Transcripts For CNBC The 20240704

The answer, unfortunately, is the very culprit caught in a u. S. China tugofwar right now. Details on what can boost chinas productivity and whether they could gain access to it september 1st is when drug Price Reductions are set to take effect and one of our guests says it will make the entire largecap pharma space vulnerable and it will hit five names first. We have those details ahead. If thats not enough, dom chu has a look at the market you and i have been up very early and we are still upright right now and kelly, if you look at the board behind me, youll see things havent change a lot from when we were on in squawk box this morning, but we have seen an acceleration in the Technology Trade well get whats driving that sentiment in a couple of minutes here and the dow industrials are just about flat on the session and thats pretty much unchanged. The s p 500 is up 18 points and onehalf of 1 and 18 points at the highs of the day we were up roughly 22 points there and down 11 at the lows of the session so tilting more toward the higher end of that range so far today. The nasdaq composite is the outperformer, up about. 75 the composite index is up 96 points to the upside and 13,741 and like i said, ill tell you, one of the reasons why thats outperforming so far today its a big week for retail earnings and a big couple of weeks if you want to look at it this way and a bulk of names will report this week including home depot, target, walmart, Tjx Companies and estee lauder that will give you an interesting spectrum over just about every part of the retail spending landscape home depot, target, walmart up about a 1 decline and tjx and estee lauder missed so far today and keep an eye on the catalysts for retail it will be a big week for them one of the reasons for the outperformance is because the single worstperforming stock in the s p 500 by a wide margin, viewers and listeners on sirius xm channel know its nvidia and the shares is are up this year earlier this morning we were up much weaker and were at session highs up 6 and it reports earnings, and this morning we have analysts saying at Morgan Stanley that this is their top pick going into that earningsdriven catalyst they think that the pullback that we saw which, by the way, was only 15 before the 5 gain makes it an attractive entry point. Kelly, this is interesting the momentum is on nvidias side and it trades at 47 times forward earnings and theres a big debate over whether that catalyst will be the one to buy. Its probably bad that my reaction is thats not that high as josh pointed out to me on the Halftime Report last week, its been overvalued for a while and people want to buy it. Undoing about a third of that decline in just todays move, dom, thank you very much the u. S. Dollar could be on the verge of a breakout. Its up 4 in the past month and trading above its 200day movin average and among the reason, chinas weakening currency it comes after fresh concerns over chinas property sector and banks. We do get a bunch of chinese data tomorrow, retail sales, Industrial Production and property figures here to discuss is tim seymour, the cio of Asset Management and cnbc contributor ill get right to the heart of the concerns in the premarket here before things stabilize what is going on with chinas proper sector shadow banks well, theres enormous bad debts out there and lot of help that the government will need to provide and the speculation and the reverberation of the speculation to chinas Broader Investor Market Capital flight its significant and other times when weve seen the Property Markets and either bad debts or the inability to really project where cash flows are coming for the folks who have stuff to repay. Its weighed heavily on the currency and as you pointed out, the yuan is off about 2 even in the last two weeks or so when the dollar has rallied significantly, and a lot of that i think has to do with the yuan, but the Property Market has been hanging over in thespecter of the Property Market collapse has been hanging over china for almost a decade. So im not going to tell you that we should be sanguine about these risks. I will say that china is going to and is certainly cognizant of the risk and the broader risk of the economy. I had the same reaction when it came back in the headlines. Is it 2018 didnt we kind of i guess the answer is it didnt go anywhere and this is what zombieification can look like. What a weird quirk and you know vastly more about this and i notice as the dollar is rallying, our long bond are selling off. Normally, i think to myself, Global Investors want u. S. Assets and thats basically treasurys. The yields would be headed down all across the board i guess this tells us in even trying to get their hands on dollars or dollar assets and its erring toward the short end and not the long end can you interpret that at all . My interpretation, i guess, is i dont know that theyre totally correlated i think the Dollar Strength here over the last three weeks and as you noted through the 200day and the last time the dollar traded upward through the 200day was back in june of 21 and a 28 move really where we peaked last october or not, but the last three weeks, if you think about the dynamics between some of this is china. Some of this is japan and some of this is a treasury refunding announcement some of this is central bank differential it is and what we learned in the last couple of weeks out of europe that those Central Banks arent as aggressive and i would also make the argument that the dollar was one of the short dollar, one of the most crowded excuse me, trades, short trades that weve seen against broader institutional investors, and i think that has something to do with it, too positioning was for the dollar to be weaker, specially before the fitch dynamics and remember back when s p downgraded the u. S. Aaa back in october excuse me, august 2011 it went on a major, major rally and there are different ingredients. Was it 2018 or 2019 when we went back above the 200 day . Actually in 2021 through the upside so im saying in june of 21, the dollar actually in may of 21 was kind of at a cycle low, and then this was really the beginning of the fed hiking cycle and i would make an argument that most of the dollar and the dixie price drivers are from central bank differentials. There was a long time, at least during that period when we knew our fed was on the back foot and needed to get front footed we didnt really hear from the fed until october and the currency markets i think sniffed this out back in may and it was june of 21 when it actually rallied through the 200 day to the upside and that was an auger of a very significant dollar run. Ill make an argument. Weve been in a dollar bull market for 15 years. Weve certainly been in one for 12 it doesnt end overnight, but i would still be on the side of dollar weakness over the next year, year and a half rather than the Dollar Strength. We were just showing the 2 hyundai and the sharp upward move and Dollar Strength is a headwind for corporate earnings, but it does defy the Dollar Collapse predictions that weve been hearing about time and again, specially after covid. Right Interest Rate differentials the last time around the fed was about to start tightening and lead the pack in talking that way and doing that, if im hearing you correctly. So what does that imply . Were talking about goldman and rate cuts next year and that kind of thing. So, Interest Rate differentials, i think, are going to continue to favor u. S. Investment and having said that, i think a lot of the move weve seen in the treasury market especially in the longer end over the last two weeks has been about the refunding schedule and the markets, i dont think are necessarily panicking around that dynamic and i do think that there are technical elements of why the u. S. Longer rates are moving higher and even though the projection that we could see fed funds in by 65 bits between now and a year the dynamics in japan are significant and the Central Bank Buying around the world toward treasurys are changing and thats where maybe the differentials and i realize small changes on a relative basis in japan, are significant terms in the Insurance Companies and some of the domestic buyers. I think japan has something to do with our higher rate it is, as well. I tried to correlate dollar and treasury markets and two of the biggest market and Asset Classes of the world i think isnt easy to tie them exactly together here fair enough, very quickly before you go, you mentioned japan and chinas currency, and the ruble collapsing and the argentinean peso is it just a coincidence, this timing no, this isnt a coincidence. The yuan pressure currencies is something to watch and unfortunately, for em investors, if you looked out about three, four weeks ago, frankly, i was very constructive. I remain constructive on em because the worst part of the fed and Interest Rates and inflation are behind us. I think some em currencies are going to suffer from Commodity Prices moving higher, but for the most part em currencies are going to suffer. If china is in a distress situation, which im want sure thats where we are. Em currencies will sell off and weve seen this time and time again. Japan in the region tends to be a beneficiary when you see this kind of weakness in the chinese currency the yen has been a puzzler because we have inflation or at least we have a world where the bank of japan does need to finally do something its very bullish for Japanese Equities and theyve often been a great edge when yields have been moving higher and Global Equity investors are seeing that and there are structural reasons in japan including buybacks and requirements on the tsc for Japanese Companies to play ball different than they did ten years ago and equities, fundamentally can still go higher especially if the currency remains under pressure tim, no one breaks it down like you do thank you so much for your time this afternoon thank you, kly. Tim seymour joining us. My next guest is boosting productivity in china to avoid the currency mess. It comes down to how quickly the nation can harness Artificial Intelligence the u. S. Has banned china from gaining from americas a. I. Chips which wont significantly slow china down as baidu, alibaba and tencent have been making development in their own chips. Lets welcome jeong chao welcome to the program. Thanks fior having me it seems obvious whatever the next innovation drives productivity and just connect the dots about why a. I. Is so important to china over the last 30 years, by the way, we are taking a very longview on this report in a. I. And over the 30 years china has reaped a lot of the dividends, i call population dividends, since the reform started and you saw the rice of thse of the economy rise of manufacturing and the increase of the chinese population, and now the chinese population is set to decline the population our socalled population dividends are running out and the only way out of this puzzle is really to increase productivity and china, historically, hasnt had a really big software of the industry and this a. I. Made easy may be the answer for Chinese Companies and for the chinese economy. It is a dilemma because unfortunately, the a. I. , i guess you could say could be used against american interests and thats certainly why theres been a crack ddown on access for the chips. How can they benefit the entire Global Economy and not give something too precious or valuable again, this is the expertise. I think the u. S. Administration has been doing it to slow china down, right . They ban the sales of the chips about the nasdaq 100 and Chinese Companies can get the second to the last which is h800. He was no china down we dont think that it would make him energy twaps and technology is very global and all of the entrepreneurs and scientists and engineers around the world are doing their best to make the next particular Tech Breakthrough we do not believe the band will have materiel damage to slow down chinese a. I. Development. My understanding is chinas good at developing some of these advanced chip, but theyre unstable, and so they can crash a lot and of months worth of work can be lost in the investments and theyre left to crack. Youre the China Technology analyst. For investors watching, which companies do you think are best positioned already in china to maybe crack this code, get it right and be the next nvidia stock . Well, the two companies that are leading the pack there there are dozens and dozens of companies in china making these foundational models just like in the early days of the advancement. Most of these guys probably wont make it, but the two leaders, alibaba and baidu are in my opinion, and they were the first ones that launched a model and see the top line to be approved and the chinese regulations are in this area and would soon befinalized later this week, in facts and we see the commercialization of approval will come short after that you see alibaba is the clear leader leader right now it is too early to declare the ultimate winner just yet. Those stocks are certainly up this year and that might certainly explain why. John, thanks so much for your time today we appreciate it jiong shao from barclays. If wti crude rides it will make the sixth week of gains and it rose 22 , as Global Demand continues to hit record level rs including china despite its struggles. My next guest is not an Energy Analyst and even he thinks this is the key trade for the Third Quarter and prices will keep going higher and leads bring in head of Technical Analysis welcome. If you talk to an energy bull there, but youre coming at this from a totally different perspective. Why does energy jump out at you here it does it speak to the rotational aspect a lot has been made of the unwind in the technology sector. I think that trade is still intact and it comes back and right now the key trade has been breakout in the energy sector. Its just finding what have been the laggards of the move to the upside energy is rather rangebound for much of 2023 and now just starting to break higher to the upside both in relative terms and theres some runway there. Exxon and chevron do not seem to be your top idea. Whats going with those stocks theyre the low volatility and high dividend paying stocks. Theres been a preference for more cyclical areas. Theyve risen and theyre actually underperforming versus xle and theyre more on the emp side and this isnt for exxon or chevron and theyre trying to find more juice for the stocks breaking in long term levels conceptually, its interesting to me that were bullish on the energy and production stocks while at the same time hearing that perm onproduction has peaked. I know youre still looking at the charts, but i dont know if we need to reinterpret what that means and even if product has peaked, oil prices will be supportive of higher stock prices its not i dont think a big structural, secular call on the overall oil. I think, which has found a fork and these stocks are finding a bit and after the underperformance the sector has phased from 2014 to 2020 and it was a big twoyear run there, and im sure the structural shift in the sector and i see similarities in the big moves in sectors Like Technology after the 2000 bubble and after the great in 08, as well you have a big run and then youre rangebound for a number of years and some of those stocks can work in the backdrop. Youre calling for a mini breakout within a range or do you think this could be a big one . I think this is a tradable call and it works through q3 season and there are individual components that work for the long term, as well if were looking at a structural shift, lets look at the stocks that have driven a shift they cleared the 2014 picks and conoco, is that the one youre referring to . Through some combination of folding less and acting as leadership on the way back up and thats where weve seen meaningful trend for the long term they have the sector year to date and theyre moving above the 2 hunday moving average the setup is there for those longterm multiyear breakouts that are starting to get going did you run into the xle more broadly or are you interested in the ones that have the more beta instead of the broad index looking at the xle, you can see a theme. Its a lot more on the emp side. Some of the Service Names can work for a short time, but if you pull back you run the risk where you have a long term trying to lower highs that can start getting going again. Ill just throw it to you because i cant lose the opportunity. Bannister, what do you think it hasnt run its course this seasonal correction. We argue the longterm positives outweigh the nearterm negatives and this is a seasonal correction that proves temporary and an opportunity to buy a bull psyche that we think is only in its inner innings can typically these corrections end in a way look, this is in the september months plenty of time to study the energy stocks. Ari wald with oppenheimer. Coming up, a major event is headed for the Health Care Space with the federal government three weeks away from negotiating directly with manufacturers over Prescription Drug prices. Well look at the names most at risk and why analysts are expected to deal with a flurry of deal making peter diamonds, and hes using technology to detect and suppress wildfires like the one in hawaii. As we head to break, lets get a quick check on the marks its greener for the s p and the russell sitting this one out and the 10year note hovering around 116. Were back after this. This is the exchange on cnbc guys, cmon mom, cmon mia [ engine revving ] my favorite color is. Because, its like a family thing [ engine revving ] made it mom leave running behind, behind. The new turbocharged volkswagen atlas. Does life beautifully. We moved out of the city so our little sophie could appreciate nature. But then he got us tmobile home internet. I was just trying to improve our signal, so some of the trees had to go. I mightve taken it a step too far. chainsaw revs tree crashes chainsaw continues daughter screams lets pretend for a second that you didnt let down your entire family. What would that reality look like . Well i guess i wouldve gotten us xfinity. And wed have a better view. Do you need mulch . What, we have a ton of mulch. Nice footwork. Man, youre lucky, watching live sportsl ton. Never used to be this easy. Now you can stream all your games like its nothing. Yes thats what im talking about. [ cheers ] running up and down that field looks tough. Its a pitch. Get way more into what youre into when you stream on the xfinity 10g network. September 1 is just a few week away when well know which ten drugs will face Medicare Drugs for the first time under the provision from the inflation reduction act. My next guest expects one group of drugs and companies to be impacted first youre looking at the names right now. As a result he expects deal making to heat up as Companies Face imminent price declines joining me now is mizuho jared holtz. Thank you for having me even eli lilly, theyre teflon, is on this list. Whats the class first and most at risk here so the first is going to be Medicare Part d drugs. These are drugs that are purchased at your, you know, your typical pharmacy and are taken at home. So its a very broad, wide list that were going to see and what the government is trying to figure out now is how they can truncate that list into call it the top ten. Those will be the most impacted over the nearterm, and i think as we move forward here theyre planning on adding an incremental ten to 20 drugs per year so its a conversation that well be having in perpetuity or at least for the next few years into the end of the decade do you know what the industry jargon is . What is the name what are they calleded these are part b and part d drugs are administered in a provider setting, in a Doctors Office or hospital that would be the other end of the spectrum and those drugs are going to be impacted in the 2028 timeframe. So its part d first, and then part b second two years later. So well have these conversations around what drugs are impacted in 2026 those are the part d and then part b in 2028, and again, these lists are going to evolve as the government adds more and more single drugs to their list as they try to curtail pricing. And eli lilly Ceo David Ricks did tell us it is already impacting rnd in terms of figuring out which drugs to invest in and bring in the years to come. I mentioned eli lillys ceo, why do you think bristol my sers most at risk from a revenue point of view . Bristol has a lot of exposure over the nearterm they have a blood thinner, eloquis and they acquired as part of the celgene deal they have drugs over the next couple of years that are impacted and for part d they have the big cancer treatment. So bristol may be one of the bigger, you know, kind of targets as we look at the Drug Companies on an individual basis over the next few years and clearly, their multiples that impacted the mosta arguably as they are trading less than half the s p multiple here. So i think investors are obviously very keyed in on how bristol navigates the next few years as they deal with several products that will be under scrutiny there are so many big picture questions and how much can this affect the prices consumers are paying and is this negotiations depending on the administration and maybe Court Lawsuits can turn this around i also want to make sure what you think can happen around nearterm which is the potential for deal making and who to whom and what would you be on the lookout for here for sure. I think we started to see some of it play out over the next couple of years. Pfizer has been an aggressive dealmaker since 2019 and 2020. Merck has done two fairly sizeable transactions, both north of 10 billion, one in 2021 and one earlier this year so were starting to see a flurry come in. There have been small transactions announced recently. Eli lilly, as you mentioned has been one and novartis is another one. Were seeing it manage around the drug pricing risk and a lot of that is adding commercial assets which will offset right aways soon as possible and others that are less impacted or less under the gun i would argue eli lilly will be one of them and theyre looking at pipeline assets that they dont need right away and help the longer term story. Eli lilly, of course, completing the acquisition of sigalon therapeutics and does it get a fill up here is this a traditional pharma to biotech acquisition story or is it more nuanced than that . I think so. The ftc has been very rigorous around their process for allowing largescale deals to go lieu and theyre seeing the equals that are maybe used to seeing a cup of decades, and c sloosh gen has not clozed and its the second biggest deal, has not really responded owl that well to a lot of m and a activity investors arent degree off of the entire sectoror and this is because the spector for drug control jared, thanks go now, jared holt from mizuho today. Still ahead it was once the biggest ipo in American History and it was the First Company to hit a billion dollars in size and more than a century later it is a takeover target with the more handles more than that. If you think you know, tweet me at cnbc. Well be back on the exchange. And manage your rental right from the app. So you can mix work. With leisure. Or leisure. With work. Giving you the control to find the perfect balance. Go national. Go like a pro. Businesses need 5g solutions today. Thats why they choose tmobile for business. Mlb partners with tmobile to not only enhance the fan experience, but to advance how the game is played. Aaa relies on tmobiles network to stay connected nationwide, so they can help get their members back on the road. And were helping pano ai innovate, to stop the spread of wildfires. Nows the time to see what americas largest 5g network can do for your business. This thing, its making me get an ice bath again. What do you mean . These straps are mindblowing they collect hundreds of data points like hrv and rem sleep, so you know all you need for recovery. And you are . Im an investor. In invesco qqq, a fund that gives me access to. Nasdaq 100 innovations like. Wearable training optimization tech. Uh, how long are you. Im done. Im okay. Welcome back lets get you a show tell where we show you the chart tell the story. That was the mystery chart we showed before the break. Shares spiking 33 after the Company Rejected a 7. 3 billion offer from rival cleveland clips. He told squawk on the street hes still confident in his offer. This will close and we are going to buy and well be able to have the deal and we are part of the u. S. And now we will have a champion and im among the top ten in the world Cleveland Cliffs is no strange tore big mergers having awared ak steel and the arsenal metal a couple of yees ago you can see the Stock Performance where for the past five years wnot much has happene and heres Cleveland Cliffs and the past 20 years they never recovered after this peak in 2008 and heres what they said about this confidence and execution and whether this Management Team can boost the stock. Take a listen. Instead of shrinking the workforce, we increased the size of the workforce by 1,700 employees and revenues went from 2 billion in 2019 to 23 billion in 2022. Pro forma will be 44 billion and we are happily the size, and i dont think we will be done at number ten, but being number ten in the world is a start. That said, meanwhile, rival nucor which pioneered the minimills in the behemoth has seen its shares rise 33 and its a their 14 billion market cap. If you take out todays deal and the cliffs share were lower on the year. Coming up, the may wildfire is now being regarded as the deadliest fire in more than a century. We will talk to one founder who will change and debate it. Thats next. Ah, these bills are crazy. She has no idea shes sitting on a goldmine. Well she doesnt know that if she owns a Life Insurance policy of 100,000 or more she can sell all or part of it to coventry for cash. Even a term policy. Even a term policy . Even a term policy find out if youre sitting on a goldmine. Call Coventry Direct today at the number on your screen, or visit coventrydirect. Com. Iw frech dip sandwiches. Featuring fresh Artisan Bread piled high with tender roast beef, smothered with melty provolone cheese, just enough Chipotle Mayo and served with hot au jus for dipping. Try the roast beef or pastrami french dips today. Only at togos. Featuring fresh Artisan Bread piled high with tender roast beef, smothered with melty provolone cheese, just enough Chipotle Mayo and served with hot au jus for dipping. Try the roast beef or pastrami french dips today. Only at togos. Welcome back to the exchange, everybody im Tyler Matheson with your cnbc news update Goldman Sachs said the Federal Reserve will lower Interest Rates by next june it comes after a key data last week showed u. S. Inflation rose less than expected the director of the federal Emergency Management agency shared with msnbc what the agency is doing to help maui after the devastating wildfires out there. The agency has been moving commodities like food, water, protective masks and shelter supplies into the island more than 250 staffers also on the ground there with around 50, helping survivors in shelters, register for aid after losing their homes. Economic damages from the maui wildfire expected to hit at least 8 to 10 billion and that was close to the tourism spending collected statewide in the First Six Months of this year accuweather estimate looks at the staggering loss of life, 57 of mauis gdp in 2021 came from tourism. Kelly, back to you tyler, thank you and well see you soon Tyler Matheson hawaii officials were warned about wildfire risks in maui about a decade ago and failed to meet recommendations according to the wall street journal. Weve been fighting wildfires and its not working and we need to reinvent how we detect the increasingly deadly blazes his foundation has l11 million to help. Peter diamandis. Good to be here registration is open until october 2031 and you have 33 countries and do any of the entrants youve seen so far offer the kind of solutions that can prevent Something Like the hawaii wildfire from happening in the future. I think so. So as the X Prize Foundation what we do is we put up a very large cash purse its 11 million it should be much larger given the billions of dollars going into loss of property and the lives lost, and we say to, you know, teams, entrepreneurs around the world, i dont care how you do this as long as you can do it safely can you detect a wildfire at the moment of ignition, right . Whens the best time to put it out . Not when its a con flig raising, when you see it can you detect it autonomously and put it out autonomously within ten minutes thats the goal, and we have lots of different approaches here the beautiful thing is we get hundreds of different ideas. Theyre all being tested and the one that works the best is the been that gets the cash and we all get the benefits of that wow you almost think the Insurance Industry itself should fund some of this. I look at your founders pg e, utility, betty and Gordon Moore Foundation and lockheed. A lot of nonprofits let me ask you this. We spoke with Patrick Brown from the breakthrough institute, he said something that caught my attention and it goes to the heart of what you guys are trying to do he said one of the reasons wildfires are becoming deadlier is were not letting them burn and theres more vegetation and tinder that makes these fires spread quickly and firth maybe it depends on the area and the situation, what have you, but that was the first time id heard that maybe reporting them out too quickly. You have to realize that this xprize is not a solution for everything Forest Management is fundamental. How you light the proper fires, but destructive wildfires are in the middle of a community should not be there and one of the challenges is if you live in an area thats had a wildfire you cant get insurance anymore. What i hope will happen from the xpraise competition is well have a new industry. So if imagine if you can hire the winners of the xprize competition to come and give your resorts or your vineyard coverage, right . Where because you have this automation system, right here ates the challenge Fire Insurance pays you after youre dead. This is about protecting the wildfire from happening in the first place. No. Absolutely theres one more topic i want to ask you about, but just finally on this. Go ahead, what were you going to say . One of the goals here is like you said, if youre a team and if youre a entrepreneur out there that has an idea, go to xprize. Org and register as a team if you want to end this, were opening up the first prize weve opened up where the public contributed to the price if youre sick and tired of this, and i know here in california, myself and Family Member go to xprize. Org wildfire and contribute 10 or 100 to the prize first it goes always to the teams so if you want to invent viez this being solved, lets get to 20 billion. Its a drop in the bucket. Wed love to see once you have the entrants and go through it wed love to see what the solutions are and we will talk more about this, by the way, in just a moment. While you are here, peter there was one major news event last week they really wanted to ask you about because it surprises me it does and it doesnt, heres my point San Francisco, the epicenter of regulation and whatever we want to call it. Technology. And technology. Is deregulating, of all things, autonomous taxis, and im curious if you think this is too fast, if its i know we have to experiment, and im all for it, but is San Francisco the right place . Is this technology really ready for prime time so, you know, weve seen this before, kelly. If you look back 100 years ago around the year 1900 we went from an allhorse and horse and buggy world to cars coming online, and one of the analogies thats interesting is in around 1900, if you start listening to the newspapers back then there was this this massive environmental disaster which is horse manure there were 100,000 horses, for example, generating 2. 5 Million Pounds of manure in new york city alone every day and it was literally piling up. It was the cars coming in displacing the horses finally over the course of the next 25 years that relieved us of that problem. So, the same technology were talking about where we were talking about before, a. I. With the explosion of a. I. Will ultimately make Autonomous Cars safer than humans and much more efficient than humans. All right so its the early days. Weve got to experiment. I think the upside is far greater than the down side i certainly agree in the long run. It just i cant help, but noting that california sets a regulatory standard in the country is the first place where well let this massive experiment take place. Peter, for now, unless you want to offer a quick final thought listen, i know there are a lot of challenges in the world i want to incentivize people, we can solve them its the most extraordinary time ever in human history, rather than complain about problems, lets go out and solve them. Join us at xprize. Org. Thank you so much. Build it build it peter diamandis. Still ahead, well talk about picking up the pieces after a major wildfire the steps homeowners can take to cor their financial lives. Thats next here on the exchange. upbeat music constant contacts advanced automation lets you send the right message at the right time, every time. constant contact. Helping the small stand tall. Welcome back the Economic Loss from the fires in maui can total as much as 10 billion, and as homeowners try to pick up the pieces, there are several crucial steps to take to recover financially. Lets bring in cnbc Senior Finance correspondent, sharon epier sorn as this starts to affect people every year many victims dont know where to turn for help and ensuring your loved ones are safe and being taken care of is most important. The next step is to reach out to your home or Renters Insurance Company to start the claim process as soon as possible. Also, contact your auto insurer and if you own a Small Business, your Business Property insurance company. You want to file a fema claim, too. You can reach out to the agency on the app or go online to disasterassistance. Gov and the faster you file the claim the better because that will expedite obtaining and getting coverage for temporary housing, experts say. Also make sure to keep all hotel and meal receipts and if youre concerned that you live in an area thats prone to wildfires and be extra cautious. Insurance experts say its a good idea to review your homeowners policy every year to make sure youre aware of coverage and know your deductible and you want adequate savings to cover that amount and make a list of every item in your home and pretend your house is flipped upside down and list everything that falls out. Keep your insurance policies offsite standard Homeowners Policies generally cover fire and smoke damage, but its always a good idea to see exactly what the policy covers and take the time to do that and pull it out and look at it even though youre nowhere near an area prone to wildfires. Just video everything and say out loud, and its easy for all of us overwhelmed by the prospect insurance, what it does and doesnt cover the cost of it i keep hearing people in florida talk about that and in their case its more flood and wind. Do you think there would ever come a time when a wildfire is more excluded or certain parts of the country are becoming much more expensive and thats changing the decisionses of what people can afford and where they live. There are some areas in california, for instance that have special fire coverage in addition to the homeowners insurance, so i think that is something that people want t Pay Attention to, and i dont know if theyll ever be excluded and as one Insurance Expert says this is epic on so many levels and well have to see what insurers decide to do. Even the wildfire smoke over this part of the country, could it happen here sharon, thank you very much sharon epperson. The Governors Office is encouraging people to go to fema and the businesses sharon mentioned for help ron desantis just sat down with our own Brian Sullivan he didnt hold back, either, on disney, china, powell, biden and so much more you can see the whole interview on last call sft first snippets will be played here after the break. After the break. Brian sullivan joins us next. josh allen another amazing plan, backing away from here very slowly. fan 1 that was josh allen. fan 2 mmhm. vo for a limited time get nfl sunday ticket from youtubetv on us. A 449 value. Plus, get a free Samsung Galaxy z flip5. Only on verizon. The biggest ideas inspire new ones. 30 years ago, state street created an etf that inspired the world to invest differently. It still does. What can you do with spy . My cpa told me i wouldnt qualify for the erc tax refund, so i called innovation refunds. Their team of independent tax attorneys will work with your cpa to determi if your company is eligible. [whip sound] take the first step to see if your Small Business qualifies. Nice footwork. Take the first step to see if man, youre lucky, watching live sports never used to be this easy. Now you can stream all your games like its nothing. Yes thats what im talking about. [ cheers ] running up and down that field looks tough. Its a pitch. Get way more into what youre into when you stream on the xfinity 10g network. Welcome back to republican president ial hopeful ron desantis is fighting to win over potential voters as he trailed former President Trump in the polls and finished an interview on last call with Brian Sullivan. Brian joins us from tallahassee, florida with their preview. What did you learn . Forget what i learned its very hot in tallahassee, so going this way, and at times would talk 30 minutes, no holds barred. Economy, interest, taxes, death, deficit, all think that ceos care about. Of course as you know, the full interview will be on last call 7 00 tonight and i wanted to share a few things that i think for kelly evans could we talked about that, the Federal Reserve, Interest Rates, and i just sat with him. Would you look to renominate feta cheese powell . I dont think hes done a good job. From covid on, they put too much money on the economy. But then they said it was going to be transitory, that we had to unlearn. No, when you start doing Something Like that, its about 18 to 20 months, you will see inflation. You will be behind the ball. They hiked so much, that its causing problems in economy and could drive a recession. Trend is not a fan of the fed chief or janet yellen, who he referenced earlier in the interview as well. I know, kelly, we do a lot, your show, my show whenever we talk about congress and stock trade. While the president does not have the ability to ban congress on trading stocks come only congress can ban congress from trading stocks, they would have to make a new law, i asked him if you thought or would work with congress to try to stop a practice that ticks a lot of people off, people in Congress Trading stocks often before critical legislation is passed. I was a congressman for three terms. I sold all my stock before i went in because i used to do daytrading, not that i had a lot of money, but i would do it. If i traded something, someone would then say maybe some vote was there, and i did not want the appearance of impropriety, a new look at how these people are making windfall. Maybe its all on the level, but i think the average citizen looks at that and says, these guys play by their own set of rules, so i get rid of that, i eliminate congressional pensions for members of Congress Today have a 401 k . Dating need both, then i would impose term limits on members of congress. Reporter he made some strong comments about the size the federal workforce what he would do if elected to try to bring down debt and deficit. These couple things, with the full interview tonight at 7 00. He was a day trader. That, i find quite reporter youre not the only one. When he said that , i was like, you are what . I think he meant on the side of being in congress, not like in some plaza with a Computer Trading stocks. Either way, he would try to seek to ban it. Brian, what do you think is at stake . He is trailing in the polls, but we will see him at the debate, where we doubt the former president will show up you Tyler Mathisen the debate is next wednesday , not in two days, but nine days time, so its upon us. I think a lot is at stake. He just got back from iowa. Reporter hes got a huge margin according to the National Polls , and some of the state polls look different could we did not go into a lot of politics but we leave that to other channels and outlets. We focus mostly on Interest Rates, debt , his economic plan, a lot about china. Also, by the way, why he views them as cold an adversary but knows we also have to work with them, is a pretty wideranging 30 minute interview. He was fired up. I was highly fired up. Its hard not to be fired up when its 103 degrees. We can save disney for later on. Well save that for viewers so they know theres more coming. Brian, thanks so much. Our Brian Sullivan, down in tallahassee. You can catch the full interview with the governor, governor ron desantis, on last call 7 00 p. M. Eastern on cnbc. That does it for the exchange. Elon musk, calling to Mark Zuckerberg about moving on from the fight. This was earlier this hour. Musca saying, knock knock, challenged expect exct, peed open the door, and tagging Mark Zuckerberg. Could be Wishful Thinking at this point. Dont go anywhere. Ll prescrip . Reduces inflammation . Thank the gods. Dont thank them too soon. Kick pain in the aspercreme. Your record label is taking off. But so is your sound engineer. You need to hire. I need indeed. Indeed you do. Indeed instant match instantly delivers quality candidates matching your job description. Visit indeed. Com hire this thing, its making me get an ice bath again. What do you mean . These straps are mindblowing they collect hundreds of data points like hrv and rem sleep, so you know all you need for recovery. And you are . Im an investor. In invesco qqq, a fund that gives me access to. Nasdaq 100 innovations like. Wearable training optimization tech. Uh, how long are you. Im done. Im okay. My cpa told me i wouldnt qualify for the erc tax refund, so i called innovation refunds. Their team of independent tax attorneys will work with your cpa to determine if your company is eligible. [whip sound] take the first step to see if your Small Business qualifies. The first time you made a sale online with godaddy was also the first time you heard of a town named dinosaur, colorado. We just got an order from dinosaur, colorado. Start an easy to build, powerful website for free with a partner that always puts you first. Start for free at godaddy. Com welcome to. Im Tyler Mathisen. Chinas real estate sector, selling off big time following a warning kid how bad could the ripple effects turned out to be, not just in china, but perhaps across the pacific and globally. Someone once said theres no such thing as bad publicity that person was not talking about David Sullivan after a series of unflattering articles. How much longer can he hold onto his job . Lets get a check on the market that the dow remains down 21 points, while the s p and nasdaq, nasdaq three quarters of a percent after two straight down weeks,