tv Worldwide Exchange CNBC November 11, 2021 5:00am-6:00am EST
it is 5:00 a.m. at cnbc and here is your top five at five. stocks trying to bounce back after an inflation induced selloff that saw prices hit the highest levels in 30 years the biggest i.p.o. of the year, rivian now bigger than ford if the premarket gains hold it's going to be bigger than general motors elon musk making good on a promise in the twitter verse to offload a portion of his tesla stake. disney under pressure after a dismal quarterly number.
bank of america says it's sticking with the stock. and a "worldwide exchange" exclusive with rick perry. his take on the growing european energy crisis, vladimir putin and much more happening on this thursday, november 11th, and this is "worldwide exchange. good morning, good afternoon or good evening welcome from wherever in the world you may be watching i'm brian sullivan once again we are live from london you can see the london eye, the giant ferris wheel you have to check it out it's touristy, yeah, but it'sal, and you can see everything and it's a stunning day today. your money, just sitting off record highs even with a draw down on wednesday. we are seeing futures higher across the board, not making too much of it nasdaq futures have turned even higher than a few minutes ago.
we tell you, it's 5:00 on the east coast, not a lot of futures trading action as more people come in, whether it's london, frankfurt or new york, and we're seeing nasdaq futures up nicely up 102 points right now. we're going to tell you something that you already know. inflation is on the rise, costs for everything going up everywhere the official inflation data hitting a 30-year high in october. that's going to wipe out most of the wage gains as people use their extra pay to pay more for the stuff they buy, heat their home or fill their car with gas. with nasdaq, futures are up 102 points right now, we could see that pop just a reminder, an important one, it is veterans day, honoring the men and women who have served our counted. first off, thank you to all of them the bond markets today, they are
closed so that could impact stock trading. two money movers to hit off the top of the show. disney, shares down, fourth quarter results disappointing. its streaming subscriber coming in light we get more on that in an analyst take in a moment stock number two, tesla. what else, new disclosures out after yesterday showing that elon musk is offloading nearly $5 million in tesla stock since monday while it may look on the surface a make good to his twitter followers following the poll whether he should sell one billion was set in september to be sold. mixed picture overnight in asia despite evergrande group being in the headlines again within moments of defaulting on the debt, they did pay some
coupon holders, the third time it's just squeaked in under the default wire in about a month. we are seeing evergrande up just a little bit but this is a big story. here in europe, trading is getting under way. we're about split, we have a giant wall to my left in our london studios and i can see -- i'm not going to read them all to you because there's like 500 names, but half are in the red, half in the green. two early standouts here, delivery hero, lifting 2021 revenue guidance after strong third quarter numbers and b burrberry declaring a dividend both shares on the move. delivery up, burberry down just a touch. top stories state side including more on the electric public offering for rivian sylva
silvana is here with that and more electric. >> yes, brian. good morning it is the largest i.p.o. of the year, shares of electric vehicle maker rivian surging in the debut and closing with a market value well above that of ford and a few thousand dollars below general motors at $85.9 billion. the company's stock started trading at $106.75 a share four times what it was valued at in the private markets ri rivian, backed by companies like ford and amazon, has preorders for its pickup truck and suv as well as an order from amazon for commercial delivery vehicles to be delivered by 2025 so far it's delivered just a handful of vehicles to date. ozzy media is reportedly being investigated by the justice department and the s.e.c federal prosecutors in the
eastern district of new york have contacted at least one firm that dealt with ozy in the past. the s.e.c. has sent inquiries into two companies that weighed investments in ozy today is singles day in china, a one day shopping festival akin to black friday here in the states but while previous years were full of spending, this year they're focussing on president xi's common prosperity agenda, reaching out and supporting farmers and small communities rather than big cities back to you. >> happy singles day to all of our viewers in china just spending it up let's get back to the markets and that focus on the white hot cpi data, consumer price index. the big questions investors have right now, can stocks run higher even inflation runs higher and if so, where to invest
joanne, it's good to have you on i saw your tweet, thank you for getting up early we had a little bit of a hiccup yesterday, nasdaq futures up more than half a percent, so i think we answered our own question why don't investors seem to give a whatever about inflation data from a stock perspective >> brian, i think -- hello to you in london. i think that investors are recognizing that a lot of the inflation surge is driven by the shortages and the shortages are a blessing in disguise to equity investors because it means there's still real growth to come as the shortages, whether it's semiconductors or materials abate, that means more sales, more profits so a lot of the inflation surge is coming from the shortages, that's why it's not as worrisome as it might be otherwise >> some good news there. does it matter if it is, i hate the word because nobody actually
knows what it means, transitory, does it matter if inflation stays hot six months or the next two years? at some point would it matter? >> it definitely would matter if expectations become unmoored from the fed's 2% target so far they have been anchored you see it in the interest rates that expectations do come back down that chart you showed earlier with the used car sales going up 26%, is a good example of what's driving this so long as inflation does remain anchored longer term, so long as the market continues to believe the fed has the tools to keep this under control and not let it takeoff, then it's an okay situation for equity markets we've seen companies be able to pass off these cost increases into prices that's one of the reasons we're seeing it in the inflation. >> part of that is also housing,
rents or home prices up more than 15% year over year nationally but that is not scaring you off of linar, one of the picks you brought for us today. >> yeah, it's in the perfect house in the market, they build entry level. that's where the strength is, we have millennials coming out buying homes and the inventory in existing homes is below 2.5 months so there's demand there still. and what we saw when lennar last reported in september, they saw revenue goes up 14% well above their cost going up just 8%. so they're able to pass on the cost increases and they're going to see a lot of demand ahead of them >> watching shares of lennar, bouncing around flat but making the case for len we appreciate it, thank you for
getting up early >> you bet, brian. we have more to do on "worldwide exchange. when we come back, maybe call it peak alt meat. shares of beyond meat down 20% yuck plus more on disney's streaming slow down. bank of america's jessica erlick is here. and rick perry, his take on the global energy crisis, putin's power play and more we're back with nasdaq futures soaring. we're back in two minutes. on the edge of a forest in norway, there were three things my family encouraged: kindness, honesty and hard work. over time, i've come to add a fourth: be curious. be curious about the world around us, and then go. go with an open heart, and you will find inspiration anew.
viking. exploring the world in comfort. destination spot injected. let's start tripping. follow route left, left, left, left, left. recalcumalating. left, left, left, left, destination place now more far away. stop. wait. go into your behind. 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.
it's another day. in any market, any language, 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.
welcome back time for some of your big money movers, the three key stock stories happening now. stock number one we showed it to you before the break look away. beyond meat reporting a wider than expected fourth quarter loss with revenue falling short of estimates, and a weaker than expected sales outlook for the fourth quarter that stock is down 19% stock two is a firm, payments company soaring on fiscal first quarter results becoming amazon's exclusive buy now, pay later option that stock is up 29%, a bunch of big movers right now and stock number 3, a fumble for bumble shares down on a wider loss was nearly an $80 stock back in
february, it's a dating app, stock is now down 6% as well lost half its values from the highs earlier this year. on deck our conversation with rick perry about europe's growing energy crisis and russia's role in it. plus, why rivian is not the only pure play electric vehicle maker making waves right now check out shares of lordstown motor. you thought i was going to say tesla, didn't you. but it's lordstown motors, that stock up nicely. we're back right after this. >> announcer: today's big number 2 billion. that's how many out-of-stock messages u.s. consumers received in october according to data from the adobe digital economy index. that's up 325% since the same month in 2019.
all right. welcome back and good morning. look at that we had a little bit of a bump in the road yesterday with stocks, but it's looking like investors pulling the honey badger, they don't care they're buying equities. buy the dip. why wouldn't you do that it's working the last year and a half or so, nasdaq futures are up big time, up 106 points right now. it's not that often you see the
nasdaq futures nominally, a bigger number, higher than the dow. the dow is a lot bigger. so on a percentage basis and a numbers basis. the nasdaq futures, big tech looking very, very strong on this veterans day. let's check this morning's other top headlines happening in the states francis rivera is in new york with that and more. >> the first lawsuit has been filed in the aftermath of the tr tr tragic "rust" film shooting. the lighting production is suing more than two dozen people after alec bald win shot and killed his friend the clock is ticking for former president trump late last night a federal judge rejected his appeal to delay the release of white house records to the committee investigating the
capital riot after multiple delays a spacex rocket has launched another crew to the international space station. four astronauts will alive at the station tonight to begin a six-month mission. with this launch, more than 600 people have travelled to space over the last 60 years those are your news headlines, back to you. >> very cool stuff, and good morning. have a great day thank you. we have been in london all this week here on worldwide exchange and being out and about, it is evident of one thing. the uk is back and it's open for business the city is rocking. the subways, the tube, packed. offices seem crowded and it's about a month wait to get a reservation even at a mildly popular place it all feels shockingly normal shoppers are coming out in force, retail sales on the rise, higher than before the pandemic and lockdown so is this the future, the u.s.
will have once we kind of get to where the uk is right now? let's talk about this with stacy woodlets, somebody who could get us into the hot london restaurants if we asked, and we might. it's good to see you i know you've come in the u.s. and talked about it. i'm gob smacked by how packed it is here. is that where the u.s. is going to be, is it where parts of the u.s. are >> it's where parts of the u.s. already are and don't forget the uk opened in april we're kind of behind, we're in the heart of our pent up demand and go crazy you saw that in the streets here, you can't get a reservation, as you said, in london and you saw the retail numbers in the uk, up versus 2019. in the u.s. we're hearing from
the malls, simon property up 11%, sales over 2019 so we are back or exceeding in many cases pre-pandemic. this is the greatest environment we've seen, pent up demand, high operating margins due to no inventory in the marketplace and basically no discounts. >> i think that's the key. it's not just the amount of stuff people are buying, it is not just necessarily what they are spending it is how much the retailers and the brands may finally make. for years they were -- i hate to say it, dumb, about it right. overstocked inventory, then they had to mark it down, smart consumers knew it, they'd wait for the 40% off. they don't have do it now. so they'll have stronger profit margins. but the question is how long will this last is it a long term phenomenon >> i think that history tells us
that many brands and retailers fall back into their old ways and the trick is now, they're in the forecasting business we have to take this very rare period of time and say, okay does this trajectory of demand last, and when the supply chain eases and we actually can stock the shelves, does that demand -- what does that look like a year f from now or are we exhausted at that time of purchasing and retailers ramp up inventory and we fall back into the overstocking again i think this is as good as it gets in this moment. if you look a year or two out i think we're going to see the discounts come back as we normalize. >> it's hard to break habits of 30 years, stacy. right. go back, answer your question about supply chains. there have been comments, auto
makers in japan starting to say things are starting to flow. maybe some semiconductor are arriving faster than they used to that's there still a lot of ships off the coast of l.a are you hearing from sources that things are getting any better from the supply chain it doesn't matter how much you want to sell a sweater for if the sweater doesn't make it to the store. >> i'm not hearing a ton of easing up at the moment and, of course, everybody is like q 3 is not going to be great. hopefully we can push stuff into q4 the problem is when stuff is late, post holiday, you got to mark it down i think for the next four quarters or so, this will persist so the full price selling will persist i guess the slight bit of good news that we talked about in the past is that prices have come up so much that that tends to be sticky so in some sense for retailers this has been an amazing reset think about luxury, chenell has
raised their prices 30% this year these numbers are crazy for some of the high-end retailers. >> but people are buying it. they're raising prices but it doesn't matter that's the sign of a super -- well, it's a strong consumer on the luxury side, right what about the rest of us? >> it's strong across the board, at the moment. but we go back into the normalized demand situation, and this changes pretty quickly, i think. so get your bag. >> yeah. we're -- yeah, right we're going to have to change keep calm and carry on to go nuts and spend wildly. that's what it seems like this year >> you're right. >> thank you very much. i'm telling you if you can afford a plane ticket, get on a plane, get over here coming up a "worldwide exchange" exclusive with former energy secretary, rick perry
we'll talk about the growing energy crisis here, putin's role in it and maybe later something about nuclear. if you haven't already follow our podcast. if you missed the show, don't worry you can stream it any time on apple and spotify and others. nasdaq futures soaring up 100 points right now could be a big day for stocks. we're back right after this. (swords clashing) -had enough? -no... arthritis. here. new aspercreme arthritis. full prescription-strength? reduces inflammation? thank the gods. don't thank them too soon. kick pain in the aspercreme.
introducing comcast business mobile. you get the most reliable network with nationwide 5g included. and you can get unlimited data for just $30 per line per month when you get four lines or mix and match data options. available now for comcast business internet customers with no line-activation fees or term contract required. see if you can save by switching today. comcast business. powering possibilities.
buy the dip? it certainly looks like it futures are surging after investors are slhrugging off the inflation data sticking with disney, despite a whiff. what disney is doing to turn the tide. elon musk looking to make good on his promise to the twitter verse, kind of. it's veterans day, november 11th and this is "worldwide exchange." welcome or welcome back and good thursday morning. it is almost exactly 5:30 on the east coast, so:30 here in london just a reminder because it is veterans day, a big things to all of our veterans like my dad, ten years navy go navy. the bond market is closed, which could impact stock trading, take that into accounted. right now if it's impacting it,
it's impacting it one way, which is higher. we are seeing stock futures moving particularly on the technology side as well. nasdaq futures are up .6%. if you're counting at home, that is up 102 points nasdaq futures up more than dow futures. all the inflation data by the way, not impacting sentiment at least for now. we'll add color and context to it in our rbi. first, let's look at rivian. how could we not that i.p.o. hotter than the inflation numbers. shared soared yesterday and higher right now they're now worth more than ford and just a hair under the value of general motors. despite its first ever car just rolling off the assembly line last eek the pre-market moves hold, you can slide rivian right above gm. again, i don't think anybody has taken possession of one of the cars, the first truck off the
assembly line, by the way, looks gorgeous, when you think about that market value. the company started -- stock started trades at about 106.75 a chair, 30% higher than the i.p.o. and four times what it was valued at in the private markets. when you don't have a lot of legacy assets, pension obligations, health care, tens of thousands of former workers, gm and ford do, it compresses their market cap but keep in mind, ford owns a nice chunk of rivian rivian could finally be the competitor that tesla has been waiting for and that stock and elon musk also in the news right now. let's find out why and get more key headlines. >> so elon musk has offloaded nearly $5 billion worth of his tesla shares in the first three days of this week. the shares sale coming days after musk took to twitter saturday to ask followers if he should cash in 10% of his stake in the company he founded.
while it's unclear if the recent transactions disclosed in a regulatory filing late yesterday were the first installment of musk making good on his promise to follow the will of the twitter verse, what is clear is that at least $1.1 billion of the sales were set in motion when he adopted a blind trading plan back in september senator joe manchin may delay president biden's build back better legislation until next year according to axios the news coming amid renewed inflation concerns as it hits the highest level in 30 years. manchin says he will instead be focussed on the funding the government, raising the debt ceiling and passing the national defense authorization act. house speaker nancy pelosi said she intends to pass the build back better by the week of november 15th. and box con is moving ahead with a plan to acquire a lordstown motor assembly plant in ohio for
$230 million with plans to sign the contract at the end of april 2022 the new spend giving lordstown relief it gives a jump start on producing fully electric trucks also. >> lordstown stock up 13.5%. thank you,silvana. to the house of mouse. disney's shares down on an earnings disappointment nearly across the board, particularly on the new television side the operating loss of direct to consumer segment was worse than analysts' expectations last night. saying that future streaming growth will be helped by the company planning to double the number of international markets in the next two years. >> we reaffirmed our guidance of 230 to 260 million households and we believe that there are two primary drivers of that
growth first one is going to be the expansion into new markets, we're going to double the number of markets that disney plus is in international territories by fiscal year 2023 and the second component is obviously going to be new fresh, content across our wonderful disney franchises. >> joining us now is jessica erlick, analyst at bank of america. great to chat with you again i know you called the numbers disappointing in your note late last night but there is this idea that content will be coming out, will things get better on the streaming side for disney? >> this company, this story for disney is definitely back-half weighted there will be some benefit in the first fiscal quarter, the december quarter from several new markets they launched bigger in japan, south korea, taiwan
and hong kong, so strong economic areas but the company did warn, as they typically give headwinds that the real growth will come later in the year when the content ramps up, as you just highlighted. >> and also we know we talked about they're going to have a promotion for disney plus it's now $7.99 a month they're going to $1.99 on one hand you think it's working but the other happnd, w do they have to discount >> they're about to use their asset base to promote disney plus and other services. that's something other services don't have they have a large asset bass and disney has yet to turn on that marketing machine. so these numbers are not great but preannounced at a conference in september so there was no surprise in the disney plus
numbers. theme parks also -- i'd say the numbers weren't great as well. but there is reason to be optimistic here with international trade opening up, we've heard several ceos, i think yesterday you had somebody on from one of the airlines saying that they expected this to be a record summer between europe and the u.s so we know that international visitors can be 15 to 20% or more of total visitors, and they've been missing since covid started. so that ramp will come as we get closer to summer you know, the cruise ships are finally coming back on line. so there are several things that will drive the stock as we get later into the year. >> and it's truly, to your point, sort of a back-half weighted story you are recommending it. you did cut your price target a little bit down to 191 so you see upside. if you look out, what are the risks? i don't know if we're going to
have more covid related lockdowns, i don't think there's political will for that, but these days who knows what will be the risk to disney's stock, jessica? >> this year will be -- the company is in the penalty box. we don't expect the stock to outperform in the very short term and we know that in premarket trading it's down significantly. having said that, you know, this year with the company typically will give you the headwinds, not the tailwinds. so we know that first quarter will be a very difficult quarter particularly in the media network said, they have some unusual costs, sports costs, things like that direct to consumer will have peak losses this year as they ramp up the content spend which is a positive as we move on. free cash flow will be impacted by the cruise ships that are coming on. these are all things that i think investors are aware of, but they are headwinds in the
near term. >> yeah. some headwinds there we'll wait for more content. everything it's -- call it the tv supply chain, jessica, right like the ships off the coast of l.a all that content got jammed up as well. we look forward to that. jessica ehrlich thank you so much >> thank you. let's continue our focus on energy, particularly the growing crisis here in europe, at least parts of it, how vladimir putin is using pipelines as a bit of a power play and what, if any, lessons that the united states can learn from europe's renewable energy transition which is a few years ahead of ours we had a chance to speak with former energy secretary rick perry and i began by asking him, how did we get to this place and what lessons might we take from it >> brian, you're correct in the observation that we are at a tipping point, if you will and we've been there for some time
the move towards renewables, green energy, is an admirable move, the state of texas, while i was the governor there, we made the decision to have a more diverse portfolio. we had pretty much only gas and coal powered plants. gas that hit $14 in mcf in the early 2000s we made the decision to look at the expansion of wind so we would have a more diversified portfolio. that was the right thing to do at that particular point in time what's happening all too many places, and particularly in europe, in my opinion, the uk, is that there's been substantially a move away from fossil fuels because of the green environmental movement that is basically said fossil fuels are bad, notwithstanding
that liquid natural gas -- the same thing could be happening across the world if liquidified natural gas which america has a 100 year supply could be put into place i think the lack of diversity is what's happened. the move to go to all renewable and there's some -- there's some great plays there, but you've got to be smart about it i think all too often there's just been this march towards the left, from my perspective, on green energy that literally is putting people's lives in jeopardy we'll talk about that a little bit later in your program. my bet is that if you line up some events, whether it's an extra cold winter, whether it's the breakdown of some of the
machinery. whether it's the wind quitting blowing, you could literally see deaths occur because of bad policies that have been put in place by the european union, the uk i hope that's not the case >> and we spoke with an energy charity that said families may have to make the decision between, quote, he said eating or heating no country relies on natural gas more than the uk to heat homes and they have no long-term storage, closed their storage field called rough in 2017 now we're seeing spot prices in the u.s. 5.5 to $6 in the dutch market or here, 20, 25, we've even seen $30 in parts of here and asia how long do you think this is going to last, and mr. secretary, how much power does this give vladimir putin over europe right now? >> i made the statement over the
course of the last 48 hours that i was asked about the price of crude because of the lack of supply, the biden administration sending clear messages to the fossil fuel industry, they don't like them, they are going to put policies into place, regulations into place, they're shutting down pipelines, so the crude market is really being restricted i don't think it's out of the ordinary i think we're 82, $83 today, in six months you could see $100 crude prices blglobally and that will really bust a lot of budgets as we go forward. >> bank of america has a 120 brent crude target i think in early spring but something you and i have spoken about in the past, the nord stream ii a lot of political fighting over this you have a new administration coming in germany with the
renewables sort of having trouble with the wind, literally the wind did not blow as much as expected in parts of italy and england and this desperate rush for gas and coal, putin has to be loving this he has to be in a position he can now dictate the terms, can he not >> let me back up just a little bit. one of the things we worked on substantially, in my tenure as the secretary of energy, at the direction of president trump, was to smell american lng into europe the polish government was open to that, they understood the importance of it, the battic states, ukraine, all very open -- i think i travelled to 15 european countries while i was the secretary of energy, talking to them about l&g, nuclear power and battery storage, some of the technologies that we were working on
but the point is, without substantial liquified natural gas coming from non-russian sources, i say non-russian sources because there's already a record of putin shutting down the gas supply to places that he wants to put a political finger on, so to speak, to get them to do certain things. that is the reason that president trump was very strong against the nord stream ii pipeline we had stopped it. we did not think it's a good, i think europe did not think it was a good idea for russia to be able to control that energy all through the european continent so when the biden administration came in, one of the first things they did, shutdown a pipeline in the united states, the keystone, open up a pipeline in
northern -- through the baltic sea there. it just didn't make any policy sense at all i might add, at the same time this is going on, you've got john kerry jetting around the world lecturing countries all across the european continent and otherwise that they need to quit using fossil fuels. there's no consistency here in this administration. and europe could be the ones that really pay the heavy price. >> thanks to secretary perry we also spoke with him about nuclear power. later today we'll hopefully hear some of those comments why nuclear power should not be left out of the conversation on renewables and which companies and maybe stocks could benefit if nuclears take off more on your big money
movers, including the story that has fin tech sofi soaring today. two other headlines, zillow reportedly selling 2,000 homes from the home flipping business. according to "the washington journal" the sale is part of the plan to offload about 9,800 houses they own. zillow stock has been a disaster lately sony is cutting playstation five outlook for the year due to component shortages and logistical issues, reportedly. bloomberg reports they intended to produce 16 million units in the year, but the target has been cut to about 15 million if you want one for christmas, buy it now we're back after this.
growing up in a little red house, on the edge of a forest in norway, there were three things my family encouraged: kindness, honesty and hard work. over time, i've come to add a fourth: be curious. be curious about the world around us, and then go. go with an open heart, and you will find inspiration anew. viking. exploring the world in comfort.
healthier is on-demand covid testing to help you return safely. even if it's still... a little awkward. how've you been? -i'm so good! ♪ this is what healthier looks like. ♪ welcome back let us hit a few more big money movers on this busy thursday s sofi, earnings topping forecasts, strong growth, so far reporting 15% growth in borrowing driven by personal and student loans that stock is up 15%. don't miss the ceo first on cnbc 8:30 eastern time today. stock two is amc, the ceo filing
to sell about 53 million worth of his shares but it's part of an already set trading plan. he said after the sale he'll still own more than 2 million shares stock three, the honest company. shares are popping, honestly this is the consumer company had solid earnings sales above most estimates, things like diaper sales were hot maybe the lockdown baby wave is take ing off. your morning rbi, hint it's all about inflation. it's not boring. we're going to put the numbers in context to show you how hot they are you know what else is hot? nasdaq future, they're up more than 100 points right now, could aig dbe bay on the street of dreams back right after this. ♪ red roses too ♪ ♪ i see them bloom ♪ ♪ for me and you ♪ ♪ and i think to myself ♪
♪ what a wonderful world ♪ a rich life is about more than just money. that's why at vanguard, you're more than just an investor, you're an owner so you can build a future for those you love. vanguard. become an owner. i'll shoot you an estimate as soon as i get back to the office. hey, i can help you do that right now. high thryv! thryv? yep. i'm the all-in-one management software built for small business. high thryv! help me with scheduling? sure thing. up top. high thryv! payments? high thryv! promotions? high thryv! email marketing? almost there, hold on. wait for it. high thryv! manage my customer list? can do. will do. high thryv! post on social media? hash-tag high thryv my friend! get a free demo at thryv.com. 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 to make progress, we must keep taking steps forward. we believe the future of energy is lower carbon. and to get there, the world needs to reduce global emissions. at chevron, we're taking action. tying our executives' pay to lowering the carbon emissions intensity of our operations. it's tempting to see how far we've come. but it's only human... to know how far we have to go. time now for your morning rbi. today, once again, we are talking about inflation. i know i know you're probably sick of hearing
about it but inflation is important there's an inflation maybe on talking about inflation. but hear us out. this one is not boring, hopefully. it's more context to where we are right how. the consumer price index came in red hot on wednesday, rose 6% year over year doesn't sound a lot but it's the 10th annual biggest jump ever in the history of america, the largest increase since the fourth quarter of 1990 how things have changed. when inflation was last this hot, the yield on the 10-year u.s. government bond was 8%. 8% that's actually down from where it had been. be by by the way, if you're wondering where mortgage rates were back then, forget about it, you couldn't have afforded a house lending tree shows in november of 1990, the average 30-year mortgage was 10% now we consider 5%, maybe 4.5 to be sky high. crazy times, right but it could get crazier with
energy prices likely to rise in the year end in holiday spending already straining supply chains even more, it is possible that prices could continue to go up, which would put us into 1982 type of inflation territory, the worst we have ever seen, ever. a little more context, the last time inflation was this hot, because i love you, the postman song was the number one on the charts and "home alone" the original was the hot movie let's not go back to that and maybe not go back to that level of inflation, either random but interesting joining us now is michael pervis i tried to put a little context into that. last time we were this hot we had 8% yield on the ten year now we can't get above 1.5 or 1.6 to save our lives about it, michael. why not? does the bond market ever revolt
and start to care? >> one thing when you think about low interest rates, where else are you going to go we talked about there is no alternative so you buy equities. within the bond market there's a sense of tina, too, which is that yields over in germany, for example, are negative. and throughout much of europe are negative there japan you get no yield so in all these developed market peers of ours, we're actually, even at a pal tri 1.5, 1.6% on the ten year, we are -- we're a lot more attractive, actually. so that's one facet of the discussion i think the other thing is simply that the fed is keeping interest rates extraordinarily low. i mean, there are hikes being priced in, right but they're not pricing in something that's going to return to the 10% levels you were just
referencing there. so it's a combination of factors here i think when you step back, you know, if you look at like the broader long-term trends of inflation, they have been trending lower and lower over the decades. i think the expectation is even if some of this inflation is extraordinarily -- in the short run it's not going to be perpetually vicious. >> michael, here's what i -- i'm not -- to quote forest gump, i'm not a smart man. but i don't understand why gold isn't moving at all. nothing. >> that's a great question it started moving the last couple of days here. when you look at real interest rates are extraordinarily low, real interest rates meaning the nominal interest rates when you get on the 10 year treasury less some inflation metric. they're incredibly low which is generally very good for gold two things why gold has been
poor this year, one of which the dollar hasn't been collapsing. it was sliding a lot last year and into the beginning of this year, and then it stopped. that's one thing i think bitcoin and the cryptos have stolen a lot of the thunder from gold. and so, people are saying, look, we need a nonfee currency play but bitcoin is a lot more fun, more exciting, you can make more money. if gold goes from 1800 to 2000 that's a nice return but if bitcoin goes from 30,000 to 60,000 that's better returns and there's views that bitcoin can go higher than it is right now gold has been around and adopted as currency for 5,000 years. >> we'll see if it's the next five months. it hasn't been but to your point it is starting to creep along a little bit.
micha michael purves always good to get your views that does it for us on "worldwide exchange. we'll see you tomorrow, squawk and the gang picking up coverage with nasdaq futures soaring. could benoer ath big day for big tech see you tomorrow have a great one from science austria, zentestine! create hope for regular go and happiest pants. say no to consume zentestine if toilet lives far away. if no go for 96 hours, call doctor... 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.
with xfinity home, you can keep your home in a and everything in itge, more protected. i can wrangle all my deliveries. thanks, hoss! and i help walk the dog from wherever. *door unlocks* ♪ ♪ well, i can bust curfew-breakers in an instant. well, you all have xfinity home, with cameras to home security monitored by the pros. *laughs* learn more about home security or get our self-monitored solution starting at just $10 per month.
good morning, futures pointing to a rebound after yesterday's inflation shock. we'll show you what's moving so far this morning rivian, surging in its public debut, the electric truck maker's market cap already bigger than ford and it's now past general motors. disney shares falling after the company disappointed and reported a slow down in subscriber growth, sharp slow down we'll dig through the numbers.
it's thursday, november 11th, the 11th day of the 11th month veterans day "squawk box" begins right now. good morning, everybody. welcome to "squawk box" here on cnbc i'm becky quick along with joe kernen and andrew ross sorkin. and as joe mentioned it is veterans day today this is a day for us to pay our respects to all of those who have sacrificed for our country and thank everyone who served. the bond market is closed in observance today but the stock markets are open on this veterans day let's look at the u.s. equity futures you'll see green arrows this morning after a decline in the markets yesterday. yesterday the dow was off 240 points but only down by
IN COLLECTIONSCNBC Television Archive Television Archive News Search Service
Uploaded by TV Archive on