Outlining plans to diversify away from china. A monday merger on tap and possible 4 billion vanilla cream filled deal. And instacart ready to kickoff the ipo, but appearing to be far from the hey day of 2020. It is monday, september 11th, 2023. You are watching Worldwide Exchange here on cnbc. Good morning. Well welcome to the show. Im dominic chu in for Frank Holland. Lets kickoff the show with green on the screen with the nasdaq and s p coming off 1 losses last week, but for the time being, the dow is higher by 75 points. S p is higher by 18 and the nasdaq higher by 21 points. For the transportation stocks, they are coming off a nearly 4 loss last week. That index worst since early march. Checking on the bond market. Yields are on the move. You see just a little bit of higher motion. Lower prices and higher yields for the 10year treasury at 4. 2 t 8 . 2year treasury is 4. 98 . The 30year treasury is 4. 36 . In energy, oil is in focus with cpi coming out this week. Energy prices are off for wti crude at 86. 92. That is off. 20 . Ice brent crude futures above the 90 mark. Down. 30 . All of this as investors brace for a busy week with the number of key events in focus. Including earnings from adobe and oracle. A Product Launch from apple tomorrow and then a possible refreshed iphone lineup. Also august Consumer Prices on wednesday. Friday could see the start of the United Auto Workers union strike. One that could cost the u. S. Economy 5. 6 billion in the first ten days alone. Lets check on the other top corporate stories with silvana henao. Silvana. Dom, good morning. A merger monday possibly on tap. Hostess brands is closing in on is selling to jm smucker for 4 billion to 5 billion. That would be the end of the turn around story for twinkees and zingers and more after two bankruptcies. One in 2004 and 2012 and then for a stretch where it took twinkies off the market. It is up in the Early Morning hours. And alibabas outgoing Ceo Daniel Zhang will step down on the Cloud Business as well. The news came after his role as chairman step down to concentrate on the intel unit. Alibaba says the ceo eddie wu will take over the duties ahead of the Public Offering for the business. Instacart is getting set to kickoff the ipo road show today. The company is aiming for a market value of 8. 6 billion and 9. 3 billion. A far cry from the nearly 40 billion valuation in 2021. Instacart is expected to start trade on the nasdaq under the t ticke er cart, dom. Thank you, silvana. We are looking at the cpi report due out on wednesday and it is expected to show easing price pressures, but it will still show the Federal Reserve 2 target rate is below those levels and comes one week before the next policy meeting on t Interest Rates. The expectation is to skip the next rate hike. It is 93 chance the fed keeps rates unchanged. For more, lets bring in vance howard. Vance, the consensus right now is the fed is in waitandsee mode. Are the pressures on the horizon lingering to stay hyper vigilant on flinflation . They had some Staff Members of the fed saying the Interest Rates are where they should be. I know with the Staff Members saying that, they will listen to the Staff Members. I think the fed will not raise. The cpi print will be good and the market is in an up trend. I think people should stay long. Vance, we can say these things, but we still have gasoline Prices Higher over the course of the last several months. We know that those Consumer Prices are very much effected by gas price and consumer wallets. Is the American Consumer going to be in trouble heading into the fall and Holiday Shopping season . I dont think so. The think gas prices are going up. We are watching it like you are, dom. The fed looks at housing and housing costs. That is an area that is more important than fuel prices. As far as a trader, look at xle and make money off it if energy is going up. I dont think it will impact the consumer. There is too much cash on the sideline. Too many people are employed. The economy is fine. The market is in an uptrend. All of the data points do nothing more than scare investors out of the great environment to put money to work. Speaking of putting money to work, vance, if you are that bullish, where are the opportunities . Some people say the market is overvalued, especially in key parts with regards to technology, media and telecom. Dom, take out the top seven and the s p is very easonable. 15. 4. Look at amd. That pulled back to a nice buy. Nvidia is a nice buy. Any time nvidia pulls back, that is a nice pbuy. If you look at the qs, dom, 380 on q is one pivot point. It should run up to 387. I think you will run into a new high by year end on the qs and s p 500. Vance, is there anything out there that scares you a bit and make you rethink how bullish you are about the market . There are always things that bother you or things we cant see or know. A pandemic or a war breaks out somewhere. You have to deal with it. That is something we cant know. What we know, dom, the trends up. The market is moving higher. Participate. Vance howard. Thank you very much. We will see you soon. Thank you, dom. More to come on Worldwide Exchange, and the one word investors have to know today. First, President Biden set to depart vietnam after the landmark Southeast Asia trip. How investors can play that d. C. Shift. Plus, big cloud is on deck getting set for oracle results after the close today. Later on, a first on cnbc interview with the china head of trip. Com. Balancing an uneven chinese recovery with the travel boom. We have a very busy hour still ahead when Worldwide Exchange returns after this commercial break. 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What are you seeing is the bid in the futures market indicating an open for the Dow Jones Industrial average higher at the opening bell. S p implied higher by 28. Thats the u. S. Side of things. Lets see what europe is doing with Julianna Tatelbaum who is standing by in the london newsroom with the early action from the european continent. Julianna. Good morning. Here in europe, we started out on the front foot. We have green across the board. We have come off the highs of the morning. Just a few minutes ago, we got fresh estimates from the european commission. They put forward forecast for growth for the block and the take away this morning is the commission cut the Growth Outlook for germany. German gdp forecast to shrink 0. 4 this year. The expectation from the spring forecast was for 0. 2 growth. Massive revision. They cut the 2024 forecast for germany. Gdp expected to rebound next year, but only by 1. 1 . Previously, we were looking at 1. 4 growth figure for next year. That is factored into trade this morning and investors bracing for the ecb meeting on thursday where the market is pricing in a 38 chance of a rate hike. The decision certainly hangs in the balance at this stage. As for asian markets, under performance in hong kong. Hang seng dropped 0. 6 . Shares of alibaba dropping. The company an announcing the outgoing ceo is stepping down. Big news for that company. Shanghai is up 0. 8 . Back to you. Julianna tatelbaum, thank you very much for that. President biden is wrapping up a visit to vietnam today after the g20 summit in india this weekend. On saturday, the president and other World Leaders announced a new shipping and rail corridor to connect india through the middle east. The u. S. And vietnam agreeing to boost cooperation after the talks with the chairman of the communist party. Washington and hanoi are expected to work closely to improve supply chains for semiconductors and rare earth minerals. President biden says these efforts are not about containing china. We have an opportunity to strengthen alliances around the world to maintain stability. Thats what this trip is all about. Having india cooperate much more with the United States and closer to the United States and st vietnam be closer to the United States. It is about having a stable base in the indopacific. Lets get more with erin murphy with the Economics Program and senior fellow for the International Studies institute. Erin, this is the situation where the u. S. And many countries are trying to find ways to at least balance things with regard to the reliance on china. How much should china take this as an affront to them . Thank you for having me this morning, dom. Thats a great question. I think no matter what the u. S. Or its partners or neighbors do, china will view it as an affront. I think what were seeing countries do more less in the military space is economic spacecraft is part in parcel. Over the last few years, countries have tried to diversify the psupply chains an portfolios with covid or shutting down or they have unreliable partners and china presents a risk. This is the situation where the economic side of things is used more effectively than the military deterrence over the last several decades. It is also a situation where china showed everybody around the world what they will do in an Economic Situation where they think covid or other pandemic is a problem. Thats why supply chains are moving. What can china do to ease some of those fears . For themselves, it is a way of doing business differently. You heard President Biden saying they dont want to contain china, but have china use the rules of the road. Trying to be transparent and adhere to w. T. O. And infrastructure and investment. I think one key that the u. S. And g7 countries and others is point to the way china does business, especially overseas. It brings its own labor. It has o paque contracts. You look at the sri lanka example and if sri lanka could not repay that loan, china could take over the port which is a critical infrastructure. The way china could do business would help ease that locally and abroad. Before we let you go o, with chinas saituation, do you feel there is a path forward for them . What would they need to do to make sure the world views them as more of a trading partner or Business Partner rather than one looking to take everything out there and make it all about themselves . I think there is a Significant Trust deficit. It will take a while for china to dig out of the hole and generate the trust a lot of the relationships, the infrastructure contracts with the belt and road initiative, and now the Global Development initiative has been an act of convenience. Countries needed infrastructure and china is willing to provide it. I think there are a couple of things that could happen. You see the u. S. And g7 countries stepping up to fill up the gaps with the struck ture. If you see china Going Forward with the global initiative, it has to work with countries adhere to feasibility standards and governance. The only way they can help address it is by doing the work. Erin murphy, thank you for the insight. Coming up on Worldwide Exchange, when it comes to Artificial Intelligence, it is not just for writing term papers and cover letters. Now the irs is using big money to cchat targets in the act. Robert frank has that story coming up. fan 1 there ya go thats what im talkin about josh allen is this your plan to watch the game today . hero fan uh, yea. I have to watch my neighbors nfl sunday ticket. josh allen its not your best plan. But you know what is . Myplan from verizon. 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The death the toll from the earthquake in morocco keeps ra rising. More than 2,100 are dead and that number is expected to increase. The u. N. Says 300,000 people are affected by the disaster. Just yesterday, the 3. 9 aftershock rattled communities. It is not ker clear if it cause more casualties. To the world of sports, Novak Djokovic played lights out to take the straight sets win over daniil medvedev. Djokovic wins his fourth u. S. Open just a year after withdrawing from the tournament over his vaccination sdatatus. We had a big blowout on sunday night football. Cowboys forced three turnovers on daniel jones. Dallas dismantled new york. 400. Dom, for a monday morning, giants fans hurting with the score line, back to you. I have a number of folks i talked to the last few days and cincinnati, new york and other places and pittsburgh, for my niners, week one doesnt tell you what will happen for the season. Frances rivera, thank you very much. Turning to china. Despite an uneven consumer recovery, travel demand after years of lockdowns is stronger than ever. Eunice yoon is joining us with the story. Eunice. Reporter dom, it is a bright spot when it comes to consumption and trip. Com group is hoping to really capitalize on the next stage for the industry which they believe is outbound travel. Today, the company had an event in shanghai where they were reaching out to the international partners. In terms of u. S. And china travel, they said flights d doubled 12 from prepandemic levels. They are feeling optimistic that things will get better. Especially after the u. S. Commerce secretary visited china. Travel to the United States is quite well demanded. In the past, we had 6 compared to 2019 levels. After the visit, more flight capacity will be added on both sides. We are very excited to see that. Reporter trip. Com groups ceo told me she is upbeat about the area focus of the u. S. And china which was Chinese Group tours. They were revived, if you remember, recently. People have been booking their tours to the United States. Putting down 4,000 to 10,000 u. S. Dollars for the trip. This is for the october holiday which is a major holiday here in whine. T china. The ceo said she is happy spending is returning to prepandemic levels. Chinese consumers are the large spenders compared to the rest of the world. The most expensive tour trip. Com told before pandemic cost 200,000 usd per person per trip. 80 days around the world. Guess how long it took us to sell the packages . 17 sekconds. That tells you the customers we serve have strong buying power. If you look at the per person, per trip, the chinese consumers spend the most, 2,000 per person per trip u. S. Dollar. Reporter outbound travel, dom, the next 6 to 12 months is critical. She wasnt as optimistic about inbound travel. She hoped among nonchi