're going to support crisis by keeping production

down and that will send energy prices up in oil stocks with it this is about trying to put pressure on the united states to make sure they don't act too hard to keep the oil prices down which we like for our drivers. jack: looking ahead, next week, what you look at. >> looking ahead at cpi inflation is what everything the fed has been doing it is about the number and the headline number will go up at the core level it should drop and that's what's important if it comes in around what is expected and weaker than expected that should be good for the market. jack: don't look at the year-over-year look at the month over month. year-over-year is 11 bad data points and one good one. we talked about china and the iphone a little bit. i feel like once a year there is a scare in china will not buy them the stocks tank and everybody says maybe they will. >> china doesn't want an

american company like apple to remain dominant in china. the deal apple created a lot of jobs there, now wages in china have increased and apple is moving some of the jobs away to vietnam and india so the deal is slipping and i think you'll see more news like this i think china would prefer that the consumers at home by one of the local favorites like huawei so i think additions will become more difficult for apple in china. the stock is getting hit all the tech stock is getting hit that's not just about this news, the china risk is not so new. it's about the valuation, your tech stocks have run up to dramatically and detach from the economic reality. remember when we were making the case it's not too long ago apple ten times earnings the deserves of the market multiple, now the market is at 20 and apple is at 30 should not be that expensive so any little sneeze, anything out there could set off a decline in tech stock prices. it is more about valuation and

the news. >> the iphone 15 number 15 is coming out this coming week does not take the multiple back from 29.8 to 30. >> the days of the super cycle are done maybe a mini super cycle i don't care if the new phone has a kickstand and a diesel engine. i'm going to buy one because i'm in the apple world and that's where my family pictures are, my music, i'm lazy i don't want to change so every few years after getting new phone because just to get a fresh battery and all that. that's where most people are most people are in and buy a new device every so often and it's about the growth in the software sales in the services so i think it'll be a healthy cycle. >> tim cook did a little jig. carleton detroit upset the chiefs on thursday night normally that would bump people out in kansas city but now it might hit a few wallet. in recent years people are betting on sports, not just

vegas anymore. >> you have 35 states that allow sports betting and three more set to come online, that is what we've seen over the last five years and were entering prime sports betting season with nfl kicking off the basketball starting. you know me i watch tennis and paying attention to rugby and a few other things to look at. a third of people plan to do sports betting. it tends to be centered around the big event or super bowl , mba final, things like that. luckily people keep a modest 75% of sports gamblers keep it to less than $100 every year. it is increasing but hopefully people are betting responsibly. >> one of the big issues with the sports betting companies, their spending so much on customer acquisition if you but a hundred or giving other 200, does not mean profitability is on the horizon for these companies. >> you're seeing some of the deals but the magnitude is not

that great you have a copy like draftkings saying it sees a path to profitability in the next 12 months, fanned will flutter getting there not paying as much as they have to to get new customers. >> i want to ask you about rugby but we don't have time. the fed's aggressive rate hikes has paid with the bond market. 2.7 trillion in fixed income, the more than gdp in italy. rick rieder black rocks join me after the break. it's easy to get lost in investment research. introducing j.p. morgan personal advisors. hey david. connect with an advisor to create your personalized plan. let's find the right investments for your goals okay, great. j.p. morgan wealth management. every day, businesses everywhere are asking:

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you want to be an outdated portfolio manager if you get around that much money. >> is a lot of hard work. it's been an incredible. in rates. >> since last time you came on the show things have proceeded in the direction that you said they would do update us what is your view on the economy can we ended we dodged a recession. >> this far, i think the u.s. economy is most resilient adaptive reflexive economy in the world it's incredible how it just a service oriented economy is different than 20 or 30 years ago. i think the economy is doing better than people into zepeda. the one thing today may be slowing a bit but as i think people have underestimated how strong this economy can be. >> you call it the polyurethane economy and you noted the absolute numbers of jobs created are phenomenal, go into that. >> i call it polyurethane think about how it bends in a just and

reflective. if you take shots at the u.s. economy interest rates up 500 basis points local banks and regional strings stressing and then the economy is able to adjust and inflation comes down organically. i think that is impressive. if you think may of 20, u.s. economy hired 26 million people that is the size of australia every man, woman, child in australia. what happened today, we exhausted, so many job openings that that is starting, we filled so many in healthcare, education, leisure, hospitality, restaurants, hotels, et cetera. my sense we fulfill a lot of those jobs so my sense you will see slack in the labor force, the wage pressure not without spots of labor negotiation but

my sense that will relay itself over the weeks and months. >> with rate hikes you see an immediate effect as it speaks the market, and a real economy it takes a while to feel the impact. i talked to guys at work with distressed companies, they're still borrowing money at the cheap rate that they got a couple of years ago and they say when it reloads over they cannot pay debt service. >> rolloff takes time, be big about the mortgage market give rates at historic lows people locked into present, three and half percent. that's what you thing about housing activity is so low because you cannot leave your house because you locked in your mortgage but what happens over time people moving it relocated and as you said the loan american people have to rollover and you see the impact, local banks funding themselves at levels much higher in many cases that the running assets. it takes a bit of time to run its way through the system. it's part of why shelter, that were certain will come down alongside of it but it takes

time. jack: what else do you worry about what keeps you up at night. >> there's a lot of things in geopolitics they give you some concern, the growth slowdown in europe and china and those certainly impact the u.s. and i think the central banks need to stop in terms of the hiking of rates. have a real impact particularly on lower income and you see that in retail sales and a credit card balance is growing, the central bank needs to pull back and we've been awful lot, inflation is coming down, growth is slowing. that to me as long as the central bank stops, could you get one more hike, maybe but i think that's a big one. >> whenever we paint this picture i would like to ask you where you see investment opportunities. i suspect if we look at the new portfolio that you are running the blackrock flexible income fund were to see what you like. >> it's a new etf that we are excited about a part of the why we launched and so excited you can create yield within 30 years

rates are coming down and people went through 0 interest rates and now you can build a portfolio with a 7% yield and not take a lot of risk, think about front and treasury bills get you five and a half, quality assets like agency, investment grade credit and you don't take a lot of interest-rate risk you stay on the shore into the belly of the yield curve after the five-year point is a historic point time you don't have to take a lot of risk you can get a lot of yield. if you think years yet to buy emerging markets to get three or four or 5%, 90 can build seven and a stable way. not to say that you don't move around but that's good we haven't seen that i been doing on a long, long time but we have not seen that in decades. jack: we have to go but i see emerging market in the portfolio as well, you feel safe there? >> part of the emerging-market you never feel safe in emerging-market mexico, brazil are different economic paradigm inflation is coming down, cutting interest rates those places i feel good we don't own a lot of emerging markets and some of the speculative areas

but you can build a lot of quality and take a little bit of emerging-market high-yield risk and keep it at an attractive level. jack: thank you for sharing your wisdom and coming by. a rebound for mergers and acquisitions could be coming after the ftc aggressive crackdown earlier this year. we'll look at what it will mean for certain sectors and the market next. there are some things that go better... together. burger and fries... soup and salad. thank you! like your workplace benefits and retirement savings. with voya, considering all your financial choices together... can help you make smarter decisions. for a more confident financial future. hey, a tandem bicycle. you can't do that by yourself. voya. well planned. well invested. well protected. ♪

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>> rising interest-rate and heightening scrutiny has slowed down m&a activity but several trust court losses in the end to end rate hikes will be a comeback for m&a what it means for the healthcare industry and banks among other sectors. we'll do a lot of things, don't worry. the warmest summer on record a

little chilly for the investment bankers, m&a slowed down dramatically. >> when you look at year-over-year we have a nerdy week 2020 off the heels of a fantastic and vestment makers 2021, 2023 not the great goldman sachs might be an inflection point with month over month numbers are showing a little bit of a creep up on announced activity. we had a few things working against bankers, as you mentioned rising interest rates, more expensive to finance deals yet 525 basis points over the last 18 months much tougher administration divided a administration in the head of the ftc really don't like merger activity they think it's anticompetitive and people in favor of merger say the flipside we need bigger to get more competitive and that's where were at now. >> the ftc was forced to withdraw its case against amgen with rising therapeutics, could that be the beginning that

goldman is identifying. >> the thing that happened with the top ftc. even if they haven't been successful in their cases, makes everyone looking to do a deal pause because the climate is not good so it puts a chill there you have that with the pfizer deal that is looking like it's going to go through, some of that chill is coming up and another thing to pay attention to is effective interest-rate 525 basis point hike that we saw now were looking at the fed maybe they will pause maybe another 25 basis point hike but not the dramatic uncertainty last year any deal going through both sides can say it might be more expensive than it was two years ago but we know where the pricing is going to be. >> where are the new deals going to come from, which areas. >> across all sectors you will start to see it but i love watching the banks, the banks got hit very hard this year end we saw what happened with the collapse of silicon valley and

first republic it is becoming much more expensive to be a bank and over the summer we saw new regulations that were proposed that will make the banks have 100 billion in assets up to the same level of scrutiny as the banks i had to enter 50 billion, there is going to be a sweet spot of banks and 70 - 210000000000 that will merge to get much bigger to deal with the onslaught of regulation then you have a much smaller banks the one that we never heard of their finding it tough to compete with anyone over 10 billion so we will have consolidation with the small side. >> what is the case for having so many small banks there are so many banks in america. i feel like whatever i ask they talk to me about relationships like at her bank you're not just a number you get a personal relationship, the last thing that i want i want to do it on my phone i'm not looking for a personal relationship, why do we have so many banks. >> that is just you. to your point we have 4600 banks in the u.s. much more than any developed country especially on per capita

basis. i think the smaller banks, the ones under 10 billion they are finding that maybe we don't need that, maybe you need a special level of specialization and banks to understand how the oil and gas industry works and know how to service the client and the region but on the much smaller level we need consolidation to your point. >> weren't the big banks ones that blew up the entire economy back in 2008. >> why are you stuck in the past? the argument for banks to get bigger, right now we have four of the too big to fail, bank of america, citigroup, j.p. morgan, wells fargo. when he had first republic getting ready to collapse you really only had to banks that could be because citigroup and wells fargo are dealing with issues so it was really only j.p. morgan and yes some people in the banking industry saying we shouldn't just have four too

big to fail, for can have too big to fail may be a should be 12, 15 so the risk is spread out because there will be other catastrophes in the industry and i hate to say about there will be not predicted anything soon but you want to have more banks that can step up to the plate if that should happen. >> they got have 70 to call besides jamie dimon. one hedge fund guy that i talked to said would banks not always treated their customers will have a percentage point when the treasury is at five years that some of the syntax companies will do well but i don't know they built some of the apps to share money and then the banks come along with zelle in is just as good, i don't know. >> you do wonder what is going to happen and i think your paypal, venmo will eat away of the banking business. they will eat away but you're going to want a banking relationship somewhere.ni relationship somewhere.ni jack: a pair ongf investment ids from you too, if you love monday night football you should hug a nonsports fan.

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jack: jack, customers of charter spectrum may not be able to watch the jets play the bills on monday night football, what is going on. >> this happens from time to time, big sporting events and disputes over fees but this does not look like it's going away soon. people are calling this the big disruption we've been waiting for in cable tv and espn is at the heart of it the most expensive channel on the bundle. if you have a cable bundle espn is $9 and change on a charter bill. basically the reason why it is so cheap. it's a most expensive but it should be much more you take sports and spread it around to everyone, people to don't watch sports they subsidize the people

that do this is why if you're a sports fan you should hug someone who's been paying a cable bill that does not watch sports because they have been paying for your football habit. charter would like to sell for skinny bundles don't have espn because they want to keep the cost down from keeping people from leaving. espn doesn't want some scriptures they wanted to go to everyone but this looks like a long-term struggle and this explains why espn owner disney is to have a tough time bringing a espn streaming service in a couple of years. if you truly pay for the sports among people who watch it is probably a bill over 50 bucks a month. >> even interesting theory this could drive down the price of sports franchise over time. let's go to carleton coming of an interesting one. they sold off a lot because with high interest rates people are and odds of solar panels and things like that but because of the war in ukraine a faster energy transition in europe and there's an opportunity that will spill over into the western rate stabilizing the company has a capacity to do a 1 billion-dollar buyback and

inverters that translate solar to electricity. >> obviously. i'm looking at and tell something that no other chip stock did it went up. it is because it has much less exposure to china and a big beneficiary, the stock has been beaten down and it's a turnaround situation it is up but hitting new highs and may be more ahead. jack: hitting new highs recently. a few years it was a lower. >> is the house and go back to where was in 2000. jack: great ideas to read more checkup barron's.com and don't forget to follow us on x formerly known as twitter at barron's online, that is all for us. we will see you next week on boys "barron's roundtable". ♪ -♪ whatcha gonna do -get on the ground! -♪ when sheriff john brown come for you? ♪ -i don't understand why i'm being arrested right now! -♪ bad boys, bad boys, whatcha gonna do ♪ -calm down. -i'm calm! -♪ bad boys, bad boys whatcha gonna do ♪