Italys Prime Minister said it would derive from properties on h derived from higher Interest Rates. The net income exsceeding the growth for 2022 and 2023 citi estimated that would be equal to 19 of bank net profits for the year the tax would only apply to domestic Net Interest Income if this were to happen in the United States it is not happening i know. I dont know what would happen to the world. It is like when hell freezes over scenario. 40 windfall profit tax on banks. Do you think this is such a game changer that you would ever be in business in italy ever again . I think they view banks as utilities in italy i think investors will think about Certain Industries now at the beck on call of the government it can be wiped out just like that it changes your money. Chinese communist out of nowhere with the Tech Companies in china the trading Certain Industries. In other bank news, moodys cutting ratings with several banks and downgrading the biggest lenders. The credit strengths will be tested by funding risk and profitability. Among those is m t bank and pinnacle and Prosperity Bank on the list most of the other banks are down materially more than m t bank of new york mellon as well. The agency changing the outlook with 5th 3rd on that list. And a break even quarter with revenue coming up ahead of expectations for the paramount plus service the advertising revenue in the tv segment fell 10 . Executives there saying they expect similar ad revenue in the quarter current, but forecast a rebound in the Fourth Quarter. The Company Announced agreement to sell Simon Schuster for 1. 6 billion paramount would use the proceeds of the sale to pay down debt i say, as i said, billions on showtime which is streamed on paramount. Oh, yes in the same way we Say Something that oppenheimer. Paramount said the bar was low with the 35 increase in viewership thats a lot you have to wonder with disney coming out and people are streaming more or paramount specific you know, this was the bar had been lowered this was a good quarter on a relative basis for them. They still need cash a cash business. The sale was good for them. Shares of beyond meat plunging loss of 83 cents of share. It was better than analysts expected, but revenue fell short of the 108 million estimate they cut the forecast for full year as they show no sign of recovery higher Interest Rates and recession contributed to the soft demand. The company is struggling that the products are overly processed. It is releasing an ad campaign that this is showing the process. Lower actual real protein costs is a headwind for the fake protein which costs more its all relative make choices at the Grocery Store and the paycheck is limited. We are watching shares of palantir 5 Cents Per Share in line of revenue of 553 million. The Current Quarter revenue was higher than expected the ceo sent a letter to shareholders to make the Company Eligible for the s p 500 for the first time the board approved the first Stock Buyback Program authorizing 1 billion in repurchase the stock has been on a tear this year up more than 180 . Sitting right now at 18 you look at the chart and going back to may. Softbank out with results after the close in tokyo the vision fund with the gain of 1. 1 billion that is the first gain in the last five quarters the company with the surprise loss of 3. 3 billion in the quarter. Softbank had unrealized loss offset by gains of 5 billion. Shareholder meeting in june shows the company would shift from offense to defense. We have squawk booze news. The acquisition includes brewery and pubs associated with the brand of shock top it has been pushing into the category in november the acquisition will make it the fifth largest craft brewer in the u. S. 30 of revenue comes from beverage and alcohol it is diversifying 30 from cannabis and 10 is health and wellness. Do you think investors will like that . You want the mix the mix opposed to pure play . Yeah. It offers more balance. It offers balance when the thc business is active . It may be a way to gain distribution in stores if they have a thc beverage that is allowed in the u. S. Thats what it is about im not sure. I didnt know if they sell these things together the way pepsi sells soda and chips together do people sell alcohol and marijuana together thc beverages. That i get. Or cannabis beverage. The Beverage Business it gives you the option i want to get to u. P. S. Here earnings crossing in 254 a share revenue falling short at 2 22. 1 billion. U. P. S. Is lowering expectations after the agreement with the tea teamsters. Stock is down 7. P4 we will see if the other Logistics Companies report the stock down 7. 4 . Coming up, get ready for the trading day ahead. U. P. S. Reporting eli lilly and under armour all report we will talk strategy. You are watching squawk box here on cnbc mlb chooses tmobile for business for 5g solutions. To not only enhance the fan experience, but to advance how the game is played. Nows the time to see what americas largest 5g network can do for your business. Welcome back to squawk box. We told you the softbank news and they will invest in the company a. R. M. This fall samsung is off slightly on that news. Equity markets will build on the gains yesterday. The best since the middle tof june our next guest says the focus should be on International Stocks lets bring in the cohead of investments at dornberg. Jeff, great to have you with us. What was notable about the big g gain was the big cap tech stocks is that why you have gotten cau cautious we are watching the consumer weaken and the Economic Cycle play out as you expect over the length in timeframe. We have seen positive earnings and we have been surprised by the resilience of the companys ability to pass through the increased prices to the end consumer and ability to support them the stocks have rallied. We pulled back and see recession in late this year or likely early 2024. Im sure you saw the moodys downgrade of u. S. Banks and highlighted the Second Quarter results with the quality of assets they have and headwinds with more on the commercial real estate portfolio with the mild recession in 2024. Do you agree with the call is that a source of concern for the markets . As always, it is a little bit on the late side we have been watching this for some time. It is 100 accurate. As it continues to shrink and everyone knows about the challenges with the commercial real estate side on the flip side, what we have seen is the consumer is hanging in the vision for losses continue to be lower than we expect you are really setting a dichotomy up with the Smaller Banks in the u. S. And larger banks in the u. S we focus on the defensive side of the Banking Sector and prefer to play the larnge money do you think the smaller to mid sized cap banks are the focus on the downgrade and we have seen the worst of it or is that another shoe to drop . I think there may be another shoe to drop as we see the rea realized numbers in the space. I would suggest we are past the worst of it. There is a bit more to come. What triggers the consumer to actually fall out of bed we have seen the consumer hang in with inflation high inflation is rolling over now. What is it at this point i would say it is not so much inflation, but we have to look through one level deeper as we see the consumer, it is strong one thing we are watching is the 30days delinquency to 60days delinquency. That is i forgot to i cant make a payment. We are watching the latter half of this Year Companies have had resiliency to pass through the prices and the cons consumers ability to absorb the prices with the student loan payments the back half of the year and employment fall, we see the Companies Pull back on the hiring plans and that feeds through more than inflation has year to date. You are chatting during break and how you are coming in pessimistic and things turned out better are you worried at this point and maybe things will hold on . I think markets have more momentum in the phase and they have a pendulum which swings to the extreme. We may have more to go on the momentum here. That is true. We are turning bearish with the playbook play out. We see banks pull back on their lending. We see overall loans increase particularly with the subprime lender we see signs to recession, but it is playing out longer than expected we are bearish and cautious, but there are interesting things to do you look at the International Side and valuations are less expensive than in the u. S. U. S. Yum china. I wonder if you are concerned about the Chinese Consumer with youth unemployment at a record high and they are not getting stimulus as people expected. That really gets to the young china consumer. That is right we have to keep in mind this is a decades long story the young china has the ability to double over the coming 10 or 15 years yes, absolutely. We are watching that space and that consumer in particular. They are challenged. Looking over the longer term, we expect additional stimulus much like the pendulum swings in the u. S. , the pendulum can swing in china. Are you worried about u. S. Tech i would say no we no, we are avoiding that space we want to stay away from the a. I. Stories we view a. I. As likely as an evolution and not a step change. There are a number of companies benefitting with the continued move in the chip space which is one area we like. Jeff, thank you for coming by thank you coming up on the other side of the break, zoom updating the return to work policy asking employees to come in to work two days a week. Interesting considering what they do. And as we head to break, look at shares of home depot and lowes downgrading the retailers from out perform to weak over cautious Consumer Spending we are coaming right back as squawk box rolls on. upbeat music woah. Constant Contact delivers the Marketing Tools your Small Business needs to keep up, excel, and grow. Constant contact. Helping the small stand tall. Well come back even zoom, the company, now throwing in the towel on fully remote work. The company that cashed in on the digital remote work is requiring two days a week in person a majority of employees work a hybrid schedule and 2 working inperson fulltime. Amazon and meta and the federal government pushed for more time in the office citing the need for inperson collaboration. Joining us in person, on her birthday, is lydia moynahan. Reporter at the new york post. I promised if you come in, i would sing it is good to do at the outset i can whistle. This is not what i signed up for. Whistling is different. Happy birthday to you its a segment not that long. Thank you for coming in. I will look for the dance and pirouette after the segment. What is going on here im surprised about this trend you spent time reporting on the inperson hybrid situation is it ever going to end or four days whats happening . When i first came in and talked about it, we talked about Quiet Quitting and now loud quitting that is amplified. When you have zoom, the company benefitted more than any other company from the work from home trend. It is saying there is a benefit to being in person a couple days a week thats all you need to know. We did know there would be a reset after the pandemic we are not going back to a fiveday schedule. I can work from home on friday and the world hasnt ended people dont quawant to give up that flexibility zoom says that is a trend a couple days a week we will see a hybrid model Going Forward. That is on wall street where you see people if you dont come in on saturday, dont bother coming in on sunday. You dont think five years from now it is back to five days i say this because it goes back to the cities and all of the Municipal Services and restaurants and businesses this is the debate around federal workers. How do you get people in d. C. Back in the office it is still a ghost town half the time not because you are in the office for the work product, but whether you need them there to make everything, quote, work is that the companys responsibility thats a great question i dont know if it is. I will say for those who with invested enormous amounts of money in real estate in offices, it is. Thats why you see banks with a vested interest in real estate are calling people back. It is who holds the power in the economy. We saw the workers during the pandemic who held the power. They were able to call the shots. One thing i want to touch on is the lazy girl job trend that has been going viral on the internet i dont want to be sexist what is it i want to belabor this with two schools of thought lazy girl jobs videos have tens of millions of views on tiktok. It is all the rage. Are you in one . No. I dont want to get fired. It is wild. You look at these people who are actively recording themselves watching netflix in their pajamas while supposed to be on the clock. It is shocking i think that trend is not going to be long for this world. If you are able to copy and paste. Are people seeing them getting fired . In some cases, yes. A year ago, there was a trend on social media where people record a day in the life videos. Ridiculous videos yoga at the salad bar. They record them walking to the office and have one meeting and getting a massage. Many were let go in the first round of tech layoffs. Now we are seeing that replicated these jobs are less competitive. They kiptypically out of college where people memos on chatgpt. If you write all your memos on chatgpt, then i think chatgpt can do your job. Is that what is happening here in some cases, yes. I have seen tiktok with the lazy girls are doing that. Unless they are not doing their jobs they say they will go to the gym now because they just filed a powerpoint with chatgpt. Have you seen this i will note another lazy girl school of thought. That is a reaction to all of the hustle culture and work hard and play hard. Why no lazy boys . Im sure there are. Andrew, you need to make that video. I think it is trademarked by lazeboy. I know it is early in the morning. Some other phrasing like loud quitting we have low motivation monday. It is a reaction to hustle culture and the burnout that a lot of people experience and realize if im getting paid 50,000 a year, there is a phrase act your wage they dont want to give up body and soul. We have to come up. Act the wage you want certainly. Young people at home. Thats why youre here. Dress for the wage you want, not the wage you have. Exactly lydia, on her birthday, educating us about lazy girl we should make it a regular thing with all the phrases. What with ll they think of n . Happy birthday. Ill do a full song later. Coming up, china out with export and import data later we will talk to Michelle Cabrera later. As we head to break, we have a look at the winners and losers of the s p 500 its hard to run a business on your own. With shopify, you have everything you need to setup your online store, to connect with customers, and to bring your dream business to life. Because when we work together, the future is bright. These days, your customers are not just down the hall. Theyre all over the world. So cute. It doesnt have to be lonely at the top. Join the millions to finding success on their own terms. Start your journey with a free trial today. Good morning welcome back to squawk box live from the Nasdaq Market site in times square. Im Andrew Ross Sorkin hanging out with melissa lee Dow Jones Industrial average is opening down 188 points. S p 500 would open off 20 points it was rainy yesterday overnight in china, the government saying exports fell by 14. 5 in july the worst than the 12. 5 drop expected i am pmports fell 12. 4 . President biden is expected to issue an executive order this week on curbing u. S. Investment this china citing security and other concerns lets bring in Michele Caruso cabrera. Good morning. You talked about it for some time what do we expect to hear and why did it take so long to get to this point . What we are expecting and we heard this before, but this is on executive order for the first time impose restrictions on u. S. Investment in china in specific ways where companies would be prohibited before providing investment dollars in s semiconductors and Artificial Intelligence and quantum computing. They have been talking about this for more than a year. It has taken this long because of the scope and scale for which se sectors. They were talking about p retroactive and they talked about deals that were already done or active inn vvestments a passive Investment National security is hawkish over dollars going to china. The other thing that delayed it is first they want janet yellen who spoke to the chinese and our allies to let them know it was coming. We dont have a sense of the exact scope in terms of retroactive . I think if eo came out at this point, private equity and other firms stayed away from investing in china in recent years. Im told retroactive is off the table. To your point, it has been happening. Derisking before the u. S. Government involved and the China Select Committee with so many things happening in china has meant equity firms have been disengaging from there this led to the National Security