Ready for the listing later this week. First horizon ceo, brian jordan, with the pulse check on regional banks post prices and the state of lending as rates continue to rise. Off the opening highs, pretty good breath and among the dow, 30 components. We brace ourselves for a busy week with earnings from giants like adobe, microdata cpi incorporate events and southside conferences. The European Central bank meeting and we have an armed ipo and whats interesting, and we heard from our friend about he says the relationship is so important but we are seeing higher yields today and stocks are rising despite that. Usually they are scared off y that and maybe it has to do with the bank of japan. Overnight, some comments there about scrapping their yield curve control but is a relationship we are going to watch heading into an important inflation week. Breaking that link would be key. We are getting breaking news. We will go to steve. Hey, steve. Hey, carl, thanks. Dodging a bullet here for the moment but the new york fed surveyed consumers dictations finds that oneyear Inflation Expectation rising attentive a point to threepoint 6 and, in fact, well behaved and the part that the fed really likes, which is that threeyear expectation number into play in a percent down a tent in the five year and up a tent at a 3 . We will get back to that in just a second. My me tell you some of the other headlines here. Rising 0. 3 threepoint 1 . The highest weve had since july 2022 and backing up this idea that the ousing market has bottomed here. Price expectations gross for commodities, gas, food, of course, but on the serverside, medical care, tuition and rent up pretty solidly. Job loss concerns were also up the highest level since april 2021. I want to show you this relationship between gas prices and inflation. At least the oneyear Inflation Expectations, they run together pretty solidly. When gas prices go up, peoples Inflation Expectations rise, but look at the end there. The blue and the red lines are a part for now. A lot of the run up in gas prices and oil prices have but at the end of the month. We will see if there is catch up. Its something to watch your. When of the concerns of the fed is the Inflation Expectations and its been embedded in there and that chart shows that we are a percentage point higher than we were before the pandemic and i know the fed will not 13 to have percent and threepoint 6 inflation to become embedded. Im going to look at the fed probabilities here for november, which are pretty much unchanged. Still a 41 for november. 7 for september. Carl, back to you. State, row quick. Your thoughts on the journals and the key example the nature debate. I think, for sure, that is what has been happening and i think the fed does not want a hike more in the idea being the risk being more balanced but they will hike and this number is part of that debate, carl. The idea of having Inflation Expectations embedded, perhaps, three to have percent but if you look at the three your number, it is going the right way and that is going to determine, probably, we are they end up. The ultimate question, i think, is what happens to that Service Number and we will watch that carefully on wednesday but then you have that other journal three saying, people are still traveling like its going out of style. Is there about that. Shes very hip to the travel business and personally, i think, as well. Shes been on the road a bit. I think when that keeps going in those components of the Service Sector keep pushing, its going to be hard to get that really that the fed is looking for. I can confirm. Full flights all around. Out of the country. Anywhere. Domestically, mainly. Steve, thats a great point. We will talk soon. What could this all mean for the fed and what would another hike mean for financials . The original atf close out a negative week and joining us this morning as tom, the ceo. Amara, carl. What do you think we can we have a little acceleration an activity and still keep inflation in check . My sense is that this is going to be a longerterm thing that needs to grind its way out and that, believer that the fed is done and we wont get a november bump in that we will see a slowing economy over the next 6 to 12 months and that we dont have a fed thats thinking about easing until the second half of next year. Second half and that would just be because inflation has continued to moderate . It seems like, yes. We will continue to get to moderate and we can get a lot of progress, even if inflation stays near 3 and then the fed will have a chance to pivot then i think about its dual mandate and not its singular mandate. You are not worried that inflation is going to linger and be sticky . My stats dash stick year, i think it will be bouncy but i think that overall trend is still declining. I think that 5 Interest Rates are going to have a fight on the economy and we will find out that the economy is a little slower than people think and that is my expectation. 5 to 5 1 4, that is real and we are going to start to see more things that havent happened in a wild happen. Likely negative job prints . Credit and the one standout as employment and unemployment, which how good the Unemployment Rate has been, but if the economy slows and that starts to move, that can have an impact in the economy and something we are doing, we have never done before, is we are working off the hangover of covid stimulus and that may be a little sticky in and of itself. Thats exactly what we just heard from chris, ceo of the core who was just on online impact. There is financial tightening happening, even if the fed does not continue to raise Interest Rates. Real rates are higher. There qt, they are tightening and trimming the Balance Sheet and are you surprised that has a had more of a negative impact . Im glad it hasnt but i think that higher rates will have an impact on the economy overall. Look. Already a lot of bad news is in the bank stocks. This is a hard day coming in here and going through the moments of silence. It is an important day though. Yes. For a lot of people including yourself. Correct. As you know, my firm lost 67 employees on 9 11 and we are the 88 and 94 on the World Trade Center and what i have learned, the 9 11 story continues to unfold and it is not over yet. We said we were never going to forget and we said we were going to rebuild our firm and never forget the families. Those things we are doing and we are also learning what never forget me. In addition to always trying to remember those who lost their lives and their families and, by the way, what their families have done is remarkable. The strengthen the resiliency of those families gives us energy to keep moving forward and i still see it today but let me tell you Something Else that we are working on, which is, im a board member of 9 11 day, which is an organization that kbw is a founding sponsor of. We didnt want 9 11 to be too paragraphs in the history book. About a quarter of America Today is not old enough to remember 9 11 and the reason why my firm is still here and why the economy is where it is is because of the tremendous amount of resilience and goodwill and unity that existed in our country, so what this organization did, we convinced congress and president obama to sign a law that says that 9 11 is the national day of remembrance and service, so our organization and 18 cities in America Today, with 23,000 volunteers, is going to pack 6 1 2 million meals for those who are food insecure. Also, we are providing our website, which is 9 11. Dat. Org and it gives everyone in america a chance to catalog a good deed or service. If you just walk nextdoor and speak to an elderly person and say hello to them, it could be anything. We would love to have you catalog it. We think today will be the biggest a of volunteerism in the country. Our goal is to be in 25 cities. Our model is, weve got Corporate America and we got in the nfl and we got major league baseball. My parent company, steve full financial and what we do is, the intrepid where im going to be this afternoon, it will be two days of this mill packing. The last couple years the commissioner of baseball has been there. Today in philadelphia will be in lincoln field where the eagles play. Today we are in st. Louis with the st. Louis blues and enterprise arena where companies are sending volunteer employees to pack these meals and its a way of doing something and not focusing on the bad but focusing on the good and that is the story that we would like 9 11 to be remembered as. The website warmer time. Www. 911aday. Org and you can go there to catalog your day of good deed or show other ways of supporting or walk into your bosss office and asked them to be a sponsor next year. That is the best move. That is the best move. Yes. Tom, great work. Thank you for coming in. Thank you. We have breaking news on charter and disney. David faber back with us following all morning. Last hour, we told you that over an hour and the two sides were near a transaction that would return disneys networks to charter video subscribers. We cannot tell you that a deal has been reached. We dont have a press release as of yet but my understanding, based on a number of conversations is that, we have reached that deal that, again, over an hour ago we told you was near. All of the stocks in question were rising in our initial report and what we can do and sort of ascertain, based on people familiar with the situation is, is that disney will get a marketplace increase. That has been what it was thinking from charter but charter has said, hey, we want our subscribers to get access to disney and espn at a reduced rate or as part of the package. They didnt do that but my understanding is, it will include the ability for charter subscribers to get disney at a reduced price. A discount. A wholesale price. Whatever you may want to call it. It is a win. A resource in these channels, including espn 2 charter video subscribers, ahead of tonights big monday night football game. You know, eryn rogers was not a part of the dealmaking here, but he certainly seemed to loom large and we pointed out many times, what distinguished this particular site was the fact that charter seemed very much willing to allow it to go on without access to dinges knee. Espn, netflix and on from there. Because the video business doesnt make a lot of money and it felt like there was a diminution of overall quality it was paying more and more for for linear cable content and therefore, he was entitled. Subscribers were entitled to actually get direct consumer offerings that it felt that it was helping to subsidize with those increased subsidies. In import a moment here, there, in terms of these two sites reaching an agreement. When we do see the press release, we will get specifics on the actual deal terms. Perhaps. My guess is, they will both pose as a win on both sides and the market is trading at that white. The stocks are off the initial highs. The rumors that the deal was near. We dont report rumors. You, especially. Thank you. Charter said this carriage fetus agreement and you are saying the reflects that too with the addition of disney . Two the inclusion of disney , it is some reduced offering rate or discount and it would be a significant moment here for the relationship between the providers of content and the servitors of content. That said, many people may have already, though sport fans out there, with charter service, spectrum service, may have been looked at a virtual npd. Whether it be a youtube tv, the largest out there, or hulu. It is owned by disney. 66 hulu live or so well. Spectrum had said to its subscribers, here is a link if you need to watch the game. The one that selling off today. Everybody else is up. Communication services. David, thank you. When we come back, we have a real live interview with the ceo of barclays. The set of financial markets, the outlook for the economy, the job cuts at the bank. We are going to cover it all. Benchmark founder, bill gurley, is with us and wwie ll talk with him and get ready for their debut as talk on the street continues after this. G to address operations issues . We can help with that. Can we provide health care virtually anywhere . We can help with that, too. Is it possible to survey foot traffic across all of our locations . Yeah absolutely. With the advanced connectivity and intelligence of global secure networking from comcast business. Its not just possible. Its happening. With gold bond. You can age on your own terms. Retinol overnight means. The smoothing benefits of retinol. Are now for your whole body. Plus, fastworking crepe corrector diminishes wrinkled skin in just two days. Gold bond. Champion your skin. Welcome back. Barclays is holding its annual Conference Today with a number of eggs already making headlines at the event and we are joined by the host, c. S. Venkatakrishnan at the sixers appear great to have you on the show. Welcome. Thank you very much, sarah. Im glad to be here. A lot of big bang at speakers at the Conference Today. We know that you have some updates that you will share with us here on cnbc and our audience as it relates to your strategy. What can you tell us . I would like to begin with a very interesting and important update about our u. S. Cards business, is that today we are announcing the launch of a credit card with a partnership with mastercard and microsoft. An xbox card for gamers and what this is, is a card that allows tens of millions of gamers all over the world, beginning with the several million insiders and xbox, to use their spending and points accrued from their spending to purchase items on the xbox infrastructure. That is a wonderful, Wonderful Partnership with microsoft and mastercard and it allows us to reach a different audience from the one, which we have, which is travelers and hospitality and brings us to a different part of our economy. Its an interesting idea. Yeah. We are very hopeful about the success. Thank you for sharing it here first. I dont think of you, necessarily, barclays, as a big player in credit cards. Am i wrong . How big is t and how big of a growth driver . So we are very important players and a special part of that market. We are the fifthlargest Partnership Card issuer in the United States and we have 20 corporate clients, very blue chip names. American airlines, jetblue and xbox now. We have 20 billion underlined customers and many billions of dollars in assets and what we do is, we work with these customers and corporations to help them increase engagement with their own customers and so with an important service, which we provide in the credit card industry. What are you seeing in that business now that you do have millions of customers . Are there any signs of stress or delinquency rising . We have been covering this. No, in fact, what youre seeing there is what you see with the economy, which is a progression towards a soft landing. Spending continues to be robust in the United States. Partly because employment is robust and faith and delinquency trends are normalizing as the covid stimulus has worn off but it is very much in line with what is a healing economy with a very low rate of unemployment and good Consumer Spending growth. You buy into the soft landing story and the u. S. Economy it sounds like . Yes, i think we are near the end of the effects of the monetary transmission that has been taking place by the fed in the last year and a half and so we are seeing the economy achieve, as i said, that soft landing. Financials are relatively stable and underlying Economic Trends are continue to heal. What about the rest of the globe . Particularly the uk where you have a big Retail Business because there looks like the economy is weakening more and inflation is still persistently high. Yes, that is right. The uk is some months behind the United States in this respect. Dave had a greater effect from Rising Energy prices that has fallen off in the last number of months but also, it is a mortgage market, which is much more shortterm. Here we got 15 and 30 year mortgages. In the uk, the average mortgage is around three years fixed and as Mortgage Rates have reset, you have had a greater impact on Consumer Spending and Consumer Finances in the uk. What that has done, is have an effect of slowing down growth as discretionary expenditure has been crimped just a bit by the demands of paying your mortgage empire and Higher Energy prices. No, no. Finish. We are expecting the effects of that place her in that the uk itself will stabilize a little bit behind the United States. I was going to ask how much do you think that it might be having an impact on some of the troubles there . Inflation, investment. Its interesting that they are not going public there this week. Well i think that they have had an impact on the uk economy. On the one hand, it is giving the United Kingdom voters as they sought a greater say in their own future and on the other hand, it led to a supply shock and labor as people at the uk and now they are replacing it with immigration from other parts of the world and that is contributing to the healing process in the uk and as the uk seeks its own pattern out, i think they will continue to focus on the strength of their economy and the strength of their industry and i think what you see is an example of uks strength and chip design and in science. Theyve got equal strength in the Life Sciences and we are a big part of that economy and a big part of helping those company succeed. Yes, taught me some of the strategy around the Investment Bank here in the United States. I know you have been trying to reenergize this business and restructure it a bit but there continues to be reports of top bankers leaving and going to your competitors. Whats happening . Yes. We are the sixth largest Investment Bank in the world. We are the largest Investment Bank. The success of our Investment Bank can be seen right behind me in our Global Financial conference. It is the premier financials conference in the industry. We have over 200 clients speaking. We have 1500 analyst and visitors attending these conferences. The banks that are speaking to investors are all telling me that their slots are overbooked. Its the sign of success for Investment Bank. We have changed the leadership of our bank. We are oriented it to the future the sector the part of the economy of the future and how that will grow. Inevitably, when you do these things, there are some departures. It is normal and weve hired a bunch of new people and as this generate just changes, i hope you expect to see us renew the way in which barclays is a player in Investment Banking. Not just here in the United States, but globally and in the important sectors of the world. Life sciences, technology and sustainability. Is it going to take more job cuts around the normal attrition . Well, all of us in the Financial Sector are looking at our expenses. We look at trying to have the best and most efficient work we can and we always continually modulate and modify that workforce. What you see at barclays is no different from what you see anywhere else. The stock cut has underperformed so far this year and it has underperformed competitors like j. P. Morgan. You are there for the year they are up. Why do you think it is . What do you intend to do about it . Oh i think our Stock Performance is obviously a matter on which i spend a fairly great amount of time thinking about. Its important that we continue to show to our investors and im speaking here tomorrow, that we continue to be extremely profitable. Without quarter after quarter of profitability that we emphasize shareholder return that we have underlying businesses that are robust and we will continue to not just have these businesses produce strong returns, but focus on those businesses that are higher valued by shareholders and convince them that individual businesses in the portfolio of businesses are very robust through good and bad times and economic cycles and will continue to generate earnings for the company and returns for shareholders. Thats our job. Do you see the green shoots and Capital Markets that weve heard from goldman recently, Morgan Stanley, ipos, is that something you are saying as well . Lets say im smelling the green shoes and i hope that i get the green shoes the next few months. That something, at least. Thank you for your time today. Really appreciate it. Thank you, sarahs. A look at the conference. Ceo of barclays at his financial conference. We are with the ceo of First Horizon it sucks having cut on half on the year and all of the concerns aboutht e regionals equities holding on to our relatively solid open. The dow is up 50 points. sfx people cheering sfx Stock Exchange bell ringing sfx people celebrating sfx people celebrating sfx Stock Exchange bell ringing sirens [due at target in 5 ] copy that. Make a hard left down the alley. Networks got you covered. [please confirm requesting backup. ] changing route. Go. Roadblock ahead. Back up, back up. Reverse reverse next level moments, were 30 seconds out. Need the next level network. [north corridor, hurry ] coming through or 3, lets go. The network more businesses choose. Transplant received. At t business. Welcome back. Here is your cnbc update. The death toll from the powerful 618 magnitude earthquake in morocco is nearing 2500 people. International search teams are joining in the desperate search for survivors as people who lost their homes are setting up tent camps as emergency shelter. The moroccan military is dropping supplies to isolated areas from helicopters and set up a makeshift hospital near the epicenter of the earthquake. The american man who fell ill 3500 feet underground while on a mission in the turkish cave is expected to be rescued within hours. Rescuers say that mark is being transported on a stretcher and is just 600 feet below the surface now. He has been receiving medical care on his journey out of the cave. The American Red Cross warns the National Blood supply has dropped almost 25 since august. The organization blames the critically low supply on low donor turnout as a result of the busy Summer Travel season and backtoschool activities. The red cross is, it also faced challenges in collecting blood because of the impact of hurricane. Squawk on the street will be right back. The instacart roadshow is underway reports of an evaluation of less than 10 billion is a big drop for prior funding rounds and thats the focus today. It is a massive down round from that 39 billion that it was valued at just a few years ago. It wont come as a surprise for the already Public Tech Companies who have seen their market caps crater over the last few years but for still private startups, this should be a major wakeup call in some of the largest unicorns like , they have taken their medicine and done rounds and mark themselves down eternally and others like time, go puff, discord, plat, they will have not and they will have to take a hard look. He questioned when any Company Goes Public is, what is it and how do you value it . Is instacart a grocery gig advertising Ecommerce Company or some accommodation of the above. The evaluation range gives us clues. Investors will get a discount to its closest comp. A 9. 3 billiondollar market cap for instacart implies that is about 2 1 2 times the last 12 months of revenue and that compares and a half times for door dash and three times for an uber and instacart may be more profitable than ball thanks to the advertising business but it is also growing its topline significantly slower. Sterile, nearly 40 growth last year and is tech put instacart multiple well ahead of players in Mature Industries like grocery and advertising agencies. That is instacart and we know the gig space has not been particularly kind to long investors over the years, so candidates will also be watching arm. They are raising their price range on strong demand. Flavio looks like another down round here. Its pricing its ipo below 9 billion and that compares to about 9 1 2 billion dollars and in july 2022 funding round and in july, 2022, some air had come out of evaluations in the private market as well but this shows you that there may be room for private companies to mark themselves down. Interesting too. This upgrade of dash today, they go to 90 on the idea that its helping the street realize that maybe its underestimating the profitability of the model. Thats right. Remember. Dash and huber are moving into the advertising space. This is a highermargin business and maybe, you know, i go back to when an uber went public and we had never had a gig company and it trades around that 45 range of 48 now but 45 is where went public and it didnt meet those expectations i dont think anyone saw it advertising as a big business and what instacart shows you is that it can be. Its highmargin. It can change those Unit Economics but that ever present question, is this a good business. You are still using a lot of capital to pay shoppers in the case of instacart and door dash and huber as they move into groceries and drivers. We will see if advertising changes that game. Great discussion. Lets continue that with Julia Boorstin at the allin summit in los angeles with a very special guest. Hey, thats right. Im joined by bill, legendary investor a benchmark for many years. Use it on nine boards and have great perspective on what the which is talking about. Not only were you instrumental in hubers early days but you still own huber shares and we were just talking about huber and instacart. What is your perspective on the instacart ipo . First thing i would say, when i read the s1, i was very positively blown away by the profitability and how quick they got there. Keep in mind, we came out of a time in the industry where growth was the model and everyone was told to run and everybody has the gas pedal fully to the floor and making that cultural transition to profitability is very hard. There is another element of the instacart situations that i dont think people are alking about. Their stock base, fraction of the other companies in the space and tech companies. They are running a very high and very dilutive to shareholders now love to see more discussion about that. I think it really asks a very important question about how much stock actually needs to be given away to make this Company Successful . What would you advocate for Going Forward . One think ive been told im not an expert on how they run their comp committee, the executives have made a decision between cash and stock and a lot of them have taken cash and i personally think that management is a lot more thoughtful about cash expenditures and i think they think about this spc as if it is free, almost, but i dont think that shareholders think that way. What about the evaluation question . You have been warning that the tech bubble is a bubble for about a decade now and the question about what the future evaluations are going to be intact. The evaluation of instacart has come way down. What your perspective . I live through three different but was immersed in this industry. It tends to go up slowly and then it tends to crash immediately and this is the third time ive seen evaluations crash and is not something that the company did. Im not defending instacart in this case. Anyone of those companies that were on the list. It just happened. There was a massive, multiple attraction across the industry and the companies have to navigate it. They cannot wish for the evaluation they once had because it is not related to how they are operating. The industry has been completely repriced. This is a healthy reset. I think so, for sure but its very difficult because these private companies capitalization charts have stacks and stacks of liquidation preference and when you have that acute of a correction, its very hard to make that transition and thats what of the reasons why the ipo market has been slow to get going because people have to come to terms with all of these things that i think you are going to see them move through and its very healthy that instacart and their team have stepped up and want to take this step. What is your forecast for the ipo market . Most before you sit on our private companies. How quickly will we see think . It will be slow because these evaluation disparities that they just talked about is a real issue and it takes a while for people to come around. They have been told, you are worth this and you are with this and all of us and they are worth a that and it just takes time for people to get in touch with that to decide what they are going to do and as i mentioned, sometimes there is cap chart complexity that makes it very ard to move to the next step and to raise the next round and all of that takes time but weve had some time now and it is happening and the doors opening and i think it is positive. So much money has been pouring into these ai startups and ai evaluations remain incredibly high. What is your perspective on which types of ai companies and anyone in particular, are best positioned to succeed right now . Right now, yes, what you said is absolutely true. Its like we had this wild party and there was this massive correction and the party ended, except this one group of people kept partying, which is the ai company in the rams that are being done in ai are reminiscent of three or four years ago and there is a lot to be excited about and i partially understand what is happening but it also puts a lot of risks. Companies that are prerevenue raising 300 million in history hasnt been really kind to that type of speculation and model and i think there is going to be a lot of lessons learned. The area that has been the most rewarding, obviously, has been the hardware. The people that are working on these foundational models are spitting tons of money and you see it in the video and you guys talk about it all the time. We have a Company Called cerebral ask. They have built an entire day should they have used an entire way for 21 single Semi Conductor and all of those gpu courts can talk to each other on the backplane of the Semi Conductor, which is very differentiated. It really is a troubled type of market right now in the battle on the foundational models is injury. What we are hearing the founders we work with, is that the opensource product has the most momentum. More innovation in the works. It is super threatening to the leaders and when thing i have never seen before in a market, those leaders and those companies have raised billions and they are out trying to talk to governments and trying to scare them into potentially trying to handcuff the open source product, which is crazy. Ive never seen that. It will be fascinated to see how this turns out and we look forward to learning more about what metais working on. Bill, thank you for joining us and sharing your perspective. All right. Thank you. Back over to you. Adam jones upgrades tesla yi i now a buy and more of that call after the break. Every day, businesses everywhere are asking is it possible . With comcast business. It is. Is it possible to use predictive monitoring to address operations issues . We can help with that. Can we provide health care virtually anywhere . We can help with that, too. Is it possible to survey foot traffic across all of our locations . Yeah absolutely. With the advanced connectivity and intelligence of global secure networking from comcast business. Its not just possible. Its happening. A teslas a beginner today as Morgan Stanley comes off the sidelines and upgrades the name to overweight. Phil is with us. Ai, the key reason for the move. It is. Sarah, it basically comes down to this. You believe that has a will be the first automaker to truly use ai in the next generation of chips in order to deliver Autonomous Vehicles because right now, they are not autonomous at tesla, regardless of what elon musk says and as you take a look of shares at tesla, keep in mind that this call is a substantial one. Adam raising them to overweight in changing the price target from 250 400 and here is the summation in terms of why he believes tesla, potentially, could be in for a long, long run higher. We believe that dojo, that is the supercomputer that tesla has built and is working on, can add up to 500 billion to teslas enterprise value expressed through a faster Adoption Rate in mobility. That is the rubble taxi. s office is a big potential within the Auto Industry not just for tesla but all automakers. Nobody has tapped into it yet. Tesla has 400,000 vehicles that have full Self Driving Technology and they have that technology with the supercomputer as they continue to refine it and use the next generation of chips that tesla is developing. According to adam jonas, they could substantially have lower costs and that is the reason why he says, if you were looking for somebody who could really take advantage of ai and the next generation of chips, take a look at tesla. By the way, we are showing you tesla. Keep in mind that tesla uses nvidia chips right now but the idea being that as tesla develops its own chips on the road, it will have lower costs and could get to the end game and the Auto Industry. Thats a two year period the teslas up 100 . Anybody cant catch up to him on that chart, even tesla. Thank you, phil. First horizon ceo brian jordan with us next. His look on the consumer growth and back here in two minutes as the dow gains evaporate nine points now. We were up triple digits about an hour ago. I may be known for my legendary football career, but truth is, i love a bunch of sports. The only trouble is knowing where to find them. Thats why i got xfinity. So, i can easily find and watch whatever sport im into all in one place without missing a thing. Even if its football, australian football, or football football. In a word its fitzcredible. I got to trademark that one. This season, eligible xfinity rewards members can get up to 100 off nfl sunday ticket from youtube. Sign up for xfinity rewards now. Hearing a lot from vegas today. We had barclays ceo take on Investment Banking and lets get the regional perspective. First horizon, set to present today at the barclays at depos Client Sentiment and more now that were six months removed from that collapse of the Silicon Valley bank. With us First Horizon ceo brian jordan. Good to have you on. Dont think weve heard from you much since the failed takeover by td, that was four months ago. How has it resonated internally . How has morale been . Well, its been an interesting period. Weve been working very hard doing what weve done for the last 109 years. Were clearly disappointed for shareholders and as shareholders, but our Consumer Sentiment and a social sentiment has been very, very good, and we have continued to do as ive said what we have done for 159 years, to strengthen our communities and the places we do business by serving our customers well. How do you pivot from there . Where are you focused strategically on growth and whats been a challenging environment overall for regional banks . It has been an it interesting environment for regional banks and the economy is seemingly slowing down a bit. We are focused on investing in our systems and technology. We have a little bit of remedial work to do that got delayed in the process of the merger, but were focused on getting that work done. Our loan pipelines, our customer activity continues to be very, very good. We saw very Strong Deposit growth in the second quarter. We came out of the cancellation of the merger with a very Strong Deposit campaign. We opened up 32,000 new to Bank Relationships by 25,000, 26,000 on the consumer side and another 6 on the commercial side. Weve seen very good customer activity in that regard. Loan demand has slowed a bit, but overall were focused on doing business. Would you say the experience makes you any more gunshy on the m a outlook Going Forward . Theres people who allergen the environment is ripening for consolidation . Its an unfortunate outcome, as i mentioned earlier, for shareholders clearly. It was a process that took 14 1 2 months, and that is a long period of time. I think we need greater clarity over the long term about bank m a, the process from announcement to actual consummation of mergers. Either an up or down yes or no is fine. Lets do it quicker than 14 1 2 months. In this environment, i think m a is going to be relatively slow. As youve seen with the really the crisis with a few banks, Balance Sheet marks have been a critical part of whether m a can get done or not. We think this is a great opportunity for us to rebuild and build on that momentum we have in our organization. Have you tightened lending standards and if so by how much and which areas . We have not tightened lending standards very much at all. Were seeing customers actually tight be. Loan demand has dropped, and as you can imagine, sara, the number of deals that pencil out with rising rates and whats going on in the economy, dont work as well for borrowers and so that has a selfmitigating or controlling effect. We have made very few tweaks to our lending policy. We try to provide a stable lending platform for our customers through the ups and downs of the economy. We would like to think of it as a longterm partnership. Weve not made a significant amount of change. It is in effect happening in the marketplace. Loan spreads, loan pricing have gone up. At the end of the day its been pretty stable. So you said you saw the economy weakening a little bit. Is it your view were going into recession . If so when . What types of activity and behavior are you seeing from your clients . Right. Im still in the camp we have a real high likelihood of a soft landing. I dont see that were in for a very hard landing at this point. There are a couple things that could impact that, of course. Return to debt payments on student lending, things that are going on in the labor markets in particular, strikes and things of that nature could affect the consumer and the economy. At this point the economy is still relatively strong and positive. It has softened a little bit. The consumer has more deposit balances today than they had in the prepandemic days of 19, and at the end of the day continues to spend. Im optimistic for a fairly soft or modest downturn. All right. We heard that from key, heard it from barclays. Three for three. Brian jordan, thank you very much. Appreciate you joining us from First Horizon. Thank you. Still to come this morning, new data shows the u. S. Consumer wants to travel overseas in particular. Well get into some of the names that might benefitheoswh quk the street comes back. Uld you stop calling each other rock stars . Youre a rock star. You are a rock star. No more calling coworkers rock stars. Look, its great that you use workday to transform your business. But it still doesnt make you a rock star. So unless you work with an actual rock star. Hi, im ozwald. Hello ozwald. Pam, you are a rock i wasnt going to say it. Somebody would ask her something and she would just walk right past them. She didnt know they were talking to her. I just could not hear. I was hesitant to get the hearing aids because of my short hair. But nobody even sees them. Our nearly invisible hearing aids are just one reason weve been the brand leader for over 75 years. When i finally could hear for the first time, i could hear everything. Try miracleear hearing aids with no commitment during our limited time sounds of autumn event. Call 1800miracle now. New data shows record demand for international travel. Seema moody has more on with which Companies Might be the beneficiaries. Thats right. A Record Number of u. S. Customers are planning to go on a trip overseas in the next six months. Its contributing to higher inflation in the nonhousing Services Sector incentivizing the fed to keep rates higher for longer and the market less convinced that travel demand will remain strong. The latest occupancy data from str showing average number of people checking into a hotel across the nation has fallen in the last four weeks interest 68 to 62 . Theres credit card spending data from citi revealing americans are starting to pull back, one of the catalysts weve seen in broader travel stocks. More travel outside the u. S. Would be good news for booking holdings of all at names in the travel university huniverse has the highest International Exposure and that stock has outperformed in recent months. Thank you. Seema moody. My takeaway after hearing from a few of the big bank ceos, regionals across the country like keycorp and Investment Banks as well like barclays the idea of a soft landing, its being debated again. Inside the fed, in the marketsal , in the economy. Can we get away with this tightening cycle without having a spike in unemployment or stress in the labor market . Those bank ceos are saying yes. Theyre not seeing the full recessionary type behavior. We didnt mention the goldman note this morning looking at lower income consumers potentially out performing as they look at comps and the lowest income zip codes in this country. It sort of flies in the face of the entire narrative. Job growth and still have wages rising a bit. Leslie picker in for the judge. Welcome to the halftime report. Im leslie picker in for scott wapner. Front and center the next move for the market as we gear up for a critical week ahead. Our Investment Committee is helping us to navigate it. Stephanie link, anastasia amoroso, and jim lebenthal. A check on the market at noon eastern. Dow trying to hold on to gains currently up 17 points. The nasdaq Holding Steady up about half a percent today as yields also Holding Steady, the 10year around