Skip to main content

tv   The Exchange  CNBC  November 5, 2021 1:00pm-2:00pm EDT

1:00 pm
taxis in san francisco via the cruise division. that's a big deal. it is happening now. that's why the stock is rallying. >> easy on the donuts. don't hurt yourself. have a good one. we started the how, it was so much fun today records across the board for stocks ten year note is not moving markedly higher on the jobs report, covid news, the exchange starts now have a great weekend, everybody. we'll pick it up there, scott. thank you so much. i am kelly evans here's what's ahead this hour. jobs report, what jobs report. today is about the end of the pandemic, at least according to markets. pfizer's covid treatment pill, reduced hospitalization and death by 89% reopening stocks are flying and pandemic trades getting crushed. dr. scott gottlieb telling "squawk box" he thinks the pandemic could be over by january. we walk through the trades and cinemark
1:01 pm
will movie going return to prepandemic levels we talk to the ceo about the box office and competition from amc. soaring energy prices has shares of natural gas giant eqt soaring 60% this year. will new rules in washington rain on its parade we asked ceo, toby rice. christina? >> we are halfway through the day. u.s. equity east continue an upward trend upbeat jobs report strength ened earnings and positive covid treatment, the mood, we're coming out of the woods. the dow you see above 36,000, nasdaq was above 16,000 for the first time ever, coming down offer that dollar index hitting a fresh high earlier highest level in more than a year on a sector breakdown, we have
1:02 pm
energy, communication services, consumer discretionary leading the pack health care is actually only sector in the red, weak vaccine linked memes like johnson & johnson. shares down about 2 mers not too long ago on slowing growth of cash app and then go pro exceeded expectations thinks they can hit full target. stock up 7%. few names on this upbeat day. >> blast from the past thank you so much. >> i wanted to throw that in >> former fda commissioner dr. scott gottlieb declared covid could soon be endemic after the pfizer antiviral treatment did well in trials the market is sending a similar message. huge moves to the up side in reopening names and stay at home
1:03 pm
trades are getting crushed let's zero in on four sectors. start with entertainment, led by live nation hitting all-time high madison square garden climbing more than 5% here with the story, bob pisani and tim seymour. how much of a breakout across the entertainment space? >> it is pretty significant. these have been rallying didn't just happen today people are going out more. i am going out more. i saw steely dan, three nights sold out, stone cold sellout to see steely dan people on their feet cheering. saw "dune" and "one night in soho." sold out everywhere i go out, i see people going out. >> i wore my metro card high
1:04 pm
heel earrings. this is the day. this is the day to wear the get out stuff. how many stocks have room to run, how many priced in the reopening? >> i think there's a lot of room to run the place where you have to question is where the business model is changing. things like cinemark and amc are questionable but if you look between those two, amc diluted its shareholders, have higher prices if you had to bet, you would pick cinemark. live nation has a lot of room to run. >> walk us through that, especially after today's move. >> live nation is obviously showing really strong earnings obviously there's pent up demand for any entertainment that doesn't happen on a small screen, so live entertainment is really where people are going. if you look at that, take that noord, that trade now, this is a company that was losing money
1:05 pm
hand over fist during the pandemic and it is still i think priced well enough that you can still have more room to run in the stock price because obviously you're starting to see the earnings get behind the story, people feel safe enough to go out to concerts, go out to live events. >> steely dan. live nation shares up 15% today, 22% in a week. where would you tell investors to go in the entertainment space. >> not surprised to hear bob saw steely dan i run into him at shows in new york city, by the way. live nation is 22, 23 times forward, not terribly expensive on a historical basis. the key is not just that the reunion tour kicks in to high gear next year, especially as the global markets open, but on
1:06 pm
site spending means the margins here, and the margins, all of the concessions in these places are enormous this is where some of the rerating is going on a day with a payroll number that showed where wages are that we know and consumers' ability to spend with higher wages again, the sector rerates and i think live nation is not terribly expensive, even though it has been on a tear. >> talk about the flip side, stay at home trade being hammered peloton, down more than 30%. slashed the full year sales forecast by a billion. zoom, docusign and chewy are down start with you would you be picking up any of these given the rating to the down side there? >> it is interesting zoom was just a darling during the pandemic pricing was working against it peloton was going to be a problem because you see a lot of
1:07 pm
churn in that space. i have been calling for the downturn awhile. look at chewy, while it was a stay at home play, still going to feed pets even after you go back to work so i'm not sure that deserves the pommelling it is getting. >> down almost 6% today. contrast with names like etsy, stay at home beneficiaries but continue to do well. >> this is an old story. most of the stuff largely related to stay at home is sideways zoom is near 52 week low that hasn't just happened, that headed that direction for a long time other stuff i don't agree with, docusign is not stay at home, that's a tech play my wife is a real estate agent, they all moved to using that docusign i think is going to be fine, for example. doordash is going to be fine people are still going to be ordering out and having stuff delivered to their homes
1:08 pm
there are a few, peloton and zoom strike me as definitely a bit vulnerable, for sure peloton as you saw today, other stuff more technology oriented will be fine. >> tim would you pick up anything like zoom >> i might go against the grain here if you look at the united communications as a service and where microsoft seems to be the one that's destroying everybody and teams are rolling through, i think the enterprise market is so strong. i think zoom, too much i think the valuation is not where you're getting too excited, this isn't just a stay at home story. i think it is a platform that continues to grow and i believe there's plenty of enterprise they can compete with microsoft. on peloton, there are problems with that result that were not just suddenly trying to carve out a new demographic, price cuts, this wasn't new to that
1:09 pm
result, but when they talk about recalibrating fiscal output, i don't know what that means in the context of an earnings report doesn't sound good to me i am happy to be back at the gym. if it is not obvious, i am happy to be back at the gym. >> it is obvious. >> peloton down about 35% today. kind of bad timing on the heels of this. these moves are largely punctuating the trend we've seen it is not the day the pandemic is over, it has been going on as a grind for some time. what it means for travel stocks soaring, many reported better results, lyft and uber, expedia, airbnb lyft is up 8%. booking up 7%. expedia 16%, airbnb, 11% i could go on. airlines and hotels are seeing nice games with marriott and hilton with all-time highs delta up 7%. tim, back to you
1:10 pm
are these places that can continue to run into next year quite some time? >> airlines, you have to be careful with airlines. enterprise values are significantly bigger in the case of united and american delta is the best balance sheet of the bunch if you look at the jet c.t. f as proxy, getting back to the 200 day. i think airlines are very interesting. we started to hear, heard from united at the front of the bus starting to fill up, international travel, they're increasing capacity 10%. very bullish for the margins here i think yes, the airlines were overly punished on a combination of really fear about the business model as precovid while it will be slower, it is a big part of the story. back to uber, i know the debate between uber and lyft is the simple, pure ride share model versus all of the other services that uber is going after
1:11 pm
frankly, i embrace that. i think this mentality at uber, and purchase of drizzly, not just food delivery but groceries and nongrocery items makes it very attractive as driver and labor share remains tight but is getting better adjusted profitability is a head fake for investors i wouldn't focus on that i don't think profitability is here now >> gina, we haven't talked about hotels, room sharing and airbnb names like that. would you be interested in that space? >> so i actually embrace the resumption of business travel and feel i am a proxy for that before the pandemic, i booked a quarter million miles a year, and i have been basically not moving for the last 18, 20 months andin november i booked
1:12 pm
basically i will be traveling the last half of november into december and january which for me and many of my counterparts doing the same, that's an increase in airlines, an increase in hotel bookings right? this isn't an airbnb, it is a hotel and business play. i agree with the call on delta of all balance sheets, you have to be careful where you look and what the different airlines are kind of positioned for delta has the cleanest balance sheet, have gone through the most consolidation i think they're more positioned for recovery united is really focused on silicon valley, as goes silicon valley, probably where united will go. american airlines is starting to look and feel like a discounter. so i'm not sure how that's going to work out. i think delta is the better play of the three in the hotel space i think the hotels broadly have a lot of
1:13 pm
room to run now as business travel resumes. >> to your point on delta, that's obviously business travel play i want you to come to us from an airport. we can get your take and see what's going on behind you bob, turn to you if you want to put a point on it. looking across the travel space, we have seen big runs in these sectors. >> yeah. i would be a little cautious getting exuberant on things like international travel i was talking to travel agents this week about the caribbean over the holidays. we were looking at that. there's a lot of barriers up to getting to these places, negative tests going in, while there, while leaving, a lot of people are not full on the caribbean. lot of people are saying i'm not sure it is worth the hassle. still having significant outbreaks in the caribbean and europe as well what's going on in germany i looked at the expedia numbers.
1:14 pm
bookings were down 40% third quarter compared to 2019 hotel room nights down 33% compared to 2019 those are only very marginal improvements in the second quarter. we all want to go out, want things to improve, but it is still -- numbers are not that great now. keep an eye on that. >> on that note, hit the restaurants to close things out. they're stuck in the space you're describing. people are heading back to in person dining. cheesecake factory, bloom in brands, brinker, range of 6 to 7% shake shack up about 20%, reported smaller than expected loss btig upgrading to buy and again, bob, start with you on this one, the sort of casualdining, sit down restaurants has been a much slower recovery than names like
1:15 pm
chipotle maybe they hope shake shack can get back in that territory. >> one thing you can't help but realize when you go into these places is how difficult it is to get help i went to california, went to see friends there. i go a lot of new york, it is shocking how difficult, the lack of help out there now. that is a big story among people that go out a lot. we went out, sat there for 20 minutes waiting for a waitress to come over i hear it all the time that's a major problem it will resolve itself, more will go out. that's holding things back other than that, i see the desire i go out to restaurants. i try to book the room, book the tables i can see 80, 90% capacity so the demand is there i just think people really got in their heads there's nobody around to work in restaurants
1:16 pm
now. that's inhibiting the experience and willingness of people to go out. >> pitch a hand. speaking of experience, it will be experience dining where would you be in the restaurant space >> if tim is hitting the gym, i am contributing to shake shack and i think that yes, there are problems with the space in terms of finding help and the experience i totally agree with that, but i think this is a place, low lying fruit, easiest form of entertainment. it will continue to recover. >> tim, your picks >> i couldn't help bob's table, using the waitress tag you have shack which is pricing power, a dynamic where mcdonald's, chipotle >> thank you so much giving the picture of what's playing out in the markets
1:17 pm
consequential. see you again in a couple of days. revisiting the sector with cinemark when should investors expect a return to profitability. natural gas prices taking a breather after a monster move. we speak to the ceo of the largest in the country back in a moment ♪ say it's all right ♪ ♪ say it's all right, it's all right ♪ ♪ have a good time 'cause it's all right ♪ ♪ now listen to the beat ♪
1:18 pm
♪ kinda pat your feet ♪ ♪ it's all right ♪ ♪ have a good time 'cause it's all right ♪ ♪ oh, it's all right ♪ hey businesses! you all deserve something epic! so we're giving every business, our best deals on every iphone - including the iphone 13 pro with 5g. that's the one with the amazing camera? yep! every business deserves it... like one's that re-opened! hi, we have an appointment. and every new business that just opened! like aromatherapy rugs! i'll take one in blue please! it's not complicated. at&t is giving new and existing customers our best deals on every iphone, including up to $800 off the epic iphone 13 and iphone 13 pro. 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
1:19 pm
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.
1:20 pm
welcome back to "the exchange." cinemark reported the stock is up 135% in the past year, 25% off the 52 week high the ceo saying cinemark is confident in the future of movie going as the pandemic subsides can theater chains keep momentum going into the holiday season. joining us, julia boorstin with more >> thanks, kelly, mark thanks for talking to us on the
1:21 pm
heels, better than expected results, concession spending stronger than expected give us a sense of what you're seeing so far in the fourth quarter, what expectations are going into 2022. >> julia, it started in october with the best month we had lineup of films between now and end of the year is lining up to be extremely strong. obviously the virus is starting to wane down, vaccinations are going up therefore people's confidence coming back to theaters is high. we are seeing very good strength in the box office across multiple demographics. >> mark, it is interesting the movie business is emerging from the pandemic, very much transformed. some doing simultaneous releases, many shortening the window between theatrical and at home release i wonder how concerned some people aren't going to theaters
1:22 pm
as often as prepandemic. >> we don't think that necessarily will be the case really what's holding people back was confidence because of the virus, so as that wanes, and secondarily, content typically 45 days, slightly less if you don't have the big blockbuster movie, but studios recognized the strength and importance of theatrical to drive the ancillaries that follow we have been out talking to all of the studios and content providers and across the board, getting a very strong commitment toward returning to theatrical window, in the fourth quarter and looking forward to 2022. i think that's probably what's dragging enthusiasm and optimism more than anything else. >> yeah. but it is interesting. that window of 45 days is half what the window was before the
1:23 pm
pandemic and i am wondering if you feel like there are things you have to do to make sure the theatrical experience feels distinct from the at home experience, whether it is investing in high end concessions or improving quality of theaters. what's next on the road map for you? >> that's a really good question the window prepandemic was about 74 days. it was a little less than 90 and now as it tones down to 45, what we're seeing is we're getting the vast majority of revenue in during that time. but you ask what do we need to do probably more than anything else, we need to create a great cinematic experience so we have been extremely active during the pandemic. we've now got 65% of all theaters with luxury recline heated seats which are fantastic. online ordering service calls snacks in a tap, you can order online, we will deliver the
1:24 pm
concessions directly to your seat and then the xd large screen format which has been selling out soonest than any other seats because people want to come back and have that real cinematic experience >> mark, i have to ask you about your rival, amc. meme stock has been trading on things that are disconnected from fundamentals, now it is out there, selling popcorn, doing things you're not doing. i wonder how that impacts the competition. >> well, you know, i would put it this way, julia first of all, popcorn has been a staple for us for years and years. we have been selling that for years, you can come and pick up. we have been testing kiosks in malls in brazil for awhile the popcorn is interesting, we'll continue to look at that but i don't think it is necessarily a game changer for anyone because popcorn is very important to all of us
1:25 pm
i think more important for us is to do what you said earlier, that is to create that experience for the consumer to want to come to the theater. popcorn and concessions is a big part of that, but the movie drives them back in the first place. >> everyone loves movie theater popcorn. thanks so much >> great stuff thank you. thanks to mark as well. still ahead on "the exchange" pfizer on pace for the best day since march of 2020 they have the whole market in a tizzy. we bring you details next and what's happening to moderna. and unemployment falling to a pandemic low, 4.6%, what does that mean for the fed's next a overall state of the economy. we're back in a moment
1:26 pm
our retirement plan with voya, keeps us moving forward. hey, kevin! hey, guys! they have customized solutions to help our family's special needs... giving us confidence in our future... ...and in kevin's. voya. well planned. well invested. well protected. meet stuart and byron, owners of sml, a tiny home architecture firm. they were getting ready to travel to portland, maine for a pitch when their 3d-printer broke. luckily, sml is with american express business platinum, and has access to over $1000 in value per year with the business services suite. so they got new software and created a full augmented reality experience. sml won the pitch, and with their membership rewards® points, extended their hotel stay for a few extra days. they had a whale of a time. get the card built for business. by american express.
1:27 pm
1:28 pm
welcome back to the exchange i am sue herera. opening statements are under way at the trial of three men charged with killing ahmaud arbery in georgia last year. prosecutors say he was chased for five minutes in their pickup trucks and ultimately shot him after assuming he committed a crime. prosecutors say they have no evidence arbery did anything wrong. on the news tonight, defense attorneys respond and explain why their client should go free in that case, tonight at 7:00 p.m. eastern time. in iowa, two high school students face murder charges following the death of a spanish teacher at their school. the 16-year-olds have been
1:29 pm
charged as adults with first degree homicide and first degree conspiracy to commit homicide. the remains of the 66-year-old were discovered in a park wednesday after she went missing earlier that day. on a far happier note, last minute preparations are being finished for new york city marathon it is returning with a limited field after being cancelled last year due to the pandemic 33,000 runners will be hitting the pavement on sunday, but that's down from 50,000 plus who took part each year before covid. we wish them the best of luck. it will be a little chilly out there. back to you. >> time to turn the clocks back, right? >> exactly they're falling back hopefully not falling on the course >> exactly sue, thank you so much see you. sue herera pfizer shares are soaring and its competitors sinking after they had encouraging news about the covid antiviral pill this treatment reduced risk of
1:30 pm
hospitalization or death by 89% given to nonhospitalized high risk patients within three days of symptoms. the ceo telling cnbc they'll file for emergency use authorization as soon as possible pfizer up almost 7%, moderna down almost 25% today. meg terrell has details. >> kelly, they have been working on this since the beginning. pfizer started work looking for antiviral drugs when the pandemic hit and we've all been focused on the vaccines and incredible speed with which they developed those. this is incredibly fast for antiviral drug development as well, even though it is coming about a year after the vaccines. if you look at the timeline, starting in march, 2020, they began the search they sorted through a lot of compounds. we will hear how they did it in just a second. starting phase one in march, now
1:31 pm
getting incredible efficacy result he joined us on "squawk box" this morning, talked about the speed with which they did this here's what he said. >> we started the program march 20 within four months, not four years, four months, we have synthesized 600 molecules. 600. and then july 20th we have chosen this one. then in 12 months we were able to bring the results it is amazing. 16 months actually it is amazing how fast we were able to do it. >> of course, the main question, can they ramp up supply. they were doing that at risk as they were developing the drug. as of now, they expect to have 180,000 courses of treatment by end of the year, 50 million next year, perhaps more, and the result was more positive than expected, they may ramp it up further. they're in discussions with 90
1:32 pm
governments around the world now for supply agreements. look at the stock reaction pfizer up 7% merck has its own drug, down 10%. regeneron, down 6, and moderna, down almost 25%. folks looking at this as people taking fewer boosters or vaccines in the future back to you. >> moderna shares were almost $350 tuesday, they're at 217 today. incredible turn of events. it would be one thing to say wait, these are only for high risk patients, it is a different category than the entire population, at the same time, the market is running with this as if to quote scott gottlieb this morning, the pandemic is over >> well, really is the last tool we were looking for on top of the vaccines and mono clonal antibodies drugs for the hospital, but didn't have an oral antiviral you can take at the first signs
1:33 pm
of covid there's a merck drug as well, this one has 89% efficacy. it is another tool that will be incredibly helpful with the pandemic. >> will we get to a point there's an oral drug to take if not high risk? maybe not aaron rodgers, but if there's something the ordinary person can take that becomes a real substitute for the vaccine. >> i think public health experts would break out in shingles at a substitute for the vaccine in terms of being a treatment for somebody, regardless high risk or not, they're running a trial, should have results in the next six months or so. we'll see does it have a benefit for nonhigh risk folks as well one would expect if it efbts the viral load, it would be helpful. >> shingles vaccine was in short supply because of the rest of this i know more people that had shingles than ever before. thanks for bringing us up to speed on these developments.
1:34 pm
still ahead, according to the latest jobs data, great resignation appears to be here to stay. what does it mean to the fed we dive into the jobs numbers next
1:35 pm
1:36 pm
1:37 pm
welcome back to the exchange markets are losing a little steam. the nasdaq turned negative by seven points, dow is 200 points off a session high up a third of 1% s&p 500 up 9 look how the sectors have done with very big moves. consumer discretionary up 5% tech as you can see up 3%. health care is lagging by one and a third percent. these are the only sectors up more than 10% in the past month. here are some movers up 295, it continues to chug higher nvidia up over 300 a share earlier on monster moves, up 20% this week. $750 million market cap. and avis budget, they rallied
1:38 pm
66% this week. 660% this year still down 50% from inter day high of 545 tuesday when shares doubled in a single session. one of the sticking points in the jobs report is that labor force participation is weak. it failed to expand, and remains far lower than prepandemic how many people left the work norse permanently. what does it mean for the fed and markets. joining me, bill rogers, former chief economist for u.s. department of labor. great to see you how many drop outs of permanent, do you think >> well, we don't know that just yet, right this comes from the monthly household survey and people are asked are they working, if they're working how many hours they're working. in this case, people are asked are you working and they're saying no, i am not working.
1:39 pm
going a step further, they're saying i don't want a job. but that could change. we have been studying this group of men and women 55 to 64 years of age and about a third of them seem to have a college degree or at least a college degree. so one possible story that people are telling which could be more permanent is that these are people that have 401(k), got good settlements, coming out of leaving their firms and even though they're retiring early or leaving the market early, they have the income that they could make it permanent. but i'm still reticent to say it is permanent just yet. >> i think the reason this is so important is let's say we are down 4 or 5 million jobs from prepandemic and 3 million of those are early retires, for example, we heard from chair powell that kept saying they want to make sure they support the recovery until the labor
1:40 pm
market fully recovers. well, i mean, are we getting close now, right, are we waiting for the labor force to reexpand or not >> well, the groups that i focus on and my staff at the institute for economic equity, we are monitoring those individuals that many call vulnerable groups, individuals who during bad times are the first people to lose jobs, during good times, they're the last to benefit. who are some of those groups it is women, it is minorities, it is people with disabilities, people with no more than a high school degree. when you look at their participation rates, we still have a long way to go in terms of being able to provide opportunities. i'm hopeful that we can solve some of the issues around supply constraints that we'll continue
1:41 pm
to see, compensation efforts to attract and retain employees to continue but also see employers change their mind-set. typically in previous expansions, you get not only increases in compensation but you get employers changing attitudes or perceptions or views about who is employable, such as hiring young, less educated workers, people that are formerly incarcerated, nonviolent drug offenders. that's what we're looking for. once you see more of those kinds of individuals pulled into the labor market, then i'll start to say yeah, we're at full employment we're really close. >> ordinarily you want that tent wide as possible no question everybody would want that but to paraphrase what steve liesman asked the chair earlier, is there a welfare consumer welfare tradeoff between the
1:42 pm
swathes of americans paying higher prices which you can trace back to the fed and those waiting to be absorbed into the labor force. is there a give and take, in other words, in waiting for employment to expand to the final possible parts of the population, is the rest of the population paying much higher prices for food and energy and the rest of it >> yeah. my reading of the data is that thus far with inflationary pressure we are seeing coming from the production side such as challenges of the supply bottlenecks and again, as the director of the institute for economic equity, myself and my staff are focused on finding those opportunities for that young, less educated nonhigh school graduate or for that young college graduate and to get a toe hold in the economy.
1:43 pm
there's a great deal of evidence that's shown cohorts are young groups that enter during recessions it can take up to a decade for them to catch up in terms of their earnings, or they also sometimes experience lower lifetime earnings. lowell rick et cetera, ray about a charred, three that are doing that on wealth, dramatic difference by cohort it is a benefit cost analysis. yes, there are costs, but benefits in my view as the director, what we're working on, benefits of groups i talked about getting toe holds into the economy, they're going to be consuming, they'll be producing, they'll be productive. it will add to economic growth. >> absolutely. point well taken you're looking at this all the time great to have you today. thank you for your time. >> thank you >> bill rogers of the st. louis fed. next, investors are slicing
1:44 pm
up this pizza chain. why jim cramer is staying bullish next 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
1:45 pm
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. your record label is taking off. but so is your sound engineer. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit in 2016, i was working at the amazon warehouse when my brother passed away. and a couple of years later, my mother passed away. after taking care of them, i knew that i really wanted to become a nurse. amazon helped me with training and tuition. today, i'm a medical assistant and i'm studying to become a registered nurse. in filipino: you'll always be in my heart.
1:46 pm
shares of papa john's plunging 6%. despite better than expected earnings, revenues, comps, margins. jim cramer is staying bullish on the name, saying it is outperforming competitors and generally crushing it. plus, there's shaq point your phone's camera at the code on the screen, or go to club. more than 100 countries pledged to reduce methane emissions by 30% in the next eight years. that was at the cop26 summit the ceo of america's largest natural gas producer joins me to er ifothwhat it means r e engyndustry after this en it coms to a financial plan this broker is your man. let's open your binders to page 188... uh carl, are there different planning options in here?
1:47 pm
options? plans we can build on our own, or with help from a financial consultant? like schwab does. uhhh... could we adjust our plan... ...yeah, like if we buy a new house? mmmm... and our son just started working. oh! do you offer a complimentary retirement plan for him? as in free? just like schwab. schwab! look forward to planning with schwab. today, your customers want it all. you have to deal with higher expectations and you have to lower wait times. with ibm, you can do both. your business can unify apps and data across your clouds. so you can address supply chain issues in real time, before they impact your bottom line. predicting and managing operational issues that's why so many businesses work with ibm. ♪♪ in boxing or any other business, one day, you're gonna take a hit you didn't see coming.
1:48 pm
do you stay down? or do you get up? [announcer] and this fight is a long way from over, leonard is coming back. ♪♪ ♪♪ 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.
1:49 pm
we'll keep you ready for what's next. comcast business powering possibilities. one of the biggest announcements from the cop26 summit is president biden's proposal to curb methane emissions from oil and gas producers. it is to cut emissions 30% by 2030 could it undermine the sector's
1:50 pm
returns? look at the eqt. shares soared 60% since january. joining me, the ceo, toby rice great to have you here, welcome. >> thank you >> such an important time for natural gas. let's start with the price action it kind of remains persistently high, hasn't it? persistently high, hasn't it >> absolutely. i think it has surprised a lot of people to see this type of price reaction you know, we did think that, you know, this type of pricing is going to be sort of inevitable when you restrict supply what we have seen in other parts of the world, the significant underinvestment in traditional energy sources are sort of coming to a head as a result we are seeing higher prices today and in the foreseeable future. >> the u.s. hasn't seen anything like the spikes we have seen in parts of europe, even to some extent china how much higher could they go here we have seen protests at places like new york, people concerned
1:51 pm
prices will go up 30% this winter and things like that. what would you tell them >> number one, if we had more access to more pipelines in this country and the u.s. shale industry could help alleviate energy sources we see. this is a self-inflicted problem that's completely unnecessary. that's number one. number two, u.s. storage levels here are around the five-year average. we should be able to withstand even a cold winter here in the united states. that is not the case for countries like -- continents like europe and asia they are going to be in a little bit more of a difficult situation. you know, as far as the price action we can see, natural gas prices being 450 in calendar year '21 n calendar year '22 -- sorry. 450 in calendar '22, it might seem like extreme prices compared to what we have seen in the past, around $2 a couple
1:52 pm
years ago. but natural gas prices have been around $4.50 as the average over the last 20 years. we have been able to have the benefit and luxury of lower gas prices because of american shale production here in the united states if we want to prevent high prices, support the oil and gas industry, support american shale. we can be an answer to help keep prices affordable for all americans. >> obviously, we are not in a moment that that's politically popular. the president is at the cop26 summit to make a point about moving -- i think you saw the big announcements on solar, they are looking to wind and other sources of energy. is there a way to make nat gas cheaper without supporting it politically? do you know what i am trying to say? it feels like it is getting -- investors aren't happening because there has been so much by testment granted in part because of the poor returns over the last decade. >> if you want to prioritize
1:53 pm
your care for the environment you should be supporting natural gas. we shaved emissions since 2005 because of natural gas, phasing out coal, replacing it with natural gas. over 75% of that emissions vuks attributable to natural gas, switching from coal to natural gas. the opportunity in front of us is tremendous. you for example as good as wind and solar can have on reducing emissions in the united states, if we can increase our natural gas exports -- this is more lng, and increase 20 bcf a day, just to replace the coal that's being consumed in india and china, that would have the impact of producing 370 million tons of co 2 in the world. >> wow. >> which would be larger thab than the emissions reduction you are seeing in the total renewable energies here in the united states. >> quick final question. when we look across the opportunities still left with nat gas, and they are saying we
1:54 pm
need to bring methane emissions down 30% what does that mean for production >> for modern shale producers like eqt, we drill high class wells, we have sophisticated technologies in place, robust monitoring programs. and our methane intensity level is around 0.05%, which is well below the epa's estimate of .4%. it is not going to have that big of an impact for your modern shale pritors. but there will be an impact to marginal well produce urs. i hope people understand these impacts when they think about these regulations. from a cost perfective, if these burden our small mom and pop operators, that could have the impact -- these marginal wells produce around 8 bcf a day of our current supply that's about 10% of gas
1:55 pm
production prices are going to increase that's going to have a tremendous burden on the american consumer. the other impact though, which i am equally concerned about is the impact to the environment. if we move 8 bcf a day out of the world that is 8 bcf a day of coal consumption that's going to take its place that's going to translate to almost 250 million tons, incremental co 2 emissions per year that's the equivalent of the impact that tesla makes 50 times over i think we really need to understand the impacts of the regulations. it is a good start it helps level the playing field. we embrace having clear rules of the game that we can operate to. i think it will ultimately bring more trust back to our industry that we are doing things the right way. >> toby, great to have you on today to break all of this down. thank you. >> thank you. >> the president of eqt. coming up the slowdown in
1:56 pm
bitcoin trading hit robinhood and square's results what does it mean for coinbase next week? stay us. one of the big trends in sustainable investing is data, and the ability to understand how sustainable your investments are. by taking that information into account, investors can make better decisions for the long term. sustainability is not about one number. it's about variables like water usage, data privacy, consumer trust, diversity, land use and conservation. all types of investors are now considering this in their investment decisions. this is not niche. one in four dollars globally is following some form of sustainable investing. with sustainable investing at this scale, there's power to change the markets and have an impact on the issues investors care about most. i am courtney thompson and we are morgan stanley.
1:57 pm
1:58 pm
1:59 pm
welcome back square trading lower today by bm 3% after missing on revenue last night. bitcoin is possibly to blame kate rooney joins me with the details and what it could mean for coinbase earnings next week. >> bitcoin was a big reason for square's revenue miss. analysts were also disappointed by slower growth in square's cash app bitcoin revenue coming in about $800 million shy of expectations the cfo telling reporters this was due to lower bitcoin prices and less volatility, therefore people trading less. she did show say seesing seeing a little bit of improvement from october as bitcoin prices rebounded to an all-time high. square's numbers echo with what
2:00 pm
we saw from robinhood last week. also missing on revenue with bitcoin dropping off as a percentage of revenue. robinhood saying less interest in alternate coins was a big reason for that. square and robinhood saying they are not planning to add any new coins to drive coat. scott dorsey saying he is staying with bitcoin coinbase, the largest crypt exchange reporting next week their bread and of the butter is crypto trading 95% of their total net revenue they have been looking to expand and diversify into other areas of crypto with an nft marketplace, perhaps. >> yes, they have. that does it for "the exchange," everybody. "power lunch" begins right now


info Stream Only

Uploaded by TV Archive on