Tilray, ceo irwin simon is coming up. Having a nice double digit increase this morning. Markets giving back mondays gains and then some on some concerns about china weakness and the macro, moodys drawing attention to some banks, worst day for the kre since may. The vix back we havent talked about the vix. Everything is selling off, except for health care, thats up 0. 50 thats thanks to names were seeing in names like eli lilly, potentially gamechanging studies on Heart Disease from the obesity drugs. Overall, carl, its a selloff kind of day, its broad. The focus continues to be on soft landing, no landing well get a key Inflation Report on thursday that will be definitive in trying to figure out what happens there on the policy front meantime, tenyear snuck back below 4 this morning. Were talking about growth now as opposed to inflation. Well see what cpi does to that conversation breaking data out of the new york fed Steve Liesman has that hey, steve. Good morning, carl. Some mixed data on Consumer Debt mortgage debt declined down a 0. 25 but Credit Card Debt had the biggest increase since 2021. Auto loan debt was rising. Hang on one second i have the wrong things in here. Credit card debt was up 4. 6 in q2 topping 1 trillion for the first time ever. The four quarter average of credit card delinquency rate is fouryear high the gain quarter to quarter in credit card delinquency stabilized auto loan debt rose 1. 3 because autos are more expensive delinquency rates are up since 11 years ago bankruptcies and foreclosures rose but they remain below the prepandemic levels. Back to you. Very quickly, steve, what do we make on the health of the consumer and these rising delinquencies . I think the first thing i would make of it, it does seem the fed Interest Rate hikes seem to have some effect you had fairly big increases for 2021 and 22 those seem to be leveling off at higher rates in is the effect that the fed is looking for. The idea that delinquency rates seem to be on a quartertoquarter base leveling off takes the edge off the concern out there about sharply declining delinquency rates. We have to watch it. The story has been for a long time this idea that were rising off very low levels, but we still remain below normal and prepandemic levels the question becomes, do we stop at those normal levels or keep going up if you project it forward, it doesnt look good, but the Current Situation is not that bad. Rising Credit Card Debt not huge signs of financial distress, i think, is a takeaway thank you, steve Steve Liesman breaking that Consumer Credit data the narrative this morning seems to be one of worry jpmorgan saying twothirds of their global economists are expecting a recession this year or next. Credit suisse saying its incrementally more negative. And the oneyear correlation between the s p and tenyear yield is highest since 2011. Joining us is Neuberger Bermans ho holly kroft, ranked by barrons as one of the top in the country. Thank you for being here. Thank you others are following your negative foot steps. You have said to be cautious pretty much all year yeah. Going back into last year. Nothings changed but its sort of refreshing to be here on a down day finally it seems like maybe Market Sentiment is trying to catch up with all the leading indicators, which has been negative for quite some time. And ive been bearish for quite some time. I think whats happened this year is the market hooked onto inflation coming down. And they just let the market run with that. But now its hard to ignore some of these leading indicators. The yield curve has been significantly inverted for 12 months as you know, a recession typically comes 15 to 18 months after that inversion were seeing contraction in the market pmi surveys are below 50 as you may have read recently in the wall street journal, there was an article that some of the major consulting firms are actually delaying the start of their recent college and mba hires 6 to 12 months, which suggests theyre seeing a decrease in demand for their services. Is your primary worry now a recession or is it that the fed is just going to have to keep fighting the inflation or both i think the fed i think the fed is at or near the end of the hike cycle this is the most aggressive cycle weve seen in years. And i dont think it matters if we just have a slowdown or we have a recession i sort of think thats irrelevant what i do think is our 12month outlook at mb private wealth is were going to have a significant economic slowdown and the market is going to catch up to the indicators that have been signaling this for quite some time. So, my concern is and has been to protect our clients and their portfolios in the face of what we expect to be a downturn certainly you dont believe earnings are going to come in to fill whats happened to multiples lately. I dont we talked about inflation coming down, but if you look at Wage Inflation, that has been unbelievably high, multidecades high and thats putting pressure on all the companies and their Profit Margins its going to take months for the tightening to work its way through the system and for us to understand and feel the impact of the tightening. Were just starting to see were just on the cusp. That said, though, people say the number one wage dynamic is growth in real wages and purchasing power that will drive retail sales, which is most of our economy. Does that not make sense well, as we just heard, were starting to see car loans defaults i think theres still surplus money in the system left over from the pandemic. That is not evaporated but it is declining. Where were seeing a lot of labor market shortage is not in the older population or people near retirement but its in the younger College Graduate age group. They might have had surplus money to drive what theyre buying and what they want, but that surplus is running out. I think its just catching up with us. Weve been on this euphoria driven by ai, driven by our labor markets. Its almost the case of, is good news the strong labor market becoming bad news . And is the Wage Inflation putting pressure on the fed to have to keep rates higher for longer you dont like equities clearly, but you have Investment Grade credit. Its not that i dont like equities weve had an exposure to equities we started the year underweight, very defensive the move in the market has brought us to a neutral position in equities. Were not selling down that position were not adding to it equities are trading at about 20 times. Theyre very expensive today we would like to see that come back more towards the tenyear average of 17 times. With the indication the fed is going to stay higher for longer, were being paid really nicely to sit on the sidelines in a less risky asset class and earn a return from the yields this close to longterm equity returns. We also like alternatives. We like private equity we really like private debt where we expect you can earn double digit returns with low risk. And commodities still commodities were down big this year. It was almost the mirror image of last year where commodities was the only positive asset class. At one point commodities were down 11 theyve come back to about 3. 5 . Were maintaining our exposure to commodities because we think they offer a nice hedge in an inflationary environment. Good to check in with you good to get your updated thoughts thank you so much. Thank you holly newman kroft. Getting boeing orders and deliveries for july, lets get to phil lebeau hey, phil. Hey, carl these are the numbers for july remember, this is when we start to cease an increase in the number of deliveries were not seeing it reflected in these numbers but we will over the course of the next six months in terms of orders last month, the company logged 52 orders, 467 year to date deliveries coming in at 43 the vast majority being 737 maxs 32 were there. 309 deliveries this year by the way, thats up 30 compared to where they were last year the backlog stands at 4,928 planes thats not quite its close but not quite to the alltime high as they continue to expect big orders in the second half of this year. Guys, back to you. Thank you watching boeing down 0. 25 on this that news. The share of lending by large u. S. Banks has been declining steadily for years could it lead to a problem down the road for the sector . Well discuss with Meredith Whitney. Take a look at lilly, shares surging again. What a monster this has been raises their guide thats an alltime high. Well be right back. Welcome back check on the banks moodys cutting the Credit Rating of ten u. S. Banks, including mnt and pinnacle putting major lenders on review. That Regional Bank index, the kre on pace for the worst day since may. Well watch this, one of the big stories of the morning. Well stick with financials because big banks arent lending like they used to. Thats the takeaway from a brandnew piece from our next guest calling on regulators to Pay Attention to the risks with shrinking Consumer Loan balances joining us on set, Meredith Whitney of whitney advisory group, founder ceo thank you for coming in, meredith its good to see you again this is your bailiwick, this is what youre know for, the analysis around banks. What did you find when you dove into the lending i took a big step back and looked at Bank Balance Sheets over the last 10, 15 years theyve transformed. You also see which banks have had Clear Strategies and which banks have muddled their way through. What you see is the banks really good gobsmacked when regulators put the screws on. They needed to delever whats happened is their concentration, their market share of Consumer Lending has collapsed from 16 in 2012 down to 10 so, three of the four three out of the four big banks have shrunk their Consumer Lending portfolios that was their livelihood. Thats where they got fee income, highyielding loans. And they havent really recovered from an earnings per perspective. Bank of america has drastically cut costs but citi and wells have also cut their Consumer Spending portfolios have yet to find their way so fee income, Noninterest Income for them has collapsed. Assets or even nonConsumer Loans have shrunk and they can only buy back so many shares. I think what youre seeing is lending moving out of the Bank Balance Sheets into nonbanks financials, thats clear shadow banking and its very its very reminiscent of what happened or all the growth in nonbank lending that happened during the 90s for the banks, i thought this was fascinating in terms of how much out of the lending practice the banks are. And i guess a few implications of that one is longterm profitability of banks. Yeah. So what happened, the peak earnings year was 2006 again, there was aggressive lending. We dont want to go back to those ways but the comment has been big security holders for government, for cash, very razorthin margin securities thats not a longterm plan. Now with the regulatory capital increases, profitability will continue to go down. Again, jpmorgan is the outlier with this. Theyve been growing Consumer Loans, theyve been growing commercial loans theyve done an unbelievable job at growing their credit card Business Bank of america has actually shrunk their credit card business so its half of what it was in 2006 and citi has just, again, not found its way in terms of what direction it will come in terms of the strategy. Interestingly, wells fargo has increased expenses by 14 while revenues have fallen by 14 over a tenyear time period it doesnt look good for the big banks. I was going to say between wells and citi, whos done the worst job on operating expenses . Wells clearly has done the worst job. Even promises in efficiencies and missions and so forth . Sadly over the last ten years, its increased expenses by 14 while revenues have declined by 14 . So, hes got a tough road ahead. What are the regulators do about this its broader than just banks, shareholder performance and performance. It has implications for the economy, clearly. For certain and i think todays downgrade and the regulators now going after banks that are 100 billion and up is only going to put more pressure on the banks to become security holders the good thing is the big banks have a lot of deposits sdpofs over the last ten years have increased 81 deposits across the board have increased 4. 5 trillion in the last three years alone theyre awash with capitals. More and more, i think all of the banks will become security holders and less lenders that means opportunity will rise and youll see shadow banks coming in in lending. And credit is booming. Is booming. But you also see a lot of consumer lenders like you did in the 1990s come around. I dont think thats good for the system i can tell you from living in d. C. , the regulators are not in theyre not working in office theres no dynamic thinking. Theyre checking boxes the next ten years well see what the unintended consequences of these actions are. If we get a repeat of march where there is this duration mismatch, do you think deposit holders will be more quick to withdrawal or less quick because theyre like, i got fdics got us or we survived that its tricky it all depends this is why the regulators have to be so careful with these banks because if they put the screws too tight, that makes individual consumers, individual deposit holders nervous. Theyve got to be slow moving, i think. Its really hard to tell jpmorgan has attracted more deposits than any of the big banks by a lions share. Wells has attracted the least amount of deposits of the four big banks. And jpmorgan, bank of america, citi and then wells in terms of but jpmorgan, again, 96 deposit growth over the last ten years. Its staggering in terms of the strong get stronger and the weak have gotten weaker. And their answer is always more capital you have to hold more capital. Then theyre going to lend even less. Thats right. The capital the capital will force consolidation with the next banks that will be my next reporting, which banks have to consolidate. A lot of the banks that downgraded are good banks and would be good anchors for consolidation. The regulators have said none of the big banks can consolidate. As this report shows, theyre all derisking massively. So, someone is going to gain from that, thats for clear. Come back and name some names of where you see that happening. Thank you so much. Meredith whitney. Speaking of financials, the shares of the italian bank getting crushed on the back of this surprise wind fall profit tax that got announced today well get details on that. Take a look at shares of no novonortis new testing shows wegovy cut the risk of heart attack new natures bounty hair growth. Clinically shown to help grow thicker, fuller hair with just one capsule a day of advanced hair complex. Conquer hair thinning. And fall in love with your hair all over again. Only from natures bounty. My cpa told me i wouldnt qualify for the erc tax refund, so i called innovation refunds. Their team of independent tax attorneys will work with your cpa to determine if your company is eligible. [whip sound] take the first step to see if your Small Business qualifies. We planned well for retirement, but i wish we had more cash. You think those two have any idea . That they can sell their Life Insurance policy for cash . So theyre basically sitting on a goldmine . I dont think they have a clue. Thats crazy well, not everyone knows coventrys helped thousands of people sell their policies for cash. Even term policies. I cant believe theyre just sitting up there sitting on all this cash. If you own a Life Insurance policy of 100,000 or more, you can sell all or part of it to coventry. Even a term policy. For cash, or a combination of cash and coverage, with no future premiums. Someone needs to tell them, that theyre sitting on a goldmine, and you have no idea hey, guys youre sitting on a goldmine come on, guys do you hear that . I dont hear anything anymore. Find out if youre sitting on a goldmine. Call Coventry Direct today at the number on your screen, or visit coventrydirect. Com. Big mover to the downside is beyond meat. Kate rogers has the reasons why. Carl, as you said, beyond meat down double digit, missing revenue estimates and also lowering its revenue guidance for the full year. The company also said it would not hit its target of being cash flow target in the back half of 2023 ceo pointing to greater than expected consumer headwind as one of the reasons for decline, 38 in retail, 45 in food service yearonyear noting that people are trading down in the Animal Protein space which makes a more premium price product like a beyond a tougher sell for consumers brown is fighting to convince customers that beyond products are healthy as he says more customers are doubting the Health Benefits of its product they have a new ad campaign on how their ingredients are sourced hoping to do some of the, quote, heavy work as consumers evaluate the health of beyond meat and other plantbased protein. Back over to you. Thank you, kate appreciate it. Big loser today, beyond meat. Two major developments driving the story abroad with european markets set to close momentarily. We have the china story where trade data fell well short of expectations exports falling 14. 5 from a year ago imports even worse, dropping by more than 12 in terms of the miss including an 18 plunge in crude there last month in italy, its the banks announcing a 40 wind fall tax on profits reaped from higher rates. Sending shares of italian banks plummeting before being followed by that moodys downgrade of u. S. Banks we mentioned. Sort of a double whammy. The italian banks seemed to catch the market really off guard. Citigroup is estimating it could dent their profits by 19 . The banks could not get out of the way of that news. It was moodys, the italians and surveys about investment banker comp down 25, probably stuck there for a while. Im thinking about what meredith is saying these banks being treated as utilities. Now taxing wind fall profits the european banks were quick to announce buybacks and dividends and i guess this is the punishment. Lets get a news update with pippen stevens. Thousands of Los Angeles City workers walked off the job today as contract talks break down with the city they are picturing for 24 hours outside of city hall along with l. A. X. And other locations accusing the city of unfair labor practices. It includes sanitation workers, mechanics, traffic officers and engineers. L. A. Mayor karen bass has promised the strike wont shut down the city. At least two people died and thousands of flights were canceled or delayed as severe storms whipped through the eastern United States last night. The National Weather service issued tornado watches and warnings in ten states from tennessee to new york. Authorities say a teen in South Carolina died when a tree fell on him and local media reported a man in alabama died after he was hit by lightning. Two weeks after letting go of nearly 40 employees, Florida Governor ron desantis is shaking up his president ial Campaign Team again he has replaced his Campaign Manager with his chief of staff. The third major reshuffling comes as desantis lags in the polls. Thank you the ceo of zoetis, the worlds biggest maker of medicine for pets is ahead lowering the fullyear Profit Guidance later on the ceo of tilray, those shares are surging after the Company Announces it will buy a number of craft beer brands from av imbev lta tirn moabt that upbeat music awww. Awww. Awww. Nope. Constant Contact delivers the Marketing Tools your Small Business needs to keep up, excel, and grow. Constant contact. Helping the small stand tall. Two hours into trading down 340 on the dow. Lets go post to post with a look with bob pisani. Whats interesting, why are we down so much . The reason were down is the market is not offering a good risk reward. Its the valuation problem we were talking about i want to show you the bapgs down 2 to 4 . Moodys downgraded a bunch of banks. Theres nothing new here the rating agencies are famous for telling you what you know. Funding costs, regulatory costs. Dont we already know all of this i would say, look, 4 . This is one of the banks we found. All the banks are down 2 to 4 on this news it shows you how sensitive the market is given how much we moved up this is a very small bank. Its from texas but its listed down here. I thought i would put it down 2. 5 everything, 2 to 4 tech has been weak as well theres no macro reason why were down so reason why general weakness in tech salesforce trading down, apple has been down five days in a row. This has been down five out of the last six days or so here nvidia has stalled out bullish position unwinding a little bit this isnt fomo, the fear of missing out, this is the valuation trusting i dont want to put too much into this. Seasonally difficult time of the year valuation is very, very high thats whats going on here. Let me just show you one my Favorite Companies it has nothing to do you interact with it every day they make bubble wrap. In fact, they invented bubble wrap a long, long time ago they also make cryovac that you wrap around meat that sucks the oxygen out and preserves the meat down 7 . They give very poor guidance because the packaging business isnt as strong as used to be. Its a good indication of whats happened postcovid when everything was the shipping business went dramatically through the roof still down rather notably. I want to emphasize, no big macro reason why were down today. Its summer seasonal issues. Thanks. Good gut check lets get to zoetis, shares are higher after posting a beat on top and bottom line in q2 did lower revenue guidance, expected softer sales in some segments a cnbc exclusive with zoetis ceo kristin peck im wondering if the guidance was driven by livestock or companion business its good to be back to share a strong quarter, delivering 9 Operational Revenue growth that was led by the diversity across markets and species of our portfolio. We actually maintained our Operational Revenue and adjusted that income guidance the only real updates to guidance were around Foreign Exchange which you saw taking it down a little bit on the revenue and actually was a positive for us on the bottom line for that we delivered a strong first half as we expected were really pleased to confirm our Operational Revenue and adjusted net income guidance for the year 6 to 8 Revenue Growth on the top line and 7 to 9 operational guidance on the bottom line. The street reaction from the analyst was constructive they talk a lot about investing in new products, canine pain, for example, some m a, operating profit improvements. Of those which do you think is the most important zoetiss strength is led by innovation i would say its the growth across our key franchises. Youre seeing strong growth continue for us around parasitacides, dermatology, a market weve been in since 2015 and still seeing double digit growth around 14 . And oa pain, a huge category for zo zoetis we were in it traditionally with rimadil but we have osteoarthritis, pain for dogs. Were seeing tremendous Growth Potential there and a really excited to see the launch of labrela in the u. S well do a full launch in september and see great growth as well as diagnostics in emerging market. As exciting as animal meds are, the story is about the study from novonortis and weight loss drugs could reduce the risk of heart attack, stroke, with obese people that could be a gamechanger i wonder if thats the kind of study that would make you look at that for Animal Health as well maybe not on the obesity front but on heart attack and stroke front. Were really focused, cardiology is what youre talking about as a key growth driver were looking at renal we have really strength in monoclonal antibioeads and we think they can deliver for us around renal and oncology. What you see in health is important in Animal Health space. Were excited for that to drive our growth in the medium term as well. No obesity drug for dogs any time soon. Im curious what youre seeing in china because you are exposed to that market its been disappointing. The economic data, import numbers and how thats affecting the business. We saw the numbers today down about 14. 5 . Were really a little more focused on the Consumer Confidence, consumer willingness to pay were focusing a lot on where labor is with really high unemployment right now in the youth especially in the cities thats obviously affecting consumers willingness to pay for everything, including veterinary care. With consumers saving as much as they are right now, theyre not going out as much and spending as much on going out and dining, which obviously affects our livestock business were watching these uncertainties as we look into the second half of the year. China is you look at the quarter or the year, the second or Third Largest market for us at zoetis we are the leader in china for multinationals and were looking at this as an opportunity to gain market share, to stick by our customers, make sure were meeting their needs. We continue to outpace all of our competitors in the market and well be ready when china does rebound we know government is focused there and improving Consumer Confidence and that will probably take a few months before that really or a few quarters before that takes hold we really think were well positioned for the longterm growth play here in china. I got to imagine you think the difference between the Chinese Consumer mindset and that in the United States is like night and day, at least at the moment. Yeah, i think thats what caught a lot of people by surprise, carl we were sort of expecting when covid lockdown started, started listing in q1 that we would see a curve similar to the u. S. And europe to your point, weve seen the consumers responded very, very differently in china i think thats what caught a little bit of us by surprise maybe it was going to be slower. Were seeing obviously a continued reluctance on the part of the consumer. I think part of that is because obviously as export markets go down, i think the governments going to have to invest more in the Consumer Sector there. I do think that is what surprised a lot of us. The and the fact the readout didnt look like the rest of the worlds. On pets, everyone thought we would go back to work and stop pampering them like we did during covid you havent seen that . No. What youve seen in our quarter and performance, if you look at the 9 growth we had, that was 4 price in a more inflationary market but 5 volume it really shows you the resiliency of our industry and the importance of the human an map bond that were driving strong numbers for the first half of the year. Yeah, volumes been an issue for at least some consumer goods. Fascinating quarter. Good look at the Global Consumer see you next time. Kristin peck. Thank you. Coming up, luxury losses ahead . What earnings are telling us about cracks in Consumer Sentiment for the ultrarich. Keep your eye on palantir. They did meet estimates but sales fell a bit short new billion dollar buyback plan. Not enough to avoid a 7 drop as the dow is coming off session lows down 340 we earn your trust. Maintain our financial strength and stability. And deliver solutions that meet complex needs. Massmutual. Partnering with financial professionals, benefits brokers, and institutions. We planned well for retirement, but i wish we had more cash. You think those two have any idea . That they can sell their Life Insurance policy for cash . So theyre basically sitting on a goldmine . I dont think they have a clue. Thats crazy well, not everyone knows coventrys helped thousands of people sell their policies for cash. Even term policies. I cant believe theyre just sitting up there sitting on all this cash. If you own a Life Insurance policy of 100,000 or more, you can sell all or part of it to coventry. Even a term policy. For cash, or a combination of cash and coverage, with no future premiums. Someone needs to tell them, that theyre sitting on a goldmine, and you have no idea hey, guys youre sitting on a goldmine come on, guys do you hear that . I dont hear anything anymore. Find out if youre sitting on a goldmine. Call Coventry Direct today at the number on your screen, or visit coventrydirect. Com. The first time you connected your godaddy website and your store was also the first time you realized. Well, we can do anything. Cheesecake cookies . The chookie manage all your sales from one place with a partner that always puts you first. we did it start today at godaddy. Com earnings out from lvmh, all feeling cracks in the consumer when it comes to luxury spending our robert frank has all the details. We were wondering when this would crack. And its starting to, especially with a lot of different companies. Lvmh reporting a slight drop in u. S. Sales in the Second Quarter. Gucci saying u. S. Sales dropped 23 . Look at the Upscale Hotels like the rytz and waldorf, also seeing a falloff in demand some analysts say this is because the american wealthy are vacationing in europe so theyre buying the handbags and shoes in paris or london rather than the u. S. Lvmh saw 18 growth in europe and reported good momentum in europe others would say this is payback for the big Luxury Brands that moved down market to chase scale and growth now those less wealthy consumers are starting to pull back as lvmh said in their call, the aspirational consumers are not shopping the way they used to. H hermes reported 21 increase as their 10,000 birkin bags and 900 belts remain hard to get even for the wealthy the chairman saying in difficult times theres a flight to quality and we have benefitted luxury analyst saying, quote, were seeing a normalization of luxury as those luxury stocks go from momentum plays to morsteady growth, thats if luxury consumers in china keep spending now that were seeing weakness in the u. S. , a lot more pressure on china as that economy appears to be slowing as well. I have to think part of this is the disappointing bounceback weve seen in chinas recovery thats been the growth driver for all these companies for years, hasnt it yes and lvmh and carrie had pretty good results in the first and Second Quarter in china. Richemont held up. Watches and jewelry held up, which is weakest in the u. S. So far its been okay in china the question is will it fall off or start to pick up as investors were betting it would earlier this year. Certainly not giving that Outbound Travel boost as we still wait for chinese travelers to explore the world robert, thanks paramount shares were up nicely today on strong streaming numbers. Now slightly lower what does that mean for disney earnings tomorrow night . Well talk about it. Im mark and i live in vero beach, florida. My wife and i have three children. Ruthann and i like to hike. We eat healthy. We exercise. I noticed i wasnt as sharp as i used to be. My wife introduced me to prevagen and so i said yeah, ill try it out. I noticed that i felt sharper, i felt like i was able to respond to things quicker. And i thought, yeah, it works for me. Prevagen. At stores everywhere without a prescription. Paramounts earnings are in focus, showing progress in streaming, putting pressure on disney to deliver tomorrow Julia Boorstin has a wrap on the streamers today for techcheck. Hey, julia hey, carl thats right paramount shares were higher now theyre lower despite beating expectations and showing progress towards profitability of the media giants streaming business now, paramount plus losses declining from the prior quarter, coming in much lower than anticipated while streaming revenue beat expectations. There are a couple of key things here that position paramount for more streaming progress. The Company Hopes to increase its average revenue peruser by more than 20 . Ceo says he sees potential in partnering with other Media Companies to bundle their streaming services he also said the strike will significantly boost Free Cash Flow even more than anticipated. Paramounts beat raises the bar for disney in the past year disney shares have underperforming netflix, comcast and warner bros. Discovery. Now for disney, theyre facing some industry wide challenges in ad contraction, pressure to cut streaming costs as well as the challenge of a strike. Disney also has its own particular problems that could have an impact this quarter, including disappointing performance of some big franchise films, reported attendance issues at the florida parks. Disney also warned its directtoconsumer operating losses would widen by 100 million quarter over quarter thats in contrast to its rivals, whose streaming losses are sh rrinking. There are a number of looming questions for ceo bob iger on the earningsings call tomorrow plus the question about the plan to sell less valuable the plans to sell last valuable streaming business of hot star in india and the whole question of espn, how theyll be taking it directtoconsumer and even potentially sell disneys linear tv business of adc, et cetera. Theres one other thing here there was a report out this morning that disney has created a task force to study Artificial Intelligence and how it can be applied across the company this could a. I. Fears among striking writers and actors well see if bob iger weighs in on that. I was going to say, julia, by the way, deutsch cut disney to 120 today and doesnt sound like the writers meeting with the streamers on friday bore much fruit whatsoever. Yeah. There was a lot of optimism going into it, and then all of that optimism, i think, forced a little bit of a pushback from the Writers Guild saying hey, lets be careful here. They communicated with the Guild Members that this deal was far from done. No signs of progress this week at least, and a lot of concerns its going to start to really impact not just what the tv schedule looks like but more films delayed if the studios are afraid they will suffer if they dont have the stars of those films or even the full support of the industry to the promotion to them. Yeah. Ill be watching for churn, i guess, in the coming quarters and months thanks important day tomorrow for disney in the meantime wall street is buzzing welte y w othotr l llouhyn e he side of this break good luck. Td ameritrade, this is anna. Hi anna, this position is all over the place, help hey professor, subscriptions are down but thats only an estimated 15 of their valuation. Do you think the market is overreacting . Howd you know that . The Company Profile tool, in thinkorswim®. Yes, i love you please ignore that. Td ameritrade. Awardwinning Customer Service that has your back. This thing, its making me get an ice bath again. What do you mean . These straps are mindblowing they collect hundreds of data points like hrv and rem sleep, so you know all you need for recovery. And you are . Im an investor. In invesco qqq, a fund that gives me access to. Nasdaq 100 innovations like. Wearable training optimization tech. Uh, how long are you. Im done. Im okay. Your shipping manager left to find themself. leaving you lost. You need to hire. I need indeed. Indeed you do. Indeed instant match instantly delivers quality candidates matching your job description. Visit indeed. Com hire wall street is buzzing about a different buzz as tilray will acquire 8 brands from anheuserbusch that will make tilray the fifth largest craft brewer in the United States. Stock is up big this morning nearly 30 higher. Joining us now is tilrays ceo irwin simon. Good morning welcome. Good morning. How are you. Doing all right. Trying to understand this deal how much of anheuserbusch recent trials and tribulations around bud light had to do with this deal . Nothing had to do with this deal i think the big thing you said is this here, this takes out for tilray is predictability were not waiting on cannabis legalization, it diversifies tilray in january 2020 we rebranded the Company Tilray brands we got 30 of the cannabis business in canada were not sitting and waiting for predictability, and i called anheuserbusch and asked about these brands and we had discussions and its a great deal for both of us, and it was great to work with ab on this. I wonder if you got a great price because of the problems theyve been struggling with we got great brands and great opportunities to grow these brands, and actually as, you know, strategically with muntock, growing 40 and our sweetwater brand growing, it really positions tilray in a great spot very few companies out there have zac have cannabis, beer, bourbon and our distribution business in europe. Its interesting how youre diversifying way from cannabis a lot of investors used to see these as a way to get a foot hold in the u. S. Market as we legalize now as legalization doesnt look like its coming any time soon, are you saying youre trying to build a more diversified consumer brand, packaged Goods Company . As you know me, diversity is important and i think, again, i cant depend on this government in regards to legalization, and theres adjacencies throout the and no reason one day these bars cant be infused if that happens. We have the alcohol piece of it, the diversity piece we need and we needed to diversify there was a thing the other night in regards to medical cannabis and the benefits from that from our older generation and how thats happening i come back and say listen, were in the best spot today with the brands that we have, we have 12, 13 cannabis brands, 15 brands today in spirits, beer and energy drinks, three brands in europe from a medical standpoint and were on our way with cash free positive, we have a great balance sheet. Hey, i like our stock price today. Theres many times throughout the year where i did not like the stock price. I think everybody is frustrated upon legalization of cannabis and when it would happen and gave up on cannabis stocks so with that, today, you cant give up on tilray because were not just a Cannabis Company anymore. Its one thing to say you cant wait for the politicians to come around, but do you think that cultural push toward decriminalization or legalization has stalled out listen, it absolutely has stalled out, but the interesting thing is, listen, carl, we live in new york city, every corner we walk on we smell cannabis today. Its legal today between medical cannabis and Recreational Cannabis in over 35 states so something has to be done and my opinion over the next year or two, theyll legalize medical cannabis and leave it up to the states of what they want to do from a recreational standpoint theres so Much Research for medical cannabis and the benefits for sleep, energy, anxiety, cancer patients, ep leaptic. We need to get our politicians to decriminalize it, legal from a medical standpoint and do something with it. Then you step back and say, you know, tilray is well positioned because we have a diversified portfolio and were diversified in so many categories. One more on beer, i think partly what investors are excited about you have a much more predictable revenue stream if these are truly, but my question is how you are going to do a better job at marketing and selling these craft beers then ab inbev did it wasnt a growth category for them. I come back and look at it here its no different what we did in regards to cannabis and brand it and oils how do you make craft beer cool again . I think to come back, the consumers are drinking craft beer again i look at whats going on with montauk and sweetwater, a beer called gummies, montauk 420. The consumers today are looking for a cool way to drink beer you know, weve gone from the ninth largest craft brewer to the fifth largest. Hey, in the craft brewing industry, watch out because tilray is coming were going after that craft beer industry. Look what happened in regards to the, you know, energy not the energy drinks, in regard to seltzer drinks we think theres an opportunity. Its a fun category. Irwin, appreciate you taking the time and talking us through it and our audience. Thank you so much. Thank you very much. Irwin simon, ceo of tilray. Market shares his enthusiasm. Interesting how the beer business got the rock thrown in the pond and all kinds of ripples are taking place as a result. If you havent had montauk 420 you should. Lets get to Courtney Reagan in for the judge welcome to the halftime report. Im Courtney Reagan in for scott wapner stocks retreat as the Banking Sector gets battered with a downgrade. Our Investment Committee standing by to break down the fallout. Joining us josh brown, britain talkington and stephanie link. A check on the markets to see where we stand before we dig into the details the Dow Jones Industrial average, the s p 500 and the nasdaq lower the nasdaq is lower by the biggest percentage, down 1. 5 , same with the s p 500. We have the