Squawk on the Street Fed Decision Day, GE Vernova and Southwest CEOs "First on CNBC" 12/10/25
Dec 10, 2025
Scott Strazik, CEO of GE Vernova, shares insights on the company's impressive growth and the influence of AI on productivity and hiring trends in the energy sector. He highlights the potential of small modular reactors and the shifts in service revenue. Meanwhile, Bob Jordan, CEO of Southwest Airlines, discusses the airline’s transformation, including premium offerings and fare unbundling. He also emphasizes the use of AI to enhance operations and customer experience, projecting significant financial gains for the next year.
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Fed Caution Amid Political Pressure
- The Fed decision day frames investor expectations for rate cuts and Powell's remarks on inflation.
- Political context and a potential lame-duck dynamic may make the Fed hesitant to act without clear weak data.
Vernova's Rapid Margin Expansion
- GE Vernova expects revenue to grow from $37B to $52B and margins to expand to ~20% by 2028.
- Growth is driven by backlog expansion, services growth, productivity, robotics and AI investments in factories.
Sell Integrated Energy Solutions
- Offer integrated solutions that combine generation and electrical equipment to capture higher value.
- Focus on customer-specific solutions to justify price increases and protect margins.
