Transcripts For FBC The 20240705

Vision pro mixed reality headset. The stock hint a record high right out of the gate. The record high, 184. 95. Right now its up a third of a percent if at 181 and change. After waiting seven years for apple to unveil a vr headset, here it is. You know, you guys can take the full screen here because i think our viewers really want to see is it all fill the screen. The apple faithful got their First Official eyeful of the Apple Vision Pro during the companys annual world worldwide developer conference which i believe might still be going on or is just finishing up here. A hint of what was to come, it opened with a coder who was chasing a gigantic bubble through an urban obstacle course, jumping all over buildings, through all kinds of walls, and then it was chasing this bubble, and then he jumps right on the bubble. Maybe we can show that to you in just a moment here. But as we watch all of this happen, it is controlled by your eyes, your hands and your voice, and you can also see through it. You can place apps where you want and launch new apps would want losing the ones you were using, all on a huge virtual screen. All right. Here, listen to tim cook. Introducing Apple Vision Pro. Vision pro is a new kind of computer that augments reality by seamlessly blending the real world with the digital world. Its the first apple product you look through and not at. Liz apples step through the passageway into the Virtual World is the companys first big product release since the apple watch back in 2015 is which you may remember quickly became the best selling wearable device. Now, youre looking at some of the apps and some of the tablets here, and as you continue i want to flip it over to meta which has hit earlier a 52week high and then reversed. It has turned around, it is down half a percent. Now, apples stock behavior, folks, this is what we usually see on these big unveil days, it will move higher up ahead of the event, and once something is announced, it turns red. But the question is, you know, meta beat apple to the punch. Last week it unveiled its newest, slimmest headset priced at 499, but, you know, you see those hand [laughter] things, you know . What are they called, kenny . Theyre called controllers. So as we look at what the pricing is here, im not sure apple has revealed the price at the moment, but the vv headset vr headset by meta is 499. Can apple squeeze out the competition with its new toy . Lets bring in two luminaries, phil hip shoemaker phil hip schumacher. They showed that the headset could be controlled by your hands, your eyes and your voice. Give me your gut reaction. Its amazing, right . I mean, the controllers were always one of these things that you had to hunt around especially if you put one down on the meta quest, youd be hunting around for it blinded because you got something blocking your eyes, so the ability to be able to leverage this with your voice, your eyes and your hands, i mean, its a gamechanger for the industry. Liz gamechanger for the industry. And lets give people some breaking news here. Apparently, hundreds of apps are going to be available as soon as the actual product becomes available. Spatial facetime, voices can come out, facetime, and they will come out from the tiles. So i think whats interesting here is its anything at least if apple is promoting this, its anything but isolating because you can actually see through it. What kind of advantage does it give it over all of the other headsets that might be out there . You know, its extremely painful playing with meta devices when they did not have that passthrough, right . Passthrough, to me, makes Everything Different because you can easily with one click, with one movement, you can clear the way behind you so youre not totally immersed. You can see people Walking Around you, youre not tripping over furniture. Thats one of the big things when everythings blinded, is that you cant see your surroundings, and people fall over and crash into walls. So, look, i think its a big thing, and its going to be really exciting to Start Playing with this thing. Liz price, everybody. Weve got the price. 3,499. Thats a full 3 grand more than metas quest 3. Is that going to be prohibitive, do you think, phillip, when youre considering the fact that we are heading into a slight economic slowdown here . Yeah, that price is really difficult to swallow, right . That 1500 price tag are from previous devices were okay, the 500 price tag that metadisease r has is nice, but apples got to get that price down. The form factory, its a higher price for a variety of reasons, especially the size. Thats the Biggest Issue. They will, right, over time, moores law, we will ultimately get thinner, faster, and the price will come down. Those could be a few years down the road. Yeah, i think it is a difficult pill to swallow, but this is the exciting thing, apple always makes premium products. They dont mind having a premium price tag, and developers will buy it because they ultimately see this thing skyrocketing. And so developers are going to get their hands on it for 3500 and start making magic. Liz phillip, stand by. Were bringing in an analyst at asimko, hes considered by fortune to be the ultimate apple analyst. Horace, give me your gut reaction and thoughts to this new vision pro which, by the way, everybody thought it was going to be called the reality pro. Not the name. Vision pro, 3,499. Absolutely amazing product. I stood just watching it live here with about 500 other developers, and there was a palpable sense of excitement and electricity in the crowd as we saw the feature reveal, especially eyesight. That was really a surprise for a lot of people. There were rumors, but nobody really believed they could pull it off. The vision name is brilliant, the price is a little bit high. That was a bit of a shock, i think. But, again, the audience is developers right now, theres 30 million in the world developing for apple, so i think plenty of those are going to buy this product right off the bat. Liz okay. The developers, lets talk about them. You know, were waiting to see now, apparently more than 100 are going to be ready with different apps once this thing is out on the market. And, again, this is just moving at the moment. Were trying to figure out when actually its going to be available. This is a little unusual, horace, because its almost like apple is saying it might be a little buggy, this is sort of the first attempt, so were going to be working on this. That doesnt usually happen with apple which loves to put out a pristine and perfect product. Absolutely the opposite, youre right. Whats happening here is that were seeing a platform get born. And apple has learned its lesson from microsoft. Youve got to bring in the apps9 and the killer apps are going to be developed by developers, not apple itself. So rather than seeding the market with millions of products and Getting Developers interested in that platform because so many users are there, its doing the opposite. Its actually going to look for thousands of developers to build compelling apps and then bringing in the millions of users. This is kind of, again, the rule book or the playbook for microsofts Historic Development process. It is an interesting decision they made especially contrast to meta which kind of dose the other way. But i think think the right decision because, actually, nobody knows the killer apps, and i think the imagination and creativity of millions of developers are going to actually discover this. As happened with the iphone where the killer apps turned out to be social media that didnt exist in 2008. Liz gotcha. Phillip, disney shares also made a big move. If we can show an intraday, they began to move higher in a volume spike which i think is really interesting here. Bob iger suddenly becomes one of the featured guest during the Worldwide Developers conference. He comes out swinging saying disney will be immediately Available Upon the launch of vision pro. What does that mean . I mean, it just shows that apple really had its act to together here as it wanted to make sure it checked a bunch of boxes that would make this something that people, at least if they have the money, would be able to scoop up. Yeah, thats right. And tim and bob have had a longstanding relationship, and so this makes a lot of sense for this to happen. But the announcement is great especially because theres still a lot of work to be done on the device. But this allows apple to start being able to bring this through tsa, you know, they hand carry these to all the developers to introduce it to them and have them Start Playing with it. You know, the special Developers Get their hands on it. So this announcement has made it a lot easier for apple to be able to go from developer to developer to show them the product and get their support. Were just going to see more and more of this over the next few months. Liz could we show again the video where the demonstrator is using her touch . Because you dont have controllers in your hands like with the quest 3. You use only your vision, your touch and and your voice is. Your fingers, you know . Its like a hand signal here. And as you look at this, apparently it is going to be available starting next year. So its going to be a while before these things start coming off the assembly line. Horace, give us your best shot on what it does for the stock in the, i guess, the 6month term. Six months, i dont think well see a lot because we do expect the developers to be working on the in the next few months to try to come up with sort of the launch suite of productses or apps. I do think, however, the markets going to come around to realizing that apple is on the cusp of dominating yet another use or interface that they, you know, that they mentioned that when the mouse came, it was about the os, when the touch came, it was about ios. And now when we have 3d immersive experiences, the emphasis is on the os. I think the developers also hinting on what theyre working on, were going to see a reaction, a positive reaction overall. A lot of cynicism is going to fade, and i do believe a lot of the enthusiasm weve seen already is going to come back, and were going to see a climb yet e again in enthusiasm and optimism for this share. This stock is probably going to reach new highs in the next six months. Liz well, it certainly did intraday. The intraday high, 184. 95. It has pulled back by about 1. 5 to 178 and change. Gentlemen, great to have your vision and your perspective on this brand new vision pro which is, boy, that is, that is one hell of a price point. Three times, more than three times what, you know, the quest is over at the meta labs. So what we see here is 3,499 for this thing. Ill be really interested to see how many people step up to buy that. Apples choppy trading notwithstanding, the s p 500 needs a gain of 10 points to exit the longestest bear market since 1948. Plus, will they or wont they . What is the federal reserves next move at the big Interest Ratesetting meeting next week . Closing bell ringing in 48 minutes. Dow jones industrials down 164. The s p down 10. We need to be up 10. Bulls, get it up there. And the nasdaq down 32. Were in the red, but the claman countdown is in the green for you. Stay tuned. Siness premier card is made for people like sam who make. . Everyday products. Designed smarter. Like a smart coffee grinder that orders fresh beans for you. Oh, genius for more breakthroughs like that. I need a breakthrough card. Like ours with 2. 5 cash back on purchases of 5,000 or more. Plus unlimited 2 cash back on all other purchases and with greater spending potential, sam can keep making smart ideas. A brilliant reality the ink business premier card from chase for business. Make more of whats yours. vo at viking, we are proud to have been named the worlds number one for both rivers and oceans by travel and leisure, as well as conde nast traveler. But it is now time for us to work even harder, searching for meaningful experiences and new adventures for you to embark upon. They say when you reach the top, theres only one way to go. We say, that way is onwards. Viking. Exploring the world in comfort. Limu emu doug what do we always say, son . Liberty mutual customizes your car insurance. So you only pay for what you need. Thats my boy. Now you get out there, and you make us proud, huh . Bye, uncle limu. Stay off the freeways only pay for what you need. Liberty. Liberty. Liberty. Liberty. Municipal bonds dont usually get the Media Coverage the stock market does. In fact, most people dont find them all that exciting. But, if youre looking for the potential for consistent income thats federally taxfree, now is an excellent time to consider Municipal Bonds from hennion walsh. If you have at least 10,000 dollars to invest, call and talk with one of our bond specialists at 18002173217. Well send you our exclusive bond guide, free. With details about how bonds can be an important part of your portfolio. Hennion walsh has specialized in fixed income and Growth Solutions for 30 years, and offers highquality Municipal Bonds from across the country. They provide the potential for regular income. Are federally taxfree. And have historically low risk. Call today to request your free bond guide. 18002173217. Thats 18002173217. Liz please take into account as you see this red on the screen, the fact is we had a boffo day where we had huge moves in the markets to the upside on friday p. So the major averages have given up all their earlier gains, the dow is down 153, the s p down 8, the nasdaq lower by 18. The russell down 23. Now, the dow is on track to snap a 2day winning streak. Session low, a loss of 209 points. Intels powerful negative drag. The chipmaker at the moment at the very bottom of the dow heat map, down 4 . Apple did announce its macbook pro will be power by apple silicon, expected to bring, quote, breathtaking visuals to its laptops. So this completes the no more intel inside if relationship that intel once had with apple. Earlier apple did help boost the s p 500 to at 9month high. The index needs to finish up 10. 07 points to exit the bear market. Right now were down 6 of. 7 6. 79 points. The s p 500 entered a bear market on june 13th of 2022. Hit the bear market low on october 12th of 2022. And here we are up 19 from that point. Nasdaq hitting a new 52week high earlier today before turning negative. The techheavy indexs big winner on the session, palo alto networks. That stock is on the move to the upside because, heres the news, its going to replace dish networks in the s p 500 effective june toth 20th. So you have palo alto up nearly 5 , dish reversing, down the 2. 6 . Investors are also digesting a fresh piece of data that anticipates a slight cooling in the services sector. The ism nonmanufacturing index expanded at a slower pace than expected, and its prices paid come appropriate, this is an indication of inflation, it actually fell to its lowest level in more than three years. But do not forget the may waiver report showed major labor report showed 339,000 jobs during the month. Which side will the fed read . What will the fed do at its Interest Ratesetting meeting next week . The fed funds futures market show a pricing of 78. 2 chance of a pause, just 21. 8 of a 25 basis point hike. Im going to ask, is the market delusional or spot on, and should the right answer affect the moves you make when it comes to your portfolio . Lets get right to the floor show. Join me now, jpmorgans jack manly and cetera investment managements gene goldman. Gene, the data are mixed. We got this great jobs number. Then you get a slight cooling with the ism nonmanufacturing index. How do you think the fed reads it if and and maybe that is why we start to see the markets turn a tinge red here. Liz, thanks for having me on your show. Youre right, the markets were bop boffo earlier today. We continue to believe the fed will pause at the next fed meeting next week, and theres multiple reasons why. Number one, we are likely headed to recession. The data today was not that great. Inflation is slowing down, which is great, and markets are optimistic about that, but theyre not pessimistic around the fact that Economic Growth is slowing pretty quickly. Also the market the feds done a great job to guide the market in terms of where the fed funds rate will be. The markets are now at 5. 06. The other thing i look at is we are in the quiet period for the fed, but jay powell seems pretty relaxed. He was at the grateful dead concert all weekend, is hes relaxed, im relaxed, and i think the fed pauses next week. Liz okay. Jack, i know you think theres going to be a pause. I do think its going to be a 25 basis point hike. Powell not afford to take this chance that he stops too early in the attempt to cool down inflation. But that said, should people be making decisions based on what the market thinks the fed will do . Yeah, liz, first of all, i completely agree there is almost a Reputational Risk component to this conversation, and you have to kind of remove the should they or shouldnt they and focus more in on the will they or wont they. The will they do think its sort of a tossup at this point. The should they says probably not. To your point, when it comes to positioning in this environment, the thing that i like to focus in on, and this is true whether or not we get a hike next week, is that we are very, very close to the end of this hiking cycle. We know that inflation is turning over. We know we are in a nowfirm period of disinflation. Even if you look at the most recent jobs report, there is evidence that things are cooling off beneath the surface. Liz what evidence do you see, gene, when you look at the 10year yield, the 2year, the treasury yields earlier, i believe, were moving higher, but in this market, you know, per second things are changing. And what message does that give you . We do have the 2year, 4. 47 . So the 2year is a great proxy for the fed funds rate liz liz exactly. And clearly, thats pricing in the fed will be raising rates but then pausing a little bit. We still think its going to be a pause at the next meeting. The big, key report is cpi on tuesday, june 13th. We still have a pce deflater last week, services, hotel, airfare, leisure, all those inflation readings came down. Thats going to work its way into that cpi report. We think the fed has enough evidence to pause it, and our fed monitor says liz by the way, speaking of hotels, we have the ceo of Marriott International coming up in just a few minutes. I cannot wait to see what he says, jack. Where would you be putting your money . Youre at jpmorgan, global strategist, what is your best shot here . Yeah. Right now even with the sort of question on fed policy, im a little bit overweight to duration and fix income, leaning more into fixed income relative to equities. Im a longterm bull, liz, but when youre looking at where valuations are in the stock market, it does feel possible were a little bit ahead of our skis. So a little bit tilted to fixed income, into duration to capture that sort of fed pause eventually turning into a pivot. I think thats where you want to be as a portfolio strategist. Liz all the nay say naysayers naysayers said the s p was going to look bad this year, up 19 year to date. Opec kingpin saudi arabia pledging more production cutses sending oil prices higher. How is that going to translate to prices at the pump during the summer driving season . Jeff flock is at the pbf refinery in new jersey with some answers for you. Closing bell, 37 minutes away with. Theres jeff standing by at the refinery in his suit. I like it. Yes, the leathernecks and jeff flock. Dow jones industrials down 154, s p down 5. The nasdaq, flat. Could it turn positive in just a moment . Stay tuned. Sisters. Because i think we looked. Yes. Right. Yeah. And i dont think at that time i think youre the one to tell me that we had the same birthday. Yes. Its really unbelievable when you think about it, because its been, like, really over 20 years that you were my mother and fathers banker, you became my banker and now fran is in her third year of college and youre her banker. Its so unbelievable because im just 20 years old. [laughing] man what if my type 2 diabetes takes over . woman what if all i do isnt enough . Or what if i can do diabetes differently . avo now you can with onceweekly mounjaro. Mounjaro helps your body regulate blood sugar, and mounjaro can help decrease how much food you eat. 3 out of 4 people reached an a1c of less than 7 . Plus people taking mounjaro lost up to 25 pounds. Mounjaro is not for people with type 1 diabetes or children. Dont take mounjaro, if youre allergic to it, you or your family have medullary thyroid cancer, or multiple endocrine neoplasia syndrome type 2. Stop mounjaro, and call your doctor right away, if you have an allergic reaction, a lump or swelling in your neck, severe stomach pain, vision changes, or diabetic retinopathy. Serious side effects may include pancreatitis and gallbladder problems. Taking mounjaro with sulfonylurea or insulin raises low blood sugar risk. Tell your doctor if youre nursing, pregnant, or plan to be. Side effects include nausea, vomiting, and diarrhea which can cause dehydration and may worsen kidney problems. woman i can do diabetes differently with mounjaro. avo ask your doctor about onceweekly mounjaro. Ah, these bills are crazy. She has no idea shes sitting on a goldmine. Well she doesnt know that if she owns a Life Insurance policy of 100,000 or more she can sell all or part of it to coventry for cash. Even a term policy. Even a term policy . Even a term policy find out if youre sitting on a goldmine. Call Coventry Direct today at the number on your screen, or visit coventrydirect. Com. My Little Family is me, aria, and jade. Just the three of us girls. I never thought twice about feeding her kibble. But about two years ago, i realized she was overweight. She was always out of breath. Thats when i decided to introduce the farmers dog to her diet. Its just so fresh that she literally gets bubbles in her mouth. Now shes a lot more active, shes able to join us on our adventures. And were all able to do things as a family. Get started at betterforthem. Com the first time you made a sale online with godaddy was also the first time you heard of a town named dinosaur, colorado. We just got an order from dinosaur, colorado. Start an easy to build, powerful website for free with a partner that always puts you first. Start for free at godaddy. Com liz okay, i am keeping an eye on apple because apple is the most heavily weighted name in the s p 500. Apple, which had been up close to 2 earlier, down just under 1 right now. That is bringing the s p and the Dow Jones Industrials down. Weve got it down 171 points for the dow. S p, well, were lower by about 7 points. The nasdaq down 7 points. Lets look at some individual stock names you need to hear about. Spotify is hitting a nice note with investors at this hour. Shares of the streaming service up 2. 8 after the Company Announced plans to slash 200 jobs specifically in its podcast division. The job cutses which represent about 2 of spotifys work force come as the company focuses on partnerships with top podcasters who come at a very hefty price. Hence, layoffs. Lets look at the tesla shares. Boy, did they get a jolt earlier. They hit a 7month high, still up about 1. 33 , just off the highs of the session here after data from the China Passenger Car Association showed that sales ticked higher there for the month of may. Teslas chinamade evs rose 2. 4 month over month and 142 yearoveryear. Big sales number here, 77,695 cars. Tesla shares currently at 216. 85. Let me give you the 52week low, so 101 101. Theyve come a long way. Despite e General Motors commitment to go all electric by 2035, the automaker plans to invest more than 1 billion in two michigan manufacturing sites to produce next generation heavy duty gasoline and dieselpowered trucks. The heavyduty trucks which include the Chevy Silverado hd and gmc sierra trucks are among the most profitable vehicles. The money from those sales will in turn be used to fund gms investments in and transition to electric vehicles. Gm shares down about a third of a percent but off earlier lows. Well, those of you still driving internal combustion vehicles will likely have to pay a higher price at the pump this summer after saudi arabia said at yesterdays opec if meeting its going to slash oil output by an additional one Million Barrels a day. That starts next month. Looking at the price of crude, off the highs of the session but, boy, it had jumping above 73 a barrel. We have it at 71. 97 in the after market. Lets take it live to jeff flock in paulsboro, new jersey, at an energy refinery. Its never enough for those opec guys, is it, jeff . Reporter they keep trying. They keep cutting, liz, but the last two times gas prices not only didnt go up, they went down. Maybe they know what theyre doing. As you know, gas prices right now are pretty moderate. 3. 55, the average gallon of regular in the u. S. Thats been that way for the last month, and its a whole lot cheaper than it was this time last year which was pushing 5. At the opec meeting in vienna, it was a contentious sometimes these are rubber stamp events, stuff thats already been decided. Not this time. The saudis were trying to twist arms, department get it done didnt get it done. They said well cut ourselves, and they did by a Million Barrels a day. That comes after two cuts in this past october and then again a surprise cut in april, 3. 6 million in total barrels a day. That makes with the current cut 4. 6 Million Barrels out of production. Youd think that would drive up prices but, again, not so sure. We talked to a fellow whos got a lot of experience in the energy field who says he thinks the saudis this time are playing hardball. Listen. It was down to 68 a barrel on friday. And i think the saudis are panicking. The saudis, the russians will create, stir the pot and make sure prices go higher than lower. Reporter thats what he thinks, and maybe hes right. I tell you, if you look at the u. S. Rig count in the u. S. , baker hughes says less than 700 rigs in the u. S. If youre looking for more production here, thats down 15 rigs just in the last week and 70 plus rigs since december. Although worth noting that in the last month for which we have data, the Biden Administration, during the term of the Biden Administration, the most oil produced in the u. S. Since it took office. So, you know, a little bit here, a little bit there. Asked for commented today at the white house comment today at the white house, what do they make of this saudi move . Heres what they said. Were going to make sure theres a balance between supply and demand. You see the price of oil was not dramatically affected by this announcement of these additional cuts, and price of gasoline continues to come down. Reporter they said earlier that theyre concerned at the Biden Administration not about a barrels, but about price at the pump if. Problem is, you know, theres some relationship between the cost of a barrel of oil and prices at the pump. Maybe theyre betting therell be a recession. If we get a recession, maybe the demand for, you know, gasoline goes down and maybe prices dont get affected but then, of course, wed be in a recession. That wouldnt be so good either. Liz cant have it all, jeff. Reporter thats true. I found that in life, and ive tried many times. [laughter] liz hey, keep trying. Reporter it just never seems to work. Liz jeff, thank you so much. Whether driving or flying somewhere fabulous this summer, travelers need lodging. We are about to get the state of the Hotel Industry from the ceo of the Worlds Largest hotel company, Marriott International. Anthony camp llano about to give us the demand picture in north america, europe, china postreopening. Closing bell, 25 minutes away. The dow down 176. We are coming right back, dont go away. When covid hit, we had some challenges. I heard about the payroll tax refund that allowed us to keep the people that have been here taking care of us. Learn more at getrefunds. Com. I have type 2 diabetes, but i manage it well. Its a little pill with a big story to tell. I take oncedaily jardiance, at each days staaart. As time went on it was easy to seee im lowering my a1c. Jardiance works 24 7 in your body to flush out some sugar and for adults with type 2 diabetes and known heart disease, jardiance can lower the risk of cardiovascular death, too. Jardiance may cause serious side effects including ketoacidosis that may be fatal, dehydration, that can lead to sudden worsening of kidney function, and genital yeast or urinary tract infections. A rare, lifethreatening bacterial infection in the skin of the perineum could occur. Stop taking jardiance and call your doctor right away if you have symptoms of this infection, ketoacidosis, or an allergic reaction, and dont take it if youre on dialysis. Taking jardiance with a sulfonylurea or insulin may cause low blood sugar. Jardiance is really swell, the little pill with a big story to tell. New projects means new project managers. You need to hire. I need indeed. Indeed you do. When you sponsor a job, you immediately get your shortlist of quality candidates, whose resumes on indeed match your job criteria. Visit indeed. Com hire and get started today. next big thing by west rose yeahyeahyeahyeah ready . Go im coming out with a bang blowin up im the next big thing everybody want my shine if you want a piece better get in line aint nobody do it like this go so hard no i just dont quit we dont just have everything. We have your thing. Im coming out with a bang blowin up im the next big thing ready . Go cheery music they get it. They know how it works. And more importantly. It works for them. I dont have any anxiety about money anymore. I dont have to worry about a mortgage payment every month. It allowed me to live in my home. And not have to pay payments. [narrator] if youre 62 or older and own your home, you could access your equity to improve your lifestyle. A reverse Mortgage Loan eliminates your monthly mortgage payments and puts taxfree cash in your pocket. Call the number on your screen. It was the best thing ive ever done, and really . Yes, without a doubt just like these folks, aag can show you how a reverse Mortgage Loan uses your builtup home equity to give you taxfree cash. Its a good thing. Why dont you get the facts . Like these folks did. [narrator] call right now to receive your free, noobligation info kit. Call the number on your screen. upbeat music constant contacts advanced automation lets you send the right message at the right time, every time. constant contact. Helping the small stand tall. Liz one of the lingering impacts of marchs banking crisis is tighter lending standards. While that has hit many sectors, an area truly feeling the heat is actually hotel development. We keep talking about commercial real estate. Hotel development specifically. Look at this, according to data shared with reuters. Since march 59 of the 98 u. S. Hotel projects that broke ground or were in preconstruction have been paused due to funding concerns. What else happened in march . Silicon valley bank went under. But that has not stopped the Worlds Largest e hotel chain from building. Besides expansion plans across the world, marriott Just Announced the launch of its 32nd brand, project mide, and, thats sort of the d midex. Its going to be an extended stay option and could be the has hospitality companys least expensive offering in the u. S. And canada, but can marriott secure the funding it needs . Here in studio ceo tony capuano. Anthony, great to have you here. Thanks for having us. Liz what about that . What is the atmosphere like right now for an International Company like yours trying to launch a huge new brand, and its really tough to get lending. Its fascinating. Had you asked me that a year ago, i would have said look at all the challenges to getting shovels in the ground. Interest rate environment, challenges with the supply chain, Construction Costs. Most of those have faded. Our partners tend to be longterm investors, they understand that Interest Rates are going to ebb and flow, Construction Costs are going to ebb and flow. The single biggest challenge today is the availability of construction debt. And as you point out, the regional Banking System was a huge generator of debt for hotel loans. So it is challenging. There are loans being with being generated. Those loans that are out there ten to be focused on two principal criteria, sponsorship does the developer have a demonstrated track record of performance and what is the brand affiliation. And thats one of the reasons even in this challenged environment we have some is measure of comfort in our ability to launch a new platform like this. Liz are you seeing that sort sort of fear or that chill across the lending span . Space internationally . I ask that because i was on your web site today. The st. Regis is a gorgeous property in boar rah boar are bora bora. I am sure internationally, dont they all have a custom problem or situation . Well, it varies by market. So europe is most like the u. S. In terms of needing conventional Debt Financing for new construction projects. Across most of asia, across most of the middle east they ten to be more funded by equity only. So we have less of a challenge in those markets. Liz do you blame the fed or do you look at the fed and say we couldnt sit there and leave rates at zero for so long . Well, most certainly we couldnt survive in a system with free money forever. We can debate the timing and the free frequency of rate increases, but again in terms of its impact on our business, our investors are longterm investors. They can manage increases in Interest Rates. What is more challenging for them to navigate is uncertainty in the Banking System. And right now what theyre hearing from many lenders is we think were relatively financially sound, but we dont know what regulations may be coming down the pike, and so were going to be thoughtful and were going to be prudent, and were going to hold off on making new loan commitments. Liz that said, despite the fact that it may be harder to get loans, people are dying to travel. You look at the airline industry, there are some new numbers out, and it appears that people are hopping on flights, and they expect to do so this summer. In fact, the air transport Associations Annual meeting, they announced that the Global Airlines more than doubled their 2023 profit forecast. From 4. 7 billion to 9. 8 billion because of such strong demand. Well, theres any questions anybody had about the resilience of travel, i think, have been answered over the last year or two. And if you look at our companys performance in 2022, strongest ebitda performance in our 96year history. Strongest quarter in the First Quarter of this year, again, in our 96year history. And whats really encouraging to me, its across every demand system we serve and gee ography. Liz and also your stock. I noted that in april of 2020 of course, everybody was struggling, you were shut down. That must have been panicinducing. You took over in 2021, but look at the stock since then. It has i wouldnt say a straight shot, but it has really performed unbelievably well. I want to talk about china. Sure. Liz hows the performance in china . Everybody looks to different metrics, oh, are they importing or exporting, everyone has their own alchemy of how they figure out whether or chinas reopening. Look at all your properties there. So in our industry the metric we use is revenue per available room. The good news in greater china, its essentially recovered to prepandemic levels particularly in mainland china. Where there is still upside for us, about 70 or 80 of that recovery is domestic chinese travel. If you look at International Airline seats, only about 40 have recovered. So as more and more air lift capacity returns crossborder both inbound and outbound to china, we expect significant improvement in performance in that market. But even just relying on Domestic Travel were already back to prepandemic performance. Liz tony, before we go, hottest location right now that you can see. Oh, gosh. Well, i think certainly for the summer some of the traditional western european destinations, italy, greece, france. And interestingly, japan. As the japanese borders open, japan is a very hot destination. Liz good to see you. Please come back. Anytime. Thanks for having me. Liz Marriott Internationals tony capuano. 32 brands. Fantastic, thank you. Cryptos and cryptorelated stocks, this is a pretty major story here. They are plummeting after the securities and Exchange Commission sued Crypto Exchange binance and its ceo. It is sending reverberations throughout the entire sector. Charlie gasparino has has breaking details on that next. Closing bell, 13 minutes away. Dow slightly off the lows of the session, down 165. We are coming right back. I think this is it guys . When the martins booked their vrbo vacation home, they really werent looking for much a patch of grass for bruno, a pool for firsttimers, dont worry, ive got you. And time with each other. And when they needed support, someone was right there. I got you. Because whats unique about a vrbo is you can reach a real person in about a minute. Tourists tourists that turn into scientists. Tourists photographing thousands of miles of remote coral reefs. That can be analyzed by ai in real time. So researchers can identify which areas are at risk. And help life underwater flourish. As a business owner, your bottom line is always top of mind. So start saving by switching to the mobile service designed for Small Business comcast business mobile. Flexible data plans mean you can get unlimited data or pay by the gig. All on the most reliable 5g network, with no line activation fees or term contracts. Saving you up to 75 a year. And its only available to comcast Business Internet customers. So boost your bottom line by switching today. Comcast business. Powering possibilities™. When i was his age, we had to be inside to watch live sports. But with xfinity, we get the Fastest Mobile Service and can stream down the street or around the block. Hey, can you be less sister, more car . All right, lets get this over with. Switch to Xfinity Mobile and get the best price for 2 lines of unlimited. Just 30 a line per month. I should get paid more for this. You get paid when you win. From xfinity. Home of the 10g network. Liz we have bitcoin falling nearly 6 right now. The Securities Exchange commission has sued the worlds Crypto Exchange, the Worlds Largest Crypto Exchange binance and its ceo for allegedly commingling billions of dollars worth of user funds. Charlie gasparino has the details. But first he has news about not president jpmorgan ceo jamie dimon. Well you know you heard it first on the claman countdown last week. We first reported that jamie dimon is not going to run. The way i phrased it jamie dimon wants to be president but he doesnt want to run for president. That is exactly what we heard today. Actually the firm last night issued a statement to me personally because we broke the story that jamie is not intending to run for president now and maybe never. You heard it here first on the claman countdown. Wanted to get that little bit of housekeeping out of the way before we get to binance this is a big story in a sense that binance is a Major Exchange of crypto. These charges are described to me of crypto crackdown round number two. That is something we were foreshadowing on the claman countdown that there is going to be another crackdown on crypto, that gary gensler, sec chairman is basically cracking the whip at the Enforcement Division to bring more crypto cases on everything from exchanges who he believes violate fiduciary, violate the law. In this case it was a, the allegation is along the lines of what went down on ftx, commingling of customer funds, maybe using funds in other areas of the business like a hedge fund. He is looking for all of that. Again, securities, crypto coins that are un, sec believes are unregistered securities, those cases are coming. From what we understand, this is just the beginning. Again this is part of crypto crackdown round two, liz. There will be a lot more cases coming, because the chairman is demanding it. That is how the things develop. The Enforcement Division is nominally independent. It generally reflects the agenda of the chairman. In this case the agenda of the chairman involves a crackdown on crypto. I think it is fair to say gary gensler believes the Biggest Issue facing small investors now is fraud in the crypto industry he believes it is wild west of investing. Some would say meme stocks pumped on social media. Amc is a thousand dollar stock and people filing in only losing 90 of their money. Most people would say that is bigger story. I will tell you that gary gensler believes this is a big story on crypto. You will see a lot more. Liz, you mentioned it before. Bitcoin is down 5 . That is kind of muted. You would think it would be down more but this type of stuff adds to the uncertainty in the market. How many other cryptos are going to be declared securities . Well ethereum be declared a security . Could bitcoin . I dont think bitcoin will because gary gensler said publicly that is the only one he thinks is a security. If you have others attacked by the sec with enforcement action this redown to impact on negatively on prices of bitcoin as well. You get a flight to quality. If youre in crypto this is a pretty perilous time. Keep an eye going on what is going on enforcementwise. Keep watching claman countydown. That is what we do well here. Liz you sure do. Bitcoin down 6 . He was the guy decided to go to twitter i dont like what is happening at ftx. Now he is accused of commingling, the whole thing is a little worrisome. Charlie, thank thank you very mh charlie gasparino. Closing bell four minutes away. Apple looked like it was on track for a record close. Sir pro, the new headset babe blurred investor love for apple. You have the big unveil here. They never mentioned once a. I. Or the metaverse through all of that. The dow extending its losses. Dow jones industrials extending losses of down 209 points. Were down 183. Intel choppy after a early tech powered rally. Where do you go from here if you want to play tech but want stability, Warren Buffetts Berkshire Hathaway overtaken tesla market cap, with combined market cap of class a, Class B Shares of 600 billion. Tesla close at 575 billion. Berkshire Class B Shares are only up 6 yeartodate, our countdown closer says stick with buffett, if youre not with buffett, go with buffett. Joining me capwell chairman chief Investment Officer tim tim, b shares in the 300s you like it here . I do. Warren buffett and berkshire theyre very, very disciplined. At one point last week before they cut the budget deal and debt ceiling i think Warren Buffett had more cash than the United States treasury. So theyre going to, they are going to earn, two years ago they were earning 50 million on the cash. Now it is over seven billion and he will find all kinds of ways to deploy that in the new environment that were headed into. Liz and there are some companies under the berkshire umbrella. , more than 70, Something Like five of those if they were spun off they would be fortune i dont know 500 companies, even bigger than that. So as we look at what is really the driver here, he is the largest shareholder of apple stock. Apples stock hitting an earlier record high of 100, 180 . Lets see. I want to check it, it came off that. 184. 95. Warren buffett said only day you wont buy apple is when it is up. He only buys when it is down. What do you like about apple like berkshire oh all picture . I like his play in occidental petroleum. Classic buy straw hats in the winter. He continues to acquire, i think he is over 25 holder now of occidental. You can always count on him to focus where everybody else is looking the other direction. You know you mentioned apple. I think his cost in apple from the bulk of when he purchased it in 2016 was somewhere around 25. So you know, when you have big dollars like he has to invest, you have to have big ideas and you have to be committed to them this systemic purchases and thats what he has done very well. Tim those operating companies too. Liz tim, really quick what do you think the fed will do and announce on wednesday, a week from wednesday . If they dont stand pat because they dont think the economy is cooling but because they have tremendous challenges raising a trillion dollars they depleted that will be its own form of quantitative tightening. Maybe a substitution for the increase in rates. It is hard to say what they will do but they have a lot of challenges. [closing bell rings] liz always hard to say what they will do. Tim, thank you very much. The dow snaps a two session win streak. S p and nasdaq lets call it too close to call. I will be comfortable with that kudlow is next. Larry hello, folks, welcome to kudlow, im larry kudlow. So the fbi finally briefs House Oversight chair jame