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tv   Barrons Roundtable  FOX Business  July 16, 2021 10:00pm-10:30pm EDT

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taiwanese capability so there is enough time for the states air force to arrive. gerry: we are out of time but my great thanks to admiral mark montgomery, it's fascinating, i will be back next week with more in-depth interviews on the wall street journal on large in the meantime, thank you for joining us. ♪ ♪ ♪. jack: welcome to "barron's roundtable" where we get behind the headlines and prepare you for the weekend i'm jack otter. what will be the energy sources of the future duke energy ceo lynn good ways and stock picks in a forecast for the rest of the year from veteran investor bill priest we begin with the three most important things investors ought to be thinking about right now, new data
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showing inflation running out of todd is there more than a decade with falling bond yields tell a different story investors see the economy slowing not heating up, what gives american started receiving child tax credit payments and consumer stocks are expected to benefit and the rise of synthetic biology we will tell you were tech titans are investing and why sharks should be celebrating on my round table beverly goodman, carleton english and jack hough, the market hit an air pocket toward the end of the week does not reflect investor concerns over inflation? >> there is nothing about what's going on in the bond market that suggest concern over inflation the s&p 500 declined around 8% and financials were the best performer in mastercard and visa were strong, that's a good sign for confidence in consumer spending, energy was weak that could be more supply coming
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online. you look at where that leaves us, third quarter earnings season is starting and there's no reason not to expect a continuation of very strong earnings growth in ubs has dividend payments could rise 30% over the next couple of years because earnings have been so strong and company balance sheets are so strong, that is good news in a yield of world and if you looking for the bad news u.s. stock market 23 times earnings shall we say ambitiously priced and you mentioned bond yields they should be rising with inflation where it is right now if there was any concern that it was going to stay this high we sell the tenure yield backup below 1.3% this year, low yields are good for stocks and all that good news, the problem it's almost religious conviction that inflation is awkward to be a problem and if you are that confident about inflation is
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suggest to me that you think that next year economic growth might be on the lazy side. i would almost prefer it this point to see a crane cure bond market. jack: i don't know why you would except that yield if you expected anything to current growth to continue. real quick next week tech earnings coming out, what you looking up. >> netflix, at&t, intel, verizon, twitter i will watch for two things, netflix and at&t i want to see subscriber fatigue setting in now that people are getting out of working from home and getting ready to go back to the office especially around labor day and within tell i want to see if there's comments of what's going on with the chip shortage there was reports that intel could be considering major purchases of a chipmaker called global boundaries i don't if you heard a comment there but
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anything they can tell us about the chip shortage that affects so many different industries. jack: a bunch of cars sitting on lots that are completely ready to sell but they do not have chips in them. another potential tailwind for the economy and the market as a child tax care credit that's begun flowing into big accounts in the past few days, tell us about that. >> this year only the standard $2000 child tax credit was increased to 3600 per kid and as you noted for the first time ever that irs is determining eligibility and sending folks their monthly checks for the rest of this year, this is not being billed specifically a stimulus is meant to help people who are juggling childcare and other picked him a related issues but is expected to generate $37 billion in additional spending in the next year. jack: barron is not a surprise, let me look through an investor lends, what companies are poised
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to benefit the most as this flows into the economy? >> panelist expect $11 billion to be spent on groceries, walmart and target will benefit, another six and a half billion at restaurants wing stop interestingly 42% of their customers are getting the monthly checks, retailers like nike, footlocker and tj maxx will benefit, if you want to invest more broadly i have two etf's for you the spider smt retail etf has already been a winner this year and the invesco s&p small-cap consumer discretionary is also really well-positioned for the trend. jack: that is a mouthful but good advice. there is no good transition carlton but there is a fascinating story in barron's this week i can't pronounce about involves bill gates and sharks and reprogramming dna,
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tell us about this. >> were talking about synthetic biology testing high school level science knowledge but it merges biology with engineering to put it plainly there trying to produce products at a lower cost in a sustainable manner and one thing is to derive from shark livers you can actually build the product engineering deep cells. jack: that is amazing is always crazy in science fiction but there's really big names, great investors behind this. >> yeah bill gates, kathy wood and john durham and reporters of the industry say it could be 1 trillion-dollar industry, right now revenues don't even total 1 billion but there's a lot of hope in this space right now. jack: can you run to the companies of the names involved? >> look at a company like amorose the producer, ginkgo bio
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works which is looking to go public soon and they're looking to program sells the same way you would with a computer they are using the base tears and dna and emergent bioengineered products used in the electronics like the films that are used on cellular phones like the bendable bones and think that we are seeing. jack: my favorite quote in the story this is what it would've been like 25 years ago some guy walked in and said the internet an amazing investment, he is noisier what he's talking about. jack: duke energy ceo lynn good on the future of clean energy. that is next. ♪
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jack: duke energy one of the largest utilities in the nation aims to have net-zero carbon emissions by 2050 how is that possible and what sacrifices are necessary lynn good is here to explain. thank you for coming on the show. >> it is my pleasure. jack: i want to ask you big picture questions about duke's future, economic activity get the early indicators from energy usage, what are you seeing about the rebound post condemning. >> it is hard to say how close we are to normal times until we have more of a track record on the opening of the economy but residential has been strong throughout the pandemic as people have been working at home and now the economies opening up we see greater growth in our commercial industrial segment. jack: that makes sense, elliott management activist firm recently took a stake in duke the researchers the wall street researchers are little bit skeptical of this but what are
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your plans will change anything you're doing? >> we remain open to our shareholders is important to listen in our engagement with elliott we have not identified an idea that we believe creates long-term value but as i said we remain open and will continue to evaluate what makes sense for our investors over the long-term. jack: you have very ambitious plans for carbon rededuction, tl us about your thinking on that and will ratepayers or shareholders get harmed anyway them to make sacrifices in order to get there. jack: we believe pursuing a clean energy is good for customers and good for our investors and we really done a lot of homework we come from us drawn physician having lowered our carbon emissions by 40% we have a clear line on investments to double and triple renewables over the next decade and were advocating for the research and development that will be
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necessary for the technology we believe will need in the 30s and 40s, there is investment opportunity for our investors in a way to do this in an affordable reliable way driving on carbon emissions for customers. jack: one of the investments as batteries whether tesla power wall or a big utility old storage at your level where do we stand on batteries and where do we need to get to renewable energy be can be restored when it's needed. >> i believe battery technology represents a great opportunity and we are investing in the numbers on battery investment will be quite extraordinary duke alone but were also advocating and working with newer technology so will have an opportunity to store the energy for longer periods of time that is the breakthrough that we need to get to net-zero and so were lending her expertise and highlighting technology that we think will be important as we continue this journey. jack: it will be fascinating to
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watch if their cars into powering the house at night and the power goes back to the car later in the day let's ask about a different kind of energy nuclear six nuclear power plants but you talked about swallowing module what is the future of nuclear and can it compete as wind and solar come down. >> we believe nuclear is an important part of any discussion on carbon reduction or net-zero future because the operating characteristics of nuclear run all the time so you often hear challenges around intermittency and how you store energy, not the issue with nuclear we are pursuing second license renewal for our six plans to operate as long as we possibly can and lending are operating expertise to new technologies that we believe are not under developmental hold a lot of promise for the 2030s, 2040s to create nuclear power, story and use it in a way that
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continues to deliver low carbon. jack: tumor quick questions if we have time wind and solar, where do they stand in terms of competitiveness with natural gas. >> wind and solar represent extra ordinary assets and very competitive and they fit into a diverse mix but we continue to see some need for natural gas to knit together the system for reliability but we are big believers in wind and solar will be doubling our investment by 2025 in tripoli by 2030 and we look deeper renewables will be 40 - 50% of the energy mix at duke. jack: before we go there ratepayers over the near-term, two years, do you expect the rates will go up, go down, stay steady? >> whittlesey a lot of rate case and activity, i would say the focus of duke is finding the right balance between
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environmental stewardship, reliability and affordability we know our customers count on us on a residential homes or office and affordability is important at duke. >> you're in a fascinating industry over the next two decades it'll be fun to watch, thank you so much. >> coming up what to expect from the market in the second half of 2021 in stock picks from bill priest, that is next. ♪ (naj) at fisher investments, our clients know we have their backs. (other money manager) how do your clients know that? (naj) because as a fiduciary, it's our responsibility to always put clients first. (other money manager) so you do it because you have to? (naj) no, we do it because it's the right thing to do. we help clients enjoy a comfortable retirement. (other money manager) sounds like a big responsibility. (naj) one that we don't take lightly. it's why our fees are structured
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opportunities. bill priest of epic partners is a member and he joins us now from italy where he's vacationing, thank you so much for your loyalty you won't let the atlantic ocean get between you and barron's, we appreciate that. let's start off by getting a quick view of your market a quick synopsis of your market view. >> basically we are very positive on the market you have 2 trillion in savings and more stimulus to come the demand side of the economies going to be very strong the labor is going to take two years to get that bully back to where it could be but there's lots of momentum at the moment, the risk that people are concerned is inflation, inflation is not a problem unless he gets into wages and when he gets into wages it can become a problem but right now we don't think that is the likely outcome some of the other
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issues that we think about is a covariant weathered delta and that's in the developed world, tapered tantrum when one looks at that low people are packing and that's a forecast for the slow economy, i think they're missing the point if your japanese investor in u.s. treasuries is 100 basis points plus is the best since 2016, i don't think it tapered tantrum is likely. >> the meat of the roundtable is stock picks, carlton has a question for you and some of the other players in the space. >> i think t-mobile has an extraordinary opportunity it's going to disrupt verizon and at&t, it's not only going to growth customers faster but they
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have the best spectrum of any of these players in many computing applications that enable iot the internet of things moving to the edge of the cloud network and the best play is t-mobile, cash flow will grow high single digit but pre-cash flow will grow more as they pay down the debt that it took to acquire sprint we think it has 20% upside from here. jack: you have a healthcare picked that caught beverly goodman's i. >> you talk pandemic recovery rationale, go ahead. >> is a largest medical device company that is focused on cardiovascular medical surgery, and diabetes market and develops cells in services and medical therapies to hospitals, clinics and distributor's and someone but because of covid many of the elective surgeries or postponed and as you look at the years going forward this year medtronics can earn in the area
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of 575. we still think it's got 20% over the next couple of years. >> bill jack hough i see that it's gone kerplunk with other big tech names as we got the vaccine announcement last november is a selloff what attracted you to the stock and how long do you think it'll take before the cash flows ramp up to this one? >> spunk has been more speculative than the other two that i mentioned quality growth is going to come back it's already come back to be honest with you and there is a deeper piece of work growth will manifest, you will see an technology, you will see and science which is farmer related
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in communications, those three sectors continue to launch a lot of opportunities. jack: i know it's very late in capri we thank you for making the trek to the phone and the computer and talking to us we will see you back in the soon in the states. >> vicki very much. jack: roundtable members give their investment ideas for the coming weeks, stay right there. ♪ deposit, plan and pay with easy tools from chase. simplicity feels good. chase. make more of what's yours. ♪ ♪ ♪
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oh, hi i invested in invesco qqq a fund that invests in the innovators of the nasdaq 100 like you you don't have to be circuit design engineer to help push progress forward can i hold the chip? become an agent of innovation with invesco qqq >> there's a monthly subscription plan called me on i saw one for beef jerky called jerky snob i want to suggest were getting out of
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control with subscription services especially streaming i pay for a different tv services right now, how much did i have to drink the night i decided to subscribe to pbs passport to stream movies about national parks, i can't even remember it is time for me -- we talked about subscription fatigue a lot of folks are feeling that i'm going to recommend anybody putting new money to work in media stock they have plenty of growth you might want to wait until after the third quarter to see if we get heightened cancellation intent is pay your question $14 a month, i think you get one pair a month, i presume you could upgrade to a higher allotment. jack: what makes you think you're i'm not already a subscriber if you didn't say netflix during a pandemic i don't know when you will subscribe to netflix who are the
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most vulnerable companies? >> i saw one survey of an intent to turn and they talked about showtime and paramount plus which are cbs viacom, cbs viacom has a free service which is the kind of thing that you would want if they get more price-sensitive that is going to television shifts to streaming services. jack: let's move on to the actionable ideas, i will start with you carlton. >> taking a look at square one a proxy for people who want to invest crypto currency, to an analyst said investing in square now would be like investing a j.p. morgan in 1871 in addition to the crypto currency they like as a new bank especially with a cash out program that has. jack: imagine how well that would do with a full-time ceo, what is your pick beverly? >> more bad news for chinese stocks that trade in the u.s. china is a great long-term play
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but this is the time for professional management to that i like her fidelity in matthews china. >> much better than individual stocks thank you beverly and carlton and jack, check out this week's editions of don't forget to follow us on twitter at barron's online. we look forward to seeing you next week on "barron's roundtable". ♪


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