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. e. t. f s. welcome to barron's roundtable

, where we get behind the headlines and prepare you for the week ahead. i'm jack otter coming up rising interest rates, pushing bond yields dramatically higher. i'll ask blackrock fixed income chief rick rieder had to navigate this market, then hawkish, fed and aggressive antitrust actions have quieted m and a activity this year, but revival might be on the horizon will take a look at the sectors in play. and later it could become a lot more expensive to watch monday night football, but we begin as always, with three things investors ought to be thinking about right now. it's september, historically, a rocky month for the market stocks closed out the week in the red as investors look ahead to august inflation data out on wednesday. shares of apple are down after china expanded his 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 a wager on the barron's roundtable, my colleagues ben leveson, carl, english and jackhowes. so ben september historically, not a great month of the market, and investors are reading the

script, and this is just as you would imagine it. it was going to be. we get some news that apple's iphones are going to be banned from being used by government employees in china. apple falls tech stocks that have any connection whatsoever to china. for we have. qualcomm was down. you had seagate technology maker of hard drives, they were down in video was down. and really, that just took the whole market down with it, but i think this is more of a seasonal thing. as you said, september is a bad month. it's worse than any other month is going back to 1928 is down 1.1% and i think we're just seeing the start of that right now. so meanwhile, in the energy sector is supposed to do well around memorial day ahead a head of the driving season that didn't happen so much now energy is on the surge. good news for investors. bad news for drivers. this is geopolitics as well, right? that that is energy had the best performance this week. it was up more than 1% and it was because russia and saudi arabia have decided that you know we're going to support prices by keeping production down and that center

energy prices up in oil stocks with it, and this is all about really trying to put a little pressure on the united states to make sure that you know they don't act too hard. to keep the oil prices down, which we know we'd like for our drivers exactly. and looking ahead next week. what are you looking at? looking ahead to cpi. inflation is really what everything the fed has been doing is about that number on the headline level is going to go up on the core level. it should drop again, and that's really what's important. if it comes in around what's expected, maybe even a little bit weaker than expected. that should be good for the market. and, as jeremy siegel always says, 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. ah jack. we talked about china and the iphone a little bit. i feel like i don't know once every once a year. maybe there's this scare. china is not going to buy these things anymore. the stocks tank, and then everyone says maybe they will. but china doesn't really want an american company like apple to remain dominant in china. i mean, the deal was apple created a lot of jobs there. now wait isn't in

china have increased and apples, moving some of those jobs away to vietnam to india, so the deal is kind of slipping and i think you're going to see more news like this. i think trying to would greatly prefer that it's consumers at home by one of the local favorites like huawei, so i think it would. conditions will become more difficult for apple in china. this starts getting hit right all the text talks 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 dramatically in price and detached from the economic realities. apple 30 times, remember, remember when we were making the case apple? it doesn't it's not too long ago about 10 times earnings. it deserves a market multiple. it deserves to be 15 times earnings now the markets at 20 apples at 30. it shouldn't be that expensive. so any little sneeze out there. this is more than a little sneeze, but anything out there can set off a decline in tech stock prices. it's more about valuation in the news, so the iphone 15 number 15 is coming out this

coming week. so does that take the multiple back from 29.82 30 ? maybe. look people in the days of the supercycle er done , people say maybe there's 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. that's where my family pictures are. that's where my music is. whatever i don't want to. i'm lazy. i don't want to change so every few years i have to get a new phone because you know, you gotta get the fresh battery and all that. that's where most people are today. it's not just, you know, most people are just they're in. they buy a new device every so often, and it's really about the growth and the software sales and the services, so i think it's going to be a healthy cycle for apple. tim cook just did a little jig. he loves hearing that from you. jack carlton detroit upset the chiefs on thursday. night normally that would just bum people out incident and then kansas city, but right now, it might have hit a few wallets because in recent years, people are really betting on sports is not just vegas anymore. so you have 35

states that allow sports betting three more that are set to come online, and i mean that's really just growth that we've seen over the last five years, and we are entering prime sports betting season with the nfl kicking off, you know, we'll have basketball starting a little bit. you know me. i watched tennis and paying attention to rugby now, so you know a few other things. things to be looking at basically about a third of people plan to do some sort of sports betting now tends to be centered more around the big events are super bowls, nba finals, things like that. luckily people do keep it modest about 75% of sports gamblers keep it to less than $100 over a year, so you know it is increasing, but hopefully people are betting responsibly . so one of the big issues with these sports betting companies was they were spending so much on customer acquisition. you bet 200 will give you another 200. those are coming down. does that mean profitability is on the horizon somewhere for these companies, so i mean, you are still seeing some of those deals, but the magnitude of them not that great. you do have a company like draftkings saying, you know it sees a path

to profit. stability probably within the next 12 months. vandal parent flutter. also getting they're not paying as much as they used to have to get. new customers want to ask you about this rugby thing, but we don't have time the feds aggressive rate hikes have played havoc with the bond market. my next guest overseas 2.7 trillion in fixed income that's more than the gdp of italy. blackrock's rick rieder joins me after ♪ is it possible to fall in love with your home... ...before you even step inside? ♪ discover the magnolia home james hardie collection. available now in siding colors, styles and textures. curated by joanna gaines. ♪

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federal dramatic rate hike campaign caused massive losses in bond portfolios, but also created the best opportunities in fixed income we've seen in more than a decade. my guest manages the largest pool of fixed income assets in the world and his morningstar's outstanding portfolio manager of 2023 blackrock global fixed income ceo rick rieder joins me now. thank you, rick. you want

to be an outstanding portfolio manager? if you're going to run that much money it is. it's a lot of hard work. i will say it's been it's been an incredible period rates. exactly so since the last time you've come on the show, things have proceeded pretty much in the direction you said they would. but update us. what's your view on the economy? can we did we dodge recession? so that's far. i mean, i listen. i think the economy u. s economy is the most resilient, adaptive , reflexive economy in the world. it's incredible how it adjusts its. it's a service oriented economy is different than 2030 years ago, and i think the economy is doing better than people anticipated . the one thing i will say today, though, maybe slowing a bit, but i think people have have underestimated how strong this economy can be. you call it the polyurethane economy, and you've also noted that the absolute numbers of jobs created are phenomenal going a little bit. so i call it polyurethane, because think about how polyurethane bends and adjusts and in his reflexive and you know you, you take some shots at the us

economy. interest rates up 500 basis points. local banks, regional banks, setting stress and then the economy is able to adjust to it, and then inflation comes down organically along service. so i think that is impressive. the other thing is you think about since may have 20 us economies hired 26 million people that is, like literally like the size of australia. every man, woman and child in australia pretty incredible. what's happened today, though, is we've exhausted. i mean, there were so many jobs, job openings . that's starting to because we felt so many of them, particularly places like healthcare education leaves your hospitality, restaurants, hotels, etcetera, so my sense is we fulfilled a lot of those jobs. so my senses, you'll see some slack in the labor force. the wage pressure the accelerated wage pressure, not without some some spots of labor negotiation, but my sense is that will allay itself somewhat over the coming weeks and months, also with rate hikes, so you've seen immediate effect as it spooks the market . but in the real economy, it

takes a while to feel the impact. i talked to guys who work with distressed companies. they're still borrowing money at that ultra cheap rate that they got a couple of years ago . these guys say when that rolls over, they can't afford to pay the debt service. it's exactly right. i mean, roll off. take some time to think about the mortgage market. you think about people locked in had rates at historic lows. people locked in 3% 3.5% moving right. and so by the way, that's why you think about housing activity is so low. you can't leave your house because you've locked in a mortgage. but what happens over time people moved and relocated. as you said something the loan market. people have to roll over that financing, so you're starting to see that impact local banks were funding themselves at levels much higher than in many cases. they're running assets, so it takes a bit of time to work its way through the system is part of why shelter one of the big components of inflation has been higher shelter that we're certain that that is going to come down. that cost is gonna come down alongside. it takes time. like you say, what else do you worry about? what keeps you up at night? so you know, listen to there's a lot of things in geopolitics that give

me some concern. you look at the growth slowdown in europe and china and those are empire. those certainly impact the us and, you know, i think the central banks need to stop in terms of in terms of the hiking of rates because it's having a real impact, particularly on lower income. lower income strategy. see that in retail sales in a significant way. you see that in credit card balances growing. i think the central banks need to pull back. we've done an awful lot. inflation is coming down. growth is slowing and so that to me is as long as the central bank's stop. um you know, say you could you get one more hike in? maybe but but i think that's a big big one. alright so whenever we paint this picture, then i'd like to ask you. where do you see investment opportunities. i suspect if we look in the new portfolio that you're running the blackrock flexible income fund, we're going to see what you like. so bink is our is our new e t f. there were pretty excited about and part of why we launched in part of why we're so excited about it. you can create yield today you think about we've been 30 years rates coming down people with went through a period of zero

interest rates. now you can build a portfolio with a 7% yield to it and not take a lot of risk. think about front end treasury bills get you 5.5. we can use quality assets like agency mortgages, investment grade credit. by the way, you don't take a lot of interest rate risk. you can stay in the short end to the belly of the yield curve sort out to the five year point. it's a pretty historic point in time. you don't have to take a lot of risk and you get a lot of yield. do you think about for years? rates are at zero yet by high yield debt by emerging markets to get 34 or 5% now you can build a seven in a really stable way not to say there's not, you know you don't move around somewhat, but that's a pretty. i mean, we haven't seen that. i've been doing this a long, long time. we haven't seen that in decades and we've got to go, but i see a lot of emerging market in that portfolio as well. you feel feel safe there. so parts of the emerging markets i would say you never feel safe in emerging markets. mexico brazil in a very different economic paradigm, inflation is coming down there cutting interest rates there. those places i feel good about we don't own a lot of emerging markets in in

some of the speculative areas, but listen, i you can build a lot of quality in portfolio and then take a little bit of emerging market high yield risk and keep the yield an attractive level. all right, rick, thanks so much for sharing your wisdom. thanks for coming by. thanks for having me. already a rebound for mergers and acquisitions could be coming after the ftc's aggressive crackdown earlier this year. we'll look at my relationship with my credit cards wasn't good. i got into debt in college and, no matter how much i paid, it followed me everywhere. between the high interest, the fees... i felt trapped. so i broke up with my credit card debt and consolidated it into a low-rate personal loan from sofi. i finally feel like a grown-up. break up with bad credit card debt. get a personal loan with low fixed rates. borrow up to $100k. and no fees required. go to sofi.com to view your rate. sofi. get your money right.

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will be rising interest rates and heightened ftc six scrutiny have slowed down m and a activity but several antitrust court losses and hope for an end to rate hikes could mean a comeback for m and a look at what it means for the health care industry and banks, among other sectors. carlton will put a lot of banks don't worry so warmest summer on record. little chilly for those investment bankers and a slowed

down dramatically when you're looking at the year over a year, numbers are coming up in already weak 2022 off the heels of a fantastic for investment bankers 2021 2023 not looking that great, but goldman sachs data shows that we might be kind of at a bit of an inflection point on m and a where the month over month numbers are showing a little bit of a creep up on announced activity. had a few things that are working against bankers going on. as you mentioned rising interest rates more expensive to finance deals. you know you have that 525 basis point hike over the last 18 months or so the other thing, much tougher administration, the biden administration and lina khan at the head of the ftc really don't like merger activity that you think it's anticompetitive. people in favor of murder, stating the flip side were said. we need to get bigger to get more competitive, and that's where we're at now. so the ftc was forced to withdraw its case against amgen buying arising therapeutics. could that be the beginning of this thought you say goldman's identifying? yes so the thing that happened with this tough ftc is that it kind of even if they haven't been

successful in their cases. it makes everyone looking to do a deal. just kind of pause, you know, because the climate is like good. so it puts a chill there. so you have that where you have something like the region fighter deal. now that's looking like that's going to go through. so you know, some of that chill is coming up. the other thing to pay attention to is the effect of interest rate hikes because that 525 basis point hike that we saw now we're looking at the fed. maybe they're going to pause. maybe it will be another 25 basis point hike, maybe a drop, but not that dramatic uncertainty that we saw last year. any deal going through both sides can say it might be more expensive than it was two years ago. but we kind of know where the pricing is going to be in where the new deal is going to come from which areas so i think across all sectors are going to start to see it. but you know me. i love watching the banks. the banks got hit very hard this year. obviously we saw what happened with the collapse of silicon valley bank at first republic, and really, it's just becoming much more expensive to be a bank. now. over the summer , we saw a bunch of new

regulations that were proposed that are going to make those banks that have about 100 billion in that's up to the same level of scrutiny as the banks that had 250 billion so there's going to be this sweet spot of banks kind of in that 70 to 110 billion that are going to want to merge to get much bigger to deal with. you know this onslaught of regulations, then you also have the much smaller banks, the ones that we have never heard of finding it tough to compete against anyone over 10 billion, so we're probably gonna have a lot of consolidation at the smallest size to what's the case for having so many small banks. i mean, there are so many banks in america i feel like whenever i asked him when they always talk to me about relationship to say that our bank you're not just a number. you get a personal relationship. come on in here and talk about the last thing i want is a person. i want to do it on my phone. i'm not looking for a personal relationship from my banker. what is the what do we have so many banks? well, that's just you, jack. but i mean, you know, to your point. i mean, we have something like 4600 banks in the us much more than any other developed country, especially on a per capita basis, and i

think these smaller banks, you know the ones under 10. billion they're finding that maybe we don't need that. maybe you do need some level of specialization. um, you know, being said, understand how the oil and gas industry works. they know how to service that client they know how to service that region. but on the much, much smaller level i think we just need to see consolidation to your point. but wait a minute weren't the big banks, the one that nearly blew up the entire economy? back in 2008? come on, let me why are you so stuck in the past? so you know the argument for banks to get bigger right now we have four of the so called too big to fail. banks. bank of america. citigroup jpmorgan wells fargo when you had first republic getting ready to collapse, you really only had two banks that could bid on it because citigroup and wells fargo or you know, dealing with some issues now. so it was really only jpmorgan that could and you have some people in the banking industry, saying we shouldn't have just four too big to fail. banks it should be maybe. i mean, if we're going to have to big to fail banks that should be maybe 12 15 so that that risk is spread out

because there are going to be other catastrophes in the industry and you i mean, i hate to say it, but there will be. i'm not predicting anything soon. but you do want to have more banks that can step up to the plate if that should happen to have somebody to call besides jamie diamond, exactly, you know, one hedge fund guy i talked to thinks that with banks, not always treating their customers so well, half a percentage point when you know the treasury is at five years, whatever that somebody's fintech companies will do well, but i don't know they build some of those apps to share money. and then the banks come along with zell, and it's just as good, so i don't know if you do wonder what's going to happen there. i think you know some of these fin texture. paypal's venmo is they will eat away at some of the banking business. thank you will eat away at some of it. but you still are going to want to banking relationships somewhere already. thanks guys. we're gonna pair of investment ideas from youtube. and then jack says that if you love monday night football, you should hug a non meet three students all learning to save and spend their money with chase. freedom for kids. hungry? thank you, chef.

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come here, jack. customers of charter spectrum may not be able to watch the jets beat the bills. i mean, play the bills on monday night football. what's going on here? there's a you know this happens from time to time before big sporting events. these disputes over carriage fees, but this one does not look like it's going away soon. people are calling this the sort of big disruption we've been waiting for, and cable tv. and espn is at the heart of it. it's the most expensive channel in the bundle , if you if you have cable bundle the espn cost but is like $9 in change and a charter bill and basically the reason why it's so cheap. it's the most expensive, but it should be much more than that. the reason why it's so cheap as he takes sports, you spread it around to everyone. people who don't watch sports. they all subsidized the people who do. this is why. if you're a sports fan, you should hug someone who's been paying a cable bill for decades. who does not watch sports because they've been paying for your football.

habit. um what charter would like they'd like to sell more skinny bundles that don't have espn because they want to keep the cost down to keep people from leaving their subscriptions. espn doesn't want that they would like it to go to everyone. and it's this one looks like a like a long term struggle. and this sort of explains why disney is going to espn owner disney is going to have a tough time bringing a true espn streaming service in a couple of years because if you truly paid for the cost of all those sports rights among the people who watch it, you probably have a bill over 50 bucks a month already. and do you have an interesting theory that this could drive down the price of sports franchises? over the time we'll get to that at a later show. let's go to actual ideas. real quick. carlton, you have an interesting one. taking a look at in case this is a pick by obvious. saltzman sold off a lot because with high interest rates, people aren't you know spending for its solar panels and things like that. but because of the war in ukraine, you're seeing a faster energy transition in europe, so there's an opportunity there that will eventually spill over into the u. s. yes, when rates stabilized, and the company has the capacity to do a $1 billion

bipac make inverters that translates solar to electricity. obviously of course they do. ben. what's your idea? looking at intel? it did something that no other chip stock did this past week. it actually went up this because it has much less exposure to china. it's going to be a big beneficiary. the chips act, the stock has been beaten down. it's a turnaround situations up a lot this year. but it's actually been hitting new highs and there may be more head hitting new highs recently back a few years and still hasn't gone back to where it was in 2000. thanks guys. alright great ideas to read more. check out this week's edition of barron's dot com. don't forget to follow us on x, formerly known as twitter. that's at barron's online and that's all for us. we'll see you next week on barron's roundtable. >> from the fox studio in new york city. this is "maria bartiromo wall street".