SAYING IT SEES THOUSANDS OF UNITS OF FAKE MEDICATION THAT IS DISTRIBUTED THROUGH LEGITIMATE CHANNELS. WHAT YOU NEED TO BE ON THE LOOKOUT FOR LATER THIS HOUR. ♪ >>> AND LET'S GET YOU UP TO SPEED ON THE MARKET ACTION. LOOKING AT THE WI-FI INTERACTIVE HERE, WE SEE A RALLY, ALTHOUGH THE DOW IS ACTUALLY UNCHANGED AT THE MOMENT. THE NASDAQ UP .2%. THE RUSSELL 2000 UP ABOUT 1%. THERE'S THE DOW FLASHING NEGATIVE. LOOKING AT THE SECTOR ACTION TODAY, WE SEE STAPLES, CONSUMER STAPLES IN THE LEAD, UP .7% FOLLOWED BY MATERIALS, INDUSTRIALS, AND UTILITIES. ONLY CONSUMER DISCRETIONARY HERE REMAINS IN THE RED. AND WANT TO GET A CHECK OF THE BOND MARKET. THE TEN-YEAR T-NOTE YIELD UP ONE BASIS POINT TO 3.9%. GOT TO GO OVER SOME, QUICKLY, PCE INFLATION DATA THIS MORNING. IN FACT, WE'RE NOT EVEN TALKING ABOUT INFLATION, WE'RE TALKING ABOUT A DECREASE OF .1%, AS I SAID BEFORE, THE LOWEST SINCE APRIL OF 2020. DURABLE GOODS COMING IN A LITTLE HOT. UNIVERSITY OF MICHIGAN SENTIMENT UP TO ABOUT 69.7, JUST A LITTLE HIGHER THAN EXPECTED. JOSH, THIS IS A BIG DAY FOR THE BIG GUY AT THE NORTH POLE. I KNOW YOU'VE BEEN TRACKING THIS. >> YEAH. THIS IS THE START OF THE -- A SPECIAL DAY. THIS IS THE START OF THE SO-CALLED SANTA CLAUS RALLY, RIGHT, A SEASONAL TREND. TRADERS, INVESTORS PAY ATTENTION. CRAIG JOHNSON OVER AT PIPER POINTING OUT SINCE 1928, BIG HISTORY HERE, THE MARKET HAS RALLIED HE SAYS AN AVERAGE OF 1.7% BETWEEN THE LAST FIVE DAYS OF DECEMBER AND THE FIRST TWO DAYS OF THE NEW YEAR. AND YOU CAN ACTUALLY BET ON THAT, JARED. THAT IS A 79% POSITIVITY RATE. SO THERE'S YOUR SEASONAL TREND TO WATCH. JOHNSON, BY THE WAY, OBVIOUSLY A TECHNICIAN BY TRAINING OVER THERE AT PIPER. EXPECT ANY PULLBACKS ON THE S&P AND XPS TO REMAIN SHALLOW, HE SAYS. >> FUNNY THING ABOUT THE SANTA CLAUS RALLY INDICATOR -- AND IT IS AN INDICATOR -- IT'S THAT IF IT FLASHES MOZILLA, THAT'S ACTUALLY A -- POSITIVE, THAT'S ACTUALLY A GOOD SIGN THAT THE FOLLOWING YEAR, THE ENTIRE YEAR IS GOING TO END POSITIVE. AND IF IT ENDS NEGATIVE, THIS PORTENDS POTENTIAL BEARISH ACTION. AND I CAN GO BACK TO 2008, THAT WAS ONE OF THE YEARS WHERE THE FINANCIAL CRISIS WAS GETTING INTO FULL SWING. THE SANTA CLAUS RALLY PORTENDED SOME OF THAT. IN FACT, IF YOU TAKE THE ENTIRE MONTH OF JANUARY, THERE'S SO MUCH GOING ON WITH POLITICS AND CHANGES IN LEADERSHIP AND EVERYTHING ELSE, THAT JANUARY HAS A VERY GOOD PREDICTIVE VALUE OF THE ENTIRE YEAR, AS WELL. >> IN OTHER WORDS EVEN IF YOU'RE ON VACATION, YOU'RE NOT TRADING, YOU SHOULD BE PAYING ATTENTION. >> I'M COUNTING ON THIS. I'M TAKING JANUARY OFF. >> OKAY. >>> ALSO YOU MENTIONED THAT INFLATION DATA, WHICH I THOUGHT WAS INTERESTING, TOO, DAVID ROSENBERG, THE ECONOMIST AND STRATEGIST -- >> LOVE ROSIE. >> LOVE ROSIE. HERE'S WHAT HE TOLD HIS CLIENTS. HE SAYS INFLATION IS CONCLUSIVELY IN THE REARVIEW MIRROR. HE'S POSITIVE -- THAT'S A DEBATABLE POINT, WE KNOW THAT. YOU KNOW, SOME ARE SAYING, LISTEN, CERTAIN UPSIDE RISKS THEY'LL POINT TO, EASING FINANCIAL CONDITIONS, MAYBE THEY'LL LOOK AT HOUSING RECOVERY. INTERESTING TAKE THERE. >> ALL RIGHT. >>> WE WANT TO CONTINUE THE MARKETS DISCUSSION. AND WE ARE AN HOUR AWAY FROM THE CLOSE NOW. MAJOR AVERAGES ON TRACK FOR AN EIGHTH STRAIGHT WINNING WEEK AS WALL STREET LOOKS AHEAD TO EXTEND THE YEAR-END RALLY. WITH THAT COMES -- WITH THE NEW YEAR COMES NEW INVESTMENT OPPORTUNITIES. HERE WITH MORE ON HOW TO DIVEST IN 2024 IS MICHELLE MARTIN, SHE'S PRESIDENT OF PROSPERITY IN EISNER AMPER COMPANY. THANK YOU FOR JOINING US HERE TODAY. YOU'VE BEEN HEARING US TALK ABOUT THE LATEST ECONOMIC DATA, FINAL INFLATION PRINT OF THE YEAR. CAN WE SAY THAT SAFELY INFLATION IS IN THE REARVIEW MIRROR OR MIGHT WE MAKE ISSUE WITH THAT? >> I WOULD ABSOLUTELY AGREE THAT WE'RE LOOKING AT INFLATION IN THE REARVIEW MIRROR. AND SO I LOOK FORWARD TO -- THANKS, FIRST OF ALL, FOR HAVING ME TODAY. I APPRECIATE BEING HERE. ESPECIALLY WHEN WE'RE IN SUCH A SCENARIO WITH POSITIVE NEWS. WHAT WE'RE SEEING IS THAT INFLATION HAS PAUSED, AND THE FED AT WORST WILL STAY STEADY FOR A LITTLE BIT LONGER. BUT WE'RE DEFINITELY SEEING SIGNS THAT THERE WILL BE RATE CUTS GOING INTO 2024 WHICH IS GREAT NEWS. >> MICHELLE, WHEN DO YOU THINK -- OBVIOUSLY THERE'S DEBATE ABOUT THIS AMONG A LOT OF SMART PEOPLE. WHEN YOU LOOK AHEAD NOW, WHEN DO YOU THINK THEY CUT, MICHELLE, AND HOW DEEPLY DO YOU THINK THEY CUT? >> WELL, THERE'S TALK THAT OF A CUT IN MARCH, BUT THE FED IS PAUSING ON THAT. I BELIEVE THAT THEY WILL HOLD STEADY. THAT THE FED WILL HOLD STEADY FOR A BIT OF TIME JUST TO MAKE SURE THAT INFLATION IS IN THE REARVIEW MIRROR. AND THERE IS -- THE FED IS SIGNALING THREE RATE CUTS. I WOULD TEND TO STICK WITH WHAT THE FED SAYS. THERE'S A SAYING OUT THERE, DON'T FIGHT THE FAT. I THINK THERE'S A LOT OF TALK NOW IN THE MARKET THAT THERE COULD BE MORE RATE CUTS. BUT THERE'S A LOT OF OPTIMISM. AND I WOULD BE OF THE MINDSET THAT IT'S FAIRLY STEADY WITH ENDING NEXT YEAR AT AROUND 4%. WE'RE AT THREE ON -- ON THE TEN YEAR, JUST CLOSE TO FOUR. AND IF WE SEE MAYBE THREE CUTS, YOU KNOW, SEEING IT GO DOWN. I'M NOT SURE I WOULD EXPECT SIX CUTS NEXT YEAR. >> WELL, THE FLIP SIDE OF THAT, IF THERE ARE SIX CUTS, THAT COULD BE IN RESPONSE TO SOME DETERIORATING ECONOMIC DATA, AND THAT MIGHT MEAN RECOGNITION. SO I GUESS -- RECESSION. SO I GUESS WHAT I WANT TO ASK, WHAT ARE YOUR RECESSION EXPECTATIONS FOR 2024? LOTS OF PEOPLE EXPECTED IT COMING INTO THE PRESENT YEAR, AND IT DIDN'T PAN OUT. >> WELL, FROM A RECESSION STANDPOINT, I THINK HIGHER INTEREST RATES DO PUT STRESS ON CONSUMERS. THEY ALSO MAKE BUSINESS OWNERS THINK ABOUT DECISIONS IN TERMS OF PURCHASING EQUIPMENT, EXPANDING, HIRING NEW EMPLOYEES. SO IT IS VERY POSSIBLE, AND I THINK WE CAN EXPECT TO SEE A BIT OF A SLOWDOWN DUE TO HIGHER INTEREST RATES. THE QUESTION IS IS IT ENOUGH THAT IT'S CALLED THE RECESSION, OR DO WE JUST GO TO A VERY LOW GROWTH RATE GOING INTO 2024? I THINK IF WE SEE A TRUE RECESSION WHICH IS RELATIVELY UNLIKELY, IT WILL BE VERY MILD. BUT I THINK THAT -- WHAT I'M HEARING ANECDOTALLY FROM CLIENTS AND BUSINESS OWNERS IS THAT THEY ARE BEING VERY CAUTIOUS GOING INTO THE NEW YEAR. AND HIGHER INTEREST RATES BASICALLY FORCE US TO MAKE CHOICES THAT PERHAPS WE DIDN'T HAVE TO MAKE WHEN INTEREST RATES WERE SO MUCH LOWER. >> MICHELLE, GIVEN YOUR OUTLOOK FOR THE ECONOMY IN 2024, YOU SEE A SLOWING ECONOMY, MAYBE EVEN A MILD DOWNTURN, WHAT DOES THAT MEAN, MICHELLE, FOR YOUR OUTLOOK ON CORPORATE EARNINGS NEXT YEAR? >> I THINK THAT WE'RE WATCHING THAT AS IT RELATES TO CORPORATE EARNINGS. I THINK COMPANIES ARE BEING REALLY CAUTIOUS. WE'RE SEEING THAT THERE ARE CUTS GOING ON ACROSS DIFFERENT SECTORS. I THINK CORPORATE EARNINGS ARE GOING TO BE RELATIVELY STABLE. I DON'T SEE THAT IT'S GOING TO BE A BLOWOUT YEAR. BUT I THINK IT'S GOING TO BE VERY NORMALIZED. I THINK IT'S WATCHING FUNDAMENTALS AND UNDERSTANDING THAT THERE ARE -- NIKE JUST ANNOUNCED SOME MAJOR CUTS THAT WILL HAPPEN IN THE SECOND HALF OF THE YEAR. I THINK WHAT WE'RE GOING TO SEE IS NOTHING BLOW OUT IN TERMS OF CORPORATE EARNINGS, BUT DEFINITELY COMPANIES WATCHING THE BOTTOM LINE AND ANTICIPATING AND MAKING CHANGES AS NEEDED. >> MICHELLE, WE GOT TO TALK ABOUT AI BECAUSE ARTIFICIAL INTELLIGENCE HAS BEEN ONE OF THE HUGE THEMES OF THIS YEAR. AND BITCOIN KIND OF ARRIVED BACK ON THE SCENE RECENTLY AS IT HOVERS AROUND 45,000. WHAT'S YOUR VIEW HEADING INTO THE NEW YEAR? WE GOT EXCITING NEW ASSET CLASSES. IN GENERAL, WHAT ARE YOU EXPECTING FOR STOCKS? >> FOR STOCKS GOING FORWARD INTO 2024, YOU KNOW, WE'RE COMING OFF OF A PRETTY ROUGH YEAR -- MORE THAN A PRETTY ROUGH YEAR IN 2022. WE'VE SEEN A VERY NICE RALLY THROUGHOUT THE YEAR WITH JUST A TOUCH OF VOLATILITY. I WOULD EXPECT THAT WE'RE LOOKING AT A MORE NORMALIZED RETURN IN THE MARKETS. NOT AN S&P 500 AND A 20% RANGE, BUT MUCH MORE NORMALIZED. HIGH SINGLE DIGITS, LOW DOUBLE DIGITS. KIND OF BUSINESS AS USUAL. WHEN WE ARE LOOKING AT WHAT'S HAPPENING WITH INTEREST RATES, IT'S ALSO GIVEN GIVING INDIVIDUALS -- ALSO GIVING INDIVIDUALS A CHANCE TO MOVE TO THE MIXED INCOME MARKET AND STABLE RETURNS. I THINK THAT WILL HAVE AN EFFECT OVERALL ON THE MARKET WHICH IS -- PEOPLE DON'T NEED TO RELY ON EQUITIES TO GET THAT RETURN WHEN YOU'VE GOT BONDS THAT ARE RETURNING 5% TO 6%. SO IT WILL BE MORE OF AN EQUALIZATION AND A BALANCE FOR INDIVIDUALS THAT ARE LONG-TERM INVESTORS. >> MICHELLE, LAST QUESTION HERE. SO YOU DO SEE OPPORTUNITY TO FIX INCOME MARKET. WHERE EXACTLY, MICHELLE? IS IT TREASURIES, CORPORATES, MUNIS? >> IT'S REALLY ACROSS THE BOARD. I THINK THAT EXTENDING DURATION IS REALLY CRITICAL RIGHT NOW. SO THE MUNICIPAL BOND MARKET, THERE ARE OPPORTUNITIES THERE THAT WE HAVEN'T SEEN IN LITERALLY A DECADE. AND SAME THING ULTIMATELY WITH CORPORATES. I THINK ONE OF THE THINGS WE HAVE TO BE THOUGHTFUL ABOUT, WHEN WE'VE BEEN WORKING WITH CLIENTS IN OUR PORTFOLIOS OVER THE LAST COUPLE YEARS, WE'VE REALLY LEANED INTO CORPORATE BONDS. AND WE'VE ALSO LEANED IN TO SOME HIGH YIELD AND HAVE A BIT OF CRDIT RISK THAT IF WE START TO SEE A SLOWDOWN WE'LL NEED TO MAKE A SHIFT ON THAT. AND THAT WOULD -- REALLY RIDING THE CURVE A LITTLE BIT MORE AND MAKING SURE THAT WE'RE MORE AT AN INTERMEDIATE DURATION AND LOCKING IN SOME OF THESE LONGER TERM RATES. >> ALL RIGHT. MICHELLE, WE'RE GOING TO LEAVE IT THERE. THANK YOU SO MUCH FOR JOINING US TODAY FOR THAT INVESTMENT ADVICE. AND HAPPY HOLIDAYS. >> HAPPY HOLIDAYS TO YOU. THANK YOU. >>> NOW LET'S GET TO SOME TRENDING TICKERS IN TODAY'S TRADE. FIRST UP, SHARES OF CARUNA THERAPEUTICS, THEY ARE SURGING TODAY. THAT'S AFTER ANNOUNCING BRISTOL MYERS WILL ACQUIRE IT FOR $14 BILLION. SHARES OF BRISTOL MYERS EDGING HIGHER. THAT'S THE HEADLINE, BRISTOL MYERS GOING TO BUY CAR DUNA, 14 BILLION. CARUNA, SCHIZOPHRENIA DRUG DEVELOPER, COMPANY EXPECTING A DECISION FROM THE FDA BY SEPTEMBER, 2024. REPORTS NOTING THIS DRUG COULD GENERATE AS MUCH AS $4 BILLION BY 2020, AND THE TRANSACTION IT SOUNDS LIKE EXPECTED TO CLOSE FIRST HALF OF NEXT YEAR. >> I DO HAVE COMMENTARY BY THE STREET ON THIS DEAL. CA CANTOR, WHICH RATES THE STOCK NEUTRAL WITH A PRICE TARGET OF 55 SAYS THE DEAL IS, QUOTE, ABSOLUTELY A STEP IN THE RIGHT DIRECTION, AND IT FUELS THE NEUROLOGY AS A GROWTH PILLAR NARRATIVE THAT BMI HAS BEEN PUSHING. ONE MORE BY MIZOULA, KRTX, PRICE TARGET 245. THE DEAL RECEIVING LESS REGULATORY SCRUTINY AND MORE EASILY RECEIVED FTC APPROVAL. HERE'S A QUOTE, GIVEN CURRENT SCARCITY VALUE OF HIGH-PROFILE, HIGH-REVENUE POTENTIAL DE-RISK ASSETS SUCH AS KRTX, WE WOULDN'T RULE OUT THE POSSIBILITY THAT BIDDERS ACCOUNT EMERGE. MORE M&A IN THE SPACE. BEEN A DEARTH THIS YEAR. WE'RE GOING TO BE TALKING MORE ABOUT THAT WITH SOME OF THE GUESTS. WE WANT TO MOVE ONTO SHARES OF ROCKET LAB. THEY'RE TAKING OFF TODAY AFTER WINNING A $515 MILLION U.S. GOVERNMENT CONTRACT. UNDER THE AGREEMENT, ROCKET LAB WILL MANUFACTURE, DELIVER, AND OPERATE 18 SPACE VEHICLES. AND I DO HAVE SOME COMMENTARY ON THIS, AS WELL. LET ME JUST FIND THIS IN MY NOTES HERE. THERE WE GO. HERE'S CITI, STOCK AT NEUTRAL. PRICE TARGET OF $5.25. SAYS HE BELIEVES THE CONTRACT IS FOR A COMMUNICATIONS MISSION GIVEN THE COST PER SATELLITE AND ROCKET LAB'S EXPERTISE IN THE AREA, SAYING IT LOOKS LIKE A FIRM FIXED PRICE AWARD WITH SOME LEVEL OF DEVELOPMENTAL WORK. AND ALSO LIKES RELATED TO THAT IS THE INTEGRATION OF THE PAYLOAD. SO LOTS OF SPACE THEMES GOING ON HERE WITH THIS COMPANY. >> YEAH. BY THE WAY, UNLIKE BRISTOL MYERS, WHICH YOU KNOW IS DOWN ABOUT 30% THIS YEAR, MOST ON THE SIDELINES, ANALYSTS ARE FANS OF THIS ONE, JARED. YOU HAVE 80% WHO COVER THIS NAME SAY YOU SHOULD BUY IT. AND HERE'S YOUR BULLISH TAKE FROM THE TEAM AT STIFLE ON THIS NEW CONTRACT. THEY CALLED IT MEANINGFUL. THEY TOLD THEIR CLIENTS THEY HAVE, YOU KNOW, BASICALLY HAVING A SEPARATE SUBSIDIARY EQUIPPED TO HANDLE NATIONAL SECURITY PROGRAMS MEANS THEY'RE PAYING COMPANIES CREATING DIFFERENTIATION, DRIVING VALUE IN THE MARKET, THEY SAY POISED TO GROW. GIVEN JUST THE INCREASED NEEDS OF THE U.S. GOVERNMENT. STIFLE HAS A BUY ON THIS ONE. PRICE TARGET IS TEN. >> ALL RIGHT. >>> LET'S GO TO WI-FI INTERACTIVE REAL QUICK. WANT TO PULL UP ROCKET LAB AND DO TECHNICAL ANALYSIS. THIS IS FROM THE BEGINNING HERE, AND YOU CAN SEE THIS WAS A SPACK THAT CAME TO MARKET AT $10 A SHARE. TRADING ABOUT HALF OF THAT RIGHT NOW. AND $5 HAS BEEN A FLOOR. WE'VE SEEN A LITTLE BIT OF LIFTOFF HERE. IT'S BEEN ROUGH. AND YOU KNOW, TAKEN AS A WHOLE SPAX, THAT GROUP SEEMED TO HAVE DIED OFF IN 2022 DURING THE NASTY BEAR MARKET. NOT A SURPRISE THERE. BUT IF YOU LOOK AT THE YEAR TO DATE, LOOKS LIKE IT'S IMPROVING QUITE A BIT. >> YEAH. TODAY'S GAIN, NICE JOB. >>> FINALLY, CHECK OUT COIN BASE HERE CLIMBING AFTER A BULLISH CALL FROM JMP. THE FIRM NEARLY DOUBLING ITS PRICE TARGET FOR COIN BASE TO $200 FROM $107. SO THAT'S THE MOVE. THIS IS JMP'S DEVON RYAN SAYING -- FROM AMAZON BECAUSE COIN BASE LIKE AMAZON, HE SAYS, SCATHING IN HIS OPINION TO WHERE THE PUCK IS GOING. RAISES TARGET -- THIS IS A BIG ONE, FROM 107 TO 200. A NICE BIG MOVE THERE. OF COURSE, COIN BASE HAS ENJOYED THIS STAGGERING RUN THIS YEAR. UP ABOUT 400%. THAT'S OBVIOUSLY BITCOIN REBOUNDING ON A BET THAT DARIN GENZLER AND THE TEAM ARE GOING TO GREEN LOT A SPOT BITCOIN ETF. RYAN SAYS HE DOESN'T EXPECT A SMOOTH PERFORMANCE FOR THE INDUSTRY STOCK, BUT THE INDUSTRY'S HERE STAY, HE SAYS, AND WILL BE LARGER OVER THE NEXT YEARS WITH COIN BASE HE ARGUES CONTINUING TO OPERATE AT THE FOREFRONT. >> I'LL TELL YOU WHAT, LET'S GO TO THE WI-FI INTERACTIVE HERE. I'M GOING TO CHART CHAMPION BASE FROM THE IPO. THE IPO MANAGED TO TOP TICK BITCOIN ITSELF IN THE ENTIRE CRYPTO MARKET, AND IT WAS DOWN IN 2022 QUITE A BIT. OF COURSE WE HAD ALL THE BANKRUPTCIES. BUT COIN BASE, FOR ME, HAS BEEN A STORY ABOUT SEC REGULATION. THEY'VE GONE HEAD TO HEAD, TOE TO TOE WITH THE SEC. WE'RE NOT DOING VERY WELL IN '21, '22, COUPLE OF MISSTEPS THERE. BUT SEEMS LIKE GARY GENZLER NOW, AND THE SEC IS ON THE BACK FOOT. >> YEAH. >> LOTS OF OPTIMISM FOR CRYPTO. AND THIS IS THE TIME THAT INSTITUTIONS ARE -- IT SEEMS REAL THIS TIME AS OPPOSED TO BEFORE WHEN BLOCK CHAIN WAS JUST KIND OF AN UNDEVELOPED AND DEFI HAD TO GO THROUGH GROWING PAINS. SEEMED LIKE THE NEXT LEG UP COULD BE THE FINAL INSTITUTIONALIZATION OF COIN BASE AND CRYPTO THAT EVERYBODY'S BEEN WAITING FOR. >> INCHING IF AND WHEN GENZLER GREEN LIGHTS THAT SPOT BITCOIN ETF. IS THAT A POSITIVE CATALYST THAT MOVES THE SPACE HIGHER, OR WE TALKED ABOUT IT SO MUCH -- >> ALL THE NEWS. >> ALL THE NEWS. >> IT COULD BE ANOTHER WAY. I THINK THE FUNDAMENTALS OF BITCOIN AND CRYPTO GOING TO BE ENOUGH TO OVERCOME ANY NEWS. THAT'S A PERSONAL OPINION. >>> WE ARE JUST GETTING STARTED HERE ON "YAHOO! FINANCE LIVE." >>> COMING UP, IN THE ELECTION WE REVEAL WHAT A PRESIDENTIAL ELECTION MEANS FOR YOUR INVESTMENTS. >>> AND A NEW INSTALLMENT OF "GOOD BUY OR GOOD-BYE," TWO SIDE OF THE AUTO ENERGY SPACE AND TELL YOU WHICH STOCKS TO BUY AND WHICH TO AVOID. >>> AND FAKE OZEMPIC. THE FDA SEIZING COUNTERFEIT OZE OZEMPIC. MORE WHEN WE RETURN. >>> A NEW SURVEY FROM TANEO SHOWING OPTIMISM ABOUT DEAL ACTIVITY NEXT YEAR. RESULTS SHOWING 68% OF CEOs AND TOP INVESTORS SEE AN UPTICK IN DEALS NEXT YEAR DESPITE INCREASED REGULATORY PRESSURE, HIGHER COST OF CAPITAL. JOINING US CEO PAUL KHEIRY. GREAT TO SEE YOU. >> THANK YOU. >> THANK YOU FOR BEING HERE. LET ME START WITH THAT STAT, PAUL. IT STICKS OUT. UPTICK IN M&A, NEARLY 70% EXPECT A SIZABLE M&A UPTICK NEXT YEAR WHICH IS INTERESTING BECAUSE YOU THINK THERE'S LENA KAHN AND THE FTC, AMBITIOUS, AGGRESSIVE, HIGHER COST OF CAPITAL. WHAT EXPLAINS THAT? >> A COUPLE OF THINGS. IT'S INTERESTING, THAT TREND IS COMMON ACROSS THE WORLD, NOT JUST IN THE U.S. BUT U.S. HAS SHOWN SOME OF THE HIGHEST SENSE OF CONFIDENCE. I THINK THERE'S A VIEW THAT ACCESS TO CAPITAL WILL BE EASIER NEXT YEAR. INFLATIONARY PRESSURES WILL EASE. ALSO M&A FROM A DEFENSIVE AND OFFENSIVE PERSPECTIVE EXPECTED NEXT YEAR. BEEN A LOT OF -- LOT OF TROPHIES OUT THERE. A LOT OF ASSETS THAT PEOPLE COVET. THERE'S BEEN SOME DOLING OF THE M&A MARKET THIS YEAR WHICH I THINK IS SET TO RELEASE NEXT YEAR. >> YOU DELVE INTO A LITTLE BIT OF WHAT THEY -- WHEN THEY SAY THEY WANT MORE DEAL MAKING, IS IT BECAUSE THEY WANT TO MOVE INTO NEW MARKETS, NEW TECHNOLOGIES, THEY WANT TO ACQUIRE TALENT? >> IT IS ACROSS THE BOARD, JOSH. I THINK WHAT'S INTERESTING IS THAT INVESTORS AND CEOs, AS THEY HAD LAST YEAR IN OUR SURVEY, HAVE A DIFFERENT VIEW ON ECONOMIC OPTIMISM FOR 2024. LAST YEAR YOU COULD ARGUE INVESTORS WERE RIGHT. IF YOU LOOK AT THE DAYS ON THE MARKETS, S&P, YEAR-OVER-YEAR BASIS. THIS YEAR IT FEELS LIKE THERE IS A SENSE OF CAUTION BY CEOs ON NEXT YEAR FROM A MACROECONOMIC PERSPECTIVE. BUT THERE IS -- THERE IS A LOT OF DRY POWDER, THERE IS CONFIDENCE IN ACCESS TO CAPITAL, AND THERE IS A NEED TO MAKE SOME STRATEGIC MOVES IN THE MARKET NEXT YEAR. >> THIS HAS BEEN A YEAR WHERE ARTIFICIAL INTELLIGENCE, AI, HAS BEEN A HUGE THEME. I'M WONDERING WHAT KIND OF CONVERSATIONS YOU'RE HAVING WITH CLIENTS BECAUSE AI'S SO VAST, AND IT'S NOT REALLY NEW. BUT THE WAY IT'S USE SUDDEN NEW, AND THERE'S SO MANY DIFFERENT FACETS OF IT. WHAT ARE YOUR CLIENTS COMING TO YOU AND TALKING ABOUT? >> THIS YEAR, JARED, IS A 20-POINT INCREASE YEAR OVER YEAR ON AI INVESTING. PUTTING NEW AI LINE ITEMS INTO THE SPREADSHEETS FOR BUSINESS PLANNING IN UR II VERSUS -- IN 2024 VERSUS '22 AND '23. THE U.S. IS A HIGHER NUMBER IN TERMS OF INVESTING. THE ALLOCATION OF CAPITAL TO FUTURE OPPORTUNITIES THERE, CEOs, HOWEVER, ANECDOTALLY BELIEVE THEY'RE SOLD A LOT, A LOT WHY THEY NEED AI, BUT NOT CONFIDENT IT'S BEEN ADDRESSED BY THE MARKET IN TERMS OF THE WHY AND THE HOW. HOW IS IT GOING TO DELIVER OUTCOMES, PROVE EFFICACY, HOW IS IT GOING TO IMPROVE THE P&L PERSPECTIVE. THEY'RE BUILDING RESERVE -- RESERVES ON THE COST SIDE, THEY'RE GOING TO INVEST NEXT YEAR. I THINK IT'S UNCLEAR YET AS TO WHETHER THEY'RE HAPPY THAT THEY OFFER AND THE SPREAD OF TECHNOLOGIES THAT THEY'RE CLEAR THAT'S GOING TO DELIVER VALUE FOR THEIR CUSTOMERS. >> ALSO WANT TO GET YOUR TAKE, PAUL, ON ANOTHER ISSUE. WHAT ARE YOU HEARING FROM THE CEOs ABOUT THESE EFFORTS TO DIVERSIFY THE SUPPLY CHANINS NET YEAR? IS IT THAT A POWERFUL TREND? >> IT IS. DEGLOBALIZATION AND SUPPLY CHAIN TEND TO BE IN OUR SURVEY YEAR OVER YEAR INEXTRICABLY LINKED. AND CHINA HAS EMERGED THIS YEAR AS BEING MORE IMPORTANT THAN LAST YEAR AS A KEY CUSTOMER AND A KEY ACCESS MARKET WHICH IS SUGGESTING TO US THAT PREPARATIONS THAT HAVE BEEN MADE IN UNDERSTANDING, PROTECTING, AND INCLUDING RESILIENCY IN A DEGLOBALIZED WORLD IS MORE CONFIDENCE, THEY'RE READY FOR WHATEVER THE DEGLOBALIZED WORLD WILL THROW AT THEM NEXT YEAR. >> DID YOU HAVE LINE OF SIGHT WHEN YOU WERE TALKING ABOUT DIVERSIFYING SUPPLY CHAINS ABOUT WHERE? IS IT ONSHORING? IS IT IN VIETNAM, INDIA? >> IT'S ONSHORING, IT'S UNDERSTANDING WHERE THE POLITICAL DIVIDE MAY BE IN A GEOPOLITICAL TUMULT. IN THE FUTURE AS A CONSEQUENCE WITH THE WEST, HOW IT FACES CHINA. AND YOU SEE MULTIPLE MARKETS THAT HAVE A STRONG ALIGNMENT WITH CHINA. THEY LEVERAGE THE NETWORK, THEY'RE FIRM SELLERS OF THEIR BOND OFFERS TO THE CHINESE MARKET. CHINESE ARE BEING INVESTORS IN THOSE MARKETS. SO FRIEND-SHORING IS MARKETS THAT ARE DEFINITIVELY WESTERN ALIGNED. BUT THE CONFIDENCE YEAR OVER YEAR IS INTERESTING. CHINA WAS MORE OF A BOOGIEMAN MARKET FOR GEOPOLITICAL MACROECONOMIC REASONS. THEY'VE INVESTED SIGNIFICANTLY IN PROTECTING SUPPLY CHAIN AND RESILIENCE. BUT THERE'S AN INCREASED CONFIDENCE THAT CHINA'S MARKET IS NOT A MARKET THEY SHOULD STEP AWAY FROM. >> ARE THERE ANY OTHER MARKETS AROUND THE GLOBE THAT ARE PERHAPS UP AND COMING OR MIGHT BE DEALING WITH SOME CONFLICT, MIGHT NOT BE ON THE SURFACE THE BEST BET SEEMINGLY, BUT UNDER THE HOOD, YOU LIKE THE OPPORTUNITIES THERE? >> I THINK -- YOU MENTIONED AI, JARED, EARLIER. THERE'S A LITTLE BIT OF AN AI DIGITAL DIVIDE CREEPING INTO THE GLOBAL SYSTEM. THE LEVEL OF INVESTMENT ON SIMILAR SIZE COMPANIES IN DEVELOPING VERSUS DEVELOPED WORLD IS STARK CONTRAST. SO I THINK THE OPPORTUNITY PERHAPS SUGGESTS WHAT IS GOING TO BE THE SECOND MOVER EVENT OPPORTUNITY FOR DEVELOPING MARKETS ON AI. >> PAUL, I'LL GET YOU ON THIS. AT TANEO YOU HAVE CLIENTS ALL OVER THE WORLD. ARE THE CONCERNS YOU HEAR, PAUL, ARE THEY DIFFERENT REGIONALLY? ARE YOUR CLIENTS IN EUROPE, WHEN THEY EXPRESS CONCERNS ABOUT NEXT YEAR TO YOU, ARE THEY MUCH DIFFERENT THAN, SAY, THE CEOs YOU'RE TALKING TO HERE IN THE STATES? >> COUPLE OF POINTS THAT'S INTERESTING. SO AS YOU MAY HAVE SEEN, UK-BASED CEOs HAVE SIGNIFICANT ANGST OVER THEIR UK LISTING. ABOUT 30% OF THEM ARE CONSIDERING ENLISTING IN A NEW MARKET WITH U.S. BEING THE LARGEST BENEFICIARY OF THESE CONSIDERATIONS. THAT'S A COUPLE REASONS. PENSION FUNDS, NOT INVESTING AS MUCH HISTORICALLY IN THE MARKETS, A VIEW THAT THE -- THE REGULATORY ENFORCEMENT MARKET IS A LITTLE CONSTRICTIVE. AS A CONSEQUENCE THERE'S A BIG DIVIDE BETWEEN THE UK AND THE U.S. THE SECOND POINT IS THE LEVEL OF BULLISHNESS IN THE U.S. MARKET FROM AN INVESTOR PERSPECTIVE IS SIGNIFICANT YEAR OVER YEAR. AND I WAS LISTENING TO YOUR -- YOU EARLIER TODAY, JARED, THE LAST YEAR OF A DEMOCRATIC TERM ALWAYS REPRESENTS VALUE AND OPPORTUNITY IN THE EQUITY SIDE. AND SO I THINK THERE'S A BULLISHNESS ON THE INVESTOR SIDE AS THEY LOOK INTO THE U.S. MARKET PARTICULAR LIE IN 2024, BUT NOT -- PARTICULARLY IN 2024, BUT NOT SURPRISING IF YOU'RE NOT CEO YOU MIGHT NOT SURE THE SAME BULLISHNESS BECAUSE YOU'RE NOT LOOKING AT THE SPREADSHEET OF HISTORY. YOU'RE LOOKING AT CHANGE IN ADMINISTRATION, WHETHER IT'S A NEW BIDEN ADMINISTRATION OR A NEW REPUBLICAN CANDIDATE. YOU'RE LOOKING AT EXPANSION OR CONTRACTION OF INDUSTRIAL POLICY. YOU'RE LOOKING AT A SOFT LANDING OR OTHERWISE OF THE ECONOMY. YOU'RE THINKING ABOUT POLITICAL DISRUPTION AS NOT JUST A POLITICALLY DISRUPTIVE MOMENT BUT AN ECONOMIC, SOCIAL, AND POLITICAL DISRUPTIVE MOMENT, AS WELL. IT'S FASCINATING. THE PIECE EARLIER WAS FUN. >> I APPRECIATE THAT. LOYAL "YAHOO! FINANCE" VIEWER HERE IN THE MAKING. THANK YOU FOR JOINING US. APPRECIATE YOUR INSIGHTS. PUL KHEIRY, TANEO. >> THANK YOU SO MUCH, HAPPY HOLIDAYS. >> YOU, TOO. >>> THE FDA SEIZING THOUSANDS OF FAKE UNITS OF OZEMPIC. THE DIABETES WEIGHT-LOSS DRUG, AND WARNING THAT THERE STILL COULD BE COUNTER FITS CURRENTLY IN THE U.S. WE HAVE MORE ON THE DETAILS. ANGE? >> THAT'S RIGHT. NOVO M N NOVONORDISK SEEING ATTEMPTS TO GET HANDS ON ANY PRODUCT AVAILABLE INCLUDING COUNTERFEITS. THE FDA NOW HAVING TO INTERVENE AND TAKE THESE OFF MARKET. NOVO NORDISK AND THE FDA LOOKING AT THOUSANDS OF ONE-MILLIGRAM OZEMPIC, TRYING TO FIGURE OUT WHAT THE PRODUCT IS IN THERE. IT HAS BEEN LINKED TO FIVE ADVERSE EVENTS SO FAR. BUT WE DO KNOW THAT THE -- THE GIVEAWAY WAS THE NEEDLES THIS TIME. THE FDA IS WARNING THAT THERE COULD BE SOME ISSUES WITH THOSE NEEDLES. THAT IS THE PROBLEM WITH THE COUNTERFEITS RIGHT NOW. THIS IS AN ONGOING ISSUE. THEY FIRST IDENTIFIED SOME ABOUT A MONTH AGO IN THE U.S. AND PREVIOUSLY IN OCTOBER, SIMILAR ISSUE -- RATHER A DIFFERENT ISSUE BUT ALSO COUNTERFEITS IN THE YOU CAN'T AND THE UK WITH THE ONE-MILLIGRAM DOSES WHERE THE LABELS WERE IN GERMAN. THEY WERE COUNTERFEIT PRODUCTS BEING SOLD. THEY'VE ALSO FOUND OZEMPIC PRODUCTS THAT HAVE INSULIN IN THEM IN THE PAST. SO A LOT -- TO SORT OF DEFINE THE DEMAND THAT WE'VE SEEN FOR THIS BLOCKBUSTER DRUG THIS YEAR. THE FDA AND ITS COUNTERPARTS AROUND THE GLOBE CONSTANTLY HAVING TO CHASE AFTER ALL THESE COUNTERFEIT PRODUCTS FOR THE ENTIRE YEAR. >> ALL RIGHT. A STORY WE'LL KEEP WATCHING. THANK YOU SO MUCH. >>> AND COMING UP, THE INVESTOR GUIDE TO THE 2024 ELECTION. GOING REVEAL WHAT A PRESIDENTIAL ELECTION MEANS FOR YOUR PORTFOLIO. >>>. >>> THE 2024 U.S. PRESIDENTIAL ELECTION IS JUST UNDER A YEAR. AS CANDIDATE BATTLE IT OUT, AI EXPERTS ARE WARNING ON THE POTENTIAL MASSIVE UPSWING IN DISINFORMATION AND MISINFORMATION IN THE CAMPAIGNS. HERE WITH AN INVESTORS GUIDE FOR WHAT 2024 IS OFFER AND WHAT THIS MEANS FOR AI AND SOCIAL MEDIA COMPANIES, LET'S GO TO NOW DAN HOLLY, "YAHOO! FINANCE'S" OWN. WHAT ARE THE DETAILS? >> THAT'S RIGHT. THE AI REVOLUTION IS REALLY SUPERCHARGED COMPANIES AS FAR AS SPENDING AND REALLY JUST GENERATED TONS OF CONVERSATION AS TO THE BENEFITS OF IT. THERE ALSO ARE SOME DRAWBACKS. AND THOSE INCLUDE THE SPREAD OF DISINFORMATION AND MISINFORMATION. PART OF THAT HAS TO DO WITH PEOPLE BEING ABLE TO GENERATE LIFELIKE IMAGES, VIDEOS, AND AUDIO INCREASINGLY OF INDIVIDUALS. AND BASICALLY ALLOWING THEM TO MANIPULATE THE NEWS. SO WE'VE SEEN SOME INSTANCES OF THIS. THERE IS AN IMAGE THAT IT SPREAD EARLIER IN THE YEAR, ABOUT APPEARING TO BE AN EXPLOSION OUT THE PENTAGON. IT SENT SHARES ON WALL STREET SLIDING. THEY QUICKLY RECOVERED, THOUGH, BECAUSE IT WAS CLEAR THAT THIS WAS JUST A FAKE. THE PENTAGON RESPONDED SAYING THERE WAS NO EXPLOSION, EVERYTHING WAS FINE, AND THIS WAS JUST AN AI MANIPULATION. WE ALSO SAW PRIOR TO FORMER PRESIDENT TRUMP'S ARREST IN NEW YORK IMAGES THAT WERE GENERATED OF HIM RUNNING FROM POLICE, BEING GANG TACKLED. WE'VE ALSO SEEN A DEEP FAKE OF VLADIMIR PUTIN SPEAKING TO VLADIMIR PUTIN. SO IT'S EVERYWHERE NOW. SOME OF THE EXPERTS I SPOKE TO SAY WE'RE GOING TO SEE A TSUNAMI OF DISINFORMATION AROUND 2024. SO WHAT DOES THIS MEAN FOR COMPANIES? WELL, SOME OF THE EXPERTS I SPOKE TO SAID, LOOK, IT COMES DOWN TO WHETHER OR NOT THEY HAVE ROBUST TERMS AND CONDITIONS, MEANING THAT THEY SAY THAT WHAT PEOPLE USE THEIR SERVICES FOR HAVE TO BE LAW-ABIDING AND NOT FOR NEFARIOUS PURPOSES. AND IT COMES DOWN TO REPUTATION. SO IF, FOR INSTANCE, SAY MICROSOFT'S PLATFORMS OR OpenA.I.'S OR META'S, GOOGLE'S, AMAZON'S, WHICHEVER, ARE USED TO GENERATE DISINFORMATION, THEN THEY WOULD TAKE A BLACK EYE. NOW DOES THAT MEAN THAT INVESTORS ARE NECESSARILY GOING TO PULL OUT OR THAT CUSTOMERS WOULD NECESSARILY PULL OUT IT DEPENDS ON HOW BIG OF A BLACK EYE THAT REALLY IS. THE FLIP SIDE OF THINGS, THE SOCIAL MEDIA ASPECT OF THIS WHICH WE SAW ISSUES AROUND DURING THE -- THE ATTACK ON THE CAPITOL ON JANUARY 6th WHERE FACEBOOK, EXCUSE ME, META, TWITTER AT THE TIME, THEY PULLED BACK, YOUTUBE PULLED BACK ON SOME OF THE PEOPLE SPREADINGINFORMATION AND MISINFORMATION -- SPREADING MISINFORMATION AND DISINFORMATION AND TRIED TO CLEAR UP THE PLATFORMS. WE SAW ISSUES THERE WITH SHARE PRICES. IT COMES DOWN TO THE MOVES THAT THE COMPANIES MAKE TO PREVENT THIS AND HOW BAD IF IT DOES HAPPEN THE REACTION WILL BE. AND I THINK THAT, YOU KNOW, IF YOU LOOK AT TERMS AND CONDITIONS SOME OF THE BIGGER COMPANIES, THEY LAY OUT PRETTY CLEARLY THAT YOU'RE NOT SUPPOSED TO USE THEIR SERVICES FOR ANYTHING NEFARIOUS AS YOU WOULD IMAGINE THEY WOULD SAY. >> ALL RIGHT. DAN, THANK YOU, SIR, FOR THAT. MERRY CHRISTMAS, DAN. >> MERRY CHRISTMAS. TAKE CARE. >>> THE MARKETS RIGHT AT THE START OF A SANTA CLAUS RALLY INTO THE CLOSE OF 2023. WE'RE LOOKING AHEAD TO NEXT YEAR AND HOW INVESTORS CAN PREPARE THEIR PORTFOLIOS. THEY WERE FOCUSING ON THE PRESIDENTIAL ELECTION. IF HISTORY TELLS US ANYTHING, ELECTION YEARS TEND TO BE SOLID FOR THE MARKETS. EVEN INDICATE WHO COULD WIN THE RACE FOR THE WHITE HOUSE. AS PART OF OUR 2024 INVESTOR GUIDE, WE ASK WHAT DOES THE POLITICAL CYCLE MEAN FOR MARKETS, AND WHAT WILL BE THE BEST PLAY? JEFF BUCKBINDER, FINANCIAL CHIEF EQUITY STRATEGIST AT LPL, JOINS US NOW. GREAT TO SEE YOU. MAYBE JUST -- LISTEN, BIG PICTURE, WALK US THROUGH WHAT THE ELECTION CAN MEAN FOR INVESTORS. LOTS OF ALREADY BALLS IN THE AIR NEXT YEAR. WE'VE GOT THE FED, THE ECONOMY, GEOPOLITICAL RISK, HOW SHOULD INVESTORS THINK ABOUT A PRESIDENTIAL ELECTION? >> YEAH, FIRST, THANKS FOR HAVING ME ON. SO YOU KNOW, CERTAINLY WE EXPECT GAINS NEXT YEAR. THAT WOULD BE CONSISTENT WITH THE HISTORICAL PATTERN. ON AVERAGE IN AN ELECTION YEAR THE S&P 500'S UP ABOUT 7%. NOW THAT PALES IN COMPARISON TO WHAT YOU TYPICALLY GET IN YOUR THREE, THE PRE-ELECTION YEAR AS WE SAW THIS YEAR, AS THE STRONGEST OF THE FOUR YEARS. THE AVERAGE GAIN HAS BEEN 17%, AND WE'RE GOING TO DO CERTAINLY WELL NORTH OF 20. SO SURE, IT'S GOOD, BUT I THINK A LITTLE BIT OF POLITICAL UNCERTAINTY IN GENERAL CREEPS IN, AND YOU HAVE A LITTLE BIT MORE OF A -- OF A CHOPPY MARKET, MAYBE UPWARDLY TRENDING, BUT STILL CHOPPY. THERE'S CERTAINLY FUNDAMENTAL REASONS TO EXPECT A LITTLE BIT OF CHOP AS WE GO THROUGH 2024 WITH VALUATIONS A LITTLE BIT HIGHER. YOU KNOW, THE ECONOMY POISED TO SLOW. I WILL MAKE, YOU KNOW, ONE POINT UP FRONT HERE ABOUT THE ECONOMY, THAT THE -- IF YOU LOOK BACK AT HISTORY, THE ECONOMY IS REALLY THE BIGGEST DRIVER, RIGHT. NOT JUST HOW ELECTIONS TURN OUT BUT HOW MARKETS DO. SO YOU KNOW, IF WE CONTINUE TO HAVE SURPRISES ON THE U.S. ECONOMY LIKE WE'VE HAD IN 2023, THEN NO DOUBT THIS MARKET CAN DO QUITE A BIT BETTER THAN THAT HISTORICAL AVERAGE. >> LET ME ASK YOU ABOUT THE ECONOMY HERE. BIG TALK IN 2023, THIS YEAR HAS BEEN RECESSION, DID NOT MATERIALIZE. BUT WHETHER OR NOT THERE SAY RECESSION CAN BE VERY PREDICTIVE OF WHETHER OR NOT -- OF WHO WINS THE NEXT PRESIDENTIAL ELECTION. WE STILL HAVE A YEAR LEFT -- NOT QUITE A YEAR UNTIL THE ELECTION, BUT ENOUGH TIME FOR SOMETHING TO DEVELOP. COULD YOU TALK ABOUT SOME OF THE STATS SURROUNDING RECESSIONS AND THEIR INFLUENCE ON THE PRESIDENTIAL ELECTION? >> HEAVY INFLUENCE, NO DOUBT. THE RECESSION IS ACTUALLY A PERFECT 17 FOR 17 CALLING ELECTIONS. IF YOU HAVE A RECESSION IN THE TWO YEARS LEADING UP TO A PRESIDENTIAL ELECTION, THE INCUMBENT LOSES. IF YOU DON'T, THE INCUMBENT WINS. SO YOU KNOW, HARD TO SAY WHETHER WE'RE GOING TO HAVE A RECESSION NEXT YEAR. THIS IS MAYBE A COIN FLIP. IF WE DO, THAT'S GOING TO BE A REAL TALL HILL FOR PRESIDENT BIDEN TO CLIMB. NOW IF THERE IS ANY YEAR WHERE YOU WOULD THINK MAYBE A RECESSION COULD BE MILD, MAYBE SOME ONE OFFS, THE UNIQUENESS OF THIS ECONOMIC CYCLE COULD ACTUALLY LEAD TO A SITUATION WHERE YOU HAVE A SHORT, MILD RECESSION, AND BIDEN POTENTIALLY GETS RE-ELECTED. WE'VE SEEN IT THROUGHOUT THIS CYCLE THAT THE POST-PANDEMIC PERIOD HAS BEEN UNUSUAL AND VERY DIFFICULT FOR ECONOMISTS AND STRATEGISTS TO PREDICT. >> AND JEFF, HISTORICALLY SPEAKING, DOES THE MARKET, DO STOCKS, DO THEY TEND TO DO BETTER UNDER REPUBLICANS OR DEMOCRATS? >> YEAH, SINCE WORLD WAR II THEY'VE DONE A LITTLE BETTER UNDER DEMOCRATIC PRESIDENTS, ALTHOUGH IF YOU GO BACK FURTHER THAN THAT, IT ACTUALLY FLIPS. LOOKING AT MODERN HISTORY, THOUGH, UNDER DEMOCRATS. I THINK WHAT'S PROBABLY MORE IMPORTANT IS TO LOOK AT WHETHER YOU HAVE GRIDLOCK. YOU GET A FEW EXTRA POINTS OF RETURNS HISTORICALLY IF YOU'RE IN DIVIDED GOVERNMENT. AND IT LOOKS LIKE THAT'S PROBABLY WHAT WE'RE GOING TO HAVE. NOW THERE ARE A NUMBER OF DIFFERENT WAYS, YOU KNOW, WHERE THIS COULD SHAKE OUT. IF YOU HAVE THE REPUBLICANS POTENTIALLY TAKE THE SENATE, YOU COULD EITHER HAVE THE DEMOCRATS TAKE THE HOUSE OR HOLD THE WHITE HOUSE. YOU COULD GET GRIDLOCK A NUMBER OF DIFFERENT WAYS. THAT CAN TAKE A LITTLE BIT OF THE UNCERTAINTY OUT THAT TEND TO HURT MARKETS LEADING UP TO AN ELECTION. AND THIS TIME IT'S REALLY ABOUT TAX POLICY, I THINK, MORE THAN ANYTHING ELSE. WE'VE GOT THE TRUMP TAX CUTS EXPIRING IN 2025, AND HOW THOSE ARE HANDLED WILL CERTAINLY BE A MEANINGFUL MARKET EVENT. >> COULD YOU JUST BRIEFLY RUN DOWN HOW SOME OF THOSE CHANGES -- YOU SAID PRETTY MUCH AROUND THE CORNER IN 2025, CHANGES, HOW THAT WOULD AFFECT THE AVERAGE INVESTOR. >> SURE. WELL, YOU KNOW, BIDEN SAID HE'S NOT GOING TO RAISE TAXES ON INCOMES BELOW $400,000. BUT INVESTORS OVER THAT WILL SEE TAX INCREASES MOST LIKELY IF BIDEN, YOU KNOW, WINS RE-ELECTION. ALTHOUGH IT CERTAINLY DEPENDS ON WHAT HAPPENS IN CONGRESS. YOU COULD SEE THE INVESTMENT TAX GO BACK UP. YOU COULD EVEN SEE CORPORATE RATES GO UP. SO NO DOUBT THE -- YOU KNOW, THE BIDEN CAMPAIGN IS RUNNING ON HIGHER TAXES ON THE WEALTHY. THAT MESSAGE HAS BEEN CONSISTENT FOR A NUMBER OF YEARS NOW, THEY'RE LIKELY TO REITERATE THE MESSAGE. >> GOT TO LEAVE IT THERE. APPRECIATE SOME OF THESE FUN INSIGHTS YOU HAVE FOR US. JEFF BUCKBINDER. THANK YOU AGAIN. >> THANKS A LOT. AND HAPPY HOLIDAYS. >> YOU, TOO. >>> COMING UP, WE'RE GOING TO BREAK DOWN HOW THE LATEST INFLATION REPORTS WHICH SHOW PRICES COOLING IS ACTUALLY NEGATIVELY AFFECTING PRESIDENT BIDEN'S APPROVAL RATINGS. MORE ON THIS AFTER THE BREAK. >>> SYNOPSIS REPORTEDLY IS IN TALKS TO ACQUIRE ANCIS ACCORDING TOING TO -- ACCORDING TO THE "WALL STREET JOURNAL." >>> A MARKET VALUE OF ABOUT $30 MILLION. THE DEAL WITH SYNOPSIS COULD BE STRUCK EARLY IN 2024. THIS IS INTERESTING. AGAIN, JARED, COMING FROM THE "JOURNAL." IT WOULD MEAN IF IT HAPPENS A BIG, NEW DESIGN SOFTWARE GIANT. ANCIS MARKED ABOUT $30 MILLION, PER THE "JOURNAL," $2 BILLION IN 2022. IN TERMS OF TIMELINE COULD HAPPEN AS EARLY AS NEXT YEAR. SO SOME DEAL -- PRETTY BIG DEALMAKING PERHAPS TO KICK OFF THE NEW YEAR. WE JUST SPOKE WITH TANEO'S CEO AND FOUND MOST EXPECT A PICKUP IN M&A NEXT YEAR. ON ONE HAND, STILL KIND OF A RELATIVELY TOUGH REGULATORY BACKDROP. THE FTC ON THE OTHER HAND, FINANCING COSTS COMING DOWN. MAYBE THE FIRST SIGNS HERE OF WHAT THEY WERE SURVEYING. SYNOPSIS, BY THE WAY, STRONG RUN THIS YEAR, UP ABOUT 70%. ANALYSTS ARE FANS. 14 BUYS, TWO HOLDS, ONE SELL. ITS CUSTOMERS DON'T HURT. >> THE BIG COMPANY, TOO -- BY THE WAY, THE STORY BROKE EARLIER TODAY. WE DIDN'T KNOW THE SUITOR, WHO WAS GOING BUY ANCIS. THERE WAS A BLOOMBERG REPORT CIRCULATING. WE HAVE ANALYSTS' COMMENTARY FROM EARLY IN THE DAY WHO DID NOT HAVE THE PRIVILEGE OF KNOWING WHO THE SUITOR WOULD BE. BUT HERE AT BLOOMBERG, INTELLIGENCE SAYING WITH THE LARGEST MARKET SHARE OF THE SIMULATION SOFTWARE MARKET AT 42%, ANCIS AN ATTRACTIVE M&A TARGET. KEYBANK, WHICH HOLDS SECTOR WEIGHT, ANALYSTS SAYING SYNOPSIS MAY BE THE MOST -- SYNOPSIS, THE EVENTUAL SUITOR, JUST GUESSING, MAY MAKE THE MOST SENSE IN TERMS OF A POTENTIAL BUYER OF ANCIS, GIVEN THE TWO COMPANIES HAVE SHARED OPPORTUNITIES AND OVERLAP IN 3D IC. HOWEVER, SYNOPSIS MAY NOT HAVE THE CASH MEANS FOR THE $28 BILLION. >> YEAH. >> THIS IS NOT A CHEAP COMPANY. IF WE GO TO THE WI-FI INTERACTIVE, I'LL SHOW YOU SYNOPSIS RIGHT HERE. THIS HAS A MARKET CAP OF $80 BILLION. I'M CIRCLING THAT RIGHT NOW. YOU MOVE DOWN TO ANCIS, $31 BILLION. THAT'S A BIG DIFFERENCE. >> SURE IS. AND SYNOPSIS, BY THE WAY, WE SHOULD MENTION, DECLINED TO COMMENT ON THE RUMOR AND SPECULATION. BUT A STORY WE WILL CONTINUE TO COVER HERE. >>> TODAY'S PCE DATA, MEANWHILE, INDICATE INFLATION IS SLOWING. LIKELY CEMENTING RATE CUTS BY THE FEDERAL RESERVE NEXT YEAR. THIS POSITIVE DATA IS NOT HELPING PRESIDENT BIDEN'S APPROVAL RATING AS HE CONTINUES TO FALL BEHIND HIS GOP RIVAL, DONALD TRUMP, IN THE POLLS. OUR OWN RICK NEWMAN HAS BEEN DIGGING THROUGH THAT DATA. RICK? >> YEAH, IT'S JUST -- THE YEAR IS ENDING POORLY FOR BIDEN. YOU JUST SHOWED A MONMOUTH UNIVERSITY POLL RESULT. HE'S DOWN TO 34% APPROVAL IN THAT POLL. THAT'S THE LOWEST OF HIS PRESIDENCY SO FAR. AND I -- I'M KIND OF STRUCK BY THAT. YOU KNOW, HE'S -- LESS POPULAR NOW THAN HE WAS IN THE SUMMER OF 2022 WHICH IS WHEN GASOLINE PRICES HIT $5 A GALLON AND WE HAD THE INFLATION RATE HITTING ITS PEAK OF 8.9%. BASICALLY ALL THE WAY UP TO 9%. SO I MEAN, WE UNDERSTAND THAT WHILE THE RATE OF INFLATION IS COMING DOWN, IT'S NOW AROUND 3%, 3.1, THAT DOESN'T MEAN PRICES ARE COMING DOWN. PRICES ARE STILL HIGH. BUT GAS PRICES ARE COMING DOWN. I MEAN, THEY'RE -- THEY'RE BASICALLY AT NORMAL LEVELS AROUND $3 A GALLON, $3.10 A GALLON, AND BIDEN IS JUST GETTING ABSOLUTELY NO LOVE FROM VOTERS. IT'S LIKE HE CAN DO NOTHING RIGHT. AND I DON'T KNOW IF THIS IS GOING TO IMPROVE IN 2024. >> WELL, LET'S PIVOT NOW TO A STORY THAT'S MAKING THE MOVES IN THE MARKET TODAY, AND THAT IS INVESTORS, THEY ARE BETTING THAT THE GOVERNMENT COULD PUT A PIN IN THE NIPPON ACQUISITION OF U.S. STEEL. WE REMEMBER ALL THE HAY MADE BY PRESIDENT TRUMP BACK IN THE DAY ABOUT PROTECTIONISM AND TARIFFS AND THE STEEL MAKERS WERE FRONT AND CENTER IN HIS CAMPAIGNS. WHAT TOO WE KNOW RIGHT NOW -- WHAT DO WE KNOW RIGHT NOW? >> SO U.S. STEEL HAS BEEN TRYING TO SELL ITSELF. I MEAN, IT THINKS THAT, YOU KNOW, IT WILL JUST DO BETTER FOR SHAREHOLDERS IF THERE'S SOME CONSOLIDATION IN THE INDUSTRY. AND OF COURSE THE BIG LONG-TERM STORY HERE IS THAT CHINA HAS RISEN, AND IT DOMINATES THE GLOBAL STEEL INDUSTRY AND UNDERCUTS AMERICAN PRODUCERS. WE STILL MAKE A LOT OF STEEL IN THE UNITED STATES FOR DOMESTIC CONSUMPTION. SO NIPPON IS A JAPANESE-OWNED COMPANY, JAPAN IS A CLOSE ALLY, SO IT'S NOT LIKE A CHINESE COMPANY WANTS TO BUY U.S. STEEL. THIS WOULD HAVE TO GO THROUGH A GOVERNMENT SECURITY REVIEW NO MATTER WHAT. AND BIDEN HAS NOW WEIGHED IN AND SAYS THIS DEAL REQUIRES SERIOUS SCRUTINY. SO HE DIDN'T SAY IT SHOULDN'T HAPPEN. HE JUST SAID HE'S CONCERNED ABOUT IT. SO THAT MAKES ME THINK THAT THE BIDEN ADMINISTRATION MIGHT NOT ACTIVELY LOBBY AGAINST THIS DEAL, BUT THERE MIGHT HAVE TO BE SOME CONDITIONS THAT IAREN'T CONTAINED IN THE CURRENT AGREEMENT BETWEEN THE TWO COMPANIES. LAST TIME I CHECKED, U.S. STEEL STOCK PRICE NOT AT THE -- WHAT THE DEAL PRICE WOULD BE WHICH IS ABOUT $55. SO IT'S DISCOUNTED FROM THAT, SUGGESTING INVESTORS THINK THERE IS SOME CHANCE THIS COULD FALL THROUGH. SO I THINK THIS IS GOING TO BE A SIGNIFICANT STORY AT THE BEGINNING OF '24. >> WE'LL BE PREPARED TO FOLLOW IT AS EVOLVES AND PROBABLY WILL HEAR A LOT FROM PRESIDENT -- EX-PRESIDENT TRUMP HIMSELF. THANK YOU FOR THAT, RICK NEWMAN. >> BYE, GUYS. >>> AS DEAL FLOW WORKS TO RECOVER FROM THE LACK OF ACTIVITY BY PRIVATE EQUITY FIRMS, A NEW WRINKLE IS ADDED INTO THE MIX. THE FEDERAL TRADE COMMISSION AND JUSTICE DEPARTMENT HAVE SAID NEW MERGER GUIDELINES, AND OUR NEXT GUEST SAYS IT'S SET TO USHER IN THE BIGGEST CHANGES TO THE WAY REGULATORS REVIEW M&A IN THE U.S. IN 40 YEARS. AND HERE TO DISCUSS WE HAVE MITCH BERLIN, EY AMERICA'S VICE CHAIR OF STRATEGIES AND TRANSACTIONS. AND THANK YOU FOR JOINING US HIRE, MITCH. THIS DOES SEEM LIKE A BIG DEAL. MIGHT FLY OVER THE HEAD OF A LOT OF PEOPLE, M&A, SO WHAT. WE'RE TALKING TRILLIONS OF DOLLARS OVER THE YEAR IN POTENTIAL TRANSACTIONS. AND NOT THE LEAST OF WHICH WE SEE ALL THE ANTITRUST REGULATIONS GOING ON WITH BIG TECH. JUST BREAK IT DOWN FOR US, WHY IS THIS IMPORTANT? >> SURE. THANKS FOR HAVING ME. THESE ARE THE LARGEST CHANGES TO THE M&A GUIDELINES IN THE LAST 40 YEARS. IT'S IMPORTANT TO NOTE, REMEMBER, THESE ARE GUIDELINES, NOT LAWS. BUT THEY DO GIVE US INSIGHT ON HOW THE FTC AND DOJ ARE GOING TO BE EVALUATING DEALS GOING FORWARD. SO A COUPLE CHANGES. ONE IS THEY'VE LOWERED THE THRESHOLD BY WHICH THEY WOULD CONSIDER A DEAL TO BE ANTI-COMPETITIVE. SO IN THE PAST, THE THRESHOLD AND CONSOLIDATION INDEX WOULD BE A 200-POINT CHANGE, THEY'VE LOWERED THAT TO 100-POINT CHANGE. MORE DEALS WILL COME UNDER THEIR SCRUTINY. TWO IS THEY'RE LOOKING AT ROLLUPS. THIS WILL IMPACT PRIVATE EQUITY. SMALL DEALS THAT ULTIMATELY CAN BE ROLLED UP AND BECOME ANTI-COMPETITIVE IS ANOTHER AREA THEY'RE GOING TO BE LOOKING AT. SO AS PEs DO ROLLUP DEALS, THIS IS GOING TO IMPACT THEM. THEY'RE GOING TO HAVE TO PREPARE TO BE -- TO BE PREPARED TO DISCUSS THE RATIONALE FOR THE DEAL AND THAT THE DEALS ARE NOT ANTI-COMPETITIVE WITH FTC. AND THEN THE OTHER CHANGE IS REALLY LOOKING AT TECHNOLOGY COMPANIES, SPECIFICALLY COMPANIES THAT HAVE AN OPPORTUNITY TO DOMINATE A PLATFORM OR CRUSH A SMALL COMPETITOR COMING INTO THE MARKET TO KEEP THEM FROM COMPETING AGAINST THEMSELVES AND LIMITING R&D AND ADVANCEMENTS IN TECHNOLOGY. THE LAST CHANGE IS REALLY AROUND THE AMOUNT OF DOCUMENTATION THAT CAN NOW BE REQUIRED BY THE FTC AND DOJ. AND SO WE'RE EXPECTING THIS TO INCREASE THE DEAL TIMELINE BY ABOUT TWO MONTHS IN TERMS OF NOT ONLY ACCUMULATING THAT INFORMATION BUT THEN THE FTC'S TIM TIMELINE TO REVIEW THAT INFORMATION, AS WELL. >> SO MITCH, BOTTOM LINE, GIVEN THESE GUIDELINES, WHAT'S YOUR ADVICE TO EXECUTIVES, TO CEOs LOOKING TO GET DEALS DONE IN 2024? >> A FEW THINGS. TELLING TO PLAN EARLY. IT WILL TAKE LONGER TO GET DOCUMENTATION, START EARLIER, GATHER INFORMATION. COME UP WITH DIFFERENT SCENARIOS. IF YOU HAVE TO DIVEST OF ASSETS AND BUSINESSES YOURSELF OR THROUGH THE TARGET, HOW DOES THAT CHANGE YOUR VALUATION MODEL, HOW DOES THAT CHANGE WHAT YOU'RE WILLING TO ULTIMATELY PAY FOR THAT TRANSACTION, AND WHAT ARE DIFFERENT SCENARIOS THAT YOU CAN PLAY WITH IF YOU CONTINUE TO GET PUSHBACK FROM THE FKC. PLAN EARLY, AND -- FTC. PLAN EARLY, AND BE FLEXIBLE IN WHAT YOU'LL DO IN TERMS. STRUCTURING THAT DEAL. >> THE UNITED STATES IS DIFFERENT THAN A LOT OF COUNTRIES IN THE WAY ANTITRUST AND MATERNALERS AND -- MERGERS AND KWIACQUISITIONS ARE REGULAT. WE HAVE THE DOJ, DEPARTMENT OF JUSTICE, ONE WILL TAKE THE LEAD IN A BIG, HIGH-PROFILE CASE. THEY SWITCH OFF. I'M WONDERING IF THIS NEW -- THESE NEW REGULATIONS DO ANYTHING TO KIND OF DELINEATE, MAYBE INCREASE THE NUMBER OF BLACK LINES INSTEAD OF THE GRAY AREA WHERE YOU HAVE JUST THIS REGULATORY OVERLAP AND IT SEEMS A LITTLE MESSY. >> I'M NOT -- I DON'T HAVE AN OPINION ON IF THAT'S GOING TO CHANGE. WHAT WE DO EXPECT IS THAT THERE WILL BE GREATER SHARING OF INFORMATION, NOT JUST WITH FTC AND DOJ BUT WITH OTHER GOVERNMENT ORGANIZATIONS TO UNDERSTAND WHAT THE IMPACTS ARE ON THE LABOR MARKET AND OTHER PARTS OF THE ECONOMY. >> AND MITCH, AHEAD TO 2024 WHEN YOU LOOK AT DEALMAKING, ARE THERE CERTAIN SECTORS, MITCH, SHOULD BE LOOKING TO SEE MORE ACTIVITY THAN OTHERS, TECHNOLOGY OR ENERGI? >> WE ARE. SO TECHNOLOGY AND ENERGY, LIFE SCIENCES, THESE ARE ALL AREAS WE'RE EXPECTING A PICKUP IN M&A. TWO REASONS. ONE IS IN GENERAL WE EXPECT A PICKUP IN M&A AS THE COST OF CAPITAL COMES DOWN WITH THE RECENT ANNOUNCEMENT THAT WE CAN EXPECT THREE RATE CUTS NEXT YEAR. THAT CERTAINLY HAS STIMULATED ACTIVITY. BUT WHEN YOU LOOK AT THOSE THREE SECTORS, WHAT MAKES THEM UNIQUE IS THAT THERE HAS BEEN A DECREASE IN THE OVERALL MULTIPLE, AND SO YOU HAVE A -- A NARROWING OF THE BID ASK APP WITH A LOWER MULTIPLE AND A LOWER COST OF CAPITAL COMBINED. THAT WOULD SUGGEST THAT THE THREE SECTORS ARE GOING TO CONTINUE TO DO DEALS AND PROBABLY BE THE MOST ACTIVE IN THE MARKET. AND IN ADDITION TO THAT, LIFE SCIENCES COMPANIES HAVE STRONG BALANCE SHEETS. WE JUST SAW A DEAL ANNOUNCED EARLIER TODAY THAT WOULD BE AN ALL-CASH DEAL FOR LIFE SCIENCES COMPANIES WHICH FURTHER SUPPORTS THAT THESE COMPANIES WITH STRONG BALANCE SHEETS ARE CONTINUING TO DO DEALS. >> WHEN WE THINK ABOUT TECH AND THE GOVERNMENT, IT'S ARGUABLY DIFFICULT FOR THE GOVERNMENT TO COME IN AND REGULATE THE ARTIFICIAL INTELLIGENCE ALGORITHMS THAT COMPANIES ARE DEVELOPING AS PART OF THEIR BUSINESS. WE TALK ABOUT TAKEOVERS. IT SEEMS LIKE THE GOVERNMENT HAS BEEN STUCK BEHIND THE EIGHT BALL A COUPLE OF TIMES IN THE PAST. YOU COULD ARGUE THAT THE -- WITH BENEFIT OF HINDSIGHT THAT FACEBOOK'S ACQUISITION OF, FOR INSTANCE, INSTAGRAM FOR $1 BILLION, THAT WAS AN EXAMPLE OF A WAY WHERE THE REGULATORS FELL BACK AND DIDN'T ANTICIPATE THE DOMINANCE BY FACEBOOK AS IT WOULD EVENTUALLY. I'M WONDERING IF THERE'S ANYTHING NEBULOUS LIKE THAT IN THE ARTIFICIAL INTELLIGENCE REGION OR ARENA WHERE PEOPLE ARE WORRIED ABOUT THE GOVERNMENT BEING ABLE TO REGULATE A LOT OF THIS NEW TECHNOLOGY THAT'S INFILTRATING OUR LIVES. >> YEAH. I THINK WITH THE GOVERNMENT IS LOOKING FOR THE BUSINESSES TO SELF-REGULATE. SO YOU'VE SEEN A LOT OF THESE LARGE TECH COMPANIES TEAM TOGETHER TO HELP SELF-REGULATE. BUT WITH REGARDS TO WHAT THE GOVERNMENT IS SPECIFICALLY DOING TO REGULATE AI AND THE SORT OF THREATS OF HAVING AUTOMAIC INTELLIGENCE WITHOUT A CONSCIENCE, DOING THINGS THAT MAY NOT BE IN THE BEST INTERESTS OF THE ECONOMY OR HUMAN INTEREST IS SOMETHING THAT I THINK THE GOVERNMENT'S HOPING THE BUSINESSES WILL SELF-REGULATE. I IMAGINE AT SOME TIME THEY'LL HAVE TO JUMP IN, AS WELL. >> ALL RIGHT. MITCH BERLIN, THANK YOU SO MUCH FOR YOUR TIME, YOUR INSIGHT TODAY. APPRECIATE IT. >> THANKS FOR HAVING ME. >>> COMING UP, CLOSING BELL ON WALL STREET. WE'RE CHECKING IN ON THE LATEST MARKET MOVES AND THE TOP TRENDING TICKERS. STAY TUNED. [ BELL ] [ CHEERS ] >>> YOU ARE WATCHING THE CLOSING BELL ON WALL STREET. LET'S DO A QUICK CHECK OF THE MARKETS HERE. LOOKING AT THE WI-FI INTERACTIVE, THE DOW ENDING THE DAY IN THE RED, BUT ALL MAJORS PLUS THE RUSSELL 2000 GOING TO END THE WEEK IN THE GREEN. YOU SEE THE RUSSELL 2000 UP 93 BASIS POINTS FOR THE DAY. NASDAQ UP ABOUT 19. FOR THE WEEK, UP 1.21%. AND WANT TO GET A CHECK ON THE SECTOR ACTION. IT'S BEEN ALL ABOUT THE STAPLES TODAY, UP .75% FOLLOWED BY MATERIALS AND HEALTH CARE WITH ONLY CONSUMER DISCRETIONARY IN THE RED. AND LET'S JUST GET A QUICK CHECK ON THE WEEK IN MARKETS. HERE'S COMMUNICATION SERVICES WITH META AND ALPHABET. THAT IS THE WINNER, UP 2.2%, AND ONLY ENERGY, ENERGY IS THE OTHER SECTOR THAT IS OUTPERFORMING. WE'VE GOT FOUR IN THE RED THERE, TO THE WAY DOWN. WE ARE LEADING WITH UTILITIES, JOSH. >> ALL RIGHT. >>> NOW LET'S LOOK, AS WELL, ESTIMATE OF THE TOP TRENDING TICKERS TODAY. WE'RE WATCHING SHARES OF TEN CENT TAKING A HIT AFTER CHINA ANNOUNCES NEW REGULATIONS TARGETING SPENDING AND ENGAGEMENT ON ONLINE GAMES. THAT WAS A HEADLINE HERE. THE STORIES, CHINESE AUTHORITIES APPARENTLY STEP IN, NEW MEASURES TO LIMIT PLAYERS' SPENDING ON VIDEO GAMES. INVESTORS GET NERVOUS. YOU SAW SOME NAMES LIKE TEN CENT, TAKING IT ON THE CHIN. THE DRAFT RULES INCLUDE THINGS LIKE THE ELIMINATION OF REWARDS FOR DAILY LOG-INS, ELIMINATING HIGH-PRICED TRANSACTIONS OF VIRTUAL SYSTEMS ARE THROUGH AUCTIONS. SOME VIEWERS LIKE IN TAKE TWO OR EA MAY BE WONDERING, OKAY, WHAT'S MY EXPOSURE THERE. MICHAEL PACTER AT WEBB BUSH SAYS RELAX, THIS NEWS SHOULD BE LARGELY IMMATERIAL TO THE OVERALL PERFORMANCE OF WESTERN VIDEO GAME PUBLISHERS. >> I WAS FOLLOWING THE STORY THIS MORNING, AND A U.S. ETF CALLED BETZ WAS IN THE GREEN. CLEARLY THIS IS A REGIONAL ISSUE. QUICK ON THE WI-FI INTERACTIVE, THERE IS SOME SPILLOVER. YOU HAVE TEN CENT, THE STOCK DOWN 9%. THE OTC MARKET TRADING, MIGHT BE ON DELAY. OWNERSHIP ON TEN CENT IS DONE BY PROSIS. THEY HAVE A BIG MATERIAL HOLDING, DOWN 11% TODAY. AND THEN HERE IS ANOTHER ONE, NETTIE'S. THAT STOCK IS DOWN 16%. AND THE STOCK IS STILL UP ABOUT 20% YEAR TO DATE. >>> LIONSGATE ANNOUNCING PLANS TO SPIN OFF ITS STUDIO BUSINESS IN A DEAL VALUING BUSINESS AT $4.6 BILLION. THE TRANSACTION, HOWEVER, WILL NOT INCLUDE THE STARS PLATFORM WHICH WILL CONTINUE TO BE OWNED WHOLLY BY LIONSGATE. AND I HAVE AN INTERESTING COMMENTARY HERE BY SEAPORT, RATES THE STOCK OF BUY, LIOO LIONSGATE SAYS IT GIVES INVESTORS THE STARS MEDIAIA NETWORKS FOR FREE VERSUS ESTIMATES OF $1.6 BILLION TO $1.8 BILLION. I'VE BEEN TRYING TO GET STARS FOR FREE FOR YEARS. IT'S PIGGY BACKING THE WHOLE NETFLIX THING. >> IT'S INTERESTING. LIONSGATE, ENTERTAINMENT MERGES ITS STUDIO BUSINESS, BLANK CHECK COMPANY, SCREAMING EAGLE, TRADES ON THE NASDAQ. DEAL VALUE -- LOOKS AROUND $4.6 BILLION INCLUDING DEBT. PORTFOLIO CONTENT, BY THE WAY, PROPERTIES LIKE "HUNGER GAMES," "TWILIGHT" SAGA, "JOHN WICK" -- >> ALL SEVEN OF THEM. >> DEALS OCCUR IN THE SPRING OF NEXT YEAR AT WHICH POINT ACCORDING TO REPORTS HERE, L LIONSGATE WOULD OWN 87% OF TOTAL SHARES AND SCREAMING EAGLE WOULD OWN ABOUT 13%. AND LIONSGATE ANDED TO MUCH PROCEEDS OF ABOUT $350 MILLION FROM THE MERGER. AND WE KNOW THERE'S BEEN A LOT OF TALK REPORTING, HOT TALK FOR SOME TIME ABOUT THIS. DIFFERENT OPTIONS, YOU SELL THE DIVISIONS, SPIN THEM OFF. NOW AT LEAST WE HAVE A DECISION HERE. >> YEAH. THE MEDIA BUSINESS WAS JUST MADE FOR M&A, WASN'T IT? >> THAT'S WHAT WE'RE THINKING HEADING TO 2024. WE'LL SEE. >>> COMING UP, A NEW INSTALLMENT OF "GOOD BUY OR GOOD-BYE" COMING UP AFTER THE BREAK. . IT IS A BIG, NOISY UNIVERSE OF STOCKS OUT THERE. WELCOME TO "GOOD BUY OR GOOD-BYE." BROUGHT TO YOU BY E-TRADE FOR MORGAN STANLEY. OUR GOAL, TO HELP CUT THROUGH THAT NOISE AND NAVIGATE THE BEST MOVES FOR YOUR PORTFOLIO. TODAY WE'RE LOOKING AT TWO SIDES OF THE AUTO ENERGY SPACE, WE FOCUS ON OIL AND EVs. OIL FUTURES ENJOYING THE BIGGEST WEEKLY GAINS IN TWO MONTHS, WHEREAS EV MAKERS ARE SLIPPING ON SOME GEOPOLITICAL TRADE TARIFFS, AS WELL AS WANING DEMAND. SO WHAT'S THE BEST WAY TO PLAY IT? I AM HERE WITH ROBERT SHINE, FRANKIE SHINE WEALTH MANAGEMENT. SO YOUR STOCK TO BUY HERE IS OXIDENTAL PETROLEUM. AND WE CAN SEE THIS HAS BEEN A CHOPPY YEAR. THIS IS YEAR TO DATE. WE'VE SEEN SOME HIGHS AND LOWS HERE. TELL US ABOUT THIS PICK. >> WE LIKE OXI. IT'S BEEN CONSOLIDATING AS WE'VE SEEN OIL. BUT YOU KNOW, OIL'S CONSOLIDATED. WE BELIEVE, WE THINK THE SETUP FOR 2024 IS GOING TO BE BETTER FOR OIL. BUT THAT BEING SAID, OXI CAN DO WELL EVEN IF OIL DOESN'T DO WELL. THEY RECENTLY JUST HAD ANOTHER -- BASICALLY ACQUISITION EARLIER THIS YEAR, AND THAT'S GOING TO ADD TO SORT OF THEIR LAND GRAB, IF YOU WILL, THE REAL ESTATE OF WHAT THEY OWN HERE, THE PERMIAN BASE HERE. YOU KNOW, WE SAW SORT OF A DOUBLE BOTTOM IN THE CHART EARLIER ON OXI. AT THE SAME TIME, YOU'RE LOOKING AT INVESTING WITH WARREN BUFFETT, 28%. HE ANNOUNCED THE TOTAL ACOMLATION OF SHARES. WITH -- ACCUMULATION OF SHARES. WITH THE SETUP FOR NEXT YEAR OF OIL, WE BELIEVE AND, YOU KNOW, THE GEOPOLITICAL TENSIONS, I THINK OXI IS THE WAY TO GO. >> YEAH. I READ REPORTS ABOUT THE CEO JET-SETTING TO OMAHA TO SPEAK WITH THE ORACLE HIMSELF. WHAT DO YOU LIKE ABOUT THIS STOCK? WHAT ELSE BESIDES THE ATTRACTIVE VALUATION? >> AGAIN, THE TWO-YEAR CONSOLIDATION NOW. WE HAVEN'T SEEN THIS RIGHT NOW, AND THE RISK-REWARD MOVING FORWARD. ALSO IF YOU THINK ABOUT IT, YOU WANT TO BROADEN YOUR PORTFOLIO. WE'RE SEEING THAT THE MARKETS ARE NOW CONTINUING TO BROADEN OUT. SECTORS LIKE ENERGY HAVEN'T PERFORMED THIS YEAR. WE BELIEVE THAT REALLOCATE YOUR PORTFOLIO, DON'T JUST OWN THE MAGNIFICENT SEVEN. SELL TO THE STRENGTH AND THEN REBALANCE INTO SOME SECTORS THAT WE BELIEVE COULD ACTUALLY DO QUITE WELL NEXT YEAR. >> ALL RIGHT. AND ON THE INFLATION FRONT, BREAK EVENS TEND TO TRADE WITH OIL AND GETTING INTO SOME BOND -- WONKY STUFF THAT WE DON'T HAVE TO. BUT DEFINITELY OIL IS ON THE MIND OF INVESTORS INASMUCH AS IT AFFECTS THE PRICE AT THE PUMP. HOW DOES THIS CORRELATE? >> YEAH. I MEAN, THE SENSITIVITY, THE RISK MOVING FORWARD WOULD BE ULTIMATELY THE GEOPOLITICAL OR -- THE GLOBAL ENVIRONMENT OF THE CONSUMER, RIGHT. SO IF THE U.S. CONSUMER AND THE GLOBAL CONSUMER SORT OF JUST RUN OUT OF GAS, IF YOU WILL, FOR 2024, AND ALL OF THE FED RATE HIKES ARE, YOU KNOW, HITTING THE CONSUMER POCKETBOOK, THAT COULD SLOW DOWN CONSUMPTION. THAT IS A RISK OUT THERE AS INVESTING THERE'S ALWAYS THE RISK, THE OTHER SIDE OF THE TRADE. BUT I THINK LONG TERM INVESTORS NEED TO LOOK AT A COMPANY LIKE THIS, INVEST WITH WARREN BUFFETT, I THINK YOU'LL BE FINE. >> HOW DOES INVESTING WITH WARREN BUFFETT GO WRONG? I'M SEEING THE RECESSION -- THE BIG "R" WORD THERE. >> EXACTLY WHAT WE JUST DESCRIBED. THE RECESSION RISK. MOVING FORWARD. >> ALL RIGHT. LET'S MOVE ON BECAUSE AT THE OTHER SIDE OF THE SCALE WE HAVE LUCID GROUP. ONE STOCK THAT YOU'RE AVOIDING. LOOK AT THE CHART HERE. WE'VE HAD -- IT'S BEEN VOLATILE, AND I THINK FROM THE ULTIMATE HIGHS, IT'S DOWN JUST AN INCREDIBLE PERCENTAGE. >> THIS IS A GOOD BUY MEANING WE DON'T OWN IT, WE'VE NEVER OWNED IT FOR CLIENTS. WE LIKE THE ENERGY SPACE. THE EV SPACE, THIS IS A TOUGH ONE. RIGHT NOW, EVEN IF YOU LOOK AT THE STOCK, YOU KNOW, THERE'S A LOT OF SORT OF NEGATIVE NEWS SURROUNDING IT. NUMBER ONE, THE CFO JUMPED, YOU KNOW, UNEXPECTEDLY EARLIER LAST MONTH. WE ALSO HAVE -- AND THE SAME TIME THE EV SLOWDOWN THAT YOU'RE SEEING, AND SO THE PRODUCTION SORT OF LUCID. THEY WERE GOING TO DELIVER 10,000 UNITS, AND THEY HAD TO WALK THAT BACK TO 8,500, OKAY. NOW THEY'RE ALSO NOT BEATING OR MEETING TO THEIR EXPECTATIONS, AND -- >> THE BURN RATE -- >> THEY COULD BE OUT OF CASH WITHIN A YEAR. THIS TIME NEXT YEAR. ULTIMATELY, THE GOVERNMENT IS -- THEIR BACKER, $1.8 BILLION EARLIER THIS YEAR. HOW LONG DOES THAT LAST? AND AGAIN, YOUR COMPETITOR, YOU'RE LAST TO THE PARTY. IT COULD BE A GREAT PRODUCT, IF YOU WILL, BUT IT'S NOT A GREAT STOCK TO OWN. THAT'S ONE OF THE THINGS WHERE IF YOU HAVE TESLA THE 800-POUND GORILLA HANGING OUT THERE, IT'S GOING TO BE HARD TO KEEP TRACK. THEN THE CFO EVEN SAID -- CEO SAID, LISTEN, WE TONIGHT HAVE THE ENTRY LEVEL IN PLAY UNTIL 2030. THAT'S ALSO GOING HELP THEM IF THE CONSUMERS HIT AND THEY'RE STILL LOOKING FOR THE EV SPACE, THEY STILL HAVE TO STRETCH HIGH FOR THE LUCID HIGH-END CARS. FOR 2024, A GOOD BUY. >> NOW DOES THIS REERS IS TO THE UP-- REVERSE TO THE UPSIDE. >> HOW DOES LUCID BECOME A GOOD POTENTIAL BUY? >> YOU DID SEE A LITTLE BIT OF REVERSAL LAST FEW WEEKS. AND A SHORT RECOVERY. RIGHT? AND SO, AGAIN, IF YOU'RE IN THAT SPACE AND YOU LIKE SORT OF THINLY TRADED MARKETS WITH -- YOU KNOW MAYBE, YOU KNOW, AREAS WHERE PEOPLE JUST PILE IN AND TRY TO DRIVE UP THE STOCK -- >> SHORT-TERM PUNTER MAYBE. BUT NOT FOR THE LONGER TERM. >> NOT FOR FAINT OF HEART AND NOT FOR THE TRUE INVESTOR. AND IF YOU'RE A SERIOUS INVESTOR YOU'RE GOING TO ALONG TO OTHER SECTORS AND HIGHER QUALITY COMPANIES. >> IF THE ONLY THING TO TURN A COMPANY AROUND IS A SHORT RALLY AND PERHAPS MORE GOVERNMENT HANDOUTS, I DON'T KNOW ABOUT THAT ONE. BUT TO RECAP, ALL RIGHT, YOU'RE TELLING INVESTORS TO BUY OXIDENTAL PETROLEUM BASED ON THE STOCK'S ATTRACTIVE VALUATION, THE REWARD POTENTIAL, AND SUPPLY CHAIN AND INFLATION HEADWINDS TURNING INTO TAILWINDS IN THE NEW YEAR. ON THE OTHER SIDE HERE, YOU'RE SAYING AVOID LUCID GROUP BECAUSE OF ITS WEAK FINANCIALS, CASH BURN, AND DIFFICULTIES FACING THE ENTIRE EV INDUSTRY. ROBERT SHINE, THANK YOU FOR STOPPING BY. THANK YOU FOR WATCHING "GOOD BUY OR GOOD-BYE." THAT'S GOING TO DO IT ALL FOR US TODAY AT "YAHOO! FINANCE LIVE." BE SURE TO COME BACK ON TUESDAY AT 3:00 P.M. FOR ALL OF YOUR COVERAGE LEADING UP TO AND AFTER THE CLOSING BELL. >>> THANK YOU SO MUCH FOR JOINING ME TODAY. AND CONGRATULATIONS ON WINNING "YAHOO! FINANCE'S" COMPANY OF THE YEAR. IT MUST BE OBVIOUS WHY YOU GOT THIS THIS YEAR. WHAT A RUNAWAY SUCCESS FOR THE COMPANY. TELL ME ABOUT HOW YOU'RE FEELING ABOUT IT. >> IT'S OBVIOUSLY A GREAT HONOR TO GET THAT PRESTIGIOUS PRIZE. AND IN MANY WAYS, IT'S A GOOD PICTURE OF A FANTASTIC YEAR FOR NOVO NORDISK. A NUMBER OF YEARS WHERE WE'VE SEEN A VERY BIG GROWTH AND BASED ON REALLY INTERESTING AND FASCINATING THINGS WE'VE BEEN DOING FOR MANY, MANY YEARS. WE ARE PLEASED TO BE IN THIS WONDERFUL SPOT. >> ABSOLUTELY. AND THIS IS, OF COURSE, BECAUSE OF OZEMPIC, WEGOVY, THE GLP1 PRODUCTS THAT HAVE HAD ASTOUNDING WEIGHT-LOSS RESULTS FOR PEOPLE. IT'S FUNNY TO ME BECAUSE, YOU KNOW, OZEMPIC WAS APPROVED IN 2017. WEGOVY IN 2021. ARE YOU SURPRISED BY THE FACT THAT A COUPLE YEARS AFTER OR SEVERAL YEARS AFTER THE APPROVAL YOU'RE SUDDENLY SEEING THIS DELAYED SUCCESS? >> IT'S A GREAT QUESTION BECAUSE WE HAVE BEEN RESEARCHING THIS FOR MANY DECADES. WE HAVE GONE -- RESEARCHED FOR MORE THAN 25 YEARS. WE'VE ALL ALONG FELT IT WAS A MEANINGFUL FOCUS AREA FOR US TO HAVE, BEING A LEADER IN DIABETES CARE AND KNOWING THAT MANY WHO DEVELOP TYPE-TWO DIABETES THEY DEVELOP IT BECAUSE OF OVERWEIGHT. SO WHY TREAT THE DISEASE IF YOU CAN PREVENT IT BY ADDRESSING THE UNDERLYING CAUSES. WE KNOW FOR MANY YEARS THE MEDICINE WAS NOT WIDELY USED AND THEY WERE NOT ALL DELIVERING UP AGAINST PATIENTS AND PHYSICIANS' EXPERIENCE. WE SAW WITH THE LATEST INNOVATION THAT WE HAD FOR THE FIRST TIME MET THOSE EXPECTATIONS. AND A LOT OF DISCUSSION WAS ONGOING ABOUT, OKAY, NOW THERE'S FINALLY AN EFFICACIOUS TREATMENT FOR PEOPLE WITH OBESITY. AND THEN SUDDENLY THE WHOLE MARKET TAKES OFF, AND THAT'S REALLY FASCINATING. ALSO COME TO A LOT OF HARD WORK BECAUSE WE HAVE TO SCALE UP AND RAMP UP THE MANUFACTURING LIKE WE HAVE NEVER DONE BEFORE. BUT IT'S ALL REALLY EXCITING, AND I FEEL SO PROUD ON BEHALF OF ALL THE GREAT COLLEAGUES AND REALLY COMMITTED ON -- IT'S REALLY A CREDIT GETTING THIS PRIZE IS REALLY A CREDIT TO ALL OF THOSE WHO GO TO WORK EACH AND EVERY DAY FOCUSED ON HELPING PATIENTS. >> YEAH. I'M SO GLAD YOU BROUGHT UP THE MANUFACTURING. YOU'RE INVESTING A LOT IN THAT. ABOUT $4 BILLION FOR THE UPCOMING YEARS TO EXPAND MANUFACTURING. ALMOST DIRECTLY AS A RESULT OF THIS. BUT DO YOU FEEL YOU MAY BE OVERINVESTING CONSIDERING THAT THERE ARE COMPETITORS COMING DOWN THE PIKE? THERE ARE SO MANY OTHERS THAT ARE GOING TO BE IN THE SPACE SOON. DO YOU FEEL LIKE YOU'RE ON THE RIGHT TRACK WITH THIS? >> I BELIEVE WE ARE RAMPING UP AS NEEDED, AND THE THING ABOUT IT, THE W.H.O. PREDICTS BY 2030 THERE WILL BE A BILLION, A BILLION PEOPLE LIVING WITH OBESITY. AND SO FAR WE'RE JUST SCRATCHING THE SURFACE OF WHAT THAT MEANS IN TERMS OF BRINGING THEM EFFICACIOUS MEDICINES. IN THE U.S., THERE'S MORE THAN 100 MILLION WITH BMI ABOVE 30. SO THERE IS -- THERE'S ROOM FOR COMPETITION, THERE'S ROOM FOR CHOICE. AS LONG AS PRODUCTS STAY SAFE AND THEY GET, SAY, WELL ABOVE 15% IN WEIGHT LOSS, I THINK YOU CAN HAVE A SERIOUS PLAY. AND WE HAVE A VERY STRONG PIPELINE COMING. WE ARE ALREADY NOW IN LATE STAGE DEVELOPMENT OF OUR NEXT-GENERATION PRODUCT. WE KNOW WHAT IT -- WILL BE MOVING INTO THE PIPELINE IN THE COMING YEARS IN TERMS OF EVEN STRONGER PRODUCTS. SO FOR US THIS IS A LONG TIME -- A LONG-TERM JOURNEY OF GETTING TO MORE AND MORE PATIENTS. AND I THINK WE HAVE MAYBE ONE OF THE BEST OPPORTUNITIES IN DRIVING HEALTH INTERVENTION AND REALLY PREVENTING ANSWER OF THE CO-MORBIDITIES FOR FOLKS LIVING WITH OBESITY. THAT'S A GREAT VALUE ADD FOR PATIENTS, GREAT FOR SOCIETY, FOR THE HEALTH CARE SYSTEMS THAT ARE STRUGGLING IN MOST COUNTRIES. AGING POPULATIONS AND A NUMBER OF BURDENS ON GOVERNMENTS DRIVING GREEN TRANSITION, HANDING AGEING POPULATION AND SPENDING INCREASING ON DEFENSE, ET CETERA. SO REALLY INVESTING IN MEDICINES THAT CAN DRIVE PREVENTION AND IMPROVE HEALTH OUTCOMES, THIS LIVING THE PURPOSE OF A COMPANY LIKE NOVO NORDISK CAN BE PROUD ABOUT WHAT CONTRIBUTION WE CAN HAVE IN THAT SPACE. >> SUCH AN INTERESTING STORY. YOU WERE KNOWN FOR INSULIN FOR SO LONG, AND NOW THIS EXPANSION. YOU'RE GIVING WALL STREET THE DIVERSITY IT HAS CRAVED FOR THE COMPANY'S PORTFOLIO FOR SO LONG. BUT YOU'VE ALSO FOUND YOURSELF SORT OF IN THE COMMON CULTURE, YOU KNOW, WITH THE MASS POPULATION THAT -- THAT RECOGNITION OF THE BRAND PROBABLY NOT WHAT YOU WANT WITH EVERYONE JUST CALLING EVERYTHING OZEMPIC. BUT AT LEAST THEY ARE RECOGNIZING THE BRAND NAME. SO I WONDER HOW THAT'S BEEN FOR YOU KNOWING THAT THIS BECAME SORT OF CELEBRITY CULTURE. AND YOU KNOW, IT'S BEEN EVERYWHERE THIS YEAR. >> IT'S BIG CHANGE I'M BEEN WITH THE COMPANY FOR MORE THAN 30 YEARS. I'M ONLY THE FIFTH CEO IN A 100-YEAR-OLD COMPANY. NOW WE'RE GROWING, YOU KNOW, AROUND 30%, 100 YEARS INTO OUR LIFETIME. AND SUDDENLY WE HAVE BRANDS THAT ARE BECOMING HOUSEHOLD NAMES, AND WE HAVE NEVER, EVER HAD PRODUCTS THAT WERE LIKE WIDELY KNOWN. SO I THINK IT'S -- IT CAUSES CHALLENGES HOW TO HANDLE THAT BUT DRIVES A LOT OF OPPORTUNITY. IF YOU THINK ABOUT, AS I MENTIONED BEFORE, OVER SOME TIME HUNDREDS OF MILLIONS OF PATIENTS LIVING WITH OBESITY, AND FOR US TO GET TO THEM IF WE HAD TO HAVE A HUGE SALES FORCE TO GO TO EACH PERSON, WE WOULD NEVER GET TO MANY OF THEM. WITH BRANDS BEING ESTABLISHED, THERE'S A DIFFERENT OPPORTUNITY OF REACHING MORE PATIENTS. AGAIN, WHEN WE CAN DRIVE HEALTH RESILIENCE, STRONGER HEALTH OUTCOMES BY DOING THAT, IT'S NICE TO HAVE BRANDS THAT LEAD PATIENTS TO SEEK CARE BECAUSE WE CAN DRIVE EVEN BIGGER CHANGE THAN WHAT WE COULD HAVE DONE IF THIS WERE NOT A WELL ESTABLISHED BRAND. IT CAUSES A LOT OF CHANGE FOR US. WE HAVE TO FACE DIFFERENT CHALLENGES. BUT I SEE IT REALLY AS A BIG OPPORTUNITY FOR HELPING SOCIETY AND GETTING TO MANY MORE PATIENTS THAN WE'VE EVER DONE SO FAR IN THE HISTORY OF THE COMPANY. >>'S INTERESTING BECAUSE YEW -- IT'S INTERESTING BECAUSE YOU'RE LIKE A FASHION HOUSE NOW. YOU HAVE TO DEAL WITH KNACKOFFS, ESPECIALLY -- KNOCKOFFS, ESPECIALLY WHILE YOU HAVE THE SHORTAGE GOING. MUST BE AN INTERESTING POSITION. I WANT TO TALK ABOUT THE COMPANY ITSELF. IT'S GOT AN INTERESTING CORPORATE STRUCTURE. WE KNOW THAT YOU WERE RECENTLY COMPARED TO EVEN WHAT'S GOING ON WITH OpenAI AND HAVING A VERY DIFFERENT CORPORATE STRUCTURE. HOW DOES THAT GET AFFECTED WITH THE SUCCESS? WHO WINSZ AT THE END OF THE -- WHO WINS AT THE END OF THE DAY, AND HOW DO YOU FEEL PERSONALLY ABOUT HOW THE SUCCESS SIM PACTING THE COMPANY -- IS IMPACTING THE COMPANY? >> I WOULD SAY WHAT WE DO INSIDE THE COMPANY HAS NOT CHANGED AT ALL. SO I MENTIONED THAT WE'VE BEEN RESEARCHING IN OBESITY FOR 25 YEARS, THAT CONTINUES. WE HAVE BEEN PRODUCING MEDICINES FOR PEOPLE LIVING WITH DIABETES AND A FEW OTHER DISEASES FOR 100 YEARS. SO THE ACTIVITIES INSIDE THE COMPANY CONTINUES. WE HAVE A -- IT'S INTERESTING BECAUSE WE ARE CONTROLLED BY A FOUNDATION. SO THE FOUNDERS OF NOVO NORDISK ACTUALLY GAVE CONTROL OF THE COMPANY TO A FOUNDATION BECAUSE IT FELT THAT THAT WOULD BE THE BEST LONG-TERM OWNERSHIP FOR THE COMPANY. AND THEN, OF COURSE, THIS IS ON THE STOCK MARKET, SO WE HAVE THE DISCIPLINE THAT COMES FROM BEING WITH A COMPANY AND ASSESSING -- ASSESSING OUR PERFORMANCE ON A DAILY BASIS. WE ALSO HAD THIS STABLE ANCHOR IN THE FOUNDATION WHICH HAS CONTROLLING STAKE, AND THEY HAVE A REALLY FOREVER MINDSET IN WHAT WE DO. AND THAT'S A BIT HOW WE LOOK AT OUR BUSINESS, THAT WE'RE IN THIS FOREVER. SO WE'RE NOT CHASING SHORT-TERM RETURNS, BUT WE'RE TRYING TO BUILD VALUE FOR THE LONG TERM WITH AN EYE FOR THE SOCIAL RESPONSIBILITY WE HAVE, THE ENVIRONMENTAL RESPONSIBILITY WE HAVE, AND OF COURSE BEING THE HEALTHY COMPANY FROM A FINANCIAL POINT OF VIEW. SO THESE SEVERAL BOTTOM LINES WE PURSUE THIS KIND OF GUIDING EVERYTHING WE DO. AND I THINK THAT CREATES A VERY GOOD LONG-TERM PERSPECTIVE AND A BALANCE OF SUCCEEDING AS A COMPANY. BUT ALSO ADDING VALUE TO THE SOCIETY WE SERVE. >> ABSOLUTELY. ONE OF THE THINGS THAT'S REALLY INTERESTING ABOUT THE COMPANY, LARGEST CORPORATE TAXPAYER IN DENMARK. YOU'VE ALSO GOT A LITTLE BIT OF AN INTERESTING SETUP WHEN IT COMES TO, YOU KNOW, THE WAY THAT YOU PAY OUT WITH THE INNOVATION THAT YOU SUPPORT. I WAS ACTUALLY OVERSEAS RECENTLY, AND SOMEONE TOLD ME FROM THE UNIVERSITY OF COPENHAGEN NOTHING HAPPENS WITHOUT NOVO. SO HUGE COMPLIMENTS FOR THE COMPANY THERE. BUT MEANWHILE, LOOKING AT ALL OF THAT, YOU HAVE THE BROADER HEALTH CARE SYSTEM TO WORRY ABOUT, THE PRODUCTS YOU'RE SUPPLYING. AS I MENTIONED, KNOWN FOR INSULIN LARGELY IN THE PAST. AND THAT WAS KIND OF A SURPRISE THAT WE SAW IN THE MEDICARE DRUG PRICING NEGOTIATIONS THIS YEAR THAT WERE ANNOUNCED. I WONDER DO YOU THINK THAT OZEMPIC AND WEGOVY COULD BE ON THE LIST FARTHER DOWN THE LINE, AND ARE YOU PREPARING FOR THAT? >> YEAH, IT'S A GOOD POINT THAT A COMPANY SHOULD STAY REALLY ON A SUSTAINABLE GROWTH TRACK, YOU HAVE TO HAVE CONTINUOUS INNOVATION. AND IN OUR INDUSTRY, WHEN PRODUCTS HAVE BEEN ON THE MARKET FOR SOME TIME AND YOU FACE PATENT EXPIRATION OR HEALTH CARE REFORMS SPECIFICALLY, THERE WILL BE PRESSURE ON PRICING. WE SEE NOW THAT OUR LONGTIME SHORT-ACTING INSULIN FAMILY OF PRODUCTS IN THE U.S. IS NOW BEING INCLUDED IN THIS, SAY, NEW APPROACH TO NEGOTIATE PRICING BY THE GOVERNMENT, AND WE'LL HAVE ALL THE PRODUCTS POTENTIALLY IN THE FUTURE BEING INCLUDED IN THAT. BUT WHAT WE FOCUS ON IS TO CONTINUE TO DRIVE INNOVATIONS. AND AS LONG AS YOU SUCCEED IN BEING IN THE INDUSTRY, YOU'LL BE ADDING VALUE BASED ON BRINGING BETTER AND BETTER VERSIONS OF YOUR PRIOR PRODUCTS, AND THAT'S THE WAY TO GET TO MORE PATIENTS AND ALSO PROTECT VALUE BECAUSE YOU BRING A BETTER OFFERING. SO WHETHER IT'S -- TIT BRINGS COMPLICATIONS WHEN YOU HAVE TO FACE GOVERNMENT INTERVENTIONS AND NEGOTIATIONS. IT'S JUST UNDERLINES THE IMPORTANT OF HAVING A STRONG STRATEGY THAT'S FOCUSED ON BRINGING BETTER AND BETTER PRODUCTS FOR PATIENTS. IF YOU SUCCEED YOU HAVE THE GROWTH TRAJECTORY OF WHAT WE'VE SEEN NOVO NORDISK TODAY AND A COMPANY TURNING 100 YEARS CAN STILL BE IN ITS STRONGEST POSITION BECAUSE OVER DECADES CONTINUED INNOVATION HAS LED TO STRONGER AND STRONGER MEDICINES. YES, IT'S A CHALLENGE TO DEAL WITH, BUT IT'S ALSO A CALL FOR JUST HAVING A CONTINUED FOCUS ON HOW WE AS A COMPANY ADD VALUE, AND THAT'S VIA OUR SCIENCE TO BRING TO PATIENTS. >> I WONDER, YOU'RE AT THIS JUNCTURE WHERE YOU FINALLY GOT TO THE FINISH LINE ON FINDING THE -- THE SWEET SPOT, THAT MAGIC NUMBER THAT EVERYONE'S HAPPY WITH IN TERMS OF THE WEIGHT LOSS. YOU'VE TALKED A LOT ABOUT HOW ALL OF THIS IS BECAUSE OF WHERE WE ARE IN SOCIETY, HOW WE LIVE, WHAT WE DO, AND HOW IT'S DIFFERENT FROM WHEN YOU WERE YOUNGER. B WE'VE SEEN DOOMSDAY PREDICTIONS FOR OTHER SECTORS AS A RESULT OF THE SUCCESS OF THESE DRUGS. WHAT DO YOU THINK ABOUT THAT? THERE'S EVERYTHING FROM FOOD AND BEVERAGE TO AIRLINES, CLOTHING, APPAREL, YOU KNOW, POTENTIAL GAMBLING AND ADDICTION BENEFITS. HOW DO YOU THINK THAT'S GOING TO PAN OUT? DO YOU THINK IT'S REALLY GOING TO HAVE THAT MUCH OF AN IMPACT? >> IT'S A GREAT -- GREAT QUESTION. IT'S REALLY FASCINATING FOR US TO REFLECT ON HOW BIG AN IMPACT WE MIGHT HAVE. SO WHEN IT COMES TO CONSUMPTION OF FUEL FOR AIRLINES, SOME OF THE MED TECH COMPANIES INVOLVED IN SLEEP APNEA, DIALYSIS TO, YOU KNOW, DRINKS AND SNACKS COMPANIES, ET CETERA, I THINK THAT THERE WILL BE AN IMPACT THAT IS COMING OVER MANY YEARS. SO I THINK IT'S MAYBE A BIT DRAMATIC WHAT IS BEING DEPICTED RIGHT NOW. BUT OF COURSE IT'S -- IT REFLECTS THAT WHEN YOU ASSESS THE VALUE OF A COMPANY AND YOU DISCOUNT FREE CASH FLOWS TO TODAY'S VALUE, IT'S ACROSS THE IMPACT ON MANY YEARS THAT'S REFLECTED IN TODAY'S PRICE. THEN YOU SEE SUDDEN REACTIONS. SO MY VIEW IS THAT SOME OF THOSE REACTIONS ARE PERHAPS A BIT EXAGGERATED. BUT THERE'S NO DOUBT THAT WITH THE INTERVENTION WE SEE NOW WITH THE TIER-ONE-BASED MEDICINES, YOU SEE SIGNIFICANT SHIFT IN CONSUMER BEHAVIOR AND SOME OF THESE CATEGORIES WILL BE IMPACTED. I THINK IT'S -- ALL QUITE SOME TIME. SO MY BASE VIEW IS THAT IT IS PERHAPS A BIT OF AN OVERREACTION, BUT I TAKE IT AS A STRONG SIGN OF WHAT IS IT ACTUALLY, SAY THE POWER OF THE MEDICINE WE'RE INTRODUCING NOW IS HAVING ON SOCIETY WHICH, OF COURSE, IS ALSO LEADING TO THAT THERE SAY STRONG CASE IN ACTUALLY PAYING FOR THAT INNOVATION COMING FROM NOVO NORDISK. >> ABSOLUTELY. DO YOU THINK THAT WITH THE RESULT FROM THIS SELECT TRIAL FOR THE CARDIOVASCULAR BENEFIT, DOES THIS NOW OPEN THE DOOR FOR MORE M&A IN DIFFERENT DISEASE AREAS FOR THE COMPANY? YOU'VE REALLY HAD SUCH A YEAR. WHAT ARE YOU THINKING ABOUT? >> YEAH. IT'S A GOOD POINT. WE CAN SEE THAT WHEN WE TAKE OUR MOLECULE INTO NEW SETTINGS LIKE CARDIOVASCULAR DISEASE, YOU'RE ALSO TOUCHING ON KIDNEY DISEASE AND OTHER ADJACENT DISEASE AREAS. THAT MEANS THAT WE ARE EXPANDING OUR GROWTH PLATFORM, AND WE HAVE A DISCIPLINED WAY OF EXPANDING. SO WE FOLLOW A MOLECULE TO A NEW MARKET, AND THEN WE CAN START BUILDING THERE. SO WE ARE RIGHT NOW LOOKING FOR -- AND ACQUIRING AND LICENSING AS IT'S IN THE SPACE. SO IT'S -- THE DEVELOPMENT OF S SEMIGLUTIDE CREATED A PLATFORM TO MAKE DEALS AND ACQUIRE INNOVATION FROM OUTSIDE, AND REALLY TO COMPLEMENT AND BOLSTER OUR PRECISION IN NEW THERAPEUTIC AREAS. I THINK THAT'S A VERY INTERESTING GROWTH STRATEGY. AND IT'S ALSO NEEDED TO REPLENISH OUR PIPELINE GOING FORWARD. THAT TAKES MORE AND MORE. WE'RE STARTING EARLY, AND I'M QUITE OPTIMISTIC IN TERMS OF HOW WE CAN BUILD VALUE BY TAKING EARLY ASSETS IN AND ADD VALUE TO THOSE ASSETS, AND THEREBY VALUE TO OUR SHAREHOLDERS COMPARED TO IF YOU BUY PRODUCTS OR LATE STAGE AS YOU TYPICALLY HAVE TO PAY FULLY UP, AND THERE'S LIMITED RETURN TO OUR SH SHAREHOLDERS. WE LIKE TO TAKE THE RISK AND EARNINGS THAT WILL COME FROM THAT. >> FASCINATING. WHAT AN EXCITING TIME TO BE LEADING THE COMPANY. WE'LL HAVE TO LEAVE IT THERE. LARS BJORGENSON, CEO OF NOVO NORDISK. CONGRATULATIONS AGAIN, AND THANK YOU SO MUCH FOR JOINING ME. >> THANK YOU SO MUCH FOR HAVING ME TODAY.
