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tv   Squawk Alley  CNBC  November 26, 2019 11:00am-12:00pm EST

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good morning it is 11:00 a.m. at ups headquarters in atlanta, 11:00 a.m. on wall street and "squawk alley" is live ♪ ♪ ♪ good tuesday morning welcome to "squawk alley." i am carl quintanilla with
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morgan brennan, jon fortt at post nine of the new york stock exchange record highs all around the board. dow, s&p 500, nasdaq, but we'll begin with news regarding ford forward looks to do apples to apples with tesla. elon musk tweeting a response, quote, bring it on and calling into question the physics behind musks video of the tesla towing the ford f 150. is this really where we are? >> my mom might be watching, i am going to keep it clean, this is a classic measuring contest if ever there was one. morgan, do you know of any woman watching this tug of war with any kind of great interest mary barra is probably not even watching this.
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this is classic like testosterone driven man versus man type thing. >> the nerd truck narrative lives. the truck will be sold to nerds, right? that's the niche product they're aiming for >> i won't call it nerds, but if you look at the numbers, the number two, two top states for electric vehicle registrations, use that as a proxy for tesla, california and new york. the ford f 150 is the number one selling vehicle in the country in 46 states, 44 states. the only two states they're not top are california, new york, a handful of east coast states this is not about who's going to win new customers. >> i am like ford, ford, ford. how could you surrender the narrative on trucks like this to tesla. really like you're going to challenge elon musk on twitter >> let's be honest the guy built a big car. when you and i played video games in the '80s, that was the
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car that we played on. he wins. done the fact we're talking about it means he wins. >> and that's my point who even needs to spend money on advertising when you can have a twitter war back and forth, get all of the marketing you could want for the cybertruck and for the f 150. >> it is a cool car. let's be honest. >> is it >> it is cool looking. >> it is a truck that looks so much more fun than an f 150, right? >> i think it looks cool i'm not a pickup driver. i fall in the cool camp with this one in general, i am fascinated. i would like to see a legit tug of war between the two vehicles and the companies. >> we found our woman interested >> if friday was all about the form, when it is delivered, people will talk about the
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function, and it better function, otherwise it will be a very quick flash in the pan, don't you agree? >> that was all made up, the whole -- what do you think >> absolutely. window breaking was made up. >> we asked that on friday >> very few takers on that theory. >> thought you were talking about truck pulling was made up. we have seen truck pulling in commercials and yeah, that's made up. even i -- >> do you think elon has issue throwing a ball at the car >> i think it doesn't matter because people are talking about it either way. didn't matter if it worked they put out another video, throwing the ball, the window didn't crack it was fine. because they talked about that, ford put tesla in trucks on an even playing field with ford, and i can't believe they did that >> it is insane. the fact that elon got this
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car/truck to this level. you know why because he broke the window. >> okay. >> like a new term we can use, breaking the window. >> slightly more serious subject, the second half of sasha b sacha baron cohen is out in print form, calling for regulation, saying the tech companies are propaganda machines we heard a speech last week at the anti-defamation league last week we already have widespread outrage about social media. >> i don't think he moves the needle so much to me, this whole incident, it is like holding up a mirror. people see what they want to see. casey newton pointed out that social media in fact helped create greater interest in the speech that he gave a week ago then the viral effect of social
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media got it to the point people wanted to read an op-ed from him, and the response on social media has been predictably chaotic. you want to see this as here's an example of the power of social media because it elevated his remarks, look at it that way. you want to say this is an example of the peril of social media, here's someone putting something thoughtful out online, and suddenly the response is a food fight, people are just going to -- it is just going to -- people are going to see what they want to see in it. >> the silicon six is actually silicon three? he is talking about facebook, google, and twitter. he names a bunch of different google units, he names alphabet, sergei, larry, names youtube and google most of it is google he has an issue with then picks twitter because of their he would argue reticence to withdraw white supremacist speech he argues they could do it much faster because they're big and
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rich we know they're not nearly as big and rich as facebook and alphabet are, but it's an interesting group he picked. >> yeah. i mean, i think that he's trying to make a broader point about social media silicon six rolls off the tongue we're talking about it again in the context of what we were just talking about earlier. i don't think all social media are created equal, and perhaps cohen in an effort to make it a big tent perhaps didn't acknowledge discrepancies and nuances to twitter versus alphabet versus facebook >> there's a choice. you as social media user can choose to log out. so when sasha cohen makes a choice, like he is making a very clear choice why don't we all log out, turn
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off social media if you think that's the right choice? i think he is wrong. i think he actually thinks that like mark zuckerberg cares he doesn't care. he just wants pictures online. >> that's his fiduciary role, expand engagement. no doubt about that. >> i don't think it is easy for everybody to turn off. twitter has become a source of -- a megaphone for the president of the united states of america if you want to know what the president of the united states of america is saying or elon musk or any number of key figures -- >> you can say no. i'm not going to tweet >> who, the president? >> right but you're saying we as users should turn off. i can't turn off if i want to know what the president is saying kids unfortunately parents can say don't watch youtube videos, but it is hard to police that stuff, especially when everybody else in the class is talking about that youtube video.
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>> fair comment. but you can choose to be on facebook you can choose to be on youtube. my kids choose to not be on those platforms. but they're not. you can't. >> right, i can't. but i think cohen's point is not just about people that choose to be on the platform as a megaphone but those of us that have to consume that content as well >> we'll watch both those issues, tesla and facebook good to see you. neil, stephanie. larger than expected revenue decline sending shares of hp enterprise lower post earnings. that stock now down 9%, just about session lows joining us in a cnbc, hpe ceo. good morning >> good morning, jon >> so i want to understand what's happening overall, you are talking about q1, fiscal
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q12020 being about flat, but then you're confident for the full fiscal year, revenue in constant currency will grow. given all of the macro uncertainty, what gives you that confidence >> well, we just close a strong year for hewlett packard enterprise we had record growth, record free crash flow up 58%, and grew on all key indicators. strong digits. one i am particularly pleased is momentum we have in the service model that grew 72%. that gives me companies based on the portfolio and innovation we brought to the market, demand we see for customers to drive that growth in a profitable way, based on the shift we made this year that's why i am confident about the future, about 2020 and
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beyond >> you mention services. i look at your units, hpe point next and aruba services were the stronger ones looking at year over year comparisons. i wonder is hardware overall enterprise hardware showing weakness heading into next year? i believe goldman a few weeks ago had warnings about that based on uncertainty are you seeing that weakness >> well, our units grew 2% in q4 we continue to drive strong service intensity which allow us to grow hp for next orders on the service side 1% year over year we grew the aruba services 18% in q4, and the asset service offer, we put a lot of emphasis, in a couple of weeks making announcement about the next generation grew 72%. so we see an acceleration the
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services component of this but the units grew 2%. for us, about placing the right unit with the right mix with the right service and intensity while we pivot business to the asset service model. >> antonio, you talk about containerization, a big bet there. i hear a word like that, maybe because i covered freight the last couple of years, what does that entail, and how does it speak to the future, the bet you're making about where enterprise technology is going >> well, obviously we live in a cloud world and live in what we call a hybrid world where apps and data lives everywhere. more and more of apps and data moving to the edge the edge is where we live and work in order to operate, you have to have efficient set of application designs and deployment that's why we see the merges of containers in a micro services architectural. so you can use absent data efficiently back and forth where
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it makes more sense. that's why containers are becoming a way for cloud and native applications. we put a lot of emphasis with announcements on the hp container platform which provides a true single pane of glass solution, move apps freely between on and off premises, all the way to the edge, and we brought together all of the intellectual property organic, in organic, so we can provide that very efficient model to customers and partners going forward. >> longer term strategically, what do you view as your advantage in containers, google might argue that they sort of wrote the book on it, vmware will talk about it when they post earnings tonight. why is hpe in good position to drive the containerization message? >> well, hp is the age to cloud
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platform as a service company. that's important to understand we can provide true end to end experience for customers not just in the big cloud but to the edge our differentiation comes down to four things one is open. we believe customers will deploy multi cloud and stack solutions, not one single flavor of it. two is the fact it is truly cloud native, using open source standards. we are deploying in this hp a true solution that's with hp technologies, the data aspect of this is super important. three, the service, we have expertise on the service side to help customers find the right mix of whatever is they have with cloud journey they need to embrace, third and fourth, most
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important security we build security on the core of the platform we believe we have a very different strategy, that we can provide those experience from the edge to cloud, clideliver ua service in a true cloud open approach >> antonio neri with a sense of what drove earnings results. stock down after earnings this morning, but the enterprise story continues to be told thanks for being with us >> thank you when we return, u.s. army secretary ryan mccarthy. don't go anywhere. we're back in two. it was sophie's big day. by the way, she's the next mozart. as usual we were behind schedule. but sophie's enthusiasm cannot be dampened. not even by a run-away donut. we powered through it in our toyota prius. because a star's got to shine, no matter what.
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welcome back to "squawk alley. the pentagon sounding the alarm about the stop gap spending bill, saying it could be dangerous for the military congress has until december 20th to meet a deadline for a new budget deal. joining us to discuss, live from the pentagon, u.s. army secretary ryan mccarthy. mr. secretary, thanks for joining us today. >> thanks for having me, morgan. >> so let's start right there. the fact we are in another continuing resolution. how does that impact the army? >> well, it has already effected the army, morgan we had over the last 45 days, we had to reduce our operations and maintenance expenditures by 2% at present, from a modernization standpoint, the buying power for commanders to conduct training
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dropped by 2%. modernization front, we are unable to execute 70 new production programs, 79 new production programs and 37 production increases that's about $3.5 billion of buying power in modernization sitting frozen now, even if the budget deal, the table is slapped before christmas, that's about 90 days that manufacturers are going on risk or have to wait until the funds are released so from a readiness, modernization standpoint, we're losing momentum with every day that passes. >> we have seen defense spending increase the past couple years, certainly had a big impact on readiness efforts, also had a huge impact on aerospace and defense manufacturing. given the fact this is what we're talking about now, is military modernization in danger of stalling out? >> well, we have been very blessed, the '18, '19 budget deal increased the army's
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defense line by $22 billion. we were able to increase readiness from two bringing add combat teams to north of 25 at the highest levels of readiness in two-and-a-half years. a lot was funding but also focus from leadership. we have tremendous momentum. you look at the defense sector, they increased their research and development investments well north of 4%. when we started the effort, it was around inflation when you get industry excited, get them to invest in building prototypes, that's where you want to keep momentum going. we're working hard across the river to get a deal done before christmas. >> got you i have to shift gears to another topic that's garnering news in recent days around the pentagon. navy s.e.a.l. review case in which the president got involved, ultimately navy secretary was fired. it does ripple out to the army,
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has impacts on the army, given that there is recent presidential pardons, review processes under way within your service as well, but also according to some experts raises bigger questions i want to read you a quote from richard dan zig, shawn o'keefe, former navy secretary in "new york times" this week. it is very much the navy's business and even military's business to maintain as the military so often recites and mr. spencer put in his final letter to the president good order and discipline in conducting business, military services are not and must not be commanded in support of political ends as mr. trump was apparently doing here. i want to get your response to that >> well, like all things, we have processes we need to go through, with respect to the navy, there were process files along the way, i don't have the specific details associated with that we're trying to focus on going through deliberative processes to make the appropriate level of judgments and get our soldiers through the various transitions. >> and as you mentioned, across
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the pentagon there are very specific detailed processes in place, whether it is order and discipline you could also make the argument around contracting which has been in focus recently, given everything going on with the jedi contract award and now the recent bid protest by amazon how important are those processes to a service like the army being able to do business on a daily basis, and is there any risk they could be eroded? >> like all of the contracts for large procurements in particular, due diligence is incredibly important to maintain the objectivity and selection. national security implications, massive implications to taxpayers. we are very judicious as we go about deliberate, at times, worked hard on business practices to make better and faster decisions to maintain
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speed of relevance with adversaries. >> i mentioned jedi, which is the big umbrella cloud contract for the dod overall. you talked about migrating army operations over to the cloud as well what do you envision for that strategy, how does it fit into the broader one for the defense department >> so the army initiated its cloud efforts in the last year laid in upwards of $800 million across the five year futures defense plan, so we can begin the inventory, the standards and protocol to migrate all of the data to a cloud architecture how it will fit in with the overall enterprise architecture within department of defense is something we'll work out over the next 24 months. >> while on the topic of tech, lawmakers raising the flag about tiktok, army use of the chinese platform, social media platform. how are you assessing risks
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there, how does it speak to how the army thinks about data >> the army ceased utilization of tiktok when it was brought to my attention reviewed with cyber command on potential vulnerabilities associated with the app and like many others, i will be receiving a brief from army cyber command around the christmas holiday >> lastly, have to ask about the new marketing campaign tight labor market has that impacted recruiting >> huge impact in fiscal '18, they missed by 6500 people, which is substantial. feel those impacts the next couple years we went back, looked at how we are approached with the american public, and focusing on 22 cities changed advertising firms, changed leadership one thing in particular, all army senior leaders are traveling the country, engaging with civic leaders, mayors, superintendent of schools,
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directors of park and recreation to get civil level engagement to get in touch with 17 to 24-year-olds in the country and be able to compete better in that space 3.6% unemployment has been very tough for us to recruit in this environment. >> so many more topics and initiatives i know you've fo have afoot for now, we'll leave it there. secretary mccarthy, thanks for joining us. >> that's great. have a happy thanksgiving. >> you too a check of the major averages gains are modest today, but it is enough for record highs across the board and third day of gains dow up 30. ♪ ♪ ♪
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endorsed by aarp. learn more about why you should choose an aarp medicare supplement plan. call today for a free guide. european markets are set to close in a minute. seema mody has the breakdown of today's market action overseas >> hey, jon. we're on record watch in europe.
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the stock 600 is one-tenth percent away from hitting its own all-time high, a lot having to do with encouraging trade signs happening between the u.s. and china. and also offsetting weakness in travel and leisure stocks after contract catering firm slashes outlook, citing deteriorating consumer and business confidence in europe. that's a big stock to watch overseas another reason european stocks continue to climb, steady rise in bond yields german ten year yield up nearly 50% from lows hit back in late august the ecb chief economist saying recent pickup in yields is a sign of pessimism that built up around the eurozone economy but globally started to reverse. and part of the story is playing out in the m and a world, it is on pace for the most active month of deal making two of four deals announced yesterday involved european buyers, lvmh
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m and a is down 25% compared to the same period last year, according to merger market but there's another deal in the works. just eat, and separate offer from back to you. let's get a news update. for that, sue herera at hq. >> hello, carl, hello, everyone. here's what's happening at this hour at least three apartment buildings collapsed in albania after a 6.4 magnitude earthquake rattled the country this morning. the epicenter hitting northwest of the capital at least 14 are dead, 600 injured. the vice president of polytech university is picking through the wreckage, littering the campus in attempt to resolve the standoff between pro-democracy standoffs and police they have used it as a staging area, few are remaining as police forces zero in.
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the cave fire continues to burn in southern california, fueled by high winds, dry brush. it consumed 3300 acres of land, zero percent contained as of this morning. and new united nations report finding world powers that vowed to rein in emissions failed to do so, despite warnings from the scientific community. largest polluters, china and the united states, have expanded their carbon footprints in the last year. you are up to date that's the news update this hour, guys back downtown to you morgan, back to you. >> sue herera, thank you up next, ups ceo david abney. the shipping giant's holiday outlook exclusively on "squawk alley. back after a quick break most people think of verizon as a reliable phone company. (woman) but to businesses, we're a reliable partner. we keep companies ready for what's next. (man) we weave security into their business. virtualize their operations.
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welcome back to "squawk alley. ups expected to deliver close to three-quarter million packages as they gear up for the busiest period of the year joining us about the holiday outlook, david abney thanks for being here today. >> hey, morgan glad to be here this morning >> let's talk about what you are forecasting and how the billions of dollars you have been plowing into network capacity are going to kick in and pay off this holiday season >> we are well prepared this year for peak.
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we have been planning on it all year we have added over 42 buildings, automated buildings over the last two years we now have the capability to handle more than 800,000 packages an hour, more than we could two years ago. we are ready to take care of customers' needs >> 5% increase in deliveries between the day after thanksgiving and december 30th e-commerce continues to be a secular growth story how much increase in volumes is tied to just long-standing shift we have seen versus health of the economy now. >> e-commerce certainly has a big effect the u.s. economy is doing very well the 5% is 5% more than last year when you compare to the average
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daily volume, we're actually going to be 60% over the average daily volume of 20 million we will deliver an average of 32 million packages a day,every day between thanksgiving and christmas. >> we had a reporter join us yesterday from center for investigative reporting, talking about his investigation to amazon's warehouse practices one of his conclusions was adding robots might not make warehouse work for humans safer. have you found a connection between automation in your facilities and whether it is safer or not for workers >> well, safety is absolutely the most important thing that we focus on, and we do see that the latest technology that we can enable our people to be even more effective so first, you look at the safety then you look at the efficiency and service we can provide our
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customers. >> david, the last time we spoke, you were announcing flight forward, ups' drone airline. how many drone deliveries are you now doing? >> we have really led the way in this area. in fact, our drone delivery service, commercial service to health care facilities, we've already made over 1800 deliveries and we're doing it on a daily basis. we have also tested delivering pharmaceuticals to residents, to people's houses. we're making a lot of progress, have good partners in this area. we're excited about it >> when am i getting some of the packages that i buy for my holiday shopping delivered to my doorstep >> well, you will get it delivered to your doorstep today and every other day. from a drone standpoint, we're
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still probably another year or so away before the regulations get completely written, but that will be a reality at some point. but it will be a complement. it will be more focused on urgent deliveries. we still see avery important role for the ups driver at the same time. >> shifting gears a little bit, u.s./china trade in focus as always, it would seem. are businesses pulling forward shipments ahead of that at least for now set to kick in mid december tariff? >> well, i think the business climate right now is a little more positive. people are hearing better things and they're hopeful. i know that many of our customers are making contingency plans. many looked to change their trade flows. but i think the last couple of days has shown encouragement and
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we urge both leaders in china and the u.s. to work out a win-win solution that would benefit all businesses and all consumers. we're more encouraged than we have been. >> david, how do you expect that good economy particularly in the u.s. to impact the trajectory of holiday spending are people going to be doing more impulse buying perhaps toward the tail end of the season, buying for themselves more do you expect to see more action towards the back end of the holiday season than you might in another year >> well, the advice we want to give your viewers is to shop early, shop often, ship ups. there are fewer days between thanksgiving and christmas you'll see many of the retailers have started their promotions.
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officially peak starts for us friday after thanksgiving but it's already here, so people are already shopping and we want to encourage them, the sooner the better as far as we're concerned. >> david, your name came up last week in the midst of "new york times" fedex tax back and forth, you penned an op-ed about tax reform with fred smith before we saw that bill pass congress. given debate about whether tax reform has worked, full expensing, what it meant for investments in the u.s., how would you weigh in on the broader debate right now >> i think tax reform has worked i think it is one of the reasons the economy is doing as well as it is. back in december of 2017 we said we would invest over $12 billion into capital expenditures and into pension plans, and we have absolutely done what we've said.
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we have increased cap ex tremendously, over $13 billion in the last two years. we're in the second year of a $22 billion reupping of cap ex. we have done what we said, we have seen the gains and we think it is working and are fully supportive. >> david abney, thanks for joining us as we go into another peak shipping season david abney of ups and still to come on "squawk alley," jane wells explains why crickets are a gateway bug first, rick santelli, what's on your mind this morning? >> you know, i look up at the board, jon, i see rates going down i get up this morning, we look at data going up how do we reconcile this eae l talk about that after th brk. neighborhood. neighborhood. i'm a regular at my local coffee shop and my local barber shop.
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fidelity has zero commissions for online u.s. equity trades and etfs, plus zero minimums to open a brokerage account. with value like this, there are zero reasons to invest anywhere else. fidelity. scott wapner here's what's coming up top of the hour are we about to have a four week melt-up for stocks debating which names could pick up steam to end of the year and beyond. the call of the day gives a restaurant stock a big boost, we'll tell you which one and the one morgan stanley calls a top pick for 2020. that and more at noon on the half jon, 15 away see you then. >> looking forward to that, scott. let's get to the cme
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rick santelli has the santelli exchange rick >> good morning, thanks, jon i look at the board, 173.10, couple of basis points away from the lowest november for tens couple basis points lower than we're trading, on top of pretty good data. i understand there's top tier data, and there's the rest of the data to me, we could make put advance good trade balance in, doesn't excite everybody, that was a good number. 66.5 billion, it was a deficit, but still the smallest since may of 2018. new home sales today, diana was excited about it, she pointed out it was massive revision and she was right. that put last month at 738,000 which you usurped to 28,000 in june we're the last couple months at levels we haven't seen since july of 2007
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but what happened? rates continue to melt, it isn't just here. we talked about it many times. global rates have a stencil. we could change the scale, maybe the chinese ten year is at 320, ours at 173, but for the most part many instruments of sovereign debt seem to move in the same fashion, highly correlated, what they're correlated too is liquidity in the world. if we consider that subprimal urges, everybody is talking about it, subprime in auto loans is something we should maybe worry about. yet defaults haven't increased dramatically, maybe the key point is investors demand soaring. can't get enough as we slice in subprime auto loans inside securities finally today, steve liesman had a great interview with dallas fed president robert kaplan. listen to a minute of that
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let's listen in. >> my concern is if you have a downturn where we grow more slowly, it means that this amount of debt could be an amplifier, what do i mean by that, high percentage of cash flows spent on servicing debt. >> now, i can't think of anything i've ever agreed with more with regard to a statement by a fed official. but exactly what is he saying? what he is saying is all this debt out there makes him a bit nervous. should there be a downturn, shouldn't say should, when there is a downturn, it will take more cash to service debt, whether you're a corporation which he is really referring to or a sovereign nation and use your printing press the means to an end that only central banks are going to means they create a condition, their only tool, make rates low, make capital flow, make it cheaper,
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but it is also the enemy when things slow down they create and sew their own demise, and ultimately bbb debt, we mentioned it, why is everybody worried? that represents huge amounts of borrowers he is most nervous about right at the round of investment grade we all know when there is a downturn, some of that is going to slip. but it is not like they're raising rates anytime soon, that could pop that bubble. back to you, carl. >> all right, rick thanks for keeping us honest on that rick santelli. should mention, the president is on the tape now, telling reporters that the united states is in the, quote, final thros of a deal with china. they're standing with protesters in honk, where they want more democracy. a bit of a curve ball. dow up 37, s&p 500 up 31
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when we come back, alibaba becoming the world's largest listing after the debut in hong kong ren atft t bak driverless cars, or trips to mars. no commission. delivery drones, or the latest phones. no commission. no matter what you trade, at fidelity you'll pay no commission for online u.s. equity trades. at fidelity you'll pay no commission by the way, she's the it wasnext mozart.g day. as usual we were behind schedule. but sophie's enthusiasm cannot be dampened. not even by a run-away donut. we powered through it in our toyota prius. because a star's got to shine, no matter what. it's unbelievable what you can do in the prius. toyota let's go places.
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simple. easy. awesome. call, click or visit a store today. . welcome back shares of alibaba surging overnight in its hong kong debut becoming the largest listing this year. deirdre has more from san francisco. >> in the lead up to the
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listing, alibaba did keep a low profile. they did a lot of book building by phone on listing day last night in hong kong there was a good amount of ceremony and celebration. ten alibaba customers struck the gong that group you see that rang the gong includes merchants, customers and influencers. shares up 6.5% the ceo delivered the homecoming speech >> for hong kong the listing was a major victory for a few reasons. one it was a vote of confidence for the city after months of pro democracy protests second it was
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an indication that reforms implemented in the exchange allowed that founders more control can attract more listings they said with the return of alibaba no doubt other companies listed overseas will want to come home too. remember five years ago alibaba chose the new york stock exchange over the hong kong exchange as of february of this year, there were more than 150 chinese companies listed here with a total market cap of $1.2 trillion. morgan, back to you. >> the timing couldn't be more critical thank you. getting a check on where we stand across the major averages right now, modest gains across the board. but enough for new record day highs for the dow, s&p and nasdaq squat alley is back after this break.
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dana-farber cancer institute discovered the pd-l1 pathway. pd-l1. they changed how the world fights cancer. blocking the pd-l1 protein, lets the immune system attack, attack, attack cancer. pd-l1 transformed, revolutionized, immunotherapy. pd-l1 saved my life. saved my life. saved my life. what we do here at dana-faber, changes lives everywhere. everywhere. everywhere. everywhere. everywhere.
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but we're also a company that controls hiv, fights cancer, repairs shattered bones, relieves depression, restores heart rhythms, helps you back from strokes, and keeps you healthy your whole life. from the day you're born we never stop taking care of you. forget the turkey this year for thanksgiving how that insect protein, jane wells has that
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story. >> can i interest you in some mealy worms, consider these gateway bugs they estimate insect protein will be an $8 billion market by 2030 it takes so much less land and water to get the same amount of protein from insects than traditional animals plus you get the fiber. 2 billion people eat bugs on the planet but getting cultural acceptance here is taking a while. >> this one is our peanut butter and blueberry. >> now ann carlson figured out a way to market growth, bug based dog food sales grew 70% this year she says dogs eat $32 billion of protein a year and the sustainability of bugs appeals to pet loving millennials. >> one of the key reasons i got into this, my daughter is a
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millennial and she said she might not want to have children because she's worried about what the world is going to be like. >> 80% of the bio mass of the planet is made out of insects. it doesn't make sense we're not tapping into that. >> now monica created don bagito, insect snacks for humans she sells 25,000 bags a year >> the biggest challenge is to know if the market is ready or not. access to capital, too still needs a lot of money to be on education >> now, some people think beyond meat and impossible foods has raised the profile of other proteins this is monica's bug farms she's sure some people would rather kill a plant than a bug. >> we have some on set
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how many bugs do you think you've eaten in the course of reporting this story >> more than i should db including the dog treats i ate dog food >> this is good. >> what do you think >> which ones -- >> we got -- >> we have this in here for freshness, which is nice. >> we have dark chocolate crickets and what is that spicy bugitos. >> it's a medley >> i'll try. >> hand me one of tbugitos. >> it's sustainability. >> it's crunchy. >> it tesastes pretty good. what does it take to prepare the bugs for human consumption >> here's the deal they put them to sleep with the cold and then they freeze them so they die painlessly the crickets are then washed and
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roasted. mealy worms have a natural antibiotic in them and they're naturally clean. >> how do you wash a cricket like a little wash cloth. >> which we had time for that answer >> the crickets are tasty. >> jane, thanks as always. let's get to the judge i'm scott wapner, front and center this hour, the end of the year melt up, the likelihood the stocks could be running through the holidays it is 12 noon and this is the halftime report. >> announcer: this bulls marching on. the one sector you need to be in right now to ride this record run. best buy beats, dollar tree trounced the retail stocks to bet on as we gear up for the crucial holiday shopping season. chipotle one of the ten best


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