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[00:00.000 --> 00:23.860]  It's 5 a.m. at CNBC Global Headquarters here is your five at five investors bracing
[00:23.860 --> 00:28.600]  forth a higher open as Fed Chairman Jay Powell heads back to Capitol Hill what President
[00:28.600 --> 00:33.440]  Trump had to say about yesterday's testimony that's coming up and Boeing raising the red
[00:33.440 --> 00:39.480]  blank over a potential impact from the coronavirus outbreak lift shares sinking this morning why
[00:39.480 --> 00:44.320]  some investors say its CEO needs to get his priorities in order we speak with an early
[00:44.320 --> 00:49.520]  investor in the company and a new meeting for MAGA what President Trump has to say about
[00:49.520 --> 00:55.760]  Silicon Valley's tech Titans and a slim win in New Hampshire as Bernie Sanders claims victory
[00:55.760 --> 01:01.920]  in the grand estate yet again it's Wednesday February 12 2020 and robot exchange begins
[01:01.920 --> 01:16.520]  right now good morning and welcome I'm Courtney Reagan in this morning for Brian Sullivan your
[01:16.520 --> 01:21.480]  chart of the day kind of an ugly one shares of Bed Bath and beyond sinking look at this more
[01:21.480 --> 01:27.200]  than 20% here the company announcing preliminary guidance for its fourth quarter coming in well
[01:27.200 --> 01:31.840]  below expectations much more on that missed a moment we're going to give you a look at how
[01:31.840 --> 01:37.360]  futures are looking on this Wednesday morning stocks do look to open in record territory here
[01:37.360 --> 01:42.000]  this morning with the Dow Jones industrial average indicated higher by more than 106 points the
[01:42.000 --> 01:48.200]  S&P 500 higher by almost 12 and the Nasdaq tacking on an extra 47 points in the early
[01:48.200 --> 01:53.360]  going let's get a check in the fixed income market take a look at the yield on bonds and
[01:53.360 --> 01:59.080]  look at the 10 year which we're seeing tick higher again here today at 1.620 after we had
[01:59.080 --> 02:04.560]  seen that yield fall for several sessions in a row as perhaps flashing some warning signs
[02:04.560 --> 02:09.560]  that the equity market wasn't quite seeing let's go worldwide now and take a look at the
[02:09.560 --> 02:15.080]  green arrows really around the world in Asia Japan China you name it pretty much higher
[02:15.080 --> 02:18.760]  across the board hang saying higher by nine tenths of a percent the Shanghai composite
[02:18.760 --> 02:25.880]  higher by about the same in the Japanese Nikkei adding on three quarters of a point and let's
[02:25.880 --> 02:31.360]  take a look at Europe in the early going also some green arrows across the world around
[02:31.360 --> 02:35.720]  the world in Europe the German Zetradax higher by six tenths of a percent let's do in a hundred
[02:35.720 --> 02:40.120]  higher just marginally but two tenths of a percent that counts as green and France higher
[02:40.120 --> 02:45.160]  by three tenths of a percent investors are waking up to a lot to chew on this morning
[02:45.160 --> 02:49.640]  frankly Federal Reserve Chairman Jay Powell under renewed pressure from President Trump
[02:49.640 --> 02:54.600]  he heads back to the Hill today among his concerns the coronavirus which he says the
[02:54.600 --> 03:00.440]  central bank is actively monitoring as companies like Boeing and carrying like new concerns
[03:00.440 --> 03:06.160]  over the outbreak earning season remains at the forefront as well names like Cisco Walmart
[03:06.160 --> 03:12.040]  and dear those are still on deck and a far left win in New Hampshire last night for Bernie
[03:12.040 --> 03:17.680]  Sanders shaking up the Democratic presidential field joining me now clear now makes founder
[03:17.680 --> 03:22.720]  and head of research James Lou we got an awful lot to tackle tackle here James let's start
[03:22.720 --> 03:27.760]  with Chairman Powell what do you expect from him today when he heads back to Capitol Hill
[03:27.760 --> 03:32.360]  sort of more of what he said yesterday reiterated with the same or different words or a different
[03:32.360 --> 03:35.760]  message here today yeah good morning Courtney we think it's pretty much gonna be the same
[03:35.760 --> 03:39.920]  message I mean the message from the Fed is that the economy is in good shape there are
[03:39.920 --> 03:44.080]  these big uncertainties in the world as there always are last year it was trade this year
[03:44.080 --> 03:47.720]  it's a coronavirus these uncertainties are very hard to measure but you know you look
[03:47.720 --> 03:52.480]  at last week's jobs report very solid and the underlying trend is still good so there's
[03:52.480 --> 03:57.800]  not much more that the Fed can do at the moment other than staying put you also look at the
[03:57.800 --> 04:02.840]  market reaction and where Fed fund futures are and while the market has cheered what
[04:02.840 --> 04:08.080]  the Fed has done over the last year you also are seeing now the expectation that there
[04:08.080 --> 04:12.360]  will be some sort of rate cut maybe by the middle of the year and certainly at least
[04:12.360 --> 04:15.680]  one rate cut by the end of the year from the market so that's something that's evolving
[04:15.680 --> 04:20.080]  over time and that's changed as uncertainties like coronavirus have taken shape does that
[04:20.080 --> 04:23.560]  feel appropriate to you to be talking about rate cuts again I know that may be what the
[04:23.560 --> 04:27.920]  market is expecting but is that what the economic data tells you might be appropriate so not
[04:27.920 --> 04:31.320]  from our perspective so we think that we're in a position where a wait and see approach
[04:31.320 --> 04:35.320]  probably is appropriate but of course you know the market over the last 10 years has
[04:35.320 --> 04:40.360]  been trained to expect this Fed put and I think from an economic perspective you know
[04:40.360 --> 04:44.840]  obviously there's a human toll and human tragedy for around coronavirus that we shouldn't overlook
[04:44.840 --> 04:50.040]  but economically speaking coronavirus couldn't have happened at a worse time and that's because
[04:50.040 --> 04:54.560]  we had all this trade uncertainty affecting trade between us and China and the global
[04:54.560 --> 05:00.200]  economic picture last year and now this year that issue especially the spread of coronavirus
[05:00.200 --> 05:04.360]  around the world could in fact have a toll on economic growth as well so you know from
[05:04.360 --> 05:08.120]  a timing perspective it's not great but these are big uncertainties they're very hard to
[05:08.120 --> 05:12.680]  measure and so the Fed should probably stay put now the irony of course is that the markets
[05:12.680 --> 05:15.720]  are at all time highs and they're basically trying to look through that right at the moment
[05:15.720 --> 05:19.800]  absolutely that is something that is so interesting and has a lot of us scratching our heads I
[05:19.800 --> 05:24.240]  think the bond market was flashing maybe some warning signs that the equity market wasn't
[05:24.240 --> 05:28.040]  quite but to your point it does seem as if we're looking through and Chairman Powell
[05:28.040 --> 05:32.840]  did use the word resilient I believe yesterday when he was talking about the U.S. economy's
[05:32.840 --> 05:38.360]  ability to sort of absorb some of these bigger global problems does that do you still feel
[05:38.360 --> 05:43.400]  like we are resilient when it comes to the U.S. economy even after all these years of
[05:43.400 --> 05:47.560]  growth and a common native policy we do think that's the case so the U.S. of course has been
[05:47.560 --> 05:53.880]  the main engine of the last decade for global growth now the challenge is that if many investors
[05:53.880 --> 06:00.120]  expect a big resurgence in both global growth and also market performance not just based
[06:00.120 --> 06:03.800]  on last year but also where valuations are then we will have to see other economies start
[06:03.800 --> 06:08.520]  to pick up slack and so you think back to a year like 2017 when it wasn't just in U.S.
[06:08.520 --> 06:12.760]  doing well we had you know people talking about global coordinated growth global synchronized
[06:12.760 --> 06:17.000]  growth and that was a year when not just U.S. markets performed well but emerging markets
[06:17.000 --> 06:21.240]  and developed markets also so I think that's the type of situation situation we would have to see
[06:21.240 --> 06:25.880]  of course you know the coronavirus does potentially dent that a little bit but the reality is it's
[06:25.880 --> 06:29.960]  very hard to measure that effect that's you know you think while SARS and really those are
[06:29.960 --> 06:35.560]  backward looking academic studies you can't just count up the number of you know items that weren't
[06:35.560 --> 06:41.320]  produced because of disease it's also the deals that weren't done it's the economic activity
[06:41.320 --> 06:45.480]  that could have happened that didn't happen that's incredibly hard to measure ultimately speaking
[06:45.480 --> 06:49.640]  you know you need this global growth to come back in order to justify what a lot of investors
[06:49.640 --> 06:53.560]  see in the market right now all that makes a lot of sense james thanks for being here with us come
[06:53.560 --> 06:57.720]  back to world wide exchange and keep us updated when we have better estimates maybe even if it
[06:57.720 --> 07:02.920]  isn't two years thanks for the well senator bernie sanders is celebrating his first clear
[07:02.920 --> 07:08.040]  albeit slim win yesterday in yesterday's new hampshire primary the victory marks the second
[07:08.040 --> 07:13.640]  strong showing for sanders as he and the remaining 2020 democrats now shift their focus to nevada
[07:13.640 --> 07:20.680]  and south carolina nbc's alice bar joins us again this morning good morning alice good morning
[07:20.680 --> 07:25.720]  courtney and turnout was high here in new hampshire higher than back in 2016 that's of course good
[07:25.720 --> 07:30.680]  news for democrats as they're trying to engage voters we were also seeing the top tier of candidates
[07:30.680 --> 07:39.240]  shifting as they head into the next round of voting thank you senator bernie sanders riding
[07:39.240 --> 07:45.240]  high this morning off a first place finish in the first in the nation primary this victory here
[07:46.040 --> 07:54.520]  is the beginning of the end for donald trump former mayor pete budigich coming in a close
[07:54.520 --> 08:01.160]  second roughly 4 000 votes behind thanks to you a campaign that some said shouldn't be here at all
[08:01.160 --> 08:10.600]  has shown that we are here to stay and senator amy klobuchar placing third delivering on momentum
[08:10.600 --> 08:17.000]  from a strong debate performance and rocketing into the top tier we have beaten the odds every
[08:17.000 --> 08:25.080]  step of the way senator elizabeth warren looking for a path forward after a disappointing fourth
[08:25.080 --> 08:32.120]  place finish our campaign is built for the long haul while former vice president joe biden landed
[08:32.120 --> 08:37.560]  in fifth having already left new hampshire before results came in he spoke last night from south
[08:37.560 --> 08:45.960]  carolina where he's counting on a rebound from a more diverse electorate 99.9 percent that's the
[08:45.960 --> 08:52.200]  percentage of african-american voters who have not yet had a chance to vote in america hell how's
[08:52.200 --> 08:58.280]  it going the field is narrowing businessman andrew yang and senator michael bennett both
[08:58.280 --> 09:03.800]  announcing they are dropping out as winners and losers emerge from new hampshire sharpening the
[09:03.800 --> 09:11.000]  picture of the race to november at this point coming out of the first two contests pete budigich
[09:11.000 --> 09:15.400]  still has a slight lead in the delegate count which will ultimately decide the nominee though of
[09:15.400 --> 09:20.520]  course there's still a long way to go until that decision kourtney absolutely we've got a long road
[09:20.520 --> 09:25.480]  ahead alice thanks for being here with us this morning well when we come back forget travel
[09:25.480 --> 09:31.000]  retail and tech yet another industry sounding the alarm over the coronavirus outbreak racing for
[09:31.000 --> 09:38.120]  a possible supply chain shock a mixed morning has soft bank shares surging to a seven month high
[09:38.120 --> 09:44.520]  check out that higher by 12 percent find out why next and later former federal reserve board
[09:44.520 --> 09:49.800]  governor sarah bloom raskin is here her take on pal's day one testimony and what we can expect from
[09:49.800 --> 10:00.360]  day two a very busy hour still had one worldwide exchange returns can i find an investment firm
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[11:10.520 --> 11:17.640]  watch or listen live on the cnbc app microsoft amazon alphabet igniting tech
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[12:30.600 --> 12:34.120]  well welcome back let's get to check on the latest news surrounding the coronavirus outbreak
[12:34.120 --> 12:38.680]  rachel solomon is here rachel how's it looking today hi corny so china is now reporting the
[12:38.680 --> 12:43.560]  lowest number of new coronavirus cases in the hubei province since the end of january that of
[12:43.560 --> 12:49.160]  course is the epicenter of the outbreak so officials say that 1068 new cases are confirmed
[12:49.160 --> 12:55.320]  that's down from a peak of more than 3000 on february 4th however there have also been 94 new
[12:55.320 --> 13:00.120]  deaths reported in the region drug makers are also bracing for potential supply disruptions
[13:00.120 --> 13:05.400]  from china the ceo of one of india's largest pharmaceutical companies this morning supplies
[13:05.400 --> 13:10.840]  would start running out by the end of this month unless china restarts production china makes
[13:10.840 --> 13:17.400]  compounds that are used in antibiotics painkillers and also diabetes drugs and vet chairman j powell
[13:17.400 --> 13:21.880]  commenting on the impact of the coronavirus could have an impact on the global economy
[13:21.880 --> 13:27.400]  testifying before congress yesterday powell said that the u.s economy appears to be resilient as
[13:27.400 --> 13:32.200]  we just heard courtney say to global headwinds but the vet is also closely monitoring the situation
[13:35.960 --> 13:41.240]  we know there will be effects on china through through some part of the first half of the
[13:41.240 --> 13:47.240]  year and china's close neighbors and trade major trading partners in europe as well as asia
[13:47.240 --> 13:51.320]  and we know that there will be some very likely be some effects on the united states i think it's
[13:51.320 --> 13:56.600]  just too early to say also shares of gucci's parent company caring are hired today after
[13:56.600 --> 14:01.400]  reporting strong fourth quarter results but the company also says that it has seen a serious
[14:01.400 --> 14:07.080]  drop in customer traffic in china caring says that it's shifting some inventory to other countries
[14:07.080 --> 14:11.960]  shares of foxconn rising more than three percent today this is on reports that it aims to resume
[14:11.960 --> 14:16.840]  half of its production in china by the end of the month reuters says that foxconn is also shooting
[14:16.840 --> 14:20.840]  to be at 80 percent of capacity by sometime in march you can see shares are up about three
[14:20.840 --> 14:25.880]  percent in pre-market and bowing is warning that the virus will hit the airline industry's profit
[14:25.880 --> 14:31.400]  this year speaking to reporters at the singapore air show a senior executive says that's due to
[14:31.400 --> 14:36.920]  travel restrictions and a 70 drop in capacity by chinese airlines and courtney you and i talked
[14:36.920 --> 14:41.240]  about this on rapid fire yesterday of course if flights aren't going into china of course
[14:41.240 --> 14:45.240]  that hurts the airlines but also a lot of the companies that do really well in those airports
[14:45.240 --> 14:49.080]  absolutely i know the ripple effects i think are really hard to measure and i have to
[14:49.080 --> 14:52.840]  actually give some of these companies credit for trying to measure even giving us some of
[14:52.840 --> 14:57.240]  these numbers 70 percent 80 percent whether they're talking about a revenue hit try to manage
[14:57.240 --> 15:00.760]  expectations yeah and i think i think it's just going to be hard to really know and as james
[15:00.760 --> 15:05.240]  louis our last guest was saying we may not know for several years down the road with the collective
[15:05.240 --> 15:10.440]  impact it's often pretty backward looking but we gotta try to figure it out now thank you well
[15:10.440 --> 15:16.760]  sure okay well don't forget to watch cnbc special coverage of the outbreak that breaks down the
[15:16.760 --> 15:23.560]  fast-moving developments and the market impact that's tonight at 7 p.m eastern time well still on
[15:23.560 --> 15:33.320]  deck why investors may want to stay away from that beyond section this morning today's big number
[15:33.320 --> 15:41.880]  14 trillion dollars that's the total household debt in the u.s. it grew over 600 billion dollars
[15:41.880 --> 16:07.720]  in 2019 making it the biggest annual increase in 12 years
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[18:10.120 --> 18:26.440]  let's get a check on some of the stocks on the move today soft banks third quarter profit was
[18:26.440 --> 18:32.520]  nearly wiped out by losses of its 100 billion dollar vision at its 100 dollar 100 billion
[18:32.520 --> 18:37.960]  dollar vision fund i should say the fund posting an operating loss of more than two billion dollars
[18:37.960 --> 18:43.720]  ceo maserson defending soft banks performance saying the vision fund has gained about three
[18:43.720 --> 18:48.280]  billion dollars on its investments since the beginning of the year and now this report did come
[18:48.280 --> 18:53.960]  after the close of japanese trading soft bank of sprint merger with t mobile a lot going on there
[18:53.960 --> 18:59.080]  for soft bank now western union is reporting fourth quarter earnings and revenue that missed
[18:59.080 --> 19:05.000]  forecast the company says the stronger dollar negatively impacted revenue you can see shares
[19:05.000 --> 19:10.840]  down more than six percent and shares a bedbath and beyond a few plunging by more than 20 percent
[19:10.840 --> 19:15.480]  actually down more than 25 percent after the retailer said fourth quarter sales were hit by
[19:15.480 --> 19:21.560]  increased promotions falling traffic and inventory issues same store sales in december and january
[19:21.560 --> 19:26.760]  those dropped more than five percent or and that was more than expected the ceo says the company is
[19:26.760 --> 19:33.080]  experiencing quote short-term pain and efforts to stabilize the business that ceo is still sort of
[19:33.080 --> 19:36.840]  getting speed under him trying to figure out what that business is all about and frankly
[19:36.840 --> 19:42.520]  how to fix it well as we had to break president trump giving his maga slogan new meaning yesterday
[19:44.120 --> 19:49.480]  and we have four trillion dollar companies one is microsoft one is apple one is google one is
[19:49.480 --> 19:56.920]  amazon so you have amazon google apple and microsoft and so you have an m you have an a you have a g
[19:56.920 --> 20:03.640]  and you have an a you have a maga here the comments coming just hours after the f tc expanded its
[20:03.640 --> 20:10.040]  antitrust investigation into big tech over past acquisitions that may have hurt competition consumers
[20:10.040 --> 20:26.840]  and evaded regulatory scrutiny we're back after this no one likes to feel stuck boxed in or held back
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[22:43.480 --> 22:51.640]  i've been walking these streets so long
[22:53.640 --> 23:00.280]  singing the same old song let's get a check on this morning's other headlines NBC's philip
[23:00.280 --> 23:04.040]  benna is in new york with the lead us good morning philip hey kourtney good morning and
[23:04.040 --> 23:07.880]  just a moment we will tell you why that song was playing a stunning turn of events in the
[23:07.880 --> 23:12.520]  roger stone case attorney general william bar and his top aides at the justice department
[23:12.520 --> 23:18.360]  intervened reversing a stiff sentencing recommendation that federal prosecutors had filed the decision
[23:18.360 --> 23:23.080]  coming after a tweet from the president called the seven to nine year recommendation quote
[23:23.080 --> 23:28.600]  a miscarriage of justice all four prosecutors in the case have now dropped out in protest of the
[23:28.600 --> 23:33.560]  move and one is leaving the justice department altogether actor jussie smollett is facing new
[23:33.560 --> 23:39.720]  charges this morning the empire star faces a new six count indictment charging he filed four separate
[23:39.720 --> 23:45.320]  false reports to chicago police when he claimed last january the two math gunmen attacked him
[23:45.320 --> 23:51.080]  insulted him with homophobic and racist slurs and then looped a noose around his neck the special
[23:51.080 --> 23:55.880]  prosecutor says a new investigation was launched after similar charges were abruptly dropped last
[23:55.880 --> 24:02.440]  year attorneys for some for smollett have not yet responded and it looks like the rhinestone cowboy
[24:02.440 --> 24:08.760]  is trading in his horse for a toyota this man from crimea covered his car in those tiny gems
[24:08.760 --> 24:14.680]  four hundred thousand to be exact took him six months to complete a sparkly project but he says
[24:14.680 --> 24:19.720]  it was a labor of love and he now plans to sell that car he says that it would be a great prop
[24:19.720 --> 24:26.280]  for photo shoots although courtney i have no idea how he'd watch that so instagram worthy though i
[24:26.280 --> 24:31.960]  like it sparkly i mean imagine all the photos you could take with that car thank you you're
[24:31.960 --> 24:38.600]  totally bedazzled thank you philip well still to come why some say lift needs to get its priorities
[24:38.600 --> 24:44.040]  in order as that stock falls more than four percent this morning plus the carlos gonzaga
[24:44.040 --> 24:50.280]  far from over as nissan takes a new swipe at its ousted former chairman and a programming note don't
[24:50.280 --> 24:56.760]  miss a cbc exclusive a cvs health ceo larry merlot on closing bell today as that company prepares to
[24:56.760 --> 25:05.240]  release results just after seven a.m. eastern time worldwide exchange is back after this
[25:07.320 --> 25:12.600]  rising energy costs are frustrating electricity rates continue to increase and there's no relief
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[27:39.000 --> 27:44.600]  stocks look poised to build on record highs as investors prep themselves around two of j power
[27:44.600 --> 27:50.040]  on the hill futures are higher bernie sanders on top of the 2020 democratic field following the
[27:50.040 --> 27:55.160]  win in new hampshire what his rise could mean for your money and speaking of winners the west
[27:55.160 --> 28:00.920]  minster dog show crowns its champion the pup that took best in show as the second half of world
[28:00.920 --> 28:06.360]  blood exchange starts now
[28:12.200 --> 28:16.440]  welcome back to world blood exchange i'm courtney reagan and this morning for brian selivan here's
[28:16.440 --> 28:21.240]  our stock features are looking halfway through the five a.m. hour we gave you a sneak peek we said
[28:21.240 --> 28:25.480]  they were higher and the dow jones industrial average is indicating a higher open to the tune of
[28:25.480 --> 28:32.200]  106 points the s and p 500 higher by 12 and then as i said to add about 46 points another busy day
[28:32.200 --> 28:38.280]  though of course ahead with fed chairman's testimony again on the hill coronavirus earnings and the
[28:38.280 --> 28:42.920]  new hampshire primary results all of that on investors radars let's take a look at the bond
[28:42.920 --> 28:48.920]  market the yield on the 10 years sitting at 1.614 percent taking slightly higher from the yield
[28:48.920 --> 28:54.280]  yesterday let's get a check on the asian markets we saw green arrows mostly around the world and
[28:54.280 --> 28:59.400]  as you can see across the board in asia with shanghai hansing and the japanese nikkei all
[28:59.400 --> 29:04.680]  higher just under 1 percent though european markets also indicating or actually i should
[29:04.680 --> 29:09.000]  say they are open right they're a couple hours ahead of us so they're higher we've got the german
[29:09.000 --> 29:13.320]  zetradax higher by six tenths of a percent footsie 100 higher by three tenths of a percent
[29:13.320 --> 29:18.120]  and france is higher by three tenths of a percent as well let's get a look at some of the other top
[29:18.120 --> 29:22.600]  stories that were following this morning for hell salomon is here hi rell hi courtney so the saga
[29:22.600 --> 29:27.720]  between nissan and carlos gone continues so nissan has filed a civil lawsuit in japan against its
[29:27.720 --> 29:33.160]  former chairman carlos gone the automaker is seeking an initial amount of 90 million dollars in the
[29:33.160 --> 29:39.160]  suit the company says it's looking to recover monetary damages inflicted by gone as a result of
[29:39.160 --> 29:45.080]  quote years of misconduct and fraudulent activity google kicks off a landmark legal case in europe
[29:45.080 --> 29:49.480]  today during the three-day hearing at europe's second highest court the company will seek to
[29:49.480 --> 29:55.960]  overturn three european union antitrust fines that total roughly nine billion dollars decision is
[29:55.960 --> 30:01.080]  unexpected until next year and the federal aviation administration is admitting that it
[30:01.080 --> 30:07.240]  has not effectively overseen systems for managing safety risks at southwest airlines so this follows
[30:07.240 --> 30:11.560]  a new report from the u.s. department of transportation's office of inspector general
[30:11.560 --> 30:19.080]  that blasted the f a a the agency says that local f a a manager is responsible for monitoring southwest
[30:19.080 --> 30:23.320]  failed to ensure that the carrier complied with mandatory maintenance standards while
[30:23.320 --> 30:29.000]  incorporating 88 used jets into its fleet shares of southwest are lower this morning as we can see
[30:29.000 --> 30:34.600]  down about 1.2 percent in pre-market court for health thank you very much we're gonna see you back
[30:34.600 --> 30:39.800]  a little later well the 20 20 democrats are turning their attention to nevada and south carolina
[30:39.800 --> 30:44.680]  after senator bernie sanders victory in the new hampshire primary sanders win puts him near the
[30:44.680 --> 30:50.120]  top of the party's fractured presidential field which is now smaller after yesterday's contest
[30:50.120 --> 30:55.400]  cbc's kaila tau she joins us now kaila can you break down sort of where things stack up after
[30:55.400 --> 31:00.520]  the primary it hasn't been so clear to all of us all along the way who's really the leader
[31:02.360 --> 31:09.240]  well sanders is victorious in new hampshire after a clear victory last night after a chaotic
[31:09.240 --> 31:17.480]  run in iowa just a week ago courtney with 25.9 percent of the votes uh sanders can claim victory
[31:17.480 --> 31:23.000]  here although notably his support in the state has been significantly eroded by the entrance of
[31:23.000 --> 31:28.600]  south ben mayer pete buddha judge and minnesota senator amy klobuchar who essentially split
[31:28.600 --> 31:34.120]  the support that sanders received here in the state in the 2016 cycles pete pete buddha judge
[31:34.120 --> 31:40.120]  with 24.4 percent and klobuchar with just shy of 20 percent after being largely written off
[31:40.120 --> 31:45.080]  just a week ago because of a lower tier trying to figure out whether she can sustain this momentum
[31:45.080 --> 31:52.760]  and how here's the senator in new hampshire last night and tonight in new hampshire as everyone
[31:52.760 --> 32:03.080]  had counted us out even a week ago thank you pundits i came back and we delivered
[32:06.760 --> 32:11.320]  because of the fractured field perhaps many were surprised at the low finish of senator
[32:11.320 --> 32:16.360]  elizabeth warren and former vice president joe biden who with lower than 15 percent of
[32:16.360 --> 32:22.360]  support here in new hampshire did not cross the threshold to get any delegates biden has already
[32:22.360 --> 32:27.480]  left new hampshire to start campaigning in south carolina which is the next presidential
[32:27.480 --> 32:34.680]  state contest on february 22nd he acknowledged uh that he has not been performing well in the race
[32:34.680 --> 32:40.520]  uh but is uh and latinos to hopefully improve his numbers and finally because of the performance
[32:40.520 --> 32:46.840]  in in new hampshire we are seeing some presidential campaigns suspended uh both andrew yang and
[32:46.840 --> 32:51.640]  senator michael bennett saying last night that it would be the end of the road for their campaigns
[32:51.640 --> 32:58.040]  so we are seeing the race narrow slightly courtney but we still have more than a handful in the running
[32:58.040 --> 33:02.600]  yeah kayla and yesterday i know you were telling us that at least that sort of ceremonial first
[33:02.600 --> 33:08.440]  votes they went to mayor bloomberg but i didn't hear you sort of mention how it all shook out for him
[33:08.440 --> 33:17.720]  i guess that was all he got uh yeah and certainly that was more of um you know and a novelty vote
[33:17.720 --> 33:23.240]  dicksville notch just casting a handful of votes certainly he has been spending ad money
[33:23.240 --> 33:27.960]  here in the state he has been gaining traction in national polls but courtney he hasn't really
[33:27.960 --> 33:33.560]  been spending any time in the state he may uh in the future there are some reports that he is uh
[33:33.560 --> 33:39.800]  in uh increasing his staff here in new hampshire and opening an office here uh but uh he has not
[33:39.800 --> 33:45.320]  really been campaigning here uh at all he will appear on his first debate stage of the cycle
[33:45.320 --> 33:51.800]  next week in nevada that is certainly something every campaign is preparing for this is so interesting
[33:51.800 --> 33:56.920]  kayla thank you very much for bringing it to us this morning this is going to continue to unfold
[33:56.920 --> 34:01.720]  in the weeks and the months ahead well for more on senator sanders victory and what it means for
[34:01.720 --> 34:06.840]  the election and your money i'm joined by jeff mills his chief investment officer at bren mar trust
[34:06.840 --> 34:12.840]  and jimmy pethacoccus economic analyst at the american enterprise institute both of these gentlemen
[34:12.840 --> 34:17.560]  our cnbc contributors jimmy i guess i'm gonna start with you just to give us kind of the lay
[34:17.560 --> 34:22.520]  of the land and how you think everything shook up last night's why understand mr sanders won but
[34:22.520 --> 34:27.160]  by a relatively narrow margin so what does this mean going forward biden's already moved on to
[34:27.160 --> 34:32.280]  south carolina what's happening here who's going to be the democratic frontrunner well what happened
[34:32.280 --> 34:37.480]  was that we had a frontrunner who as it turns out is really bad at running for president i don't
[34:37.480 --> 34:42.120]  think joe biden's ever done better than about a fourth place finished in a primary uh he looks
[34:42.120 --> 34:47.960]  like he barely has a pulse and we have a very weak frontrunner in a very uh fractured field
[34:48.600 --> 34:53.960]  and listen if you were going to come up with a scenario where somebody who has unlimited money
[34:53.960 --> 35:00.920]  to spend can jump in shake the whole thing up maybe win maybe create a uh you know a brokered
[35:00.920 --> 35:05.400]  convention next summer that's exactly what you're seeing you mentioned mike bloomberg at the end
[35:06.360 --> 35:10.760]  i don't know what i don't know what his scenarios were that he ends up as a democratic nominee
[35:10.760 --> 35:15.240]  but they couldn't look much better than what's happening right now and so jeff now that we hear
[35:15.240 --> 35:19.320]  everything jimmy has to say and he's talking about a fracture field i guess it's a little hard for
[35:19.320 --> 35:25.000]  investors to sort of make some of their bets with their money but if it is bernie sanders
[35:25.000 --> 35:29.320]  i mean you couldn't be further different from the situation we have right now in the white
[35:29.320 --> 35:35.800]  house as far as economic policy is concerned yeah no question but i think the market has it about
[35:35.800 --> 35:41.000]  right you know it continues to levitate even as sanders has risen in the polls but i think the
[35:41.000 --> 35:46.120]  bottom line is that no president has lost reelection when they've avoided a recession
[35:46.120 --> 35:51.480]  in the two years prior to that reelection bid so you know in my estimation you have
[35:51.480 --> 35:57.000]  a bottoming of global manufacturing it looks like leading economic indicators are inflecting higher
[35:57.000 --> 36:02.040]  if you look at earnings as an example usually guidance for 2020 at this point in time would
[36:02.040 --> 36:08.680]  have been down by about 1.4 percent guidance is only down by about 4 percent so far so fundamentally
[36:08.680 --> 36:13.240]  things look good which means we likely avoid a recession leading into reelection so i think
[36:13.240 --> 36:19.000]  investors are looking toward another president trump victory here and usually when the incumbent
[36:19.000 --> 36:24.440]  wins on average the s and p 500 is up about 10 percent when the incumbent loses usually up about
[36:24.440 --> 36:29.160]  3 percent so a big gap there but if you're playing the odds it looks like a reasonably good scenario
[36:29.160 --> 36:33.320]  for markets and i think that's how investors are acting at the current time you know i mean polls
[36:33.320 --> 36:39.560]  show that uh or suggest you know that bernie sanders can be president trump uh a lot of investors
[36:39.560 --> 36:43.960]  look at those betting markets those betting markets have trump the favorite and even if
[36:43.960 --> 36:48.120]  even if trump should lose you have a president sanders you know we're not going to get a wealth
[36:48.120 --> 36:52.040]  tax probably unconstitutional we're not going to suddenly we're not going to you know outlaw
[36:52.040 --> 36:56.600]  all private insurance companies so i think they're looking at it's an unlikely scenario the bernie
[36:56.600 --> 37:02.760]  sanders wins it's even more unlikely scenario that we go hashtag full socialism and jeff as you
[37:02.760 --> 37:07.240]  follow along you know you said you gave us some stats there about what happens when incumbent
[37:07.240 --> 37:14.280]  presidents win and then if they lose the s and p 500 is up about 56 percent since trump has been in
[37:14.280 --> 37:21.400]  office i mean but what would market say about sort of looking at this very fractured field i guess
[37:21.400 --> 37:26.600]  i'm still just not convinced that the markets are going to behave the same way if the candidate is
[37:26.600 --> 37:33.080]  bernie sanders versus if the democratic candidate is say mike bloomberg yeah look i mean jim mentioned
[37:33.080 --> 37:37.640]  it right if you look at the national polling i think sanders is ahead of trump by something like
[37:37.640 --> 37:42.760]  four percent and that gap has actually widened a little bit so i do think that even if it's just
[37:42.760 --> 37:49.560]  for a period of time investors may need to react in a way that you know supposes that there could
[37:49.560 --> 37:54.840]  possibly be a bernie sanders president so i think it could cause volatility in the near term and
[37:54.840 --> 37:59.000]  honestly i've been surprised that the catalyst the markets have been given thus far whether it's
[37:59.000 --> 38:04.440]  coronavirus or sanders surging in the polls hasn't done more to shake the markets i mean if you look
[38:04.440 --> 38:10.440]  at what's going on right now you've got the top 50 names in the s and p 500 some 13 percent above
[38:10.440 --> 38:15.320]  their long term moving average if you look under the surface there's some breadth deterioration so
[38:15.320 --> 38:21.000]  we had 80 percent of names above the 50 day moving average now only 60 so i think in the near term
[38:21.000 --> 38:25.400]  whether it's the coronavirus whether it's something important term prediction i think if you look out
[38:25.400 --> 38:30.840]  ahead it's just difficult to be too negative on a market where the liquidity backdrop is what it is
[38:30.840 --> 38:34.840]  via what central banks are doing they continue to stand at the ready and like i said i think
[38:34.840 --> 38:40.520]  fundamentals on on balance are actually looking better not worse jimmy looking forward as these
[38:40.520 --> 38:45.400]  primary contests roll on do you think we're going to continue to see such a fracture field or these
[38:45.400 --> 38:49.880]  campaigns going to start to pull together and voters start to sort of aggregate towards one
[38:49.880 --> 38:53.560]  candidate or is this just the way it's going to be until we get to like you said the possibility
[38:53.560 --> 38:59.000]  of a procured convention yeah listen i think i think if you had if there wasn't a mike bloomberg
[38:59.000 --> 39:04.040]  sort of looming out there you'd say at some point listen sanders has you know he's won the votes in
[39:04.040 --> 39:09.640]  these four in the caucus and the primary uh the next couple of states look much better than him
[39:09.640 --> 39:14.840]  i mean he kind of in a normal situation he kind of should be the democratic nominee people don't
[39:14.840 --> 39:19.960]  believe it because of his age because of the socialism tag and because we have this age bomb
[39:19.960 --> 39:25.720]  of money about to explode in this primary over the next few weeks that's why i think this is
[39:25.720 --> 39:31.400]  still going to be a very topsy-turvy field for quite a long time jeff mills jimmy pethacoccus thank
[39:31.400 --> 39:35.000]  you both for joining us this morning you know we're going to keep talking to you for the months to
[39:35.000 --> 39:40.920]  come because we have a lot to figure out it seems a little shares of lift tumbling despite the
[39:40.920 --> 39:46.120]  company posting results that beat analyst estimates fourth quarter revenue topping one billion dollars
[39:46.120 --> 39:51.240]  for the first time ever investors though paying closer attention to the stock following uber's
[39:51.240 --> 39:56.680]  fourth quarter beat and updated profitability target shares of lift down four percent ceo
[39:56.680 --> 40:02.120]  logan green didn't update lifts profitability timeline but he did make it clear that it was
[40:02.120 --> 40:08.840]  among the key themes the company is focused on this year we expect to deliver continued strong
[40:08.840 --> 40:15.320]  top-line growth in 2020 while also making progress on our path of profitability as we've discussed
[40:15.320 --> 40:21.080]  on prior calls there are three key themes that were focused on first is product innovation
[40:21.080 --> 40:28.200]  second is profitable growth and third is operating leverage joining me now santo schraue his head of
[40:28.200 --> 40:32.920]  research at manhattan venture partners his firm was an early investor in lift okay so you just
[40:32.920 --> 40:39.560]  heard logan green profitability number two on his list should it be number one well good morning
[40:39.560 --> 40:45.160]  thanks for having me again i think it's no they're on the right track they're not in a rush they
[40:45.160 --> 40:49.480]  don't want to pull in the timeline they and that's one of the reasons why we invested right from the
[40:49.480 --> 40:55.400]  beginning we feel it's a pure play with a focused strategy very disciplined strategy so i think that's
[40:55.400 --> 41:00.360]  what they're doing they're executing to that strategy they're not in a rush like he said profitable
[41:00.360 --> 41:05.960]  growth until the second the last quarter of 2021 they will be profitable so i trust them i trust
[41:05.960 --> 41:10.760]  the numbers i trust the ceo so i think he's on the right track and this quarter was a classic
[41:10.760 --> 41:16.440]  beat and raise fourth quarter right off the gate doing great with big numbers so i think this company
[41:16.440 --> 41:20.920]  is on the right track and our thesis is proving out that this is the way to go so you're an early
[41:20.920 --> 41:25.160]  investor are you currently an investor in lift no we are not i mean we distribute the shares after
[41:25.160 --> 41:31.480]  the expiration but we were early investors like i said okay okay and so you you mentioned that lift
[41:31.480 --> 41:37.560]  is a pure play and you mean because they don't have a lift eats like an uber eats but some people
[41:37.560 --> 41:41.880]  point to that is actually a really good thing for uber you don't think lift needs that no they don't
[41:41.880 --> 41:46.360]  need that i mean uber eats its it eats business is good but it's competitive that's the thing about
[41:46.360 --> 41:50.440]  uber and uber it's a different game it's a platform it has a number of other businesses
[41:50.440 --> 41:56.360]  not all profitable we don't know when they'll be profitable but it's it's a it's a broad platform
[41:56.360 --> 42:00.840]  but i think the way to go is the right sharing business in north america which has the best
[42:00.840 --> 42:06.760]  unit economics so this is the right focus very well with the optionality later on of going into
[42:06.760 --> 42:11.560]  other businesses i would rather go that way then go this way because there's a lot more to do here
[42:11.560 --> 42:17.240]  the market is big there's a huge opportunity out there it's still a lot more to go still early
[42:17.240 --> 42:22.760]  stages so i think they need the resources and the attention to execute here and then later on
[42:22.760 --> 42:27.400]  see about try to go into other businesses if needed but they don't need to so really important part
[42:27.400 --> 42:32.520]  of north america is california because it's a huge state and we've got this gig worker law
[42:32.520 --> 42:36.360]  on the books that these ride-sharing companies and a number of others are just not thrilled with
[42:36.360 --> 42:42.280]  frankly i mean how big of a threat is this and will this continue to be an overhang for investors
[42:42.280 --> 42:47.640]  yeah i think it's still playing out uh lift is banking on a ballot initiative they they're confident
[42:47.640 --> 42:51.640]  that they can win but let's see where that plays out california is not the biggest part of the
[42:51.640 --> 42:56.360]  market i mean it's big but it's not all all the business and there's a lot of other businesses
[42:56.360 --> 43:04.040]  around so there'll be some hit small percentage of the total earnings i guess but overall i think
[43:04.040 --> 43:08.600]  we'll see it i think the genie is out of the bag no one you cannot take this back
[43:09.400 --> 43:13.160]  right sharing is the way to go for the future everyone wants that there's a ground swell of
[43:13.160 --> 43:18.280]  support from bottom up so you'll see at somewhere in between you will settle there will be a compromise
[43:18.280 --> 43:24.360]  somewhere but in the end you need gig economy you need right sharing that's the way to go transportation
[43:24.360 --> 43:29.720]  of the transportation as a service is a big part of the future that's where we invested that's how
[43:29.720 --> 43:33.960]  that's why we thought this was the right place to go so a lot of moving parts antosh thanks for being
[43:33.960 --> 43:39.000]  here with us thank you thanks for having me absolutely well coming up netflix making a rare
[43:39.000 --> 43:44.280]  move with the release of one highly anticipated sequel details on that and the other stories
[43:44.280 --> 43:49.000]  you're going to be talking about that's ahead and coming up in a cnbc exclusive golden sack
[43:49.000 --> 43:54.920]  ceo david solomon joins closing bell as the bank's annual internet and technology conference kicks
[43:54.920 --> 44:04.760]  off at the 4 p.m. eastern time world-wide exchange though back in just a moment racing has taken me
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[45:35.080 --> 45:41.160]  about investment decisions rigorous fundamental research with portfolio managers focused on the
[45:41.160 --> 45:47.640]  long term who look beyond the spreadsheets to understand companies from break room to board room
[45:48.520 --> 45:54.280]  who know the only way to get a 360 view is to go around the world to get it can I rely on deep
[45:54.280 --> 46:00.840]  research to help make quality investment decisions with capital group I can talk to your advisor
[46:00.840 --> 46:09.480]  or consultant for investment risks and information let's find out what else you're going to be
[46:09.480 --> 46:14.200]  talking about today it is time for this morning's top stories or hell Solomon is back what do we
[46:14.200 --> 46:19.000]  got today okay so twitter is in an uproar about this next one the westminster dog show wrapped up
[46:19.000 --> 46:24.920]  two days of competition last night and handed out its coveted best in show award and the winner was
[46:24.920 --> 46:30.120]  this standard poodle named seba cute right so seba is the first standard poodle to win top
[46:30.120 --> 46:36.600]  dog at the show since 1991 also the fifth to win in westminster history seba however upset crowd
[46:36.600 --> 46:42.280]  favorite daniel let's wait for this this is a golden retriever who took home first this is still
[46:42.280 --> 46:46.360]  seba of course who took home first in the competitions sporting group well let me tell you daniel
[46:46.360 --> 46:52.440]  there's daniel very cute so here's the issue apparently a golden retriever has never won
[46:52.440 --> 46:57.560]  and so it was the underdog no pun intended and so folks really wanted daniel to win they also
[46:57.560 --> 47:02.680]  thought daniel was a cuter more doggy dog right right right apparently so that's not what the
[47:02.680 --> 47:09.160]  judges are looking for they're judging to see which dog is closest to the ideal breed like it's
[47:09.160 --> 47:15.880]  breed it's own breed they're not not measuring daniel against seba exactly they're measuring seba
[47:15.880 --> 47:21.000]  against standard poodles and daniel against golden retrievers and apparently the judge
[47:21.000 --> 47:26.200]  just felt like seba was closer to the ideal standard they're both cute they can both win
[47:26.200 --> 47:31.480]  and speaking as an owner of a golden doodle i love both breeds yeah right yes also netflix
[47:31.480 --> 47:37.160]  giving non-subscribers now a free beat amid one highly anticipated release the company's 2018
[47:37.160 --> 47:42.040]  original to all the boys that i've loved before will be available to stream regardless of whether
[47:42.040 --> 47:47.400]  or not you are a paid user through march 9th so the move comes as the sequel to the hit romcom
[47:47.400 --> 47:52.040]  officially hits the platform today and this is the first time that netflix has offered free streaming
[47:52.040 --> 47:57.960]  for one of its originals in the us will be very interesting to see if this leads to more subscribers
[47:57.960 --> 48:02.680]  because think about it if you watch now the first one right and you're into it yeah you'd be more
[48:02.680 --> 48:07.320]  willing to pay you know to see the second one they say it's a hit and i love romcoms but i've
[48:07.320 --> 48:12.600]  not heard of this nor have i seen it so i've totally missed that boat we may have aged out though
[48:12.600 --> 48:18.840]  you and i i mean i'm with you though i'm with you okay so pizza hut surfing up another interesting
[48:18.840 --> 48:23.960]  innovation the chain announced that it's newest product the mozzarella poppers pizza it comes with
[48:23.960 --> 48:28.600]  16 mozzarella filled squares baked right into the pizza crust like right on top of this you see
[48:28.600 --> 48:33.960]  there the restaurant is causing it calling it the cheesiest pizza yet both claim considering
[48:33.960 --> 48:38.520]  that the chain was also behind the stuffed crust pizza this also comes a week after papa john's
[48:38.520 --> 48:44.520]  launched its innovation the papa dia i do remember all of those innovations and it does sort of get
[48:44.520 --> 48:49.000]  you interested i feel like everybody's i shouldn't say everybody a lot of people try it once i don't
[48:49.000 --> 48:54.120]  know if you keep going back to it like does it does the mozzarella stuff crust become your go to pizza
[48:54.120 --> 48:57.640]  probably not right or maybe it's just a novelty right like maybe you just try it once as you said
[48:57.640 --> 49:02.680]  exactly like okay it's a lot of mozzarella but maybe that's all they need interesting i love cheese
[49:02.680 --> 49:07.880]  i would definitely be willing to try it here here well on deck bowing issues a new warning over the
[49:07.880 --> 49:13.160]  coronavirus and the major economic impact the outbreak will likely have plus what investors
[49:13.160 --> 49:17.800]  should take away from jay powell's latest comments before he testifies to congress again this morning
[49:17.800 --> 49:22.760]  we'll talk to former fed governor sarah bloom raskin that's coming up next and a reminder you
[49:22.760 --> 49:28.520]  can always watch or listen to us live on the go on the cnbc app world wide exchange is back in just
[49:28.520 --> 49:58.360]  a moment
[49:58.520 --> 50:05.800]  when it comes to your business internet which is more important
[50:09.320 --> 50:13.160]  okay wish i didn't have to choose like the more i think about it the more i want to jump
[50:13.160 --> 50:15.000]  to each room what if i said you can have it all
[50:16.600 --> 50:22.840]  concast business gives you connectivity that goes beyond that's speed reliability and security
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[50:28.600 --> 50:34.680]  call today comcast business beyond fast
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[51:01.880 --> 51:09.160]  next on squat box the action to quarterly numbers from lift what challenges and changes to the road
[51:09.160 --> 51:15.320]  map its dear investors to the rideshare company squat box today 6 a.m. eastern watch or listen
[51:15.320 --> 51:22.120]  live on the cnbc app it's time to change the way you think about money personal stories money
[51:22.120 --> 51:31.080]  tips strategies for saving and investing invest in you ready set grow cnbc and acorns go to cnbc.com
[51:31.080 --> 51:36.760]  slash invest in you big views big price tags and big problems it's been on the market for
[51:36.760 --> 51:45.160]  three years with no offers listening impossible tonight ten eastern cnbc get yours it's now time
[51:45.160 --> 51:50.920]  for the executive recap the headlines you need in 60 seconds fox con is aiming to restart half its
[51:50.920 --> 51:55.560]  production operations in china by the end of the month amid the coronavirus outbreak according
[51:55.560 --> 52:01.400]  to Reuters the company is working to boost that number to 80 in march fox con received approval
[52:01.400 --> 52:07.080]  from chinese authorities this week to reopen its largest plants meanwhile bowing is issuing a
[52:07.080 --> 52:11.720]  warning about the impact of the coronavirus speaking to reporters at the singapore air show a
[52:11.720 --> 52:16.920]  senior executive says the global air cargo industry is unlikely to grow this year because
[52:16.920 --> 52:22.200]  of challenges in china stemming from that outbreak bowing is also warning that the virus will hit
[52:22.200 --> 52:27.640]  airline revenues and profits shares of bowing down only fractionally and a federal judge has
[52:27.640 --> 52:33.160]  dismissed some of the charges against theranos founder elizabeth holmes the judge ruled patients
[52:33.160 --> 52:38.360]  were not deprived of any money or property by using the company's blood testing services
[52:38.360 --> 52:44.200]  and there was no evidence showing holmes directed doctors to make misrepresentations to their patients
[52:44.200 --> 52:50.200]  the judge did uphold wire fraud charges however against holmes well as stock features point to
[52:50.200 --> 52:55.000]  new records for wall street at the open investors also looking ahead to a second day of testimony
[52:55.000 --> 53:00.120]  from federal reserve chairman j pal expected to testify before the senate bank committee at
[53:00.120 --> 53:04.840]  nine a.m. eastern time today just one day after he said the central bank is closely monitoring
[53:04.840 --> 53:12.360]  the coronavirus outbreak the question for us really is what will be the effects on the u.s
[53:12.360 --> 53:17.480]  economy will they be persistent will they be material that's really the question i think we
[53:17.480 --> 53:22.840]  know there will be some effects on china through through some part of the first half of the year
[53:22.840 --> 53:28.520]  and china's close neighbors and trade major trading partners in europe as well as asia
[53:28.520 --> 53:32.600]  and we know that there will be some very likely be some effects on the united states i think it's
[53:32.600 --> 53:38.520]  just too early to say we have to resist the temptation to speculate on this and so we'll
[53:38.520 --> 53:42.840]  be watching that carefully again and the question we'll be asking is will these be persistent
[53:42.840 --> 53:49.000]  effects that could lead to a material reassessment of the outlook joining me now with morris federal
[53:49.000 --> 53:53.640]  is former federal reserve board governor and former deputy treasury secretary sarah bloom raskin
[53:53.640 --> 53:58.520]  she's also a cnbc contributor and duke university rubenstein fellow sarah good morning thank you for
[53:58.520 --> 54:03.960]  being here with us today you of course heard mr pal i'm sure you heard him say all of those things
[54:03.960 --> 54:09.080]  yesterday as we're trying to square up really the impact of the coronavirus saying we have to
[54:09.080 --> 54:13.800]  wait and see if it's material it seems to me that there's no question it will be material we just
[54:13.800 --> 54:22.680]  don't know perhaps to what degree that's right um uh this virus actually does have quite the potential
[54:22.680 --> 54:29.320]  to really uh have some big knock on effects if you think about certainly the impact the economic
[54:29.320 --> 54:35.720]  impact on china itself there is now speculation that that will knock off a couple of points
[54:35.720 --> 54:41.080]  of gdp growth there in terms of how you know in terms of how they measure it but the effects on
[54:41.080 --> 54:47.240]  the us um and on the trading partners for china are also really what we have to keep an eye on
[54:47.240 --> 54:52.520]  you heard chairman powell talk about these effects being looking to see whether they are persistent
[54:53.160 --> 55:01.240]  and material that is in fact um what the what the fed will look at um this is you know as i see it
[55:01.240 --> 55:07.720]  really kind of a double whammy because of course we're coming out of a situation where trade has
[55:07.720 --> 55:16.200]  been affected by the tariff wars and now we have um this uh you know this this virus to contend with
[55:16.200 --> 55:22.200]  from an economic growth perspective so i think i think this is actually um a serious headwind
[55:22.200 --> 55:26.520]  i think so too and i think it's going to be some time before we know we're so much more interconnected
[55:26.520 --> 55:31.080]  it seems now than even we were during the star's outbreak both the united states and china but
[55:31.080 --> 55:35.320]  really china with the rest of the world and their economy has certainly swelled to be much
[55:35.320 --> 55:39.640]  larger than it was then but the president of course sarah also kept up his attacks against
[55:39.640 --> 55:44.520]  j powell he was tweeting during yesterday's testimony quote when gerome powell started
[55:44.520 --> 55:49.960]  his testimony today the doubt was up 125 and heading higher as he spoke it drifted steadily
[55:49.960 --> 55:55.320]  downward as usual and is now negative 15 germany and other countries get paid to borrow money
[55:55.320 --> 56:02.200]  we are more prime but federate is too high dollar tough on exports oh sarah i don't think he's ever
[56:02.200 --> 56:07.160]  going to escape uh these tweets he's always going to be criticized and trump keeps pushing for this
[56:07.160 --> 56:12.280]  idea of negative rates what do you make of it all put together i guess both the president's
[56:12.280 --> 56:17.800]  president's criticism of powell and the idea of negative interest rates right and well the question
[56:17.800 --> 56:23.960]  of negative interest rates actually got questioned um you know in the in the context of the hearing
[56:23.960 --> 56:28.680]  yesterday and i thought i thought chairman powell was was was particularly articulate in
[56:29.320 --> 56:34.280]  taking negative interest rates off the table i mean he has made it clear that that is not
[56:34.280 --> 56:40.440]  going to be a tool in the toolbox that the fed is like more ammunition um he talked about the use
[56:40.440 --> 56:45.800]  of forward guidance the use of large-scale asset purchases not that these are being
[56:45.800 --> 56:53.240]  contemplated at the moment but you see the fed here starting to talk about its usual playbook
[56:53.240 --> 57:00.040]  um it should it need it um in terms of more accommodation so um i think the negative interest
[57:00.040 --> 57:07.000]  rate point was handled uh you know pretty clearly by chairman powell uh that is not going to be a
[57:07.000 --> 57:13.560]  tool that he is contemplating uh right now and i think you know the the president can tweet on
[57:13.560 --> 57:19.720]  and on as much as he wants about it it is a tool that is is has mixed results in terms of its use
[57:19.720 --> 57:26.120]  in other countries and i think its use in the us is uh something that is is not considered imminent
[57:26.120 --> 57:30.840]  before we go here powell did also highly what he sees is the biggest risk to us growth cyber
[57:30.840 --> 57:36.600]  crime if you can just take a minute we're going to play this for you the thing that that uh we
[57:36.600 --> 57:43.080]  worry about a lot is is cyber attacks i think we have a great game plan for traditional you know
[57:43.080 --> 57:47.960]  issues like bad loans and things like that it's more cyber attacks is really the the frontier
[57:47.960 --> 57:54.360]  where you worry sir what do you think about that how big of an issue is that it seems like so many
[57:54.360 --> 57:59.320]  businesses that we talk to at cmdc say yeah we're getting attacked basically every day we've just
[57:59.320 --> 58:04.040]  gotten better at sort of thwarting many of them but you know that's not at some point they're
[58:04.040 --> 58:10.440]  going to break through i should say that's right and the volume and the complexity uh the sophistication
[58:10.440 --> 58:16.120]  of these cyber attacks continues to increase we saw this i mean i saw this back at my time
[58:16.120 --> 58:22.760]  at treasury i mean this was something that is a mounting concern i think that chairman powell
[58:22.760 --> 58:29.800]  is correct in noting that the defensive posture of a lot of financial institutions is actually
[58:29.800 --> 58:36.440]  increasing and that's a good thing so from a defensive posture um a lot of the institutions
[58:36.440 --> 58:41.720]  do have good mechanisms in place to thwart the attacks but in terms of their coming
[58:41.720 --> 58:48.120]  they're coming fast and furious and they continue uh this is um a serious headwind i i would you
[58:48.120 --> 58:52.520]  know i would have probably answered that question right a little differently i think that there are
[58:52.520 --> 58:58.600]  other big risks on the horizon um and maybe they will get explored today uh from the senate side
[58:58.600 --> 59:04.440]  but in particular you saw chairman powell dodging around a little bit on some on on questions of
[59:04.440 --> 59:10.360]  climate change and financial stability and other you know and other kind of uh risk factors so
[59:10.360 --> 59:14.760]  many things to consider sarah bloom raskin thank you so much for being here with us this morning
[59:14.760 --> 59:19.800]  we'll speak to you again very soon that's it for worldwide exchange this morning squawk box begins
[59:19.800 --> 59:26.840]  right now good morning the nasdaq and s&p pushing the new highs but companies are now warning of
[59:26.840 --> 59:33.000]  supply disruptions related to the coronavirus outbreak feeling the burn in new hampshire
[59:33.000 --> 59:37.800]  senator sanders edging out pete bootage edge we're going to take you live to the granite state for
[59:37.800 --> 59:43.640]  the results and implications for investors and shares of bed, bath and beyond are plummeting
[59:43.640 --> 59:49.080]  the ceo is describing it as short-term pain we've got details and all of us straight ahead
[59:49.080 --> 59:53.720]  it's wednesday february 12th 2020 the spot box begins right now
[59:53.720 --> 01:00:11.320]  good morning everybody welcome to squawk box here on cmbc we're live from the nasdaq market
[01:00:11.320 --> 01:00:15.720]  site in time square i'm becky quick along with joe kernan and andrew ross sorkin let's take a
[01:00:15.720 --> 01:00:20.520]  look at the u.s equity futures at this hour you'll see right now that the futures are indicated higher
[01:00:20.520 --> 01:00:26.760]  in fact the dow indicated up by triple digits a gain of about 125 nasdaq up by 51 in the s&p
[01:00:26.760 --> 01:00:32.440]  up by 13 and this comes after the s&p 500 and the nasdaq both set new records once again yesterday
[01:00:32.440 --> 01:00:36.040]  during the trading session all three of the major averages were higher and the dow gave back most of
[01:00:36.040 --> 01:00:51.400]  those gains ended the day flat but again you're