interviews and discussions with some of the country's most influential executives goldman sachs' ceo david solomonined now what did solomon have to say, carl >> it's been interesting today, scott. we've handled all kinds of topics here in santa barbara we we've covered china, covered ai and covered the prospect recession, and the house view at goldman for a long time now has been pretty constructive relative to consensus on the possibility of recession they were at 25% odds in the next 12 months they upped it a little bit to 35%. still below the streets. roughly 65% odds if you believe consensus, but listen to what david solomon told me and sara eisen at this panel a few moments ago. he didn't sound quite as optimistic. >> i'm more in the camp that we're probably going to have a recession because i think that inflation is going to be stubborn i don't necessarily see rates really, you know, easing at the end of the year based on what i see now, and so i think it's stickier and harder, but, you know, also uncertain, and a lot of factors that are going to have to be balanced, and it's just not clear

what did you learn when you sat down with david solomon? carleton: this was before james gorman made the announcement. we questioned david solomon about the path goldman sachs is taking andrew comparisons to morgan stanley. he admires what james gorman has done very much. goldman is trying to get more into the asset and wealth management business. there are four or five years into the transformation where james gorman had 12% because wealth management is more durable source of revenue than other markets which there was a lot of hope there would be a rebound this year. with rates being high, inflation ceo uncertainty, looking at that being a 2024 story. ibly205 there was no djing while he was here. tech companies are dominating the market. where can investors look to rebalance their portfolioss? i will ask richard bernstein sometimes you're so busy taking care of everyone else you don't do enough for yourself, or your mouth. but eventually, it will remind you. when it does, aspen dental is here for you. we offer the custom dental treatments

40-year high last summer and is now being primarily driven by a rise in wages goldman sachs ceo david solomonold the council summit there could be a tightening this year as it affects growth. >> no doubt the peak of inflation has dropped off. i sense that it's going to be stickier it's come off its peak, but it's going to be stickier and more resilient, which is why, you know, we're kind of managing and expecting that while the fed may pause and it may be down at the pendant, you might need to see higher rates maltetly to control it some more. >> julian, great to have you on the program again. looking at the market weakness that we've seen recently, a lot of people are quick to pin it down to uncertainty and positioning around the debt ceiling. what is your take? is that really a central event >> it won't be we know roughly the exit date and when things need to be sold by in order to avoid chaos around as a result of that based on the comments we got from the white house and from the negotiator, the market is starting to price in at more or less chances of a success. and the problem is when y

will enter a downturn in the next 12 months goldman sachs david solomon echoing that sentiment yesterdayt the ceo council summit. >> i think there's a greater chance of a recession than not as we look at the end of the year into early 2024, but i'd say it's uncertain if there is a recession, it will be relatively shallow, but it's hard to tighten it and not ultimately have an impact on economic growth. some of this is a reblangs from the balances of the pandemic, but we'll see. it's unclear. >>> let's bring in craig johnson. let's jump right into this do you agree with david sl mon can you give us your s&p target for year snend. >> thanks, frank thanks for having me back. if we step back and look at all the negative news, frank, that has been laid into the market over the last several months, you'll see the stockmarket continues to tlad higher all this discussion of a hard landing or recession, you've seen the markets move appreciably off o of the october lows frank, you asked a question about a year end objective it's about another 11% higher. all these concerns are out there. stocks ar

. >> thank you >>> coming up, goldman sachs ceo david solomon speaking out at the ceo council summitll tell you what he said about the odds of a recession. that's next. "squawk box" will be right back. i'm so glad we did this. i'm so glad we did this. i'm so... ...glad we did this. [kid plays drums] life is for living. let's partner for all of it. i'm so glad we did this. edward jones technology lets you monitor your pet when you're not at home, but to monitor threats to your hybrid workforce wherever they are... you need more than technology. you need cdw, who gets to know your business and can design and deploy custom solutions, with pre-configured hp notebooks with hp wolf security. ai-enabled threat detection and remote management protect your endpoints 24/7, giving your defenses some real teeth. bummer. hp makes always-on remote security possible. cdw makes it powerful. ♪ (upbeat music) ♪ ( ♪♪ ) with the push of a button, constant contact's ai tools help you know what to say, even when you don't. hi! constant contact. helping the small stand tall. new projects means new project

david solomon talking about sort of a view that you share, which is that inflation is going to be hardo tamp down. >> we can't seem to get anything going in terms of wage -- just even stabilization, not increase yesterday, there was a conference call. toll brothers. the toll brothers, the release was incredible doug yearley million dollar humps the average price of a toll brothers house is now a million dollars. i remember when it was $600,000. sold out it doesn't matter what rates are doing. the wealth, if you read that, if you read what doug yearley said, and he's a straight-shooting ceo, you would say, okay, we got to stop this juggernaut. pmi, strong yesterday. there are so many wealthy people i'm not saying we need great redistribution or anything i'm just saying that it's unaffected by mortgage rates >> in the face of steady rising mortgage rates look at that chart what does that -- why? >> because there's just tremendous inflation in the system people just keep making more money, and these guys can charge whatever they want and i think that that's kind of what our problem is. th

this land antiquity and today, and they keep searching for the, you know, the fortresses of david on solomon for is getting a monumental structure that would show this was the capital city. at some point where most archaeologists are basically having saying virtue package and the age of the judge advanced and married on the issue, i can do that, can go and take with you or what many of the other kingdoms were entities. but they were people who live on a piece of land. they shared some tribal identity. they didn't have massive, huge fortifications and a place to shop and been found in intrusion that had been found by some other parties and syria must obtain. yeah. so it's really important to recognize that we, we should, excuse me every day or 2 article side, whatever it is, a slot, my jewish christian, multiplicity of all these things. honestly, we're, we're, we're integrity, ethical and strongly integrity. and that means you go down the, the ladies round and you find the layers one after the other preserves and what the users are doing, largely in jerusalem was the horse awfully. they going

she's david and solomon, it may exist somewhere, but they're looking for to 150 years and they are, they still haven't found a drop slot the place. so these are, these are really doing a lot of things that are great, criticised by scholars and other people's, they're just relaxing care. the politics inhabitants are being what they're like for everybody. romeo talked about digging down right from above. and there's obviously lots of issues about tunneling, because eulu is by my understanding a lot of the layers of the art technology as, as we're digging through, if you're doing it horizontally, mazda and i want to ask, do you feel that awesome science, which perhaps very secret in terms of various different religions, that shouldn't be touched because if you're going to be digging down properly as, as a papa, aki logical take, you have to go from above. i do want to make a point about this. some point about the relationship between this really government center, this institutions like the boxes, mention part of social routine and private institutions. like a lot of these have their zip co

>> steve, it appears from hearing jamie dimon and david solomon this week and then listening to all the, it seems as if the only party not really trying to prepare people for higher rates or a higher fed funds rate is the market doesn't want to believe it >> reporter: but i will say this, scott -- first of all, i need to have a clause here look, we don't exactly know, but the market has come closer to the fed. if you look at the fed market gap for the end of the year, it's about 30 basis points it had been as much as 100 basis points between where the fed thinks it's going to be and where the market is pricing it the trouble is that number is polluted by concern over the debt ceiling you've seen all the short-term t bill rates surge because of default concerns we're not sure how pure a reading we're getting. if the default concern came off the table, that gap may be wider. as to the stock market, they've been dancing to their own tune they raise rates when inflation is high. if inflation is down, they go back to the world they had before there's obviously pain ahead concern about a rece

knowledge in every area, some of the most esoteric that could be the most helpful to me and get to david solomon on down to anybody. that's special so that culture, that's just not today. that's a culture they had. it's a culture they will continue to have why would i own the regional banks when goldman is well off its highs, too, and not worried about commercial real estate exposure >> how about you. >> i've said over and over i don't think that's a risk you want to assume i think it's encouraging that western alliance is, you know, communicating that its deposit growth is now at $2 billion. that means they've added on another $200 million >> up big today. >> along with pacwest. western alliance is still down 41%. pacwest down 70% year to date. i look at what i own i say to myself bank of america is up 3.5% jpmorgan, which i own, is up basically a little over 2% morgan stanley is up 1%. i'm willing to give up a little bit of the upside because i believe the stocks that i own are more in the characteristics of risk than i want to assume and i think they'll benefit from an improving regional bank

in jerusalem is going horizontally to try to find more evidence of this mythical fortress of david and solomonthat may exist somewhere but they have been looking for for 150 years and they still have not found it, and jerusalem is not that big of a place. so israel is doing a lot of things that are criticized by scholars and other people. if they would just relax, it would be a better life for everybody. nastasya: rami, you talked about digging down from above, and there are a lot of issues about tunneling, because i understand you lose a lot of layers of archaeology as you are digging through, if you do it horizontally. mazin, i want to ask, do you feel there are some sites which are perhaps, very sacred in terms of various different religions, that should not be touched? if you are going to be digging down as a proper archaeological dig, you have to go down from above. mazin: i want to make an important point about this relationship between the israeli government and its institutions like parks authority and private institutions like elad. there's a convoluted web of relationships that many

here's what david solomon had to say about inflation and what it means for the fed. >> there's no questioncome off. you know, when i've talked publicly about this in the last couple of months, i sense that it's going to be stickier to come off its peak, but it's going to be stickier and more resi resilient, which is why, you know, we're kind of managing and expecting that why the fed may pause and it will be data dependent, you might need to see higher rates, you know, to ultimately control it some more. >> it's like you are in his head, guy. >> he watches the show religiously. craziest thing and i happen to agree with him, as i should. jamie dimon said that. the only people that -- the only thing that's not listening right now seems to be the market because interest rates are starting to listen, as well. it's right out there, the fed has told you what they want to do they've told you, listen, inflation is a problem rates are going to remain higher we might not be raising, but not taking it off the table and be longer than people realize the only thing that doesn't get it is the market >>

taking david, king solomon. and to come back. we want to make sure that we continue to flourish and strengthen, and the great strides that we have made, the abraham accords, the region has become safer, economically stronger. we want to expand those even further. we look forward to working with any nation that wants to work with us to bring peace and prosperity. and i hope you see that in the bipartisanship in the way we deal with this. i hope you see the commitment to america, to israel. i have been here many times. years ago when i became leader, i sat down with him on the other site of the aisle, another leader. the members would come by party over here. i sent you lead your group, i leave mine. but let's stop doing that. let's go and interact at the same time. what we found was the bond was only stronger. we wanted to look at different issues and i found that californians all team together, republicans and democrats, to see that plan. maybe we can take some technology to help our own state. we watched that working together. a

i can tell you this, david solomon, the the ceo of goldman sachs, has always signaled when asset prices normalize, stabilize, come down, goldman could be in the market for something. i mean, you could see them in this environment if northern trust, we should throw up on the screen if you can real quick, i know i didn't ask for this, but it just came to my mind -- liz: for the moment, gold goldman's down 1.5%. >> northern trust could be something that they could look at. solomon's a keelmaker, okay -- dealmaker. he's an investment banker by raid. something like that could happe- liz: agreed. >> so watch goldman as an acquirer here. they're not going to go buy something that's filled with toxic assets, just so you know. northern trust is an interesting company because it's mosesly a trust company, has a concern mostly a big -- liz: they are in a different position than perhaps the rest. >> who? liz: goldman may be in a different to be and stronger position. >> okay. by the way, look at that chart. look at that chart -- liz: yeah. >> it's getting pretty cheap. liz: yeah. you know, the bank

the fact is that according to legend, the ancient kings solomon and david were anointed from a with oilicorn and ivan vasilyevich e. he wanted to equate himself with these ancient kings solomon and david, and therefore depicted e, a unicorn on his personal seal. here is such a story. oh well, well beautiful question beautifully. congratulations. friends mine, after the third round the amount in the bank has not changed, there is still 160,000 rubles. famously started now slowed down a little. let's see what happens in the fourth round. let's go right now. we play together again again, one question worth 20 thousand rubles at stake again i can give three hints 4 minutes you will have one feature eugene this will be a video question quite right, we will select the viewer on the screen, and then he will ask you about everything. larisa zavyalova is playing against you, 55 years old, the city of khanty-mansiysk is fond of larisa fishing, walking in the forest, reading classical literature, and the winnings will be spent on her beloved like this. well, yes, attention to the screen larisa her

to king david and king solomon and to come back. we want to make sure we continue to flourish and strengthen. the great strides that we have made, the abraham -- the region has become safer and economically stronger. we want to expand those even further. we look forward to working with any nation that wants to work with us to bring peace and prosperity. and i hope that you see that in the weimar citizen -- bipartisanship in the way that we deal with this. i hope you see the commitment with -- two america and israel. i've been here many times, years ago when i became leader, i sat down with thin, on the other side -- and then, the other side of the aisle, and many times the members would come by party agreement. say you leave your group and i leave mine but let's stop doing that. let's go and interact at the same time. you know what we found here? the bond only stronger. we went to walk out to look at different issues and i found californian teamed altogether to go see the deceleration plants. that maybe we could take technology to h

. >> i'm sure it was >> well, david solomon at our ceo council last week talked a lot about inflationeing stickier >> well, i mean, yeah, he was a downer eddy cue was not a downer. talk about what people want, find out things they don't even know they like >> eddy cue loves that mls >> we can't pull one they're called socks no, it's the other >> i wonder if apple will go for the nba, what they'll be willing to spend on that you think they will? >> it's worldwide. a worldwide sport. people love the nba. >> you saw the 52-week high yesterday. i think all-time high would be somewhere around $183. >> now people say they have to do a.i., but a.i.'s a short-term peak here. let's have something we never dreamed of that we will all buy. that's what i want >> okay. >> that's going to be a big story for next week. big story for today, though, is the debt ceiling deal going to a full house vote, having gotten out of rules we'll get details on that. take a look at the premarket here as q2 is now about two-thirds over d 'ranwee a month away from the second half. don't go away. lling me a million d

told me i had to fire that customer and kick them out now, that customer would be king because of david solomony the way, there was a guy before him who came up with the incredible name, marcus, but goldman is so lost, it's frightening. except for johnny fine, because he's fixed income, and he's fabulous the idea that -- >> really? you think they're so lost? >> at the top of the cycle, they bought a company that makes small refurbishment loans? and we don't make fun -- we don't give them a hard time? they are -- >> they would say this is all a very small part of our business. >> they recolshould open a rich person's theme park. only the rich. restrict take that. >> david -- got to get a shot of david's reaction >> sorry, you missed it. >> take a look at the premarket here a lot to get to, including some double-digit gains for names we used to think of as growthy. coin carvana is up. we'll get to all that and industrials d avantrel and media, warner brothers included, when we come back. zbliefrm refund, even if you got ppp and it only takes eight minutes to qualify. i went on their website, uplo

when the pandemic took hold david solomon was in place.s some kind of disruption he left the door open it would be a smooth transcription -- transition. tom: thank you so much. there is another major story going on right now and it is moving our kits. futures up. the vix up from 15.97. these are stunning headlines. john williams of the new york fed, is really strong statement in writing and he speaks of the relaunch of the r-star interest rate back to pre-pandemic level. the very key headline, pandemic didn't end era of low rates. there is your market lift. lisa: when what we are from the imf and everyone pooh-poohed that we were in the olden days in here comes john williams saying that we are going back that and what fed policy is remains to be seen. tom: you saw what we saw from lagarde, where they are going to go to higher rates to call him a much more difficult inflation. what are we going to see from powell at 11:00 a.m.? lisa: the indication that john williams said they would hold the rates until they get inflation down to the same a

with david solomon. jonathan: i'm not going to let you gloss over that.the day? tom: i had the honor to speak to lee trevino. i talked to him about driving down kilborn drive and what it was like before he stepped out. he got emotional. coming up, sonali will address the tee. ♪ >> the recession that everybody's been waiting for hasn't come. >> consumers moving toward the front end, institutional going toward the long and. echelon end. -- toward the long end. jonathan: coming up, it of debt ceiling negotiations and fed speak. stay in bed. [laughter] this is "bloomberg surveillance." a decent week of gains on the s&p. high yields even with the debt ceiling drama. the president of the united states resuming talks later on this afternoon. it is kind of good, kind of bad, it is ok, it is not ok. where are we? tom: we will have a great conversation on the range we are in. futures 42.01. we are at the top of the recent range -- 4200. we are at the top of the range. jonathan: yields higher in every session last week. lisa: people are saying this time is different

through the wilderness, then back to the promised land. 3000 years ago, david reigned as king of israel. soon after, his son, king solomonnsecrated the first temple. the temple was destroyed but its spirit of freedom and faith remains. we see that spirit in the state of israel today. israel is strong. it is innovative, it is blessed. israel indoors. the lord blessed you from zion and may you see the prosperity of jerusalem all the days of your life. indeed, may you your children's children, peace be upon israel as david has written. [applause] >> it was president john f. kennedy who said it best, israel was not created in order to disappear. israel will indoor and flourish. it can be neither broken by adversity, nor demoralized by success. kennedy's words echo throughout this chamber today. ladies and gentlemen, israel's rebirth is nothing less than a modern miracle. and i thank you for it. [applause] >> the source of that miracle is the people of israel. in those dark days thousands of years ago when the jewish people were scattered from israel, isaiah predicted a brighter future to come. inspired by god, he shared this

solomon sigh islands. u.s. is trying to come back with one of its own with new guinea. >> david sanger, thanks so much. >>> coming up, a d.c. metro police officer has been arrested accused of tipping off a proud boys leader about his impending arrest. >>> plus the cia is recruiting russian spies in a new video campaign hoping that they will share their secrets. former cia officer will join us to discuss. three kids?! this was nevever part of the plan! these kids order the lobster mac 'n cheese! what if she wants to play golf? we're going to have to outlaw golf. absolutely no gogolf in this house! not under mymy roof! since we started working with empower, all of our financial questions have been answered, so we don't have to worry. so you never- nope. always part of the plan. join 17 million people and take control of your financial future to empower what's next. start today at empower.com having diabetes can raise a lot of questions. like my morning ride. with the freestyle libre 2 system you caknow where your glucose level is and whe it's headed. wiout fingersticks. manage yr diabetes with more confidence ask y

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