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[00:00.000 --> 00:06.640]  nbc dot com slash invest in you next on squat box reaction to quarterly numbers from lift
[00:06.640 --> 00:11.840]  what challenges and changes to the roadmap could steer investors to the rideshare company
[00:11.840 --> 00:16.560]  squat box today 6 a.m eastern watch or listen live on the cnbc app
[00:19.040 --> 00:24.160]  it's 5 a.m at cnbc global headquarters here is your five at five investors racing for
[00:24.160 --> 00:28.560]  the higher open as fed chairman jay powell heads back to capitol hill what president
[00:28.560 --> 00:33.360]  trump had to say about yesterday's testimony that's coming up and boeing raising the red
[00:33.360 --> 00:39.440]  flag over a potential impact from the coronavirus outbreak lift shares sinking this morning why
[00:39.440 --> 00:44.240]  some investors say its ceo needs to get his priorities in order we speak with an early
[00:44.240 --> 00:50.000]  investor in the company and a new meeting for maga what president trump has to say about silicon
[00:50.000 --> 00:55.760]  valley's tech titans and a slim win in new hampshire as bernie sanders claims victory in
[00:55.760 --> 01:02.320]  the grand estate yet again it's wednesday february 12 2020 and robot exchange begins right now
[01:12.560 --> 01:16.880]  good morning and welcome i'm corny reagan and this morning for brian sullivan your chart of
[01:16.880 --> 01:21.760]  the day it's kind of an ugly one shares of bed bath and beyond sinking look at this more than
[01:21.760 --> 01:27.120]  20 percent here the company announcing preliminary guidance for its fourth quarter coming in well
[01:27.120 --> 01:31.840]  below expectations much more on that just a moment we're going to give you a look at how
[01:31.840 --> 01:37.280]  futures are looking on this wednesday morning stocks do look to open in record territory here
[01:37.280 --> 01:42.320]  this morning with the dow jones industrial average indicated higher by more than 106 points the smp
[01:42.320 --> 01:48.960]  500 higher by almost 12 in the nasdaq tacking on an extra 47 points in the early going let's get
[01:48.960 --> 01:54.480]  a check in the fixed income market take a look at the yield on bonds and look at the tenure which
[01:54.480 --> 02:01.120]  we're seeing tick higher again here today at 1.620 after we'd seen that yield fall for several
[02:01.120 --> 02:06.320]  sessions in a row as perhaps flashing some warning signs that the equity market wasn't
[02:06.320 --> 02:11.440]  quite seeing let's go worldwide now and take a look at the green arrows really around the world
[02:11.440 --> 02:16.640]  in asia japan china you name it pretty much higher across the board heng saying higher by
[02:16.640 --> 02:21.520]  nine tenths of a percent the shanghai composite higher by about the same in the japanese nikke
[02:21.520 --> 02:28.640]  adding on three quarters of a of a point and let's take a look at europe in the early going also some
[02:28.640 --> 02:34.160]  green arrows across the world around the world in europe the german's extra tax higher by six
[02:34.160 --> 02:38.400]  tenths of a percent footsie 100 higher just marginally but two tenths of a percent that
[02:38.400 --> 02:44.240]  counts as green and france higher by three tenths of a percent investors are waking up to a lot to
[02:44.240 --> 02:48.800]  chew on this morning frankly federal reserve chairman jay powell under renewed pressure from
[02:48.800 --> 02:54.480]  president trump he heads back to the hill today among his concerns the coronavirus which he says
[02:54.480 --> 03:00.400]  the central bank is actively monitoring as companies like boeing and caring flag new concerns
[03:00.400 --> 03:06.400]  over the outbreak earning season remains at the forefront as well names like cisco walmart and
[03:06.400 --> 03:12.960]  deer those are still on deck and a far left win in new hampshire last night for bernie sanders
[03:12.960 --> 03:18.400]  shaking up the democratic presidential field joining me now clearnomics founder and head of
[03:18.400 --> 03:23.920]  research james lew we got an awful lot to tackle tackle here james let's start with chairman powell
[03:23.920 --> 03:29.200]  what do you expect from him today when he heads back to capitol hill sort of more of what he said
[03:29.200 --> 03:33.680]  yesterday reiterated with the same or different words or a different message here today yeah good
[03:33.680 --> 03:37.040]  morning courtney we think it's pretty much going to be the same message i mean the message from the
[03:37.040 --> 03:41.600]  fed is that the economy is in good shape there are these big uncertainties in the world as there
[03:41.600 --> 03:46.240]  always are last year it was trade this year it's the coronavirus these uncertainties are very hard
[03:46.240 --> 03:51.040]  to measure but you know you look at last week's jobs report very solid and the underlying trend
[03:51.040 --> 03:56.400]  is still good so there's not much more that the fed can do at the moment other than staying put
[03:56.960 --> 04:02.240]  you also look at the market reaction and where fed fund futures are and while the market has
[04:02.240 --> 04:08.000]  cheered what the fed has done over the last year you also are seeing now the expectation that there
[04:08.000 --> 04:12.880]  will be some sort of rate cut maybe by the middle of the year and certainly at least one rate cut by
[04:12.880 --> 04:16.560]  the end of the year from the market so that's something that's evolving over time and that's
[04:16.560 --> 04:21.200]  changed as uncertainties like coronavirus have taken shape does that feel appropriate to you to
[04:21.200 --> 04:25.200]  be talking about rate cuts again i know that may be what the market is expecting but is that what
[04:25.200 --> 04:29.520]  the economic data tells you might be appropriate so not from our perspective so we think that we're
[04:29.520 --> 04:33.600]  in a position where a wait and see approach probably is appropriate but of course you know
[04:33.600 --> 04:39.520]  the market over the last 10 years has been trained to expect this fed put and i think from an economic
[04:39.520 --> 04:43.520]  perspective you know obviously there's a human toll and human tragedy for around coronavirus
[04:43.520 --> 04:48.240]  that we shouldn't overlook but economically speaking coronavirus couldn't have happened at
[04:48.240 --> 04:53.040]  a worse time and that's because we had all this trade uncertainty affecting trade between us and
[04:53.040 --> 04:59.200]  china and the global economic picture last year and now this year that uh that issue especially
[04:59.200 --> 05:03.920]  the spread of coronavirus around the world could in fact have a toll on economic growth as well so
[05:03.920 --> 05:08.000]  you know from a timing perspective it's not great but these are big uncertainties they're very hard
[05:08.000 --> 05:12.640]  to measure and so the fed should probably stay put now the irony of course is that the markets
[05:12.640 --> 05:16.400]  are at all-time highs and are basically trying to look through that right at the moment absolutely
[05:16.400 --> 05:20.560]  that is something that is so interesting and has a lot of us scratching our heads i think the bond
[05:20.560 --> 05:25.520]  market was flashing maybe some warning signs that the equity market wasn't quite but but to your
[05:25.520 --> 05:29.600]  point it does seem as if we're looking through and chairman powell did use the word resilient
[05:29.600 --> 05:35.120]  i believe yesterday when he was talking about the u.s economy's ability to sort of absorb some of
[05:35.120 --> 05:40.560]  these bigger global problems does that do you still feel like we are resilient when it comes
[05:40.560 --> 05:45.920]  to the u.s economy even after all these years of growth in a common native policy we do think
[05:45.920 --> 05:51.280]  that's the case so the u.s of course has been the main engine of the last decade for global growth
[05:51.280 --> 05:58.400]  now the challenge is that if many investors expect a big resurgence in both global growth and also
[05:58.400 --> 06:02.640]  market performance not just based on last year but also where valuations are then we will have
[06:02.640 --> 06:07.760]  to see other economies start to pick up slack and so you think back to a year like 2017 when it
[06:07.760 --> 06:11.920]  wasn't just in u.s doing well we had you know people talking about global coordinated growth
[06:11.920 --> 06:16.640]  global synchronized growth and that was a year when not just u.s markets perform well but emerging
[06:16.640 --> 06:20.320]  markets and developed markets also so i think that's the type of situation situation we would
[06:20.320 --> 06:25.120]  have to see of course you know the coronavirus does potentially dent that a little bit but the
[06:25.120 --> 06:29.440]  reality is it's very hard to measure that effect that's you know you think about SARS and really
[06:29.440 --> 06:35.120]  those are backward-looking academic studies you can't just count up the number of you know items
[06:35.120 --> 06:40.880]  that weren't produced because of disease it's also the deals that weren't done it's the economic
[06:40.880 --> 06:44.720]  activity that could have happened that didn't happen that's incredibly hard to measure ultimately
[06:44.720 --> 06:49.280]  speaking you know you need this global growth to come back in order to justify what a lot of
[06:49.280 --> 06:53.120]  investors see in the market right now all that makes a lot of sense James thanks for being here
[06:53.120 --> 06:57.280]  with us come back to worldwide exchange and keep us updated when we have better estimates maybe
[06:57.280 --> 07:01.920]  even if it isn't two years great thanks Courtney well Senator Bernie Sanders is celebrating his
[07:01.920 --> 07:07.280]  first clear albeit slim win yesterday in yesterday's New Hampshire primary the victory
[07:07.280 --> 07:12.560]  marks the second strong showing for Sanders as he and the remaining 2020 Democrats now shift their
[07:12.560 --> 07:20.160]  focus to Nevada and South Carolina NBC's Alice Barr joins us again this morning good morning Alice
[07:20.160 --> 07:25.360]  good morning Courtney and turnout was high here in New Hampshire higher than back in 2016 that's of
[07:25.360 --> 07:30.000]  course good news for Democrats as they're trying to engage voters we're also seeing the top tier
[07:30.000 --> 07:38.320]  of candidates shifting as they head into the next round of voting thank you Senator Bernie
[07:38.320 --> 07:44.240]  Sanders riding high this morning off a first place finish in the first in the nation primary this
[07:44.240 --> 07:53.920]  victory here is the beginning of the end for Donald Trump former mayor Pete Buttigieg coming
[07:53.920 --> 08:00.400]  in a close second roughly 4,000 votes behind thanks to you a campaign that some said shouldn't
[08:00.400 --> 08:09.840]  be here at all has shown that we are here to stay and Senator Amy Klobuchar placing third delivering
[08:09.840 --> 08:16.000]  on momentum from a strong debate performance and rocketing into the top tier we have beaten the
[08:16.000 --> 08:23.920]  odds every step of the way Senator Elizabeth Warren looking for a path forward after a
[08:23.920 --> 08:30.560]  disappointing fourth place finish our campaign is built for the long haul while former Vice
[08:30.560 --> 08:36.560]  President Joe Biden landed in fifth having already left New Hampshire before results came in he spoke
[08:36.560 --> 08:44.000]  last night from South Carolina where he's counting on a rebound from a more diverse electorate 99.9
[08:45.520 --> 08:50.240]  that's the percentage of African-American voters who have not yet had a chance to vote in America
[08:50.240 --> 08:57.360]  how's it going the field is narrowing businessman Andrew Yang and Senator Michael Bennett both
[08:57.360 --> 09:02.880]  announcing they are dropping out as winners and losers emerge from New Hampshire sharpening the
[09:02.880 --> 09:10.000]  picture of the race to November at this point coming out of the first two contests Pete Buttigieg
[09:10.000 --> 09:14.400]  still has a slight lead in the delegate count which will ultimately decide the nominee though
[09:14.400 --> 09:18.960]  of course there is still a long way to go until that decision Courtney absolutely we've got a
[09:18.960 --> 09:23.760]  long road ahead Alice thanks for being here with us this morning well when we come back forget
[09:23.760 --> 09:29.360]  travel retail and tech yet another industry sounding the alarm over the coronavirus outbreak
[09:29.360 --> 09:35.760]  bracing for a possible supply chain shock a mixed morning has SoftBank shares surging to a seven
[09:35.760 --> 09:43.200]  month high check out that higher by 12 percent find out why next and later former federal reserve
[09:43.200 --> 09:48.000]  board governor Sarah Bloom Raskin is here her take on Powell's day one testimony and what
[09:48.000 --> 09:53.120]  we can expect from day two a very busy hour is still ahead when Worldwide Exchange returns
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[10:59.920 --> 11:05.520]  box reaction to quarterly numbers from lift what challenges and changes to the road map
[11:05.520 --> 11:11.280]  could steer investors to the rideshare company squat box today 6 a.m eastern watch or listen
[11:11.280 --> 11:19.920]  live on the cnbc app microsoft amazon alphabet igniting tech golden sacks lead internet analyst
[11:19.920 --> 11:26.080]  examines what could push the sector even higher squawk alley 11 a.m eastern today watch or listen
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[12:28.080 --> 12:34.480]  welcome back let's get to check out the latest news surrounding the coronavirus outbreak rahel
[12:34.480 --> 12:39.360]  solomon is here rahel how's it looking today hi corny so china is now reporting the lowest number
[12:39.360 --> 12:44.080]  of new coronavirus cases in the hubei province since the end of january that of course is the
[12:44.080 --> 12:50.160]  epicenter of the outbreak so officials say that 1068 new cases are confirmed that's down from a
[12:50.160 --> 12:56.240]  peak of more than 3 000 on february 4th however there have also been 94 new deaths reported in
[12:56.240 --> 13:01.600]  the region drug makers are also bracing for potential supply disruptions from china the ceo
[13:01.600 --> 13:06.560]  of one of india's largest pharmaceutical companies this morning supplies would start running out by
[13:06.560 --> 13:12.400]  the end of this month unless china restarts production china makes compounds that are used
[13:12.400 --> 13:17.920]  in antibiotics painkillers and also diabetes drugs and vet chairman jay powell commenting
[13:17.920 --> 13:22.720]  on the impact of the coronavirus could have an impact on the global economy testifying before
[13:22.720 --> 13:27.600]  congress yesterday powell said that the u.s economy appears to be resilient as we just
[13:27.600 --> 13:32.160]  heard corny say to global headwinds but that the fed is also closely monitoring the situation
[13:35.920 --> 13:41.520]  we know there will be effects on china through through some part of the first half of the year
[13:41.520 --> 13:47.600]  and china's close neighbors and trade major trading partners in europe as well as asia and we know
[13:47.600 --> 13:51.440]  that there will be some very likely be some effects on the united states i think it's just
[13:51.440 --> 13:57.040]  too early to say also shares of gucci's parent company caring are hired today after reporting
[13:57.040 --> 14:01.840]  strong fourth quarter results but the company also says that it has seen a serious drop in
[14:01.840 --> 14:07.120]  customer traffic in china caring says that it's shifting some inventory to other countries
[14:07.120 --> 14:11.920]  shares of foxconn rising more than three percent today this is on reports that it aims to resume
[14:11.920 --> 14:16.800]  half of its production in china by the end of the month Reuters says that foxconn is also shooting
[14:16.800 --> 14:21.200]  to be at 80 percent of capacity by sometime in march you can see shares are up about three percent
[14:21.200 --> 14:25.920]  in pre-market and boeing is warning that the virus will hit the airline industry's profit
[14:25.920 --> 14:31.440]  this year speaking to reporters at the singapore air show a senior executive says that's due to
[14:31.440 --> 14:36.960]  travel restrictions and a 70 drop in capacity by chinese airlines and cortana you and i talked
[14:36.960 --> 14:41.440]  about this on rapid fire yesterday of course if flights aren't going into china of course that
[14:41.440 --> 14:46.000]  hurts the airlines but also a lot of the companies that do really well in those airports absolutely i
[14:46.000 --> 14:49.760]  know the ripple effects i think are really hard to measure and i have to actually give some of
[14:49.760 --> 14:54.560]  these companies credit for trying to measure even giving us some of these numbers 70 80
[14:54.560 --> 14:59.280]  whether they're talking about a revenue hit manage expectations yeah and i think it's just going to
[14:59.280 --> 15:03.840]  be hard to really know and as james louis our last guest was saying we may not know for several years
[15:03.840 --> 15:08.560]  down the road with the collective impact right it's often pretty backward looking but we gotta
[15:08.560 --> 15:15.280]  try to figure it out now thank you sure okay well don't forget to watch cnbc's special coverage of
[15:15.280 --> 15:19.760]  the outbreak that breaks down the fast-moving developments and the market impact that's tonight
[15:19.760 --> 15:27.360]  at 7 p.m eastern time well still on deck why investors may want to stay away from that beyond
[15:27.360 --> 15:38.480]  section this morning today's big number 14 trillion dollars that's the total household debt
[15:38.480 --> 15:46.080]  in the u.s it grew over 600 billion dollars in 2019 making it the biggest annual increase in 12
[15:46.080 --> 16:14.560]  years
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[18:18.640 --> 18:26.400]  let's get a check on some of the stocks on the move today softbank's third quarter profit was
[18:26.400 --> 18:32.480]  nearly wiped out by losses of its 100 billion dollar vision at its 100 dollar 100 billion
[18:32.480 --> 18:37.920]  dollar vision fund i should say the fund posting an operating loss of more than two billion dollars
[18:37.920 --> 18:43.680]  ceo moshassan defending softbank's performance saying the vision fund has gained about three
[18:43.680 --> 18:48.240]  billion dollars on its investments since the beginning of the year now this report did come
[18:48.240 --> 18:53.920]  after the close of japanese trading softbank of sprint merger with t mobile a lot going on there
[18:53.920 --> 18:59.040]  for softbank now western union is reporting fourth quarter earnings and revenue that missed
[18:59.040 --> 19:04.960]  forecasts the company says the stronger dollar negatively impacted revenue you can see shares
[19:04.960 --> 19:11.040]  down more than six percent and shares of bedbath and beyond a few plunging by more than 20 actually
[19:11.040 --> 19:16.960]  down more than 25 after the retailer said fourth quarter sales were hit by increased promotions
[19:16.960 --> 19:22.240]  falling traffic and inventory issues same store sales in december and january those dropped more
[19:22.240 --> 19:27.280]  than five percent or and that was more than expected the ceo says the company is experiencing
[19:27.280 --> 19:33.280]  quote short-term pain and efforts to stabilize the business that ceo is still sort of getting
[19:33.280 --> 19:37.760]  his feet under him trying to figure out what that business is all about and frankly how to fix it
[19:37.760 --> 19:44.640]  well as we head to break president trump giving his MAGA slogan new meaning yesterday and we have
[19:44.640 --> 19:50.480]  four trillion dollar companies one is microsoft one is apple one is google one is amazon so you
[19:50.480 --> 19:57.280]  have amazon google apple and microsoft and so you have an m you have an a you have a g and you have
[19:57.280 --> 20:04.320]  an a you have mad guy the comments coming just hours after the ftc expanded its antitrust
[20:04.320 --> 20:10.160]  investigation into big tech over past acquisitions that may have hurt competition consumers and
[20:10.160 --> 20:26.800]  evaded regulatory scrutiny we're back after this no one likes to feel stuck boxed in or held back
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[22:41.920 --> 22:55.920]  your house and the street i've been walking these streets so long singing the same old song
[22:56.960 --> 23:01.120]  let's get a check on this morning's other headlines nbc's philip benna is in new york
[23:01.120 --> 23:05.120]  with the latest good morning philip hey corny good morning in just a moment we will tell you
[23:05.120 --> 23:10.000]  why that song was playing a stunning turn of events in the roger stone case attorney general
[23:10.000 --> 23:15.040]  william barr and his top aides at the justice department intervened reversing a stiff sentencing
[23:15.040 --> 23:20.400]  recommendation that federal prosecutors had filed the decision coming after a tweet from the president
[23:20.400 --> 23:26.240]  called the seven to nine year recommendation quote a miscarriage of justice all four prosecutors in
[23:26.240 --> 23:30.640]  the case have now dropped out in protest of the move and one is leaving the justice department
[23:30.640 --> 23:36.480]  altogether actor jussie smollett is facing new charges this morning the empire star faces a new
[23:36.480 --> 23:41.600]  six-count indictment charging he filed four separate false reports to chicago police when
[23:41.600 --> 23:47.120]  he claimed last january the two masked gunmen attacked him insulted him with homophobic and
[23:47.120 --> 23:52.560]  racist slurs and then looped a noose around his neck the special prosecutor says a new investigation
[23:52.560 --> 23:58.080]  was launched after similar charges were abruptly dropped last year attorneys for some for smollett
[23:58.080 --> 24:03.840]  have not yet responded and it looks like the rhinestone cowboy is trading in his horse for a
[24:03.840 --> 24:12.240]  toyota this man from crimea covered his car in those tiny gems 400 000 to be exact took him six
[24:12.240 --> 24:17.200]  months to complete a sparkly project but he says it was a labor of love and he now plans to sell
[24:17.200 --> 24:22.400]  that car he says that it would be a great prop for photo shoots although cortney i have no idea how
[24:22.960 --> 24:30.000]  he'd watch that so instagram worthy though i like it sparkly i mean imagine all the photos you could
[24:30.000 --> 24:35.680]  take with that car but thank you you totally bedazzled thank you philip well still to come
[24:35.680 --> 24:41.520]  why some say lift needs to get its priorities in order as that stock falls more than four percent
[24:41.520 --> 24:47.840]  this morning plus the carlos gon saga far from over as nissan takes a new swipe at its ousted
[24:47.840 --> 24:53.600]  former chairman and a programming note don't miss a cbc exclusive with cbs health ceo larry
[24:53.600 --> 24:58.960]  merlo on closing bell today as that company prepares to release results just after 7 a.m
[24:58.960 --> 25:10.080]  eastern time worldwide exchange is back after this rising energy costs are frustrating electricity
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[27:20.560 --> 27:27.440]  don't just plan to retire plan to live an annuity helps cover your essential monthly expenses
[27:27.440 --> 27:33.280]  so you're free to live the life you want find out how an annuity can give you lifetime income
[27:33.280 --> 27:42.960]  at protected income org stocks look poised to build on record highs as investors prep themselves
[27:42.960 --> 27:49.280]  round two of jay powell on the hill futures are higher bernie sanders on top of the 2020 democratic
[27:49.280 --> 27:54.160]  field following the win in new hampshire what his rise could mean for your money and speaking
[27:54.160 --> 27:59.760]  of winners the westminster dog show crowns its champion the pup that took best in show
[27:59.760 --> 28:02.480]  as the second half of world wide exchange starts now
[28:12.240 --> 28:16.480]  welcome back to world wide exchange i'm Courtney Reagan and this morning for Brian Sullivan here's
[28:16.480 --> 28:21.280]  our stock features are looking halfway through the 5 a.m hour we gave you a sneak peek we said
[28:21.280 --> 28:25.360]  they were higher in the dow jones industrial average is indicating a higher open to the tune
[28:25.360 --> 28:32.160]  of 106 points the s&p 500 higher by 12 and the nasdaq set to add about 46 points another busy day
[28:32.160 --> 28:38.480]  though of course ahead with fed chairman's testimony again on the hill coronavirus earnings and the new
[28:38.480 --> 28:43.360]  hampshire primary results all of that on investors radars let's take a look at the bond market the
[28:43.360 --> 28:49.520]  yield on the 10-year sitting at 1.614 percent taking slightly higher from the yield yesterday
[28:49.520 --> 28:54.640]  let's get a check on the asian markets we saw green arrows mostly around the world and as you
[28:54.640 --> 29:00.080]  can see across the board in asia with shanghai hansing and the japanese nikkei all higher just
[29:00.080 --> 29:05.680]  under one percent though european markets also indicating or actually i should say they are open
[29:05.680 --> 29:09.920]  right there a couple hours ahead of us so they're higher we've got the german's extra tax higher by
[29:09.920 --> 29:14.560]  six tenths of a percent footsie 100 higher by three tenths of a percent and france is higher
[29:14.560 --> 29:18.800]  by three tenths of a percent as well let's get a look at some of the other top stories that we're
[29:18.800 --> 29:23.520]  following this morning rael solomon is here hi rael hi courtney so the saga between nissan and
[29:23.520 --> 29:28.400]  carlos ghosn continues so nissan has filed a civil lawsuit in japan against its former chairman
[29:28.400 --> 29:33.520]  carlos ghosn the automaker is seeking an initial amount of 90 million dollars in the suit the
[29:33.520 --> 29:39.600]  company says it's looking to recover monetary damages inflicted by ghosn as a result of quote
[29:39.600 --> 29:45.440]  years of misconduct and fraudulent activity google kicks off a landmark legal case in europe today
[29:45.440 --> 29:50.240]  during the three-day hearing at europe's second highest court the company will seek to overturn
[29:50.240 --> 29:56.160]  three european union antitrust funds that total roughly nine billion dollars decision is not
[29:56.160 --> 30:01.680]  expected until next year and the federal aviation administration is admitting that it has not
[30:01.680 --> 30:07.520]  effectively overseen systems for managing safety risks at southwest airlines so this follows a new
[30:07.520 --> 30:13.600]  report from the u.s department of transportation's office of inspector general that blasted the faa
[30:13.600 --> 30:20.080]  the agency says that local faa managers responsible for monitoring southwest failed to ensure that the
[30:20.080 --> 30:25.760]  carrier complied with mandatory maintenance standards while incorporating 88 used jets into
[30:25.760 --> 30:30.640]  its fleet shares of southwest are lower this morning as we can see down about 1.2 percent
[30:30.640 --> 30:35.520]  in pre-market courtney rael thank you very much we're going to see you back a little later well
[30:35.520 --> 30:40.640]  the 2020 democrats are turning their attention to nevada and south carolina after senator bernie
[30:40.640 --> 30:45.600]  sanders victory and the new hampshire primary sanders win puts him near the top of the party's
[30:45.600 --> 30:51.840]  fractured presidential field which is now smaller after yesterday's contest cbc's kayla tauci joins
[30:51.840 --> 30:57.200]  us now kayla can you break down sort of where things stack up after the primary it hasn't been
[30:57.200 --> 31:04.720]  so clear to all of us all along the way who's really the leader well sanders uh is victorious
[31:04.720 --> 31:11.760]  in new hampshire after a clear victory last night after a chaotic run in iowa just a week ago
[31:11.760 --> 31:20.240]  courtney with 25.9 of the votes sanders can claim victory here although notably his support in the
[31:20.240 --> 31:24.800]  state has been significantly eroded by the entrance of south bend mayor pete buda judge
[31:24.800 --> 31:30.560]  and minnesota senator amy clobachar who essentially split the support that sanders received here in
[31:30.560 --> 31:37.200]  the state in the 2016 cycles peter pete buda judge with 24.4 percent and clobachar with just
[31:37.200 --> 31:42.800]  shy of 20 percent after being largely written off just a week ago because of a lower tier trying to
[31:42.800 --> 31:47.760]  figure out whether she can sustain this momentum and how here's the senator in new hampshire last
[31:49.280 --> 31:58.160]  and tonight in new hampshire as everyone had counted us out even a week ago thank you pundits
[31:58.160 --> 32:03.040]  pundits i came back and we delivered
[32:06.800 --> 32:11.760]  because of the fractured field perhaps many were surprised at the low finish of senator elizabeth
[32:11.760 --> 32:17.040]  warren and former vice president joe biden who with lower than 15 percent of support here in
[32:17.040 --> 32:23.600]  new hampshire did not cross the threshold to get any delegates biden has already left new hampshire
[32:23.600 --> 32:30.560]  to start campaigning in south carolina which is the next presidential state contest on february 22nd
[32:30.560 --> 32:37.760]  he acknowledged that he has not been performing well in the race but is and latinos to hopefully
[32:37.760 --> 32:42.240]  improve his numbers and finally because of the performance in in new hampshire we are seeing
[32:42.240 --> 32:48.880]  some presidential campaigns suspended both andrew yang and senator michael bennett saying last night
[32:48.880 --> 32:53.600]  that it would be the end of the road for their campaigns so we are seeing the race narrow
[32:53.600 --> 32:59.360]  slightly courtney but we still have more than a handful in the running yeah kayla and yesterday i
[32:59.360 --> 33:04.480]  know you were telling us that at least that sort of ceremonial first votes they went to mayor
[33:04.480 --> 33:09.680]  bloomberg but i didn't hear you sort of mention how it all shook out for him i guess that was all he got
[33:09.680 --> 33:18.960]  uh yeah and certainly that was more of um you know and and novelty vote uh dixville notch just
[33:18.960 --> 33:24.720]  casting a handful of votes certainly he has been spending ad money here in the state he has been
[33:24.720 --> 33:29.600]  gaining traction in national polls but courtney he hasn't really been spending any time in the
[33:29.600 --> 33:35.440]  state he may uh in the future there are some reports that he is uh in increasing his staff
[33:35.440 --> 33:42.000]  here in new hampshire and opening an office here but he has not really been campaigning here at all
[33:42.000 --> 33:48.000]  he will appear on his first debate stage of the cycle next week in nevada that is certainly
[33:48.000 --> 33:53.360]  something every campaign is preparing for this is so interesting kayla thank you very much for
[33:53.360 --> 33:58.080]  bringing it to us this morning this is going to continue to unfold in the weeks and the months
[33:58.080 --> 34:03.040]  ahead well for more on senator sanders victory and what it means for the election and your money i'm
[34:03.040 --> 34:08.240]  joined by jeff mills he's chief investment officer at bren marr trust and jimmy pathakoukas
[34:08.240 --> 34:13.760]  economic analyst at the american enterprise institute both of these gentlemen are cnbc
[34:13.760 --> 34:18.400]  contributors jimmy i guess i'm going to start with you just to give us kind of the lay of the land
[34:18.400 --> 34:23.280]  and how you think everything shook up last night so i understand mr sanders won but by a relatively
[34:23.280 --> 34:28.560]  narrow margin so what does this mean going forward biden's already moved on to south carolina
[34:28.560 --> 34:32.480]  what's happening here who's going to be the democratic front runner well what happened was
[34:32.480 --> 34:37.520]  that we had a front runner who as it turns out is really bad at running for president i don't
[34:37.520 --> 34:42.320]  think joe biden's ever done better than about a fourth place finishing a primary uh he looks like
[34:42.320 --> 34:49.040]  he barely has a pulse and we have a very weak front runner in a very uh fractured field and
[34:49.040 --> 34:54.880]  listen if you were going to come up with a scenario where somebody who has unlimited money to spend
[34:54.880 --> 35:01.600]  can jump in shake the whole thing up maybe win maybe create a uh you know a brokered convention
[35:01.600 --> 35:06.640]  next summer that's exactly what you're seeing you mentioned mike bloomberg at the end um i don't
[35:06.640 --> 35:11.120]  know what i don't know what his scenarios were that he ends up as a democratic nominee but they
[35:11.120 --> 35:15.600]  couldn't look much better than what's happening right now and so jeff now that we hear everything
[35:15.600 --> 35:20.160]  jimmy has to say and he's talking about a fracture field i guess it's a little hard for investors
[35:20.160 --> 35:25.440]  to sort of make some of their bets with their money but if it is bernie sanders i mean you
[35:25.440 --> 35:30.080]  couldn't be further different from the situation we have right now in the white house as far as
[35:30.080 --> 35:36.640]  economic policy is concerned yeah no no question but i think the market has it about right you know
[35:36.640 --> 35:42.320]  it continues to levitate even as sanders has risen in the polls but i think the bottom line is that
[35:42.320 --> 35:47.600]  no president has lost re-election when they've avoided a recession in the two years prior to
[35:47.600 --> 35:53.520]  that re-election bid so you know in my estimation you have a bottoming of global manufacturing it
[35:53.520 --> 35:58.240]  looks like leading economic indicators are inflecting higher if you look at earnings as
[35:58.240 --> 36:04.000]  an example usually guidance for 2020 at this point in time would have been down by about 1.4
[36:04.000 --> 36:09.760]  percent guidance is only down by about four percent so far so fundamentally things look good
[36:09.760 --> 36:14.480]  which means we likely avoid a recession leading into re-election so i think investors are looking
[36:14.480 --> 36:20.000]  toward another president trump victory here and usually when the incumbent wins on average the
[36:20.000 --> 36:25.920]  s&p 500 is up about 10 percent when the incumbent loses usually up about three percent so a big gap
[36:25.920 --> 36:30.080]  there but if you're playing the odds it looks like a reasonably good scenario for markets and i think
[36:30.080 --> 36:35.520]  that's how investors are acting at the current time you know i mean polls show that uh or suggest you
[36:35.520 --> 36:40.640]  know that bernie sanders can be president trump uh a lot of investors look at those betting markets
[36:40.640 --> 36:45.520]  those betting markets have trump the favorite and even if even if trump should lose you have a
[36:45.520 --> 36:50.240]  president sanders you know we're not going to get a wealth tax probably unconstitutional we're not
[36:50.240 --> 36:54.080]  going to suddenly we're not going to you know outlaw all private insurance companies so i think
[36:54.080 --> 36:59.040]  they're looking at it's an unlikely scenario the bernie sanders wins it's even more unlikely
[36:59.040 --> 37:04.720]  scenario that we go hashtag full socialism and jeff as you follow along you know you said you
[37:04.720 --> 37:10.000]  gave us some stats there about what happens when incumbent presidents win and then if they lose
[37:10.000 --> 37:18.240]  the s&p 500 is up about 56 percent since trump has been in office i mean but what would markets
[37:18.240 --> 37:23.280]  say about sort of looking at this very fractured field i guess i'm still just not convinced that
[37:23.280 --> 37:28.080]  the markets are going to behave the same way if the candidate is bernie sanders versus if
[37:28.080 --> 37:33.520]  the democratic candidate is say mike bloomberg yeah look i mean jim mentioned it right if you
[37:33.520 --> 37:38.480]  look at the national polling i think sanders is ahead of trump by something like four percent
[37:38.480 --> 37:43.760]  and that gap has actually widened a little bit so i do think that even if it's just for a period of
[37:43.760 --> 37:50.400]  time investors may need to react in a way that you know supposes that there could possibly be
[37:50.400 --> 37:55.360]  a bernie sanders president so i think it could cause volatility in the near term and honestly
[37:55.360 --> 37:59.840]  i've been surprised that the catalyst the markets have been given thus far whether it's coronavirus
[37:59.840 --> 38:04.800]  or sanders surging in the polls hasn't done more to shake the markets i mean if you look at what's
[38:04.800 --> 38:11.120]  going on right now you've got the top 50 names in the s&p 500 some 13 percent above their long-term
[38:11.120 --> 38:15.680]  moving average if you look under the surface there's some breadth deterioration so we had
[38:15.680 --> 38:21.360]  80 of names above the 50-day moving average now only 60 so i think in the near term whether it's
[38:21.360 --> 38:26.000]  the coronavirus whether it's something important term prediction i think if you look out ahead
[38:26.000 --> 38:30.800]  it's just difficult to be too negative on a market where the liquidity backdrop is what it is
[38:30.800 --> 38:34.800]  via what central banks are doing they continue to stand at the ready and like i said i think
[38:34.800 --> 38:40.480]  fundamentals on on balance are actually looking better not worse jimmy looking forward as these
[38:40.480 --> 38:45.440]  primary contests roll on do you think we're going to continue to see such a fracture field or these
[38:45.440 --> 38:49.840]  campaigns going to start to pull together and voters start to sort of aggregate towards one
[38:49.840 --> 38:53.600]  candidate or is this just the way it's going to be until we get to like you said the possibility
[38:53.600 --> 38:59.040]  of a brokered convention yeah listen i think i think if you had if there wasn't a mike bloomberg
[38:59.040 --> 39:04.080]  sort of looming out there you'd say at some point listen sanders has you know he's won the votes in
[39:04.080 --> 39:10.320]  these in the caucus and the primary uh the next couple of states look much better than him i mean
[39:10.320 --> 39:15.360]  he kind of in a normal situation he kind of should be the democratic nominee people don't believe it
[39:15.360 --> 39:20.960]  because of his age because of the socialism tag and because we have this age bomb of money
[39:20.960 --> 39:26.080]  about to explode in this primary over the next few weeks that's why i think this is still going
[39:26.080 --> 39:31.760]  to be a very topsy-turvy field for quite a long time jeff mills jimmy pethacuchus thank you both
[39:31.760 --> 39:35.200]  for joining us this morning you know we're going to keep talking to you for the months to come
[39:35.200 --> 39:41.680]  because we have a lot to figure out it seems well shares of lift tumbling despite the company posting
[39:41.680 --> 39:46.720]  results that beat analyst estimates fourth quarter revenue topping one billion dollars for the first
[39:46.720 --> 39:52.320]  time ever investors though paying closer attention to the stock following uber's fourth quarter beat
[39:52.320 --> 39:57.840]  and updated profitability target shares of liftdown four percent ceo logan green didn't
[39:57.840 --> 40:03.200]  update lifts profitability timeline but he did make it clear that it was among the key themes
[40:03.200 --> 40:10.720]  the company is focused on this year we expect to deliver continued strong top line growth in 2020
[40:10.720 --> 40:16.080]  while also making progress on our path to profitability as we've discussed on prior calls
[40:16.080 --> 40:22.000]  there are three key themes that we're focused on first is product innovation second is profitable
[40:22.000 --> 40:29.120]  growth and third is operating leverage joining me now santosh rao he is head of research at manhattan
[40:29.120 --> 40:33.920]  venture partners his firm was an early investor in lift okay so you just heard logan green
[40:33.920 --> 40:40.800]  profitability number two on his list should it be number one uh well good morning thanks for having
[40:40.800 --> 40:45.440]  me again uh i think it's no they're on the right track they're not in a rush they don't want to
[40:45.440 --> 40:50.160]  pull in the timeline they and that's one of the reasons why we invested right from the beginning
[40:50.160 --> 40:55.280]  uh we feel it's a pure play with a focused strategy very disciplined strategy so i think
[40:55.280 --> 40:59.760]  that's what they're doing they are executing to that strategy they're not in a rush like he said
[40:59.760 --> 41:04.880]  profitable growth until the second the last quarter of 2021 they will be profitable so i
[41:04.880 --> 41:09.920]  trust them i trust the numbers i trust the ceo so i think he's on the right track and this quarter
[41:09.920 --> 41:15.440]  was a classic beat beat and raise fourth quarter right off the gate doing great uh with big numbers
[41:15.440 --> 41:19.760]  so i think this company is on the right track and our thesis is proving out that this is the way to
[41:19.760 --> 41:23.920]  go you were an early investor are you currently an investor in lift no we are not i mean we
[41:23.920 --> 41:30.000]  distribute the shares after the expiration but uh we were early investors like i said okay okay
[41:30.000 --> 41:34.080]  and so you you mentioned that lift is a pure play and you mean because they don't have
[41:34.080 --> 41:39.840]  an a lift eats like an uber eats but some people point to that is actually a really good thing for
[41:39.840 --> 41:44.400]  uber you don't think lift needs that no they don't need that i mean uber eats it eats business is
[41:44.400 --> 41:48.720]  good but it's competitive that's the thing about uber and uber it's a different game it's a platform
[41:48.720 --> 41:53.440]  it has a number of other businesses not all profitable we don't know when they'll be profitable
[41:53.440 --> 41:59.520]  but it's it's a it's a broad platform but i think the way to go is the right sharing business in
[41:59.520 --> 42:04.320]  north america which has the best unit economics so this is the right focus very well with the
[42:04.320 --> 42:10.080]  optionality later on of going into other businesses i would rather go that way then go this way because
[42:10.080 --> 42:15.600]  there is a lot more to do here the market is big there's a huge uh opportunity out there it's still
[42:15.600 --> 42:20.480]  a lot more to go still early stages so i think they need the resources and the attention to
[42:20.480 --> 42:26.400]  execute here and then later on see try to go into other business if needed but they don't need to
[42:26.400 --> 42:30.480]  so really important part of north america is california because it's a huge state and we've
[42:30.480 --> 42:35.360]  got this gig worker law on the books that these ride sharing companies and a number of others are
[42:35.360 --> 42:40.560]  just not thrilled with frankly i mean how big of a threat is this and will this continue to be an
[42:40.560 --> 42:46.160]  overhang for investors yeah i think it's still playing out uh lift is banking on a ballot
[42:46.160 --> 42:50.240]  initiative they they're confident that they can win but let's see where that plays out california
[42:50.240 --> 42:55.040]  is not the biggest part of the market i mean it's big but it's not all all the business and
[42:55.040 --> 42:59.840]  there's a lot of other businesses around so there'll be some hit uh small percentage of the
[42:59.840 --> 43:06.400]  total uh earnings i guess but uh overall i think uh we'll see it i think the genie's out of the
[43:06.400 --> 43:12.320]  bag no one you cannot take this back right sharing is the way to go of the future everyone wants that
[43:12.320 --> 43:17.040]  there's a groundswell of support from bottom up so you'll see at somewhere in between you will settle
[43:17.040 --> 43:22.720]  there will be a compromise somewhere but uh in the end you need gig economy you need right sharing
[43:22.720 --> 43:27.280]  that's the way to go transportation of transportation as a service is a big part of
[43:27.280 --> 43:31.440]  the future that's where we invested that's how that's why we thought this was the right place to
[43:31.440 --> 43:35.680]  go so a lot of moving parts santosh thanks for being here with us thank you thanks for having me
[43:35.680 --> 43:42.160]  absolutely well coming up netflix making a rare move with the release of one highly anticipated
[43:42.160 --> 43:46.320]  sequel details on that and the other stories you're going to be talking about that's ahead
[43:46.320 --> 43:52.240]  and coming up in a cnbc exclusive goldman sachs ceo david solomon joins closing bell as the bank's
[43:52.240 --> 43:58.000]  annual internet and technology conference kicks off at the 4 pm eastern time robotic change though
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[45:54.720 --> 46:00.960]  to help make quality investment decisions with capital group i can talk to your advisor or
[46:00.960 --> 46:09.440]  consultant for investment risks and information let's find out what else you're going to be
[46:09.440 --> 46:14.320]  talking about today it is time for this morning's top stories ralph solomon is back what do we got
[46:14.320 --> 46:19.120]  today okay so twitter is in an uproar about this next one the westminster dog show wrapped up two
[46:19.120 --> 46:24.400]  days of competition last night and handed out its coveted best in show award and the winner
[46:24.400 --> 46:30.320]  was this standard poodle named ceba cute right so ceba is the first standard poodle to win top dog
[46:30.320 --> 46:36.560]  of the show since 1991 also the fifth to win in westminster history ceba however upset crowd
[46:36.560 --> 46:42.320]  favorite daniel let's wait for this this is a golden retriever who took home first this is still
[46:42.320 --> 46:45.680]  ceba of course who took home first in the competition's sporting group well let me tell
[46:45.680 --> 46:52.480]  you daniel there's daniel very cute so here's the issue apparently a golden retriever has never won
[46:52.480 --> 46:57.600]  and so it was the underdog no pun intended and so folks really wanted daniel to win they also
[46:57.600 --> 47:02.720]  thought daniel was a cuter more doggy dog right right right apparently so that's not what the
[47:02.720 --> 47:08.880]  judges are looking for they're judging to see which dog is closest to the ideal breed like
[47:08.880 --> 47:14.800]  its breed its own breed they're not not measuring measuring daniel against ceba exactly they're
[47:14.800 --> 47:20.720]  measuring ceba against standard poodles and daniel against golden retrievers and apparently the
[47:20.720 --> 47:26.160]  judges felt like ceba was closer to the ideal standard they're both cute they can both win
[47:26.160 --> 47:31.760]  and speaking as an owner of a golden doodle i love both breeds yeah right yes also netflix giving
[47:31.760 --> 47:37.680]  non-subscribers now a freebie amid one highly anticipated release the company's 2018 original
[47:37.680 --> 47:42.400]  to all the boys that i've loved before will be available to stream regardless of whether or not
[47:42.400 --> 47:47.760]  you are a paid user through march 9th so the move comes as the sequel to the hit rom com officially
[47:47.760 --> 47:52.000]  hits the platform today and this is the first time that netflix has offered free streaming
[47:52.000 --> 47:57.360]  for one of its originals in the u.s will be very interesting to see if this leads to more
[47:57.360 --> 48:01.680]  subscribers because think about it if you've watched now the first one right and you're into
[48:01.680 --> 48:06.400]  it yeah you'd be more willing to pay you know to see the second one they say it's a hit and i love
[48:06.400 --> 48:11.600]  rom coms but i have not heard of this nor have i seen it so i've totally missed that boat we may
[48:11.600 --> 48:17.280]  have aged out though you and i oh i mean i'm with you though i'm with you pizza hut serving up
[48:17.280 --> 48:22.880]  another interesting innovation the chain announced that its newest product the mozzarella poppers
[48:22.880 --> 48:28.080]  pizza it comes with 16 mozzarella filled squares baked right into the pizza crust like right on top
[48:28.080 --> 48:33.040]  you this you see there the restaurant is causing it calling it the cheesiest pizza yet uh bold
[48:33.040 --> 48:37.520]  claim considering that the chain was also behind the stuffed crust pizza this also comes a week
[48:37.520 --> 48:43.680]  after papa john's launched its innovation the papa dia i do remember all of those innovations
[48:43.680 --> 48:47.760]  and it does sort of get you interested i feel like everybody's i shouldn't say everybody a lot
[48:47.760 --> 48:52.160]  of people try it once i don't know if you keep going back to it like does it does the mozzarella
[48:52.160 --> 48:56.160]  stuffed crust become your go-to pizza probably not right or maybe it's just a novelty right like
[48:56.160 --> 48:59.840]  maybe you just try it once as you said exactly like okay it's a lot of mozzarella but maybe
[48:59.840 --> 49:04.720]  that's all they need interesting i love cheese i would definitely be willing to try it here
[49:05.360 --> 49:09.920]  well on deck boeing issues a new warning over the coronavirus and the major economic impact
[49:09.920 --> 49:15.280]  the outbreak will likely have plus what investors should take away from jay powell's latest comments
[49:15.280 --> 49:19.760]  before he testifies to congress again this morning we'll talk to former fed governor
[49:19.760 --> 49:24.480]  sarah bloom raskin that's coming up next and a reminder you can always watch or listen to us
[49:24.480 --> 49:40.160]  live on the go on the cnbc app worldwide exchange is back in just a moment
[49:40.160 --> 49:49.840]  so
[50:02.960 --> 50:05.840]  when it comes to your business internet which is more important
[50:05.840 --> 50:12.400]  okay i wish i didn't have to choose like the more i think about it the more i
[50:12.400 --> 50:15.040]  want to jump to each room what if i said you can have it all
[50:16.640 --> 50:22.800]  comcast business gives you connectivity that goes beyond that speed reliability and security
[50:22.800 --> 50:28.640]  all from one provider touchdown get started with internet and voice for an amazing price
[50:28.640 --> 50:36.400]  call today comcast business beyond fast
[50:47.920 --> 50:53.840]  make fitness routine with pure protein high protein low sugar tastes great high protein
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[51:03.040 --> 51:08.880]  next on squat box reaction to quarterly numbers from lyft what challenges and changes to the
[51:08.880 --> 51:14.880]  roadmap could steer investors to the rideshare company squat box today 6 a.m eastern watch
[51:14.880 --> 51:21.840]  or listen live on the cnbc app it's time to change the way you think about money personal stories
[51:21.840 --> 51:29.680]  money tips strategies for saving and investing invest in you ready set grow cnbc and acorns
[51:29.680 --> 51:36.800]  go to cnbc.com invest in you big news big price tags and big problems it's been on the market for
[51:36.800 --> 51:45.200]  three years with no offers listing impossible tonight 10 eastern cnbc get yours it's now time
[51:45.200 --> 51:50.720]  for the executive recap the headlines you need in 60 seconds foxconn is aiming to restart half
[51:50.720 --> 51:55.520]  its production operations in china by the end of the month amid the coronavirus outbreak according
[51:55.520 --> 52:00.960]  to reuters the company is working to boost that number to 80 percent in march foxconn received
[52:00.960 --> 52:06.640]  approval from chinese authorities this week to reopen its largest plants meanwhile boeing is
[52:06.640 --> 52:10.480]  issuing a warning about the impact of the coronavirus speaking to reporters at the
[52:10.480 --> 52:16.080]  singapore air show a senior executive says the global air cargo industry is unlikely to grow this
[52:16.080 --> 52:21.280]  year because of challenges in china stemming from that outbreak boeing is also warning that
[52:21.280 --> 52:26.800]  the virus will hit airline revenues and profits shares of boeing down only fractionally and a
[52:26.800 --> 52:32.000]  federal judge has dismissed some of the charges against theranos founder elizabeth holmes the
[52:32.000 --> 52:36.880]  judge ruled patients were not deprived of any money or property by using the company's blood
[52:36.880 --> 52:41.760]  testing services and there was no evidence showing holmes directed doctors to make
[52:41.760 --> 52:47.600]  misrepresentations to their patients the judge did uphold wire fraud charges however against
[52:47.600 --> 52:53.200]  holmes well as stock futures point to new records for wall street at the open investors also looking
[52:53.200 --> 52:58.640]  ahead to a second day of testimony from federal reserve chairman jay powell expected to testify
[52:58.640 --> 53:02.960]  before the senate banking committee at 9 a.m eastern time today just one day after he said
[53:02.960 --> 53:10.160]  the central bank is closely monitoring the coronavirus outbreak the question for us really
[53:10.160 --> 53:15.920]  is what will be the effects on the u.s economy will it be persistent will they be material
[53:15.920 --> 53:21.680]  that's really the question i think we know there will be effects on china through through some part
[53:21.680 --> 53:26.800]  of the first half of the year and china's close neighbors and trade major trading partners in
[53:26.800 --> 53:31.600]  europe as well as asia and we know that there will be some very likely be some effects on the
[53:31.600 --> 53:36.640]  united states i think it's just too early to say we have to resist the temptation to speculate
[53:36.640 --> 53:41.440]  on this and so we'll be watching that carefully again and the question we'll be asking is will
[53:41.440 --> 53:45.920]  these be persistent effects that could lead to a material reassessment of the outlook
[53:46.960 --> 53:51.360]  joining me now with morris federal is former federal reserve board governor and former
[53:51.360 --> 53:56.160]  deputy treasury secretary sarah bloom raskin she's also a cmc contributor in duke university
[53:56.160 --> 54:01.280]  rubenstein fellow sarah good morning thank you for being here with us today you of course heard
[54:01.280 --> 54:06.480]  mr powell i'm sure you heard him say all of those things yesterday as we're trying to square up
[54:06.480 --> 54:10.880]  really the impact of the coronavirus saying we have to wait and see if it's material it seems
[54:10.880 --> 54:17.040]  to me that there's no question it will be material we just don't know perhaps to what degree that's
[54:17.040 --> 54:25.760]  right um uh this virus actually does have quite the potential to really uh have some big knock-on
[54:25.760 --> 54:32.560]  effects if you think about certainly the impact the economic impact on china itself there is now
[54:32.560 --> 54:38.560]  speculation that that will knock off a couple of points of gdp growth there in terms of how you
[54:38.560 --> 54:43.600]  know in terms of how they measure it but the effects on the u.s and on the trading partners
[54:43.600 --> 54:48.960]  for china are also really what we have to keep an eye on you heard chairman powell talk about
[54:48.960 --> 54:56.000]  these effects being looking to see whether they are persistent and material that is in fact what
[54:56.000 --> 55:03.840]  the what the fed will look at this is you know as i see it really kind of a double whammy because
[55:03.840 --> 55:11.120]  of course we're coming out of a situation where trade has been affected by the tariff wars and now
[55:11.120 --> 55:19.040]  we have um this uh you know this this virus to contend with from an economic growth perspective so
[55:19.040 --> 55:24.000]  i think this is actually a serious headwind i think so too and i think it's going to be some
[55:24.000 --> 55:28.000]  time before we know we're so much more interconnected it seems now than even we were
[55:28.000 --> 55:32.640]  during the SARS outbreak both the united states and china but really china with the rest of the
[55:32.640 --> 55:37.360]  world and their economy has certainly swelled to be much larger than it was then but the president
[55:37.360 --> 55:41.920]  of course sarah also kept up his attacks against jay powell he was tweeting during yesterday's
[55:41.920 --> 55:47.680]  testimony quote when jerome powell started his testimony today that that was up 125 and heading
[55:47.680 --> 55:53.440]  higher as he spoke it drifted steadily downward as usual and is now negative 15 germany and other
[55:53.440 --> 55:59.840]  countries get paid to borrow money we are more prime but fed rate is too high dollar tough on
[55:59.840 --> 56:04.880]  exports oh sarah i don't think he's ever going to escape uh these tweets he's always going to
[56:04.880 --> 56:09.840]  be criticized and trump keeps pushing for this idea of negative rates what do you make of it
[56:09.840 --> 56:15.040]  all put together i guess both the president's president's criticism of powell and the idea
[56:15.040 --> 56:19.760]  of negative interest rates right and well the question of negative interest rates actually got
[56:19.760 --> 56:25.360]  questioned um you know in the in the context of the hearing yesterday and i thought i thought
[56:25.360 --> 56:31.600]  chairman powell was was was particularly articulate in taking negative interest rates off the table i
[56:31.600 --> 56:37.600]  mean he has made it clear that that is not going to be a tool in the toolbox that the fed is like
[56:37.600 --> 56:44.720]  more ammunition he talked about the use of forward guidance the use of large-scale asset purchases
[56:44.720 --> 56:50.960]  not that these are being contemplated at the moment but you see the fed here starting to talk
[56:50.960 --> 56:59.200]  about its usual playbook it should it need it in terms of more accommodation so i think the
[56:59.200 --> 57:05.760]  negative interest rate point was handled uh you know pretty clearly by chairman powell that is not
[57:05.760 --> 57:13.040]  going to be a tool that he is contemplating uh right now and i think you know the president can
[57:13.040 --> 57:19.200]  tweet on and on as much as he wants about it it is a tool that is is has mixed results in terms of
[57:19.200 --> 57:25.280]  its use in other countries and i think its use in the u.s is uh something that is is not considered
[57:25.280 --> 57:29.840]  imminent before we go here powell did also highlight what he sees as the biggest risk to u.s
[57:29.840 --> 57:35.760]  growth cyber crime if you can just take a minute we're going to play this for you the thing that
[57:35.760 --> 57:42.000]  that uh we worry about a lot is is cyber attacks i think we have a great game plan for traditional
[57:42.640 --> 57:47.360]  you know issues like bad loans and things like that it's more cyber attacks is really the the
[57:47.360 --> 57:53.600]  frontier where you worry sarah what do you think about that how big of an issue is that it seems
[57:53.600 --> 57:58.720]  like so many businesses that we talk to at cnbc say yeah we're getting attacked basically every
[57:58.720 --> 58:03.840]  day we've just gotten better at sort of thwarting many of them but you know that's not at some point
[58:03.840 --> 58:08.960]  they're going to break through i should say that's right and the volume and the complexity
[58:08.960 --> 58:14.640]  uh the sophistication of these cyber attacks continues to increase we saw this i mean i saw
[58:14.640 --> 58:21.840]  this back at my time at treasury i mean this was something that is a mounting concern i think that
[58:21.840 --> 58:29.040]  chairman powell is correct in noting that the defensive posture of a lot of financial institutions
[58:29.040 --> 58:36.480]  is actually increasing and that's a good thing so from a defensive posture a lot of the institutions
[58:36.480 --> 58:41.920]  do have good mechanisms in place to thwart the attacks but in terms of their coming they're
[58:41.920 --> 58:48.720]  coming fast and furious and they continue this is a serious headwind i i would you know i would
[58:48.720 --> 58:53.120]  have probably answered that question right a little differently i think that there are other
[58:53.120 --> 58:58.960]  big risks on the horizon and maybe they will get explored today from the senate side but in
[58:58.960 --> 59:04.960]  particular you saw chairman powell dodging around a little bit on some on on questions of climate
[59:04.960 --> 59:11.040]  change and financial stability and other you know and other kind of risk factors so many things to
[59:11.040 --> 59:15.200]  consider sarah bloom raskin thank you so much for being here with us this morning we'll speak to
[59:15.200 --> 59:20.240]  you again very soon that's it for worldwide exchange this morning squawk box begins right now
[59:22.000 --> 59:27.280]  good morning the nasdaq and s&p pushing the new highs but companies are now warning of supply
[59:27.280 --> 59:34.240]  disruptions related to the coronavirus outbreak feeling the burn in new hampshire senator sanders
[59:34.240 --> 59:38.720]  edging out pete budiget we're going to take you live to the granite state for the results and
[59:38.720 --> 59:44.800]  implications for investors and shares of bed bath and beyond are plummeting the ceo is describing
[59:44.800 --> 59:51.840]  it as short-term pain we've got details on all of this straight ahead it's wednesday february 12 2020
[59:51.840 --> 01:00:03.840]  the squawk box begins right now
[01:00:07.040 --> 01:00:11.280]  good morning everybody welcome to squawk box here on cnbc we're live from the nasdaq market
[01:00:11.280 --> 01:00:15.760]  site in times square i'm becky quick along with joe kernan and andrew ross sorkin let's take a
[01:00:15.760 --> 01:00:20.560]  look at the u.s equity futures at this hour you'll see right now that the futures are indicated higher
[01:00:20.560 --> 01:00:26.800]  in fact the dow indicated up by triple digits a gain of about 125 nasdaq up by 51 and the s&p
[01:00:26.800 --> 01:00:32.400]  up by 13 and this comes after the s&p 500 and the nasdaq both set new records once again yesterday
[01:00:32.400 --> 01:00:36.080]  during the trading session all three of the major averages were higher the dow gave back most of
[01:00:36.080 --> 01:00:42.400]  those gains end of the day flat but again you're