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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 --> 00:33.440]  trump had to say about yesterday's testimony that's coming up and boeing raising the red
[00:33.440 --> 00:39.440]  flag over a potential impact from the coronavirus outbreak lift shares sinking this morning why
[00:39.440 --> 00:44.320]  some investors say its ceo needs to get his priorities in order we speak with an early
[00:44.320 --> 00:50.000]  investor in the company and a new meeting for maga what president trump has to say about silicon
[00:50.000 --> 00:55.840]  valley's tech titans and a slim win in new hampshire as bernie sanders claims victory in
[00:55.840 --> 01:02.320]  the grand estate yet again it's wednesday february 12 2020 and robot exchange begins right now
[01:12.560 --> 01:17.520]  good morning and welcome i'm corny reagan and this morning for brian sullivan your chart of the day
[01:17.520 --> 01:22.320]  it's kind of an ugly one shares of bed bath and beyond sinking look at this more than 20
[01:22.320 --> 01:27.120]  percent here the company announcing preliminary guidance for its fourth quarter coming in well
[01:27.120 --> 01:32.560]  below expectations much more on that just a moment we're going to give you a look at how futures are
[01:32.560 --> 01:37.920]  looking on this wednesday morning stocks do look to open in record territory here this morning with
[01:37.920 --> 01:43.200]  the dow jones industrial average indicated higher by more than 106 points the s&p 500 higher by
[01:43.200 --> 01:49.840]  almost 12 in the nasdaq tacking on an extra 47 points in the early going let's get a check in
[01:49.840 --> 01:54.960]  the fixed income market take a look at the yield on bonds and look at the tenure which we're seeing
[01:54.960 --> 02:02.480]  tick higher again here today at 1.620 after we'd seen that yield fall for several sessions in a row
[02:02.480 --> 02:07.360]  as perhaps flashing some warning signs that the equity market wasn't quite seeing let's go
[02:07.360 --> 02:13.520]  worldwide now and take a look at the green arrows really around the world in asia japan china you
[02:13.520 --> 02:17.840]  name it pretty much higher across the board hangs saying higher by nine tenths of a percent the
[02:17.840 --> 02:23.360]  shanghai composite higher by about the same in the japanese nikkei adding on three quarters
[02:23.360 --> 02:30.160]  of a of a point and let's take a look at europe in the early going also some green arrows across
[02:30.160 --> 02:35.120]  the world around the world in europe the german's extra tax higher by six tenths of a percent foot
[02:35.120 --> 02:39.520]  two and a hundred higher just marginally but two tenths of a percent that counts as green and france
[02:39.520 --> 02:45.120]  higher by three tenths of a percent investors are waking up to a lot to chew on this morning
[02:45.120 --> 02:50.080]  frankly federal reserve chairman jay powell under renewed pressure from president trump he heads
[02:50.080 --> 02:55.520]  back to the hill today among his concerns the coronavirus which he says the central bank is
[02:55.520 --> 03:01.680]  actively monitoring as companies like boeing and caring flag new concerns over the outbreak
[03:01.680 --> 03:07.520]  earnings season remains at the forefront as well names like cisco walmart and deer those are still
[03:07.520 --> 03:14.480]  on deck and a far left win in new hampshire last night for bernie sanders shaking up the democratic
[03:14.480 --> 03:20.160]  presidential field joining me now clearnomics founder and head of research james lew we got
[03:20.160 --> 03:25.120]  an awful lot to tackle tackle here james let's start with chairman powell what do you expect
[03:25.120 --> 03:29.760]  from him today when he heads back to capitol hill sort of more of what he said yesterday
[03:29.760 --> 03:33.920]  reiterated with the same or different words or a different message here today yeah good morning
[03:33.920 --> 03:37.600]  corny we think it's pretty much going to be the same message i mean the message from the fed is
[03:37.600 --> 03:42.240]  that the economy is in good shape there are these big uncertainties in the world as there always are
[03:42.240 --> 03:47.040]  last year it was trade this year it's the corona virus these uncertainties are very hard to measure
[03:47.040 --> 03:52.000]  but you know you look at last week's jobs report very solid and the underlying trend is still good
[03:52.000 --> 03:57.600]  so there's not much more that the fed can do at the moment other than staying put you also look
[03:57.600 --> 04:03.120]  at the market reaction and where fed fund futures are and while the market has cheered what the fed
[04:03.120 --> 04:08.640]  has done over the last year you also are seeing now the expectation that there will be some sort
[04:08.640 --> 04:13.280]  of rate cut maybe by the middle of the year and certainly at least one rate cut by the end of the
[04:13.280 --> 04:18.080]  year from the market so that's something that's evolving over time and that's changed as uncertainties
[04:18.080 --> 04:22.480]  like corona virus have taken shape does that feel appropriate to you to be talking about rate cuts
[04:22.480 --> 04:26.080]  again i know that may be what the market is expecting but is that what the economic data
[04:26.080 --> 04:30.160]  tells you might be appropriate so not from our perspective so we think that we're in a position
[04:30.160 --> 04:34.240]  where a wait and see approach probably is appropriate but of course you know the market
[04:34.240 --> 04:40.080]  over the last 10 years has been trained to expect this fed put and i think from an economic perspective
[04:40.080 --> 04:44.000]  you know obviously there's a human toll and human tragedy for around corona virus that we shouldn't
[04:44.000 --> 04:49.600]  overlook but economically speaking corona virus couldn't have happened at a worse time and that's
[04:49.600 --> 04:54.960]  because we had all this trade uncertainty affecting trade between us and china and the global economic
[04:54.960 --> 05:00.160]  picture last year and now this year that uh that issue especially the spread of corona virus
[05:00.160 --> 05:04.720]  around the world could in fact have a toll on economic growth as well so you know from a timing
[05:04.720 --> 05:08.880]  perspective it's not great but these are big uncertainties they're very hard to measure and
[05:08.880 --> 05:13.440]  so the fed should probably stay put now the irony of course is that the markets are at all-time highs
[05:13.440 --> 05:17.120]  and are basically trying to look through that right at the moment absolutely that is something
[05:17.120 --> 05:20.800]  that is so interesting and has a lot of us scratching our heads i think the bond market
[05:20.800 --> 05:25.760]  was flashing maybe some warning signs that the equity market wasn't quite but but to your point
[05:25.760 --> 05:29.520]  it does seem as if we're looking through and chairman powell did use the word resilient
[05:29.520 --> 05:35.040]  i believe yesterday when he was talking about the u.s economy's ability to sort of absorb some of
[05:35.040 --> 05:40.800]  these bigger global problems does that do you still feel like we are resilient when it comes to
[05:40.800 --> 05:45.840]  the u.s economy even after all these years of growth in a common native policy we do think
[05:45.840 --> 05:51.200]  that's the case so the u.s of course has been the main engine of the last decade for global growth
[05:51.200 --> 05:57.760]  now the challenge is that if many investors expect a big resurgence in both global growth
[05:57.760 --> 06:02.320]  and also market performance not just based on last year but also where valuations are then we
[06:02.320 --> 06:07.360]  will have to see other economies start to pick up slack and so you think back to a year like 2017
[06:07.360 --> 06:11.520]  when it wasn't just in u.s doing well we had you know people talking about global coordinated
[06:11.520 --> 06:16.000]  growth global synchronized growth and that was a year when not just u.s markets performed well
[06:16.000 --> 06:20.080]  but emerging markets and developed markets also so i think that's the type of situation situation
[06:20.080 --> 06:24.480]  we would have to see of course you know the coronavirus does potentially dent that a little
[06:24.480 --> 06:28.880]  bit but the reality is it's very hard to measure that effect that's you know you think about SARS
[06:28.880 --> 06:33.840]  and really those are backward looking academic studies you can't just count up the number of
[06:33.840 --> 06:39.920]  you know items that weren't produced because of disease it's also the deals that weren't
[06:39.920 --> 06:43.520]  done it's the economic activity that could have happened that didn't happen that's incredibly
[06:43.520 --> 06:47.840]  hard to measure ultimately speaking you know you need this global growth to come back in order to
[06:47.840 --> 06:52.400]  justify what a lot of investors see in the market right now all that makes a lot of sense James
[06:52.400 --> 06:55.760]  thanks for being here with us come back to worldwide exchange and keep us updated when we
[06:55.760 --> 07:00.400]  have better estimates maybe even if it isn't two years great thanks Courtney well Senator Bernie
[07:00.400 --> 07:06.000]  Sanders is celebrating his first clear albeit slim win yesterday in yesterday's New Hampshire
[07:06.000 --> 07:10.560]  primary the victory marks the second strong showing for Sanders as he and the remaining
[07:10.560 --> 07:16.720]  2020 Democrats now shift their focus to Nevada and South Carolina NBC's Alice Barr joins us
[07:16.720 --> 07:22.720]  again this morning good morning Alice good morning Courtney and turnout was high here in New
[07:22.720 --> 07:27.120]  Hampshire higher than back in 2016 that's of course good news for Democrats as they're trying
[07:27.120 --> 07:32.480]  to engage voters we are also seeing the top tier of candidates shifting as they head into the next
[07:32.480 --> 07:41.520]  round of voting thank you Senator Bernie Sanders riding high this morning off a first place finish
[07:41.520 --> 07:49.360]  in the first in the nation primary this victory here is the beginning of the end for Donald Trump
[07:52.080 --> 07:57.920]  former mayor Pete Buttigieg coming in a close second roughly 4,000 votes behind thanks to you
[07:57.920 --> 08:03.760]  a campaign that some said shouldn't be here at all has shown that we are here to stay
[08:03.760 --> 08:12.800]  and Senator Amy Klobuchar placing third delivering on momentum from a strong debate performance and
[08:12.800 --> 08:18.080]  rocketing into the top tier we have beaten the odds every step of the way
[08:20.560 --> 08:25.920]  Senator Elizabeth Warren looking for a path forward after a disappointing fourth place finish
[08:25.920 --> 08:32.880]  our campaign is built for the long haul while former Vice President Joe Biden landed in fifth
[08:32.880 --> 08:38.320]  having already left New Hampshire before results came in he spoke last night from South Carolina
[08:38.320 --> 08:45.920]  where he's counting on a rebound from a more diverse electorate 99.9 percent that's the
[08:45.920 --> 08:50.240]  percentage of African-American voters who have not yet had a chance to vote in America
[08:53.760 --> 08:59.040]  the field is narrowing businessman Andrew Yang and Senator Michael Bennett both announcing they
[08:59.040 --> 09:04.400]  are dropping out as winners and losers emerge from New Hampshire sharpening the picture of
[09:04.400 --> 09:11.440]  the race to November at this point coming out of the first two contests Pete Buttigieg still has
[09:11.440 --> 09:15.600]  a slight lead in the delegate count which will ultimately decide the nominee though of course
[09:15.600 --> 09:20.240]  there is still a long way to go until that decision Courtney absolutely we've got a long
[09:20.240 --> 09:25.440]  road ahead Alice thanks for being here with us this morning when we come back forget travel
[09:25.440 --> 09:31.120]  retail and tech yet another industry sounding the alarm over the coronavirus outbreak bracing for a
[09:31.120 --> 09:37.600]  possible supply chain shock a mixed morning has SoftBank shares surging to a seven month high
[09:38.160 --> 09:44.560]  check out that higher by 12 percent find out why next and later former federal reserve board
[09:44.560 --> 09:49.200]  governor Sarah Bloom Braskin is here her take on Powell's day one testimony and what we can
[09:49.200 --> 09:55.920]  expect from day two a very busy hour still ahead when worldwide exchange returns
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[10:59.920 --> 11:06.080]  box reaction to quarterly numbers from lift what challenges and changes to the roadmap could steer
[11:06.080 --> 11:12.880]  investors to the rideshare company squat box today 6 a.m eastern watch or listen live on the cnbc app
[11:13.920 --> 11:20.880]  microsoft amazon alphabet igniting tech goldman sachs lead internet analyst examines what could
[11:20.880 --> 11:27.680]  push the sector even higher squawk alley 11 a.m eastern today watch or listen live on the cnbc app
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[12:26.560 --> 12:33.200]  exclusive new shower package welcome back let's get to check on the latest news surrounding the
[12:33.200 --> 12:38.000]  coronavirus outbreak rael solomon is here rael how's it looking today hi corny so china is now
[12:38.000 --> 12:42.800]  reporting the lowest number of new coronavirus cases in the hubei province since the end of
[12:42.800 --> 12:48.400]  january that of course is the epicenter of the outbreak so officials say that 1068 new cases
[12:48.400 --> 12:54.640]  are confirmed that's down from a peak of more than 3000 on february 4th however there have also been
[12:54.640 --> 13:00.160]  94 new deaths reported in the region drug makers are also bracing for potential supply disruptions
[13:00.160 --> 13:05.360]  from china the ceo of one of india's largest pharmaceutical companies this morning supplies
[13:05.360 --> 13:10.880]  would start running out by the end of this month unless china restarts production china makes
[13:10.880 --> 13:17.360]  compounds that are used in antibiotics painkillers and also diabetes drugs and fed chairman j paul
[13:17.360 --> 13:22.400]  commenting on the impact of the coronavirus could have an impact on the global economy testifying
[13:22.400 --> 13:27.600]  before congress yesterday paul 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 --> 13:47.280]  and china's close neighbors and trade major trading partners in europe as well as asia and
[13:47.280 --> 13:51.280]  we know that there will be some very likely be some effects on the united states i think it's
[13:51.280 --> 13:57.120]  just too early to say also shares of gucci's parent company caring are hired today after reporting
[13:57.120 --> 14:01.920]  strong fourth quarter results but the company also says that it has seen a serious drop in
[14:01.920 --> 14:07.440]  customer traffic in china caring says that it's shifting some inventory to other countries shares
[14:07.440 --> 14:12.320]  of foxconn rising more than three percent today this is on reports that it aims to resume half of
[14:12.320 --> 14:17.120]  its production in china by the end of the month Reuters says that foxconn is also shooting to be
[14:17.120 --> 14:22.240]  at 80 of capacity by sometime in march you can see shares are up about three percent in pre-market
[14:22.240 --> 14:27.040]  and boeing is warning that the virus will hit the airline industry's profit this year speaking to
[14:27.040 --> 14:32.640]  reporters at the singapore air show a senior executive says that's due to travel restrictions
[14:32.640 --> 14:37.680]  and a 70 drop in capacity by chinese airlines and corny you and i talked about this on rapid
[14:37.680 --> 14:42.320]  fire yesterday of course if flights aren't going into china of course that hurts the airlines but
[14:42.320 --> 14:46.720]  also a lot of the companies that do really well in those airports absolutely i know the ripple
[14:46.720 --> 14:50.400]  effects i think are really hard to measure and i have to actually give some of these companies
[14:50.400 --> 14:55.280]  credit for trying to measure even giving us some of these numbers 70 80 whether they're talking
[14:55.280 --> 15:00.240]  about a revenue hit manage expectations yeah and i think it's just going to be hard to really know
[15:00.240 --> 15:04.480]  and as james louis our last guest was saying we may not know for several years down the road what
[15:04.480 --> 15:09.120]  the collective impact right it's often pretty backward looking but we gotta try to figure it
[15:09.120 --> 15:15.840]  out now thank you sure okay well don't forget to watch cnbc's special coverage of the outbreak
[15:15.840 --> 15:20.960]  that breaks down the fast-moving developments and the market impact that's tonight at 7 p.m
[15:21.520 --> 15:28.000]  eastern time well still on deck why investors may want to stay away from that beyond section
[15:28.000 --> 15:39.760]  this morning today's big number 14 trillion dollars that's the total household debt in the u.s
[15:39.760 --> 15:58.560]  it grew over 600 billion dollars in 2019 making it the biggest annual increase in 12 years
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[18:10.080 --> 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 --> 18:53.760]  after the close of japanese trading softbing of sprint merger with t-mobile a lot going on
[18:53.760 --> 18:59.040]  there for softbank now western union is reporting fourth quarter earnings and revenue that missed
[18:59.040 --> 19:04.960]  forecast the company says the stronger dollar negatively impacted revenue you can see shares
[19:04.960 --> 19:10.800]  down more than six percent and shares of bed bath and beyond a few plunging by more than 20
[19:10.800 --> 19:16.000]  actually down more than 25 after the retailer said fourth quarter sales were hit by increased
[19:16.000 --> 19:21.840]  promotions falling traffic and inventory issues same store sales in december and january those
[19:21.840 --> 19:26.720]  dropped more than five percent or and that was more than expected the ceo says the company is
[19:26.720 --> 19:33.040]  experiencing quote short-term pain and efforts to stabilize the business that ceo is still sort of
[19:33.040 --> 19:37.040]  getting his feet under him trying to figure out what that business is all about and frankly how
[19:37.040 --> 19:44.240]  to fix it well as we head to break president trump giving his maga slogan new meaning yesterday and
[19:44.240 --> 19:49.520]  we have four trillion dollar companies one is microsoft one is apple one is google one is
[19:49.520 --> 19:56.160]  amazon so you have amazon google apple and microsoft and so you have an m you have an a
[19:56.160 --> 20:02.880]  you have a g and you have an a you have maga the comments coming just hours after the ftc
[20:02.880 --> 20:08.480]  expanded its antitrust investigation into big tech over past acquisitions that may have hurt
[20:08.480 --> 20:13.520]  competition consumers and evaded regulatory scrutiny we're back after this
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[22:56.880 --> 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 cordney 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 --> 23:19.680]  recommendation that federal prosecutors had filed the decision coming after a tweet from the
[23:19.680 --> 23:24.960]  president called the seven to nine year recommendation quote a miscarriage of justice
[23:24.960 --> 23:29.840]  all four prosecutors in the case have now dropped out in protest of the move and one is leaving the
[23:29.840 --> 23:35.760]  justice department altogether actor jussie smollett is facing new charges this morning the empire star
[23:35.760 --> 23:41.600]  faces a new 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 --> 23:58.000]  was launched after similar charges were abruptly dropped last year attorneys for some for smollett
[23:58.000 --> 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
[24:22.400 --> 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 --> 24:36.480]  take with that car thank you you totally bedazzled thank you philip well still to come why some say
[24:36.480 --> 24:42.320]  lift needs to get its priorities in order as that stock falls more than four percent this morning
[24:42.320 --> 24:49.040]  plus the carlos gonzaga far from over as nissan takes a new swipe at its ousted former chairman
[24:49.040 --> 24:54.880]  and a programming note don't miss a cbc exclusive with cbs health ceo larry merlo on closing bell
[24:54.880 --> 25:00.560]  today as that company prepares to release results just after 7 a.m eastern time worldwide exchange
[25:00.560 --> 25:11.040]  is back after this rising energy costs are frustrating electricity rates continue to
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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 --> 28:06.480]  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 --> 28:38.320]  though of course ahead with fed chairman's testimony again on the hill coronavirus earnings and the
[28:38.320 --> 28:42.960]  new hampshire primary results all of that on investors radars let's take a look at the bond
[28:42.960 --> 28:48.960]  market the yield on the 10 year sitting at 1.614 percent taking slightly higher from the yield
[28:48.960 --> 28:54.320]  yesterday let's get a check on the asian markets we saw green arrows mostly around the world and
[28:54.320 --> 28:59.440]  as you can see across the board in asia with shanghai hangsang and the japanese nikkei all
[28:59.440 --> 29:04.880]  higher just under one percent though european markets also indicating or actually i should say
[29:04.880 --> 29:09.040]  they are open right there a couple hours ahead of us so they're higher we've got the german's
[29:09.040 --> 29:13.360]  extra tax higher by six tenths of a percent footsie 100 higher by three tenths of a percent
[29:13.360 --> 29:18.160]  and france is higher by three tenths of a percent as well let's get a look at some of the other top
[29:18.160 --> 29:22.640]  stories that we're following this morning ralph solomon is here hi ralph hi courtney so the saga
[29:22.640 --> 29:27.760]  between nissan and carlos gon continues so nissan has filed a civil lawsuit in japan against its
[29:27.760 --> 29:32.960]  former chairman carlos gon the automaker is seeking an initial amount of 90 million dollars
[29:32.960 --> 29:38.640]  in the suit the company says it's looking to recover monetary damages inflicted by gon as a
[29:38.640 --> 29:44.720]  result of quote years of misconduct and fraudulent activity google kicks off a landmark legal case in
[29:44.720 --> 29:49.040]  europe today during the three-day hearing at europe's second highest court the company will
[29:49.040 --> 29:55.440]  seek to overturn three european union antitrust funds that total roughly nine billion dollars
[29:55.440 --> 30:00.960]  decision is not expected until next year and the federal aviation administration is admitting that
[30:00.960 --> 30:06.640]  it has not effectively overseen systems for managing safety risks at southwest airlines
[30:06.640 --> 30:10.880]  so this follows a new report from the u.s department of transportation's office of inspector
[30:10.880 --> 30:18.080]  general that blasted the faa the agency says that local faa manager is responsible for monitoring
[30:18.080 --> 30:23.040]  southwest failed to ensure that the carrier complied with mandatory maintenance standards
[30:23.040 --> 30:28.720]  while incorporating 88 used jets into its fleet shares of southwest are lower this morning as we
[30:28.720 --> 30:34.640]  can see down about 1.2 percent in pre-market court real thank you very much we're gonna see you back
[30:34.640 --> 30:40.080]  a little later well the 2020 democrats are turning their attention to nevada and south carolina after
[30:40.080 --> 30:45.200]  senator bernie sanders victory in the new hampshire primary sanders when puts him near the top of the
[30:45.200 --> 30:51.040]  party's fractured presidential field which is now smaller after yesterday's contest cbc's kayla
[30:51.040 --> 30:56.320]  tauci joins us now kayla can you break down sort of where things stack up after the primary it
[30:56.320 --> 31:04.000]  hasn't been so clear to all of us all along the way who's really the leader well sanders uh is
[31:04.000 --> 31:11.280]  victorious in new hampshire after a clear victory last night after a chaotic run in iowa just a week
[31:11.280 --> 31:19.200]  ago courtney with 25.9 percent of the votes uh sanders can claim victory here although notably
[31:19.200 --> 31:24.000]  his support in the state has been significantly eroded by the entrance of south bend mayor pete
[31:24.000 --> 31:29.840]  buda judge and minnesota senator amy clobuchar who essentially split the support that sanders
[31:29.840 --> 31:36.080]  received here in the state in the 2016 cycles peter pete buda judge with 24.4 percent and
[31:36.080 --> 31:42.320]  clobuchar with just shy of 20 after being largely written off just a week ago because of a lower
[31:42.320 --> 31:47.120]  tier trying to figure out whether she can sustain this momentum and how here's the senator in new
[31:47.120 --> 31:57.120]  hampshire last night and tonight in new hampshire as everyone had counted us out even a week ago
[31:57.120 --> 32:09.040]  thank you pundits i came back and we delivered because of the fractured field perhaps many were
[32:09.040 --> 32:14.000]  surprised at the low finish of senator elizabeth warren and former vice president joe biden who
[32:14.000 --> 32:19.680]  with lower than 15 of support here in new hampshire did not cross the threshold to get
[32:19.680 --> 32:26.320]  any delegates biden has already left new hampshire to start campaigning in south carolina which is the
[32:26.320 --> 32:33.680]  next presidential state contest on february 22nd he acknowledged that he has not been performing
[32:33.680 --> 32:40.080]  well in the race but is and latinos to hopefully improve his numbers and finally because of the
[32:40.080 --> 32:46.000]  performance in new hampshire we are seeing some presidential campaigns suspended both andrew
[32:46.000 --> 32:50.880]  yang and senator michael bennett saying last night that it would be the end of the road for their
[32:50.880 --> 32:57.280]  campaigns so we are seeing the race narrow slightly courtney but we still have more than a handful
[32:57.280 --> 33:01.040]  in the running yeah kayla and yesterday i know you were telling us that at least that
[33:01.040 --> 33:06.960]  sort of ceremonial first votes they went to mayor bloomberg but i didn't hear you sort of
[33:06.960 --> 33:09.680]  mention how it all shook out for him i guess that was all he got
[33:12.160 --> 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 --> 33:41.680]  here in new hampshire and opening an office here uh but uh he has not really been campaigning here
[33:41.680 --> 33:48.080]  at all he will appear on his first debate stage of the cycle next week in nevada that is certainly
[33:48.080 --> 33:53.440]  something every campaign is preparing for this is so interesting kayla thank you very much for
[33:53.440 --> 33:58.160]  bringing it to us this morning this is going to continue to unfold in the weeks and the months
[33:58.160 --> 34:02.960]  ahead well for more on senator sander's victory and what it means for the election and your money
[34:02.960 --> 34:08.320]  i'm joined by jeff mills he's chief investment officer at bren marr trust and jimmy pethakoukas
[34:08.320 --> 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 --> 34:37.680]  that we had a front runner who as it turns out is really bad at running for president i don't think
[34:37.680 --> 34:42.480]  joe biden's ever done better than about a fourth place finishing a primary uh he looks like he
[34:42.480 --> 34:49.680]  barely has a pulse and we have a very weak front runner in a very uh fractured field and listen if
[34:49.680 --> 34:55.520]  you were going to come up with a scenario where somebody who has unlimited money to spend can jump
[34:55.520 --> 35:02.320]  in shake the whole thing up maybe win maybe create a uh you know a brokered convention next summer
[35:02.320 --> 35:07.200]  that's exactly what you're seeing you mentioned mike bloomberg at the end um i don't know what i
[35:07.200 --> 35:11.600]  don't know what his scenarios were that he ends up as a democratic nominee but they couldn't look
[35:11.600 --> 35:16.160]  much better than what's happening right now and so jeff now that we hear everything jimmy has to
[35:16.160 --> 35:20.560]  say and he's talking about a fracture field i guess it's a little hard for investors to sort of
[35:20.560 --> 35:26.800]  make some their bets with their money but if it is bernie sanders i mean you couldn't be further
[35:26.800 --> 35:31.120]  different from the situation we have right now in the white house as far as economic policy is
[35:31.120 --> 35:37.280]  concerned yeah no no question but i think the market has it about right you know it continues
[35:37.280 --> 35:43.120]  to levitate even as sanders has risen in the polls but i think the bottom line is that no president
[35:43.120 --> 35:48.400]  has lost re-election when they've avoided a recession in the two years prior to that re-election
[35:48.400 --> 35:53.680]  bid so you know in my estimation you have a bottoming of global manufacturing it looks
[35:53.680 --> 35:58.960]  like leading economic indicators are inflecting higher if you look at earnings as an example
[35:58.960 --> 36:05.200]  usually guidance for 2020 at this point in time would have been down by about 1.4 percent guidance
[36:05.200 --> 36:10.480]  is only down by about four percent so far so fundamentally things look good which means we
[36:10.480 --> 36:15.600]  likely avoid a recession leading into re-election so i think investors are looking toward another
[36:15.600 --> 36:21.280]  president trump uh victory here and usually when the incumbent wins on average the s&p 500 is up
[36:21.280 --> 36:26.640]  about 10 percent when the incumbent loses usually up about three percent so a big gap there but if
[36:26.640 --> 36:30.560]  you're playing the odds it looks like a reasonably good scenario for markets and i think that's how
[36:30.560 --> 36:35.840]  investors are acting at the current time you know i mean polls show that uh or suggest you know that
[36:35.840 --> 36:40.880]  bernie sanders can be president trump uh a lot of investors look at those betting markets those
[36:40.880 --> 36:46.080]  betting markets have trump the favorite and even if even if trump should lose you have a president
[36:46.080 --> 36:50.400]  sanders you know we're not going to get a well taxed probably unconstitutional we're not going
[36:50.400 --> 36:54.320]  to suddenly we're not going to you know all all private insurance companies so i think they're
[36:54.320 --> 36:59.600]  looking at it's an unlikely scenario the bernie sanders wins it's even more unlikely scenario
[36:59.600 --> 37:05.120]  that we go hashtag full socialism and jeff as you follow along you know you said you gave us some
[37:05.120 --> 37:11.120]  stats there about what happens when incumbent presidents win and then if they lose the s&p 500
[37:11.120 --> 37:18.880]  is up about 56 percent since trump has been in office i mean but what what would market say about
[37:18.880 --> 37:23.760]  sort of looking at this very fractured field i guess i'm still just not convinced that the markets
[37:23.760 --> 37:28.720]  are going to behave the same way if the candidate is is bernie sanders versus if the democratic
[37:28.720 --> 37:34.400]  candidate is say mike bloomberg yeah look i mean jim mentioned it right if you look at the national
[37:34.400 --> 37:39.360]  polling i think sanders is ahead of trump by something like four percent and that gap has
[37:39.360 --> 37:44.960]  actually widened a little bit so i do think that even if it's just for a period of time investors
[37:44.960 --> 37:51.280]  may need to react in a way that you know supposes that there could possibly be a bernie sanders
[37:51.280 --> 37:56.320]  president so i think it could cause volatility in the near term and honestly i've been surprised
[37:56.320 --> 38:00.800]  that the catalyst the markets have been given thus far whether it's coronavirus or sanders surging in
[38:00.800 --> 38:06.000]  the polls hasn't done more to shake the markets i mean if you look at what's going on right now
[38:06.000 --> 38:12.080]  you've got the top 50 names in the s&p 500 some 13 percent above their long-term moving average
[38:12.080 --> 38:17.360]  if you look under the surface there's some breadth deterioration so we had 80 of names above the 50
[38:17.360 --> 38:22.880]  day moving average now only 60 so i think in the near term whether it's the coronavirus whether
[38:22.880 --> 38:27.280]  it's something in short term prediction i think if you look out ahead it's just difficult to be
[38:27.280 --> 38:31.920]  too negative on a market where the liquidity backdrop is what it is via what central banks
[38:31.920 --> 38:37.120]  are doing they continue to stand at the ready and like i said i think fundamentals on on balance are
[38:37.120 --> 38:42.640]  actually looking better not worse jimmy looking forward as these primary contests roll on do you
[38:42.640 --> 38:46.160]  think we're going to continue to see such a fracture field or are these campaigns going to
[38:46.160 --> 38:50.880]  start to pull together and voters start to sort of aggregate towards one candidate or is this just
[38:50.880 --> 38:54.720]  the way it's going to be until we get to like you said the possibility of a brokered convention
[38:55.520 --> 39:00.640]  yeah listen i think i think if you had if there wasn't a mike bloomberg sort of looming out there
[39:00.640 --> 39:05.760]  you'd say at some point listen sanders has you know he's won the votes in these in the caucus
[39:05.760 --> 39:11.520]  and the primary uh the next couple of states look much better than him i mean he kind of in a normal
[39:11.520 --> 39:16.400]  situation he kind of should be the democratic nominee people don't believe it because of his age
[39:16.400 --> 39:22.400]  because of the socialism tag and because we have this age bomb of money about to explode in this
[39:22.400 --> 39:28.000]  primary over the next few weeks that's why i think this is still going to be a very topsy-turvy field
[39:28.000 --> 39:32.960]  for quite a long time jeff mills jimmy pethacuchus thank you both for joining us this morning you
[39:32.960 --> 39:36.800]  know we're going to keep talking to you for the months to come because we have a lot to figure out
[39:36.800 --> 39:42.880]  it seems well shares of lift tumbling despite the company posting results that beat analyst
[39:42.880 --> 39:48.080]  estimates fourth quarter revenue topping one billion dollars for the first time ever investors
[39:48.080 --> 39:53.040]  though paying closer attention to the stock following uber's fourth quarter beat and updated
[39:53.040 --> 39:58.640]  profitability target shares of liftdown four percent ceo logan green didn't update lifts
[39:58.640 --> 40:04.000]  profitability timeline but he did make it clear that it was among the key themes the company is
[40:04.000 --> 40:11.680]  focused on this year we expect to deliver continued strong top line growth in 2020 while also making
[40:11.680 --> 40:16.880]  progress on our path to profitability as we've discussed on prior calls there are three key
[40:16.880 --> 40:23.280]  themes that we're focused on first is product innovation second is profitable growth and third
[40:23.280 --> 40:29.920]  is operating leverage joining me now santosh rao he is head of research at manhattan venture partners
[40:29.920 --> 40:35.360]  his firm was an early investor in lift okay so you just heard logan green profitability number
[40:35.360 --> 40:42.080]  two on his list should it be number one uh well good morning uh thanks for having me again uh
[40:42.080 --> 40:45.920]  i think it's no they're on the right track they're not in a rush they don't want to pull in the
[40:45.920 --> 40:51.120]  timeline they and that's one of the reasons why we invested right from the beginning uh we feel
[40:51.120 --> 40:55.520]  it's a pure play with a focused strategy very disciplined strategy so i think that's what
[40:55.520 --> 41:00.320]  they're doing they are executing to that strategy they're not in a rush like he said profitable
[41:00.320 --> 41:05.920]  growth until the second the last quarter of 2021 they will be profitable so i trust them i trust
[41:05.920 --> 41:10.800]  the numbers i trust the ceo so i think he's on the right track and this quarter was a classic
[41:10.800 --> 41:16.080]  beaten race fourth quarter right off the gate doing great uh with big numbers so i think this
[41:16.080 --> 41:20.400]  company is on the right track and our thesis is proving out that this is the way to go so you
[41:20.400 --> 41:24.480]  were an early investor are you currently an investor in lift no we are not i mean we distribute the
[41:24.480 --> 41:30.720]  shares after the expiration but uh we were early investors like i said okay okay and so you you
[41:30.720 --> 41:35.520]  mentioned that lift is a pure play and you mean because they don't have an a lift eats like an
[41:35.520 --> 41:40.400]  uber eats but some people point to that as actually a really good thing for uber you don't
[41:40.400 --> 41:44.880]  think lift needs that no they don't need that i mean uber eats it eats business is good but it's
[41:44.880 --> 41:49.040]  competitive that's the thing about uber and uber it's a different game it's a platform it has a
[41:49.040 --> 41:53.920]  number of other businesses not all profitable we don't know when they'll be profitable but it's
[41:53.920 --> 42:00.160]  it's a it's a broad platform but i think the way to go is the right sharing business in north america
[42:00.160 --> 42:05.760]  which has the best unit economics so this is the right focus very well with the optionality later
[42:05.760 --> 42:10.320]  on of going into other businesses i would rather go that way then go this way because there is a
[42:10.320 --> 42:15.760]  lot more to do here the market is big there's a huge uh opportunity out there it's still a lot
[42:15.760 --> 42:21.600]  more to go still early stages so i think they need the resources and the attention to execute here
[42:21.600 --> 42:26.560]  and then later on see try to go into other business if needed but they don't need to so
[42:26.560 --> 42:30.480]  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 --> 42:50.640]  initiative they're confident that they can win but let's see where that plays out california is
[42:50.640 --> 42:55.360]  not the biggest part of the market i mean it's big but it's not all all the business and there's a
[42:55.360 --> 43:00.640]  lot of other businesses around so there'll be some hit uh small percentage of the total uh
[43:00.640 --> 43:07.600]  earnings i guess but uh overall i think we'll see i think the genie's out of the bag no one you
[43:07.600 --> 43:12.560]  cannot take this back right sharing is the way to go of the future everyone wants that there's a
[43:12.560 --> 43:17.200]  groundswell of support from bottom up so you'll see at somewhere in between you will settle there
[43:17.200 --> 43:22.880]  will be a compromise somewhere but uh in the end you need gig economy you need ride sharing that's
[43:22.880 --> 43:28.320]  the way to go transportation of transportation as a service is a big part of the future that's
[43:28.320 --> 43:32.640]  where we invested that's how that's why we thought this was the right place to go so a lot of moving
[43:32.640 --> 43:36.960]  parts santosh thanks for being here with us thank you thanks for having me absolutely well coming
[43:36.960 --> 43:43.520]  up netflix making a rare move with the release of one highly anticipated sequel details on that and
[43:43.520 --> 43:48.240]  the other stories you're going to be talking about that's ahead and coming up in a cnbc exclusive
[43:48.240 --> 43:54.160]  golden sax ceo david solomon joins closing bell as the bank's annual internet and technology
[43:54.160 --> 43:58.800]  conference kicks off at the 4 pm eastern time robot exchange though back in just a moment
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[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]  it's free it's own breed they're not not measuring measuring daniel against ceba exactly they're
[47:14.800 --> 47:21.120]  measuring ceba against standard poodles and daniel against golden retrievers and apparently the judges
[47:21.120 --> 47:26.720]  felt like ceba was closer to the ideal standard they're both cute they can both win and speaking
[47:26.720 --> 47:32.720]  as an owner of a golden doodle i love both breeds yeah right yes also netflix giving non-subscribers
[47:32.720 --> 47:38.480]  now a freebie amid one highly anticipated release the company's 2018 original to all the boys that
[47:38.480 --> 47:43.680]  i've loved before will be available to stream regardless of whether or not you are a paid user
[47:43.680 --> 47:48.560]  through march 9th so the move comes as the sequel to the hit rom-com officially hits the platform
[47:48.560 --> 47:53.280]  today and this is the first time that netflix has offered free streaming for one of its originals in
[47:53.280 --> 47:58.640]  the u.s will be very interesting to see if this leads to more subscribers because think about it
[47:58.640 --> 48:03.840]  if you've watched now the first one right and you're into it yeah you'd be more willing to pay
[48:03.840 --> 48:08.160]  you know to see the second one they say it's a hit and i love rom-coms but i have not heard of this
[48:08.160 --> 48:13.600]  nor have i seen it so i've totally missed that boat we may have aged out though you and i oh i
[48:13.600 --> 48:19.680]  mean i'm with you though i'm with you pizza hut serving up another interesting innovation the chain
[48:19.680 --> 48:25.680]  announced that its newest product the mozzarella poppers pizza it comes with 16 mozzarella filled
[48:25.680 --> 48:29.600]  squares baked right into the pizza crust like right on top of this you see there the restaurant
[48:29.600 --> 48:34.800]  is causing it calling it the cheesy its pizza yet a bold claim considering that the chain was also
[48:34.800 --> 48:39.840]  behind the stuffed crust pizza this also comes a week after papa john's launched its innovation
[48:39.840 --> 48:45.680]  the papa dia i do remember all of those innovations and it does sort of get you interested i feel like
[48:45.680 --> 48:49.840]  everybody's i shouldn't say everybody a lot of people try it once i don't know if you keep going
[48:49.840 --> 48:54.800]  back to it like does it does the mozzarella stuffed crust become your go-to pizza probably not right
[48:54.800 --> 48:58.640]  maybe it's just a novelty right like maybe you just try it once as you said exactly like okay
[48:58.640 --> 49:03.520]  it's a lot of mozzarella but maybe that's all they need interesting i love cheese i would definitely
[49:03.520 --> 49:08.800]  be willing to try here here well on deck boeing issues a new warning over the coronavirus and the
[49:08.800 --> 49:14.160]  major economic impact the outbreak will likely have plus what investors should take away from jay
[49:14.160 --> 49:18.880]  powell's latest comments before he testifies to congress again this morning we'll talk to former
[49:18.880 --> 49:24.160]  fed governor sarah bloom raskin that's coming up next and a reminder you can always watch or listen
[49:24.160 --> 49:39.760]  to us live on the go on the cmdc app worldwide exchange is back in just a moment
[49:39.760 --> 49:49.360]  so
[50:02.960 --> 50:05.760]  when it comes to your business internet which is more important
[50:05.760 --> 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 --> 50:36.800]  call today comcast business beyond fast
[50:47.920 --> 50:54.080]  make fitness routine with pure protein high protein low sugar tastes great high protein low
[50:54.080 --> 51:01.920]  sugar so good high protein low sugar birthday cake and try pure protein delicious protein shakes
[51:03.040 --> 51:08.880]  next on squat box reaction to quarterly numbers from lift what challenges and changes to the
[51:08.880 --> 51:14.960]  roadmap could steer investors to the rideshare company squat box today 6 a.m eastern watch or
[51:14.960 --> 51:21.840]  listen live on the cmdc app it's time to change the way you think about money personal stories
[51:21.840 --> 51:29.920]  money tips strategies for saving and investing invest in you ready set grow cnbc and acorns go
[51:29.920 --> 51:36.800]  to cnbc.com slash 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 --> 52:21.440]  year because of challenges in china stemming from that outbreak boeing is also warning that the
[52:21.440 --> 52:27.040]  virus will hit airline revenues and profits shares of boeing down only fractionally and a federal
[52:27.040 --> 52:32.640]  judge has dismissed some of the charges against theranos founder elizabeth holmes the judge ruled
[52:32.640 --> 52:38.320]  patients were not deprived of any money or property by using the company's blood testing services
[52:38.320 --> 52:43.360]  and there was no evidence showing holmes directed doctors to make misrepresentations to their
[52:43.360 --> 52:49.840]  patients the judge did uphold wire fraud charges however against holmes well as stock features
[52:49.840 --> 52:54.240]  point to new records for wall street at the open investors also looking ahead to a second day of
[52:54.240 --> 52:59.600]  testimony from federal reserve chairman jay powell expected to testify before the senate banking
[52:59.600 --> 53:04.240]  committee at 9 a.m eastern time today just one day after he said the central bank is closely
[53:04.240 --> 53:12.000]  monitoring the coronavirus outbreak the question for us really is what will be the effects on the
[53:12.000 --> 53:17.520]  u.s economy will they be persistent will they be material that's really the question i think we
[53:17.520 --> 53:22.560]  know there will be effects on china through through some part of the first half of the
[53:22.560 --> 53:28.800]  year and china's close neighbors and trade major trading partners in europe as well as asia and we
[53:28.800 --> 53:33.040]  know that there will be some very likely be some effects on the united states i think it's just too
[53:33.040 --> 53:39.200]  early to say we have to resist the temptation to speculate on this and so we'll be watching that
[53:39.200 --> 53:43.600]  carefully again and the question we'll be asking is will these be persistent effects that could
[53:43.600 --> 53:49.600]  lead to a material reassessment of the outlook joining me now with morris federal his former
[53:49.600 --> 53:54.160]  federal reserve board governor and former deputy treasury secretary sarah bloom raskin she's also a
[53:54.160 --> 53:58.800]  cmc contributor and duke university rubenstein fellow sarah good morning thank you for being
[53:58.800 --> 54:04.000]  here with us today you of course heard mr powell i'm sure you heard him say all of those things
[54:04.000 --> 54:09.120]  yesterday as we're trying to square up really the impact of the coronavirus saying we have to
[54:09.120 --> 54:13.760]  wait and see if it's material it seems to me that there's no question it will be material we just
[54:13.760 --> 54:22.640]  don't know perhaps to what degree that's right this virus actually does have quite the potential
[54:22.640 --> 54:29.360]  to really have some big knock-on effects if you think about certainly the impact the economic
[54:29.360 --> 54:35.920]  impact on china itself there is now speculation that that will knock off a couple of points of
[54:35.920 --> 54:42.080]  gdp growth there in terms of how you know in terms of how they measure it but the effects on the u.s
[54:42.080 --> 54:47.760]  and on the trading partners for china are also really what we have to keep an eye on you heard
[54:47.760 --> 54:52.480]  chairman powell talk about these effects being looking to see whether they are persistent
[54:53.120 --> 55:01.520]  and material that is in fact what the what the fed will look at this is you know as i see it really
[55:01.520 --> 55:07.520]  uh kind of a double whammy because of course we're coming out of a situation where trade has been
[55:07.520 --> 55:15.520]  affected uh by the tariff wars and now we have um this uh you know this this virus to contend with
[55:15.520 --> 55:21.600]  uh from an economic growth perspective so i think i think this is actually um a serious headwind
[55:21.600 --> 55:25.920]  i think so too and i think it's going to be some time before we know we're so much more interconnected
[55:25.920 --> 55:30.560]  it seems now than even we were during the sars outbreak both the united states and china but
[55:30.560 --> 55:35.200]  really china with the rest of the world and their economy has certainly swelled to be much larger
[55:35.200 --> 55:40.160]  than it was then but the president of course sarah also kept up his attacks against jay powell he was
[55:40.160 --> 55:45.680]  tweeting during yesterday's testimony quote when jeroen powell started his testimony today that
[55:45.680 --> 55:51.280]  was up 125 and heading higher as he spoke it drifted steadily downward as usual and is now
[55:51.280 --> 55:56.640]  negative 15 germany and other countries get paid to borrow money we are more prime but fed rate is
[55:56.640 --> 56:03.440]  fed rate is too high dollar tough on exports oh sarah i don't think he's ever going to escape
[56:03.440 --> 56:08.160]  these tweets he's always going to be criticized and trump keeps pushing for this idea of negative
[56:08.160 --> 56:13.680]  rates what do you make of it all put together i guess both the president's president's criticism
[56:13.680 --> 56:18.720]  of powell and the idea of negative interest rates right and well the question of negative interest
[56:18.720 --> 56:24.720]  rates actually got questioned um you know in the in the context of the hearing yesterday and i
[56:24.720 --> 56:30.080]  thought i thought chairman powell was was was particularly articulate in taking negative
[56:30.080 --> 56:35.600]  interest rates off the table i mean he has made it clear that that is not going to be a tool in
[56:35.600 --> 56:42.000]  the toolbox that the fed is like more ammunition um he talked about the use of forward guidance
[56:42.000 --> 56:47.760]  the use of large-scale asset purchases not that these are being contemplated at the moment but you
[56:47.760 --> 56:56.800]  see the fed here starting to talk about its usual playbook it should it need it in terms of more
[56:56.800 --> 57:03.760]  accommodation so i think the negative interest rate point was handled uh you know pretty clearly
[57:03.760 --> 57:11.600]  by chairman powell that is not going to be a tool that he is contemplating right now and i think you
[57:11.600 --> 57:17.360]  know the president can tweet on and on as much as he wants about it it is a tool that is is
[57:17.360 --> 57:23.520]  has mixed results in terms of its use in other countries and i think its use in the u.s is uh
[57:23.520 --> 57:28.080]  something that is is not considered imminent before we go here powell did also highlight
[57:28.080 --> 57:32.160]  what he sees as the biggest risk to u.s growth cyber crime if you can just take a minute we're
[57:32.160 --> 57:39.920]  going to play this for you the thing that that uh we worry about a lot is is cyber attacks i think
[57:39.920 --> 57:45.280]  we have a great game plan for traditional you know issues like bad loans and things like that
[57:45.280 --> 57:51.840]  it's more cyber attacks is really the the frontier where you worry sarah what do you think about that
[57:51.840 --> 57:57.120]  how big of an issue is that it seems like so many businesses that we talk to at cnbc say yeah we're
[57:57.120 --> 58:01.920]  getting attacked basically every day we've just gotten better at sort of thwarting many of them
[58:01.920 --> 58:06.160]  but you know that's not at some point they're going to break through i should say that's right
[58:06.160 --> 58:12.480]  and the volume and the complexity uh the sophistication of these cyber attacks continues
[58:12.480 --> 58:18.480]  to increase we saw this i mean i saw this back at my time at treasury i mean this was something that
[58:18.480 --> 58:26.400]  is a mounting concern i think that chairman powell is correct in noting that the defensive
[58:26.400 --> 58:32.000]  posture of a lot of financial institutions is actually increasing and that's a good thing so
[58:32.000 --> 58:39.600]  from a defensive posture a lot of the institutions do have good mechanisms in place to thwart the
[58:39.600 --> 58:44.400]  attacks but in terms of their coming they're coming fast and furious and they continue
[58:45.040 --> 58:50.560]  this is a serious headwind i i would you know i would have probably answered that question
[58:50.560 --> 58:55.200]  right a little differently i think that there are other big risks on the horizon
[58:55.200 --> 59:00.160]  and maybe they will get explored today from the senate side but in particular you saw
[59:00.160 --> 59:06.000]  chairman powell dodging around a little bit on some on on questions of climate change and financial
[59:06.000 --> 59:11.520]  stability and other you know and other kind of uh risk factors so many things to consider
[59:11.520 --> 59:15.280]  sarah bloom raskin thank you so much for being here with us this morning we'll speak to you
[59:15.280 --> 59:22.240]  again very soon that's it for world wide exchange this morning squawk box begins right now good
[59:22.240 --> 59:28.000]  morning the nasdaq and s&p pushing the new highs but companies are now warning of supply disruptions
[59:28.000 --> 59:34.960]  related to the coronavirus outbreak feeling the burn in new hampshire senator sanders edging out
[59:34.960 --> 59:39.440]  pete budige we're going to take you live to the granite state for the results and implications
[59:39.440 --> 59:45.760]  for investors and shares of bed bath and beyond are plummeting the ceo is describing it as short
[59:45.760 --> 59:51.840]  term pain we've got details on all of this straight ahead it's wednesday february 12 2020
[59:51.840 --> 01:00:09.920]  the squawk box begins right now good morning everybody welcome to squawk box here on cnbc
[01:00:09.920 --> 01:00:14.240]  we're live from the nasdaq market site in times square i'm becky quick along with joe kernan and
[01:00:14.240 --> 01:00:18.640]  andrew ross sorkin let's take a look at the u.s equity futures at this hour you'll see right now
[01:00:18.640 --> 01:00:23.040]  that the futures are indicated higher in fact the dow indicated up by triple digits a gain of about
[01:00:23.040 --> 01:00:30.640]  125 nasdaq up by 51 and the s&p up by 13 and this comes after the s&p 500 and the nasdaq both set
[01:00:30.640 --> 01:00:34.560]  new records once again yesterday during the trading session all three of the major averages
[01:00:34.560 --> 01:00:49.360]  were higher the dow gave back most of those gains ended the day flat but again you're