right now joining us is pat gelsinger, the ceo of intel.anks, becky >> we've been talking a lot about the chips act this morning and where things stand it sounds like there could be a separate stand-alone vote just on this part of the bill, not wrapping up other things is that your understanding of things as well >> yeah, i think there are three pathways right now they have the skinny version of the competitive act. or third, they pull the two pieces out that are related to chips and just vote on those and clearly the second and third options have been getting a lot more mention in the last couple days, and we're starting to see, you know, both the house and senate leadership lining up behind one of those two paths. but my message to our congressional leaders is hey, if i am not done with the job i don't get to go home, neither should you do not go home for august recess until you have passed the chips act, because i and others in the industry will make investment decisions. do you want those investments in the u.s. or are we simply not com

ceo pat gelsinger spoke to bloomberg earlier about the discipline numbers.: i think we deserve to be down today, and with the earnings we report, the guidance we gave, it is a little bit of a reset, and i think we have disappointed ourselves and our shareholders and that respect -- shareholders in that respect. at the same time, we have laid out a multi year path to the future, and we are getting more and more proof points along the way, such as our technology and process. that area is one everyone has said is critical. intel seven, intel four had positive reviews. we are ahead of schedule on other models. and with our leadership process and capacity, intel will do fine this year. we had neither. we will get those back going forward. it is a journey. caroline: what difference will the chips act make? pat: it is a seminal act. this may be the most significant industrial policy legislation since world war ii in the u.s. this is huge. we expect to be a beneficiary of that both in the near-term, with the manufacturing offsets -- we have an aggressive capital bui

ceo pat gelsinger says their own execution issues are to blame. on the passage of the chips act roku shares plummeting we'll discus

ceo pat gelsinger says their own execution issues are to blame. we'll check on that on the passage of the chips act roku shares plummeting we'll discuss what it means for other advertising-based names like werner, disney and the growth broadly. >>> tgif what an epic week. we start our show with amazon shares they are surmging after reporting better than expected q2 results painting a bright picture against the macro back drop. basic consumer spending has remained strong. management adding overcapacity concerns something that dragged down the stock in the first half of the year are now being solved. they do warn, however, inflationary pressures remain and could be strong in q3. a negative on the quarter, amazon taking a $3.9 billion hit on its investment in rivian which resulted in $2 billion but there was a $12 billion gain a few quarters earlier this is basically the ceo saying, he knows this playbook he watched jeff bezos, figure a lot of the stuff out amazon went from one of the worst performing mega caps this year to maybe in the best position

that's pat gelsinger head of intel last friday. in other words, mr. president, the ceo of a major corporation, which made nearly $20 billion in profits last year and a ceo who received $179 million compensation package is saying to congress that if you don't give my industry, the microchip industry, 76 billion and my company, it is estimated, some 20 or $30 billion, that despite their profound love for our country and their respect for american workers, and their understanding of the needs of the u.s. military, and the health care issues and despite all of that, in order to make more profits, they are prepared to go to europe and asia. mr. president, i am thankfully not a lawyer, but it sure sounds like extortion to me. what mr. gelsinger is saying is that if you don't give the industry a blank check, here is $76 billion, and they want more, by the way, despite the needs of the military for advanced microchips and we hear that from the military, despite the needs of the medical industry for advanced microchips, despite the entire needs of the american

ceo pat gelsinger will join the show tomorrow. we'll get a good view of the chips.gins for intel will be a major focus for investors on earnings and of course beyond pcs and data center where intel mainly plays in chips we've gotten mainly upbeat guidance and from nxp, particularly in autos. the senate has approved funding for the c.h.i.p.s. act aimed at boosting domestic chip production, sending it to the house where it faces a tougher fight. house republican leadership urging its members to vote against the deal because of the deal democrats are getting done thanks to senator joe manch in's about-face so we'll see if there's any more clarity on that by tomorrow when pat joins us a little unclear, dee. >> by the way, i liked your on the other hand this morning. don't miss the cnbc special. i'll sit down with cathie wood tomorrow at 6:00 p.m. eastern capping off a critical week of earnings we'll be right back. ♪ ♪ connecting to opportunity is just part of the hustle. ♪ ♪ opportunity is using data to create a competitive advantage. ♪ ♪ it's raising capital that helps

pat gelsinger is telling investors the third quarter is at the bottom. a pleasure to catch up with you after earnings. tell investors what your signs are that q3 is actually the bottom. pat: yeah, thank you and great to be here with you today. yesterday was a tough day. it was also a euphoric day with the passage of the chips act, but to describe that hey, acute market share changes, the decline of the economies across the world was surprising how large that was, they also adjusted inventories and made maybe once in a decade ships and inventory positions after working hard to catch up to demand for years that we were not catching up, so that was very sharp switch. and then with our own execution challenges that we described. as a result of that, we were shifting below the rate of the end market to consumption, and that is part of what gives us confidence in the bounce back. we also have unique issues with datacenter products. we found issues just as we were about to go to production, so that caused some acute issues where we had inventory reserves. that

pat gelsinger lobbies copping for subsidies to counter beijing. intel has threatened to delay a planned ohio factory unless congress passes the subsidy bill. i pause here, mr. president, to note that this is troubling. if true, this should be a warning to us about why we don't engage in corporate welfare. this is wrong. and deep down we know it's wrong to take from the poor and give to the rich. we have no business doing this. nor do we have any business voting on a -- cloture on a motion to proceed to a bill that doesn't yet exist. we don't yet know what's in the bill because it's still being tran formed significantly even as we speak. "the wall street journal" editorial board continues. quote, the other claim for the bill is that the u.s. must subsidize domestic chip making to compete with china but this also isn't persuasive. the companies like to point out that the u.s. share of the world's chips has fallen to 12% from 37% in 1990. they don't mention that the u.s. leads in chip design, 52%, and chip making equipment, 50%. seven of the world's

pat gelsinger says the company will pull out of its struggles after the third quarter and ask for patienceors. the chipmaker as forecast for the rest of the year after posting weak second-quarter results. revenue may slump by 13% from 2021. >> we expect 2022 and 2023 to be challenges. we feel like this is the bottom. that is what we communicated in the earnings call and we are off to the races to do better for ourselves and our shareholders. >> ledger, which makes hardware wallets for crypto investors, is in talks to raise $100 million in a new funding round. letter last raised $380 million in june 2021. the latest round comes at a time when crypto paddle -- crypto capital venture has cooled. in the u.s., we have caterpillar, a bellwether for the economy, construction equipment maker and we are watching it because they talked about a slowdown in china's demand. we are also watching airbnb, perhaps a rebound in travel, the re-opening narrative, especially in asia. interesting bank of america says corporate sentiment on earnings calls is deep into recession territory. we are watching that cl

we will talk to pat gelsinger shortly, intel ceo. ♪ (inspiring music) - [narrator] at southern new hampshire you can reach your goals faster. that's because you can transfer in up to 90 credits towards your online degree. - i was able to cut my time in half. - [narrator] apply free at snhu.edu millions have made the switch from the big three to xfinity mobile. that means millions are saving hundreds a year on their wireless bill. and all of those millions are on the nation's most reliable 5g network, with the carrier rated #1 in customer satisfaction. that's a whole lot of happy campers out there. and it's never too late to join them. get unlimited data with 5g included for just $30 a line per month when you get 4 lines. switch to xfinity mobile today. anna: it is friday, the 29th of july. the countdown to the close starts right now. >> the countdown is on in europe. this is bloomberg markets: european close with guy johnson and alix steel. anna: welcome to the european close. we will get you set up for the end of the trading session in europe. half an hour to go. i'm anna edwards. guy johns

pat gelsinger will be on, today at 11:00 a.m. eastern time. >>> roku says second quarter numbers, down. a slow down in ad spending and a pullback in discretionary spending also pressuring roku tv and the speaker systems. now, 25%. this morning, the premarket, 17% for the day. >>> we began on this friday with deadly storms across appalachi . the governor has declared a state of emergency. torrential rains have caused massive flooding and it is to blame for as many as eight deaths with authorities expecting that number to rise into the double digits. >>> in southwest virginia, heavy rainfall forcing evacuations. the governor declaring a state of emergency. >>> after criticism for failing to investigate the abuse claims against the former gymnastics dr. my larry nassar, the fbi could be looking to settle the $1 billion lawsuit. according to the new york times, the agency is interested in reaching a resolution which could include a settlement. the letter that the times says was sent to the lawyers. more than 90 women filed a civil su

. >> i learned a lot about that in aspen last week talking to intel ceo pat gelsinger. stuff if we don't pass that bill >>> is that a sector you should continue to steer clear from because they are cyclically oriented >> so chips are to the u.s. what oil and gas is to europe we both -- europe let itself get too reliant on an undependable supplier in russia, and we let ourselves get too reliant on an undependable suppliers throughout asia. it was just a strategic mistake. i think we realize it. frankly, i didn't think it would take two years to fix, but it has and it continues to be a problem. everybody's you talk to in the space says it is not going to get fixed in the next six months so this is a tough industry, it's a competitive industry, it's a capital intensive industry it's billions of dollars to open up a new plant, but we need to bring this technology back home. relying on these unpredictable suppliers is just devastating. >> well, the national security impact here looms large. and the money is going to go elsewhere. even europe is subsidizing its chip makers an

last year intel could afford to give its c.e.o., pat gelsinger, $179 million compensation package. $179 million compensation package. does that sound like a company that needs a corporate bailout, that needs taxpayer money, to survive in? over the past 020 years, intel has spent over $100 million on lobbying and campaign contributions. that is the definition of the corrupt political system under which we live, while at the same time shipping thousands of jobs to china and other low-income countries. and that is a company that the american people should be bailing out? really? now another company that would receive taxpayer assistance under this legislation is texas instruments. last year texas instruments made $7.8 billion in profits. in 2020, that company spent $2.5 billion buying back its own stock while it also, like intel, has outsourced thousands of good-paying american jobs to low-wage countries. who else is in line to receive corporate welfare under this bill? well, how about the taiwan semiconductor manufacturing company, tsmc. it is in line to potentially receive billions of do

>> that was horrendous what happened was the sapphire model was late pat gelsinger, they can't make thebig win, maybe ohio. >> let 's talk roku trading day of the month july has been a great month for the market. >> they got to rethink .. what they have to do, they have to get over it. i think the key is too young they've never seen anything. >> that should be every person's goal every day, jim. >> we're all hoping to get older. >> by the way, pfizer was great. pfizer was great can we cut that out? we're going to take the super spiked vaccine credit the times, i broke that story yesterday but i'm not competitive. i'm fine >> jim, that was a great tease for what's to come in st aju few minutes. >> any time you need me, i am there for you guys all right. >> we'll see you "squawk box" will be right back. .. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations, like real time cgi. okay... yeah... oh. don't worry i got it! become an agent of innovation with invesco qqq . >>> we just got some new data on the fed's preferred measure of inflation. core pce prices f

pat gelsinger. germany is offering this package. money goes where it is best treated. >> it shouldn't be best treated by governments. >> if that is the case, that's why asia built up so many of the chip fabs. they were offering the policy. >> should there be different policies in the u.s. not necessarily as incentives, but disincentives to do these elsewhere. part of the calculus if you are a company, if you think you will not have access to chips in the future, including intel not having access to chips in the future, they he have to come up with a plan. >> i asked about this on friday. he was here and pat was making the case they would do this and made plans based on what congress told them. nothing has been done in congress until it is done. >> they know what they need to do to stay profitable. you can grease the skids a bit you usually do it at the early stage. you have everything that goes along with the deals when you sign on with the government. you have every senator ever involved who has their stuff they want. >> what do yo

pat gelsinger lobbies copping for subsidies to counter beijing. intel has threatened to delay a planned ohio factory unless congress passes the subsidy bill. i pause here, mr. president, to note that this is troubling. if true, this should be a warning to us about why we don't engage in corporate welfare. this is wrong. and deep down we know it's wrong to take from the poor and give to the rich. we have no business doing this. nor do we have any business voting on a -- cloture on a motion to proceed to a bill that doesn't yet exist. we don't yet know what's in the bill because it's still being tran formed significantly even as we speak. "the wall street journal" editorial board continues. quote, the other claim for the bill is that the u.s. must subsidize domestic chip making to compete with china but this also isn't persuasive. the companies like to point out that the u.s. share of the world's chips has fallen to 12% from 37% in 1990. they don't mention that the u.s. leads in chip design, 52%, and chip making equipment, 50%. seven of the world's