. >>> big trouble in little macao. will your kids get the jab they're going to ask for approval for kids 5 months old and up >>> instagram with a scathing report on how they know instagram is harming the mental health of kids around the world and have done almost nothing about it it is wednesday, september 15th and this is "worldwide exchange." >>> well, good morning, good afternoon or good evening and welcome from wherever in the world you may be watching. good wednesday morning i am brian sullivan. thanks for joining us. the facebook story, very serious and important one coming up. all parents need hear it and you will in a bit. first, let us hit your wednesday morning. coming off a 300 point drop in the dow. we are seeing a little green i mean a little. dow futures up 69. nasdaq up 52 it has been a bit of a rough run lately if you are keeping score at home, the dow is down nearly 6 of the past 7 sessions same with the s&p 500 but as always, context is key the s&p 500 is still up 18% this year most investors have mad

when you look at wynn, macao is very nice.last six months ebidta came outside macao. and furthermore the wynn swr active business that bill foal yes a great fintech entrepreneur invested in that's where the growth comes from. i don't think las vegas is shutting down. i don't think online gambling is shuttening down and macao isn't shutting down. the risks you have to accept if you buy a stock that hags the potential to return 30% in six months let me get to the big picture. and i know you want to ask questions. the conversation you all were just having is fabulous. there is an almost daily back and forth between reopening fersz defensive. it's almost daily now. yesterday was a reopening day. that has to resolve itself in one direction or the other "i" firmly in the camp that we as a globe and as a nation are get through the delta surge. i'm firmly in the camp the global economy is not going into shutdown, that there will be gaming across the globe and a stock like wynn which i bought a week today and bought today down last wee

so to me the macao government is going about this in a logical way.onsultation with all of the operators to ensure the health not just of the industry but of the community itself >> well then i have to say, i know we have to wrap up. but this company's lost a huge amount of value for something it doesn't sound like it's all that important to the even numbers going forward. zblfr again, you know, macao is the only large scale gaming market in all of asia. nestled right in the most populated, fastest growing, wealthiest regions in the world. that's a great place where you want to be and i feel very good about the steps that the government is taking to ensure that the operators are focused not only on the shareholders but on the communities and the their employees. it's what's going on in the united states. it just makes sense. >> all right i'm sure the bears are saying cramer you're a suck up and you're a liar. and the answer is i've known you for a long time. you're anything but. i have to tell you, as much as i like steve, you know, i couldn't be a su

just on the screen we have a list of some of the major macao gaming stocks. down 25% to 35% overnight. about $14 billion in market cap has been wiped off these gamers and as you say, it's part and parcel of the ongoing regulatory crackdown. no industry seems to be safe with what's going on there is an additional angle the gambling that take space in macao. means or a channel as capital outflows a lot of the activity that goes on there is done in the more -- well, more convertible, easier to convert hong kong dollar and, therefore, chinese authorities are probably thinking about this from the perspective as well, the finance of stability they don't want that to be accounted for from macao another reason they're muscling in on that sector. we're following it very, very closely. >> we're going to cut to a very quick break. when we come back, indie tech comes to close levels. the pandemic continues to weigh on demand. we'll discuss more after this break. >>> welcome back to "street signs," everybody. i'm julianna tattlebaum and these are your headlines ursula van

last year, gross gdp in macao, $24 billion. to have all locals in this region, they just can't because they won't have the size and the scale that wynn and las vegas sands has. i get the number one player down 41% and a big piece of the business that's not macao and i have a stock that's so much pressure and so oversold and so i'm a buyer. >> farmer jim, mr. chanos said he was going to send you his spread sheet he sent me his some of the parts analysis which i forwarded to you during the program i think you had time to check it out and basically says it's a $49 stock. do you have a chance to look at it and do you have a response? >> i did i did. there are two responses, stephanie just gave one of them which is macao is not worth zero which is in his analysis the other part, though, and this is very important, as he said, if it's worth zero, what's the u.s. operations worth? in the clip he said $6 billion at a 10-time multiple. i think both of those numbers are way off. i think he's got the conclusion more and the reason i say t

paul: why does china want macao to move away from gaming? ?o reliable -- >> the government is too reliant on gaming. there is a capital outflow problem china wants to fix. at this capital outflow problem is facilitated by so-called junk is that sometimes breach -- so-called junkets that sometimes breach chinese law, and providing shadow banking services to high rolling betters and macau. shery: what does it mean for the future of casinos there? shirley: they are likely to be forced to invest a non-gaming areas, but they are not experts in these areas that they are facing a lot of competition in regions like hong kong, which is very close to macau and has an established exhibition and convention industry. it hosts a lot of major international events. and a southern chinese island ha inan, has seen a doors and recently because of its tax-free status. hainan wants to develop similar industries. the latest crackdown and macau is going to affect the ipn high rolling gamblers further -- a fact -- the latest crackdown and macau is going to affect hig

is there one >> yeah, i wish there was an economic rationale certainly macao doesn't fit into that ifng according to what's important economically in china, macao wouldn't crack the top 100 issues i think john's got it right. there are economic concerns, for example the retail sales figure you noted being so weak. i think this is coming from xi and i think he's also right that the party congress where xi's trying to extend his rule is fall of next year, which means we have to anticipate another year of this, that it's political, that the only way you link data concerns with tech companies to macao gaming is that you're attacking other members of the communist party what they do with their wealth, what they do with their consumption, gathering data on them and so on -- obviously that's not the way the chinese are going to present it. but it's certainly not economic in its rationale it doesn't seem to be prudential financial regulation it looks political and looked aimed at the rest of the party >> john hinted at what other areas could be at risk here. what would you say i know you've t

mgm doesn't rely on macao revenues as the left i got a bunch of very polite no thank you.hile investors may be spooked at the idea of increased government oversight there, these concessions are in reality government partnerships. they are not licenses. any increased scrutiny on the vice president junkets may not have the impact it did they're becoming the profit driver there even prepandemic. a mandate for casinos to invest in non-gaming areas. that's not problematic they've voluntarily invested in big infrastructure education and other projects and they have been paying employees through the pandemic so some of these things are to be expected. some of it we just have to wait to get the details in the meantime, i just got a note from morningstar. it looks like they're going to lower their estimates on wynn and las vegas sands because of the volatility and pressure. >> is there any thought, contessa, that it is a possibility that the concessions end for certain players? >> no. i mean, that -- >> okay. >> the reality of this is they have invested so much money, and i've talk

tell our viewers why. >> so i did, scott the headline news out of macao is not great from a regulatoryve and what's going on there. but, you know, on the cyclical side i like mgm. i think they are the best, the cleanest balance sheet of the group. only 13% of the business is china-based. and i like the mgm business. i think there is a lot of uptrends from there. it's a goodbye here. down about 4% today. i might actually pick up more >> weiss you own penn national and bought it last week. >> my timing could have been better i'll say that. look, i'm happy. they've got both physical assets, the casinos as well as the online betting with master promoter marketer dave portnoy i'm happy with it. i think it's the cheapest out there because it's making money versus the others that aren't. and i think what we're seeing in terms of -- no offense, jason, is just this continued lack of awareness of what's happening in china. so while it's only 13% or 15% of mgm revenues those can go away over time. china keeps taking big two-by-fours and smacking u.s. investors over the head. and they're saying i

wynn macao plunged 28% sands 32% and galaxy entertainment 20%. right here in the united states wynn resorts and las vegas sands coming under pressure. all of these regulatory crackdowns raising renewed questions about investments in that country we'll talk to folks here about that today joe? >> trying to figure out how the -- all of the previous moves we've seen by president xi, what he was trying to accomplish across all of those different industries. >> control. >> what does that mean for gambling if you want to make it healthy and sustainable, i mean, that's why stocks were down what the hell does that mean >> they're talking about how they're going to be looking at every license they have in macao. for a lot of these companies, macao is second to vegas in some cases even before vegas in terms of importance. they're going to look at every single one of those licenses. >> there are -- >> right they may not get a renewal of the license. they may not have the length of the time of the license that they had been anticipating. >> right >> sounds li

from macao wynn has lost two billion in market cap in the last few days.n value in that same time keep an eye on the casino stocks now back out to the kennedy space center to morgan brennan she is enjoying the great outdoors back over to you. >> that i am, dom. thank you. after the break, do not miss an interview with nasa administrator and astronaut bill nelson we're back in two. ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ >>> welcome back i'm rahel solomon. at least three people have been killed and dozens injured after a 6.0 magnitude earthquake rocked china this morning in the southwest province search and rescue effort are still underway. >>> a pair of wildfires burning in the sierra nevada mountains threatening to destroy some of the world's largest trees. the national parks service closed sequoia national park and evacuated staff due to the first. 6,000 acres within the park have already been burned. >>> the capitol police taking extra precautions ahead of this weekend's rally. fencing has already been reinstalled around the u.s. capitol grounds. far-right extremists are exp

that's a big problem for the names who have invested heavily in macao.o much. look at the percentage declines. susan: as an investor would you touch a chinese stock? they've looked at tech, tutoring companies, gaming companies and now casino companies, i think this is sending a really bad message to global investors. stuart: absolutely. very bad message. i wouldn't touch it with a ten-foot pole. that's just me. the grill people, might bounce above ipo price. susan: record grill sales in the summer. i don't know if you bought one. forecasting higher sales for the entire rest of this year and gapping more market shares. a lot of people are barbecuing up there and they are choosing the rubber grills. i'm not a grilling specialist so i wouldn't know. stuart: neither am i. susan: not surprising. stuart: the lucid group. they are up 3%, why? susan: bank of america is predicting 6% in lucid stocks, they are saying it's worth $30 a piece and the bank says can rival tesla and ferrari, not only make sweet consumer cars but the formula e-racing which is reminiscenc

before the data came out, obviously, the macao stocks sliding, and still weakness in tech stocks, andou throw in what really was a poor day of data apart from employment numbers, and it really just made the data even worse. it will probably only be a matter of hours before the speculation starts from china. obviously, it will put some pressure on the pboc, but there are those trying to keep that are very targeted measures, trying to help small hour meteor size companies with their specific lending. when retail numbers missed by this much, they are probably going to face some pressure, so i should think it is only a matter of time. we may even see a bit of a bounce in chinese stocks this afternoon as people start to think that a rate cut could be coming maybe as early as this weekend. i think that is the next thing we will be talking about, speculation on lower rates, but obviously, the underlying data has missed by such a long way that there will be real concerns, if china can even reach the targets for growth this year that it was putting forth just recently, so it is a concern for g

finally macao valuation selling at six times ebitda, roughly half of what we value vegas. so carl, i think that what you are factoring in 82, 83, is that there's got to be maybe a 35% decline by the chinese i don't think the chinese are going to do that, but that's a serious worst case. >> that's the worst two days for wynn shares since the pandemic began. march of 2020, people asking why. the chinese establishing a 45-day review in which they could potentially install government officials to supervise day-to-day operations trying to get casino operators to emphasize non-gaming type activities. >> non-gaming is what you give away in order to get the gamers. >> i can remember people being concerned about these licenses coming up for renewal in 2022, years ago when the trump administration was obviously having quite a few tensions with china. it's not as though this was unfamiliar territory to a lot of investors here >> my trust felt that 100, it started to factor in this because i was using a 20 p% haircut. these stocks are reflecting the idea that president xi doesn't want

that has gotten to be more of a mid to large company is caesar's, which has no exposure to china or macao versus looking at las vegas sands or wynn. it has exposure. we love not having that exposure and felt certainly comfortable as we continue to do as we see the evergrande saga playing out. >> caesar's is sure pushing its sport betting and sports book on television these days. i think jb smoove is part of that ad campaign let me ask you this. i don't want to go into -- let me give you a macro thought. as you look at the s&p 500, do you think it is more vulnerable today to a downturn? or is this comeback that we are seeing today something that is going to avert or forestall a downturn, and that we are back on steadier pavement what do you think? quick. >> yeah, i think, again, when you look at the just incredible exposure that the s&p has to just five companies, i am pretty negative on those larger cap tech stocks that have gotten so popular and so expensive i do think technology is gob to be a tough place to be in a rising rate environment. i would rather be in small caps that do better

seller on apple just as a trade that i would be a buyer >> let's get to wynn skrx a lot of operators in macaoink, wynn? >> i kind of alluded to this at the end of my 5:00 show, but the uncertainty in china, it translates into lower multiples not only for the technology companies but potentially companies like wynn as well. i like penn right now versus a trade. >> guy >> las vegas sands over wynn lvs is trading at levels we saw in march and april of 2020, but clearly, the china headlines which i didn't see coming earlier this week, are still out there. so buyer beware, but lvs for trade for me >> next up, alibaba, mike khouw, we talked about this one a lot >> yeah, obviously, alibaba is facing many of the same headwinds some of the other chinese names are facing the thing is that it's getting down to a cheap enough valuation, and this is a speculative long side bet if you're going to go that way, but i have been dipping my toe in the water myself on the stock even though we're facing all those chinese headwinds. i think this is a halo company for them and the valuation is tempting me enough to

real quick on china because now macao wants government representatives to supervise casino operators.n, the latest group that it's cracking down on these chinese casino companies and they're all selling off this morning and yesterday, david, what's your thought on investing in chinese companies right now? >> i think that it's a craft shoot. it's impossible to tell where the chinese government is going to go next and frankly, maria, it's impossible to know if they make about face in a moment's notice. unless you have some real, you know, good connections and real gad intel, it's an area to stay away from for now. maria: the stocks are down 20, 30% in the premarket. david, good to see you. david towel joining us. some people won't pay for parking. >> why? >> i don't know. i just can't. nobody in my family can pay for parking. maria: and yet others are ready to pay as much as they'll pay for a house for a parking spot, the price tag on this one makes a buzz this morning. we will be right back. in business, it's never just another day. it's the big sale, or the big presentation. the day w

we are good corporate citizens you know, i have a very, very bullish view of the future of macao and to miss the rest of jim's interview with the wynn ceo "mad money" 6:00 p.m. eastern. carnival shares have seen gains this year but how has the business held up what to watch from tomorrow's earnings from carnival we are back in a couple of minutes. ♪ feel stuck with credit card debt? ♪ move your high-interest debt to a sofi personal loan. earn $10 just for viewing your rate — and get your money right. ♪ that building you're trying to buy, and get your money right. - you should ten-x it. - ten-x it? ten-x is the world's largest online commercial real estate exchange. you see it. you want it. you ten-x it. it's that fast. if i could, i'd ten-x everything. like... uh... these salads. or these sandwiches... ten-x does the same thing, but with buildings. sweet. oh no, he wasn't... oh, actually... that looks pretty good. see it. want it. ten-x it. yum! i promise - as an independent advisor - to put the financial well-being of you and your family first. i promise to serve, not sell. i promis

of news in the auto space, ford, gm, teslas we said, another downgrade of casinos here as we watch macao take a look at futureon ts his friday more "squawk on the street" continues in a moment. >> announcer: this cnbc program is sponsored by baird. visit bairddifference.com. i wonder how the firm's doing without its fearless leader. you sure you want to leave that all behind? yeah. stay restless with the rx. crafted by lexus. experience amazing at your lexus dealer. in business, it's never just another day. it's the big sale, or the big presentation. crafted by lexus. the day where everything goes right. or the one where nothing does. with comcast business you get the network that can deliver gig speeds to the most businesses and advanced cybersecurity to protect every device on it— all backed by a dedicated team, 24/7. every day in business is a big day. we'll keep you ready for what's next. comcast business powering possibilities. >>> lucid extending yesterday's gains, one of the ev startup's luxury sedans has been rated at 520 miles of range by the epa. that's the longest of any car r

soros put a piece out recently talking about what he believes was quite negative, even worrying about macao or even the likes of apple if this continues to move in a way that it seems to be drifting towards just unclear, but you know, we have our china bulls out there. there are certainly those who believe this is not going to get any better anytime soon. >> the news withalibaba, it's going to have to invest its own men. >> $15.5 billion by 2075 is what they've generally committed to interesting. we're going to keep an eye on all of those shares. coming up, president biden is scheduled to speak about this morning's jobs report. that's at 10:00. we will bring you live coverage of his remarks get started with trading in a little less than 12 minutes or so now king care of them, i knew that i really wanted to become a nurse. amazon helped me with training and tuition. today, i'm a medical assistant "squawk on the street" will be "squawk on the street" will be right back in filipino: you'll always be in my heart. esg is responsible investing. "squawk on the street" will be right back in filipin