tv Worldwide Exchange CNBC March 11, 2022 5:00am-6:00am EST
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at keeps.com/tv. it is 5:00 a.m. on wall street here is your top five at :00 stocks trying to cap off a week on a high note after futures are slightly in the green. and the russian offensive in its 16th day it is appearing to change tactics to take on a new phase in the war. and to fossil fuels to drill, baby, drill forcing oil companies to pump more crude oil. holy hong kong
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tech stocks as one big market is tanking overnight. and why shares of this ev maker and aininvestors lose a lt of money it is friday, march 11th and this is "worldwide exchange. good morning, good afternoon or good evening always, welcome from wherever in the world you are watching i'm brian sullivan thank you for being with us. let's hit your friday money on this two-year unofficial anniversary of the start of the pandemic the day america stopped move the futures are in the green dow futures up 105 nasdaq futures up 61 a .10% all that coming off another 1% loss for the nasdaq. it is now 19% off its record
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high set back in november. the dow is down more than 1% on the week it is on track for its fifth down week in a row that would be its longest losing streak since may of 2019 it has not been all bad this week the small cap russell 2000 is higher by .50% since monday. see it will end the week in green. crude oil is off from the close. the high was hit on tuesday intraday this week oil fell slightly on thursday. most of the oil and gas stocks actually rose yesterday. remember, they usually trade together kind of an interesting disconnect between oil and oil stocks happening yesterday was something to watch see if that will last. in crypto, slight losses as all of the major cryptos are down. we have to show you this this will no doubt be the stock of the day
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it is rivian shares pounded after hours it is down more than 11% it has been hit on disappointing numbers. also the company saying it will with only deliver 25,000 vehicles this year well below expectations. it has been a brutal few months for rivian investors right after the red-hot ipo, it was the darling stock of wall street for a while shares surged to $179. now it is at $36 and change. rivian lost about 80% of the value only since november. put it another way, it lost $110 billion in market cap in just 120 days we'll get more on this story straight ahead. in the meantime t, it has be a tough time for the markets and overseas and one sector of
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stocks karen tso is covering those stories for us in london that is in asia with the chinese technology stocks getting clobbered. karen, good morning. >> good morning. so much going on with the markets. the dominant concern has been ukraine and russia markets are volatile even on the upbeat sessions. we saw the surge of 8% on the german stock market. dax with the red ink another upbeat session we had a flash of red across the markets. french market at one point we flat lined in the german market we are not done with the volatility, but we are enjoying green on the board at this stage. some sectors that are bouncing are travel and leisure the pricing action is dominant in the market. that area is bouncing strongly
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commodities in the mix from oil and gas and basic resources. there is concern where there are assets exposed to russian banking stocks modest gains there i want to take you to asia markets. we traveled to five-year year lows also some concerns elsewhere and what we have around the chinese tech names that may be targeted in further dispute with beijing and washington they need to provide access to auditing or they could be de-listed from the united states. and then in the nikkei, they are pulling back on the production as they try to ease the supply constraints toyota stock is big for the japanese stock market. that traveled south today. you mentioned meta and alphabet. you can see those stocks where
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eu and uk opened anti-trust probes as they investigate whether they looked to fix prices around digital advertising. both firms backed the deal back to you in the studio, brian. >> cute name, but could be a tough outcome. hong kong index down 9%. karen tso, thank you very much now to the war in ukraine now in the 16th day. moscow launching a new assault on the city of mariupol. that is one day after the planes bombed a maternity hospital. you see the harrowing images of the newest strategy targeting populations and civilian targets. also this morning, russia expanding attacks on ukraine to points west with air strikes hitting near airports near
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lutsk. they are expanding their front this is new satellite photos showing the russian convoy, initially going to kyiv is now redeployed in towns outside of the city much of that convoy were being low gugistical issues. here at home, president biden set to announce the u.s. will join its major european allies in calling for the revocation of russia's preference trade status that is vodka and caviar and more all this as senate lawmakers passing a government funding bill last night which includes $13.5 billion in humanitarian and military aid for ukraine now to the money with the major indexes on track for the fifth down week in a row and
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partly on the heels of yesterday's read on inflation showing price gains at 40-year highs. according to the treasury secretary janet yellen, that is a trend that will likely continue. >> likely to see another year in which 12-month inflation numbers remain very uncomfortable and high you know, the federal reserve is looking carefully at this. they indicated that they intend to take actions to bring inflation down and i have confidence in their ability to make a meaningful difference going forward. >> all right joining us now is degas wright at decatur capital management. it is friday, degas. we love your ideas i will not ask you to weigh in on politics. i wouldn't ask that of anybody you need a shower after that
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the administration is trying to reframe the inflation debate over the putin war in ukraine. some of what we are seeing is related to that, but if it is related to that, will fed rate hikes matter you can't have it both ways. if it is related to the war, i'm not sure what the federal reserve is able to do? >> one of the things you have to look at for the federal reserve is to be proactive one of the things by raising interest rates is 25 bips in march. i think that's reasonable for them to do they have to do their part although we have a slougwing of the economy slightly we are looking at a 7% to 8% growth over last year and inflation for gas and labor and other items.
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the federal reserve has to be pro-active because they got behind before, i think it's wise for them or prudent to go ahead and start slowing down that economy more because we still have inflation even with what's happening with russia and ukraine. >> got a little bit behind, you are being generous there i wish i had a crystal ball. maybe you do there is so much unsettled with inflation and supply chain and all this stuff we look at the notes and call them opportunity fridays you think our neighbors to the north, canada, might provide a better investing opportunity than the u.s. right now. how come >> well, if you look at the canada etf, it is flat for the year to date if you look at what companies are looking within canada, let's look at canada national railroad they are the only railroad that
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actually connects canada to the u.s. from coast to coast that is something that's doing really well. if you look at what cargo they haul, they haul about 20% of their revenue coming from land fertilizer and 20% from petroleum and chemicals and 12% from forest products they are doing really exceptionally well with the cash flow generation. they actually raised their dividends around 2% now. they raised that dividend for 26 consecutive years. it is a solid company. you see there are opportunities outside of the u.s. and that's one example. >> also, i think you like the uk do you like the entire england market or is it more of an astrazeneca health care type name that attracted you, degas >> we want to look at here and i'll refer to the uk etf
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it is basically down 4%. you have other companies within the uk that are doing well astrazeneca is just one example. they have over 13 drugs doing exceptionally well they have a deep pipeline and a strategic plan helping with the cash flow. this has a deividend yeield up % for the year this is an example of looking outside of the u.s. and also looking outside of europe for these types of opportunities >> all right we have opportunity friday canadian national railroad and astrazeneca. canada and the uk. we'll start it the ticker will be queen or something like that. d degas wright, thank you. take care. >> thank you, brian.
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tim cook speaking out over the rash of the new don't say gay laws making its way through the state legislators. and big oil. how some in congress interest trying to boost production by raising taxes. and later on, a live report from lviv, ukraine as russia ann the defensive to the w west we're back after this. the blank page. artists and writers know the tyranny of it well but so do developers, data scientists, ctos. the new creators to them, we say let's create something that changes everything. ♪♪ ibm. let's create.
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welcome or welcome back. let's get you up to speed on the top corporate stories, including how one singer may join the billionaire business club. bertha coombs is here with those and more bertha, good morning >> good morning, brian pressure on hong kong listed shares of chinese companies. including jd.com and yun china shares plunged on possible u.s. de-listings. the s.e.c. put out a list of chinese companies and they say failed to adhere to the u.s. accounting standards grounds that could lead to a de-listing apple ceo tim cook raising concerns over lgbt laws in the u.s. focused on younger americans and those so-called don't say gay laws in a tweet, cook says a proud
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member of the lgbtq plus community. i'm concerned about laws enacted across the country particularly those focused on the youth i stand with them and the families and loved ones and allies who support them. cook's comment comes the same week florida lawmakers passed a republican backed bill on sexual orientation for students. and singer turned fashion mogul rihanna is working with advisers on an ipo to value her fenty company at $3 billion or more savage is working with goldman sachs and morgan stanley on the deal that would be a must-see ipo can you imagine the lines and
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there is a huge bake-off between the nyse and the nasdaq for that one. >> you said bake-off i was thinking of baking and pastry and croissants. think of the singers and actors. they leverage fame and social media profile. they market to millions of people when are we getting the coombs-sullivan? >> we have to get a singing career and design career that is a lot of side hustling >> sounds hard and i can't sing. bertha, thanks cold water on the dreams all right. that's it for the show i'm kidding. coming up, the weekly look at the biggest insider buys of the week this week, a nearly $20 million
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that is going after the oil industry directly. we have ylan mui with more ylan, what do we know? >> reporter: democrats want to hit big oil with a big tax in hopes of saving consumers pain at the pump. a new bill takes aim at companies like chevron and shell and bp and oxy that producer import more than 300,000 barrels a day. the big oil windfall profit tax is a difference with the taxes and splits that in half and that number is the amount of the new quarterly excise tax if oil were $120 a barrel, democrats estimate this would raise $45 billion a year and send $360 back to families in a statement, we cannot allow
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the fossil fuel industry collect a massive windfall on the international crisis republicans argue the answer to rises prices is not punishing oil companies. >> if we are truly talking about an all of the above energy policy, we don't see it in the policies coming from the administration when they demonize certain segments of the american economy and the american energy sector >> reporter: now president biden warned oil companies not to gouge consumers, brian this is democrats way of making sure that doesn't happen back to you. >> i've got so many questions, ylan number one is is there any -- i'm not putting you on the spot. i don't know the answer. i wonder, not for you now, but somebody smart on twitter or whatever is there any example of a tax
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lowering the price offing something anywhere in any industry i wonder if they can point to it and say this worked in the past. so now it will work now. also, do they realize the price of oil is largely not set by the oil companies? >> reporter: two points for you. there was a bill actually a law that was passed at the end of the carter administration in 1980 with the similar structure and would tax excess oil profits. the problem was as soon as it was implemented, the prices dropped and there was no money raised to your point of bringing down prices, this is not the price of oil, per se, but the profits that oil companies are bringing in the goal of this bill is to make sure that consumers share in the profits of oil companies taking in, whatever the price may be
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and not all going to the company. this is the answer to the debate of the gas tax democratshave been having. some concern of the gas tax is that money is going to every consumer, no matter how much they make. this would go to low-income houses. >> pulling out the 1 1979 playbook. i'm not sure how well it worked there. we did see prices go down. we entered a recession and interest rates sky rocketed. ylan, watching this soap opera between congress and the oil industry put them in jail end fossil fuels remember, this week, can we kill the music? thank you. remember, this week was supposed to be the week that congress brought the ceos of oil companies to task over climate change the war happened and that got postponed. it could still happen. this is the week that a bunch of ceos were going to get their
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heads handed to them by congress now asking for help. it seems odd >> reporter: there certainly is debate within the democratic party. we heard obviously from the energy secretary saying the u.s. does need to increase domestic production to meet supply demands. democrats are trying to figure out what is the best message here both in terms of what do we do about the supply and how do we help the consumer. >> the best part is end the war. if they can help end the war do that, that would help a lot ylan mui, thank you very much. now i'm in trouble with the staff. sorry about that. as we head to break, an update on the story we have been watching closely speaking of oil. the latest track of the seven ships carrying russian oil right here to america right now. three tankers in ports in new jersey and new york.
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one currently unloading the russian oil cargo just outside of philadelphia. the other two full of oil and ready to unload. one in new jersey and one in new york the other four are in the atlantic currently steaming toward america with tens of millions of dollars in russian oil on board russian oil still being unloaded in the united states think abt at 'rba aerhis.th
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russia's offensive taking a deadly turn as putin now targeting civilians and pushing west a live report ahead. janet yellen talking inflation and talking cold water on the russia moving closer to china. and talking about needing a jump start the shares of rivian and why your car may not meet your garage this year it is friday, march 11th this is "worldwide exchange. welcome or welcome back. good friday morning. thank you are for joining us on this becausy friday i'm brian sullivan futures are slightly higher. maybe up .10% or .20%. the dow futures up 156 nasdaq up 1% this coming off another tough
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day and tough week for most of the major averages nasdaq down 19% off the record high in november dow on track for the fifth down week in a row. that would make it the longest weekly losing streak since 2019. bonds have been on the move. ten-year yield higher. under 2% crude is high off the close, but well down from the intraday peak of $125 a barrel earlier this week it did fall slightly on thursday here is what's interesting most oil and gas stocks rose they usually trade together. they went the opposite direction yesterday. an interesting disconnect. see if that will last if this continues to occur and big money mover outside of rivian. docusign shares down 18% earnings are okay. guidance was weak and the market is punishing the stock
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docusign is 70% off the 52-week high a tough run for docusign in some of the reopen stocks. now to the warr entering th 16th day putin launching an task attack on the city of mariupol. russia is expanding further west and fighting in the skies. photos appear to show the convoy initially believed to be going to kyiv is now redeploying to towns and areas outside of the city and reportedly getting bogged down in the mud and bad morale among soldiers. joining me now is mostly hunter in lviv.
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m molly, the ukraine minister said they have killed more civilians. this military has taken a deadly new turn >> reporter: that's right. it is a horrifying headline. no matter how many times russian foreign minister lavrov claims they are not targeting civilians, we know they are. we have seen the photographs from mariupol. that city where we have been talking about that situation where the maternity ward was bombed we have spoken to people on the ground i want to runt thro through the headlines in kyiv and the convoy we have tracked the convoy for the last two weeks it remained 50 miles outside of the capital. now we understand it has dispersed and moved into the capital according to u.s. defense official a senior u.s. official yesterday
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said it may be ten miles outside of the capital the other russian claim is they captured one of the southeastern cities on the black sea belt where russian forces are trying to consolidate we have been talking about the city which has been sieged the humanitarian situation is as dire as mariupol we have no confirmation in the city or from the ukraine side. the russians have taken that we heard from president zelenskyy this morning he is accusing russia of targeting the convoy heading to mariupol he keeps sending and they yet to reach the city this morning, there are 12 more humanitarian corridors open, brian. we have not had any evidence of civilians made it out of the 12 areas. brian. >> molly hunter, you and the nbc team reporting from lviv since this began we know it is on the far western
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part of the nation with this push west. is there a risk that where you are, lviv, which is the only place we are getting credible media information about the war. is lviv in danger? are they telling you and your crew you have to leave soon? >> reporter: that has been the big fear, of course, for the last two weeks the march from the east to the west is going to speed up. of course, we have nbc's chief foreign correspondent reporting from kyiv. we have direct information from that region. we are on the west we heard air raid sirens all morning. three in the last yhour one overnight. the bombings on western targets including the city called lutsk, suggests that the russians are reaching west. there is a long, long way to go from the eastern frontline and in that central part of the city
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before they come to lviv as you mentioned, this is the safe place this is where people are evacuating and departing to get to safety. brian. >> we are praying for everybody's safety including yours and your crew and citizens molly hunter, thank you. for more on this and how the war may go and end, ed mills and raymond james policy analyst and his team is doing great work on this ed, thanks for coming on i read your note always a must read with great interest there's been so much talk about finding an elegant out for putin. as we dig in and as they bomb and killing civilians and women and children and more civilians. we said killed and soldiers. does that reduce the likelihood that there is a real out for putin? he appears to be going in the opposite direction digging in >> brian, that is an important question
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i think it is about debate in terms of pressure not only on putin, but a pressure on ukrainian officials and president zelenskyy. i spent the week at the raymond james conference in orlando. 1,000 investors and management teams. this was the number one question what is putin's end game we have had crippling sanctions against him and right now will he look to have an out as his economy collapsed? or will he look to double down right now, he is doubling down we have to see if any of the peace talks can negotiate something that can provide at least a near-term cease-fire and to have an opportunity to live for another day. from a market perspective, i can tell you almost everyone i talked to is looking for any glimmer of hope and the upside
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moves to the up, but i think the whole war has reignited a discussion of globalization and the risk premium that exists from the geopolitical perspective that has not been there for years. >> well said we are discussing it and where this ends and especially before the war with the supply chain issues and people thinking should we bring stuff back to our own nation whether it is here or somewhere else ed, i spoke to government officials off the record at the conference in houston and again with texts last night. there is, i guess, i don't want to say hope, but one way out of this is for either a general or another politician in moscow to effectively try to take control. effectively a soft coup and say we're in charge. putin is insane. we believe in peace.
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effectively take over the government from putin. is that something that you think would even be possible given what we think is an ironclad grip on the nation >> brian, that is the debate i had, too i don't think anyone knows is the honest answer. i think the sanctions that were put on were not expected to be tough by vladimir putin. he is facing a tough choice. what we are going to see is an economy in russia that's in collapse historically. wars, once you run out of your tre treasury, you don't have the ability to pursue this what i'm watching here is how much are there relief bells available to russia from china and india and other trading partners that they traditionally had. if those relief bells continue to get shut off, that is more pressure on putin to take a deal
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and more pressure on the russian economy and maybe pressure on individuals within russia to seek an alternative. >> the longer this goes on, the harder it is to see that way out. ukrainians will go after the russians as well and now all over the nation. ed mills of raymond james. thank you. have a good day. >> thank you coming up. imagine losing $900 million a day for 120 straight days. that has been the reality for rivian shareholders who bought near the top and to make it worse, the market opens today for trading. more on rivian's rough ride with phil lebeau. and as we head to break, saying good-bye to stocks. investors pulling out of european markets at the fastest pace on record according to bank of america. domino's pizza staying open in russia.
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it is suspending royalty payments from any russian restaurants and will limit further investment in that nation. and janet yellen tempering russian relations. she says beijing's ties to wall street is too important to count out. we're back after this. >> they care very deeply about their relationship with the u.s. and european financial systems and they seem to be very cautious in their willingness to do business with russia. so, conceivably there could be some partial relief for russia through that channel, but i don't think that anything will happen through china or at least i'm not seeing any evidence of it that would significantly mitigate the cshg rd oruinbuenf
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welcome back to "worldwide exchange." we have a friday market flash. shares of didi global are dropping down 12% on a report that the company is planning to halt its plans to list in hong kong bloomberg report says this comes after they failed to apiece of chinese regulators three months ago, didi failed to
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list in the united states and then in hong kong. now that may be at risk. what is at risk is the capital that stock is down big speaking of that, let's talk rivian shares are slammed down 11% in pre-market rivian down 80% from its all-time highs in november this follows fourth quarter results with production delays of the electric trucks and suvs. phil lebeau is here with us. phil, a big story. we appreciate you coming on. what is going on at rivian >> the supply chain is the biggest issue for these guys right now, brian you look at shares of rivian and they are under pressure this morning. you mentioned down more than 11%. that's because they basically said for 2022 we're going to build 25,000 vehicles. that's our expectation the capacity is for 50,000 vehicles they are only going to do half
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of the ability in terms of vehicle manufacturing this year because they are running into issues with the supply chain during the conference call, it is the semiconductors and electronics. it is enough that you have to be slow in the ramp-up of production talking about the impact of the high price of nickel s>> inflation we have seen with nickel pricing recently is short lived. the reality is there will be movement around commodity pricing and across the variety of commodities >> still waiting for nickel to trade on the london metal exchange briefly over $100,000 per ton. not many contracts traded. keep in mind this is a company, rivian, that has said they will be raising prices 17% to 20%
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remember, they had the pricing snafu lastweek people who canceled, half of them, reestablished orders they are trying to make adjustments because of the high cost of commodities, including nickels. w i what will they do? they will have the lithium phos phosphate. that is what we will see from them and tesla and others. they adjusting the chemistry of the battery cells because they have to diversify when something like this happens with nickel. >> i have to say the car is spectacular looking. the suv has been lauded as "motor trend" truck of the year. it's fast, it's sexy the technology is cool is it possible that lithium
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battery change means they have to ratchet back some of the mileage estimate that they publicize? >> on the base models, they will with lithium phosphate hit the targets. the higher battery pack, the more extended range, if you will, they will still use nickel for that that's the adjustment. instead of nickel for every single battery cell in every battery pack, in the future with the base models and then people who want the base models, they can say we will go with the lithium phosphate battery cells of the. >> i'm a dork that reads "car and driver" and phil, i read a report where they loved the car, but towed a trailer and only got
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108 miles with the tow >> we will see that. when you tow stuff and cold weather. not what i expected. >> yeah. you know, trucks can be used for towing things. phil lebeau, i appreciate you getting up early phil, thank you very much. on deck, your weekly look at the biggest insider buys of the week, plus emily bowersock hill on what she is doing stick around grow to rely on. these are the bonds worth investing in. for over 50 years, pimco has reinvented fixed income to create opportunities for investors in every market environment. so, no matter what happens you can build the bonds that mean the most to you. pimco, a global leader in active fixed income. at vanguard, you're more than just an investor, you're an owner with access to financial advice,
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ibm. let's create. time for the weekly insider buying segment where we highlight the top five stocks bought by the executives with their money. data from insider score with our appreciation here we go stock five wayfair. his second seven figure buy in three months number four, crocs $1.2 million buy crocs. buying into a lot of weakness.
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number three, western alliance bank corp. second biggest insider buy another shoe company skechers the most insider buying this week is a lot bigger than that a name well known to cnbc. it is continental resources. harold hamm with $19.9 million buy. by the way, buying into strength continental doubled in a year. harold is not scared off by stock being higher stepping in with a gigantic buy. we do this almost every friday this segment you will see only on wex or on cnbc pro. sign up for cnbc pro today we will wrap up the opportunity with one of our favorite guests. emily bowersock hill emily, welcome back to the
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program. do you have a crystal ball right now? things seem so cloudy with inflation, russia, covid still, supply chains. i have no idea what's going to happen >> i'm sorry to disappoint you no, i don't have a crystal ball. i don't think we'll get a lot of certainty anytime soon, unfort unfortunately. so, you want to know what i think will happen? >> yes, please >> well, i think and i'm not alone in this, that vladimir putin committed one of the biggest strategic blunders in the last 100 years i think he's backed into a corner i don't see a way for him to get himself out of that tight spot anytime soon i expect this volatility to continue again, i don't think i'm alone in that. as you likely know, typically
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geopolitical events like this don't have a durable longstanding impact on market prices in this case, the impact on commodities and spiking oil prices are problematic for economies across the world including ours although we have much more energy independence than we did back in the '70s i think we're in for continued volatility >> paying $5 for natural gas not $30 like in europe going to fertilizer prices to electricity costs. emily, we are talking about the fed. they will probably raise rates next week. march 16th is when they will do it they have hit us over the head with that. government is blaming inflation on the war if the war is the reason for inflation, which we all know it is not really, not all of it, can the fed do anything about any war-related inflation? >> the fed's in a tight spot i thought it was interesting that chairman powell said that
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we're going to get a quarter point increase i think we're expecting closer to four rate rises than six which we were expecting prior to the war. yeah, they are walking a fine line we already had inflation as you pointed out. the spiking oil prices have raised the risk of stagflation which is not an outcome that anybody wants. >> what would that mean for equities if we had stagflation, would it change the fed to become more loose which we all know when they become more loose, stocks tend to go up. do you think, in other words, emily, i'm not saying the bottom is in, but is the bottom potentially close for the year or can this slog on for months and quarters >> i think it will slog on, but the impact of the conflict has
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been priced into the market. i think as you pointed out the upside is we are likely to get fewer rate increases than we would have otherwise so i think that's why you had some of the big surges in the market because we will likely have a longer continuation of the liquidity we have seen, which as you know, has been driving the market for the last year and a half. so, yes, there are certainly some silver linings. i expect continued volatility now through the second or third quarter. as you probably remember, we felt the markets were overpriced coming over priced coming into the end of the year. we were expecting a rocky quarter or two i think it will be more pr prolonged now. >> i want to hear next time you're on, emily, about raising
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chickens because maybe that is something we should get into the value of chickens and eggs has gone up. that could be a good investment. emily bowersock hill, we appreciate your time thank you. emily and her family raise chickens that is it for us on "worldwide exchange. i'm off next week. we have a lot to do. n'go anywhere. "squawk" and the gang pick it up next have a great weekend when it comes to cybersecurity, the biggest threats don't always
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we take you live to beijing. baseball is back with some real notable changes it is finally happening. designated hitter in the national league. a lot of money behind that game on this friday, march 11th, 2022 "squawk box" begins right now. good morning welcome to "squawk box" here on cnbc live at the nasdaq market center in times square. i'm andrew ross sorkin along with joe kernen and melissa lee. becky is off this morning. we will talk about china in just a second and what is happening in asia. s&p is up 18 points. dow up 119 points. treasury yields. the
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