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tv   Worldwide Exchange  CNBC  November 8, 2021 5:00am-6:00am EST

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it is 5:00 a.m. in new york, 10:00 a.m. here in london and here's your top five at 5:00 stocks searching for direction to kick off the week as wall street kicks it off in record territory. elon musk taking to twitter asking his followers if he should unload 10% of tesla and foot the nearly $15 billion tax bill that would go with it president biden set to sign the first half of his signature infrastructure bill into law, democrats finally come together, still in limbo the nearly $2 trillion social spending plan call it the winter of
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europe's discontent. we take a closer look at what might be in store for europe and the uk as energy prices continue to surge to near record levels and new york city's next mayor dowelubling down on his support for crypto in the big apple. it's monday, november 8th, and this is "worldwide exchange." good morning, good afternoon, or good evening and welcome from wherever in the world you may be watching. i'm brian sullivan and this week we are right there, putting the worldwide and "worldwide exchange." we are live from london. we're not just hosting the show from this fine city but we're doing big days focussing on what could be a very expensive and maybe very dangerous energy crisis around the world this winter as the uk, europe and china all scramble to buy natural gas and even coal. today we lay out how we got here
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and where it likely leads. that is all day here on cnbc but right now we have a lot to do on "worldwide exchange. it's a very humane today, i might say, let's check your monday money, a decent start to the uk, futures on the dow higher the nasdaq down maybe 1.1% all the major afterverages at rr highs. we will tie the 11 day win street set back in december of 2019 sounds like that could be an rbi. the dow also on a weekly win street as well a lot of streaks at stake this week part of this because bond yields remain low the ten year yield below 1.5%. we continue to watch crypto.
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specifically ether topping 4,700 for the first time ever it's now up more than 500% this year if you put money in either a year ago, congratulations. you've made a lot of money, at least on -- i'd say on paper, but it's crypto. china out with its latest export numbers showing a surge of 27.1% in october versus a year ago wow. also buying a ton of coal by the way. here in europe we have a mixed trade none of the averages moving too big the ftse here in london down just a touch right now, let's kick off some of the key headlines you need to know to begin your week. christina is back at cnbc hq with those good morning. >> good morning. let's talk about new york. new york city mayor-elect eric adams is doubling down on his support for cryptocurrencies after tweeting he will take his
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first three checks in bitcoin. his tweet is a rally cry as he wants to make new york city a global hub for crypto inn innovation. >> that is what we must do open our schools to teach the technology and teach this new way of thinking when it comes to paying for goods and services. i want to make sure this city becomesa center for innovation no matter what that innovation is. >> bitcoin is up more than 100% this year and trading right now on an all-time high of 66088 pwc said it will create 20,000 new jobs in china over the next 30 years as part of a $1.25 billion investment the plan would double the company's china workforce and make it twice the size of its uk operations which currently
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employs some 22,000 people after nearly 20 months the u.s. is lifting pandemic era travel restrictions. starting today the travel ban is replaced by a new set of rules that will allow international invests from 30 countries in europe as well as canada and mexico into the countries. so as long as as they show proof of vaccination and a resent negative covid test. the restrictions were put in place march 2020 and later expanded by president biden. i've seen delta, american airlines both saying they're expecting almost 50% increase in international travelers. i heard your experience wasn't the greatest >> it was fine listen, for those that want to come this way, it's a little confusing. i've just done it, i'll tell you how it is, at least on united. you have to submit a negative pcr test, upload your vaccination card, i did that, took a rapid test that you have to upload to the government in
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two days, and then i have to take another test within 72 hours of coming back so i will have been tested three times in seven days, nothing wrong with that, but that's how it worked. i tried to get home earlier, looked at changing my flights, the ticket price went up 250%, so the demand is definitely there. >> i have no doubt i'm thankful because i'm a foreign national so i wasn't allowed to go to europe or anything until today now i can travel and come back i'm hoping lines won't be bad because i fly out tomorrow. >> we have our eyes on you crazy canucks. we're watching you canada, waiting for you to strike. >> we're your partners, your neighbors to the north except i'm here in the united states. don't forget that. >> we'll see you soon. thank you. back to the markets with the dow coming off its fifth straight winning week and all three major indexes continuing to notch new records as we head into the final few weeks of the
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year but could all of this be scuttled by what is happening in d.c. or will the big infrastructure bill or spending bill propel the markets to new highs. let's find out from michael farr chief market strategist at hightower advisers and a cnbc contributor. good to see you from afar. we have roads and bridges, social spending bill there what everyone thinks of these politically, forget that, will $1 trillion of invented new made up money going into the markets for the ten year propel us to new records or is inflation going to tear the whole thing down >> good morning, brian in london and from early here in the united states. i think you're on -- right you framed it properly we've got more money going if in we have an inflation problem we have markets making new highs
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and the markets are still a little less expensive than they were a year ago on a price to earnings basis but we're shoving more money in the market there's a lot of liquidity in the system the consumer has a lot of money. you'll see one of the best holiday spending seasons in years. consumers have cash. so prices moving higher, everything now in my opinion, depends on what the fed does will they hold back too long i fear they will i fear they're not being aggressive enough but even with the taper that's still half a trillion, $600 billion that they're going to continue to buy. so they continue to buy that, you get another trillion, it won't all come in the same year, in infrastructure. more cash into the system, clearly increases that demand and that puts more pressure on inflation, which puts more pressure on the fed. >> so there's so much to unpack
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there, michael, by the way so we have got -- listen, infrastructure, the roads are terrible, bridges are terrible, new jersey transit is terrible, amtrak is terrible we look forward to fixing these things but doing it in a market you're buying commodity highs for the next three, five, ten years. so we're paying more for copper, steel, i get it, but we have a 10 year yield under 1.5% again the market doesn't seem to care about inflation now. will it? >> i think, brian, it will and that ten-year yield i was talking to other folks, some of the halftime report investment committee gang last week we were all kind of puzzled with if inflation and the fed's tapering and if we have all of this going on, why is that ten year yield 147 it's a bit of a head scratcher but the bond market's message
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they're not as rosie for the future as we go the next couple of months particularly the growth we have the big supply chain issue and we have more purchasing we have the supply chain with prices going higher. does that end at some point. is capitalism solve that problem so we get back to 2.5% gdp growth if you look at growth of number employed, plus productivity you get back to 2.5% gdp growth. >> scott of googen hiem told me he didn't think interest rates would go above 2% forever, do you agree? quickly? >> no, i don't agree i think we get above 3% on the ten year it could be a year but i think gdp for 2022 still a strong number, 5 or 6% >> okay. sounds like we got a debate. michael farr love having you on "worldwide exchange. i know it's early but we love you for it.
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>> thank you, brian. love being here. >> you're welcome. we are getting started on this monday. when we come back, a closer look at europe's potential energy crisis, including what has gone wrong, where we go, and why winter could be much, much worse. but elon musk putting a part of his massive tesla stake on the line, and a potential $15 billion tax bill we'll explain. disney with a push to boost its streaming base and a cut for you, but is it a bad sign? a lot more to wn orwidohe"wldde exchange" rolls on right after this
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welcome back to "worldwide exchange." good monday morning. we are live in london. the city skyline just continues to grow like new york or maybe like miami we are in london all week long one reason why is that there is a very real chance that the uk, continental europe or both could face an energy crunch this winter natural gas prices have skyrocketed lately for years they bounced around 11 pounds or a high of 76 back in 2018 which people considered high at the time that is the bump in the middle left of your screen look at that, now they're at 189. while that is just off the recent highs, it is still a very
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rough situation. because utilities have to buy natural gas at these prices. with pricing caps imposed by the government they can't pass along all of the added costs which means many utilities are going to lose a lot of money which means as of today, about half of the smaller british gas and utility providers have closed up, disappeared almost overnight in the last month. leaving customers wondering who will pick up their power and the bill the weather has warmed up a bit in the last few days and it's been windy, that's a good sign but there are concerns about what happens if the winter is a very cold one like 2018. real concerns that many britains could lose their lives due to the cold how did the uk get into the situation? people want to blame one thing or another based on their political beliefs but it's more than that. first the uk closed the main natural gas storage facility called rough four years ago.
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so they have almost no long-term storage. then some weird weather, the wind didn't blow and the wind turbines didn't produce enough power. that left the uk which relies more on natural gas to heat homes than any other country in the world with few options except to buy natural gas on the spot markets at the prices we just showed you. finally there was brexit which hurt trade options, power deals and even labor bottom line it's a perfect storm and there's a lot of hoping and praying for a warmer winter this year let's tie this all together and bring it about with senior economist at aberdean standard it's your work and research i've been reading in the last couple of weeks that got me here. the arguments i laid out were the points that you had made as well if you were to point out the risks to this winter and how we
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got here, what would you say thank you brian. those are some very good points there. as you say, weather has been quite key and will be for the next six to seven months this is going to be a key drive for inflation not just the uk but many countries first of all we had the demand side of the issue with weather where we had poor winter in europe last year, a hot summer in the u.s. and canada this year we had stock piling by some asia countries as well for gas storage and comes at a time when industrial activity has been picking up and economies reopening. so demand side has been quite strong the weather has affected supply as well. so it's been intermittent across the solar and hydro backdrop and that led to a reliance on natural gas prices but this is a seasonal story there's also a longer term
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structural story as well that led to tight energy markets that's the climate change, regulatory change and the process of decarbonization has been the run for many countries leading to the shortages that we're seeing at the moment. >> that is the reason we are here we care about the uk, we care about all of our friends and viewers here, certainly in continental europe it could be a dangerous winter for people, particularly lower income ones that cannot afford to pay their bills but this is a structural story, the united states, states like california are undergoing these incredible and incredibly important long term shifts but there is a lesson here, which is that the transition has to be done smartly and carefully. >> yes. >> does it not >> exactly exactly right. that's right what we're seeing is a situation where there are very few options for substituting away from different type of energy sources and some countries dependent on
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one type, some nuclear, some gas, so it depends on the country here we're seeing a draw down in gas inventories across europe, you mentioned the uk, that's switching across and substituting between energy sources has been difficult switching between gas and coal has been difficult part of this is because of the decarbonization process has led to an underinvestment in coal. china has been one of the key drivers behind this increase in natural gas and liquid natural gas demand as well because they have been trying to switch households and factories away from dependency on coal to natural gas. and obviously this winter does lead to the issue of price spikes china is one of those countries that has been -- rather than having long term contracts they have been dipping into the spot markets and that's been pushing
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up prices across gas and coal. but yes, there is a story of underinvestment here >> again a lot of our viewers in the u.s. right now may be waking up and saying i worry because i have friends or family there, but how does it impact us? it impacts everybody because energy is not a regional story china is buying a lot of liquid natural gas, which is great but it takes supply away from europe so they have to buy more coal, which means they take it from india, which relies on coal more than anyone other than china it is all connected. >> it is, indeed and also, there are some connections here with the supply chain story as well. transportation of fuels, that's all feeding into the story it seems over the next six to even months these energy price rices along with other drivers such as supply chains and
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transport prices, these energy prices are going to be fuelling headline across a number of different countries. on top of that if we get a cold snap, that will lead to greater volatility in energy prices and potentially price spikes that feed into inflation. this is something we've been looking at in detail, country by country, energy resources, what are they using, the retail price cuts, the timing of those? how much is passed through to consumers. the flip side is that then the producers are impacted we're seeing it in the uk, some of the power producers have gone under. so there's an impact on just not inflation but activity over the coming months. >> half the smaller producers here, at least utility companies, have failed in the past month
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they're small but i talked to people who believe the big ones could go and have a financial-crisis like moment on the utility side we really appreciate you coming on thank you. >> thank you. a big story, one with many moving parts still on deck, it could be the costliest tweet in history what elon musk is asking his followers and why it might matter a lot to tesla stock. today, your customers want it all.
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welcome or welcome back and good monday morning. this is probably the most bizarre business story of the year if it's not, it has to be one of them tesla's stock down about 5.5% right now but not on earnings or fundamentals it's because over the weekend, elon musk got to twitter and talked about taxes, probably never a good idea. and in doing so he put out a poll asking his followers whether he should sell a chunk of tesla stock in part to avoid higher taxes down the road if the biden bill passes. robert frank joins us with how much musk may be on the hook for. do the thing and let's chat about it because this is a weird story. >> it's weird but not unexpected if you've been following his compensation as i have, brian as you mentioned, 3.5 million people voted in that twitter poll 58% supported that sale of 10% of his shares in tesla
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musk tweeting i will abide by the results of this poll, whichever way it goes. so he's probably selling but he likely would have sold anyway and that is because he faces a tax bill of up to $15 billion. now in 2012, he was awarded a compensation plan that granted him options on 23 million shares those expire next august the strike price on those options is about $6 a share. tesla now trading at over $1,200 a share. so his gain on those options will be around $28 billion the options, they're taxed as income, and they were earned in the california so his combined federal and state tax rate on that gain is about 45%. which would mean his tax bill is going to be around $15 billion so how will he pay it? he's doesn't take a salary, he's always been stock rich and cash
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poor so in order to pay this, he would have to pay about 12 million shares, that would pay the tax and still wind up with an additional 10 million shares in tesla after the options exercise he could have also borrowed against his existing shares to raise the cash, especially since his tesla stake is now worth over $200 billion. but he's already pledged more than 92 million shares per personal loans and as he tweeted out over the weekend, i do not take a salary or bonus from anywhere i only have stock. this is the only way for me to pay taxes personally is to sell that stock so, brian, many of us who have been following this for months knew this tax bill was coming up we also know that d.c. was l looking at tax increases for next year. so he's been talking in recent months, including in september, that he was probably going to start selling in the fourth quarter. this is a way to generate press and maybe alleviate some of the concerns about him doing it or
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why he's doing it. >> but my first thought when i saw it, robert, was a little more sort of, i don't want to say conspiracy theorist but a way that musk might be trying to teach d.c. a lesson. we've talked about it, tesla is not a stock. it is a cult it is the stock market in many ways, particularly with options, whatever if tesla's stock were to drop, the overall market could take a hit. i wonder if mr. musk was trying to say to congress, you want to do this, you want to come after my peeps, meaning the super, super, super rich. we can take down the market with us in a small way or am i getting way too into the weeds there? >> not at all. i think you're right in the sense he used something he was going to have to do anyway for economic reasons to make it political theatre. to make it something that not only galvanized his base, so to speak, but also poked at washington you saw senator ron wyden who
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came up with that tax on unrealized gains saying over the weekend, it shouldn't be up to a twitter poll to decide whether the wealthy pay taxes. but the bottom line here is, $15 billion is a huge tax bill it's hard for people to argue after this that elon musk doesn't pay his fair share >> yeah. i mean, why use a feather when you can use a kuj yule there we'll see if congress reacts see what happens with the market robert frank with another bizarre elon musk story. we appreciate it, brother. thank you. all right. as we head to break here on wex on this monday one big money mover today is disney are they getting desperate for streaming customers. disney offering one month of streaming plus for just $1.99. they normally charge $7.99 a month for disney plus. they'll include other offers to
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welcome back and good monday morning i am brian sullivan coming to you live from london we will be here all week long hosting the show and bringing you more about the uk and europe's potentially crippling
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energy crisis this winter and what it could mean for the states it's going to be a beautiful week here in london. by the way, with international travel reopening, come on over i'll buy you a pint. right now we have got a show to do let us get to it and get a look at your monday money futures are mixed. not seeing a big trade move either way, do you futures up 89 nasdaq is flat coming in, as i said earlier, it's been strength upon strength, all three major averages and the russell 2000 small caps are triading at recor highs. the dow coming in on a five week win streak look at that i say it and it appears. we'll see if that can continue give us the santa claus, early supply chain fuelled rally there we go. now to this morning's more of your top stories including
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berkshire hathaway's stock pile hitting a new record christina is back with more on that we talk about a cash pile, this is a carsh pile. >> this is a huge one as they saw an 18% increase in operating profit in the third quarter from a year ago that figure, coming in at nearly $6.5 billion thanks to a continued reround in the railroad, utilities and energy businesses also reporting the cash pile reached more than $149 billion at the end of the quarter up from 144 billion in the previous period, despite aggressive share buybacks by the company. chump change, right. american airlines is offering to raise pay for flight attendants in order to avoid a repeat of the last few weeks they'll receive time and a half during late november and late
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december trips if they have no absences during that period, they will receive another 150% pay and marvel's new super hero film "eternals" pulling in $71 million at the box office in the opening weekend. that debut marks the fourth best just behind "shang-chi" with the $75 billion opening in september. have you seen either, brian? >> i have not. >> neither have i. >> i read the economic books you have to remember, these movies are mostly stories from economic books that came out in the 1980s. comic sweet spots so the story lines link up. >> i read archies back in the late '80s, early '90s. that's about it. >> jughead never -- jughead always got a raw deal. always. >> that's true >> that's the best thank you. >> thank you. >> and the far side. thank you.
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now to washington where democrats are gearing up to shift their attention back to president biden's social spending bill. this after the house signed off on the $1 trillion infrastructure, roads and bridges, play late friday. now in addition to reaching the deal on the nearly $2 trillion build back better plan, congress also has the obligation to raise the debt limit, yes, again so what gets done? we are joined by andy blocker, head of u.s. government affairs at invesco great to have you on let's take the wins where we can. president biden getting that bipartisan, the b.i.f. biden infrastructure play over the finish line there, now the big one, you have the build back better plan which is primarily social spending programs handicap it for us, does that get done in some form? >> that's the question, brian. i think the answer to the question is it has to get done
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just like the bipartisan bill had to get done, politically this has to get done as well so right now biden wants to take a victory lap, say i campaigned on being able to work with the other side of the aisle, with republicans to get things done for the american people. he's done that it took longer than he wanted to, but he's going to be talking about that this week, the signing ceremony and all this, talking about all the jobs are going to create. but unless he builds on that and gets the build back better reconciliation bill done, it'll be all for not they're looking to try to get it done by thanksgiving, i think that's ambitious but we'll see >> yeah, and then you have the december 17th backstop as i understand it, all sort of tied into this debt limit reraising as well. there's going to be a lot of horse trading even in a city known for exceptional horse trading. who folds? does manchin fold first, do republicans get on board with any of it, or any of the
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moderates, do they fall into the fold how does it play out >> first and foremost, there is no way that the republicans get on board for this. they made it very clear that yes, we want to work with you on the bipartisan infrastructure bill but we want nothing to do with this reconciliation bill. so it's going to be 50 votes, all 50 votes, democrats in the senate plus kamala harris. and it's going to be everyone in the house except i think you can lose three votes it's interesting you mentioned congressman got jeimer in the latest bill there's a s.a.l.t. increase in the bill and that's important for new york and new jersey and moderates so there's not going to be a problem here, i think he's on board to help move it forward. i think the key is for the progressives, figure out which of the programs they're going to do without they've already not been able to do community college, stuck to the lower end as far as children and pre-k, et cetera
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and the question will be what other things they leave on the cutting room particular. cutting room floor. >> everyone wants to go after joe manchin and kyrsten sinema in the senate and moderate democrats in the house, but it now seems like the progressive side may be more of the issue. you had 19 of those sort of blocking their votes as well for the first part they want it to be bigger and they're suggesting if it's not bigger, we're going to go home they hate the s.a.l.t. deduction cap raise to 80,000, because it is in a sense, sort of a tax break for the upper income will the progressive wing of the party be able to get on board with maybe people watching in new jersey right now taking home a little more of their own money? >> i think that's a great point right now. i think what's happened over the last couple of weeks in particular -- over the last few months but particularly after the virginia race and the new jersey race, is that we've realized once again that
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politics trumps policy and what i mean by that is there's a political reality here that you can't get everything you want and as the new new york mayor said, practicality is progressive. you got to get done what you can get done i think the progressives right now are understanding this is not going to be 6 trillion, 3.5 trillion, it's somewhere between 1.5 and 2 trillion let's get the most you can do to show the american people doing something for them that's the debate. there's going to be hand wringing, public debating but at the end of the day, democrats hang together or they hang separately >> wrapping it up with a ben franklin quote i love it at 5:30 in the morning thank you can, andy. more to do i'm sure we'll get you back on a lot before the end of the year. on deck, walmart jumping on the robotic bandwagon, it wants to go driverless
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a look at their autonomous ambi ambitions when wex returns right after this
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walmart had 208 billion in grocery sales last year and is looking to gain market share by using driverless trucks to move online groceries orders. they partnered with gatik, they're gas powered trucks operate 12 hours every day, get loaded at warehouses called dark stores and travel to walmart locations they get unloaded and go back for a 7 mile round trip. walmart is moving to a hub and spoke model, operating smaller warehouses closer to customers that require more restocking they expect the autonomous tech to become more in demand as retailers follow the trend. >> the number of trips, the number of routes increases expone exponentially. so you have to use an autonomy solution like ours >> what you have to keep in mind is that grocery is traditionally
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a very thin margin business, 2 to 4%. so other retailers are also testing out the tech kroger testing it out with nuro in the houston area and using automation and warehouses to deliver groceries. albertsons is using remote control delivery with a start up called tortoise. here remote drivers use an x box controller to operate the vehicles grocers can save approximately 60% on delivery costs using their tech web bush estimates $750 billion in spending on commercial avs in the next five years. here's a couple stocks to look at aura and simple and embark and a couple of called plus will have special counsel -- spac investments this year. >> they're going to run out of
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names eventually but all this robotic stuff is cool, is it seen more as a way to help the labor shortage or, let's be honest, to cut costs because robots don't take sick days >> that's a great point, brian let's start with walmart for walmart i talked to them extensively. i asked them is this a cost cutting measure. they said, no, it's more about increasing capacity and allowing their associates to spend more time talking to customers, helping customers in the store because that's another aspect walmart is trying to ramp up their service. they want associates to have higher level functions talking to their customers that come into the store for other chains it's a cost cutting measure. from tortoise the idea is to cut cost on a 2 mile grocery deliver. and for many it makes sense to use robotics as opposed to hire a person to move the groceries
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>> i don't know if you would hire the robot what's your skill set? i don't take vacations and i never have to go to the bathroom it works. >> and i'm always up to code >> yeah. i like -- i see what you did there. the code thank you, frank holland appreciate it. >> brian, you're rubbing off on me >> that's not a good thing frank, take care president biden -- it's not punny. president biden's just passed infrastructure bill contains 17 billion to upgrade the nation's ports and strengthen supply chains but the billion dollar question is whether the money is going to do anything to ease the supply chain crunch and log jam in the near term because the situation is getting worse, not better according to a new report from rbc. let's talk to one of the authors of the report, michael tran. it's good to have you on 17 billion, d.c. likes to throw money at the problem that's fine except by the time that money goes through the
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system and people fight and argue over how to implement it and it's finally implemented, i'll probably be a grandfather is there anything -- and hopefully that won't be soon is that -- is there anything in the near term that's going to fix this, other than just time >> right brian it's such a great question look, infrastructure plan, you know, it's also been a month since biden implemented the call to arms where he said all these ports, you know, port of l.a. long beach needs to operate 24 hours a day, 7 days a week but at this point we think a lot of it is really political theatre, political grand standing because we have to get all the gifts under the christmas tree ahead of christmas. right. and we only have a short six weeks before we do that. so it gave him really a chance to look presidential but to your point it's ultimately just time i think what's really important here is, from our analysis, which is done by a team called
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digital intelligent strategy where we look at macro trends powered by big data we try to tackle the supply chain issues by looking at geospatial anal analytics. we're seeing it's taking about 7.7 days for a single ship to move through the port of l.a. and long beach and out the other side, compared to a month ago when the number was 6.4 days and, you know, presupply chain issues that number took about 3.6 days we're seeing these times really doubling versus historically normal levels and we're using data science to quantify the previously unquantifiable, brian. >> really interesting stuff. political theatre, michael you have to say you're doing something, right it's like 130 billion to, quote, reopen schools when most of the money is not going to be spent for years. but you have to try to convince people you're doing something. this time and turn around, these
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are huge ships the biggest in the world. i was at the port of charleston earlier this year they'll do a mid size ship in two days, two to four for the larger ones. nearly eight days to get a ship in, unloaded, loaded and out how bad could this get, why do you think it's not getting better, michael? >> so, brian, this is a great question so what we do, and when i say we're using big data to quantify some of the metrics. it's one thing to look into, or take an aerial shot of the port of l.a. and long beach and say there's a lot of ships in in the backlog but it's another way to quantify it. so we effectively look at three metrics. number one is we're able to quantify the labor shortage to a degree by looking at foot traffic along the port of l.a. and long beach on shore, how many workers are there we estimate there's probably about a 30% labor shortage
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the second thing we're able to do is we're able to use geospatial analytics to draw a geo fence around the water borne part of the port so we draw a boundary around the port and e're able to use ais on the ships to measure when the ships are entering our boundary and when they're exiting our boundary that's how we're able to do the math and right now the number is showing 7.7 days to turn around the ship. >> interesting stuff and using big data to figure this out. hopefully this is just the last peak of the holiday crunch i can't imagine it getting worse but it could michael tran of rbc, thank you >> thanks for having me. grace fadis is here with why liras poking around one obteted stock.
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dow futures are up 75. we're back right after this. growing up in a little red house, on the edge of a forest in norway, there were three things my family encouraged: kindness, honesty and hard work. over time, i've come to add a fourth: be curious. be curious about the world
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welcome back to the show and to the markets with stocks at all-time highs investors are looking to watch what could possibly fuel another rally through the year's end there's a number of possible drivers out there. you have your building off friday's better than expected job data, the fed throwing out its tapering playbook so it's now the known. could it be that government spending with the president trump's infrastructure bill is going to come to fruition adding a trillion more cash into the supply chain in the economy in the next coming years. let's find out with kate or there's a fifth option that we didn't put on the board, don't tell anybody it could be there's more buyers and sellers. because stock market strength can beget strength can it not right now. everybody is loving stocks right
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now. >> thank you for having me, brian. i don't know what's going to stop the stock market, good news, bad news, the market goes up up, up, up we're enjoying it. >> when you throw a couple of trillion dollars in fed easing and quantitative easing and build back better whatever you want, and there's 4 trillion in cash already sitting around globally, cate, as much as you hold your nose about it, it's hard not to be a bull especially as the number of stocks continues to through shrink through buybacks. >> in a zero interest rate environment. this is the perfect storm. where else are you going to put your money there's more money -- because of the pandemic, there's an extra, i believe, $2.3 trillion that americans have in their pockets. europeans have a similar amount. they want to spend markets going up >> well, this energy crunch in
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europe could be taking some money out of european's pockets we'll do that all week here. for now you might have heard my tease, you were poking around anno li a anno obliterated stock, zillow you're not buying it, it sounds like, but you're looking at it >> we're looking at zillow it hasn't been cut in half since the peak, it's down something like 70% this is a once in a lifetime opportunity, brian i think it's one you have to take so let's talk about what happened the company believed it could sell real estate, it could flip properties with ai guess what, it can't it discovered it cannot. you had adverse selection. if one was willing to sell to zillow, probably they couldn't get a better price they have $3 billion on real
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estate on their books that they have need to offload written their portfolio down by 300 million. i never cared for this business. the real money at zillow came from its daily users and its division where it pays commissions for realtors for lead generation. it's now trading at 7 times its tmt revenue. this is a buy. >> wow strong case for zillow quickly, kate, texas instruments -- we don't have time one sentence why you like them >> texas instruments is a great story that keeps working, got away from the semiconductor cycle, morris law, you have to buy texas instrewments they pay a dividend, cheap semiconductors for anything 2.4% dividend, make a free cash flow. >> boring by sexy.
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texas instruments and zillow thank you, grace that does it for us on "worldwide exchange. we'll see you back here live from london tomorrow as well i'll see you on "squawk box" as well the whole team picking up the coverage next. take care. have a great day -had enough? -no... arthritis. here. new aspercreme arthritis. full prescription-strength? reduces inflammation? thank the gods. don't thank them too soon. kick pain in the aspercreme. every day in business brings something new. so get the flexibility of d the new mobile servicen. designed for your small business. introducing comcast business mobile. you get the most reliable network with nationwide 5g included. and you can get unlimited data for just $30 per line per month when you get four lines or mix and match data options.
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available now for comcast business internet customers with no line-activation fees or term contract required. see if you can save by switching today. comcast business. powering possibilities. - [greg] military life can have its challenges, but sometimes veteran life brings more. - [announcer] as america's veterans face challenges, dav is there. - [greg] i'm greg gadson, army veteran. - [announcer] dav helps veterans and their families get the benefits they've earned. - [greg] today, i'm an entrepreneur, a photographer, and public speaker, and i never tire of standing tall. - [announcer] with the right support, more veterans can reach victories. - [greg] my victory is just being the best that i can be. - [announcer] support more victories for veterans. go to dav.org. good morning, stocks expected, don't know where we'll be by 9:30, obviously but expected to trade this monday in record territory with inflation
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data and key earnings on the calendar we'll get you ready for the trading week ahead elon musk asking twitter if he should sell 10% of his tesla stake, just 10%, $21 billion why it probably had to happen, though, whether or not twitter agreed but he said he'd abide by what twitter said. the house passing the infrastructure bill and a federal court temporarily blocking biden's administration -- the biden administration vaccine mandate for private companies. details straight ahead it's monday, november 8, 2021. "squawk box" begins right now. good morning, welcome to "squawk box" here on cnbc. i'm becky quick along with joe kernen andrew is off today. joe, we match pretty nicely

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