is it too early to cast judgment on pat gelsinger the new ceo. >> no. we what pat gelsinger can do and he'll spend $20 to $22 billion next year and we know that they're going hard at work and this global foundry's deal is no comment and i think he'll be aggressive in moving things faster than people expect. i think the issue is you can't turn this business around after three or four years of underinvesting in it overnight and the pop that came with gelsinger takes over and a man who has certainly been in the dna and the fiber of the company and known for innovation comes back onboard and the updates are great, but what i heard out of this tape was more the company talking more about dynamics in pc and addressable market and what's going on for the industry to get back to some of the supply chain dynamics that it wants to i don't love the outlook because i don't think you could have expected a lot here. i think the stock is very cheap and that's what you're excited about. >> for more reaction to intel's earnings let's bring in jared weissfeld, tech secto

we will talk to ceo pat gelsinger about why a recovery isn't taking hold.or the most part, looking at some optimism in the equity market. you did have very solid pmi's. we will get to whether that is durable or if it is as good as it is going to get. i did want to highlight what is happening with the pound, continuing its slide. manufacturing coming in lower than expected. everyone goes out, spends, and that is paring back. yields pretty much going nowhere. up a touch in germany by about one basis point. crude having a very adjusting, very -- very interesting, very volatile week. that is the story in europe. we are looking at the peak and whether or not we have hit it. in the u.s., it looks like we probably have when it came to market pmi. on the other hand, you have amazing earnings that continued to surprise. abigail doolittle is here with the latest. abigail: we have an all-time high for the s&p 500, after all of the volatility recently. the result is another record high. the nasdaq 100 not quite as much, but nonetheless strong, despite weakness from the

gelsinger says intel could sell more chips if they could make more chips sdplchlt we think that's thefor the industry and for us we're working to build more product. first half to second half, more expense coming into the business as we bring on more of the 10 nanometer costs. we have unique things which are good news as we move into the next process we expect asp to be stable from the first half to the second half >> by the way, you can see more of the interview with ceo pat gelsinger on "tech check" at 11:00 a.m. >>> boston beer tumbles after they miss forecast they are cutting projections for the year citing weaker sales of hard seltzer the demand for the brand was overestimated. some stock was low or out of stock. >>> and finally, skechers second quarter results in sales doubled beating forecast the company says as people start to return to the office, demand is increasing for its comfortable shoes. shares up 9% in the extended trade. >>> still on deck, the nfl taking new action to tackle potential covid outbreaks. targeting unvaccinated players and their bottom lines we're back a

. >> that's ugly u i mean, you mentioned intel, gelsinger was talking about the chip shortage getting worse before it gets better, you had some price target cuts on intel this morning, which i saw your note that you passed around. you said it's a travesty were you talking about the quarter a traf psy or the fact that price targets got reduced >> >> no, no i just think that intel is trying to -- pat gelsinger, nice fellow is trying to be -- i don't know, andy grove he's no -- i knew andy grove he's no andy grove when you listen to him, he acts as if the problems with the semiconductor companies are what intel has. when we hear lisa suneck speak, we're not going to hear that we've got a bit of shortage but they're going to deliver i think pat had a shortage in earnings, got the wrong product. the company was being poorly run. you can't turn that battleship around in one quarter. if you're going to decide that intel is the semiconductor company of old, i'm going to tell you you're very ill-advised. i didn't like the quarter. i didn't like the way the quarter was presented. i don't like t

good morning is your call about global foundries being the wrong asset, or is this broader, pat gelsinger'sategy to push deeper into manufacturing? >> a little of both, i guess look, i get pat's push into manufacturing. it's sort of funny, the bull call on the stock four or five month ago was intel was going to go light and get out of manufacturing. pat kind of put the kibosh on that they have been building up or attempting to build up their own leading edge foundry business. part of the problem, though, is intel has not been a foundry they don't know how to be a foundry necessarily. if you're thinking about the way they could add to it, it would bring them a foundry customer base it's not leading, it's lagging it would bring them a customer base and potentially give them expertise in how to run a foundry, which historically, they have been bad if they don't know how to do it. at the same time, you know, if you think about the foundry, tsmc is really the only one, the 800-pound gorilla. they make a ton of money the other ones are kind of marginal and of the other players, umc, smick, global

well, they did we'll see if pat gelsinger can pull it off as well. lots to be seen there.na stocks, they are down again today the government crackdown sparking an extended sell-off, not just in tech, but for delivery, other industries, we have been covering it closely. here to talk more margins editor rajan roy. i wonder if you think there is any industries that might be safe from this crackdown we don't talk about a lot. but we know semiconductors have been building up capacity innovation there has been a larger priority for beijing. could there be some opportunities here >> thanks for having me here, deirdre. i do think hard tech versus soft tech is an important distinction here in the last week, the last week and month, china has gone after food delivery as you said. tencent announced they would not be allowed to sign up new users on their wechat platform due to a data privacy situation this is the biggest messaging app in the world these are all consumer facing apps that essentially provide some value in your leisure time, help provide some service in your daily life.

we will have a host of big-name guests starting out with pat gelsinger.talking about the earning results, his outlook on the chip shortage. we have been listening to his comments on their earnings call. there is speculation about a foundry related deal happening. he says he is not ruling it out here i will be speaking to the twitter cfo on the back of their strong quarterly sales and better forecast and you won't want to miss big tech tomorrow. we'll be joined by the spanish prime minister to talk about his visit to silicon valley. i'm emily chang in san francisco. this is bloomberg. ♪ in business, it's never just another day. it's the big sale, or the big presentation. the day where everything goes right. or the one where nothing does. with comcast business you get the network that can deliver gig speeds to the most businesses and advanced cybersecurity to protect every device on it— all backed by a dedicated team, 24/7. every day in business is a big day. we'll keep you ready for what's next. comcast business powering possibilities. (announcer) the core

we're going to have a host of big-name guests starting out with pat gelsinger.the earning results, his outlook on the chip shortage. we've been listening in to his comments on their earnings call. there's speculation about a foundry related deal happening. he says he isn't ruling it out . i will be speaking to the twitter cfo on the back of their strong quarterly sales and a better forecast and you won't want to miss big tech tomorrow. we will be joined by the spanish prime minister to talk about his visit to silicon valley. i'm emily chang in san francisco. this is bloomberg. ♪ >> the following is a paid program. the opinions and views expressed do not reflect those of bloomberg lp, its affiliates, or its employees. >> the following is a paid presentation furnished by rare collectibles tv llc. announcer: our country was founded on life, liberty, and the pursuit of happiness. representing this idealism is our american eagle. the bald eagle was chosen in 1782 to represent the united states because of its long life, majestic looks, and great th

pat dulcimer was speak -- pat gelsinger was speaking to emily chang.ullish tone when it came to the future. pat: we are bringing on the new factories which have yet to be depreciated and that is a normal cycle in the business as we bring on the costs at scale so it is very typical as we go through that and then they build up in the longer term, so overall, we feel comfortable with the margin profile for the business to return to levels not the industry would expect. this is very normal cycles but i would also say, hey, we are investing from long-term leadership and we are not apologetic about that. we are committed to be a growth company that is leading in technology and between r&d, capital, you know, we will make investments to have that occur. we have an analyst session at the end of the year but we will lay out that picture to the marketplace more clearly, but overall, we are not concerned about q3 margins. we are being more competitive. the products are being well accepted by our customers. we are exactly on the strategy i laid out. >> i want to t

huge moment of truth for the ceo gelsinger. what do you think expectations are going into results this afternoon? >> i'm not sure it's a moment of truth. it's important especially to see how margins are doing and color around supply in chips but we've got to remember, investors have to remember that also on monday, intel will be talking about process technology and the fabs and sort of their vision technologically going forward. now a lot of investors are waiting until november sort of the analyst meeting to form their opinions about where the stock goes from here this technology piece that we're getting over the next few days, partly in the earnings commentary and partly on monday is important for anybody trying to get ahead of whatever is coming i'm going to be talking to pat gelsinger today. you can see it tomorrow for insight on that, too that's particularly important here got to remember, they are up against a bunch of stuff not only the chip issues overall but tough competition from amd and nvidia and this foundry strateg

pat gelsinger and team, they reportedly want to make some big moves in the foundry business. >> well, deebo, i'm trading this as well, deebo that's a double trade and a double deebo, by my count that's about ten. listen, the struggles of the company are documented over the lat two years. what can go wrong has gone wrong and i think that's priced into the stock. there's much to do about the price pay for the foundry acquisition, but what i think ask more dangerous is them sitting back watching the walls closing in on them and doing absolutely nothing for the first time in a long time, there's a clear, cohesive strategy they're going forward, you know, given the tensions with china and chip shortages and the ability to keep that stuff in house domestically i think they're positioning themselves to take advantage of that i'm buying it on weakness. >> yeah. we will see. pat gel singer has an ambitious plan has anyone talked to guy adami i think he'll take credit. coming up guys -- yeah >> you know, i appreciate you actually referencing deebo and adding to the totals on your own. thank you

for its worth days since january there are clear challenges as well, such as chip shortages pat gelsinger say the supplies will be limited after that half, as are the company's effort too build chips. there's rumors around the pursuit of globalfoundries he did talk with our own jon fortt how he seems the m & a landscape. >> it's going to be heart to be a small player you just won't be able to keep up we expect consolidation in the future we're not going to address any specific rumors that might be in the industry, but we're a big player, i expect to be a consultor, now, some analysts say they can understand the strategic place for globalfoundries in theory, but think it would be a tough sell for regulators. >> down about 6% oar so today for intel, the quarter not being taken well by the investment community. >>> shares of boston beer are getting crushed, up next, the company's ceo will join us to weigh in in that space you're watching "closing bell" on cnbc. ♪ when i was young ♪ no-no-no-no-no please please no. ♪ i never needed anyone. ♪ front desk. yes, hello... i'm so... please hold. ♪

you'll get a lot of heat, how do you expect to do it in 3 d also coming up, we have intel ceo pat gelsinger. stay with us it's another day. and anything could happen. it could be the day you welcome 1,200 guests and all their devices. or it could be the day there's a cyberthreat. get ready for it all with an advanced network and managed services from comcast business. and get cybersecurity solutions that let you see everything on your network. plus an expert team looking ahead 24/7 to help prevent threats. every day in business is a big day. we'll keep you ready for what's next. comcast business powering possibilities. >>> chinese education tech names are getting hammered this morning with some stocks down as much as 50% take a look at that board. bringing in eunice yoon. where and when would this crack down stop but it seems to be engulfing more sectors >> that's right. just in the past couple hours, five companies, tal, new oriental, wyq, cme. largely saying the regulations have not yet been announced. the companies have not received any formal communication quoting the document and sayin

shery: pat gelsinger there.will have plenty more to calm on "daybreak asia -- two, on -- to come on "daybreak asia." this is bloomberg. ♪ [ "me and you" by barry louis polisar ] ♪ me and you just singing on the train ♪ ♪ me and you listening to the rain ♪ ♪ me and you we are the same ♪ ♪ me and you have all the fame we need ♪ ♪ indeed, you and me are we ♪ ♪ me and you singing in the park ♪ ♪ me and you, we're waiting for the dark ♪ >> this is daybreak: asia. i'm vonnie quinn. at least six mainland china listed companies made exchange filing sunday after beijing cracked down on for-profit afterschool tutoring. a day earlier, beijing unveiled sweeping overalls of the $100 billion education tech sector, banning country -- banning companies from teaching school curriculums from going public. u.s. and china are such a hold the highest level talks since march. the deputy secretary of state will meet the foreign minister on monday in china. the minister warns the u.s. must learn to treat other nations equally. the whit

we will talk to ceo pat gelsinger about why a recovery isn't taking hold. in the equity market. you did have very solid pmi's. we will get to whether that is durable or if it

gelsinger. >>> coming up, cruise stocks getting a lift from news north of the border.hey remain among this month's worst performers we'll look at what's ahead for cruise lines as the delta variant spreads and vaccinations slow down. >>> taking a look at futures as well at this point in time still green across the screen. dow up about 61 points or implied to be open about 60 points at this point in time more "squawk on the street" from the new york stock exchange strahthe ig aad icy hot. ice works fast. heat makes it last. feel the power of contrast therapy, so you can rise from pain. i think you're going to like it here. umm, why is everyone... throwing things at me? look, as cfo it's my job to be ready for whatever's next. that's why i have my finance team, randomly hurl things at me. it's also why we use workday. it gives us insights, so we quickly pivot our strategy, people, planning, you name it. sorry, sir. i will aim straight at your next step. see that you do. would you like some coffee? workday. the finance, hr, and planning system for a changing world. ♪ the w

fabs when i see fab buildout plans i worry about oversupply and falling prices in the future pat gelsinger tells us not to worry about that because the plans are going to be so high. are you feeling that >> with respect to fi5g in the mobile space, it is a strong driver in growth 5g smartphones need more memory and need more storage in them, each of those phones and certainly if you look at year over year smartphone sales expected to increase double digit numbers. so pretty solid unit growth, content growth in smartphones and 5g smartphones, nearly 500 million phones doubling from last year. so mobile continues to be a large market, 5g is a driver not only in mobile, but actually on the intelligent edge as well, creating data solutions and data as well as micron products with respect to the fabs and the capacity, we are extremely prudent in terms of how we grow our supply we want to grow our supply in line with the long-term demand trends and, jon, we discussed on the earnings call yesterday we're seeing shortages across all end market segments, we see supply in the industry being short th

to a drop in gross margins from 59% in q2 to q3 relating to costs and building chips the ceo pat gelsingerrt showing signs of easing later this year. he said it could take one or two years to get back to reasonable supply and demand balance in the chip sector. >>> broader markets are setting to close out in positive territory despite the monday sell off we will get information from google and amazon and microsoft. joining us right now is kari firestone from asset management and mark smith, portfolio manager at wells fargo advisers. kari, i'll start with you. it has been a wild week. now it seems like a head fake on monday which way the market was going to go. what are you expecting to hear next week and how are you positions yourself >> well, it was weak ending better than started. it has calmed down with the delta variant and the inflation pressures on the stocks last week consumer products like food and chemicals. you see today the intel pressure is because of the supply chain and costs and technology companies don't seem to have those pressures. they pay high wages and high profit margi

how does that position intel could there be more for pat gelsinger to look at while amd continues tous that seems to work for them? >> i think intel was always about that combination of design and manufacturing. where even with amd, when they had global foundries wasn't their strong suit in the same sense. look what global foundry makes now. not that level of process technology where intel is trying to get and tmsc and samsung are. makes sense for amd to split that off for intel, one could argue especially given supply constraints snt industry right now and what intel needs to do going forward maybe sdoent have a choice go big and compete beyond just head-to-head we amd, because, hey. i mean, they've got to do well in a lot of things going forward. >> yeah. there you said it. maybe they don't have a choice amd shares up more than 5% this morning. >>> julia, also monitoring the ftc chair testifying in front of congress i hear it's already become a little fierce? >> well, that's right. now, this is the first time we've heard lena cohn speak in an official role, testifying before the ho

this is according to the "wall street journal", it comes as intel's ceo pat gelsinger has promised toike this seems almost certain to be a huge distraction the companies declined to comment. >> mike, what does the market think about this deal? what is the general narrative? >> it's tough to see a read. intel did open higher, and nvidia is down 4%. amd down just about as much, but i think in general there's an apprehension, a debate around the professed intention to do more manufacturing, and essentially ramp up their ability to actually do this. they already spend a ton on cop exevery year, so i think the idea that intel need to do something bold is not necessarily controversial. i think there's some benefit of the doubt with the new ceo here on how he wants to carve a path. definitely would be, you know, enough risk involved in a big deal like this to merit a bit of concern, because, you know, there's not a lot of track record for this on intel's part. >> anastacia, do you like chip stocks >> they've been under pressure today. i do like this as a potential entry point. you know, the

the new ceo, petco sumer -- pat gelsinger expects the global tip shortage to bottom out.quarter numbers went beyond estimates. it is expecting revenue to be up to $1.3 billion as global events like the olympics drive up advertising. twitter added 7 million users in the second quarter as gold sales jumped 74% to $1.2 billion. it is a long way from the crisis a year ago when many brands pulled out at the head of the pandemic. snap sales more than doubled to $918 million in the second quarter, way past estimates. -- $982 million in the second quarter, way past estimates. users were agreeing to tracking more than its peers and that benefited from a digital advertising and e-commerce boom during the pandemic. bloomberg learned the carlyle group is seeking to raise as much as $27 billion for its latest flagship fund in what would be the industry's largest ever private equity poll. discussions are ongoing and the total size of the fund could change. it would be 46% larger than its 2018 flagship and break the $26 billion record held by blackstone from 20, shery. shery: take a loo

look at that stock when lisa sue, when gelsinger came on "mad money" and was basically saying, listen, we've caught lisa sue, she didn't come on air ask nd say, hey, no, tha not the case she just said, you know what, i'll just keep doing my job and let's see what happens. >> this is the part of the show where i tell you how well you've done in terms of recommending both these stocks for at least the last five, seven years can we put both -- i'd love to see amd versus nvidia five years. >> that's a foot race. >> that might be a foot race. >> can we do that? >> look at that. >> of course when lisa sue came in. >> there they are. wow, they actually are fairly close in -- >> they're two of the greatest companies in america >> say what you want, but jim, you've been dead on. you haven't let off. by the way, even -- remember when they owned a lot of nvidia and they sold it. >> a lot of people may have made mistakes selling nvidia along the way. >> not me. when our dog nvidia died, i got another dog, nvidia the second and by the way, the past for nvidia the second is coming. i got a snapshot

but pat gelsinger continues to take bull action he is, yes, full of sound and fury and signifying -- nothing? >> macbeth holds up like you wouldn't believe you know -- >> we'll see if qualcomm holds up very wives of windsors does not hold up. >> remember, you can always catch us anytime anywhere, listen to and follow the "squawk on the street" opening bell 'rba aerhit. wee ckft ts. there's interest you accrue, and interests you pursue. plans for the long term, and plans for a long weekend. assets you allocate, and ones you hold tight. at thrivent, we believe money is a tool, not a goal. and with the right guidance, you can get the financial clarity you need, and live a life rich in meaning, and gratitude. to learn more, text thrive to 444555, or visit thrivent.com. it's a wishlist on wheels. a choice that requires no explanation. it's where safe and daring seamlessly intersect. it's understated, yet over-delivers. it is truly the mercedes-benz of sports sedans. visit your local mercedes-benz dealer today for exceptional lease and financing offers. . >>> welcome back let's give you a