it's 5:00 a.m. at cnbc global headquarters and here's your "five @ 5." ceo sentiment across the country turns decidedly sour and covid curbs easing with a year-long covid strategy. democrats extending their lead in the senate after yesterday's georgia runoff election what the two-seat majority could mean for president biden's economic agenda. plus, housing uncertainty as one of the country's top homebuilders casts a dark shadow

on an otherwise upbeat earnings report. and later blackrock's larry fink facing pressure over the initiatives. we have the full story ahead it's wednesday, december 7th, and you're watching "worldwide exchange" on cnbc. i'm see pla modi at cnbc headquarters, brian sullivan live in the netherlands ahead of europe's energy crisis brian, you've got a great live shot today. >> you know, today is going to be all about the future. let's call it seema. you've probably heard about hydrogen, but what exactly is hydrogen except for the most common element in the universe we're going to talking how shell here at this multi-billion-dollar facility, maybe not the first of its kind, but certainly the biggest of its kind, the most expensive of its kind, and maybe a model for what

the u.s. and other companies around the country are going to do with renewables also, it's the biggest oil refinery in europe it's being converted to what's called green hydrogen. we're going to talk about what exactly that is. you hear gray, blue, green we're going to lay that out. we talk about why hydrogen may be really the fuel of the future because, yeah, we talk a lot about renewalables, solar wind, et cetera. as we know, the sun doesn't always shine, the wind doesn't always blow. the governments and people, they need power that's going to be reliable and on full time and kind of like a gnarl gas or any other kind of a molecule, physical molecule. hydrogen uniquely able to do that there's been a lot of talk about hydrogen of course, from an investing standpoint, shell putting their money where their mouth is we'll talk it more all throughout the hour from the biggest facility of its kind in the world.

seema. >> excited to hear more. that's brian sullivan. we'll hear much more about him in just a moment but first a look at how futures are faring a look at the premarket, dow jones down about 29 points nasdaq lower by 30 as we take a look at what's happening in the bond market, yields have been well below 4% near the 10-year note, slightly higher, but holding onto 3.52% that's the yield if we take a look at energy, oil prices the last couple of days have been inching higher brent crude currently down at $78 a barrel cryptocurrencies, let's take a check there at bitcoin and ether. we're fractionally down by 0.8%. ether down nearly 2% let's go around the world. in asia, stocks in hong kong leading the losses, shedding more than %. losses across the rest of the region, much more muted. and taking a look at the early trade setup in europe, france,

the ftse 100, uk, germany, all trading in negative territory. let's get back to asia and the major developing story overnight in china pippa stevens is here with more. good morning, pippa. >> that's right. the policy covid turn continues. announcing the most sweeping changes to its strategy overnight since the start of the pandemic three years ago, a strategy that's hobbled the world's second largest economy among the new guidelines, china says asymptomatic covid cases and people withed my symptoms can now quarantine at their homes without reporting to an area hospital, which is a major move that could lead to fewer citywide lockdowns and a sign the country is prepared people to live with the disease. lesswhere pinterest has said it's reached a deal with elliott management after an investment group offered up improvements for the company. the manager marc feinberg will

join pinterest's board. and apple is reportedly scaling back its autonomous electric car plans and releasing its data until 2026. the project code name titan has been in a state of limbo for months on the realization the plan is not currently technologically feasible it's being reworked to include steering wheels, pedals, and more restricted self-driving seema? >> thank you. back to the markets and stocks extending their losing streak, the s&p 500 posting its fourth negative session in a row as investors lose hope that the fed will be able to engineer a soft landing joining me now is craig johnson, chief market technician. also good to see you. >> good to see you good morning >> we're days away until the next fed meeting how are markets -- when you look into the internals, how are they trading? >> well, seema, the markets have

been actually pretty strong. when you look at the internals of the market, they've been improving coming off of the october lows we've seen the number of stocks in terms of market breadth, above their 200 day moving averages we've seen an expansion. the challenge is for a lot of investors, there is such a negative viewpoint and perspective coming into the end of the year, that most investors are short. so at this point in time, seema, the trade pain is higher if we get some economic data that comes out next week that it's going to be below expectations in terms of inflation, i think this market has got a real shot to take another hop higher in here. >> what is the core row lags these days between the stockmarket and economic data? i know it can really vary depending on where we are in the economic psych >> good news in terms of the economic numbers at this point in time it's bad news because the perception

among most investors right now is if the economy stays stronger for longer, the fed will have to keep raising rates and it will have to ultimately go higher the interesting thing to think about is what's been happening with the secular change in bond yields it's been a 40-year downturn reversal a lot are expecting inflation to be higher, but when you come back and look at rates, we think they could be coming down and going perhaps as low as 3, 3.25 in 2023 which ultimately would be a catalyst for equity markets. >> unpack that there's some confusion the terminal rate could be hire. yet where we're trading now at 3.5%, does that make sense to you? >> well, i think what it's telling you is that the fed's activities are really actually starting to have an impact, and i think a lot of investors sort of look at the forward sort of expectations of where rates are

going to be through 2023 and it looks like you could see the end of the rate hikes by the time you get to the end of mid-2023 and perhaps even see some cuts. again, that's not my viewpoint that's just what the market has sort of priced in at this point in time. >> four weeks left in the year i can't believe it what sector do you think is best positioned going into the end? >> into the end of the year and into 2023, we actually just upgraded here this morning the industrial sector financials, we took technology from an overweight to a neutral, and we also downgrade health care from an underweight to a neutral. right now in 2023, seema, i would say stay overweight energy and financials i think the big long-term theme to think about in 2023 is really going to be the reshoring trade in stocks like rockwell ought marks johnson controls are going to be really well positioned, we think, in the year ahead. >> craig, we covered all bases

thank you for joining us that's craig johnson. when we come back, much more on china's covid policy shift and the long road still ahead. plus, an exclusive look at europe's energy crisis and one fuel shell is hoping could be the answer to an entire continue continental's problem. >> and later, blackrock on the defensive over a controversial efg. we've got a lot ahead of "worldwide exchange.

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welcome back take a look at gsk, sharply up the company formerly known as glaxosmithkline beating thousands of lawsuits claiming that the heartburn medication zantac causes cancer it was not backed by science others still face similar lawsuits in state courts, but there you go, gsk, up 8%. let's stick with europe in the weeklong coverage of the continent's energy crisis. our brian sullivan joins now with one technology that shell is hoping really could be the fuel of the future, brian. >> reporter: seema, i'm a lot older than you are, and i don't know the last time you did basic chemistry. i think i was sitting at a disk with a ticonderoga number 2 pencil getting a c-minus what i can tell you is what the goal is.

the goal is to create hydrogen as a potential fuel of the future now, this plant is taking natural gas and is effectively stripping out carbon dioxide over here, hydrogen over here, the hydrogen goes through a lot of the pipes that will be used for feed stocks and ultimately fuls northward, you might have an 18-wheeler truck, you might have a car, a ship on the ocean that will be filled up with hydrogen. they're not going to do that until they know they have the supply of the fuel that's why they have this multi-billion-dollar plant shell is building another one of these, slightly different though they're literally going to take the h out of the h2o they're going to take the hydrogen out of the water at the facility they're building here they're using this as kind of a renewables model, and they're investing billions each year how much we had an opportunity to speak with the head of netherlands for

shell. they're going to be using money from oil and gas to build out the technologies of the future listen. >> i think on a global scale shell group invests about a third in energy, that's about 50%. here in the netherlands, we invest already 2 million u.s. dollar as year in the new energy systems, and we're trying to keep up. >> reporter: look at this graphic. there's a lot going on here. it looks like a rainbow. you've got coal, natural gas, nuclear as the power sources for europe we're talking about the transition, seema, but let's be perfectly honest and realistic with ourselves right now the bulk of power is being generated by hydrocarbons and molecules like natural gas shell, and, by the way, others, are going to be taking profits

from the traditional business and building out the renewables side of the business, this, a multi-billion-dollar investment. >> so much excitement around hydrogen they're two industrialized companies specializing on electrolyzers of producing hydrogen, but is it all hype i mean when do we get to the point hydrogen actually a fuel we can use the uk is announcing new deal and getting help with its energy problems. >> reporter: you've got two things going number one, we're going back to the future, i think, seema you mentioned electrolyzer i took the under you win that bet the first electrolyzer was built in 1988. this is in many ways not a new technology neither is the wind, by the way. you talk about wind power, i think the netherlands is known for windmills back in the day, a kum hundred years ago. we're going back in the day. what you reference, breaking

news, and this goes back to coverage yesterday this morning the u.s. and uk announced a new energy partnership deal it involves doubling lng shipments to the uk. uk more desperate for gas maybe than any nation in the european area so this morning the biden administration going really all in again on fossil fuels, making a deal to double lng can exports from the united states to the uk, also talking about promoting nuclear. so u.s. power, u.s. gas, seema, really in demand over here, at least until the hydrogen done. >> brian, i wonder if you can just reflect back to hydrogen. the level of interest in this clean fuel, obviously great interest anywhere you go, i imagine, anywhere around the worlding but in europe specifically given how vulnerable they are on the energy front s that around increase in demand for hydrogen? >> it is and it's expensive shell is taking billions of dollars, one third of their

global money and putting it in new energy they're the only ones who have the capital to build out the technologies others are saying, don't let them get into the transition game because it's their fault we have the transition and climate change and increase in the carbon dioxide in the atmosphere, but shell, exxon, and many others are the ones that generate the income and revenue and profits, seema, that mind fund these facilities look at this again, i have no idea what's happening here, but it's expensive, and it takes a lot of brain power, a lot of human power and human capital and just capital capital. >> that's why we have you on the ground brian sullivan in the netherlands. still on deck, your big money movers and shares of one stock surging ead ahof this mornings's opening this morning's mystery chart

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earnings that were in line with estimates. the company noting walk-in comparable store sales did decrease by more than 2% compared to a year ago shares down nearly 3%. and lastly toll brothers, shares slightly higher the company also exceeding wall street expectations for home sales after strong pricing in its backlog, helping sustain margins for the fourth quarter ceo douglas warning many homeowners are on the sidelines, waiting for a direction of the mortgage rates and overall economy. toll brothers expecting to deliver less homes for the fiscal year, stocks down 36% year to date let's stay on the toll brothers and what it means for the housing economy. ken, always it's great to see you. hearing toll brothers' ceo talking about how home buyers are on the sidelines, i guess we

should expect that given the rising rates, but how long will that last? >> that's the big question for companies like toll it's a question you have to feed the beast, which is bring in new selling communities. they want to get by the end of next year to 380 from like 330, yet new orders were down 56% in the third quarter and the backlock down 7% that's really the engine that draws construction and home deliveries so we're going to see a much slower year ahead for toll and many of the homebuilders. >> but as you point out in your note, as you look across the united states right now, there are certain pockets that are seeing strength, is that right >> that's mostly in the south. that's partly because of the appeal for employment, maybe for taxation but, you know, for toll, a significant part of their revenues come from the higher

average selling prices of the pacific region, and that was down 76% partly because of lower demand and partly because they still -- they need to replenish selling communities and get them ready so they can sell more homes. >> yeah, because for the longest time, the issue was there was a lack of inventory. now you have more inventory coming online. i should pause there ken, are you hearing that construction is being delayed, halted, i guess half maid homes because we're waiting to see when the buyer will come back in >> builders are very good at taking the foot off the pedal, and basically what drives the business is price and pace pace has slowed down significantly as noted so that they then have to -- they're going to create incentives, which is pricing, to bring them back the national association, homebuilders association, over

35% of homebuilders are already doing price incentives. >> ken, here's a question for you. i track a lot of the international travel activity, and right now we're still not seeing that foreign tourist come back in the u.s. the way we saw prepan dem ing i'm wondering how these impacting home prices in the big cities like new york and los angeles that in the past have been very attractive to the chinese torsion the european high-income consumer >> it's a great question about and at harvard university, points that immigration has formed significantly really over the last five or six years it's critical to u.s. buyers but also to the economy in terms of filling the low job competition rate. >> top stock in the home building space, which home builder do you think will do

well in 2023 >> we're right now neutral to negative so one of the scenarios -- and the stocks have done well really since early october. they're up anywhere from 12% to 18%, but it's the scenario will the second half of calendar year 2023 be crossing the valley to a more optimistic improving economy and the fed not raising rates or cutting rates our view is that it's a leap of faith talopping here in decembe as we go into a recession in the first week of next year. for toll brothers, 56% down on net order value. >> wow i guess we just have a couple of months or more to kind of get through this period and then perhaps brighter days ahead. ken, i've learned a lot. we had ken leon, head of cfra. straight ahead, souring ceo

sentiment. some stock picks to make in your portfolio right now. if you haven't, follow our podcast. if you missed "worldwide exchange," we've got you worried. spotify, apple, other podcast apps we will be right back.

stocks are looking to put a stop to their slide as worries grow around the fed's ability to engineer a soft landing. right now futures are lower. but developing overnight, china further easing rules around

covid as officials in beijing look to pivot from highly restricted controls around the covid. we're live with the latest. and gsk backlash claims of hypocrisy. wednesday, december 7th. good morning you're watching "worldwide exchange" on cnbc. welcome back i'm seema mody at cnbc global headquarters brian sullivan is standing by at a shell refinery in the netherlands. we'll get much more from brian in a moment. but let's pivot o our attention to the storks. the dow jones currently down 59 points a at the start of the show, we were down by 30. nasdaq down by 40 and the s&p 500 reporting its fourth day of losses can this market turn around? let's take a look at the bond

markets where spreads have been narrowing. the 10-year yield spreading at 3.5. take a look at the 2-year at 4.35%. draw your attention to oil, which we've been fixating on given the opec decision over the weekend. now down about 1%. brent crude holding onto $78 a barrel natgas higher by 34% let's get a check on the stocks with pippa stevens hi, pippa. >> nbc news is projecting dej carat iic senator raphael warnock has defeated his republican challenger herschel walk never that contest. warnock's projected victory gives democrats a 51-49 majority in the senate and also cements a much better than forecasted midterm election for president biden. blackrock's ceo larry fink is faces calls to resign over accusation of hypocrisy over the firm's focus on esg issues

bluebell capital partners releasing its letter it sent to fink last month. bluebell which hold $2/50 million in assets and is known for waging campaigns against prominent companies argues that blackrock had changed positions several times on investing in thermal coal production in contrast to fink's widely publicized sustainability commitments. and microsoft's president is reportedly heading to washington to try to get the $69 million plan cleared they're looking for a last-ditch effort to keep the deal alive. they're expected to hold a closed door meeting tomorrow to discuss the merge were a potential for a vote on it meanwhile microsoft announcing a 10-year deal with nintendo and call of duty franchise

microsoft says that deal hinges on its closing its activision deal a lot of moves to watch here, seema. >> pippa, thank you. now, to the developing story in china officials in beijing announcing the most sweeping changes to that country's zero covid policy since the pandemic began, leading to fewer citywide lockdowns that has crippled the world's second largest economy cnbc.com's evelyn chang joining us now from beijing. evelyn, it's nice to have you on the show can you lay out the policy changes from leaders over there? >> sure, thanks. great to see you >> they've loosed th dened the when it comes to covid if you're entering a retirement

home or elementary or middle schools, you still need to show some of these proofs this you are not positive for covid, but just generally it seems like things are really moving in this reopening direction. also important for factories and for businesses they're saying that if you're not in a high risk area, which is basically means like a building or a unit in the building, you are -- must keep production the local authorities can't tell you to stop. so that will be really helpful for businesses to keep operating. again, all this comes down to what is the local implementation look like. i think people on the ground are trying to figure out how do we move forward going from here. >> evelyn, it seems now like every week we're getting a new restriction lifted across china. i think a big question for the market is when do we see a full reopening of china when can people like yourself go to a restaurant and dine indoors and not have to show a negative testnd not have to wear a mask

>> i think we're quite aways from not having to wear a mask perhaps in showing a negative virus test, i'm hoping in the next couple of days in beijing maybe that will really be the case you know, we have taisei reporting they're trying to get the vaccination rate for the elder by people, especially those over 80, up to speed by january, the chinese new year. some analysts are hoping maybe in march we'll start to see real changes on the ground in terms of reopening, maybe even reducing those quarantine times for international travelers, but i think as the authorities emphasized today, what's going on right now is not a full reopening. they're focusing on optimizing the measures, making them more targeted and specific, allowing more people to quarantine at home but this is really going to be a slow unwind of all the restrictions that have piled on in the last couple of months.

>> has sentiment turned, evelyn, watching the social media chatter? when you speak to friends across the country, how are people responding to these changes? >> i think there's certainly relief we know that ever since, let's say, mid-november, things have been moving slow ly in an encouraging direction, but it still comes down are they still requiring people to show their code can they go to the gym my swimming pool is still closed it ooh going to take time and people are really waiting for things to change. >> the prospect of protests, i mean, just seven days ago, there were citizens in beijing and other cities protesting, lashing out against these restrictions, but from what you can gather t idea of other demonstrations happening in the future, slim to none, oer still possible >> i wouldn't rule it out

completely, but we had people gathering. the reason we saw more of that public unrest is mid-november we had the central government just like today saying we're going to cut quarantine times, things are going to get better, and then we saw infections surge and more communities locking down we thought, this is different from what we heard, just what our hopes were just a couple of days ago, and so that discrepancy, i think, combined with other things, all this frustration really spilled over to the protests that we saw. so now it's really up to the local mask how are they going to implement the new measures that we heard about. are people going to be able to travel without having to show all sorts of negative virus tests and health codes that is going to really affect the sentiment and really remains to be seen because i don't think there's as much clarity on the

official front of what all of these measures, all these changes are aiming toward. >> so a step in the right direction, but still some confusion around how it's implemented. evelyn cheng thank you. we should point out that some are reopening. alibaba down premarket. let's stick with china and a new exclusive data and hecht supply chain data and growing concerns when it comes to china's supply chain problems. cnbc senior editor lori ann larocco joining us. >> it's down 40% even with these disorders, they're concerned with bottlenecks in january which could stoke inflation. that's because with fewer orders

chinese factories are forced to close two weeks earlier than usual. this means the closures will start in early january seema? >> lori ann, when did we start seeing the lowdown was it last month or a kum of months now >> it's been a couple of months now. we've been reporting on this for a while. logistics managers are telling me normal demand is not expected to pick up until next summer and so these early closers are a challenge because it creates a smaller window to get out their cargo and they have to fight for space on fewer vessels so to add to this capacity constraint, i'm told we're now seeing a slight pickup of orders that means there will be a future elbowing of vessel space, which could lead to higher container prices check out the supply chain heat map for china. available vessel capacity is now

tighter, and the covid restrictions have slowed down the movement of goods on the roads. seema? >> we've been talking about companies diversifying supply chance and creating relationships across asia. are you saying the lines are being redrawn here >> they're definitely being redrawn. it's a big shift from the 2010s. >> wow that is really telling lori ann, thank you for giving us this great report some very interesting data that's lori ann larocco. coming up on the show, more on the energy crisis and replacing fossil fuels brian sullivan is in the netherlands with the role on what renewable energy may play, brian. >> we talked about hydrogen. we'll talk a little bit more about it after the break

but a former colleague of mine, building out and making money off of solar, off of wind. we'll talk about investment strategies taking some money off engy transition. this is next live on the netherlands here on "worldwide exchange." did you know your health has more to do with your zip code than your genetic code?

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why are 93% of sleep number sleepers satisfied with their bed? maybe it's because you can gently raise your partner's head to help relieve snoring. so you can both stay comfortable all night. save $1000 on our most popular sleep number 360 smart bed. only for a limited time. lot's get more on europe energy prices and the race to replace fossil fuels with renewable internal sources such as solar, wind, and green

hydrogen, and whether it's feasible brian sullivan back now from a shell plant in the netherlands brian, take it away. >> reporter: thanks, seema feasible and for how much money, right? that's kind of a knock on hydrogen that it's kind of expensive. but if you talk to companies like shell and others, they say, listen, we don't have an option. these are governments making rules about carbon emissions that we have to follow, and the only way to do that is to invest in renewables. we can have a debate about whether those things are right, but they're happening, so you might as well try to make money on them. let's bring in baldwin hess in charge of renewables, a former colleague of mine. you're now living and working in spain, which is probably one of the main countries that got it right. with a lot of sun and nice offshore wind and siberian peninsula, where do you see the best bang for the renewable

buck >> first of all, brian, great to see you. looks like you get all the fun jobs there in the field in the netherlands. i think we're in a perfect storm, if you will, in europe. the only way is through renewables they're the cheapest, cleanest, the only form of homegrown renewable on the continent of course, as an energy manager focusing on the transition, we're heavying investing half a billion euros 1.5 gigawatts of projects across wind, solar, battery storage, green hydrogen as well we really think that's going to be the medium to long-term solution in europe and a huge investment opportunity, probably

investment opportunity of a lifetime. >> that's a big statement. the cheaper per megawatt hour, is that true without subsidies because people jump in and say no, no, no, they're cheaper if you don't count the subsidies and you have to bury the wind turbines into the ground for the rest of humanity how are they less expensive? >> you could look at it a number of didn't ways first of all, zero marginal costs, that's tough to compete with number two, even if you compare us with apples to apples energy calculation, i'm looking at costs where large-scale pv, onshore wind are at or below any other form of energy resource. and even if you layer in long duration batteries, which is now the trend, you're extremely competitive. so, you know, when we spoke ten years ago about subsidies, they still exist in some markets in spain for instance because where i'm based, we're looking at a lot of merchant plants that are basically the norm, ppas, very

little to know subsidies behind them so, yeah, we're bullish. they're cost-effective, they're green, and they're going to solve this problem. >> isn't, though, the knock -- you talked about battery storage. maybe tens of billions in offers there, maybe the united states getting into the long-duration storage, but long duration is sort of in the eyes of the beholder now, isn't it, balduin? where do you see the battery opportunity going and how long can long duration actually be? >> so i think that's been the big knock on renewables. it's intermittent, it's crazy, but we've moved a lot of waste since ten years ago when batteries started showing up costs have come down they're about 100 bucks per kilowatt hour now. we're looking in the u.s., four-hour duration batteries that's become best practice. it's showing up in some plants in europe. so we're moving toward renewable

energy that's dispatchable or semi-firm instead of completely intermittent nnlt. obviously we want to get to fully firm, fully dispatchable, and that's a question oframpin up longer duration batteries in projects, but we're starting to be able to firm and shape the energy and so i see hybridization of plants, i also see standalone storage. it's a combination of wind, solar, and battery storage. >> and those governments are pushing it you're in the netherlands,'re in spain, you call it the opportunity of a lifetime. it's good to see you again even though i can't actually will i see you. thank you very much. you know, see mark i think balduin laid it out pearly sit hydrogen no is it wind not always those cruise ships you cover,

those giant buffets, that's kind of where we're going with energy going to be all-you-can-eat type of approach. >> you have to see what works. great stuff. we'll see you very soon. that's brian sullivan. on deck, jenny harirington joining us in moments telling why she's staying bullish despite sour sentiment we heard yesterday and the beaten up tech mehat's on her shopping list we're back after this. and start crunching a year's worth of transactions against thousands of compliance controls with the help of ai. now you're making smarter decisions faster. operating costs are lower. and everyone from your auditors to your bankers feels like a million bucks. let's create smarter ways of putting your data to work. ibm. let's create ♪♪ i got into debt in college and, no matter how much i paid,

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cnbc, fritz and dimon and mcmillon all with less than rosy outlooks for the year ahead. joining me now jenny harrington. she's also a cnbc contributor. jenny, good morning to you i don't know about you i like underpromised and overdelivered. i wonder if you're trying to do the same here. >> i don't know. i think they're probably being pretty genuine, at least with the group you lined u. my guess is they're actually trying to take the jay powell route, which is pave the way, you know, pave the road and get people ready for it. >> yeah. we're one week away from the fed decision we sort of got a look from jerome powell, what his outlook is on the economy. he even said last week, jenny, a soft landing is achievable what changes are you making to your portfolio do you believe him

>> that's a big question i'm not changing my portfolio. let me try and tie it all together the reality is, no, i am not bullish on the market. as my partner greg always says, and i think this is simple but profound, which is, hey, this is a big market the best thing is we don't need to buy the whole market. what i think is going on now and where i diverge in my portfolio or the gillman hill portfolio, there's a dividend portfolio and i'll throw out some names there, but where i die veg between the ceo's negative sentiment not on the market but the foips that we manage is exactly that it's a big market and you don't need to choose, and none of the strategies we manage are based on the next two weeks and what jay powell says. what we say is, okay, here's what we know from the fed. rates are going to be higher we all know it's 50 basis points

in december. i really don't know what his rhetoric is, whether that swings in the market. i don't really care. you know, i care because it stinks to lose money in the short term but as a long-term portfolio manager, we're just normalizing. i take all that and say, you know what? here's what i actually care about, the fact that the risk-free rate now is higher than it was and it will probably be higher for longer, and that adjusts the valuation work we do we need to be pickier and choosier getting back to those ceos versus my more upbeat outlook or my thought that even if we get a soft landing, if we don't, you know, if we have a nasty recession, who knows, if it's easier, i think we can still make money, and that's because you can look at companies and this is from the growth strategy you can look at companies like uber who are already down significantly, and they've become very competitive, and they're saying, hey, we need to make money you know what's going to happen?

their free cash flow is going to explode. they're going to create $3 billion in 2023. $4.4 billion in 2024 i want to buy this now and be well ahead of that, and i don't really care what union pacific and jpmorgan say that's independent of what i see. >> sort of finding stocks that are continuing do well in this environment. you mentioned uber i want to get your thesis on jetblue, which i know you're a long-term owner of. >> jetblue is the same thing there's this enormous asin asynchrony jetblue, they may say, consumers are vague tough time that's where you hear walmart. but they're spending hand over fist on trarchlt jetblue has been really good on pricing, which stinks for me. i wanted to go to florida with

my daughter a couple of weeks ago, but tickets were $800, so i didn't go. you jetblue trading at $8 a shafrmt 62 cents in 2023 they're going to earn $1.48 in 2024, which puts them in six times multiple on 2024 earnings. meanwhile they were earning $2 a share before the pandemic do we think they can get back there? absolutely there's opportunities out there, and let's see. who was it one of the ceos yesterday said, hey, if i didn't have to be on cnbc, it wouldn't be in my dialect. yeah, yeah, yeah so i think that's really important is there are 7,000 publicly traded stocks out there. they're not all having the same experience at the same time, and i think we need to move away from the past decade of passive investing, index investing, rising on all shifts, and we need tole appreciate it's stock picking management with that, there's money to be made. >> clearly

you've laid out some of the names. that's jenny harrington. thank you for joining us. let me get back to brian sullivan who's live in the netherlands with what's ahead on this busy day, brian >> i want to have final thoughts this is a final look at where your electricity in the uk is coming from. right now in the uk, it's 63% gas, nuclear, or coal. renewables, that left side, is getting bigger, but let's be realistic about where we still stand right now. that's where shell is coming in, working on this. yes, i understand the knocks on high jen it's effectively a giant battery. it's expensive to produce and hard if not impossp to ship. i get. that governments here and probably soon governments in the u.s. on the state level like california and others are going to mandate -- they're going to force certain changes. that's why companies like shell

are investing billions all day on cnbc we're going to talk about that transition wrrk the opportunities are and not. we'll see you in a bit seema, thank you very much. >> brian, we'll see you very soon that does it for us here on "worldwide exchange. thank you for joining us "squawk box" is next for silver. harness the power of 7 moisturizers & 3 vitamins to smooth, heal, and moisturize your dry skin. gold bond. champion your skin. well, we fell in love through gaming. but now the internet lags and it throws the whole thing off. when did you first discover this lag? i signed us up for t-mobile home internet. ugh! but, we found other interests. i guess we have. [both] finch! let's go! oh yeah! it's not the same. what could you do to solve the problem?

we could get xfinity? that's actually super adult of you to suggest. i can't wait to squad up. i love it when you talk nerdy to me. guy, guys, guys, we're still in session. and i don't know what the heck you're talking about.

good morning new overnight, china scrapping most of its covid testing and strict quarantine rules. the futures must be short. they're down i thought this is what we wanted oh, i forgot the fed. this time it's at the national level. meantime stocks coming off another down day the nasdaq dropped 2% on top of the day before's losses in yesterday's sessions. >> and democrats extend their lead or i should say take the lead in the senate after

yesterday. i guess 50-49, not 51-49 in the georgia runoff, we'll talk about what that means for the president's economic agenda. it's wednesday, september 7th, that's a day that will live in infamy. george h.w. bush talked about december 7 it is pearl harbor day if you're alive, you'll never forget i wasn't, but i heard it from my dad. we begin right now ♪ good morning, everyone welcome to "squawk box" here on cnbc we're live from the nasdaq market site in times square. i'm becky quick along with joe kernen and andrew ross ski