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tv   The Exchange  CNBC  February 6, 2019 1:00pm-2:01pm EST

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drug pricing mckeson. >> give me a quick thought of chipotle >> i expect it to be strong. i'm staying long >> dunkin brands as well some other big names as well great having you here. >> congratulations >> sdhat it for us "the exchange" begins now. >> thank you, scott. hi, everybody. here's what's ahead. trade is back on the front burner the president's team gets ready to head to china trump is asking for retaliatory tariffs. so should businesses brace for higher costs the tabloid expose of jeff bezos affair, a deep dive into whether that was pure gossip or politically motivates. and game over. video game stocks including electric arts and take 2 interactive are plunging today after issuing weak guidance. is it the fortnite effect? dom chu here with the numbers. >> still in negative territory across all three indices but off
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session lows the dow just in the past couple of moments dipping into positive territory just by up by one basis point. the s&p still off by about 5 points nasdaq off about 0.3%. a big part of the trade is the semiconductor industry the semiconductor etf, the vaneck vectors up. it's up about 26% since the lows on christmas eve and it's trading above its 200-day moving average or longer term trend for the first time since october 4th. also watching this stock of the day, snap inc, the parent company of snapchat. huge gain. 25% to the up side after user metrics come in better than expected also losing less money than expected but this was a stock that ipo'd at $17 per share. got as high as $29 and as low as around $4 and up to $8 and change right now back to you, kelly nbc universal, parent company of
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this network, and owner of snap inc. >> not that we're rooting it to go higher. thank you, dom welcome to "the exchange," everybody. i'm kelly evans. on the heels of the state of the union, data showed the biggest drop in imports in almost three years. that's a much-needed boost jpmorgan took up its estimate by nearly half a point after the 2.6% for the end of the year markets have been so strong since the christmas eve bottom that parts are looking overbought bob pisani joins us from the new york stock exchange. >> hello we've flattened out in the last couple of days there's very good reason for that we've come very far, very fast and some sectors are clearly overbought right now so let me just show you. interest rate sensitive sectors like, for example, home builders and real estate investment trusts or reits noticeably ov bought reits have been up since january. this is a lot to ask when essentially earnings estimates
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for the first quarter are flat big moves up flat earnings estimate you'll get some resistance you want a number to look for and root for 2741 on the s&p 500. that is the 200-day moving average. we stopped just shy of it yesterday. and every time we've gone above or below that, there's been significant market activity. a lot of people are pegged for that number. they sell a bit. we're only eight points away >> we'll keep an eye on that level. the state of the union in the rearview mirror, trade is back on the front burner eamon javers has the latest. >> president trump thought there was a good chance the united states and the chinese side could come to an agreement before that march 1st self-imposed deadline for new tariffs on china this morning, treasury secretary steve mnuchin was on cnbc. he confirmed for the first time that he and the delegation from
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the u.s. side are going to be going to china next week for negotiations here's how he phrased where things stand right now >> we are trying to reach a comprehensive agreement on a large range of issues. the good news is we have been talking about these issues for over the last year these are everything from structural issues to forced technology issues to the long list of issues that were in the 301 report and we are also very focused on free and fair trade for u.s. companies to have access there and to have a more level playing field. >> i think you have to call that some cautious optimism here from the u.s. side. we'll see whether we get any news out of that delegation next week meanwhile, here at the white house, in the next half hour, we're expecting the president to announce david malpass to head the world bank we expect to see the president in the white house just within the next half hour's time making that announcement and perhaps taking a few questions on
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unrelated topics so we'll bring that to you as soon as we have it >> you're about to -- it's the roosevelt room about to run off and get ready for it david malpass, his hawkishness on china is clear twhen comes to the world bank what does it mean if we have mnuchin saying we're making progress and david malpass on the other hand going in and maybe taking a more strident tone with china and the world bank >> china is such a key area there in terms of the world bank and whether or not the world bank should be making loans in china at all malpass definitely not seen as a globalist here not seen as a multinationalist here in this white house that may be one of the reasons the president wants to send him to the world bank. what the reaction will be from u.s. allies in the world bank, whether or not they approve of this deal. it would be very unusual for them not to, but i asked a senior administration official earlier in the week what he made of the criticism of malpass from
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some of the more globalist or multinational, multilateralists if you will, here in washington. he said they're not worried in the white house about that criticism. they think they can get this done and they think that malpass is the right guy the senior administration official telling me earlier in the week the president likes malpass' experience here and he shares the president's views on what should be done at the world bank >> we'll hear more from the president himself on this in a couple minutes eamon, thank you does this mean we won't see 25% on chinese goods come march 1? joining oudin demico and neil ferguson from stanford university great to have you here neil, let me begin with you and your reaction to secretary mnuchin, what we heard from the president last night the president wants retaliatory tariffs, for that to be easier for him to use going forward do you sense a hawkishness on
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trade or progress? >> i think it's always important to remember that steve mnuchin's not really calling the shots in these negotiations it's robert lighthizer, the trade representative he's a tough negotiator. nothing really that came out of last week's negotiation suggested to me that the chinese are going to make sufficient concessions to satisfy him, to satisfy lighthizer on key issues specifically the made in china 2025 strategy. i think it's way too early to say a deal is in prospect, and i wouldn't be surprised if we ended up with higher tariffs on march 1st. >> 10%tariffs are one thing. even with those we saw perhaps companies racing to get goods into this country ahead of that in position and then this drop off, maybe clearingy in the data afterwards if it looks like we're heading toward 25% tariffs, wouldn't we see that an outsized effect? it seems most companies don't
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think this is coming >> the media have tended to talk, and i've heard this also on wall street if a trade deal is just around the corner, but it's a mistake to assume that when, really, the chinese haven't addressed key issues on robert lighthizer's agenda the president has been a consistent believer inution tari -- using tariffs in this way to get gains and concessions from trading partners one needs to remember that for this to change, for there to be some deal to warm up to first, either they need substantial new concessions which they are reluctant to make. don't want to have to make a big concession on made in china 2025 or president trump is going to overrule lighthizer and say i'm going to take this deal whether you like it or not >> another point people have made is it's unrealistic to expect the chinese to change, if
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anything, they've become more authoritarian. not more willing to open themselves up. so does anybody really think, even if they make gestures, yes, we're starting this review council for patents that that's genuine progress >> i think we have to distinguish between the political and economic here. no question that china is going in a more authoritarian direction under xi jinping on the trade issue, they are mightily afraid of an escalation of this trade war because it hurts them more than it hurts the united states. they're desperate for a deal but they really don't want to have to sacrifice their core strategy which is to get up the technology value chain to a position of equality with the united states. that is central to xi jinping's grand strategy for china and president trump is quite right in wanting to try to check that initiative and to use the trade war to achieve it. the key point is a trade war is in the process of meta morph
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sissing into a trade war >> neil, thank you for that. dan, let me talk more about the manufacturing aspect of this which also is highly sensitive, but the manufacturing barometers have been healthy so far they've fluctuated a bit but overall suggest an expanding sector, don't they >> yes, they are if i might comment on what niall had to say, i'd be in complete agreement with everything that he said. the only exception i would take is that the president of china is not interested in equality with the united states he's interested in dominating those fields of high technology and technology of the future he's made that very clear. regarding manufacturing, the trump strategy put together when we were all inputting into it during the campaign, his
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advisers to him, both from the trade and economic standpoint, has been to go through and focus on what secretary mnuchin said this morning, and that is tax reform, trade reform, regulatory reform and energy reform and all those things working together in a siynergistic way >> we got tax reform, some regulatory reform, even some energy reform. but what about trade this is the big one, right for the next two years, a lot is going to depend on what happens over the next month. >> you can count on the president sticking to its guns and to be deferring to robert lighthize who we worked with very closely during the transition we can count on him being tough. he wants a deal. there's no doubt about it. the chinese want it more but he's not going to do it without getting those fundamental changes. >> such as >> such as the stopping the intellectual property theft,
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reciprocal trade, and free and level playing field. and for them to become more of a market economy >> dan, do you -- >> the opposite of what they've been doing >> do you, dan, really believe that china is going to move towards being more of a market economy in the next month in order to come up with a trade deal >> well, listen, obviously, i don't believe that your previous guest did not believe that >> i don't think anybody believes that. >> nobody believes that. so, you know, if you want to ask the right question, the right question is, all right, is the president going to cave on his demands? and the answer is no so where does that put us? that puts it in china's court. if they don't change and commit the change and have firm, clear ways for us to verify that and to retaliate if they don't, anything that they agree to is going to be very weak. this whole idea as mnuchin said
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this morning, i agree completely the soybean thing is a nice talking point, but this is not what this is about this is much bigger than trade and trade is just the key avenue to get accomplished the other things >> verify, maybe even retaliate. that will be key as we look towards more of an agreement dan, thanks for joining us there's a whole lot more still ahead on "the exchange." >> coming up -- the jeff bezos divorce drama heats up with a new expose in his newspaper, "the washington post." the writer of this whodunit joins us next. plus, facebook has a new way to evaluate employee bonuses and it will definitely surprise you. and our bedtime stories and meditation worth $1 million? the market certainly thinks so we'll explain. this is "the ehae.xcng the latest innovation from xfinity
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it's a look what your wifi can do now store. a get your questions answered by awesome experts store. it's a now there's one store that connects your life like never before store. the xfinity store is here. and it's simple, easy, awesome. welcome back less than a month after the national enquirer published a 12-page spread chronicling jeff bezos' affair, "the washington post" is out with a deep dive on bezos and how those salacious text messages wound up in the national enquirer. was it politically motivated let's bring in sarah ellison, one of the "washington post" reporters who broke this story great to see you >> great to see you, too
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thanks for having me >> what is the main thrust of this there's a lot in here for people who want understand how this back and forth is playing out. it was the brother and the brother saying, no it was the bodyguard. what do you think is going on here >> well, i mean, really what we attempted to do was get to the bottom of how this ended up in the national enquirer. and what we ran into was a lot of infighting between the people that you have mentioned, you know, jeff bezos set out to figure out how his private communications found their way into this tabloid. and i think that no one is really that much closer to figuring out how that happened but what we have uncovered and what came out in the reporting is that his head of security has concluded that lauren sanchez's brother michael was involved in some way in leaking the information and michael sanchez has communicated after the story
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came out with people like roger stone and carter page who are in the news for entirely different reasons, but it makes for a very confusing soup of characters, not to mention that the "national enquirer" is controlled and run by david pecker who recently signed a nonprosecution agreement with the southern district because of the way the national enquirer worked to help donald trump during the 2016 campaign so all of those things are dots that we were trying to connect or get to the bottom of. and it's all really -- what we know is laid out in the piece. >> it's interesting because many thought if michael sanchez knows these people who are connected to the enquirer that maybe that was the avenue this took in the piece, it doesn't exactly connect all those dots to suggest a causality. it also says it's possible the national enquirer reporter, howard, saw bezos and lauren
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sanchez together at a launch event and kind of thought maybe there's something here and we know that they were followed for, i guess, months and michael sanchez had some suspicions they were being followed and that was one of the reasons, it seemed from reading the piece, one of the reasons he was asking page and roger stone kind of what to do in that situation. >> exactly you know, you clearly read the piece and saw all the things that we were ourselves looking into he was seeking advice on how communications could be surveilled and how that information that was in a private text exchange could find its way outside of the two people who were communicating. we know that lauren sanchez did show some of her texts to friends. and so that was another thing that wipeople were looking into
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we don't know who had access to jeff bezos' phone. this was an effort to get inside the investigation and one of the things that we really found was once we started to get inside that investigation, now michael sanchez has another investigation. so there were dueling investigations people trying to control what someone will write about this in other outlets. there were threats of lawsuits both from the national enquirer and from some of bezos' own representatives about what people were going to write about this story so it's a big -- it's sort of a window into -- it's a window behind the scenes of a leak investigation. >> and for anybody who thinks they may know what's going on here, read it and see if you can figure it out and then help us understand it. sarah, thank you for right now, major jeff bezos himself doesn't know is that fair >> yeah, i think this story is not over and we're going to keep
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reporting on it, but i do think that it's very hard to nail something like this down, especially without something like subpoena power. and we're just journalists looking into these things like anybody else would >> and into your owner, no less. sarah, thanks for joining me sarah ellison of "the washington post." shares of snapchat are up big today but it's still trading way below its ipo price. is it too soon to call it a comeba comeback facebo'sok bonuses and what it means coming up on "the exchange." risk having your clubs lost or damaged by the airlines. sending your own clubs ahead with makes it fast & easy to get to your golf destination. with just a few clicks or a phone call we'll pick up and deliver your clubs on-time, guaranteed, for as low as $39.99. saves you time and money. make it simple. make it ship sticks.
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welcome back to "the exchange." the dow trying to stay positive, here are some of the movers this hour skyworks up nearly 12% posting strong earnings. it's on pace for its best day in over two years they also doubled their share buyback. spotify announcing the aq acquisitions of gimlet media and anchor also reported first quarter operating profit the shares down 3% today and capri holdings this is the company formerly known as michael kors. and shares are higher by 11% after earnings they beat estimates. time for a cnbc news update. let's get to sue herera for that one. >> hello, everyone here's what's happening. in washington, senate minority leader chuck schumer says president trump failed to bring
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both parties together during his state of the union speech last night. >> president trump squandered the opportunity with a forgettable and at often times incoherent speech. at times he call for unity without specifics. at other times he served up divisive campaign rhetoric he's used so frequently in the past iran says gunman have killed a policeman and wounded a police officer in a shootout during which a stray bullet hit a fuel tanker causing it to explode it happened in a western province united airlines will expand the number of premium seats in its fleet by 50% that's about 1,600 new high end seats with more space and leg room on its planes it's part of a big push to win over more high-end passengers. that's the news update this hour >> we'll have more on that in
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rapid fire i'm joined by tyler mathisen we have a small, not important -- i'm kidding janet yellen coming on >> steve liesman will be interviewing her today we'll get her perspectives on the history of the fed under yellen and ben bernanke and a look to the present fed chairman, mr. powell, and how he's doing and what she thinks the state of the economy is doing. we heard from the state of the union address. and from many people's point of view, the economy is firing on all cylinders. one company is not the president's favorite company it's the company "the new york times. and it seems to be doing very well in terms of most especially digital subscriptions added also advertising revenues largely driven by a growth in that digital area. we'll have the ceo of "the times" will join us, mark thompson >> many pine for janet yellen. they never like you when you're
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there but then afterwards they go, she did a pretty good job. >> the challenge for mr. powell, so far, apart from the policy making challenges, have been the messaging challenges and that maybe less is more. i question whether there should be a press conference after every one of these he is all for the transparency, but sometimes you think maybe you are better off sort of holding on to your thoughts a little more. >> trying to learn that lesson thank you. >> see you in a half hour. a lot more ahead on "the exchange" including president trump's announcement for who he is nominating for head of the world bank and will he mention trade, china? we'll bring this live as it happens. plus -- >> ahead, is it game over for the video game stocks? united airlines looks to woo high fare passengers and tesla brings down prices again. it's all ahead in rapid fire [knocking]
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welcome back to "the exchange." you are looking live at the roosevelt room where president trump is expected to announce david malpass for his pick as world bank president let's catch you up on a few
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stories that should be on your radar today. great to have you guys here. first up, video games. the stocks are getting slammed on earnings today. ea reported a big revenue miss in q3. take two interactive is down both companies are taking ac activision down with them. is this a fortnite effect? the declines are astonishing >> no doubt the fortnite story is part of it. but the ceo of take-two interactive spoke this morning on squawk on the street. he's saying it's not all fortnite he's echoing what many industry people are saying. this is about a secular change away from certain types of gains and going toward online gaming in general or community gaming this is something where, yes, some of these games can still operate in that environment because you can go to a playstation or xbox and have that community aspect to it. but there's a shifting paradigm in the whole video game industry >> electronic arts is 47% off
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its 52-week high actvision blizzard is 49% down and take-two is 33% down >> they'll face more competition because rovio has now launched hatch which is who they call the netflix of gaming. it's getting a big stake from a japanese company they'll offer subscribers an option for these freemium games and then do you really have to go and buy your games if you're subscribing. remember what netflix did for video watching could the same happen with video games? >> for zelnik to say on cnbc that there's not a competitive environment out there. if you are an investor in the gaming industry, do you listen to him or take that as a bearish indicator? >> he didn't say this is how we're dealing with it. >> there hasn't been -- when i was in my adolescence going to my early adulthood it was all about like grand theft auto. the first red dead redemption. assassin's creased >> how long ago was that
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>> i'm 40-something now. the point is you have all these blockbuster game franchises that have withstood the test of time. >> i'm still on tetris >> mario cart. >> talk about disney disney reported a blowout q1 the company continuing to dominate in sports espn plus doubled to 2 million in five months the operating income fell last quarter and that segment, it's direct to consumer segment still isn't even profitable. >> the direct to consumer may not be doing as well as they hoped but still something bob iger is putting a hefty premium on the consumer and direct to consumer model is one of their top priorities, if not their top priority what's interesting about this espn side of things, there was -- when i first started covering business news it was all about espn you couldn't talk about disney until -- then it was all about
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movie studios and marvel and now it's shifting back because of the set-top direct to consumer models >> one reason they're struggling with profit is the investment they're making when you look at broadcasting, they said the broadcasting revenue surprisinsurprisingly, , were up 12% and the operating income up 40% but offset by the programming costs. so all of these people who are launching streaming. and disney will have a lot it's going to have a majority control of hulu once it takes over with fox. when they are doing that, they have to put a lot of money into creating content >> even espn, core espn did a little better. it stemmed the declines anyway so i wonder if the cord cutting momentum is slowing. if the fringe people have already left or if it's going to continue >> and where that inflection point is with regard to profitability. if streaming is the way of the future and direct to consumer,
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how do these media companies make it so that it can replace that lost revenue from customers leaving the traditional methods or actually making up for the people coming -- >> so many streaming options you'll pay what you pay for cable anyway by having -- >> espn doubled its direct to subscribers in five months >> but it was really led by this martial arts, ufc. let me ask you this. if people are signing up for ufc, if it's event driven, then are you going to see what i did with hulu. i wanted to see the handsmaid's tale and as soon as i saw the whole thing, i left. >> espn plus -- >> but if you're joining for ufc. i'll ask my brother. let's talk about united airlines it's expanding the number of premium seats in its fleet it's part of a push to win over
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more high-end passengers this will change seating configurations and affect planes domestically and internationally. at a time united is going from crisis to crisis, but they haven't seen a decline at all in ridership. >> interestingly, the per passenger revenue has been improving because of this trend for united to move toward more of these premium seats this is a strategy that they see working for them now my curiosity surrounding this stems from what happens to the economy seats? with less supply of economy seats does that also drive up the price of an economy ticket or are they forced to be competitive with other airlines not trying to mimic what they're doing on the premium front >> we know they can't squeeze any more seats into the plane. >> spirit airlines has the least amount of space at 28 inches >> that's cozy >> but they haven't he only ones doing it i was on jetblue
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and they have that true blue experience, that premium cabin there. the mint and everything else they're trying to raise that revenue for available seat model for those metrics. if they're doing it, then we as consumers can expect to start paying more for those tickets. >> two words it's bull market the newest unicorn the meditation and sleep app calm is valued at a billion dollars. the app has more than a million paid subscribers and was named app of the year by apple in 2017 >> people are just hungering and hankering for the total wellness package. this is part of the trend. the ceo there valued health and wellness -- >> you used the word trend these thing comes and go are paid for meditation sleep apps here to stay? >> but is the focus on health
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and total wellness here to stay? yes. a lot of companies are trying to take advantage of napt here's my issue. meditation is like a buddhist principle. in buddhism, you're supposed to give away all of your stuff of value. >> don't even go this route. that ship has sailed people are paying for meditation and for sleep apps >> and for yoga and -- >> but are they? they have a million paid subscribers. that billion dollar valuation equates to about a billionsubscr >> they are profitable, by the way. >> then why do they need to raise money? give them credit for that. do you ever use these, dom >> i haven't but i think i might start. if i can have matthew mcconaughey reading cool stories to me. >> i get a reminder every morning, don't forget to meditate >> tesla is cutting the price of its model three.
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if it sounds familiar, it follows a $2,000 price cut on all teslas announced last month to offset the reduction of federal tax credits. what do we think of the tax cut? >> tesla is trying to get to a $35,000 price target sticker price per car, not including any kind of credits or fuel savings the consumer might have so this is part of that plan that said, obviously, shareholders weren't super excited about that news today. >> shares -- call it unchanged >> and tesla, it's imperative for this company to be making moves that are supportive to its stock price because they have a debt payment due in march which is creeping up on us as to whether yesterday showed and their stock price has to be above $360 each in order to not have to pay in that cash reserve. >> they already have waiting lists. why do they need to cut the price? >> i think it suggests they need to get it down
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the loss of those rebates is going to hit >> you buying one of those, dom? >> i'm waiting for competitors to see how they stack up there's a lot out there. audi and chevy and cadillac going forward have them coming out. >> that's where they're placing their bets dom, contessa, leslie, thank you. shares of snap are snapping back is the company really back on track? >> we're also awaiting an announcement from the president on his u.s. world bank nominee we'll bring that to you. "the exchange" is back in two. >> get kelly's daily commentary in your sign up. launching february 11th. i enjoy buying gold, gold has protected me. i always think and i laugh about it, 'cause when i'm sleeping, my gold is working for me. it's still making money. i feel comfortable. when i got involved with gold
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and shares of snap are jumping after reporting better than expected quarterly results and user retention julia boorstin joins us with more on how those earlier problems are starting to be behind it. >> that to right, kelly. the ceo seems to have stabilized snap's user base and is growing the revenue faster than expected snap shares soaring, now up over 24%. this after the stock has lost 50% in the 12 months before yesterday's earnings now yesterday's earnings results indicating that spiegel has pushed past a rough patch around the app's redesign last year which alienated users. snap earning more revenue per user than predicted. they expect financial momentum to continue bolstered by the opportunity in snap's android app. user interest in content in its discover section and advertisers demand for premium video ads and the convenience of its self-service ad platform as for competition from
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facebook, especially in the stories add format pioneered, it will help snap overall >> it seems there's no anecdotes about instagram slowing at all so is snap winning at their expense or is it getting back up on its feet here >> look, snap is getting back on its feet certainly not winning at instagram's expense. facebook reported very strong numbers, and a lot of that is about demand for the stories ad fornat it was interesting to hear spiegel respond to a question and his cfo respond to a question on the call saying what about facebook this is the real question for snap what about facebook? the fact that they have successfully copied many of snap's most popular features they say the more you can get advertisers used to buying ads in the stories format, the better that is for snapchat. we'll see how it nets out, though and we have to note, they stabilized their user base we'll see what it takes to start
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growing that user base again >> julia boorstin, thank you turning to instagram owner facebook that stock up nearly 30% it's announcing a major change to its performance review criteria employee bonuses will be tied to helping solve major social issues let's bring in tech reporter sal rodriguez welcome to you let's clarify. what exactly does facebook mean when it uses the term social issues >> so basically what facebook is talking about here is many issues that have plagued the company over the last year this includes data privacy scandals, growing regulations such as gdpr in europe and then just the proliferation of fake news and propaganda on its services >> so, sal, this goes back to the four priorities zuckerberg announced for 2019 the first one is to continue making progress on the major social issues facing the internet and our company
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so he's deploying employees and monetizing them for working on this now this -- the headlines make it sound like social issues are political or something this is more about fixing the internet and fixing facebook, right? >> yeah, i mean, basically when they told me about this news, the way they put it is it's no longer about prioritizing user growth but focusing on change and solving those issues plaguing the company over the last year. i also had a chance to talk with some former employees and get their thoughts on this change. they are skeptical they think some work remains but they do think this is a step in the right direction. >> sal, you joined us a little while ago talking about the kul cult-like workplace of facebook and how it's fallen in the glass door rankings as being a place to work where dissent is discouraged and employees have to pretend to be happy all the time when you spoke to people who have left the company, they think this is now a move in the right direction, or does this -- is this part of the problem?
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>> this is a move in the right direction but they have a lot of questions that remain. for example, we don't know if the company will continue to use the grading system that it has in the past. they didn't tell us about that we also don't know if they'll continue to give their managers guidelines for what percent -- how to distribute those grades in terms of percentagewise a system known as stack ranking. so this system is going to go into effect later this year. currently they're finalizing performance reviews for the end of last year it remains to be seen how much change this will drive >> it's important for investors to be aware of this change as well because previously employees earned a bonus based on how their performance drove user growth and revenue growth now part of this is base d on solving social issues. i'm not sure wall street is as interested in seeing that happen, as they are in seeing user growth and user engagement. >> well, i think if the company
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can focus on fixing the overall health of just the engagement from users, the dialogue on the service, that should help them out in the long run. in terms of the work that the employees do, this will definitely be beneficial i know that last month, there was a big debate within the company where one employee mentioned that whenever female engineers focus on recruiting other women to the company, that really doesn't help them out in terms of their performance reviews. perhaps under this new revamp that the company is introducing, that type of work will end up helping employees and benefiting them, driving them to do that type of progress for the company. >> perhaps it will sal, thank you so much for joining me shares of gm are climbing higher they're off session highs after reporting strong fourth quarter sales of trucks and suvs will it be enough for investors to take notice that's next. and we're still waiting for president trump to speak any
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moment now and he's expected to announce david malpass as h pisick for world bank president we'll take you there live when it happens stay with us on "the exchange. - in a crossfit gym, we're really engaged
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shares of general motors are rallying on strong fourth quarter earnings result. phil lebeau sat down with the company to taub about those numbers. >> they beat the street by a wide margin. it's really a tale of two parts of the company the part that's working and the part that is not working, but they need to do a little better in choin and that's their plan in north america, they made $3 billion in the fourth quarter. up 6%. china income though, down 39% to $300 million here's gm's cfo on sidewaquawk this morning >> if you look at xin, q4 was a very volatile quarter and we saw pressure frs a volume and pricing perspective. our outlook in the china industry is for flat >> take a look at this chart this says it all about china's auto sales they have plateaued, had a negative year for the first time in about ta 25, 26 years in china last year.
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the it's expected to continue growing through 2024, but for general motors, that's a focus what happens in china as you look at shares of gm keep in mind, it sold more than 3.6 million vehicles last year in china and they expect this to be flat this year for the market as they bring down their volumes, but then continue to grow in 2020 and beyond. >> opposite of what we heard from toyota. thanks very much coming up, we're awaiting president trump to speak when he announces his pick for world bank president we'll take you there live when the exchange comes back. we're ok. just ok? we got a saying here. if the brakes don't stop it, something will. that's not a real saying. it is around here. i wrote it. just ok is not ok. especially when it comes to your network. at&t is america's best wireless network, according to america's biggest test. now with 5g e.
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we are waiting for the president to speak in a couple of moments he's expected to name david malpass as his pick for world bank president let's bring in militia kchelle caruso-cabrera you've written about what an interesting pick malpass would be when he's much like his interior secretary and others. trump is picking somebody who's found a lot of fault with the staugs, right? >> yeah and a lot of conservatives have issues because the mission of the world bank is to help reduce poverty in the world and they're deeply involved in places like africa
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and bank la debangladesh they think the best way to reduce property is the reduction in market forces in places like china and 400 million emerged from poverty so maybe the world bank's mission isn't necessarily wo working out as they had hoped and also there's a lot of mission that's gone from reducing poverty to global warming. >> here comes the president to the podium >> thank you very much lot of fun for me doing this one because we're dealing with a very special man a very special person. today, it's my pleasure to announce my choice for the next president of the world bank, mr. david malpass, and i've known david for a long time. very extraordinary man with us today are david's wife, ade adele, as well as his three children, robert, emily, julia and i want to thank you all for being here and i want to congratulate you all thank you.
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we're also pleased to be joined today by secretary steven mnuchin. wilbur ross, alex acosta, ben carson, bob lighthauser, negotiating with china in how you doing? give me some breaking news it's going well. administrator linda mcmahan and treasurer, jovita karanza. thank you all for being here and ivanka trump, incase anybody missed and kellyanne and a lot of great people. following the resignation of former president of the world bank, dr. jim young kim, i launched a broad search for a replacement after interviewing many very qualified candidates
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i knew that david was the right person to take this incredibly important job. in addition to his current service, overseeing the imf and actually overseeing the world bank as under secretary of international affairs at the department of the treasury, david brings 40 years of experience in economics, finance, government and foreign policy to his new assignment after receiving a degree in international economics from georgetown university's prestigious school of foreign service, david served as deputy assistant secretary of the treasury under reagan and deputy secretary of state under george h.w. bush. he distinguished himself as staff director of the joint economic committee of the united states congress and he was named
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to the boards of many notable institutions and charities highly respected man include iing the counsel of the america's and the economic club of new york. "the wall street journal" just said today in an editorial, that david malpass is an excellent choice, which is true. america is the largest contributor to the world bank giving it over $1 billion every year my administration has made it a top priority to ensure that u.s. taxpayers dollars are spent effectively and wisely serve american interests and depe fend american values david has been a strong advocate for accountability at the world bank for a long time he has fought to ensure financing is focused on the places and projects that truly need assistance including people living in extreme poverty. david was also


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