11AM Hour: David Sacks on AI, Medtronic CEO on Earnings & New Apple CEO Starts Today 9/1/26

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**Carl Quintanilla** (0:58)
Good Tuesday morning. Welcome to Squawk on the Street. I'm Carl Quintanilla with Leslie Picker here at Post 9 of the New York Stock Exchange. Sara Eisen is off today. Coming up this hour, we're going to be joined first on CBC by former White House AIs are and co-chair the President's Council of Advisors for Science and Technology, David Sacks. We'll talk about America's positioning in the AI race and this rise in data center pushback.

**Leslie Picker** (1:20)
Plus, Medtronic shares getting a boost this morning. The medical device maker lifting its full year forecast and sees rising heart device demand. The company's chairman and CEO, Geoff Martha, joins us.

**Carl Quintanilla** (1:30)
And the token cost collapsed, dropping to the lowest on record. We're going to dig into what that could mean for open AI, Anthropic and the state of the AI boom.

**Leslie Picker** (1:38)
Currently, though, markets do it a little better than earlier in the hour. The NASDAQ down about 0.7 percent. That's the laggard today. The S&P off by about half a percent in the 10 year at 4772

**Carl Quintanilla** (1:53)
Let's begin with the latest on the war with Iran. Oil prices are higher today. This morning after a new attack on a tanker in the Strait of Hormuz. For that, we'll turn to Eamon Javers. Morning, Eamon.

**Eamon Javers** (2:03)
Yeah, good morning to you, Carl. President Trump dismissed concerns about a depleted military in remarks to reporters in the Oval Office yesterday afternoon, asked about reported military warnings to the Defense Secretary Pete Hegseth that the Iran war could weaken the US military's ability to defend the US homeland. The president had this to say.

**Donald Trump** (2:23)
Number one, we have nothing else in mind. Number two, we're very respected. Nobody else would be crazy enough to do it. Number three, we have so much ammunition and munitions, as they like to call it, all over the world, that we can always take from if we want.
And this is a relatively little war for us. This is not a big war.

**Eamon Javers** (2:42)
And overnight, Carl, as you say, we saw British authorities report that another tanker in the Strait of Hormuz has reported being struck by three projectiles while exiting the Strait. Not clear who fired on the vessel overnight. And this morning, we saw Russian President Vladimir Putin and Iranian President Masoud Pesachian meeting on the sidelines of the 26th annual leaders of the Shanghai Corporation Organization Summit in Kyrgyzstan. Putin then reaffirmed Moscow's solidarity with Iran, saying, we admire your courage and resilience in fighting for your national interests. All that, Carl, on a day in which President Trump is hosting a group of mid-sized refining companies at the White House today to discuss ways to increase refining capacity and lower costs for American consumers privately. White House officials are calling this one a Refine Baby Refine meeting, as opposed to Drill Baby Drill. It's closed press for now, guys, so we don't expect cameras in there. That could always change, and we'll keep an eye on it for you.

**Carl Quintanilla** (3:42)
Yeah, that's easier said than done. A bunch of moving pieces, Amen. We have an Army secretary stepping down. We have Hapag Lloyd, the big shipper, saying it's probably fair to assume Hormuz remains blocked for the foreseeable future. And then you have the Treasury secretary today saying Hormuz will probably be irrelevant as a choke point, but not for a couple of years.

**Eamon Javers** (4:02)
Yeah, I mean, it looks like we're settling into, one scenario is the rest of President Trump's term is sort of this grinding conflict with Iran in the Strait of Hormuz, where the Strait never gets fully open, never fully closed, but cost of shipping and insurance and risk remains very high throughout the next couple of years. And that's got to have an impact on global oil prices and of course on the US economy. So the president, this event today very much focused on the cost for American consumers. His belief is that he can just push the refiners to refine more and get costs down for American consumers. Politically, that's very sensitive ahead of these midterm elections, but there are people in the Republican Party bracing for a real impact from this in November. We'll wait and see what happens and if the president can turn it around between now and then, but there don't seem to be a lot of exit ramps to the war in Iran if one side or the other isn't willing to admit that it lost. And politically, neither side seems to be willing to make that admission at least yet.