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Us. Investing. Involves Risk

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Morgan Stanley Smith Barney, Llc. Bringing

0:32

show music. This

0:36

is Squawk Pod and I'm

0:38

Cnbc Producer Cameron Costa. On

0:40

today's episode, Target beats Wall

0:43

Street's Expectations, Ceo Brian Cornell

0:45

joins us for an exclusive

0:47

interview on his results and

0:49

his prices. Inflation has been

0:51

the stickiest with food and beverage.

0:54

How sticky Cornell explains. Why

0:56

go back to pricing Pre pandemic from

0:58

many food and beverage items that are

1:00

up twenty or thirty percent. Inflation

1:03

Nation even Cookie Monster is

1:05

getting involved. Me: Hate: Shrink

1:07

Fallacious. Make cookies are getting

1:09

smaller. Plus Transportation

1:11

Secretary people are just on

1:14

airline safety and Dc politics.

1:16

We need to make sure that we highlight the things

1:19

that are going right, then continue to pay attention to

1:21

things that are going wrong. It's

1:23

Tuesday. March Fifth. Super Tuesday.

1:26

Tuesday. Sometimes. I like less than Monday.

1:28

I always like Tuesday more than

1:30

Monday and squawk pod begins right

1:32

now. That betty by

1:34

and three two one heroically.

1:38

Good morning Everybody or welcome to Squawk

1:40

Box right here on Cnbc. Were live

1:42

from the Nasdaq Market site in Times

1:44

Square. I'm backing quick along with Joker

1:46

in and Andrew is off today. Today

1:48

is. Like I

1:51

said it, it's Tuesday sometimes. I like less than

1:53

Monday's How do you? Is that that? I always liked

1:55

Tuesday more. Than Monday you'll I get more than

1:57

Monday. As think less them their

1:59

the. Monday. Will right? But

2:01

it's supposedly super somewhere or republicans

2:04

in fifteen states are voting for

2:06

their preferred presidential candidates for President

2:08

Trump's expected that to deliver a

2:10

strong blow or to Nikki Haley's

2:13

her campaign hopes that that will

2:15

just make her more defiance. Ah,

2:17

she has no events scheduled for

2:19

today though or beyond and that

2:22

may be at our reportedly has

2:24

no future Tv or radio ads

2:26

but courting the ad impact and

2:28

the. Twisting.

2:31

Herself into a press soul

2:33

to try and stay in

2:35

the republican. Party.

2:38

I never. See has about thirty percent of the help,

2:40

but she doesn't have the Dlc. Might never come

2:42

back up. see me, never to may

2:44

never be able to get back in.

2:47

I did hear. so maybe I want to go on as

2:49

a senior next. I? maybe or to go to Santa isn't

2:51

this? Morning that if she were

2:53

to endorse trump that that

2:55

he might actually one sad

2:57

because it. Would could potentially help a

3:00

suburban voters that uses thirty percent of the

3:02

vote. So basically is just need a big.

3:05

Never mind both of them. Come.

3:07

In or of tell hundred of it's I didn't.

3:10

I know, what are these things? Class? shouldn't we?

3:12

At some point this role our eyes and feel

3:14

like we were. And. In

3:16

a sort of use than

3:18

is that he welcomed apart

3:21

to assess meantime Democrats are

3:23

also holding primaries and caucuses

3:25

in fifteen states plus American

3:27

Samoa. By. The way: the

3:29

first polls will close at seven Pm

3:31

Eastern. And

3:34

I guess is you create a commission.

3:36

It means that it's really happening. Therefore,

3:39

It's not your fault or news alert

3:41

out the Washington this morning the by

3:43

the administration creating a strike force to

3:45

root out price gouging. So there really

3:48

is price gouging going on making to

3:50

soccer's it would have a strike force

3:52

this there wasn't. One of

3:54

the details. That's what the White House and so

3:56

that's right through. This is one of several. Actions coming

3:58

from by the company them count bought

4:00

today the strike for the going to

4:02

be jointly led by the Justice Department

4:05

in the Ftc. They they appear to

4:07

be a whole of government effort of

4:09

gonna do with collaboration across agencies, share

4:11

data and resources and I'll be rooting

4:13

out deceptive and illegal attempts to keep

4:15

prices high and areas like food, prescription,

4:17

drugs, transportation. And now if this sounds

4:19

familiar, it might be because it's not

4:21

unlike the Executive Order on competition that

4:23

Biden find in Twenty Twenty One. But

4:25

the White House says this is really

4:27

a supercharged whole of government approach. A

4:30

couple other highlights from what they're doing today,

4:32

the Cfp be is gonna be finalizing it's

4:35

rule to reduce credit card late fees. They

4:37

say that said take effect about two months

4:39

today and it'll bring the average critic hardly

4:41

see down from around thirty two dollars to

4:44

about eight dollars. The Fcc is also going

4:46

to be taking steps to reduce internet cause

4:48

for some folks living in apartment buildings and

4:50

as a Us Agriculture Department is going to

4:53

be cracking down on meat and poultry processors

4:55

to help farmers. The overall of course this

4:57

is good messaging for the White House they

4:59

say more competition. Is good for the economy

5:01

but they also say they estimate their junk

5:04

foods under is already saving Americans about twenty

5:06

billion a year. Joe. It

5:08

is good to some is good. You

5:10

are right about that zig zag you

5:13

to sit in. The meantime Sesame

5:15

Street jumping and on that inflation

5:17

conversation the official Cookie Monster account

5:19

posted on asks. Me: Hate

5:22

shrink places. He cookies are

5:24

getting smaller. Ohio Sen Sherrod

5:26

Brown replied me to Cookie

5:28

Monster: Big corporations shrink the

5:30

size of their products without

5:32

shrinking their prices. all to

5:35

pay for Ceo bonuses. Saddam.

5:37

From Ohio. Okay

5:40

monster the like to cook given

5:42

me a. But.

5:45

Today I love. This.

5:48

Is gonna be a hard electors

5:50

jersey jersey I have. Served

5:54

on this is will be hard between known

5:56

as of or that the. To

5:58

walk alone. It's

6:01

it's really hard because word A position. Where.

6:04

We need to be objective theoretically

6:06

like the rest of our colleagues,

6:08

and cable news up on both

6:10

sides, so so no one mint.

6:12

everybody's in on the joke, are

6:14

they not? Ah, You

6:17

gonna do it and thin and will be

6:19

back on on Thursday to however they were

6:21

air B I always. Say we see what happened.

6:23

Trump vs. Biden. I can't believe we're doing

6:25

this again. Now

6:28

to voice his as well.

6:31

Because it wasn't good enough the last. Summer yeah we

6:33

did have enough for wasn't as chaotic,

6:36

him nasty and and job devices were

6:38

some level. Actually had a do it

6:40

again year ago. Google

6:43

cofounder Sergei Brin. Making a rare

6:46

public appearance over the weekend, he

6:48

spoke to entrepreneurs at the age

6:50

He I house and Hillsborough California

6:52

where developers and founders were testing

6:55

Googles Gemini model as the Ai

6:57

model that a spark so much

6:59

controversy when it started generating historically

7:01

inaccurate images including a female pope

7:03

and a racially diverse Nazi. Soldier

7:06

or group of Nazi Soldiers. Here's

7:08

some video of his comments that

7:10

were released overnight by A D

7:12

I House. Or

7:16

destroyed. Or

7:20

the you move into this one. Friend

7:32

said that the company isn't quite

7:34

sure why July's responses have that

7:36

left tell us that it isn't

7:38

their intention is of. The company

7:40

has recently made accuracy improvements by

7:42

as much as eighty percent on

7:44

certain international. Tess Princip down as

7:46

President of Alphabet Back and Twenty

7:48

nineteen. He remains on the board,

7:51

but he's recently returned to work

7:53

at the company. It's all around

7:55

the a i move that alphabets

7:57

than making bread actually told those

7:59

gathered and. The movie especially came

8:01

out of retirement because the trajectory of

8:03

ai he said is so exciting. The

8:06

sort of first hit. A tongue thought you

8:08

know we probably need a female full flight is

8:10

that didn't bother me that much. I think a

8:12

female pope. He. Knows do with

8:14

the program here. you know what

8:16

changes in two thousand years? And

8:18

then we had joined Lipson on

8:20

yesterday's women are smarter, They work

8:22

harder of their more virtuous the

8:24

just totally better people. Than. Men

8:26

as I found out yesterday as I am

8:29

they should leave. It was nice to be

8:31

possible for woman to be pope. Ah dammit,

8:33

thank you. And priests I

8:35

mean everybody else. You know the

8:37

to separate hello, everybody elses The

8:40

mean what is that got to

8:42

do with ah. You

8:44

know he can be. I think the

8:46

Catholic church and that and this pokes

8:48

at sauerkraut. Hope I'm not. Ah yes

8:50

I like the last of the we

8:52

had to like Merlot. The Us are

8:54

my favorite Pj to. Take

8:57

mothers and yeah, Pollyanna, but discuss,

8:59

ah, that's heresy is in. I

9:01

was raised my uncle was a

9:03

police. Were raised Catholic. And

9:05

varied a Catholic I submit. we had

9:08

mass latin mass say seek the girls

9:10

facing the other way the priest every

9:12

morning and first and second day every

9:14

day and post back two so new

9:16

posts out into the things that are

9:18

trying to the was english or after

9:20

that. Surveys.

9:23

Else has overtaken Ilan Mask as the

9:25

world's richest person as according to the

9:27

Bloomberg Billionaires and decks and estimates space

9:29

as as net worth two hundred billion

9:32

dollars which is up by about twenty

9:34

three billion dollars since the beginning of

9:36

the air as Amazon shares have some

9:38

arisen that compare So net worth of

9:40

one hundred ninety eight billion dollars for

9:43

Mask Lvmh St. Bernard Arnault was not

9:45

far behind he clocks and right now

9:47

at one hundred and ninety seven billion

9:49

dollars but again that's been Apple. Are

9:51

Amazon's fortunes rising were. Sad Tesla.

9:53

Fortunes coming back down to. See.

9:56

You get the island and he gets injured.

9:59

And then What? Then it can like you're.

10:01

Just like the rest of us again within, it's

10:03

kind of are they really different? Think. There

10:05

are no different. From. Different. They. Are

10:08

good cooks. She's

10:12

will be next. Next on

10:14

squat pod. After a difficult year,

10:16

Target Ceo Brian Cornell seats consumers

10:18

coming back to the store and

10:20

now ready to send. Would satisfy

10:22

was where we are fan are seen.

10:24

Today is all about a road map

10:26

for growth. Sitting back to growing the

10:28

top line, growing traffic and making sure

10:30

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11:39

listening to Walk Past. The

11:42

Morning A walkabout to Squawk Box here

11:44

on Cnbc live from the Nasdaq Market

11:46

certain Times Square on Joe Corona along

11:48

with Becky Quick and Andrew is off

11:50

this morning I target. Out with better

11:52

than expected Fourth quarter results this morning. came

11:55

in with earnings of two dollars and ninety

11:57

eight cents a share that was much better

11:59

than the to forty the street was expecting.

12:01

Revenue also beat expectations coming in at thirty

12:03

one point Nine two billion dollars versus the

12:06

thirty one point eight billion that had been

12:08

expected. And joining us right now for an

12:10

exclusive interview is Brian Cornell is Targets Chairman

12:12

and Ceo of Stuff by the way of

12:14

Five or Seven Point Six percent so far

12:17

this morning and Brian thank you for joining.

12:19

Free beer. So. Lot of things to

12:21

move through. just on the quarter that you just

12:23

ended the year you just ended before we get

12:25

your guidance for the next year. I think the

12:27

thing that jumped out at me the most was

12:29

how. Operating margins and proved. That

12:32

was a big deal. What happened? Was

12:34

a really solid four year mean you were ported

12:36

a new job and talking about it. But the

12:38

see Our. Our. Prophet grow

12:40

by was two billion dollars. Pps:

12:42

You're in Europe almost fifty percent. Really?

12:45

Solid progress when him into removed from sample.

12:47

we've. We've. Been talking about official

12:49

see work within the organization. Of.

12:52

The almost two billion dollars in profit

12:54

improvements on a half billion came from

12:57

operational efficiency so we are continue to

12:59

focus in on like what what will

13:01

you do differently imagery miserably the big

13:04

partners in greater productivity upstream in supply

13:06

chain in stores. To. The

13:08

teams really focused on managing cost

13:10

and we did see sequential improvement.

13:13

For. Hims the second quarter to the third quarter

13:15

of the fourth quarter really apply a big improvement

13:17

in traffic. But if. You

13:19

decide to join us later today and will write

13:21

down the street having our annual investor conference. You'll

13:24

hear me talk about the fact that we're not

13:26

satisfied with where we are. And. Are

13:28

seen. Today is all about a road map for

13:30

growth getting back to growing. The top line. Growing.

13:33

Traffic and making sure that. We.

13:35

Make Target a group company again. Tell.

13:38

You do that. For the year I went

13:40

we didn't like a little bit about the

13:42

full year you're looking for. com to be

13:44

flat the up to for sandwiches about with

13:46

the street was expecting adjusted earnings per share.

13:48

a sixty nine Sexy as the street was

13:50

at nine ten or was at nine dollars

13:52

and fifteen cents Us right around the midpoint.

13:54

But for the first quarter you are looking

13:56

for earnings per share to be probably below

13:58

with the street was expect calm down three

14:00

to five for said earnings per share. One

14:02

seventy to two ten. So what's happening in

14:05

the current quarter and how do you expect

14:07

to change that. Through. The as year for

14:09

he we been working across the organization

14:11

some great plans to stimulate traffic. Drive.

14:14

Comp growth across or business. We. Certainly

14:16

expect to see improvement in our

14:18

overall company performance. In. Were

14:20

putting a lot of time into ensuring

14:23

we have the right balance of newness

14:25

and value across our portfolio. Whether.

14:27

You're shopping in. Our stores are online

14:29

and league. As we look at the

14:31

current state of the consumer, we know

14:33

they're shopping at that intersection between newness

14:35

and value. So him and be a

14:37

mercy. So Alpha year. That consumerist still

14:39

looking at of value. Propositions: You look

14:42

at a consumer this at a little tense coming

14:44

as well. I think it's we think about the

14:46

consumer. I've heard. To. You talk about

14:48

this fancy. talk about it. First know years

14:50

now. I. Think we've seen

14:52

a very resilient us consumer. Despite.

14:55

Inflationary headwinds, rising interest

14:57

rates, the uncertainty of

15:00

the market overall. The.

15:02

Consumer can choose the shop. On a

15:04

full year basis. We. Generated a one

15:06

hundred and seven billion dollars in sales,

15:09

And a big part of that came

15:11

from discretionary categories. So. It's

15:13

a consumer who's on a budget their

15:15

shopping carefully. They're still looking for

15:17

newness. They're still looking for value. They're

15:19

celebrating seasons. So weeks I said to

15:21

continue in. Twenty Twenty Four. For.

15:23

It further their the inventory issues

15:25

were a couple years ago when

15:28

I mean been dealing with them

15:30

now for a couple years. But

15:32

the stock bottom the enlightened October

15:34

November like one or two. I'm

15:36

wondering what that last move from

15:38

one fifty to one or two

15:40

that was an inventory was That

15:42

was macro. Recessive wars with

15:44

that. What it was that that we

15:46

were all waiting for good though last

15:48

year for for recess as well. I

15:51

think many in retail face them into

15:53

a challenges every other pandemic and certainly

15:55

Joe. There's been some concerns about discretionary

15:57

spending insert categories like apparel and home.

16:00

In. Toys. And we certainly

16:02

seen some of that over Twenty Twenty three.

16:04

Weeks. But some improvement as the only Twenty Twenty

16:06

Four and a big part of that's going to

16:08

be the work we do with our national brand

16:11

partners with our own browns. With. Our great

16:13

partnerships to make sure we have the

16:15

right balance of newness and value and

16:17

are offering. When you talk about

16:19

the efficiencies you get out of that an

16:21

inventory management does that mean see where skills

16:23

so that there's see where things that you're

16:26

putting into the store scared and and and

16:28

does that translate into items that are not

16:30

and stock. Or not. Yeah, actually one

16:32

of the great outcomes that he is

16:34

were actually and stuff more often is

16:36

greater reliability. When. We have

16:39

the right him into a in our system

16:41

is slows from are deceased or stores more

16:43

efficiently. From. Our stores Or the shelf.

16:45

And. We. Focus on retail

16:47

fundamentals would sort of making sure when you

16:50

and joke and in. The. Product you're

16:52

looking for is on the shelf. Category. Value

16:54

with a great guess experience. Whether you're in

16:56

a store or you're using our drive a

16:58

plane which. Grew. By double digits. Again

17:00

this year and we're putting it in your

17:03

trunk. And. Then bring you now

17:05

your favorite Starbucks coffee. For.

17:07

Reliability Really important to move your

17:09

inventory right? The entire system flows

17:11

better. meaning. What so I mean? Is

17:13

that just merchandising? Like you pick the right

17:16

stuff Or is that you. Really

17:18

cut. Back on the number of things that

17:20

you're that you're putting out there as as thick as

17:22

that. That's as a tricky thing to do is being

17:24

a merchant. Idea I can. It can

17:26

varies by category. So category by category

17:29

with you the right blend of how

17:31

many items we want. Me assortment. What's.

17:34

The blend of national brands vs. own brands.

17:36

How do we bring newness in? And I

17:38

think in many categories we done that really

17:41

well when the standout categories for us, when

17:43

I think about newness, an inspiration and beauty

17:45

and that's how he reads, good just continues

17:47

to grow. Great. National brands. Great

17:49

newness in a category, great discovery and were

17:52

to take some those lessons and breathe the

17:54

other parts of the of our assortments harder

17:56

than ten years to visit to new. I

17:58

have been there for ten. There's no joke

18:00

to the name as his desk quite a

18:02

few times over the years. Few things. you

18:05

do things differently now. or are there things

18:07

you've you've learned and on a lot about

18:09

them than Ventura thing Or are you better

18:11

now? does it or their what have you

18:13

heard of over the ten years that did

18:15

maybe you'd have done differently in the past,

18:17

them mine and our entire team has learnt

18:19

how important is to listen to the consumer.

18:22

And. I use that term versus and we

18:24

we talked about in the past time us

18:26

within your guest and we certainly value they

18:28

really should we have with those. Guess is

18:31

love shopping would target. But. I think

18:33

we've learned we gotta listen to the American consumer. He.

18:35

On trend. Understand how things are changing.

18:37

Been in the retail business today. Social.

18:41

Plays a big role, In influencing

18:43

what people by. If Betty

18:46

Quick is wearing a white

18:48

puffer, At Davos and happens

18:50

if we the she sounded targets the

18:52

next day I know people are we

18:54

rushing and or stores. Looking. For

18:56

that product. So. We've learned that

18:58

be really good student. So the consumer. Constantly.

19:01

Follow trends, see what's new and exciting.

19:03

But. Any sense been for us foundational

19:06

so thought since said you be a.

19:08

Great. Corporate.

19:11

Citizen or should you walk a middle line

19:13

in, just try to keep your head down

19:15

and do what you do In terms of

19:17

retail, you normally get it. Every Ceo has

19:19

to think about that are up and there's

19:21

been a little bit of they. A

19:24

sea change I think. And in the last

19:26

year. So where I've read the even for

19:28

the Superbowl, the ads, the ads this year

19:31

we want to just make sure that we

19:33

would sell our products but we don't have

19:35

make any Were mad here. We don't make

19:37

anyone mad here. We don't want to get

19:39

in any of these these things that. That.

19:42

Some Ceos were really embracing a couple

19:44

years ago. Shall we talk a lot

19:46

about Target? Be unhappy place? Yeah, we

19:48

bring joy to those millions and millions

19:51

of guess who shop us every week.

19:53

Yeah, and that's where and or indeed

19:55

any drama and when I'd rather be

19:57

a Cia products know. Great newness, great

19:59

sound, You a great guess experience whether

20:01

you're in store or online. When.

20:03

We do that well. We. Get rewarded. And

20:06

that's what we wake up every day focusing on.

20:08

How do we make sure that the right right

20:10

everyone happy at the same time? We've got as

20:13

authentic as we serve of America final south

20:15

West that the we're going to talk about today

20:17

of trying to steal lot of the thunder from

20:19

our presentation. but ninety six percent of America I

20:21

started Target at some point their lives they are.

20:24

We appeal to everyone and we better make sure

20:26

where the happy place for. Whether you're here

20:28

in New York, of your in Los Angeles or

20:30

in Minneapolis we want to make sure the brand

20:32

really connects with all families. What? Are

20:35

you going to last the street today? Just in terms

20:37

of how you continue this? What? Are your goals

20:39

for the year? Were actually that? he gonna

20:41

go beyond just one year? And. We're

20:43

going. Actually thought about the next ten years. Any.

20:45

Investments were making in our stores, the number

20:47

of new source with an open up. The

20:50

number of stores will remodel. They.

20:53

Invest was going to make in supply chain

20:55

and technology. Where. These I'm really

20:57

excited about. I'm still a seasonal of it. Is

20:59

we're going to talk about some enhances

21:01

were making to our target circle loyalty

21:03

program. You. For me, top of that than for.

21:06

We've. Got about one hundred million members. And.

21:08

You'll see some really big enhances

21:11

their program there a writer story.

21:13

Out today wondering if they're going to introduce

21:15

a new paid membership program. I think they

21:17

call it project Trident as that what you're

21:20

referring to. I am. And you can have

21:22

to wait a couple of hours without. I'll say some

21:24

see for you Joe right up front But one of

21:26

things I will tell you as. Will. Be

21:28

putting a big emphasis on target same

21:30

days liberty or home. To. Make

21:32

sure whether it's. Food. And beverage

21:34

household essentials or anything and are sort mint.

21:37

America knows we can get it your home with into

21:39

L Am already a Sip member that I. Are to

21:41

say a membership fee for that? Is this going

21:43

to be something that includes that? or something beyond.

21:45

That. You'll have to wave. It'll be something

21:47

beyond that. I think it's going to be

21:49

a really important part of what drives grow

21:51

for us as we gonna next year and

21:53

we're really excited about talking about it.later today

21:56

you've seen Macys and and what have I

21:58

sure have to we not made me. In

22:00

America right now we just need Target. Well

22:02

job when I was is as I see

22:04

markets your opportunities. We were a big players

22:06

are going to make a horse farm they're

22:09

already causing all sorts of auto process Know

22:11

we were to say i how do we

22:13

make sure those you look at it as

22:15

an opportunity Absolutely. Same. Were.

22:17

Pets on was two thousand stores across the country. When.

22:20

We see that happen. we better say. or how do

22:22

we lean in? How do we make sure. We.

22:24

Have produced but Target brand or great

22:27

apparel offering. To. Those consumers

22:29

and where these I'm excited about

22:31

is the work or apparel themes

22:33

done? If you were walking a

22:35

source right now, you walk right

22:37

into a Target store. Which.

22:40

You see from our spring apparel collection I

22:42

think it's something you and your. Daughter's.

22:44

Would enjoy. So. We done some great

22:46

worth their. On. Friends: Great

22:49

color, great value. That's. Was

22:51

to the get us back on track with growth next year. I

22:53

as as the reminds me of the opportunity when

22:55

Toys R Us close down and ten step

22:57

into toys and a much. Better way for

22:59

one of the biggest way retailers and america

23:01

that one at a very for toys The

23:03

Solar Target. So. When we see changes

23:05

like that your we went to Lean and we were to play

23:07

to win. The. Gotta earn message. They

23:10

is really a back on office

23:12

Kmart, Sears, Jc Penney, Macys of

23:14

the it's it's amazing how says

23:16

that? But and you can. For.

23:19

Every crisis I can be an opportunity

23:21

for for towards as others have closed

23:23

back to the last ten years and

23:25

we've opened up two hundred new stores

23:27

across the country or if we remodels

23:29

over twelve hundred source so we're putting

23:31

capital work and that drives more traffic,

23:34

It makes our brand more prominent. Will

23:36

continue to invest a new stores for

23:38

the next decade. And. As can be a

23:40

big part of our long term growth. Brian. The plans

23:42

you're talking about today. Investments over the next ten

23:44

years that costs money. Is it going to differ

23:46

from any of the things that you might be

23:49

your shareholders my be looking for because I didn't

23:51

realize he didn't buy back shares. And the fourth

23:53

quarter we'll we'll pick back up at the share

23:55

buybacks. Speaker: One of the highlights if you can

23:57

a drill down on our results. Is.

23:59

The. Women are transposition. You're a year. We.

24:02

Improve our cast members Four billion dollars

24:05

From Four billion Eight Billion dollars. So

24:07

we that cash to invest. Our.

24:09

Priorities have not changed was as. Certainly.

24:12

In our business first with as the best way to

24:15

drive returns. Will. Have a long history

24:17

of paying dividends. And. That dividend or less

24:19

than yours is doubled. And. Potentially.

24:22

Waiter the sheer will start buy back shares

24:24

of that's the water that would be there.

24:26

were hasn't changed. At me have

24:28

heard of this morning from the by

24:30

the administration that they're going to be

24:32

looking into Proust price gouging at every

24:34

level. I think from face and housing

24:37

all kinds of things transportation that they're

24:39

looking as. Where did

24:41

you see the inflation battle right now? Where

24:43

Where Prices and what are you able to

24:45

deliver to? Consumers. I

24:48

think. Inflation. Has been

24:50

the stickiest with food and beverage.

24:52

Com. By go back to pricing

24:54

Free pandemic for many food and beverage

24:57

item. Certainly those. Center. Of

24:59

store grocery items. That. Are up

25:01

twenty or thirty percent for your costs, for

25:03

our costs and for the consumer. And.

25:06

When I think about know the challenge the

25:08

American family is facing right now. Yes,

25:10

Interest rates are up. And gas prices

25:13

have been volatile. but if you're feeding your

25:15

family, And those prices for

25:17

core food staples are up twenty

25:19

to thirty percent. That's. Putting

25:21

a strain on your wallet and I think

25:23

that's been something American families have been dealing

25:25

with for years now and continue to deal

25:27

with as we going to Twenty Twenty Four.

25:31

Brian Want to thank you for coming and

25:33

and sitting down with. Us before while strength

25:35

front row all. we all have seats for

25:37

yes from Iraq. Abby, their freshness. Homage.

25:40

To there's refreshments of snacks. Or

25:43

it as a deal for i want to say series

25:45

of address for coming. Up

25:48

next on squats part of

25:50

Transportation Secretary Eat Food is

25:52

as holding slowing accountable to

25:54

manufacturing and safety standards managing

25:56

the politics a D C

25:59

and Story. You an order

26:01

of really believe? We've got to the point

26:03

where many congressional republicans find it so you

26:05

fall as a cudgel that they would rather

26:07

keep the problem going for political. you suspend

26:10

solve the problem and risk the chances president

26:12

could share in the credit. For this

26:14

a spirited discussion a Wifi and we

26:16

can to. Support.

26:20

For this program is provided by

26:22

Chevron, Demand for energy is projected

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to continue rising in the future.

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is cloth tired from Cnbc same as

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Yakunin and that is. Sam

26:58

by Joe is my. President.

27:00

Biden said to deliver said of Unit

27:02

Space authors a mega head of the

27:04

event is the third Minnesota's highlighting what

27:06

it sees as his biggest accomplishment. Some

27:08

of these are those are our projects

27:10

funded by the infrastructure law firm Twenty

27:13

Twenty One dollars out of talk about

27:15

that. Some other a key issues Transportation

27:17

Secretary or Peter Budaj judge said good

27:19

to see you mister Secretary going to

27:21

get we start with job of what

27:23

was F A A types of they

27:25

will get this far as politics stuff

27:27

while a bit later from hours of

27:29

Thursday as. A big night when we understand

27:31

and will get that as a as quickly

27:33

as possible. But I'm number one I guess

27:36

Jet Blue was his. You agree with that,

27:38

it's it's good for for consumers that that's

27:40

are going to happen with Spirit. Yeah.

27:42

We waited as the Department to back

27:44

up the Department of Justice, largely

27:47

because of concerns about what has happened

27:49

over the years in the airline industry.

27:51

your back. At the time of deregulation,

27:54

it was confidently predicted that there would

27:56

be about a hundred major competitors airlines

27:58

in the United States. By the

28:00

turn of the century, obviously things worked

28:03

out differently or we have had fewer

28:05

and fewer airlines, More and more concentration,

28:07

more and more consolidation and that has

28:09

an effect on consumers. And so I

28:12

just like across the administration's a were

28:14

taking a tougher line on anti trusts.

28:16

Really concerned about what's happening to consumers

28:18

in any sector including travel and tourism.

28:21

This one where we had a lot

28:23

of concerns stood with the O J

28:25

and I think right now having more

28:28

airlines rather than less airlines more. Competition

28:30

rather than less. competition is

28:32

good for passes. At. The

28:34

latest on on that other issue we

28:37

talk about and it's. Not

28:39

Spirit Airlines Spirit Arrow systems are

28:42

gets a little bit confusing but

28:44

there are some thought maybe Boeing

28:46

just finally by Spirit back in.

28:48

but at this point the essays

28:51

I think has been visiting both

28:53

companies and in it's going to

28:55

continue on site presence at both

28:58

Boeing. Or and spirit.

29:01

What? Needs to happen. The I do do.

29:03

They report back to you on on what

29:05

they're finding. What What the, how do you

29:07

sets? Follow the issues that that seem

29:10

like they they might be more than just

29:12

a one off. He other reason

29:14

intense round is is it's we had a

29:16

phase boots on the ground a few days

29:18

ago. The administrator met with a senior leadership

29:20

for Boeing communicated some real concerns about what

29:23

seems to be their inability to comply with

29:25

the kind of. Quality

29:27

Control Practices that as a expects of

29:29

them are and gave them ninety days

29:31

to present a comprehensive plan and show

29:34

how they're going to move forward to

29:36

two. Are these issues out with? This

29:38

is something that is obviously of critical

29:40

importance and we're gonna come at all

29:42

of this. From the perspective of safety

29:45

is it is no accident no

29:47

pun intended. It's no accident that

29:49

we've gone fifteen years without a

29:51

fatal crash of an airliner. That's

29:53

the result of an extremely rigorous

29:55

standards when it comes to. How

29:57

just the way these planes are designed as just.

30:00

Whether flown, but but also the way

30:02

that they're manufactured anytime something's out of

30:04

compliance, that puts that record at risk

30:06

we never take for granted. That's the

30:08

does. This incredible fact of flying through

30:10

the air is actually the safest way

30:12

to travel the United States of America.

30:14

Tipping it that way is going to

30:16

require bowing to step up and as

30:18

a a to keep Boeing under a

30:21

microscope including this your tough stuff that

30:23

it was unprecedented of limiting how many

30:25

aircraft they can produce in a month

30:27

until they can demonstrate or that if

30:29

they wanna. Do a higher number, they

30:31

can do it safely. Bowing out a

30:33

big order yesterday from American. and maybe

30:36

maybe they they can get through all

30:38

this, but it's been a tough couple

30:40

years. Stocked was down about a fifty

30:43

percent of. Or. So it's

30:45

an important company. Of. What

30:47

made one of our greatest manufacturing companies

30:49

in this country has a on the

30:51

service sector? Yeah, what What do they

30:53

need to do? Do you think this?

30:55

It makes sense if they were Doctor

30:58

said five Spirit Aerosystems back as out

31:00

of a better to fall way to

31:02

handle these issues. You

31:04

are. I haven't weighed in on their

31:06

business structure of I think for them

31:08

that's a business decision for us. Any

31:10

interest we haven't that has do with

31:12

Safeties are you write the economic importance

31:14

of this company. Is

31:16

enormous are not long ago as in the

31:18

Pacific Northwest as in Vancouver Washington meeting with

31:20

a high schoolers who are in a attack

31:23

program to get them ready for the trades

31:25

and one of the students his i whereas

31:27

them. You know what they're up to. One.

31:29

Of the students eyes lit up when you

31:31

let us know that he was about to

31:33

have his second round of competing for an

31:35

internship to go work at Boeing. Or we

31:38

know how important that that is for the

31:40

economy. But really on our side of the

31:42

house Us and certainly a phase side of

31:44

the house is a hundred percent a conversation

31:46

about safety intercourse. Doing the right thing on

31:48

safety. having the right safety culture is one

31:50

of the things is going to be necessary

31:52

for the long term health of Boeing as

31:55

a business to. The Boost

31:57

What's next argues now at on Thursday we will

31:59

here. They

32:01

say the unions from the president in

32:04

there and there have been some expectations

32:06

built up by thing among among our

32:08

democrats and in President Biden supporters are

32:11

that is it's an important as say

32:13

the union bit weren't very. Obviously

32:17

devices times very strange times. If

32:19

you look at to Gdp I

32:21

know you could bring that up

32:23

our our our well. We've seen

32:25

growth hold up when we thought

32:27

of assessor was com. We've seen

32:29

unemployment well below historic levels at

32:31

said historic lows. And.

32:34

Frequently as and pointed out the disconnect

32:36

between ah, how the economy's doing new

32:38

highs in the stock market and the

32:40

perception of the job President Biden has

32:43

done on the economy and I know

32:45

you that you had with since these

32:47

polls this week they were. A

32:50

staggering kind of shocking from

32:52

the likes of the New

32:54

York Times or Cbs or

32:56

Ipsos. Or in terms of

32:58

that is not only not

33:00

giving the President credit, but

33:03

but really. nath. Eighteen percent

33:05

say the President's policies have

33:07

benefitted them economically. Ah, as

33:09

it's even among women. Twenty

33:11

percent more say Trump's policies

33:13

benefitted them than Bidens. What

33:15

do you attribute that to win at? the? How to fix

33:18

That. We were. I wouldn't. When

33:20

you look at the numbers across our economy.

33:22

all time highs in the stock market record

33:24

job creation or unemployment that hasn't been this

33:26

load for this long since Book: before I

33:28

was born. Are you see so many good

33:30

things happen? the we want to tell the

33:33

story form bomb One of those who doesn't?

33:35

We believe the President deserves more credit for

33:37

for those achievements are part I do. that

33:39

is the you gotta go out there and

33:41

take credit for those achievements and and I

33:43

think you'll see the President's in the state

33:46

of unions are talking about what's been achieved.

33:48

You're definitely. Missy Cabinet members like me

33:50

continuing you out across countries are pointing

33:52

to the projects that are getting done

33:54

that the.black Bridge beings are read on

33:56

in. In Minnesota, Wisconsin is

33:59

just one example. The Forty Thousand or

34:01

did that we're highlighting right now a bullet

34:03

People are also frustrated. Then the and and

34:05

I get A people are generally frustrated with

34:07

the negativity they see every time they see

34:10

coverage of Washington. The Slice Congress right now

34:12

has a and approval rating. last time I

34:14

checked his i think in the twenties. So

34:16

we need to make sure that weeks highly

34:18

to things that are going right and continue

34:21

to pay attention to things that are going

34:23

wrong and it and lay out the plan

34:25

and make clear who's trying to get progress

34:27

and know who's trying to actually solve those.

34:30

Problems vs. This use them to score political

34:32

points and it is especially disappointing to see

34:34

what happened with the Border right eye. He

34:36

got Congressional Geo Peace talks about the border

34:38

every chance they got so you would think

34:41

that would be interested in addressing it. And

34:43

yet when a bipartisan bill put together by

34:45

one of the most conservative members of the

34:47

senate and Democrats working negotiating making tough, tough

34:49

decisions that both as their respective bases are

34:52

were in, have trouble with our team and

34:54

hammer that out I would like there was

34:56

going to be a chance to do something

34:58

real at with real resources as border only.

35:01

For Donald Trump who's not even Rolex it

35:03

officials are to come in and kill it

35:05

with the chill that he put on camera.

35:07

Perfect Previous Soviet, we need to solve problems

35:09

or we can have them be political. Footballs

35:12

of the whole moved to try to come

35:14

up with something. Five.

35:17

The administration and obviously bi partisan

35:19

set didn't come until it became

35:21

clear was going to be a

35:23

major campaign issue and only then.

35:26

Did. Have said the a by the administration

35:28

get interrupted any and every time I hear

35:30

I was out on less was it will

35:32

not a sin as from first but every

35:35

time we hear those talking points said suddenly

35:37

it was republicans who ruin the border. That's.

35:40

Why people get so frustrated? We know what

35:42

President Biden said about inviting people in. We

35:44

know that he got rid of all

35:46

the things that were keeping the border clothes

35:48

that President Trump had put in. We know

35:51

that he got rid of all those. so

35:53

when you say it's not his. Also, when

35:55

he didn't literally not true is literally. Not

35:58

sure. They got rid of. The

36:00

looming over the years between with separation seven

36:02

million separate com in the ignoring the Trump

36:04

administration it was a trickle out of the

36:07

policy to tear children out of the arms

36:09

of their parents. That's true but it

36:11

is not true and some of the other

36:13

things that that have been suggest was it

36:16

served by that as an art of the

36:18

problem with why there's a busy tonight. I'm

36:20

twenty two, Thirteen, two thousand and six and

36:22

in literally since the Reagan administration right. There.

36:25

Have been bipartisan effort to get something done

36:27

here but I really believe we've gotten to

36:29

the point where many congressional republicans find it's

36:31

so useful as as it's rather keep the

36:33

problem going from political views has been solve

36:35

the problem and risk the chances president has

36:38

get us here in the credit for them

36:40

in a way that said you know would

36:42

we see some of them even though we

36:44

had great bipartisan cooperation on infrastructure bill that

36:46

I work on our i'll them who were

36:48

against that only to turn around and try

36:50

to get credit for when we actually have

36:53

a ribbon cutting or groundbreaking. I

36:55

This is the reason that some of

36:57

these numbers stay where they are is

36:59

because it it. It just seems like

37:01

instead of actually. Owning.

37:04

Some of the issues that we have

37:06

and set of acknowledging that the present

37:08

or maybe has lost the steps the

37:10

administration keep saying don't Believe Your Lying

37:12

eyes and that's why I respect those

37:15

are you at your at know Personally

37:17

I think congressional republicans are saying don't

37:19

Believe your lying eyes which is why

37:21

they're pulling at about fifteen percent right

37:23

now I know that that right irises

37:26

never how we how Congress as a

37:28

runoff economic numbers on a present. My

37:30

lying eyes that that are under Joe

37:32

Biden with. His had the most job

37:34

creation in American history. Is it mice

37:36

lying eyes telling us that unemployment and

37:38

inflation or both below for percent and

37:40

have been that way for the longest time

37:43

in who knows well, when or is

37:45

it reality. Or. Is it spin

37:47

to point out the fact that manufacturing

37:49

jobs or up under this president? And

37:52

were down under. last was when weaver

37:54

matters of simple fact. When. We

37:56

heard for three years that the Borders

37:58

closed and it's six. There. Are

38:01

we have said it's let's cruisers and

38:03

seven point two million people have come

38:05

into where are big cities have no

38:08

idea how to handle this. Remembers hearing

38:10

from the administrator. Here's another hello there.

38:12

This is really important. This. Is

38:14

really important. Okay with common Sense position and

38:16

the position the by the way a lot

38:19

of moderate democrats and a moderate republicans who

38:21

have would always say the kinds of things.

38:23

you here is at the Chamber of Commerce

38:25

and in Indiana where I come from. Is

38:28

it? There oughta be more legal immigration

38:30

and less illegal immigration? And yet when

38:33

there's a chance to actually do that,

38:35

That's not what happened the last administration

38:38

caught. Legal immigration. And

38:40

meanwhile, our economy is pulling

38:42

people just as much as

38:44

terrible conditions in Latin America

38:46

are pushing people. And when

38:48

there's finally a bipartisan compromise,

38:50

That. Would help address at least some of

38:53

those issues. Congressional. Republicans couldn't get

38:55

it down because Donald Trump was not even

38:57

in elected office building. That is effect. Will.

38:59

See whether whether this move the needle.

39:01

I just think the early american public

39:03

just once on something that sense that

39:06

some i just don't wanna hear vote

39:08

away cause it it's of what they

39:10

say we the happening the sector about

39:12

we appreciate your time. I'll be watching

39:14

on now on Thursday nights census. That's

39:18

as a set of podcast to day things

39:20

you for listening as always. Clock

39:23

Fox is hosted by So Kernan

39:25

cited twice and Dangerous Weapon. Weekday

39:27

mornings on Cnbc. Thirty Six,

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39:32

smartest taste and analysis from Eric

39:34

Smith cel raised in here ears

39:36

follows Flockhart more averages to meet

39:38

you back. He is. Clear

39:43

that guy's. How

39:54

you manage your dream job. He

39:56

starts by seizing the interview Cbc

39:58

make it.com/course the to register now

40:00

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