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tv   Squawk on the Street  CNBC  July 9, 2021 9:00am-11:00am EDT

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we got no time thanks for this week. >> pleasure. >> and andrew and becky will be back on monday, but you'll be back we'll see you again and "fast money" is at 5:00 tonight in case you were wondering. join us on monday, "squawk on the street" is next. good friday morning, everybody, and welcome to "squawk on the street. i'm david faber along with jim cramer and we are live from the new york stock exchange. carl has the morning off let's give you a look at futures as we get ready to start the final trading day of the week. the dow powering to potentially a higher open. >> i don't really pay attention to the dow, you know, let's get to our road map this morning it does start with stocks
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looking to rebound following yesterday's selloff. the nasdaq is still on pace for what would be its worst week since mid-may. plus, president biden taking aim at a lot of different industries big tech, though, it's a sweeping new competition order, although just how sweeping is actually perhaps people got a little carried away. >> thank you for asking. thank you for saying that. >> you're welcome. >> we'll give you more details jim and i will talk a little bit more about that. we've got an exclusive with levi's ceo chipb bergh that stock is going up they beat on earnings. we'll start with those markets following yesterday's volatile session. of course we were down at the open a lot more than we ended at the close, jim i don't know what you'd take away from that market action. >> there's always an overhang once you're close. we started catching a bid. i think there were also people who noticed that the bond market cooled for a second. it was up for four straight
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days, but it cooled. also, david, you can only discount the same thing over and over again obviously we all know that rates went lower every day are we supposed to sell stocks when rates go lower because it's actually good for stocks >> right do you know that david -- and we're going to hear from levi's. there's an algorithm for everything i said to my wife, the algorithm says i've got to brush my teeth. >> and there's ai for everything you say ai, now it's everything. i had a conversation yesterday, ai software, i can't go into it because it's about an upcoming potential spac deal, but ai in everything you can say ai and it's all good. >> i point this out, we're kind of mildly joking about it. i think one of the problems that we have is that a lot of our viewers do not understand when we say the algorithm, it de determines how levy is doing the fact is that ai is often
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just observation >> right. >> as people who are on tv trying to demystify, there are too many people who bring up things that are actually obfuscating. >> that's true, but yesterday you had all sorts of different explanations for what has been a significant drop in the yield of the ten-year bond over the last number of weeks including yesterday hitting 125 straight up we did close a higher yield than that, but so many different explanations when very much of it may have just been technical or -- >> right technical. >> there are a lot of buyers there just were a lot of buyers. >> we're buyers and sellers as i learned from michael stein heart when i started at a hedge fund i dr. eric topo on s and it's vr clear thedelta story has gripd the world. >> let's give you some of the news about that. pfizer is developing a covid booster shot intended to target that delta variant
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the cdc and fda saying that may not be needed at this time when it comes to what the cdc tells us, jim, fortunately given their track record over the last year and a half, you do have to do more work. >> one thing people have to remember, as great as pfizer is, they still have to -- this is not sacrilege, make their court. there are too many people medical professionals who in the last 24 hours have said you do not need a booster, but you make money if you're pfizer have you seen the patent that pfizer has have you seen the dropoff? >> i'm aware of it, and they have been trying to reposition the company and potentially carve out different areas they had not been known as a champion of to try to change the narrative. >> a drug company when they solve an illness it's the gilead. >> right hep c, gilead goes to 110.
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they solve it and then -- >> gilead is a great story we talked about it through that period they did cure the disease. there was so much resistance to the price, but we would point out that 12 weeks, then you're done then you won't get it ever again, you're cured, and of course when we go back, guys this is not going to show what we're talking about here. >> do a five year. >> do a five year and show the move up in gilead to 130, $140 billion market cap company. >> and then the challenge of remdesivir, of course a little let's say ill-advised as a way to be able to conquer the disease. >> i don't even think we're capturing it fully there. >> we're still not. >> let's go back let's go ten. >> give me a ten >> now i remember the data they bought do you remember they bought the company that solved it. >> there it is there's the peak right there i don't realize it's so long ago. these years fly by. >> it was like seven times
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earning. >> when they bought pharma set for $11 billion. it was in new jersey it had like 12 people working for them. >> a lot of the meme stocks had -- >> that was an incredible purchase by them rkts. >> it led to this. i think pfizer doesn't want to do anything wrong. i think you want to have belt and suspenders, but i also think pfizer is an incredible pack they better take that money and buy someone, and they got to buy someone that's substantial. >> you talked about that, and that gets back to a conversation we're going to have in a bit, which is more about antitrust and whether, in fact, they will be able to buy -- >> sweeping statement against business by president biden. >> not quite so much as might have been led -- >> does he think he's david costen making a change, cutting numbers? who's more powerful, costen or biden when it comes to cutting numbers? >> biden let's get back to the delta variant far mor a moment here ie
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can. it does seem to be a part of the conversation again we went a number of months where we really were not talking about covid much at all. case numbers dropped dramatically, they have continued to, but now they've started to move up a little bit in places that are unvaccinated. >> you had dr. topo on mad money last night it's worth taking a listen to what he had to say. >> this country has had an incredible track record for lack of any symptomatic breakthrough infections 99.5% of the deaths that have occurred have been in unvaccinated people. so few of any serious infections, severe illness has occurred in people vaccinated, but we're just now, jim, getting into the time when delta is dominant in this country, and it's showing up big time >> big time. >> yeah. >> and dr. top ol is not a man f hype
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hyperbole. his books are tremendous he's a great doctor. david, he took aim at the fda, the likes of which i've never heard anyone. >> specific to what? >> saying because they continue to use the emergency use rubric, they're keeping employers from being able to say this is -- you must take it once the emergency use is dropped, there's no liability for employers to say you must take this. >> interesting so that's an important change. >> right, it's not about the government. >> you've been talking about it. >> and he said he checked in with -- he had a very tough op-ed piece, and the fda went after him for it and he spoke to a bunch of previous fda commissioners david, no one understands why the fda is doing what it's doing, why they went against ten people out of ten voted against the biogen drug, they still approved it. >> they now have reduced the
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label, they reduced the patient population it's for. >> to quote the late roger ailes when i first decided to disagree with him you are really off the reservation. >> did he say that to you. >> that was one of the more frightening periods of my life when i worked for roger. >> i do want to come back to something i've been following for a year and a half, or close to it. a drug we've talked about a lot. it's the merck drug. it's an antiviral. they're in the midst of phase three study around the world enrolling as many as 1,450 patients who know they have covid but it's early you give them the oral antiviral and see what happens >> tamiflu. >> exactly in india, hetero, which is a company that is a vertically integrated pharmaceutical company in india, they actually had a voluntary license for had this. >> they do. >> and they've given us a look at kind of an interim study. 741 patients is what we're talking about.
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they want to enroll 1,200. this is exactly what we've been talking about for some time. this greatly reduces the viral load in people who take it again, not when you got it seriously. not when you're in the hospital. this is early. to your point and the one i've been making now for so long. the u.s. government has already ordered $1.2 billion worth of this drug from merck if and when it gets emergency use approval it probably won't be until the fall that we fully see the phase three data merck sis putting together this was an interesting data point worth sharing from this indian company that has been also conducting its own phase three study based on this voluntary license it had for the drug. >> it's interesting merck's stock again not reacting. >> although it did react to the initial- when we did see that order from the u.s. government. >> that would be it, david that would be the holy grail you would then have the safety net, dr. topol's adamant that most people do not get sick.
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>> if you're vaccinated, it's highly unlikely you're going to get sick thankfully. >> we all know anecdotally people who have gotten sick and there are many people going back to masking because of the inability of our country to get everybody. i will say our country's done better than any other country. >> and the more the virus is all over the place, it's a breeding ground for the virus to actually mutate to the point where vaccines won't work. >> right >> we can't just -- someone said to me yesterday, indonesia, huge country. it could be overrun by covid, and americans don't care, and it's like i don't want to say that we've got billions of -- we've produced billions of doses i think our country's been a very good actor here but you know what? i think you have to watch that partner of pfizer because i think the chinese are about to cave i think the chinese are going to admit that their vaccine. >> doesn't work. >> is very ineffective, and
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they're going to team up. >> as their economy starts to slow a bit as a result >> you saw that they cut the reserve rates for the small and medium sized business people because china is slowing dramatically one look at the chart of copper will tell you exactly what's up in china and i know that china is all powerful, but and eunice yoon visited their vineyard, they're trying to recreate napa. i'm not kidding you. >> i believe you >> all right, coming up, we're going to have a closer look at the white house's crackdown essentially on big tech, that executive order we talked a good deal about yesterday that pressured the rails in particular how much is it really dealing with the rails not much it turns out. we'll have a lot more for you. take a look at futures as we head to break. we're right back
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president biden is set to sign a new antitrust executive order. it would rein in big tech potentially. our ylan mui has a lot for us there to digest. >> reporter: david, it's not just big tech. it's so much more than that, too. president biden does plan to sign that executive order this afternoon and it's aimed at fighting corporate consolidation across the economy the white house will argue that decades of mergers and acquisitions have led to a
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concentration of power in key industries, namely, agriculture, health care, and of course tech. it is calling on the doj and ftc to ramp up antitrust scrutiny in those sectors including deals that have already been done. >> competition is in the benefit of consumers, of businesses and of innovation and that vigorous enforcement of our antitrust laws is consistent with that and indeed necessary to actually create a competitive landscape not just in the tech sector but across the board >> on tech specifically, the administration wants the ftc to zero in on privacy, competition through free products, data collection, serial mergers and so-called killer acquisitions in its antitrust enforcement. the white house is also encouraging the ftc to craft new rules for how tech platforms can collect data and track their users. it wants the agency to bar unfair methods of competition on internet marketplaces as well to
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protect small businesses these moves are all part of a government wide effort to reframe this debate around competition guys they're saying it's not just about price anymore, it's also about wages, job mobility and privacy. those are the signs of healthy markets and a healthy economy. >> thank you yeah, jim, it's interesting how they are reframing it. we've based so much of our antitrust focus on whether or not it benefits the consumer or not, whether it results in higher prices. >> right, but i mean, look, let's take t-mobile and sprint. >> yep >> i thought that would be a bad deal for customers that's wrong i mean, it's not as easily -- it's not cut and dry. >> it's never cut and dried. in that one they had the case of saying we're going to be a more robust competitor as one company than we are as two companies. >> do you think that's anecdotal, and empirically we could observe prices go up in
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this country. >> can you prove what innovation has not occurred is difficult to prove as a result of the dominance of these enormous platforms. >> the greatest price cutter in history is andy jassy. >> ceo of amazon. >> 47 cuts in a period of about four years i don't really get, president biden, if someone said to him let's really come down on companies, what's he going to do he's going to say, listen, companies make too much money? and nancy ploelosi said she's against buybacks from drug companies. the democrats have taken on a new tone. >> they have they're aided at least in part object technology side by the republicans. it's interesting where there's a different -- different issues but it's resulting in similar sentiments, which is enough. >> i think that the biggest bargains in the country have been let's say apple, okay, apple's so good that t-mobile gives it to you in order to be
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able to open an account. i think they're being simplistic president biden is being simplistic why not say the ksu deal is a bad deal because of x. >> there's a couple of things i want to ask you. you mention the rails. we should keep an eye on ksu it was down sharply yesterday pause when we read about it in the journal, at least the possibility of sort of sweeping potential reforms in terms of the rails and shippers there was a lot of concern it's coming back today frankly, there's not a lot in here about the rails at all. it deals with the big four to the extent it deals with any of the freights whatsoever. this deal is beingreviewed under the new merger rules which are a bit more stringent perhaps some relief for those who own that stock and are expecting they will get approval for the voting trust. >> do you think a lot of what's happening is a let's say recidivist to some degree, they go back -- they want to go back
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to things before president trump where there was more scrutiny on business president trump, obviously, was pro-business >> he was. >> this is a stance that you cannot describe as pro-business. >> it depends what business you're talking about they would say this is a pro business because it's pro competition and would result in more innovation and more companies being able to compete in a way they might not have previously it's very much unclear that's the case they're never going to go after trying to break up a deal that already has taken place and closed that's hard to imagine. >> i think it was a fatuous move by the president it basically said we're going to enforce laws okay >> do you not think there's any improvement that could be made in the antitrust laws? they're 100 years old, the clayton act. >> i think trying to get it through congress how about just smarter people,
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people who understand the law. >> smarter enforcers. >> you don't think lina khan's smart? >> she's very smart. >> get yourself ready for a mad dash we got that coming up. it's the last one of the week, of course, including the of course the last trading day of the week take a look at futuresment we're back right after this. ♪ music ♪ back right after this. we're back right after this. we're back right after this. we're back right after this. . we're back right after this. ♪ dream, dream that's the thing to do ♪ ♪ music ♪ when you see value in all directions, you add value in all directions. accenture. let there be change.
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a fund that invests in the innovators of the nasdaq 100 like you become an agent of innovation with invesco qqq time for a mad dash, as we get ready for an opening bell 6 1/2 minutes from now gm. >> you've seen gm move, dan ives, who's all over the place, he did emphasize at 116 you
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should buy apple nice call. he says there's going to be a rerating of gm because they're investing 35 billion in r&d for electric vehicles and the piece is called rein honor of ev growth. >> this stock has had quite a move, at least the belief as mary barra has pivoted. >> you're saying it might be a late call? >> i'm not saying that that's pretty darn -- has gm ever seen a year like that >> randy gerber, mr. pro-tesla right here holy cow mr. pro-tesla's here i'm talking about gm, and i got mr. tesla here he's coming public >> yeah, i think it's a late call >> you do? >> yes, i do and i like tesla here. i think it's come down enough. i'd rather be in tesla. >> really? >> yeah, i think tesla's come down enough. i'm not just saying that because
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randy gerber's looking at me right now. >> you look tesla more than gm, but ford is your favorite. >> ford is number one because it's almost impossible to get. i'm getting a ford maverick. i'm hearing delivery time 2022 >> ooh well, teslas are also not showing up when they said they would either i know some friends who are still waiting. >> you get ready, we've got an opening bell five minutes away stay with us
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welcome back to "squawk on the street." we got two minutes before we get to an opening bell here. looking for a bit of a higher open, it would appear after of course yesterday's broad selloff, although not as bad as it was about 24 hours ago. jim, what's the key to this market for this day? >> well, what i want to see is how do companies react, the stocks react to really great news yesterday costco reported its monthly numbers, and david, they were just insanely good. you're talking about fresh foods being -- jeez, fresh foods is up
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m mid-single-digits. non-foods up low single-digits what i'm basically saying is that these guys are on fire, and target and costco are the two retailers that have just disappeared. if costco continues to prow plow higher when earnings season begins you'll be rewarded with a higher price one of the things we're worried about is multiple compression, whether good news is going to people to say that's the last of the good news. costco they're saying huh-uh if it goes up that's why i want to know is it the last of the good news. >> also you could argue there be a rotation in retail some retailers have had incredible moves we might not have anticipated a few years ago. gap, for example, or victoria secrets. >> one of the best performer of the years. >> is that going to play out, we're going to have levis joining us, chip bergh shortly
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costco has not performed that well as a stock. >> what we want to see is does it react to good news. levis reacts to good news. the reason i say that is because overwhe overwhelmingly, what it says to me is be careful there's not been anything negative and yet the stocks have come down. >> here at the opening bell at the big board. celebrating the visor shares, gerber, kawasaki >> randy is one of the feistiest defenders of tesla he's who you go to when you want a tesla. >> brought him on many times, over at the nasdaq. >> yeah. all right. we're up, we're up we'll see how we level off here, jim. you know, again, yesterday we
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came back -- yeah, yesterday we came back sharply during the -- sharply is maybe too strong. we came back over, you know, what are we in, 0.9 on the day, something like that. >> yesterday was supposed to be a sea change it was not a sea change. we're not going to get a sea change when stamps.com gets a $6.6 billion bid. >> let's talk about it it's actually a large deal, and you can see the stock, of course, is up sharply. $330 a share, of course all cash given it's a private equity transaction. that is a 67% premium. you can see it's trading a bit below that $330 a share. in fact, a pretty tight spread you'd expect there is a 40 day go shop, we often see this now as a part of any of these go private transactions 40 days in which they have time to potentially consider and solicit alternative acquisition proposals from third parties jim, what i found most interesting here, and i don't
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have a lot of detail on the composition of equity versus debt, but it's who's providing the debt financing you know, jpmorgan advised on the m&a front the seller, the stamps.com, but the firms providing financing, and i know you'll get this. black stone credit, aries management, psp investments, and actually providing credit to a deal that its private equity arm is doing none of those are banks. none of them are banks not one, they're all credit funds providing the financing for what we would assume is going to be a lot of financing for this deal. i know why, so i'll tell you. >> i was going to say, if i was president biden, wait a second, i want to look at different industries, i would say this -- these are unregulated entities maybe this is a mistake to allow this. >> that's the key here they're unregulated entities
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they're not subject to the leverage lending rules that the fed oversees for the banks, and s so the banks in some way are cut out. they're not financing, at least not according to the press release. i think that's interesting again, i don't know when we're talking about in terms of debt equity this is a sizable private equity transaction at 6.6. >> i want people to recognize how consequential this could be. these companies not regulated really by the fed can easily go over their heads. >> run by very reputable, they know what they're doing when it comes to apportioning credit, but you're right, the people who are investing in these funds are obviously looking for some sort of significant above at least treasuries one would expect, taking on risks, but they are financing this deal, not banks not that many years ago, it would have been a bunch of banks. >> how about paypal. this morning we hear from chip bergh, we'll hear from levi
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strauss last night in his call we're now going to take venmo and paypal they've become common parlance they've been a way this younger generation does transactions david, we know what they're not. >> they're not banks right, right, they're not regulated. to your point earlier, the regulators are always catching up, it seems, with the changes occurring at a rapid rate. >> i thought he was thomas fatuous, i don't mean to insult the president of the united states, there are many areas that need to be examined are we charging too much for pharmaceuticals giving the fact that i had good rx on last night. unless you're savvy you could end up paying far too much for pharmaceuticals. sunlight is the best disinfectant we do need to know things about individual industries, and that's what biden should be focused on that's where the people are ripped off
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>> getting back to financing markets, i had mark shaeffer join me yesterday, global head of m&a at citi he talked about the financial markets being so wide open this is another example of that, this stance.com transaction, and yet another -- i'm sure you saw today that the overall rate on high yield bond is below the inflation rate which is a first. >> highly unusual time. >> we're in the 4s the 4s >> i know. it's very hard to get -- one thing people have to understand, i know that there's mortgage brokers and mortgage broker numbers have slowed. here we're talking about rocket, great company. you see certain numbers. it's almost impossible to get the mortgage rate that you see posted >> what's your point, though, i'm talking about high yield and you've moved on to mortgages. >> i'm saying it's entirely possible not everybody can get that high yield rate there are companies that are -- >> it's the average. that's what we're talking about
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here >> they're still deciding, yes, carnival cruise is not going to get that rate for something percent. maybe they are now, i don't know >> it does go back to the overall point, which is the capital markets have been so wide open. liquidity is enormous. does that concern you at all, jim? taking a broader view of history looking back at 2007 and, you know. >> i think it does i think that the fed should be looking at whether -- remember, i wanted the fed to be examining mortgage rates in 2007, not everything. >> right i think the fed should be saying it's not about mortgage versus not mortgage bond, it should be are we making credit available, and are we being tough enough. we've got companies where the federal reserve doesn't come in and say, you know what, these loans could all go baaed. >> eventually they won't be good companies that do this. >> typically they know what they're doing. right, to your point, maybe
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there will be other providers of capital who aren't quite as rigorous. >> right >> by the way, stamps.com -- >> although, the banks have shown themselves to not be particularly rigorous on occasion i can remember the different types of, oh, man, different types of products that were available to corporations, bridge financing. >> no one got in trouble. >> that was mortgage financing. >> no one got in trouble the american people hated them >> they did. >> why are the banks up so much, jim? >> you know, david, they've been down so long they look up to me. i mean, it's just been a terrible time. if you can come in and buy jpmorgan at 150 ahead of the quarter, that's kind of interesting. remember guys who are buying these, there's a couple day cooling off period where they're not going to come in and buy stock. a lot of times what's a good trade with jpmorgan, you wait until people see they're
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disappointed and then you buy. >> with that said, they were one of the best performers in the first half of the year energy in the banks, you're still -- jpmorgan's still up 20% for the year, bank of america up 30%, morgan stanley up 30% they've had great moves this year. >> i think american express has come down because of delta, and i think that that's a good opportunity, and people are going to -- people are betting, david, that there's going to be credit use finally, and that they want capital one cof, that's become the favorite of the banks. i don't know whether i'd want to buy cof. i prefer america's best capital one is the one they want to pile into now >> that's interesting, i want to come back to something you mentioned during the mad dash. it's worth mentioning, which is you seem to be warming up to tesla. you said, in fact, that you think -- >> i like tesla, but it's come down a lot. >> it's still down for the year almost 8% for the year i know that's kind of intriguing for me. >> is it
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>> when i see the numbers in china, people say, oh, they're disappointing. i say are you kidding me i mean, given the fact that china has not exactly exhibited a lot of let's say friendship toward american companies. they do not seem to be anti-elon musk i would buy tesla. i would buy tesla. >> you're so a ford bull >> i'm a ford bull, the writing next year is going to be -- >> it's up 147% in the last 12 months. >> you have to understand who fa f farley is. not just chris farley's cousin >> he's a car guy. you've made that very clear. >> the last guy was a cabinet guy. he was a cabinet guy. >> car guys have more to do with cars than steelcase, right just saying. >> i understand.
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he has said ford has been famous for saying, you know what? wherever the world -- whatever coun countries we'll make cars and we'll sell cars, and he is a-- you tell him you want a car in italy a ford, huh-uh, we lose money in italy brazil, we lose money in brazil. argentina. that's over, okay, he is about making money and the trucks that they make are superb is and david, this maverick i think is going to take the world by storm trying getting a bronco. sold out, sold out, sold out look at the resale value of the f-150, when you go and look at the resale, f-150 is america's most popular pickup. >> i'm aware of that i listen to phil lebeau. i hang on every word >> i bought a 350 super duty fantastic. 27 g's, basic price. >> nice. >> and now i'm getting maverick. i want to be able to have an in
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city with a bed so i can do my planting i am the gandhi of the gadrden >> as we know you to be. >> have you been following shares of virgin galactic at all? >> it's a short squeeze meme it's everything. >> it was up enormously yesterday. down 5 plus percent today. branson's going into -- can you say space? i don't remember the technical term he's going up there somewhere. >> 70-year-old tries to regain relevance. >> yeah. >> ooh, wow, that's harsh. you don't like virgin galactic. >> i don't want to go up -- do you want to go up in space >> not in particular >> no. >> all right >> what would i do up there? >> i'll never forget about this dinner i had, every one of them i want to go to space.
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can't you be a little more creative they're out of things to do the billionaires everybody wants to go to space they're out of things to do. they bore the heck out of me. >> after the break we're going to have an exclusive with levi's ceo chip bergh >> tesla just developed the death cross, that's a truck. >> let's give you the bond report as well yeah, how are treasuries faring this morning we watched yesterday those yields move lower. today higher >> there royou go. >> 1.3%. >> 1.25 was that low we hadn't seen that since february yields still down sharply, though, from earlier in the year the ten-year is down 10% in a month. that is the yield, not the price. the price goes up. we're back after this.
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overnight, users tripled. which meant hiring 20 new employees and buying 20 new laptops. so she used her american express business card, which gives her more membership rewards points on her business purchases. somebody ordered some laptops? cynthia suarez. cfo. mvp. get the card built for business. by american express. ♪ ♪ experience, hyper performance that takes you further. at the lexus golden opportunity sales event. get 0.9% apr financing on the all 2021 lexus hybrid models. experience amazing. david, you know, levis just crushed the estimates and raised
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the outlook rather substantially. one of my favorite ceos who's done a lot to be able to help the environment, too, ceo chip bergh joins us now congratulations, this really was the quarter you talked about that happened when the stock was at 19 ten points ago well done. >> thank you very much. >> good morning, jim, good morning, david it was a great quarter. >> i'm going to go there first, and i know i should wait you had a statistic there about waist size i just want you to go there. it was an answer to a question, it wasn't in the script. can you tell us what happened during the pandemic were people buying more clothes than we realized because bodies changed during the pandemic. >> we did have an excellent quarter, and there was a lot of tailwinds and a lot of momentum behind us right now, and one of those dynamics is the fact that many people have changed waist sizes during the pandemic. now this data is u.s. data only,
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but about 40% of women and 25% of men have changed waist sizes, some up, some down and, you know, that's the impact of being cooped up at home but beyond that, and that obviously gives a good reason to go out and update your wardrobe, but beyond that, you know, there are other factors. people have been locked at home, you know, for the last 14, 16 months now as the economy reopens, as people are vaccinated and going back out again, travel is beginning to happen again, social occasions are beginning to happen. family reunions, all of these things drive wardrobe occasions. if you layer on top of that what we believe are the early innings of a new denim cycle with these looser, more relaxed fits where we've seen a huge bounce in our business behind those new silhouettes, all of this creates the tailwind that generated this
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157% growth versus year ago admittedly off a very low base we're now nearly back to 2019 levels of revenue, and our outlook assumes that we're going to be ahead of 2019 the second half of the year. >> i wish last night on a conference call more people talked about something you believe in passionately. we're all worried about the younger generation, about clothes that end up in landfills, clothes that are bad for the environment. you have cared passionately even before the jeans cycle about this i want you to tell people what you do i think you're a model citizen when it comes to clothing, to app apparel. >> well, you know, sustainability is one of the key constraints that we use in our innovation program, and we've innovated with fabrics and fabrication. we have a line of products right now that offer hemp which has sold it's a fiberous fiber.
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it kind of feels like burlap, actually we've worked with a supplier that has cottonized and it made it very soft you can't tell the difference versus 100% cotton product, and that is a far more sustainable product that uses much less water in the growing i think the thing that i'm most excited about right now is we launched a new advertising campaign this past quarter called buy better, wear longer, which really does tap into the insight that many young consumers in particular have really embraced, which is don't fill your wardrobe and your closet, you know, door to post if you will with clothes focus on buying high quality products that are going to last a long time that are really, really versatile, and that plays toward a sweet spot. people pay a premium to go out and buy vintage levis products, and so our product is known for its quality, and it's known for its resilience and its ability to last through time
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a pair of 501s never goes out of style. this new advertising campaign tested really well before it went on air. it's really resonating with consumers, and it taps into this very kvalid consumer insight, an something only we can do the other big thing we've done in the last six months or so, we have a program where we're allowing consumers to up cycle their levis through our store and then we post it online >> and i know of course shouldn't wash them too much either >> that's right. >> i want to get to the supply chain because i'm curious how much you are seeing there. whether there has been success versus competitors and whether you anticipate having higher inventories because trying to make sure that you have stuff on hand even the supply chain problems we hear about
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>> dryeah, supply chain has bee challenge across multiple industries and we're still dealing with a number of supply chain issues, some related to covid and lockdowns and some with our supplier base but i would say that our team has been burning the midnight oil working through this and i think we've and a half gate nav than most of the industry. we operate in more than 20 different countries. we've locked in all through first of next fiscal year. but it is a little bit of a game of whac-a-mole as covid hits a particular market, we have to be quick in responding we did say on the call that supply chain impacted our business on the top line by only about $7 million or $8 million this past quarter. so that is really negligible
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and i think that that is far better than what most others are experiencing we are going to have to rely on air freight a lot more in the second half of the year. we're pretty confident about our even story position, our even stories finished down 12% this quarter. and, you know, as we look ahead, we will see inventory begin to build towards the end of the second half of the year as we prepare for what we think is going to be a very strong next fiscal year. >> chip, i think that you've really developed omni channel live ahead of others and dregt direct to consumer well. and you say despite brick and mortar, you're still doing well. where are you in terms of dtc versus actual brick and mortar >> our total direct to consumer business is now about 40% of our overall business our goal is to drive that above 50% in the not too distant
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future one of the things that happened during the pandemic, we pivoted very, very hard to ecommerce, we actually increased our investment and pulled forward a number of initiatives that were on our three year roadmap and pulled them all into last year so we quickly built capabilities like buy online, pick up in store, pick up curbside, which became really critical ship from store, we were able to manage our inventories when other stores were closed for 10 or 12 weeks last year. we were able to manage that in-store inventory by shipping from the stores. our ecommerce business, owned and operated ef xecommerce busis is up 71%. >> and i've to wind things up, but congratulations. great quarter and i wish i did not have to be so rude >> that is okay. good talking with you. we'll be right back, everybody.
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only time to find out what you have coming up
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>> i have lightspeed, and scnaptscnapt ic scn scnaptics to find out how well semis and touch screens are doing. >> gardening a little bit this weekend? a lot of rain. >> my daughter is back and it is her birthday >> enjoy >> another round of "squawk on the street" for you straight ahead. experience our advance standards safety technology on a full line of vehicles. at the lexus golden opportunity sales event. get 1.9% apr financing on the 2021 rx 350. experience amazing.
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good friday morning and welcome to another hour of "squawk on the street. i'm morgan brennan with david faber. we are live from post 9, carl has the morning off. let's get a quick check on markets as we see a lot of green on the screen. rebounding from the losses yesterday. the dow is up 1%, 350 points s&p up 0.7%. and nasdaq slightly higher, up about a quarter of a percent yields again in focus. we'll get in to that a little bit more in a moment and meantime wholesale enstories are just out and rick santelli has those numbers for you.
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>> indeed, our may final read on even stories, mid month released at up 1.1, that gets replaced with up 1.3. so we added a couple tenths and that of course is a good thing we know about some of the supply chain issues building inventories is key. and if we look at sales month over month up around 0.8% and that is followed by an upwardly revised up 1.1 that is a bit light because in march we were up 4.6 on sales. so sales being a little bit lighter of course than it has been running makes sense, you can't sell cars you don't have inventories are important. and on interest rates today, 134 and change on the ten year, that is up five on the day. up almost ten from the lows yesterday at 125 it is still now nine basis
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points on the week key technical level to pay attention to, right around 1.35 to 1.38. back to you. we're 30 minutes into the trading session and here are the three big movers we're watching. stamps.com surging after announcing that it will be acquired for $330 per share, a 67% premium over the ecommerce shipping software company's closing price yesterday. you can see shares are up almost 64% right now. the agreement includes a 40 day shopping period during which stamps can solicit other bids, so we'll keep an eye there meantime, general motors revving higher after initiation of outperform from web bush which forecasts the stock could jump as much as 50% betting that as the ev materializes, it will be rerated. shares are up 4% and finally watch yields, we
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mentioned them, big banks as well dramatic move lower in the ten year and you heard about the key levels to watch from rick santelli as we are at 1.34% on the ten year and of course that is helping to propel the big banks and financials overall best performing sector this morning in the s&p >> quite a move there. as the delta covid variant continues to spread, one question of course is should there be a booster shot to deal with it. our meg tirrell can help us try to answer that >> if you ask pfizer, the answer is yes the company laying off its strategy for boosters saying that it has seen encouraging data in giving a third dose of its vaccine against the original virus and also the beta variant, the one associated with south africa they say that they will file for emergency use authorization in august for a booster shot, that is of the original construct of the vaccine. it will have data soon of that against delta as well.
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but in case, they are also developing a delta specific booster just in case they need that although they do think the original vaccine should help with the third dose. now, all of this comes as they see real world data from israel suggest that immunity starts to wain about six months after the first shots against infection and mild disease importantly the shots are still very protective against serious illness. but pfizer saying a third dose may be needed 6 to 12 months after vaccination. guys, it is not clear that u.s. health regulators agree with this, but we do hear that israel will potentially have boosters there soon the fda and cdc saying americans who are fully vaccinated do not need booster shots at this time and that they will continue to look at the science and be guided by that and not exclusively by what pharmaceutical companies say >> a quick question.
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i realize that they say that they will be guided by the science, but how much of this is also the fact that there is still this push to get key pockets of the u.s. population vaccinated in the first place? >> i think there is a huge amount of that in the position we're seeing from the fda and cdc. they are still trying very hard to get people to get their first series of vaccinations saying yesterday really every person who gets vaccinated is a victory. and so they really don't want to take their eye off that ball and start talking about another round of shots already >> meg, thank you. speaking of various covid variants, fed president mary daly voiced concerns about the state of covid cases saying that one of the biggest risks to our global growth is that we prematurely declare victory on covid. for more on where the markets stand, joining us is from chief
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market strategist and also senior portfolio manager thanks to you both i can't figure out whether people are worried about a showdown or too much growth. where do you stand >> i think that is kind of the cause of market volatility, that we've had this period of time where we were all pushing in one direction to get to where we are today. people coming back to normal and now that we're here, i think people are moving in to two camps. the first one, that we'll get too much growth and that will cause inflation and maybe the fed to do something. the second camp is that delta variant where people are worried about too the growth combine that with some of the valuation fears and that is why you are having this volatility >> and where do you stand in terms of what you may be worried about or what you may be encouraged by? >> that's right, i think the market has bounced between too strong growth, fed acting early
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and the economy is going to slow down but i think we really should look for the economy to keep moving ahead we're thinking a growth rate of 3% to 4% over the next 12 months which is very supportive of the equity market. we see no sign that the fed will change their course so we think that is a good backdrop for stocks >> so which camp do you fall in, too much or too little growth and what does it mean in terms of how you'd be positioning now given the wall of worry and all the question marks >> i think the economy will remain strong. as far as the too much growth, too much inflation, i think that you will see inflation fears subside in the coming quarters and that will push stocks higher because the economy will still be growing so if you think about the consumer, their balance sheets are very strong. if you think about new orders versus low inventories, you have strong growth for at least the next year. and i think people are worried about peak growth too fast
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if it is a peak, it may be more like a high plateau. >> and so we know that the fed is doing to at some point begin to taper we know that t2023 is much more in play from a fed standpoint. that being said, the fed has also continued to hold pat and be very explicit in term of even as it tightens and comes out of this covid situation, that it is going to keep rates lower for longer so where do we see the ten year going next, does it ten to go lower, the yields that is, or does it go higher by the end of the year >> we think the ten year remains in a trading raenge, 1.25 to 1.75 really treasury rates in the immediate can't go anywhere when
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you have short ranks virtually at zero and the third year anchored by the fed buying and international demand for the long duration securities so we think that there is no change the fed's biggest mandate is employment they are nowhere near their employment goals, so they will say inflation is transitory no matter what the numbers say or what we investors think. >> and i want to come back to your relatively positive outlook. why do you believe inflation fears will subside >> i think that you are seeing some of the base effects coupled with supply and demand if you think about demand, it can come back fairly quickly supply disruptions are largely due to covid and the supply chains being disrupted i think that there is a bit of a slowing in demand and i think that allows the supply chain to catch up so i think over the next few quarters, you will see things follow for example like what has happened with lumber you saw the prices go from 600
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to 1600 and guess where they are today. back down to 700 so if you look at the median cpi for example or pce, they are somewhere between 1.9 to 12.6% >> and it is a key point and margie, you can't overlook the role that china is playing in the commodity market to help tamp down and maybe put a lid on some of the prices of some of those particularly industrial commodities too. i mean, i bring that up in a week where we're also having a conversation around chinese tech and crackdowns we're seeing there and the ripple effects that will have to the ip off the pipeline here in the u.s. too. do investors need to be paying closer attention to the goings on there and what it could mean more broadly to other markets including ours >> it looks like chinese growth is actually decelerate ing to
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something really closer to 5% this is not that far away from our own 3%, 4% growth. so again, another area of pressure on commodities that is very much dissipating. and of course most of the rest of the degree merging markets rely heavily on china for their own demand, so we think it will be rather muted. and growth may be a little bit of a disappalachianointment foro people >> thank you both, have a great weekend. as we head to a quick break, here is a look at our roadmap for the rest of the hour more on today's market action with a focus on tech as the am averages look for a third week in the green >> and then we'll take a look at sports team owner billionaires, that is what i'm going with. and why they may have a lower tax rate thank you do. and finally, ahead of richard branson's virgin
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as china cracks down on cryptocurrencies, what happens to those who mine for it >> reporter: these machines have been powering china's crypto
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mining industry. soon they will serve america's >> good luck to your service in the u.s. >> reporter: and this man runs a logistic firm that specializes in transporting crypto miners. since china's crackdown on the mining industry, his business is up 200% shipping out 10,000 miners in the past week alone from his warehouse >> there are chinese miners who are relocating to texas, new york, nebraska, where there is big mining operations. and there are some who just decided to leave the industry. >> reporter: he handles miners for companies that both move or quit miners are sold to him at a steep discount for resale to foreign buyers here the miners are repaired and tested >> typically we will run then 20 minutes to an hour >> reporter: they are deep cleaned and packaged >> the u.s. is everybody's first choice they have cheap power and very
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healthy environment for drin toe mining and then also u.s. is a free capital market >> reporter: the independent university grad thinks china is no longer an option. >> this is our last wave of business, so we want to catch this opportunity because maybe in six months to nine months from now, there won't be much for us to ship >> reporter: and he says the crackdown this time around is much more serious than in years past because the shutdown order came from beijing. and in case you're wondering why it looks like i'm in a wind tunnel, it is because to test these machines, it gets really hot and they use a lot of energy so they have these fans blowing all the time and they said sometimes in the back room it can get up to 122 degrees fahrenheit >> that is hot so just curious if you have miners looking to relocate to places like the u.s., is it really -- in terms of what is
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reloca relocati relocating, is it the equipment and machinery or the people that actually use that equipment and machinery and how easily can they move given the fact that we still have so much of the world in covid lockdown or restraints from a travel perspective? >> reporter: well, so far they are not talking so much about the people, but companies are having discussions to be able to move wholesale overseas. so it is companies looking to relocate, so they want to ship their miners to the united states as well as other places but also there are a lot of smaller companies that are just looking to get out of the business because they feel like it doesn't make a who le lot of financial sense. so those companies are selling to middle men like this low gu logistics company who can buy them for as low as half of the market place and then resell to foreign buyers >> what with china itself in
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terms of energy use, is that part of why this crackdown has been going on in terms of just overall they don't like the way energy is being used >> reporter: that is one comp component. one of the reasons in the past we've seen crackdowns on mining in crypto. however, this guy i interviewed today as well as many others have said that the crackdown this time around really shows that there is something greater going on and that is because the crackdown -- we saw crackdowns not only in coal mining regions in china, but also in places where there is a whole lot of hydro that powered the crypto mining so because the crackdown has been going on in those areas as well, a signal to a lot of the miners and folks in the industry here is that it is time to get out. >> eunice yoon, great reporting. thanks for joining us. later this hour, a look at space investing with the head of
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welcome back it is now time for our etf spot line, checking in on the materials through the spdr fund. we have seen at least until today within the sector, miners have continued to be under pressure but we are seeing a bounce today. the xlb is up 2% furthest from their highs, freeport, mosaic, newmont on speculation that downturn could be on the way. of course concerns about future global economic growth are playing a role there
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welcome back the white rolling out an expansive executive order scheduled for today targeting anti-competitive behavior across quite a number of industries ylan mui is joining us with the details we have. >> that's right, this new executive order hits a wide range of industries, big tech of course, but also health care, transportation, agriculture and even banking the white house says that federal agencies have not denied a bank merger application in 15 years so it is calling on regulators to update the merger guidelines and encouraging the cfpb to write rules that would allow consumers to download their financial data from their bank and take it with them when they leave >> how can we make it easier for an end consumer to have control of their financial information
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and then be able to move that information across platforms or across competitors doing that ultimately will unlock more competition because an individual customer will have more opportunity, less friction. >> another part of this order takes aim at internet service providers, which would include our own parent company comcast the white house wants the fcc to reinstate the net neutrality rules that were undone by the trump administration it is also asking the fcc to craft new regulations to limit those early termination fees that you have to pay when you switch providers currently the white house says that they average about 200 bucks. and the administration is seeking to stop landlords from signing exclusive agreements with internet providers that they say can lead to higher prices overall, there are 72 actions or recommendations in this executive order. it spans more than a dozen federal agencies and the bottom line message is that there are
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ways to encourage competition in every corner of the economy. let's stick with tech regulation and for that we'll go to julia boorstin, she has new comments from barry diller >> that's right, i just caught up with barry diller on his way into this conference this morning. he told me he had seen the news about the executive order on antitrust and he thinks that it is a good thing. >> i've felt for years that as these companies grow larger and larger and are monopolies, they have to have regulation. and i think that is healthy. >> now, of course diller's expedia and as well as parts of his iac have competed with google in the past also match which he objwns a pic of has to pay a fee to apple
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and so certainly will be interesting to see how this plays out. back over to you >> although i remember he benefited as well, that live nation deal when they brought all those together, he benefited from last antitrust enforcement some would say julia, thank you from beautiful sun valley let's ten with discussion with brad. as technology investor, somebody whose top holdings include some of the biggest names out there such as microsoft and alphabet, what are your thoughts -- and amazon, what are your thoughts on if you rfurther consolidatio further regulation >> one of the really interesting things about an information aenlg busin age business compared to industrial is you don't want to take the same approach to regulation because the network effects, the positive that can come out of consolidating a large amount of market share in an information
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age business, you don't want to tamp that town because you are actually creating more benefits for the consumer but what you do want to do is create open access, open data access, allow other companies to come in and access that data assuming that the consumers give con consent. and that is what we don't have so we recommend a more thoughtful approach to regulation but not taking these industrial age playbooks of breaking companies up or stopping them from doing things, that is not the approach the government is taking today, but that is one that we would argue for. >> what about those who argue simply that the power of these platforms is unprecedented and we haven't adjusted our antitrust regular tions to accot for that we've never seen companies with the scope or influence that they have in our influence. >> i think that is right we need to take a very thoughtful approach and what happens when the government has stepped in historically, and you
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look at financials, tobacco, energy, health care, look at any industry where the government has stepped in with a heavy hand, they have done what is called regulatory capture. the more regulatory burden you put on an industry, the higher cost it is to operate in that industry, the more difficult it is for a startup to come in and gain traction against the incumbents so often regulation cements the monopolies and you can look throughout the entire economy and prior regulated sectors where this has happened so what we don't want to do is take that same playbook. but we want to recognize that these companies have power, they are creating good, but how do we go after -- do it without c cementing them as monopolies and ensuring innovation, and that is to allow them to continue to grow while opening up access to their data and any services and products that they are using internally, external docompanie need to have access to that and
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consumer need to have control over that data >> how important is it for that dynamic to be in place not only here in the u.s. but dloeglobaly speaking we're seeing the crack tdown in china as well. >> one of the arguments for take a lighter hand is we don't want in the west to fall behind other tech companies such as those in china. so the fact that china is actually coming in being cracking down could be giving cover for the u.s. and europe to do a little more of that but i come back to the idea of regulation for an information age business should allow the network effects to continue because that is how the consumers ultimately benefit the most we think absolutely china is taking a potentially even heavier hand turning a lot of what were previously essentially private sector companies into state owned entities or state controlled entities, and that is
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a really difficult situation for investors. but i do think that it makes the u.s. and western platforms look more attractive from an investor perspective relative to the china sneeze ones even though we have this spector of increased regulation coming. >> so given this entire conversation, what is the next chapter for investing in this information age? what are you looking at as the next opportunities >> we think that we're still very early on in this transition from and that log to digital probably 90% of the economy to transition to digital. so we look at which companies are creating the most win/win, which are the most adaptable those are still many of the big cloud platforms, microsoft, amazon, alphabet which have the most positive outcomes for their customers. and then the real begin of this economic transition continues to be semiconductors. and i know there are issues with shortages, geopolitical issues
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which i think highlight the importance of semien come duct t tors we've had innovation around canals, railroad, oil and gas, and now it is really technology e innovation the next 100 years. and the he engine to that innovation is semiconductors there are a whole host of accept any conduct tore comor companier powering this global economy >> hence a significant prepasen in your portfolio. thanks for your time let's take a look at some of the notable retail apparel names outperforming. pch, in other wonordstrom, up ar more where you should be putting your money in the space race?
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experience amazing. this sunday morning if all goes according to plan, richard branson will make his long awaited journey to the edge of space. it is the first of three final test flights scheduled to take place the next few months as virgin galactic looked to relaunch and start commercial service in early 2022. branson along with three employees will test the cabin experience on this fourth crewed suborbital flight. he founded virgin galactic in 2004, he's invested up to a
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billion dollars personally and the mission coming just nine days ahead of of blue origin ast will fly jeff bezos past the edge of space as well. there are some key differences in the details, but overall, both speak to the long dreamed of, long discussed, long slated about space tourism market shares of virgin galactic around $50 right now, up about 12% over the past week since branson announced this flight. they are up more than 100% since the start of the year. so what does all of this mean for investors in the space sector especially as we also see a growing number of space names come to the public market. joining us now a chad anderson, space capital managing partner chad, great to have you. how major of a milestone are these space flights by these
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billionaire founders over the coming weeks >> it is a bid deal. and it is a great time to be investing in the space economy as you mentioned, this is 20 years of effort that is all coming to fruition at the same time by multiple companies so, you know, the human space flights are incredibly important to generate public awareness of what is going on and all of the incredible progress that is happening. but for us and the real opportunity here for investors is really in the data. >> so when you talk about data, i think about two different names that announced that they are going public via spac mergers this week. so when we talk about data and the monetizable opportunities there, what does that look like? >> yeah, this has been -- we've been operating in space for decades and we've had satellites in orbit that have been generating incredible valuable
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data about our planet, large legacy systems but in a very limited market a handful of defense contractors on one side and the government as a customer on the other and so everything that has been built for these very sophisticated customers. and so it is really making this data more accessible and in the 2010s, cloud computing really reshaped enterprise, but satellites for the most part did not participate in that. today you've got microsoft and amazon and basically all of big tech is alert and aware of the opportunity in space data, they are all trying to get the earth observation data on to their clouds for the storage and compute and for all the value added services on top of that. so they are really removing the complexity from the system and making it accessible for not just governments, but businesses and consumers to tap into this
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really valuable data set >> so just to shift back to human space flight and this idea of commercial space tourism for a moment, so much attention is focused on the so-called billionaire space race branne branson, bebezos, musk who does the orbital flights. how big is the total addressable market for actual space tourism? is it something that you would be putting money to work in right now? >> it is a very interesting question and just one of many categories within the space economy that we're looking at and i think a lot of people are comparing bezos and branson here because you've got two suborbital flights launching in the next week and a half so very interesting. but actually the ambitions of blue origin are much more comparable to spacex and what they are trying to do.
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so this is just one piece of what blue origin is doing. they are looking at larger rockets for launch, they have hiring job reqs out for orbital habitat designers. they are interested in a lot of these larger projects. trying to get budget from congress to support blue origin. and so the comparison is really more between blue origin bezos and musk at spacex although progress is a very different story. but no, i mean space tourism and human space flight is really taking off so this is a big week in the suborbital flights, but spacex has multiple orbital flights launched the inspiration, two crewed missions for nasa, they have more missions booked all
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commercial fully private missions later this year and next two years as well as a trip that is booked to fly someone around the moon so this is really an interesting time where we're seeing it all come together. >> chad, it is also an interesting time because so much capital is coming at this industry broadly speaking. but i'm curious as somebody who is allocating that capital, is there a particular part of what we call space right now that you think is going to return or have a greater return than perhaps another part >> yeah, and i can share with you some preliminary numbers every quarter we put out data on startup trends and investment activity in this category. and there has been about 10 pill i don't billion in q2, which brings the total to $200 billion in unique space companies. so a lot of activity particularly over the last few years. and in q2, half of that $10
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billion went into infrastructure companies. so the rockets and satellites that are generating this data, the data suppliers and this was also the largest quarter on record for infrastructure investment. so thinking about your portfolio and how we think about investing in this category, you don't want to put it all into the hardware. a lot of the value is actually in the application of this so what we're really looking to do is we're noticing all this infrastructure investment, we're trying to understand and monitoring very closely what are the data plays that will be built on top of this structure climate is a key area for us there is a huge climate opportunity right now and we're seeing a trend of more founders, starting companies, to focus on this area. and we've already started to deploy some some capital in some of these companies >> and i've heard that comparison made that some of these companies that are actually coming to market now,
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names like planet for example could potentially be esg plays because of that. finally, chad, for investors that are maybe awakening to the sector right now, in some ways i kind of think of it very similarly to investing in biotech. you need to have some sort of concept of the science of the technicals, some of these stocks can be very volatile as well the ones that are already publicly traded what are some of the i guess key methodologies or metrics that you use to value >> yes, i mean absolutely. this is a new category we've been again operating in space for decades, but as an investor category an opportunity for invest the realm the last f ten years. so incredible achievements are capturing the imagination. but it is important to day grounded and stay focused on not just the smoke and rockets but
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the data taking from the satellites and how satellite data is the invisible backbone that powers our global economy so the way that we look at the opportunities that is really looking at gps, greatest space technology successgenerated bil dollar, we're seeing that play out in geo spacial intelligence and satellite communication. and so we're looking across those three technology stacks and looking for investment opportunities in those areas >> all right chad anderson, thanks for joining us >> thank you next hour, he is a dissenting voice on the ftc, he joins tech check to chat antitrust regulation and a lot more an interview you won't want to miss noah phillips. stay with us
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i bet i do robert frank has a look at the latest tax scheme revealed by propublica this time around sports owners and their teams. >> i bet you do, i bet i do too. lebron james in fact, anthony davis, a lot of the nba players pay higher tax rates than the team owners and the reason is an obscure loophole that saves owners hundreds of millions in . in this article revealing steve ballmer reported $700 billion tax losses david tepper could expect $140 million a year thanks to his ownership of the panthers. and dan gilbert lowered his taxable income of the cavaliers. the secret is the deappreciate
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ateduse. expensing most of the $2 billion paid team owners say, look, we can abide by thoserule they can us those to offset other hedge fund
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sets >> not on the base but more on them being able to own them because you are so rich i didn't realize it offset the actual income from businesses >> and it explains why steve ballmer when he bought the clippers thinking he vastly overpaid >> you bake this in, and you can see why. >> we are happy about that robert frank let's check on the newest
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take a look at shares of apple underperforming but it's had a good week. market cap $2,221 billion. >> doesn't cease to amaze me >> the economy picking up with 2021 being the year of weddings.
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>> joining us from the knot worldwide. 20 to 25% increase in weddings is this just push forward given what we saw with the pandemic last year? >> yes, it is. we look back from last year. in the u.s., about 2 million weddings we saw about 50% happen. that means another million weddings got pushed forward we were able to see that push forward late summer and early fall p and the balance into 2022 as well >> and it looks like couples will be spending more on their
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weddings. >> i think that's just the sentiment that couples are ready to go all out. there's not really a better way to reenter from covid than bringing your closest friends and family together. >> many who said they are looking to bring people together continued focus on health and safety, so we are seeing budgets increase >> i feel like this is a leader
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indicator. leisure and hospital food >> i think that sentiment is right. this has been sort of the combination of a huge live event. you have elements of all of the items that have had a lot of hotel nights largely speaking centered around this special time, it is a leading indicator. >> thank you for joining us. >> get ready to attend a lot of weddings >> a good check on the markets seeing a bounce and regains that we saw from yesterday's market we mentioned apple $2,223
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million market value amazon has been surging over the last week. we did see record highs. seeing in general this week. just note financials are the best performing sector in the s&p and the financial market have a great weekend check tech starts now >> happy friday, welcome to tech check. coming up on the show today, president biden moves to curb big tech's power

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