Stock market news today: US stocks slide as inflation jumps more than expected | January 11, 2024

#stocks #inflation #YahooFinance #recession #bitcoin #Biden #Stockmarket #coronavirus #memestocks #Fed #YahooFinance #investing #stockmarket #crypto

To get the latest market news check out finance.yahoo.com

US stocks slipped on Thursday morning despite a fresh reading on December inflation that came in slightly hotter than economists had expected, raising new questions about the Federal Reserve’s path on interest rates.

The S&P 500 (^GSPC) fell about 0.8% after the benchmark ended Wednesday at its highest close since January 2022, just short of notching a new record. The Dow Jones Industrial Average (^DJI) slid 0.6% and the Nasdaq (^IXIC) led the losses, falling almost 0.9%.

Stocks have struggled this week as investors counted down to the US consumer inflation reading for December. That reading showed a slightly bigger jump than expected, as prices ticked up 0.3% month over month and 3.4% year over year. On a “core” basis, which excludes the volatile food and energy categories, inflation rose 3.9% over the past year.

The print was seen as critical for traders who have been increasingly pricing in the odds of a “soft landing” — where inflation retreats to 2% without an economic downturn — since the last CPI report.

Meanwhile, US spot bitcoin ETFs (full list here) began trading on Thursday after the SEC gave regulatory approval on Wednesday.

Bitcoin (BTC-USD) climbed above $46,000 to trade at its highest levels since March 2022, while rival ether (ETH-USD) jumped amid bets the second-biggest token is next to get the ETF green light.

Ahead of its quarterly financial update on Friday, Citigroup (C) said it will take more than $3 billion in one-time reserves and expenses in the results. The fourth quarter earnings season is crucial for stocks, given their dismal performance this year so far.

For more on this article, please visit:
https://finance.yahoo.com/news/stock-market-news-today-us-stocks-slide-as-inflation-jumps-more-than-expected-151949547.html

>>> WELCOME TO “YAHOO FINANCE,” I’M SEANA SMITH. THE CPI PRINT JUST RELEASED FOR THE MONTH OF DECEMBER. LOOKING AT THE NUMBERS, A BIT HOTTER THAN EXPECTED. THE INCREASE IN CPI, 0.3% MOVE TO THE UPSIDE. THAT WAS STRONGER THAN WHAT THE STREET WAS LOOKING FOR. 0.2% TO THE UPSIDE.

WHEN YOU LOOK AT THE CORE NUMBER, 0.3% RISE. THE HEADLINE NUMBERS, YEAR OVER YEAR COMPARISONS, CPI HEADLINE NUMBER AT 3.4%. AAIN, HOTTER THAN WHAT THE STREET WAS LOOKING FOR. THE CORE NUMBER ALSO COMING IN AT 0.1% HIGHER THAN THE STREET WAS ANTICIPATING AT 3.9%.

IT IS DOWN WHEN YOU COMPARE IT TO THE PRIOR READING THAT WE GOT ON CORE INFLATION, UP 4%. AGAIN, CORE INFLATION COMING IN STET W ANTICIPATING AT 3.9%.THE WE’RE SEEING SOME REACTION PLAY OUT IN THE FUTURES MARKETS RIGHT NOW, BRAD. >> LET’S LOOK AT SOME OF THE

INDEXES WITHIN THE INDEX HERE. INDEX FOR SHELTER CONTRIBUTED IN OVER HALF OFLL THE MONTHLY INCREASE. INCREASE IN ELECTRICITY INDEX AND THE GASOLINE INDEX MORE THAN OFFSET A DECREASE IN THE NATURAL GAS INDEX. THAT’S KIND OF THE LARGER ITEMS HERE. THE INDEX FOR FOOD AT HOME, THAT INCREASED 0.1%.

INDEX FOR TODAY AWAY FROM HOME ROSE 0.3%. THOSE PEOPLE WHO ARE EITHER COOKING AT HOME OR ORDERING A LITTLE GRUB HUSBAND, DOORDASH, CAVIAR, WHATEVER YOUR VICE MAY BE, YOU’RE CONTRIBUTING TO THOSE FIGURES ONE WAY OR OTHE WANT TO QUICKLY HIT THE HOUSEHOLD FURNISHINGS INDEX, AND

WE’LL DIVE INTO THESE. THAT IS THE HEADLINE TAKEAWAY WITHIN THE INDEXES. >> THE BIGTAKEAWAY FROM THIS IS EXACTLY WHAT THIS COULD MEAN FOR THE FED. A LOT OF ANTICIPATION GOING INTO THIS PRINT. IF WE WERE TO GET A READING SLIGHTLY HOTTER THAN EXPECTED, WOULD THAT BE ENOUGH FOR THE FED

TO POTENTIALLY PUSH OFF ANY PLANS OF A RATE CUT, AT LEAST THE FIRST HALF OF THE YEAR, SECOND HALF OF THE YEAR, WHETHER THAT WOULD DELAY ANY PLANNED CUTS AND DELAY THE CALCULUS AT THE FED IN TERMS OF WHAT THEY’LL ANTICIPATE TO SEE IN THEIR FIGHT

TO TAME INFLATION. IFLATION PROVING TO BE STICKIER THAN MANY FORECASTERS HAS PREDICTED FOR THIS MONTH. HOW THIS IMPACTS FED POLICY WILL BE THE FOCAL POINT. >> KEEPING A CLOSE EYE ON THE FUTURES HERE THIS MORNING. FOR MORE ON THAT, LET’S GET TO SOME HEAT MAP ACTION AND JARED BLIKRE.

>> WELL, WE’VE FLIED FM GREEN TO RED HERE. THE RUSSELL 2000 FEATURES OFF A HALF PERCENT. NASDAQ DOWN 12 BASIS POINTS. NOT A BIG MOVEMENT IN COMPARISON TO THE LAST FIVE DAYS OF TRADING. YOU CAN SEE JUST A LITTLE BIT OF A BLIP RIGHT THERE WHEN YOU

COMPARE IT THATWAY. LET’S LOOK AT TREASURY FEATURES. THESE MOVE INVERSELY TO YIELD. HERE WE HAVE THE TEN-YEAR T NOTE FUTURES, WE CAN SEE WE TOOK A BIG DROP. AGAIN, WE WANT CONTEXT. LET’S PUT THAT IN CONTEXT TO THE FIVE-DAY MOVE. SIMPLY TO THE BOTTOM OF A

TRADING RANGE OVER THE LAST FEW . THAT MEANS YIELDS ARE HEADING UP IN THE TEN-YEAR AND SIMILAR STORY FOR THE TWO-YEAR, THOUGH IT LOOKED LIKE WE BOUNCED OFF OF THE LOWS. LET’S LOOK AT COPPER FUTURES, SOMETIMES YOU GET MOVEMENT IN THERE AS WELL.

JUST A LITTLE BIT OF DOWNSIDE ACTION. GOLD HAS BEEN ON FIRE RECENTLY HITTING ALL-TIME HIGHS. IT LOOKS LIKE WE GOT A LITTLE SPIKE THERE. LET’S PUT THAT IN THE CONTEXT OF THE LONGER TERM. HERE’S A TWO-YEAR CHART. HERE’S THE RECORD HIGHS. CLOSE TO THOSE. LET’S CHECK THE SECTOR ACON.

WE HAVE SOME SECTORS IN THE GREEN, THAT WOULD BE ENERGY, CONSUMER PREFERENCES THERE REFLECTED IN XLC. COMMUNICATION SERVICES, THAT’S UP 0.4%. D DISCRE DISCRETIONARY, REAL ESTATE. WE WANT TO LOOK AT THE NASDAQ 100 AND FINANCIALS IN A SECOND. WE HAVE NVIDIA THREATENING

ANOTHER RECORD HIGH ON THE OPEN. HAD ONE YESTERDAY. IT’S BEEN ON A TEAR THE LAST FOUR, FIVE DAYS. THAT’S UP 1%. WE HAVE AMAZON UP ABOUT 1%. THEN JUST TAKING A LOOK AT THE FINANCIALS, BECAUSE WE HAVE THOSE BIG BANK EARNINGS COMING TO YOU THIS FRIDAY, JPMORGAN

DOWN HALF A PERCENT. WE SHOULD NOTE THE STOCKS ARE INTEREST RATE SENSITIVE AND ALSO SENSITIVE THEREFORE TO INFLATION. JPMORG DOW ABO HALF A PERCENT. HSBC DOWN ALMOST 2%. BANK OF AMERICA DOWN HALF A PERCENT. I WANT TO CLOSE ON CRYPTO. I WILL BE DOING A DEEPER DIVE.

WE HAVE THE SPOT BITCOIN ETFs SET TO TAKE PLACE, TRADING ON THE OPEN. WE ARE OFF OF THE LOWS HERROM ABOUT 45,000. LET’S LOOK AT THE FIVE-DAY PRICE ACTION HERE. WE ARE PRETTY CLOSE TO THOSE HIGHS. IMPRESSIVE THAT WE ARE SEEING BITCOIN MAINTAIN THOSE GAINS BUT NOT STOCKS.

NOT STOCK FUTURES. >> THANK YOU VERY MUCH. >>> LET’S GET INTO THIS REPORT AND THE REACTION PLAYING OUT IN WE WANT TO BRING IN STEVEN JUNO, BANK OF AMERICA SECURITIES U.S. ECONOMIST. JUST THE FIRST REACTION TO THIS HOTTER THAN EXPECTED INFLATION PRINT WE GOT THIS MORNING.

IS THIS ENOUGH TO DELAY CUTS? >> I DON’T THINK IT’S ENOUGH TO DELAY CUTS. I THINK IT WAS ABOUT IN LINE WITH THE BALLPARK OF ESTIMATES, A FEW BASIS POINTS OFF IN TERMS OF THE CORE PRINT. REALLY FOR THE FED, YOU KNOW,

WE’RE LOOKING FOR A MARCH CUT TO KIND OF KICK OFF THE CUTTING CYCLE. THIS KEEPS THE DOOR OPEN. IT DOESN’T SLAM THEOOR SHUT. pIF 0.4% ON CORE — ONE OF THE BIG REASONS FOR THE FIRMER PRINT, RELATIVE TO OUR EXPECTATIONS, IS THAT USED CAR PRICES INCREASED.

WE WERE LOOKING FOR A DECREASE THERE. WE KNOW THAT DECLINES IN USED CAR PRICES ARE IN THE PIPELINE. IF WE DIDN’T GET TM THIS MONTH, WE’LL PROBABLY GET THEM IN JANUARY OR FEBRUARY. SO YOU’LL SEE THAT KIND OF COME OFF. THE BIG CONCERN FOR THE FED I

THINK IS THAT THERE’S STILL THIS DICHOTOMY IF THE DATA. CORE PRICES ARE DEFLATING, CORE SERVICES REMAINS FIRM AND SHELTER REMAINS FIRM. THAT DOESN’T MEAN THE FED CAN’T START TO GRADUALLY EASE OFF THE RESTRICTIVE STANCE. >> I WANT TO LINGER ON THA FIRMNESS YOU WERE MENTIONING AND

THAT WE BROUGHT UP AT THE TOP OF THE READING ON SHELTER IN PARTICULAR. WHERE DO YOU BELIEVE OR WHEN DO YOU BELIEVE THAT SOME OF THE FED’S POLICY WILL ACTUALLY TRICKLE THROUGH TO THE SHELTER PART OF THIS? >> SHELTER IS AN INTERESTING ONE.

WE’VE BEEN WAITING FOR IT TO HAPPEN. I THINK WHAT WE’RE LEARNING IS THAT KIND OF IF YOU’RE ON THE RENTAL MARKET TODAY, IF YOU’RE LOOKING TO RENT A NEW APARTMENT TODAY, YOU’RE LOOKING AT MORE ATTRACTIVE RENTAL INFLATION. YOU’RE FINDING DISCOUNTS.

THERE’S A LOT OF SUPPLY IN THE MARKET. THE ISSUE WHENOU TALK ABOUT CPI METHODOLOGY, THE AVERAGE RENTS THAT EVERYONE IS FACING, WHAT WE’RE LEARNING IS THE LAG BETWEEN ASKING RENTS, WHAT A NEW RENTER IS FACING AND CPI RENTS, IT’S LONGER THAN WE EXPECTED IT TO BE.

WHEN WILL WE SEE IT? THAT’S THE MILLION DOLLAR QUESTION. WE’RETILLRYING TO FIGURE IT OUT. I THINK IT WILL HAPPEN GRADUALLY. WHAT YOU’RE SEEING FUNDAMENTALLY IS THE NORTHEAST IS AN AREA OF STRENGTH IN TERMS OF RENT INFLATION. THE REST OF THE COUNTRY HAS

AMPLE SUPPLY, IT’S ADDING A LOT OF SUPPLY. YOU’RE SEEING MORE DISCOUNT THERE. IT’S REALLY JUST THIS REGIONAL DYNAMICS. THAT CAN LD TO MAYBE FIRMER PRINTS ON SHELTER. IT COULD TAKE SOME TIME. >> ACTUALLY, THAT’S WHAT I WAS ABOUT TO FOLLOW ON. IS IT AS SIMPLE AS MORE CAPACITY

BEING BROUGHT ONLINE IN THE MORE EXPENSIVE RENT OR OWNERS EQUITY RENT KIND OF EQUIVALENT, IF YOU LL, MOR CAPACITY COMES ONLINE, THE COMMON THINKING IS THAT, YOU KNOW, SUPPLY AND DEMAND CHARACTERISTICS WOULD SAY PRICING WOULD COME DOWN. IS IT AS SIMPLE AS THAT AT THE

END OF THE DAY? >> ABSOLUTELY. IF IT WERE A SIMPLE THING TO ADD RENTAL SUPPLY, IT WOULD BE AS SIMPLE ASTHAT. THE ISSUE IS WHERE YOU ARE AT IN RENTAL SUPPLY, WHICH IS KIND OF IN THE SOUTH AND THE WEST AND THE SUNBELT, YOU ARE SEEING RENT PRICES COME DOWN.

YOU SEE IT IN THE CPI DATA. WHERE YOU’RE NOT SEEING RENTAL SUPPLY BEING ADDED, THE NORTHEAST. THAT’S MORE LANDLOCKED, MORE DEVELOPED, THERE’S GREATER DENSITY, THOSE AREAS, WHILE YOU’RE SEEING FIRMNESS THERE, YOU’RE PROBABLY SEEING RETURN OF POPULATION TO THOSE AREAS FROM PRIOR TO THE PANDEMIC.

YOU HAD KIND OF THAT OUTWARD MOVEMENT DURING THE PANDEMIC. NOW THOSE PEOPLE ARE STARTING TO ME BACK. THAT PROBABLY BOOSTS THE DEMAND PICTURE. >> WHAT ARE SOME OF THE SEASONALITY FACTORS WE NEED TO KEEP IN MIND WHEN YOU TAKE INTO ACCOUNT OR LOOK AT WHERE WE DID

SEE PRICING INCREASES LAST MONTH? AIRFARE IS ONE OF THEM. IT WAS DURING THE PEAK HOLIDAY TRAVEL SEASON. PUT THATNTO PERSPECTIVE FOR US AND HOW YOU’RE TAKING INTO ACCOUNT WHEN MAKING YOUR %-p. >> YEAH, THAT’S A GREAT QUESTION. WHAT WE DO IS WE ALWAYS TAKE THE

SEASONAL FACTORS INTO ACCOUNT AND AIRFARES HAS A LARGE SEASONAL FACTOR IN DECEMBER. THAT HELPS EXPLAIN THAT. WHEN YO ADJUSTED DATA, AIRFARES WERE DOWN ON THE MONTH. WHEN YOU LOOK AT DOMESTIC AVERAGE TICKET PRICES. IT’S THE SEASONAL FACTOR THAT IS CONTRIBUTING TO THAT RISE.

MAYBE WHAT THAT MEANS AS WE GO FORWARD, AIRFARE IS A SMALL COMPONENT OF THE BASKET WHAT THAT MIGHT MEAN GOING FORWARD IS JANUARY OR FEBRUARY IS A BIT SOFTER THAN DECEMBER. >> ONE OF THE OTHER AREAS WE HAVE TO KEEP A CLOSE EYE ON, AND

IT’S COME UP AS AN INVESTMENT THESIS THAT WE’VE DISCUSSED WITH SOME PEOPLE IN THE HEALTHCARE SECTOR SPECIFICALLY, MEDICAL CARE INDEX ROSE 0.6% IN DECEMBER,BOUTHE SAME AS NOVEMBER ROUGHLY. HOSPITAL SERVICES INCREASING. WE SAW PRESCRIPTION DRUGS INDEX FELL 0.4%. PERHAPS THAT COULD BE MECHANISMS OF MORE COMPETITION ENTERING THE

MARKET HERE. THAT IS A SERVICE THAT PEOPLE ARE GOING TO NEED TO CONTINUE TO BUY INTO ONE WAY OR ANOTHER. HOW STICKY IS THAT ELEMENT WITHIN THE FUTURE READINGS FROM YOUR ANTICIPATION? >> I DEFINITELY THINK THERE’S SOME STICKINESS THERE. THAT’S ALWAYS SOMETHING IN DEMAND.

WHEN YOU THINK OF THE STRUCTURAL DEMAND FORCES, WHILE WE HAVE AN AGING POPULATION, SO THE DEMAND FOR MICAL CE SERVICES, THAT’S JUST GOING TO KEEP GOING UP. WE ARE SEEING KIND OF RAPID HIRING IN THAT SECTOR. YOU KNOW, RELATIVELY STRONG WAGE INFLATION AS WELL.

THERE IS ROOM FOR FIRMNESS THERE. WHERE YOU HAVE TO BE CAREFUL, I THINK IN THE DATA, THERE’S SOME METHODOLOGY WORKS AROUND HEALTH CARE, WHY YOU SAW WEAKER READINGS LAST YEAR, IT WAS DUE TO THE HEALTH INSURANCE COMPONENT. AND THIS YEAR THE HEALTH

INSURANCE, HOW THEY CALCULATE IT IS MORE SITI. THAT CONTRIBUTES TO WHAT WE’VE SEEN OVER THE PAST FOUR MONTHS OR SO. GETTING TO YOUR POINT ON HOSPITAL SERVICES, PHYSICIAN SERVICES, I THINK THAT’S KIND OF STRUCTURALLY SOMETHING THAT WE’LL CONTINUE TO DEAL WITH. HEALTH CARE COSTS ARE EXPENSIVE.

>> SQUARING THIS WITH THE JOBLESS CLAIM NUMBERS WE GOT OUT, 202,000, LOWER THAN WHAT THE STREET HAD BEEN EXPECTING. SO WHEN YOU TAKE THAT INTO ACCOUNT AND THE LABOR MARKET HAS BEEN HOLDING UP NOW AND IS PRETTY TIGHT, YOU COMPARE THAT TO THE STICKINESS IN INFLATION,

HOW DO YOU THINK THE FED IS LOOKING AT THA MOS RECENT DATA AND THEN LOOKING AHEAD WHAT DO YOU THINK ARE THE KEY DATA POINTS THAT INVESTORS NEED TO KEEP A CLOSE EYE ON? >> I THINK INFLATION IS STILL PROBABLY THE BIGGEST FOCUS.

WE WERE TALKING ABOUT THE TIMING OF THE FIRST CUT, WE NEED TO SEE — WE’VE OBVIOUSLY SEEN WHAT CORE PC INFLATION OVERHE LT SIX MONTHS ON AN ANNUALIZED BASIS, WE’RE RUNNING AT 1.9%, SLIGHTLY BELOW THE FED’S TARGET. I THINK WHERE WE’RE GETTING IS PROGRESS THERE.

WE NEED TO SEE THAT CONTINUATION. IF WE SEE THAT OVER THE NEXT COUPLE OF MONTHS, MARCH IS OPEN FOR A CUT. THAT’S WHAT WE THI WL HAPPEN. THEY’LL KICK OFF THE CUTTING CYCLE THERE. WHEN IT COMES TO THE PACE OF THE CUTTING CYCLE, THAT’S WHERE THE

LABOR MARKET PLAYS IN FOR THE FED. OBVIOUSLY WITH THE CLAIMS DATA WE’RE STILL SEEING, YOU KNOW, REALLY GOOD CLAIMS NUMBERS. WE’RE NOT SEEING LAYOFFS, THAT’S . WHEN YOU LOOK AT THE DATA FROM DECEMBER, YOU’RE SEEING STRONG HIRING, RAPID HIRING THERE. IT’S NARROWLY DRIVEN, OF COURSE,

BUT IT’S STILL POSITIVE. THE UNEMPLOYMENT RATE IS STILL BELOW. THAT’S WHY THE FED, WE THINK, WILL BE GRADUAL IN THIS CUTTING CYCLE, RIGHT? YOU STILL HAVE THIS TIGHTABOR MARKET. YOU HAVE TO WORRY ABOUT THOSE FUNDAMENTAL DRIVERS OF WAGE INFLATION SUPPORTING INFLATION GETTING STUCK MAYBE ABOVE 2%.

WAGE INFLATION IS RUNNING AT 4%. MAYBE THAT’S CONSISTENT WITH 3% INFLATION. I THINK THE LABOR MARKET DICTATES MAYBE THE PACE OF THE CUTTING CYCLE. DO WE SEE SEQUENTIAL CUTS, DO WE SEE A 50 BASIS POINT CUT? THAT’S WHERE THE LABOR MARKET COMES INTO PLAY.

IF WE SEE DETERIORATION IN LABOR DEMAND, WHICH WE’RE NOT EING, BY THE WAY, THAT’S WHERE THE FED CAN GET A LITTLE BIT MORE WORRIED ABOUT THE ECONOMIC OUTCOME AND REALLY START TO CUT MORE QUICKLY. >> STEVE, ALWAYS A PLEASURE TO GET SOME OF YOUR INSIGHTS AND

PUT MORE COLOR AROUND THE DATA THAT HAS COME FORWARD. STEVEN JUNO, BANK OFMERICA GLOBAL RESEARCH U.S. ECONOMIST. THANK YOU VERY MUCH. >> ABSOLUTELY. >>> MUCH MORE MARKET COVERAGE AT 9:00 A.M. EASTERN ON “YAHOO FINANCE.” >>> BOEING’S CEO DAVE CALHOUN IS FINALLY SPEAKING. HE SAID THE COMPANY WILL

APPROACH THE SITUATION BY ACKNOWLEDGING THEIR MISTAKE AFTER A DOOR PLUG ON AN ALASKA AIRLINES FLIGHT BLEW OUT AT 16,000 FEET IN THE AIR. AS THE CEO TRIES TO SALVAGE THE SITUATION, OUR NEXT GUEST SAYS THE INCIDENT IS A MANUFACTURING INCIDENT WHICH SHOULD BE

CONSIDERED WHEN LOOKING AT WHO BEARS RESPONSIBILITY. WE HAVE JHAVE JASON GERSKY. THANK YOU FOR HELPING US DIVE INTO THIS AS WE TRACK DEVELOPMENTS THROUGHOUT THE WEEK IN WHAT YOU’RE MENTIONING, IN THE MANUFACTURING SIDE, WHAT NEED TO CHANGE FROM A BOEING MANUFACTURING PERSPECTIVE THAT

NOW AGAIN HAS THE MAX FRONT AND CENTER? >> I THINK THE FIRST THING WE NEED TO DO IS MAKE THAT DELINEATION BETWEEN A MANUFACTURING ISSUE VERSUS A DESIGN ISSUE. THIS LOOKS LIKE A MANUFACTURING ISSUE AND NOT A DESIGN ISSUE WITH THE AIRCRAFT.

IF IT WAS, INDEED, DESIGN-RELATED, WE WOULD PROBABLY HAVE A BIGGER PROBLEM ON OUR HANDS HERE, BECAUSE THEY WOULD HAVE TO GO BACK, REDESIGN THE AIRCRAFT AND GO BACK THROUGH CERTIFICATION PROCESS. WE’D PROBABLY BE FACING MUCH LONGER DEYS. THE MANUFACTURING SIDE OF

THINGS, YOU KNOW, IT LOOKS LIKE WE — THERE’S THE POTENTIAL HERE OF SOME POOR QUALITY. WE’VE SEEN SOME QUALITY ESCAPES WITH BOEING AND ITS SUPPLIERS OVER THE LAST 12 MONTHS. YOU KNOW, LAST SPRING IT WAS THE DALE SECTION OF THE 73 FUSELAGE.

OVER THE SUMMER IT WAS THE AFT BULKHEAD THAT HAD QUALITY ESCAPES. WHAT DO WE NEED TO DO HERE? PROBABLY HIRE SOME MORE PEOPLE THAT ARE DOING THESE KINDS OF INSPECTIONS. THE DUST AT RGE HAS STRUGGLED WITH GETTING EXPERIENCED EMPLOYEES INTO THESE FACTORIES POST-PANDEMIC.

THAT’S PROBABLY A CONTRIBUTING FACTOR HERE. JUST IT’S BEEN HARD TO FIND REALLY QUALIFIED PEOPLE. SO, YOU KNOW, DOUBLING DOWN THE EFFORTS ON GETTING PEOPLE UP THE LEARNING CURVE IN THE INDUSTRY, UNDERSTANDING WHAT THEY NEED TO BE DOING. AND THEN DOUBLING DOWN ON HIRING INSPECTORS, JUST FOCUSING A

LITTLE BIT MORE ON QUALITY ON THE BOEING FLOOR AS WELL AS ON THE FLOOR OF ALL OF THEIR SUPPLIERS. >> JASON, I’M CURIOUS ON HOW DAVE CALHOUN IN YOUR VIEW HANDLED THIS LATEST ISSUE IN TERMS OF WHAT WE HEARD HE TOLD

EMPLOYEES AT THE ALL HANDS MEETING ADMITTING ERRORS WERE MADE. ARE YOU CONFIDENT HE’LL BE ABLE TO REBUILD WHATEEMS TO BE A DAMAGING IMAGE THAT WE’RE SEEING AS A RESULT OF THIS FOR BOEING? >> YEAH, LOOK, I THINK THE FIRST PART OF ANY RECOVERY, RIGHT, IS

ADMITTING YOU HAVE A PROBLEM. THAT’S A HEALTHY THING, I THINK. HE’S BEING VERY TRANSPARENT WITH THE REGULATORS. HE’S BEINGRANSRENTITH HIS CUSTOMERS, HE’S BEING TRANSPARENT WITH HIS EMPLOYEES AS WELL ABOUT WHAT THE CHALLENGE IS HERE. I WOULD THINK THAT THIS WOULD BE A VERY HUMBLING EVENT, NOT JUST

FOR THE MANAGEMENT TEAM OF BOEING BUT FOR THE GUYS AND GALS RKINON THE FACTORY FLOOR. THEY TAKE A LOT OF PRIDE IN THE WORK THAT THEY DO, AND DELIVERING A PRODUCT THAT WORKS SAFELY AND TRANSPORTS MILLIONS OF PEOPLE EVERY DAY. SO, I’VE GOT TO IMAGINE THAT

THIS IS A VERY HUMBLING EXPERIENCE FOR EVERYBODY INVOLVED HERE, AND I THINK THE WAY THAT THEY’RE MANAGING THIS, I DON’T KNOW WHAT MORE THEY COULD DO AT THIS POINT, RIGHT? ADMIT YOU HAVE A PROBLEM, ADMIT THAT YOU’RE GOING TO WORK WITH YOUR REGULATORS AND CUSTOMERS TO

GET IT FIXED, AND TRYING TO MOTIVATE AND RE-EMPHASIZE TO THE EMPLOYEE BASE THAT, LOOK, BOEING IS SUPPOSED TO STAND FOR QUALITY ANSAFETY, ANWE GOT TO MAKE SURE WE’RE DOING THAT EVERY DAY. >> IS THIS — IS THIS INCIDENT PERHAPS INSULATED ENOUGH TO THE

POINT WHERE IT IS NOT AN OVERHANG ON FUTURE REVENUE OR EVEN PROFIT FOR BOEING? >> YEAH, THAT — YOU KNOW, NEVER SAY NEVER, RIGHT? WE HAVE SEEN QLITYSCAP OVER THE LAST 12 MONTHS, AS I’VE SUGGESTED A MINUTE AGO. FORTUNATELY, NONE OF THOSE WERE

SAFETY OF FLIGHT ISSUES FROM A QUALITY PERSPECTIVE. BUT LOOK, THE DASH NINE DOESN’T IT A B OF A UNIQUE PRODUCT. IT’S ONE THAT IS CONFIGURED TO BE ABLE TO HAVE MUCH DENSER CONFIGURATIONS, AND THEREFORE, IT HAS THESE EXTRA DOORS ASSOCIATED WITH IT.

MOST AIRLINES ARE NOT FLYING IT IN THAT REALLY DENSE CONFIGURATION, WHICH MEANS THEY’RE PLUGGING THE DORS. AND THIS HAS BEEGOINON SCE THE LATE 1990s. THE 737-900ER, HAD THOSE DOORS WE HAVE NOT SEEN ISSUES LIKE THAT. THE CURRENT VARIANT OF THE AIRCRAFT, THE MAX, HASEEN

FLYING SINCE 2015. AGAIN, NO ISSUES. SEEMS LIKE THE DESIGN IS GOOD. AND, YOU KNOW, THERE AREN’T ALL THAT MANY AIRCRAFT THAT BOEING IS SHIPPING OUT THAT HAVE THESE PLUGGED DOORS, RIGHT? THIS IS A BIT OF A UNIQUE PRODUCT. HOPEFULLY IT IS, YOU KNOW,

CONSTRAINED OR SPECIFIC TO THIS ONE PRODUCT. WE DEVELOPED A BETTER PROCESS ON CHECKING THINGS OUT BEFORE THEY THINK IT ALL GOES OUT THE FACTORY FLOOR, AND WE GET THESE PLANES BACK IN THE AIR SOONER THAN LATER AND IT ENDS UP BING

A SMALL BLIP IN THE HISTORY OF BOEING. >> JASON, I KNOW YOU THINK IT’S A LIMITED IMPACT IN TERMS OF FINANCIALLY, AT LEAST THE INFORMATION WE’VE GOTTEN SO FAR, BUT WHEN IT COMES TO THE CURRENT ORDERS, FUTURE ORDERS OF THE NINE MODEL, DO YOU SEE BOEING

BEING ABLE TO CONVERT THOSE ORDERS TO SOME OF THEIR OTHER MODELS? WHAT DOES THAT ROAD MAP LOOK LIKE? >> THEY’RE ONLY ABOUT 120 ORDERS ON THE BOOKS TODAY. SO, LOOK, IF THEY DECIDED THEY’RE JUST GOING TO WALK AWAY FROM THE DASH NINE PRODUCT,

WHICH I DON’T EXPECT THEM TO DO, BUT IF THEY WERE, THEY WOULD WORK REALLY HARD TO CONVERT THOSE INTO ORDERS FOR OTHER TYPES OF AIRCRAFT. EITHER THE DASEIGHOR T DASH TEN. I DON’T THINK, YOU KNOW, YOU CONVERT A DASH NINE ALL THE WAY

DOWN TO A DASH 7, WHICH IS THE SMALLEST VARIANT OF IT. YOU PROBABLY GO ON EITHER SIDE OF THE DASH EIGHT OR THE DASH TEN. THE DASH EIGHT IS THE ONE THAT’S CURRENTLY CERTIFIED AND THEY’RE DELIVERING TODAY. E DHEN STI HAS YET TO BE CERTIFIED, SO I GUESS THE

PROCLIVITY OF AIRLINES IF THEY NEED SOONER RATHER THAN LATER, WOULD BE THE DASH EIGHT BECAUSE IT’S CERTIFIED AND THERE’S NO UNCERTAINTY AROUND WHEN IT MIGHT GET CERTIFIED. >> WHAT IS, IF ANY, RESPONSIBILITY DOES THE FAA HAVE WITHIN THIS PROCESS AS WELL? BECAUSE PERHAPS THAT’S WHERE IT

DREW OUR ATTENTION BACK TO THE RELATIONSHIP THAT BOEING HAS WITH THE FAA, WHERE THE FAA HAS OVERSIGHT AT LEAST IN MAKING SURE THAT BEYOND THE DESIGN AND THEN EVEN INTO THE MANUFACTURING THAT EACH OF THESE AIRCRAFT ARE >>EAH, LOOK, TECHNICALLY, THE E

FAA DOES SIGN OFF ON THESE AIRCRAFT WHEN THEY GET DELIVERED. AND YOU KNOW, AS I SUGGESTED EARLIER, THIS CONFIGURATION WITH PLUGGED DOORS HAS BEEN AROUND FOR A REALLY LONG TIME, AND WE HAVE NEVER HAD AN ISSUE ON IT. SO, THE WAY THAT THIS KIND OF

WORKS IS THAT BOEING, YOU KNOW, DOES THINGS AND, YOU KNOW, BUILDS UP A VERY NICE, LONG TRACK RECORD OF DOING THINGS WELL TO THE POINT WHERE THE FAA SAYS, OKAY, YOU KNOW WHAT? I DON’T NEED TO COME IN AND INSPECT THAT.

YOU GUYS HAVE BEEN DOING THAT NOW FOR DECADES. JUST CONTINUE WHAT YOU’RE DOING. AND IT’S COSTLY FOR US TAXPAYERS TO HAVE THE FAA GOING OUT AND DOING THINGS LIKE THAT. SO, LOOK, BUDGET CONSTRAINTS AND BUDGET CUTS ARE REAL, AND THEY HAVE REAL IMPACTS IN WASHINGTON.

SO, I DON’T NT T– TS ISN’T THE FAA’S FAULT, BUT THEY HAVE CONSTRAINED RESOURCES THEMSELVES, AND IT’S — SO SHGS THERE’S A KIND OF DICHOTOMY GOING ON WHERE YOU WANT TO — YOU’D LOVE THE FAA TO BE SIGNING OFF ON EVERY AND OVERLOOKING EVERY SINGLE PROCESS.

THAT’S FROM A BUDGET PERSPECTIVE NOT POSSIBLE, AND YOU’VE GOT LONG HISTORY OF SAFE OPERATIONS OF AN AIRCRAFT THAT THE FAA WOULD LOOK AT AND SAY, I’VE GOT TO TRIAGE WHERE I’M GOING TO DO MY WORK, AND THIS ONE WAS NOT ON ANYBODY’S LIST BECAUSE WE’VE GOT

SUCH LONSAVEPERAONAL HISTORY TO DATE. >> JASON, GREAT TO GET YOUR INSIGHT. THANKS SO MUCH FOR TAKING THE TIME. LOOKING AT BOEING SHARES BOUNCING OFF THE LOWS, JUST UP ABOUT 1% IN TODAY’S SESSION. THANK YOU SO MUCH, JASON. .. .. .. >>> IT’S 9:00 A.M. EHERE IN NEW

YORK CITY. THIS IS THE “MORNING BRIEF,” TRACKING EARLY SESSION VOLUME WHILE BRINGING YOU TOP MARKET THEMES AND ELEVATING THE MOST POPULAR NEWSLETTER. >> WE’RE COVERING THE TOP MARKETS THIS MORNING, A FRESH SET OF INFLATION DATA AND A MILESTONE MOMENT FOR CRYPTO. SEVERAL EXCHANGE TRADED FUNDS IN

THE U.S. ONE OF THOSE MONEY MANAGERS IS GRAYSCALE. WE’LL HEAR FROM THE CEO MICHAEL SO SONNENHEIM, ALONG WITH SENATOR CYNTHIA LUMIS FROM WYOMING. >>> FIRST, YEAR ROAD MAP FOR THE DAY AND WE GET RIGHT TO IT. MARKET REPORTER JOSH SHAFFER, JARED BLIKRE AND MADISON MILLS

ARE AROUND THE NEWSROOM WITH MORE. >>> HEY, BRAD, INFLATION DATA COMING IN HOT ARE THAN EXPECTED, CONSUMER PRICES RISING PUT BEEN, DESPITE A RAPID COOLING, IT SEEMS A VICTORY MAY NOT BE ABLE TO BE DECLARED JUST YET. >> AND APPROVAL FOR 11 SPOT ETFs.

COINBASE’S CHIEF FINANCIAL OFFICER SPOKE TO YAHOO FINANCE ABOUT THE DECISION YESTERDAY. >> TODAY WAS A LANDMARK DAY FOR CRYPTO. TODAWE GOT 11 ETFs APPRO FROM THE S.E.C. MANY HIGHLIGHTED COIN BASE’S EXTENSIVE ROLE IN IT. >>> AND WE’LL BREAK DOWN WHAT

THIS MEANS FOR THE PRICE. >>> AND CITI GROUP IN THE MIDDLE OF A COMPLICATED RESTRUCTURING. SANG I A REGULATORY DOCUMENTS IT WILL TAKE MORE THAN $3 BILLION IN ONE-TIME RESERVES APPEARED EXPENSES. AND IT’S ONE OF HEAVY HITTERS KICKING OFF THE EARNINGS SEASON.

>>> LET’S GET TO OUR TOP STORY OF THE DAY, THE DECEMBER CPI REPORT SHOWS PROOSS WERE HIGHER THAN EXPENSED. WE SAW THE RISE 3.3% OVER 3.2%, THE EXPECTATION. THE ENERGY INDEX DRIVING A LOT OF THOSE GAINS, ALSO THE VOLATILE CORE INFLATION THAT

CAME IN AT 3.9% YEAR OVER YEAR. WE HAVE YOU COVED WITH THE THREE BIGGEST TAKEAWAYS. HOUSING, FOOD AND PRICES. >> SHELTER ACCOUNTING FOR MORE THAN HALF OF THE PRICE INCREASES THAT WE SAW IN DECEMBER. THAT’S ACCORDING TO THE BUREAU OF LABOR STATISTICS. YOU’RE LOOKING AT REDMOND OVER MONTH INCREASES.

THEN WHEN YOU LOOK AT HOMEOWNERS’ RENT EQUIVALENT, THAT WENT UP 5% MONTH OVER MONTH, AND 6.3% YEAR OVER YEAR, REALLY NOT MUCH OF A DECLINE FROM THE PRICE INCREASES THAT WE SAW IN NOVEMBER. WE KNOW OVERALL HOUSING HAS BEEN A KEY PART OF THIS STORY AND IS

ONE OF THE MAIN THINGS STILL HOLDING UP INFLATION AND PROVIDING SIGNIFICANT UPSIDE RISK. TO INFLATION, ECONOMISTS WOULD POINT TO THE DATA A BIT LAGGING, E GREENER ON THE OTHER SIDE IN THE LONG TERM, BUT FOR TODAY, THIS IS THE REPORT WE HAVE AND THE

SHELTER INDEX IS CONTRIBUTING A SIGNIFICANT AMOUNT TO THE HOTTER THAN EXPECTED NUMBER, SOME FOR NOW MARKETS DON’T SEEM TO LOVE. OFCOURSE, WE’RE ALWAYS WONDERING WHAT THAT MAY MEAN FOR PRICE HIKES. PRAS SUBRAMANIAN, WHAT DO YOU HAVE FOR US? >> CONTINUED OUGHTO PRICES IS THE THEME HERE.

THEY ROSE ONLY 1% YEAR OVER YEAR, A BIG DROP CPARE TO LAST YEAR’S NEARLY 6% JUMP. THE USED MARKET, PRICES CLIMBED A HALF PERCENT, AS IT REACHING SOME STABILITY. WE SEE THAT IN THE YEAR-OVER-YEAR FIGURE WE’RE SEEING THE SAME TYPE OF TREND IN

THE AUCTION MARKET WITH THE MANNHEIM INDEX DROPPING 7% IN 2023 AS WELL. BROOKE, ARE GROSSLY PRICES COMING DOWN AT ALL? NOT YET, PRAS. THE COST OF FOOD WAS STILL UP 2.7% COMPARED TO LAST YEARS, GROSSLY IN PARTICULAR JUMPED 1.3% YEAR OVER YEAR, UP 0.1% IN

THE MONTH OF DECEMBER. THE BIGGEST MONTH OVER MONTH JUMPS, AND REMEMBER THAT TOP EGG PRODUCER HERE IN THE U.S.? THEY HAVE REPORTED A CASE OF THE KANSAS FACILITIES, AND EGG PRICES JUMPED 8.9% AFTER MOD RAEGS AT THE END OF LAST YEAR. SEANA AND BRAD, BACK TO YOU.

>>> LET’S DIG INTO THIS TOP STORY OF THE DAY. IS IT TOO EARLY? WE HAVE TO BRING IN MAX COAT NER, IT’S GREAT TO HAVE YOU HERE. FIRST, YOUR REACTION AND WHAT YOU THINK, IF AT ALL THIS CHANGES THE CALCULUS FOR THE FED? >> YEAH, GOOD MORNING.

I DON’T THINK IT CHANGES THE CALCULUS FOR THE FED BUT AT THE MARKET, IT’S MORE HAWKISH, RIGHT? WHEN WE LOOK AT THE SUPER CORE INFLATION, IT’S ALL SORTS OF DIFFERENT MESH IRS OF INFLATION ARE ALSO STARTING TO PICK UP. IT’S ALL SORT OF LOOKING LIKE

THE LAST TWO OR THEY’RE MONTH IT’S GOING TO BE INCREDIBLY TRICKY, BECAUSE, REMEMBER, WHAT WE’VE NOT SEENN T REPORT, WE SEE THAT IN OTHER MEASURES. THAT COMPENSATION PLANS, WAGE PLANS ARE STARTING TO PICK UP, PIING UP. WE’RE STARTING TO SEE, OF COURSE, SUPPLY CHAIN PRESSURES

ARISING AGAIN WITH THE DISRUPTIONS IN THE RECEIPT SEA. YOU KNOW, PTTY MUCH ACROSS THE BOARD. IT’S NOT LIKE WE’RE SEEING A MASSIVE INFLATION, BUT PRETTY CLOSE TO THE CORE INFLATION THAT PEOPLE ARE UNDERESTIMATING THE 2.6, 2.7 IS PERHAPS THE LOU END. WE MIGHT HAVE BEEN AT RISK OF

PICKING UP AGAIN. >>> REMEMBER, IN THE LAST TWO, THREE MONTHS, THINK ABOUT WHAT HAPPENED, WE’VE SEENSSENALLY A RALLY ACROSS EVERYTHING. IMAGINE THREE MONTHS AGO YOU SAID I’M MASSIVELY BEARISH, LONG THE JAPANESE YEN, LONG GOLD, SO ESSENTIALLY YOU’RE BUYING ALL THOSE TYPICALLY SAFE HAVENS, YOU

WOULD HAVE BEEN EQUALLY AS CORRECT AS IF YOU HAD BEEN MASSIVELY RISK ON AND VERY OPTIMISTIC, SO LET ME BUY A HIGH YIELD IN EQUITIES, BUT BOTH RALLIED, AND EVERYTHING GOT SWEPT HIGHER FOR LOWER YIELDS. YOU POINT NOW IS, WHEN WE LOOK A

EXPECTATIONS, WHAT THE SMART MARKET IS PRICING IN, WITH THE SHORTER EXPECTATIONS ARE PRICED LIKE IN THE MARKET, THEY’VE OVER THE LAST TWO MONTHS.PED – JUST TO GIVE YOU AN INDICATION, IN THE EUROZONE, ABOUT THREE MONTHS AGO, FOR THE ONE-YEAR EXPECTATIONS, WE WERE TALKING

ABOUT A THREE, NOW IT’S DOWN TO 1.5%. WE’RE TALKING ABOUT 2.6, 2.7% FOR A ONE-YEAR INFLATION EXPECTATIONS. NOW, THAT’S ALREADY BELOW 2%. GIVEN THOSE REALLY LOW EXPECTATIONS ALREADY, AT LEAST A RISK OF PARTIALLY THAT BROAD-BASED RALLY UNWIDEN FROM THE LAST TWO, THREE MONTHS.

SO THE TRADING ALMOST SIDEWAYS UNTIL WE GET ANOTHER DATA POINT, WHAT DOES THIS REPORT SIGNAL TO YOU ABOUT THEPPETE FOR RISK AND SOME OF THE MOVES WE MAY SEE PLAY OUT OVER THE COMING WEEKS? >> I THINK OVER THE COMING WEEKS, I’M NOT TOO OPTIMISTIC.

WE WERE BULLISH ON EQUITIES, ON HIGH-YIELD CREDIT, REALLY ACROSS LAST YEAR, BUT THIS IS THE FIRST TIME SINCE THE BEGINNING OF LAST WEEK WHERE WE’RE HITTING THE POOR SPOT A BIT ON RISK ASSETS, SIMPLY BECAUSE THINGS ARE STARTING TO LOOK SHAKY ON THE INFLATION SIDE.

IT LOOKS LIKE WE’VE DONE IT A BIT TOO MUCH IN THE SHORT TERM, AND IN TERMS OF THE RISK APPEAR TIDE YOU ASKED ABOUT. WHEN WE LOOK AT THE AGGREGATE SENTIMENT MEASURES, WHICH IS A MIX BETWEEN SDRELGSARY AND SYSTEMATIC POSITIONING, RIGHT?

, THE CRUCIAL THING RIGHT NOW IS NOT ONLY HAS SENTIMENT POSITIONS BECOME MUCH MORE STRCHED COMPARED TO 2 1/2 MONTHS AGO, BUT ALSO BROAD BASED, NOT ONE PARTICULAR PART OF THE INVESTED COMMUNITY, WHERE POSITIONING IS A BIT MOVES STRETCHED. IT’S REALLY ACROSS THE BOARD

WHERE SENTIMENT AND POSITIONING IS MORE STRETCHED. IT’S FOR RISK APPETITE TO SEE LOWER I THINK, AND WE’RE AT RISK OF SEEING A BIT OF A CORRECTION, RIGHT? AND OF THAT BROAD-BASED RALLY ACROSS EVERYTHING, THAT AT LEAST BEING PARTIALLY UNWOUND THE NEXT FEW WEEKS, WHAT DO YOU BELIEVE

THE WORSE THING THAT CEOs COULD SIGNAL OUTSIDE OF THE ECONOMIC DATA, THAT WE MIGHT BE SEEING COME THROUGH, AND STILL LOOKING FOR A TREND TO BE LOCKED IN. WHAT IS THE THING YOU WOULD BE WATCHING FOR? >> ON THEEPORNG SEASON, THE

CONSENSUS IS FOR AN ALMOST 8 PICK AND ROLL DECLINE QUARTER OVER QUARTER FOR EARNINGS, SO IT’S VERY, VERY PESSIMISTIC. AGAIN, AT THE MOMENT YOU’RE IN A LOSE-LOSE POSITION. THE GLOBAL EQUITY PERFORMANCE HAS ALREADY BASED IN A LOT OF GOOD NEWS. EVEN IF THE REPORTING SEASON

DOES ACTUALLY SURPRISE TO THE UP SIDE MEANINGFULLY, WHICH I THINK IS ENTIRELY POSSIBLE, RIGHT? GIVEN HOW STRONG Q4 WAS FROM THE TOP-DOWN SIDE, BUT WE’RE NOW EXPECTING A MARCH RATE CUT. THE MARKET IS STARTING TO SAY, YOU’RE GOING TO HAVE TO CUT IN

MARCH, THEN IF NOT, IT HAS TO BE MADE. THE PROBLEM IS, EVEN IF THE REPORTING SEASON DOES TURN OUT TO THE BETTER, EVEN IFEOs DO START TO SAY OUR GUIDANCE ARE IMPROVING, THINGS ARE ACTUALLY PICKING UP. THAT WOULD BE SOME SOME WAYS

PRETTY BAD NEWS FROM A MARKET PERSPECTIVE, BECAUSE IT REALLY DOES TAKE OFF SOME OF THOSE FED RATE TS, AND DID CALL INTO QUESTIONS THE VALUATION RALLY WE HAVE SEEN IN Q4. >> MAX, THANKS FOR HELPING US BREAK DOWN WHAT INVESTORS SHOULD BE WATCHING FOR.

MAX KETTNER, GREAT TO SEE. THANKS. >>> A MILESTONE MOAN FOR BITCOIN. REGULATORS HAVE GRIFFIN APPROVE FOR 11 SPOT BITCOIN EXCHANGE-TRADED FUNDS. HERE’S WHAT COINBASE’S CEO HAD TO SAY LAST NIGHT. >> >> WE THEY IT’S THE FIRST STEP INTO A CRYPTO ECONOMY.

>> RACHELLE AKUFFO IS HERE WITH MORE. >> WE WANT TO SET THE STAGE BY SAYING FOMO ISN’T A STRATEGY. IF YOU WEREN’T ALREADY A BITCOIN ENTHUSIAST DON’T FEEL LIKE YOU HAVE TO BEGIN. I’M WATCHING 11 SPOT BITCOIN ETFs. GRAYSCE H THE HIGHEST FEES. YOU ALSO HAVE OTHER FACTORS,

INCLUDING LIQUIDITY AND FUND TRADING HOLDS. ACTIVE TRADERS ARE MORE LIKELY TO FOCUS ON LIQUIDITY. THIS IS A VERY IMPORTANT FIRST STEP, AS YOU MENTIONED IN THAT SOUND BITE THERE, AND WE LAID IT OUT WHEN WE SPOKE TO THE CFO. FOUND OVER THE PAST, THE THEY

STANDARD DIVE YATES RETURNS ARE FOUR OF THAT OF THE STOCK MARKET, AND ALL EYES ARE ON THE NEXT BIGGEST CRYPTOASSET, AND THAT ETHEREUM, JUST TO DIFFERENT NETWORK THAT IT RUNS ON, AND, OF COURSE, GARY GENSLER THROWING COLD WATER ON THE IDEA OF AN ETHER ETF.

SO, THIS IS A VERY DIFFERENT PRODUCT FROM BITCOIN AND IT TOOK A DECADE TO GET THAT S.E.C. APPROVE, BUT EVEN IF YOU LOOK AT THE PERFORMANCE OF BITCOIN AND ETHEREUM, IT’S A DIFFERENT STORY WHEN YOU LOOK AT SOME OF THE ALT COINS AND STABLE COINS THAT

HAVEN’T FARED AS WELL. >> I WAS SPEAK WITH ALICIA HAAS, CEO OF COINBASE, CALLING THIS A LANDMARK DECISION HERE FOR THE INDUSTRY, FOR HER BUSINESS AND BEYOND AND WHAT THIS WOULD DO FOR FUTURE INTERESTS, MAYBE DRAWING IN THOSE INVESTORS WHOHOOD NERVOUS ABOUT INVESTS IN

CRYPTO, IN BITCOIN IN THE PAST I’M CURIOUS IF YOU THINK THIS IS AN INFLECTION POINT. >> IF WE DO SEE SOME SUCCESS GENERATE A TON OF INTEREST WHAT DO YOU THINK THAT WILL SIGNAL TO US, HOW POPULAR THEY WILL BE, AND HOW MANY MORE PEOPLE WOULD

BE ALLOCATING SOME POSITIONING CLIPPO?THEIR PORTFOLIO TO THEY CLEARLY GAVE THIS BEGRUDGINGLY. AS YOU LOOK AT HOW THEY’VE PERFORMED IN CANADA AND OTHER PARTS OF EUROPE, WE DIDN’T SEE A HUGE UP SWING COME INTO THE FRAY IT DOES PERHAPS GIVE MORE CREEDENCE TO SOME OF THESE OTHER

LAUNCHES. >> WELL SAID, RACHELLE. NOW IT IS ABOUT THE LISTINGS COMING FORWARD HERE ON THE DAY. WE GOT A STATEMENT FRO NASDAQ THIS MORNING, RINGING THE OPENING BELL, YOU’LL SEE I-SHARES WITH IBIT, AND IT TOOK ME BACK TO MY DAYS OF PUBLISHING EQUITY ALERTS.

YOU’LL SEE IBIT, AND THEN ADDITIONAL VALKYRIE, BRRR IS THE TICKER SYMBOL, AND THEN OUR CONVERSATION WITH MICHAEL SONNENSHEIN, JEWELRY HYMAN WIL THAT THAT CONVERSATION, PLUS THE WISDOM TREE FOLKS CONFIRMED THERE WAS BCCW. SO THESE ARE THE LISTINGS THAT SOME OF THE INVESTORS WILL BE

WATCHING CLOSELY COMING FORWARD TODAY. AFTER ALL OF THE PRESS RELEASES AND THE VOLUME HAS MOVED FORWARD HERE, IT WILL BE A LGER QUESTION OF WHAT’S THE LONG TAIL FOR SOME OF THIS, TOO, RA RACHE? >> IT’S TRUE. >> IT HAS OPENED THE FLOODGATES. PEOPLE WILBEOMPARING ON

FEES, LIQUIDITY, SOME OF THE FUNDING COSTS AS WELL. SO WE’LL SEE IF IT BENEFITS OR IF IT COMES DOWN TO SOME OF THE NICKEL AND DIMING AS PEOPLE TRY TO COUNT THEIR COSTS, WHILE THEY STILL WANT A VERY VOLATILE ASSET IN BITCOINS.

>>> CITI IS ISSUES A STARK WARNING, THE BANK DISCLOSING BILLIONS OF ONE-TIME CHARGES TANNED RESERVES. SHARES MOVING LOWER AHEAD OF THE WEE LOOKING AT LOSSES OF NEARLY 2% AT THE OPENING BELL. MADISON MILLS HAS THE DETAILS. MADY, THIS IS SO SIGNIFICANT BECAUSE OF THE TIMING OF THIS

DISCLOSURE COMING BEFORE THE REPORT TOMORROW MORNING. >> THE SEISMT CRAMANT ARRIVES THESE COMPANIES TO ISSUE AS MUCH FORWARD GUIDANCE AS THEY CAN. THEY THE LOSSES WOULD COME TO THE TUNE OF A COUPLE MILLION, CHANGE THAT “M” TO A “B” BECAUSE OF TWO BIG LOSSES CITI IS CITING.

ONE IS RELATING TO CURRENCY CONVERSIONS FROM THE ARGENTINE CURRENCY. THAT COULD BE SOMETHING FOR INVESTORS TO TAKE A LOOK AT. THE FIRM COULD BE TAKING ON SOME COSTS IN AN EFFORT TO COST CUT. THAT’S EXACTLY WHAT WELLS FARGO’S MIKE MAYO IS SAYING. HE’S SAYING THIS IS ACTUALLY A

NAME TO POTENTIALLY INVEST HE SAID THAT CITI STOCK COULD DO DOUBLED ARED ENTIRE BANK SECTOR DOWN IN TERMS TESTIFY THE BANK EARNINGS TO COME TOMORROW. CITIGROUP DOWN 1%, ALMOST THE BIGGEST LAGGARDS. GOLDMAN WAS DOWN ABOUT 2%. I’M LOOKING AT THE LIVE NUMBERS,

GETTING A BIT OF RELIEF, SEEING ON MY SIDE CITIGROUP IS DOWN THE GETTING DINGS TO THIS NAME BECAUSE OF THE LOSSES ON THE BALANCE SHEETS. MARK MASON IS SAYING THEY’RE NOT PLANNING TO CHANGE THE STRATEGY MOVING FORWARD. THEY’RE GOING TO CONTINUE ALONG THE EXACT SAME TRAIN.

>> MADY, THANKS SO MUCH. WE’LL BE WATCHING THIS CLOSELY. >>> WE’RE JUST MINUTES AWAY FROM TAKING A LOOK AT FUTURES. >>> COMING UP, WE’LL BE WRAPPING UP A BUSY WEEK HERE AT THE “MORNING BRIEF.” “YAHOO FINANCE LIVE” IS AT CES LAS VEGAS, AND WE CAN’T FORGET

THE BIG KICKOFF TO EARNINGS ON FRIDAY. WE’VE GOT YOU COVERED ON ALL OF IT. CATCH US LOVE ON YAHOO FINANCE’S “MORNING BRIEF” ♪ >>> WELCOME BACK. WE’RE JUST MINUTES AWAY FROM THE OPENING BELL ON WALL STREET. TAKING A LOOK AT STOCK FUTURES HERE, YOU’RE LOONG AT THE DOW,

S&P 500, AND THE NASDAQ. FOR RIGHT NOW DOW AND S&P 500 ARE ABOUT AS FLAT AS IT GETS. NASDAQ IS UP ABOUT 1%. SO IT’S ALSO TIME FOR TODAY’S ENDING TICKER. AMAZON’S DEAL TO BUY IROBOT IN MAY MAY BE IN JEOPARDY. IT MISSED THE DEADLINE, AND

THEY’RE GOING TO LOOK AT THE SHARES OF BOTH AMAZON AND IROBOT, AMAZON MISSING THAT KEY DEADLINE, WHERE THE EU HAS HAD A HISTORY OF BEING MORE STRICT ABOUT ANNOUNCING SOME DLS WITH U.S. TECH COMPANIES EYE SPECIALLY WHEN YOU HAVE A NDFUOF NES THAT CONTROL THE MARKET.

TO THEIR BUSINESSES, AND THE RAPID GROWTH RACE THAT WE HAVE SEEN SO THE FACT WE’RE RUNNING INTO POTENTIAL REGULATORY ISSUE OVER THIS DEAL JUST BRINGS UP WHAT EXACT LID FUTURE ACQUISITIONS OR FUTURE BUYING PLANS COULD BE. INITIALLY WE SAW A HUGE DOWN

SIDE, AND IT LOOKS LIKE IT’S TRADING TO THE UP SIDE HERE. AGAIN, LOTS OF QUESTIONS WHICH NOW SEEMS TO BE IN JEOPARDY, GIVEN THE FACT WE ARE GETTING THESE DEVELOPMENTS OUT OF THE EU. AMAZON’S ONLINE MARKETPLACE IS A PARTICULARLY IMPORTANT PLACE TO SELL RBCs.

THEY RELY ON AMAZON BOTH IN TERMS OF PRODUCT DISCOVERY AS WELL AS FINAL PURCHASING DECISION, SO IT COMES BACK TO THE COMPETITIVE NAVYUCH. >> WE WERE JUST LOOKING AT THAT ABOUT 2% ON THE HEELS, THOUGH, OF THE 9% DECLINE.

>>> WELL, WE ALSO HAVE BIG NEWS IN THE ENERGY SPACE. CHESAPEAKE IS SET TO BECOME THE TOP NATURAL GAS PRODUCER, AS IT ANNOUNCES AN ALL-STOCK DEAL. CHESAPEAKE SHARES RISING. SOUTHWESTERN FALLING RIGHT NOW BY ABOUT 2% HERE. SOME OF THE TRANSACTION HIGHLIGHTS THAT THE COMPANY IS

POINTING OUT, CHECK APEEK ENERGY WILL BE COMBINES HIGH QUALITY LARGE-SCALE ACREAGE, AND THE PERFORMER HAS A NET PRODUCTION OF 7.9 BARRELS — 7.9 BILLION BARRELS — MORE THAN 5,000 GROSS LOCATIONS. >>> THEY HAVE ESTIMATED 5,000 DRILLING LOCATIONS, PROVIDING 15 YEARS OF DRILLING INVENTORY.

IT’S ALSO A CONTINUATION OF THE THEME WE’VE SEEN PLAY OUT. WE’VE TALKED TO STRATEGISTS TIME AND TIME AGAIN ABOUT MORE CONSOLIDATION WITHIN THE INDUSTRY, ESPECIALLY COMING OFF THE MASSIVE GAINS WE SAW FROM MANY OF THESE GIANTS HERE. SO THEY’RE LOOKING TO PUT SOME

OF THAT CAPITAL BACK TO RK. EXXON IS BUYING PIONEER, OCCIDENTAL SCOOPING UP, SO THIS IS THE LATEST DEAL. YOU SEE CHESAPEAKE MAKING A MOVE TO EXPAND THEIR EXPOSURE TO THE SOUTHWESTERN ENERGY, EXPECTED TO MORE THAN TRIPLING THE APPROVED RESERVE BASE. >>> JUST ONE QUICK REACTION FROM FITCH RATINGS.

THE RATING WATCH REFLECTING THE REASONABLE VALUATION, AND THE COMMENT BIND EQUITY ARE COMMENSURATE WITH INVESTMENT GRADE RATING HERE WITH STRONG GAS POSITIONS. WE’VE ALSO GOT THE OPENING BELL COMING UP ON WALL STREET. THERE YOU’RE LOOKING AT THE NASDAQ AND NEW YORK STOCK

EXCHANGE, JUST A MILESTONE OCCASION. >> A MASSIVE OCCASION HERE, AGAIN, WHEN WE TALK ABOUT THE INFLUENCE OF WHAT EXACTLY THIS IS GOING TO HAVE ON THE CRYPTOMARKET. WE’RE WIDELY SPEAKING, MORE BROADLY SPEAKING, IT’S HIGHLY ANTICIPATED THE DECISION WE GOT FROM THE S.E.C., HOW MUCH

INTEREST WE’LL BE SEEING WE’LL CLOSELY WATCH HERE. WE DID GET THE CPI PRINT JUST ABOUT AN HOUR AGO. JARED BLIKRE IS STANDING BY AT THE BEFORE ACTIVE WITH A CLOSER LOOK. >> HI. I WA JUST LOOKING FOR THI FIRST NASDAQ PRINT, WHICH WE GOT

A SECOND AGO, UP ABOUT 0.3%, AND S&P 500 UP ABOUT 0.25%, DOW RIGHT THERE WITH IT. INTERESTING TO DO STOCKS OPENING POSITIVELY. JUST A FEW MINES AGO WE SAW AN INITIAL DOWNDRAFT. UP OVER 2%, IT IS JUST WITHIN A HAIR — A HAIR OF ITS ALL-TIME

RECORD CLOSING HIGH AND INTRADAY HIGH FOR THAT MATTER. JUST — WE HAVE TECH THAT’S I THE LEADER SPOT, UP 0.75%, FOLLOWED BY ENERGY AND COMMUNICATIONS SERVICES, REAL ESTATE IS THE BIGGEST LOSER HERE, DOWN 0.8%, AND HEALTH CARE, BY THE WAY, INTERESTING TO SEE THAT HAPPEN, BECAUSE THOSE

HAVE BEEN THE LEADERS UP UNTIL YESTERDAY. LET’S GET A CHECK ON THE CRYPTO MARKET HERE. WE HAVE SOME ETFs THAT ARE JUST STARTING TO TRADE TODAY. DON’T PAY ATTENTION TOO MUCH TO THE RETURNS HERE, BUT FOR INSTANCE, IBIT, NOT TRADING HISTORY YET, BUT WE’LL CHECK ON

THAT TO SEE HOW THE TRADING DEVELOPS THROUGHOUT THE DAY. ALSO LOOKING AT BITCOIN ITSELF, THAT’S UP 5%, AND WHAT A ROCKY FIVE DAYS. BY THE WAY, I BELIEVE THIS IS THE HIGHEST IN YEAR WE CAN SEE OVER THE LAST FIVE DAYS, YES, HERE IS THE DECISION

WE GOT — WELL, IT ENDED UP BEING A FALSE DECISION A COUPLE DAYS AGO. HERE IS THE REAL DECISION, AND OFF TO THE RACES HERE. YOU GOTO GO ALL THE WAY BACK TO 2021. THERE IS A LOT OF PRICE MEMORY THERE, SO GOING TO TAKE ANOTHER CATALYST.

COULD IT BE THE SPOT ETHEREUM ETF? HEART TO SAY, BUT ETHEREUM IS UP 9%, JUST LOOKING AT SOME OF THE OTHER TOKENS HERE, FAR AND AWAY BITCOIN NOT QUITE THE BIGGEST, BUT SOME BIG GAINERS HERE IN THE SPACE. >>> YAHOO FINANCE REPORTER JARED BLIKRE, THANKS.

>>> HISTORIC MILESTONE FOR THE CR CRYPTOINDUSTRY. JULIE HYMAN IS STANDING BY WITH MIKE AN SHONENSHEIN WITH THE POST CONVERSATION HERE. JULIE? >> HEY THERE, BRAD. MICHAEL, THANK YOU SO MUCH FOR BEING HERE. WE’VE BEEN TALKING FOR A LONG TIME ABOUT THIS. >> YES, WE HAVE.

>> YOU HAVE BEEN WORKING ON THIS FOR A LONG TIME. FIRST UP, HOW DO YOU FEEL RIGHT NOW, WATCHING THE OPENING PRICES? >> I HAVEEVER BEEN MORE EXCITED OR PROUDER OF THE WORK THAT THE GRAYSCALE TEAM HAS DONE. I JUST HAVE TO TAKE A MOMENT AND

THANK ALL OF OUR INVESTORS OVER THE LAST TEN YEARS. THEY’VE BEEN EXTREMELY PATIENT, THEY HAVE SUPPORTED US, AND HONESTLY IT’S NOT WITHOUT THE SUPPORT WE WOULD BE HERE TODAY. >> SO, OBVIOUSLY YOUR PRODUCT EXISTED BEFORE AS A TRUST, HAS TRADED FOR A WHILE HERE.

YOU HAVE AN ADVANTAGE IN TERMS OF SIZE. YOU COME OUT OF THE GATE, YOU STARTED TRADING EAR TS MORNING. ON THE FLIP SIDE, YOU HAVE THE HIGHEST FEES AMONG THIS CROP OF NEW ETFs. WHAT DOES THAT COMPETITION LOOK LIKE AND THE PAST LOOK LIKE FOR GRAYSCALE?

>> THAT’S A GREAT QUESTION. THREE THINGS TO SAY ABOUT FEES. NUMBER ON WE MADE A COMMITMENT TO OUR INVESTORS WE WOULD LOWER OR FEES. I’VE COME ON THE SHOW COUNSELLESS TIMES TALKING ABOUT IT. WE HAVE REDUCED FEES BY 25%. INVESTORS SHOULD HAVE CHOICE. THERE ARE 11 SPOBITCN ETFs

AND IF IT WASN’T THE LAWSUIT WE WON, WE WOULDN’T HAVE FORGED AHEAD FOR ALL THESE MARKETS TO COME TO THE MARKET. AND WE’RE DIFFERENTIATED, BRINGING A MARKET VALUE TO INVESTORS THAT I THINK THEY KNOW AND APPRECIATE. IT HAS $28 BILLION IN AUMs. THAT MEANS THE SECOND LARGEST

SPOT COMMODITY ETF IN THE WORLD. YESTERDAY IT TRADED OVER 650 MILLION NOTIONALLY. GBTC HAS SIZE, LIQUID, AUM, AND OFFERED BY GRAYSCALE, A CRYPTO SPECIALIST. >> YOU’VE HAD A LOT OF INVESTORS WAITING FOR THIS MOMENT, WAITING FOR THE DISCOUNT TO CLOSE AS WELL.

DO YOU THINK SOME OF THOSE FOLKS WILL NOW BE GETTING OUT OF THE PRODUCT? >> NO, I THINK FOR MANY INVESTORS, AND BECAUSE GBTC HAS BEEN TRADING, WE’VE HAD INVESTORS COME IN OUR FUND ON SOME DAYS AND OUT SOME DAYS. WE’RE ACTUALLY MORE FOCUSED ON

INFLOWS AND GROWING THE FUND. IT REALLY OPENING THE OPPORTUNITY TO MUCH BROADER BASE OF INVESTORS. >> THABRIN UP MY NEXT QUESTION, THOSE, CHOSE YOUR CORE AUDIENCE? WHO’S THE BEST FIT FOR A GTBC? >> BITCOIN IS MULTI-DIMENSIONALS BUYING BITCOIN EXPOSURE DIRECTLY, WHETHER IN A RETIREMENT ACCOUNT OR BROKERAGE

ACCOUNT. IT COULD CERTAINLY BY THIS NEW AUDIENCE, FINANCIAL ADVISERS, FOLKS DESIGNING ASSET ALLOCATIONS, AND IT CERTAINLY COULD BE INSTITUTIONS AS WELL, WHO WILL LK TO PRODUCTS THAT HAS LEADING LIQUIDITY AND CAN PUT POSITIONS ON AND OFF. SO I THINK THERE’S SIMILAR TYPES

OF INVESTORS AS AN ETF. >> I WANT TO TALK ABOUT WHAT PEOPLE CAN EXPECT IN TERMS O PRICE, RIGHT? IT’S TRADING AROUND 42. >> THE PRICE OF BIT COUNSEL IS AROUND 47,000, SO HOW CLOSELY ARE THEY GOING TO EXTRAIC? >> THIS IS ONE OF THE GREAT

THINGS ABOUT THE ETF WRAPPER. ONE OF THE THINGS WE’ BEEO FOCUSED ON AND WHY WE’VE BEEN FIGHTING SO HARD FOR INVESTORS TO GET TO THE ETF WRAP ARE TO HAVE CREATION AND REDEMPTIONS OF THE ETF IS WHAT SHOULD CREATE THE ARBITRAGE OPPORTUNITY FOR

AUTHORIZED PARTICIPANTS TO KEEP THE TRADING IN MIND WITH THE UNDERLYING BITCOIN THAT THE SHARES HOLD. AND WE EXPECT THAT NOW TO HAPPEN. >>> LET’S TALK A BIT ABOUT CYBERSECURITY, WHICH WAS THROWN INTO RELIEF THE OTHER DAY BY THE UNAUTHORIZED TWEET THAT WENT OUT

THE S.E.C. X ACCOUNT. WE’VE SEEN HACKS, THEFTS, ET CETERA. HOW ARE YOU KEEPING IT SAFE? >> WE HAVE PARTNERED WITH COINBASE CUSTODY. WE BELIEVE THAT’S THE BEST IN CLASS FOR THE ASSETS THEMSELVES. WHEN I THINK ABOUT THE LAST 24, 48 HOURS, IT WOULDN’T BE CREPTO

IF THERE WASN’T SOME VOLATILITY. SO IT’S ALL BEEN A BIT OF A BLUR, BUT WHAT I CAN SAY WITH CONFIDENT IS CYBERSECURITY IS SOMETHING WE TAKE AS ALMOST OUR HIGHEST PRIORITY IS THE SAFETY AND SANCTITY OF THE ASSETS, AND WE FIELD CONFIDENT IN THAT REGARD.

AGAIN, THIS IS ONE OF THE THINGS THAT WILL CONTINUE TO DIFFERENTIATE US. GRAYSCALE HAS BEEN DOINGHIS FOR . IT’S WONDERFUL THERE ARE NEW ISSUERS IN THE MARKET WITH SIMILAR PRODUCTS, BUT THEY’RE JUST AT THE BEGINNING OF THAT JOURNEY, AND WHAT IT TAKES, THE INTRICACIES OF RUNNING

INVESTMENT PRODUCTS IN THIS NEW ASSET CLASS. >> THERE’S A LOT OF YOUR MPETITORS USES COIN BASE AS AS CUSTODY AS WELL. IS THERE TOO CONCERN THAT RISK BECOMES CONCENTRATED? >> I THINK OVER TIME WE’LL START TO SEE DIVERSIFICATION AMONG CUSTODIANS FOR A LOT OF FOLKS

LOOKG ATHE CUSTODIAL LANDSCAPE. I THINK COMING OUT OF THIS MOST RECENT CRYPTO WINTER, YOU MAY START TO SEE SOME ASSETS MOVE AROUND, SOME M&A ACTIVITY, AND THAT MAY MEAN DIVERSIFYING CUSTODIANS AS WELL. >>> I WANT TO A ABOUT ETHEREUM.

THERE IS SOME THINKING NOW THAT THIS HAS HAPPENED, SPOT ETHEREUM PRODUCT CAN ALSO BE APPROVED. WHAT DO YOU THINK? >> YEAH, THIS IS ANOTHER PLACE I BELIEVE INVESTORS HAVE BEEN PATIENT AND WAITING FOR A SPOT ETHEREUM PROCT T CE TO MARKET.pAS YOU KNOW, WE RUN THE

LARGEST ETHEREUM FUND, AND SO NOW THAT GBTC HAS FULFILLED THIS VERY PRESCRIBED LIFE CYCLE IT DOES PAVE THE WAY FOR ALL OF THE OTHER PRODUCTS IN THE GRAYSCALE PRODUCT FAMILY TO CONTINUE ALONG THAT PHASED LIFE CYCLE THAT OBVIOUSLY WE FILED TO A SPOT ETHEREUM AS WELL.

>> MAYBE I’LL BEOWN HERE IN A FEW MONTHS TALKING TO YOU AGAIN. >> I HOPE SO. >> MICHAEL, THANK YOU SO MUCH. AND CONGRATS. I KNOW IT’S BEEN A LONG ROAD. >> THANK YOU. >>> BACK TO YOU GUYS. >>> COMING UP ON THE OTHER SIDE

OF THIS SHORT BREAK I YAHOO FINANCE’S “MORNING BRIEF” WE’LL BREAK DOWN THE TOP WAYS TO PLAY THE LATEST INFLATION DATA. AND MAYBE A NICE RECIPE DISHED OUR WAY. ♪ >>> INFLATION DATA COMING IN SLIGHTLY HOTTER THAN EXPECTED THIS MORNING, CONSUMER PRICES

RISING0.3 ON A MONTHOVER MONTH BASIS, PUSHING THE HEADLINE RATE TO 3.4%. WHAT ARE SOME OF THE TOP PLAYS FROM THE REPORT AS WE SEE THE MARKETS REACT. WE WANT TO BRING IN KENNY POLCARI. KENNY, GREAT TO HAVE YOU. >> SO GREAT TO BE HERE.

I THINK THIS IS SO GREAT. BEAUTIFUL NEW STUDIO, IT’S PERFECT. WE’RE TRYING TO BREAK IT DOWN WHAT THIS MEANS FOR INVESTORS, THE TOP TRADES THEY NEED TO KEEP IN MIND. >> STEN I’M NOT SURPRISED. IT WAS EXPECTED TO TICK HIGHER, AND THAT JUST SUGGESTS THIS

FIGHT AGAINST INFLATION IS NOT NECESSARILY OVER. AGAIN, IT DEPENDS ON WHO YOU ARE AS AN INVESTOR, ARE YOU LONGTERM OR LIKING FOR DAILY VOLATILITY. ANYTHING TT MAK THE MARKET MOVE IS WHAT’S GOOD FOR YOU, BUT AS A LONG-TERM INVESTOR, YOU HAVE TO SIT BACK. THIS DOESN’T NECESSARILY CHANGE

MY OUTLOOK ON WHAT TO DO AND HOW TO ALLOCATION ASSETS AT ALL. IT MIGHT MAKE ME MORE CAUTIOUS AND BE MORE PATIENT VERSE TECH, WHICH IS ON FIRE, RIGHT? I’M NOT GOING TO CHANGE IT, BECAUSE I DO THINK THE MARKET WILL PULL BACK.

>> DOES IT MAKE YOU HESITANT TO TRADE A FED CUT AT THIS POINT? >> YEAH, BUT I WAS IN THE CAMP THAT THE FED WASN’T GOING TO CUT ALL ALONG. WHAT STARTED AS A — SUDDENLY TURNED INTO — AND WE’RE NOT TALKING ABOUT RATE CUTS.

SUDDENLY TURNED INTO WE’RE TALKING ABOUT IT, AND IT SUDDENLY TURNED INTO FIVE OR SIX RATE CUTS BY THE SUMMER, AND WE HAVEN’T EVEN GOT THE FIRST ONE YESTERDAY. THEN, ALSO DON’T FORGET IT’S A PRESIDENTIAL ELECTION YEAR. THE FED IS NOT SUPPOSED TO DO

ANYTHING SIX MONTHS IN ADVANCE OF A PRESIDENTIAL ELECTION. AFTER MAY, YOU’RE TOO CLOSE TO THE ELECTION. THEY CAN, IF WE TALL OFF THE EDGE. CAN THEY ALWAYS DO IT? YES, BUT IF THE ECONOMY REMAINS THE WAY WE’RE GOING. >> WHEN YOU LOOK AT A LOT OF

THOSE DISCRETIONARY PLAYS, ARE YOU STARTING TO SEE THAT THEY HAD BEEN SO RESILIENT STARTING TO SHIFT? >> YES, I THINK THE CONSUMER IS STRETCHED, AND AS WE GET MORE THERE ARE TEN-YEAR HIGHS, AND I THINK THAT WILL ONLY GET MORE DIFFERENT.

LOOK, EVEN IF THE FED CUTS RATES, OOMIDALE AND NORDSTROM’S AND J. CREW, THEY HAVE USURIUS RATES ON THEIR CREDIT CARDS. THEY’RE NOT CUTTING THOSE A PENNY, SO THERE’S NO BENEFIT TO THE CONSUMER. YOU BUY A HOUSE ARE SEASON? AND YOU’RE NOT BUYING A CAR

EVERY DAY, EITHER SO THOSE RATES WILL NOT AFFECT YOU AS IF YOU CARRY A BALANCE WHEREVER IT IS. >> WELL, THAT’S THE OTHER COMPONENT TO THIS. . IT WAS INTERESTING WHAT WE HEARD FROM KB HOMES, SAYING THEY’RE NOT NECESSARILY GOING TO PERHAPS FROM THEIR SIDE, SAY, A

MECHANISM OR PUT IN SOME OF THE PURCHASING DECISIONS IN ORDER TO SPUR DEMAND. >> THAT’S RIGHT. IF THAT’S TRUE, AND RATES HAVE COME DOWN, WE SAW THEM TICK AT 8% IN OCTOBER. THEY’VE NOW COME BACK DOWN 30 OR SOMEWHERE AROUND 6 1/2, OR MAKE HIGH-F

HIGH 5s NOW, BUT A LOT OF PEOPLE CONTINUE TO THINK, YOU KNOW, THEY’RE ALSO HISTORICALLY NORMAL, WHEN YOU THINK ABOUT IT. SO THERE NEEDS TO BE AN ADJUSTMENT THERE. I ALSO THINK THERE NEEDS TO BE AN ADJUSTMENT IN PRICES. PRICES STILL HAVE TO EASE BACK A BIT.

>> SO IT’S GOT TO BALANCE OUT SOMEWHERE. >> I THINK YOU’RE STARTING TO SEE IT IN SOME PLACES I LOVE IN FLORIDA ALONG THE WATER, SO THOSE PRICES DON’T COME IN THAT QUICKLY. LIKE ON THE OTHER SIDE OF 95, ARE STARTING TO SEE SOME

SOFTNESS, AND THEY’RE BUILDING LIKE CRAZY OUT THERE. SO THERE WILL BE MORE SUPPLY, SO I THINK IN CERTAIN AREAS YOU’RE GOING TO START TO SEE IT. >> WE’RE GOI TO START TO PET TIGSZ FOR A FLORIDA BRANCH OF YAHOO FINANCE. >> COME ON DOWN. [ LAUGHTER ]

>> THANKS FOR JOINING US. >> THANKS FOR HAVING ME. >>> WE HAVE MORE FROM THIS MORNING’S “MORNING BRIEF..” >>> WE’LL HAVE THE STATE OF PLACE AHEAD OF THE WAY CAUCUS. THAT’S NEXT. ♪ >>> THE IOWA PRESIDENTIAL DEBATE TOOK PLACE ON WEDNESDAY NIGHT WITH RON DeSANTIS AND NIKKI

HALEY VERBALLY SPARRING ABOUT THEIR POLICIES. LET’S BRING IN RICK NEWMAN TO GIVE US HIS INSIGHTS ON WHAT TOOK PLACE AND WATCHING ALL THE THINGS SO YOU REST OF US MIGHT NOT HAVE TO. >> THAT’S RIGHT. THESE DEBATES ARE TERRIBLE, GUYS. YOU MIGHT THINK SINCE IT’S

WINNOWED DOWN TO TWO OR SIX OR SEVEN OR WHATEVER WE HAD BACK IN THE SUMMER, IT WILL BE BETTER, BUT IT WASN’T REALLY. IT’S LIKE WATCHING TEENAGERS BICKER FOR TWO HOURS. THEY’RE CHARGING EACH OTHER WITH ARCANE VIOLATIONS, YOU DON’T KNOW WHAT’S TRUE, YOU DON’T KNOW WHAT’S NOT.

IN WATCHING THESE, YOU GET A FEEL FOR THE STYLE AND THE CHARACTER OF EACH CANDIDATE, SO THE PUNDITS, YOU KNOW, THIS MORNING A FEW SAY NIKKI HALEY WON BY AN EDGE, A FEW SAY RON DeSANTIS WON BY AN EDGE, SO

CAUSE IT A DRAW, TO THE EXTENT YOU COULD GET ANY INFORMATION WHERE THEY STAND ON ACTUAL ISSUES, RON DeSANTIS WANTS TO DECOUPLE THE U.S. ECONOMY FROM CHINA, THAT SOUNDS HARDER TO DO THAN IT MIGHT SOUND. NIKKI HALEY SAYS BEORE TARGETED. SHE’S WILLING TO TALK ABOUT

REFORMING SOCIAL SECURITY STARTING WITH YOUNG PEOPLE WHO MAY NOT GET THE SAME BENEFITS AS OLDER PEOPLE. RON DeSANTIS SAYING I WON’T TOUCH SOCIAL SECURITY. THERE’S A LOT MORE FOR ANYBODY BU MY ADVICE IS DON’T. REPLAY, >> SO MAYBE WE’RE NOT GOING TO

SPEND TIME WATCHING IT, BUT WHAT DOES IT MEAN GOING INTO THE IOWA CAUCUSES, IN TERMS OF WHAT INVESTORS NEED TO KEEP IN MIND AS WE LOOK AHEAD AND COUNT DOW TO NOVEMBER. >> THANK GOD WE’RE FINALLY GETTING TO THE VOTING PART OF THE CAMPAIGN, WITH IOWA STARTING

NEXT WEEK, AND THEN WE’LL BE PLUNGED RIGHT INTO IT AND GET TO SUPER TUESDAY, WHICH MIGHT BE THE DEFINITIVE EVENT AT THE BEGINNING OF MARCH. I THINK WHAT TO WATCH FOR IN THE IOWA CAUCUS, IN TERMS OF THE OUTCOME, THIS IS ALWAYS A WEIRD

DAY THAT DOESN’T NECESSARILY PREDICTION ANYTHING ABOUT THE REST OF THE ELECTION. SOMETIMES IT’S AN OUTLIER, BUT THE THING TO LOOK FOR IS DONALD TRUMP IS WAY AHEAD, POLLS AT ABOUT 54% IN IOWA AMONG REPUBLICANS. SO I THINK WE’RE WATCHING TO SEE, DOES TRUMP MEASURE UP?

DOES HE GET THAT PORTION OF THE VOTE OR SOMETHING LESS? IF TRUMP GETS LESS THAN 50%, I THINK THAT WOULD BE AN OCCASION OF SOME WEAKNESS FOR TRUMP. THEN WE GO TO NEW HAMPSHIRE THE WEEK AFTER. NIKKI HALEY IS EXPECTED TO DO

BETTER IN NEW HAMPSHIRE THAN IN IOWA, AND I THINK THOSE TWO CONTESTS WILL TELL US, DOES TRUMP HAVE A LOCK ON THIS THING, OR IS THERE SOME WEAKNESS AND SOME ROOM FOR ONE OF THESE OTHER TWO CANDIDATES TO PERHA CHALLENGE TRUMP? THIS MATTERS A LOT FOR MARKETS.

THERE’S A LOT AT STAKE IN THE 2024 ELECTION. THE BIGGEST THING IS TAX CHANGES, WHERE SOME OF THE 2017 TRUMP TAX CUTS EXPIRE AT THE END OF 2025. THOSE ARE MOSTLY THE ONES FOR INDIVIDUALS. YOU KNOW, WHOEVER WINS IN 2024, THAT IS GOING TO BE DECISIVE IN

TERMS OF WHETHER WE GET CONTINUED TAX CUTS FOR PEOPLE OR THERE’S SOME CHANGE SUCH AS HIGHER TAXES ON THE WEALTHY, POSSIBLY HIGHER TAXES O BUSINESSES AND ALL THAT. AS TEDIOUS AS THIS ALL SEEMS, IT DOES MATTER. FOR BREAKING IT ALL DOWN, AS WE KICK OFF IOWA CAUCUSES.

RICK, THANKS SO MUCH. >> BYE, GUYS. >>> COMING UP NEXT NEAR ON “MORNING BRIEF,” WHY TECOLOG MAY STILL BE A TOP PICK DESPITE THE FACT WE’VE SEEN SOME WEAKNESS FROM THE BEGINNING OF THE YEAR. WE’LL TALK ABOUT THAT ON THE OTHER SIDE OF THE BREAK.

♪ >>> WELCOME PACK BACK TO “YAHOO FINANCE LIVE,” I’M BRAD SMITH ALONGSIDE SEANA SMITH. WE’RE ABOUT 40 MINUTES INTO THE START OF TODAY’S TRADING SESSION, WELL, 31, TO BE EXACT. HOW THING ARE SHAPING UP? LET’S TAKE A LOOK. THE MAJOR AVERAGES, AS YOU’VE

SEEN, WE’VE GOT THE S&P 500 DOWN BY ABOUT 0.1%. THIS MORNING’S INFLATION DATA SHOWED CONSUMER PRICES ROSE MORE THAN EXPECTED IN DECEMBER. >>> ALL RIGHT, AND SOME OF THOSE INDIVIDUAL NAMES ON THE MOVE, COINBASE, NOW IT’S ACTUALLY LOWER, OFF JUST ABOUT 0.5% ON

THE FIRST DAY OF TRADING FOR SPOT BITCOIN ETFs. WE’RE TALKING ABOUT COINBASE, ISHE BCOIN CUSTODIAN FOR USE IT MOST OF THE FILINGS THAT WERE APPROVED BY THE S.E.C. YESTERDAY. I SPOKE WITH ALICIA HAAS RIGHT AFTER THE NEWS BROKE. SHE CALLED IT A LANDMARK DAY FOR CRYPTO.

>>> AND A DOWNGRADE FROM WELLS FARGO, TAKING A BITE OUT OF YUM! BRANDS SHARES TODAY. THE ANALYST ROGER REEDUTTING THE STOCK DOWN TO EQUAL WEIGHT FROM OVERWEIGHT SAYING THE BULLISH THESIS FOR THE STOCK IS LARGELY PLAYED OUT. >>> AND CHEWY BOOSTED TO OVERWEIGHT AT BARCLAY’S,

ANALYSTS SAYING HE SEES POTENTIAL FOR OUTSIZE RETURNS IN THE COMPANY’S E-COMMERCE BUSINESS THIS YE. HE BELIEVES THAT AREAS LIKE ITS VET CLINICS AND INSURANCE COULD DRIVE POSITIVE REVISIONS LONGER TERM AS THOSE BUSINESSES SCALE. >>> WELL, IT’S BEEN A TOUGH YEAR FOR TECH SO FAR, STARTING WITH

DOWNGRADES ON APPLE STOCK AS ANALYSTS BECOME CONCERNED WITH THE TECH GIANT’S iPHONE SALES. THEN, WE HEARD FROM THEIR RIVAL, SAMSUNG, WHO WARDEN OF A 35% PLUNGE IN PROFITS IN ITS FOURTH QUARTER. NOW, LAYOFFS AT GOOGLE AND AMAZON SHOULD INVESTORS BE WORRIED ABOUT THE SECTOR?

WE’VE GOT BRIAN BELSKI, BMO CAPITAL MARKETS CHIEF INVESTMENT STRATEGIST. SHOULD INVESTORS BE WORRIED ABOUT THIS JUNCTE? WE’RE ONLY 11 DAYS INTO THE CALENDAR YEAR. >> LET’S JUST BREATHE A LITTLE BIT. BY THE WAY, THE SMITHS WERE A GREAT BAND IN THE ’80s, BUT HAVE

YOU HEARD THAT JOKE BEFORE? >> NOT LIVE ON TV. YOU KNOW? BRAD PLAYS THE DRUMS. SO MAYBE. >> YOU KNOW, THERE’S LOT OF DIFFERENT CALLS OUT THERE ON TECH, AND YOU KNOW, OUR WORK SHOWS THAT, ESPECIALLY AFTER THE TYPE OF UNBELIEVABLE PERFORMANCE WE SAW IN 2022 ON THE DOWNSIDE,

AND THEN UNBELIEVABLE HAVE TO TAKE A LOOK AT TWO-YEAR PERIODS, AND FOLLOWING TWO-YEAR PERIODS LIKE THIS THAT WE’VE SEEN IN TECHNOLOGY SINCE THE GREAT TECH BUBBLE, OKAY, TYPICALLY AND HISTORICALLY, THE 80% OF THE TIME, THE NEXT YEAR, WE SEE POSITIVE RETURNS. THAT’S NUMBER ONE.

BUT I THINK THE MOST IMPORNT THING THAT YOU TALK ABOUT ALL THE TIME ON AIR IS VALUATION, VALUATION, VALUATION. AND WE HAVE FOUND, THROUGH OUR WORK, THAT VALUATION ACTUALLY, AND TECHNOLOGY ESPECIALLY, IS A TERRIBLE PREDICTOR OF FUTURE RESULTS, AND IN FACT, WE

BELIEVE, IF YOU TAKE A LOOK AT ALL PARTS OF THE FINANCIAL STATEMENTS, SO, BALANCE SHEETS, CASH FLOWS, INCOME STATEMENT, WE’VE ALREADY SEEN A BIT OF A PULLBACK IN VALUATIONS, AND TECH IS NOT STRETCHED, AND WE’RE NOWHERE NEAR ANY KIND OF BUBBLE OR FROTH.

>> THAT VALUATION POINT THAT YOU JUST MADE, IS THAT TECH SPECIFIC, OR DO YOU ALSO SEE THAT IN OTHER AREAS, OTHER SECTORS OF THEARKE IN TERMS OF I BEST INDICATOR. >> TRADITIONALLY, IT IS NOT A VERY GOOD INDICATOR AT ALL, ESPECIALLY FOR THE STOCK MARKET.

OVER A FIVE TO TEN-YEAR FRAME, YES. BUT OVER A ONE TO TWO-YEAR FRAME, COME ON, WE’RE TALKING A. WE HAVE THE ATTENTION SPANS OF GNATS IN TERMS OF INVESTORS RIGHT NOW, AND WE HAVE NO HOLDING PERIOD. WHEN WE TAKE A LOOK AT A STOCK,

AN INDUSTRY, A SECTOR, A PORTFOLIO WE RUN, AND WE HAVE GREAT FORTUNE OF RUNNING 12 FOR BMO. WE LOOK FOR 12 O 18 MONTHS, AND WE LOOK POSITIONALLY. APPLE. EVERYBODY LIKES TO BEAT UP APPLE. GUESS WHAT I HAVE LEARNED? YOU BUY APPLE WHEN IT GOES DOWN.

YOU TALKED ABOUT GOOGLE AND AMAZON CUTTING COSTS. THAT’S EXACTLY WHEN YOU WANT TO BUY STOCKS. THERE’S BEEN FINANCIAL COMPANIES IN 2023 THAT C A L OF PEOPLE, PAID A LOT OF PEOPLE DOWN ON WALL STREET, CUTTING COSTS. THAT’S EXACTLY WHEN YOU WANT TO BUY THE BANKS.

YOU WANT TO BUY COMPANIES WHEN THEY GET “RELIGION” AND BECOME TIGHTER WITH RESPECT TO HOW THEY’RE RUNNING THEIR BUSINESSES. >> WHEN WE THINK ABOUT SOME OF THE S&P 500 TARGETS WE’VE HEARD WI BE DRICH BY TECH, OR IS T THERE ANOTHER SECTOR YOU BELIEVE

IS GOING TO EMERGE AS THAT LEADER? >> EVERY YEAR, I TRY TO SNEAK SOMETHING THROUGH COMPLIANCE ON MY YEAR AHEAD PIECE, AND THIS YEAR, WHEN WE TALK ABOUT SIZE AND STYLE, THE HEADING IS, EVERYBODY LOVE EVERYBODY. JACKIE MOON. IF YOU KNOW YOUR SEMI-PRO POP CULTURE.

>> WILL FERRELL? >> EXACTLY. THAT GUY. ANYWAY, YOU WANT TO OWN A LITTLE BIT OF EVERYTHING. SO, WHAT DOES THAT MEAN? FROM A SECTOR PERSPECTIVE, YOU WANT TO OWN TECH AND FINANCIALS. TECH’S GROWTH. FINANCIAL IS THE CONTRARIAN VALUE SIDE OF THINGS. EVERYBODY HATES THE BANKS. THEY BELIEVE THEY’RE GOING TO

ZERO. NOW EVERYBODY THINKS TECH IS OVER. SO, I THINK YOU NEED TO BE IN VALUE, YOU NEED TO BE IN GROWTH, YOU NEED TO BE IN DIVIDEND GROWTH, YOU NEED TO BE IN SMALL CAP. WE’VE BEEN BULLS ON SMALL CAP FOR A LONG TIME, ERYBO’S

COMING AROUND WITH US, BUT SMALL CAPS, IF YOU TAKE A LOOK AT THE ENTIRE SMALL MID CAP UNIVERSE, IT EQUATES TO THE TOTAL MARKET CAP OF APPLE. IS THAT AMAZING? >> YEAH. >> THAT IS AMAZING. >> THINK ABOUT THAT. THAT’S PERSPECTIVE. >> YEAH. BUT ALSO PUTS IN PERSPECTIVE THE

MOVES THAT W SEE AND THE EXCITEMENT THAT WE’VE SEEN AROUND THE MARKET. BUT WHEN WE TALK ABOUT — YOU MENTIONED FINANCIALS IN THERE. EVERYONE LOVES TO HATE ON FINANCIALS. WE GOT TO BRING UP THE CITI NEWS WE GOT OUT LAST NIGHT, DON’T

WANT TO MAKE TOO MUCH OF ONE UPDATE, BUT THE BILLIONS THAT THEY HAVE ANNOUNCED HERE JUST IN TERMS OF RESERVES, IN TERMS OF THEOSTUT THAT THEY SEE GOING FORWARD HERE, DOES THAT AT ALL CHANGE YOUR THESIS, PROBABLY NOT, JUST ABOUT THE LARGER FINANCIAL SECTOR?

AND I GUESS, WHEN YOU TAKE A LOOK AT A HEADLINE LIKE THAT, PUT THAT INTO CONTEXT FOR OUR VIEWERS. >> TYPICALLY AND HISTORICALLY, WHEN BANKS OVERRESERVE, THEY TRADITIONALLY ARE TOO CONSERVATIVE AT THE WRONG TIME. THEY SHOULD HAVE BEEN CONSERVATIVE MAYBE A YEAR AGO.

AND NOW, WE’VE SEEN MASSIVE RESTRUCTURING IN CITI, NEW MANAGEMENT. THAT’S EXACTLY WHAT YOU WANT TO SEE. FROM AN INSTITUTIONAL PERSPECTIVE AS WELL, I WOULD BE MORE — WE OWN JPMORGAN AND SOME GROWTH PORTFOLIOS BUT WE SWITCHED A LOT OF OUR JPMORGAN

INTO CITI BECAUSE I THINK THAT JPMORGAN HAS TO ABSOLUTELY NAIL ITS RESULTS, BECAUSE EVERYBODY’S KIND OF COUNTING ON THAT STOCK WHERE CITI, PEOPLE ARE LIKE, NO, WELL, YOU KNOW, I DON’T REALLY KNOW, AND NOT A LOT OF CITI, SO I THINK THAT CITI IS

MORE OF A CONTRARIAN NAME HERE. >> SO, WITH THAT MUCH GOLDILOCKS THAT’S IN THE TAPE RIGHT NOW, THEN WHAT SHOULD INVESTORS BE BRACING FOR AT THIS POINT? >> WELL, I THINK, YOU KNOW, YOU STARTED OFF THIS — OR AT THEENED END OTHE HOUR, POLITICS.

SOME REACTIONARY, MAYBE THINK OF IT S A MINI-2016. 2016 WAS VERY VOLATILE. WE HAD BREXIT. EVERYBODY THOUGHT THAT WAS VERY BAD, AND THEN WE HAD THE ELECON. AND SO, I THINK WE’RE GOING TO HAVE SOME VOLATILITY IN THAT, BUT I THINK THE SECOND HALF OF

THE YEAR COULD BE A LOT BETTER, BECAUSE WHAT WE’RE SEEING IN OUR WORK, THE EARNINGS ARE GOING TO BE REALLY GOOD. A YEAR AGO, NOBODY BELIEVED IN EARNINGS, AND THEY BEAT EVERYBODY. NOW, AGAIN, THIS YEAR, IT’S LIKE, EXPECTATIONS ARE TOO HIGH. NO, ACTUALLY, FROM A REVISION

STANDPOINT, WE’RE SEEING REVISIONS START TO COME IN, AND THE EARNINGS EXPECTATIONS, ESPECIALLY FOR THE AREAS THAT I THINK ARE GOING TO DRIVE THE MARKET, WHICH WAS PART OF YOUR QUESTION, TECHNOLOGY AND FINANCIALS, BUT DON’T DISCOUNT THE CONSUMER. CONSUMER’S STILL DOING GREAT IN

AREAS LIKE COMMUNICATION SERVICES WITH RESPECT TO THE GOOGLE AND NETFLIX HAVE A LOT OF EARNING POWER. >> BRIAN BELSKI, THANK YOU SO MUCH FOR STOPPING BY. WE’LL TALK TO YOU AGAIN SOON. >>> COMING UP NEXT HERE ON “YAHOO FINANCE LIVE,” AFTER A TUMULTUOUS WEEK FOR BOEING, HOW

ARE AIRLINES FARING? pTAKING A L AT LEAST, OFF ANOTHER 1.5% TODAY. WE’LL HAVE MORE ON THAT. WE’LL BE RIGHT BACK. ♪ >>> IT’S JANUARY, AND IT’S COLD IN NEW YORK CITY, SO THE YAHOO! FINANCE TEAM IS PACKING UP ITS SKIS AND INVESTING KNOWLEDGE AND

HEADING TO THE SWISS SLOPES FOR THE WORLD ECONOMIC FORUM IN VOS. I KNOW WHAT YOU’RE THINKING, FOLKS, IT’S COLDER THERE IN SWITZERLAND, BUT MYSELF, JULIE HYMAN, AND THE “YAHOO FINANCE LIVE” TEAM PLAN TO HEAT THINGS UP WITH SOME BIG-TIME INTERVIEWS

WITH THE WHO’S WHO OF GLOBAL BUSINESS. THE SO-CALLED MASTERS OF THE UNIVERSE WILL CONVENE AROUND THE THEME OF REBUILDING TRUST. THERE’S NO TRU IUES HERE. YOU CAN RELY ON US TO ASK THE MOST IMPORTANT QUESTIONS, THE WORLD’S MOST HIGH-PROFILE LEADERS. IS THE WORLD MORE DIVIDED THAN

IT HAS EVER BEEN BEFORE? IS A.I. REALLY BIGGER THAN THE INTERNET? IS THIS YEAR’S HUGE ELECTION CYCLE THE RISK WE’VE ALL BEEN MISSING? WILL THE BULL MARKET AND STOCKS EN REAY BADLY? YOU WON’T MISS ANYTHING WITH OUR WALL-TO-WALL COVERAGE ON “YAHOO FINANCE LIVE” AND THE YAHOO!

FINANCE PLATFORM FROM TOP LEADERS IN THE BANKING, PHARMA, AND CRYPTO SECTORS TO ACCESS THE WORLD’S FOREMOST ACADEMICS AND SOME POLICYMAKERS FOR GOOD MEASURE. WE’VE GOT YOU COVERED. YAHO FINAE WORLD ECONOMIC FORUM IN DAVOS STARTS ON TUESDAY, JANUARY 16th. YOU DON’T WANT TO MISS IT.

>>> WE’RE ABOUT 45 MINUTES INTO THE TRADING DAY. LET’S TAKE A LOOK AT SOME OF THE HOME BUILDER STOCKS THIS MORNING. WE’RE GOINGO GWAY FROM THIS YIELD FOR A HOT SECOND HERE, BUT TAKING A LOOK AT SOME OF THE ACTIVITY HERE, I’M JUST

GOING TO REJIGGER THE MARKETS SO WE’VE GOT THAT PANEL AND YOU KNOW WHAT? LET’S JUST GO STRAIGHT TO THE HEAT MAP. WHY NOT? TAKING A LOOK AT SOME OF THE OV TO E HOMES AS THAT WAS GLING REALLY ONE OF THE — ACTUALLY

WAS THE BIGGEST CONTRIBUTOR TO THE INFLATION PRINT THAT WE GOT OUT THIS MORNING HERE, AND SO THINKING ABOUT SOME OF THOSE NAMES, AS YOU SAW, KB HOMES REPORT EARNINGS LAST NIGHT. THAT WAS ONE OF THE EARNINGS CALLS THAT I WAS PAYING CLOSE

ATTENTION TO, BECAUSE RE, EN AS YOU GOT THE CPI PRINT THIS MORNING THAT SHOWED HALF OF INFLATION IN DECEMBER WAS, WELL, DRIVE BY HOMES HERE, ULTIMATELY, THERE, YOU’RE TAKING A LOOK AT SOME OF THE KB HOMES RESULTS HERE AND SHELTER WITHIN THIS BROADER CPI PRINT, IT WAS

I STOCKS TOGETHER. THE SAME FACTORS THAT CHARACTERIZE THE MARKET TODAY, LOW INVENTORY LEVELS, AND THEN ADDITIONALLY SOLID EMPLOYMENT, WAGE GROWTH, THOSE THAT THEY BELIEVE AT KB ARE STILL GOING TO SUSTAIN THE LONGER-TERM HEALTH OF THE HOUSING MARKET HERE. ULTIMATELY, HERE, AS WE’RE

KEING CLOSE EYE ON SOME OF THE HOME BUILDER STOCKS TODAY, THAT IS GOING TO BE ONE AREA TO KEEP A CLOSE EYE AND TABS ON GOING FORWARD. >>> LET’S TALK ABOUT THE BIG STORY THAT WE HAVE BEEN FOLLOWING ALL WEEK, AND THAT IS

WHAT HAS BEEN PLAYING OUT AT BOEING. ALASKA AIRLINES GROUNDING ALL BOEING 737 MAX-9 PLANES THROUGH SATURDAY FOR INSPECTIONS. THIS COMES AFTER A DOOR BLEW OFF AN ALASKA AIRLINES FLIGHT. WHAT IS THE PRESSURE THAT WE COULD SEE ON AIRLINES GOING FORWARD? LOOKING AT ALASKA AIR, OFF

NEARLY 2% TODAY. OUR NEXT GUEST SAYING THAT POOR MANUFACTURING HAS YET TO BE ADDRESSED. LET’S BREAK IT ALL DOWN, WHAT THIS MEANS FOR THE COMPANY AND SECTOR MOVING FORWARD. WE HAVE MIKE BOYD, BOYD GROUP INTERNATIONAL CEO AND PRESIDENT. IT’S GREAT TO HAVE YOU HERE.

JUST YOUR REACTION TO THE FACT THAT WE ARE SEEING A FURTHER GROUNDING OF THESE PLANES,ND THEN THE PRESSURE THAT THAT COULD EVENTUALLY PUT ON SOME OF THESE AIRLINE STOCKS. >> WELL, THE REAL ISSUE HERE IS ALASKA AIRLINES. ALMOST 30% OF THEIR AIRPLANES

ARE THESE GROUNDED AIRPLANES NOW. SO, IF THEY HAVE TO STAY DOWN FOR ANY LENGTH OF TIME BEYOND THIS WEEKEND, WE’RE GOING TO HAVEO HAVE SOME MAJOR CHANGES AT ALASKA TO MAKE UP FOR IT. IN OTHER WORDS, THEY MAY STOP FLYING TO SOME SMALL MARKETS.

PLACES MIGHT GET HURT. BUT ALSO, THEY CANNOT BE ANYWHERE CLOSE TO IN THE BLACK WHEN 30% OF THEIR AIRPLANES ARE NOT BEING PRODUCTIVE. AT’SNE MAJOR ISSUE. EVEN FOR UNITED, IT’S A HIT. IT’S ABOUT 11% OF THEIR NARROW-BODY FLEET. THE REAL ISSUE HERE, WE’VE GOT

TO HAVE SOMETHING COMING OUT OF THE BOEING SIDE THAT GIVES CONFIDENCE AGAIN, NOT JUST TO THESE TWO AIRLINES BUT TO THE FLYING PUBLIC. WE HAVE A MANUFACTURING ISSUE, NOT AOOSECREW. >> AND SO, ALL THAT CONSIDERED, IS THERE ANYTHING IN TERMS OF AN

OVERALL — OVERHAUL THAT YOU’RE WATCHING FOR OR EXPECTING TO COME ON THE MANUFACTURING SIDE WITH BOEING? >> I’M NOT EXPECTING EXACTLY ANYTHING, BUT AGAIN, WE FOUND THE PROBLEM. BAD MANUFACTURING OR SLOPPY MANUFACTURING. THAT MEANS SOMEONE HAS TO GO INTO BOEING AND START TO LOOK AT

ALL ASPECTS OF WHAT THEY’RE DOING. THIS IS NOT JUST A PLUG. SO, I WOULD SUSPECT WE WILL SEE THE NTSB OR THE FAA COME OUT WITH SOMETHING A LITTLE MORE SERIOUS THAN JUST, WELL, WE FOUND SOME BOLTS AND TIGHTENED THEM. >> MIKE, IF IT IS A

MANUFACTURING ISSUE, THAT PLACES EVEN MORE PRESSURE ON DAVE CALHOUN TO ACT. WE’VE SEEN, OBVIOUSLY, IN TERMS OF HIS ADDRESSING OF HIS EMPLOYEES EARLIER THIS WEEK, THE FACT THAT HE DID SEEM RATTLED ABOUT WHAT HAS PLAYED OUT OVER THE LAST WEEK. WHAT DO YOU THINK ABO HIS

LEADERSHIP SO FAR AND WHETHER OR NOT HE’S THE RIGHT PERSON FOR BOEING AT THIS POINT? >> YOU KNOW, IT’S A TOUGH JOB. IT’S HARD TO PASS ON THAT. HOWEVER, THE RESPONSE OFF BOEING, SOMETHING LIKE, WE APOLOGIZE. YOU DON’T APOLOGIZE FOR THIS. YOU SAY, THIS IS WHAT WE’RE DOING.

WE FOUND THAT THERE M BE SE SHORTFALLS AND SOME OF THE WAYS WE PRODUCE OUR AIRPLANES. WE’RE GOING TO — WE HAVE THE SAFEST AIRPLANES IN THE WORLD, ET CETERA, ET CETERA. IT’S BEEN REALLY MILQUETOAST. MR. CALHOUN H T CE TO THE

PARTY LIKE A LEADER, NOT LIKE AN APOLOGIST. >> SO, OF WHAT WE’VE SEEN, MORE BROADLY, BETWEEN THE RELATIONSHIP BETWEEN BOEING AND THE FAA, DOES THIS KIND OF PUT ANOTHER SPOTLIGHT ON WHAT NEEDS TO BE REJIGGERED EVEN WITHIN THAT RELATIONSHIP? >> WELL, YOU HIT THAT ONE ON THE

HEAD. IT’S VERY CLEAR THAT THE PRIOR FORM OF RELATIONSHIP BETWEEN THE FAA AND BOEING AND MANUFACTURING AND THE GENERAL PRIOR TO THE MAX PROBLEMS OF THREE YEARS AGO, THAT HAS TO CHANGE, WHICH MEANS MAYBE THE WHOLE RELATIONSHIP HERE HAS TO CHANGE A LITTLE BIT

MORE, BUT YES, THIS DS P A LOT OF PRESSURE ON THE FAA NOT TO LET THIS KIND OF STUFF HAPPEN AGAIN, BECAUSE THEY, ULTIMATELY, ARE RESPONSIBLE FOR WHAT BOEING IS DOING IN SO MANY AREAS, SAME WITH THE NTSB. >> ALL RIGHT, MIKE, LET’S TALK

ABOUT WHAT WAS IN THE INFLATION PRINT THIS MORNING. WE DID SEE A SLIGHT RISE IN AIRFARE. THERE’S BEEN A BIG FOCAL PNT THE PRICING OF AIRFARE FOLLOWING THE DRAMATIC RISE THAT WE SAW LAST YEAR AND THEN FOLLOWING SOME IMPROVEMENT. WHAT DO YOU THINK TODAY’S

REPORT, A SLIGHT INCREASE HERE, BUT DOES THAT REALLY TELL US ANYTHING ABOUT THE TRENDS THAT WE COULD SEE PLAY OUT THROUGHOUT 2024? INATION, BUT I THINK IT’S HE STARTING TO HIT. WE’RE STARTING TO SEE THIS BUBBLE BURST, AND YOU KNOW, 3% INCREASE IN INFLATION DOESN’T HELP.

WHAT WE’RE SEEING IS LEISURE TRAFFIC IS FALLING OFF. WE HAVE HAD CARRIERS FIND MARKET 90% FUL TO ORLANDO THREE MONTHS AGO ARE NOW 50% FULL. WE’RE LOOKING AT A SOFT FLOOR RENTAL MARKET, AS WE FOUND OUT YESTERDAY. WE MAY BE LOOKING AT LEISURE TRAVEL STARTING TO DROP OFF

OR — I CALL IT IMPULSE TRAVEL DROPPING OFF, AND THAT MEANS SOME ULCCs, LOCAL CARRIES, MAY HAVE TO RETHINK, AND IT AL MEANS WE MAY NOT HAVE THE 7% GROWTH THAT WE WERE PROJECTING JUST A WEEK AGO. >> IT’S INTERESTING BECAUSE THE

PUBLIC REACTION AS WELL TO THE ALASKA AIRLINES AND ULTIMATELY THE BOEING MANUFACTURING ISSUE THAT HAS NOW MADE I WAY FROM THE DINNER TABLE TO THIS SET TABLE AND EVEN CONVERSATIONS THAT WE MIGHT HAVE ON THE SIDE, THAT HAS A BROADER SENTIMENT

IMPACT ON THE FLYING PUBLIC AS WELL, BUT IN THE PAST, HAVE WE EVER SEEN SUCH AN IMPACT THAT IT SHIFTS HOW PEOPLE TRAVEL TO THE POINT WHERE AIRFARE PRICES AND ROUNDING THIS ALL TOGETHER, AIRFARE PRICES ALSO SEE SOME SORT OF TRICKLE LOWER?

>> YEAH, IT’S A TRIPLE OR QUAD WHAMMY IF YOU WANT TO SAY. WE HAVE INFLATION TAKING — MAKING STEAK ON THE TABLE MORE EXPENSIVE. WE HAVE THESE STORIES ABOUT SAFETY MAKING ISSUES WITH, AGAIN, AT THE DINNER TABLE. AND THEN WE HAVE, REALLY, I

BELIEVE, A DOWNTURN COMING IN THE NEXT SIX MONTHS OF LEISURE TRAVEL. THAT’S GOING TO AFFECT, YOU KNOW, A WHOLE SECTOR OF THE INDUSTRY, AND I DON’T THINK WE’RE GOING TO SEE THE GROWTH WE THOUGHT WE WERE GOING TO SEE. ALLHESE TNGS THAT COME

TOGETHER, ALL OF THEM ARE NOT NECESSARILY RELATED, BUT THEY ALL COME TO THE BOTTOM LINE, WE MAY SEE A LOT LESS AIR TRAFFIC IN THE FIRST HALF OF THIS NEW YEAR. >> MIKE, ALWAYS A PLEASURE TO GET YOUR INSIGHTS AND CONTEXT

AROUND THE PLAYING OUT OF THIS PARTICULAR INCIDENT AND EVENT. MIKE BOYD, CEO ANDRESIDENT OF BOYD GROUP INTERNATIONAL, THANKS. >> THANK YOU, SIR. >>> COMING UP, WE’RE GOING TO BREAK DOWN THE BIGGEST WINNERS AND LOSERS IN THE FOOD RETAIL SPACE. THAT’S NEXT. >>> IT’S LIKE PINEAPPLE.

WHAT ELSE IS IN IT? DO WE KNOW? CHATGPT SECRET, I’M TOLD. YAHOO! FINANCE IS ON THE GROUND HERE IN SIN CITY, LAS VEGAS, FOR CES 2024. I’M AT THE BOOTH FOR DUSAN GROUP WHERE THIS A.I. ROBOT IS ABOUT TO MAKEE A COCKTAIL. I’M HERE WITH STEPHANIE CALLAWAY, SENIOR MARKETING

MANAGER. SHE’S GOING TO SHOW ME HOW THIS WORKS. >> THIS IS MIX MASTER MOODY, OUR COCKTAIL BARTENDER. >> MIX MASTER MOODY. >> YEAH, YEAH, POWERED BY MICROSOFT CHATGPT A.I. HE’S GOING TO TELL YOU WTIND OF COCKTAIL YOU NEED BASED UPON YOUR MOOD AND FACIAL RECOGNITION. SO, GO AHEAD.

>> SHOULD I SMILE? >> YOU CAN DO WHATEVER YOU WANT. YOU CAN GET ANGRY. YOU CAN SMILE. YOU CAN LOOK BORED, WHATEVER YOU WANT. >> PRESS START? >> HE’S ASKING HOUR DAY IS AT CES. EXCITING, AMAZING? >> CHAOTIC. >> THERE YOU GO. CAMERA IS GOING TO TURN ON. LOOK UP THERE.

>> YOU’RE HAPPY. DO YOU FEEL HAPPY? >> YEAH, I FEEL OKAY. >> ALL RIGHT. SO, THEN, WE’LL GO AHEAD AND GENERATE THE COCKTAIL FOR YOU. TAKES ABOUT TEN SECONDS. >> ANALYZING MY PHOTO. >> YOU’RE GOING TO GET A JOYFUL ELIXIR. HE’S GOING TO START MAKING IT RIGHT NOW. ♪

>> IT’S LIKE PINEAPPLE. HOW DOES IT DETERMINE WHAT HAPPY FEELS LIKE? >> IT’S LOOKING AT ALL OF THE FEATURES OF YOUR FACE, YOUR EYES, YOUR NOSE, YOUR MOUTH, THE SHAPES THAT YOU’RE MAKING, AND IT’S ASSOCIATING THAT WITH PREDETERMINED RECIPES THAT WOULD BE ASSOCIATED WITH THAT FEELING.

ROTIC BARTENDER.ENTIALLY GOT A >> YEP. >> ALCOHOL, NONALCOHOLIC AS WELL. THE CONCEPT RIGHT NOW. >> CORRECT. >> WE GOING TO SEE THIS IN A BAR SOON? >> I THINK THAT IN PLACES WHERE YOU’VE GOT HIGH VOLUME CAPACITY, SO WHETHER IT’S A CONCERT OR, YOU KNOW, AN AIRPORT OR

SOMETHING LIKE THAT, IT’S MEANT TO ASSIST THE BARTENDER. SOMEBODY WHO’S MOVING AND GROOVING AND BEHIND THE WHEEL, THIS IS SUPPOSED TO HELP SOMEBODY MAKE THE VOLUME GO A LITTLE BIT FASTER. SO, THESE ROBOTS ARE DESIGNED TO BE COLLABORATIVE WITH HUMANS AND

BE IN THE WORK SPACE WITH THEM, AND WE’RE JUST REALLY EXCITED TO IT WILL BE FUN.MART. >>> IT’S JANUARY, AND IT’S COLD IN NEW YORK CITY, SO WE’RE HEADING TO THE SWISS SLOPES FOR THE WORLD ECONOMIC FORUM IN DAVOS. I KNOW WHAT YOU’RE THINKING, FO

FOLKS, IT’S COLDER THERE IN DAVOS BUT WE PLAN TO HEAT THINGS UP WITH SOME BIG-TIME INTERVIEWS WITH THE WHO’S WHO OF GLOBAL BUSINESS. THE SO-CALLED MASTERS OF THE UNIVERSE WILL CONVENE TO TALK ABOUT ISSUES OF TRUST. IS THE WORLD MORE DIVIDED THAN IT HAS EVER BEEN BEFORE?

IS A.I. REALLY BIGGER THAN THE INTERNET? IS THIS YEAR’S HUGE ELECTION CYCLE THE RISK WE’VE ALL BEEN MISSING? WILL THE BULL MARKET AND STOCKS END REALLY BADLY? YOU WON’T MISS ANYTHING WITH OUR WALL-TO-WALL COVERAGE ON “YAHOO FINANCE LIVE” AND THE YAHOO! FINANCE PLATFORM FROM TOP

LEADERS IN THE BANKING, PHARMA, AND CRYPTO SECTORS TO ACCESS THE WORLD’S FOREMOST ACADEMICS AND SOME POLICYMAKERS FOR GOOD MEASURE. WE’VE GOT YOU COVERED. YAHOO! FINANCE’S COVERAGE OF THE WORLD ECONOMIC FORUM IN DAVOS STARTS ON TUESDAY, JANUARY 16th. YOU DON’T WANT TO MISS IT. >>> INFLATION DATA CAME IN

HOTTER THAN EXPECTED THIS MORNING, RISING 3.4% YEAR OVER YEAR. ONE AREA THAT’S BEEN A PARTICULAR PAIN POINT FOR CONSUMERS, THE INFLATED FOOD PRICES, WHICH WAS REFLECTED IN THE CPI REPORT THIS MORNING, BUT W WILL THIS IMPACT INVESTORS? UBS IS OUT WITH ITS FORECAST

SAYING THERE ARE SEVERAL NEAR-TERMS BUT ALSO LONG-TERM OPPORTUNITIES. LET’S BRING IN MICHAEL LASSITER TO DISCUSS MORE. MICHAEL, PERHAPS WE START THERE, AND THANKS F JOING US THIS MORNING. PERHAPS WE START THERE WITH WHERE THE OPPORTUNITIES LIE, ESPECIALLY AS FOOD INFLATION HAS

BEEN ON THE TOP OF MIND FOR BOTH INVESTORS AND CONSUMERS RIGHT NOW? >> WELL, FIRST, THANKS FOR HAVING ME THIS MORNING. NUMBER ONE, WE THINK THAT MODERATION IN SOME T INFLATIONARY PRESSURES THAT HAVE OCCURRED OVER THE LAST COUPLE YEARS WILL ALLOW CONSUMERS TO

SPEND MORE MONEY ON DISCRETIONARY GOODS, THINGS LIKE APPAREL, HOME-RELATED PRODUCTS, SPORTING GOODS. THAT’S IMPORTANT FOR A LOT OF RETAILERS, BECAUSE THEY MAKE BETTER MARGINS ONHOSE DISCRETIONARY GOODS. NUMBER TWO, WITH THAT BEING SAID, IT IS GOING TO BE A VOLATILE YEAR FOR THE RETAIL

SECTOR, BOTH BECAUSE OF ALL THE WELL DOCUMENTED MACRO PRESSURES AND THIS IS GOING TO BE AN ELECTION YEAR, AND IT’S GOING TO BE AN ELECTION YEAR THAT’S LIKELY TO BE VERY POLARIZING FOR AT LEAST HALF OF THE COUNTRY, PROBABLY MOST OF THE COUNTRY.

THIS IS ALSO GOING TO MEAN IT’S MORE DIFFICULT AND EXPENSIVE FOR CONSUMER COMPANIES TO TALK WITH THEIR CUSTOMERS BECAUSE OF A RISE IN MEDIA RATES. SO, OUR BEST ADVICE IS TO REMAIN VIGILANT AND DISCIPLINED WHEN APPROACHING, INVESTING IN THE HARDLINE, BROADLINE AND FOOD RETAIL SECTOR THIS YEAR.

>> ALL RIGHT, MICHAEL, WHEN IT COMES TO SOME OF THEOP PLAYS OR WHAT INVESTORS NEED TO KEEP IN MIND IN TERMS OF WHAT THIS ALL MEANS FOR POSITIONING, WHAT THIS ALL MEANS FOR COMPANIES THAT MAYBE ARE IN A BETTER POSITION TO BENEFIT FROM SOME OF

THESE TRENDS THAT WE ARE SEEING, WHAT ARE SOME OF THE TOP PICKS WITHIN THE SECTOR, AND WHAT DO YOU THINK SETS THEM APART FROM SOME OF THEIR RIVALS OUT THERE? >> SO, NUMBER ONE, WE LIKE TARGET. TARGET HAS EXPERIENCED A TURBULENT CPLE OF YEARS, BUT

WE THINK IT’S EXPERIENCING MOMENTUM THAT WILL DRIVE BOTH SALES AND PROFITABILITY TO IMPROVE IN 2024. SOME OF THE ISSUES THAT IT’S FACED ARE BEING OVERINDEXED TO ANE BELIEVE THAT WILL BECOME LESS OF AN ISSUE THIS YEAR AS THOSE CATEGORIES LIKE SMALL APPLIANCES, CONSUMER

ELECTRONICS, THOSE START TO STABILIZE AND IMPROVE. PLUS ITS MARGINS ARE WELL BELOW WHERE THEY HAVE BEEN IN PRIOR YEARS, MEANING IT’S GOT AN OPPORTUNITY TO IMPROVE ITS PROFITABILITYROM HERE. ANOTHER NAME THAT WE LIKE A LOT IS DOLLAR TREE. DOLLAR TREE RUNS BOTH THE

NAMESAKE BRAND, AS WELL AS THE FAMILY DOLLAR BUSINESS. THOSE BUSINESSES HAVE BEEN ADVERSELY IMPACTED FROM A VERY TIGHT LABOR MARKET, AS IT’S BEEN MORE DIFFICULT TO ATTRACT AND RETAIN WORKERSN THOSE STORES. WE THINK AS THE LABOR MARKET STARTS TO EXPERIENCE SOME EASING, THAT WOULD ACTUALLY BE A

POSITIVE FOR THE DOLLAR STORES LIKE DOLLAR TREE, NOT ONLY BECAUSE OF ITS ABILITY TO BETTER ATTRACT AND RETAIN WORKERS, BUT ALSO CONSUMERS WILL HEO STRETCH THEIR BUDGETS A LITTLE BIT MORE. SO, THOSE ARE TWO IDEAS THAT WE PUT AT THE TOP OF YOUR VIEWERS’

LIST OF NAMES TO OWN WITHIN THE RETAIL SECTOR THIS YEAR. >> AND I GUESS DOLLAR TREE CAUGHT OUR ATTENTION IN OUR MEETINGS, BECAUSE IN OUR, OF COURSE, RECOLLECTION OF THE MOST RECENT EARNINGS PERIOD, THEY BASICALLY MISSED ON SOME OF THE EXPECTATIONS THERE PLUS THE

OUTLOOK CAME INTO QUESTION. SO, ALL THAT CONSIDERED, WHAT IS THE, PERHAPS, IF THERE IS A TECHNICAL WAY TO LOOK AT DOLLAR TREE, WHERE IS THERE STILL STRENGTH BEYOND JUST THE DO THEY NEED TO THEN KIND OF X ROTATE INTO THE STORE IN ORDER

TO MAINTAIN THAT CONSUMER THAT MIGHT BE COMING IN BECAUSE, TO YOUR POINT, THERE IS MORE OF A DISTRESS ON THE AMOUNT THAT THEY’RE SPENDING? >> SO, THE ISSUE THAT DOLLAR TREE CONTENDED WITH MOST RECENTLY WAS, NUMBER ONE, THE MIX TO CONSUMABLE ITEMS AWAY

FROM DISCRETIONARY GOODS. THAT CREATES A MARGIN DRAG. AND THE OTHER ISSUE IS SHRINK. THE UNEXPLAINED LOSS OF INVENTORY. WE THINK BOTH OF THOSE ISSUES WILL IMPROVE IN 2024. IN ADDITION, DOLLAR TREE HAS BEEN IMPLEMENTING A VARIETY OF INITIATIVES THAT WILL DRIVE GROWTH ON TOP OF THAT.

THINGS LIKE RAISING THE SHELF HEIGHTS IN ITS STORES SO IT CAN CARRY MORE PRODUCTS, ADDING MORE MULTIPRICE POINT ITEMS IN THE NAMESAKE BRAND THAT DRIVE TRAFFIC TO THOSE STORES. SO, THE COMBINATION OF LESS PRESSURE FROM THOSE FACTORS THAT WERE WEIGHING ON THE BUSINESS

LAST YEAR, ALONG WITH BETTER RESULTS FROM SOME OF THE PLE, WILL DRIVE DOLLAR TREE SHARES HIGHER THIS YEAR. >> MICHAEL, JUST LASTLY, WHILE WE HAVE YOU, HOW BIG OF AN OVERHANG FOR THE FOOD INDUSTRY AND FOOD RETAIL, SPECIFICALLY? HOW MUCH OF AN OVERHANG IS THERE

DRIVEN BY OZEMPIC AND OTHER WEIGHT LOSS GLP-1s? >> THE VERDICT IS STILL OUT ON THE LONG-TERM IMPACT OF ANTI-OBESITY MEDICATIONS. FOR THOSE THAT ARE ON IT, THAT HAS A NEGATIVE IMPACT ONHEIR CONSUMPTION OF CALORIES. WITH THAT BEING SAID, IF YOU —

ONE WAY TO LOOK AT IT IS THAT MAYBE 30 MILLION PEOPLE WILL BE ON A ANTI-OBESITY MEDICATION IN THE COMING YEARS. THAT’S ABOUT 10% OF THE U.S. POPULATION. PERHAPS THOSE FOL REDUCE THEIR CALORIE CONSUMPTION BY 20%. SO, IT’S A 200-BASIS-POINT HIT TO CALORIE CONSUMPTION.

IN THEORY, THAT WILL HAPPEN OVER A MULTIYEAR PERIOD. SO, THE POINT HERE IS THAT WHILE WI BE A MANAGEABLE HEADWIND T FOR THE INDUSTRY. PLUS WE THINK, IF INDEED IT’S MORE INTENSE THAN WHAT WE ARE EXPECTING, THAT WOULD PROBABLY LEAD TO SOME CONSOLIDATION, WHICH WOULD CREATE OPPORTUNITY

FOR THE LARGE WELL-POSITIONED PLAYERS TO GAIN SHARE WITHIN THE FOOD RETAIL SPACE. >> ALL RIGHT, SOMETHING WE WILL WATCH OUT FOR. MICHAEL LASSITER, ALWAYS GREAT TO HAVE YOU HERE. UBS U.S. HARDLINE, BROADLINE, AND FOOD RETAIL ANALYST. THANK YOU SO MUCH, MICHAEL. >>> ALL RIGHT, WELL, COMING UP,

WE ARE — WE HAVE BEEN LIVE IN LAS VEGAS ALL WEEK, BRIINGOU THE LATEST FROM CES. WE WILL BE HEARING FROM THE CEO OF MOBILEEYE RIGHT AFTER THE BREAK. WE’LL BE RIGHT BACK. >>> I’M AKIKO FUJITA ON THE GROUND IN LAS VEGAS AT CES 2024

WHERE THERE’S CERTAINLY BEEN A LOT OF CONVERSATION ABOUT AUTONOMOUS DRIVING. WE ARE JOINED BY PRESIDENT AND CEO OF MOBILEYE RIGHT IN THE CENTER OF THAT CONVERSATION. IT’S GREAT TO HAVE YOU HERE TODAY. >> GREAT TO BE HERE. >> YOU HAVE HAD A STRING OF

ANNOUNCEMENTS HERE ON THE GROUND. ONE OF THOSE BEING THE DRIVING EXPERIENCE PLATFORM. THE DXP. YOU’VE DESCRIBED IT AS A TYPE OF OPERATING SYSTEM FOR A CAR LIKE POLE STAR. HOW DOES IT WORK? >> MOBILEYE IS A SUPPLIER. WE ARE TALKING ABOUT VERY COMPLEX SYSTEMS THAT INVOLVE

MULTIPLE CAMERAS, ABOUT 11 CAMERAS, IMAGING RADARS, LIDARs, YOU KNOW, VERY HEAVY COMPUTE, SO IT’S A BIG CHUNK OF THE CAR. AND THE CAR MAKER NATURALLY WANTS TO CONTROL IMPORTANT ASPECTS OF THE DRIVING EXPERIENCE, NOT TREAT IT AS A BLACK BOX. ON THE OTHER HAND, FOR MOBILEYE,

CUSTOMIZING A SYSTEM FOR CUSTOMER WOULD, YOU KNOW, BE DIFFICULT FOR SCALING. SO, WE FOUND A WAY IN WHICH WE CAN BUILD A SYSTEM, BASICALLY BUILD ONLY THE INFRASTRUCTURE OF THE SYSTEM, WHICH IS ONE THAT FITS ALL AND ALLOW THE CAR MAKER

TO WRITE CODE ON TOP OF OUR SYSTEM TO CONTROL THE DRIVING EXPERIENCE. SO, I’LL GIVE YOU AN EXAMPLE. WE DIVIDED THE WORLD INTO WHAT IS UNIVERSAL AND WHAT IS UNIQUE. SO, FOR EXAMPLE, CONTROLLING THE CAR IS UNIQUE. HMI IS UNIQUE TO THE CAR MAKER. PERCEPTIONON T OTH HAND,

IS UNIVERSAL. THERE IS NO REASON THAT A BMW OR AN AUDI OR A HYUNDAI WILL HAVE DIFFERENT PERCEPTION ENGINES, BECAUSE THE ROLE OF PERCEPTION IS TO UNDERSTAND THE ENVIRONMENT, AND YOU NEED TO UNDERSTAND THE ENVIRONMENT TO A CERTAIN ACCURACY THAT WILL ENABLE AUTONOMOUS DRIVING.

BUT THEN COMES THE DRIVING POLICY. DRIVING POLICY IS ALL THE CODE THAT IS RELATED FOR DECISION MAKING OF THE CAR, WHEN TO CHANGE LANE, HOW TO CHANGE LANE, HOW TO NEGOTIATE WITH OTHER ROAD USERS, THE BRAKING PORTFOLIO THAT YOU USE. ALL OF THIS CONTROLS THE DRIVING EXPERIENCE.

DRIVING POLICY CONTAINS A LOT OF A.I., A LOT OF VALIDATION, A LOT OF DATA-DRIVEN PROCESSES, AND CUSTOMIZING THIS PER CAR MAKER WOULD BE A NIGHTMARE. WHAT WE FOUND OUT IS TH WE CAN TAKE A DRIVING POLICY AND CELEBRATE IT INTO THE UNIVERSAL AND UNIQUE.

THE UNIVERSAL PART IS WHAT WE CODE. THIS IS THE OPERATING SYSTEM. AND THE UNIQUE PART IS WHAT THE CAR MAKER CODES ON TOP OF OUR UNIVERSAL INFRASTRUCTURE. AND IN THAT WAY, CREATE A SYSTEM THAT CAN SCALE TO ALL CAR MAKERS. >> ALLOWING THE BRANDS TO

CUSTOMIZE, ACCORDING TO THEIR BRAND. THERE’S CERTAINLY BEEN A LOT OF NEGATIVE HEADLINES THAT HAVE PLAYED OUT HERE IN THE U.S. AROUND TAAUTONOMOUS DRIVING. GM HAD TO HALT ALL INCIDENTS IN SAN FRANCISCO. I REALIZE MOBILEYE IS NOT INVOLVED IN THAT, BUT I’M CURIOUS WHAT THE CONVERSATION

HAS BEEN WITH SOME OF YOUR CLIENTS. HAS THIS GIVEN THEM SOME PAUSE IN TERMS OF HOW THEY INTEGRATE THIS TECHNOLOGY IN THEIR CARS? >> I THINK THE STORY OF AUTONOMOUS DRIVING, THERE ARE THREE STORIES THERE. ONE STORY IS SAFETY. ANOTHER STORY IS BUYING BACK YOUR TIME.

TRAFFIC TODAY IS CONGESTED. YOU SIT QUITE A LONG TIME IN THE CAR. YOU WOULD LIKE TO DO SOMETHING ELSE WHILE YOU’RE GOING FROM POINT A TO POINT B IN YOUR CAR. NOW, USE YOUR SMARTPHO,OR EXAMPLE. OR READ A BOOK. SO, BUYING BACK YOUR TIME.

THE THIRD STORY IS USING THE CAR AS A RESOURCE. SO, LIKE AN UBER, LIKE A RIDE-HAILING. SO THE STORY OF CRUISE AND WAYM IS ONLY THE THIRD STORY, THE STORY OF USING THE CAR AS A RESOURCE. MOBILEYE IS ACTIVE IN ALL THREE STORIES. SO, FOR EXAMPLE, SAFETY, FOR

SAFETY, YOU DON’T NEED HANDS -FREE. YOU WANT A SYSTEM THAT OBSERVES EVERYTHING AROUND YOU AND HAS TUATNAL AWARENESS OF EVERYTHING THAT HAPPENS AROUND YOU, AND THEN PREVENTS YOU FROM MAKING A MISTAKE, PREVENTS YOU FROM HITTING A PEDESTRIAN, PREVENTS YOU FROM, IF ANOTHER

CAR IS GETTING CLOSER TO YOU, YOUR CAR WILL OFFSET. IF YOU ARE GETTING CLOSE TO A CAR WITH AN OPEN DOOR, YOUR CAR. IF TRE’S AN OBSTACLE, YOUR CAR WILL DO KIND OF A EVASIVE MANEUVER. SO, THIS RAISES THE SAFETY LEVELS TO A VERY, VERY SIGNIFICANT DEGREE.

ONCE YOU HAVE THE SAFETY, YOU CAN START ALLOWING THE DRIVER TO HAVE HANDS-OFF. SO, THIS IS THE SECOND STORY OF BUYING BAC YOUTIME. >> BUT WHEN YOU TALK ABOUT — YOU DON’T NECESSARILY NEED TO BE HANDS-FREE IN ORDER FOR SAFETY. IS THAT WHAT YOU THINK THE REAL

USE CASE IS GOING TO BE IN THIS TECHNOLOGY? I MEAN, SO MUCH OF THE ATTENTION HAS BEEN ABOUT LEVEL FIVE A AUTOMY. THAT’S RIGHT. THEY FOCUS ON THE THIRD STORY. THE FIRST TWO STORIES HAVE SIGNIFICANT VALUE PROPOSITION. THE SAFETY STORY IS A VERY SIGNIFICANT VALUE PROPOSITION,

BECAUSE IT SAVES LIVES. THE SECOND STORY OF BUYING BACK YOUR TIME, SO, IF YOU HAVE AN EYES-OFF SYSTEM IN A CONSUMER CAR, WE ARERIVI FROM SAN FRANCISCO TO LOS ANGELES, AND 90% OF THE TIME YOU’RE ON HIGHWAYS, AND ON A HIGHWAY, THE

SYSTEM ALLOWS YOU TO, YOU KNOW, GIVE CONTROL TO THE CAR AND LEGALLY, YOU’LL BE ABLE TO DO SOMETHING ELSE BECAUSE IT’S AN EYES-OFF SYSTEM, THIS IS A SIGNIFICANT VALUE PROPOSITION BECAUSE TIME IS IMPORTANT. YOU WANT TO DO SOMETHING ELSE WHILE YOU’RE DRIVING.

THE THIRD STORY IS ABOUT USING THE CAR AS A RESOURCE. THIS IS THE WAYMO AND CRUISE STORY, AND I THINK THAT THE PUBLIC IS AWARE ONLY OF THE THIRD STORY. IT’S NOT AWARE OF THE FIRST TWO STORIES THAT ARE VERY SIGNIFICANT INERMSF TIR VALUE PROPOSITION.

>> SO, IF THAT THIRD STORY HAD GOTTEN A LOT OF THE ATTENTION, HAS BEEN THE FIRST CHAPTER, LET’S SAY, IN AUTONOMOUS DRIVING, HOW DOES A PLATFORM LIKE SUPER VISION FOR MOBILEYE, HOW DOES THAT GET YOU TO THE NEXT STORY? WHAT ARE WE TALKING ABOUT HERE?

>> SO, THE SUPERVISION IS THE FIRST STORY AND HALF OF THE SECOND STORY. WHAT I MEAN IS IT’S A SYSTEM THAT HAS 360-DEGREE SITUATIONAL AWARENESS, HAS 11 CAMERAS AROUND THE CAR, SO IT UNDERSTANDS EVERYTHING AROUND YOU. AND IT CAN PROVIDE A LAYER OF

SAFETY, PROVIDE A LAYER OF SAFE ASSIST SYSTEMS THAT EXIST TODAY. IT ALSO PROVIDES YOU A HANDS-FREE EXPERIENCE, PROVIDING THAT YOU ARE ALERT. THAT YOU ARE SUPERVISING THE SYSTEM. >> HOW DO YOU ENSURE THAT? >> THERE’S A DRIVING MONORIN CAMERA WATCHING YOU, AND IF YOUR

GAZE IS ON THE ROAD, THE SYSTEM WILL ALLOW YOU TO DRIVE HANDS-FREE. OTHERWISE, THE SYSTEM INSISTS THAT YOU HOLD THE STEERING WHEEL. IT’S NOT THE SECOND STORY OF BUYING BACK YOUR TIME, BECAUSE YOU ARE SUPERVISING THE SYSTEM, BUT THE DRIVING BECOMES MUCH

MORE RELAXED BECAUSE THE CAR IS DRIVING ITSELF. BUT REALLY, THE BIGGEST STORY THERE IS SAFETY. THE STEP UP BEYOND SUPERVISION, WHICH WE CALL CHAUFFEUR, IS ADDING A FEW MORE SENSORS FOR REDUN REDUNDANCY LIKE A LIDAR IMAGING RADAR. AND YOU DEFINE CERTAIN ROAD

CONDITIONS, FOR EXAMPLE, HIGHWAY DRIVING, WHERE YOU CAN LEGALLY HAVE EYES OFF. THAT’S THE SECOND STORY, AND THAT’S ALSO COMING OUT IN ABOUT 2026. THOSE ARE THE ANNOUNCEMENTS THAT WE MADE TH WTERN OEM. NINE CAR MODELS ARE GOING TO BE EQUIPPED WITH A CHAUFFEUR SYSTEM BY 2026.

POLE STAR IS GOING TO BE EQUIPPED WITH CHAUFFEUR SYSTEM IN 2026. FAW, A NUMBER OF MODELS IN FAW OF CHINA WILL BE EQUIPPED WITH THAT. IS IREAL THEEXT STEP COMING OUT. >> VERY QUICKLY HERE, A MACRO QUESTION, BECAUSE YOU ARE IN

TOUCH WITH THE BIGGEST CAR MAKERS THAT ARE OUT THERE. ARE YOU SEEING A BIT OF A PULLBACK IN TERMS OF INVESTMENTS THAT THEY’RE MAKING IN THE TECHNOLOGY SIDE OF AUTOS, JUST GIVEN WHERE THINGS HAVE BEEN? OR ARE YOU FINDING THAT THEY ARE STILL ACCELERATING SOME OFHOSE

INVESTMENTS, BECAUSE WHERE THE MARKET IS GOING? >> I THINK IT’S THE OPPOSITE. IF YOU LOOK AT THE GROSS MARGIN OF THE CAR, ESPECIALLY AN ELECTRIC CARS, IT’S VERY DIFFICULT TO GET A GOOD GROSS MARGIN. WHAT IS REALLY THE MONEYMAKER IN A CAR IS THE INTELLIGENT DRIVING.

THE FACT THAT YOU CAN PROVIDE SAFETY, YOU CAN PROVIDE, YOU KNOW, BUY BACK YOUR TIME WITH A CHAUFFEUR SYSTEM, HANDS-FREE DRIVING, THOSE ARE MEASURED IN MANY THOUSANDS OF DOLLARS AND INCREASE THE GROSS MARGIN OF THE CAR. SO, THE CAR MAKERS WILL COMPETE

ON THE LEVEL OF INTELLIGENT DRIVING THAT THE CAR HAS, BECAUSE FROM AN ENGINE POINT OF VIEW, A CHASSIS POINT OF VIEW, THE DIFFERENTIATION IS BECOMING MORE AND MORE PROBLEMATIC. IT’S REALLY THE INTELLIGENT DRIVING THAT — THE HMI, THE DRIVING EXPERIENCE, WHAT ARE YOU

PROVIDING THE DRIVER BEYOND THE BASICS OF AN ENGINE AND A CHASSIS. THIS IS WHERE THE BIG MONEY IS COMING. SO, I THINK THE OPPOSITE IS HAPPENING. CAR MAKERS ARE INVESTING EVEN MORE IN THIS AREA. >> IT’S BEEN FASCINATING TO HAVE THESE CONVERSATIONS ON THE

GROUND ABOUT WHERE THE CAR EXPERIENCE IS GOING. PROFESSOR AMNON, THANK YOU VERY MUCH. >> THANK YOU VERY MUCH. >>> AND OUR THANKS TO OUR OWN AKIKO FUJITA FOR THE INTERVIEW WITH MOBILEYE’S CEO AND PRESIDENT. >>> COMING UP, AND RIGHT NOW, ACTUALLY, MARKETS TURNED RED

DEMBERNFLATION PRINT COMES IN HOTTER THAN EXPECTED. WE’VE GOT OUR VERY OWN JARED BLIKRE OVER AT THE TOUCH WITH THE LATEST MOVES. NO JARED STANDING BY? ALL RIGHT. WE’RE GOING TO GO TO A QUICK BREAK. >>> MARKETS TURN RED AFTER A GREEN OPEN.

WE HAVE OUR VERY OWN JARED BLIKRE OVER AT THE TOUCH WITH THE LATEST MOVES. >> LET’S LOOK AT THE PRICE ACTION FOR TODAY. AS YOU SAID, WE FPPEDNTO E RED FROM THE GREEN. HOWEVER, ON THE ANNOUNCEMENT, WHAT YOU’RE NOT SEEING HERE IN THE PREMARKET, IN THE FUTURES,

WE DID INITIALLY TAKE A LEG DOWN, SO THIS IS MAYBE A ZIGZAG PATTERN, IF YOU WILL. LET’S CHECK OUT WHAT’S HAPPENING IN THE SECTOR ACTION. THEN, WE CAN GET INTO SOME OF THE BOND MARKET MOVEMENTS AS WELL. HERE, WE HAVE ENERGY. TH IS THE ONLY SECTOR IN THE

GREEN. NEXT TO THAT, NEXT TO ENERGY, IS TECH, AND THEN WE HAVE HEALTH CARE. BUT DOWN HERE, UTILITIES, THAT IS THE INTEREST RATE SENSITIVE SECTOR, TAKING IT ON THE NOSE, DOWN OVER 2%, FOLLOWED BY FINANCIALS, AND WE HAVE REAL ESTATE AND MATERIALS DOWN MATEAL.

AND LET’S TAKE A LOOK AT THE NASDAQ 100, BECAUSE WE SAW A LOT OF OUTPERFORMANCE BY THE MEGACAPS YESTERDAY, BUT THAT STORY IS NOT CONTINUING INTO TODAY. WE SEE MICROSOFT AND AMAZON UP LESS THAN 1%, BUT TESLA IS DOWN 3%. META IS DOWN ALMOST 1%.

SO IS APPLE THERE. AND BEFORE WE MOVE ON, I WANT TO GET A QUICK CHECK OF THE BOND MARKET AS WELL. WE SAW THE TEN-YEAR T-NOTE YIELD. THIS IS INTRADAY. FIRST, WE GOT A SPIKE UP ON THE INFLATION NUMBERS, AND THEN WE RETREATE A BIT, AND WE’VE

SETTLED DOWN TO BREAK-EVEN, JUST DOWN VERY SLIGHTLY ONE BASIS POINT SO NOT A LOT OF MOVEMENT THERE, AND JUST LOOKING, KIND OF KEEPING WITH THE BOND MARKET HERE. HERE’S THE I.C.E. B OF A MOVE INDEX. WE CAN SEE THIS IS RIGHT NEAR MULTIMONTH LOWS RIGHT HERE, AND

THE VICKS ITSELF, THE VICKS HAS BEEN HUGGING MULTIMONTH LOWS AS WELL. HERE IT IS OVER THE LAST THREE MONTHS. SO, NOT A WHOLE LOT GOING ON IN THE BOND MARKET, DESPITE THE INFLATION PRINT. AND BY THE WAY, I WAS LOOKING AT THE HISTORY OF MARKET REACTIONS

TO CPI, THE PRIORO WER TO THE UPSIDE IN THE MARKET, BUT BEFORE THAT, WE DID GET A DOWNSIDE MOVEMENT. I WOULD SAY OVERALL THAT CPI MOVEMENTS TEND TO TRACK THE OVERALL MOVEMENT IN THE INDEXES. WE ARE AT MULTIYEAR HIGHS HERE IN THE S&P 500. IN FACT, WE ALMOSTXACT

MATCHED THE RECORD HIGH THAT WE SAW TWO YEARS AGO, SO S&P 500 FLIRTING WITH A REALLY IMPORTANT LEVEL HERE. WE’LL HAVE TO SEE HOW IT SHAKES OUT IN THE CLOSE. HERE’S OUR LEADERS INDEX, LEADERS HEAT MAP, AND WE HAVE SOLAR ENERGY. THAT’S DOWN ALMOST 4%.

DISRUPTION AS DEMONSTRATED IN THE ARK ETF, THAT’S DOWN ALMOST 3%. REGIONAL BANKS ALSO DOING FAIRLY POORLY HERE. LET’S TAKE A LOOK INSIDE ARK. WE COVERED TESLA BEFORE, COINBASE AFTER THE BIG ETF SPOT LAUNCH. WE GOT THAT DOWN 3.5%, AND I’LL JUST LEAVE YOU WH TH ENERGY MARKET.

LITTLE BIT OF GREEN HERE, GUYS. >> ALL RIGHT, JARED, THANK YOU SO MUCH FOR BREAKING DOWN THE MOVES WE’RE SEEING PLAYING OUT FOLLOWING THE INFLATION PRINT THAT WE GOT OUT THIS MORNING. >>> LET’S TALK ABOUT ONE OF THE TOP TRENDING TICKERS HERE AT

YAHOO! FINANCE, AND THAT IS HERTZ. WE’RE LOOKING AT LOSSES OF JUST ABOUT 5% HERE ABOUT AN HOUR AND HALFNTO E TRADING DAY. THE COMPANY SELLING ABOUT A THIRD OF ITS GLOBAL EV FLEET AND REPLACING SOME OF IT WITH GAS-POWERED CARS. THE CAR RENTAL COMPANY BLAMING

THE REVERSAL IN STRATEGY ON WEAK DEMAND FOR ELECTRIC VEHICLES. REMEMBER, THIS MOVE COMING AFTER HERTZ INITIALLY SET A GOAL TO ELECIFY OUT QUARTER OF ITS FLEET BY THE END OF THE YEAR, SO MASSIVE REVERSAL IN THE STRATEGY THAT WE’RE SEEING FROM HERTZ HERE, AND BRAD, WHAT’S ALSO

INTERESTING TO POINT OUT IS SOME OF THE COMMITMENTS OR PLANS THAT HERTZ HAD MADE SURROUNDING TESLA AND THE VEHICLES THERE AS THEY MOVED TO ELECTRIFY THEIR FLEET AND NOT TOO LONG AGO, THEY ANNOUNCED PLANS FOR A MASSIVE PURCHASE OF SOME TESLA CARS, SO

OBVIOUSLY THIS SHIFT THAT WE’RE SEEING, THE DRAMATIC SHIFT WE’RE SEEING, POINT TO THE FACT THAT WE HAVE SEEN WANING DEMAND FOR EVs COTTON THE BOARD, BECAUSE WHEN YOU TAKE INTO ACCOUNT SOM O THAT WE’VE GOTTEN OUT OVER THE LAST COUPLE OF KWQUARTERS, JUST

1.3% GROWTH IN EVs IN Q4, SO REALLY POINTS TO THE FACT THAT PEOPLE ARE STILL FAVORING THOSE GAS-POWERED CARS AT THIS POINT. >> FOR ANY RENTERS, IT COMES DOWN TO THE STRENGTH OF THE CHARGER NETWORK, KNOWING IF YOU DO RENT ONE, YOU CAN GET FROM

POINT A TO POINT B. HERTZ, AS THEY REPORT EARNINGS, WE’RE GOING TO SEE THEM ADD A LITTLE BIT MORE COLOR TO THIS AROUND THE OVERALL PROCESS ON FEBRUARY 6th. THAT’S WHEN THEY AT THEIR FOURTH QUARTER 2023 EARNINGS REPORT. >>> THAT IS ALL FROM US TODAY, EVERYONE.

FOR BRAD SMITH, SEANA SMITH, THE ENTIRE CREW, WE WILL SEE YOU TOMORROW, FRIDAY. >>> WELCOME TO YAHOO! FINANCE LIVE. IT’S 11:00 A.M. ON THE EAST COAST, 8:00 A.M. ON THE WEST. I’M RACHELLE AKUFFO, HERE’S A LOOK AT WHAT I’M WATCHING THIS MORNING. INFLATION DATA COMING IN HOTTER

THAN EXPECTED TODAY. CONSUMER PRIS RISING .3% IN DECEMBER PUSHING THE ANNUAL RATE TO 3.4%, DESPITE A RAPID COOLING THROUGH MOST OF 2023, IT SEEMS VICTORY CANNOT BE DECLARED AGAINST INFLATION JUST YET. >>> AND THE MILESTONE MOMENT FOR BITCOIN AFTER THE S.E.C. APPROVED 11 SPOT BITCOIN ETFs.

WE’LL SPEAK WITH WYOMING SENATOR CYNTHIA LUMMIS THIS HOUR. >>> PLUS, MY PARTNER IN CRIME, AKIKO FUJITA HAS BEEN BRINGING US KEY INTERVIEWS ALL WEEK LONG FROM CES IN LAS VEGAS. WE’LL SHARE HER CONVERSATION WITH AMD LATER ON IN THE SHOW. FIRST LET’S TAKE A LOOK AT HOW

THE MARKETS ARE FARING AN HOUR AND A HALF INTO THE TRADING DAY. WE DID SEE THE TRADING PICK UP. WITH THAT IN MIND WE’RE SEEING THE DOW OFF 200 POINTS OR 1/2 OF A PERCENT. THE S&P 5 ALS DOWN ABOUT .6% OR ABOUT 30 POINTS THERE.

WE’RE SEEING ENERGY, THE ONLY SECTOR THERE IN THE GREEN AND LOOKING AT THE TECH-HEAVY NASDAQ AS WELL, DOWN 93 POINTS, .6% SO FAR THIS MORNING. LET’S SEE WHAT A LITTLE BIT OF POTENTIAL EXTRA BREATHING ROOM THE F DID FOR THE TREASURY MARKET. THE FIVE-YEAR, SITTING AT 395.

THE TEN-YEAR ABOVE 4. EVER SO SLIGHTLY IN THE RED THIS MORNING, AND THE LONGEST TERM 30-YEAR YIELD IS UP ABOUT 1/2 OF A PERCENT SITTING AT 422. THE DECEMBER CPI PRINT SHOWS PRICES RISING MORE THAN EXPECTED TO END 2023. SO WHAT DOES THIS REPORT MEAN

FOR THE FED AS THEIR FIRST MEETING OF THE YEAR COMES UP IN A FEW WEEKS. JOINING ME NOW IS YAHOO! FINCE’S JENNIFER SCHONBERGER. >> GOOD TO SEE YOU. THE LATEST READING LIKELY TO DASH WALL STREET’S HOPE THAT THE FEDERAL RESERVE COULD CUT RATES ANYTIME SOON, INCLUDING THE

VOLATILE FOOD AND ENERGY COMPONENTS OF THE CPI. THE FED’S PREFERRED WAY OF LOOKING AT THE INFLATION MEASURE CLOCKED IN AT 3.9%, A HAIR ABOVE EXPECTATIONS OF 3 PR.8% AND WHI IT SHOWS CONTINUED MODERATION IN PROCESSES, THERE’S MUCH PROGRESS THAT NEEDS TO BE SEEN AS THE

NUMBER IS STILL NEARLY DOUBLED THE 2% INFLATION TARGET. THERE WAS PROGRESS, THOUGH, I WANT TO POINT OUT IN A KEY ASUR OF THE REPORT THAT THE FED SCRUTINIZES, THAT IS THE INFLATION NUMBER OF SERVICES LESS HOUSING, GREW AT 3.4% IN DECEMBER.

IF WE LOOK AT SHELTER ITSELF, THAT GREW AT A SLOWER PACE OF 6.2%, VERSUS 6 1/2% IN NOVEMBER. SO WHILE THE FED IS ENCOURAGED BY PROGRESS ON INFLATION AND ALL OF ITS COMPONENTS, THEY REALLY NEED TO SEE INFLATION CONTINUE TO MOVE DOWN ON A SUSTAINED

BASIS BEFORE THEY CAN TURN TO CONSER CTINGATE, AND THAT IS EXACTLY WHAT WE HEARD FROM NEW YORK FED PRESIDENT JOHN WILLIAMS YESTERDAY. HE SAID, QUOTE, I EXPECT WE WILL NEED TO MAINTAIN A RESTRICTIVE STANCE OF POLICY FOR SOME TIME TO FULLY ACHIEVE OUR GOALS.

AND IT WILL ONLY BE APPROPRIATE TO DIAL BACK THE DEGREE OF POLIC CONFIDENT THAT INFLATION IS MOVING TOWARD 2% ON A SUSTAINED BASIS. STILL, WALL STREET HOPEFUL PRICING IN ODDS OF BETTER THAN 60% CHANCE THAT THE FED WILL BEGIN CUTTING RATES IN MARCH.

OF COURSE, OFFICIALS HAVE PRICED IN ABO RAT CUTS THIS YEAR, BUT NO SENSE OF TIMING ON THAT. IN FACT, MANY OFFICIALS PUSHING BACK ON SOONER, THEY’RE THINKING MORE LATER AT THIS POINT. RACHELLE. >> CERTAINLY SOME WATER GETTING THROWN ON THE MOMENTUM THAT MARKETS HAVE PRICED IN THERE.

JENNIFER SCHONBERGER, TNK YOU SO MUCH. >>> AS WE NOTED CPI CAME IN EVEN HOTTER THAN EXPECTED IN DECEMBER, AND WE CAN SEE THE MAJOR AVERAGES REACTING MIXED ON THIS NEWS. JOINING ME NOW IS JOHN McCLAIN, BRANDY WINE PORTFOLIO MANAGER. GOOD TO SEE YOU. GIVE US CONTEXT, YOU’RE SAYING

THIS DOESN’T MOVE THE NEEDLE IN TERMS OF THE MARKET NARRATIVE. WHY IS THAT? >> THE MARKET WANTS TO GO HIGHER, AND I THINK WE GOT A SLIGHTLY STRONGER CPI TODAY, AND WE’RE SEEING A BIT OF A PULL BACK, BUT NOT ANYTHING MEANINGFUL RIGHT NOW, AND, YOU

KNOW, I THINK THE THR BIGST INGS TO TAKE AWAY FROM THE CPI REPORT, ONE BEING THE SHELTER COMPONENT UP HALF A PERCENT, AND THAT’S IN LINE WITH RECENT TREND, BUT WE THINK HOUSING IS GOING TO BE STRONG IN 2024, AND BECAUSE IT’S THE BIGGEST

COMPONENT OF CPI, THAT’S GOING TO BE A REAL CHALLENGE TO SEE US MOVINGROM THI MID 3s, HIGH 3s TYPE OF NUMBER DOWN TO THE FED’S TARGET OF 2%, AND THEN OTHER COMPONENTS THAT HAVE BEEN PRETTY VOLATILE, AIR FARE AND USED CARS WERE ONLY UP A PERCENT, AND HALF PERCENT.

THEY’RE NOT AS VOLATILE ANYMORE. WE’RE NOT GOING TO SEE AS MUCH NOISE. AND THE LAST PIECE IS THE MEDICAL CARE COMPONENT, UP 6/10 OF A PERCENT. THAT’S GOING TO LEAD TO THE POTENTIAL FOR SOME HIGHER PRINTS IN 2024, SO THE MARKET NARRATIVE HAS GOTTEN AHEAD OF ITSELF.

IT’S SAYING SIX CUTS, BALANCE SHEET RUNOFF IS GOING TOLOW DOWN HERE. WE THINK THAT IF THAT WERE TO BE CORRECT, THEN THE SOFT LANDING IS OFF THE TABLE HERE. YOU’RE NOT GOING TO SEE SIX CUTS PLUS, A SLOW DOWN OF QT WITH THE

>> AND SO THEN AS WE LOOK AT SOME OTHER MESSAGING HERE, I KNOW MARKETS LOOKING FOR CLARITY ON THE FED, THE FED KIND OF HEDGING THEIR BETS SO MARKETS AREN’T REALLY SURE, WHICH IS WHY THEY’RE RUNNING WITH WHATEVER NARRATIVE MAKES SENSE FOR THEM.

YOU COMPARE THE FED AND THE MARKET RELATIONSHIP TO AN OLD HO DOES THIS RELATIONSHIP END UP GOING FROM THIS POINT, GIVEN THIS DATA? >> YOU KNOW, AGAIN, THE FED’S MESSAGE IS CONSTANTLY MUDDLED HERE. WE HAVE LOGAN SAYING BALANCE SHEET RUNOFF IS GOING TO SLOW DOWN.

WE HAD WILLIAMS CONTRADICT THAT, AND THE MARKET JUSTSA, HEY, RISK ON, AND LET’S KEEP GOING, AND PUSHING STOCKS HIGHER AND BOND YIELDS LOWER. I THINK AT A CERTAIN POINT IN TIME THE DATA IS GOING TO SUPPORT MORE OF WHERE THE FED IS

SAYING RATES ARE GOING TO BE BY THE END OF 2024, WHICH IS A NOT HAPPENING IN MARCH.ND IT’S AND THE MARKET’S GOTTEN, AGAIN, WAY AHEAD OF ITSELF HERE, AND I THINK WE’LL CONTINUE TO GET MORE DATA, AND THE MARKET WILL COALESCE TO WHERE THE FED IS

THIS TIME AROUND. >> WHEN YOU LOOK AT THE FUNDAMENTALS IN THE MARKET, OBVIOUS BOOKS OBVIOUSLY WE SAW THE NARROW RALLY WITH THE TECH STOCKS AND STARTED TO BROADENING OUT. WHAT ARE YOU LOOKING AT IN TERMS OF VALUATIONS AT THE MOMENT? >> FUNDAMENTALS ARE STRONG.

WE HAVE A NUMBER OF CONFERENCES GOING ON, THE JPMORGAN HEALTH CONFERENCE, AND KINDF TH INFORMATION WE’RE GETTING FROM COMPANIES HERE IS THINGS ARE PRETTY REASONABLY STRONG IN THE MARKETPLACE, AND WE THINK WE WILL SEE SOME NICE TOP LINE GROWTH AND POTENTIAL MARGIN

EXPANSION FROM COMPANIES IN 2024. THE PROBLEM WITH THAT IS THAT VALUATIONSRE VER HIGH. YOU LOOK AT THE S&P 500, TRADING AT 22 TIMES PE. THAT’S AN ELEVATED LEVEL, PARTICULARLY FED FUNDS NORTH OF 5%. YOU LOOK AT INVESTMENT GRADE, THAT’S A TIGHT LEVEL.

SAME THING WITH HIGH YIELD, 350 SPREAD. WE’RE KIND OF PRICED FOR THE SOFT LANDING, THE GOLDILOCKS NARRATIVE, AND IT’S GOING TO BE HARD, AND WE THINK, AS WE MENTIONED A LITTLE BIT EARLIER, THERE’S GOING TO BE CONFLICTING DATA WHICH LEADS TO THE

ELATEDN 2024. CPI TO STAY I DON’T THINK WE’RE GOING TO BE DECLARING VICTORY BEFORE WE HAVE THE PRESIDENTIAL ELECTION. >> SO, JOHN, THEN, FOR THOSE WHO ARE LOOKING MORE LONG-TERM, WHAT ARE SOME OF THE RISKS OR OPPORTUNITIES YOU’RE LOOKING AHEAD AT AS OPPOSED TO THIS

JUMPING FROM MONTH TO MONTH DATA AS WE TEND TO SEE MARKETS DO. >> ABSOLUTELY, I WISH WE COULD FOCUS MORE ON THE LONGER TERM IN THESE TYPES OF DISCUSSIONS, AND REALLY THERE’S THREE KEY THEMES THAT I THINK ARE GOING TO PERMEATE FOR THE NEXT SEVERAL

YEARS, AND ONE IS DEGLOBALIZATION, ONE IS DECARBONIZATION AND THE OTHER IS POPULATION DEMOGRAPHICS, AS WE’RE AGEING IN THE DEVELOPED ECONOMY. ALL OF THESE THINGS ARE INFLATIONARY IN NATURE. I THINK INFLATION IS GOING TO BE A DISCUSSION THAT WE’RE GOING TO CONTINUE TO HAVE FOR THE

FORESEEABLE FUTURE, THE NEXT SEVERAL YEARS. >> AND OF COURSE WE’LL BE LOOKING AHEAD TO THE ELECTIONS IN NOVEMBER. IT FEELS LIKE THE ELECTION CYCLE JUST NEVER ENLDS, BUT PARTICULARLY FOR MARKETS. IS IT REALLY ON THE BACK BURNER AS THEY HYPER FOCUS ON THINGS

LIKE INFLATION AND WAITING TO SEE SORT OF AI ADOPTION AND IMPROVEMENTS THERE? >> YEAH, ABSOLUTELY. I MEAN, I THINK WE’LL START TO TURN OUR ATTENTION TO THE ELECTION NEXT WEEK WITH IOWA. BUT, YOU KNOW, I DON’T THINK THAT WE’RE REALLY GOING TO BE

PAYING CLOSE ATTENTION UNTIL SOMETIME IN 2Q, AND ELECTION RISK ISN’T PRICED INTO THE RKET ONE WAY OR ANOTHER, THE FED IS GOING TO BE POLITICIZED FOR HOW THEY ACT. WE THINK THAT’S WRONG. THE TIMING AND SIZE OF CUTS WILL IMPACT WHO GETS ELECTED.

WE WOULD ALSO SAY THAT YOU WANT TO BUY RISK INTO AN ELECTION DAY, IRRESPECTIVE OTHE OUTCOME. THE MARKET HATES UNCERTAINTY, AND AS SOON AS THE UNCERTAINTY IS REMOVED, DESPITE THE OUTCOME, THE MARKET IS GOING TO MOVE HIGHER. WE THINK THAT ALSO GOING INTO

THIS ELECTION YEAR, YOU’RE GOING TO SEE THE DEMOCRATS LOOKING TO SPEND AND STIMULATE HOWEVER THEY CAN. AGAIN, THAT HIGHER SPENDING AND GHER FISCAL DEFICIT IS MOST LIKELY GOING TO BE INFLATIONARY, AND THUS, WE BELIEVE THAT LEADS TO THAT HIGHER FOR LONGER OUTCOME. >> WE’LL CERTAINLY BE TRACKING

THAT. GREAT TO GET YOUR TAKE THIS MORNING. JOHN McCLAIN, BRANDYWINE GLOBAL PORTFOLIO MANAGER. THANK YOU SO MUCH. >>>LL, DECEMBER CPI REPORTS SHOWED PRICES WERE HIGHER THAN EXPECTED. WE SAW PRICES RISE 3.4% YEAR OVER YEAR COMPARED TO 3.2% THAT WAS EXPECTED AND 3.1% LAST MONTH.

THE ENERGY INDEX DRIVING A LOT OF THOSE GAINS. PRESIDENT JOE BIDEN AND HIS ADMINISTRATI AS WE HEAD INTO THE THICK OF A CONTENTIOUS ELECTION YEAR, WHAT DOES IT MEAN FOR EM? WE HAVE DANIEL HORNON, A PLEASURE TO HAVE YOU ON THE SHOW.

I WANT TO GET YOUR REACTION TO THIS CPI DATA. WE NEED TO PUT IT IN CONTEXT OF HOW CPI HAS LOOKED OVER THE PAST YEAR AS WELL. >> IT’S GOOD TO BE WITH YOU, RACHELLE. YOU KNOW, I THINK THIS MORNING’S REPORT WAS AN ENCOURAGING ONE OVERALL.

IT SHOWED CORE INFLATION AT ITS LOWEST LEVEL SINCE MAY 2021, AND WE’VE SEEN THAT PROGRESS IN THE ANNUAL CORE INFLATION MEASURE AT A TIME WHEN OVER THE COURSE OF LAST YEAR NOW THAT WE HAVE THE FULL YEAR OF DATA, THE UNEMPLOYMENT RATE REMAINED BELOW 4%.

WE SAW 2.7 MILLION JOBS CREATED OVER THE COURSE OF THE YEAR, REAL WAGE GROWTH OVER THE COURSE OF THE YEAR, AND THAT LAST POINT IS PARTICULARLY IMPORTANT BECAUSE WE NOW SEE WAGES ADJUSTED FOR INFLATION HIGHER THAN THEY WERE FOUR YEARS AGO,

WHICH IS REALLY IN CONTRAST TO THE FORECAST THAT WE SAW LAST YEAR THAT SAID IT WOULD TAKE A BIG UPTICK IN UNEMPLOYMENT, A WAGE SLOW DOWN TO GET INFLATION DOWN: THAT’S NOT WHAT WE’VE SEEN AT ALL. OVERALL, AN ENCOURAGING REPORT. FROM THE PRESIDENT’S

PERSPECTIVE, MORE WORK TO DO TO LOWER COSTS FOR AMERICAN FAMILIES, BUT AN ENCOURAGING REPORT, SIGNALING REAL PROGRESS AT THE END OF 2023, HEADING INTO 2024. >> PRESIDENT BIDEN OUT WITH A WHITE HOUSE STATEMENT SAYING THERE IS MORE WORK TO DO TO

LOWER COSTS FOR AMERICAN FAMILIES AND WORKERS. WHAT ARE THE WAYS HE CAN PLAY A ROLL IN THAT, VERSUS WHAT WE HAVE SEEN NATURALLY HAPPENING WITH THE ECONOMY AND INFLATION. >> WE HAVE SEE REAL PROGRESS ON CERTAIN KEY PRICES ACTUALLY COMING DOWN OVER THE LAST YEAR

AS THE ECONOMY HAS NORMALIZED, AS PRESIDENT BIDEN’S EFFORTS TO HELP FIX SUPPLY CHAINS AND BRING THE PRIVATE SECTOR, AND LABOR TOGETHER AT OUR PORTS THROUGHOUT THE COUNTRY HAS WORKED ITS WAY THROUGH THE STEM AS MORE AMERICANS HAVE GOTTEN BACK INTO THE LABOR FORCE, THANKS IN PART

TO THE STRONG LABOR MARKET THAT HIS POLICIES HAVE HELPED BRING ABOUT. LOOKING AHEAD, HE’S GOING TO BE LASER FOCUSED ON IMPLEMENTING HISTORIC LEGISLATION. HE’S PASSED LOWER PRESCRIPTION DRUG COSTS TO LOWER HEALTH INSURANCEEMIUMS, CLEAN ENERGY COSTS. HE’S FOCUSED ON TAKING ON JUNK

FEES AND DOING EVERYTHING WE CAN TO LOWER COSTS FOR THE AMERICAN PEOPLE, AND THAT REALLY IS IN STARK CONTRAST TO WHAT WE’RE SEEING RIGHT NOW FROM CONGRESSIONAL REPUBLICANS, WHICH IS A FOCUS ON, YOU KNOW, HAVING TROUBLE EVEN KEEPING THE GOVERNMENT OPEN. FOCUSING O LOWERING COSTS FOR

MIDDLE CLASS FAMILIES ON TAX CUTS FOR THE WEALTHIEST pAMERIC CORPORATIONS. THAT’S A REAL CONTRAST IN FRONT OF THE AMERICAN PEOPLE NOW AND THE ECONOMY. >> WHEN PEOPLE ARE, YOU KNOW, HEADING TO THE POLLS WHERE THEY’RE DECIDING ON A CANDIDATE. ONE OF THE THINGS THAT REALLY

HITS HOME FOR PEOPLE I HOW THEY ACTUALLY FEEL ABOUT THEIR FINANCES, AND AXIOS AND THE HA HARRIS POLL CAME OUT WITH A SURVEY, THE PEOPLE THAT FEEL THE WORST ABOUT THEIR FINANCES AND THE ECONOMY, REPUBLICANS, RURAL RESIDENTS, RENTERS, WOMEN AND SINGLES DISPROPORTIONATELY FEELING WORSE.

W D YOU CONNECT THE DOTS BETWEEN SOME OF THE PROGRESS YOU’RE LAYING OUT IN THE ECONOMY BUT HOW PEOPLE ARE FEELING ABOUT THAT CONSIDERING THIS IS AN ELECTION YEAR? >> WELL, THERE’S NO DOUBT IT’S BEEN A DIFFICULT SEVERAL YEARS FOR AMERICANS COMING OUT OF THE

PANDEMIC, COMING OUT OF THE DEEP DISRUPTIONS TO GLOBAL SUPPLY CHAINS. WE SAW ELEVATED INFLATION ALL OVER THE WORLD BECAUSE OF THOSE ISSUES, AND SO THE PRESIDENT IS REALLY FOCUSED ON DOING EVERYTHING HE CAN TO LOWER COSTS FOR FAMILIES. THE REAL WAGE GROWTH I WAS

TALKING ABOUT EARLIER IS IMPORTANT BECAUSE OVER A SUSTAINED PERIOD OF TIME W, ABOUT NINE MONTHS, WE HAVE WAGES GROWING FASTER THAN PRICES. OUR VIEW HAS BEEN THAT AS THAT CONTINUES TO SUSTAIN ITSELF, THAT AMERICANS WILL START TO FEEL BETTER ABOUT THE ECONOMY.

THEY FELT GOOD ABOUT THEIR FINANCIAL SITUATION THEMSELVES FOR SOME TIME. BUT I THINK THOSE REAL WAGE GAINS. THOSE INCREASES IN WEALTH RELATIVE TO THE PANDEMIC, THAT WILL HELP FOLKS FEEL BETTER ABOUT THE OVERALL ECONOMY AS WELL, AND WE SAW SOME INITIAL

INDICATIONS OF THAT IN THE CONSUMER SENTIMENT DATA WE GOT IN DECEMBER. >> AND I DO WANT TO ASK YOU ABOUT THE CONSUMER BECAUSE PART OF POLL THAT WE SAW HERE, THE CEO OF THE HARRIS POLL SUGGESTED THAT PEOPLE ARE CONSUMING IN DENIAL, THAT THEY’RE CONTINUING

TO SPEND, RUN UP CREDIT CARD BILLS AS WE SECREDIT CARD DEBT HITTING A MILLION DOLLARS. THEY’RE MORE LIKEL TO BLAME THE GOVERNMENT. IF YOU LOOK AT THE STRENGTH O. CON OF THE CONSUMER AND CONTRAST WITH THEIR DEBT AND SPENDING, HOW CONFIDENT ARE YOU FEELING

ABOUT HOW PEOPLE ARE FEELING ABOUT THE PRESIDENT AND HOW HE’S HANDLING THE FINANCES OF THE COUNTRY? >> WE ARE SEEING IN THE DATA, STRONG CONSUMER ACTIVITY AS YOU MENTIONED, CONTINUED OVER THE COURSE OF THE LAST SEVERAL QUARTERS. THAT’S ENABLED BECAUSE WE’RE SEEING A STRONG JOB MARKET.

AMERICANS HAVE THE RESOURCES THEY NEED TO BUY THE THINGS THAT THEY WANT AND THAT THEY NEED. AND THE PRESIDENT IS GOING TO BE FOCUSED ON SUSTAINING THAT STRONG ECONOMIC ACTIVITY, SUSTAINING THE STRONG JOB MARKET AND MAKING THE CASE TO THE AMERICAN PEOPLE THAT HE HAS A

PLAN THAT IS ABOUT LOWERING COSTS FOR THEM, EXPANDING OPPORTUNITIES FOR THEM, AND THAT’S IN REAL CONTRAST TO THE FOCUS WE SEE FROM REPUBLICANS ON CAPITOL HILL. THAT’S REALLY ABOUT CUTTING TAXES FOR THE WEALTHIEST AMERICANS AND THE LARGEST CORPORATIONS, AND THAT IS THEIR

PRIMARY ECONOMIC GOAL RIGHT NOW. >> AND SO ARE THERE ANY HEAD WINDS THAT YOU SEE TO THE ECONOMIC PROGRESS, A LOT OF PEOPLE WONDERING IF WE’RE GOING TO SEE A RECESSION ORF THAT’S OFF THE TABLE. IS THAT SOMETHING THAT YOU’RE FORECASTING?

>> LOOK, A YEAR AGO, I THINK THAT RECESSION WAS VERY MUCH IN THE BASE CASE FORECAST. WE’VE SEEN TREMENDOUS RESILIENCE OVER 2023. WE THINK AS WE HEAD INTO 2024, WE’RE POSITIONED FOR CTINU RESILIENCE. OBVIOUSLY WE NEED TO CONTINUE TO MONITOR ALL RISKS ON THE HORIZON.

YOU KNOW, I THINK IF YOU LOOK ACROSS THE GLOBAL ECONOMY, THE UNITED STATES REALLY IS UNIQUELY POSITIONED FOR CONTINUED STRONG ECONOMIC PERFORMANCE INTO 2024. BUT WE’LL BE MINDFUL OF ALL RISKS ON THE HORIZON FROM GEOPI RISKS. >> APPRECIATE YOU TAKING THE

TIME TO JOIN US THIS MORNING. DANIEL HORNUNG, NATIONAL COUNCIL DEPUTY DIRECTOR. THANK YOU SO MUCH. >> GREAT TO BE HERE. >>> COMING UP, THE APPROVAL OF TOF BUZZ IN THE CRYPTO WORLD G A AFTER THE S.E.C. GREEN LIT 11 OF THEM. SEVERAL ETFs STARTED TRADING THIS MORNING.

WE’LL HEAR FROM ONE OF THOSE MONEY MANAGERS ON THE OTHER SIDE OF THIS BREAK. >>> SEVERAL APPROVED SPOT BITCOIN ETFs BEGAN TRADING THIS MORNING AFTER THE S.E.C. GREEN LIT 11 OF THEM, INCLUDING BLACK ROCK AND WISDO TREE. THE LANDMARK APPROVAL PAVES THE

WAY FOR INVESTORS TO GAIN EXPOSURE TO BITCOIN AS A WAY TO DIVERSIFY THEIR PORTFOLIO. LET’S BRING IN WISDOM TREE GLOBAL HEAD OF RESEARCH TO DISCUSS THIS MORE. THANK YOU FOR JOINING ME THIS MORNING, AND OF COURSE A LONG TIME COMING WAITING FOR THESE OT BCOIN EFTs.

I WANT TO GET YOUR REACTION, GIVEN THIS WAS SOMETHING THAT WAS TEN YEARS IN THE MAKING NOW THAT IT’S FINALLY HERE. >> ABSOLUTELY. THANK YOU FOR HAVING US TODAY. AS WISDOM TREE WE HAVE BEEN MANAGING BITCOIN ASSETS ALL THE WAY BACK TO 2019.

SO WE HAVE BEEN VERY ACTIVE WITHIN THE SPACE. BEEN SEEKING TO INNOVATE. WE WATCHED A COUPLE OF YEARS AGO, THE FUTURES BASED STRATEGY AND RECOGNIZED THERE’S A DIFFICULT IN GENERATING THE EXP. TO BE ABLE TO OFFER TO CLIENTS THE SPOT PRICE EXPOSURE WHICH IS

WHAT HAPPENED IN THE COUPLE OF DAYS HERE, IT’S EXTREMELY EXCITING BECAUSE IT IS A BETTER STRUCTURE AND REALLY THAT’S WHAT WE’RE FOCUSED ON HERE AT WISDOM TREE. >> SO CHRISTOPHER, OBVIOUSLY YOU D A WAVE OF THEM APPROVED ALL AT ONCE. HOW DOES WISDOM TREE

DIFFERENTIATE ITSELF FROM THE REST THAT ARE ALL LAUNCHED AT THE SAME TIME? >> THAT IS THE QUINTESSENTIAL QUESTION, AND SO THE FACT THAT WE HAVE A LARGE TEAM. WE’RE FOCUSED ON THIS FOR YEARS LEADING UP TO THIS MOMENT, THAT IT GOING TO LEAD TO BETTER

RESEARCH MATERIALS, ABILITY TO BRING MORE VALUE TO CERTAIN CLIENTS AND RELATIONSHIPS, BUT YOU’RE ABSOLUTELY RIGHT TO NOTE AT THE END OF THE DAY, EVERYONE IS PROVIDING EXPOSURE. IT’S THE SAME UNDERLYING SPOT ORIENTED BITCOIN ETFs. MANY OF THE PROVIDERS ALSO WAVING THE FEES TO ZERO, AT

LEAST INITIALLY, FOR VARIOUS POINTS OF TIME AND AMOUNTS. SO IT’S GOING TO BE AMONG THE MOST COMPETITIVE DYNAMICS THAT WE BELVE WHAVE SEEN AT WISDOM TREE IN THE ETF INDUSTRY. >> AND THIS IS SOMETHING THAT YOU HAVE ALREADY SEEN IN EUROPE WITH YOUR BITCOIN ETFs OVER

THERE. TALK ABOUT HOW THAT COMPARES TO THE MARKET THAT YOU SEE IN THE U.S. >> SO IT’S FASCINATING TO THINK ABOUT THEACT THA DIFFERENT REGIMES, DIFFERENT PLACES AROUND THE WORLD, REGULATORILY SPEAKING HAVE HAD A DIFFERENT TIME LINE TO ALLOW THE USE CASES AND

ULTIMATELY EXPOSURES TO SPOT DIGITAL ASSETS. AT THE END OF THE DAY, WHEN YOU LOOK AT THE EUROPEAN STUDY, A LOT OF THOSE REGULATORS AND EXCHANGES WERE EARLIER ON THE TIME LINE. SO A BIT AHEAD OF THE GAME. IT’S FASCINATING TO CONSIDER

THAT IN ETFs BROADLY, THE U.S. IS AHEAD OF AND LARGER IN EUROPE, AND BASICALLY EVERY OTHER ASSET CLASS WITH OBVIOUSLY THE EXCEPTION NOW OF BITCOIN AND CRYPTOCURRENCY. SO EUROPE HAS HAD A FOUR-YEAR HEAD START, BUT WE’RE ALREADY SEEING A MASSIVE TRADING VOLUME TODAY WITHIN THIS ECOSYSTEM THAT

HAS BEEN CREATED WITH THESE 11 DIFFERENT STRATEGIES, SO WE’LL SEE AT THE E OF THE DAY, I THINK IN A COUPLE OF DAYS WITH THE FUTURE SPACE STRATEGY, THERE WAS MORE THAN A BILLION IN AUM A COUPLE OF YEARS BACK, AND SO AT

THE END OF THE DAY, WE’LL HAVE TO SEE HOW THESE COUPLE OF TRADING DAYS COMPARE TO THAT AND WHERE WE ARE COMPARED TO EUROPEAN MITHIN THE FIRST COUPLE OF WEEKS. >> I’LL BE CURIOUS TO SEE SOME OF THE INFLOWS. OBVIOUSLY YOU HAVE A LOT OF

INSTITUTIONAL INVESTORS AT THE HEAD OF THIS, RETAIL INVESTS, WHEN YOU THINK ABOUT HOW BITCOIN STARTED AND NOW YOU SEE HUGE ASSET MANAGERS TAKING THE LEAD TO GET THE SPOT BITCOIN ETF THROUGH. WHAT DOES THAT MEAN THEN IN TERMS OF BITCOIN’S MOVEMENTS MOVING FORWARD?

>> WE VIEW POSITIVELY AT WISDOM TREE ANYTHING THAT GETS MORE PARTICIPANTS IN TO THE BITCOIN ECOSYSTEM AS PRICE POSITIVE BECAUSE ESSENTIALLY YOU THINK OF THE FACT THAT THERE’S A VERY VERY DEFINED ALGORITHM DRIVEN SUPPLY OF BITCOIN, AND WE HAVE THE HAVING EVENT.

THE HAVING EVENTS, THEY HAPPEN EVERY FOUR YEARS ROUGHLY SPEAKING, THEY’RE EXPECTED TO HAPPEN IN COUPLE OF MONTHS HER WHERE THE BLOCK REWARD FOR THE MINORS GOES DOWN BY A HALF. AGAIN, IT WILL BE THE FOURTH SUCH EVENT, AND HISTORICALLY, THAT MEANS THERE’S LESS BITCOIN

SUPPLY COMING INTO THE MARKET. YOU HAVE A POTENTIAL SOURCE OF DEMAND HERE FROM A DIFFERENT RANGE OF INVESTORS. YOU COMBINE THESE ELEMENTS TOGETHER, AND IT’S POSSIBLE, LIKE OTHER COMMODITIES AND CURRENCIES IF THE SUPPLY IS OUT PACED BY THE DEMAND, YOU CAN

HAVE A VERY POSITIVE PRICE DYNAMIC, AND THAT’S WHAT WE ULTIM WEON’T KNOW THE TIME FRAME IN THE SENSE OF WAS THERE ANTICIPATION OF THIS APPROVAL BAKED IN. DO YOU SEE A LITTLE BIT BY THE RUMOR, SELL THE NEWS FOR A COUPLE OF DAYS HERE.

WE’LL HAVE TO SEE HOW THE SHORT-TERM ESSENTIALLY GETS MODERATED INTO THE MEDIUM AND LONG-TERM, WHICH WE THINK CAN BE QUITE POSITIVE. AND I D THINK IT WAS INTERESTING THAT S.E.C. CHIEF, GARY GENSLER WAS THE ONE THAT GAVE THAT DECIDING VOTE TO PRESS

AHEAD WITH THE SPOT BITCOIN ETFs. AS PEOPLE ARE LOOKING AHEAD AS TO WHAT’S NEXT, WHAT COULD BE THE NEXT CRYPTO ASSET TO GET THAT SORT OF TREATMENT, WHAT WOULD YOU TELL THEM? IF YOU LOOK AT ETHEREUM AND ETHER, IT’S A DIFFERENT BALL GAME.

DO YOU HAVE PLANS TO INCLUDE OTHER ASSETS? >> AT WISDOM TREE, WE’RE CERTAINLY LOOKING ACROSS THE BOARD. WE HAVE OUR WISDOM TREE PRIME ECOSYSTE WHI IS MEANT TO REALLY TOKENIZE A WHOLE SUITE OF FINANCIAL ASSETS AND ALLOW DIRECT SPENDABILITY TO THE USER,

SUCH THAT IF PEOPLE WANT TO HOLD THEIR MONEY IN DIFFERENT INVESTABLE ASSETS, BE IT TREASURIES, GOLD, BITCOIN, WHAT HAVE YOU AND DIRECTLY GO OUT AND BUY A COFFEE BASED ON THOSE UNDERLINES, THAT’S SOMETHING WE’RE BRINGING TO THE MARKET. WE’RE EXTREMELY FOCUSED ON THE

ENTIRE DIGITAL ASSETS ECOSYSTEM AND TOKENIZED FINANCE, AND WE ARE AIMING TO BE FIRST OR CLOSE TO FIRST IN ANY OF TSE NT DEVELOPMENTS AS THEY OCCUR. >> WELL, CONGRATULATIONS, OF COURSE, TO THIS NEW DEVELOPMENT HERE. THANK YOU FOR TAKING THE TIME TO JOIN US THIS MORNING.

CHRISTOPHER GANNATTI, HEAD OF GLOBAL RESEARCH. THANK YOU VERY MUCH. >> THANK YOU. >>> AND FOR MORE, STICK AROUND FOR OUR INTERVIEW WITH SENATOR CYNTHIA LUMMIS OF WYOMING. YOU DON’T WANT TO MISS IT: WE’RE IN LAS VEGAS ALL WEEK BRINGING WEL BRING YOU OUR CONVERSATION

WITH THE CORPORATE VICE PRESIDENT OF AMD NEXT. >>> I’M AKIKO FUJITA ON THE GROUND HERE IN LAS VEGAS AT CES 2024 WHERE THE CONVERSATION HAS BEEN ABOUT ARTIFICIAL INTELLIGENCE, SPECIFICALLY ABOUT AI IN DEVICES. TO TALK MORE ABOUT THAT, WE HAVE JASON BANTA, THE GENERAL MANAGER AT AMD.

AMD UNVEILED ITS AIPC LAST YEAR, CERTAINLY BEEN A BIG FOCUS AT CES THIS YEAR. A YOU KIND OF ASSESS THE LANDSCAPE, HOW ARE YOU THINKING ABOUT TS RIT NO SFL >> YEAH, SO AIPC IS A BIG TOPIC OF CONVERSATION. THANK YOU FOR JOINING US IN THE

AMD BOOTH TO TALK MORE ABOUT THAT, AND AIPC IS SOMETHING THAT WE’RE SEEING EMERGE IN THE PC MARKET OVERALL. REALLY WHAT THAT DOES IS BRINGS AI CAPABILITY THAT TYPICALLY YOU R DEVICES, BRING THAT LOCALLY IN THE PC TO PERFORM CLOSER TO THE USE S

USE, AND THAT MEANS A LOT OF THINGS YOU SEE FROM A GENERATIVE AI ABILITY, ASSISTANCE, THOSE DECE, WHICH BRINGS A LOT OF HE COST AND PERFORMANCE AND PRIVACY ADVANTAGES TO PEOPLE ACCESSING THOSE GENERATIVE AI EXPERIENCES. AS YOU MENTIONED, WE INTRODUCED RISING AI, WHICH WAS OUR ENTRY

INTO THE AI PC MKET LAST YEAR. WE WERE THE FIRST TO BRING THAT INTO THE X86 PC MARKET, AND WE’RE MAKING IT BIGGER THIS YEAR IN 2024 WITH HIGHER PERFORMANCE RISE IN AI ENGINE, A LARGER PORTFOLIO ON THE NOTEBOOK SIDE, AND WE’RE ALSO BRINGING IT INTO

THE DESKTOP MARKET AS WELL, BRINGING THAT RISE IN AI CAPABILITY. IT’S A BIG EXPANSION FOR US FROM ’23 TO ’24 FROM AN AI PC PERSPECTIVE. >> YOU MENTIONED A NUMBER OF ADVANTAGES WHEN YOU GET THE AI ON THE DEVICE, BUT COST AND PERFORMANCE SPECIFICALLY, WHAT

SHIFTS AS A RESULT WHEN IT’S NOT ON THE CLOUD AND ON THE DEVICE. >> USING GENERATIVE AI OR INFERENCING IN THE CLOUD, THERE ARE COSTS ASSOCIATED WITH THAT. TYPICALLY THAT IS THE PERSON WHO IS USING THE DEVICE OR USING THAT EXPERIENCE IS PAYING A

CLOUD PROVIDER TO ACCESS THOSE GENERATIVE AI CAPABILITIES. BY HAVING IT LOCAL ON THE DEVICE, THAT AI MODEL IS RUNNING CLOSER TO THE USER WITHOUT ACCESSING CLOUD AND REQUIRING THOSE CLOUD COSTS. THE PERFORMANCE OF IT, YOU SEE LOWER LATENCY, PAUSE YOU DON’T

HAVE TO SEND THAT DATA UP, MAKE A REQUT, SD IT BACK. YOU CAN ACTUALLY MAKE THAT, YOU KNOW, WHETHER YOU’RE GENERATING AN IMAGE OR TRYING TO GET A RESPONSE FROM A PROMPT, YOU CAN DO THAT WITH LOWER LATENCY BY HAVING IT ON THE DEVICE, AND ALL

OF THAT INFORMATION STAYS ON THE DEVICE PRIVATELY AS OPPOSED TO GOING UP TO THE CLOUD. THE’S OT OF ADVANTAGE THERE FROM A COST PERSPECTIVE, LATENCY PERFORMANCE PERSPECTIVE, AS WELL AS A PRIVACY PERSPECTIVE, SO ALL OF THAT REALLY, YOU KNOW, THE END USER CAN SEE THAT WHEN THEY

GET AI PC IN THEIR HANDS. >> WE HAVE CERTAINLY GOTTEN TO SEE, YOU COULD ARGUE A BIT OF A PREVW I TER OF THE USAGE ON THE PC. COPILOT BEING INTEGRATED THROUGH MICROSOFT, AND ENTERPRISE CERTAINLY THE FIRST TO KIND OF INTEGRATE IN THAT WAY.

AS YOU LOOK BEYOND, HOW DOES THIS FUNDAMENTALLY CHANGE THE PC EXPERIENCE FOR THE USER? >> THE AI EXPERIENCE, ITHINK, IS PROBABLY THE MOST TRANSFORMATIONAL THING WE HAVE SEEN IN THE PC IN A VERY VERY LONG TIME. YOU TALKED ABOUT MICROSOFT. THEY WERE PARTNERING WITH US IN

’23, AND WE’RE GOING BIGGER IN THAT PARTNERSHIP IN ’24. THEY LIT UP SOME OF THE EARLIEST EXPERIENCES WE HAVE SEEN FROM AN AI PC PERSPECTIVE. A LOT OF IT AROUND VIDEO CONFERENCING. THERE ARE IMAGE ENHANCEMENT, THINGS YOU CAN DO IN VIDEO ENHANCING THAT YOU COULDN’T DO

BEFORE, AND YOU CAN DO THOSE AT MUCH LOWER POWER AND BATTERY LIFE WITH MICROSOFTUILDG THOSE EXPERIENCES AROUND AI PCs. YOU TALKED ABOUT COPILOT, THE ABOUT TO GET THE ASSISTANCE, USE THE DEVICE, MUCH MORE SEAMLESSLY IS SOMETHING COPILOT BRINGS. WE’RE PARTNERING WITH MICROSOFT ON THAT AS WELL.

TH TALKED ABOUT THAT LATE LAST YEAR. AND SO WE’RE PARTNERED WITH MICROSOFT IN A NUMBER OF THOSE. THEY’RE REALLY OUR PREMIERE ISB PARTNER WHEN IT BRINGS TO BRINGING AI PC EXPERIENCES TO THE LOCAL DEVICE. >> NO SURPRISE, WE HAVE SEEN SOME BIG ANNOUNCMENTS FROM YOUR

COMPETITORS OUT THERE AS WELL. WE WERE SPEAKING TO INTEL THE OTHER DAY. THIS REALLY IS OR SEEMS TO BE THE BIG FOCUS. HOW DOES AMD POSITION ITSELF IN THIS SPACE? >> SO WE WANT TO BE FIRST AND BEST WHEN IT COMES TO AI PCs.

THAT’S OUR OBJECTIVE IN ALL OF OUR DIFFERENT IPs, CORES, GRAPHICS OR AI, FIRST AND BEST IN EVERYTHING. FROM AN AI PERSPECTIVE, YOU CAN FEEL THOSE PERFORMANCE BENEFITS. SO IN 2023, WE LAUNCHED RISE IN AI WITH TEN TOPS TO PERFORMANCE. WE IREAS THA 16 TOPS TO

PERFORMANCE FOR OUR XTNA ENGINE, THE ENGINE THAT POWERS THE AI EXPERIENCES, ENHANCE THAT PERFORMANCE AND YOU CAN REALLY FEEL THAT WHEN YOU GET A RESPONSE FROM A PROMPT OR WHETHER YOU GENERATE AN IMAGE, SOME OF THE STUFF THAT’S GOING ON BEHIND US HERE.

WHEN YOU GERATAN IGE FROM A PROMPT ON THE DEVICE, IT HAPPENS MUCH FASTER BECAUSE YOU DON’T WANT TO SIT, IF YOU’RE TRYING TO GENERATE AN IMAGE FOR A POWER POINT PRESENTATION OR WHATEVER, YOU DON’T WANT TO WAIT TOO LONG FOR THAT RESPONSE, SO

ENHANCING THAT AI PERFORMANCE BRINGS THAT. AND SO WE WANT TO STAY AHEAD FROM AN AI PERFORMANCE PERSPECTIVE. AND WE WANT TO DO THAT IN A MUCH MORE ACCESSIBLE WAY. THERE’S A LOT OF RISE IN PCs OUT THERE. BRINGING THAT AI TECHNOLOGY INTO THE RISE DEVICES IS GOING TO

MAKE IT MUCH MORE ACCESSIBLE TO THE MARKET. >> YOU MENTIONED DESKTOP IS THE NEXT PHASE. YOU HAVE UNVEILED A DESKTOP PROCESSER HERE AT CES. IT FEELS LIKE THERE’S MORE OPPORTUNITY THERE, JUST GIVEN THE POWER, RIGHT, BEYOND THE PC. HOW ARE YOU THINKING ABOUT THAT

PIECE RIGHT NOW IN AMD. >> DESKTOP IS AN EXCITING MARKET. AT’S WHY WE MADE THE MOVE TO BRING OUT THE 8000 G PRODUCTS THAT HAVE THE RISE IN CAPABILITY. A LOT OF OUR CORE MARKET AND AMD AUDIENCE IS DESKTOP BASED. THEY LOVE THE DESKTOP DEVICE,

AND SO BRINGING THAT CAPABILITY IN THERE, IT’S A LOT OF THE SAME EXPERIENCES THAT YOU WOULD SEE THENETBOOK, CONTENT GENERATION, CHAT ASSISTANCE, CHAT BOTS, ET CETERA. HAVING THOSE SAME CAPABILITIES ON THE DESKTOP TRANSLATE VERY WELL AS THEY DO ON THE NOTEBOOK

SO IT’S A BIG MARKET THAT USES DESKTOP PCs TODAY SO WE WANTED TO BRING THE EXPERIENCES TO THEM AS WELL. >> AS YOU SIT HERE AND THINK ABOUT ALL THE POSSIBILITIES, WE’LL REALLY JUST IN THE BEGINNING PHASE IT FEELS LIKE OF

GENERATIVE AI, HOW SHOULD WE BE THINKING ABOUT WHERE AI IS HEADED? >> I THINK IT’S VERY EARLY, YOU KNOW, IN THE DEVELOPMENT OF AI PC. >> THE AI EXPERIENCE IN GENERAL, NOT JUST WITHIN PCs, NOT JUST WITHIN DESK TTOP, YOU’RE RIGHT

THE THICK OF IT. >> AMD IS UNIQUELY POSITIONED. WE’RE ONE OF THE FEW PLAYERS AT C REAY OFFER AI FROM THE CLOUD DOWN TO THE PC. THERE’S NOT MANY PLAYERS IN THE MARKET THAT CAN DO THAT, AND TO YOUR POINT, WE’RE VERY MUCH IN

THE THICK OF IT. THE ADOPTION CURVE OF THIS OR, YOU KNOW, HOW EXCITING THIS IS GOING TO BE IS REALLY DETERMINED BY THOSE EXPERIENCES AND THE DEVELOPMENTF THO MODELS. AS WE SAW IN 2023, THE MODELS GOT BETTER AND BETTER, YOU KNOW, FEWER HALLUCINATIONS, BETTER

ACCURACY, BETTER ACCURACY TO RESPONSE TO PROMPTS, AND SO WE’RE SEEING THAT EVOLVE WITH THAT MODEL DEVELOPMENT, AND AS PEOPLE RESEARCH THAT AND FD NEW WAYS TO GENERATE MODELS, WE’RE SEEING A LOT OF GROWTH THERE. THEY’RE LOOKING AT IT SAYING THIS IS MORE ACCURATE.

I CAN GET MORE OF THE RESPONSE I WANT FROM THE MODEL AND THAT’S HAPPENING IN REALTIME, AND ALSO PEOPLE ARE FINDING NEW WAYS, YOU KNOW, YOU LOOK AT THE MODELS THAT ARE OUT THERE. THEY’RE FINDING NEW WAYS TO PLUG IT INTO PRODUCTIVITY TASKS OR OTHER THINGS.

THE ADOPTION OF THOSE MODELS INTO CONTENT GENERATION OR GETTING RESPONSES OR HELP WITH THINGS, THAT’S GOING TO CONTINUE TO EVOLVE AS IT INTEGRATES INTO MORE APPLICATIONS THAT PEOPLE ARE FAMILIAR WITH. >> CERTAINLY POINTS TO THE BIG POTENTIAL FOR AMD. JASON, THANK YOU SO MUCH FOR

JOINING US. >> THANK YOU, AKIKO. >> THANKS TO OUR VERY OWN AKIKO FUJITA AND JASON BANTA, GENERAL MANAGER FOR CLIENT OEM. >>> COMEING UP WHAT ARE CEOs MOT WORRIED ABOUT NOW, DANA PETERSON FROM THE CONFERENCE BOARD JOINS ME NEXT WITH THE ANSWER. STAY WITH US.

>>> HOTTER THAN EXPECTED INFLATION DATA FOR DECEMBER THROWING COLD WATER ON MARKETS THAT ARE EAGERLY EXPECTING THE FED TO CUT RATES AS SOON AS MARCH. RERT WEN’TO CONVINCED NEWEST ABOUT INFLATION BEING TAMED AND NAMED IT ONE OF THEIR TOP CONCERNS ALONG WITH RECESSION.

ARE THEY RIGHT TO BE WORRIED? DANA PETERSON, THE CONFERENCE BOARD CHIEF ECONOMIST IS HERE. GOOD TO SEE YOU, DANA. AS WE LOOK AT WHAT WE SAW AND WHAT HAPPENED IN DECEMBER WITH CONSUMER PRICES COMING IN HIGHER THAN EXPECTED, PUT THAT INTO CONTEXT AND WHAT CEOs ARE

LOOKING AT THAT MADE THEM THINK THAT INFLATION WASN’T TAMED? >> SURE. WE DID SEE LOTS OF SLOWING IN INFLATION LAST YEAR, BUT THEN DECEMBER WE SAW AN UPTICK IN THE HEADLINES FOR THE CPI. THE GOOD NEWS IS THAT THE CORE IS SLOWING, BUT IT’S STILL WELL

ABOVE WHAT THE FED IS LOOKING FOR IN TERMS OF 2% INFLATION, ESPECIALLY FOR THE PCE DEPFLAY TOR. THAT SYNCS UP WITH CONCERN ABOUT RECESSION, ANDLEVAD INFLATION AND HIGHER COSTS OF DOING BUSINESS. I’M REALLY NOT SURPRISED THAT CEOs RANKED THOSE TWO ITEMS AS

BEING NUMBER ONE AND NUMBER TWO FOR THEIR CONCERNS FOR THE OUTLOOK OF 2024. >> SO LET’S BREAK SOME OF THIS DOWN. YOU HAVE THE EXTERNAL ISSUES THAT THEY IDENTIFIED, ECONOMI DOWNTURN, RECESSION, AND INFLATION AS WELL. BUT YOU ALSO HAVE SOME OF THE INTERNAL ONES.

I WANT TO FOCUS ON THOSE AS WELL. SOME THINGS ARE BEYOND SOME OF THESE COMPANIES CONTROL. WHAT ARE THEY SEEING INTERNALLY AS WELL THAT’S ADDING TO THE MIX. >> SURE, THE BIGGEST CONCERNS AMONG CEOs INTERNALLYAS ATTRACTING AND RETAINING TALENT. THAT ALSO DOESN’T SURPRISE ME.

WHEN WE LOOK AT THE U.S., YOU STILL ARE A NUMBER OF INDUSTRIES THAT ARE SUFFERING FROM LABOR SHORTAGES, AND CERTAINLY WE HAVE THE BABY BOOMER POPULATION SHRINKING AS THEY’RE RETIRING AND SOME OF THAT RETIRING GOT PULLED FORWARD DUE TO THE NDEM, SO MANY COMPANIES ARE

HAVING DIFFICULTY FINDING NOT ONLY MORE WORKERS BUT QUALIFIED WORKERS AND KEEPING THEM AT THE SAME TIME. >> AND THEN ANOTHER ELEMENT THEY WERE LOOKING AT WAS ACCELERATING THE PACE OF DIGITAL TRANSFORMATION, OF COURSE, WE HAVE TO TALK ABOUT AI. HOW ARE THEY VIEWING THAT AND

WHAT SORT OF INVESTMENTS, HOW ARE THEY PRIORITIZING IT RIGHT NOW? >> DIGITAL INNOVATION HAS BEEN ON THE TOP OF THE LIST FOR SEVERAL YEARS, AND CERTAINLY AI HAS REALLY COME TO THE TOP OF THE LIST, AND, IN FACT, WE DID ASK CEOsBOUT AI, AND THEY

SAID, YOU KNOW, WE’RE ACTUALLY REALLY EXCITED ABOUT IT, AND MOST OF THEM WERE EITHER ALREADY IMPLEMENTING IT INTO THEIR BUSINESS PLANS OR THINKING ABOUT IT. AND INDEED, THEY THINK THAT IT’S GOING TO BE VERY PRODUCTIVE, AND ALSO INCREASE THE BOTTOM LINE AS WELL AS RAISE PROFITS AND MAKE

EIR WORKERS MORE PRODUCTIVE. >> AND IT’S TOUGH BECAUSE WE SAW A LOT OF THE ENTHUSIASM IN AI, BUT THEN YOU HAVE A LOT OF WORKERS WONDERING WHAT DOES THAT MEAN IF MORE COMPANIES ARE GOING TO BE RELYING ON AI FOR PRODUCTIVITY. WE HAVE ALREADY SEEN SOME LAYOFF

ANNOUNCEMENTS, MOSTLY IN COMPANIES, ACTUALLY NOT JUST IN COMPANIES THAT RELY ON AI, LIKE DUO LINGO HAD THEIR LAYOFFS, BUT OTHER COMPANIES AS WELL. AS YOU LOOK AT THE LABOR MARKET, WHAT ARE THE EXPECTATIONS THAT CEOs HAVE THERE? >> FOR THE MOST PART, CEOs ARE

KIND OFIVID IN TERMS OF THE IMPACT ON THE LABOR MARKET. SOME OF THEM THINK THAT IT IS GOING TO CAUSE THEM TO HAVE TO LET PEOPLE GO. MANY THINK IT’S GOING TO ENHANCE THE PRODUCTIVITY OF THEIR WORKERS. SO THERE ARE DEFINITELY SOME RISKS AND CHALLENGES AROUND AI,

INDEED, IMPLEMENTATION, ETHICAL USE, REGULATION, ALL OF THOSE PI THEY DO BELIEVE THAT THEY’RE GOING TO NEED GREATER INVESTMENTS AND GREATER INTEGRATION AMONG THEIR WORKERS TO MAKE SURE THAT AI WORKS FOR THE COMPANY. >> AND AS WE SORT OF TAKE A

BIGGER VIEW HERE, AND LOOK AT THE GLOBAL PICTURE, WE’VE ALREADY SEEN GLOL ECONOMIC SLOWDOWN LAST YEAR, AND IT LOOKS LIKE YOU’RE EXPECTING GDP TO SLOW FURTHER TO 2.5% IN 2024, WHAT’S THE BASE CASE THERE? >> YES, A BIG CHUNK OF THAT IS

BECAUSE CHINESE GROWTH IS GOING TO SLOW BY ABOUT 1.1 PERCENTAGE POINTS FROM 5.2% LAST YEAR TO AROUND 4.1% THIS YEAR. AND THAT’S A FUNCTION OF AN AGEING DEMOGRAPHIC, VERY WEAK CONSUMER CONFIDENCE THAT’S LEADING TO LESS SPENDING, AND ONGOING CRISES REGARDING THE

ALSO WE THINK EUROPE IS GOING TO FLIRT IN AND OUT WITH RECESSION. CERTAINLY EUROPE AND GERMANY MAY DESCEND BACK INTO A RECESSION. WE’RE SEEING A VERY WEAK OUTLOOK FOR EUROPE AND CHINA. AND IN THE U.S., WE STILL DO HAVE A CALL FOR A SHORT AND SHALLOW RECESSION THAT’S GOING

TO PROBABLY DISSITE BHE END OF THIS YEAR, BUT THAT STILL CALLS FOR WEAKER GROWTH THIS YEAR RELATIVE TO LAST YEAR. >> AND OF COURSE KEEPING AN EYE ON GEOPOLITICS, NOT JUST UKRAINE AND RUSSIA, OBVIOUSLY ISRAEL YOU HAVE THE RED SEA, ISSUES WITH

THE HOUTHI REBELS AS WELL, AND BETWEEN THE U.S. AND CHINA. HOW DO YOU SEE THAT PLAYING OUT IN TERMS OF DISRUPTIONS AND HOW WE MIGHT SEE THAT IMPACT THE GLOBAL ECONOMY? >> SURE. WE’RE ALREADY SEEING THE DISRUPTIONS FROM THE WAR IN UKRAINE AND CERTAINLY THE ME

TA THE MIDDLE EAST HAS RESULTED IN SHIPMENTS BEING STOPPED AND ATTACKED IN THE RED SEA, AND THAT CERTAINLY IS A BIG NEGATIVE FOR TRADE BETWEEN EUROPE AND ASIA. WE COULD CONTINUE TO SEE THIS. THERE ARE ALSO MANY OTHER LOW PROBABILITY BUT HIGIMPACT

EVENTS THAT COULD COME TO THE DO WITH GEOPOLITICS.EM HAVING T- THE RELATIONSHIP BETWEEN THE EAST AND THE WEST, THE U.S. AND CHINA, ET CETERA. >> WE’LL CONTINUE TO WATCH THAT AS BOTH OF THEIR ECONOMIES, THE TWO BIGGEST IN THE WORLD, AND

ALSON THAT SORT OF HIGH-TECH STANDOFF WITH AI RIGHT IN THE MIDDLE OF IT AS WELL. THANK YOU FOR JOINING US, DANA PETERSON, THE CONFERENCE BOARD CHIEF ECONOMIST. THANK YOU SO MUCH. >> THANK YOU. >>> ALL RIGHT. ALL YOUR MARKETS ACTION UP NEXT. STAY TUNED.

YOU’RE WATCHING YAHOO! FINANCE. >>> A JOYOUS DAY FOR CRYPTO INVESTORS, SEVERAL EXCHANGE TRADED FUNDS TIED TO THEITCO STARTED TRADING IN THE U.S. TODAY AFTER THE S.E.C. APPROVED 11 OF THOSE ETFS. THE DISCUSSION HAS BEEN MAKING HEADLINES FOR A WHILE GIVEN GARY GENSLER’S CAUTIOUS APPROACH TO

CRYPTOCURRENCIES AND THE RISKS ASSOCIATED SAYING EVEN ASHE GULATOR APPROVED THE ETFS THAT INVESTOR SHOULD REMAIN CAUTIOUS ABOUT THE MYRIAD OF RISKS ASSOCIATED WITH BITCOIN AND PRODUCTS WHOSE VALUE IS TIED TO CRYPTO. JOINING US NOW IS SENATOR CYNTHIA LUMMIS OF WYOMING TO DISCUSS MORE.

GOOD TO SEE YOUAGAIN. THIS IS OBVIOUSLY A HISTORIC DAY HERE, AND SOMETHING THAT I KNOW THAT YOU HAVE BEEN AT THE FOREFRONT OF. YOU ARE A BITCOIN BULL. WHAT DOES THIS CLEAR UP NOW THAT WE HAVE THIS APPROVAL FROM THE S.E.C.? >> WELL, RACHELLE, I’M HAPPY TO

SEE THIS DAYOME BECSE IT ALLOWS PEOPLE WHO WANT EXPOSURE TO BITCOIN BUT ARE RELUCTANT TO SELF-CUSTODY, TO HAVE THAT EXPOSURE AS PART OF A DIVERSIFIED ASSET ALLOCATION. WHEN THE TRADITIONAL FINANCIAL SERVICES INDUSTRY HAS NOW ADOPTED AND RECOGNIZED THE LONG-TERM BENEFITS OF BITCOIN

SPECIFICALLY AS PART OF A DIVERSIFIED ASSET ALLOCATION, IT HELPS MAKE THE CAS FOR HAVING A ROBUST, REGULATORY FRAMEWORK FOR DIGITAL ASSETS SO THAT INVESTORS CAN BEGIN TO FURTHER DIVERSIFY THEIR INVESTMENTS AND INCORPORATE A LONG-TERM VALUE LIKE BITCOIN INTO THEIR INVESTMENT STRATEGIES.

>> SO SENATOR, IN TERMS OF CONVERSATIONS THAT YOU’RE HAVING ON THE HILL ABOUT HOW WELCOME THIS IS FOR SOME OF THE LAWMAKERS THERE, TALK ABOUT THOSE CONVERSATIONS AND WHAT THIS ALSO MEANS FOR YOUR LEGISLATION, YOUR LUMMIS/GILLIBRAND LEGISLATION TO FORMULATE THIS FRAMEWORK.

>> SENATOR GILLIBRAND AND I, AS YOU KNOW, HAVE THE COMPREHENSIVE PIECE OF LEGISLATION THAT COVERS THE DIGITAL ASSET INDUSTRY, AND APPLIES CONSUMER PROTECTIONS TO IT. AND SO IT CAN BECOME A ROBUST PART OF THE U.S. ECONOMY. WE ARE NOW BEHIND MANY COUNTRIES AROUND THE WORLD IN HAVING A

WELL UNDERSTOOD AND SURE REGULATORY FRAMEWORK, AND BECAUSE OF THAT, THE UNITED STATES RISKS HAVING THE CREDIBLE DIGITAL ASSET INDUSTRY MOVE TO OTHER COUNTRIES SO THEY CAN BEGIN FUNCTIONING IN A WELL UNDERSTOOD REGULATORY FRAMEWORK. THE FACT THAT A BITCOIN ETF, IN

FACT, I THINK ELEVEN OF THEM ARE NOW RECOGNIZED HELPS, I THINK, MAKE THE CASE FOR THE FACT THAT LUMMIS/GILLIBRAND IS A PIECE OF LEGISLATION THAIS RDY FOR PRIME TIME, THAT IT’S IMPORTANT THAT THIS INDUSTRY HAVE A WELL UNDERSTOOD REGULATORY FRAMEWORK

THAT LAYS ON TOP OF OUR TRADITIONAL REGULATORY FRAMEWORK IN ORDER TO ENJOY THE BENEFITS OF CONSUMER PROTECTION AND APPROPRIATE REGULATION. SO IT HELPS MAKE THE CASE FOR THE IMPORTANCE OF ADVANCING THE LUMMIS GILLIBRAND FINANCIAL INNOVATION ACT. >> AND JUST EVER SO QUICKLY, WE

HAVE ABOUT 30 SECONDS LEFT, BUT OBVIOUSLY THIS IS GOO NS FOR CRYPTO ENTHUSIASTS, BUT FOR PEOPLE WHO AT THIS POINT STILL CAN’T TELL THE DIFFERENCE BETWEEN BITCOIN, AN ALT COIN OR A STABLE COIN, THOSE CONSUMER PROTECTIONS, DO YOU FEEL AS IF

THERE’S ENOUGH PROTECTION AT THE MOMENT TO REALLY OFFSET SOME OF THE RISKS THAT THAT DISSENTING VOTE WE SAW FROM THE S.E.C. BROUGHT UP? >> I DON’T THINK THAT THERE IS ADEQUATE REGULATORY PROTECTIONS TO ASSURE CONSUMERS THAT HAVEN’T TAKEN A DEEP DIVE INTO DIGITAL ASSETS.

THEY NEED TO BE ASSURED THAT THE UNITED STATES IS NOT ONLY AWARE BUT PREPARED TO REGULATE IN THESE AREAS. WE NEED ADEQUATE STAFFING AT BOTH THE COMMODITY FUTURES TRADING COMMISSION FOR BITCOIN AND OTHER COMMODITY-LIKE DIGITAL ASSETS AND AT THE S.E.C. SO IT’S VERY IMPORTANT THAT WE

ADVANCE LEGISLATION MOVING FORWARD SO PEOPLE CAN BEGIN TO UNDERSTAND THE DIFFERENCES BETWEEN BITCOIN, OTHER DIGITAL ASSETS, STABLE COINS, AND INVOLVE THEMSELVES IN THIS NEW ECONOMIC OPPORTUNITY. >> CERTAINLY AT THE FOREFRONTS OF EVERYONE’S MINDS TODAY. WE APPRECIATE YOUR ME, NATO CYNT MUCH.

>> GREAT TO SEE YOU, RACHELLE. >> THAT DOES IT FOR NOW, I’M RACHELLE AKUFFO. STAY WITH US ON YAHOO! FINANCE.