Skip to main content

tv   Worldwide Exchange  CNBC  August 9, 2021 5:00am-6:00am EDT

5:00 am
it is 5:00 a.m. in new york. here is your top five at 5:00 on monday covid cases surging in america again. pockets of the nation racing to catch up with vaccinations one head of the major union is backing mandatory vaccinations for members. and in washington, the senate with rare weekend sessions as it pushing forward the $1 trillion infrastructure bill more votes ahead this week. devastation in california as
5:01 am
the dixie wildfire is the second worst in history nearly 500,000 acres earned. containment is still weeks away. and berkshire hathaway and warren buffett betting big and how oscar meyer is getting in on dogecoin with a one-of-a-kind auction. it is monday, august 9th this is "worldwide exchange. good morning good afternoon or good evening welcome from wherever in the world you are watching i'm brian sullivan welcome. let's kick it off with your monday money right now, we are seeing futures down just a bit. dow futures off 101. about .20% nasdaq futures are mildly in the
5:02 am
green. overall, it has been a decent start to the month for certain tech technology nasdaq up over 1 % in august. it is not the typical names. it is micron and nvidia and biotech. regeneron. gaining 3% so far in august. what else is hot lately? crypto smoking. ethereum up 20% just this month coming into this morning right now, they have cooled off a touch. bitcoin is flat to slightly down ethereum off 1%. still a red hot august so far. we will get more on the cryptos in a couple of moments the big loser is crude oil crude oil down 4%. one of the biggest moves we have seen this year two things hitting crude number one, rising u.s. dollar
5:03 am
and the concerns about the global demand hit because of rising covid cases in china as well concerns about new lockdowns both of those taking their toll and oil is weak coming into the week it fell 7% last week sharpest weekly decline in nine months crude oil is down. natural gas remains hot. trading in europe is well under way. like us, there are concerns of global growth front and center let's get the latest and join julianna tatelbaum in our london newsroom with the moves and some of the early headlines julianna, good morning >> brian, good morning interestingly, that pull back in oil is not having much of a negative effect on european sentiment if equity markets. we are off to a mixed start. a bit of green on the italian and swiss and french markets little bit of red coming through. european investors seem to be
5:04 am
pausing for breath after the strong rally last week stoxx 600 out performed u.s. last week. rising 8.1%. cyclical stocks performed well last week. this morning, a pause after that run. we have a few key stocks in focus this morning from the corporate perspective. let's run through deliveroo shares up 10%. trading at the top of the stoxx 600 after the german rival delivery hero trading down 1.2%, has taken a 5.09% stake in the company. morrisons in focus after regulators extended the deadline for the suitor cd&r to advance the bid. and philip morris offer for
5:05 am
vectura. this morning, the uk takeover panel announced an auction process for vectura if the suit suitors do not make the final bid by tomorrow. it will make a further announcement at the end of the auction. tomorrow is an important date to watch for the company. shares in vectur higher this morning. brian. >> julianna, thank you very much. back home, a big night in washington as the senate holds a rare weekend session and now appears set to approve the $1 trillion infrastructure package. all this as the federal government continues to grapple with covid-19 and delta variant and rising case counts around the country. cases in new jersey, for example, now up 500% in just four weeks nbc's tracie potts has the latest on all of it. tracie, good morning
5:06 am
>> brian, good morning infrastructure there was movement on this overnight. a significant step in the senate that could open up and move fo forward the transportation projects new overnight, the senate is moving toward approving $1 trillion for infrastructure and transportation projects and internet sunday, 68 senators and democrats and republicans, voted to move forward. the senate is back midday today. we should see final approval tomorrow or wednesday. >> it has taken a while, but it will be worth it as hopefully we pass both bills very, very soon. >> reporter: the other bill, the go it alone plan for democrats $3.5 trillion for health care, education and environment. >> if you get this done, aryou r getting the $5.5 trillion deal done >> reporter: the house will
5:07 am
consider both in september by then, officials hope to have full fda approval for coronavirus vaccines prompting more people to get the shot. >> i believe some people on their own once it gets approved as a full approval, will go ahead and get vaccinated for those who do not want, i believe mandates need to be done >> reporter: some businesses are. schools back in session are weighing mask mandates florida's governor threatened to cut funding if they do >> i want the districts to stand up against the governor. >> reporter: with the delta variant up to six times more contagious than earlier versions of the virus some parents aren't taking chances. now as for booster shots, dr. fauci says those who are
5:08 am
immunocompromised are getting shots now. they are poring over the data to see when they may be needed. >> you have rsv. another respiratory infection that went away last year and now making a comeback like new jersey tracie potts, thank you and good morning. all right. covid is clearly on the mind of the market, it is not just that. earnings season wraps up this week many companies still left to report ten s&p 500 names and one dow. disney as well set to release their numbers. amc and coinbase and airbnb and more we are watching the federal reserve and its potential reduction of bond buying so-called taper. ahead of the big jackson hole, wyoming meeting. joining us is strategist kristina hooper. good to have you back on
5:09 am
hate all of the covid headlines. rise in cases. rise in hospitalizations do you believe that will alter the fed's thinking or the fed's ti timing >> certainly as it stands today, i don't think it will have much of an impact on the fed's timing or thinking. having said that, the situation could get worse. let's hope we go in the direction of the uk. especially now we're seeing some increase in vaccinations as of now, i think the fed is continuing to maintain that same thinking and timeline which i think we will see an announcement at jackson hole or some time soon after that. >> do you believe that is what the market expect, kristina? if the fed does something we don't expect, that is when the market tends to make big moves you think that is priced in and assuming they do it, the market will roll through it >> i'm not sure it is priced in
5:10 am
today. keep in mind, we have a few weeks between now and jackson hole for the fed to communicate that i think that they already starting to communicate that more we had richard claret come out this week and other fed members come out talking about the potential for tapers happening relatively soon. that drip is starting. the fed may very well manage expectations by the time we get to the end of august >> yeah. is the fed the most important thing to the stock market or to the bond market right now, kristina is it covid and lockdown concerns or is it earnings or is it something snelse >> it is a mosaic. we are looking at two risks. concerns about inflation
5:11 am
hastening and then tapering and covid. especially since delta variant has spread quickly and caused a rise in hospitalizations i think that on a day-to-day basis, we are seeing the market toggle between the two earnings are certainly in the rear-view mirror it is nice to have, but i think the concerns really are around inflation on the fed on one hand and the delta variant and spread of covid on the other hand >> is there some wild card out there, kristina, that is on your radar as well? concerns about china and not just about their rise of covid cases, too, but increased global tensions and increased issues in the middle east? is there anything else to watch out for right now? >> geopolitical concerns are heightening right now. usually they don't tend to have a significant impact on markets. what i am concerned about is the
5:12 am
rise of covid cases in southeast asia and in china because that could cause further disruption to the supply chain. that is likely to result in transitory inflation, not persistent inflation it certainly causes problems and certainly raises inflation in the shorter term it is something we have to be aware of there is that potential there. >> kristina hooper always a pleasure to have you on especially kicking off the week. the first guest of the week's first show thank you. >> thank you all right. when we come back, a big deal in big chicken? poultry problems push prices to all-time highs. plus, goldman sachs taking china down a peg or two. out with new growth forecast that you have to hear this morning. later on alert in albany
5:13 am
the lieutenant governor getting set to potentially take over as calls rise for scandal plagued andrew cuomo to resign tethhtusy hour still ahead rig afr is made to order or ready to go? with a hybrid, you don't have to choose. that's why insurers are going hybrid with ibm. with watson on a hybrid cloud they can use ai to help predict client needs and get the data they need to quickly design coverage for each one. businesses that want personalization and speed are going with a smarter hybrid cloud using the technology and expertise of ibm. nice bumping into you. i'm dad's greatest sandcastle - and greatest memory! but even i'm not as memorable as eating turkey hill chocolate peanut butter cup ice cream with real cocoa. well, that's the way the sandcastle crumbles. you can't beat turkey hill memories. wondering what actually goes into your multivitamin? at new chapter,
5:14 am
its' innovation, organic ingredients, and fermentation. fermentation? yes. formulated to help you body really truly absorb the natural goodness. new chapter. wellness, well done. comcast nbcuniversal is investing in entrepreneurs to bring what's next for sports technology to athletes, teams, and fans. that's why we created the sportstech accelerator, to invest in and develop the next generation of technology that will change the way we experience sports. we've already invested in entrepreneurs like ane swim, who develops products that provide hair protection
5:15 am
so that everyone can enjoy the freedom of swimming. like the athletes competing in tokyo, these entrepreneurs have a fierce work ethic and drive to achieve - to change the game and inspire the team of tomorrow. welcome back let's get to the other top stories. including details on the potential billion dollar deal in
5:16 am
chicken. bertha coombs is here. i have been waiting to say big deal in chicken. it is finally here >> reporter: you are relishing that let's start off with goldman sachs. dowgrading the growth forecast for china as efforts to slow the covid outbreak could hurt spending in other areas of the economy. in the note out last night, goldman expects china's full year gdp growth to hit 8.3% down from the estimate of 8.6%. annualized growth for the quarter should hit 2.3% down from the previous 5.8% estimate. virgin atlantic is planning to list itself on the london stock exchange according to sky news the british airline founded by richard branson received positive responses about the ipo. one that would see branson relinquish control of the business. big chicken.
5:17 am
sanderson farms nearing a bdeal to sell itself for $203 a share. a 30% premium to the closing price on friday. according to "the wall street journal" it is in talks with continental grain. the deal for the third largest chicken producer could come as soon as this morning, brian. wondering if there is a big review on big chicken. >> i was going to say you wonder if it will run af-fowl of regulators >> really? >> it's monday a lot of headlines give it to me, bertha coombs >> i'm givingit to you >> all right a charred landscape in
5:18 am
northern california as the dixie fire is the second largest in the state's history. we will give you a report on the devastating scene when "worldwide exchange" returns
5:19 am
does your vitamin c last twenty-four hours? only nature's bounty does. new immune twenty-four hour plus has longer lasting vitamin c. plus, herbal and other immune superstars. only from nature's bounty. ♪ music ♪ plus, herbal and other immune superstars. ♪ dream, dream when you're feeling blue ♪ ♪ dream, dream that's the thing to do ♪ ♪ music ♪
5:20 am
when you see value in all directions, you add value in all directions. accenture. let there be change. ♪ someone once told me, that i should get used to people staring. so i did. it's okay, you can stare. when you're a two-time gold medalist, it comes with the territory. welcome back to the historic wildfires burning out of control in northern california. we have guad venegas with the
5:21 am
latest from greenville, california >> reporter: overnight, the dictxie fire exploding to over 500,000 acres. driving more than 30,000 people out of their homes, the inferno destroyed 600 structures and threatening another 13,000 four firefighters injured in the firefight to cut lines the flames only 21% contained. the california governor surveying the recotown of greenville. >> you are seeing entire communities wiped off the map. >> reporter: the myers family opened the doors to many fleeing the flames >> he comes and hangs out. >> reporter: sheltering displaced neighbors and offering food and water bob johns is now one of the many homeless >> it came through so fast
5:22 am
you couldn't do anything but run. just devastation just kill me >> reporter: he's grateful for the support. >> someone gave you this trailer after you lost yours >> right >> reporter: we building is going to be tough. >> at my age, how will i start over again >> what do you feel when heyou e this happening >> this is a sense ofculture and lifestyle and identity >> reporter: an uncertain future in another relentless fire season >> just another tough season our thoughts and prayers to everybody in california. thanks to guad outside greenville a landmark u.n. report on climate change this morning has delivered a stark warning. it is quote code red for humanity in about a decade, temperatures will blow past warming levels set in the 2015 paris climate
5:23 am
agreement. that headline will get more attention today. the fire, a huge story, but headlines in albany, new york. calls rise for new york's governor to step down. let's get more on that and the wrapping up of the olympics with nbc's frances rivera good morning, frances. >> brian, good morning we start with the taliban which captured a city in northern afghanistan. it is continuing the rapid offensive across the country it is the fifth capital taken by the taliban with the american troop withdrawals. walls are caving in for andrew cuomo one of the top aides has resigned melissa derosa announced the dehe sig dec decision the past two years have been mentally trying. the departure comes after the report by the attorney general alleged the governor harassed 11 women. her name comes up 187 times in
5:24 am
the report cuomo denies any wrongdoing and refuses to step down today, a judiciary committee will discuss the grounds to impeach the governor the last time new york attempted this was 1913. a joyful ending for the long journey for tokyo as the olympic torch is extinguished. many familiar faces already left for home due to the pandemic protocols. the u.s. led the gold medal count. olympic games are over as a viewer pointed out, you have the gaming coming up. >> congratulations to the organizations around the world who said it could not be done. we enjoyed watching.
5:25 am
it f it frances, thank you allegations over alibaba over sexual harassment inside the commerce giant if you haven't already, follow our podcast on apple and spotify and tstitcher and other. oil off at 4%. we're back right after this. sales are down from last quarter but we are hoping things will pick up by q3. yeah...uh... doug? sorry about that. umm... you alright? [sigh] [ding] never settle with power e*trade. it has powerful, easy-to-use tools to help you find opportunities, 24/7 support when you need answers plus some of the lowest options and futures contract prices around. don't get mad. get e*trade and start trading today.
5:26 am
comcast nbcuniversal is investing in entrepreneurs to bring what's next for sports technology to athletes, teams, and fans.
5:27 am
that's why we created the sportstech accelerator, to invest in and develop the next generation of technology that will change the way we experience sports. we've already invested in entrepreneurs like ane swim, who develops products that provide hair protection so that everyone can enjoy the freedom of swimming. like the athletes competing in tokyo, these entrepreneurs have a fierce work ethic and drive to achieve - to change the game and inspire the team of tomorrow. [sec. of state condoleezza rice] standing for the cause of liberty is as old as our country itself. [pres. george w. bush] it is the american story, a story of fallible people, united across the generations by grand and enduring ideals. [pres. barack obama] the time has come to reaffirm our enduring spirit, to carry forward that promise that all are equal and all deserve a chance to pursue their full measure of happiness.
5:28 am
get ready. a big week for earnings, inflation and economic data and fed speak all set to roll out as stocks sit at records. and in d.c., the senate wants to pass a $1 trillion infrastructure bill, but the house may hold all of the cards. libby cantrell tashas the take away. and the earnings of omaha has the big bet on one big stock. we will tell you about it on monday, august 9th this is "worldwide exchange." welcome or welcome back. thanks for joining us for the week here on "worldwide
5:29 am
exchange." let's get a look at the stocks and your money dow down 1%. technology stocks are up four po points pretty good start to the month for certain technology nasdaq up for the month. it is not the usual names leading the way. not the apple or amazon, but semiconductor names like nvidia and micron and bio-tech gaining 3% this month. we also, this morning, have to take a look at energy. oil is the big loser of the morning. concerns of the rise of china cases and maybe new lockdowns there. demand for oil may fall with one of the world's biggest oil buyers oil is down 4% watching that at $65.50.
5:30 am
natural gas has been the quequiet story. natural gas above $4 that will have many ripple impacts through the economy. so much is powered by natural gas with energy and other products as well year to date, natural gas up 63%. something big to watch with that gas as well as oil this morning. right now, to thelatest on the growing concerns surrounding the pandemic the number of new cases rebounded to levels not seen since the past winter surge. in new jersey, cases here up more than 500% in just four weeks. as of friday, the cdc reporting that cases overall surpassed 100,000 a day on average amid the continued uptick, dr.
5:31 am
fo fauci is giving an update on the vaccine for the emergency use approval fauci says this could lead to a new wave of vaccine mandates in the private sector as well as schools. speaking on that matter, because you have kids and you care, the head of the national teachers union says she has reversed her view on mandating vaccinations saying she is now more in favor of mandatory shots for your kids teachers >> we are this week to revisit and reconsider our policy that we passed in october about voluntary -- the best way to do this was to do it voluntarily. let me say, my members stepped up 90% of the teacher members have actually gotten the vaccine.
5:32 am
i do think that the circumstances have changed and that vaccination is a community responsibility >> big change there for the american federation of teachers and maybe good news for parents. amid the continued vaccine push in the country over half of americans are fully vaccinated and nearly 60% with one dose the pace of vaccinations could pop in recent weeks. to othe other top stories an including one oracle of omaha. bertha coombs is back with these. >> thank you berkshire hathaway quarterly results benefitting from the recovery of the economy. conglomerate with earnings of $6.9 billion in the second
5:33 am
quarter. up 21% from a year ago as the railroad and energy units thrived. buffett continued to buy back berkshire shares repurchasing $6 billion of the company stock. berkshire's cash pile stood at $144 billion less than apple, but near record despite the stock buy back. turning to alibaba the chinese ecommerce giant reportedly fired a manager accused of sexually assaulting a female employee. the apparent move comes after a female staffer posted her account on alibaba's intranet in which she said the supervisor and client sexually assaulted her on a business trip and managers took no action. alibaba launched an investigation into the matter. a federal judge granted nor
5:34 am
we nor norwegien cruise line over proof of vaccination it is fighting the ban from florida over showing proof of vaccination. that coming on the order of governor ron de santis brian, the courts upheld governments imposing man an dadate mandates you have executive leaders imposing bans on mandates, if you will >> yeah, the fight is so bizarre. we have corporate america and many companies saying if you want to come back to the office and we want you back in the office then you need to get vaccinated show the vaccine passport or whatever you call it and to get into a restaurant. we are still having a discussion of teachers being mandatory
5:35 am
vaccinated it is an odd discussion. bertha, thank you very much. now to capitol hill. the senate moving closer to the $1 trillion infrastructure package vote lawmakers are set to return today to continue 30 hours of debate needed before the final vote on passage which is expected tomorrow morning. the legislation marathon does not stop democrats plan to take up $3.5 trillion resolution after the infrastructure package, expected passage and let's not forget the talk about the senate. the house has a say and actually holds all of the cards for what you need to and tying your money and markets is libby with pimco. there is so much done with congress in the last year and a half let's separate it. first, call it the pure
5:36 am
infrastructure bill the senate is about to pass do you believe nancy pelosi and the house will then pass that package? >> good morning, brian yes, we do there may be some noise and some of the members on the progressive side may need to hold their nose. we are expecting it later today to pass it they may not pass it until they return from august recess. we expect by the end of september for the bipartisan bill known as the bib to pass both chambers. that is the beginning in terms of the spending bills. there will be more action in the senate and the house on the democrat only bill with more noise over the coming months
5:37 am
>> because the one we're talking about right now, that $1 trillion one, that is for things we all think about as infrastructure, roads, bridges the president and senate want to sell the public that everything is infrastructure. whatever you want to call it, it is infrastructure. the $3.5 trillion next package, the budget reconciliation. that's the one that will get the markets and really america's attention, is it not >> that's right. it is the way we are thinking about it the eighth or ninth inning in the bipartisan bill. we are in the secondinning of the bigger, more expansive definition of infrastructure as you point out. soft infrastructure bill this is confusing and in the weeds. it is important. the senate will likely take up a $3.5 trillion budget that's non-binding and that's important because it simply unlocks the
5:38 am
reconciliation process the beginning of the democratic-only partisan process. that will be followed by a binding bill that we expect to be much smaller. $3.5 trillion number, we are telling our clients to put that into context and likely will be much more watered down and the final form brian, to your point, this is where the market will be fo focused. not only will it include more spending, which the market cares about, but also likely be funded by some tax increases. again, we think the tax increases will be significantly watered down from what president biden proposed they will likely be included at the end of the day >> kind of quietly ron widen of oregon rolling out his tax plan of carried interest he wants to get away with that loophole that's a big one that could could a big revenue r
5:39 am
the tax hikes are still out there? >> it is a political low hanging fruit for democrats. we do expect that the closing of the interest loophole will be included in the final bill that is ultimately considered not until the end of the year. it actually doesn't raise that much revenue $15 billion over ten years it is a great political talking point for democrats. things that do raise revenue is an increase in the corporate tax rate our expectation it does not go to 28% like president biden pro proposed some other things as well. we think the tax increases --ike increasing more incremental than what
5:40 am
president biden proposed >> there is something in the wider plan to eliminate tax de deferrals. it is too complicated to talk about it at 5:00 a.m libby cantrill, thank you. thank you, brian >> thank you a lot of headlines on covid. a bunch of stuff and taxes coming up, look at that. cryptos continue to mount their big comeback ethereum up 20% in just six days we'll look at the renewed momentum and whether they will continue they are all up right now. as we head to break. other top headlines. saudi aramco with a 300% jump in the second quarter after
5:41 am
recovery in demand it will maintain the $18.8 billion dividend. tiktok set a timeline for its ipo. according to the financial times, bytedance is eyeing2022 for the ipo in hong kong panera bread is recalling soups if several states after complaints of glove pieces in the soup recall impacts more than 6,000 containers that went to florida, texas, georgia and arizona if you got packaged soup and open it up for lunch today, maybe look for a piece of a rubber glove dofures w tuare down 93. we're back after this. the ey entrepreneurs access network has a tremendous impact on my business because it's given me networks, access to capital, and access to opportunities. the level of coaching that i get
5:42 am
has had a tremendous impact. it allows companies like mine and others to grow, and it closes the wealth gap in this country.
5:43 am
5:44 am
welcome back after the surge of three month highs, the price of bitcoin back to $44,000 ethereum is close to double. up 80% in 30 days. but then there's this. oscar mayer, the hot dog company, the latest to jump on the crypto craze an auction ending that saw people bid on the one-of-a-kind of hot doge wieners.
5:45 am
the winning bid at $15,001 for the pack and 20,000 dogecoin worth $4,000 $15,000 got you a bag of hot dogs and 4,000 dogecoin. joining us now is danny nelson i'll not ask you about oscar mayer. those are the things that i think real investors and serious investors look at and go really? not now. anyway, to what do you ascribe this massive run in crypto and ethereum and in plain english because it is 5:45 in the morning. can you explain the recent forking and i want our viewers to know i said forking >> with the recent run up in crypto prices, we see more on risk appetite.
5:46 am
i don't know why anyone would pay so much for a pack of wie wieners. there are so many issues with the growth of ethereum and crypto overall because of the transactions that run through the network and the forking, in the most simple terms, is the effort to change the way it works behind the scenes to make it a lot better in processing transactions and more efficient. >> yeah. do you think that post -- this is hard to say post-forking rally is going to stay or is it a short-term anomalies that causes things to happen under the hood, danny, because we had been in a period of weakness. what are you hearing about the future path? >> i think it is really hard to track where the prices are going
5:47 am
to go day-to-day i think the forking is going to keep the price of ethereum up in the long term as investors look to what this is becoming a world computer of sorts and it is working better under the hood in terms of what it set out to do if you have a network that works better and able to do more with it and able to do more with it, you have more of a use case. i can see that the price might be a little more sustainable going forward. >> you think people, overall, were seeing the chart that ethereum out performed by a large measure? the attention is not off bitcoin, but you look at the metrics on your web site is ethereum where it's at right now? >> to those in the know, i think ethereum really stands out as something that is attractive as an investment because you have so much more you can do with it than with bitcoin. bitcoin, we make a joke in the
5:48 am
industry numbers go up with the technology it depends how you look at it. you can build so many things on top of it and at least for those really tracking the space closely. it might stand out more as an attractive investment opportunity. >> yeah. people out there that can compare it to the intranet 2.0 or a new app environment with the creation of the phone. we'll see how it plays out danny nelson, pleasure to have you on the program take care. >> thank you you're welcome on deck, jeff killburg is here we talked about a lot. jeff will tie it all together. the morning rbi and why the tough talk with moscow and washington maybe not dampening america's love to russian oil. new numbers. dow futures down 104 we're back after this.
5:49 am
[engine revs] ricky bobby, today the road is your classroom. [zippers fasten] [engine revs] woo-hoo! it's time for your extracurriculars. ¡vámanos, amigos! this past year has felt like a long, long norwegian winter. it's time for your extracurriculars.
5:50 am
but eventually, with spring comes rebirth. everything begins anew. and many of us realize a fundamental human need to connect with other like-minded people. welcome back to the world. viking. exploring the world in comfort... once again. if you're 55 and up, t- mobile has plans built just for you. switch today and get 2 lines of unlimited and 2 free smartphones. plus you'll now get netflix on us. all this for up to 50% off vs. verizon. it's all included. 2 lines of unlimited for only $70 bucks. and this rate is fixed. you'll pay exactly $70 bucks total. this month and every month. only at t-mobile.
5:51 am
welcome back breaking news on tesla jefferies. upgrading tesla with a buy to $850 target. he says he likes the direct sale model and return of capital. tesla upgraded to a buy at $850 price target a lot of upside there. that falls into the morning rbi. this one has to do with oil and our old pal russia maybe this is not the news you want to hear, but we'll give it to you anyway. according to recent government data, america has a new love
5:52 am
affair with russia oil products. overall, america tanked in 23% more russian oil or oil products in may closing in on nearly 850,000 barrels per day. that makes russia america's second largest oil producer behind canada. one reason is russian oil is nasty. thick and sludgy like venezuelan oil. we need that for diesel fuel importing from venezuela collapsed with sanctions and american oil production is $2 bil billion below its peak american refineries are running hot on russian crude oil i think and hope random and interesting. now time to wrap it up and
5:53 am
show it with a guest jeff killburg. no russian will be spoken in the interview. jeff, from the macro market perspective. cio macro. concerns about lockdowns what do you see? >> a lot to digest, sully. we are winding down earnings season this week, we have a bit of calmness we are reverting attention back to inflation we talk about inflation all spring and summer. here we are with cpi and ppi this week. we also have fed speak two voting members talking this week by the end of the day, the eight-letter word, called tapering, i think the market has it misunderstood we had a great jobs number last friday and the fed is now insinuating a tapering at the jackson hole meeting later this month or tapering suggesting it
5:54 am
is coming sooner than september. tapering is not bad for the marketplace. if they go under $8 trillion, that could be a negative headwind right now, the market is in cruise control i'm optimistic on equity >> you don't see any chance they will do that you think there is no way it will happen or small chance? >> i don't see that. i think they will try to understand and unpack the delta variant as we all are and nonetheless, they are data dependent. we had an enthusiastic jobs numbers at943,000 new jobs in july we saw a surge in hiring and wages. they need consistency. they are looking more multiple months before they decide anything i did not see a rate hike in 2022 i'm more dovish. the equity market will turn higher there are skeptics, sully. you need exposure. that is how you dance.
5:55 am
look at berkshire. they talked about their earnings growth it is interesting to see berkshire and warren buffett aggressively buying back their shares in 2020 $25 billion worth of buy back. i think you have to understand and this is what the earnings season gifted us gave us forward guidance we have uncertainty with the delta variant, but a lot of the pieces of the puzzle and the concerns will grind markets higher. >> we know buffett loves the railroads. you and i have gone back and forth. are you selling the transports >> for the first time i bought the transports iyt. we are booking profits remember, 70% of the portfolio is in four names apple and bank of america and american express and coca-cola
5:56 am
it is a laggard year to date we get excited overall on the three-year perspective t dra , it dragged the s&p we are rolling in ieo. look at conoco phillips with the opportunity despite energy down 7% thus far in august. >> oil is down about 4% this morning. concerns of demand growth in china and the rise of the dollar are you buying into weakness >> we are. we are seeing more of the political move with the price of crude which is effecting the energy names i think the demand and we will get over the hurdle. we are considering the demand from china with the delta variant. i think the strength is revealing the fact this is a buy. this is a gift. >> and by the way, natural gas
5:57 am
up 63% this year natural gas is beneficial for the companies. jeff kilburg thank you. >> thank you, sully. with that, you are welcome, jeff, we are done for the day. oil is down and crypto is up so much to do. i'm gone "squawk" and the gang picking it up next. have a great day and chasing fireflies.e crm don't worry about me. i'm fine. you can't beat turkey hill memories. sofi is a one-stop shop for your finances designed to work better together. save, spend, borrow, invest, and earn cash back rewards, all in one app. that's how you get your money right with sofi. it's taken a lot to get to this moment. ♪ grew up at midnight - the maccabees ♪ dreams are on the line.
5:58 am
you got this. refresh... it all, comes down, to this. ♪♪
5:59 am
good morning dow futures point to a slight pull back from the record high we have a breakdown and data points that could move the markets. bipartisan infrastructure bill clears hurdles. we go to washington for the
6:00 am
latest. a judge siding with the cruise line over the florida law that prevents from having about the vaccination status details ahead. it is monday, august 9th, 2021 "squawk box" begins right now. good morning welcome to "squawk box" here on cnbc i'm melissa lee along with andrew ross sorkin becky and joe are off this morning. >> welcome so much numbers with the jobs and markets. it's something. >> as you mentioned, equity off the lower. the dow opening down 88 points s&p 500 looking to lose 76 treasury yields. we hit


info Stream Only

Uploaded by TV Archive on