tv Worldwide Exchange CNBC July 28, 2020 5:00am-6:00am EDT
it is 5:00 on cnbc from cares to heals. senate republicans unveil the latest relieve package but at $1 trillion, is it too small? >> signs of a slowdown in hard hit states like california and texas. hours after moderna kicked off the final trials announcing the start of its own stage three trials >> call it the wild, wild west the state of the fitness
industry and the government isn't even picking up the phone. >> already strike two for baseball the season just hours hold this is tuesday, july 28 on cnbc >> good morning, good afternoon, good evening i'm brian sullivan good tuesday morning will today be a follow through like everything did on monday. it is early. dow futures are up about 33 points stocks and gold rising gold adding 2% highlighting up another 8% yesterday. that is a new record high for
gold 1,931 an ounce check the etfs that track these moves. maybe you don't want to load up a wheelbarrow with this. the gdx gold minor also at january 2013 highs as well not to be left out because everybody is a day trader now, right? robin hood users get in. let's check on the action since january as well as the slv that is the blue line there is the robin hood holders gold is the price. it goes back about two years you can see on the far right, a big jump in the number of robin hood users buying or holding that etf it has become maybe, i don't know, the new nicola or tesla
and it is metal. around the world, mostly higher in asia as well. let's begin your morning news in america's financial capital and of course washington, d.c. senate republicans unveiling their first round of aid plan worth roughly $1 trillion which many say is just not enough. frank holland with more. >> you are right senate majority leader late yesterday laying out the republican plan for what would be the fifth stimulus package passed among the highlights is enhanced unemployment insurance at 70% of previous wages instead of the $600 per week. also sending direct payment of $1,200 and $2,400 to couples using the same qualifications used in march.
also protecting businesses and doctors and schools from lawsuit. speaking more about the timing of all of this >> you are going to hear some people making different points back and forth part of making legislation. the deadline will probably get past july 31 but we'll probably get this done the first week of august >> the recent surge of covid-19 cases across the southern united states appears to be showing signs of slowing down. on monday, florida reporting the smallest increase in cases fewer than 9,000 elsewhere in california reporting the lowest case load also in florida, texas and california with signs record increases may be in the past >> pfizer began late-stage
covid-19 human trials sampling some 30,000 people between 18 to 85 across 120 sites globally including 39 u.s. states hours after moderna said it kicked off a massive trial shares of biotech up over 5% pfizer up over 2.5%. back to you. some good news according to state data, just one new covid hospitalization in arizona down from over 100 a month ago. good news. we have some breaking news right now. live pictures of china's president xi jinping delivering a speech at the infrastructure investment bank. call it china's version of the world bank we'll monitor the event and bring them to you especially if
they contain relations with the united states. into back at home, investors are watching a lot it is only tuesday we have the federal reserve with the major policy announcement scheduled on wednesday also on wednesday, we have the tech ceo antitrust hearing joining us is the senior portfolio manager. yesterday, we talked about negative trades. that's a lot for 5:15 in the morning how do you see the yield shaping up >> yes, negative trade would be a difficult topic for us all hours of the day just before 5:10 in the morning, a comment where we are seeing on real basis as we are
highlighting setting the real rates that appear positive when we look at them on the internet and tv as we adjust for inflation that will be costing us money that will permeate the globe. europe has been the poster child for this negative real yields in europe has been going on a number of months or years. we are seeing them seep into the u.s. economy and to link in to your opening stories, as long as we are able to see the ebb and flow on the front and what will see the data look at in response to the prolonged covid-19 crisis expect the yield curve to be what it is now which is frustratingly low. we do believe positive negative yields will likely
persist. >> it's amazing, people don't seem to care i'm sure they care in the sense that you are supposed to buy a bond and get a little back now you are paying for the privilege of buying a bond, which seems odd. nobody seems to be dumping bonds. >> the challenge there, bonds have given themselves a lot of cover. the typical way we would look at the fixed income, people would ask why am i buying a bond what is it paying? >> that brings around a lot of shock. the way fixed income is used, that asset class against other forms of risk. the total return from bonds has been shocking. i'll mention one index that is surprising you look at the long-term gov
credit index that is up year to date. started at basically 2.5%. the return from bonds have been overwhelming rallying off their weak spots, you are seeing the total return that is given a lot of shield in the bond fund. that has been a big tale wind is the total return number. >> i'll steel something from later on the agg, the bond in dechl in mortgages. this is at an all-time high. it mirrors treasury and mortgages at an all-time high. netflix gets all the love.
there have been big buyers in certain parts of the bond market are you worried about the mortgage side of the market. >> certainly when you choose to become a bond individual, you get used to the idea that tesla would get the headline in this case, like you said, the portfolio allows users to access we get a lot of exposure our concern is really more centered on if you stepped outside the u.s. and government sponsored, either looking to go down in structure. looking for things that have a little less protection or you start to get too specific in the private label market looking for loans or specific balances or specialty mortgages.
>> real pleasure good discussion there. nice and early 5:10 in the morning. why not now? if not now, when take care. when we come back, days after goldman sach admitted fault. a new conviction stemming from that massive multibillion 1 mdb scandal. we'll highlight another lockdown winner as americans stock up on things like wipes and cleaning supplies that name, your mystery chart. already up 24% do you know what it is no, you don't. >> later on, what have you been eating during lockdown admit it doordash knows anyway. you will be surprised of the top five of what we are ordering at home "worldwide exchange" rolls on after this save hundreds on your wireless bill
without even leaving your house. just keep your phone and switch to xfinity mobile. you can get it by ordering a free sim card online. once you activate, you only have to pay for the data you need, starting at just $15 a month. there are no term contracts, no activation fees, and no credit check on the first two lines. get a $50 prepaid card when you switch. 5g is now included with all new data options. switch and save hundreds. xfinity mobile. welcome back and good morning. we have a developing story an asian court finding former malaysian prime minister guilty of a scandal that saw
$4.5 trillion of funds missing days after goldman sach agreed to a $4 billion settlement for its role in it sources tell me a deal between goldman and u.s. department of justice could come as early as this week. a shake-up at two dow components let's get more on big store stories once more with frank >> we'll start with nike replacing its diversity chief. kelly leonard is leaving to pursue other interests if he lisha mayor was previously the diversity chief at tesla intel's top engineer is stepping down as they shake up the key technology unit. he joined in 2015 from qualcomm. reorganizing into five different teams. as part of that moves, leading
the move the consumer products giant getting a boost on households stocking up on wipes and cough syrup. raising sales outlook. the stock on quite a run up about 25% back over to you >> frank, a german company but lysol made here in new jersey. on deck, call it the wild, wild west. what fitness ceo says about guidance on reopening in the states it inogood we are back after this
welcome back we continue to take the pulse of business leaders around america. particularly, small business one sector left out of early reopening plans are gyms sitting down with the ceo of more than 1,400 businesses of brands you might know like pure barre, row house and cycle bar asking if he has any guidance
about here in the nor'easter >> a bit of the wild, wild west out there. we were? the final phase in new york and got left out of that phase we've been working with the governor's office the best we can. we are getting the don't call us, we'll call you type of message. different parts of new jersey, we are starting to get back open with some outdoor classes and things of that nature. guidance has been tough. it goes state by state, county by county and suburb by suburb it is a bit confusing. >> outside, it has been 97 and humid. from a business perspective, we got crushed. i get it new york and new jersey was the epicenter and so many people passing away every business owner says at least give us some guidance on
metrics. do you have any idea what the states are looking at? >> we are not? even here in california, we have 30 of 59 counties on a watch list then the watch list gets we know how we get on the watch list we don't know how we get off there are so many different government agencies that govern between the mayors, boards, health departments, legislative people and law enforcement there is really no continuity and hasn't been since this started in march >> fitness studios, these are high-touch industries. physical contact, generally in doors. how do you make sure your customers and clients and people
that want to go to the gym, how do you make sure they feel safe? >> since they started to reopen in certain parts of the country, a portion of our company reopened we did this under strict protocol produced capacity, spacing, air pu purification systems people schedule and come in. so we know they are coming they come in and use one piece of equipment and then back to their car. we are doing temperature checks and doing everything humanly possible to make sure there isn't any human interaction or touch to keep all of our members safe we are happy to report we haven't had any covid outbreaks
or hot spots in any of our locations. >> obviously, peloton was sort of the play at home stock in the fitness concept. others are getting in the game doyou think it will -- i hate to use the word permanently change the landscape or is there a fundamental need to go be with people out of their home >> as we reopen, we are seeing 75 to 80% of our membership come back they are still conducting classes on line line or doing ts outdoors our demand is due to the decreased capacity we are still servicing that demand boo teak fitness is a community you can't get biking in your
family room or kitchen we believe people will come back in full scale, if not more i'm sure you've seen them in the neighborhood exercising they probably haven't had in the last decade there is also a new-found fitness initiative for people. >> there you go. just looking for a little guidance from the states on what they are looking for to be able to reopen. best of luck to him and his team coming up, stretched to the max. what the biggest covid testing company in america is now saying about expanding capacity and how long it will now take to get your results back to you dofurew tus. we'll call them back we are back after this
welcome back and good morning. futures flat and slightly in the red. it is tuesday, worst day of the week let's move on. gearing up for a flurry of earnings a fed meeting that kicks off today. a tech ceo showdown. the gop covid relief bill another trillion but is that enough what is really in it we'll break it down. is baseball about to break down
right after it began new virus concerns have some very concerned it is tuesday, july 28 this is "worldwide exchange" here on cnbc welcome back and good tuesday morning, a big baseball story maybe and hopefully not. we'll have more on that in a couple of moments. getting to the markets futures not giving us a lot of help about what will happen in the stocks today things will be slow the next two days that could run wild precious metals, they continue their all-star run up again yesterday and up right now. gold will hit another record
high up 2%. silver up another 4% not to be left out all of those day traders using robin hood check out the action in the spider gold trust etf since january 2019 the slv looks the same the blue line is the number of robin hood traders holding it. kind of a cool chart look at the far right of your screen boom, kind of ignored the last two years. last few weeks, a huge spike of day traders trading gold and silver be careful out there >> let's take a wex look they don't get a lot of love take two
monster beverage not netflix or faang stocks. ao smith they make water heaters. mettle toledo. masco and ww grainger at all-time highs a lot of interesting individual stocks out there jim likes to say, a market of stocks and there are others not named faang. >> others among the gop senate relief bill. democrats criticizing the plan offering too little we got a little hint you were up reading the thousands of pages what is it that concerns the cnbc audience?
>> remember, this is a starting point where republicans are beginning this, not necessarily what will become law take a look at the headlines inside the proposal released including this idea of lowering the bonus unemployment remember back with the c.a.r.e.s. act, they plussed unemployment by $600 a week. they would like to cut that to $200 a week. they say they were incentisen i havizing people to stay home saying they will replace your salary by 70%. by october, they would like to have that in place and direct payments of $1,200 to
$2,400 and a second round of ppp. there is more money there and small businesses with fewer than 300 employees with revenue fallen more than 50% will be eligible for this second round $100 billion for seasonal businesses and $105 billion for schools and focused on physical reopening and $16 billion to states for testing all of that in there coming out immediately saying this doesn't come in near far enough. >> chaos chaos. you change the unemployment benefit. it is going to take weeks, if not months for people to get it. the economy crashes, people are hurt, they get kicked out of their homes, they can't feed their kids
what are you doing is. >> there is about $2 trillion difference no indication yet they are anywhere close to a deal back to you. >> but because mcconnell said it is a starting place an they are $2 trillion a part they could see the gop despite saying their deficit hawks will boost it you said yesterday, no party ahead of the election wants to be the one to take anything away from anybody >> right exactly. i've talked to people close to the president saying ultimately his instinct will be to put out the biggest proposal put out sign it and take in the win. there are these ideas. we saw the former white house chief of staff yesterday suggesting there should be a skinny bill where they just do the unemployment insurance and nothing else
democrats are never going to give up that leverage to get republicans to the table this week an incentive here to do a lot instead of a little. i think the republicans who are holding out might find themselves on the other side of the leverage discussion. >> the majority of us, i'll include myself in this, they are not going to be necessarily paying taxes in 50 years to pay for this >> there are no pay fors on this bill this is entirely on the government's credit card both sides have embraced the idea that you need to borrow and spend enormous amounts of money.
the question is how enormous are the amounts of money they are going to spend >> it is like the california con door when you see it and then you don't see it again for 20 years. for more on this, we are joined by our guests. grover, thanks for joining us. listen whether we have to do it or not. because it was a government enforced mandate driven by the virus and lockdown very few members are going to be in congress or around to pay for this 30 and 40 years from now. how much debt are we going to saddle on my children or our viewers kids or grandkids? >> the cost of government is total spending, not just debt. the spending itself is the
problem democrats want to spend $3 trillion. that was their demand. republicans want to spend up to $1 trillion. the question is whether this additional spending would actually help or not they want to do $1 trillion and hand the state and local governments largely to cover the cost of previous incompetence. california, illinois and new york have bankrupted themselves for pension plans. that's what they want the money for. many states have money set aside for emergencies like this and they can take care of this the truly incompetent governors and corrupt mayors who have
bankrupted their cities, chicago. and states, california, illinois, connecticut, new jersey they want a trillion to pay for mistakes that have nothing to do with covid-19. republicans are saying we are not going to do that so this is a fight and the answer will be an interesting question the republicans have said no and the democrats have those mayors and governors. >> andy, i don't blame them if that's the case. most of the people in charge right now. whether governor many you aurph. we are talking numbers that are almost inkpree hencible.
are we changing the way we think about numbers. they are so large. i'm not sure we can comprehend them >> the numbers do matter i worked in the which inton white house in the 90s where we worked with the republicans to balance the budget in 1997 since then, we've seen the up tick of the budget over time right now, you are seeing unprecedented action the federal reserve with the capacity to spend up to $4.5 trillion. they have already spent $2 trillion part of the reason is because we are in a pandemic. we are fighting a health crisis we also don't want to become a
physical crisis with respect to the economy you saw that earlier. so people wouldn't get kicked out of their homes so right now, it's about making sure they get through this crisis >> let me follow up with that. i agree with everything you've said millions of people are out of work. they were forced to shut down most of america is still working and saving a ton of money by not
doing anything look at savings rates that are soaring. i wonder if there is a more targeted way to find out who needs it versus throwing $1,200 at everyone who doesn't need it, can work from home and now has another $2,400 in the pocket >> you are exactly right i think they are working on targeting the problem and getting it to those families that feed it the problem is a very short time period you are waiting for this anvil waiting to follow on their head with people waiting to stop getting their unemployment checks >> federal income tax rates, middle tax income tax rates are near the lowest they've ever been people hate to hear it
it is true state taxes are up, federal taxes are basically at 50-year lows are middle class taxes going to have to go up on a federal level? >> they don't have to go up. but our friend, mr. biden who is running for president promised a $4 trillion tax increase, if he wins that would be very interesting plus an energy tax president trump wants to take the corporate rate from 21% down to 50 and continue to reduce taxes and do more deregulation the good news is the fundamentals of the economy are strong when republicans introduced the corporate rate.
biden wants to make it higher to tax the rate the fundamentals are good we need to get through the crisis of the health issue what the democrats are asking for, the difference between $1 trillion to $3 trillion. democrats want to spend on things that have nothing to do with the virus and everything to do with bailing out incompetent, failed and corrupt state and local governments who have failed over the last decades to manage their own budgets and come up with reasonable pay packages and reasonable pensions for government workers. >> we have to leave it there funny that 537 men and women are
going to argue about it but it is really five unelected officials that will oversee the discussion folks, i've got a very personal question to ask you come here. what foods have you really been ordering and eating? you can't fib. doordash knows it is not kale or quinoaals. sad our rbi will rank them when we come back.
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let's reopen. safely. welcome back quest says the demand for covid-19 testing continues to stress capacity. the company reports it surpassed 9.2 million tests to date. the continued high demand has extended the turn around time to more than two days for priority patients and a week or more for everybody else major league baseball may have a new crisis. less than a week into the shortened season and the league has its first wide-spread outbreak more than a dozen players of miami marlins have tested positive and are in quarantine they are still in philadelphia
miami's two home games versus baltimore have been postponed as was last night's philly-yankees game the commissioner saysing he's still positive on the rest of the season price who opted out saying, quote, now we really get to see if major league baseball is going to put player's health first. >> good to chat with you, is the season done? >> not yet we need to look to major league soccer to the women's soccer leagues. the issue there or difference is
that major league soccer, their bubble is in orlando and women's the tournament was in utah. those were bubbles that is a key difference we can debate whether baseball should have gone the bubble route. we are seeing great test numbers both leagues in bubbles. we have to acknowledge not all sports are created equally understand them saying, those marlin players are out those guys that will just rise up, do they care about the product? >> they care about the product
but these are such unique times. having those roster numbers unfortunately for the system before the season started, several minor league teams will likely bee defukt because they were trying to make the system more efficient the good news, you have all these players now available to man these rosters. it is not a perfect situation. at the end of the day, if we get to the point not every team is playing 60 games because there is not a lot of dates to make up these games. >> and a lot of teams will cry foul >> what does this tell us about football with all of these
combined your at tiesing budget of the year what do you think will happen. it is a precaution because it is much more difficult than what baseball is trying to pull off >> impossible? difficult? >> i think they can do it but extremely difficult. >> appreciate that talk to you soon we are back after this dow futures down 20 points derek, seems like your team is operating just fine remotely.
pizza was still fourth, by the way. the top three most ordered items. number three, spicy shrimp tacos. does that carry well i guess it does. number two, mac and cheese and the most craved food delivery item, the old stand by. chicken sandwich and french fries. sounds like we are going to comfort food as we mostly stay k cooped up. chicken sandwich let's take a look at the markets. joined by jeff, founder and ceo of kko no doubt, who has downed a chicken sandwich what do you think will be the hottest item in the stock market
or bond market >> interesting, actually 171 san s&p names are looking at this thursday it is like the super bowl of earnings we have amazon, apple, all the big boys i want to talk about some of the forgotten names. we are trying to find value in growth i said it. value in growth. we talk about the intensity and the focus. the faang stocks we are seeing those represent 22% of the s&p 500 look at the software stocks.
there is a lot of value in growth we are sticking with the tech theme. >> what are they rotating? rotating from those into an adobe or oracle instead. >> doesn't really roll off the tong but like the chicken sandwich, let's go into it when you see 22% of the s&p 500 in five names, let's remind a bit. we found those stocks chasing a bit. let's rewind to the bubble of the dot com period here at 22%, wir focused but it is interesting to see some of these names. really have a nice little boost.
there are some rotations here at the s&p 500, the air is a little thik thin we do remain positive. the fed will move forward. they continue to reiterate here in limited capacity. >> quickly a beautiful wall showing how robin hood traders are up on the gold and silver. the inflation concerns where the dollar has had the biggest jump in the decade. thank you. there is our chart there getting heavy to silver and gold is that going to be a mistake? >> no. not a mistake. let's go back to 2018. december, 2018 we saw the institutions jump into gold. looking at the silver, it seems like more room to run up there
the dollar is looking at making those numbers move higher. >> big trade there be careful i love it. some growth from value new tech stock names i love when you and i are on together 12 feet 8 inches of brotherly love good to see you. that does it for us here on "worldwide exchange. dow futures are losing steam down 90 points right now "squawk box" is up next.
set numbers before the opening bell in washington, senate republicans unveiling the new coronavirus relief plan. details ahead. the fight against coronavirus. we'll hear from bill gates as "squawk box" begins right now. >> good morning. welcome to "squawk box" here andrew ross sorkin and joe kernen with melissa lee. becky is off again more from bill gates and what he has to say and talking about the u.s./china reti