11AM Hour: Goldman's Private Credit Outlook, Lawyer for Pied-à-Terre Tax Lawsuit & Intel's New Stock Offering 8/10/26

**Sara Eisen** (0:00)
The board recommends approving...

**Gil Luria** (0:01)
Regarding that seat on the committee, we're promoting...

**SPEAKER_3** (0:02)
to most quarterly earnings...

**SPEAKER_4** (0:04)
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**Sara Eisen** (1:08)
Good Monday morning again. Welcome to Squawk on the Street. I'm Sara Eisen with David Faber, live from Post 9 of the New York Stock Exchange. Today, the state of the AI trade, Intel plans a $15 billion stock offering as demand accelerates, Meta launching a new open-source AI model and Senator Bernie Sanders, delivering a message to AI CEOs, calling on them to quote, stop building machines that humans cannot control.

**David Faber** (1:30)
Plus some warning signs flashing in the private credit sector, loan default rates for some of the sector's biggest funds, hitting what is seemingly the highest level they've had in five years. We'll discuss the health of that market with Goldman Sachs Asset Management's global co-head of private credit, James Reynolds.

**Sara Eisen** (1:47)
And the fight over New York City's new Pied-A-Terre tax. Heading to court today, we're joined by the lead attorney for a group of homeowners suing Mayor Zoran Mamdani, arguing they've been improperly targeted.
First up, though, in the markets, we are higher, just barely, in the S&P 500, though started the morning lower. Keep in mind, we're coming off of record highs for the S&P 500 The pockets of strength today are in energy. Oil prices are elevated on some tough talk between the US and Iran over opening the Strait of Hormuz. Healthcare stocks are doing well, communication services, industrial. So you do have a mix of the cyclicals, but tech is lagging. That's why the NASDAQ is down a quarter of 1%. We'll get some key economic data later this week, like inflation, the big CPI report on Wednesday, and then retail sales on Friday as we near the end of the earning season, which for the most part has been pretty strong.

**David Faber** (2:38)
It has. Big ones yet to come, I guess, in video towards the end of the month.
I think also Broadcom a little ways from now as well.

**Sara Eisen** (2:44)
And some of the SaaS players like the, you know, sales forces or whatever. And then some of the retailers, which are always at the tail end, like Walmart and Target.

**David Faber** (2:52)
Yep.
We're going to start, though, on new food policy reforms that are out from the Health and Human Services Department. Brandon Gomez has that news for us. Brandon?

**Brandon Gomez** (3:01)
Hey there. Good morning, David. The Trump administration moving this morning, tightening oversight of what goes into our food. Now, HHS announcing a proposal that would require food manufacturers to notify the FDA when they determine an ingredient is generally recognized as safe, also referred to as grass. Well, what is grass? Well, under federal law, food ingredients generally have to go through the FDA review process before they can be added to food, unless they qualify for an exemption. And grass is one of those exemptions. Originally introduced in the 50s, it prevented the agency from being bogged down by common well-established household ingredients like salt and vinegar. But in a modern system, the company can now self-determine an ingredient is generally safe based on scientific evidence and expert review. So under the current system, companies don't need to tell the FDA. But now the FDA wants to require the companies to notify it, giving it a better sense of how many ingredients are entering the food supply. FDA Acting Commissioner Kyle Diamantis told me it will create greater transparency and will quote, help the FDA better carry out its food safety mission. And this ties to ultra-processed foods. HHS and USDA also submitting the government's first proposed definition of ultra-processed foods for final review. No more details there yet, but GRASS proposal does have to go through the federal rulemaking process, a public comment period of 120 days. HHS made it clear this is not a pre-market review program and they're also proposing a streamlined submission pathway for existing products that are on the market made by some of the companies you see on your screen here, Pepsi, Coca-Cola and the like. Guys?