♪ good afternoon, everybody. welcome to "power lunch." alongside kelly evans, i'm tyler mat mathisen. glad you could join us. america's chess match with china continues. biden administration raising tariffs, $18 billion worth of chinese imports. we'll discuss the impact. plus, the mean season. viral trading roaring back to life on the mean veteran. this could play out different

and leaving more people holding the bag. speaking of those meme stocks, gamestop, up more than 20% off its highs of the session, amc up more than 30%. also off the highs. additionally, names with high short interests, nova, virgin galactic, plug power on a move as a result of the meme return. now on the broader market front, the dow given up its early morning gains. lower by 19 points. s&p up 4 points. and the nasdaq up a third of a percent. chinese tech on the move. alibaba down 7% posting an 86% profit drop, kelly. and google, holding a major developer event announcing a new version of gemini ai. the stock only up fractionally today. but we'll have a lot more on that in a minute. first, an update on the bid for paramount and david faber has the details. hi, david. >> hey, tyler. as you guys well know, i've been following this closely as i did 30 years ago. another saga perhaps worthy of

its own movie is the battle for paramount. some things to add to the mix today because we have been very much focussed on the potential of a bid from sony and its partner apollo. but people close to the situation that i've been speaking to of late indicate that the likelihood of a bid, at least for the full company, seems to be fading a bit. there has not be an nda signed by sony at this point. nondisclosure agreement that you would typically sign so you could begin real due diligence. beyond that was a fallen sony the stock price last week that we can show you as well that may have given them pause. not to mention, of course, the continued deterioration the environment we know so well, namely the cable ecosystem all of which has led to what i'm told is, quote a rethinking of the paramount bid. that does not mean that there would not be some sort of bid potentially forthcoming. but will it be restructured? look like some of the other things we heard about as well,

trying to take care of nai? certainly something people may want to keep in mind. again, this was never going to be something that moved easily, but you may recall, of course, that they did send a letter of interest and express interest at a $26 billion price, that of course, including the roughly 15 or so in debt at paramount. sony is up today but also the decline i'm talking about. as you take a look at paramount shares adjusting for our report. i should also add, by the way, that while the david ellison, the sky dance slash red bird partnership that has been pursuing control of paramount as well, is no longer in an exclusive period of negotiation. they have continued to do their work. and so, perhaps if you were handicapping it at this point given this latest development regarding sony and apollo, perhaps the ellison sky dance bid once again may come to the

fore. who knows at that point, but given how closely we've been following it, tyler, wanted to at least share that with our audience at that point. >> yeah. my question was going to go to that question of sky dance and red bird. red bird obviously deep pocketed person, lots of media people in it. and whether that had -- whether the fact that sony is rethinking brings sky dance closer if you could put it that way, to concluding some kind of acquisition of paramount. >> you know, listen, there is a level of complexity here that's high. in all of this. and particular the sky dance deal which they have made contingent upon at least previously the merger, getting approval from the committee, board of directors, to value sky dance to essentially purchase sky dance in a way, merge it in with para mount and we reported many times, would also be a significant issuance of equity by newco, purchased in part by larry ellison, red bird, kki

also an owner of sky dance and perhaps many others. there's a high level of complexity there. however the control shareholder national amusement run by sherry redstone, has in the past indicated as my reporting, interest in pursuing that bid and being in favor of it, if you will. will that lead to a finish here that they actually get to the finish line, i should say, tyler? i don't know. as you well know, all of these things are quite dynamic in terms of how they move. there is a hope given how long this has gone on that something will be concluded over the -- let's call it the next couple of weeks. remember, you're dealing with a new management at paramount itself which replaced ceo with a trio of senior people who are running the company. one final point, by the way, i forgot to add in terms of at least the way sony is looking at it and of course the sky dance is as well, there's a very important renegotiation coming up for paramount in terms of

distribution of its cable networks on charter, the big cable company, that had been extended. that extension runs out very, very soon. and so, all the parties will be very much focussed on the economics of that deal and how or if in any way it harms paramount's profitability. so, a lot of moving parts here, but again, the big headline this afternoon, tyler, is at least from their perspective, sony, the word being used rethinking. >> all right, david, thanks very much. david faber. let's get over to that google event now where deirdre bosa has been tracking the headlines. we're learning ever more about gemini today, deirdre. >> reporter: kelly, there's a lot of technological advancements that matter deeply to developers. for our audience, though, probably the biggest announcement so far have been the expansion of sge, that's search general tiff experience

and project astra. they have implications for google's business model. sunday har pa chie is launching ai overviews in search across the u.s. it will be available to all users by the end of this week. they're going to roll that out to more countries throughout the rest of the year. that means the way we search, what we know of search, ten blue links, that is going to be changing. there's been all these questions over whether google woud disrupt its current business model. i wouldn't say this is an entire disruption, but this is sprinkling more generative ai into traditional search queries. that is going to look different for users, for advertisers, for merchants. that has major implications. the other thing that was just announced was project astra. this is a universal ai agent. and as i watched that demo, i couldn't help but think that this is certainly what open ai was trying to front run with its demo yesterday. this is less of a chat bot, more of an ai assistant or an ai

agent. i want to show you some of the demo that they just showed a few minutes ago in the amphitheater. >> what neighborhood do you think i'm in? >> this is known for its railway station and transportation connections. >> do you remember where you saw my glasses? >> yes, i do. your glasses were on the desk near red apple. >> that last part kind of blew me away, blew the audience away as well because what you didn't see was earlier on in the video, it had seen glasses, even you looking through your camera might not have noticed that but ai agents have memory and they have reason. and this is really a new era of generative ai that's going to have enormous implications. there's another part of that demo where the user is not looking through her phone but she puts on a pair of ai glasses. this is what you're seeing right now. it seems to work a lot better.

so it does also raise this question, what is going to be the device of the ai era even when we watched open ai's demo yesterday. when you're awkwardly holding the phone to show your work, got to be a better way. it is certainly a throw back to google glasses. i don't know if you remember that. but a lot is shifting this week. and a lot is on display here at io. so, you know, the audience here is digesting it and developers digesting it. wall street as well certainly. on that note, we are going to be sitting down with sundar pi chie to talk all about what was announced. >> we look forward to that. thank you very much, deirdre. where did i last see a guy in a lime green jacket, sitting right across from me, by the way. wed bush's dan ives with us now. >> it was ahead of the presentation. >> ahead of the event. really good. you say there is an ai arms race going on right now. we know who the players are. how is google positioned? and how is it doing?

>> i think quickly narrowing the gap versus microsoft and open ai. but this is a huge event. i mean for developers in terms of this game of thrones that's playing out. google really needs to show from a gemini perspective and from ai that they're going to be the ones that actually monetize this. at the same time, that it looks like apple and open ai are going to have the partnership. deirdre talks about the device. what's going to be the ai device. we think it's really going to be the future of the iphone. i think iphone 16, wwdc next month. so they need to make sure -- i think they're doing a good job to show search as well as even on cloud, when you think ai, you don't just think microsoft and the god father of ai, nvidia, you think google. >> is the future of their ai, just as you said, the future for apple, is the iphone, ai in apple. is the iphone. is the future here the android phone? >> so, i think it's really -- it's going to be about search, how they monetize that in terms

of when we talk about you look at gemini, you look at sort of these next versions, how are they going to monetize that? what does that mean for the actual advertisers. of course they'll be advertising ai from a cloud perspective. that's a huge piece of google as well. after a lot of black eyes that they've had from gemini, from some of the launches, it's important here to developers that they flex the muscle and show we have the product. we have something others don't have. and i think this so far has been -- >> we have the meats. >> because if you look at the last 6 to 12 months, it hasn't. it's excuses. well this. we should have done this. this is an important event to show they're leading again. when it comes to suearch, it continues to be their world, everyone else is paying rent. >> you look at nadella and obviously apple and cook, this will be a really battle that plays out going after that

trillion dollar spend. >> if siri becomes powered by chatgpt i would default to using that all the time. what's google's answer to that? >> i don't think they have that answer yet. they're talking about a search assistant and what that could be. but the nightmare for google, what keeps sindar up at night, it's cook getting together. they launch, that's not good for google. they wanted to be front and center in terms of gemini. and i think that's an important dynamic that's playing out here who is going to monetize. >> maybe in fairness to them, google might argue it has the better position with enterprise with its tools in the cloud, reliability, capability, simple scale but with the consumer, if this voice usage disrupts me going to google, i don't know how google can answer that. >> and i think that is the biggest challenge. and that's what they're really trying to showcase today that this technology is going to be so good that your not going to

bypass that. you'll hear next month from cook in terms of this open ai partnership and what ultimately will be the iphone 16 and i think whole ai strategy from apple, they're betting on open ai. >> how ironic is it, given the history between apple and microsoft that it is now apple and microsoft bonding in effect, potentially, bonding to fend off or to get competitive strength against other rivals? >> it's an alfred hitchcock -- no one would ever expect you would get to this point. but it comes down to who has the best technology out there. it's all in open ai. that's why this is an important event for google showing where they're going. but this is one get out the popcorn. there's still a lot more to be written. >> love it. and love the green jacket by the way. >> i'll bring one next for you. >> for me? >> i like the shirt. >> good to see you. dan ives. still to come, a deeper dive at potential market risks around

the world. u.s. upping china tariffs. blinken arriving in the ukraine and sending a message to russia. we'll discuss all of it with fred kemp. releasing cnbc disrupter 50 list. we'll speak to one of the companies transforming healthcare when "power lunch" comes back. to start a business, you need an idea. it's a pillow with a speaker in it! that's right craig. a team that's highly competent. i'm just here for the internets. at&t it's super-fast. reliable. you locked us out?! arrggghh! ahhhh! solution-oriented. [jenna screams] and most importantly... is the internet out? don't worry, we have at&t internet back-up. the next level network. i sold a pillow!

♪ welcome back to "power lunch." president biden is announcing new tariffs on a wide array of chinese products today, including evs, chips and solar panels, all the things we need for the energy transition. the new rules will impact about $18 billion worth of chinese imports. now, that's just a fraction of the $427 billion worth of goods we imported last year, but what will the measures accomplish? joining us to discuss that is

fred kemp, president and ceo of the atlanta council and cnbc contributor. fred, great to see you, first of all. >> great to see you kelly. >> this seems to be an important moment. this president not only embracing tariffs vehemently the message being i assume that if we allowed all these international products in like chinese evs they would put our stris out of business overnight. otherwise, why such a strong response here? >> well, i think that's right. we have been waiting for the administration to pull the trigger at this. they have been looking at trump-era tariffs for a long time. they not only kept them all on, they added to them. i think what's new about it is prevention and resignation. prevention, the 100% tariff on evs, that's right, 100% tariff on electric vehicles, there's only 1% of the u.s. market that's taken by chinese

vehicles. so this is about the future. this is about preventing in the future. what biden administration officials say we learned from the past. if we wait too long and let all these products come in, we lost the jobs, we lost the economics back. so we have to do this now. >> fred -- >> they just shrug their shoulders and said that china is not going to take on any market-driven trade policies. they're not going to change their unfair actions. we now have to act to take on direct and indirect impact to our supply chains from their unfair practices. so that's what's behind this. >> let's focus on the evs. that's the much more consequential industry than solar panels a in the point. what would have happened and refresh our memories or take us back to that time. in the 1980s,what did the u.s. attempt to do in terms of tariffs or barriers to keep japanese cars out of the country, for instance? and what would have happened in they never made entry?

the point being is china being accused of literally subsidizing its ev industry and if not, i mean, or if they are in some fashion, but if they have a better mouse trap and the u.s. can't compete, what is the risk globely for our automakers if they can't keep up? >> well, first of all, it is the electric vehicles for sure. but, we're also talking about lithium ion batteries, solar pams, medical products. what's different, china has been dumping products for years. it's had or capacity for years. what's different about this group of overcapacity is it has national security consequences. and of course, the electric vehicle market, we already see in europe how quickly the chinese can take that market. watch europe now, though, because europe by june or july will decide on its own electric vehicle tariffs. our action will only cause more chinese vehicles to come into the european market. the european market can't act preempt i havely. they have to show the harm.

i think for this to really work, you have to have transatlantic agreement on where these tariffs are going. >> could china get around, quote, these tariffs by making their manufacturing in countries other than china. in other words, mexico, brazil, portugal, what have you. >> i think mexico is the place to watch right now. there are ways to go at that. the administration is talking about them. surely china is looking at mexico as a way to get around this and everything they got into the u.s. market but through mexican manufacturing. i think that's got to be a next order thing that one takes a look at and very quickly. >> all right, fred. thanks very much. always good to see you, sir. fred kemp. >> thank you. great to see you. in addition to global head winds, investors here in the u.s. also have a slew of economic data to contend with this week. ppi coming in higher than expected. we've heard that story before. further dampening the possible fed rate cuts later in the year.

let's bring in julie beale, chief market strategist with cane anderson. welcome. on inflation, walk us through the numbers and explain why it seems to be getting harder to cause inflation to come down after so much inflation seemingly has been wrung out. >> so what you often see with inflation is kind of -- it looks like a perfect mountain when you kind of track it. and what happens is the steeper that rise, the steeper the decline. but that last mile is always the hardest. that's very typical in most cycles. and what typically causes that last mile is an economic slow down. the only time that hasn't happened is more like the 1950s. and so, that's where we are right now where we are not necessarily getting the economic slow down and we're just finding it hard to grind out that last percent. and i think, you know, chair powell is in this really tricky position where he committed himself to rate cuts this year. and you can tell they really want to be able to do that. but they want to be also very

mindful of where we are in inflation in trying to ring out that last percent which is pretty meaningful. >> your answer not implicitly but suggests that you are suspicious or suspect of the fed being able to engineer the so-called soft landing. do you think that something harder with more unemployment is likely? >> i think it's hard to say whether it's likely or not. but i think investors need to be really honest about how hard, what the fed is trying to do right now is. and the tools that they have are very blunt instruments. and so, i think it's really hard to be able to predict whether it's actually going to work. but i think it bears repeating how difficult it is to do. >> julie, there's a couple names you think arenot so flashy but kind of doing well quietly. ollie's bargain outlets. think about the consumer interest and kdent. >> yes. when we're thinking about small caps, people have been shunning

them, i think for good reason. earnings really hasn't returned for small cap. they've been very negatively impacted by inflation. but there's still lots of great small cap businesses, they're not flash fls y, they're not sexy. ollie does close out merchandise, which for a value starved consumer, which is true at the high end, low end, mid end they shop at ollie's and find the value that has been really missing from a lot of retail. and kadant has niche positions where it has the number one position and able to kind of consistently execute with high profitability. so, those are the types of businesses that we're drawn to. >> you like small caps at this point in the market cycle as a group better than you like large caps? and if so, why? >> i don't think i like them as a group. i think you really -- as kind of a small cap investor, i think i actually get paid to say no more than i get paid to say yes.

you look at the small cap it's degraded in quality both from the financial metrics partly to the profitability, you know, also the level of leverage. and so it's really important to be very selective. that said, i'm finding that on a relative basis the valuations in small caps are much more attractive than they are in large cap. so i think they're part of every balanced portfolio diet. >> i think a small caps in that sense kind of like my 18-year-old son. he hears no a lot more than he hears yes. julie biel, appreciate it. >> thank you. gamestop higher as the meme craze is being brought back to life by the percent who started it the first time around. roaring kitty. but how is it different this time. we'll discuss when "power lunch" returns. ♪

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welcome back to "power lunch." i'm bertha coombs with your cnbc news update. it's possible donald trump's defense team will not call any witnesses in the former president's criminal hush money trial. trump attorney told the judge this morning that he did not know whether trump would testify and he said the testimony of one of the defense's expert witnesses will be contingent on jury instructions. meantime, hunter biden's federal gun case could go to or will go to trial in june. the president's son had asked a judge to push the trial to september to give the defense more time to prepare. the judge rejected that request today. the younger biden is accused of lying about his drug use on a form to buy a gun. and "jeopardy" is getting a spin-off. sony pictures television which produces the popular game show

announced a new pop culture edition today that will air on amazon prime video. contestants will compete in teams of three to answer questions about topics ranging from the avengers to zendaya. no word on a host yet. but tyler, you know who i think would be great. >> who? >> christikrichrikristina parts. >> embraced. endorsed. still to come on "power lunch," our anatomy of a consumer series continues with an eye on retail spending. will it get a clean bill of health? we'll crunch numbers after the break and we'll get some names. tamra, izzy, and emma... no one puts more love into logistics than these three. you need them. they need a retirement plan. work with principal so we can help you with a plan that's right for your team.

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welcome back. we continue our week-long series breaking down the health of the consumer. today, we look at a part of that space with the heaviest lift, it's the arms of the consumer retail. joel feldman, senior managing director. welcome back. good to have you with us. >> thanks for having me.

>> how is the consumer doing from where you sit and where you see? >> well, we think the consumer is in a relatively decent spot. seem to be relatively healthy in terms of their ability to spend. the issue has been where they're spending. we continue to see a shift back towards services from goods. and that's weighing on goods spending at retail. and with that, you're also seeing that the pull back on big ticket spending as well and discretionary spending. so, you're seeing basics, household items, consumables all doing well. some of the discretionary categories like beauty could be argued to be discretionary, but that's been doing well. spring products have done okay. spring has broken in different parts of the country, but the consumer is being very choiceful in how they spend and where they spend. >> let's talk a little bit about one of the companies that you like that reports earnings tomorrow -- no, excuse me. i guess it's thursday. and that would be walmart. >> yeah. walmart i think is really well

positioned for this environment. we like walmart very much. it's an outperform rating that we have. we think they're executing quite well. they sell products that everybody in america needs. they serve all of america. and you know, from low income to high income, people are shopping at their stores. they offer the best values out there. and while you're in the store buying basic items, household goods, food, consumables, you can pick up some discretionary items at a decent price. and you know, they've also added a lot of technology to their company in the back end to operate more efficiently. and we like what they're doing and think they're well positioned for the future. >> do you think costco is too expensive? >> costco is always expensive. you know, on a relative basis. it always trades at a high pe multiple or ebitda multiple, whatever you want to look at. i've been covering the stock for about 20 years -- over 20 years now. >> wow. >> and it's like almost the perfect stock chart that you would like to see over time.

it's just up and to the left. and it looks really good. it always looks a little expensive, but you know what, they got more affluent consumer. it's a membership model. it gets you to the store. they have about the best traffic to the stores that we've seen in years. and they continue to put that up month after month. as you see in their sales reports. >> there's usually bad traffic around costco stores in my experience because they're so popular. >> they got so popular, nobody goes there anymore. >> right. >> let's talk about dollar general, third onyour list. different kind of retailing model there. >> yeah. definitely. dollar general is definitely more of that fill-in trip for that lower to middle income consumer. you know, maybe you go to walmart once a week, every other week and in between you're going to the dollar stores, like a dollar general. dollar general, they brought back todd the ceo about six months ago. and he's really helped stabilize the business.

operations are much more balanced at this point. and they're executing much better. and we think based on the traffic data that we see, traffic has been picking up. our channel checks see that we're seeing more regular visits as well. so we think dollar general, which has not moved all that much as far as the stock performance here to date. has room for upside from here. we think they'll report apretty decent quota when it comes out. >> you have an outperform on target. let's go back to where we began, and that is walmart, their main competitor, i suppose. they're sort of texturally different kinds of companies. what do you think of target? >> yeah. you know, we do like target. we have an outperform rating. there's a big profit recovery to happen. their profitability eroded significantly about a year, year and a half ago. they had to clear out a lot of inventory as people stopped buying discretionary goods. two thirds of their business or 60% of their business is

discretionary. and it's value price discretionary, but people had been pulling back there. the stores look terrific these days. traffic has definitely been picking up again based on some of the data that we look at from placer ai and just again our channel checks. we're seeing much better traffic there. so if they can get that recovery, people coming in to buy their groceries and pickling up some of the value priced discretionary goods that stock could look a lot better. that story has a little longer to play out. that's more like later this year into next year where we should start to see that recovery really pick up steam. >> all right, joe. thank you very much for your time today. we appreciate it. very clear. thank you. joe feldman. coming up, some meme mania deja vu. gamestop and other meme names are skyrocketing on the tweets from the man name as roaring kitty. we'll discuss when "power lunch" returns. ♪

♪

welcome back. we're seeing a revival in the meme trade after the famed roaring kitty stepped back into the frame sunday. gamestop up 20% but it was up as much as 130% in earlier trading pre-market. other meme names are getting a nice boost as a result. gamestop up 52%. amc 30%. blackberry jumping 10 mrs. we'll talk about what this is all telling us. michael mouse joins us, trade ideas, traded gamestop during the first meme craze but welcome, michael. you have a different strategy this time around. what is it? yeah, thanks for having me. i think the strategy will be a little different this go around. i think there is some different head winds we're going to have for these particular meme names. basically, the crux of it is that the original short squeeze, especially with gamestop happened with this anomaly there was more shares borrowed than initially existed in the market.

so you're short about 125% of the entire float. this time you're only short 20% of the float. and i think that's one of the reasons we're seeing this fade from all-time highs. however, as you noted yourself on the intro, a lot of other short names are starting to move as well. i don't know if this is short companies or short funds getting nervous that this might be meme stock 2.0 and covering. but i'm -- zooming out and looking elsewhere to see if there are other names, especially short float names that may actually get an advantage based off this move that we're seeing in game stop. >> how do you short more shares than there are? >> there was a lot of speculation to why. i think the one thing that everyone agrees on is the reporting for shorts is a little by archaic. we're in 2024. and currently it's every two weeks the actual data is

compiled and put on a ledger somewhere. i think the speculation was that, you know, somebody shorts some chair and one broker and the lag happens that gets borrowed to another broker. and because the data is not being reported instantly, and we have this t plus 3 or t plus 1 delay depending on what you're trading, that lag is allowing people to short more than exists. so, you know f we're going to correct that, and i haven't seen much movement in that fact, i think we need to get to not only shorter settlement but we need to also get to a point where shorts are reported almost in realtime. >> i thought there was maybe some effort to do that. as urgent now as it ever was. you think the technology now certainly exists. michael, what should traders do this time around. maybe people got burned the first time around, holding shares theythought more like worthless, maybe they get a second chance. talk to us about some different strategies here. >> yeah, absolutely.

i think you need an exit plan. i think if your in from the original squeeze, or you're getting involved in this squeeze, you know, we wish you all the best. but, there's a lot chance that you know, things aren't going to -- they may happen faster than this time. some sort of revision to the meme. so i just implore people to have some type of a plan to say i am going to get out of my position when x occurs. whatever you decide that is. i think that's something that you need to focus on because there are a lot of people who didn't have an exit plan last time and some of the stocks are coming back right now. a lot of them did not. you know, i'm thinking bed, bath and beyond, for example, was part of this first meme stock mania. so have an exit plan. understand that, you know, chasing these moves probably isn't the best idea either, buying these stocks when they're up 130, 40%. what we're doing a lot at trade ideas is looking at the entire market of heavily short flowed names and saying, is there anything that hasn't moved yet?

because if you remember the first meme stock mania and the first short squeeze, there was gamestop that moved initially. then amc moved after that. then we had blackberry. what happened is traders jumped from heavily shorted name to heavily shorted name to heavily shorted name. so if we are going to see that same thing repeat and the same continuation again what we're really trying to focus on is what could potentially be the next one that they jump to, and then also what companies look okay and are maybe doing a little bit better financially or doing a little bit better when it comes to market trends than gamestop or amc that could take advantage in the long run of the short squeezes if they hasn't. >> any particular names you want to mention? >> yeah, beyond meat is one of them. that's holding up very well today. i think we can kind of go back into some of the more shorted names or even some of the names that were popular during that last cycle.

beyond meat is very heavily shorted as well. we have names like even nordstroms, jwn showing 20% short float. mobile eye, a recent spinoff that is actually sitting at 23% short flowed. that represents ten days to court, which means that if people are covering their shares in mobile eye every single day, it will take them ten days to get out. upstart, 32% and wayfair with 22%. there's a lot of names out there of companies that could actually get some sort of move based off of this. >> i just can't imagine the retail army riding to the rescue of nordstrom, you know. it just doesn't happen the same ring to it. >> well, you know, gamestop, it was kind of defunct, right? we live in a world where if you want to buy a video game, you do that digitally. and it's very hard to predict where this army is going to go and where they're going to get excited about. >> sure. >> so, it could be that.

it could also be some of these more exciting names, rivian is 20% shorted as well. >> true. >> so there's a lot of shorts out there where people could get excited. >> all right. >> michael, thank you very much. we appreciate it. kick check on the markets, dow up 110 points right now. as we head to break, we celebrate asian american native hawaiian and pacific islander heritage all month long. here is our own deirdre bosa. ♪ foplation of asian american native hawaiians and pacific islanders is growing by double digits in nearly all 50 states. representing the fastest growing demographic in the u.s. the community's buying power currently equals $1.3 trillion. according to the congressional asian pacific american caucus, that's larger than the economies of all but 16 countries in the world. for aanhpi heritage month, i'm deirdre bosa. ♪

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welcome back. cnbc12th annual disruptor list is out today. a key trend across this year's list is artificial intelligence. to see the fullest you can scan the qr code on your screen or go to our website. among the list we saw an increase in the health care and bio-tech start ups, one of which is driven by the health care provider cityblock. for more on the company let's go to our own julia borten. >> thanks so much, tyler. that is right. ceo and co-founder of cityblock. thank you for joining us here in your offices. i know you have a big meeting with your leaders in your

organization today. talk to us about your model of integrated primary care, community-based model, a couple things that are traditionally associated with medical care, behavioral health and social services. why does your model work to reduce costs. >> first of all, thank you very much t is nice to be with you and an onor to be on the list. we are delighted. what cityblock does unique in the health care space we phobe us on the people with the most complex needs, people who are likely to struggle their needs through the traditional health care system. focus people who get their insurance through medicaid means they are low-income and duly available for both. seniors, younger people with disabilities what we know and we have intuitively know this but it shows up in the data so compellingly, your diagnose, your organs, heart, lungs,

kidney, brain, how they are working is only a small part of what it means to be healthy. what drives health for us is our emotional well being, psychiatric well being, community and sour roundings. if you are worried about getting access to education or transportation to your doctor's office. all of that matters as we are trying to get people healthy. >> talk to us about your relationship with insurers, what does it mean for you financially. >> we are doing great. gives me something six years ago. a market in medicaid. i think it is possible to do those things. >> one of the largest health

insurers. that allowed us to grow and with others. our relationship is such that we partner with health plans that have an incentive to provide coverage and access and high quality services to people that they insure across the country. we work with the subset of the population that needs more services than most doctor's offices can provide. then we contract to say, look, if we provide better care to these folks in the community we take care of their mental needs and social needs we can reduce the amount of time they go to the hospital and emergency room and create a margin in the business. >> we are out of town. but can you tell me, you mentioned off camera what your revenues were last year and if you were on the path to provability. just tell us how big. >> sure. we closed $1 billion in revenue and making great progress we are excited. >> the goal is to reach 10

million members by 2030. sounds like you are well on your way. thank you very much for having us in your offices today. >> thank you. this was great. >> tyler, i will send it back to you >> got a lot in there, thank you very much. >> appreciate your participation as well. cnbc will continue its coverage at 4:00 p.m. eastern with the company ranked mb 2n thnuer oe list. anduril industries. we'll be right back. (♪♪) iconic brands speak for themselves. we are so excited to welcome you to our community. today is all about you. (♪♪) (♪♪)

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. welcome back. big announcements from google with ai. let's leave it with a couple other stories you need to know about. mit is saying they are learning to lie to systems with meta standing out as a master of

deception, training it to play in a strategy game where it succeeded by lying to other competitors. >> that is stunning that ai would be able to mislead a little bit. >> also, wall street journal highlights, people using ai to apply for jobs and companies using ai to hire people they are getting nowhere. closing bell starts right now. welcome to closing bell. live from the new york stock exchange. this make or break hour begins with another sticky read on inflation, failing to do much damage if any today. fed share powell speaking in europe. he called today's report mixed instead of hot. it means all eyes now turn to tomorrow morn's cpi for more chews on what the fed might do and when. with all of that as the backdrop today, stocks are not that far from new highs, in fact, we got a little bit of a surming as we come on the air