leslie picker, thank you.ry for sure. >>> coming up on the show, why your next guest says gold is a hedge against uncertainty. >>> if you haven't done so, follow our podcast. check us out on apple or spotify or your podcast app of choice. we'll rhtac beig bk. is it possible to count on my internet like my customers count on me? it is with comcast business. keeping you up and running with our 99.9% network reliability. and security that helps outsmart threats to your data. moaire dida twoo? -your data, too. there's even round-the- clock customer support. so you can be there for your customers. with comcast business, reliability isn't just possible. it's happening. switch to reliable comcast business internet with security and get started for $49.99 a month. plus ask how to get up to a $500 prepaid card. call today! >>> welcome back to "worldwide exchange." time for the "wex wrap-up." a panel of brazil supreme court justices voting to hold a ban on x. the president da silva saying his country should serve as an

leslie picker. with brian moynihan to phil lebeau and what's happening with tesla today? is at levels we haven't seen since july 22nd. there are three catalysts on the horizon. next week we will get the q3 deliveries, october 10th is the robotaxi unveil, and later in october you get the q3 results. there's no guarantee any of these individually will push the stock higher, but keep in mind, we often see shares of tesla move higher ahead of big events like this. scott, back to you. >> phil, thank you. phil lebeau. back to mike santoli. tesla is higher by 5%. mixed elsewhere. nvidia was red for much of the day. it's turned positive as we edge towards the close. >> and lots of differentiation among even the big tech stocks. i think that's probably healthy. we kind of have weaned ourselves off reliance on those stocks. nvidia first got to today's stock price the first week of june. from that point on to here it's been almost four months, the s&p is up 1.5%. it couldn't have done without nvidia going to the moon. since then it's answered the complaints from a lot of people that

longer term, the environment is more supportive as leslie picker reports. >> reporter: there is someomplexity with how rate cuts impact the banking industry. in the near term, rate cuts can actually be a net negative for them. loan yields priced downward more quickly pressuring margins. the first cuts do little to alleviate asset risk. over the long run with loan refinancing stabilize according to moody's. capital markets volumes rebound and the environment should become more supportive barring anytime of recession. histo historically, investors are looking past the short-term noise. rallies in the first three months following the cut which is reflected in some of the action leading up to the decision to cut rates earlier this week. for cnbc business news, i'm leslie picker. >> our next guest says recent rate cuts provide more confidence in pricing and narrowing margins with c conf confidence. johnny myers is joining us now. johnny, it was a huge decision this week. some markets were not looking for a jumbo sized rate cut. in recent years, that notion has changed. what is a jumbo siz

leslie picker. to seema mody and two big swings in the chipmakers.s first start with micron. wall street playing catch-up after the memory chip player surprised the street with better than expected numbers in guidance. morgan stanley raising price target from $100 $114. wells fargo to $175. ceo telling cnbc the power of a.i. and pivot into high band-width chips which he sees growing into $25 million market next year, up from $4 billion in 2023. >> a.i. is a great story. frankly, not only in data center. as you look ahead at smartphone and pcs, a.i.-enabled smartphones and pcs are going to require more memory content. so as we go clue calendar year '25, accelerating in the second half of calendar year '25, you'll see smartphone and pcs also continue to drive strong demand for memory. >> micron on track for its best day since 2011. super micro, they are being investigated for accounting violations. it comes a month after hindenberg research published a report accusing the company of accounting fraud. so far, super micro denying any wrongdoing. you'll s

>> leslie picker will be with us.we will look at the s&p 500 winners and losers. >> whyidt u ller dn'yoca h? >> announcer: executive edge is sponsored by at&t business. next level moments need the next level network. but all you did was plug it in, you didn't do anything neither did you exactly exactly exactly exactly impressed? honestly, a little exactly (slurp) ♪ ♪ ♪ ♪ at pgim, finding opportunity in fixed income today, helps secure tomorrow. our time-tested fixed income suite, backed by over 145 years of risk experience, helps investors meet their goals. pgim investments. shaping tomorrow today. >>> welcome back to "squawk box" live from the nasdaq market site in times square. checking the futures this morning. they're weak. not that weak, but some trepidation, you might think, after the entire week's been weak. i keep saying weak. there is a big jobs number coming and there is a bit of anxiety about that after adp and after some of the other metrics that we've been watching the past couple weeks. we'll know by 8:3

leslie picker has that story next., first got to be good tennis players, then be a star, brad gilbert joins us to discuss the business of tennis and he loves talking about stocks. investing for decades. "squawk box" will be right back. >> announcer: time now for today's aflac trivia question. 53, atstarting production in 19wh is the only year the corvette wasn't produced for the public? the answer when "squawk box" returns. good thing i had aflac. (aflac duck) hmmm the cash i got from aflac helped pay for medical expenses, groceries, rent. it really helped close that gap. (whisper) go, go, go! (group) yay! go aflac! go duck! get help with expenses health insurance doesn't cover. find an agent. get a quote at aflac.com. wish we had aflac on our team. you can! (♪♪) what is cirkul? cirkul is the fuel you need to take flight. cirkul is the energy that gets you to the next level. cirkul is what you hope for when life tosses lemons your way. cirkul, available at walmart and drinkcirkul.com. >> announcer: and now the answer t

leslie picker is tracking that action. what's it mean for them, leslie?ghs are largely in the asset management space. banks higher on the news as well even though rate cuts are a net negative for them. the first few cuts tend to do little to alleviate asset risk. will there be some relief for commercial real estate loan refinancing, according to moody's. in the long run as deposit costs to decline and capital markets volumes rebound, the environment should be more supportive barring any recession. historically investors have been willing to enjoy a look through the short term noise. according to wells fargo research, rate cuts in no recession have had bank stocks rallying in the one to two weeks after those cuts. guys? >> leslie, thank you. leslie picker. on the regional banks, which are rallying big time. here's our road map for the rest of the hour. the fed cutting rates for the first time in four years. where to put your money to work from here. >>> we'll take a closer look at the state of the private markets and the public markets with apollo global c

he's standing by with our leslie picker in boston today. >> good morning.so much for being here. when you were onness in, you said the fed could be late in cutting but you would know more after the fact. so now that we have seen that move, are your concerns ass assuaged? >> it's a good start. i think our team increased the rate cuts early on. at the end point, our team was 3%. it's realtime consumer data in the month of september, it's a stabilizing of the spending rate around 4.35%, consistent with a low growth, low inflation environment, where it was in '17, '18, '19. they have to be mindful that if they really want a soft landing, they have to make sure they stay ahead and get the real rate structure down. the real beneficiary is business. the change in rates to borrowing basis, it goes through small and medium size businesses will be a big benefit. it goes right through the index last week and they will get the benefit this week. that helps them feel better about the future. >> can you help distill down this idea of 75 basis points in the fourth quarter

there are macro concerns let's send it to leslie picker for what else may be behind it. >> the conversation you were having is a segue to the banking sector today, j.p. morgan facing the largest declines in the big banks. in new york, saying consensus for net interest income is quote a bit too high that metric for loan making is impacted by rate changes which can alter loan demand and the amount banks must pay out for depositors j.p. morgan's ceo this morning said whether the fed cuts 25 or 50 basis points doesn't matter much. he's more focused on the economy. >> recessions drive -- banks are canary in the coal mine, you could see banks enter the red zone i hope that does not happen. i see a lot of banks fixing those issues today i hope they're focused on fixing issues they knew about, but they missed the biggest one, interest rates. hopefully it'll be okay. >> bank of america shares lower after ceo brian moynihan saying at that conference that nii would grow in q3 as delinquencies stabilize. he spoke to sara eisen mirroring jamie dimon's apathy saying what matters is where rates end up in

leslie picker has more on that. note calling the sector a no-man's-land and they moved ratings around without changing a number on a single one. >> that's right, carl. this is essentially an inflexion point for banks, and a lot of people have been very excited about the sector for the last few months or so. the prospect of a soft landing coming into a much clearer view for them. the flattening of the yield curve and all of that bodes well for banks especially for investors who are on the sidelines wondering if that would be a very big headwind for the bank. when a soft landing came into clear view the prospect of rate cuts without a hard landing and all of that, you know, brought more investors into the fold here. now you've got some analysts who are saying with all of this bidding up, things are starting to look a little bit rich at these levels and so j.p. morgan down a little bit today. last i checked it was 1.7% there we go, 1.7% for j.p. morgan as investors are reassessing in september their positions and what

here with more on this announcement, leslie picker. >> hey, tyler. yes, we're actually joined by pete stavros joining us from an event where kkr announced a deal. he is the global co-head of private equity at kkr. thank you for joining us. you announced this deal today to sell geostabilization international to leonard green, a return of five times the equity invested by kkr. you're at this company event in denver where you announced that all 900 gsi employees will receive payouts with the most tenured getting $325,000 each. the average wages for these workers is about $80,000 per year. what were their reactions like at this event? we watched some of the footage coming in and heard one person say, for example, very excited, they could buy a new car and this is going to help them get that new car. >> well, it took a minute for the news to settle in. we have over to my right here, there was a table, we handed out envelopes where people actually got the specifics of their payout and what the math meant for them individually. your comment about the car, p

leslie picker.ial services conference where i will interview the ceo of barclays next hour, they're going to be subject, they have a big u.s. credit card and consumer business to some of these rules and later in the day, brian moynihan, bank of america ceo what he makes of the new basel iii rules and what he sees for the economy and the changing interest rate environment that's going to be at 2:30 eastern. that's one of the big discussion points beyond the bank regulation, what we're looking at in terms of an economy that has softened but thought to be in a soft landing and an interest rate environment thought to be changing toward easing but not a typical easing cycle. we heard on stage a few minutes ago from jpmorgan's president daniel pinto who said the economy is still doing okay, just behind me, but it's interesting to contrast that with what his boss jamie dimon said at the institute of financial, sounded a little more cautious listen. >> the worst outcome is stagflation. recession with higher

and so, finance of banking reporter leslie picker is here on set.g with the intriguing story of the rise of the credit union. >> it is intriguing, brian. >> so dramatic i made that? >> i love it because there is this kind of under the radar evolution taking place. if you recall, credit unions were established about 150 years ago in rural america. throughout the last century, credit unions have operated as nonprofits, exempt from most taxes. however, recently they've scaled to the point where they're buying billions in assets from community banks. a record trend that's become controversial. critics say credit unions tax exempt status gives them an m & a advantage and their scale no longer justifies the 21 billion subsidy they enjoy. >> there's something wrong with what are essentially nonprofit organizations buying tax paying commercial and profit making organizations. and i think it's time to re-evaluate the tax exemption that credit unions now have. because they're no longer these self-serving or membership serving organizations. they're growing an

leslie picker is joining us. >> reporter: gobbling up community banks at a record clip. rural america for those without access to traditional banking. throughout the last century, credit unions have operated as non-profits exempt from most taxes. recently, they scaled to the point where they are buying billions of assets of community banks representing a quarter of deals. the tax-exempt status gives them an m&a advantage and the scale no longer justifies the taxpayer subsidies. >> there's just something wrong with what are essentially non-profit organizations buying tax paying customer and profit-making organizations. i think it's time to reevaluate the tax exemption that credit unions now have because they are no longer the self serving or membership serving organizations. they're growing and expanding and essentially commercial banks. >> reporter: the credit unions say the tax-exempt status allows them to charge less for loans and pay more on deposits than traditional banks. doing away with the tax-exempt status would have impact on the gdp and jobs. the administrator

we will have more later this hour with leslie picker. this is something the banks in a pretty rare form spoke up pretty -- very vociferously. it would hurt the competition and the banks and ability to lend and hurt us in the long term. this is what you see. i wonder what they think about the 9% increase as well. >>> goldman sachs ceo david solomon giving investors a note of caution yesterday. goldman will post a $400 million pre-tax hit as it unloads its gm credit card business. solomon warned trading revenue will fall around 10% in the quarter and what he said was a challenging macro environment particularly in the month of august. analysts had estimated a 6.6% decline in the trading unit. that's a little bit more than that. stock, meanwhile, is up more than 25%, year to date. >>> this is you. norfolk southern. >> that story continues as wealth. this is a fall up to the story we brought you yesterday. the wall street journal reporting that ceo alan shaw could depart this week. the board was conducting an investigation into the alleged r

let's get over to leslie picker who has news on wells fargo for us. >> take a look at shares of wellsebruary of this year on a headline report showing that there could be momentum on wells fargo's quest to get rid of that asset cap that has been in place for the past seven years. something that analysts and investors have been parsing over any progress on that front because it would -- it has essentially been a drag to earnings as it limits the size of this bank. as i mentioned it is a -- has been a seven-year process, but according it a report in bloomberg which is citing people familiar with the matter the firm has submitted a third-party review of its risk and controls overhauls to the fed for the central bank's analysis and sign off and that follows a years long process in which wells fargo has had to submit a plan and get it accepted which took a few tries and then enact it and hire an outside auditor. the report says that they expect the executives at wells fargo expect to see that cap stretching into at least next year and there's a lot that needs to take place before the final

. >> meantime, carlyle's ceo harvey schwartz talked about the state of the economy with leslie picker coming. >> right now when we look at our portfolio data and the factors that affect the economy locally here in the u.s. and obviously globally we see a vibrant economy. it's definitely one that's cooled. monetary policy has worked. the fed has done an amazing job with a complex set of circumstances but we see three cuts by tend of this year and perhaps a pause. economic activity should stay robust, activity levels should continue to pick up and maybe one next year. >> let's get more color with jim bullard, who was with the fed. jim good to see you, happy fed day. >> happy fed day. exciting in the world of central bankers. >> earlier in the year you did say three cuts was your base case. has that been changed in recent weeks? >> no. i think they should go 25 today and signal 25 at subsequent meetings. i think the case for 50 is overblown here. you have a pretty robust economy. you were just citing the atlanta fed gdp now 3% we got an upgrade from the second quarter of 2%. so pretty fa

i'm carl quintanilla with david faber and leslie picker is here with us at post nine of the new york assignment. just off of all-time highs today. s&p, of course, coming off of record highs yesterday and holding on to gains for the week. up five weeks in six. russell was going to try to go for eight straight but down just a touch. >> what a week it's been. we're 30 minutes into the trading session. er here are three movers. nike a top gainer on ceo john donahoe is out and replaced by 32-year nike vet elliott hill. what it means for investors and the struggling stock in just a moment. those shares up nearly 7%. fedex the shares are slumping, missing estimates and cutting its outlook, because of weaker than expected demand particularly in the u.s. the shares down 14.7%. and check out shares of constellation energy soaring this morning. the company planning to restart the three mile island nuclear plant and sell power to microsoft for ai. constellation expects the reactor to come back online in 2028 subject to approval. three mile island was the site of the biggest nuclear accident in t

and leslie picker is there and joins us with a special guest. ith carlisle ceo harvey schwartz. first cnbc interview since taking the job as ceo. so really appreciate you joins us today. >> really excited to be here, leslie. >> and very important day for the markets. i think you have a unique perspective here, we're of course awaiting the fed decision on rate cuts and the potential magnitude of those. what do you think the economy needs right now given where you sit atop of $435 billion behemoth, as well as conversations from those attending today's conference. >> yeah, here at the conference we have in excess of 400 of our global investing eclients. we have come together for a couple days. really focussed on the big themes that are driving markets for the next decade. changes -- really paradigm changing shifts. you know, the shift in globalization. the shift in inflation and interest rates and things driving. the fed up today is giving a tremendous amount of focus. what the fed does today is not really the most important thing for how we think a

leslie picker is here with more.y explain why we saw 50 basis points over 25. the timing of the 50-basis point cut is important because of something called the maturity wall on the bank loans. according to the st. louis fed, there's about $1.7 trillion of cre debt coming due between 2024 and 2026. i'm told much of that ramping up at the end of this year and next year. unlike residential real estate, commercial has shorter terms. a borrower refinances the balance rather than paying off the lump sum. as you can mcan imagine, refina rates are higher than five years ago weighing on the borrower. conversations with troubled lenders are happening now. i'm told a 50-basis point cut opposed to 25 moves the needle for them to come to agreement. banks wcan afford to take a few hits now. this doesn't mean the worst in cre is behind us. delinquencies are rising and expected to do so in office where vacancy rates are at highs. now there is light at the end of the tunnel assuming the broader economy holds up. that is why regional