Transcripts For CNBC Squawk 20240703

Gary cohen. Just the man i wanted to talk to. How do you read the numbers today, too hot for comfort . Sara, i read the numbers as everything in the economy is starting to normalize. You know, weaveve been talking about the recession, the hard landing, fed increases, talking about fed decreases. I think what were starting to see now is an economy thats acting a lot more predictable and a lot more normal. The standard deviation of each of these numbers is starting to shrink. Were now talking in tenths of a point versus half of a percentage point. Were now talking about a fed, will they go this meeting, will they wait a meeting . But even in that discussion, were talking in 25basis point terms. Were not talking in 75basis point terms. Were not talking about when is the fed going to stop raising rates and cutting rates, which was the discussion we were having a year ago. We were having a discussion, were raising rates now but well be turning around very quickly and lowering rates. I think were getting back to what i would consider a normal economy. Everyone wants to characterize it with some phrase. They want to talk about where it is in the cycle, they want to talk about is it a landing, higher for longer, just longer, just higher. I think we should think about it as normal for a while. But it isnt normal. Core inflation is at 4. 1 , which is coming down year over year, but double where the fed wants it to be. Well, we were at zero inflation for how many years . That was normal for that period of time. This idea that the fed but were in the middle of the inflation fight. Maybe at the end, i dont know. We are in the middle of the inflation fight. But the idea the fed can put their finger on a scale and take the scale to exactly 2 inflation, we know they cant do that. We saw it at the other end of the spectrum. They did everything they possibly could to try and get us to 2 inflation. We went to zero Interest Rate policies, we went to quantitative easing, we had the Federal Reserve building this enormous balance sheet. It had no affect on getting us to 2 . Now we have the fed trying to do the opposite. Weve got them selling bonds, weve got them selling securities, weve got them raising Interest Rates, trying to get us to 2 . Are we naturally moving closer . Yes, were naturally moving closer because the economy is more naturalizing. All the stimulus thrown at the economy during the pandemic is starting to or has come out. The spending at the federal level, has still not stopped. We still have enormous fiscal stimulus in the system. You know, its in fact why we dont have a budget. Why were operating under a 45day, its no longer 45day resolution because we cant agree on what baseline spending should be in this country. We know going into the year the federal election is going to come. We saw it in the thursday numbers, we saw it in the continuing claims. We are not seeing a major effect in unemployment. If the fed raising rates was really having a dramatic effect on inflation, you would see it right there. It would show up on job destruction. We are not seeing job destruction and were not seeing wage destruction. What about the argument that supply deficits, dysfunction, you hinted at them just now, thats not normal. Were not reverting to some new normal on that. No, were not reverting to the new normal on that. Were reverting to a recalibration of where we are in our economy. Look, i can sit here and portray every negative thing in the world. I could make this as negative as you want. I could talk about high Interest Rates. I could talk about the strength of the dollar. I could talk about global you know, the global geopolitical situation. I could talk about the domestic political situation. I could talk about the High Energy Cost and the fact we dont have an energy policy. I could talk about all of these headwinds that we have in our Economic Situation today. I could also talk about the consumer being tapped out. I could talk about the banks being in trouble. I could talk about the banks not having capital to lend because the depositors have figured out that i can earn 400 to 500 basis points more in money market funds than i can leaving my money at a retail bank, and, therefore, if i have savings, i should move it out of the bank. We can also talk about the fact that the regulators are going to force banks to have more capital. Therefore, so, i i can give you this unbelievably negative scenario, i really can. I understand people coming i can also give you the reality. This is the conversation that weve been having at this table now for 18 months. And 18 months ago it all revolved around an inverted yield curve which always foreshadows a recession. Therefore, we have to be having a recession. 18 months later were not having a recession. Heres the one thing i do know if you call for recession every day of your life, you will eventually be right. So those people calling for recession 18 months ago, theyre going to be right one day. If you call for a bull market every day of your life, you will be right one day. The function that i think people are missing is theyre missing the fiscal piece of the equation. This is a government. And im not going to say its a red or blue issue. This is a government that is spending money. It has authorized spending on infrastructure, it has authorized spending on the c. H. I. P. S. Act. They are going to spend this money. We throw on top of it the geopolitical situation. Weve got a war going on in ukraine, we have a war going on in the middle east. The rebuilding of munitions and sophisticated weaponry in the united states, that is going to create enormous amount of demand for labor and is going to create the industrial engine of the united states, is going to have to turn itself up to feed these wars to make sure these countries we support and should be supporting have the equipment and am mumunition they need. How does that square with the fiscal andvery high debt and dysfunction and what were doing about it . The federal government has not been very good at this. Im not going to tell you to look at their track record. Their track record has been predictable. Their track record, we cant have it all, were take our deficit up. Were 33 trillion plus in deficit. Were in a unique situation where we need to resupply our troops, we need to supply our governments around the world. So, therefore, were going to resupply ukraine, were committed to israel, well resupply israel. If we have to do that at a deficit, thats a good use of deficit spending. I dont think well cut any programs to spend that money, especially going into a president ial election year. So, the 33 trillion deficit is going to go up. Thats how were going to deal with this situation. You make it sound like early cycle, wartime boom bull environment. What would this mean for equities . A minute ago i was giving you the really ugly scenario. Im trying to be balanced here and telling you, i see the really ugly scenario. I see the more realistic scenario. I think that were starting to see the more normalized economy, and i think the more normalized economy has figured in where rates are going to be. I dont think the normalized economy has rates coming down any time soon. I dont think it has dollar weakening any time soon. I dont think it has the consumer, you know, spending exploding any time soon. But i think the normalized economy has gotten us to a position where companies are now able to function in that environment and function at an adequate level where they can return positive returns to shareholders. Is that a raging bull market . No, thats not a raging bull market. Its not a recession. Its not a recession either. You and i have been sitting here for two years and you always push back. Ive been pushing back for two years on your recession. And youre still pushing back. Im still pushing back. Good to talk to you, to check in with you on the realistic picture. Gary cohn. Adam salipsky is coming next. Dont miss a sitdown with David Beckham, messi in miami and his partnership with awe tentic brands. Down 84points on the dow. Reaction to the cpi this morning, a little firmer. 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 . 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Dominos noting some softness in the consumer, but i think they were helped out by some cost cuts, which is how companies are dealing with some of the revenue softness now. As for walgreens, i think bertha described it as kitchen sink quarter between the cost cuts there, the miss again for the second straight quarter. That weve been talking about decade lows on the equity price. Theyre trying to recover from that. It really feels like this covid demand for shots and drugs is still a swing factor in these earnings, as companies try to figure out how to normalize postpandemic, as gary was saying. And a new ceo starting in over a week. Lets get to amazon. Stocks under pressure in the past month amidst the broader selloff. Still up 57 for the year. Aws a big driver of those gains, bringing in 22 billion in revenue last quarter. Now the divisions looking to make some bigger inroads into a. I. Eamon javers in virginia at the companys hq2 with the ceo of cws. We are at amazons brandnew hq2 facility. This building just opened in may. It is gorgeous. Im here with adam selipsky, the ceo of aws. Thank you for having us. Thank you for coming. Exciting to be here at hq2. You dont get a chance to get to d. C. All that often, i guess, but this is a fantastic facility. I do come through pretty frequently. We have so much activity here in this whole area, in d. C. , in virginia, and, of course, maryland. Lots of employees, lots of data centers, lots of activity. I wanted to talk to you because i had the opportunity a couple weeks ago to talk to elon musk about the future of a. I. This is a subject thats on everyones mind. What is a. I. Going to do to my industry in particular, whatever industry you happen to be in. You guys are in the a. I. Business in a very big way. I noted you just did a huge deal, 4 billion ininvestment in anthropic last month. Theres an ongoing revolution happening behind the scenes that a lot of us on the outside cant see. I wanted to get your thoughts, too. Elon told me he thinks the future of civilization is at stake with a. I. Im concerned myself with the future of the workforce and employment and how thats going to shake out. I wonder as you guys focus on a. I. , start with internally, how is it changing your business already . Well, a. I. Generative a. I. Is going to, i think, pretty much change every application inside of companies, every application that consumers interact with. It is a profound technological change that were still at the very beginning of. People think were way into it. Its day 0. 1. I think there is a lot of change coming inspect inside of amazon, first and foremost, were building generative a. I. Powered capabilities for our customers. We are completely customer obsessed. We are in aws, we are building were designing our own custom chips that go into compute the companies we use, were bringing access to all of the most important and powerful Large Language Models that Companies Want to use, were building applications for folks Like Developers and other professionals will be able to use for, you know, lots and lots of everyday work tasks. Were mainly focused on our customers in this area. Before we get to the future of civilization itself, maybe talk about the future of the workforce. How are you seeing changes already inside amazon and inside aws as you roll out these new technologies . Are you seeing shifts in employment, where you need numbers of people, how you deploy those people . Well, we are amazon has been doing a. I. For probably 25 years since we started personalizing the amazon website in 1998. We have many, many thousands of professionals who have been doing a. I. Already. Were pivoting many of those, as you might expect, to building generative a. I. Capabilities for our customers. I do think that any big technological change will bring changes in the skills that are needed. The internet, changed a lot of skills that were needed. I would argue the internet has been massively beneficial for the economy, productivity. Its created i dont even know how many millions or hundreds of millions of jobs around the world. And i think generative a. I. Will be the same. I think there will need to be reskilling, retraining. Were already helping people reskill for a. I. Jobs and have produced curriculum and content to help people with those skills. I think that will be a huge opportunity for many people to come. Huge opportunity. Also theres the potential that a lot of people are worried about for job destruction. The idea of maybe you dont need human accountants anymore, maybe lawyers working on basic contracts wont be needed and all that stuff will be done in a server somewhere at aws. How do you think about the yea a. I. Is going to shift the employment picture for basically the entire white collar workforce . Well, i think that of course, in the fullness of time, you could see more significant changes. If you look at any large technological change, it has caused shifts in where jobs are. But i think at least for the short and medium term, we actually see it as a great opportunity to make jobs better. So, many people are doing nonvalue added work as part of their jobs. I certainly have it in my job. You probably have it in your job. I think that a. I. Is going to, in many ways, serve, if you will, an assistant where a lot of the repetitive work thats not highly valueadded that people do will be able to be offloaded to a. I. So, a lot of people in their jobs will be able to focus on the hard parts, the challenging parts, the things that really add value to their companies, their organizations, their customers. I think thats actually a really exciting opportunity. The other thing i have to ask you about, were sitting just outside washington, d. C. , we can see the capitol dome from here. What about this idea of a. I. Regulation and that government can get in here and do something to make sure a. I. Is safe and productive and it does all the things youre talking about it doing in terms of productivity in the workforce . Well, i think its really important that Companies Keep on innovating at a rapid clip. I also think its important that there be policy frameworks around a. I. Were working very actively with governments, with academics, with Industry Groups here in the u. S. And around the world to help in the policy conversation. Were very strong proponents of responsible a. I. , of transparency, of making sure theres not toxicity and bias. I was at the white house in the summer with President Biden as part of the voluntary commitments in a. I. That amazon participated in. Ill be at the uk in a few weeks at a governmentled a. I. Safety summit. We welcome being part of those conversations to make sure theres both innovation and appropriate Regulatory Frameworks. You talk about appropriate Regulatory Frameworks. Again, elon musk has been saying the future of civilization is at stake. What do you think when you see him Say Something like that . Do you think thats realistic or do you think hes been reading too many scifi novels . I would not speak for him ever. But i would say were excited about what a. I. Can do. I think its going to bring an incredible amount of innovation. Customers as well as businesses will have enormous benefits. On a National Level it will bring tremendous benefits. Like any technology, of course, there is the potential for misuse. Thats part of the Regulatory Framework and the policymaking i think needs to happen, where we take collectively a thoughtful approach to putting appropriate guardrails that are risk based. If youre producing content for advertising, i think let the innovation go. If youre talking about health, safety, national security, those are the types of areas where we should be more deliberate, more careful. Im an optimist. I think we can do a good job of this, like any technology can be used for good, could be used for evil. But i think we can all collectively put a good framework together. Thats probably a great place to end the conversation, adam selipsky, thank you for having us here. Fantastic facility. Thank you for coming to our highly green, highly environmentallyfriendly hq2. And theres a great cafeteria where were going to have lunch in a little bit. Eamon javers, thanks. Surprise move from the uaw last night, expanding their strike to more ford plants. The impact for ford and other automakers coming up next. Plus, a conversation with David Beckham and Authentic Brands ceo jamie alter. I said it the other day after the premiere, were on the way home. Dad, my son, cruz, he said, dad, you could really play soccer. I didnt reaze yliou were that good. I was like, thanks, son. At humana, we believe your healthcare should evolve with you, and part of that evolution means choosing the right medicare plan for you. Humana can help. Hi, my name is sam davis and im going to tell you about Medicare Advantage Prescription Drug plans that can provide more coverage than original medicare, including Prescription Drug coverage, all wrapped up into one convenient plan. With original medicare youre covered for hospital stays and Doctor Office visits, but you have to meet a deductible for each. And then youre still responsible for 20 of the cost. Next, lets look at Medicare Supplement plans. 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Target is actually having a good week. Its come back strong this week, up 5 but down more than 25 for the year. Brian cornel is at the white house. Hes there with the ceo of ibm, tiaa. Hes going to get i think the president s going to get a mixed view of the economy. From target its been all about decreased goods spending and Consumer Discretionary spending. From ibm, still growing 2 , 3 above gdp aztec spending. Well see if we get a readout of that meeting today. Two hours into trading. Lets go post to post with bob pisani for a look at whats moving in this mini selloff, bob. Yeah. Heres whats odd. Were flat on the day, but its 4 to 1 declining to advancing stocks. Thats because were Getting Movement on plus side from mega cap tech names, which are pushing the s p up on normally a down day. Taiwan semi, had a great day. It was 88 when it opened on monday. Nice move up. Other big names, software names, service now moving as well. Its had a pretty good week overall. So, some of the other names, apple, for example, microsoft all to the upside right now. The other sector thats doing well this week is energy stocks, so conocos had a good week. Its up maybe 5 . It was 115 or so on monday, so stocks are doing great here. Oils been up and down a little bit, bouncing around between 81 and 86 this week. The important thing is trend is to the upside. Energy is not a big enough sector in the s p 500 that it matters. Whats not doing anything at all is some oldschool consumer names. New lows again on just a lot of names. Smuckers had a new low. Kellanova, hershey, kraft heinz new low. Just no energy at all in some of the oldschool consumer names. Also no energy in the ipos yesterday. Very disappointing. Birkenstock, price is at 46. Never really showed its head much above 41 yesterday. As you see down again today, 38. 74. Thats certainly a disappointment. Generally a new crop of ipos have been disappointing. Birkenstock down 14 from its ipo price. Instacart is down about 17 from its price. Klaviyo up about 8 . Arm, basically flat, up maybe 1 from its ipo. Certainly a disappointment for the markets overall here. I think, guys, youre going to see a lot more hesitancy on some of these names getting pushed out now to 2024. Youll probably hear about that in the next few weeks. Guys, back to you. Bob, well talk in a little bit. Lets get to some automakers today. The uaw expanding its strike to one of fords biggest factories. Our phil lebeau has been all over that today. Hi again, phil. Hey, carl, when you take a look at the strike and the impact on ford, this really highlights how much u. S. Production has been shut down because of this strike at various plants. Were now looking at six plants Foreign Policy three from ford, two with gm, one from stellantis. In terms of production, this is just their u. S. Production thats been halted. Its now up to 42 for ford. You see gm and stellantis both over 20 of their production, halted by these uaw strikes. This one really hurts ford. 8700 uaw members walked off the job last night at the kentucky truck plant. This is the plant that builds the super duty f series and also builds the expedition as well as the lincoln navigator. High profitable vehicles. They run this plant three crews. It is a profitmaker. Brings in or generates, i should say, 25 billion of fords annual revenue. As you take a look at shares of ford, its been estimated that before the kentucky truck plant strike started that fords lost earnings, according to deutsche bank, this is an estimate, would be 326 million. Who knows what it will be if the strike continues and theres lost production from the kentucky truck plant. Quickly take a look at the suppliers. Since this strike started, weve seen pressure being applied to the supplier stocks as people are saying, okay, whats going to be the outcome for these guys . The kentucky truck plant, sara, this is where you start to see the pressure on the suppliers really ratchet up because the impact of this plant is not just those vehicles that are built there, 13 other plants are impacted by the kentucky truck plant. So, this is a major move by the uaw that will have big ramifications. Not just at ford but for the Supplier Base as well. Will it bring the end to this strike . Whats the breaking point here, phil . Collin langdon is one analyst on wall street who thinks this is a sign theyre within reaching a settlement within the next couple of weeks because the uaw can put so much pressure by bringing down this plant. I get no sense theyre close to a settlement at ford. It could happen in the next couple of weeks, but theres just when you cover this long enough, sara, you see you hear the drum beats and see how things are progressinging. We dont see that between the uaw and any of the automakers. Well keep an eye on it with your help. Coming up after the break, a former commander in israels elite military Technology Unit turned Venture Capitalist joins us live from tel aviv. Dont go anywhere. Im Contessa Brewer with your news update. Anthony blinken is in israel and stopped at a Donation Center in tel aviv. He shared an emotional moment with a 24yearold volunteering at the center. Shes a u. S. israeli dual citizen and was with her boyfriend at the Music Festival saturday but managed to escape the massacre. Blipgen sat down with the Prime Minister and president of israel. Blinken said three more americans have been confirmed killed in the violence, bringing the total to 25. And in the gaza strip, Health Officials say the death toll from israels air strikes against hamas has risen to more than 1,400 people. On his rals side, Officials Say the death toll tops 1,300. Israels National Airline is breaking a decades old policy flying on the sabbath for the first time. They will operate four flights on saturday to collect reservists for callup members and medical rescue teams. Thank you. Continuing our coverage of the terrorist attack in israel and israels response, lets bring in cofounder and managing founder of israeli vc term from tel aviv. Previous served as commander of israels elite Technology Unit. Its great to have you here. Just wondering if you can offer perspective on what comes next and what you know. Yeah, thank you, sara. You know, first and foremost, were obviously heartbroken, but were resolved. Our chief of staff is a friend of mine, spoke a couple of hours ago. What comes next is that we must eliminate hamas. So, were ready. Our reservists are standing by. I can tell you my own company, about 10 of our employees are have been called to duty. And as a nation state, were standing strong and were ready to take the next steps. They wont be pretty. But i think its important. I think its important. Its critical for israel, but i think its important for the rest of the free world so, you know, this is going to be long, but were resolved and were going to win. I do want to ask you about the Business Community and the tech community, but just first because you were such a highranking member of the Intelligence Unit in israel, im curious about your intelligence reflections of the failure to detect what was happening and what lessons can be learned there and how it happened . Yeah, look, obviously we did not get the job done. I mean, theres no question about it. But there will be time to investigate. The time is not now. A lot of my american friends are saying, you know, is this like 9 11 . My answer is that, you know, 10 7 23 saturday morning is a little bit like 9 11, but the perpetrators are in brooklyn, you know, theyre across the river. So, we just dont have the time to focus on what went wrong. We need to stay resolved. We have to be focused and i think what were doing here is not just important for us, its a message to the rest of the world. And its not and were not fighting the Palestinian People. Were fighting hamas leadership, who the atrocities that went down on saturday 10 7 are almost unfathomable are unfathomable. We have to do what needs to be done right now. You mentioned the Palestinian People. What is the thinking regarding their ability to get out of an area that is obviously going to become a war zone if things go the way youre describing . Yeah, look, i mean, you probably heard President Bidens speech, which i think gives us, you know, the legitimacy that we have right now to operate. The fact we not just have the legitimacy to operate, but that we must. You know, not this is not just about the Palestinian People. This is not just about hamas. This is about the middle east. And this is about being on the right side of history. Dont forget, more than 1,000 miles from where im standing right now in tel aviv in tehran, thats where the shots are being called. They do not only have hamas. They have hezbollah up north waiting for the right time. And were ready to take on both. But, you know, honestly, i think that the people that have suffered the most before 10 7 23 saturday morning are the Palestinian People themselves by this brutal terrorist leadership. And what we learned the hard way, and we paid such a dear price that its almost impossible to explain is that you cannot reason with terrorists. You just cannot do it anymore. I want to ask you about the israeli high tech sector, which has been the economic engine for israel, and youre very much a part of now with your vc firm. How does it get affected by this . Well, you have to look at it from time frames, right . Theres the immediate time frame, which is the next few days. Obviously, our minds are in other places and a lot of us are focused on supporting the military, all of the idf. We have about 360,000 reservists, so for us thats about 10 of the workforce. Thats the immediate time. In the intermediate time, i think when these people return, we need to channel what has happened here. We need to channel the resolve. We need to channel all the sense of urgency to actually go faster because, as you said, the tech is the driver of our economy, and the economy of israel is also the security of israel. Weve seen in history, in times of crisis like this, new waves of innovation are possible. And i believe that is what will happen. Look, we just celebrated Rosh Hashanah two weeks ago, year 5,784. Weve known some hard times in our history. We will prevail, i assure you. Are there elements of technology or innovation that are going to make this operation, obviously as tragic as it is, more efficient, end it sooner, reduce civilian casualties, anything that might give us a Silver Lining to look at . Yeah, absolutely, absolutely. I mean, you know, were renowned for our abilities to uses big data, a. I. , offensive cyber, in this case, militaryled offensive cyber in order to pinpoint and go after the leaders of hamas with the minimum amount of casualties or uninvolved civilians in this. Weve done it before, well do it now. But at the end of the day, its imperative that those responsible for this are eliminated and the other leaders that took place in this atrocities. So, will tech be involved . Of course. But at the end of the day, unfortunately, there will also be a lot of blood shed before we win hamas. Hopefully hezbollah wont get into this time. But we must make sure. Again, carl, to your question, theres a Silver Lining . There may be. I think the Silver Lining should also be that we understand that its honestly impossible to appease your neighbor when theyre a terrorist. You know, churchill said about this, its like feeding the alligator, hoping it will eat you last. We learned that does not work. Thank you so much for joining us tonight from tel aviv, from the Venture Capital firm team 8. We appreciate it. Meantime, markets here trying to weigh all of this, the geopolitics, the fed, the earnings were about to get in the coming days. S p has been wavering in and out of the green but pretty much holding a velel close to 4375. Well be right back. Meet gold bond daily healing. A powerhouse lotion that moisturizes, heals, and smooths dry skin. With 7 moisturizers 3 vitamins. And. New gold bond healing sensitive. Clinically shown to heal moisturize dry, sensitive skin. Gold bond. When youre looking for answers, its good to have help. Because the right information, at the right time, may make all the difference. 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The number one documentary on netflix right now, limited series beckham, chronicling the life and career of superstar David Beckham, the soccer player. I sat down with beckham and Authentic Brands ceo jamie salter, and authentic coowns all global rights for beckham and talked about authentics new focus on content and how beckhams collaboration came to be. Content is for sure a new revenue stream for us. Its new. Were learning. But when you look at disney, lets be honest, disney makes great movies and then they really license their brand out a lot. So, think about authentic studios no different than disney studios. Were starting off, you know, small, but weve already had two successful actually, three successful shows and, as you know, we were part of the elvis movie with warner bros. Between the elvis movie and now David Beckham documentary on netflix, streaming all over the world, were number one right now, its pretty cool in the last year and a half, weve had a lot of successful shows. Anything about the reception to the documentary surprise you . All of it, actually. You know, i knew we had made something that was pretty interesting to people and would remind people of the memories back in the 90s when i was at manchester united. Obviously, everything that i went through, but i suppose the insane reaction ive had and positive reaction has been incredible. I sat down the other day with the team and said, i cant believe t i cant believe the reaction were getting. I dont think ive ever had a reaction like it to something that weve done. So, my wifes very happy. She enjoyed the process. Most importantly. And so do the kids. You know, its nice for the kids to kind of see, experience it and just understand, you know, whats gone on in the last 30 years. I think what people like about it is you were very real. And we learned some things like the beekeeping hobby and closet organization, which is really extreme. I always said to netflix and my team, if im going to do this, i need to do it properly. I want to do it in a way that everyone sees what we are like as a family, what im like and what i felt over the years about some of the pressures ive been under with my career and outside of that. But i said, im only going to do this once, so if im going to do it, im going to do it properly. We also spoke about salters focus on rehabilitating the brand reebok, which authentic bought for 2. 5 million. Salter teasing a return to the field and court for reebok and says the company is doing very well. Early days, were going back into sport in a big way, which adidas took them out of sport. You got to appreciate that. Reebok, 50 is sort of classic and the other 50 is sort of performance. Well be pushing that performance in a much bigger way. And i think youll see some announcements here pretty soon where well be back on the field and back on the court. Okay. Thats a good tease. So, it does feel like david and shaq and reebok , youre going heavily into sports within apparel industry that lets be honest, if you really look at whats left of sort of the media business, what is still very big, live tv and live tv is sports. So, we are going to continue to focus on sport in a big way. And just this morning, Authentic Brands named shaq and Allen Iverson to newly creative president and vp roles for reebok basketball. So, it was a tease. Speaking of live sports, i asked David Beckham about the recent growth of the mls here in the u. S. Specifically, how he lured messi to the messi to his team and Th Partnership with apple. I look back to the time i joined the mls and only 13, 14 teams in the league. Now were looking at almost 30. And the league has global eyes on it now. It has done for a few years, but now you bring leo and albert to the league, all of a sudden it takes it to the next level. Now its up to other ownership to get behind this. Even, like i said before, a lot of people helped bring leo and they have taken it to the next level. We need to capitalize on having someone like him in the league. You bring a guy like apple into the situation, it changes a lot of things. Now we have to continue to do that and work hard to take the league to the next level again. By the way, he said apple was part of the deal because messi gets a piece of it. What it came down to was messi wanted to be in the u. S. After the success of the partnership where are salter and Authentic Brands looking next . He told me, sort of. Listen. Whats going on in the marketplace, Interest Rates continue to rise which is not good for anybody including us. But it creates incredible opportunities because you have some Great Companies out there where their leverage is just too high. I think you will see Big Companies have to sell some of their core assets they dont want to sell but will have to sell to lower their debt. Thats where you come in. I wouldnt be surprised if you see authentic do one or two large ak whacquisitions. Ip . Im trying to get more specific. Hes not going to tell you. I will tell you theyre in the consumer lifestyle space. That was part of the conversation. You can find more on cnbc. Com. Authentic brands is becoming its a private company, so we dont talk about it that much, sitting on top of 30 billion in retail sales. They closed more than a billion dollars. Going more heavily into sports, obviously theyre huge in licensing which brings in enormous cash flow and David Beckham and shaq. Talent acquisition, thats a good one. Beckham was very nice, as nice as he seems in that documentary. It shows. Could the birkenstock flop close the window for the rest of the year as it breaks 49 . Stay with us. So heartbreaking. At this Holocaust Museum in israel, you see the names; the faces, of jews that were brutally murdered. This great cloud of witnesses cries out to us comfort, comfort my people. Were in a race against time to reach every holocaust survivor in israel and the former soviet union. Many are poor and hungry and they have nowhere to turn. Naroj has had such a hard life from the day that she was born into the holocaust and watching her sister esther, die of hunger. We were so hungry that we would go with my mother and find the leaves and grass nd we would pick them up and eat it. Still today, shes suffering with no one there to help her. Dare we turn our back on her now . For 25 you can rush a food box to a holocaust survivor or an elderly jew. The International Fellowship of christians and jews brings them urgently needed food and comfort in their final years. Giving a 25 gift now will double your impact in helping save more jewish lives. No Organization Helps Holocaust Survivors and the elderly jewish people as much as they do. Valeria is saying that, she didnt receive love her whole life. You seem so full of love, and not of hate. Just 25 helps to rush a food box to a holocaust survivor. I hope youll join me at the International Fellowship of christians and jews. We can do something to relieve their suffering. Please, do something now. The power goes out and we still have wifi to do our homework. And thats a good thing . Great in my book who are you . No power . No problem. Introducing stormready wifi. Now you can stay reliably connected through Power Outages with unlimited cellular data and up to 4 hours of battery backup to keep you online. Only from xfinity. Home of the xfinity 10g network. Shares of birkenstock continuing to fall today, just the latest in a series of recent ipos that have struggled, the focus of todays tech check with deirdre bosa. The ipo window of 2023 was short, wasnt very sweet and now its likely closed as we head into the year end. Theyve been a bust. Birkenstock ended by more than 10 from that ipo price. Instacart is down, arm more than 20, even klaviyo. A better indicator for the ipo market is down nearly 20 from its shortlived post debut peak. When insiders can sell shares, so what is behind the ipo stumble . The fundamentals are iffy but not terrible. Even as Revenue Growth is slowing at instacart, arm and birkenstock. Whether bankers got greedy writing leaving money on the table is good manners. Raising as much as possible is a poor Long Term Strategy to win over investors. That leaves Market Conditions that was an open question before the Companies Kicked off their listings. The market shot for 18 months as the Federal Reserve raised Interest Rates and markets have rebounded this year, theyve been carried by the Magnificent Seven Group of mega cap tech stocks which are in a far different league. While it is still early days for the latest class of ipos, the street is saying, hey, this still isnt the greatest environment. Why not buy meta or the nasdaq . That could be tricky for other Tech Startups that raise money in 2021 when conditions were better but may now be running out. A deal today i want to flag, loom, could be an indication the m a market remains an option for exits. I spoke to one who called this a good outcome saying early series a and b investors will see a nice return in the deal while later round investors get their money back, a good gauge where we are now, guys. Getting your money back is the new standard. Thats what vcs want. What are the conversations like about others that were waiting in the wings to go public . The ipo pipeline. If youre not a generative ai company, and those arent anywhere close to going public, then the tone is sort of wait and see. Were heading into the year end. No one wants to do a road show during the holiday season. Ive been hearing maybe wait until the second half of next year when sort of you have a clear view where Interest Rates will go and maybe the markets could be more settled. You do have companies waiting in the wings. You can tap the private markets. For anything other than a generative ai company, its hard. What klaviyo showed us, mosh of your traditional venturebacked company, its higher growth and it hasnt done poorly. 20 down from its ipo, peak after ipo, but still is up on its price. Conditions are still okay for the right company. Back half of next year will have an impact on the banks. Well talk about that more. Bank earnings will kick it off. We thought we would get a big aha moment. I think the consensus on inflation is theyll probably still hold at the next meeting, the Federal Reserve, and this makes it justified theyll stay high. Session highs for now. Lets get to the judge. Carl, thanks so much. Welcome to the halftime report. Im scott wapner. Front and center this hour, the state of stocks with inflation sticky, earnings looming, and rates once again rising. Well ask the Investment Committee how to play all of that. Joining me for the hour today stephanie link, shannon saccocia, jason snipe, jim lebenthal. Lets check the major averages. The s p is green, the nasdaq is green, talking modest gains there. The dow is modestly negative. Going for five straight across the board in terms of gains. And theres yields, too