tv Worldwide Exchange CNBC January 2, 2020 5:00am-6:00am EST
and no buffett sharing the deal of the decade. all as "worldwide exchange" begins right now ♪ good morning happy new year welcome to the first trading day of the new decade. we are seeing some upside. this will be a slow trading week low volume is what we are seeing we are getting ready for a slightly positive open for all of the major indices closing out a record year. the s&p and nasdaq coming off their best annual gains locking in 28.8% for the s&p 500
nasdaq the best year since 2013 up 35% for the year. top stocks would be amd up 128%. let's check on the bond market, the 10-year currently trading at 1.937% it wasn't just a good year here, it was a great year for global markets. let's go worldwide now standing by in london with a recap of the global markets. >> let's take your attention to markets there. a couple of catalysts there. china announced that they are cutting the triple r rate.
it releases up to around $800 billion. extra liquidity being pumped into the system. shanghai composite up. the shenzhen up 1.9% last year, up roughly 23%. shenzhen up 35%. really strong gains in these chinese indices. a lot of focus on the trade war. it has emerged that there will be a signing ceremony to take place january 15 another positive catalyst. we have the hang seng index. this market in hong kong has been under a lot of scrutiny because of the demonstrations and those continued over towards new year's eve
some demonstrators have been arrested what about europe? taking your attention to the majors in europe a very strong year we spoke about. ending up about23% similar gains to what we had in the composite. the uk ftse 100 up one percentage point firmer. some of the minors are reacting quite well up about 8% up about 1.3 bers. one of the big gainers is airbus up about 3.25 percentage points. the italian index up 1.2%. we had the final eurozone pmi manufacturing numbers came in slightly higher than
expectations bester for italy, better for france and germany we are only about one hour into the trading session of what will be a very, very long year. >> just at the start certainly over here, investors will be looking at u.s./china relations. president trump will sign a trade deal in a white house ceremony on january 15 details of the agreement remain scant. the president planning to travel to china for the phase two talks in the coming months if there were ever a story to bleed into 2020, this would be it how great that we have you here in person for the start of the year >> it is going to continue to dog the markets because of all the uncertainty. state media hasn't made a peep
that there is going to be any kind of signing on january 15. that is something to watch another thing to watch is what is happening with the economy. we have more disappointing data. the pmi is a survey for private smaller companies. it showed it wasn't really good. 51 51.5 versus 51.8 new records are zroping and what people are looking for now is how the economy will shape up for 2019 on january 17 when the gdp number is released underscoring the agilities and stabilizing the growth there are a lot of reasons because they do see the slow
down >> a long time ago, china made a promise they would double the gdp from 2010 in 2020. they made a big deal about that. president xi said it once again. the expectation now is that the government will want to stabilize growth especially when it has all of these other geopolitical issues on their plate. another reason why there is a big believe that china does want this truce and does want this trade deal to go on. we haven't heard a whole lot they will want this signing. >> the intention is there. >> we are heading into the chinese new year as well. >> the spending is still there it is like christmas you have to buy things, you have
to eat a lot of pork still a lot of spending that will go on even before i left, coming here. the cash crunch and the discussion is really big right now. we saw moves the other story that was pretty interesting is the -- i don't know if you saw this one, they were reporting that china is going to halt the stock connect with london and that there have been a lot of discussions about maybe that is going to happen because geopolitical issues are on the rise. >> thank you we were in beijing at the same time living in the same complex. it is so nice to see you >> thank you let's look at some of the other top stories we are following
happy new year >> let's do overseas now as protesters rallied police used a water cannon, hundreds of demonstrators were arrested in all, they say they made 400 arrests on new year's day. steven mnuchin will lied the forum joined by wilber ross and lighthizer you may remember it was reported that president trump was intending to be there after scrapping plans last year. apple has penned a deal with uk chip dealers. this deal will give apple access to a pretty wide range of the
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♪ ♪ >> got to be loving the canadian music this morning looking at the top s&p stocks of the decade look at that, netflix's in that top spot up more than 4,000% over the last 10 years the question of course, can it repeat that kind of performance or anywhere near it. facing a ton of competition. new details emerging today over how former nissan chairman ghosn managed to skip bail in japan and escape to lebanon. >> so much intrigue. >> what a way to kick off the year >> something out of a movie.
apparently, we are learning the plan to slip carlos ghosn out of japan was reportedly hatched over a heard of about three months he was smuggled out by a private security company on a private jet first to istanbul and then to beirut. the pilot was reportedly unaware of ghosn's presence. he and his wife are staying at a close family's house ghosn was greeted by lebanon's president. thanking him for his support the reports say lebanon had pressed for his return about a week before he escaped saying no need to take matters
because he entered the country really even though his lawyers are holding his other three passports. lebanon has no extradition with japan. he had four passports. he was allowed to keep one of those as a condition of his bail it was supposed to be held in a safe clearly he had access to it. >> this is a story that is far from over. he has said he will be defending himself and talking to the media in weeks ahead the focus will shift to the japanese legal system. how he could have gotten out and why he was allowed to keep a pass port and could raise questions and be an embarrassment. >> i think it is a black eye and it depends on who you are
asking we heard him say he wasn't escaping the rigged justice. there is a good editorial siding with ghosn saying the evidence was merky and japan doesn't have good corporate transparency. >> a busy year shaping up for washington as new funding members make it to the cnbc news room and seattle has been at the forefront. >> announcer: today's big number $976, $976,308,000,000s that how much the market companies of plape, microsoft grew over the year the two company's total gain in 2019 or the famed peaks of whistler,
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♪ don't get mad. get e*trade, dawg. two years ago, my wife and i were over 50k in debt. through sofi's help refinancing we paid off all that debt. now we're debt free and visiting places like this... thank you guys looking at a live shot seattle has been at the forefront of progressive minimum wage increase phasing in a $15 an hour minimum wage by 2021 and given proponents of both sides of the issues evidence of pros and cons to hiking wages kate rogers went there to find
out more >> reporter: seattle's minimum wage hikes made chat mckay re-evaluate his business model all together >> he has long paid above minimum wage both front and back house to attract talent. >> we projected out the minimum wage increases, the loss of what would be considered a tip credit and realized we'd be functionally bankrupt if you fast forward the ceo of fire and vine hospitality nearly doubled in size thanks to moving to a commission model adding a 20% commission. today, the company has 600 employees and 12 locates servers can now pull in between $70 an hour or more.
dish washers can pull in $17 an hour >> i haven't worried about minimum wage since we left behind minimum wage as an issue for our company >> partner at tom douglas seattle kitchen says he's getting creative in terms of scheduling and paidleave there is a tall enlt crunch being felt despite offering pay above the minimum wage >> it looks like for our company, we are looking at models of restaurants that take less labor we've had to reengineer some is so they are smaller. >> growing for years
the number of restaurants is up 5% with annual sales increasing 20% over the same period seattle's job growth has outpaced the state of washington as a whole so too has homelessness by 11% when johnson first arrived in seattle in 2018, he was camping along lake washington. today, he works three temporarily jobs at the stadium, as a janitor at costco living in the city is out of reach. >> when you are down here, you are getting $15 to do the same work you feel better about yourself you feel appreciated
you can take care of your family more. >> beyond seattle, the federal minimum wage stands at $7.25 an hour the congressional budget office estimates such a move could boost pay for as many as 27 million low-wage workers but also cause mimones of people to lose their job >> you see the affect amazon has had on the city. property prices. you talk to the gentleman that couldn't a forward to live in the city we were talking about washington's economy doing so wrel >> you see it in new york, san francisco now. very expensive, very high cost of living areas.
we don't quite know what a $15 an hour would look like in the middle of the country where things aren't necessarily as expense give it would give many a big boost but also reduce jobs some reports basically saw workers pay increase if they were already working minimum wage job and others saw hours cut. we are still early on. many people look to seattle because they were at the forefront. >> i'm looking forward to the rest of the series thank you for that straight ahead, the push to raise prices on more than 200 drugs in the u.s. and how tesla is kicking off the new year on a bullish foot "worldwide exchange" is back after this
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>> welcome back. futures set to surge the dow set to open higher if the indication holds the s&p 500 set to pop nearly 18 points 2019 may have been a year of records for wall street. when we come back, we'll talk about some of the world's top money managers who are not convinced that 2020 will be more of the same. "worldwide exchange" is back after this
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warren buffett's decision to turn down the chance to buy tiffanys as the second half of "worldwide exchange" starts right now. welcome back a very happy 2020. i'm in for brian sullivan. let's check at the headlines outside the world of business with frances rivera. good morning and happy new year. >> we start this morning remembering an all-time yankee's legend don larsen has died at the age of 90 years old. he pitched the first and only world series no hitter and perfect game in 1956 the yanks went on to win the world series he took top honors he won another league with new york and then was shuffled
around the league. >> nba commissioner david stern has died at age of 77. credited for transforming the league under his leadership, the league launched seven new teams the u.s. embassy in baghdad is secure. using tear gas before demonstrators dispursed. no reports of any injuries in that assault here on this second day of january and hopefully on the third, you'll get your voice back >> i have my fingers crossed disclaimer it is not from partying thank you for asking that. let's look at how stock futures are looking half way through the 5:00 a.m. hour set to close out a record 2019
and kick off a new year. the s&p 500 looking to open if these implied numbers would stick. the dow futures surging 166 points still below that 9,000 mark it hit last week. the s&p announced they are coming off their best annual gain locking in the gains for the nasdaq top stocks for the s&p in 2019, amd. lam research semis were a big theme taking a look at the bond market the 10-year yield at 1.982%. wrapping up the first of their year japan had strong gains from last
year ending its day in negative territory. both saw gains of more than 1% let's also take a look at what's happening in early trade in europe european markets also started the year off ftse 100 up, the cac up. looking at other top stories we are following. >> tesla is saying it is set to deliver a second round to customers. the delivery will happen on tuesday at an event at a shangh shanghai factory these customers are not like those. set to place a ban on flavored vapes. trump is expected to formerly
make the announcement tomorrow big pharma has running in the new year by raising prices on more than 250 drugs in the oous. bristol meyers and elliott sciences and biogen are among those maybing the hike that has been a very hot button issue. i'll send it back to you >> president trump looking ahead. the president says he will sign that deal at a white house ceremony john an 15 with as he says, high level representatives of china president trump adds he will travel to beijing at a later date according to reports, he will push to more concessions from china. >> wall street keeps posed to raise the gains.
rolling into 2020 at first, ahead of the first trading day of the new year after a banner decade from investors from 2010 to 2019. the dow rose 173% while the s&p was up 190%. big winners climbing 295% over the last 10 years. the best per formiforming stock be netflix rising over 4,000%. when it comes to the markets and the chances of a recession. >> absence the mistake i'd say this year and next year. this is probably a 40% chance of
recession. >> the market dropped 25%. bernie sanders, same thing >> joining me now, senior market analyst. good morning happy new year >> you are our first outside guest of 2020. >> you just heard all those sound bites. really no real consensus there what are you seeing in terms of the recession risk it has certainly gone down considerably one of the two major concerns, running from the past year have been political concerns.
the trade dispute and the possibility of a difficult exit of britain from the uk both of those have vanished or definished tremendously. that return based on whether or not these two problems will come to fruition will diminish. this is no longer a concern. that will bolster in the united states an already strong consumer economy in addition, even the areas such as europe which have been growing slowly will be booied if the u.s. and china take off from this trade deal, which is not a guarantee. i don't really see a chance for a recession. >> you see these risks have been diminished there is a good chance they
could rear their ugly heads again. phase one, we don't know all the details. it is an election year, how are you factoring that in? >> it really depends on the democratic candidate we are not going to know who they will be until the summer. it does not seem anyone is really running away with this. as far as donald trump goes, we already know what we are getting and what we have his policies have been played out for us i don't think there is any mystery there. i don't see the election unless there is an unusual element. that's always possible that would not be received well by various markets around the
world. certainly not the year we've had but a solid year, what will drive those gains. we've talked about trade, we've talked about the election and brexit the fundamentals, earnings growth where is that going to come from >> i see two things happening. that has been a psychological drag that will be diminished we have something returning as far as vim and verv in the economy. what i'm looking for would be increased growth getting that up to 3.7%, that is enough energy to drive sectors such as consumers, i would anticipate energy sectors and
commodities that will be priced higher because of increased use. that is certainly true from china. i think you have room there. >> thank you for being with us coming up, the home shopping season moving up on the calendar what has potential buyers looking for a new home in the dead of winter plus bently makes a push fo the electric car market. all of this and more when we return
the severe shortage of homes for sale actually changing the chal alen. apparently january is the new april. spring starts now. it found 2015 through 2018, the peek month for average listings was april. january lacked by 16%. in 2019, january was 1% slower than february. in 20 of the largest metro markets, january surged to the top. the busiest month for views in new york, l.a., chick, dallas, chicago, atlanta, denver and san jose in 2018, that was true for three of the top 100 metros. atlanta is continually competitive this year. >> i've gotten at least 30, maybe 30% more phone calls
already to start the home search in january it is a race out here. either they get started fast or wait until the actual spring mark market and miss out on all the inventory. >> the average price for homes down 9.5%. the price of sent ri level homes. >> strong start. can we read into the rest of the year here? do you think these levels can be sustained or are they likely to pull back? >> usually in the fall, we see a rise if we start to see more buying now, you'll see a whole lot less come spring when all those buyers are out there again looking to move to the summer. it will be all about getting more homes on the market and
more sellers and builders to ramp up production >> let's find out what else you'll be talking about today time for this morning's top trending stories good morning again >> so bentley is joining competitors and moving into the electric car space saying future products will be all about election ification now they are focused on firming up production. previously unveiled car designs for the x 100 that will likely be a blue plint they are also owners of volkswagen they may rely on that company for help >> it may be because i live in california and i see teslas all over the country
2025 seems late to me. >> it is but it is bentley. it doesn't even seem to be the same i don't know tesla has a high-end electric vehicle. >> bentley is trying to get into the game >> no denying that streaming has grown. we have some incredible figures. saying it now accounts for 80% of the american music market that surpasses both digital and downloadable sales in 2010, streaming only. what i think is interesting, now when you talk to your friends, are you a title people, apple music person, pandora person >> i am a spotify playlist
>> i am spot iify through and through. those figures are stunning >> amazing one thing i heard is that now you are noticing with newer songs, some are much shorter so that you stream them more often. >> interesting >> sneaky, sneaky. the wait time for one of the disney most anticipated series just got shorter one of the pin offs slated the captain america falcon season two of the mandelorian as well i think they had 40% of the u.s. box office in 2019
it looks like there on a hot streak >> they are really leaning on their franchises to do so. >> exactly >> like they are not even trying to create anything new they don't think to. >> and why you'll go to disney plus, hbo max, netflix >> i don't have netflix. >> you don't >> i am a company person >> you do have netflix, right? >> yes orange is the new black, right >> the nhl interclassic. the stars taking on the nashville predators at the cotton bowl in texas the game tied with less than 30 seconds to go. they score on the one timer.
the stars would add one more goal to beat the predators for two. the nfl will head north for next year's game to target field in minneapolis. on deck, we brek down what to anticipate in the market rchlt "worldwide exchange" is back in just a moment. upport br. you can find it in the vitamin aisle in stores everywhere. prevagen. healthier brain. better life. i am totally blind. and non-24 can make me show up too early... or too late. or make me feel like i'm not really "there." talk to your doctor, and call 844-234-2424. looking to get your business off to a fast start in the new year?
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company that took him out of the country on a private jet another report said authorities allowed him to carry a spare french pass pourt. >> warren buffett apparently passed on the chance to buy tiffanys he was approached by the jewelry giant about making a counter offer to lvmh's bid. he declined. extenting the four-year stretch without major acquisition. >> airbus tops boeing hitting 863 deliveries topping the target of 860. for the first time airbus is expected to overtake boeing for the top spot as it continues to face the 737 max kcrisis
>> an upgrade to tell you about. cannacord upgrades tesla from $375 to $515 that is now the highest priced target on the street reasons for the upgrade include strong demand, shrinking balance and demand coming off a very stellar 2019 where it was up about 35%. let's take a quick look at the markets. we embark on a new month, new year and a new decade. let's bring in coo of kpm financial. good morning and happy new year to you >> happy new year from chicago we are excited and constructive
on the new year. >> i want to get your take do you have a take on tesla? >> it is a pretty lofty price target it has had sensational move in december i know the sober truck has posted a lot of emotion and movement they'll still be held to the take on the fact will they still be delivered if he can deliver, you will see the momentum and right now as it closes around $418 can you see this achbnd tesla b about $400 looking at tech more broadly it has been the performer of the last year and the last decade. does that continue broadening that out >> the last two sectors were consumer cyclicals and slk,
which is technology. see we are talked about apple and microsoft. they contributed to over 15% of the s&p 500 gains, which was nearly 30% for 2019. that momentum. we think that momentum is still in tact. some of the high fliers like the apple and the fop holding. you see master card and everyone intel. a lot of people would be putting money to work. >> if you have the big names, you would have emitted a few. >> amazon was up if you talk about amazon prime, it continues to make people crawl deeper.
i know personally, we use amazon for about everything my kids are getting more and more involved. these are names we want to add to as the year presents count. it was a sensational ride. the fed, the consistency they are bringing in the market has allowed the markets to move higher as long as the 10-year note is staying under 1.95%. a number that is really going to allow for stock markets to gain and move higher. what if anything is going to be keeping you up at night? >> i think it is the fed it is an election year
historically speaking. i do worry about the fed they switched stance they were supposed to really move the rates three times they ended up cutting rates three times. that about face, we'll see how they continue to follow through on that messaging. as long as that is in tact, the market is in a good spot do you think the fed could change its stance this year? >> we worry about it all the time the fed policy is always a concern. the mistake. some type of mistake that could really jeopardize more in 2020 that's always a situation that keeps me up at nights. >> what will be the impetus of next year. a lot of what drove last year,
those cuts and driving the returns in the konling year. talking about the rates going and recession talk, that pushes things to go lower they are chasing alpha hang in there. >> that is it for "worldwide exchange" "squawk box" begins right now. >> good morning, stocks surging to start the new year. and other market catalysts in 2020 >> hundreds arrested from protests the latest >> more on ghosn's escape from japan.