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tv   Street Signs  CNBC  March 1, 2021 4:00am-5:01am EST

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how jenn was able to transform into a better salesperson, and how the company was able to transform to the next level and still exist almost eight years later. good morning and welcome to "street signs. i'm joumanna bercetche with julianna tatelbaum and these are your headlines the return of the rally. european markets coming back with a bang this morning as bond yields retreat from last week's highs. uk home builders surge to the home of the stoxx 600. they say budget will see more help from first-time home fires as they look to get into a red
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hot home market. final pmi data showing french and german manufacturing recovering faster than expected. and dannon's cream of the crop shares are up as it plans to sell its stake in dannon dairy. very good morning and welcome to "street signs." let's kick off the show with fresh data crossing the wires from the eurozone pmi front. we have the ihs final february manufacturing pmi and it's come in at 57.9 for the region. that was slightly better than the flash estimate of 57.7 the final pmis tend to be a fairly lackluster event but recently we have been receiving
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some divergence from the flash figures and we've seen slight improvement from what we were expecting. a little commentary from ins manufacturing is appearing as an increasingly bright spot in the eurozone's economy so far this year the solid manufacturing expansion is clearly offsetting virus-related weakness in many consumer-facing sectors, alleviating lockdown measures in many countries that's the message from ihs. still some supply chain issues intensifying, in particular in germany. overall, a stronger manufacturing pmi for the eurozone. >> let's check in on home markets faring there's a lot of green on the board. we're starting off on a stronger footing than last week stoxx 600 closed down 2.5 percentage points on friday. today we are up 1.7% sentiment is certainly a lot
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more positive after a better handover from asia and also positive developments on the vaccine front with the johnson & johnson vaccine formally approved in the u.s. deliveries are expected to start this week, as soon as tomorrow yet another positive step in the efforts to vaccinate the world definitely has been met with some positivity this morning in europe stoxx 600 up 1.7%. ftse 100 squarely in focus today, up 1.8% we're seeing a big jump in home builders i'll get to that shortly all of this ahead of the uk budget on wednesday. a lot of the details -- some of the details were released over the weekend, sort of leaked to local media. it will be interesting to see how the actual messaging wednesday differs from what we found out over the weekend we'll talk more about that ftse 100 up 1.8%
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cac up 1.6%. seeing more in airbus, sectors that have to do with reopening and with travel are doing quite well the xetra dax up as well as ftse mib. in terms of sectors it, we are seeing a big bounce in cyclicals. at top we have travel and leisure, up 2.4% retail up 2.5 percentage points as well. any single sector that has exposure to the economy's reopening is doing quite well today. in terms of underperformance, we have autos still up about 0.7% chemicals as well up 1.2%. let's turn to the uk the uk chancellor has warned he needs to be honest with people as he looks to plug a 43-pound hole in the economy. he will reveal his proposals on how to do that on wednesday.
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the "times" reports he will raise corporation tax to 25% over the course of parliament and will look to raise around 6 billion pounds in income tax reuters reports grants totaling 5 billion pounds for a hard-hit business will also form part of the budget speaking on skye, he warned of doing neu nothing. >> the coronavirus has had an enormous toll on our economy and i want to be honest with people about our plan to address those. we do have a challenge in our public finances. if we don't do anything, borrowing will continue to be at very high levels, even after we've recovered from covid debt will continue to rise indefinitely. >> multiple reports the government will launch a mortgage guarantee scheme in a bid to get more people on the property ladder. they are set to guarantee for
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people with deposits as low as 5% you can see a huge bounce in some of the home builders today. er is a huge bounce in some home builders who stand to benefit. what that means for house prices remains to be seen for the home builders, certainly positive news. we'll get affirmation of that if it goes ahead wednesday when mr. sunak releases the budget. let's get out to our first guest, michael harris joins us it's great to have you back with us on the show i think you and i spoke december 30th just as the brexit deal was be being inked. you had a bullish view on the currency and obviously that's played out well. the pound is trading close to 140. are you taking profits or do you think this is going to continue in. >> cyclically you'll get periods
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where you have to digest gains on that scale. what's important to understand is the uk had years and years of uncertainty. so, i heard someone use a term recently calling the brexit hangover actually, we've taken our medicine and now it's just upside from here we shot ourselves in the foot. it wasn't a smart thing to do for the country but that's been reflected in the pound and uk asset behavior over previous years. this is a turning point. that has to take a while to play out. actually will have some teething problems as it plays out ultimately, i would be super surprised if it the pound is not less than half where it needs to go on a two, three year view the terms are clear. it might not be as smooth as we want the uk city has taken some pain associated with this on all currencies are zero sum
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after years of uncertainty, i would be surprised if the uk is not a long-term winner from where we stand. >> certainly the pound is one of the best performing currencies this year, with the exception of the aussie, which is a commodity currency i want to turn you to another question and one that has dominated the press over this weekend and that is of the language that the chancellor sunak is taking up in that he has suggested that now is the time to start thinking about fixing the state of public finances in the uk that makes the uk one of the only countries in the world talking about tightening public finances and reining in the deficit. when other countries, for example, the u.s. are spending the u.s. are on the verge of releasing $1 trillion plus package. do you think this is premature
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tinting on behalf of the chancellor and is that going to come back to bite? >> considering these are the conservatives, i would be surprised if they are overdoing it we need to keep in mind, there are elements of society where if you tax them, it will have no negative ramifications associated with growth what you want to do is make sure where taxes are used at this early stage, they're not growth negative there's a lot of potential for that, so we shouldn't hide behind that. on balance i think we shouldn't be surprised to see gdp neutral tax rises, if that makes sense on the view the government spends it, then the theory, if these were otherwise unproductive assets or windfall beneficiaries, i don't think we'll be in a position where after we see the budget people are going to say, the uk is shooting itself in the foot by taking away the punchbowl before the party started.
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this is not a party we're talking about. this is recovery that needs to happen the uk has done a very, very good job one of the reasons why the u.s. is in the situation it is,it's much less efficient about providing that stimulus. a lot of people that deserve unemployment are not getting it. they have to take this shotgun approach, which is much, much less efficient it would be much better if they told people, look, if you end up making $100,000 next year, we'll tax this $1400 back from you instead they're giving it to anyone and it risks being a little inflationary and out of control. probably a good thing for markets. how the uk has handled this, i think few people could fault the performance of the uk during the performance of the coronavirus crisis when it comes to economic policies >> michael, you mentioned how all of this stimulus that's being pushed into the u.s. economy could ultimately be inflationary clearly that was a hot topic in markets last week as we watched
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bond yields rise and the impact that had on certain parts of the equity market. it seems as though investors last week were dabbling with the view that the fed may not be able to stand by its pledge to remain accommodative if we do see inflation pick up in a rapid or material way. how do you think the fed can actually lean against rising yields in a more meaningful way? >> well, there's nothing wrong with 1.4% ten-year in terms of con training u.s. growth the fed remaining accommodative, if the economy is starting to work, they don't need to remain accommodative. actually, we shouldn't treat it as gospel as the starting point is the fed it has to be super, super supportive they want to support until it's clear the economy is coming back it's not clear that the economy is coming back there are tons of people in the u.s., unfortunately, suffering hugely in the uk as well. and the -- you know, this, unfortunately, you know, the
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stimulus, it's not a bad thing to throw stimulus at a time of economic weakness. because the vaccines are coming, because we can see daylight, we're suffering in the u.s. because the democrats made a political promise associated with the $2,000, which was a very last-minute idea and trump pushed it. so, they're a little stuck there. they should be walking that back in terms it of taxing it away as i mentioned or lowering the threshold dramatically you know, households that make $250,000 have no business getting a subsidy of this level. on balance the shotgun approach is problematic it's been lost as well the progressives have embraced it, but it's really very short term the u.s. should be using all its firepower for infrastructure and longer term gdp developments on balance i think the fed actually might be the mechanism that constrains any overstretch associated with fiscal it's rare. in all of these years we could have talked about overstretch with fiscal policy since the
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last crisis, and it looks like we might be on the cusp of getting that, having slightly higher interest rates -- the market will adjust to that but on balance the fed will not be constraining growth in the u.s they're going to try to make sure it doesn't get overdone i would be relatively confident being positioned for u.s. recovery and not thinking about some sort of major crisis or problems associated with u.s. getting it wrong i think the stimulus they push through right now will be fixable and it will probably be a justification for the democrats coming through with tax rises once things have normalized this is not going to be a pure populist all guns blazing for the next two years i think it's clear if we're back on stable footing, the likelihood is we'll see a lot more balanced approach >> michael, if i can continue on
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our tour of the world and continue to europe from a labor market perspective has been to provide these short-term working schemes to effectively keep people funded and that was the way the europeans thought it was best to respond versus some of the ways the u.s. did, for example, with expanded unemployment benefits as europe faces this slow vaccination rollout and looks pretty disappointing relative to the uk and the u.s., what is the economic outlook from -- for europe relative to the u.s. and uk do you think they're going to end up lagging in a meaningful way? >> i think it's a longer time to recovery associated with the more cumbersome vaccine process, let's call it. but on balance, because they did protect workers in a lot better way, the threats associated are more costly. one of the reasons why the u.s. needs a shotgun approach is because there's a fear there are
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too many jobs lost in essence, the u.s. has to overcompensate for weakness of its corrective covid policy where europe probably has the capability to buy more it's unfortunate because people will continue to lose lives unnecessarily, but from an economic perspective, yes, europe will underperform and you probably want to position that way from an equities perspective. on balance, i don't think we'll be in a situation where we worry about europe's ability to recover on the backside of the vaccination process. >> as they look to round things up we'll leave it there very clear views today on "street signs. michael harris, founder of cripstone strategic macro. turning to some company earnings logitech has slightly increased its outlook targeting around 63% sales growth in 2021 the swiss-american computer goods maker reports heightened demand, owing to work from home and online ledger spike during
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the pandemic the company has warned a slowdown of the trend in 2022, forecasting a flat growth line. astrazeneca sold its 7.7% stake in moderna for $1.2 billion recorded in "the times." it came after the biontech surged due to the covid-19 vaccine. astrazeneca's jab may be sold commercially if the virus becomes a pandemic in the future. danone says it will sell its steak in china's mengniu dairy company. charlotte has been following this as investors have wrapped up corporate change at danone. how do you think investors are going to react to this move? >> it will be interesting to see
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if this is enough to appease shareholders it's unlikely to tb the case because we know some concern there shareholders have from the overall strategy going on for the past few years at danone you have blue bell in the beginning of the year, for him to go and for separation between the ceo and chairman role and largest artisan partners jumped in with the same message saying a third larger shareholder and calling for the strategy to change we know the current crisis impacted danone. parts of the business like bottled water has been impacted because of restaurants bes closed and people working from home, and we know some problems, for example, the european dairy division were from before the covid crisis some of this is calling for a
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revision of some of the strategy, brand and focus on more core brandz brands. we know that, according to some reports in the french press, there is a board meeting today to discuss governance issue, another key milestone will be in march when the company presents the new strategy to investors. it will be key moment for the future of the governance for danone and a new strategy was prevent in november. reorganization as we look at portfolios of about 120 brands and regions where the company want to evolve they are cutting 2,000 jobs as well we know the ceo there is still very much under pressure danone hasn't performed as well as their competitors at the moment looking at this announcement on chinese business we see the return of majority of
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shareholders, as they are trying to woo investors on their side, which is a positive reaction with shares up 2.3% in paris >> thank you for the overswru. . warren buffett's berkshire hathaway announces a buyback as the investors says tres re ce.he imo, the fair and honest bidding site. an ipad was sold for less than $24; a
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welcome back to "street signs. china's factory activity grew at its slowest pace in nine months in february as weaker overseas demand put a toll on the country's output. warren buffett's berkshire hathaway has bought back a record $24.7 billion of company stock in 2020. nearly five times the previous high in his annual investors letter, buffet defended the buyback saying it will help give the business more flexibility to handle future problems meanwhile, full-year operating income fell by 9% as strong fourth quarter performance failed to offset the fallout from the pandemic.
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for more highlights from buffet's investor letter, including why he thinks a miscalculation led to a $10 billion loss for berkshire, head to our website that's former u.s. president donald trump has said his career in politics may not be over speaking at the conservative political action conference's annual meeting, his first major appearance since leaving office, trump took aim at the biden administration, continuing to refuse to accept election defeat >> actually, as you know, they just lost the white house, but it's one of those things but who knows. who knows. i may even decide to beat them for a third team, okay >> the and the white house is set to make a statement on its relationship with saudi arabia later today. this after a u.s. intelligence report implicated saudi crown
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prince in the 2018 murder of journalist jamal khashoggi dan murphy filed this report. >> reporter: the united states will further detail the measures it's taking to recalibrate its relationship with saudi arabia later today. it comes following the release of u.s. intelligence report on friday which said that crown prince mohammed bin salman likely approved to kill khas khashoggi. the saudi government firmly denies that and says his killing was the work of a rogue group. the u.s. has imposed a visa ban on 76 saudis believed to be involved in the murder and sanctioned others, but so far it stopped short of directly sanctioning the crown prince the former u.s. ambassador to saudi arabia telling cnbc the recalibration is necessary but no additional measures are expected >> he will put a strong emphasis
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on a real partnership with saudi arabia in getting support for the things he wants to do both in the region and in the world he also wants to make sure that the saudis understand that their relationship with russia and china has severe limitations china and russia, i think he will work to ensure, and i think they do know this, that those two countries are never going to come to the defense of saudi arabia the way the united states will. >> it's clear the two countries are still critical to one another in the region. the u.s. is going to have to find common ground on issues of joint concern with saudi arabia, like the ongoing iran nuclear deal negotiations, the conflict in yemen, human rights, weapon sales and regional peace and stability. dan murphy, cnbc in dubai. and on the stimulus front, the u.s. house of representatives has passed the white house's $1.9 trillion
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stimulus package in a vote along party lines, receiving no republican support the plan includes direct payments, an extension of unemployment support as well as local government assistance. the bill now moves to the senate, which will pass a different version of the bill after deciding against including the federal minimum wage proposal passed by the house president biden says he hopes congress will move swiftly. >> now the bill moves to the united states senate where they will receive quick action. we have no time to waste if we act now, decisive, quickly and boldly, we can finally get ahead of this virus. we can finally get our economy moving again and the people of this country have suffered far too much for too long we need to relieve that suffering. the american rescue plan does just that. it relieves the suffering. and it's time to act well, we're going to cut to a quick break. when we come back, private equity deals continue to get
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ever bigger despite the deal count taking a hit during the pandemic
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welcome back to "street signs," everybody. i'm joumanna bercetche with julianna tatelbaum these are your headlines the return of the rally. european markets coming back with a bang this morning as bond yields retreat from last week's highs. uk home builders surged to top of the stoxx 600 and reports chancellor suna kes auj about have more help for first-time buyers as they look to get into an already hot market. europe's factories continue their hot streak with final pmi data showing manufacturing recovering faster than expected. danone amongst the cream of
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the crop its shares are up as it plans to sell its stake in china's mengniu dairy. welcome back to the show, everybody. well, half an hour ago we had the final pmi reading for eurozone we are getting final numbers for uk final manufacturing numbers come in at 55.1 it is also the slowest pace since may but, again, still above that expansionary line of 50, in line with some of the strongest results that we got out of the eurozone as well. it does tell you that across the eurozone and uk, manufacturing does continue to hold up despite the pandemic and tells you companies are a lot more resilient this time around to the social restrictions and the
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lockdowns that are in place. let's take a broader picture at what general markets are doing this morning, starting with the ftse 100 in the uk we have the ftse up 1.8 percentage points this morning we've been talking a lot about the performance of the uk home builders they're at the top of the ftse, up 4% to 5%. a new mortgage scheme, more beneficiary for those looking to get on the homeowner ladder. xetra dax up 1.3%. airbus up about 2% as well and ftse mib in italy up 1.6%. much better start to the week for european markets this week versus last week when we ended the week with the stoxx 600 2.5
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percentage points lower. let's turn to u.s. futures today it looks as notice the u.s. wall street markets are going to open in positive territory. s&p looking to open 40 points higher, dow 300 points higher and nasdaq 175 points higher there was a lot of volatility on u.s. indices last week on the higher move in fixed income and bond yields. overnight we are seeing a rebound take place and fixed income with treasuries and european bond yields all moving lower, which is helping to provide another reason for the markets to be up today as well that is the picture for wall street worth mentioning, we do get some speeches from the fed so people will be watching out for that and how closely they push back on bond yields
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on year in 2020 to $592 billion. according to a fresh report by bayne and company. the fell year fell by 24% but the deals we did see were bigger, averaging $776 billion the deals were not just huge but expensive, too, with the average multiple climbing to a new record in europe there's more private capital sloshing about, too, with $2.9 trillion across different asset classes waiting to be deployed i'm happy to say that graham alton, from bain & co joins us we have spent a lot of time talking about the lofty valuations that exist in the marketplace. and i wonder if we are beginning to see signs that the private
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equity investors are beginning to get cold feet and are saying, look, given how expensive things are trading, we would rather sit out on this one and look for a better entry level >> good morning. actually, the story is quite the opposite this year has started full of energy and enthusiasm in the private equity industry. the first two months of 2021 are 60% up on the average of january and february over the last five years. so, the industry is going full tilt. >> what is the expectation of returns looking ahead, though? if valuings are so high, does it go hand in hand that you can expect lower returns in the future >> it's an interesting one we've probably been saying this for the last several years that returns must be under pressure given the prices that are being paid if you look at the sectors where
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private equities have been investing, they've been careful in areas investing in areas benefitted by what's going on with covid or immune to what's going on with covid but will benefit what's going on with digital and will benefit from the other changes in consumer and industrial behavior. so, i think given that, the outlook for returns, although it would be brave to say they're going to be as strong as they have been in the last few years, aren't necessarily looking at coming down very fast. technology remains the biggest sector for private equity to be investing in it's also putting a lot of money to work in health care, in areas of industrials, which have been doing well in the building trades, in packaging, and in parts of financial services, particularly in financial technology about two-thirds of private equities investing has been into those sectors, which have shown real resilience and stronger
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returns. >> i want to zoom in on one particular part of the market that's been red hot over the last year. that is spacs. why do you think spac activity boomed in 2020 and do you think it's going to last >> it's a fascinating one. this one has come up on us fast. last year was over 80 billion going into spacs last year this year has started even faster just as i was saying about the private equity market for january and february being red hot. it's about the same for spacs, $25 billion per month for january and february after a rip roaring start in that area, too it's largely driven in the u.s. at the moment, although i think we're seeing some activity around amsterdam, which could bring the european market up as well it's really an opportunistic
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play here, i think, where public markets are high there was a lot of money looking for places to invest there are issuiers, representatives with strong pedigree who are sponsoring these spac issues. when you look at it, it's a bit of a free bet for those investing in the original ipo. they have the option to redeem their position once the ipo -- once the spac has merged with a company and they can take their money out fully and retain their warrant. at the moment you would see no reason not to invest in a spac, at least prior to the merger it conducts we'll see where these things go. i think at the moment the returns data on spacs, shall we say,ist in the balance
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>> i noticed in your private equity report, you ran some analysis comparing the end-to-end performance, so pre and post merger timed to moves in the s&p 500 what did that analysis tell you? >> yeah, you're right. we looked at the period 2016 to '19 and the data shows us in the period post the ipo and up until the merger, the spacs have outperformed the market. and then after the spac merges with a company and effectively brings that company into the public market, actually those spacs have traded down versus the market 2020 data is more encouraging and that's when we've seen this huge lift in the amount of money going into spacs not only have they traded ahead of the market prior to their
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mergers, but they've actually stayed ahead of the market post the mergers. obviously this data is very recent we'll have to see whether invezers post merger are going to want to stay with spacs >> we're going to leave it there. thank you for speaking with us today on the show. graham elton, chairman of bain & co. european securities steven major has told cnbc that eu watch dog is focused on growing the size of capital markets. saying the issuance of bonds and repeat issuance of equities is strong but the lack of ipos is a worrying sign. >> where there's some areas where it continues to be concerns is around the equity issuance, ipos, which is problematic, at the same time, it's not only a financial market
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issue, it can be related to issues outside, for example, taxation issues or broader economic conditions to go public but we need to continue working on more convergence supervision, more convergence in the rule book. koomg up on the show, zoom reports its full-year results later today, but is the stock at risk as investors rotate away from the so-called lockdown stocks toward value names. we'll discuss next
4:42 am, the fair and honest bidding site. an ipad was sold for less than $24; a playstation for less than $16; and a 4k television for less than $2. go to right now and see how much you can save. remember, shipping is always free.
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welcome back to "street signs. i want to give you an update to the astrazeneca story we flagged earlier in the show. this report that astrazeneca sold its moderna stake one of the big questions is when exactly they sold their stake given moderna shares have jumped on the back of month positive
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vaccine news according to the annual report from astrazeneca, they sold the stake over the course of 2020. a little more clarity on the timing there in terms of astrazeneca's moderna. robinhood is planning to file for an initial public offering, ipo, as early as this month am, according to bloomberg. the trading platform has been one of the key players in the frenzy this year, which sent the shares of gamestop and others on a roller coaster ride. at the hate of the mania, robinhood placed rating restrictions and raised $3.4 billion of funding as it struggled to match clearinghouse requirements this will convert into equity at the time of the ipo at a 30% discount > . zoom reports its fourth quarter results after its close in the u.s. today capping what's been a momentous year for the
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video conferencing software group. zoom shares have surged over 250% in the past 12 months, but sold off last week as the market rotated away from big tech names towards value stock. this week we'll offer more insight into the state of the tech sector with the likes of box, and others coming daniel ives from wedbush securities joins us now. great to have you on the program. thanks for waking up so early. give us your take on zoom, what is, perhaps, the ultimate poster child for the work-from-home trade. >> yeah, work from home, really zoom is the poster child but i think there's been a misnomer that growth is going to fall off a cliff here. we're going to see some moderation of growth, but in our opinion, it continues to still be massive strength on collaboration software and i think zoom is positioned well, not just in terms of
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earnings but the next few quarters where you could see some of the blooms come off the rose i think this is a stock to stay on collaboration software, among with others, so we continue to be bullish in the sector >> and when you -- clearly you mentioned how the market, the broader narrative has been changing of late and investors increasing considering shifting away from some of these growth stocks, which have performed so well in large part because interest rates have remained so low. as a basket of stocks more generally, do you think that u.s. tech is vulnerable if we do see a sustained rise in yields >> yeah, i mean, look, ultimately in terms of the rotation, some of these white knuckles we saw last week, we think that's just short term in our view is that tech stocks are up another 25%, 30% this year like you talk about in terms of rotation, in terms of this cloud shift, this transformation, this
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is not going to slow down. i think we're seeing that with microsoft, salesforce and others, across the whole system. there could be pure work-from-home names like zoom with moderation of growth, but overall, we're talking about a golden age of cloud. e-commerce, cyber security that's not going to slow down, which is why in our opinion it continues to be a bright green light to own tech despite some pullbacks we've seen over the past week. >> looking forward, a lot of these work-from-home stocks also have skriction models whether it's peloton, whether it's the microsoft cloud, et cetera how important do you think are the subscription models going forward in order to lock people into the ecosystem and do you favor companies that have that model? >> it's a great question and i think that's a huge part of the rerating we've seen in terms of locking in customers and the street continues to pay
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more from a multiple perspective for the subscription model i think we start to see more and more companies are going to have some form of collaboration software even on the other side of the vaccine, we still believe 30% to 35% of the workforce is going to be either remote or semi-remote, which speaks to, i think, these areas in terms of subscriptions and collaboration are going to continue to be the hearts and lungs of companies going forward. >> it's so interesting so we won't get back to the old paradigm there will be some element of working from home that will persist. taking it back to the broader market, one other thing that people flag a lot is the concentration in holdings, particularly in some of the major big tech stocks and some of the most widely named owns are microsoft, amazon, apple, the obvious ones does that become a problem, in your view, if we continue to get moves like we had last week? >> yeah. i think that's always been a bit of a fear out there.
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but to me the stronger are getting stronger i think you're seeing that in terms of faang names, cloud during the pandemic. and i think from a stock market perspective, faang names and tech are going to continue to move this market higher. in terms of the -- what i would call the closely held names, typically large techs, to me those trends are accelerating. that's why i can't look at in infrom an investor and say, get out of these names because i think they're up another 25%, 30% going forward. you look at apple with the super cycle. look at amazon and the cloud you look at what -- you're starting to get more sea legs in advertising in terms of social media. these are massive talents for tech despite what we've seen over the past week >> daniel, you are a massive tesla bull we've talked to you many times on "street signs" about your
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tesla thesis tesla shares seem to be mirroring the moves in bitcoin of late. how linked are the two at this point in your view >> i think ever since musk and tesla dove into the deep end of the pool on bitcoin, they've started to be tied at the hip a bit. i think that's a double-edged sword. i think it's the smart, strategic move for tesla to go after bitcoin. remember, just put it into frame, they made more on bitcoin than they have from selling all ev cars last year. overall, this is going to continue to be a massive ev story. and i think you've seen a bit of a selloff here it's a digestion period across evs even with chinese evs. in my opinion, ev stocks could be up another 40%, 50% this year given what we're seeing in terms of a green tidal wave globally. >> to pick up on that, daniel, given what you say with the ev potential for this year, we also
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have traditional automakers going into the space and one benefit they do have is to make them at scale. how much of a threat or challenge do you think -- that poses to some pure ev makers like tesla >> i think right now it's a big enough ocean for more than one boat it's not just going to be tesla's world and everyone else is paying rent as we look out the next five, seven years that's fine. when you look at some of the traditional players like a gm and a ford, especially some european players, this is going to be what i believe is a renaissance, a growth for these automakers you'll see a rerating. i think this is important. the auto sector from an ev perspective, you'll see a rerating on names like gm, ford and others as they have success in ev. i think this is one ofthe most transformational growth trends in the last 20, 0 years in terms of ev, and many are going to
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play and win over the coming years. >> daniel, you mentioned -- i just want to wrap up the conversation on tesla and bitcoin because i think it's important when we think about with whether or not other companies in the u.s. will follow suit. you mentioned how tesla is on tra trajectory to make more from bitcoin profits than selling evs in all of 2020 but according to u.s. accounting rules they can't actually realize those gains. they can only realize the losses until they actually sell bitcoin. is that an impediment to more companies adopting this corporate strategy >> when i look at treasury perspective, i believe 3% to 5% of u.s. corporations over the next 12 to 18 months will have some form of bitcoin or crypto, potentially, that they invest in it will be contained until we see more regulatory goalposts,
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but this is not going away in terms of bitcoin i think it's going to be a trend that's going to be here to stay and i think what you're seeing with tesla and musk is they're seeing the forest in terms of the trees where they're going. look at dorsey and square. i think there will be more common place, especially over the next 12 to 18 months given what we're seeing in terms of this mainstream currency from a digital perspective becoming more front and center. >> daniel, we'll leave it there. thank you so much more joining us and for waking up so early to speak with us. daniel ives, managing director at wedbush securities. turning to something completely different the 78th annual golden globes took place in a mostly virtual ceremony "nomadland" with the first woman of asian descent to win an awhat rd for best director in the television categories, netflix hits such as "the crown"
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and "queen's gambit" were the big winners. it's nice to see everyone dressed up for the occasion and people weren't just slumming it back home in their athleisure. anna taylor joy from "queen's gambit request the "looked absolutely spectacular it's funny because i feel like this time around i know so many of these movies because we've all had so much time in the past year to sit at home and watch them it's great to see a lot of these actors are actually getting recognition. >> you're absolutely right i felt the same way. i've seen so many of these movies and shows over the last year one of my favorites from the show last night is when mark ruffalo gave his acceptance speech and his kids infiltrated the background, which i think so many people can relate to. unexpected people coming into frame when you're in vision. that was relatable it made the whole thing feel,
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again, like everybody has been going through this together, even huge celebrities who are now doing the same thing we've been doing all year in award show form. >> exactly a reflection of the times we live in. it's great it still went on ahead. i still need to watch "nomadland." that's definitely one for my diary in coming months. let's take a quick look at u.s. futures before we head out. it is going to be a day in the positive if we stay where we are. dow opening up 340 points higher nasdaq, 190. watch out for fixed income treasury yields are trading lower today. that's helping with the rebound. that is it for "street signs." i'm joumanna bercetche with julianna tatelbaum "worldwide exchange" is coming up next.
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friday's triple digit selloff. the fda giving johnson & johnson the green light for its single dose covid-19 vaccine. shipment will begin today. president biden's $1.9 trillion stimulus bill passing the house. it now heads to the senate for what could be an uncertain future and warren buffett betting big on beshg sure once again and admits to one serious mistake in annual letter to shareholders. robinhood has big plans for more


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