tv Worldwide Exchange CNBC March 18, 2021 5:00am-6:00am EDT
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5:00 a.m. at cnbc global headquarters here are your top five at 5:00 holding the line the fiscal policy with the stronger economy and higher inflation ahead. then stocks. seeing a feder rally on the mov and troubles for motors are continuing to grow as the s.e.c. moves in with one high profile short seller and at&t announcing it is pulling the plug on keeping hbo
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maximum users from caps on data and deadline delay if you haven't filed your taxes already, don't fret. the deadline the government is giving you it is thursday, march 18th, 2021 you are watching "worldwide exchange" here on cnbc ♪ ♪ good morning i'm frank holland in for brian sullivan here is how your money and the global markets are setting up thursday stock futures are mixed. you look here at the dow poised to pop slieghtly at the open nasdaq looks like at this point it will open up more than a percent down all after fed is main taining policies as the u.s. recovers from the coronavirus pandemic.
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back to the dow. the dow closed above 33,000. that is the quickest 1,000 point milestone on record. look at the bond market. post the fed meeting the yield on the 10-year right now is 1.728 yesterday, it opened at 1.66 let's go worldwide stocks in asia ending higher on the heels of the fed decision. the nikkei and hang seng climbing 1%. turning attention to the trade in europe. mixed open over there. we see the dax will gain more than .50%. the early strtrade there as wel. bank of england will announce at the top of the hour. and a request for information from the s.e.c. for
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misleading investors the industry is seeking details by short selling hinderberg took a position in lo lordstown and using fake orders and claiming the truck is three or four years away from production the ceo says the company is cooperating with the s.e.c. and the company formed a special committee to review the matters. and the boeing 787 will look at four of the planes rather than delegating that work to the company. boeing disclosed issues with the seams on the aircraft back in september. the scrutiny of the dreamliner comes after the two-year flight ban on the boeing 737 max. and apple could unleash the ipads next month
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the report says the new ipads are part of the high end line and could feature improved cameras and faster processor and faster display with improved brightness and contrast. now to the nation's capitol where congress is set to take up legislation addressing a key priority for the biden administration immigration. the moves comes as the u.s. faces the biggest surge in decades. tracie potts has the latest from washington good morning, tracie >> reporter: frank, good morning. separate from what is happening at the border and we will talk about that, but here in washington, lawmakers are trying to figure out what to do with undocumented and dreamers in the country. the house is scheduled to vote for today. two bills are up for a vote in the house of representatives
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today. legal status for farm workers and citizenship for dreamers as the biden administration st scrambles to house minors at the bord border the homeland secretary says it is not a crisis. >> a crisis is when a nation is willing to rip a 9-year-old child out of the hands of his parents. >> reporter: the government accountability office complaining about president biden freezing border security funding. >> we don't believe they are following the law. this is money appropriated for border security and including the border wall. >> reporter: also a house hearing on hate against asian-americans after eight people, including six asian women, were shot at atlanta area spas. >> bigotry in the land >> reporter: as authorities investigate if this is a hate crime, the first southeast asian
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vice president speaks out. >> we want to speak out and acknowledge none of us should face hate. >> we have recently seen reductions in cases and deaths we must remain cautious. >> reporter: the cdc will issue new guidance on whether students in the classroom should be three or six feet apart. we're also expecting to find out in the fall if high school students can be vaccinated health experts are saying their vaccine should be ready in the fall one for younger students should be ready next year the president should talk about that later today fr frank. >> tracie, a lot of people believe the key to managing the pandemic and crisis is getting the hhs secretary confirmed. any sense we could see that happening? >> reporter: it could happen
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today. we're expecting that senate confirmation vote today for becerra. the former attorney general of california nominated as hhs. this is the key part of the biden administration of dealing with covid it requires a simple majority, frank, but this is expected to be a tight vote. he expected to be confirmed, but a tight vote. >> we will watch that. tracie potts in d.c., thank you. turning attention back to the markets. watching stock futures one day after jay powell said the central bank will maintain the policy of an accommodation until the job's done >> i would be concerned by disorderly conditions and markets or by a persistent tightening which threat ens our goals. we think the policy remains appropriate. our guidance on the federal funds rate and asset purchase is
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strong support for the economy we're committed to maintaining that stance until the job is well and truly done. >> and joining me now is grace capital founder kate faddis. kate, i want to ask about the funds futures. pricing at a 90% rate hike by 2023 that is an earlier deadline from december of 2022 is that good news for stocks >> the rate hike is probably not good newsews for stocks i think what the fed said is making investors cheer what i heard is they will continue with the asset purchases. remember, they will be buying $40 billion of mortgage backed securities a month $80 billion of treasuries. they are back stocking treasuries and corporate bonds.
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>> cate, good morning to you, too. that press conference got me fired up on a serious note. chairman powell is not worried about rising rates not concerned about inflation he called transitory. he is concerned about the economy left out of the recovery he mentioned people of color and hospitality sector how is the fed addressing that >> i think those factors are going to keep the rates unchanged. i think until he sees a lift he specifically mentioned minorities, blacks, hispanics, service sector, restaurants. he specifically said those people, those factors have not taken part of the recovery i think until we see a lift there, which he called slack, just general slack he really focused on long-term unemployment rates he would like to see -- he
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stated full employment, sustained inflation above 2% i think i don't see rates going up anytime soon. >> interesting i also want to talk about powell saying there is an intent to buy $80 billion in treasuries and mortgage backed securities a month. how will the market react to that >> i think the markets will cheer. i think the party in equities continues. i think and i understand there is a sector rotation you see that this morning with nasdaq down and s&p up however, i think we're still in a growth extrajectory in a sens. the move from growth into value is transitory. i think you don't overstay your welcome at the party you made a lot of money in banks and energy and industrial and material stocks. i think those are trade. i'm not giving up on the nasdaq
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just yet >> we know that stimulus checks just went out. $1.9 trillion flowing into the economy. how do you see that impacting the trend of retail investors? is that moving the market? is that continuing >> i see that continuing and with the nasdaq and the 10-year treasury continuing to go up with the yield curve to continue to steep evn, you are seeing the retail washing out. the retail trend will continue the retail investors are too small to move the market however, i believe they are triggering the algorithms which are moving the market and causing a lot of problems for institutional investors. institutional investors are unhappy with the revolution, but they are here to stay. one of the big telling moments for me is i can't tell you the
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number of my friends who called me and told me their kid is an inve inve investment genius. he keeps giving me the hot stocst stock ideas and the next day they double. >> i think it has been yoused libe liberally. cate, thank you. when we come back on "worldwide exchange. the biden administration is seeking the first meeting with china. and what is fuelling the big gains in the shares of williams & sonoma. and we talk to one business owner for surviving the strategy one year in the pandemic a busy morning aadhe when "worldwide exchange" returns modern or reliable. we want both -
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million. shares are up more than 5% this morning. pagerduty is lower this morning. revenue rising 29% ahead of the company's outlook top line guidance are ahead of previous forecasts the company is projecting wider losses than wall street expected shares are down more than 4% still on deck, amc theaters looking to wrap up the covid hiatus and opening the doors and firing up the project ors. >> announcer: today's big number $1.1 trillion. that's how much the covid-19 induced travel collapsed reduced economic output in the u.s. last year according to the u.s. travel association. spending on travel dropped 42% in 2020.
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which complicates my taxes. wish i could hand 'em off to an expert. i'll file those taxes for you. hand 'em off. thank you! let an expert file for you. intuit turbotax live welcome back to worldwide is exchange. 19 past the hour a live look at times square where there is an amc theater. speaking of amc. the company is reopening all theaters in the coming weeks 98% of the u.s. theaters will be operating by tomorrow with 99%
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back online next week. the last remaining theaters are mostly in southern california. this is a milestone for the movie chain. shares of amc are higher on that news. turning attention to bars and restaurants. new york faces covid restrictions for one year. the day before st. patrick's day a year ago, governor cuomo announced bars and restaurants would have to shutdown that left many scrambling. just one year later, outdoor dining and the takeout and delivery now with a way to survive. we are joined by two pubs in long island. james joyce and irish times. good morning >> good morning, frank thank you for having me. >> i would say thanks for being here after a really long night i want to ask what was st. pat patrick's day this year?
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what were sales like >> frank, it was different this year we saw more food sales than alcohol this year. yes, typically, st. patrick's day is associated with a drinking ho day. with the to-go model pubs adapted over the year with the restrictions and having 50% capacity, it was different toward the end of the night, the younger crowd saw more drinking, but this year was more food oriented it is great to hear we have 75% occupancy coming on friday >> it is a big relief for you. i'm sure you wish it had been two days sooner for st. patrick's day. >> absolutely. >> how have you adapted to the changes? you mentioned takeout for food and alcohol. does it allow you to generate the same revenue >> it is nothing close to
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inhouse. we are a service based industry. especially people want to get together yes, we adapted with more to-go food and outside dining. we adapted to less staff your owners and your long-term service staff members are working more we would love to get more people working. it is a condensed work force doing more work. you have to get back to full capacity to get back to normal i hope that we're heading in that direction soon with more people getting vaccinated and the restrictions lifted. >> you know, speaking of the vaccine rollout, it is going well in the u.s. we are seeing a lot of progress. how much is your ability to keep both of your bars open tied to the vaccine rollout successful by june? >> well, we just have to follow
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the rules. you know the social distancing and wearing masks. emp employees and customers doing the same thing you are hear more and more about the vaccine rollout and our industry is one of the industries that is prioritized that is fantastic for us >> amazing obviously this st. patrick's day is different from last year. back in 2019, what do you see going forward for bars and restaurants as the vaccine rollout continues and for your particular business? >> i definitely -- you hit the nail on the head when you said different from last year what do we do with the food and beer this year, we were prepared for it with the rollout of the vaccine, people will start feeling more comfortable. they want to get back out. i think there will be better times ahead. we all banded together with the restaurant association
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we helped each other out we served frontline workers at local hospitals here inn b innguenuty of people is fabulous people will get vaccinated it is going to get better. >> lorcan, wishing you the best. i know a lot of people head that way to go to the beach in summertime i hope they stop by and grab a pint good luck with everything. thank you for being here. >> absolutely fantastic to me. thank you, frank. let's check on the other headlines. we have philip mena in new york. >> the fear in the asian-american community after a gunmen left eight people dead. the suspect is 21-year-old robert aaron long which was caught later that night and two hours south where he first o
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opened fire. when the authorities released the photo, the relatives recognized him and called police long has been charged with eight counts of murder officials are not calling this a hate crime and not ruling it out. saying it is early in the investigation. a new look at the devastation of storms in the south. several homes destroyed in billingsly, alabama. winds strong enough to flip cars and tear down walls. families searching for belongings in the night and there will be more damage to assess when the sun comes up. finally, billions of tiny creatures are headed aboveground for a visit. we haven't seen them in almost 20 years cicadas will appear in late april or may the insects come from underground every 17 years to become adults and mate and repeat the cycle the last cicada boom was 2004
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when facebook was new. they will be emerging to a different world. frank, back to you >> 17 years? how does that work every 17 years that seems strange >> that's how they figured it out in their world they will be loud. they are harmless. there will be a lot. head's up. >> every 17 years. i can't wait thanks for being here. still ahead. the federal reserve staying put on the policy as it talks of improving economy and inflation. we have sarah house laying out the path forward for the central bank. subscribe to our podcast check us out on apple or spotify or other apps. the cnbc inclusion forum is set to take place today with strategies and initiatives to create equity for all. join tiaa's roger ferguson and mellody hobson and many more
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check out the lineup and register at cnbcevents.com/inclusion we'll be right back. dana-farber cancer institute discovered the pd-l1 pathway. pd-l1. they changed how the world fights cancer. blocking the pd-l1 protein, lets the immune system attack, attack, attack cancer. pd-l1 transformed, revolutionized, immunotherapy. pd-l1 saved my life. saved my life. saved my life. what we do here at dana-faber, changes lives everywhere. everywhere. everywhere. everywhere. everywhere.
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congress we will tell you why it is thursday, march 18th, 2021 it is "worldwide exchange" here on cnbc. ♪ welcome back i'm frank holland in for brian sullivan here is how money and investment looks right now halfway through the 5:00 a.m. hour stocks mixed a mixed start to the day dow in the green nasdaq, important to note, it could open up as much as .50% lower. after the federal reserve maintained the seasy policy as the u.s. recovers from the coronavirus pandemic let's look at the bond market. 10-year at 1.729%. tech stocks are coming under pressure among the biggest nasdaq pre-market losers is docusign
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and tesla and baidu. and now the dow closed above 33,000 that is the quickest 1,000 point milestone on record. also look at the price of bitcoin amid the fed reaffirming low rates. the cryptocurrency up slightly this morning turning attention to corporate news this morning. google announcing plans to invest $7 billion in offices and data centers across the country with $1 billion focused in california the tech giant expecting to create 10,000 full-time jobs in the u.s. this year. at&t will start counting hbo max streaming starting on march 25th it had been expecting it from the service. this came after the california net neutrality law and adds impact users outside that state because the internet does not
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recognize state borders. and jeff bezos is thanking members of congress for introducing the american dream and promise act. the ceo taking to instagram calling on the path to citizenship for millions of immigrants known as dreamers. turning attention back to the policy decisions from the fed. jay powell saying the central bank will wait to see real changes in the economy before making any major moves >> fundamental change in the framework is that we are not going to act preemptively on the forecast for the most part we will wait to see actual data. it will take people time to adjust to that and to adjust to that new practice. the only way we can build the credibility of that is by doing it >> let's bring in sarah house.
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>> good morning. >> jay powell is not worried about forecast that was exciting yesterday. what was your take on the revisions of inflation and especially that gdp forecast >> right we he really didn't see changes the statement. small tweaks and upgrading activity nothing in terms of where the fed is thinking the outlook evolving we look at the projections and that is where we saw the action. you saw significant upgrades to gdp growth this year you saw unemployment getting back to the pre-pandemic low you saw inflation move up where they are looking for inflation to get 2.2% by the end of the year and stay at 2% or little above in the out-years
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they expect we are looking to be on track of meeting goals of inflation exceeding 2% for some time not breaking away which kept the overall median plot in 2023 on hold >> you said most of the fed officials see it on track for 2023 some officials pointed to higher rates. how do you think jay powell respond to that? we see the nasdaq lower this morning in response to that. >> i think looking at the overall outlook for rates and what that plot showed is it made a nod to the fact we are looking at a stronger growth environment. we are getting closer on the fed inflation goal we are still not there yet it is the clip indicated, the
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fed needs to see the progress. we area way away from the poin we think we will get rate hikes. they think the fed is on hold through 2022 through the forecast whohorizon. as the outlook has improved, fed officials feel the same and again, you know, 11 of the 18 officials are still looking like they think rates will be on hold through 2023 >> so, we're seeing the recovery begin. things are picking up. how does the rest of 2021 testing the fed's new framework? >> i think you will really see the test when it comes to inflation. we have a lot of price pressure building right now most of that is concentrated in the good sector right now given the bottleneck with the supply chain and strong demand in goods spending and transportation issues related to that creating that supply chain bottleneck we think service inflation will heat up this year as well as the economy fully reopens and as you
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do have the pent-up demand and consumers are flush with cash. you will see it on the inflation front. the test will be when wite look ahead to 2022 and 2023 is this a temporary pop or is it going to be something more persist sthat pulls expectation higher and the fed has to address? the fed right now is looking at transient. the burst temporarily reopening. if it trends higher and in addition of inflation above 2%, then the fed will have to address that sooner than they laid out there is still a lot of uncertainty and a lot can change >> i think you are putting it lightly. uncertainty. sarah house, for wells fargo, thank you. we appreciate you being here. turning attention to the
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u.s. and china set to hold the first major meeting with the biden administration later today in alaska. ahead of the sitdown, both sides are downplaying what will be accomplished eunice yoon is live in beijing hey, eunice. >> reporter: frank, the chinese delegation arrived in anchorage. the u.s. ambassador has been downplaying the expectations saying one dialogue is not janice husolv the issues between the two the foreign minuistry says the u.s. will meet china halfway that means that the u.s. understands that there will be no compromise on what china sees as some of the hot button red-line issues. internal affairs, the foreign minister said today. hong kong for example. security or the development goals for china.
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where they can compromise or cooperate with the u.s. is climate change and world economic recovery and the fight against covid-19 what china is hoping to see at the meeting as well as beyond to try to work together with the united states is for the u.s. to lift sanctions on chinese firms as well as scholars and abandon one of the top diplomats in anchorage described as irrational suppression of chinese tech and u.s. to remove quote unreasonable tariffs frank, china is pushing hard to be able to develop its own technology that has been in the five-year plan very important for the government also, one thing that came out as well was that the chinese foreign ministry said the u.s. and china shouldn't expect for
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biden and xi to have a meeting themselves or that is not what the chinese are hoping for >> it looks like the same old tension. is there any one point that these two are discussing that could reduce the tensions significantly? >> reporter: well, there has been some discussion that maybe on a lower level some of the low hanging fruit, for example, perhaps visa issues can be worked out to try to move things forward. at the same time, it is looking like it will be really hard because you are seeing a clash of civilizations where china does want very much to be able to build up its technology and it wants time. one of the other issues that we already have seen is china has described this as a strategic dialogue they want this to be the first of many dialogues. the u.s. says this is a one-off.
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there has been a concern among china watchers that china wants to be able to talk and continue to talk and continue to talk as a delaying tactic as opposed to ree really working together to push through the hard issues that the u.s. and other countries and other trading partners wants to do >> the saga continues. eunice yoon, we appreciate it. coming up here on "worldwide exchange." the astrazeneca pause is preventing to developing nations on the global push to inoculate nations. good news if you haven't filed your taxes yet the april 15th deadline is pushed to may 17th that extension only applies to your federal taxes, not your state returns. robinhood is bolstering the executive team hiring the google chief products
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exchange." a live look at the white house big day at d.c. today. immigration discussed on capitol hill and the biden administration meeting with the delegation with china in alaska. and the astrazeneca vaccine rollout in europe. the contract with astrazeneca to bring the vaccine to the developing nations with a dozen european nations pausing the rollout of the vaccine, damage may have been done to the reputation of astrazeneca jab around the world. joining me now is the founder of prada health in bangladesh thank you for being here >> thank you for having me good morning >> big day with the regulators releasing the fienndings what does it mean for the
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rollout of the vaccines in developing nations >> it is important to know the w.h.o. supports the distribution of the vaccine so far, there has been no scientific evidence of the link with the 37 people who suffered blood clots after the vaccine out of the 17 million who received the vaccine if there is a finding, it will have an impact on the achievement of herd immunity where 80% of the world lives there will be two impacts i can see directly one is obviously in supply of the vaccine and two is in vaccine hesitancy which has taken effect this we'ek on supply of the vaccine, it effects the supply and distribution across europe and two have distributed the
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procurement of hundreds of millions of doses across the world. the commitment that covax has made to see 2 billion people vaccinated by the end of 2021 which would protect elderly and at-risk populations would not be able to be met because astrazeneca is a big component of that plan on the hesitancy by the european countries already has exacerbated that across the emerging markets if there is no link found, to be ho honest, the damage has been done >> this is the program to get the vaccine to developing nations, covax and a eye popping stat for you 3 of 4 wealthy nations begun vaccinations and less than 3% have started their vaccination
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programs is there an economic impact or public health impact with the disparity of the nations >> both at growth and public health impact. this issue of inequality in the distribution which you highlighted is estimated to cost the global economy $9 trillion half of the that economic impact is $4.5 trillion is experienced in wealthier countries there is a direct cost if we don't figure out the issue of vaccine inequity dozens of low income countries are still waiting for the first vaccine. 20% of the advanced economies have been vaccinated within countries, we're seeing a lot of the distribution happening. coverage in the uk and u.s. with
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socioeconomic and racial disparities. my company in bangladesh, twice as many men have been vaccinated as women we have to keep an eye on the issue of ininequity. >> we are one running out of time has there been a difference in bang bangladesh >> there is an impact on the economies across south asia. bangladesh's economy is resilient. growing at 4% against the back drop of the global recession still half of what the growth rate was in 2019 it is still impressive this is for various reasons. of we have seen hospitalization and death rates for covid lower across south asia.
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scientists are studying the reasons why. i'll reference the study in urban slums in mumbai and tahaka in south asia where 60% of slum dwellers are testing positive for antibodies, but no hospitalizations from the communities. there are potential number of reasons. the youth of the population. it could be immunity to h1n1 >> interesting >> a lot we are learning. >> thank you very much thanks for being here. on deck, reading between the lines. what investors should make of chairman jay powell's latest comments. and march is women's history month. here is boston private chief investor on breaking through barriers >> we need to see more women in the seats that are meaningful in the corporate world.
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cfos ctos ceos we need to no longer accept as we break through the particular barrier that we should be happy to be there. just happy to have a seat at the table. we need to keep our foot on the gas so that female leaders that come behind us can start from day one in making an impact. these days, we want sophisticated but simple. cutting edge made user friendly. in other words, we want a hybrid. and so do retailers. which is why they're going hybrid, with ibm. a hybrid cloud approach with watson ai helps manage supply chains while predicting demands with ease. from retail to healthcare, businesses are going with a smarter hybrid cloud, using the tools, platform and expertise of ibm.
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dana-farber cancer institute discovered the pd-l1 pathway. pd-l1. they changed how the world fights cancer. blocking the pd-l1 protein, lets the immune system attack, attack, attack cancer. pd-l1 transformed, revolutionized, immunotherapy. pd-l1 saved my life. saved my life. saved my life. what we do here at dana-faber, changes lives everywhere. everywhere. everywhere. everywhere. everywhere.
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welcome back to "worldwide exchange" on wednesday morning here is what to watch on the day ahead. weekly jobless claims will be released at 8:30 a.m. eastern. down 12,000 from the previous period later on today, two companies set to post quarterly results. fedex and nike after the close looking for earnings of $3.35 per share. that would be up 137% from the
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same quarter a year ago. for nike, investors will hear about the recovery from the pandemic with stores in it europe dealing with restrictions ekorm c ecommerce is an area of focus. back to the markets. the fed does not expect to hike rates until 2023 joining me now is brian levitt thank you for being here >> good morning, frank >> chairman powell's conference. were there any surprise for you? what is your take on his comments of transitory inflation? >> no surprises on my end. the 10-year rate today and the bond market expecting less dovish and rates moved as a result of the dovish comments. this fed has been telling us they expect to keep interest rates low for the foreseeable future they are not ready to taper
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assets they believe the pressures are transitory the reality is if the vaccine continues to go as they seem to be going and we prevent another wave, there is a lot of demand set to hit the economy short-term inflation could be in store as a result of that. the fed wants to see through that and they do believe that the long-term structure force hasn't changed we are away away from full employment they expect to keep policy easy for the foreseeable future >> let's talk about the present. 10-year yield above 1.7. a lot of people are nervous for sure what signals are you getting from the bond market and how are they perceived >> the bond market is saying the trade that we all expected coming into the year is now actually happening in many ways, that is a good sign a much better environment when interest rates at 50 basis points in august we were in august and saying we
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hope we see inflation expectation moving higher and the economy picking up momentum. rates moving back to where they were closer to the beginning of 2020 isn't unexpected. it is a bond market telling us the inflation trade is happening as economic activity picks up. >> let's talk about the reflation trade. we see the hardest hit stocks on the nasdaq where should people put their money as we see the interest rate environment >> for more tactical investors in the next months, we continue to favor that recovery trade what does that mean? the more cyclical parts of the economy and the value into the parts of the economy it means the more smaller and midcap parts of the market it probably means pressure on the dollar and emerging markets.
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that is what you expect from the recovery trade the question you need to ask is is the word trade the operable word there? to think the deeper value parts of the market will continue to be winners, you would have to believe that the u.s. economy is moving to a new, higher sustained level of growth. the way i'm viewing this is more of a reversion back. that is what reflation is. a reversion to where we should have been. i believe we will find a modest growth environment once the fiscal support moderates in 2022 and 2023 once the pent-up demand finds its way into the economy if you find yourself back in a modest growth, investors will be back favoring the business this is the time where they are under pressure
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value stocks rise to the floor because we're in the recovery phase. >> brian levitt, thank you for being here this morning. that does it for us re ohen "worldwide exchange. "squawk box" is up next. >> announcer: what to watch is sponsored by edward jones. ure. ♪♪ at edward jones, our 19,000 financial advisors listen and work with you to create personalized investment strategies to help you get back to drafting dreams and building your future. edward jones. it is time for investing to feel individual.
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to business after a brutal once in a 100 year year. retailers benefits from stay at home. two stocks surging in the pre-market it is thursday, march 18th, 2021 "squawk box" starts now. ♪ i need home, home cooking ♪ good morning, everybody. welcome to "squawk box" here on cnbc i'm becky quick. the dow was up 180 points. it closed above 33,000 for the first time ever. the s&p and nasdaq notched modest gains this is all about what the fed had to say game on. look at the equity futures this morning. green arrows for the dow
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