Squawk on the Street SOTS 2nd Hour: Tariff Turmoil: EU & Apple Impacts, Plus: Apollo’s Torsten Slok 5/23/25
May 23, 2025
Join Torsten Slok, Chief Economist at Apollo Global Management, known for his insightful economic analysis, and CNBC correspondent Silvana Hajj-Mojica as they dissect the latest tariff tensions between the US and EU. They discuss Apple's significant market cap drop and the economic ramifications, including the potential for a slowdown in job growth. The duo also explores the surge in nuclear stocks and the implications of a new executive order, alongside the evolving landscape of tech valuations in the wake of the AI bubble.
AI Snips
Chapters
Transcript
Episode notes
Apple's U.S. Production Cost Challenges
- Apple faces major cost increases if iPhone production shifts to the U.S., potentially raising prices $100-$300 per phone.
- Skilled labor needed for iPhones is mainly available in China and India, making U.S. production currently impractical.
Tariffs Cause Stagflation and Pressure Earnings
- Tariffs create stagflation by raising inflation while lowering growth expectations.
- This divergence pressures earnings downward and impacts market valuations, especially in tech sectors.
Labor Market Lags Economic Slowdown
- Companies are hoarding labor due to uncertainty, delaying layoffs despite economic challenges.
- Unemployment is expected to rise by half a percentage point in the next six months as layoffs eventually increase.