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tv   Worldwide Exchange  CNBC  April 12, 2018 5:00am-6:00am EDT

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good morning it's 5:00 a.m. on the east coast. here's the top five things happening now. is the market volatility finally slowing down the first calm morning in a while. futures basically flat two, oil holding near a three-year high. tensions rising in the midwest. three, if you thought a trade war with china was out of the question, think again. china out with a new warning for america. four, ge's ceo weighing in on the trade spat between the u.s. and china exclusively to cnbc hear those comments ahead. and five, shares of bed bath & beyond getting taken to the cleaners today
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we'll show you what that stock is doing on this thursday, april 11th "worldwide exchange" begins right now. ♪ good morning from wherever in the world you may be watching i'm brian brian. thank you very much for joining us on cnbc here's how your money and the global markets are setting up their day. stock futures indicating the dow -- we don't know the futures for once are fairly flat thinly traded at this hour don't put a lot of credence into it the dow futures down about 2 points similar story with the bond market maybe volatility there slowing the ten-year treasury note yield yielding 2.77% the bigger story may be in oil crude here and overseas trading at the highest level in 3 1/2 years. global demand is growing inventories getting tighter. watch gasoline prices. u.s. government predicting a 14% jump heading into the summer
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they're already about 30 cents higher a gallon now than they were this time last year just something to think about when you fill up your gas tank in the summer driving season, which is known as summer let's talk more about the markets and risks thereto. ed campbell is from qma. thanks for coming in >> thank you for having me >> let's talk about for our viewers and investors watching, what are the biggest risks to the stock market "a," potentially a trade war "b," an actual war given the recent comments on syria or "c," inflation and/or the fed, or "d" something else >> i think the trade and geopolitical risks have come to the forefront here, especially since march. as you point out, the market is buffeted by counter dominguvail
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forces the economy is booming >> the economy is actually strong you wouldn't know it from the headlines. >> we may get a weak printout of q1, which has been the pattern for the past couple of years for the year we're likely to see growth between 2.5% and 3% that's an upshift in terms of the 2% pattern post-crisis fiscal stimulus is not likely to reach its peak impulse until next month or so there is positive things as you mentioned we have rising trade, geopolitical risks. we don't want to ignore the mueller investigation and where that's leading >> that's heated up lately, but it's been going on for a long time >> we couldget news flow comin out from that. >> are you surprised the stock market did not react more negatively from the president saying the missiles are coming
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to syria, and continued strong rhetoric on china? xhin th china this morning pushing back a bit more are you surprised the markets have not reacted more negatively to those things? >> there's been a lot of volatility in the markets. a lot of those things have been mulled over. the 10% downturns we've seen since february after a period of incredible tranquillity in 2017, we've seen much more volatility here. we're still positive on stocks >> even with all that other stuff going on >> yeah. we started off with a more aggressive position. we pulled back a bit we bought more diversifiers. we are holding more cash we are still overweight stocks we think we'll get a decent return out of the s&p this year.
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about 10% upside from where we are currently. >> from where we are now about 10% you think. >> your advise to viewers is listen, it's not all euphoria. get smart, by insurance, put more cash in there buy more bonds just around the markets. >> i think after two down months, february and march, i think we'll get a good april that will probably be driven by the positive earnings season that we're likely to see >> also corporations can come back in and buy their own stocks they've been out of the game they've been a huge level of support for the stock market, haven't they >> yeah. april is typically a good month seasonally the problem is after that we're likely to see flat to volatile markets. i don't think we get back on track in a major way until the fall or so >> ed campbell, pleasure to get
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you in here. i don't think any of these risks you talked are going anywhere. i hope they are. have a great thursday. mark zuckerberg enduring another round of questions from congress today yesterday facebook came under fire for what many considered a too casual approach to protecting your information. zuckerberg said he was unable or unwilling to give clear answers about the business model and privacy practices. >> was your data included in the data sold to the malicious third parties? your personal data >> yes. >> it was. are you willing to change your business model in the interest of protecting individual
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privacy? >> congresswoman, we have made and are continuing to make changes to reduce the amount of -- >> are you willing to change your business model in the interest of protecting individual privacy >> congresswoman, i'm not sure what that means. >> joining us now is the head of investment research at global data cyrus, thanks for joining us mark zuckerberg, two days, basically softball questions, a couple hard ones thrown in there. how does this play out does mark zuckerberg and his team, get back in their jets, hole up in their mansions and it's business as usual or do you expect something fundamentally will change from the last two days >> we think something fundamentally will change. it may not be in the u.s it may be in europe or in other jurisdictions. but, you know, something will happen the fundamental problem we got is for the last 25 years, as long as you and i can remember, the internet has been open, free and innovative because it's free, the advertising model has grown up we saw a reference to that that's google and facebook
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dominating internet advertising. but there's lack of transparency in terms of what it means for the consumer because the west wanted the internet to be open and innovative, they had light regulatory touches i think both of those things will change. the internet advertising model is under attack. and regulation itself is under attack and i think you'll see the splinternet which is our definition of the fragmentation of the internet around the world which some jurisdictions, like europe, regulating the internet more than others, like the u.s >> this is where it gets interesting. unlike many hard goods, if you regulate certain types of chemicals in europe, you may not have the regulation here in the united states. if you regulate the internet which is truly a commoditized product everywhere you go in europe or elsewhere, would that have an outside effect also in the united states? is it really a global regulatory scheme at this point
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>> absolutely. next month in may the eu will introduce gdpr, general data protection regulation. what that means is that customers in europe of facebook will be able to ask facebook, for example, for all the data held about them, and they'll be able to control that data. the key question in the hearings has alwaysbeen does facebook control user data or does the user control that data europe will answer that question for facebook because of the distinct lack of data protection laws in the u.s. when that happens, consumers, generally speaking users of facebook, don't know how facebook monetizes their data. when they find out because of these laws and because of the press articles that will follow, they may decide they're not going to put so much information on facebook. and that could hit facebook's model. >> do you believe that
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i don't know how it is over there, over here it's like the airlines people complain about them moan and groan, then realize they have no choice but to buy a ticket on the airline and keep quiet. >> i agree but what regulators will do is make things more transparent they'll force users to actually read the agreements, make sure users understand what they're giving up in terms of data privacy. make them understand for the last ten years internet companies have been profiting from all the data on those peoples lives on their servers that could cause them to change. the key is regulation will place compliance costs upon google, facebook, amazon, these big companies who use big data for ai and internet advertising purpose purposes >> we have a big story brewing in the united states it's on netflix. an alabama pension fund is suing netflix, accusing it of
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violating tax laws by "rigging a bonus scheme and issuing misleading statements about it." the lawsuit naming reed hastings, among other netflix executives it's coming from the uk, but it potentially is a big one here. is anyone talking about this where you are? >> not at the moment, i'm sure they will soon what do you make of this a pension fund suing a company over bonus practices, one of the hottest stocks in the world over the last couple of years >> i think asset managers have been happy while stocks have been going up. there's been bigger corrections in tech coming one of the biggest costs is share options, pension costs or payroll for senior executives. executives around the world are looking at this.
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if you look at wpp, the arrangementses with martin sorrell have always been under investigation. now that martin sorrell himself is being investigated, asset managers could use this as a way to reduce pay. so i think across the whole tech sector, asset managers will take a higher look. also it goes in touch with active asset management. >> i know it's not getting a lot of attention yet, but when you have a pension fund suing a red hot stock and its ceo and executives over pay, it's something to take notice of. cyrus, appreciate it we'll see you again. >> thank you to the other big money stock stories out there today. here's kate rogers >> shares of bed bath & beyond fourth quarter results slightly topped forecasts but same-store sales fell more than expected. the company is guiding its 2018 earnings below estimate sfloos
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tesla is targeting november 2019 for the start of its production model y suv. the company is accepting preliminary bids for supplier contracts. in february elon musk said tess l tesla would target 1 million y suvs a year. takeda is sounding out banks for loans to buy shire takeda is looking for loans of several trillion yen in total from multiple banks. the company has until the 25th of this month to decide on whether to make a bid. walmart could make an offer for a stake in flipkart by june. they agreed to buy 51% of the e-commerce business for between 10 billion and $12 billion. staying with the retail theme. watch shares of gap today. shares down 10% this year. last night on "mad money," jim cramer sat down with art peck. peck telling cramer that gap has
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an advantage over competitors and it's thanks to big data. data is a big thing for us 2 billion visits a year between our online and our stores. we know a lot about our customers. we can see our lifetime value and know who our most valuable customer is. >> you can catch more on that interview on cnbc.com. on deck, we're drilling down on the big move higher for oil what companies are making investors money in a tough market first to china where workers in the tech sector are worrying more about the possibility of a trade war. eunice yoon is live for us >> that's right. i'm at robotics company here in china, the manufacturing area. this company makes underwater drones and wants to sell them in the united states, now it's worried that president trump's
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you know what's not awesome? gig-speed internet. when only certain people can get it. let's fix that. let's give this guy gig- really? and these kids, and these guys, him, ah. oh hello. that lady, these houses! yes, yes and yes. and don't forget about them. uh huh, sure. still yes! xfinity delivers gig speed to more homes than anyone. now you can get it, too. welcome to the party. the soft rhetoric from china on trade appears to be over for now. china promising to fight back if the u.s. steps up trade tariffs. the commerce minister making though comments overnight. in the meantime fresh comments from the white house over the growing trade spat here's what larry kudlow said on
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cnbc >> president trump regards himself as a free trader i heard it from him many, many times. but he's correct i mean, china's the problem. not trump. trump has said, look we can't have free trade if you're going to steal our technology and create barriers and market closings. so we've got to clean that up. the rest of the world agrees with us. agrees with us i call it a trade coalition of the willing. >> comments like stealing our technology raising some concerns among the chinese tech elite eunice yoon has more on the tech side of the trade story. >> thank you very much i think the chinese commerce ministry would say the u.s. has the problem with what it would describe as yune naturunilatera. i'm at a robotics company in china that makes underwater drones up until now it had big plans to
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sell 3,000 models in the first year with the u.s. as the target market now all of that is up in the air. the inventor of this underwater drone never thought it would be in the cross hairs of president trump. chinese start-up qyc makes drones for divers and companies who may need to film under water. now the founder is uncertain after president trump targeted high-tech goods from china >> we do not think it's fair we can provide a good product with a low price >> we are in china's south as the economy here advances, thecountry wants to move away from making toys and shoes and into higher tech products like drones to do that, china has a program called made in china 2025, supporting certain technologies like drones, electric vehicles and artificial intelligence.
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the trump administration said it is unfair promoting chinese high-tech with the help of the state. she is unsure if the drones will end up on trump's final list, but she is sure china will continue pursuing its whole policies >> for the whole industrial development, it's a good thing if we can have this technology development real fast. >> exactly what the trump administration fears is harming america's competitiveness. >> and, brian, she told me that the u.s. is still an important market for them, but if the tariffs go into effect, they will consider pushing into japan or europe instead. so you know about that music, that music was indicating to the workers it's time to go home
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>> the go home song. is that just a nice tone to relax everybody? >> it is there's a lot of music in factories to indicate certain things yes. that's right >> making eunice laugh at 5:20 in the morning eastern time. pleasure good stuff thank you. play the music for eunice. still to come, trump's latest warning. the president coming out with strong words on russia a live report from d.c. on that side of the story next. and in the next hour, larry fink will join "squawk box" at 6:30 a.m. eastern. do you want $5 commissions for stocks, $0.50 options contracts? $1.50 futures contracts? what about a dedicated service team of trading specialists? did you say yes? good, then it's time for power e*trade. the platform, price and service that gives you the edge you need.
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president trump saying all options are on the table in response to a suspected chemical weapons attack in syria. tracie potts is live in washington with more on that >> we will hear more about that today from jim mattis here on the hill for a budget hearing, but likely to face questioning about what's happening in syria and what could be happening soon >> reporter: this morning a u.s. navy destroyer like this based less than 200 miles from damascus has left port, carrying missiles like the one the u.s. used to strike syria last year they will be coming, president trump warned on twitter. but when >> all options are on the table. a final decision has not been
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made >> we stand ready to provide military options >> reporter: some lawmakers say those options should send a strong message to bashar al assad, accused of gassing his own people last weekend. this has >> this has to be more than one an done. >> reporter: russia vows to shoot down any u.s. missiles russia has 8,500 people in syria and says there was no chemical attack get ready, russia, the president tweets >> to taunt the russians increases the potential of what we really want to avoid which is a military confrontation. >> reporter: but it appears that may be exactly where the u.s. is headed now, russia is not only threatening u.s. missiles, but where those missiles come from manned u.s. warships, the one near syria right now, has more than 300 people on board >> tracie potts in d.c., thank you. let's check some other stories outside the world of business with frances rivera in
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new york good morning the death toll from friday's bus crash involving a hockey team from canada has climbed to 16. the team trainer died in the hospital from her injuries the broncos were on their way to a playoff game after the bus collided with a semi among the victims, ten players ables 16 to 21 later today mike pompeo will be in the hot seat testifying for his nomination for secretary of state in prepared testimony pompeo hits on north korea, iran, and vladimir putin and former house speaker john boehner who once said he was opposed to decriminalizing marijuana has joined the board of a cannabis company. he says my thinking on cannabis has evolved. boehner said he supports removing regulations on pot to help veterans with ptsd and to
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fight the opioid crisis. never say never, we always have a sound bite to roll >> we do especially when people join boards thank you very much. still ahead, crude realities. why oil is at a three-year high and how you can profit from it. later on, a big milestone from the big mac what mcdonald's wants to do to celebrate a half century of two all beef patties, special sauce -- you know the rest stick around overwhelming air fresheners can send you running... so try febreze one. with no aerosols and no heavy perfumes. so you can spray and stay. febreze one.
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crude oil has been creeping higher, inventories falling. we'll tell you how to profit from it all. on the record, ge's ceo speaking to cnbc about the growing threat of a trade war. and a pair of base brawls to tell but thyou about this mornig we'll show them to you "worldwide exchange's" second half kicking off right now welcome back, everybody. thanks for being with us on cnbc i'm brian sullivan happy thursday here's how your money and investments look right now stock futures not giving us a lot of direction fractionally higher. that's about it. either way, the good news is the recent volatility appears to have tapered off up 400 one day, down 200 the
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next maybe a nice, easy thursday. maybe not on oil crude oil, at a 3 1/2 year high. gasoline is up 30 cents more a gallon than this time last year. the government saying it will only go up we'll tell you about that in a second let's get more on the energy market action on the crude side with jackie deangelis why is crude above 70 overseas >> one word, geopolitics geopolitics trumps everything when it comes into the market. what we've been watching when it comes to crude oil is the fundamentals, have we seen that supp supply/demand rebalance. the second is the potential trade war with china that moves stocks around if stocks go down, people worry about demand for crude oil you have two factors now overseas that are driving this price to that three-year high. the first is for the potential for the u.s. to launch a
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military attack on syria in response to that chemical weapons attack over the weekend. the second is blasts over saudi arabia and riyadh as a result of the problems in yemen. people are not really watching what the dollar does, and g geopolitics can make these prices spike quickly a lot of traders are telling me they're watching this as it goes into the weekend, it could take the prices up higher especially as crude oil seems to have found a floor over $50 a barrel. >> let's bring in john kilduff before we get to you, we areso focused on the f.a.n.g. stocks here maybe we're not looking at all the other 3500 stocks.
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in the last 30 days, marathon up 17%. conoco phillips, 15% hess and oxy up 13 and 12% big oil is providing big returns. >> their valuations continue to lag the commodityprice no matter what they try to sell you in the earnings reports, they are wetted to the price of crude oil. >> when you look at declines in big tech, you have conoco phillips outperforming amazon by 20% in 30 days >> that's right. again, the price of the commodity is still way ahead of those valuations they also use this down pesriod to throw the kitchen sink in terms of writing assets off. exxonmobil, last quarter, horrible report. i was surprised at how bad it was. now they're positioned to capitalize on this jump up >> relatively new ceo there. do you think it's the old throw
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everything out in my tenure, look like a hero later strategy? >> the classic oil -- >> politician move here. >> classic move in this sector >> you think these stocks are not necessarily reflecting the value of $70, $65 oil? >> they're trading as if oil is in the 40s >> do you justify -- there's a lot of debate in oil we focus on syria. i understand what the president said i'm not minimizing what the president said syria has no oil we think middle east -- no, they're not an oil and gas producing nation to me the action from just purely an oil perspective is more saudi/yemen >> no doubt about that i will say, too looking back over history, most of these attacks are usually pinprick type operations. even with iraq, saddam hussein had no friends in the region
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nobody would come to his defense. syria is a different animal. it's a client state of russia and iran these days. so that's what the fear is right now. doesit spill over. does it become the epicenter of a broader conflict not only do you have iran in there supporting syria, but you also have increasingly israel and saudi arabia eyeing a potential move or trying to contain iran in the region is this the break point? >> is it the break point >> i'm trying to be measured, not get sucked in to president trump's tweets it's a different style of governing. >> many of those are designed to rile up the media. >> yeah. >> you have to take it with a grain of salt. >> i think that's right. looking at this, syria is not an oil producing state. the russians and iranians have bugged out of the country. the russians have gotten their planes and warships out of there. iranians got their assets out of
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there. to the extent they don't come to the defense of syria, this is buy the bombing, sell the aftermath. >> fundamentally, relatively tight market global demand is doing well. >> it's tightening up. the saudis have really committed themselves to tightening the market, more than i've ever seen before the regime change there has made a difference. you heard them this week saying they want $80 a barrel because they can live large, thanksgiving with all the trimming at 80 bucks >> why wouldn't they want 80 i want a pony. because i want something doesn't mean i'll get it do they have the power when we are the swing producer now the united states is producing more oil than saudi arabia >> doing a heck of a job exporting to the world market. i think the coalition starts to unravel as this wti price gets even close to 70 like we're seeing right now
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i do think that's a problematic price target for them. i also think there may be signs of global economic slowdown out there. some real granular mick dat ecoa points are slowing any dent in demand will lower the prices >> rig counts went up another 11 in america u.s. production at 10.2 million barrels a day. 10.5 >> highest in 47 years >> maybe ever. >> i just see us producing more and more oil can the market absorb that prices lag production by a couple movps, months, do theyt >> yes somewhat >> they both can't keep going up, can they >> no. it's a commodity the smart thing the producers in the u.s. have done is locked in the price. the differential between speculative length in the market and the shorts on the commercial
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side, the ro dues producers is n all-time high. no matter where the price goes, the u.s. oil will not be curtailed. >> for the world producers, 98 million barrels, our demand is 97 million -- that last barrel has zero value john kilduff, good stuff last night on cnbc we went to boston, and john flannery going on the record with us last night at one of our net-net events he was sitting down with suzy wel welch. morgan brennan is here to wrap it up on how it went >> yeah. so ge's ceo john flannery reiterating his strategy to turn around the struggling industrial company. >> we have great franchises. we know we can run them better cash, capital. there's a nucleus of strength
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and improvement that we see in front of us. i also came in and said we're in -- it's too many things at once there's too many businesses. the world is too complicated to keep them all open throttle at the same time. management bandwidth let's narrow the scope that was the next step and the last thing, my core responsibility is to make sure those businesses flourish in the future for the flemployees, customers, investors. in that context i'm open in any way to make that happen. >> not offering more details about his long-term vision, but also not exactly ruling out the possibility of a broader breakup. ge also does a lot of business, manufacturing in china flannery sounding off on the trade tensions between the u.s. and china amid the proposed tit-for-tat tariffs.
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>> the problemibility thability go way south, my belief is over time people are rational about what is in their best interest when i look at that, i say this will sort out over time in a sensible way for both parties. will there be a lot of noise will there be drama along the way? probably >> so all of this as investors await restated earnings for 2016 and 2017 thanks to new revenue recognition rules that took effect this year earnings next friday the shareholder meeting on april 25th ge, given all the uncertainty around the company, the businesses are struggling now, the stock is down 25% this year. it's down 56% over the past 12 months >> second worst performing stock in the s&p 500 is baker hughes, which is now owned by ge
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ge not only the worst performing stock over the past year, also controls -- when flannery said there may be more drama to come in that sound bite, that is not what investors want to hear. there's been enough drama. >> i think there's been a lot of drama gore for ge, and it is ex on the global trade. >> 68% of their revenue is down to the oil and gas market. they got into the oil and gas market at exactly the wrong time >> in light of this, we have a number of events from the company over the next couple of weeks. investors are keen to hear what the next steps in flannery's plan are he's been at the helm of the company for eight months he has taken a lot of moves. cut the dividend cut the earnings guidance. what will be next? >> if you're wondering what net-net is, our series of dinners around the country with
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ceos, cfos, if you get invited to one, go they're cool ahead, larry fink at 6:30, at 7:00, the ceo of delta airlines coming up, baby now we have bad blood or badder blood. the yankees and red sox clearing the benches for a brawl and they were not the only team we'll show you men acting like boys, but first the national weather forecast >> good morning. we are summer-like in many spots today. 86 degrees in oklahoma city. 80 in dallas 80 in san antonio. 71 in chicago. beautiful day there. look to the west, a huge difference here in terms of temperatures rain and snow heading towards today. billings, 38 52 in salt lake city 50 in minneapolis. by tomorrow, that contrast between that cold air and the
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warm air to the south could spark some severe storms to the south. 77 in oklahoma city. 86 degrees in dallas we could see the potential for tornadoes there. some blizzard conditions potentially in the northern plains 41 in billings, 40 in atass.poli th w your business travelers forecast more "worldwide exchange" when we come back
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welcome back on this thursday stock futures indicating what could be a relatively calm day the dow indicating a jump of 20 points that seems so last year. what about in the treasury markets? the bond, kind of a similar story. everybody screaming about 3% yielding 2.78% time for the top trending stories. kate rogers is back with us. good morning a pair of bench-clearers in major league baseball last night. first at fenway, the biggest rivalry was reignited between the red sox and the yankees. joe kelly plunked tyler austin austin charged the mound, both benches cleared. austin and kelly were ejected. in denver, the rockies brawled with the padres after luis
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perdomo threw behind nolan arenado. both players were ejected from that game as well. to celebrate the 50th anniversary of the big mac, mcdonald's is partnering with g-shock for some new swag. there will be watches and hats to commemorate the burger. both items launch on the web on saturday but in limited quantities. space tourism may be a few years and a million dollars out of reach for most of us, but you can take a virtual tour of the moon a new nasa video compiles data allowing viewers to see the money in stunning 4k clarity from here on earth >> let's play a game quickly three questions. >> oh. >> you are ready >> no. >> your favorite baseball team >> yankees >> eh. what would you say if you saw a
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guy walking on the sidewalk in a big mac has the? >> i would say i cover mcdonald's for cnbc. >> nothing says style like a hamburger has the. >> that's right. >> would you go to the moon if possible >> not sure. >> would you go to the moon in a big mac has the? >> if i was going to a moon, definitely in a big mac has the. coming up, it's not all bad news from inside the beltway hear larry kudlow's bold call on the economy. and your morning rbi why today, april 12th, really an out of this world kind of day. this may be the most random but interesting thing you'll hear all day.
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state of the economy, he has a rosy outlook for the rest of the year >> we're going to be fine. the economy is going to be fine. we may have a soft first quarter, the rest of the year, you'll bet 3%, 4% growth business spending is strong. inflation are low. interest rates are low we're seeing a big build up in capex, investment spending is to important. even the cbo acknowledges we can get 3% growth in 2018. growth solves everything >> joining us is danielle dimartino booth. do you agree 3%, 4% growth later in the year? >> i don't know. those crashing capex expectations -- >> there were two answers, yes or no. i don't know is not an answer. >> i think we might have a second quarter spurt small business led us into this post-election jump in economic activity
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their capital expenditure expectations have crashed. so i'm worried that's where we've seen the big at the margin boost to economic activity >> i know we're a stock market network, but we have to remember that 95%s of the country works for companies that have fewer than 50 employees. small businesses, we hear you. we love you on cnbc. so why do you think they're cutting back on that growth and spending >> i he think the fingerprints in the inflation data were unmistakable the new york fed has a new inflation indicator, it hopped up to 3.14%. what is that new indicator >> the universal inflation gauge. >> my god, what does that mean >> for once the federal reserve is incorporating real estate and financial market asset prices into an inflation metric >> they're getting caught up to 20 years ago the rest of us know that real estate matters >> we didn't see the real estate crisis coming.
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why? they did not capture asset prices now they have one. >> is the inflation picture getting hotter because it's getting hotter or "b" because they changed the metrics >> no, even if you looked at the core cpi, it popped above 2% yesterday. and input prices are hurting companies now. it costs money to find skilled workers. input costs have gone through the roof ask any company trying to get transportation, it's extremely expensive to get trucking. input prices have spiked since hurricane harvey made landfall >> when we were at the port of charleston earlier this week, said 3700 trucks come through every year 100% turnover in drivers they keep going to different firms, because they get paid more because a truck driver can name his or her own price. >> but the average truck driver is over the age of 50.
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if you're looking for a new career and you hear these cars will be automated, what are their careers looking like nothing. transportation costs have gone through the roof that's important to most companies. >> what i don't understand, whatever you think about the manufacturing and trade story, you talk about input costs up, we're talking about added tariffs on imported items, most of that is an intermediary so that could add to it. it's not like prices are depressed. lumber and steel prices are high >> lumber crossed $500 those canadian tariffs are not good lumber costs being over $500, and we're coming into the major spring selling season. larry kudlow is wonderful. i want for him to be right i think after the supply chain disruption, inventory rebuild of
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q2 comes and goes, i worry about the second half of the year. >> i think you're hitting on a story that we're not doing enough on, and that's interest rates. interest rates are up. cost of building is up you can't find a construction worker so costs of houses will go up. inventories are low. we hear stories about people buying houses sight unseen eight times their mortgage have we been here before this is making me nervous. >> subprime mortgage has made a roaring comeback nobody wants to talk about it. affordability is not where it needs to be. you have to ask yourself what will these baby boomers do with their mcmansions when they need to down size and retire? >> turn them into a multi family house. >> you will have to plisplit th mcmansion in half. two baby mcmansions. the rise in mortgage rates is real the lowest affordability in
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nearly a decade is real. people are having a hard time affording homes. builders are having a hard time to build them. >> you can't find people lumber costs are up. construction workers can name their price like truckers can name their price >> everything come backs to the canadians. those canadians. >> i know you like the rbi stick around you'll like this one time for the rbi in 1981 the first space shuttle, "columbia" was launched. remember that day? in 1961, today, the first man in space. did you know on this day in 1954, what many consider to be the first real rock 'n roll song recorded, it was "rock around-the-clock" sung by the comets cosmonauts, space shuttles and comets all out of this world thanks for watching, i'm brian
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china says it is ready to strike back at the u.s. at any trade war escalation the new statement from beijing. general electric's ceo speaks out we'll show you his exclusive comments to cnbc on the growing threat of a trade war with china. i bet he loves talking about anything other than ge earnings season getting under way. blackrock set to report this hour we'll bring you an exclusive extended interview with chairman larry fink it's thursday, april 12, 2018. let the virtue signaling begin
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"squawk box" begins right now. ♪ live from new york where business never sleeps, this is "squawk box. good morning welcome to "squawk box" on cnbc. we're live at the nasdaq market site in times square i'm andrew ross sorkin along with joe kernen. kayla tausche is hanging out with us today. >> what a treat to be here >> zuck nation the last two days we will talk about mr. zuckerberg in a bit. u.s. equity futures, the dow looking like it would open up higher after a couple mornings where things were a roller coaster. dow up about 28 points nasdaq 12 points higher. s&p looking to open about 3 points higher.

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