Detecting language using up to the first 30 seconds. Use `--language` to specify the language
Detected language: English
[00:00.000 --> 00:30.000]  nbc.com slash invest in you next on squat box reaction to quarterly numbers from Lyft what challenges and changes to the road map could steer investors to the ride share company squat box today 6 a.m. Eastern watch or listen live on the CNBC app it's 5 a.m. at CNBC global headquarters here is your five at five investors bracing for a higher open as Fed Chairman Jay Powell heads back to Capitol Hill what President Trump had to say about
[00:30.000 --> 01:00.000]  today's testimony that's coming up and Boeing raising the red flag over a potential impact from the coronavirus outbreak Lyft shares sinking this morning why some investors say its CEO needs to get his priorities in order we speak with an early investor in the company and a new meeting for MAGA what President Trump has to say about Silicon Valley's tech titans and a slim win in New Hampshire as Bernie Sanders claims victory in the grand estate yet again it's Wednesday February 12th 2020
[01:00.000 --> 01:29.760]  and robot exchange begins right now. Good morning and welcome I'm Courtney Reagan and this morning for Brian Sullivan your chart of the day kind of an ugly one shares of bed bath and beyond sinking look at this more than 20% here the company announcing preliminary guidance for its fourth quarter coming in well below expectations much more on that
[01:29.760 --> 01:44.160]  missed a moment we're gonna give you a look at how futures are looking on this Wednesday morning stocks do look to open in record territory here this morning with the Dow Jones Industrial Average indicated higher by more than 106 points the S&P 500 higher by almost 12 and the
[01:44.160 --> 02:14.000]  Nasdaq tacking on an extra 47 points in the early going let's get a check in the fixed income market take a look at the yield on bonds and look at the 10 year which we're seeing tick higher again here today at one point six to zero after we'd seen that yield fall for several sessions in a row as perhaps flashing some warning signs that the equity market wasn't quite seeing let's go worldwide now and take a look at the green arrows really around the world in Asia Japan China you name it
[02:14.000 --> 02:44.000]  pretty much higher across the board Hang Seng higher by nine-tenths of a percent the Shanghai Composite higher by about the same in the Japanese Nikkei adding on three-quarters of a point and let's take a look at Europe in the early going also some green arrows across the world around the world in Europe the German Zetradax higher by six-tenths of a percent let's do 100 higher just marginally but two-tenths of a percent that counts as green and France higher by three-tenths of a percent investors are waking up to a low
[02:44.000 --> 03:14.000]  a lot to chew on this morning frankly Federal Reserve Chairman Jay Powell under renewed pressure from President Trump he heads back to the hill today among his concerns the coronavirus which he says the central bank is actively monitoring as companies like Boeing and caring like new concerns over the outbreak earning season remains at the forefront as well names like Cisco Walmart and dear those are still on deck and a far left win in New Hampshire last night for Bernie Sanders shaking up the
[03:14.000 --> 03:44.000]  Democratic presidential field joining me now clear comics founder and head of research James Liu we got an awful lot to tackle tackle here James let's start with Chairman Powell what do you expect from him today when he heads back to Capitol Hill sort of more of what he said yesterday reiterated with the same or different words are a different message here today good morning Courtney we think it's pretty much gonna be the same message I mean the message from the Fed is that the economy is in good shape there are these big uncertainties in the world as there always are last year it was trade this
[03:44.000 --> 04:14.000]  year it's the coronavirus these uncertainties are very hard to measure but you know you look at last week's jobs report very solid and the underlying trend is still good so there's not much more that the Fed can do at the moment other than staying put you also look at the market reaction and where Fed fund futures are and while the market has cheered what the Fed has done over the last year you also are seeing now the expectation that there will be some sort of rate cut maybe by the middle of the year and certainly at least one rate cut by the end of the year from the
[04:14.000 --> 04:44.000]  market so that's something that's evolving over time and that's changed as uncertainties like coronavirus have taken shape does that feel appropriate to you to be talking about rate cuts again I know that may be what the market is expecting but is that what the economic data tells you might be appropriate so not from our perspective so we think that we're in a position where a wait and see approach probably is appropriate but of course you know the market over the last 10 years has been trained to expect this Fed put and I think from an economic perspective you know obviously there's a human toll and human tragedy for around coronavirus that we
[04:44.000 --> 05:14.000]  can overlook but economically speaking coronavirus couldn't happen at a worse time and that's because we had all this trade uncertainty affecting trade between US and China and the global economic picture last year and now this year that that issue especially the spread of coronavirus around the world could in fact have a toll on economic growth as well so you know from a timing perspective it's not great but these are big uncertainties they're very hard to measure and so the Fed should probably stay put now the irony of course is that the markets are at all-time highs and are basically
[05:14.000 --> 05:44.000]  trying to look through that right at the moment absolutely that is something that is so interesting and has a lot of us scratching our heads I think the bond market was flashing maybe some warning signs that the equity market wasn't quite but but to your point it does seem as if we're looking through and chairman Powell did use the word resilient I believe yesterday when he was talking about the US economy's ability to sort of absorb some of these bigger global problems does that do you still feel like we are resilient when it comes to the US economy even after all these years of growth and economy
[05:44.000 --> 06:14.000]  culminate of policy we do think that's the case so the US of course has been the main engine of the last decade for global growth now the challenge is that if many investors expect a big resurgence in both global growth and also market performance not just based on last year but also where valuations are then we will have to see other economies start to pick up slack and so you think back to a year like 2017 when it wasn't just in US doing well we had you know people talking about global coordinated growth global synchronized growth and that was a year
[06:14.000 --> 06:44.000]  when not just US markets perform well but emerging markets and developed markets also so I think that's the type of situation situation we would have to see of course you know the coronavirus does potentially dent that a little bit but the reality is it's very hard to measure that effect that's you know you think about stars and really those are backward looking academic studies you can't just count up the number of you know items that weren't produced because of disease it's also the deals that weren't done it's the economic activity that could have happened that didn't happen that's incredibly hard to measure
[06:44.000 --> 07:14.000]  ultimately speaking you know you need this global growth to come back in order to justify what a lot of investors see in the market right now all that makes a lot of sense James thanks for being here with us come back to World Wide Exchange and keep us updated when we have better estimates maybe even if it isn't two years well Senator Bernie Sanders is celebrating his first clear albeit slim win yesterday in yesterday's New Hampshire primary the victory marks the second strong showing for Sanders as he and the remaining 2020 Democrats now shift their focus to Nevada and
[07:14.000 --> 07:44.000]  South Carolina nbc's Alice Barr joins us again this morning good morning Alice good morning Courtney and turnout was high here in New Hampshire higher than back in 2016 that's of course good news for Democrats as they're trying to engage voters we're also seeing the top tier of candidates shifting as they head into the next round of voting thank you Senator Bernie Sanders riding high this morning off of first place finish in the first in the nation primary this
[07:44.000 --> 08:14.000]  victory here is the beginning of the end for Donald Trump former mayor Pete Buttigieg coming in a close second roughly 4,000 votes behind thanks to you a campaign that some said shouldn't be here at all has shown that we are here to stay and Senator Amy Klobuchar placing third delivering on momentum from a strong debate performance and rocketing into the
[08:14.000 --> 08:44.000]  top tier we have beaten the odds every step of the way Senator Elizabeth Warren looking for a path forward after a disappointing fourth place finish our campaign is built for the long haul while former vice president Joe Biden landed in fifth having already left New Hampshire before results came in he spoke last night from South Carolina where he's counting on a rebound from a more diverse electorate ninety nine point
[08:44.000 --> 09:14.000]  nine percent that's the percentage of African-American voters who have not yet had a chance to vote in America the field is narrowing businessman Andrew Yang and Senator Michael Bennett both announcing they are dropping out as winners and losers emerge from New Hampshire sharpening the picture of the race to November at this point coming out of the first two contests Pete Buttigieg still has a slight lead in the delegate count which will
[09:14.000 --> 09:44.000]  ultimately decide the nominee though of course there is still a long way to go until that decision Courtney absolutely we've got a long road ahead Alice thanks for being here with us this morning when we come back forget travel retail and tech yet another industry sounding the alarm over the coronavirus outbreak bracing for a possible supply chain shock a mixed morning has soft bank shares surging to a seven month high check out that higher by twelve percent find out why next and later former federal
[09:44.000 --> 10:14.000]  reserve board governor sarah bloom raskin is here her take on Powell's day one testimony and what we can expect from day two a very busy hour still had one world exchange returns your eyes a little high you feel that fire you've been missing can I find an investment firm that has a truly long term view it begins by being privately owned with more than eighty five years of experience over multiple market cycles with portfolio managers who are encouraged to do what's right
[10:14.000 --> 10:44.000]  over what's popular focused on helping me achieve my investors unique goals can I find an investment firm that gets long term the way I do with capital group I can talk to your advisor or consultant for investment risks and information I'm fifty two but in my mind I'm still twenty five that's why I take osteobiflex to keep me moving the way I was made to it nourishes and strengthens my joints for the long term osteobiflex now in triple strength plus magnesium
[10:44.000 --> 11:14.000]  I love the new my W.W. program because it's tailored to you take the personal assessment and get matched with a proven weight loss plan find out which customized plan can make losing weight easier for you my W.W. join for free and get three months free next on squat box the action to quarterly numbers from lift what challenges and changes to the road map could steer investors to the ride share company squat box today six a.m. eastern watch or listen live on the CNBC app
[11:14.000 --> 11:44.000]  Microsoft Amazon alphabet igniting tech Goldman Sachs lead internet analyst examines what could push the sector even higher squawk alley eleven a.m. eastern today watch or listen live on the CNBC app if you've ever considered getting a walk in tub we have great news introducing the all new shower package now for a limited time when you purchase a safe step walk in tub will upgrade your order to include our newest and best feature yet
[11:44.000 --> 12:14.000]  a free shower package that's an eight hundred dollar value free with our new exclusive shower package you can now conveniently shower in your new walk in tub the luxurious rainfall shower head is adjustable for your height all the way up to seven feet now you can finally enjoy the best of both worlds with the therapeutic benefits of a warm soothing bath that can help increase mobility relieve pain boost energy and improve sleep or if you prefer you can take a safe refresh
[12:14.000 --> 12:44.000]  in shower all in one amazing product call today for your free shower package with your purchase of a new safe step walk in tub call one eight hundred eight eight two two eight five eight for our free exclusive new shower package. Welcome back let's get to check on the latest news surrounding the coronavirus outbreak Rahel Solomon is here Rahel how's it looking today hi Courtney so China is now reporting the lowest number of new coronavirus cases in the Hubei province since the end of January that of course
[12:44.000 --> 13:14.000]  is the epicenter of the outbreak so officials say that one thousand sixty eight new cases are confirmed that's down from a peak of more than three thousand on February 4th however there have also been ninety four new deaths reported in the region drug makers are also bracing for potential supply disruptions from China the CEO of one of India's largest pharmaceutical companies is warning supplies would start running out by the end of this month unless China restarts production China makes compounds that are used in antibiotics pain
[13:14.000 --> 13:44.000]  killers and also diabetes drugs and that chairman Jay Powell commenting on the impact of the coronavirus could have an impact on the global economy testifying before Congress yesterday Powell said that the U.S. economy appears to be resilient as we just heard Courtney say to global headwinds but the Fed is also closely monitoring the situation we know there will be effects on China through through some part of the first half of the year and China's close neighbors and
[13:44.000 --> 14:14.000]  major trading partners in Europe as well as Asia and we know that there will be some very likely be some effects on the United States I think it's just too early to say also shares of Gucci's parent company caring are hired today after reporting strong fourth quarter results but the company also says that it has seen a serious drop in customer traffic in China caring says that it's shifting some inventory to other countries shares of Foxconn rising more than three percent today this is on reports that it aims to resume half of its production in China by the end of
[14:14.000 --> 14:44.000]  the month Reuters says that Foxconn is also shooting to be at 80 percent of capacity by sometime in March you can see shares are up about three percent in pre-market and Boeing is warning that the virus will hit the airline industry's profit this year speaking to reporters at the Singapore Air Show a senior executive says that's due to travel restrictions and a 70 percent drop in capacity by Chinese airlines and Courtney you and I talked about this on rapid fire yesterday of course if flights aren't going into China of course that hurts the airlines but also a lot of the companies that do really
[14:44.000 --> 15:14.000]  well in those airports absolutely I know the ripple effects I think are really hard to measure and I have to actually give some of these companies credit for trying to measure and even giving us some of these numbers 70 percent 80 percent whether they're talking about a revenue hit and manage expectations yeah and I think it's just going to be hard to really know and as James Lewa our last guest was saying we may not know for several years down the road with the collective impact right it's often pretty backward looking but we got to try to figure it out now it's basically hell sure okay well don't forget to watch it see
[15:14.000 --> 15:44.000]  special coverage of the outbreak this breaks down the fast-moving developments and the market impact that's tonight at 7 p.m. Eastern Time we'll still on deck why investors may want to stay away from that beyond section this morning today's big number 14 trillion dollars that's the total household debt in the US it grew over 600 billion dollars in 2019 making it
[15:44.000 --> 15:48.400]  the biggest annual increase in 12 years
[16:14.000 --> 16:44.000]  data dog has become the modern monitoring and analytics platform in the cloud age when we started that a dog nine years ago our mission was to break on titles and bring teams together nearly 9,000 of the world's most innovative companies rely on our platform daily to run their business and their like their own customers we see a massive opportunity in the years to come and as we celebrate to this milestone we are even more excited about the future
[16:44.000 --> 17:13.920]  congratulations dated on every morning bright and early 17,000 Edward Jones financial advisors come to work with one goal in mind to treat their individual investors like individuals to know what's important to them to be their champion that's
[17:13.920 --> 17:43.920]  get started Edward Jones it's time for investing to feel individual whether you've enjoyed the legendary terrain until you ride the unparalleled landscape of Park City or the famed peaks of Whistler you face the hassle of lugging your gear through the airport with ship skis you're just a few clicks away your skis snowboard and luggage ship from your doorstep to your destination with unrivaled pricing real-time tracking ship skis delivers hassle-free ship ahead and go catch those first
[17:43.920 --> 17:50.320]  tracks on fresh snow ship skis your skis delivered
[18:13.920 --> 18:43.920]  let's get a check on some of the stocks on the move today soft banks third quarter profit was nearly wiped out by losses of its $100 billion vision at its $100 billion 100 billion dollar vision fund I should say the fund posting and operating loss of more than $2 billion CEO Moshe son defending soft banks performance saying the vision fund has gained about 3 billion
[18:43.920 --> 19:13.920]  dollars on its investments since the beginning of the year now this report did come after the close of Japanese trading something of sprint merger with T. U. mobile a lot going on there for soft bank now western union is reporting fourth quarter earnings and revenue that missed forecast the company says the stronger dollar negatively impacted revenue you can see shares down more than 6 percent and shares of bed bath and beyond a few plunging by more than 20 percent actually down more than 25 percent after the retailer said
[19:13.920 --> 19:43.920]  fourth quarter sales were hit by increased promotions falling traffic and inventory issues same store sales in December and January those dropped more than 5 percent or and that was more than expected the CEO says the company is experiencing quote short-term pain and efforts to stabilize the business that CEO is still sort of getting his feet under him trying to figure out what that business is all about and frankly how to fix it well as we had to break president Trump giving his MAGA slogan new meaning yesterday
[19:43.920 --> 20:13.920]  and we have four trillion dollar companies one is Microsoft one is Apple one is Google one is Amazon so you have Amazon Google Apple and Microsoft and so you have an M you have an A you have a G and you have an A you have MAGA the comments coming just hours after the FTC expanded its antitrust investigation into big tech over past acquisitions that may have hurt competition consumers and evaded regulatory scrutiny we're back after this
[20:13.920 --> 20:43.920]  music no one likes to feel stuck boxed in or held back especially by something like your cloud it's a problem but the IBM cloud is different it's the most open and secure public cloud for business it can manage all your apps and data anywhere so it can help take on anything from rebooking flights on the fly to restocking shelves on demand
[20:43.920 --> 20:48.480]  without getting in your way
[20:48.480 --> 20:52.280]  do you have concerns about mild memory loss related to aging
[20:52.280 --> 20:56.880]  Prevagen is the number one pharmacist recommended memory support brand
[20:56.880 --> 21:00.120]  you can find it in the vitamin aisle in stores everywhere
[21:00.120 --> 21:04.440]  Prevagen healthier brain better life make fitness routine
[21:04.440 --> 21:08.400]  with pure protein high protein low sugar taste great
[21:08.400 --> 21:12.120]  high protein low sugar so good high protein
[21:12.120 --> 21:15.400]  low sugar birthday cake and try
[21:15.400 --> 21:18.240]  pure protein delicious protein shakes
[21:18.240 --> 21:24.680]  Trump's tariffs brought the Chinese to the table for a phase one trade deal that opened the door for US companies that want to compete fairly over there
[21:24.680 --> 21:28.080]  if you read the 100 page agreement you'll see many opportunities for businesses
[21:28.080 --> 21:32.200]  that could help balance our trade deficit watch or listen live on the CNBC app
[21:32.200 --> 21:36.080]  wondering which credit card is right for you
[21:36.080 --> 21:39.320]  introducing CNBC Select the authority on
[21:39.320 --> 21:42.880]  all things credit cards we do the research you read the rewards
[21:42.880 --> 21:46.280]  head on over to CNBC.com forward slash select
[21:46.280 --> 21:48.480]  and take control of your money
[21:48.480 --> 21:51.800]  which of your devices are protected by daily security updates
[21:51.800 --> 21:55.280]  daily security updates daily I don't know
[21:55.280 --> 21:59.200]  the only thing I'm struggling with this some providers you have to manually
[21:59.200 --> 22:01.320]  download updates to each device
[22:01.320 --> 22:05.040]  Comcast business security edge updates every 10 minutes to help keep your
[22:05.040 --> 22:09.160]  connected devices protected against new ransomware malware and phishing threats
[22:09.160 --> 22:12.600]  every 10 minutes feels pretty good Comcast business security edge
[22:12.600 --> 22:16.040]  automatically helps protect all the devices on your network call today
[22:16.040 --> 22:21.120]  Comcast business beyond fast. Introducing a new kind of home insurance
[22:21.120 --> 22:27.080]  insurance that covers the breakdown of appliances and electronics
[22:27.080 --> 22:33.040]  that includes coverage for water and sewer backups
[22:33.040 --> 22:40.040]  that provides four times the coverage on computers and home office
[22:40.040 --> 22:47.040]  and covers the service line connections between your house and the street
[22:56.920 --> 23:00.880]  let's get a check on this morning's other headlines NBC's Philip Bennett is in
[23:00.880 --> 23:04.360]  New York with the latest good morning Philip. Hey Courtney good morning in just
[23:04.360 --> 23:07.840]  a moment we will tell you why that song was playing. A stunning turn of events in
[23:07.840 --> 23:11.640]  the Roger Stone case. Attorney General William Barr and his top aides at the
[23:11.640 --> 23:15.920]  Justice Department intervened reversing a stiff sentencing recommendation that
[23:15.920 --> 23:19.720]  federal prosecutors had filed. The decision coming after a tweet from the
[23:19.720 --> 23:24.040]  president called the seven to nine year recommendation quote a miscarriage of
[23:24.040 --> 23:28.520]  justice. All four prosecutors in the case have now dropped out in protest of
[23:28.520 --> 23:32.480]  the move and one is leaving the Justice Department altogether. Actor Jesse
[23:32.480 --> 23:36.760]  Smollett is facing new charges this morning. The Empire star faces a new six
[23:36.760 --> 23:41.440]  count indictment charging he filed four separate false reports to Chicago police
[23:41.440 --> 23:46.000]  when he claimed last January the two masked gunmen attacked him insulted him
[23:46.000 --> 23:50.760]  with homophobic and racist slurs and then looped a noose around his neck. The
[23:50.760 --> 23:54.200]  special prosecutor says a new investigation was launched after similar
[23:54.200 --> 23:58.220]  charges were abruptly dropped last year. Attorneys for some for Smollett have
[23:58.220 --> 24:03.120]  not yet responded and it looks like the rhinestone cowboy is treading in his
[24:03.120 --> 24:09.400]  horse for a Toyota. This man from Crimea covered his car in those tiny gems 400
[24:09.400 --> 24:14.280]  thousand to be exact. Took him six months to complete a sparkly project but
[24:14.280 --> 24:18.520]  he says it was a labor of love and he now plans to sell that car. He says that
[24:18.520 --> 24:22.240]  it would be a great prop for photo shoots although Courtney I have no idea
[24:22.240 --> 24:29.280]  how he'd watch that. So Instagram worthy though I like it sparkly I mean imagine
[24:29.280 --> 24:33.720]  all the photos you could take with that car. Thank you totally bedazzled. Thank
[24:33.720 --> 24:38.800]  you Philip. Well still to come why some say Lyft needs to get its priorities in
[24:38.800 --> 24:43.800]  order as that stock falls more than 4% this morning. Plus the Carlos Ghosn saga
[24:43.800 --> 24:49.280]  far from over as Nissan takes a new swipe at its ousted former chairman and
[24:49.280 --> 24:54.040]  a programming note. Don't miss a CNBC exclusive a CVS health CEO Larry Merlo
[24:54.040 --> 24:58.400]  on closing bell today as that company prepares to release results just after
[24:58.400 --> 25:03.240]  7 a.m. Eastern Time. Worldwide Exchange is back after this.
[25:06.800 --> 25:11.480]  Rising energy costs are frustrating. Electricity rates continue to increase
[25:11.480 --> 25:16.240]  and there's no relief in sight. It's also smart to prepare for power outages that
[25:16.240 --> 25:20.000]  can leave you in the dark. You need a solution that will help you save money
[25:20.000 --> 25:24.880]  prepare for power outages and help the environment. Introducing the Generac
[25:24.880 --> 25:29.800]  PowerCell a battery storage system that harnesses the power from the Sun to help
[25:29.800 --> 25:33.480]  reduce your electric bill and provide backup power during utility power
[25:33.480 --> 25:37.680]  outages. With the battery storage solution we're saving about $450 a month.
[25:37.680 --> 25:42.240]  PowerCell's revolutionary technology captures and stores electricity either
[25:42.240 --> 25:46.480]  from solar panels or the electrical grid. It allows you to use stored energy
[25:46.480 --> 25:50.480]  during peak demand times when electricity costs are high which helps
[25:50.480 --> 25:54.760]  reduce your electric bill saving you money and when a power outage occurs
[25:54.760 --> 25:59.800]  PowerCell is ready to supply backup power to your home. PowerCell's modular
[25:59.800 --> 26:04.600]  design allows for easy customization for any home or budget and PowerCell is
[26:04.600 --> 26:08.840]  back with a 10-year limited warranty. It was a simple installation very neatly
[26:08.840 --> 26:12.680]  installed. It was done very quickly and efficiently. Since installing our power
[26:12.680 --> 26:17.000]  system we've been experiencing a savings of $1,500 a year. Generac has been a
[26:17.000 --> 26:22.240]  trusted provider of backup power solutions since 1959 and provides 24-7
[26:22.240 --> 26:26.040]  customer support. The battery storage solution in combination with the solar
[26:26.040 --> 26:29.520]  has been one of the best investments we've ever made. Special financing is
[26:29.520 --> 26:33.400]  available with low monthly payment options. You will likely qualify for tax
[26:33.400 --> 26:37.880]  credits and energy rebates which could save you up to 30%. Adding to the savings
[26:37.880 --> 26:42.160]  you'll enjoy over time with PowerCell. Call now to schedule a free in-home
[26:42.160 --> 26:45.600]  assessment. The call is free, the assessment is free and there's no
[26:45.600 --> 26:50.120]  obligation to buy. Act now to receive PowerView. Generac's home energy
[26:50.120 --> 26:54.640]  monitoring system a $300 value. With PowerView, easily keep tabs on your
[26:54.640 --> 26:59.480]  energy consumption, monitor your battery usage and track your savings. Don't wait.
[26:59.480 --> 27:19.920]  Call or go online now. PowerCell, savings powered by the Sun.
[27:19.920 --> 27:26.040]  Don't just plan to retire, plan to live and annuity helps cover your essential
[27:26.040 --> 27:31.040]  monthly expenses so you're free to live the life you want. Find out how an
[27:31.040 --> 27:39.880]  annuity can give you lifetime income at protectedincome.org. Stocks look poised
[27:39.880 --> 27:44.160]  to build on record highs as investors prep themselves for round two of Jay
[27:44.160 --> 27:48.880]  Powell on the Hill. Futures are higher. Bernie Sanders on top of the 2020
[27:48.880 --> 27:52.400]  Democratic field following the win in New Hampshire. What his rise could mean
[27:52.400 --> 27:56.800]  for your money. And speaking of winners, the Westminster Dog Show crowns its
[27:56.800 --> 28:01.160]  champion, the pup that took best in show as the second half of World Wide
[28:01.160 --> 28:04.200]  Exchange starts now.
[28:11.600 --> 28:15.320]  Welcome back to World Wide Exchange. I'm Courtney Reagan and this morning for
[28:15.320 --> 28:19.240]  Brian Sullivan. Here's our stock futures are looking halfway through the 5 a.m.
[28:19.240 --> 28:22.920]  hour. We gave you a sneak peek. We said they were higher in the Dow Jones
[28:22.920 --> 28:26.760]  industrial averages indicating a higher open to the tune of 106 points. The S
[28:26.760 --> 28:31.640]  and P 500 higher by 12 and then as I said to add about 46 points. Another
[28:31.640 --> 28:35.640]  busy day, though, of course ahead with Fed Chairman's testimony again on the
[28:35.640 --> 28:40.400]  hill. Corona virus earnings and the New Hampshire primary results. All of that
[28:40.400 --> 28:43.840]  on investors radars. Let's take a look at the bond market. The yield on the
[28:43.840 --> 28:49.600]  10 years sitting at 1.614% taking slightly higher from the yield yesterday.
[28:49.620 --> 28:53.480]  Let's get a check on the Asian markets. We saw green arrows mostly around the
[28:53.480 --> 28:57.480]  world. And as you can see across the board in Asia with Shanghai Hang Seng
[28:57.480 --> 29:03.080]  and the Japanese Nikkei all higher just under 1% though European markets also
[29:03.080 --> 29:06.740]  indicating or actually should say they are open right there a couple hours
[29:06.740 --> 29:09.920]  ahead of us. So they're higher. We've got the Germans. Etrodex higher by
[29:09.920 --> 29:14.120]  six tenths of a percent. FTSE 100 higher by three tenths of a percent and France
[29:14.120 --> 29:17.480]  is higher by three tenths of a percent as well. Let's get a look at some of the
[29:17.480 --> 29:21.000]  other top stories that we're following this morning. For Hell, Solomon is here.
[29:21.000 --> 29:25.200]  Hi, Real. Hi Courtney. So the saga between Nissan and Carlos Ghosn continues.
[29:25.200 --> 29:28.480]  So Nissan has filed a civil lawsuit in Japan against its former chairman,
[29:28.480 --> 29:33.120]  Carlos Ghosn. The automaker is seeking an initial amount of $90 million in
[29:33.120 --> 29:37.720]  the suit. The company says it's looking to recover monetary damages inflicted by
[29:37.720 --> 29:42.320]  Ghosn as a result of, quote, years of misconduct and fraudulent activity.
[29:42.680 --> 29:46.200]  Google kicks off a landmark legal case in Europe today. During the three day
[29:46.200 --> 29:50.240]  hearing at Europe's second highest court, the company will seek to overturn
[29:50.240 --> 29:55.960]  three European Union antitrust fines that total roughly $9 billion. Decision
[29:55.960 --> 30:00.400]  is not expected until next year. And the Federal Aviation Administration is
[30:00.400 --> 30:04.720]  admitting that it has not effectively overseen systems for managing safety
[30:04.720 --> 30:08.560]  risks that Southwest Airlines. So this follows a new report from the U. S.
[30:08.560 --> 30:12.960]  Department of Transportation's Office of Inspector General that blasted the F.
[30:12.960 --> 30:18.000]  A. A. The agency says that local F. A. A. Manager is responsible for monitoring
[30:18.000 --> 30:22.120]  Southwest failed to ensure that the carrier complied with mandatory
[30:22.120 --> 30:26.000]  maintenance standards while incorporating 88 used jets into its
[30:26.000 --> 30:29.560]  fleet. Sheriff's of Southwest are lower this morning as we can see down about
[30:29.560 --> 30:34.400]  1.2% in pre market Courtney for hell. Thank you very much. We're gonna see
[30:34.400 --> 30:38.240]  you back a little later. Well, the 2020 Democrats are turning their attention to
[30:38.240 --> 30:41.960]  Nevada and South Carolina after Senator Bernie Sanders victory and the New
[30:41.960 --> 30:46.120]  Hampshire primary Sanders win puts him near the top of the party's fractured
[30:46.120 --> 30:50.800]  presidential field, which is now smaller after yesterday's contest. CNBC's
[30:50.800 --> 30:54.960]  Kayla Toshi joins us now. Kayla, can you break down sort of where things stack
[30:54.960 --> 30:59.480]  up after the primary? It hasn't been so clear to all of us all along the way.
[30:59.480 --> 31:06.040]  Who's really the leader? Well, Sanders is victorious in New Hampshire after a
[31:06.040 --> 31:11.760]  clear victory last night after a chaotic run in Iowa just a week ago.
[31:11.760 --> 31:18.240]  Courtney with 25.9% of the votes, Sanders can claim victory here, although
[31:18.240 --> 31:22.560]  notably his support in the state has been significantly eroded by the
[31:22.560 --> 31:26.200]  entrance of South Bend Mayor Pete Buttigieg and Minnesota Senator Amy
[31:26.200 --> 31:30.600]  Klobuchar, who essentially split the support that Sanders received here in
[31:30.600 --> 31:36.720]  the state in the 2016 cycles. Peter Pete Buttigieg with 24.4% and Klobuchar
[31:36.720 --> 31:41.120]  with just shy of 20% after being largely written off just a week ago
[31:41.120 --> 31:44.440]  because of a lower tier trying to figure out whether she can sustain this
[31:44.440 --> 31:50.760]  momentum and how. Here's the senator in New Hampshire last night and tonight in
[31:50.760 --> 31:57.640]  New Hampshire, as everyone had counted us out even a week ago. Thank you,
[31:57.640 --> 32:03.280]  pundits. I came back and we delivered
[32:06.760 --> 32:10.760]  because of the fractured field. Perhaps many were surprised at the low finish
[32:10.780 --> 32:14.400]  of Senator Elizabeth Warren and former Vice President Joe Biden, who, with
[32:14.400 --> 32:19.160]  lower than 15% of support here in New Hampshire, did not cross the threshold
[32:19.160 --> 32:24.160]  to get any delegates. Biden has already left New Hampshire to start
[32:24.160 --> 32:28.880]  campaigning in South Carolina, which is the next presidential state contest. On
[32:28.880 --> 32:34.160]  February 22nd, he acknowledged that he has not been performing well in the
[32:34.160 --> 32:39.560]  race, but is and Latinos to hopefully improve his numbers. And finally,
[32:39.560 --> 32:42.480]  because of the performance in New Hampshire, we are seeing some
[32:42.480 --> 32:48.040]  presidential campaigns suspended both Andrew Yang and Senator Michael Bennett
[32:48.040 --> 32:51.920]  saying last night that it would be the end of the road for their campaigns. So
[32:51.920 --> 32:56.400]  we are seeing the race narrow slightly Courtney, but we still have more than a
[32:56.400 --> 33:00.240]  handful in the running. Yeah, Kayla. And yesterday I know you were telling us
[33:00.240 --> 33:04.480]  that at least that sort of ceremonial first votes, they went to Mayor
[33:04.480 --> 33:08.600]  Bloomberg, but I didn't hear you sort of mention how it all shook out for him. I
[33:08.600 --> 33:10.280]  guess that was all he got.
[33:10.280 --> 33:17.720]  Uh, yeah, and certainly that was more of, um, you know, and and novelty vote
[33:17.720 --> 33:22.400]  Dixville, not just casting a handful of votes. Certainly he has been spending
[33:22.400 --> 33:26.800]  ad money here in the state. He has been gaining traction in national polls, but
[33:26.800 --> 33:31.440]  Courtney, he hasn't really been spending any time in the state. He may in the
[33:31.440 --> 33:35.920]  future. There are some reports that he is increasing his staff here in New
[33:35.920 --> 33:41.000]  Hampshire and opening an office here, but he has not really been campaigning
[33:41.000 --> 33:46.240]  here at all. He will appear on his first debate stage of the cycle next week in
[33:46.240 --> 33:50.960]  Nevada. That is certainly something every campaign is preparing for. This
[33:50.960 --> 33:54.760]  is so interesting, Kayla. Thank you very much for bringing it to us this
[33:54.760 --> 33:58.120]  morning. This is going to continue to unfold in the weeks and the months
[33:58.120 --> 34:01.900]  ahead. For more on Senator Sanders victory and what it means for the
[34:01.900 --> 34:05.240]  election and your money. I'm joined by Jeff Mills. He's chief investment
[34:05.240 --> 34:09.960]  officer at Bryn Mawr Trust and Jimmy Pathakoukas, economic analyst at the
[34:09.960 --> 34:14.720]  American Enterprise Institute. Both of these gentlemen are CNBC contributors.
[34:14.720 --> 34:17.680]  Jimmy, I guess I'm going to start with you just to give us kind of the lay of
[34:17.680 --> 34:21.240]  the land and how you think everything shook up last night. So I understand
[34:21.240 --> 34:25.160]  Mr Sanders won, but by a relatively narrow margin. So what does this mean
[34:25.160 --> 34:29.240]  going forward? Biden's already moved on to South Carolina. What's happening
[34:29.240 --> 34:32.540]  here? Who's gonna be the Democratic front runner? Well, what happened was
[34:32.540 --> 34:36.600]  that we had a front runner who, as it turns out, is really bad at running for
[34:36.600 --> 34:39.880]  president. I don't think Joe Biden's ever done better than about a fourth
[34:39.880 --> 34:43.960]  place finish in a primary. He looks like he barely has a pulse and we have a
[34:43.960 --> 34:49.920]  very weak front runner in a very fractured field. And listen, if you were
[34:49.920 --> 34:54.140]  going to come up with a scenario where somebody who has unlimited money to
[34:54.140 --> 35:00.440]  spend can jump in, shake the whole thing up, maybe win, maybe create a
[35:00.440 --> 35:03.860]  brokered convention next summer, that's exactly what you're seeing. You
[35:03.860 --> 35:07.720]  mentioned Mike Bloomberg at the end. Um, I don't know what I don't know what
[35:07.720 --> 35:11.400]  his scenarios were that he ends up as a Democratic nominee, but they couldn't
[35:11.400 --> 35:15.320]  look much better than what's happening right now. And so, Jeff, now that we hear
[35:15.320 --> 35:18.440]  everything Jimmy has to say and he's talking about a fractured field, I guess
[35:18.440 --> 35:22.320]  it's a little hard for investors to sort of make some of their bets with
[35:22.320 --> 35:26.880]  their money. But if it is Bernie Sanders, I mean, you couldn't be further
[35:26.880 --> 35:30.120]  different from the situation we have right now in the White House as far as
[35:30.120 --> 35:35.240]  economic policy is concerned. Yeah, no, no question. But I think the market has
[35:35.240 --> 35:39.600]  it about right. You know, it continues to levitate even as Sanders has risen
[35:39.600 --> 35:43.840]  in the polls. But I think the bottom line is that no president has lost
[35:43.840 --> 35:47.840]  reelection when they've avoided a recession in the two years prior to that
[35:47.840 --> 35:52.400]  reelection bid. So, you know, in my estimation, you have a bottoming of
[35:52.400 --> 35:55.840]  global manufacturing. It looks like leading economic indicators are
[35:55.840 --> 36:00.080]  inflecting higher. If you look at earnings as an example, usually guidance
[36:00.080 --> 36:04.040]  for 2020 at this point in time would have been down by about one point four
[36:04.040 --> 36:08.760]  percent. Guidance is only down by about four percent so far. So fundamentally,
[36:08.760 --> 36:12.320]  things look good, which means we likely avoid a recession leading into
[36:12.320 --> 36:16.960]  reelection. So I think investors are looking toward another President Trump
[36:16.960 --> 36:21.000]  victory here. And usually when the incumbent wins, on average, the S&P 500
[36:21.000 --> 36:24.720]  is up about 10 percent. When the incumbent loses, usually up about three
[36:24.720 --> 36:28.080]  percent. So a big gap there. But if you're playing the odds, it looks like a
[36:28.080 --> 36:31.120]  reasonably good scenario for markets. And I think that's how investors are
[36:31.120 --> 36:35.640]  acting at the current time. You know, I mean, polls show that or suggest, you
[36:35.640 --> 36:39.800]  know, that Bernie Sanders can be President Trump. A lot of investors look
[36:39.800 --> 36:43.320]  at those betting markets. Those betting markets have Trump the favorite. And
[36:43.320 --> 36:47.560]  even if Trump should lose, you have a President Sanders, you know, we're not
[36:47.560 --> 36:50.480]  going to get a wealth tax probably unconstitutional. We're not going to
[36:50.480 --> 36:53.680]  suddenly, we're not going to, you know, outlaw all private insurance companies.
[36:53.680 --> 36:56.960]  So I think they're looking at it's an unlikely scenario. The Bernie Sanders
[36:56.960 --> 37:02.200]  wins. It's even more unlikely scenario that we go hashtag full socialism. And
[37:02.200 --> 37:05.960]  Jeff, as you follow along, you know, you said you gave us some stats there about
[37:05.960 --> 37:11.080]  what happens when incumbent presidents win and then if they lose, the S&P 500
[37:11.080 --> 37:17.920]  is up about 56 percent since Trump has been in office. I mean, but what would
[37:17.920 --> 37:21.800]  market say about sort of looking at this very fractured field? I guess I'm still
[37:21.800 --> 37:25.640]  just not convinced that the markets are going to behave the same way if the
[37:25.640 --> 37:30.320]  candidate is is Bernie Sanders versus if the Democratic candidate is, say, Mike
[37:30.320 --> 37:33.880]  Bloomberg. Yeah, look, I mean, Jim mentioned it, right? If you look at the
[37:33.880 --> 37:37.840]  national polling, I think Sanders is ahead of Trump by something like four
[37:37.840 --> 37:41.840]  percent. And that gap has actually widened a little bit. So I do think that
[37:42.000 --> 37:47.360]  even if it's just for a period of time, investors may need to react in a way
[37:47.360 --> 37:51.240]  that, you know, supposes that there could possibly be a Bernie Sanders
[37:51.240 --> 37:54.640]  president. So I think it could cause volatility in the near term. And
[37:54.800 --> 37:58.240]  honestly, I've been surprised that the catalyst the markets have been given
[37:58.240 --> 38:01.960]  thus far, whether it's coronavirus or Sanders surging in the polls, hasn't
[38:01.960 --> 38:05.480]  done more to shake the markets. I mean, if you look at what's going on right
[38:05.480 --> 38:10.600]  now, you've got the top 50 names in the S&P 500, some 13 percent above their
[38:10.600 --> 38:14.160]  long term moving average. If you look under the surface, there's some breath
[38:14.160 --> 38:18.320]  deterioration. So we had 80 percent of names above the 50 day moving average,
[38:18.320 --> 38:22.680]  now only 60. So I think in the near term, whether it's the coronavirus, whether
[38:22.680 --> 38:26.000]  it's something in short term prediction, I think if you look out ahead, it's
[38:26.000 --> 38:29.880]  just difficult to be too negative on a market where the liquidity backdrop is
[38:29.880 --> 38:33.200]  what it is via what central banks are doing. They continue to stand at the
[38:33.200 --> 38:37.160]  ready. And like I said, I think fundamentals on on balance are actually
[38:37.160 --> 38:38.320]  looking better, not worse.
[38:38.680 --> 38:42.800]  Jimmy, looking forward as these primary contests roll on, do you think we're
[38:42.800 --> 38:46.160]  going to continue to see such a fracture field or these campaigns going to start
[38:46.160 --> 38:50.320]  to pull together and voters start to sort of aggregate towards one candidate?
[38:50.320 --> 38:53.080]  Or is this just the way it's going to be until we get to, like you said, the
[38:53.080 --> 38:54.840]  possibility of a brokered convention?
[38:55.520 --> 38:59.320]  Yeah, listen, I think I think if you if there wasn't a Mike Bloomberg sort of
[38:59.320 --> 39:03.080]  looming out there, you'd say at some point, listen, Sanders has, you know,
[39:03.080 --> 39:06.680]  he's won the votes in these in the caucus and the primary.
[39:07.200 --> 39:09.560]  The next couple of states look much better than him.
[39:09.720 --> 39:13.800]  I mean, he kind of in a normal situation, he kind of should be the Democratic
[39:13.800 --> 39:17.920]  nominee. People don't believe it because of his age, because of the socialism tag
[39:18.080 --> 39:23.160]  and because we have this age bomb of money about to explode in this primary
[39:23.240 --> 39:26.640]  over the next few weeks. That's why I think this is still going to be a very
[39:26.640 --> 39:29.120]  topsy turvy field for quite a long time.
[39:29.760 --> 39:33.000]  Jeff Mills, Jimmy Pathakoukas, thank you both for joining us this morning.
[39:33.000 --> 39:35.800]  You know, we're going to keep talking to you for the months to come because we
[39:35.800 --> 39:37.840]  have a lot to figure out, it seems.
[39:38.640 --> 39:42.520]  Well, shares of Lyft tumbling despite the company posting results that beat
[39:42.520 --> 39:46.360]  analysts estimates. Fourth quarter revenue topping one billion dollars for
[39:46.360 --> 39:50.360]  the first time ever. Investors, though, paying closer attention to the stock
[39:50.360 --> 39:54.800]  following Uber's fourth quarter beat and updated profitability target shares
[39:54.800 --> 39:59.560]  of Lyft down four percent. CEO Logan Green didn't update Lyft's profitability
[39:59.560 --> 40:03.880]  timeline, but he did make it clear that it was among the key themes the company
[40:03.880 --> 40:05.280]  is focused on this year.
[40:06.800 --> 40:11.760]  We expect to deliver continued strong top line growth in 2020 while also making
[40:11.760 --> 40:13.480]  progress on our path to profitability.
[40:14.520 --> 40:18.000]  As we've discussed on prior calls, there are three key themes that we're focused
[40:18.000 --> 40:23.520]  on. First is product innovation, second is profitable growth and third is
[40:23.520 --> 40:24.480]  operating leverage.
[40:25.680 --> 40:30.040]  Joining me now, Santos Rao, he is head of research at Manhattan Venture Partners.
[40:30.040 --> 40:32.120]  His firm was an early investor in Lyft.
[40:32.360 --> 40:36.400]  OK, so you just heard Logan Green, profitability number two on his list.
[40:36.400 --> 40:37.640]  Should it be number one?
[40:37.640 --> 40:41.280]  Oh, well, good morning. Good morning. Thanks for having me again.
[40:42.120 --> 40:44.080]  I think it's no, they're on the right track.
[40:44.080 --> 40:46.560]  They're not in a rush. They don't want to pull in the timeline.
[40:46.560 --> 40:49.960]  They and that's one of the reasons why we invested right from the beginning.
[40:50.600 --> 40:54.880]  We feel it's a pure play with a focused strategy, very disciplined strategy.
[40:55.000 --> 40:57.840]  So I think that's what they're doing. They're executing to that strategy.
[40:58.000 --> 41:01.680]  They're not in a rush. Like he said, profitable growth until the second
[41:01.920 --> 41:04.400]  last quarter of 2021, they will be profitable.
[41:04.400 --> 41:08.680]  So I trust the numbers, I trust the CEO. So I think he's on the right track.
[41:09.080 --> 41:12.760]  And this quarter was a classic beat and raise fourth quarter right off the
[41:12.760 --> 41:15.200]  gate, doing great with big numbers.
[41:15.360 --> 41:18.880]  So I think this company is on the right track and our thesis is proving out
[41:18.880 --> 41:20.000]  that this is the way to go.
[41:20.000 --> 41:22.720]  So you were an early investor. Are you currently an investor in Lyft?
[41:22.760 --> 41:26.240]  No, we are not. I mean, we distribute the shares after the expiration.
[41:26.360 --> 41:28.800]  But we were early investors, like I said.
[41:28.800 --> 41:32.840]  OK, OK. And so you mentioned that Lyft is a pure play and you mean because
[41:32.840 --> 41:36.120]  they don't have a Lyft eats like an Uber eats.
[41:36.480 --> 41:40.000]  But some people point to that as actually a really good thing for Uber.
[41:40.000 --> 41:41.240]  You don't think Lyft needs that.
[41:41.240 --> 41:43.800]  No, they don't need that. I mean, Uber eats is it eats.
[41:43.800 --> 41:47.000]  Business is good, but it's competitive. That's the thing about Uber and Uber.
[41:47.000 --> 41:48.640]  It's a different game. It's a platform.
[41:48.640 --> 41:51.440]  It has a number of other businesses, not all profitable.
[41:51.640 --> 41:56.000]  We don't know when they'll be profitable, but it's it's a it's a broad platform.
[41:56.320 --> 42:00.080]  But I think the way to go is the right sharing business in North America,
[42:00.080 --> 42:01.720]  which has the best unit economics.
[42:01.720 --> 42:05.960]  So this is the right focus very well with the optionality later on
[42:05.960 --> 42:07.360]  of going into other businesses.
[42:07.360 --> 42:11.200]  I would rather go that way than go this way because there is a lot more to do here.
[42:11.360 --> 42:14.960]  The market is big. There's a huge opportunity out there.
[42:14.960 --> 42:17.600]  It's still a lot more to go. Still early stages.
[42:17.680 --> 42:21.160]  So I think they need the resources and the attention to execute here.
[42:21.360 --> 42:24.960]  And then later on, see, try to go into other businesses if needed.
[42:25.120 --> 42:26.160]  But they don't need to.
[42:26.160 --> 42:29.880]  So really important part of North America is California, because it's a huge state.
[42:29.880 --> 42:33.600]  And we've got this gig worker law on the books that these right
[42:33.600 --> 42:36.760]  sharing companies and a number of others are just not thrilled with, frankly.
[42:36.880 --> 42:38.880]  I mean, how big of a threat is this?
[42:38.880 --> 42:41.840]  And will this continue to be an overhang for investors?
[42:42.040 --> 42:44.560]  Yeah, I think it's still playing out.
[42:44.560 --> 42:46.520]  Lyft is banking on a ballot initiative.
[42:46.520 --> 42:48.280]  They're confident that they can win.
[42:48.280 --> 42:49.520]  But let's see where that plays out.
[42:49.520 --> 42:51.880]  California is not the biggest part of the market.
[42:52.000 --> 42:54.640]  I mean, it's big, but it's not all the business.
[42:54.640 --> 42:56.600]  And there's a lot of other businesses around.
[42:56.600 --> 43:01.360]  So there'll be some hit, a small percentage of the total earnings, I guess.
[43:01.560 --> 43:04.280]  But overall, I think we'll see.
[43:04.960 --> 43:06.480]  I think the genie is out of the bag.
[43:06.480 --> 43:08.360]  No one, you cannot take this back.
[43:09.000 --> 43:11.040]  Right sharing is the way to go of the future.
[43:11.040 --> 43:12.040]  Everyone wants that.
[43:12.040 --> 43:13.880]  There's a groundswell of support from bottom up.
[43:14.000 --> 43:16.600]  So you'll see at somewhere in between, you will settle.
[43:16.720 --> 43:18.440]  There will be a compromise somewhere.
[43:18.560 --> 43:22.200]  But in the end, you need gig economy, you need right sharing.
[43:22.360 --> 43:23.280]  That's the way to go.
[43:23.280 --> 43:27.920]  Transportation of transportation as a service is a big part of the future.
[43:28.200 --> 43:29.280]  That's where we invested.
[43:29.280 --> 43:31.720]  That's how that's why we thought this was the right place to go.
[43:31.880 --> 43:33.520]  So a lot of moving parts, Antosh.
[43:33.520 --> 43:34.360]  Thanks for being here with us.
[43:34.360 --> 43:35.600]  Thank you. Thanks for having me.
[43:35.600 --> 43:39.440]  Absolutely. Well, coming up, Netflix making a rare move
[43:39.440 --> 43:42.560]  with the release of one highly anticipated sequel.
[43:42.560 --> 43:45.600]  Details on that and the other stories you're going to be talking about.
[43:45.600 --> 43:48.240]  That's ahead and coming up in a CNBC exclusive.
[43:48.240 --> 43:52.000]  Goldman Sachs CEO David Solomon joins Closing Bell as the bank's
[43:52.000 --> 43:56.160]  annual Internet and Technology Conference kicks off at the four p.m.
[43:56.160 --> 43:58.800]  Eastern Time Worldwide Exchange, though, back in just a moment.
[44:03.440 --> 44:05.720]  Racing has taken me all over the world.
[44:06.400 --> 44:09.800]  But when I put on the helmet, I am still in India.
[44:10.600 --> 44:12.840]  India, where I found yoga.
[44:13.120 --> 44:15.400]  Slow down. Breathe.
[44:15.400 --> 44:17.720]  I have breathed in India's magic.
[44:18.120 --> 44:20.720]  I have felt its warmth.
[44:20.720 --> 44:23.880]  Yoga has taught me the truth about life
[44:23.880 --> 44:27.760]  and motorcycles, that the more still you are,
[44:28.640 --> 44:29.880]  the further you can go.
[44:29.880 --> 44:48.200]  Incredible India, sometimes the pressures of today's world can make it tough to take care of yourself. But Nature's Bounty has innovative ways to help you maintain balance and help keep you active and well rested because, hey, tomorrow's coming up fast. Nature's Bounty, because you're better off healthy.
[44:59.880 --> 45:12.560]  Own clubs ahead with ShipSticks.com makes it fast and easy to get to your golf destination with just a few clicks or a phone call will pick up and deliver your clubs on time guaranteed for as low as thirty nine ninety nine.
[45:12.920 --> 45:15.400]  ShipSticks.com saves you time and money.
[45:15.880 --> 45:18.240]  Make it simple. Make it ShipSticks.
[45:18.600 --> 45:23.680]  When fingertips, knuckles and cuticles get cracked, you need relief that gets right to the point.
[45:24.040 --> 45:28.520]  Gold Bond cracked skin relief designed to precisely fill cracks instantly soothe.
[45:28.520 --> 45:30.760]  Ninety four percents on noticeable improvement.
[45:31.000 --> 45:32.680]  Gold Bond cracked skin relief.
[45:33.480 --> 45:36.120]  What gives me confidence about investment decisions?
[45:36.520 --> 45:52.040]  Rigorous fundamental research with portfolio managers focused on the long term, who look beyond the spreadsheets to understand companies from break room to boardroom, who know the only way to get a 360 view is to go around the world to get it.
[45:52.040 --> 45:57.960]  Can I rely on deep research to help make quality investment decisions with Capital Group?
[45:58.280 --> 46:02.920]  I can talk to your advisor or consultant for investment risks and information.
[46:03.240 --> 46:10.280]  Let's find out what else you're going to be talking about today.
[46:10.280 --> 46:13.640]  It is time for this morning's top stories or how Solomon is back.
[46:13.640 --> 46:14.360]  What do we got today?
[46:14.360 --> 46:23.800]  OK, so Twitter is in an uproar about this next one. The Westminster Dog Show wrapped up two days of competition last night and handed out its coveted Best in Show award.
[46:23.800 --> 46:27.560]  And the winner was this standard poodle named Seba. Cute, right?
[46:27.880 --> 46:32.080]  So Seba is the first standard poodle to win top dog of the show since 1991.
[46:32.440 --> 46:35.000]  Also the fifth to win in Westminster history.
[46:35.120 --> 46:38.000]  Seba, however, upset crowd favorite Daniel.
[46:38.360 --> 46:41.320]  Let's wait for this. This is a golden retriever who took home first.
[46:41.320 --> 46:44.760]  This is still Seba, of course, who took home first in the competition's sporting group.
[46:44.760 --> 46:47.560]  Well, let me tell you, Daniel, there's Daniel. Very cute.
[46:47.880 --> 46:51.640]  So here's the issue. Apparently, a golden retriever has never won.
[46:51.640 --> 46:54.600]  And so it was the underdog. No pun intended.
[46:54.600 --> 47:00.440]  And so folks really wanted Daniel to win. They also thought Daniel was a cuter, more doggy dog.
[47:00.440 --> 47:01.000]  Right, right, right.
[47:01.000 --> 47:03.400]  Apparently, so that's not what the judges are looking for.
[47:03.400 --> 47:09.000]  They're judging to see which dog is closest to the ideal breed, like its breed.
[47:09.000 --> 47:13.560]  Its own breed. They're not measuring Daniel against Seba.
[47:13.560 --> 47:19.320]  Exactly. They're measuring Seba against standard poodles and Daniel against golden retrievers.
[47:19.640 --> 47:24.520]  And apparently, the judges felt like Seba was closer to the ideal standard poodle.
[47:24.520 --> 47:26.280]  They're both cute. They can both win.
[47:26.280 --> 47:30.040]  And speaking as an owner of a golden doodle, I love both breeds, right?
[47:30.120 --> 47:35.800]  Yes. Also, Netflix giving non-subscribers now a freebie amid one highly anticipated release.
[47:35.800 --> 47:40.960]  The company's 2018 original, To All the Boys That I've Loved Before, will be available to stream
[47:40.960 --> 47:44.560]  regardless of whether or not you are a paid user through March 9th.
[47:44.560 --> 47:49.120]  So the move comes as a sequel to the hit rom-com, officially hits the platform today.
[47:49.120 --> 47:53.920]  And this is the first time that Netflix has offered free streaming for one of its originals in the U.S.
[47:53.920 --> 47:58.640]  It will be very interesting to see if this leads to more subscribers, because think about it.
[47:58.640 --> 48:05.040]  If you've watched now the first one and you're into it, you'd be more willing to pay to see the second one.
[48:05.040 --> 48:09.200]  They say it's a hit, and I love rom-coms, but I've not heard of this, nor have I seen it.
[48:09.200 --> 48:11.400]  So I totally missed that boat.
[48:11.400 --> 48:13.080]  We may have aged out, though, you and I.
[48:13.080 --> 48:13.600]  Oh, yeah.
[48:13.600 --> 48:15.120]  I mean, I'm with you, though. I'm with you.
[48:15.120 --> 48:16.160]  Okay, all right.
[48:16.160 --> 48:19.400]  Pizza Hut serving up another interesting innovation.
[48:19.400 --> 48:26.200]  The chain announced that its newest product, the Mozzarella Poppers Pizza, comes with 16 mozzarella filled squares
[48:26.200 --> 48:28.440]  baked right into the pizza crust, like right on top of this.
[48:28.440 --> 48:32.400]  You see there the restaurant is causing it, calling it the cheesiest pizza yet.
[48:32.400 --> 48:36.640]  A bold claim, considering that the chain was also behind the stuffed crust pizza.
[48:36.640 --> 48:41.240]  This also comes a week after Papa John's launched its innovation, the Papadilla.
[48:41.240 --> 48:45.200]  I do remember all of those innovations, and it does sort of get you interested.
[48:45.200 --> 48:48.840]  I feel like everybody's, I shouldn't say everybody, a lot of people try it once.
[48:48.840 --> 48:50.400]  I don't know if you keep going back to it.
[48:50.400 --> 48:54.160]  Like, does the mozzarella stuffed crust become your go-to pizza?
[48:54.160 --> 48:54.760]  Probably not, right?
[48:54.760 --> 48:56.120]  Or maybe it's just a novelty, right?
[48:56.120 --> 48:57.680]  Like, maybe you just try it once, as you said.
[48:57.680 --> 48:58.200]  Exactly.
[48:58.200 --> 48:59.640]  And you're just kind of like, okay, it's a lot of mozzarella.
[48:59.640 --> 49:01.080]  But maybe that's all they need.
[49:01.080 --> 49:01.880]  Interesting.
[49:01.880 --> 49:02.720]  I love cheese.
[49:02.720 --> 49:04.480]  I would definitely be willing to try it.
[49:04.480 --> 49:05.480]  Hear, hear.
[49:05.480 --> 49:08.640]  Well, on deck, Boeing issues a new warning over the coronavirus,
[49:08.640 --> 49:11.920]  and the major economic impact the outbreak will likely have.
[49:11.920 --> 49:15.400]  Plus, what investors should take away from Jake Powell's latest comments
[49:15.400 --> 49:17.880]  before he testifies to Congress again this morning
[49:17.880 --> 49:20.880]  will talk to former Fed Governor Sarah Bloom Raskin.
[49:20.880 --> 49:22.040]  That's coming up next.
[49:22.040 --> 49:26.680]  And a reminder, you can always watch or listen to us live on the go on the CNBC app.
[49:26.680 --> 49:32.880]  Worldwide Exchange is back in just a moment.
[49:56.680 --> 50:05.880]  When it comes to your business internet, which is more important?
[50:05.880 --> 50:10.960]  I wish I didn't have to choose.
[50:10.960 --> 50:13.720]  Like, the more I think about it, the more I want to jump to each room.
[50:13.720 --> 50:15.040]  What if I said you can have it all?
[50:15.040 --> 50:19.240]  Comcast Business gives you connectivity that goes beyond.
[50:19.240 --> 50:23.800]  That's speed, reliability, and security all from one provider.
[50:23.800 --> 50:24.840]  Touchdown!
[50:24.840 --> 50:28.840]  Get started with internet and voice for an amazing price.
[50:28.840 --> 50:29.840]  Call today.
[50:29.840 --> 50:30.840]  Comcast Business.
[50:30.840 --> 50:55.920]  Beyond fast.
[50:55.920 --> 51:03.480]  High protein, low sugar, birthday cake, and try pure protein, delicious protein shakes.
[51:03.480 --> 51:07.240]  Next on Squawk Box, reaction to quarterly numbers from Lyft.
[51:07.240 --> 51:12.640]  What challenges and changes to the roadmap could steer investors to the rideshare company?
[51:12.640 --> 51:14.920]  Squawk Box today, 6 a.m. Eastern.
[51:14.920 --> 51:17.200]  Watch or listen live on the CNBC app.
[51:17.200 --> 51:21.200]  It's time to change the way you think about money.
[51:21.200 --> 51:25.720]  Personal stories, money tips, strategies for saving and investing.
[51:25.720 --> 51:26.720]  Invest in you.
[51:26.720 --> 51:27.720]  Ready.
[51:27.720 --> 51:28.720]  Set.
[51:28.720 --> 51:29.720]  Grow.
[51:29.720 --> 51:30.720]  CNBC and Acorns.
[51:30.720 --> 51:32.920]  Go to CNBC.com slash invest in you.
[51:32.920 --> 51:33.920]  Big news.
[51:33.920 --> 51:34.920]  Big price tags.
[51:34.920 --> 51:35.920]  And big problems.
[51:35.920 --> 51:37.800]  It's been on the market for three years.
[51:37.800 --> 51:38.800]  With no offers.
[51:38.800 --> 51:39.800]  Listing impossible.
[51:39.800 --> 51:40.800]  Tonight.
[51:40.800 --> 51:41.800]  10 Eastern.
[51:41.800 --> 51:42.800]  CNBC.
[51:42.800 --> 51:43.800]  Get yours.
[51:43.800 --> 51:46.440]  It's now time for the executive recap.
[51:46.440 --> 51:48.680]  The headlines you need in 60 seconds.
[51:48.680 --> 51:53.840]  Foxconn is aiming to restart half its production operations in China by the end of the month
[51:53.840 --> 51:56.440]  amid the coronavirus outbreak, according to Reuters.
[51:56.440 --> 51:59.920]  The company is working to boost that number to 80 percent in March.
[51:59.920 --> 52:05.360]  Foxconn received approval from Chinese authorities this week to reopen its largest plants.
[52:05.360 --> 52:09.800]  Meanwhile, Boeing is issuing a warning about the impact of the coronavirus, speaking to
[52:09.800 --> 52:11.760]  reporters at the Singapore Air Show.
[52:11.760 --> 52:17.000]  A senior executive says the global air cargo industry is unlikely to grow this year because
[52:17.000 --> 52:20.160]  of challenges in China stemming from that outbreak.
[52:20.160 --> 52:24.320]  Boeing is also warning that the virus will hit airline revenues and profits shares of
[52:24.320 --> 52:26.800]  Boeing down only fractionally.
[52:26.800 --> 52:31.120]  And a federal judge has dismissed some of the charges against Theranos founder Elizabeth
[52:31.120 --> 52:32.120]  Holmes.
[52:32.120 --> 52:36.660]  The judge ruled patients were not deprived of any money or property by using the company's
[52:36.660 --> 52:38.600]  blood testing services.
[52:38.600 --> 52:43.840]  And there was no evidence showing homes directed doctors to make misrepresentations to their
[52:43.840 --> 52:44.840]  patients.
[52:44.840 --> 52:48.240]  The judge did uphold wire fraud charges, however, against homes.
[52:48.240 --> 52:52.920]  Well, as stock futures point to new records for Wall Street at the open, investors also
[52:52.920 --> 52:57.880]  looking ahead to a second day of testimony from Federal Reserve Chairman Jay Powell,
[52:57.880 --> 53:02.080]  expected to testify before the Senate Bank Committee at 9 a.m. Eastern Time today, just
[53:02.080 --> 53:09.120]  one day after he said the central bank is closely monitoring the coronavirus outbreak.
[53:09.120 --> 53:13.480]  The question for us really is what will be the effects on the U.S. economy?
[53:13.480 --> 53:15.200]  Will they be persistent?
[53:15.200 --> 53:16.200]  Will they be material?
[53:16.200 --> 53:17.200]  That's really the question.
[53:17.200 --> 53:22.800]  I think we know there will be effects on China through some part of the first half of the
[53:22.800 --> 53:28.800]  year, and China's close neighbors and major trading partners in Europe as well as Asia.
[53:28.800 --> 53:32.240]  And we know that there will be some, very likely be some effects on the United States.
[53:32.240 --> 53:34.000]  I think it's just too early to say.
[53:34.000 --> 53:38.040]  We have to resist the temptation to speculate on this.
[53:38.040 --> 53:40.040]  And so we'll be watching that carefully again.
[53:40.040 --> 53:43.880]  And the question we'll be asking is, will these be persistent effects that could lead
[53:43.880 --> 53:47.360]  to a material reassessment of the outlook?
[53:47.360 --> 53:52.180]  Joining me now with more is former Federal Reserve Board Governor and former Deputy Treasury
[53:52.180 --> 53:53.880]  Secretary Sarah Bloom Raskin.
[53:53.880 --> 53:57.320]  She's also a CNBC contributor and Duke University Rubenstein Fellow.
[53:57.320 --> 53:58.320]  Sarah, good morning.
[53:58.320 --> 54:00.000]  Thank you for being here with us today.
[54:00.000 --> 54:02.160]  You, of course, heard Mr. Powell.
[54:02.160 --> 54:06.760]  I'm sure you heard him say all of those things yesterday as we're trying to square up really
[54:06.760 --> 54:10.640]  the impact of the coronavirus, saying we have to wait and see if it's material.
[54:10.640 --> 54:13.640]  It seems to me that there's no question it will be material.
[54:13.640 --> 54:17.040]  We just don't know perhaps to what degree.
[54:17.040 --> 54:18.960]  That's right.
[54:18.960 --> 54:26.720]  This virus actually does have quite the potential to really have some big knock on effects.
[54:26.720 --> 54:32.280]  If you think about certainly the impact, the economic impact on China itself, there is
[54:32.280 --> 54:37.800]  now speculation that that will knock off a couple of points of GDP growth there in terms
[54:37.800 --> 54:40.160]  of how, you know, in terms of how they measure it.
[54:40.160 --> 54:46.160]  But the effects on the U.S. and on the trading partners for China are also really what we
[54:46.160 --> 54:47.400]  have to keep an eye on.
[54:47.400 --> 54:51.420]  You heard Chairman Powell talk about these effects being looking to see whether they
[54:51.420 --> 54:59.240]  are persistent and material, that is, in fact, what the Fed will look at.
[54:59.240 --> 55:04.560]  This is, you know, as I see it, really kind of a double whammy because, of course, we're
[55:04.560 --> 55:10.960]  coming out of a situation where trade has been affected by the tariff wars.
[55:10.960 --> 55:18.220]  And now we have this, you know, this virus to contend with from an economic growth perspective.
[55:18.220 --> 55:22.320]  So I think this is actually a serious headwind.
[55:22.320 --> 55:23.320]  I think so, too.
[55:23.320 --> 55:25.200]  And I think it's going to be some time before we know.
[55:25.200 --> 55:29.640]  We're so much more interconnected, it seems, now, than even we were during the SARS outbreak,
[55:29.640 --> 55:33.200]  both the United States and China, but really China with the rest of the world and their
[55:33.200 --> 55:36.960]  economy has certainly swelled to be much larger than it was then.
[55:36.960 --> 55:40.440]  But the president, of course, Sarah, also kept up his attacks against Jay Powell.
[55:40.440 --> 55:45.360]  He was tweeting during yesterday's testimony, quote, when Jerome Powell started his testimony
[55:45.360 --> 55:49.480]  today, that that was up one hundred twenty five and heading higher as he spoke, it drifted
[55:49.480 --> 55:52.840]  steadily downward as usual and is now negative 15.
[55:52.840 --> 55:55.480]  Germany and other countries get paid to borrow money.
[55:55.480 --> 55:58.640]  We are more prime, but Fed rate is too high.
[55:58.640 --> 56:00.440]  Dollar tough on exports.
[56:00.440 --> 56:04.320]  Oh, Sarah, I don't think he's ever going to escape these tweets.
[56:04.320 --> 56:06.000]  He's always going to be criticized.
[56:06.000 --> 56:09.280]  And Trump keeps pushing for this idea of negative rates.
[56:09.280 --> 56:10.760]  What do you make of it all put together?
[56:10.760 --> 56:16.560]  I guess both the president's criticism of Powell and the idea of negative interest rates.
[56:16.560 --> 56:17.560]  Right.
[56:17.560 --> 56:22.520]  And well, the question of negative interest rates actually got questioned, you know, in
[56:22.520 --> 56:24.540]  the context of the hearing yesterday.
[56:24.540 --> 56:30.720]  And I thought I thought Chairman Powell was was was particularly articulate in taking negative
[56:30.720 --> 56:31.720]  off the table.
[56:31.720 --> 56:36.840]  I mean, he has made it clear that that is not going to be a tool in the toolbox, that
[56:36.840 --> 56:39.080]  the Fed is like more ammunition.
[56:39.080 --> 56:45.000]  He talked about the use of forward guidance, the use of large scale asset purchases, not
[56:45.000 --> 56:47.520]  that these are being contemplated at the moment.
[56:47.520 --> 56:54.300]  But you see the Fed here starting to talk about its usual playbook.
[56:54.300 --> 56:57.760]  Should it need it in terms of more accommodation?
[56:57.760 --> 57:05.320]  So I think the negative interest rate point was handled pretty clearly by Chairman Powell.
[57:05.320 --> 57:10.920]  That is not going to be a tool that he is contemplating right now.
[57:10.920 --> 57:15.660]  And I think, you know, the president can tweet on and on as much as he wants about it.
[57:15.660 --> 57:20.800]  It is a tool that is has mixed results in terms of its use in other countries.
[57:20.800 --> 57:26.480]  And I think its use in the U.S. is something that is is not considered imminent.
[57:26.480 --> 57:30.400]  Before we go here, Powell did also highlight what he sees as the biggest risk to U.S. growth
[57:30.400 --> 57:31.400]  cybercrime.
[57:31.400 --> 57:35.280]  If you can just take a minute, we're going to play this for you.
[57:35.280 --> 57:39.600]  The thing that that we worry about a lot is cyberattacks.
[57:39.600 --> 57:44.960]  I think we have a great game plan for traditional, you know, issues like bad loans and things
[57:44.960 --> 57:45.960]  like that.
[57:45.960 --> 57:50.960]  But cyberattacks is really the frontier where you worry.
[57:50.960 --> 57:52.040]  Sarah, what do you think about that?
[57:52.040 --> 57:53.420]  How big of an issue is that?
[57:53.420 --> 57:57.760]  It seems like so many businesses that we talk to at CNBC say, yeah, we're getting attacked
[57:57.760 --> 57:59.160]  basically every day.
[57:59.160 --> 58:02.220]  We've just gotten better at sort of thwarting many of them.
[58:02.220 --> 58:05.860]  But you know, that's not at some point they're going to break through, I should say.
[58:05.860 --> 58:06.860]  That's right.
[58:06.860 --> 58:13.480]  And the volume and the complexity, the sophistication of these cyberattacks continues to increase.
[58:13.480 --> 58:14.480]  We saw this.
[58:14.480 --> 58:16.680]  I saw this back at my time at Treasury.
[58:16.680 --> 58:21.040]  I mean, this was something that is a mounting concern.
[58:21.040 --> 58:27.480]  I think that Chairman Powell is correct in noting that the defensive posture of a lot
[58:27.480 --> 58:31.960]  of financial institutions is actually increasing, and that's a good thing.
[58:31.960 --> 58:38.920]  So from a defensive posture, a lot of the institutions do have good mechanisms in place
[58:38.920 --> 58:40.160]  to thwart the attacks.
[58:40.160 --> 58:45.320]  But in terms of their coming, they're coming fast and furious and they continue.
[58:45.320 --> 58:47.280]  This is a serious headwind.
[58:47.280 --> 58:51.880]  I would, you know, I would have probably answered that question a little differently.
[58:51.880 --> 58:56.640]  I think that there are other big risks on the horizon and maybe they will get explored
[58:56.640 --> 58:58.880]  today from the Senate side.
[58:58.880 --> 59:04.240]  But in particular, you saw Chairman Powell dodging around a little bit on some on questions
[59:04.240 --> 59:10.520]  of climate change and financial stability and other, you know, and other kind of risk
[59:10.520 --> 59:11.520]  factors.
[59:11.520 --> 59:12.520]  So many things to consider.
[59:12.520 --> 59:14.960]  Sarah Blumraskin, thank you so much for being here with us this morning.
[59:14.960 --> 59:16.680]  We'll speak to you again very soon.
[59:16.680 --> 59:18.440]  That's it for World Wide Exchange this morning.
[59:18.440 --> 59:22.280]  Squawk Box begins right now.
[59:22.280 --> 59:23.280]  Good morning.
[59:23.280 --> 59:28.080]  The NASDAQ and S&P pushing the new highs, but companies are now warning of supply disruptions
[59:28.080 --> 59:31.560]  related to the coronavirus outbreak.
[59:31.560 --> 59:35.680]  Still in the burn in New Hampshire, Senator Sanders edging out Pete Buttigieg.
[59:35.680 --> 59:39.800]  We're going to take you live to the Granite State for the results and implications for
[59:39.800 --> 59:41.040]  investors.
[59:41.040 --> 59:43.840]  And shares of Bed Bath and Beyond are plummeting.
[59:43.840 --> 59:47.120]  The CEO is describing it as short term pain.
[59:47.120 --> 59:49.400]  We've got details on all of it straight ahead.
[59:49.400 --> 59:52.160]  It's Wednesday, February 12th, 2020.
[59:52.160 --> 01:00:07.400]  Squawk Box begins right now.
[01:00:07.400 --> 01:00:08.400]  Good morning, everybody.
[01:00:08.400 --> 01:00:10.160]  Welcome to Squawk Box here on CNBC.
[01:00:10.160 --> 01:00:12.440]  We're live from the NASDAQ market site in Times Square.
[01:00:12.440 --> 01:00:15.640]  I'm Becky Quick, along with Joe Kernan and Andrew Ross Sorkin.
[01:00:15.640 --> 01:00:18.000]  Let's take a look at the U.S. equity futures at this hour.
[01:00:18.000 --> 01:00:20.680]  You'll see right now that the futures are indicated higher.
[01:00:20.680 --> 01:00:24.760]  In fact, the Dow indicated up by triple digits a gain of about 125.
[01:00:24.760 --> 01:00:27.800]  NASDAQ up by 51 and the S&P up by 13.
[01:00:27.800 --> 01:00:32.600]  And this comes after the S&P 500 and the NASDAQ both set new records once again yesterday.
[01:00:32.600 --> 01:00:35.080]  During the trading session, all three of the major averages were higher.
[01:00:35.080 --> 01:00:37.120]  The Dow gave back most of those gains.
[01:00:37.120 --> 01:00:38.120]  Ended the day flat.
[01:00:38.120 --> 01:00:52.200]  But again, you're going to see a lot of