Treasury secretary yellen is not ruling out the possibility of new tariffs on china. Janet yellen wraps up her visit. Its beneficial and desirable and it needs to be on the level Playing Field. And in the number of ways we feel its not. Jamie dimons warnings for investors. Higher rates, and the profound implications of a. I. We begin with news vonding a major supplier to nvidia. The white house announcing 6. 6 billion for the companys arizona plants. Under the commitment, tsmc is committed to adding a third complex. Jim, were talking some 20,000 construction jobs, theres money in here for workforce training. This is a big one, its the ones that we really need. I dont know, well have to talk about how much they really feed. We dont have enough engineers to build these. David, you know that this is the most tenuous, well talk with sara about it, the most tenuous situation we have, which is we could lose access to this if china moves on taiwan. We could. Thats a big threat. Certainly important component of our concern if that were to occur. And supply chain. Weve said so many times when it comes to highend chips, tsmc is the de facto place to go. I heard your comments about intel on friday. Well ask her about intel. The comments that i made were really existential. As for tsmc and the 6. 6 billion, its going to require an enormous investment from that company. It may not still be the forefront of the Technology Yes tashgss true. At that point but the fact is right now this is pretty good. I mean, nvidia could use it. Right, right. Carl, one of the problems we have over and over again, why did we go to taiwan . Because we didnt have the engineers and it was too expensive to build and we didnt have a sense that maybe the u. S. Would be left adrift. It was much more private capital and a company we need to go boundary. It made sense. If this country werent located within the zone of what china thinks is theirs we wouldnt be doing this. If this were in mexico, which is another cheap labor force important to point out that taiwan gave plenty of subsidies as well throughout the years. Plenty of state support there for that company. Always. We wish that it werent in taiwan. I understand that. When we see sara with secretary yellen and we talk about level Playing Field, its important to note they were offered great support. Maybe we should go to sara. Maybe we should go to sara and ask. We can. But i just thats also just ask sara about ipas. Why it became such a powerful force in chipmaking. They stepped up. They sure did. They had a core level of engineers that we dont have. Its very difficult to get an engineering degree in this country. Really . Yes. Id like to see the numbers on that. My wife is on the board of bucknell. You know how many universities in our country. The key dividers with every other country in the world. The best Education System by f far. An engineering degree, not a b. A. I understand china graduates more engineers than we do. They also have a lot more people. We do import a lot of our engineers expertise. The ceos of google and microsoft can attest to that. Asked the people like we want to do the number. Whats the work permit number were giving in. I have no idea. Thats the key to inflation. Cpi this week. You can repeat what i say. Total eclipse of the sun. I like to repeat that. Go to know have scotia and what it. They mentioned the treasury secretary in china wrapping up six days, or sara eisen spoke with her exclusively and joins us live from beijing this morning. Hey, sara. Hi, carl. Good to see you all. She met with the mayor of beijing, she met with students at university. Subsidies, this issue was certainly front and center in her criticism she did a little bit of a diplomatic dance between strengthening communication around the economy and also criticizing chinas heavy manufacturing subsidies for these Industries Like they did with steel a few days ago. So, i asked her in this interview whats next f they dont do anything are we going to put tariffs, more tariffs on these products. Heres what she said. We need to keep everything on the table, want to work the chinese to see if we can find a solution. Were engaging in a fouryear review of section 301 tariffs thats not complete so i cant really speak to what will come of it. I wouldnt rule anything out. But i think we need to deal with this this issue. Reporter what she wants to see them is redirecting their money instead of subsidies toward solar panels and into the consumption. Lets talk about evs, because ive been here for a few days and ive seen a lot of evs, about a third of cars sold in china are evs. When you do to the mallses you see all these fancy beautiful showrooms of electric vehicles. Also, you had these auto manufacturers who are teaming up with the Tech Companies here and releasing new cars. I even got in in one of these showrooms. Theres a new car, a selfdriving car, so the guy at the showroom told the car open the door, i got in, theres driver there although its selfdriving, theyre beautiful cars and theyre attracting a lot of attention, theyre situated inside these malls all basically western brands. Then chinese evs, which i think is a big part of the story, weve been telling this story for a long time but the focus for treasury, guys, is on the exports which have gone up 1500 in the last three years, chinese ev exports. And that is the concern thats going to put pressure on prices and kill our Auto Industry and thats why yellen is sounding the alarm. We talked about the increase in quality of these automobiles significantly, its interesting you mentioned full selfdriving, but when i hear the treasury secretary talk about a level Playing Field, so difficult, how do you define what that is, what represents a level Playing Field, how do you deal with the subsidies that have come for so long from the Chinese Government or for Stateowned Enterprises and on from there or so many other things that impact it, can they ever really get to an equal definition, i guess. Reporter well, i think what shes talking about here when shes criticizing the subsidies and the level Playing Field is that being more of consumptionled economy and not a supplydriven economy, where in order to stimulate their manufacturing in a weak economy which their economy is weak by historical standards right now theyre putting all this money into manufacturing and now theyre manufacturing their surplus is now at 2 or so of world gdp, higher than any other country so instead of shifting all that money into there putting it into the consumer economy and refocusing their macoeconomic policy. Thats how she was defining the level Playing Field. So we can stimulate competition in places like evs and solar panels. Because right now, its harder to do with china flooding these markets europe in particular it makes the u. S. Hard to compete. We heard elon musk talk abit and now the treasure secretariry is talking about it. Sara, i watched the interview, fantastic and riveting, i think i think treasury secretary made a point of distinguishing europe and us, i wanted to know whether you got into the idea of the mexico trojan horse, you can make the volvo in u. S. With just enough u. S. Content and it wouldnt be subject to tariff. Did she address that at all . She didnt specifically address the fact they can build factories in mexico and then ship them over and avoid the high tariffs. Should chinese evs be allowed to be sold in u. S. Market. She said theyre allowed to be sold in the u. S. Market. Yes, we have tariffs on them, but she said were open to having chinese imports in the u. S. Market. Including evs. I think the problem that they have just the fact theyre producing so much of the evs and the solar panels on a global stage its much more supply than meets demand and thats the problem she has. Jim, in that instance and other instances she was very open towards trade. She didnt criticize europes and chinas close trade ties. Should tim cook of apple be reducing his manufacturing footprint in china she said, no, were not here to discourage investment, the closer economic ties, were here to encourage that in a fair way where it doesnt interfere with National Security or it doesnt interfere with the unfair trade practices. She was pronotion of still investing. But, look, if they want to do trade with us they want to start with blackwell, they want jensen, they want nvidia, did she say anything about we own chips and were not playing with them because we think theyre cheaters . Reporter over the course of the weekend, no question about it, the chips were in focus, right, and some of more on the chinese side, right, of retaliation when it comes to limiting u. S. Chips and what can be sold in the u. S. , for instance on micron, but i think its a good example of some of the pushback actually, jim that weve been monitoring here on the ground and in social media and in the newspapers and the commentary is on this whole overcapacity issue and trade practices, they say its just an attempt for the u. S. A chance to limit competition and limit chinas growth of dominant industries. To squash things like tiktok in the United States. Or other electric vehicles, so its an interesting on the ground to hear the different sides of the story and really try to understand the chinese side because the readout from the Chinese State run media is completely different. Great look, sara, especially about what kind of local press coverage the secretary is getting. Sara eisen in beijing when we come back, jamie dimons message. Got some airnews on airlines. Lot of reaction to tesla and other calls. When we return. The all new godaddy airo helps you get your Business Online in minutes with the power of ai. With a perfect name, a great logo, and a beautiful website. Just start with a domain, a few clicks, and youre in business. Make now the future at godaddy. Com airo her uncles unhappy. Im sensing an andunderlying issue. Ss. Its tmobile. It started when we tried to get him under a new plan. But they they unexpectedly unraveled their price lock guarantee. Which has made him, a bit. Unruly. You called yourself the uncarrier. You sing about price lock on those commercials. the price lock, the price lock. so, if you could change the price, change the name its not a lock, i know a lock. So how can we undo the damage . We could all unsubscribe and switch to xfinity. Their connection is unreal. And we could all unexperience this whole session. Okay, thats uncalled for. Markets coming off the worst week. The fed might scale back plans for Interest Rate cuts. You got jamie dimon with his latest laterer letter to shareholders. He cites inflation, recordhigh deficit spending. Hes a little bit more negative. What i see here is that he basically says we could be in for budget deficits. David, when he said 8 , he used to say 6 . But hes very concerned about the long term and how much rates are going to go higher. Yeah. The market side, not the fed. Understood. Hes been cautious for quite some time. We can remember you want them to be ready for particularly tough times if that happens. I was more taken in some ways about his comments on a. I. As much as his continued belief that we could see a spike in rates at some point. Talking about a. I. , we dont know the full effect, but were completely convinced the consequences will be extraordinary, possibly transfor transformational as inventions such as the printing press, the steamengine. Their use of a. I. At jpmorgan could augment every job as well as impact their workforce. David, you would be very interested in the comments about these agencies that make decisions when it comes to proxy fights and how he doesnt like them, he said they may not be as relevant. A criticism for a very long period of time. Judging what you saw last week, i assessed and you came out in favor. Maybe it shouldnt matter. It didnt have a large impact. Jamie dimon, which i cant remember him having done took sides as well in the proxy fight. Took sides of bob iger. What do you make of 8 rates . I just dont think so. I think they would be selfregulating. The economy would get hurt really badly. Carl, one thing when you listen to whats coming out of congress youre not hearing anything thats reassuring about the deficit. Kind of not on the radar screen. Congress is back to work. Well see what kind of ukraine funding johnson may put on the floor maybe in return of lng it did kill major products, if youre going to do lng, do a gigantic facility, well, you got to start now for 2030, he killed projects right now, i dont know if he knew that, carl. I dont know if they knew the sense theivety to this. Unlike semiconductors it may not be as knowledgeable about right. Well talk some energy. Oil is lower today. As netanyahu does pull some troops out of gaza, well talk about the weekend. Well get cramers mad dash countdown to the opening bell. We kick offer a big week between the inflation data and earnings and a lot more, dont go anywhere. Also ahead the commerce secretary on the billions in chips that are being granted to taiwanem sis. In a moment. The road to opportunity. Is often the road overlooked. At enterprise mobility, we guide companies to unique solutions, from our team of mobility experts. Because we believe the more ways we all have to move forward the further we all go. Take a look at some s p gainers micron at top. Nvidia to 1200. Well talk autbo that and get the opening bell in just a few minutes. This is remington. Hes a member of the family, for sure. We always fed them kibble it just seemed like the thing to do. But. He was getting picky we heard about the farmers dog. And it was a complete transformation. His coat was so soft, he had amazing energy. He was a completely different dog. Its a nobrainer that remi should have the most nutritious and Delicious Food possible. Im investing in my dogs health and happiness. All right, lets get to it. Mad dash to start this week. I have not been all that optimistic about googles prospects versus microsoft. But, i think this is important. Tomorrow, thomas will give his keynote at the cloudnext conference in vegas, this is the google cloudnext conference and is going to show off that googles not being left behind. I believe its going to move the stock market. Its recovered from those existential concerns. Opening bell here. Big board. Its done, unilever celebrating 20 years of real beauty campaign. Come friday, jim, well be talking about the banks a lot. Weve got earnings season. We have a lot of positives. Analysts keep rising numbers. They do better in a longer, higher situation, so keep in mind that banks are better than you think at this stage of the psych zbll speaking of wells, chris harvey over at wells today ups its yearend target. Systemic risk is on the rise he says jim. I actually found great encouragement with mike wilson today, mike did a pretty good piece i think about how we can still buy largecap stocks, and david, i think hes come around to the bright side of things to some degree. All right. Thats good. I like wilson. He was alone in the wilderness. You always want to see a guy have more flexibility, all i wanted was more flexibility from the beginning. Youre really kind of hostage to money to fund flows. You can be very right long on the stocks. Hes very right. More top down than bottom up. Yeah, talk to jamie dimon, he would sell stocks. Mike wilson, okay, those are really bad worries, he drew the conclusion that you should know caterpillar. Okay, look, this is my view, anything can happen, but you need my negativity colors my thinking. Versus denny, he was kind of the fundamentals dont look good but it doesnt mean the economy wont go higher. Investors are worried about missing comps, lulu, nike, ulta, but it gets an upgrade. Ulta. Im reaching out to e. L. F. , because e. L. F. Has been thebest about trying to figure out where people are buying data. I turn to you, david, for completely no reason whatsoever, ulta is under assault from sephora. I dont know whether youve been to a kohls or an ulta. Ive been to a kohls. They play up se. Hora. If you to to target they play up elf. You have other places to go as opposed to ulta. The deal they made with kohls was genius, otherwise david, we wouldnt go to kohls. Because we go for se. Hora. No for the kolls cash. Your point is that elf is the beneficiary here. No, ulta is being hurt because sephora made this deal with kohls. Right now, im wearing a plastic belt for 13, i happened to get two belts for 26. My belt was more expensive than davids outfit. Look at this. This thing is just its made by dupont. Oh, no. My battery pack. But look at this thing. Look at this. That is some fine vinyl. You can use it with floor panels, for a belt. This is whats going on in america. When you to to kohls youre buying incredibly cheap price david, i have to tell you in all my years i never thought it would come to this. No cows were killed. I think that very nice. Carl . On the challenge, a challenge looking for segue i would go to goldman thats probably right. B. J. s probably doesnt have anything nearly as bad as this belt. The other belt i threw away immediately. B. J. s being kicked by costco, but also by walmart. We havent talked about walmart later but that split helped it. Chipotle feels like it should do a split. Nvidia and you talk about the need for a split there. I sktd him about a split. Sometimes, people dont listen to what the person asked. One of the things that the great cfo of chipo 2tle made, it gre for employees. They dont want a fractional share. No pushback from any large institution. None. Guys, im going to move on to tesla quickly because its mover this morning, up some 3. 6 this after friday when there were a lot of questions about the lower end car that theyre supposed to be introducing, musk came out later, yes, we still are, lower price point and then also came out and said were going to have full selfdrive zmrg at 5 00 because he couldnt take the stock being down. He was looking at the stock. Perhaps im wrong in that assumption of not looking at the stock. The stock is rebounding from recent lows, carl, not seen in quite some time. 162. 50 was the year to date closing low. I mean, the analysts clearly have no clue whats going on. None. Bernstein today thinks this announcement on 8 8 may be more apresen apresentational. I mean, look, congress is about jurisdictions. An Autonomous Vehicle for the airport the Phoenix Airport to the super bowl, and you are to get out, they dont allow it everywhere, if you think theres anxiety theres jurisdictional anxiety. Ill drop you off and get a real uber. So, uber and looifrt w