SOTS 2nd Hour: DAVOS - Dell CEO, Scale AI CEO, & Elon Musk Talks Robotics 1/22/26

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Sara Eisen (1:05)

Good Thursday morning, welcome to Squawk on the Street. I'm Sara Eisen, live in Davos, Switzerland, at the World Economic Forum, along with Carl Quintanilla and David Faber at the New York Stock Exchange. Coming up this hour, more heavy hitters from Davos, including interviews with Dell Technology CEO and founder Michael Dell, and the new CEO of Scale AI, Jason Droga. Plus, Elon Musk expected to take the stage here at the World Economic Forum. That was a surprise that he was here. He's speaking this hour. We'll bring you highlights as soon as we get them. And Allianz Chief Economic Advisor, Mohamed El-Erian, with us to talk about whether a cooling of tensions around Greenland signals an all clear for the market.

David Faber (1:42)

First, so let's get some economic data that just crossed. Rick Santelli has that for us. Rick?

Rick Santelli (1:47)

Yes, David. These are our November reads on personal income spending and all the PCE inflation metrics that are among the Fed's favorite inflation gauges. The issue is October comes out in a bit, and the comps and revisions, I won't be able to give you an accurate gauge in that regard. So up three-tenths, a little light to expectations, which was expected up four-tenths. And if you look at the spending side, comes in exactly as expected, up half a one percent, which is a solid number. And if you look at an inflation adjusted image of spending, it comes in as expected as well, up three-tenths of a percent. Now, let's get to the PCE price index month over month, up two-tenths of a percent, exactly as expected. And if you look at a year-over-year picture, comes in at 2.8, also exactly as expected. Now, if we shift to the core perspective on the personal consumption expenditure, month over month, it's up two-tenths. And on the year-over-year, it's up 2.8. All of these numbers are exactly as expected, except for the one-tenth light on the income side. October will be coming out shortly with any revisions. But suffice it to say, interest rates are on the upswing today. We are looking at a retest of that kind of 424, 425 level. It seems to have held big psychological area. The huge resistance above the market might take a bit of time to test in a 10-year, right around 4.37%.

Sara, back to you in Davos.

Sara Eisen (3:24)

Thank you, Rick Santelli, on the data. Guys, today in Davos, the topic was foreign policy. President Trump here, and giving another speech in front of the participants here, a historic speech where he formed his Board of Peace with 14 other countries there for the official signing. It's a sort of alternative United Nations type organization that's going to first focus around peace in Gaza. Leaders were there from Argentina, President Mila from Qatar, from Saudi Arabia, but notably absent and have not accepted yet. Leaders from most of the European countries, from China, from Russia, and other major powers. You know, during the speech, and it wasn't just about Greenland, it was barely mentioned today. During the speech, President Trump did talk a lot about the foreign policy wins, and also some of the deals in the works, including making news on Iran, where he says leaders there want to talk and will talk. He talked to, of course, our colleague Joe Kernan about Iran, about the tariffs that are on, those secondary tariffs, and where things stand. Listen.

SPEAKER_7 (4:33)

Those tariffs are still on, including China. Is China respondent to the 25% for anyone who does business with Iran? Correct. And sanctions. And that will go forward.

SPEAKER_2 (4:43)

Yeah, that's going forward.

SPEAKER_7 (4:44)

That will go forward. There are assets moving into the gulf, obviously, carriers and other things. So a lot of people are wondering whether that's a prelude to further action.

SPEAKER_2 (4:55)

Well, we hope there's not going to be further action.