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tv   Worldwide Exchange  CNBC  November 1, 2021 5:00am-6:00am EDT

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9:00 a.m. in scotland. and here's your top five at 5:00 world leaders descending on glasgow for the summit trying to hammer out new emission rules more of a story, who is not there. on wall street, stocks doing something for the first time in nearly a year as we await the fed's latest taper talk this week. in the house the house looking to vote on the president's twin spending bills
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after weeks of negotiations. now another airline facing a weekend of delays and cancellations. we'll tell you who and why. and brng breaking news, the head of barclays forced out due to ties to jeffrey epstein it's monday, november 1st, and this is "worldwide exchange. good morning, good afternoon, or good evening and welcome from wherever in the world you may be watching i'm brian sullivan thank you for joining us welcome to monday, welcome to november we'll get you more on the developing barclays story in moments it is a big one. but kicking off the month like october left off with stocks running higher futures higher across the board. dow futures up 145 points. all three major averages coming off record breaking sessions with the s&p and nasdaq coming
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off the best monthly gains since november of last year. if you are counting at home, and even if you're not, here's your all-time high tally. record closes this year, the nasdaq 38, the dow 39 and the s&p 500 says anything you can do, i can do better. 59 record-high closes this year. despite some very rough sessions for apple and amazon lately, much of big tech is also coming off a record close on friday, certainly important stocks to watch. outside of that watching right there the crypto markets you can see bitcoin and ether are higher natural gas coming off the worst month since december of last year, down more than 7% and snapping a six-month win streak. still elevated above where it was. and oil coming off the best month since february with a more than 11% gain. we are watching the thursday
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opec plus meeting, will they add more barrels to the market, u.s., japan, india, all basically begging opec to add more barrels to the market but they're concerned about new covid lockdowns in the winter. seeing the price of crude oil tick up a knowledge to 83.5 bucks. many of you telling me you are paying more than or close to $4 a gallon for gasoline. certainly something inflationary to watch more on the markets -- let's do the global markets quickly hit the japan's big run getting bigger the nikkei surging more than 2%. key manufacturing data in china as well. the european markets following us, higher across the board in europe with trading just getting under way there. more on the markets in a moment. let's get to the story that's rocking the city of london, the head of barclays stepping down over his ties to jeffrey epstein. jeff cutmore is in our news room
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with more. a breaking news headline just hours ago. what do we know, what do we not know >> real shock for the markets, brian. as you pointed out initially while we're down about 1.3% on barclays' share price, initially we were down over 3% so the ceo jes staley stepping down today after british regulators' investigations into his dealings with the billionaire sex offender jeffrey epstein threw up some questions about how he characterized the relationship now the uk lender announcing today it was made aware of the preliminary results of the probe on friday evening. barclays saying the board and staley agreed on his departure, quote, in view of those conclusions. but added, that staley intends to contest these findings. the bank says it has named cs van cater, the current head of
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global markets as staley's replacement. he takes over today. staley said his departure is a personal response to the ongoing probes this according to an internal memo from him seen by "reuters." the departing chief added he did not want the probe to be a distraction. in a separate internal memo, the incoming ceo said he would maintain staley's strategy, which he called, quote, the right one. that's also according to "reuters," but he did say changes will be made, brian, to the corporate and investment bank in coming days. so we've yet to find out what the detail of this investigation will expose, but at this point the regulators saying it was about the characterization that staley himself made about his
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relationship with the convicted sex offender, jeffrey epstein. back to you. >> jeff, sort of plain english, i guess, it sounds like they disagree with how mr. staley characterized that relationship. that maybe he undersold or -- i know we're speculating a little bit, but certainly when we talk about characterizations of language, sounds like he may have undersold his relationship in some way that displeased the board and the investigation. >> absolutely. he has always said throughout that he's been transparent and clear with the regulators and the board. and the board had given him its full backing this investigation has been going on for some time as you can imagine but it is clear, i think, from what the fca and the pra, those are the initials of the regulators what they've said at this stage is that they won't comment on an
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ongoing investigation. but clearly there is something about the characterization that jes staley made himself that they reflected to the barclays board that they are not happy about and that would seem to be at the root of his departure but as we understand it, he will contest whatever findings at this stage the pra and fcr have made back to you. >> so this is not over yet and, of course, there's somebody that knows more and she is sitting in prison and not talking that's ghislaine maxwell let's go to scotland because in glasgow world leaders are meeting for the massive cop26 climate summit there was a lot of talk at this weekend's g20 meeting in italy, but will any of that talk translate into climate action. diana is on the ground in glasgow and joins us now >> brian, more than 100 heads of
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state are now arriving in glasgow as the summit begins absent is president putin and president xi u.s. secretary general antonio gutierrez said at the opening of the g20 said, let's be clear there's a risk that glasgow will not deliver pointing to weak promises from china, russia and others the g20 yesterday did agree to end coal financing by the end of the year and work to contain global warming to 1.5 degrees celsius above preindustrial levels but no pledges and end date on the use of coal. and no commitments to improve climate finance. that's what's on the table here. president biden was asked how he could urge refineries to produce more oil and at the same time push to cut emissions on the
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world stage. >> it's not at all inconsistent in that no one has an tis patded that this year we'd be in a position or next year that we're not going to use any more oil or gas. >> and president biden said that was irrational in bringing several members of his cabinet here, he's including treasury secretary janet yellen about 50 members of congress will also be here to show america's commitment to climate. this after pulling out of the paris climate agreement under the trump administration and rejoining this year. brian. >> seems like a lot of people flying a long way to talk about the climate summit russia and china not there i mean, that is a massive headline because china is the world's biggest polluter, it is actually adding a number of coal plants they're just going their own way. is there any hope, really, on a macro level for some big global agreement to come out of the
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summit >> well, that's what the hope is while they may come virtually, president xi may do a virtual statement, president putin may be there virtually, we're not told that yet. but they are hoping for more commitments towards the fight. especially on finance, that's the key here an expert told me last week that while governments will bring billions to the table it's really financial markets that will bring trillions that's why you see so many ceos here in the coming days and next week working together to see what kind of finance they can put toward the fight against climate change, brian? >> there are hundreds of billions, if not trillions of dollars at stake, this is a big money story as well. dianna we're glad you're there thank you. let's go back state side and to your money as we look to kick off november with solid gains. futures are higher the market has been strong and your next guest points out a
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little rbi of its own. history says this could spell more gains for the final few months of the year dellano, i love the historical data coming in, maybe your own rbi, random but interesting. you say the way october performed, portends, big word, portends big things for the rest of the year or at least the month of november. >> exactly right i wanted to go into the treasure trove for stats i know you're a big stat person. so a couple things i was looking at, you look at the signs historically when you look at the market the markets recovered most of what was lost in september and october from the pull back and the next month is usually strong in the market average around 3% in gains and as you mentioned at the top of the show, highs a lot of highs in the indexes, specifically the s&p if you look back historically from world war ii, the s&p 500 every time we hit a high in
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october, november pretty much sets up nicely for a rise around 3.2% so those are some historical context that i think set up november looking for encouraging signs for investors and that's what, as you mentioned, seeing the futures up a little bit. obviously nothing guaranteed but encouraging signs as we look out to november on the 1st of the month here, brian. >> this doesn't mean things are going to be good but history says likely to be. so buying the macro market or are there specific pockets and stocks that will outperform even the whole market does well >> i think there's a couple ways to look at it. we're buying some of the growth in megacap again we saw google and microsoft earlier last week and their earnings were strong on advertising in cloud and as you mentioned apple and amazon, which the market didn't responds r respond to positively with their earnings and different headwinds there.
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there's opportunities in those stocks when you look at apple and amazon i think ecommerce makes a comeback as we look toward the holiday season and you look at amazon's cloud business still growing really, really strong. i'm buying more of the growth and megacap still. but stronger, overweight on the mega cap brian. >> we have the graphic up next to you and it says meta platforms. hi to do a double take and remind myself it's facebook. i'm going to call google google, i'll never call them alphabet. meta platforms is facebook you say it's like survey says and the thing flipped. anything you don't like, in a police sta place you're avoiding putting money? >> a couple of areas investors want to make sure they're staying in their allocation
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there. i do still like facebook and that's are an area we're still holding. haven't been buying as of late rebranding and shaking up their story a little bit as they move into the metaverse investors we're in a position the near term sets up nicely but you don't want to go overweight in areas that may be overvalued in the market. you had a cryptocurrency graphic up i think there's room for the coins and tokens to take off areas you want to stay away from is the companies that are going to have problems and inflationary pressures you mentioned we are seeing rising costs if your company in the business model is going to be underpressure due to the rising cost we saw starbucks earnings they had a little bit of a struggle they'll be raising w wages. those are businesses that are going to struggle as costs put pressure on business
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i'm going to stay away from the businesses in the near term. >> drought in brazil sending coffee prices soaring. i have friends saying what's the metaverse? i'm not sure but go read the book "ready player one" and watch the movie. thank you for kicking off the week my friend have a great day. >> you too we are getting started on a busy monday. when we come back on wex, roblox back up and running after a burrito-based problem. plus leaders at the weekend's g20 summit formally signing off on a new tax agreement. now the challenge for president biden is selling it here at home what treasury secretary janet yellen has to say about that later we're digging into tesla, call options and the ro
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role in the run up past $1 trillion. we're back after this. of r. but it's all about the baby steps. maybe it's a jump or eating something green. or taking mom to get that vaccine. ♪ healthier means bringing stuff to the folks ♪ ♪ that really need it. ♪ ♪ like help at 2 am or care that's right at home. ♪ ♪ believe it. ♪ ♪ and caring for them all means ♪ ♪ we're doing healthier right. ♪ ♪ so, let's do it all together people, ♪ ♪ 'cause this is what healthier looks like. ♪
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comcast business powering possibilities. welcome back time for your big money movers three key stock stories of the day today it's two stocks and a group. stock number one roblox back online yesterday after it crashed on friday. the company said the outage was not related to, quote, any specific experiences or
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partnerships, end quote. that odd statement was apparently meant to quash rumors that the crash was caused by a free burrito giveaway at the digital chipotle on the site digital but real burritos. they're saying no. shanghai disneyland suspended entry to the park yesterday trying to cooperate with covid-19 investigations playing to other chinese provinces guests in the park were required to undergo testing before leaving. finally not a stock but a group of companies around electric vehicles barren says while tesla has a lead, they are nvesting billions to close the gab. baron's is positive on gm, ford and volkswagen and two of the top producers of lithium, albemarble and lg.
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first it was southwest now another airline facing a weekend of delays and cancellations. we'll tell you who and why ahead. richness. hard you work to build it. now harder stadtfestungsbank works to make it grow more bigger. trust the egg in your nest to our clever money people. stadtfestungsbank. you rich. we make richer. translation is complex. transperfect makes it simple. our experts help your business succeed. in any market, any language, any industry. simplify global business with transperfect.
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exchange" on this monday morning. right now let's get a check on other key headlines outside of the world of money and business. including a big one on covid for the white house. phillip mena is in new york with more on that. >> good morning.
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white house press secretary jen psaki has announced she's contracted a breakthrough case of covid-19 after members of her household tested positive. she's been working from home and quarantining with her family she tested negative from wednesday until sunday and said her symptoms are mild. she plans to return to work after a ten-day quarantine and a negative rapid test. a man dressed as the joker and armed with a knife te terrorized passengers on a commuter train in tokyo. police say one person was s stabbed before the man started a fire the toech tokyo fire department 17 passengers were injured, police arrested a 24-year-old suspect who's under investigation for attempted murder. the atlanta braves one win away from a title, astros' backs against the wall didn't look good for the stros
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a long game and the astros' bats respond. traded the lead until gonzalez responded. no halloween party in the atl. this time the astros work them 9-5. game six in houston tomorrow night. so close yet so far for the atlanta braves it's turning to a classic this world series. >> it is let's hope it goes to a game 7 as well, add a little bit to the drama. phillip thank you very much. >> you got it. ahead elon musk taking issue with president biden once again, this time over his infrastructure plans plus a special programming note tomorrow an exclusive one on one right here on wex with billionaire investor and pittsburgh steelers part owner thomas tull. some strong words on how to
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bring american manufacturing back from china. that is a can't miss interview if you have not already, be sure to follow our podcast. if you miss the show any day, don't sweat it, check it out on apple, spotify or other apps good monday morning. we are back after this i'm so glad we did this. i'm so glad we did this. i'm so glad we did this. i'm so glad we did this. i'm so... ...glad we did this. [kid plays drums] life is for living. let's partner for all of it. i'm so glad we did this. edward jones
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fire up the coffeepot and crank up some bruce springsteen
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because november kicking off looking like the boss. the stocks looking born to run in d.c. pushed by democrats to get the president's economic agenda in trillions in new taxpayer spending over the finish line, once again facing another roadblock. selling the global tax deal, elo ylan mui sitting down with janet yellen% glee it is all happening on this monday, november 1st, and this is "worldwide exchange." welcome or welcome back and good monday morning, everybody it's almost exactly 5:30 here on a monday here's how your money and the markets look right now things are looking good. october a very solid month for almost every group of stocks that looks to continue the only thing that's changed is
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the calendar, right. dow, nasdaq futures both up just under .5% or 155 points. one big money mover to watch is harley davidson. shares jumping after the u.s. and eu agreed to a deal amid the g20 summit this weekend on steel and aluminum tariffs that's going to benefit companies like harley davidson, maybe polaris, as well. harley davidson up 7%. so things made of metal perhaps getting a lift this morning. this hog is running. hog wild maybe. top stories. the push by house democrats to vote on president biden's economic agenda as soon as tomorrow is facing yet another hurdle according to axios the house rules committee will not meet today to mark up the package signaling a delay in that and
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the infrastructure bill. the committee needs additional time to craft language and get final agreements with all parties involved please do not rush this is a massive, massive bill. no reason to rush. meantime, john deere and the union representing 10,000 of its workers on strike say they have tentatively reached a new contract revealing under the new plan members receive a 10% wage increase in the first year, 5% jump in the third and fourth year of the deal the uaw says the strike, which began two weeks ago, will continue while workers review the terms of the deal ahead of a vote to approve it more headaches this weekend as american airlines canceling more than 1,400 flights, the airline blaming staff shortages and weather for the moves. does expect to get through the issues, quote, soon. cancellations by american followed by those at southwest
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as the airline industry gears up for a busy holiday travel season. leaders at the g20 summit signing off on the new global tax framework setting a 15% minimum tax on companies well, the biden administration may have gotten world leaders on board and may face a more difficult tax of winning over congress here in america ylan mui spoke with treasury secretary janet yellen, on how she plans to accomplish that she joins us with more from that interview. >> reporter: sealing this deal has been a top priority for treasury secretary janet yellen. she's won over the world leaders, including the finance minister of ireland. and today she's visiting dublin to show how committed both countries are for the agreement. she told me is she can get congress on board. >> the president feels and i certainly agree with him, that
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american corporations should pay for their share. the minimum tax rate of 15% is certainly not so high that it affects their ability to compete and be competitive globally. you know, it levels the playing field in a way where competition among countries and their firms can take place on the basis of economic fundamentals. >> reporter: now there is new hope that here in the u.s. the house could vote potentially tomorrow or at least this week on president biden's social spending package, which includes the overhaul of the tax code that yellen has been fighting for. but a key piece of the agreement is much farther off. it requires 100 of the most profitable multinationals to redistribute how they pay taxes around the world that's supposed to go into effect in 2023 but it's not clear that treasury has the power to strike the deal without congressional approval. >> when it's ready, i'll
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continue to do that, work to make sure that members of congress understand why this is something that's in the national interest and is necessary to adapt international taxation to a very changed world >> reporter: now i also spoke with the fitnnance minister of ireland, he told me that the world is counting on america to follow through >> because of the confidence that they've given me in change that i believe will ultimately happen across the world, that inturn is one of the reasons why ireland wants to be part of this agreement. >> reporter: now, brian, this deal is a major win for yellen and the biden administration ab abroad we'll see if they can also score a win back home as well. back over to you >> hold on because i'm a d.c. dunce here how does this get done is this tax framework part of
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the biden infrastructure plan? is it part of the reconciliation bill or is it kind of its own thing >> so the setting the global minimum tax rate at 15% is part of the reconciliation bill, what they're calling the build back better agenda, that the house has yet to vote on the senate would still need to vote on it as well but they can do it with only democratic support one of the challenges, though, is that the second part of this agreement which hasn't been fully fleshed out yet and that's the part that affects the big tech companies and how they pay taxes and to whom, that has not been fully negotiated but would need to at this point be passed with both democratic and republican support she may need republicans to get on board to help her sign that agreement. so there's still a lot of negotiation and goodwill that will need to be earned on capitol hill for the treasury secretary and the biden administration >> fascinating stuff and a big
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interview there. i love throwing ireland into the mix as well. appreciate it. see you all day long here on cnbc. >> thank you coming up, what tesla's options activity may be able to tell you about the entire stock market chris murphy is here as we head tobreak other top stories happening now. tesla's ceo elon musk escalating the battle with biden, calling him the puppet of the united auto workers union, calling on a provision for yunionized member. and southwest is looking into one of its pilots allegedly using an anti-biden phrase last week and coca-cola reportedly buying full control of body armor. the company which owned about 30% of the sports drink will pay
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5.5 billion for the remaining stake making the founders incredibly wealthy congratulations to them and their investments. worldwide exchange is back in a moment it's another day. and anything could happen. it could be the day you welcome 1,200 guests and all their devices. or it could be the day there's a cyberthreat. only comcast business' secure network solutions give you the power of sd-wan and advanced security integrated on our activecore platform so you can control your network from anywhere, anytime. it's network management redefined. every day in business is a big day. we'll keep you ready for what's next. comcast business powering possibilities. wealth is breaking ground on your biggest project yet. worth is giving the people who build it a solid foundation. wealth is shutting down the office for mike's retirement party. worth is giving the employee who spent half his life with you, the party of a lifetime. wealth is watching your business grow.
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the broader market rally is a lot of options activity but it may not be the only factor driving the stock up driving me now is chris murphy love his notes a must read tying together the options market. we have talked about tesla's role in the macro market that it matters even if you don't own tesla's stock or could careless about the company what are you seeing with tesla right now that is so interesting? >> good morning, brian there's so many things that are so interesting going on in tesla right now. it was up over 22% last week we had huge options volumes that traded and that was all reported, you know, made for some great headlines, how many options are trading in the broader markets, things like that i think one thing that was overlooked last week was comparing that options volume on a daily basis to how much open
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interest changed the next day. so basically what that's telling you is, let's look at last monday almost 2.5 trillion calls traded a huge number since the stock split last year. but the next day open interest changes only by 120,000. so that's about 5% what that's telling you despite the options call volume trading the next day only about 5% of that volume carries over to new positions. so around 95% of that options trading on a daily basis is both opened and closed. rather bought and sold or sold and bought these are very short term trades that's not going to have quite as much impact as consistent buying that builds up every single day >> so it sounds like there's -- listen, the teslairians out
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there will tell you it's going to be the only car in 20 years but sounds like there's short timers hanging around. >> yes it's been the strategy since the covid low, nothing wrong with momentum-based trading but tesla is the poster child for that you have a stock up 22% over the course of a week and you're looking for a place to find a momentum-based trading, that's where it is. you look at, for example, last thursday, the weekly 1100 calls right around where the stock was trading, 152,000 contracts traded net 300 or close so no new positions. basically all the trading in that line, the most active line that day was both opened and closed possibly many times over the course of the day. that's not necessarily driving the stock as much as people think when you're both buying and selling or selling and buying in the same day, sometimes in the same hour >> great stuff on tesla's pivot
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now and talk health care more specifically bio tech saw in a note you're seeing bullish activity there where specifically and what is that telling you >> yeah so we're looking a lot of times at the etfs xbi is the etf, over the course of the past week or so we kept seeing consistent bullish flow in the options whether it was selling puts to buy a call spread or buying calls or whatever the case may be if you look at the xbi compared to most other sectors in the broader market it's a major underperformer we're seeing investors trying to set up attractive risk/reward strategies for the bio tech sector broadly also trading specific biotech stocks can be difficult to pick the right ones but able to look at an etf like the xbi and say this sector has majorly underperformed and one of the
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potential catalysts may have been going into biden's -- what he was mentioning last week in his speeches and his program and the fact that there was not a lot of negative news on the health care sector it was glanced over a little bit, maybe that finally allows that space to catch up a little bit. so that's the clear thing we've been noticing the last few weeks. >> lack of bad news is the new actual good news, apparently, we're going to be watching biotech as well. all the crazy tesla action chris murphy, always appreciate your insight and views have an awesome day, chris. >> thank you. on deck your morning rbi lays out which american states have the biggest quitters. and a programming note check out the new cnbc online dock how the apes of amc cracked wall street. melissa lee digs into retail investors piling into the chain, including one of the more high
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profile traders rallying around the company, trey collins. >> i think what attracts people to amc is the unity behind the trade. it brought people together to appreciate that you can come together and set aside your differences for something you believe in and in this case it's fighting against a corrupt market a market that wasn't built to be fair for every party involved. i think that's what amc stands for speaking out and making noise. any change in the world didn't come quietly, it came with noise, it came with blood.
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this is the new world of work. each day looks different than the last. but, whatever work becomes, the world works with servicenow. when you hear the word healthy it always feels a little out of reach. but it's all about the baby steps. maybe it's a jump or eating something green. or taking mom to get that vaccine. ♪ healthier means bringing stuff to the folks ♪ ♪ that really need it. ♪
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♪ like help at 2 am or care that's right at home. ♪ ♪ believe it. ♪ ♪ and caring for them all means ♪ ♪ we're doing healthier right. ♪ ♪ so, let's do it all together people, ♪ ♪ 'cause this is what healthier looks like. ♪ welcome back world leaders gathering in scotland this morning and the next two weeks following the g20 sitdowns in italy over the weekend. president biden facing the difficult task of convincing allies and skeptics alike at the cop26 summit that the u.s. is serious about climate change
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julianna tatelbaum joins us with more on this side of the story >> good morning. here we are six years on from that paris agreement and all eyes are on glasgow. about 25,000 delegates are due to decent on glasgow over the next two weeks world leaders from 120 countries. there's a lot on the table, a lot at stake here, boris johnson the uk prime minister who is hosting this event from a uk perspective saying that if we don't get a deal here, we don't make progress here, then all bets are off really trying to emphasize what is at stake here and one of the big questions that is hanging over this summit is, how much progress can actually be made given that president xi of china is not attending in person. they're the number one emitter in the world right now and many have been disappointed with beijing's efforts to date. so it's a key focal point and
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what extent that could hinder. and there's a vast number of corporate leaders here and it show cases how important not only public funding is but also private. and one of the questions is how governments and world leaders can create an environment to unlock private funds so a lot on the table, brian, expectations fairly low coming into this event. but world leaders certainly trying to keep the pressure on each other to deliver. >> yeah, a lot of world leaders cared enough to fly their private jets to glasgow, scotland but they're there for a another reason and that is green i don't mean the green economy i mean, money, right there is hundreds of billions or
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trillions of dollars in government contracts, deals, whatever, at stake this is maybe the biggest money event in the world as well >> brian, you're absolutely right. i think when it comes to climate change the finance piece, climate finance is absolutely essential. and coming into the event world leaders had already agreed they would funnel $100 billion a year from richer countries to poorer ones to help the fight against climate change so far the rich countries have not delivered. so another part of this conference is going to be focused on how to incentivize those wealthy countries to deliver on the promises they already madebefore we talk about stepping up and there is concern around getting developing countries to commit to more when they haven't actually seen the promises that have been made to them come good and the white house has already been speaking to this earlier today. saying we don't expect a full answer on reaching that
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$100 billion target in glasgow but we believe there are creative ways to hit it. so already managing expectations around just how much could actually come from this summit brian. >> we're going to find out we got a long way to go, julianna tatelbaum in glasgow. thank you. time for your morning rbi. today we're talking about the american worker or maybe the lack thereof because we know that millions have vanished from the workforce or quit their jobs it's generated all kinds of political finger wagging the loss in all this is the fact that not all job quits are created equally. a lot of people quit one job not to talk away from work entirely but to find a better job somewhere else where is this helping? thanks to data trek research for crunching the numbers. we know the states with the lowest and fewest rates of people quitting job. the highest rates of people
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quitting their jobs, iowa, alaska, idaho, georgia, and kentucky kentucky the highest at 4.5% these states mostly imply rates with a potentially strong job market because in those states people may feel comfortable enough to quit their job because they know they can find another job likely with higher pay on the flip side, where in america are the lowest quit rates where workers may not feel as confident once again northeast and california rearing their heads five lowest quit rates, california, washington, new york, connecticut, pennsylvania, new jersey kind of close on that list as well to be clear, there are a number of reasons why people quit but a strong job market is a big one of them. you can see midwest and south mostly good right now, northeast, washington, and california maybe bad right now but really, what's new to that
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random but interesting let's go to welcome in one of our favorite guests from a city and state with a very strong job market and probably a strong consumer, victoria fernandez from houston, texas victoria, you've been talking about the consumer for a long time now, you think there's a lot of people drinking $30 glasses of wine at the post oak club or filling up the shops at the galleria. >> i think that's exactly what's happening, brian i think there's this under -- people are under estimating the consumer and what that's going to look like going into the next couple of quarters, there's talk about stagflation. we're just not falling into that camp right now we think with the savings rate, even though not in the 30% like we saw during the pandemic but it's still elevated from historical standards, household balance sheets are strong, there's pent up demand, we still
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don't have all the services back i think that's going to give us an extra boost and the consumer is going to drive the economy going forward. that's why you're seeing the data in the rbi about the quit rate happening, especially on the lower end of the pay scale as the wages continue to climb and that's going to support the consumer. >> they're quitting and hopefully finding new jobs that pay more switching one employer to another, throw another 10 grand a year in their pocket, money they can spend where are they spending it, if you had to go from a stocks perspective, who are some some of the winners here? >> we actually hare making a shift in our portfolios from the secular growth names we liked the last 18 months we're not getting rid of the names, trimming them. but going into more consumer facing names, we're looking at target, lulu lemon, a name even like cvs as people are out there
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doing holiday shopping, running errands more, getting more pharmacy-type of items you know we've liked mastercard and visa for a while we just added to our mastercard to position, along with our capital one financials so even though we've seen the yield curve flatten a little bit with the outlook we have on the consumer we think those are all going to be strong names for the next couple of quarters. >> we love it. visa, cvs a new name there as well so what are you moving around if you're adding those, are you trimming anywhere? >> we are trimming, and that's the key word we're not selling out of names completely so where we trimmed, some of the secular growth names, microsoft, amazon, we're not getting rid of them, like i said, and they had good earnings so we're able to trim those names an interesting one is hasbro as well that we trimmed it's been 7.5% the last month we
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know the supply chain issues that are happening for a lot of these companies. so we took advantage of that and trimmed a little bit of that name as well >> the grinch trade there ahead of christmas excuse me, trimming a toy maker here >> trimming. >> we love trimming. we love the specific ideas from a macro perspective, you got the federal reserve this week, do you expect any market moving headlines, dare i say, the taper? anything from the fed this week? >> yeah, i don't think it'll be too market moving. most of that is probably already priced in. expectations are they announce the taper. i think the big news is whether taper actually starts this month in november or goes to next month in december. either way i know it's going to start probably before the end of the year which means people are really looking at the timing for rate hikes. futures are saying that could happen in the summer i'm iffy on that, i think we
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look fourth quarter of next year before we see that when we get closer to that time line, i think that's where we'll see more of the market moving. probably not this week. >> victoria fernandez we appreciate you getting up early for us we mean that. >> thank you go astros! >> yeah. big game tomorrow night. it's on the line thank you very much. folks we appreciate you getting up early or not getting up early and listening to the podcast. join us tomorrow, an exclusive with thomas tull billionaire co-owner of the pittsburgh steelers. that does it for us today. we'll see you tomorrow squawk and the gang picking it up next. dow futures up a buck 50 take care. there is a landfill in the ocean. bring your visit to outdated montepisa!
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good morning, news breaking overnight, the ceo of barclays stepping down following a probe tying him to convicted sex offender, jeffrey epstein. we'll take you live to london. and travel nightmare, thousands stranded at airports after american airlines canceling more than 1800 flights since friday. stocks set to start the month at record highs as earning seasons rolls on we'll hear from big energy companies, tech names and travel stocks it's monday november 1st, 2021 "squawk box" begins right now.
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good morning, everybody. welcome to "squawk box" here on cnbc i'm becky quick along with andrew ross sorkin joe is out today it's november 1st, so let's look at where the u.s. equity futures stand at this hour some green arrows across the board, dow indicated up by 157 points, s&p up by 18 and the nasdaq indicated up by 60 points that's significant because on friday all three closed at record levels you're talking about green arrows on top of record levels and it's the first day of the month of november worth looking at what happened in october and the scary month we thought we were going to have, that didn't happen. if you were looking for the month to date, the dow ended up by 5.8%, the best performance since march. the s&p up by 6.9%, best month since november of 2020 and the nasdaq the best performer, up by 7


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