Skip to main content

tv   Worldwide Exchange  CNBC  February 13, 2023 5:00am-6:00am EST

5:00 am
it is 5:00 a.m. on wall street here is the top "five@5. from payroll, inflation is still on the head of the fed developing over the weekend. u.s. shooting down a fourth high flying object. could this unidentified situation be a threat to your money? too little too late with goldman sachs's david solomon talking about the biggest job cuts in years. and what investors are doing for the first time since 2016
5:01 am
that is turning heads on the street later on, one for the record books. kansas city chiefs beat the philadelphia eagles to claim the second super bowl win in four years. it is all happening on monday, february 13th. this is "worldwide exchange. good morning good afternoon or good evening. welcome from wherever in the world you may be watching. i'm brian sullivan before we get started on the official show, a quick shoutout to the kansas city chiefs and all your fans. you are 2023 super bowl champs a textbook second half and looked like a painful 26 yard scramble from patrick mahomes to keep his team in the game and gimpy ankle. it would be a touchdown and
5:02 am
penalty that would decide the game final in arizona. chiefs 38 and eagles 35. if you stayed up and watched the whole thing and watching or listening live to "worldwide exchange" right now, we feel you because we did the same thing. it could be a long day stilling worth it. all in all, a fantastic game the ads? not so much. the game really good. more on that in a bit and throughout the day here on cnbc. right now, let's do what we do and kickoff the hour with the check on stock futures and how your money is looking right now. it is mixed. we are seeing nasdaq futures up 27 dow down 20. this after the first rough week for the year every major index ended with a loss nasdaq snapping a five-week win streak in bonds, yields may be down a touch right now. they were up from where they
5:03 am
were a week ago. 10-year treasury 3.73% you are likely to see mortgage costs and auto loan costs continue to rise inflation in borrowing is the highest in decades oil is turning lower it jumped 8% last week you have china's reopen and demand growing in certain parts of the world right now, the price of wti crude here in america is still below $79 a barrel $78.66 like stocks, bitcoin and ethereum coming down the last couple days. bitcoinis at $21,600 that is what is happening here let's get the check on the overnight action in asia and europe withjulianna tatelbaum who is standing by in the london newsroom julianna, good morning brian, good morning. i wish you the best as you try
5:04 am
to make it through the day on little sleep as for the market action over here, we have a fairly negative handover from asia in particular the nikkei 225 market pulling back 0.9% as investors brace for the new governor nomination tomorrow investors have been dialing back expectations of big change in policy with inflation accelerating, there is the possibility that down the line ueda could finally set the bank of japan on the path to change policy and begin raising interest rates let's look at the yen and how the currency is faring right now. we have some yen weakness. dollar trading firmly. up .90%. keep an eye on japan in the overnight session that is to come shifting to europe we have green across the board
5:05 am
in contrast to the pull back of asia the dax up .30%. cac 40 in france up .60% we got interesting forecasts out from the european commission this morning they lifted the growth forecast for the region now say the euro sigzone will a recession this year and inflation has paeaked. we get data out this week. brian. >> a lot there a lot here as well julianna, thank you. let's get a check of the key headlines on monday, including good news on the jobs front in michigan with the battery plant. pippa stevens is here with that and more pippa. >> brian, ford is expected to announce a plan to build a lithium battery plant in michigan reuters stating that could come today. ford will own and operate the
5:06 am
plant with the chinese battery maker as the partner it is expected to eventually employ at least 2,500 workers. metadelayed the budgets of multiple teams as the company prepares for more cuts the financial times citing to meta employees there has been lack of clarity. meta cut 11,000 jobs in november. markets have had a good start to the year, but investors are exiting funds that track u.s. stocks. data shows they pulled $31 billion from mutual funds and etfs in the last six weeks the longest streak since last summer the most pulled from domestic stock funds to start a year since 2016 over the sabineme period, they funneled to international equity funds and $24 billion in taxable
5:07 am
bonds. brian, investors are looking abroad >> yes, they are as julianna said, inflation and fed and central banks are all a global story pippa, see kyou in a few moments to a developing story and be one we are watching closely. it cap stractivated the nation for the fourth time in nine days, the united states military shot down what they called an unidentified high altitude flying object. the latest over lake huron between michigan and canada at the direction of president biden. we hhave brie jackson in d.c. with what we know and what we don't. brie >> reporter: good morning, brian. a lot of questions surrounding the flying objects the pentagon is declining to
5:08 am
describe these as balloons this is the fourth takedown as we have seen recently. lawmakers are left in the dark about the situation. the u.s. military shooting down a fourth unidentified high altitude object on sunday. this time over lake huron. >> what has gone on the last two weeks or ten days has been nothing short of craziness the military needs to have a plan to not only determine what is out there, but determine the dangers. >> reporter: president biden ordering the takedown after the military concerns about the object's path and altitude it was a safety hazard and threat this marks the third object blasted out of the sky in three days and commenes a week after chinese balloon was shot out of the sky.
5:09 am
>> they seem trigger happy this seems permissible over the chinese spy balloon over the sensitive sites. >> reporter: military leaders say the pentagon has been scrutinizing air space. officials are collecting data to determine what the recent objects are as bipartisan calls for transparency grow. >> why it is taking so long to identify these objects why it is taking so long to be shot down? >> people's anxiety leads them to potentially destructive areas. i hope the administration has a lot more information for all of us on what's going on. >> reporter: lawmakers are pushing for a briefing on the unidentified flying objects. the pentagon is searching for answers about the nature and purpose. officials say there was no indication of aliens with the recent takedowns brian. >> the fact they are answering
5:10 am
that and addressing the alien part is fascinating. why does it seem, brie, all these things, i geesuess one waa balloon. the others could be balloons or something else why are they all suddenly appearing in any official word on this? >> reporter: no. it is unclear. officials tell nbc news that the norad command is looking at more data now than ever before. it could be that these latest objects were always there. we are just now seeing them. officials continue to investigate this and are looking through the debris and trying to figure out what these objects are and where they came from brian. >> you wonder, brie, if there is another one, as opposed to shooting it down, track it and keep it safe so there are no planes maybe try to catch it or capture
5:11 am
it to study it further brie jackson thank you very much. weird. without any information, it allows all kinds of crazy stuff to go around. all right. we have a lot to do on this busy monday when we come back, exclusive one-on-one conversation with jpmorgan chase chair of global research joyce chang her understanding of the markets and her team putting your money to work. and lord john browne is here to talk about the millions that europe is spending on green energy we have big guests ahead nasdaq up a bit. "wex" rolls on after this.
5:12 am
♪ at morgan stanley, we see the world with the wonder of new eyes, ♪ helping you discover untapped possibilities and relentlessly working with you to make them real. ♪ because grit and vision working in lockstep ♪ puts you on the path to your full potential. ♪
5:13 am
the eagle has landed. puthat's one smallth to ystep for man...ial. hey, what's up? -one giant... uh... houston... we have a situation. how did you get here? you're characters in our video game! video game? yeah, it's what we can do with the xfinity 10g network. basically, the greatest achievement since the moon landing. i think they're talking about us. i know. you can play from anywhere. -yeah, i'm in the basement. i'm at the dentist. check this out. it's super smooth even when everyone's online. whoa, can i try that? you're in the game! what the heck is that? those are the bad guys. -are they friendly? nope! ok, here's the plan. on the ship there's some wire cutters, some tubing and rubber bands.
5:14 am
now with our know-how and some elbow grease and a little bit of luck, i — you're probably going to want to start running. the next generation 10g network, only from xfinity. one giant leap for mankind. welcome back good post-super bowl monday to everybody out there. after a big start to the year, the stock market rally starting to fizzle out and if so, is it because the investors are coming around to what the fed is telling us, sorry, beating us over the head, that the rates are 5% and not cut this year and maybe not next year. we just got a revision to the december numbers that inflation is hotter than we thought. that could be confirmed with new inflation data on the consumer
5:15 am
side and producer side this week with that in mient, nd what do we do? we bring in vance howard are you powering through on caffeine and luck? i don't know if we should be surprised by last week and suddenly the calendar flipped and every stock everybody sold last year was the brighgreatest the world? >> people are bearish. take the negative news out went positive for the first full-time which means the trend changed. we have been buying the pullbacks. inflation is out there and the fed is doing their job to control it, but there are wonderful things going on and wonderful companies making a lot of money we see a tremendous amount of opportunity here, brian. i'm bullish.
5:16 am
you know, everybody is negative. i'm bullish. the line is positive the trend turned back up brian, to be successful at this, you have to do what is not comfortable sometimes. >> yeah, it wasn't comfortable last year. all of a sudden, everything changed. tax selling or garbage buying. a lot of the worst companies rallying you know, we love to talk about cnbc, vance, about apple and tesla all the time a lot of great companies out there we don't talk about. one of those, you think, is a new jersey based refining company. it is called pbf energy. you think that is a good bet >> you know, brian, it plays into the theme of small cap and midcaps will do well this year they a good refinery we think oil and gas is good this year. they are paying a dividend and the balance sheet looks strong
5:17 am
it will break back up and push into the $55 to 6$60 range in te near term. we think it is a bit different brian, we talk about the big stocks like nvidia, but it has run a bit. pullbacks are viable here is a mid-cap that we think is investable with legs. >> another is a boise cascade. i'm not sure i mentioned boise except in reference to idaho in a couple of years. >> one of the largest manufacturers of wood products we think housing will be tight we think the construction sector will have a good year in 2023. boise cascade is a good way to play it has a good balance sheet. a strong and well managed company. people need to look at it.
5:18 am
from the technical standpoint, it is ready to shoot up higher >> vance howard, we appreciate you getting up early post-super bowl when they booked you, did you realize it was the monday after the super bowl did you think what did you do? >> i thought about it like you, brian. my next pot of coffee and i'll remember this this morning >> i was scraping off the eagles face paint hours before the show >> thanks, brian >> boise cascade and pbf thank you, coffee. on deck, what goldman sachs ceo david solomon is telling his staff about the biggest job cuts in years then we will have lord john
5:19 am
browne with us to talk about the energy woes and the issues that europe is facing a lot going on grab another cup of coffee for yourself we're back after this. technologists in india, and customers all on different systems. you need to pull it together. so you call in ibm and red hat to create an open hybrid cloud platform. now data is available anywhere, securely. and your digital transformation is helping find new ways to unlock energy around the world.
5:20 am
[music - cover of blondie's “dreaming”] and your digital tran[music playing]elping
5:21 am
♪ imagine something of your very own. ♪ ♪ something you can have and hold. ♪ ♪ i'd build a road in gold just to have some dreaming, ♪ ♪ dreaming is free. ♪ accenture, let there be change. welcome back let's get a check of the other big stories in addition to the super bowl victory by the chiefs frances rivera is in new york with more.
5:22 am
powered by caffeine and good faith this morning like we all are, frances >> that is the case, brian good morning the chiefs are the super bowl lvii champions toppling the eagles 38-35. history made at state farm stadium where jalen hurts and patrick mahomes were the first two black quarterbacks to face-off in the game records were set including the longest punt return the eagles jalen hurts was the first envnfl player in history o run and tlhrow for touchdowns. he beat steve mcnair's 2000 record the eagles led in the second half, but the chiefs stormed back with a field goal >> for the lead.
5:23 am
up got it >> and despite playing with an injured ankle, mahomes threw for 182 yards. he took home the mvp and became the 13th quarterback to win multiple super bowls rihanna had a show stopping performance for the halftime ♪ are. >> she worked her way through 12 fan favorite hits. "we found love" and "umbrella" and "diamonds. her representative confirming she is pregnant with her second child after cradling her baby bump which got everybody talking. she confirmed it that was her big news. now for kansas city, a lot
5:24 am
celebrating with wednesday being the big parade day brian. >> yeah. philly is bumming. scenes of people despondent in the streets. frances rivera, thank you very much >> sure thing. still to come on cnbc, former bp ceo lord john browne with the state of the energy markets and what europe could learn from the united states first, we are watching shares of adani group this morning. moody's cuts outlook for four of the adani companies. among the companies on the chopping block for moody's, green energy and transition and electricity mumbai "worldwide exchange" is back dow futures off 44 we're back after this.
5:25 am
(♪ ♪) how do we demonstrate our unmovable strength? (eagle call) nope. how do we show that we'll stand tall through the storms? nah. (thunder) how do we make our clients feel secure and- ugh... not lions. (lion rumbles) we do it with our people. people who've been looking after people for over 170 years. the eagle has landed. that's one small step for man... hey, what's up?
5:26 am
uh... houston... we have a situation. how did you get here? you're characters in our video game! video game? yeah, it's what we do with xfinity 10g. it's like, you know, the best network imaginable. what the heck is that? those are the bad guys. are they friendly? the 10g network, only from xfinity. one giant leap for mankind.
5:27 am
gearing up for another busy week with the latest read on inflation high on the docket exclusive conversation with jpmorgan chase's joyce c hhang. the military shoots down a fourth bizarre unidentified flying open. americans want answers goldman sachs ceo talking
5:28 am
job cut regrets and not taking an axe to head count sooner. the surprising comments on this monday, february 13th. this is "worldwide exchange. welcome or welcome back. good post-super bowl monday morning. i'm brian sullivan thank you for joining us reminder, tomorrow is valentine's day. we have super bowl brain, but, you know, tomorrow is valentine's day. prep let's see how your money is prepping to shape up on this monday that is a mixed trade. no indication. nasdaq futures up 25 dow futures down 44. at this point, flip a coin and see which way the market will go by the way , we are coming off the first down week for the year a red hot start to the year.
5:29 am
inverse what happened last year. last week, the down week for 2023 bond yields and borrowing costs keep going up. inflation does remain red hot. 10-year treasury ticking up 3.73%. up about 10 basis points from last week. that means mortgage costs and car loans are likely to rise a bit in the days and weeks ahead. something to pay attention to if you want to borrow a big chunk of money goldman sachs ceo out with interesting comments and another cryptocurrency exchange getting attention. pippa stevens is here with that. brian, gooldman sachs ceo says he wishes he made the decision to slash jobs sooner rather than later. david solomon told a private gathering of executives he takes responsibility for not being
5:30 am
more aggressive in slowing hiring and reducing head count last year adding that every bond in his body was telling him to do so. goldman announced 3200 jobs cut. nikola is working on hydrogen plants for the trucks in canada. nikola is working to have fuel for 7,500 sttrucks by 2026. the s.e.c. told the crypto firm paxos it will sue the s.e.c. alleges that binance asset that paxos issues and lists is an unregistered security and binance ceo said paxos has been ordered by new york state
5:31 am
to stop minting stablecoins and the reserves are fully covered brian. >> more attention. not in a good way. incr incredible pippa stevens, thank you to europe now and a warning from germany, denmark and five other european union nations they are calling on brussels this morning, the capital of the eu parliament, not to rush into major changes to the bloc electricity market that in response to the energy crisis, which is still ongoing the eu is drawing sweeping changes to protect consumers from fossil fuel price spikes and avoid the repeat of the surge of utilities after the russian invasion of ukraine. the problem was well before that this is as european governments
5:32 am
spent $850 billion and rising to deal with the current crisis up 12% from the year earlier and nearly equal to the eu $800 billion covid recovery fund. costs for the european energy crisis will go up over what they spent on covid joining us with more is lord john browne. lord browne, good to have you on i will see you at the conference in houston in a couple of weeks. is the energy crisis, and by the way, we have been great. weather is better and storage is better than everybody expected we will have natural gas to get through the year that is good news. lord browne, is the energy crisis morphinging into a finana crisis >> we will see a financial
5:33 am
redist redistribution energy producers, notably the state oil producers and states with oil and gas will be getting more cash flow than they ever expected to get. we see this crisis still around because demand is still picking up post-covid. notably in china we have demand rising and supply being very tight so far so good you know, we take it step by step over the year in particular to the end of this year. >> it is good. the storage levels are good, although, again, we are counting on weather perfection. i'm not sure anybody predicted that mother nature would cooperate the way she has. it was nearly 60 u.s. degrees in new york city a couple days ago
5:34 am
which is mid-february which is unheard of how long can europe continue to spend this kind of money what if this goes on for years >> well, it won't go on for years, i don't think in the end, there will be supplies opened up and more transportation of energy from places that have it to europe. for example, and to the uk this will not go on for years. this is a one-to-two-year problem that will sort out it changes the whole mix of energy that people will want so, i think that's something that will, in the end, cure. weather is unpredictable and certainly with climate change being close to a critical point
5:35 am
and it is very unpredictable very unpredictable indeed and not to say the temperature will be higher, but would be lower as in the u.s. recently and it happens all over the world very unpredictable >> what is predictable, lord browne, is human response and ritiscence of change i was in the uk prior to the ukraine invasion this is -- the yarussian invasin made it worse. i was in germany and they were talking about more wind turbines in the northern part of the country. there were so many permitting and regulatory issues and public opposition that they could not build the power lines to get the wind power to the richer
5:36 am
southern part of the country you know, i laughed sarc sarcastically because that happens in the united states you may be familiar with nimby not in my backyard how will we get anything of significance >> people understand where the issues are you have to wait for a long time to get a wind farm offshore in the north sea connected. there are bottlenecks with regulation and the ability to cable and ability to get from local distribution company to the national grid and back again. so lots of issues around it has to be sorted out. otherwise productivity in the area will get worse and worse. the electricity grid was never as sorted out or designed to do what it is doing at the moment there needs to be a big
5:37 am
infrastructure investment to get the flows in the right direction and get the issues sort out. there is not enough money going in at the moment there will be, i believe, as the pressing need becomes so apparent the other thing is it is not just supply of electricity and other forms of energy, but it's demand as well every day we go around a city and there's useless lighting lots of office building with nobody in them fully lit. lots of people idling in cars. lots of people, you know, spending time doing things during the day that could be done at night to level the demand lots of things need to be sorted i think there will be tools and techniques to allow people to do that demand management. >> let's hope human behavior is
5:38 am
able to be overcome. see you in houston thank you very much. all right. $800 billion folks extra spent on energy. coming up, the latest developments on the story captivating america. another unidentified object flying over the american air space. eamon javers is here with what ybwhe isoefrwhat we don't and mae erth gs om here. stick around e told our concerns are all in our head. here, we don't think we should pay more than men for the same thing. or pay taxes for period products. here, we can ask tough questions, day or night. and here, we're actually heard. and because of that, we can focus on getting healthier together. together. here, healthier happens together. cvs health.
5:39 am
dad, we got this. we got this. we got this. we got this. we got this. yay! we got this. we got this! life is for living. we got this! let's partner for all of it. edward jones (vo) with their verizon private 5g network, associated british ports can now let's partner for all of it. precisely orchestrate nearly 600,000 vehicles passing through their uk port every year. don't just connect your business. (dock worker) right on time. (vo) make it even smarter. we call this enterprise intelligence.
5:40 am
5:41 am
welcome back to a developing story and one we and much of america is watching closely for the third time in four days the military has shot down an unidentified flying object the latest between michigan and canada over lake huron fighter planes were deployed to eliminate the object eamon javers is here with me we went back and forth with this over text yesterday. >> reporter: brian, the f-16 fighter jet fired a single the side winder missile yesterday dropping the object in the lake huron over michigan. there is no explanation for what the object was other than the
5:42 am
description of the object with strings hanging from it and no discernible pay load it was traveling at 20,000 feet. the military will recover the object from the lake waters in the coming days. it is unprecedented number of encounters started on february 4th with the surveillance balloon was shot down over south carolina and then another object over alaskan air space. that is roughly the size of the small car. on saturday, the fighter jet shot down the object over canada it is not clear where the latest three objects came from or who sent them or the intent of the objects. it seems clear the white house is under pressure to provide answers to this as the week goes on brian. >> i have 100 questions and not
5:43 am
enough time. are we going to get -- when can we expect to get real information? they are having the press conferences not on camera. pentagon giving us basic facts the u.s. government, as far as they are telling us, are just as confused as we are >> reporter: yeah. they are not offering any real explanations here. part of the challenge is that u.s. and canadian forces need to get to the areas where these objects were shutdown in the north. it is so cold and remote up there, it will be a challenge. we also have a challenge of fishing it out of lake huron in the middle of february that is a difficult challenge. more answers waiting for that. we saw one of the top generals who was asked yesterday, look, are you ruling out aliens here he said i'll leave that up to the intelligence community i'm not ruling anything out. the pentagon walked that back
5:44 am
after that general said that and said, we don't see any indication it is aliens. it is not that maybe not that that's it. the chinese government last night said they have no information on the three unidentified objects either. take that for what it's worth. >> they claimed to shoot down one themselves we launched a century aircraft the satellite dish with the radar on top i followed it on flight radar. we launched a tanker refuelling plane. we fire up an f-16 and it is $400,000 we are spending a lot of money on this. these airplanes have significant camera capability. i find it and i spoke with two aviation executives yesterday. including one former naval pilot. i find it impossible to believe
5:45 am
that the government does not have the video from the fighter jets no way the fighter jets are going up and blowing these things up without taking a look at what they are and maybe getting something on camera. is it possible, eamon, we could get some video of these soon i can assure you we are not blowing these up, according to people that know military tactics and aviation, without getting a check and filming then and try to understand what they are further. >> reporter: for the basic reason you want to be sure they are unmanned before you shoot them down. you don't want to accidentally kill somebody. >> i'm on the way to new mexico. >> reporter: exactly you can't have that. they have to take a good look. the government has not released anything in terms of pictures or intelligence or details. they are waiting to get the wreckage to really look at it so they understand what they are dealing with to put it in context, brian, of
5:46 am
the ufo report in january. the u.s. government said there are unidentified flying objects in u.s. air space. 171 they are looking at as unidentified incidents where u.s. military pilots reported seeing these objects in the air and not shooting them down in the last year. seeing them. the u.s. military is stumped about what they are. it is a mystery. brian. >> theory out from china testing our radar to some promotional thing for the unidentified atmosphere ad. >> maybe -- >> that is not it. the internet everything is out there. eamon javers, thank you. during february, we are celebrating black heritage with teammates and contributors and cnbc teammates
5:47 am
we have deborah lee with more. >> growing up in the seeing reg -- seei segregated south made me proud of my heritage and proud of my history and one of my greatest desires was to be successful and to be able to give back to amy community. m oubeg leo that. i hope it has an impact on the rest of the world. [music playing] ♪ imagine something of your very own. ♪ ♪ something you can have and hold. ♪ ♪ i'd build a road in gold just to have some dreaming, ♪
5:48 am
♪ dreaming is free. ♪ accenture, let ♪here be change. ♪ a cyber-attack can grind everything to a halt. cisco security keeps your company moving forward. because if it's connected, it's protected. cisco. ♪ old school wisdom, with a passion for what's possible. that's what you get from the morgan stanley client experience. you get listening more than talking, and a personalized plan built on insights and innovative technology. you get grit, vision, and the creativity
5:49 am
to guide you through a changing world. ♪ welcome back we have the latest look at the europe economy tomorrow is the consumer inflation number after revised data last week which shows inflation is hot wednesday is retail sales and
5:50 am
industrial production. on thursday, more inflation data on the production side producer price index and earnings and john deere's numbers out friday let's tie it all together and welcome in joyce chang at jpmorgan chase joyce, welcome back. good to have you on. i'll ask a question which i can't imagine having asked you or anybody else because it is bizarre. i have to which is you just heard our prior segment with eamon javers is it possible that if we find out this is a thing coming from the chinese government -- all these objects -- is it possible this situation does become a market mover if it ramps up geopolitical tension or is that completely bonkers >> i think this is going to ramp up tensions.
5:51 am
it already has to some degree. they really had come down after the g20 summit the sense that the biden administration was trying to bring down the tension the longer this goes on, the more the questions will come out about that the visit postponed by blinken and other things delayed and postponed. i don't think this will leave our radar as easily as we thought when the whole issue first emerged. the tensions are going to stay with us over the medium and longer term. this is a strategic competition. it is focused on national security and military issues and the defense issues and tech issues i don't think this is necessarily going to leave the headlines that easily. >> okay. thank you for not telling me my question was insane. you have the crazy situation going on we find out it was some kind of
5:52 am
chinese excursion or whatever radar testing it may be. you wonder you wake up and dow futures are down a couple hundred points outside of that, assuming this goes away, what is the most important thing, economic number or event to you and your team? >> look, we are overweight on china equities and reopening trade is one that has quite a lot further to play out. now we are looking at growth in china for the year at 5.6% that's materially higher than what we thought before a lot of the tourism and travel and commodities stand to do well here what we are seeing is the china reopening is more durable than the european lift and there are more concerns about the u.s. right now and we may get a slowdown, but the pause will take longer and we will be looking at a terminal rate that needs to move higher with the
5:53 am
focus on the strong u.s. economic and inflation data and pressure >> if we get the -- we had the revision for the december inflation number we got that revision last week it showed the things were not accurate because inflation state hot. joyce, what happens tomorrow? i know you are not a short-term thinker. what happens with the cpi number that comes in red hot and what happens if the cpi comes in ice cold >> we are looking at more fed hikes. 25 basis points. you could reinvigorate the terminal rate and be where it needs to be. is it possible it needs to be higher than 5% you have the bumper jobs report in january that raised hopes that the u.s. economy avoided recession. i think the question is are you going to need more tightening
5:54 am
here ahead the signaling and communication needs to reflect that. we have seen treasury yields move higher over the last couple of days and that could continue. >> yeah. that's going to be the theme okay, we got more rate hikes in the forecast in march and one in may and theoretically we're done 5.5% terminal rate then what, joyce we are always looking for the next thing the fed will come off the headlines and rate hikes will be over what is the next 12 months after that going to be focused on? >> i think the market will ask was the first quarter of the year the high point? will we see the earnings come down here? we will see the excess savings come down as well and looking
5:55 am
for slower growth even if the economy avoids recession the question may be did we have the very front loaded rally because we had a number of turning points that were unexpected china's risk to reopening and the warm winter in europe and lower gas prices also in japan, the surprise move where the stronger dollar story has gone through some revisions. i think many people may ask the first quarter was necessarily a high point we see some of the medium and longer-term risks with slowdowns and profit margins coming down in the second half of the year >> yeah. here's what i worry about, joyce. i look at consumer credit data and maybe i'm scarred still from the financial crisis and what have you nearly $1 trillion of revolving credit much of that is credit card. auto loans mortgages.
5:56 am
most of them are fixed i get it the inflation on the consumer credit side. i know we have wage gains. are the wage gains enough to mitigate the massive jump in just debt service costs that americans are likely to have in months, quarters and years ahead? i don't see how we keep putting everything on credit cards forever. am i being chicken little? >> no. look, the consumer is still in the stronger position than in 2019 remember, we had the massive excess savings cushion more than $2 trillion at the beginning of last year. this has come down by the second half of the year, that will have been really evaporated i think you are right to focus on just the strength of the consumer that is ultimately what will determine whether we have a recession and what kind of
5:57 am
recession that will be the excessive savings cushion has been a buffer in the last year >> joyce changthk yo, anu. that does it for us. "squawk. starts right now 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 for businesses of all sizes, there are a lot of choices when it comes to your internet and technology needs. when you choose comcast business internet, you choose the largest, fastest reliable network. you choose advanced security for total peace of mind. and you choose a next generation 10g network that's always improving,
5:58 am
getting faster; more reliable; and more intelligent to keep you ready for today and tomorrow. the choice is clear: make your business future ready with the network from the most innovative company. comcast business. the eagle has landed. that's one small powe step for man...es™. hey, what's up? uh... houston... we have a situation. how did you get here? you're characters in our video game! video game? yeah, it's what we do with xfinity 10g. it's like, you know, the best network imaginable. what the heck is that? those are the bad guys. are they friendly? the 10g network, only from xfinity. one giant leap for mankind.
5:59 am
good morning a new week for the markets which goes without saying. it's monday. new inflation data on the way. that could be moreimportant. what investors need to watch as reports slow down. another high altitude object shot down. the fourth time in the last nine days the military implications and what this means for rising u.s. and china tensions. the chiefs win the super
6:00 am
bowl in the high scoring game. if you took the over, i didn't, you won. if you took the eagles, you didn't win it's monday, february 13th the day before valentine's day don't forget "squawk box" begins right now. good morning welcome to "squawk box" here on cnbc we are live from the nasdaq market site in times square. i'm rebecca quick along with joe kernen and andrew ross sorkin. yeah, we're up we watched most of the super bowl >> three quarters. >> you know -- >> exactly three quarters. >> more people call in to work sick today than any day of the

83 Views

info Stream Only

Uploaded by TV Archive on