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tv   Worldwide Exchange  CNBC  August 27, 2018 5:00am-6:00am EDT

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most significant art fraud in this century >> she cooks the books to rip off brands and feed her needs. this beauty is a beast all new "american greed" tonight 10:00 eastern cnbc jay leno's garage all new thursdays at 10:00 it's 5:00 a.m. at cnbc here is your top five at 5:00. elon musk abandoning his plan to take tesla public. which is helping global markets. stocks up around the world big gains in asia and futures, as well. some sad new details emerging about a deadly shooting at a video game tournament in florida. and remembering john mccain. plans are taking shape for services and events to honor the late senator it's monday, august 27th and "worldwide exchange" begins right now.
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good morning and welcome from wherever in the world that you may be watching, i'm brian sullivan thank you for starting your week with us, as well here's how your money and markets are setting up their day. it is looking like another record breaker here at home. remember, the dow is already on a new record high. we are up seven of the last nine weeks. you may have heard the president touting that stat over the weekend, by the way. stock futures are up again right now at this early houron a monday up 79 points on the dow and s&p and nasdaq rising, as well the one number, one big number to focus on right now has got to be china specifically the hong kong hang seng is up 2% and also technical changes that china's central bank made to the way as always more on the markets and your money in moments but right now to your top corporate
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story and more drama around tesla after that infamous tweet about taking the company private a few weeks ago. elon musk saying tesla will remain a publicly traded company. the question is what becomes of elon musk. jeff seinfeld of the yale school of management. how much faith do you believe tesla's board lost in their ceo, elon musk? >> they sure should have because investors have lost a good deal of trust credibility in what the ceo says now, this is a visionary genius, the creator of the company he's accomplished all kinds of things that nobody would have thought would have been humanly possible so, you have to admire him this is not like elizabeth holmes where there's a lot of questions as to whether or not the thing was a fraudulent scheme built by a sociopath. this is very real. however, they can't do without
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him, but doesn't have to be the ceo. he could step up into some chief technology officer, some visionary role, vice chairman and even a nonexecutive chairman or executive chairman. but, clearly, he's losing the credibility to lead with this volatility and this erratic behavior >> there are tesla cars on the road real operating company and the cars are spectacular in many different ways and perhaps as the lead cheerleader for tesla, a real company unless like the analogy you made, jeff what do you think becomes of mr. musk investigators probably sniffing around because of that tweet, as well he talked about how tired he is. is it time maybe for him to take a step back for a couple weeks and let the board figure out what to do next? >> well, this is the time of day when you're at your best, i know you're not tired whether or not he is he had the breakdowns where he
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was awashed with tears the guy is overstretched you know where the board meets it goes to the plant in fremont, california, and they go into a makeshift part of the place created as a boardroom where they met, again, just the end of last week with a sleeping bag on the floor which is where he's hanging out because he's not just working as chief operating officer and chief executive officer, but he's actually working as the production hand working 50 hours a week or something crazy he claims to be working. you wonder if that's just one of the three to four companies he's running, depending how you count solar city but he has spacex and this guy, he should be a full-time ceo and not stretched across three to four companies and so hands-on on all these other jobs. to say that one day we're going private and gives a dollar, $420 a share or whatever and now we're down to $320, 22 just
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because people have lost faith in him and then not be able to back it up say that we have all the financing is lined up and then it turns out it's not lined up yeah, the sec is not going to go away with their tail between their legs they real ease they'irze they'ro something here >> this is a car company that trades at multiples per cars sold at every other metric that are sky high compared to everybody else there has always been this talk of a musk premium that the company is higher merely because of his brilliance and visionary ability. however, do you think maybe at this point there is a musk put, if you will. is elon musk in some ways now hurting this company that he has given birth to >> i think that people, already there have been in the car business for a long time saying that he has been overrepresenting what they're
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going to do in terms of total autonomous driving and things like that. the things that have been exaggerated. even just going into the flip yet again on whether or not they're going public or, you know, staying private or going back to going private. he contradicts himself dramatically and putting out messages maybe start out our big pickup trucks soon and the pickup trucks they're talking about are enormous the huge, huge machines that would be able to hold the giant f-150 onboard and the bay in the back and he's coming up with more schemes, even as we talk. and he still has had this herringihair trigger sensitivity from analysts, journalists or, of course, that british navy s.e.a.l. diver that helped rescue the thai kids in the cave
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that he starts calling him all sorts of horrible names that just makes these things up because he gets criticized he has this volatility, the emotional exhaustion something's got to be done this is like a sail boat careening in a storm and the captain's running it by himself at full sail with no rudder. >> we know it's bright and early on this monday morning, we appreciate you joining us. it's a big story switching gears now to trade and one reason the markets are looking good on this monday, the united states and mexico reportedly getting close to a new nafta agreement. the mexican economic minister saying the two sides were likely hours away from reaching a deal. talks are set to resume this morning 9:00 eastern time. remember, canada, though, sitting out this latest round of negotiations and three country nafta discussions are expected
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to stretch in to next month. turning back to the markets and your money the nasdaq and s&p 500 closing on record highs on friday. this after fed chair saying the u.s. economy is strong and it can handle some tighter monetary policy let's bring in this and talk about everything else with gina sanchez a cnbc contributor and like elom musk, a californian who does not like to sleep gina sanchez, we appreciate you joining us yfrom los angeles are you shocked how strong this stock market has been seven to eight up weeks for the dow and more record highs? >> i am shocked to some degree, but, honestly, if you look at the earnings that tax stimulus has basically helped produce, it's not that surprising we are looking at earnings growth rates at 25% for the s&p 500 or almost there. that is a pretty big number. so, it's not that surprising but here's what shocked me is that people aren't looking ahead and saying, wait a minute,
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this can't last forever. >> well, how long do you think it will last then? i mean, forever is a long time but this has been a long bull market, as well, gina. >> well, yes this bull market has had phases and this latest phase really started at the election. once we came into the election, we knew what the results were. we generally speaking the markets were pricing in some kind of fiscal stimulus or tax cut and the fiscal stimulus i think is really going to be a challenge, especially given the news out of the regular news cycle happening out of the white house and i would say that the tax stimulus is what we got and we are looking at this probably slowing down within the next six to nine months which means within six months i think we start looking at europe as the better bet than the u.s. >> you know, a lot of fear about the new incoming mexican
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president and some, do you think we were overly concerned about him? a bit of a honeymoon it seems going on with mexico right now, which i don't think a lot of people expected. >> no. a lot of people didn't if you look at the emerging markets, with one exception, which is mexico. you're right, i think this is a honeymoon. we still don't really know what his policies are going to be and not every single one of them is going to layup is a good thing for mexico so, i would say this honeymoon period is not a bad time if you're in mexican equity to take some profits because i do actually think that emerging markets as a whole are really sort of staring at the abyss of a bare market led by china and it will be hard for him on his own to keep mexico afloat on just promises. >> yeah, we're going to have to wait and see, but right now so far so good if we get that sort of mini nafta deal of the day, maybe add another leg up and
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we're watching six to nine months out we love your insight, thanks, gina, see you soon in corporate news overseas china's biggest hailing ride is suspending its carpooling service after a passenger was killed over the weekend. joining us live now from china eunice. >> thanks, brian the incident has sparked outrage across the country the passenger in question was a 20-year-old woman who was raped and killed by her didi driver. the driver had no prior record and authentic documentation and passed initial testing and the problem is another passenger had filed a complaint against that same driver just before the incident reporting that that man had taken her to a remote location and followed her after she left the car so, the company has apologized for making what they called disappointing mistakes and it
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has removed two executives and suspended the hitchhiking service. the driver has both been arrested and confessed to the crime, but the authorities are promising to do much more to ease public concern, as well as anger. the police, as well as the transport ministry said it had a responsibility for what happened to the passenger the government says it's making reforms in the transport sector in order to improve its governess and also plans to use the country's, what is called a credit scoring system which is essentially a system that china is putting in place to score every single citizen in order to try to make sure that their behavior is in check brian? >> you're going to score 1.3, call it a billion. how would you score, how do you score a billion people >> well, that's -- maybe that's why it's fledgling it's right in the beginning
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stages what the government plans to do and has been planning to do for quite some time now is to give every single citizen a credit score. so, that credit score is based on how you behave in public and, you know, what you do, say, for example, if you have an incident at the train station and you get angry at the train station and it's recorded and the police find out that you've done that, that is going to affect your credit score the way it influences you as a citizen could mean that you are potentially banned from using the airport for a year so, it's those kind of things that the government is putting in place to make sure that its citizens behave. >> wow i mean, that's -- eunice, you pay back all your debt and you have a great income and 780 and went to a 760. thank you very much. wow. my score would be zero. back here in the united states, the country is remembering and honoring arizona senator john mccain. he died on saturday after, no
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doubt, a remarkable life kelly o'donnell reports on mccain's legacy. >> reporter: under the blistering phoenix sun, flags are lowered. respect shown in the small gestures of flowers and messages left outside senator john mccain's state office. >> i'm here to honor senator mccain. >> reporter: an honor guard outside the phoenix funeral home volunteers who plan to remain near the senator through services here. >> no matter what you thing of his politics or his person, he served our country and he served it well. >> reporter: from arizona to washington, d.c., planning is under way to begin wednesday with a public mourning at arizona state capital. >> john mccain is irreplaceable. this week will be about honoring his life and legacy and comforting the family. >> reporter: today congressional leaders announced that the
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six-term senator would become only the 30th american to lie in state in the u.s. rotunda. like former presidents and statesman. >> america is mourning and the world is mourning the loss of one of the great men. >> senator chuck schumer is urging lawmakers to rename a senate building in his honor >> the most majestic senate building and i think there would be widespread support. i can't believe that there wouldn't be for naming that building after senator mccain. a fitting tribute. >> ever the warrior, his commitment to troops around the world and veterans here at home inspire gratitude. >> no one had the backs of america's new greatest generation, those who fought the wars of the post-9/11 period more than he did >> loyalty was the backbone of his friendships. >> his legacy is one of civility and dignity and honor.
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>> it's tough. i'm going to miss him. >> reporter: defeats, however painful, did not diminish mccain's stature from barack obama, few of us have been tested the way john once was or required to show the kind of courage that he did, but all of us can aspire to the courage to put the greater good above our own. and george w. bush, some lives are so vivid, it's difficult to imagine them ended some voices are so vibrant, it is hard to think of them still >> a great man a great american john mccain, 81.
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welcome back good monday morning. another record highs for your investments. nasdaq and s&p higher, as well also today, warren buffett is looking at a rather interesting new investment berkshire looking to invest in india's paytm. valuing at about 10 billion. backed by softbank and ali be sure to tune in on thursday, becky will sit down with warren on thursday, 11:00 a.m. eastern time some school is already back in business, for millions of others on the east coast to the
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west, the most hated time of year for parent. back to school shopping season 15 year olds running around the mall screaming let's talk more about this and on retail stacy president of retail advisors who love getting up as you tweeted out so nicely yesterday. can't wait to get up >> this is my favorite show. 3:00 a.m. pillow marks >> that is going to be the new name of the show a lot of kids are back in school, but here's what you noted. even when school is back in, kids wait to see what else everyone else is wearing and there is a secondary back to school 15-year-old are like sheep, they all wear the same thing. who is winning >> you have the leaders that start early and go back and everyone else is looking at what they want to buy at the handful of cool kids. so, what's hot right now we talked about vans for footwear, nike is back
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vans are everywhere. >> and, of course, everything is retrow a urban outfitters things are really just getting going for back to school retail has been rocking this quarter and that shows in the numbers for the strong players who have been investing in their business for the players that have not been investing, continue like l brands and sears and jcpenney >> you made some waves with our viewers and some others a few months ago or weeks ago, my brain is a little tired. you compared sears to a daddy long legs and the plucking of the legs >> it's very cruel >> plucking the legs. >> i had a friend who used to do that >> you don't hang out with this person any more?
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>> i don't sears as a daddy long legs plucking its legs until it can't walk any more. that stock is down 96% since we had that conversation. >> i mean, technically, the equity cnbc we don't talk about companies under a market cap of $500 million sears used to be much bigger and it's a name everybody knows and, by the way, a lot of stock out there. it's the only reason we can even talk about this company whose market cap is, what, just over $120 million >> but they still have 800 stores out there and they just announced they're closing 5%, which i would argue, is a drop in the bucket. do we need any of those stores with what their business is doing? 12 to 14%. >> and a market cap of $120 million and 760 stores how is that possible >> they're loaded up with debt they're crumbling under their
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debt they have completely invested in store bases. you go into the store and it looks like 1980 in there and you go into a target or walmart tha have invested in their business and investors took the pain up front when the investment happen happened, but now the business is turning sears basically decided to not invest, pull back and just try to milk it and it just flopped, failed >> urban outfitters maybe the hottest retailer in america right now. >> at the moment, as long as the retro cycle keeps going. that's where the kids are shopping >> good to see you on set. >> good to see you. >> welcome back to the stage thank com thanks for coming in so early. uber hitting the streets on two wheels it sort of has everybody in the office this morning buzzing. we'll tell you what that is, stuf
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welcome back, i'm phillip. a florida community is reeling after he killed three people including himself one of the victims has been identified as 22-year-old elijah clayton, according to his madden profile. identified the suspected shooter as 24-year-old david of baltimore. though officials didn't discuss a possible motive, they did confirm he was in town for the
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madd madden comp itition. relentless lane is paralyzing parts of hawaii over the weekend, that storm was do downgraded from a hurricane. some islands were hit hard with up to four feet of rain. many highways remain closed. broadway is remembering its king of comedy this morning. neil simon is dead at the age of 91 he wrote more than 30 plays and movies, including the smash hit "the odd couple. he earned more oscar and tony nominations than any other writer brian, back to you. >> a lot of news over the weekend. thank you very much. on deck, the ceo elon musk of tesla rattling the business world, again what he is sinayg that has eyebrows up. worldwide exchange rolls on. re. and improves memory. - dad's got all the answers.
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better off public. that is now what elon musk is saying about tesla trade talks on deck. the u.s. and mexico reportedly just hours away from reporting their own trade deal taking it to two wheels. uber gearing up for a big shift. we'll explain as the second half of "worldwide exchange" gears up right now. welcome back and good morning. thank you for being with us here on cnbc.
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i'm brian sullivan a lot to get to this morning, but, first, a check on your top headlines. your executive recap, if you will >> here's leading cnbc this morning. u.s. and mexican trade negotiators closing in on a new nafta agreement. exports of cars from mexico to the u.s. the two sides along with canada are hoping to reach a deal and sign it before mexico's new president takes office in december chinese authorities say the country's largest ride hailing firm bears the responsibility for the murder of a passenger by a driver this weekend. it is the second such case in recent months. didi has suspended car pooling service. the company should face legal punishment if it fails to put customer safety first. uber ceo says it plans to shift focus from cars to electric bikes. those vehicles are better suited
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for inner city travel despite taking money away from uber drivers. >> would you ride that bike, kate >> i do like to ride bikes. >> that bike if you're on the radio, by the way, it is bright orange or pink and a small basket does it come with a small dog? get in a hot air balloon and go home thank you. also topping your headlines this morning, tesla and elon musk making a big about face phil lebeau, there is a lot of different angles to this story >> right playing out over the next several weeks or months. this was the announcement that came late friday night tesla will remain a publicly traded company elon musk gave four reasons in his opinion why it should remain
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publicly traded. first of all, the shareholders' preference, unclear how investors would take part in a private deal and he said, look, this would be too distracting. in a statement that was released, he said that although a majority of shareholders i spoke to said they would remain with tesla if we went private, the sentiment in a nutshell was, please, don't do this. which all raises the question, what next for tesla in addition to a number of analysts out with notes this morning say, look, focus on the company's fundamentals the ramp up of the model 3 production, the push to go profitable in the second half of this year. remember, there is still an sec investigation that continues over the go public tweet that was issued on august 7th that's why we're taking you back to august 7th and also elon musk leadership it remains in focus and remains a question on wall street, not necessarily that he remains ceo of the company nobody is doubting that. the question is, does he bring in a coo or other leaders to
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help him after he gave that "new york times" interview, brian look, i'm running around at all hours of the day trying to get this company to move to profitability, to expand global globally essentially he sounded like a guy who is being worn too thin does that change i wouldn't bet on it changing right away and i wouldn't be surprised if he doesn't bring in some assistance in some fashion. make no mistake. this is his company and he remains in charge. >> what i noticed over the weekend what did change was the way the message was delivered. we got a proper press release. we got some legalize, it wasn't a tweet, it wasn't some backhanded comment it was some lawyer getting in his ear saying you're going to say we're staying public and do it the grown up way >> maybe the board of directors. they met on thursday and issued the statement on friday. the decision was made on thursday and they put out the statement. i suspect, brian, the board of
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directors made it very clear to him, you're going to do it this way and this is how we're going to proceed >> on a separate note, i was reading a magazine over the weekend. i don't know if you had a chance to see the new jaguar and we talk about elom musk's behavior and how the electric car market may get turned on its heels soon a lot of new competition. >> i have seen the ipace and we have talked about this a number of competitors that are just on the cusp of coming to market yes, the ipace is starting to roll out into showrooms. but yor you're not going to see large numbers for some time. you have that and porsche coming out with its electric vehicle next year and audi coming out later this year and then going into next year so, you have a number of the luxury players, in particular, who will be rolling out electric vehicles that should give some competition to tesla but don't expect that to happen
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overnight. we're talking about over the next couple years. >> or maybe add an extra leg making it better for everybody phil lebeau. let's get a check of markets around the world it is looking like another record day for the markets and your money overnight in asia, big gains some technical changes to the way the chinese do their curren currency, but a lot of talk about trade deals, as well the hang seng up more than 2% and the shanghai and as well the european markets not quite to the extent but green on the screen, as well, italy italy's banking issues may become the new turkey or greece. something to put on your radar there. everything but italy doing well. let's bring in a guy who always does well. and you guys, like many firms, have your own proprietary index and one is buramter of financial
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conditions something you don't have to tell us how it is built up, but it's doing well what does this index tell us about the market >> it is telling you the overall market, as well as the global economy is moving in the right direction, albeit not as great of a pace as it was earlier last year, but, nonetheless, it's still above 50 that would tell me to actually be over weighting securities are at risk in a moderate fashion. so, we're not overly optimistic, overly bullish, but you still want to put on some risk within your portfolio now, with that said, we would actually be moving away from growth stocks, trim that back, go more towards value stocks >> i feel like football season is about to start, thankfully. i feel like the market is a football team and starts the year 9-0 or 10-0 and everybody goes on sports talk radio and says, they're clearly going to lose they have to lose, they're 10-0, they're not that good. everybody gets more negative the
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more they win. that's what feels what the stock market is right now. >> earnings were really quite vibrant this quarter up over 20%, revenues up over 10%. >> which leads people to say, there is no way that pace can continue. >> exactly that may moderate and then evaluations. look at market cap to gdp, we are getting closer to 2,000 levels and hence why people have become more pessimistic or actually moderating their message to investors >> when you say value. does that mean dump all the fang stocks and buy utilities >> you don't have to do that, but what you can do is take 10%, 15% off your winners and start moves towards companies like procter and gamble, walmart, companies that are more steady i have been a value investor all my life. i think that overall you can get a good return there with a lot
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less volatility. >> does steady eddy mean you're afraid or nervous? are they purely defensive or do they have some upside because everyone has been focused over here for so long >> you can buy, the steady eddy definition that i'm giving you, you can buy companies like 3m or cisco. the computer company or oracle or actually you could buy hershey's and good-quality companies that have three things to them. steadily growing, earnings also have to be very consistent and very low debt and a lot of cash on their balance sheet you buy those type of companies in a type of environment where there is a deceleration of growth and those companies will come out fine. >> did you feel more at ease after the jackson hole commentary on friday did you feel like -- i don't mean this insultingly, not a lot came out of that but i mean it in a good way that it didn't rattle any cages. >> their message is quite
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consistent no surprise there. continue to move higher and it's going to be conditional. if you start to see financial conditions tighten, they're going to pair back their balance sheet and stop doing that and they will perhaps not raise interest rates our expectation, they go one or two more times this year and they go one or two more times next year and they're going to sit back and wait. inflation is not a major pressure and the jobs market still looks like we're at full employment, but when you look at the percentage of people working in the u.s., it's a lot less than it was back in 2000. >> i will ask the question if our friend steve liesman is listening and watching, does the federal reserve matter right now? >> it absolutely does. it is the risk free rate as they raise rates other asset classes become competitive it is actually a very important aspect >> i love it, p&g, hershey's, cisco and oracle
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chad, appreciate it. have a good start to your week. still ahead here on "worldwide exchange," racing to the record books this ferrari bringing in huge bucks over the weekend maybe the most beautiful car ever made and we'll tell you what it sold for but, first, as we head out, a check on this morning's premarket dow winners and losers caterpillar, coca-cola and microsoft. visa, boeing and p&g it's early
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all right. good morning welcome back new record highs for your money and your market. how many times have you heard that this year up seven of eight weeks and futures up 80 points right now and everything is rocking. let's get a check about b bitcoin on the coin exchange awesome new documentary tonight. melissa lee's documentary "bit coin boom or bust" great hip-hop sound track and melissa lee is going to rock your world premieres at 6:00 p.m. eastern time if you have a passing interest in cryptoes, watch it, trust me, it's cool. time for the top trending stories. kate is back with us >> good morning, again major new research m may new
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research suggests such a regimen actually doesn't help. according to the study, the benefits didn't outweigh the risk to patients who have never suffered a heart attack or stroke it was the second straight crazy rich weekend for crazy rich asians, took the top spot at the weekend box office with $25 million, that's just 6% less than it took in in the opening weekend. brian, how much would you pay for your dream car >> this one you're going to talk about. yeah >> a 1962 ferrari, 250 gto shattered records this weekend selling for $38.4 million. only 36 cars of this type ever made and this particular ferrari won the 1962 italian gt championship with a top speed of, get this, 174 miles per hour >> okay. how beautiful is that car? honestly >> i'm not a car person, but when i saw this in the tease, this is a beautiful car.
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>> this is not about cars. this is about art. if anybody out there is listening or watching and wants to tweet me with a picture of a more beautiful car i mean, unbelievable >> have you seen, though, my crv? it is -- >> it is rocking you have everything. >> no, the car is the whip are you talking about the rims >> i don't know. >> oh, we could talk later >> your crv jacked up with a four-inch lift kit going to be spectacular. that will be 30 years. in the sports world, honolulu's little league team was unbeatable for the little league world series and not beatable again in the final. defeated south korea to win the little league world series third title for hawaii in 13 years. i watched a lot of these games because it is pure sports. congratulations to honolulu.
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i don't know if anybody scored on them the entire series. congrats. weighing the risks why your next guest is seeing a ton of underlying strength in the markets and "worldwide exchange" returns. can be relentless. tremfya® is for adults with moderate to severe plaque psoriasis. i'm ready. with tremfya®, you can get clearer. and stay clearer. in fact, most patients who saw 90% clearer skin at 28 weeks stayed clearer through 48 weeks. tremfya® works better than humira® at providing clearer skin, and more patients were
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and deliver your clubs on-time, guaranteed, for as low as $39.99. shipsticks.com saves you time and money. make it simple. make it ship sticks. good morning, chicago. good morning, everybody. the last week before labor day you know what i hate two things i hate. corn dog with no mustard just worthless and, two. the stock market went up but light volume if you have a 401(k) or pension do you care that there is no volume or do you care that the market went up >> 3% on the nasdaq and 2% on the s&p and more highs today i watched the entire little league game yesterday. i don't know whether you got to see that >> i did it's awesome these kids are real. they are crying if they lose >> you see that bunt you see that bunt that was
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inching towards and it was less than a foot off the plate and it was spinning and moved into fair territory and loaded the bases that pitcher, his brothers, his two older brothers are pitchers, too. he was amazing. >> i may be wrong, i don't think anybody scored on hawaii two or three games they played there was a shutout every time they were unstoppable. team of destiny. >> they said they're going to score some runs and they did not. but it was weird, brian, because if i was trying to watch a major league game where there was no scoring like that, i would have had to change. >> but you're a reds fan, you're used to that >> i am. but i was riveted by that other pitcher pitched out of some jams struck guys out. anyway, i don't like that car. you can have that car. i like my car and the way it looks better than that ar. $48 million.
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a cessna citation 10, i think you can buy two of them. >> the buyer of that ferrari probably has a couple. >> that's right. he has gotten more private sector, i don't know, maybe i misjudged him earlier. but he doesn't hate, necessarily, these trade wars. he thinks they're probably -- if there isn't a big shift like almost a reagan moment, that's one of the possibilities i think he gives that 15%, but he gives a higher likelihood to the status quo but better for us overall and only 25% chance of a big blow up or trade war so, we have him for two hours to talk i don't know if you've seen mohamed, but two hours i'd say that's maximum three questions we need to ask him >> that's maximum. >> just get him going and just let him go, which i have --
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>> his mustache is guest hosting the 8:00 hour. >> you like playing along. you're good for a monday you're all right >> then we'll talk about senator mccain and his death with evan bayh, which i didn't realize, some things about senator, governor bayh, but that's one you won't want to miss either. he's dealing with some of the same issues. scary stuff. >> we'll see u b big couple hours thank you. managing director remains bullish with all the political risks out there. why? >> well, okay. you look on wednesday night when the stock market broke 20 ticks after the news came out regarding cohen and manafort to me it seems to me if a market was plenty to break that was plenty of reason to break and that was underlying strength and we fast forward to friday and jay powell's comment of not
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seeing a risk of overheating or something to that tune, to me, that was a bit of a dog whistle to the tune saying i got your back the fed in the past has been concerned if prices break too hard two years ago this month was the case for tightening less compelling after he had broke seven or eight ticks i think the feds still got it back i think things are fine. >> fine or great the market says they're great. up seven of eight weeks. you have about ten dow stocks that are up double digits. that is better than fine >> two different ways to look at it look at the last seven or eight weeks and look at it from the whole year and say we're just up a couple ticks from where wae were in january. so, this is a bit of a corrective phase that we're seeing remember, corrections don't always have to be just in price. this has been six, seven months. to me, if we can stabilize abov the old highs, stabilize a little bit, i think we can begin
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our next bull run. that could be 5% to 10% over the next six months. >> another bull run? so you don't think this thing is anywhere near being over long term >> no. there are some things that could come in the path of it if we all of a sudden believe the fed is in too hard, that part is the biggest negative we have to deal with. if we can deal with that saying the economy is getting better at the same time rates are going up, we're fine with that if we think the feds can make a mistake, we're fine with that, too. if we think the november elections go poorly for the business climate and people who want to restrict business are winning elections over people who don't, that could be a big deal, too. but there is always going to be hurdles. i think that right now we -- >> okay, maybe, to use your track analogy. maybe two different races being run right now. i feel like you got the small and mid-cap stocks running the 400 and just running as fast as they can you have the multi-nationals,
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the dow. they're doing the hurdles. they have to slow down every couple paces to jump the hurdle, which is the dollar. the dollar has had this weird move lately. does the dollar tell us stay small in terms of market cap and forget about the biggest of the big companies? >> i think it says stay broad. i don't thing it should just be in the domestic companies, too but the dollar, as well. when the dollar broke relatively hard on friday, to me a crowded trade. if the dollar trades below 94.5, a significant pull back there in which case the multinationals would become good, again i think you stay broad right now. i don't think it's time to pick the domestic >> we had central time and we need a mountain time zone guest to complete it appreciate it. >> see you guys. >> this just shows the power of "worldwide exchange.
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we coant stop them. senator john mccain. now, you, of course, know the big parts of his life story. here is something that is hopefully random but inest thering abother trusting about the senator that you may not know he was born in part of america but a part of america that no longer exists. panama canal zone. it was dissolved in 1977 and it is now wholly owned by its sovereign country panama you know who else was born there, a man nade rod karroo rounded out his career as a california angel and the good senator, a real american icon, is no doubt rounding out his as an angel, as well a great american, an american icon, an american lion and did a lot to bridge our gaps, gaps that are so broad right now.
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for everybody right here at "worldwide exchange" rest in peace, senator "squawk box" is next why did i want a crest 3d white smile? dinner date...meeting his parents dinner date. so i used crest. crest 3d white removes... ...95% of surface stains in just 3 days... ...for a whiter smile... that will win them over. crest. healthy, beautiful smiles for life.
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this wi-fi is fast. i know! i know! i know! i know! when did brian move back in? brian's back? he doesn't get my room. he's only going to be here for like a week. like a month, tops. oh boy. wi-fi fast enough for the whole family is simple, easy, awesome. in many cultures, young men would stay with their families until their 40's.
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good morning elon musk flip-flops no, he's not manufacturing flip-flops now he's saying he's not going to take tesla private. we have the details between friday's news dump a truce in the trade war maybe as far as mexico goes. the economy administer there says his country and the u.s. could be hours away from a deal on nafta america is remembering senator john mccain. he died on saturday at the age of 81. we'll take a look at his life and legacy on this monday,
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august 27, 2018. "squawk box" begins right now. live from new york where business never sleeps, this is "squawk box. good morning, welcome to "squawk box" we're live in times square i'm melissa lee becky and andrew are off today taking a look at u.s. equity futures and how we're shaping up on this monday morning s&p looking at 8 1/2 and dow looking at 74 and the nasdaq looking at about 32 in premarket. the s&p 500 actually hit a record high. be watching that very closely. meanwhile overnight in asia markets soaring and reacting by china's central bank to keep the currency stable and green arrows across the board and shanghai composite up 1.9%. the move seen as a signal that they would not use in the trade war an

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