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tv   Worldwide Exchange  CNBC  November 14, 2019 5:00am-6:00am EST

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>> it is 5:00 here here is the top five at 5:00 another day, another record. can jay powell and trade talks keep the rally going speaking of trade, new hang ups keeping investors on edge. the unrest continues, now four straight days of escalating unrest in hong kong. city leaders consider unrest the unrest may be starting to hit the banking system new salvos between elizabeth
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warren and the 1%. taking on the billionaires with a new add. and icahn out with a big target. >> good morning, good afternoon good evening welcome from wherever in the world you may be watching. i'm brian sullivan 23 degrees in the new york area. a lot to get to this morning we begin with breaking news. the latest growth figures hitting the tape moments ago how did that work out, let's go to willem. we've got the eurozone q 3
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employment numbers that's the flash estimate. the all important q 3 gdp number 1.2% year on year. relatively low level growth across those countries that is for the period july and september. we've talked about the sluggish growth requiring governments to step up to the plate talking about whether they can take a coordinated approach. some saying there are huge disagreements about how that can be achieved. we've seen a need to get that growth higher than the 1.2 annualized growth. >> we talked about slowing down to 2% or lower thank you.
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you can see the european markets. they are downright now back here home and see how our money and global markets are setting up stock futures are down a touch seeing a decline of 18 points now on the dow the markets coming off their 10th record close of the year. the s&p 500 also off a record close. this is the 20th of the year the bond market yields have been moving lately and moving higher. seeing the yield at 8.15%. still well above where it was about a month ago. a very busy day in asia. in japan, the country slowing and expanding to just 0.2%
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demonstrations continued for the fourth straight day. not just a protest dominating the conversation in hong kong. we'll call this wbi. also keeping an eye on the high board. the key interbank. kind of the grease on the wheels they have been ticking up in the last couple of days and weeks. you can see that chart indicates that perhaps the protests are starting to affect the banking system this rate which has spiked up 2.75% is something important to watch in the days ahead.
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a little deep in the weeds there but listen, when the banking system starts to get impacted, you might see a new level. new hang ups keeping the markets on edge despite president trump saying they have promised to by 50 billion worth of goods and requesting from the white house to curb technology transports. remember, ip has been the single biggest sticking point in these negotiations let's try to wrap this all together bringing in chief strategist at principal global investors. we normally talk about trade and europe listen, these hong kong protests, one of the reasons we
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were there a couple of months ago is because hong kong is sort of the key hole in the financial markets between the east and the west it looks like there are starting to be more than protests on the weekend. is that something on your in vesting radar, seema >> it is after a number of the geopolitical risks that already exist. it is concerning to see a key financial sector begin to stabilize. from a macroeconomic level, there will be movement to other parts of the asia region we expect it to be a key beneficiary. >> how seer yourious do you thii might be this rate in hong kong, i get it really deep down there the base
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rate it has been a big spike. it has almost doubled. if we start to see the banking system get impacted, then what >> you raise a serious point it is reacting to a series of concerns if we continue to see that spike, sure, there will be repercussions. this will highlight the fact that it cannot afford another hickup it is not necessarily affecting the way we are advising investors to position themselves in a global sense. that will be a key point for investors. >> are you happy with those numbers that had just popped >> it is a funny story with
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germany. the negative side means the german government is less likely to introduce german stimulus that's one of the reasons the market has not reacted as positively as the number expected. >> does it change your thesis globally >> it doesn't. we believe there is a lot of pessimism baked in we believe they'll suffer next year we believe significant recovery. the chinese recovery would stabilize in the economy on top of the valuations for the sector is very, very cheap compared to another part of the world. we've been advising investors for the time to reallocate to
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europe this is a work in progress with u.s./china trade talks you do need to watch it closely. >> don't just take all of your money and put it in europe right now? >> when you have got risks, it is not the type to be putting all your eggs in one market. we will still say, look, given these risks, you need to be positioned in the caps that tend to insure late you from the trends around the globe. >> principal global investors. always key to have you on. thank you, seema >> thank you the crisis in hong kong continues to escalate. violent demonstrations in the fourth straight day. hong kong ceo carrie lam meeting with advisors to find new ways
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to stem that unrest. >> protesters gathered once again in central district for the fourth straight day. they blocked roads and rallied in yet another lunch time flash mob protest. anti-government demonstrators blocking several university campuses and major transport routes leading to more gridlock. no major clashes have been reported all schools across the territory will be shut through this sunday some university say no classes for the rest of the year hong kong police confirmed it helped some main land chinese studentsevacuate hong kong to border city by a ferry for those
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who wanted to leave due to intensified social unrest. >> when we come back here on "worldwide exchange," a fiery new campaign aid targeting billionaires it will premier here on cnbc plus cisco sinking despite a first quarter earning. later, the bull case for walmart ahead of their earnings. here with what walmart is doing right. 5:11 dow futures just turned sivepoti but it is 23 degrees we are back after this
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>> senator elizabeth warren firing her next shot to billionaires >> so senator warren is launching a new attack it will premier today during squawk on the street and mad money. according to a campaign aid. the add takes aim at leon cooperman, lloyd blank bien and peter teal among others. take a look. >> it is time for a wealth tax in america i've heard there are some
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billionaires that don't support this plan. >> the vilification of billionaires is bull saying he is screwing around with the wrong guy other leaders jamie dimon have also criticized warren cooperman will have a chance to respond today on the half time report at noon the latest on tit for tat between billionaires and kennedy. >> cooperman discussing his love for the country. this is perhaps stoking an emotion of a different kind. >> still on deck, the wall
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street journal out with the 2019 airport rankings what cities were the top what were the bottom you may want to look anywhere but around this area 275 million are how many people shop in a walmart store on or in an ee con mers platform every week e ocd t to love the company an thstk. stick around high protein. low sugar. tastes great! high protein. low sugar. so good! high protein. low sugar. mmmm, birthday cake! pure protein. the best combination for every fitness routine.
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>> welcome back. cisco first quarter results did top estimates but cisco is forecasting revenue below forecast cisco down about 5%. don't miss cisco ceo on squawk on the street 9:00 a.m. eastern this morning bhp is promoting henry to be new ceo and will replace mackenzie who is retiring. american outdoor brands planning to split into two.
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will split its smith and wes on gun business to the outdoor accessories. american outdoor market cap below $500 million given that it is a global gun maker, it has been in the news that stock up about half a percent. straight ahead, republicans and democrats both claiming victory following the first public impeachment hearing in over 50 years. getting ready for round two. new figures around wework and what led to the cash crunch. these are big numbers and not in a way investors want to see. we are back right after this to keep me moving the way i was made to. it nourishes and strengthens my joints for the long term. osteo bi-flex - now in triple strength plus magnesium.
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>> welcome back. 5:23, there is a shot of the capital building the first public impeachment hearings wrapped up yesterday democrats and republicans both claiming victory getting ready for round two tomorrow more with jay gray >> lawmakers taking a break
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today. the historic investigation feeling more like a high stakes beltway boxing match >> round one of this heavy weight political fight >> i'll allow the question are you asking -- >> president trump is welcome to take a seat right there. >> no knockout punch democrats slowly, deliberately building their case. >> if this is not impeachable conduct, what is >> bill taylor the chief envoy in ukraine testifying the president threatened to withhold aid demanding the ukraine president open investigation into joe biden and revealing for the first time a member of his staff overheard a phone call between the president and the embassador to the european
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union. >> the member of my staff asked him what he thought of the ukraine. he said he cares more about the investigations of biden. >> republicans arguing most of the testimony was hearsay. >> that's the point, what you heard did not happen it didn't happen >> and there could be no quid pro quo because the aid was eventually delivered >> this is a shash and shouldn't be allowed >> i hear it is a joke i haven't watched for one minute >> he will have a second chance to tune in the public hearings continue tomorrow >> democrats will call the former embassador to ukraine tomorrow the public hearings will continue with at least three sessions next week so this is just the beginning. >> thank you very much impeachment is not the only news that matters more of the top stories with frances rivera in new york with
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those. >> good morning. millions of americans are hoping have relief from that arctic blast. the deep freeze has shattered records and conditions have been linked to at least eight deaths. more snow before we warm up. twice as many people are dying from drug resist dent illnesses. super bugs are responsible for more than 35,000 deaths. studies show someone is infected every 11 seconds and someone dies every 15 minutes. >> the puppy born with an extra tail they nicknamed him narwal.
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it has no bones. the vet says he's in otherwise good health. >> brian, you know unicorns are all the rage >> any puppy story is a feel good at 5:26 i do want to correct something they are calling it the narwal that's not a horn, that's a huge anyway, hopefully someone will adopt that puppy or maybe we'll have room. >> when we come back, why soft bank ceo is making his way to wework in francesco and peloton trying to put the breaks on the stock sell off what they are doing to keep investors interested stick around
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then gimme your foot. hands-free sliding doors, stow 'n go seats, man, y'all getting a hook up and y'all don't even work here. pacificaaaaa! >> back on the hot seat. elizabeth warren ramping up her battle with billionaires and she's turning to cnbc to make the case for taxing wealth walmart may head above amazon. and why you need the stock all that and more as "worldwide
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exchange" carries on now >> welcome back, thanks for being with us on cnbc. november 14, it is cold outside. warm in here we have a lot of news. let's see if the markets can remain high. futures not indicating any new records today. futures especially at this hour, 5:31 haven't been moving a lot yesterday, the dow and s&p close again at more new record highs the s&p will try for its 21st. want to focus now on asia. particularly on china and hong kong there are potentially interesting and important news there. the hang seng and hong kong, again with protests. now they are starting to be every single day
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local business has started to be impacted the hang seng starting to be impacted it has been down every day this month. wonky but important. this is the hong kong interbank offered rate this is the rate that banks charge each other. call this the grease on the wheels of the banking system they make the engine go. as the protests have ramped up, you know what else has ramped up, borrowing costs for the banks. now at 2.75% the interbank rate up one full percent in a couple of days. thats a big deal this market has been this high before back in july when the protest really began to heat up, it
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spiked but came back down. now we are seeing that spike once again watch this space, if banking costs begin to rise materially, it could spur the chinese government to take action in some form. let's get a look at other top stories we are following for you. carl icahn pushing for a union between xerox and hp saying in addition to his 10% stake in xerox, he also owns 4% stake on hp, which could up the pressure to make a deal. wework reports it lost more than $1 billion in the third quarter alone. expenses out paced revenue
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growth softbank leader will visit wework's headquarters today. peloton surge following a report the company is planning to launch new fitness gear. a new rowing machine and less expensive treadmill on the docket that is a stock down from its ipo. with unto watch. fed chairman powell will head back to the hill. he told congress while the economy is generally strong, we are living in a new normal of low rates and lower growth what does he mean by that? we have more on the big time day on capitol hill. steve. >> good morning. fed chairman jerome powell's testimony went so well no question the testimony will be in different on day two
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saying the policy is essentially on hold much the economic out look is favorable. fiscal policy is unsustainable powell also emphasized that that is not on a sustained course >> we'll be watching very carefully incoming data. if developments emerge that cause a material reassessment, we'll act appropriately. >> the fed funds future market embraced the out look. just a 4% chance of a rate cut in december. only in july, does the chance rise above 50% after three rate cuts and a decision to increase the balance sheet. one question, how low can the unemployment rate go >> i'm open to the idea that we
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don't know where maximum employee is. we have to have significant humility and let the data speak to us. the data is not sending any signal that the data market is so hot >> powell said low growth and low inflation are likely to be the new normal and likely the world of low rates as well >> is that not received that mr. powell was not more aggressive with the president and his give me the money comments. >> powell is not going to play politics in any way, shape or form senator ted cruz had a lot of questions about wealth taxes he would not enter there
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he did say the perceived end of fraking would hurt the economy he's done so meeting with congressional leaders more than his predecessors earlier this year, we found powell had met with leaders four times more than others before. >> the comments about fraking were interesting say what you want about the industry, at the same time as you and i have talked about, the oil and gas industry is so much larger than it was even 20 years ago. if you talk about ending it, not ending it or at least hitting it, you are talking about hurting one of the largest single industries this year that has been responsible for a lot
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of growth even in tough times. >> it has been a huge swing factor i don't know that lawmakers really understand how big or important the economy is getting back to powell, he's in a good place here. he keeps using the term, good place for the economy. he's not getting a lot of blow back he's got his committee with him. he's given people a lot to get here i don't know that if a fed chairman it gets better than this not given the fact that the president seems to criticize him ever day >> good times on the twitter circuit. thank you. presidential candidate elizabeth warren launching her attack on billionaires
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targeting several big names including cnbc regular leon cooperman. >> it is time for a wealth tax in america i've heard there are some billionaires that don't support this plan. >> it makes no sense to me it is bull >> joining me now, contributor on this fine network that ad will air in full in the 9:00 a.m. eastern time and on mad money. tonight, i'm sure you have had a chance to see it what do you think of it? >> i think it is a little strange. the last time i've seen anything like that was the end of the 2016 campaign where president trump also went after billionaires since elizabeth warren really started talking about that wealth tax as a way to pay for
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medicare showing not only are a lot of billionaires that are uncomfortable and a lot of people in the democratic party that don't think it is a smart way to get votes in the fall >> the american public, all those people watching, if they really care that much about billionaires i wonder if this is a bit of a narrow focus these folks didn't get this way because the state gave them the focus. jo joe rick ets started his business in nebraska with about $13,000 of borrowed money. is that the kind of story people find offensive
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many today are rich because of entrepreneurial efforts than inheriting it. >> there is a lot of debate about this wealth tax generally. one thing we are not talking about is whether or not this wealth tax is even constitutional under the fifth amendment. >> we have some issues here. >> is this actually legal under the constitution >> there is a reason why we are not doing this and others are proposing it because it sounds like a campaign promise that wouldn't actually pass legal muster other countries have tried it and found it very difficult to administer most countries like in europe that tried it and stopped doing it there are administrative problems it begins to look like something that sounds really great at a warren rally and makes her stand
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out but doesn't sound like a real solution. >> have you heard anything from the real candidates about helping the average american middle class family get wealthy. >> bringing up everybody else is a different thing. are we bringing up ideas around that >> i'm sure democrats are saying their health care plan is a lower middle class plan, people won't go bankrupt. kamala harris had a big tax cut for middle class people. what most people want, tax cuts are great but they want an economy that would be growing faster that would be a great way to raise wealth and little to make the economy growing faster >> i hear you. health care has ravaged tens of
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millions i also wonder. it is not a political comment logistically has anyone suggested what would happen to millions in private health insurance people in ohio that work in call centers, do they move to washington and buy your home and start to work for the center seriously? does the federal government hire another million people now out of work? i don't know ifs that been addressed. i'm not a political expert >> so listen, so we are going to go after fraking and lose jobs there. and they aren't going to go to health care. what are the sectors that are supposed to gain jobs under all of these plans i've heard a lot of job loss ideas. not as many job creation ideas >> we did a pretty good job at 5:40 in the morning.
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>> excellent job >> great job to you. >> applause to you, brian. >> see you soon. on deck. maybe some good news in-housing. ahead of one of america's fastest mortgage companies and what he's seen in-housing. what are the best airports in america? what are the worst we have the rankings ahead new york, oh, new york we are back after this reat! high protein. low sugar. so good! high protein. low sugar. mmmm, birthday cake! pure protein. the best combination for every fitness routine.
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the van just talked. sales guy, give 'em the employee price, then gimme your foot. hands-free sliding doors, stow 'n go seats, man, y'all getting a hook up and y'all don't even work here. pacificaaaaa! non-gmo, made with naturally sundown vitamins are all sourced colors and flavors and are gluten & dairy free. they're all clean. all the time. even if sometimes we're not. sundown vitamins. all clean. all the time. >> welcome back. let's talk about housing you may have heard something about real estate on this network. joined by ceo and president of united wholesale mortgage, one of the fastest wholesale mortgage holders they probably care about housing markets if they own, hope to own
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or move up how is the housing market doing right now? >> we are seeing the housing market doing really strong we don't see it slowing down significantly. we won't grow at maybe the pace we've seen in the last couple of years. pretty strong right now. especially first time home buyers it has been an active fall 2020 being a lot more like we just saw >> is that sustainable or an off shoot of this dumping down of rates we've seen in the last couple of months >> affordability is a great point now rates are lower where people can buy homes cheaper than just a year ago housing values are higher. because rates are lower. that is helping people to refinance and spur a lot more than was expected.
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>> how sensitive are your clients to interest rates. 10 basis points, does it really effect things that much. >> i don't think so, i think interest rates are just part of the game people have to have that feeling that housing is great. the economy is in a good position overall at the same time, people can buy a house cheaper than they can rent i don't think the 10 basis point move can move all that much. we are hoping this will stay in the same range >> any reason to worry are people looking to get overly aggressive 10 times income in certain markets. they are only lending to people who really qualify we only see that as a major issue. now is a great time to shop and make the process easy, fast and cheap. we don't see that as a real
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issue especially going into 2020 >> great stuff important market we'll get you on again soon. planes, trains and auto mobils raw heal rahel solomon is back with more. >> so the wall street journal put out the annual airport rankings not a single new york airport cracked the top ten. ranking by measures like on time arrivals, fair price and wi-fi speeds leading the list, sky harbor in phoenix. and in denver. fort lauder dale, detroit and orlando also round out the top five bottom of the list, jfk at 19.
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newark at 20, laguardia coming in last too. >> newark, i can attest to it is a lot easier to build a big, new, clean airport. >> denver. it is nice nice people. >> speaking of projects. what is the longest project you've ever worked on? >> me as a human as a hobby, i race cars. a constant battle of futility. >> since i was nine. >> nothing compared to this. rod stewart says he just finished building a railroad city he has been working on for
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23 years >> rod stewart >> he has released 13 studio albums and embarked on 19 tours. considering the model, it is really not that hard to believe. >> that's it that's a model if you are on the radio, folks google this when you get to your office i thought it was photographs of new york city. >> complete with detailed sky scrapers he said he built 90% model. when he was on tour, hotels would give him the extra room. he did 90% of it on his own. what he wasn't able to do was more of the election call spas aspect >> you are in my heart, you are in my soul, you are in my model
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train depot. on deck, a blast from the past motorola with a blast from the past and why our next esgut is bullish on walmart happy veterans day. happy veterans day. happy veterans day. happy veterans day. student veterans of america champions those who have served and also prepares them for their next chapter in life.
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please take a moment this this veterans day to remember service members, who put their education and careers on-hold to give back to all of us. we thank you. feliz día de servicio. happy veterans day. happy veterans day. please visit studentveterans.org
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>> time for your executive recap headlines in 60 seconds. the head of the southwest airlines pilot union criticizing boeing questioning whether the company is trying to speed up the time line for the troubled 737 max to return to service. despite boeings comments it may
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have to shut down production line because it is running out of room to store the aircraft. motorola has announced a new version of the flip phone but this will have a full touch screen display inside. it will flip closed but cost you around $1,500. >> walmart headlines dominating. roll out of inhome delivery. discontinuation of e cigarette sales. stock is up across the board dana telsy who is bullish on the stock. >> they are getting a lot right. value and convenience.
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it is driving traffic. they've got digital where they are experiencing growth of 30% i think it will be a winning quarter for walmart and a very good holiday season. >> the question is if we get good numbers from the holiday season, how do we not know that has already been priced in to that 11% >> value and convenience is winning. you are siege off the mall, discount being able to gain share. you have a different story at walmart than other retail. the fact that you know it is not priced in. value is around 486 to 496 they are able to leverage sg&a in the face of reducing the price. i think walmart has got a winning way in the top line, food and consumables that is not impacted by tariffs. >> is it walmart versus target
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like it used to be or can they both play in the same retail sand box and get along >> i think they can both play and get along. walmart's digital business is larger walmart's food and consumer area is larger than target. target does well too what they are doing with introducing new and exclusive brands is exciting whether off price or discount, that's what is winning that's what we are seeing consumers gravitate towards. >> is there any other consumer there doing well maybe off the normal radar who else is doing well >> some other names doing well some of the dollar stores also doing nicely the off prices like tjx, ross stores and burlington and brans that are winning also.
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ralph lauren, vf corp has great success. retail is reinventing themselves you are seeing companies respond because they are innovating, they have speed and they are using data to inform them on how to grow. >> those numbers out in about one hour's time. dana, always great to see you. >> thank you you too. >> time for your morning rbi, random but interesting thing the death of coal has been greatly exaggerated. new figures out overnight that suggests the global coal usage has actually gone up year over year according to the agency. here is how the world gets its power. you've got natural gas and oil nuclear about 10% of the world's
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power. look at that, coal 38% of the world power source china and india, the big reason, coal is the majority of their power needs. talk about the death of coal, don't tell china or india. that's it for "worldwide exchange." i'm off tomorrow, "squawk box" begins right now good morning, futures had been down overnight. a warning from fed chair jay powell about slower growth senator elizabeth warren ramping up her battle with billi billianon airs turning to cnbc to make her case to tax the wealthy. walmart gets you ready for the report it is thursday, november 14, 2019 "squawk box" begins right now.
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good morning, everybody. welcome to "squawk box" on sn. we are live from the nasdaq marketsite on times square yesterday, the dow and s&p closed higher. nasdaq was off by a few points the dow helped by disney disney has had 10 million subscribers already signed up. that stock up by about 7% yesterday. now going to see that the futures are under a little pressure dow jones down by about 17%s s&p off by one nasdaq down by 11. a lot to talk about including the trade war. treasuries thi

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