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tv   Worldwide Exchange  CNBC  May 21, 2021 5:00am-6:01am EDT

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it is 5:00 a.m. at cnbc. here is the top five at 5:00 in like a lion and out like a lamb crypto crackdown first china. now the s.e.c. is looking at tougher rules for investors looking to cash in on their lucrative bets. setting sail setting sail as soon as july. and big call on bp what barclays call is the top
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pick. and buzzed at 30,000 feet. southwest airlines bringing back the booze after a months-long hiatus hiatus it is friday, may 21st, 2021 this is "worldwide exchange. good morning, good afternoon or good evening. welcome from wherever in the world you are watching happy friday i'm brian sullivan thank you for joining us here is how the money and global markets are setting up friday. stock futures are and we shouldn't say it too loud. we don't want to jinx anything they are calm this morning they are higher across the board. dow futures up 70. nasdaq futures up 31 not big moves at all they are in the green nonetheless. we did have a rebound on thursday for the averages. s&p up 1%.
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a desccent jump for nasdaq microsoft with a move higher helping the nasdaq and dow let's take a look at crypto and this insanely wild week. like stock futures, crypto is calm we are down on bitcoin one of the calmest days we have seen all week in what has been a wild move. consider this. in the last ten days, bitcoin has gone from $59,500 on may 9th to as low as $30,000 on may 19th collapse ethereum had a 57% range in just seven days if you can't handle volvolatili, crypto is not for you. hodl hold on for dear life.
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let's see how things in europe look with their top stories and market moves and a wild week. as london and the rest of the uk reopen, let's get to the tatelbaum index with the london newsroom with the early trade. julianna, good morning how are you? >> good morning, brian i'll doing well. the reopening story you talked about is coming through in the data european investors focussing on the flash phi. business activity has picked up across the region in may very strong numbers in services and manufacturing. as you see here, we have gains for the italian and french and german markets when the stoxx 600 advanced 1.3%. the ftse 100 down by .30%. despite strong pmi and strong retail sales data.
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we got april figures which showed retail sales soared 9.2% month on month in april. two stocks in particular i want to highlight, brian. lufthansa is down this morning the second biggest shareholder has sold half its stake in the airline. tl family sold at a 10% discount at the closing price yesterday turning to the luxury goods company will double the dividend from jewelry boosted in 2020 they continue to expect growth as momentum picks up in europe and asia shares trading up 4.5% brian. >> julianna, give us an update on london. we love the city what's it like are you out and about? is it back to normal what's it like >> we are now as we talked about
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on monday able to dine indoors for the first time restaurants are not jam packed i went out to dinner last night for the first time all year. there were not many diners in there. people are cautious because of the tension on the vrise of the variant from india that is putting a dampener on how youeager people are to get out outdoors you see the terraces filled up with people. you see eating inside is not quite everybody's cup of tea yet. >> not yet it will get there. have a bite for us julianna tatelbaum, great weekend. thank you very much. take care. >> thanks, brian if you -- you're welcome if you love to cruise, this news update is for you. let's get to the top stories which include ships getting back
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to sea at least in one special place. bertha coombs is here with these stories. good morning, bertha >> reporter: good morning, brian. carnival is planning to resume alaska cruises as soon as july in the first salilings out of th pandemic the princess and holland cruise lines will return with alaska itineraries in seattle this summer each will have one ship sailing round trip this season c cr cruises are available to guest whose have had the vaccine 14 days before the cruise sets sail they have to offer proof and the chinese ecommerce jd is set to offer an ipo at $5.20
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a share. at that price. the company is expected to raise $3.2 billion no comment from jd about that pricing. s.e.c. chairman gary gensler says they are ready to take on cryptocurrency speaking at the financial industry regulatory conference, gensler said they should be ready to bring cases involving issues with crypto, cyber and fintech. his aim is to ensure bad actors are not playing with working families' savings and rules are enforced aggressively and consi consistently wants to let people know the sheriff is in dtown particularly notifying the reddit crowd >> $59,500 to $30,000 in eight
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trading days for bitcoin that, bertha, is volatility. bertha coombs, thank you see you in a few minutes. let's get more on the markets and your money and your first get today says don't confuse the recent ups and downs, volatility, with the big change in where things may be headed long term and the real driver joining us now is michael bucella. a crypto and block chain investment firm. michael, welcome a good friend of the show, penned an op-ed where he said despite the volatility in crypto, we should take positives away from the big moves because the exchanges and defi actually acted like they should have. they ultimately held up. would you agree with that perspective? >> yeah, i would say this is probably one of the most bullish
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for defi a lot of the protocols in defi did break. a lot of the concern is in the stress test scenario and the bank stress test in 2009, this was a live stress test defi held up impressive by the infrastructure it certainly showed weaknesses, but that is natural in crypto to have the market structure bend, but not break. wit we walked away with the volatility with the hedge fund world saw it as an opportunity we embrace it. >> do you feel like coinbase and binance and other major wallets and exchange, do you feel they did their share? did they hold up in a way not like a robinhood in the gamestop frenzy they limited trading
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you could only sell or buy a certain amount are you okay with how the crypto exchanges performed? >> there were issues across the industry it worked well for an institutional and professional firm, if you were one with robust operational infrastructure if you are a retail investor trying to click buy on the exchanges, there may be a moment where the exchanges broke down, but we didn't see the type of complete failure we saw on black thursday of march of 2020. that's all the more impressive of how much money is in the defi space and the contracts in the space. >> okay. i think we lost michael bucella.
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michael, are you there going once, going twice. michae michael, if you are out there, thanks he said the exchanges, unlike this interview, held up. if you are out there, we'll get you back on soon thank you very much. we have a lot to do. when we come back, the alt-milk craze hitting wall street after a big day for oatly. the check on the shares in the pre-market. a friday "worldwide exchange" exclusive and big insider buy by a big name you know yeah that guy first, it was ohio now new york and maryland are looking to boost vaccination numbers. jackpots for jabs. very busy hour still ahead when "worldwide exchange" rolls on w tut after this dofures up 81.
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and advanced cybersecurity to help protect every device on it. all backed by a dedicated team 24/7. every day in business is a big day. we'll keep you ready for what's next. comcast business powering possibilities. it is time for the friday big money movers three stocks to know about this morning. number one app materials. it continues to get a boost of pick up and demand for laptops and gaming consoles. the company is guiding third quarter sales above estimate stock number two palo alto networks posting better than expected third quarter numbers and hiking
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o outlook for the year the ceo says the hacks of solar winds and the colonial pipeline is landing business. stock up 6%. stock number three oatly. sales up again after the nasdaq debut. oatly up 13% pre-market. oat milkmaker with roughly $12 billion of valuation the drop in the broader market, but the bigger question is for anybody who had it, how does it taste? let us know. on deck, how dunkin' donuts is cashing in on the home renovation rush. yes, dunkin' donuts. and k-pop sensation bts making history again we'll tell you how in the top trending stories again dow futures up 91. nasdaq futures are also higher
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butter, doughnuts, coffee and booze. what a great morning combo bertha coombs is here with the trending stories starting with a festive toy collection you have to tie all that together butter and booze how does it go together? >> reporter: i'll resist singing "these are a few of my favorite things." let's start off with lego. lgbt-q set 11 figures inspired by the rainbow pride flag and hits stores on june 1st k-pop band bts has melted viewership records with the song "butter. the video released last night. racked up 19 million views in just its first hour of youtube 10 million of those were in just the first 13 minutes
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i didn't know tweens were up that late. if you can't get enough of the dunkin pink and orange colors at home, they are collaborating with paint company back drop to release a limited edition collection of the neon pink and orange paints starting today. no, the paint does not smell like doughnuts and doesn't come glazed i don't think. southwest is bringing booze back to the skies. the airline will bring alcohol sales back starting june 24th on flights to hawaii after suspending alcohol and coffee on flights during the pandemic. united and alaska air will announce flights will stop be dry. brian, take to the skies and cheers to you as you fly >> yeah. little tough in the middle seat. 36b to enjoy a cocktail.
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let's go back to the first story, bertha. i'll imply this. do you wonder on some of the streaming numbers? to your point, tens of millions in the middle of the night if you leave things on, a lot of these things will keep playing i wonder how much of this is someone forgot to turn off youtube or netflix you know what i'm saying the numbers are so big >> they are a huge phenomenon. i imagine in asia, you have kids who would be doing it. obviously we're not the demographic for bts. i don't know i don't know i wouldn't doubt it. >> bts, i get. huge fan base. let's say it is a movie for people our age so many millions watched it over the weekend and you talk to your friends and nobody heard it much
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less watched it. >> yeah. >> i guess i'm grouchy this morning. >> maybe we're not talking to the right people >> that's it we need new friends. thank you, bertha. giving me permission to start over bertha coombs, thank you if my friends are watching, i love you, by the way it's not you it's me. let's check on the other top headlines. including another state offering a jackpot to get the jab nbc's frances rivera is in new york with the latest good morning >> happy friday. good morning overnight, there were more explosions in the middle east. this time it was fireworks in the sky as a cease-fire is in place with hamas and israel after the 11-day long conflict egypt played a key role in moderating the deal. it says it will send monitors to israel and gaza to oversee the implementation princes william and harry
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are blasting the bbc after the report revealed deceitful methods were used in the in interview with their mother princess diana slamming martin bashir. >> bbc employees lied and used fake documents to obtain an interview with my mother it fueled fears. the interview was a major contribution to making my parents relationship worse and hurt countless others. >> this comes after the independent investigation that found bashir acted inappropriately and breached guidelines to gain access to diana. the network apologized to all individuals affected. on thursday, the maryland governor announced a $2 million vax cash promotion the winner drawn on the fourth of july. all vaccinated residents ages 18
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and older are automatically entered into the daily lottery new york announced a similar program to receive a $20 lottery ticket for a chance to win $5 million. some people are vaccinated, brian. you want to do the lotto thing mega millions is $515 million. you have powerball over $200 million. >> three things. i'll buy a ticket. they all owe ohio some gra gratuity because ohio came up with it. >> you still have to convince people >> frances rivera, have a fantastic weekend. thank you. still ahead. it is not a fossil
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why barclays is bullish on bp. and if you missed a show and your boss said get back in the office and can't watch, download the podcast. stock futures are up 68. we're back after this. ♪ when i was young ♪ no-no-no-no-no please please no. ♪ i never needed anyone. ♪ front desk. yes, hello... i'm so... please hold. ♪ those days are done. ♪ i got you.
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a little green on your screen and crypto is looking calm after a wild week on wall street good reason to wake up
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epic court battle. tim cook getting his day in court and on the stand as the anti-trust trial wraps up the third week. rising risk. extreme weather is a year-round worry in areas now home builders are looking for ways to get projects off the grid that is if you can find a home builder. it is friday, may 21st this is "worldwide exchange. ♪ ♪ welcome or welcome back. good friday morning. we made it thanks for joining us on this friday here is how the money and markets are looking right now. they are looking not too bad we are seeing stock futures in the green. not going to make so much of it. not going to sound the alarm dow futures up 67. nasdaq up 27
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now the nasdaq coming off its first winning section of the week dow and s&p the same check this out i guess this is an rbi despite all of the volatility. the crazy ups and downs this week, the nasdaq is actually set to end the week higher it's up about .80% the russell 3000 index super broad index needs a gain of .30% to finish higher kind of hard to imagine given the recent big down days we have seen it is true stocks actually could end the week with a decent week. we continue to watch the metals trade. speaking of decent gold is coming off the highest number since january 6th up six straight days comex gold back to nearly $1,900
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an ounce the mid-morning crypto check right now because that has been the most volatile market bitcoin is slightly higher back up above $40,000. $40,500. ethereum and ripple down a little that is not that big of a move ethereum at $2,748 tim cook takes the stand and what it could accept as a global tax rate here is more of the friday stories with bertha coombs bertha >> reporter: good morning, brian. in the trial of apple versus epic games, it is game on. wrapping up the legal argument in court with the biggest witness yet. tim cook many expecting him to kickoff proceedings with three hours of testimony with examination from
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lawyers and cross-examination from epic. that followed by redirect by apple. the u.s. treasury department could accept a global minimum corporate tax rate of at least 15%. very significantly below the 21% minimum for u.s. multinational firms. it was pitched during the oecd meeting yesterday with the attempt to reach agreement to rework rules for taxing multinational corporations and big technology companies. chief white house medical adviser dr. fauci spoke to shepard smith and said it is possible that middle and high schools could be mask free >> well, it is conceivable they might be as a matter of fact when you have a fully vaccinated it is conceivable that would
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wind up being a recommendation we have to wait and see. >> reporter: important for the teachers dr. fauci saying it is quote in our power to stop any surges in the fall through vaccination brian. >> all right bertha coombs, thank you very much the most misunderstood investment case of the large cap oil stocks in europe so says barclays about bp. they named it amid the top picks. the switch to low carbon will be rewarded with us is the analyst who made the call lydia rainforth. lydia, i read your call with interest bp has been the subject of the huge debate among investment community. why do you like the name so much right now? >> thanks, brian good morning for me, bp is transforming from the integrated oil company to an
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integrated energy company. and bp is right to change. long-term stewardship requires the company alongside to provide energy the prediction for bp is over the next ten years and that doesn't lead to a cash flow. if we see anything, cash flow is higher from the business rather than lower as they upgrade the portfolio with efficiency and digitalization as the cash flow goes up, it will be moving you have cash flow coming from the divisions and gas stations and products they sell there it gives them time to transform into a low energy or low carbon energy business. that takes time. they have a lot of cash flow to allow them to do that and that's return for the shareholders.
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we are looking at a stock with a yield and can double that through the process of share buybacks as well it is clear that is the topic on the index. >> lydia, the reason this call caught my attention so much is bp may or may not be a model for major american or other global integrated global companies. i'll roughly summarize this. we will not quite wind down the business over the next number of de decades, but upstream. pulling money, oil out of the ground, that will kind of slow down in the next couple years and decades. we give a lot more cash back to shareholders rather than continuing to reinvest in it do you think that bp is a model or is it, you know, pulling a fleetwood mac and going it's own way? >> it is a model for the other oil companies.
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they will all interpret how they get there differently. the move to net zero, we need to move from rhetoric to reality. that illwill involve hydrogen a bio-fuels. all of which the skills that bp has. it takes time to come through. by making the switch now and putting the investments in, that allows them to benefit it will be toward the end of the decade and into 2030 that is what they can do and the business on the oil and gas cash flows they are getting now, reducing cap and reducing the cash flow to do both you can give cash back to shareholders now and give a business that is sustainable into the next decade and beyond that >> your assumptions of brent at $60. are you surprised, lydia, how
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well oil has held up this year it is up 35% or 40% on the year. >> i just wish the performance reflected that oil price in reality, i think $60 is a decent assumption. opec is clearly managing the market well. the big story is what happens? do we get a deal or not? i think as we get the volumes coming back from around opec will manage that market and we still have that uncertainty, i see us breaking out of the trade in oil >> lydia rainforth of barclays, bp is the oil stock. thank you for coming on "worldwide exchange. best to you. all right. coming up. your exclusive weekly insider buying segment and one big buy
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by a big business name you know. plus, look at that chart $8 million buy at that stock it's a recent ipo. a huge group of insider buyers the name's ahead as we head to break. some of the other top headlines on friday. "the new york post" says hertz is considering relisting after it comes out of bankruptcy in a twist, it could be a jab of the old exchange they may be switching to nasdaq. moderna may manufacture its covid vaccine in japan chief executive telling the nikkei that the company is in discussions in several countries in asia. including japan. two companies owned by byron allen with a lawsuit against mcdonald's the suit seeks $10 billion in damages. d taiwan semiconductor
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company is the world's biggest semiconductor maker and it is taking unprecedented actions to help the automakers. we are back rit tethghafr is gan. that serves dinner at 4:30. personal assistance just a text away. one of the many things you could expect when you're with amex. it's coming back to you now... real pants. find amex offers to save on the brands you love. one of the many things you can expect when you're with amex. in business, it's never just another day. it's the big sale, or the big presentation. the day where everything goes right. or the one where nothing does. with comcast business
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♪ we are looking at home builders for a reason. in under two weeks, the atlantic hurricane season will begin. the risk from climate change is now a year-round phenomenon. it is looking to take homes off the grid completely. diana olick has the report on rising risk to climate change. >> reporter: this year, an unusual ice storm struck the southern u.s. hitting texas particularly hard. it took out much of the state's power grid plunging nearly 10 million people in a cold, dark, deadly
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disaster more than 150 died and estimated $200 billion, it was the costliest natural disaster in the state's history. >> more severe storms will further and further indicate the needs for resilient development. >> reporter: the professor ben keys studies climate change on real estate and growing need of housing to survive off the grid. >> we are not talking slapping solar panels on the roof. >> that's right. they can have their own water filters and other sources of electricity generation and a number of other efficient ways to manage utilities. >> reporter: a growing number of small builders like california based companies are stepping up. >> the idea of the self powered home came from the wildfires the grids were shutting down >> reporter: the company built homes in the factory the average size is 2,600 square
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feet it can be larger cost of $1.2 million that's about 20% higher than a comparable track home with no f efficiencies and technology. it has solar and battery and smart allow them to use less energy and operate off the grid. >> grids are not made to manage. since all of the events in texas, the interest in the self powered concept is off the charts >> reporter: most of the projects are on the west coast they see big expansion coming. major grid failure or blackout events in the united states impacting 50,000 or more people jumped by 60% since 2015 >> we didn't anticipate it would grow this fast nationally. >> reporter: growth for individual homes and communities that can have their own micro grid shared storage. >> off the grid housing doesn't
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mean you are living alone in the woods. >> it is not just for extremists you will see more and more people to protect themselves as increase risk from storms and utility disruption and more need for resiliency >> reporter: the homes come at a price premium and retrofitting older homes is expensive funding this is a challenge because the investment pays off in the long run, but not right away part of the infrastructure plan for president biden to upgrade forward able housing to be more energy efficient will help grow this market and lower some of the up-front costs brian. >> a few things here, diana. if you are off the grid, that is great for you, but bad for funding. taxes pay for the infrastructure you step off the grid and leave others to pay for building out that grid improvement.
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either way, you can comment on that or not. you have climate change here which is a factor. you have the pandemic as well. how did that play into the demand >> reporter: it is interesting you saw so many people who moved out of large cities. also moved to the south which is vulnerable to increased storms from climate change. that is where they are looking to expand in southern states you have people moving into rural areas. when they get hit pby a storm, they may not get back on the grid as quickly. if they are paying in, it is not they are off all the time. they can power themselves whether or not they are on the grid a lot of this has to be worked out going forward. if you have a community off the grid with a micro grid, perhaps, that is interesting. as the technology degreegrows, l see what happens when disaster strikes, we will
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be able to survive more easily than we can now. >> it sounds great especially as you talked about texas. you have solar panels and battery pack and tesla in the garage no gas taxes no utility taxes you are leaving others to pick up the slack as you drive the roads. it sounds good, but the tax side of your story might come next, diana. i have no idea >> i think that's the next step. we don't know where it is going on the tax side. we have have few of these. we are seeing people doing it and want people to be off the grid not all the time, but the ability to get off the grid when disaster strike. the tax part will be the next story. >> do you ever watch "the s sim sim simpsons," diana >> i do.
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i have kids. >> ed begley jr. got into a go-cart and bart said, what's that it's a go-cart powered by my sense of self satisfaction as he zipped off down the road >> reporter: i like that >> diana, thank you. i like your series rising risk. good stuff going off the grid the fight over taxes coming up next on this show, who is buying what your weekly insider buying ex-ce exclusive with one really big name. if you haven't already, subscribe to our podcast may is asian-american and pacific islander heritage month. we highlight leaders and anchors and reporters and friends. here is kathy lien. >> i started on the trading floor in '99 it was filled with people who did not look like me
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i was asian and a woman and 18 there were no women and fewer asian that were executive managers when i was given a chance to forge my role in the company, instead of a bank with a 100-year old history, i realized i had to take that opportutyni ugh, these balls are moist. or is that the damp weight of self-awareness you now hold in your hands? yeah (laugh) keep your downstairs dry with gold bond body powder. ♪ ♪ i had the nightmare keep again maxine.rs dry the world was out of wonka bars...
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new chapter. wellness, well done. welcome back your favorite time week insider buying segment highlighting the five companies with the most executives buying their own stock with their own money. these stocks as a group have beaten s&p handily data from insiderscore.com we count down five to one. stock five rackspace. three insider buying $250,000 following the disappointing ipo last year. three insiders buying.
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fourth buy cable one. cfo buying $517,000. he was a seller last year. so this is his back as a buy and biggest buy yto date. number three is bloomenergy. buying $750,000 worth. he sits on the board and the stock is already up 40%. buying into a rising stock price by jeff immelt and the number two is univar solutions. ceo buying $2.5 million. and the company with the most insider buys by an insider or
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insiders, app lovin. $8.7 million the ceo, cfo and board member all buying buying into weakness following the disappointing april ipo. if you remember applovin was on our list a couple of weeks ago the second time it appeared on the insider buying list recently app for applovin the ticker name. a lot of insider pewbuying rackspace, cableone, and we do this on most fridays here on "worldwide exchange. your next guest has inflation on his mind. joining us is strategist brian levitt brian, good morning. where do you come on the whole
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it's transitory thing? >> i do believe inflation is going to prove to be temporary challenge that will ultimately fade the reason i believe that is nothing structure changed. the terrible economic outcome. a lot of pent-up demand. plenty of us sitting around waiting to reengage in the service sector there is a lot of fiscal support. pent-up demand fades this will become a drag into next year. there will be an inflation concern and volatility along the way. we don't need to change our structure views on inflation they are still long-term forces against inflation. >> how does that play into equity what is inflation mean for rates and rates mean for stocks? you buy a fast growing stock for rates and it looks good.
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it brings down the earnings multiples. what do we invest in given everything we know about everything >> good growth and rising inflation is good for the he can w equity market. as you move into the next phase, you want to own. as you move into expansion, both do well in the expansion phase if you see rates move higher, that means everything is working. cyclical and small caps and weaker dollar. all of that does well in that phase of the cycscycle. this will all slow here through the end of the year it will be volatile. that will work as you move into
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20 2022 rates will slow and you see it come off a bit >> i feel like the market got tested and came through it given the days we have seen and random investor say how did the market do? it got crushed the russell 3000 is down nasdaq is up it is like body blow, body blow. the markets are up do you feel like the market has been tested a little bit this week, brian? i know you are not a short-term guy. you have to take the blows to keep investor optimism, i assume >> the market is being tested. it tends to be tested in year two of the cycle it is ironic year one, the market goes straight up when the economy is not doing well because it is forecasting better growth. then year two, they are worried it is overheating.
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this move in stocks should be expected anytime you see volatility in markets or drawdown in markets, it is a result of policy uncertainty. it is being tested we digested scary numbers if yo read the headline on inflation there are things driving it like the pent-up demand and getting back to flying and lodging outside of our homes the market is tested the market is trading it appropriately. the market is continuing to go up in the back drop and environment where prices are rising that's a good back drop for equity nothing we should be fearful of. >> the market doesn't look scary right now. that's a great place to leave it with optimism on friday heading into the weekend brian levitt, pleasure thank you for coming on "worldwide exchange. have a great day.
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>> thank you you're welcome let's throw the futures up again. why not? we are seeing green on the screen what has been a wild week. dow futures up 91. we are in the green. we will see if tech can power on many of the crypto, if not higher, are not down bitcoin is up a bit as well. gold is up you're up. we appreciate you being up and watching the show or listening on the podcast thank you for watching and listening. have a gatre weekend see you monday "squawk box" is next take care.
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good morning stock futures and crypto relatively calm this morning is it the calm before the storm? maybe it is the calm after the storm. it has been a wild week on wall
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street so far. it's friday. we will show you what is moving right now. the reopening of america is under way. cruise stocks are higher after sailings from the u.s. this summer. update on the vaccination rates and new incentives and the debut of the new york new park it is friday, may 21st, 2021 "squawk box" begins right now. good morning welcome to "squawk box" here on cnbc i'm becky quick along with joe kernen and andrew ross sorkin is live off the island of mon manhattan. this is a new park opening today. andrew, how s

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