10AM Hour: Treasury Sec. Bessent Testifies, Thermo Fisher CEO, Morgan Stanley’s M&A Outlook 9/15/26

Sara Eisen (0:00)

The board recommends approving.

Oliver Renick (0:01)

Regarding that seat on the committee, we're promoting.

SPEAKER_3 (0:02)

To boost quarterly earnings.

SPEAKER_4 (0:04)

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Sara Eisen (1:00)

Good Tuesday morning and welcome to Squawk on the Street. I'm Sara Eisen with Carl Quintanilla. We are live at Post 9 from the New York Stock Exchange. David Faber joins today from the Morgan Stanley Global Health Care Conference here in New York, where he's got some big interviews ahead, including the CEO of Thermo Fisher, Morgan Stanley's global co-head of M&A, and then later Morgan Stanley co-president Dan Simkowitz. Also ahead, stocks under pressure here, yields are rising as the Fed kicks off its policy meeting, and AI fears remain front and center. Noted investor Dan Niles will tell us why he's cautious on stocks through the midterms.

Plus, the Senate expected to hold a key procedural vote on the Clarity Act today. We'll talk about what's at stake for the crypto world and the banking world, and Treasury Secretary Scott Bessent testifies this hour to the House Financial Services Committee will bring any headlines soon as we get them, especially looking out for any comments on bonds and yields, and the decision to increase buybacks and what he's made of the relentless rise in Treasury yields since then. With the 10-year this morning, over 5% reached the highest level since back in 2007 It really is teeing off of oil, which remains higher, especially on concerns about this critical pipeline shutdown over in Saudi Arabia. Oil prices rise, 10-year yields rise, and then it's the self-reinforcing concerns about the government being able to fund itself. But it is conference season, and I've been following some of the commentary from bank and credit firms about what's happening out there with consumers and with businesses. And overall, it's a pretty healthy read. Just want to share some commentary from the Blue Owl co-CEO. Remember, their big private creditor. They lend to all sorts of businesses. Credit quality remains pretty strong, and I can't look out more than a year, maybe 18 months, but I'm anticipating that will continue to be the case. Bank of America CEO Brian Moynihan. Again, this is at the Barclays Financial Services Conference. The Fed will raise rates, but it won't knock the economy off its movement. And I think that's important as we do look for the Fed to raise interest rates tomorrow.

Not a certainty, but the market is pricing it in. And the question is, can the economy handle it? So Moynihan says yes.

Citigroup CFO says spending is in good trends, not only obviously picked up from the oil inflation pick up and gas prices, but even you see, you look at travel, you look at discretionary, is relatively broad-based. And so we continue to see that constructively, credit is stable. Delinquencies, losses, leading indicators, they're down year on year. The Wells Fargo CFO, we see spend up across the debit and credit card, you know, products every week, year on year. We're not seeing changes in delinquency trends that would sort of lead you to believe there's like, you know, more credit issues coming. And then finally, PNC CFO, we're a little bit surprised how the world is, how strong the economy is. So, especially, I thought the credit commentary was notable because that's, you know, one of the concerns if you're a Fed member, that you're raising interest rates. First of all, are you doing it just on the supply shock of oil? And second of all, you want to preserve, you know, employment trends, which have been good, and economy and credit trends, which have been good. And so far, the read from the bankers is all okay.