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[00:00.000 --> 00:05.960]  NBC dot com slash invest in you next on squat box reaction to quarterly numbers from
[00:05.960 --> 00:10.860]  lift. What challenges and changes to the road map can steer investors to the right
[00:10.860 --> 00:16.720]  share company squat box today 60 a.m. Eastern. Watch a listen live on the CNBC app.
[00:19.120 --> 00:23.440]  It's 5 a.m. at CNBC global headquarters here is your 5 at 5 investors
[00:23.440 --> 00:28.200]  racing for fire open as fed chairman Jay Powell has backed a capital hill. What
[00:28.200 --> 00:32.160]  president Trump had to say about yesterday's testimony that's coming up and
[00:32.160 --> 00:37.200]  Boeing raising the red flag over a potential impact from the coronavirus outbreak
[00:37.200 --> 00:41.680]  lift shares sinking this morning. Why some investors say CEO needs to get his
[00:41.680 --> 00:46.760]  priorities in order. We speak with an early investor in the company and a new
[00:46.760 --> 00:51.000]  meeting for Maga. President Trump has to say about Silicon Valley's tech
[00:51.000 --> 00:55.960]  titans and a slim win in New Hampshire as Bernie Sanders claims victory in the
[00:55.960 --> 01:00.960]  grandest state yet again. It's Wednesday, February 12, 2020. And Robotic
[01:00.960 --> 01:02.480]  change begins right now.
[01:12.720 --> 01:15.720]  Good morning and welcome. I'm Courtney Reagan in this morning for Brian
[01:15.720 --> 01:19.520]  Sullivan. You're chart of the day. Kind of an ugly one. Sure. The bedbath
[01:19.520 --> 01:24.520]  and beyond sinking. Look at this more than 20% here. The company announcing
[01:24.520 --> 01:28.360]  preliminary guidance for its fourth quarter coming in well below expectations
[01:28.360 --> 01:31.880]  much more on that missed a moment. We're going to give you a look at how
[01:31.880 --> 01:36.000]  futures are looking on this Wednesday morning. Stocks do look to open in
[01:36.000 --> 01:39.400]  record territory here this morning with the Dow Jones industrial average
[01:39.400 --> 01:43.600]  indicated higher by more than 106 points. The S&P 500 higher by almost
[01:43.600 --> 01:49.000]  12 than the NASDAQ tacking on an extra 47 points in the early going. Let's
[01:49.000 --> 01:53.400]  get a check in the fixed income market. Take a look at the yield on bonds and
[01:53.400 --> 01:58.160]  look at the 10 year, which we're seeing take higher again here today at 1.6 to
[01:58.160 --> 02:03.440]  0 after we've seen that yield fall for several sessions in a row as perhaps
[02:03.440 --> 02:07.280]  flashing some morning signs that the equity market wasn't quite seeing. Let's
[02:07.280 --> 02:11.680]  go worldwide now and take a look at the green arrows really around the world in
[02:11.680 --> 02:15.960]  Asia, Japan, China. You name it pretty much higher across the board. Hang
[02:15.960 --> 02:19.920]  saying higher by nine tenths of a percent of Shanghai composite higher by about
[02:19.920 --> 02:25.880]  the same in the Japanese Nikkei adding on three quarters of a point and let's
[02:25.880 --> 02:30.360]  take a look at Europe in the early going. Also some green arrows across the
[02:30.360 --> 02:34.600]  world around the world in Europe, the German zetrodax higher by six tenths of a
[02:34.600 --> 02:38.400]  percent. Let's do 100 higher just marginally but two tenths of a percent. That
[02:38.400 --> 02:42.800]  counts as green and France higher by three tenths of a percent. Investors are
[02:42.800 --> 02:46.280]  waking up to a lot to chew on this morning. Frankly, Federal Reserve Chair
[02:46.280 --> 02:50.600]  MnJ Powell under renewed pressure from President Trump. He heads back to the
[02:50.600 --> 02:55.040]  Hill today. Among his concerns, the coronavirus, which he says the Central
[02:55.040 --> 02:59.640]  Bank is actively monitoring as companies like Boeing and caring for like new
[02:59.640 --> 03:04.360]  concerns over the outbreak, earning season remains at the forefront as well
[03:04.360 --> 03:09.200]  names like Cisco Walmart and deer. Those are still on deck and a far
[03:09.200 --> 03:13.760]  left win in New Hampshire last night for Bernie Sanders shaking up the
[03:13.760 --> 03:18.400]  Democratic presidential field. Joining me now, clearonomics founder and head of
[03:18.400 --> 03:22.720]  research James Liu. We got an awful lot to tackle here. James, let's start
[03:22.720 --> 03:27.160]  with Chairman Powell. What do you expect from him today when he heads back to
[03:27.160 --> 03:30.960]  Capitol Hill? Sort of more of what he said yesterday reiterated with the same
[03:30.960 --> 03:34.240]  or different words or a different message here today. Yeah, good morning Courtney.
[03:34.240 --> 03:36.960]  We think it's pretty much going to be the same message. I mean the message from
[03:36.960 --> 03:40.880]  the Fed is that the economy is in good shape. There are these big uncertainties in
[03:40.880 --> 03:44.920]  the world. As always, our last year it was trade. This year is the coronavirus.
[03:44.920 --> 03:48.280]  These uncertainties are very hard to measure. But you know, you look at last week's
[03:48.280 --> 03:52.520]  job support, very solid. And the underlying trend is still good. So there's
[03:52.520 --> 03:57.280]  not much more that the Fed can do at the moment other than staying put. You
[03:57.280 --> 04:01.480]  also look at the market reaction and where Fed from futures are. And while the
[04:01.480 --> 04:06.720]  market has cheered what the Fed has done over the last year, you also are seeing
[04:06.720 --> 04:10.360]  now the expectation that there will be some sort of rate cut. Maybe by the
[04:10.360 --> 04:13.480]  middle of the year and certainly at least one rate cut by the end of the year
[04:13.480 --> 04:16.600]  from the market. So that's something that's evolving over time and that's
[04:16.600 --> 04:20.320]  changed as uncertainties like coronavirus have taken shape. Does that feel
[04:20.320 --> 04:23.560]  appropriate to you to be talking about rate cuts again? I know that maybe what
[04:23.560 --> 04:26.840]  the market is expecting. But is that what the economic data tells you might be
[04:26.840 --> 04:29.800]  appropriate? So not from our perspective. So we think that we're in a
[04:29.800 --> 04:33.280]  position where a wait and see approach probably is appropriate. But of course,
[04:33.280 --> 04:36.920]  you know, the market over the last 10 years has been trained to expect the
[04:36.920 --> 04:40.920]  Fed put. And I think from an economic perspective, you know, obviously there's
[04:40.920 --> 04:45.120]  a human told a human tragedy around coronavirus that we shouldn't overlook. But
[04:45.120 --> 04:49.640]  economically speaking, coronavirus couldn't happen at a worse time. And that's
[04:49.640 --> 04:53.880]  because we had all this trade uncertainty affecting trade between US and China and
[04:53.880 --> 04:59.240]  the global economic picture last year. And now this year, that that issue, especially
[04:59.240 --> 05:02.600]  the spread of coronavirus around the world, could in fact have a toll on
[05:02.600 --> 05:05.600]  economic growth as well. So, you know, from a timing perspective, it's not
[05:05.600 --> 05:09.200]  great. But these are big uncertainties. They're very hard to measure. And so
[05:09.200 --> 05:12.400]  the Fed should probably stay put. Now, the irony, of course, is that the
[05:12.400 --> 05:14.960]  markets are all time high. And basically, you try to look through that
[05:14.960 --> 05:18.480]  at the moment. Absolutely. That is something that is so interesting and has a
[05:18.480 --> 05:21.760]  lot of us scratching our heads. I think the bond market was flashing maybe some
[05:21.760 --> 05:25.520]  warning signs that the equity market wasn't quite, but about a two-year
[05:25.520 --> 05:28.400]  point. It does seem as if we're looking through and Chairman Powell didn't use
[05:28.400 --> 05:32.240]  the word resilient. I believe yesterday when he was talking about the US
[05:32.240 --> 05:36.240]  economy's ability to sort of absorb some of these bigger global
[05:36.240 --> 05:40.240]  problems. Does that, do you still feel like we are resilient when it
[05:40.240 --> 05:43.840]  comes to the US economy, even after all these years of growth in a
[05:43.840 --> 05:47.440]  commentative policy? We think that's the case. So, the US, of course, has
[05:47.440 --> 05:51.760]  been the main engine of last decade for global growth. Now, the
[05:51.760 --> 05:55.440]  challenge is that if many investors expect a big
[05:55.440 --> 05:59.920]  resurgence in a global growth and also market performance, not just
[05:59.920 --> 06:02.960]  based on last year, but also for valuations are, then we will have to see
[06:02.960 --> 06:05.760]  other economies start to pick up slack. And so, you think back to
[06:05.760 --> 06:09.600]  a year, like 2017, when it wasn't just the US doing well, we had
[06:09.600 --> 06:12.800]  people talking about global coordinated growth, global synchronized
[06:12.800 --> 06:16.240]  growth. And that was a year when not just US markets perform well, but
[06:16.240 --> 06:18.880]  the emerging markets and developed markets also. So, I think that's a
[06:18.880 --> 06:22.000]  type of situation we would have to see. Of course, you know, the
[06:22.000 --> 06:25.120]  coronavirus does potentially dent that a little bit, but the
[06:25.120 --> 06:28.320]  reality is it's very hard to measure that effect. You think
[06:28.320 --> 06:31.360]  while SARS and really those are backward-looking academic
[06:31.360 --> 06:35.520]  studies, you can't just count up the number of items that weren't
[06:35.520 --> 06:39.680]  produced because of disease. It's also the deals that
[06:39.680 --> 06:42.240]  weren't done at the economic activity that could have happened, that
[06:42.240 --> 06:44.800]  didn't happen. That's incredibly hard to measure. Ultimately,
[06:44.800 --> 06:48.800]  speaking, you need this global growth to come back in order to justify
[06:48.800 --> 06:50.960]  what a lot of investors see in the market right now.
[06:50.960 --> 06:53.440]  All that makes a lot of sense. James, thanks for being here with us,
[06:53.440 --> 06:56.160]  come back to WorldLatic change, and he was updated when we have
[06:56.160 --> 06:58.720]  better estimates, maybe even if it isn't two years.
[06:58.720 --> 07:00.960]  Very, very sporty. Well, Senator Bernie Sanders is
[07:00.960 --> 07:05.600]  celebrating his first clear all the insulin when yesterday in yesterday's
[07:05.600 --> 07:08.800]  New Hampshire primary, the victory marks the second strong showing
[07:08.800 --> 07:12.000]  four Sanders as he and the remaining 2020 Democrats.
[07:12.000 --> 07:15.040]  Now, shift their focus to Nevada and South Carolina and be
[07:15.040 --> 07:20.400]  sees Alice Bar joins us again this morning. Good morning, Alice. Good
[07:20.400 --> 07:23.200]  morning, Courtney, and turnout was high here in New Hampshire
[07:23.200 --> 07:26.800]  higher than back in 2016. That's, of course, good news for Democrats as
[07:26.800 --> 07:30.160]  they're trying to engage voters. We are also seeing the top tier of
[07:30.160 --> 07:36.240]  candidates shifting as they head into the next round of voting.
[07:36.240 --> 07:40.400]  Thank you. Senator Bernie Sanders, riding high this morning off
[07:40.400 --> 07:43.600]  a first place finish in the first in the nation primary.
[07:43.600 --> 07:48.400]  This victory here is the beginning of the end,
[07:48.400 --> 07:54.480]  for Donald Trump. Former Mayor Pete Buttigieg coming in a close
[07:54.480 --> 07:59.280]  second roughly 4,000 votes behind. Thanks to you, a campaign that
[07:59.280 --> 08:06.720]  some said shouldn't be here at all, has shown that we are here to stay.
[08:06.720 --> 08:11.440]  And Senator Amy Klobuchar, placing third delivering on momentum from a strong
[08:11.440 --> 08:16.480]  debate performance and rocketing into the top tier. We have beaten the odds
[08:16.480 --> 08:23.520]  every step of the way. Senator Elizabeth Warren looking for a path forward
[08:23.520 --> 08:28.080]  after a disappointing fourth place finish. Our campaign is built
[08:28.080 --> 08:32.880]  to the long haul. While former Vice President Joe Biden landed in fifth
[08:32.880 --> 08:37.040]  having already left New Hampshire before results came in, he spoke last night
[08:37.040 --> 08:40.640]  from South Carolina, where he's counting on a rebound from a more
[08:40.640 --> 08:46.960]  diverse electorate. 99.9%. That's the percentage of African
[08:46.960 --> 08:51.440]  American voters who have not yet had a chance to vote in America.
[08:51.440 --> 08:56.880]  You know, let's go on. The field is narrowing. Businessman Andrew Yang and
[08:56.880 --> 09:01.040]  Senator Michael Bennett, both announcing they are dropping out as winners and
[09:01.040 --> 09:05.520]  losers emerge from New Hampshire, sharpening the picture of the race to no
[09:05.520 --> 09:10.880]  November. At this point coming out of the first two contests, Pete Woodage
[09:10.880 --> 09:14.720]  still has a slight lead in the delegate count, which will ultimately decide the
[09:14.720 --> 09:18.080]  nominee, though of course there's still a long way to go until that decision,
[09:18.080 --> 09:21.920]  Courtney. Absolutely. We've got a long road ahead. Alice, thanks for being here
[09:21.920 --> 09:26.080]  with us this morning. Well, when we come back, forget travel, retail,
[09:26.080 --> 09:30.560]  and tech, yet another industry, sounding the alarm over the coronavirus outbreak,
[09:30.560 --> 09:35.200]  racing for a possible supply chain shock. A mixed morning has soft bank shares
[09:35.200 --> 09:41.600]  surging to a seven-month high. Check out that, higher by 12 percent.
[09:41.600 --> 09:45.280]  Fight out, why next? And later, former Federal Reserve Board Governor Sarah
[09:45.280 --> 09:49.280]  Blue Braskin is here, or take on Powell's day-one testimony. And what we can
[09:49.280 --> 09:54.080]  expect from day two, a very busy hour, still head, one roll like change, returns.
[09:54.080 --> 10:04.160]  Can I find an investment firm that has a truly long-term view? It begins by being
[10:04.160 --> 10:09.600]  privately owned, with more than 85 years of experience over multiple market cycles.
[10:11.040 --> 10:14.240]  With portfolio managers who are encouraged to do what's right,
[10:14.240 --> 10:19.520]  over what's popular, focused on helping me achieve my investors' unique goals.
[10:19.520 --> 10:22.960]  Can I find an investment firm that gets long-term the way I do,
[10:22.960 --> 10:28.400]  with capital group, I can. Talk to your advisor or consultant for investment risks and information.
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[10:58.240 --> 11:04.720]  free. Next on Squatbox. Reaction to quarterly numbers from lift. What challenges and changes to the
[11:04.720 --> 11:10.480]  road map can steer investors to the right-chair company? Squatbox today, 6 a.m. Eastern.
[11:10.480 --> 11:17.600]  Watch a listen live on the CNBC app. Microsoft Amazon alphabet, igniting tech.
[11:17.600 --> 11:22.640]  Goldman Sachs lead internet analyst, examines what could push the sector even higher.
[11:22.640 --> 11:27.600]  Squat Valley 11 a.m. Eastern today. Watch a listen live on the CNBC app.
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[12:30.640 --> 12:34.240]  Welcome back. Let's get to check out the latest news surrounding the coronavirus outbreak.
[12:34.240 --> 12:36.880]  We're Health Solomon is here. We're Health has a look in today.
[12:36.880 --> 12:41.200]  Hi, Courtney. So China is now reporting the lowest number of new coronavirus cases
[12:41.200 --> 12:45.760]  in the Hubei Province since the end of January. That of course is the epicenter of the outbreak.
[12:45.760 --> 12:51.760]  So officials say that 1,068 new cases are confirmed. That's down from a peak of more than 3,000
[12:51.760 --> 12:57.280]  on February 4th. However, there have also been 94 new deaths reported in the region.
[12:57.280 --> 13:00.960]  Drug makers are also bracing for potential supply disruptions from China.
[13:00.960 --> 13:04.880]  The CEO of one of India's largest pharmaceutical companies this morning,
[13:04.880 --> 13:10.080]  supplies would start running out by the end of this month unless China research production.
[13:10.080 --> 13:16.000]  China makes compounds that are used in antibiotics, painkillers, and also diabetes drugs.
[13:16.000 --> 13:19.760]  And that Chairman J. Powell commented on the impact of the coronavirus.
[13:19.760 --> 13:24.240]  Could have an impact on the global economy to usifying before Congress yesterday.
[13:24.240 --> 13:27.680]  Powell said that the U.S. economy appears to be resilient as we just
[13:27.680 --> 13:32.160]  are reporting say to global headwinds, but that the Fed is also closely monitoring the situation.
[13:32.160 --> 13:41.520]  We know there will be effects on China through some part of the first half of the year,
[13:41.520 --> 13:47.200]  and China's close neighbors and major trading partners in Europe as well as Asia.
[13:47.200 --> 13:50.800]  And we know that there will be some very likely some effects on the United States.
[13:50.800 --> 13:52.400]  I think it's just too early to say.
[13:52.400 --> 13:57.600]  Also, shares of Gucci's parent company carrying our higher today after reporting strong
[13:57.600 --> 14:02.720]  fourth quarter results, but the company also says that it has seen a serious drop in customer traffic
[14:02.720 --> 14:07.120]  in China, carrying says that it's shifting some inventory to other countries.
[14:07.120 --> 14:09.520]  Cheers of Foxconn, rising more than three percent today.
[14:09.520 --> 14:10.480]  This is on for ports.
[14:10.480 --> 14:14.800]  It aims to resume half of its production in China by the end of the month.
[14:14.800 --> 14:19.280]  Waiter says that Foxconn is also shooting to be at 80 percent of capacity by some time
[14:19.280 --> 14:22.240]  in March. You can see shares are up about three percent in pre-market.
[14:22.240 --> 14:26.560]  And Boeing is warning that the virus will hit the airline industry's profit this year.
[14:26.560 --> 14:29.360]  Speaking to reporters at the Singapore air show,
[14:29.360 --> 14:34.720]  a senior executive says that's due to travel restrictions and a 70 percent drop in capacity
[14:34.720 --> 14:36.000]  by Chinese airlines.
[14:36.000 --> 14:38.400]  And Courtney, you and I talked about this on rapid fire yesterday.
[14:38.400 --> 14:42.240]  Of course, if flights aren't going into China, of course, that hurts the airlines,
[14:42.240 --> 14:45.280]  but also a lot of the companies that do really well in those airports.
[14:45.280 --> 14:48.160]  Absolutely. I know the ripple effects, I think, are really hard to measure.
[14:48.160 --> 14:51.920]  And I have to actually give some of these companies credit for trying to measure it,
[14:51.920 --> 14:54.560]  even giving us some of these number 70 percent, 80 percent,
[14:54.560 --> 14:57.920]  whether they're talking about a revenue hit, trying to manage expectations.
[14:57.920 --> 15:00.320]  Yeah, and I think it's just going to be hard to really know.
[15:00.320 --> 15:02.320]  And as James Lewis, our last guest was saying,
[15:02.320 --> 15:05.840]  we may not know for several years down the road with the collective impact rate.
[15:05.840 --> 15:09.520]  It's often pretty backward-looking, but we've got to try to figure it out now.
[15:09.520 --> 15:10.720]  Let's be sure we're out. Sure.
[15:11.760 --> 15:15.840]  Okay, well, don't forget to watch CNBC's special coverage of the outbreak.
[15:15.840 --> 15:18.960]  That's breaks down the fast-moving developments and the market impact.
[15:18.960 --> 15:22.960]  That's tonight at 7 p.m. Eastern Time.
[15:22.960 --> 15:28.720]  We'll still on deck. Why investors may want to stay away from that beyond section this morning.
[15:31.840 --> 15:35.840]  Today's big number, $14 trillion.
[15:36.560 --> 15:39.680]  That's the total household debt in the US.
[15:39.680 --> 15:43.280]  It grew over $600 billion in 2019,
[15:43.280 --> 15:54.320]  making it the biggest annual increase in 12 years.
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[18:15.200 --> 18:23.920]  Let's get a check on some of the stocks on the move.
[18:23.920 --> 18:30.160]  Today, SoftBanks third quarter profit was nearly wiped out by losses of its $100 billion
[18:30.160 --> 18:34.000]  vision at its $100 billion vision fund, I should say.
[18:34.000 --> 18:37.920]  The fund posting and operating loss of more than $2 billion.
[18:37.920 --> 18:41.600]  CEO Masha-San, defending SoftBanks performance,
[18:41.600 --> 18:45.520]  saying the vision fund has gained about $3 billion on its investments.
[18:45.520 --> 18:46.720]  Since the beginning of the year,
[18:46.720 --> 18:50.560]  now this report did come after the close of Japanese trading,
[18:50.560 --> 18:53.120]  softBanks of Sprint merger with T-Mobile,
[18:53.120 --> 18:54.800]  a lot going on there for SoftBanks.
[18:54.800 --> 18:59.680]  Now, Western Union is reporting fourth quarter earnings in revenue that missed forecast.
[18:59.680 --> 19:04.240]  The company says the stronger dollar negatively impacted revenue.
[19:04.240 --> 19:06.560]  You can see shares down more than 6%.
[19:06.560 --> 19:10.800]  And shares a bedbath of beyond a few plunging by more than 20%.
[19:10.800 --> 19:13.920]  And actually, down more than 25% after the retailer said,
[19:13.920 --> 19:17.040]  fourth quarter sales were hit by increased promotions,
[19:17.040 --> 19:19.200]  falling traffic and inventory issues,
[19:19.200 --> 19:21.680]  same store sales in December and January.
[19:21.680 --> 19:25.440]  Those dropped more than 5% or in that was more than expected.
[19:25.440 --> 19:27.680]  The CEO says the company is experiencing, quote,
[19:27.680 --> 19:31.440]  short-term pain and efforts to stabilize the business.
[19:31.440 --> 19:34.080]  That CEO is still sort of getting speed under him,
[19:34.080 --> 19:36.240]  trying to figure out what that business is all about.
[19:36.240 --> 19:37.920]  And frankly, how to fix it.
[19:37.920 --> 19:41.040]  Well, as we had to break President Trump giving his maga slogan,
[19:41.040 --> 19:44.160]  new meaning yesterday.
[19:44.160 --> 19:46.800]  And we have four trillion dollar companies.
[19:46.800 --> 19:50.240]  One is Microsoft, one is Apple, one is Google, one is Abyss.
[19:50.240 --> 19:53.920]  So you have Amazon, Google, Apple, and Microsoft.
[19:53.920 --> 19:57.600]  And so you have an M, you have an A, you have a G, and you have an A.
[19:57.600 --> 20:00.480]  You have a Mac guy.
[20:00.480 --> 20:03.520]  The comments coming just hours after the FTC expanded,
[20:03.520 --> 20:07.600]  it's anti-trust investigation into Big Tech over past acquisitions
[20:07.600 --> 20:10.080]  that may have hurt competition, consumers,
[20:10.080 --> 20:12.080]  and evaded regulatory scrutiny.
[20:12.080 --> 20:14.720]  We're back after this.
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[21:18.320 --> 21:21.360]  Trump's Taurus brought the Chinese to the table for a phase one trade deal
[21:21.360 --> 21:24.800]  that opened the door for US companies that went to be fairly over there.
[21:24.800 --> 21:28.160]  If you read the 100 page agreement, you'll see many opportunities for businesses
[21:28.160 --> 21:29.920]  that could help balance our trade deficit.
[21:29.920 --> 21:33.200]  Watch or listen live on the CNBC app.
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[22:56.880 --> 22:59.520]  Let's get a check on this morning's other headlines.
[22:59.520 --> 23:02.640]  NBC's Philip Anna is in New York with the latest Good Morning Philip.
[23:02.640 --> 23:06.720]  Hey, Courtney Good morning, and just a moment we will tell you why that song was playing.
[23:06.720 --> 23:09.280]  A stunning turn of events in the Roger Stone case.
[23:09.280 --> 23:13.440]  Attorney General William Barr in his top AIDS at the Justice Department intervened,
[23:13.440 --> 23:17.680]  reversing a stiff sentencing recommendation that federal prosecutors had filed.
[23:17.680 --> 23:21.600]  The decision coming after a tweet from the president called the 7th and 9-year
[23:21.600 --> 23:24.960]  recommendation, quote, a miscarriage of justice.
[23:24.960 --> 23:29.040]  All four prosecutors in the case have now dropped out in protest of the move.
[23:29.040 --> 23:31.200]  And one is leaving the justice department all together.
[23:31.200 --> 23:34.880]  Actor Jesse Smollett is facing new charges this morning.
[23:34.880 --> 23:40.480]  The Empire star faces a new six-count indictment, charging he filed four separate false reports
[23:40.480 --> 23:45.280]  to Chicago police when he claimed last January that two math gunmen attacked him,
[23:45.280 --> 23:50.560]  insulted him with homophobic and racist slurs, and then looped a new surround his neck.
[23:50.560 --> 23:55.280]  The special prosecutor says a new investigation was launched after similar charges were abruptly
[23:55.280 --> 23:56.480]  dropped last year.
[23:56.480 --> 24:01.520]  Attorney's for some, for some a let have not yet responded. And it looks like the
[24:01.520 --> 24:07.360]  rhinestone cowboy is trading in his horse for Toyota. This mad from Crimea covered his car in
[24:07.360 --> 24:14.080]  those tiny gems 400,000 to be exact. Took him six months to complete a sparkly project,
[24:14.080 --> 24:18.800]  but he says it was a labor of love, and he now plans to sell that car. He says that it would be
[24:18.800 --> 24:24.320]  a great prop for photo shoots, although Courtney, I have no idea how he'd watch that.
[24:24.320 --> 24:30.320]  So Instagram worthy though, I like it. Sparkly, I mean imagine all the photos you could take with
[24:30.320 --> 24:34.160]  that car. Thank you. You totally bedazzled. Thank you, Philip.
[24:34.720 --> 24:40.400]  Let's tell to come. My son say lift needs to get his priorities in order. As that stock falls
[24:40.400 --> 24:46.640]  more than 4% this morning, plus the Carlos Goansaga, far from over. As Nissan takes a new
[24:46.640 --> 24:51.600]  swipe, but it's housed in former chairman. And a programming note, don't miss a CBC exclusive
[24:51.600 --> 24:57.760]  ACVS Health CEO Larry Marlo on closing bell today. As that company prepares to release results
[24:57.760 --> 25:01.440]  just after 7am. Eastern time. Worldwide exchange is back after this.
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[27:32.560 --> 27:45.120]  income at protectedincome.org. Stocks look poised to build on record highs as investors prep themselves around two of Jay Powell on the health
[27:45.120 --> 27:51.280]  futures are higher. Bernie Sanders on top of the 2020 Democratic field following the win in New Hampshire,
[27:51.280 --> 27:56.240]  what his rise could mean for your money. And speaking of winners, the Westminster dog show
[27:56.240 --> 28:02.480]  crowns its champion, the pup that took best and show as the second half of World Wide Exchange starts now.
[28:12.240 --> 28:16.240]  Welcome back to World Wide Exchange. I'm Courtney Reagan in this morning for Brian Sullivan.
[28:16.240 --> 28:21.600]  Here's our stock features are looking halfway through the 5am hour. We gave you a sneak peek. We said they were
[28:21.600 --> 28:26.480]  higher and the Dow Jones industrial averages indicating a higher open to the tune of 106 points,
[28:26.480 --> 28:32.400]  the S&P 500 higher by 12 and then as Dex said to add about 46 points. Another busy day, though,
[28:32.400 --> 28:38.400]  of course ahead with Fed Chairman's testimony again on the hill. Corona virus earnings and the new
[28:38.400 --> 28:43.200]  Hampshire primary results all of that on investors radars. Let's take a look at the bond market
[28:43.200 --> 28:49.920]  the yield on the 10 year sitting at 1.614% taking slightly higher from the yield yesterday. Let's get a
[28:49.920 --> 28:55.360]  check on the Asian markets. We saw green arrows mostly around the world. And as you can see across
[28:55.360 --> 29:01.440]  the board in Asia with Shanghai, Hanks and the Japanese Nikkei all higher just under 1% though.
[29:01.440 --> 29:06.320]  European markets also indicating or actually should say they are open, right? There are a couple
[29:06.320 --> 29:10.480]  hours ahead of us, so they're higher. We've got the Germans at your Dex higher by 6 cents of a
[29:10.480 --> 29:15.360]  percent, puts you 100, higher by 3 cents of a percent and France is higher by 3 cents of a
[29:15.360 --> 29:19.680]  percent as well. Let's get a look at some of the other top stories that we're following this morning.
[29:19.680 --> 29:23.040]  For Health Solomon is here. Hi, Rell. Hi, Courtney. So the saga between
[29:23.040 --> 29:28.080]  Nissan and Carlos Gone continues. So Nissan has filed a civil lawsuit in Japan against its former
[29:28.080 --> 29:33.440]  Chairman Carlos Gone. Y'all to make her is seeking an initial amount of $90 million in the suit.
[29:33.440 --> 29:39.200]  The company says it's looking to recover monetary damages inflicted by Gone as a result of
[29:39.200 --> 29:45.040]  quote years of misconduct and fraudulent activity. Google kicks off a landmark legal case in Europe
[29:45.040 --> 29:50.240]  today. During the three-day hearing at Europe's second highest court, the company will seek to overturn
[29:50.240 --> 29:56.640]  three European Union anti-trust funds that total roughly $9 billion decision is not expected
[29:56.640 --> 30:02.400]  until next year. And the federal aviation administration is admitting that it has not effectively
[30:02.400 --> 30:07.920]  overseen systems for managing safety risks that Southwest Airlines. So this follows the new report
[30:07.920 --> 30:13.600]  from the U.S. Department of Transportation's Office of Inspector General that blasted the FAA.
[30:13.600 --> 30:19.920]  The agency says that local FAA managers responsible for monitoring Southwest failed to ensure that
[30:19.920 --> 30:26.000]  the carrier complied with mandatory maintenance standards while incorporating 88 use jets into its
[30:26.000 --> 30:31.520]  fleet. Sure, the Southwest are lower this morning as we can see down about 1.2% in pre-market.
[30:31.520 --> 30:35.360]  Courtney. Well, thank you very much. We're going to see you back a little later.
[30:35.360 --> 30:39.760]  Well, the 20-trumpet Democrats are turning their attention to Nevada and South Carolina.
[30:39.760 --> 30:44.080]  After Senator Bernie Sanders victory in the New Hampshire primary, Sanders went put
[30:44.080 --> 30:49.360]  him near the top of the party's fractured presidential field, which is now smaller after yesterday's
[30:49.360 --> 30:54.320]  contest. Seeing B.C.'s K-let town, she joins us now. K-let, can you break down sort of where
[30:54.320 --> 30:59.760]  things stack up after the primary? It hasn't been so clear to all of us all along the way. Who's
[30:59.760 --> 31:07.440]  really the leader? Well, Sanders is victorious in New Hampshire after a clear victory last night
[31:07.440 --> 31:16.960]  after a chaotic run in Iowa just a week ago, Courtney with 25.9% of the votes. Sanders can claim
[31:16.960 --> 31:22.480]  victory here, although notably his support in the state has been significantly eroded by the
[31:22.480 --> 31:27.760]  entrance of South Bend Mayor Pete Buttigieg and Minnesota Senator Amy Klobuchar, who essentially
[31:27.760 --> 31:34.320]  split the support that Sanders received here in the state in the 2016 cycles. Pete Buttigieg with
[31:34.320 --> 31:41.040]  24.4% and Klobuchar with just shy of 20% after being largely written off just a week ago
[31:41.040 --> 31:45.840]  because of a lower tier. Trying to figure out whether she can sustain this momentum and how.
[31:45.840 --> 31:53.040]  Here's the Senator in New Hampshire last night. And tonight in New Hampshire, as everyone had
[31:53.040 --> 32:03.120]  counted us out, even a week ago. Thank you, Pundits. I came back and we delivered.
[32:06.800 --> 32:11.360]  Because of the fractured field, perhaps many were surprised at the low finish of Senator
[32:11.360 --> 32:17.120]  Elizabeth Warren and former Vice President Joe Biden, who with lower than 15% of support here in
[32:17.120 --> 32:23.600]  New Hampshire did not cross the threshold to get any delegates. Biden has already left New Hampshire
[32:23.600 --> 32:29.520]  to start campaigning in South Carolina, which is the next presidential state contest on February
[32:29.520 --> 32:36.960]  22nd. He acknowledged that he has not been performing well in the race, but is and Latinos
[32:36.960 --> 32:41.520]  to hopefully improve his numbers. And finally, because of the performance in New Hampshire,
[32:41.520 --> 32:48.000]  we are seeing some presidential campaigns suspended. Both Andrew Yang and Senator Michael Bennett
[32:48.000 --> 32:52.480]  saying last night that it would be the end of the road for their campaigns. So we are seeing
[32:52.480 --> 32:58.080]  the race narrow slightly Courtney, but we still have more than a handful in the running.
[32:58.080 --> 33:02.560]  Yeah, Kayla, and yesterday I know you were telling us that at least that sort of ceremonial first
[33:02.560 --> 33:08.400]  votes they went to Mayor Bloomberg, but I didn't hear you sort of mention how it all shook out for him.
[33:08.400 --> 33:17.760]  I guess that was all he got. Yeah, and certainly that was more of a novelty vote,
[33:17.760 --> 33:22.400]  Dixville, not just casting a handful of votes. Certainly he has been spending
[33:22.400 --> 33:27.280]  add money here in the state. He has been gaining traction in national polls. But Courtney,
[33:27.280 --> 33:32.320]  he hasn't really been spending any time in the state. He may in the future, there are some
[33:32.320 --> 33:38.400]  reports that he is increasing his staff here in New Hampshire and opening an office here,
[33:38.400 --> 33:44.320]  but he has not really been campaigning here at all. He will appear on his first debate stage
[33:44.320 --> 33:50.720]  of the cycle next week in Nevada. That is certainly something every campaign is preparing for.
[33:50.720 --> 33:55.040]  This is so interesting, Kayla. Thank you very much for bringing it to us this morning.
[33:55.040 --> 33:58.880]  This is going to continue to unfold in the weeks in the months ahead.
[33:58.880 --> 34:02.960]  We're more on Senator Sanders victory and what it means for the election and your money,
[34:02.960 --> 34:07.280]  I'm joined by Jeff Mills. He's chief investment officer at Bryn Mar Trust and Jimmy
[34:07.280 --> 34:12.880]  Peppa Cookis, economic analyst at the American Enterprise Institute, both of these gentlemen,
[34:12.880 --> 34:17.200]  our CNBC contributors. Jimmy, I guess I'm going to start with you just to give us kind of
[34:17.200 --> 34:21.840]  the lay of the land and how you think everything shook up last night's Winderstand, Mr. Sanders
[34:21.840 --> 34:26.880]  won, but by a relatively narrow margin. So what does this mean going forward? Biden's already moved
[34:26.880 --> 34:31.440]  on to South Carolina? What's happening here? Who's going to be the Democratic frontrunner?
[34:31.440 --> 34:36.000]  Well, what happened was that we had a frontrunner who as it turns out is really bad and
[34:36.000 --> 34:40.080]  running for president. I don't think Joe Biden's ever done better than about a fourth place
[34:40.080 --> 34:45.360]  finishing a primary. He looks like he barely has a pulse. We have a very weak frontrunner
[34:45.360 --> 34:52.640]  in a very fractured field and listen, if you were going to come up with a scenario where somebody
[34:52.640 --> 34:58.400]  who has unlimited money to spend can jump in, shake the whole thing up, maybe when,
[34:58.400 --> 35:03.680]  maybe create a, you know, a brokered convention next summer. That's exactly what you're seeing.
[35:03.680 --> 35:08.480]  You mentioned Mike Bloomberg at the end. I don't know what, I don't know what his scenarios
[35:08.480 --> 35:12.400]  were that he ends up as a Democratic nominee, but they couldn't look much better than what's
[35:12.400 --> 35:17.040]  happening right now. And so Jeff, now that we hear everything Jimmy has to say and he's talking
[35:17.040 --> 35:20.960]  about a fractured field, I guess it's a little hard for investors to sort of make some
[35:20.960 --> 35:26.160]  advance their bets with their money, but if it is Bernie Sanders, I mean, you couldn't be
[35:26.160 --> 35:30.960]  further different from the situation we have right now in the White House as far as economic policy
[35:30.960 --> 35:37.280]  is concerned. Yeah, no question, but I think the market has it about right. You know, it continues
[35:37.280 --> 35:42.560]  to levitate even as Sanders has risen in the polls, but I think the bottom line is that no
[35:42.560 --> 35:47.760]  president has lost reelection when they've avoided a recession in the two years prior to that
[35:47.760 --> 35:53.360]  reelection bid. So, you know, in my estimation, you have a bottoming of global manufacturing.
[35:53.360 --> 35:58.320]  It looks like leading economic indicators are inflecting higher. If you look at earnings as an
[35:58.320 --> 36:04.720]  example, usually guidance for 2020 at this point in time would have been down by about 1.4%
[36:04.720 --> 36:10.400]  guidance is only down by about 4% so far. So fundamentally things look good, which means we
[36:10.400 --> 36:15.040]  likely avoid a recession leading into reelection. So I think investors are looking toward
[36:15.040 --> 36:20.960]  another president Trump victory here and usually when the incumbent wins on average the S&P 500
[36:20.960 --> 36:26.800]  is up about 10% when the incumbent loses usually up about 3% so a big gap there, but if you're
[36:26.800 --> 36:30.960]  playing the odds, it looks like a reasonably good scenario for markets and I think that's how investors
[36:30.960 --> 36:35.760]  are acting at the current time. Yeah, you know, I mean polls show that we're suggesting that
[36:35.760 --> 36:40.880]  Bernie Sanders can be president Trump. A lot of investors look at those betting markets, those
[36:40.880 --> 36:46.000]  betting markets have Trump the favor and even if Trump should lose, you need to have a president
[36:46.000 --> 36:50.320]  Sanders, you know, we're not going to get a well tax probably on constitutional. We're not going
[36:50.320 --> 36:54.240]  to suddenly, we're not going to, you know, all all private insurance companies. So I think they're
[36:54.240 --> 36:59.600]  looking at it's an unlikely scenario that Bernie Sanders wins. It's even more unlikely scenario
[36:59.600 --> 37:04.880]  that we go hashtag full socialism. And Jeff, as you follow along, you know, you said you gave
[37:04.880 --> 37:11.040]  us some stats there about what happens when incumbent presidents win and then if they lose, the S&P 500
[37:11.040 --> 37:19.200]  is up about 56% since Trump has been in office. I mean, what would market say about sort of
[37:19.200 --> 37:23.840]  looking at this very fracture field? I guess I'm still just not convinced that the markets are
[37:23.840 --> 37:29.200]  going to behave the same way if the candidate is Bernie Sanders versus if the Democratic candidate
[37:29.200 --> 37:34.880]  is a Mike Bloomberg. Yeah, look, I mean, Jim mentioned it, right? If you look at the national polling,
[37:34.880 --> 37:40.480]  I think Sanders is ahead of Trump by something like 4%. And that gap has actually widened a little
[37:40.480 --> 37:46.880]  bit. So I do think that even if it's just for a period of time, investors may need to react in
[37:46.880 --> 37:52.240]  a way that, you know, supposes that there could possibly be a Bernie Sanders president. So I think
[37:52.240 --> 37:57.200]  it could cause volatility in the near term. And honestly, I've been surprised that the catalyst
[37:57.200 --> 38:01.520]  the markets have been given thus far, whether it's coronavirus or Sanders surging in the polls
[38:01.520 --> 38:06.000]  hasn't done more to shake the markets. I mean, if you look at what's going on right now,
[38:06.000 --> 38:12.080]  you've got the top 50 names in the S&P 500, some 13% above their long term moving average.
[38:12.080 --> 38:16.960]  If you look under the surface, there's some breath deterioration. So we had 80% of names above
[38:16.960 --> 38:22.640]  the 50 day moving average now only 60. So I think in the near term, whether it's the coronavirus,
[38:22.640 --> 38:26.000]  whether it's something in public term prediction. I think if you look out ahead,
[38:26.000 --> 38:30.880]  it's just difficult to be too negative on a market where the liquidity backdrop is what it is,
[38:30.880 --> 38:34.560]  view what central banks are doing. They continue to stand at the ready. And like I said,
[38:34.560 --> 38:38.800]  I think fundamentals on balance are actually looking better, not worse.
[38:38.800 --> 38:43.520]  Jimmy looking forward as these primary contests roll on. Do you think we're going to continue
[38:43.520 --> 38:47.920]  to see such a fracture field or these campaigns going to start to pull together and voters
[38:47.920 --> 38:51.600]  start to sort of aggregate towards one candidate? Or is this just the way it's going to be
[38:51.600 --> 38:56.480]  until we get to, like you said, the possibility of a poker convention? Yeah, listen, I think
[38:56.480 --> 39:01.760]  I think if there wasn't a Mike Bloomberg sort of looming out there, you'd say at some point,
[39:01.760 --> 39:07.840]  listen, Sanders has, you know, he's won the votes in the caucus and the primary. The next couple
[39:07.840 --> 39:13.040]  states look much better than him. I mean, he kind of, in a normal situation, he kind of should be
[39:13.040 --> 39:18.080]  the Democratic nominee. People don't believe it because of his age, because of the socialism tag.
[39:18.080 --> 39:24.560]  And because we have this age bomb of money about to explode in this primary over the next few weeks,
[39:24.560 --> 39:29.040]  that's why I think this is still going to be a very topsy-turvy field for quite a long time.
[39:29.040 --> 39:33.120]  Jeff Mills, Jimmy Patthakookas, thank you both for joining us this morning. You know,
[39:33.120 --> 39:36.800]  we're going to keep talking to you for the months to come because we have a lot to figure out.
[39:36.800 --> 39:42.480]  It seems. Well, shares of lift, tumbling despite the company posting results that beat
[39:42.480 --> 39:47.440]  analysts estimates, fourth quarter revenue topping $1 billion for the first time ever.
[39:47.440 --> 39:52.320]  Investors, though, thank Closer attention to the stock following Uber's fourth quarter beat
[39:52.320 --> 39:58.320]  and updated profitability target shares of lift down 4%. CEO Logan Green didn't update
[39:58.320 --> 40:03.200]  lift's profitability timeline, but he did make it clear that it was among the key themes
[40:03.200 --> 40:09.680]  the company is focused on this year. We've expected to deliver continued strong topline growth
[40:09.680 --> 40:15.440]  in 2020 while also making progress on our path to profitability. As we've just got some
[40:15.440 --> 40:21.120]  prior calls, there are three key themes that were focused on. First is product innovation,
[40:21.120 --> 40:26.960]  second is profitable growth, and third is operating leverage. Joining me now, San Toshra,
[40:26.960 --> 40:31.680]  how he has had a research at Manhattan Venture Partners, his firm wasn't early investor in
[40:31.680 --> 40:37.440]  lift. Okay, so you just heard Logan Green profitability number two on his list. Should it be number one?
[40:38.480 --> 40:40.400]  Well, good morning. Good morning. Good morning.
[40:40.400 --> 40:45.040]  Thank you, thank you again. I think it's no, they're on the right track. They're not in a rush.
[40:45.040 --> 40:49.280]  They don't want to pull in the timeline. And that's one of the reasons why we invested right
[40:49.280 --> 40:54.960]  from the beginning. It's a pure play with a focus strategy, very disciplined strategy.
[40:54.960 --> 40:59.200]  So I think that's what they're doing. They're executing to that strategy. They're not in a rush.
[40:59.200 --> 41:04.480]  Like he said, profitable growth until the last quarter of 2021, they will be profitable.
[41:04.480 --> 41:09.200]  So I trust the numbers. I trust the CEO. So I think he's on the right track.
[41:09.200 --> 41:14.640]  And this quarter was a classic beaten race, fourth quarter right off the gate doing great with
[41:14.640 --> 41:19.120]  big numbers. So I think this company is on the right track. And our thesis is proving out that
[41:19.120 --> 41:22.960]  this is the way to go. Is there a early investor? Are you currently an investor in lift?
[41:22.960 --> 41:28.400]  No, we are not. I mean, we distribute the shares after the expiration. But we were early investors,
[41:28.400 --> 41:32.720]  like I said it. Okay. Okay. And so you mentioned that lift is a pure play. And you mean,
[41:32.720 --> 41:38.720]  because they don't have a lift eats, like an Uber eats. But some people point to that is actually
[41:38.720 --> 41:42.320]  a really good thing for Uber. You don't think lift needs that. No, they don't need that.
[41:42.320 --> 41:46.720]  I mean, Uber eats. It eats businesses good, but it's competitive. That's the thing about Uber.
[41:46.720 --> 41:50.400]  I mean, Uber, it's a different game. It's a platform. It has number of other businesses.
[41:50.400 --> 41:56.400]  Not all profitable. We don't know when they'll be profitable. But it's a broad platform.
[41:56.400 --> 42:00.880]  But I think the way to go is the right-sharing business in North America, which has the best
[42:00.880 --> 42:07.040]  unit economics. So this is right focused very well with the optionality later on of going into other
[42:07.040 --> 42:11.600]  businesses. I would rather go that way than go this way. Because there is lot more to do here.
[42:11.600 --> 42:16.640]  The market is big. There's a huge opportunity out there. It's still lot more to go.
[42:16.640 --> 42:21.600]  Still early stages. So I think they need those resources and the attention to execute here.
[42:21.600 --> 42:26.400]  And then later on, see, try to go into other business. If needed, but they don't need to.
[42:26.400 --> 42:31.040]  So really important part of North America is California, because it's a huge state. And we've got this
[42:31.040 --> 42:35.600]  gig worker law on the books that these ride-sharing companies and a number of others are just
[42:35.600 --> 42:40.560]  not thrilled with, frankly. I mean, how big of a threat is this? And will this continue to be an
[42:40.560 --> 42:46.800]  overhang for investors? Yeah, I think it's still playing out. Lift is banking on a ballot initiative.
[42:46.800 --> 42:50.960]  They're confident that they can win. But let's see where that plays out. California is not the
[42:50.960 --> 42:55.600]  biggest part of the market. I mean, it's big, but it's not all all the business. And there's a lot
[42:55.600 --> 43:01.120]  of other businesses around. So there'll be some hit, a small percentage of the total earnings
[43:01.120 --> 43:08.320]  I guess. But overall, I think we'll see, I think the genies out of the back, no one, you cannot take this
[43:08.320 --> 43:12.800]  back. Right-sharing is the way to go over the future. Everyone wants that. There's a ground
[43:12.800 --> 43:17.040]  swell of support from bottom up. So you'll see, at somewhere in between, you will settle,
[43:17.040 --> 43:21.760]  there will be a compromise somewhere. But in the end, you need to get your economy, you need
[43:21.760 --> 43:26.320]  right-sharing. That's the way to go. Transportation of the transportation as a service
[43:26.320 --> 43:30.800]  is a big part of the future. That's where we invested. That's how that's why we thought this was
[43:30.800 --> 43:34.400]  the right place to go. So a lot of moving parts, Santosh. Thanks for being here with us.
[43:34.400 --> 43:39.360]  Thank you. Thanks for having me. Absolutely. Well, coming up, Netflix, making a rare move
[43:39.360 --> 43:44.400]  with a release of one highly anticipated sequel details on that. And the other stories you're
[43:44.400 --> 43:49.360]  going to be talking about, that's ahead. And coming up in a C&B C exclusive Goldman Sachs CEO
[43:49.360 --> 43:55.280]  David Solomon joins closing bell as the banks annual internet and technology conference kicks off
[43:55.280 --> 44:03.520]  at the 4 p.m. Eastern Time. Robotics change, though, that could just a moment.
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[44:15.440 --> 44:19.280]  I have breathed in India's magic. I have felt it's warm.
[44:19.280 --> 44:27.760]  Yoga has taught me the truth about life and motorcycles. That the more still you are,
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[45:56.480 --> 46:07.520]  With capital group, I can. Talk to your advisor or consultant for investment risks and information.
[46:07.520 --> 46:12.160]  Let's find out what else you're going to be talking about today. It is time for this morning's
[46:12.160 --> 46:14.720]  top stories. Your house almond is back. What do we got today?
[46:14.720 --> 46:19.360]  So Twitter is in an up war about this next one. The Westminster dog show wrapped up two days
[46:19.360 --> 46:24.880]  of competition last night and handed out its coveted best and show award. And the winner was
[46:24.880 --> 46:30.800]  this standard poodle named Ceba. So Ceba is the first standard poodle to win top dog of the show
[46:30.800 --> 46:37.040]  since 1991. Also the fifth to win in Westminster history. Ceba, however, upset crowd-favorite
[46:37.040 --> 46:42.400]  Daniel. Let's wait for this. This is a golden retriever who took home first. This is still
[46:42.400 --> 46:45.840]  Ceba of course. Who took home first in the competitions? Sporting great. Well, let me tell you,
[46:45.840 --> 46:51.680]  Daniel. There's Daniel. Very cute. So here's the issue. Apparently a golden retriever has never
[46:51.680 --> 46:57.360]  won. And so it was the underdog. No pun intended. And so folks really wanted Daniel to win. They
[46:57.360 --> 47:02.400]  also thought Daniel was a cuter, more doggy dog. Right, right, right. But apparently, so that's
[47:02.400 --> 47:07.440]  not what the judges are looking for. They're judging to see which dog is closest to the ideal
[47:08.080 --> 47:14.640]  breed. Like it's breed. It's a golden breed. They're not measuring Daniel against Ceba. Exactly.
[47:14.640 --> 47:20.640]  They're measuring Ceba against standard poodles and Daniel against golden retrievers and apparently
[47:20.640 --> 47:26.240]  the judges felt like Ceba was closer to the ideal standard. They're both cute. They can both win.
[47:26.240 --> 47:31.440]  And speaking as an owner of a golden doodle, I love both breeds. Yeah, right. Yes. Also Netflix,
[47:31.440 --> 47:37.200]  giving non-subscribers now a freebie amid one highly anticipated release. The company is 2018
[47:37.200 --> 47:42.240]  original to all the boys that I've loved before. We'll be available to stream regardless of whether or
[47:42.240 --> 47:46.880]  not you are a paid user through March 9th. To the move comes as a sequel to the hit,
[47:46.880 --> 47:51.360]  rom-com officially hits the platform today. And this is the first time that Netflix has offered
[47:51.360 --> 47:55.760]  free streaming for one of its originals in the U.S. We'll be very interesting to see
[47:56.400 --> 48:00.960]  if this leads to more subscribers. Because think about it. If you watch now the first one. Right.
[48:00.960 --> 48:05.040]  And you're into it. Yeah, you want to be more willing to pay. You know, to see the second one.
[48:05.040 --> 48:10.080]  They say it's a hit. And I love rom-com's. I've not ordered this nor have I seen it. So I've told
[48:10.080 --> 48:15.120]  away. Miss that boat. We may have aged out though. You and I. Oh, I mean, I'm with you though. I'm with you.
[48:15.120 --> 48:20.400]  Okay. So pizza. Surfing up another interesting innovation. The chain announced that it's new
[48:20.400 --> 48:26.880]  as product. The mozzarella peppers pizza comes with 16 mozzarella field squares baked right into
[48:26.880 --> 48:30.640]  the pizza crust like right on top of this. You see there. The restaurant list causing it calling
[48:30.640 --> 48:35.280]  it the cheesy its pizza yet. Both claim considering that the chain was also behind the
[48:35.280 --> 48:40.000]  stuffed crust pizza. This also comes a week after Papa John's launched. It's innovation. The
[48:40.000 --> 48:45.200]  Papa Dia. I do remember all of those innovations. And it does sort of get you interested. I
[48:45.200 --> 48:50.000]  feel like everybody's I should say a lot of people try it once. I don't know if you keep going back
[48:50.000 --> 48:55.040]  to it. Like does it does the mozzarella stuff crust become your go to pizza probably not? Or maybe
[48:55.040 --> 48:58.800]  just a novelty. Right. Like you're just trying it once as you said. Exactly. Like I can tell
[48:58.800 --> 49:03.520]  a lot of mozzarella. But maybe that's all they need. Interesting. I love cheese. I would definitely
[49:03.520 --> 49:08.800]  be willing to try it here. Well, on deck Boeing issues the new warning over the coronavirus. And the
[49:08.800 --> 49:14.000]  major economic impact the outbreak will likely have. Plus what investors should take away from
[49:14.000 --> 49:18.880]  Jay Powell's latest comments before he testifies to Congress again this morning will talk to former
[49:18.880 --> 49:23.840]  Fed governor Sarah Bloom Raskin. That's coming up next. And a reminder you can always watch or
[49:23.840 --> 49:43.440]  listen to us live on the go on the CMBC app worldwide exchange is back in just a moment.
[49:53.840 --> 50:10.560]  When it comes to your business internet which is more important. Okay, which I didn't have to
[50:10.560 --> 50:14.560]  chew. Like the more I think about it the more I want to jump to you through. What if I said you can
[50:14.560 --> 50:21.040]  have it all? Comcast business gives you connectivity that goes beyond what you want. That's speed,
[50:21.040 --> 50:27.200]  reliability and security all from one provider. Touch that. Get started with internet and voice
[50:27.200 --> 50:50.080]  brand amazing price. Call today. Comcast business beyond fast. Make fitness routine with pure protein.
[50:50.080 --> 50:57.680]  High protein, low sugar, tastes great. High protein, low sugar, so good. High protein, low sugar,
[50:57.680 --> 51:04.560]  mmm, birthday cake. And try pure protein delicious protein shakes. Next on squat box,
[51:04.560 --> 51:09.600]  reaction to quarterly numbers from lift. What challenges and changes to the road nap
[51:09.600 --> 51:14.640]  could steer investors to the right-chair company. Squatbox today, 6 a.m. Eastern,
[51:14.640 --> 51:20.720]  watch your listen live on the CMBC app. It's time to change the way you think about money.
[51:20.720 --> 51:26.400]  Personal stories, money tips, strategies for saving and investing. Invest in you,
[51:26.400 --> 51:32.560]  ready set, grow. CNBC and acorns go to CNBC.com slash invest in you.
[51:32.560 --> 51:37.600]  Big news, big price tags, and big problems. It's been on the market for three years.
[51:37.600 --> 51:48.560]  With no offer. It's now time for the executive recap. The headlines you need in 60 seconds.
[51:48.560 --> 51:53.760]  Foxconn is aiming to restart half its production operations in China. By the end of the month
[51:53.760 --> 51:58.400]  amid the coronavirus outbreak, according to Reuters, the company is working to boost that number
[51:58.400 --> 52:03.520]  to 80 percent in March. Foxconn received approval from Chinese authorities this week to reopen
[52:03.520 --> 52:09.360]  its largest plans. Meanwhile, Boeing is issuing a warning about the impact of the coronavirus
[52:09.360 --> 52:14.000]  speaking to reporters at the Singapore Air Show. A senior executive says the global air cargo
[52:14.000 --> 52:20.000]  industry is unlikely to grow this year because of challenges in China stemming from that outbreak.
[52:20.000 --> 52:24.240]  Boeing is also warning that the virus will hit airline revenues and profits shares
[52:24.240 --> 52:29.840]  of Boeing down only fractionally. And a federal judge has dismissed some of the charges against
[52:29.840 --> 52:35.200]  their no-sound or Elizabeth Holmes. The judge ruled patients were not deprived of any money or
[52:35.200 --> 52:39.920]  property by using the company's blood testing services. And there was no evidence showing
[52:39.920 --> 52:45.360]  Holmes directed doctors to make misrepresentations to their patients. The judge did uphold
[52:45.360 --> 52:50.880]  wire fraud charges, however, against Holmes. Well, as stock features point to new records for
[52:50.880 --> 52:55.280]  Wall Street at the open, investors also looking ahead to a second day of testimony from
[52:55.280 --> 52:59.920]  Federal Reserve Chairman, Jay Powell, expected to testify before the Senate Bank. You may
[52:59.920 --> 53:04.880]  get 90 Emmys turn time today. Just one day after he said the central bank is closely monitoring
[53:04.880 --> 53:13.200]  the coronavirus outbreak. The question for us really is what will be the effects on the U.S. economy?
[53:13.200 --> 53:17.920]  Will it be persistent? Will it be material? That's really the question. I think we know there
[53:17.920 --> 53:23.600]  will be effects on China through through some part of the first half of the year and China's
[53:23.600 --> 53:29.280]  close neighbors and major trading partners in Europe as well as Asia. And we know that there
[53:29.280 --> 53:33.840]  will be some very likely some effects on the United States. I think it's just too early to say.
[53:33.840 --> 53:39.600]  We have to resist the temptation to speculate on this. And so we'll be watching that carefully
[53:39.600 --> 53:43.840]  again. And the question we'll be asking is will these be persistent effects that could lead
[53:43.840 --> 53:50.320]  to a material reassessment of the outlet? Joining me now with more is former Federal Reserve
[53:50.320 --> 53:54.640]  Board Governor and former Deputy Treasury Secretary Sarah Bloom-Raskin. She's also a CNBC
[53:54.640 --> 53:59.040]  contributor and Duke University Rubenstein Fellow. Sarah Good Morning. Thank you for being here
[53:59.040 --> 54:04.000]  with us today. You of course heard Mr. Powell. I'm sure you heard him say all of those things
[54:04.000 --> 54:09.120]  yesterday as we're trying to square up really the impact of the coronavirus saying we have to
[54:09.120 --> 54:13.440]  wait and see if it's material. It seems to me that there's no question it will be material.
[54:13.440 --> 54:20.160]  We just don't know perhaps to what degree. That's right. This virus actually
[54:20.160 --> 54:27.440]  does have quite the potential to really have some big knock on effects. If you think about
[54:27.440 --> 54:33.840]  certainly the impact, the economic impact on China itself, there is now speculation that that
[54:33.840 --> 54:40.320]  will knock off a couple of points of GDP growth there in terms of how they measure it. But
[54:40.320 --> 54:46.400]  the effects on the U.S. and on the trading partners for China are also really what we have to
[54:46.400 --> 54:51.520]  keep an eye on. You heard Chairman Powell talk about these effects being looking to see whether they
[54:51.520 --> 54:57.920]  are persistent and material. That is in fact what the fed will look at.
[54:58.960 --> 55:06.480]  This is, as I see it really kind of a double lamby because of course we're coming out of a situation
[55:06.480 --> 55:16.160]  where trade has been affected by the terror wars. Now we have this virus to contend with
[55:16.160 --> 55:22.160]  from an economic growth perspective. So I think this is actually a serious headwind.
[55:22.160 --> 55:25.760]  I think so too. And I think it's going to be some time before we know we're so much more
[55:25.760 --> 55:30.240]  interconnected. It seems now that even we were during the SARS outbreak, both the United
[55:30.240 --> 55:34.320]  States and China, but really China with the rest of the world and their economy is certainly
[55:34.320 --> 55:39.360]  well to be much larger than it was then. But the president of course Sarah also kept up his attacks
[55:39.360 --> 55:44.000]  against J. Powell. He was tweeting during yesterday's testimony, quote, when Jerome Powell
[55:44.000 --> 55:48.960]  started his testimony today, that that was up 125 and heading higher as he spoke.
[55:48.960 --> 55:53.840]  It drifted steadily downward as usual and is now negative 15. Germany and other countries
[55:53.840 --> 56:00.880]  get paid to borrow money. We are more prime but fed rate is too high. Dollar tough on exports.
[56:00.880 --> 56:05.040]  Oh, Sarah. I don't think he's ever going to escape these tweets. He's always going to be
[56:05.040 --> 56:10.000]  criticized and Trump keeps pushing for this idea of negative rates. What do you make of it all
[56:10.000 --> 56:15.600]  put together, I guess, both the president's criticism of Powell and the idea of negative
[56:15.600 --> 56:20.480]  interest rates? Right. And well, the question of negative interest rates actually got questioned.
[56:21.840 --> 56:27.760]  In the context of the hearing yesterday and I thought, I thought Chairman Powell was particularly
[56:27.760 --> 56:33.200]  articulate in taking negative interest rates off the table. I mean, he has made it clear that
[56:33.200 --> 56:38.880]  that is not going to be a tool in the toolbox that the Fed is like our ammunition.
[56:38.880 --> 56:45.120]  He talked about the use of forward guidance, the use of large-scale asset purchases, not that
[56:45.120 --> 56:51.600]  these are being contemplated at the moment. But you see the Fed here starting to talk about
[56:51.600 --> 56:59.600]  its usual playbook. It shouldn't need it in terms of more accommodation. So, I think the negative
[56:59.600 --> 57:06.720]  interest rate point was handled pretty clearly by Chairman Powell. That is not going to be
[57:06.720 --> 57:14.160]  a tool that he is contemplating right now. And I think the president can tweet on and on
[57:14.160 --> 57:20.080]  as much as he wants about it. It is a tool that has mixed results in terms of its use in other
[57:20.080 --> 57:26.080]  countries. And I think its use in the U.S. is something that is not considered imminent.
[57:26.080 --> 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 --> 57:32.960]  cybercrime. If you can just take a minute, we're going to play this for you.
[57:32.960 --> 57:40.560]  But the thing that we worry about a lot is cyber attacks. I think we have a great
[57:40.560 --> 57:46.640]  game plan for traditional issues like bad loans and things like that. It is more cyber attacks
[57:46.640 --> 57:48.800]  is really the frontier where you worry.
[57:50.800 --> 57:54.880]  So, what do you think about that? How big of an issue is that? It seems like so many businesses
[57:54.880 --> 57:59.680]  that we talk to at CMBC say, yeah, we are getting attacked basically every day. We have just gotten
[57:59.680 --> 58:04.400]  better at sort of thwarting many of them. But you know, at some point, they're going to break
[58:04.400 --> 58:10.560]  through, I should say. That's right. And the volume and the complexity, the sophistication of
[58:10.560 --> 58:16.240]  these cyber attacks continues to increase. We saw this. I mean, I saw this back at my time at
[58:16.240 --> 58:22.720]  Treasury. I mean, this was something that is a mounting concern. I think that Chairman Powell
[58:22.720 --> 58:29.280]  is correct in noting that the defensive posture of a lot of financial institutions is
[58:29.280 --> 58:36.480]  actually increasing and that's a good thing. So, from a defensive posture, a lot of the institutions
[58:36.480 --> 58:41.760]  do have good mechanisms in place to thwart the attacks. But in terms of they're coming,
[58:41.760 --> 58:48.480]  they're coming fast and furious and they continue. This is a series headwind. I would, you know,
[58:48.480 --> 58:53.120]  I would have probably answered that question a little differently. I think that there are other
[58:53.120 --> 58:58.640]  big risks on the horizon and maybe they will get explored today from the Senate side,
[58:58.640 --> 59:04.160]  but in particular, you saw Chairman Powell dodging around a little bit on some on questions,
[59:04.160 --> 59:09.920]  of climate change, and financial stability and other, you know, and other kind of risk factors.
[59:09.920 --> 59:14.240]  So, many things to consider, Sarah Bloom-Raskin. Thank you so much for being here with us.
[59:14.240 --> 59:17.600]  This morning, we'll speak to you again very soon. That's it for World Wide Exchange.
[59:17.600 --> 59:25.040]  This morning, Squawk Vox begins right now. Good morning. The NASDAQ and S&P pushing the new eyes,
[59:25.040 --> 59:30.160]  the companies are now warning us to apply disruptions related to the core virus outbreak.
[59:31.280 --> 59:36.400]  Feelin' the burn in New Hampshire, Senator Sanders, edging out Pete Buttigieg. We're going to take
[59:36.400 --> 59:41.840]  you live to the Granite State for the results and implications for investors. And shares a bed
[59:41.840 --> 59:47.680]  bath and beyond are plummeting. The CEO is describing it as short-term pain. We've got details
[59:47.680 --> 59:53.760]  on all of this great ahead. It's Wednesday, February 12th, 2020. The Squawk Vox begins right now.
[01:00:07.040 --> 01:00:11.040]  Good morning, everybody. Welcome to Squawk Vox here on CMBC. We're live from the NASDAQ
[01:00:11.040 --> 01:00:15.360]  market site in Times Square. I'm Becky Quick, along with Joe Kernan and Andrew Ross Sorkin.
[01:00:15.360 --> 01:00:19.520]  Let's take a look at the US equity futures at this hour. You'll see right now that the futures
[01:00:19.520 --> 01:00:24.640]  are indicated higher. In fact, the Dow indicated up by triple digits, again, of about 125.
[01:00:24.640 --> 01:00:30.160]  NASDAQ, up by 51 in the S&P, up by 13. And this comes after the S&P 500. And the NASDAQ,
[01:00:30.160 --> 01:00:34.160]  both set new records once again yesterday. During the trading session, all three of the major
[01:00:34.160 --> 01:00:43.360]  averages were higher and the Dow gave back most of those gains into the day flat. But again, you're