SOTS 2nd Hour: Talking Tariff Impacts, Goldman’s Credit Head, & LIVE: Coca-Cola CEO 7/22/25

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Sara Eisen (0:47)

Good Tuesday morning. Welcome back to Squawk on the Street. I'm Sara Eisen with Carl Quintanilla. David Faber's back. We are live from Post 9 of the New York Stock Exchange. Take a look at stocks. We are hovering their record highs for the S&P and the NASDAQ. Giving back a little bit today, not much on the S&P. Down a third of 1%. NASDAQ's a little bit weaker. This comes ahead of some mega-cap tech earnings that are coming later this week. NASDAQ's down about a percent right now. As for Treasuries in the early action, it's a late day of the week. But there's buying. That continues. Yields lower. Ten-year yield, 4.34. Two-year yield, 3.8%.

Coming up this hour, first on CNBC interview with Coca-Cola CEO James Quincey. Fresh off earnings, following news this morning about the upcoming launch of a new cane sugar-based drink in the United States, after President Trump talked about it last week. And then Goldman Sachs' head of corporate credit, Jonny Fine, lays out his thoughts on the bond market, the Fed and much more.

Carl Quintanilla (1:43)

We are getting some breaking news on PNC Financial. For that, we're going to turn to Leslie Picker.

SPEAKER_2 (1:47)

Morning, Leslie.

Leslie Picker (1:48)

Good morning. PNC announcing that it has entered a strategic partnership with Coinbase. The arrangement will expand access to digital assets for PNCs, banking clients, and institutional investors. PNC will provide banking services to Coinbase. Shares of Coinbase down about 3.7 percent PNC up slightly. According to the release, the two companies will develop an initial offering that will allow clients to buy, hold, and sell cryptocurrencies. The head of Coinbase Institutional saying in the release that it will be supporting PNC's quote, entry into the digital asset market with our crypto leading crypto as a service platform, which provides PNC with a powerful set of tools to develop a scalable high growth business built on a foundation of uncompromising security. Kind of in this space, JP Morgan saying last month that it was partnering with Coinbase to pilot JPMD, a deposit token managed by blockchain technology. And guys, later in the hour, we'll sit down exclusively with Bill Demtrak, the CEO of PNC to discuss this new partnership with Coinbase, the company's recent earnings and bank regulation, as he's here in Washington attending the Fed's Capital Conference.

Sara Eisen (2:59)

Guys, you know, it's interesting, we spoke to the Schwab CEO last week and Rick Worcester. And he was saying that they're looking to create a Coinbase competitor, that they want to eventually roll out a platform where you can actually buy spot Bitcoin or Ether. It feels like we're now getting lots of strategies, but divergent strategies. You either beat them or you join them.

Leslie Picker (3:25)

Yeah, it's really interesting. It feels like we're at this inflection point with crypto in the traditional banking system. And perhaps a lot of that has to do with the crypto week that we saw last year. But you're right, Sara, the banking executives are kind of of this mindset now where they either kind of beat them or they risk a lot of their clients going over to competitors and they risk losing those deposits that way. And that's why on a lot of the earnings calls last week, you heard CEOs talking about how they're exploring issuing their own stable coin. Will there be a consortium of maybe big banks that kind of come together to give those stable coins more of a purpose outside of their own firms? A lot of it's up in the air, but there's a lot of work being done in this space right now, in this partnership. Just the latest indication of that.

Carl Quintanilla (4:10)

We haven't mentioned this morning, Leslie, this report that JP Morgan's considering offering loans backed by clients crypto holdings, that'd be a new wrinkle.

Leslie Picker (4:19)

That was really interesting just given the overall volatility of the crypto space. It's certainly kind of an interesting, I'll be curious to hear more details about how they plan to establish that, because of course the challenge in lending against crypto assets is of course, if the volatility ensues and then you have these longer dated loans, how you kind of match that on the balance sheet, but I'm sure they're working through all of those details.