jim taylor of lockheed martin, thank you so much for joining me, guys.ays great morgan. bye. >> great interview morgan. thank you for bringing it to us. we are back right after this. are back right after this. >> catch the power e*trade's easy-to-use tools, like dynamic charting and risk-reward analysis, help make trading feel effortless. and its customizable scans with social sentiment help you find and unlock opportunities in the market. e*trade from morgan stanley. ♪♪ with powerful, easy-to-use tools power e*trade makes complex trading easier. react to fast-moving markets with dynamic charting and a futures ladder that lets you place, flatten, or reverse orders so you won't miss an opportunity. e*trade from morgan stanley when i started walton goggins goggle glasses, i had no idea what i was doing. but godaddy airo does. using ai to build a logo, website and social content. so i can let the world know, if your goggles ain't goggins, they don't belong on your noggins! mile away. welcome to our world of extraordinary hydration science. we've been busy a

. >> lockheed martin, raytheon and northrop grumman. >> all of. them in. the red. >> northrop grumman essentially flat though right now. >> we're going to hear. >> much. >> more about this when cnbc, cnbc. >> speaks with the ceo of lockheed martin. at 2:45 p.m. eastern time. that's coming up. later today on cnbc exclusive. >> we want to. >> turn to the treasury market. >> bond yields. moving just a bit lower. after the release of fed minutes yesterday. >> seen as. >> hawkish with all fomc members voting for a pause. we're seeing the benchmark. >> right. >> now at. >> 4.52% and. >> a quick check of. >> the energy sector. we want to start off with oil as we always do. take a look at. >> the moves. >> in oil. >> oil moving very. >> fractionally higher wti. >> crude up fractionally. >> brant crude. >> up. >> fractionally as well. >> the important thing here is. >> both are above key sentiment levels. >> of 70. >> bucks a barrel for wti. >> and 75. >> for brant crude. >> a lot more action when it comes to natural. >> gas pulling back about. >> 2% right now. >>

l3 from missile capabilities and how about defense for drone manufacturers and then of course lockheed martin for the work they do with the u.s. navy. >> first quarter season kicking off. charles: the earnings and you know you say that the small banks will come up as well. >> yeah, there's less regulatory oversight that leads for more consolidation and mna activities and playing the regional banks is a positive for them in this new environment. charles: not concerned that the rates are too high still for the smaller bank s? jazz a >> >> as long as they don't go higher but lower. charles: expect more short term volatility and get it like this and every every now and then headlines and coming right back. we haven't had a long period of extreme volatility for a long time. are we getting too comfortable? >> we are absolutely getting too comfortable and in 2024, the days that moved lower and 57% record closing and trading above the 5 and 10 year averages and shouldn't be expected to continue and short term bouts of volatility and attractive entry and revisit their asset strategies and build them d

i mean, that is a lockheed martin product, that fifth generation fighter jet. it's extraordinarily expensive. and it's something that elon musk has targeted for criticism in the past. and elon musk is somebody who sees himself as knowing a thing or two about aviation, as like the only person in the world who can land a rocket. he knows how to build aviation products cheaply. and he looks at the f-35 and he says, what is this? why is this costing so much? well, i'd watch that one as sort of a bellwether, right? i mean, i think what you might see is a couple of an effort to, to trim a couple of very high profile defense systems in order to show that they're serious. >> if i may quickly pile on that. and with all due respect to eamon, as well as elon musk, who is far smarter and wealthier than i am, you know, the f-35 was just offered by the president to india. the f-35 was used to great effect to essentially denude the iranian the iranian air defenses. by and large, any pilot who flies the f-35 will not go to war on anything else. so it is an expensive capability

so what the defense department will do, they would introduce us to people like lockheed martin, to raytheonpanies like that that would turn our product tesla and those companies will be using from apple, even meta and all those are formed from the rare earths that are on our property. for want of a better word, because you could sort of name your price, couldn't you? that you've got access to this valuable reserve that no—one else has. "don't sell it to them. sell it to us." look, um, the interesting thing about mining is other people find... eight years ago, no—one really was mining lithium. the same thing will happen with rare earths. we're in a very good position to seek a subsidy. um, for example, rare earths is that important, the australian government has never done this before, they gave in western australia. the us government under biden had 1.5 billion earmarked for rare earth projects in the west, mainly the united states. there's two or three up—and—coming ones there. we know where it is. it's relatively cheap to extract. it's relatively... it's very environmentally friendly. a l

so what the defense department will do, they would introduce us to people like lockheed martin, to raytheon, spacex, tesla and those companies will be with their ai industries booming. they need to obviously have superconductors, chips and the like, and all those are formed from the rare earths that are on our property. it strikes me you're in a really powerful position, for want of a better word, because you could sort of name your price, couldn't you? no—one else has. "don't sell it to them. sell it to us." you could pretty much name whatever price you want, couldn't you? look, um, the interesting thing about mining is other people find... when it does that, all the other explorers go out and find lithium, and it's come back down to $1,000 a tonne. the same thing will happen with rare earths. position. the australian government has never done this before, they gave $1 billion to an australian company the us government under biden had 1.5 billion earmarked the united states. there's two or three up—and—coming ones there. the advantage for us — ours has been drilled. it's relatively cheap t

us the the phone for a show on the largest in the well global weapons giants like be a systems lockheed martin and they have us come to show all the latest military hardware, the billions of dollars of civil and military deals with done here every year. standing shoulder to shoulder with these global military giants. israel's hot weapons manufacturers like israel, aerospace industries, and me. so mike is raphael in the main whole, israel's largest private weapons company. elmwood has a huge stand. they needed to showcase the world class drones and missiles the spot, it's tiny population. israel is the world's 9th largest weapons producer pardon these high bunch of promo these for the trophy. and so i, me sell system made by is riley company, rafael, which is the kind of advanced technologies rel, specializes in and makes these riley mix for tank, found the best on the market, automatically activated only one enemy, funny to reassure, to hit the vehicle both tank and energy me sell system is still around the will and disclose clients for the randomly your overall is rel, exploits molden. $13000

speaking of defense, don't miss our exclusive interview with lockheed martin ceo jim taiclet next hourwer lunch. that's around 2:45 p.m. eastern. and still to come, it's not just palantir defense stocks across the board are getting hit on possible budget cuts. the ishares aerospace and defense etf having its worst day of the year. the dow is at session lows, but gold prices are continuing to march higher, hitting a record high just below $3,000 as the president says he plans to audit the u.s. gold reserves kept at fort knox. here's what former treasury secretary steven mnuchin told us this morning about his trip to the facility. >> the gold. >> was there when i. >> visited it. >> i hope nobody's moved it. i'm sure they haven't. i was the first. treasury secretary to go there, and i think over 50 years. >> there's very. >> serious security protocols in place, obviously to protect the gold that i can't talk about. but we went. >> we saw it. >> and i. if president trump wants it to be audited, that's obviously. obviously. >> something that can be easily. at&t has a new guarantee. because

then comes straight back to the us because the main beneficiaries of this, all companies like lockheed martin, caterpillar will look for these almost boulders as themselves. so that creates jobs in the us as well. but this is one of those discussions. well, yeah, sure. which is always in a bubbly under the surface on both sides. democrats, republicans, progressives. make america great again. but why is america spending all this money on his right? because the argument is job is at home, but also, you know, as well as job i would say if we didn't have is read them at least then american would have to invent. and it just a soft, strategic importance. what is that still the case for the republican foreign policy? i think is that's another question on that story continues. of course, we'll continue to follow up with you as time progresses. shepherd sensitive force in washington. thank you. now the us deputies special envoy to the me, lee says, has blog, must not be part of levels new government speaking. yes. amazing. the lebanese presidents and they root logan will take it, said washington has s

meanwhile, you've got companies like lockheed martin, raytheon that have very sophisticated systems,ies are using those systems like in the u.k. >> that's right. most importantly, you've got to have the right people at air traffic kohl. air traffic control is short staffed, and i think the elimination of dei hires and policies will allow us, actually, to hire the air traffic controllers we need. the software point is really important though because we know if you looked at these old, antiquated air traffic control systems, it really does look like a video game that's 30 years old. we've got better software. we need a federal government that's more responsive to the technology that's out there. and i really do think that that with president trump's leadership we're going to have those near misses and those almost terrible tragedies, those are going to come down which means our aviation system's going to be much safer. maria: let me get into the cabinet nominations. you were the deciding vote on pete hegseth -- >> proud to be, yepment. maria: -- for defense secretary. what can you tell

pressure was put on defense contractors lockheed martin for example stood strong. they're here. apple is here. google is here. so at a time when we need the most technical talent for our military to remain strong, we've just said to an entire generation of kids, no matter how hard you work, no matter how brilliant you are, there's no place for you. let me read more of the people who pulled the overreaction. >> let me read out more of those who pulled out here. the cia, national security agency, national oceanic and atmospheric agency, as you said, nasa from the private sector, spacex, booz allen hamilton, naval nuclear laboratory, all withdrew. let me read this from the military.com on this decision. the same army recruiting unit that would have attended bay instead participated in a national rifle association sponsored event in harrisburg, pennsylvania, a predominantly white gathering that recruiters acknowledge is less likely to yield high quality applicants. your reaction to that? >> yeah, it's true. i mean, and that's the signal that we don't want to send to our best and bri

and its makers at lockheed martin. idiots. trump likekes the fhter.lling it invisible and just offered to sell it to india. both musk and trump have promised big cuts to weapons systems. not necessarily bad news for generals at the pentagon. number of weapo systems the u.s. military doesn't want. but congress keeps approving it, perhaps because the factories are in their district. very interesting. thank you. scott. okay, we're switching gears here. we're talking about the big five zero. arriving this weekend for saturday night live, the iconic tv show celebrating 50 years of laughter. and there's a big concert tonight and a live three hour special on sunday. nbc's mark barger joins us now live from new york, with a look at what audiences can expect and mark 30 rock, no doubt abuzz with anticipation today. oh, absolutely. i was in the building the other night at about midnight, wandering through, doing my business, and i saw colin jost just going through the hall. so obviously these folks are working long hours getting ready for the show on sunday nig

to do, because we listened to morgan brennan's excellent interview with with jim taylor from lockheed martin the enemy. work with them. but the idea is they really have been the enemy. and i will point out that they have said over and over again that the concentration of a few defense companies has made it so. the defense department is ripped off. so by no means do i think that palantir is out of the equation as being a fighter of waste. i thought that for sure that because of their close relationship with musk, that they would be tapped by doge to come in and help. that has not happened, right? >> there were some screens. yesterday floating around morgan stanley looking at tech companies presented revenue from government. palantir is at the top on large. >> cap. followed by microsoft. >> and servicenow. but i think yes. >> oh no pound pound here that karp would tell you that when you bring them in, they start saving you money and they start doing the right thing. and he's vociferous about it. we don't really have the data. we know international is actually bad for them. and that is a substa

. >> speaking to our us colleagues, the ceo of defense firm lockheed martin said lessons should be learnedar in ukraine. >> i hope the conflict ends fairly and quickly, but the lessons from it, i think, are, for better or worse, are going to live on. we need to get more effective at national defense. that's the real lesson, i think, of the ukraine war. we just weren't ready four years ago, 3 or 4 years ago, to really meet a challenge like this. and that's the big learning. >> european defense stocks have seen sharp weekly gains with the stocks. aerospace and defense sector posting its biggest one day jump since the start of russia's full scale invasion of ukraine, as traders bet on further european defense spending. you can see on your screen there some of the big movers of the week. tesla is up more than 10%. bae systems up 4%. mattel up about 10%. so it really has been an extraordinary run for these defense stocks. let's welcome our next guest, joseph brusuelas, principal and chief economist from rsm to talk through the sector. joseph, before we get into various asset price moves, i'm ke

she stopped mergers at nvidia, lockheed martin and hca healthcare.he took action against companies like grubhub and lyft for misleading workers. she sued pharmacy benefit managers for artificially inflating the price of insulin. the aggressive antitrust position made lina khan very unpopular on wall street, but it was some of the most robust consumer protection from the ftc in decades. and lina khan, the former chair of the federal trade commission, joins me now. thank you for being with us. >> great to be with you. >> i just want to underscore this point. in many cases, the things you were doing were laws that were on the books meant to protect americans that were simply not enforced in previous administrations. in some cases. >> that's right. the antitrust laws go all the way back to 1890, the sherman antitrust act. and then we had the clayton act and the ftc act in 1914. and these laws were really about wanting to make sure that we had an economy that was competitive, that was fair, where people could get a fair shake, but ultimately also about wa

you've got lockheed martin looking to open about 1.6% higher. boeing and northrop grumman also looking to open modestly higher. but the real reaction has been in these european defense names. analysts at citi have tipped a number of defense stocks they expect to benefit from a ramp up in european defense spending. check out the full list on our subscription service cnbc pro. still ahead on street signs gemini shares sink near the bottom of the stoxx 600, with some investors expressing disappointment over the french it firm's outlook on track for its worst day in months. we'll be right back. shopify's point of sale system helps you sell at every stage of your business. with fast and secure payment. card readers you can rely on. and one place to manage it all. whatever the stage, businesses that grow grow with shopify. our laundry. we just pick a date, pick a cleaner, and enjoy a spotless house for $19. >> some people. >> like doing things the hard way. >> like doing. >> their finances with a spreadsheet instead of using quicken. quicken pulls all

and the makers at lockheed martin quote idiots. he says drones would be better.y bad news for generals at the pentagon. there are a number of systems the u.s. military doesn't want, but the congress keeps approving. like the m1a1 tank, the army says they've got enough of them. perhaps it's because those factories are in those congress people's district. marcus. all right. thanks, scott. 651 for you this morning and the big five zero this weekend for saturday night live. the iconic tv show celebrating 50 years of laughter. and on this valentine's day, there is a lot of love in the air for the iconic tv show five from new york. it's saturday night. snl debuted october 11th, 1975. it was created by lorne michaels, who still at the helm of the show after all these years. many of the 167 cast members, past and present, are taking part in the celebration. i just want to honor lorne and all he's done. if the 14 year old version of me knew that i would be celebrating snl, my head wants to explode. there's a look at the entire slate of snl events coming up. homecoming con

with the pentagon, will change it, and i'd be very concerned if i worked at general dynamics, lockheed martinhrop grumman, yes, musk and palantir can be that powerful. how did the stock break out from the universe of equities? a couple of reasons. first, karp plays the retail crowd. second, wall street can't figure out how to value it other than to say it's overvalued. there are numerous sells from research houses on the stock. i think that today had a lot to do with morgan stanley capitulating. they upgraded from a sell to a hold new price target of 95 have been 60. of course the stock's at 103 and change. finally it's heavily shorted and the shorts are now frantically buying back the stock to close out their position and stop the bleeding. i call this one gamestop with a brain. i believe in this company. i think palantir is the first company to truly figure out artificial intelligence and how it can make our nation and its companies stronger, our warfighters stronger. my highest compliment even after i predicted a double when the stock was 50, i think you can go higher, maybe even much high

shares of stocks like lockheed martin have turned lower down a couple fractions of a percent. >> we could we could cut defense spending in half, is what he's saying. >> that's what he said. >> that's in half. >> when we get the tape playback, we'll have a clearer sense of what it is. these are not huge moves to the downside, but it has turned these stocks from rally into sell off territory. >> wow. pretty amazing. i mean, you think about defense spending just only continues to go up. >> well, we might have to have it if interest payments continue to be what they are. >> to have and to hold. i or not. we'll try to get clarity on those headlines. in the meantime, let's talk about ai and energy, because ai and data centers boom, the amount of electricity needed to run them will also boom. but mostly that's here in america. and your next guest says that even with all the ai excitement, the world's energy demand may not grow as much as you think. joining us now is bank of america securities commodity and derivatives strategist francisco blanch. always a must read, and we love having you on, fr

. >> defense player lockheed. >> martin have expanded. >> into. >> india and. >> diversification is.paying off. >> caterpillar ceo jim umpleby recently telling investors. >> there's a lot of. >> discussions going. >> on around tariffs. >> we are a global manufacturer. >> our largest. >> manufacturing presence. >> is in. >> the us. >> and we. >> are a. net exporter outside. >> of the us. >> and that. positions us pretty well. >> he says. >> versus many other. companies out there. >> now. >> three m. >> ingersoll-rand and timken. >> are among. >> the industrial operators. >> at goldman sachs. >> strategists say. >> are more. >> vulnerable, vulnerable. >> to trade. tensions. and frank, while china's. >> retaliatory tariffs do include farm equipment, analysts. >> point. >> out that. >> about 6% of. >> john deere sales go to. >> asia, africa and middle east, so not. >> a huge hit. however. >> if china does add agriculture to. >> its list of. >> tariffs. >> that would be more harmful to deere and some of. >> the other. farm equipment names. >> so in response to all this tariff tensions, i'

but names like lockheed martin went from 610 to 450. raytheon, the whole sector just got whacked on a bunch of different reasons. have these names gotten to levels where just valuation alone makes them compelling? >> my calls primarily focus on airlines and aftermarket defense names. we don't really have buy. three out of 13 buys in the group for defense names. the reason why we like the aftermarket is we've under-delivered planes by 3000 aircraft since 2020. it's really easy. and the cfm56, where he focuses on is 50% of the engines globally. so that's where they're repairing engines. so names like ge, heico, transdigm, fti we're all. about and throw in united airlines as our top airline pick. so those are the names i support. versus defense, where even if revenues are growing, ebitda is not growing above revenues. and that's a hard stock to own in our view. >> sheila, thanks for coming by. great to see you. sheila kahyaoglu jefferies. we were actually talking to the big short guys in miami, and they were saying that they had been in ea

lockheed martin was signed 70 million for overcharging for aircraft parts. let's talk about cost overruns. we want a cost-effective government. i trust nobody that wants to see waste. how can you talk about spending on 150 billion when you have the largest agency in the country. cost overruns. the f 35, the most expensive weapons system in history has run up hundreds of billions of dollars in cost overruns. et cetera, et cetera. my friends a and i say this very sincerely. all of us want to deal with waste and fraud in a bloated bureaucracy. if you're going to do that the first area you look at is a bloated defense budget and the s idea of adding 150 billion more makes zeroo sense to me. thank you, mr. chairman. >> it makes a lot of sense to me in this regard. these wars in ukraine and russia , we ran out of 155 grants what would happen if taiwan went hot tomorrow. we need m to re-energize our military industrial space. shipping stuff to israel. what i have learned from these conflicts that america needs to increase its military industrial capability. we need

lockheed martin big u.s. defense player is down by double digits. rheinmetall over in germany is up by more than 50. i think that speaks to a big realignment we could be seeing. >> that comes from the u.s. cutting costs including the potential defense department announcement i believe ongoing right now at the same time you have a recommitment in europe to invest in defense. it shows why people are falling -- following the fiscal which has more promise right now in europe. >> the ceo was on this program a month ago and said trump is good for europe because he is forcing the hands of the european leaders to spend more on defense. you can see directly correlating to his stock price. >> certainly good for his stock. that name is up here today. let's get you stories elsewhere with your bloomberg brief. >> president trump said he will likely impose tariffs of 25% on automobile semiconductor and important spread an official announcement is expected as soon as april 2. trump said he wants to give companies time to come in before announcing import taxes and

while you're at it, we can buy a volvo, mercedes, samsung products, bridgestone, lockheed martin, boeing 787, we'll be happy to sell everything, because the workforce development, so how can this be achieved? >> well, you've taken my comments, because that's it. it speaks for itself. industry has benefited. the economy in south carolina, and ultimately in our country globally, it's benefited from that very successful piece of litigation. i think we need more of it. we need to commit and double down on it. we agree this has been net-net a significant win for employers and employees. >> it's job creation, and we see it in south carolina as the leading exporter of cars and tires. i don't feel r i don't want people to know that, but it's true. with that in mind, indeed, parents are under attack. i'm really grateful that the representative and the i'm grateful representatives and republicans in the house passed the paris bill of rights. is this legislation working? >> it's a terrific firstst step. we look for the continued engagement. there needs to bee teeth, actual pass out of the senate bu