tv Worldwide Exchange CNBC January 5, 2021 5:00am-6:00am EST
it is 5:00 a.m. at cnbc and here is your top five at 5:00. stocks looking to bounce back after starting the year with a steep selloff, futures are higher the new york stock exchange making an abrupt u-turn, now saying that it will no longer delist three chinese telecom giants it is decision day in georgia, voters there heading to the polls to decide two key is that the races that could have an impact on your money. >> the uk back in lockdown mode amid rising virus cases as boris
johnson warns of the hardest weeks ahead for the nation and shares of foxconn surging as it says that it wants to get into the electric vehicle market it is tuesday, january 5, and this is worldwi"worldwide exch." ♪ good morning, good afternoon or good evening from wherever in the world that you may be watching i'm brian sullivan glad to have you with us let's get to the markets and your money after monday's big tumble, futures are looking like we could bounce back a little bit they are higher, not a lot, dow up 49, nasdaq 17 but they are in the green. your restmeinvestments likely t big hit yesterday.
s&p 500 had its worst start to the year since 2001, and its third worst start ever by the way. really it is a triple or even quadruple wall of worry for stocks to begin the year let's walk through them. number one, you've got fears of potentially higher taxes, maybe much higher if democrats take the senate those two seats are toss-ups right now here on election day you've got a the new lockdowns in europe, uk and scotland as well as spikes in viruses and the new strain here. and iran getting more aggressive enriching more uranium and seizing a south korean oil tanker on yesterday. the big winner monday was fear the volatility index, the vix, up 20%, up mildly right now. also bitcoin a big winner. now it had a wild 36 hours before bouncing back yesterday up a couple thousand, down a
couple thousand, now down about 3% very volatile for many cryptos and of course when people, markets, get nervous, they often buy gold or gold and silver. rising yesterday, both on the rise right now, gold at 1949, silver at 27.59. around the world, it was a mostly positive session in asia overnight. the kospi kind of the tech he knowledge index you might want to watch the south korean kospi up 1.5% nikkei done a b nikkei done a bdown a bit and let's take a look at the early trade in the european markets as well. kind of a similar story, not a big trend either way uk up a bit, germany and france down fwraksl fractionally
the new york stock exchange reversing course on its plan to tee list three telecom giants. the n ychyc says it scrapped th plan after further consultation with relevance authorities just days after saying that it would move to delist china telecom, china mobile and china unicom. shares rallied on the news the nyc had originally planned to drop the companies in order to comply with an executive order from president trump seeking to bar american investments in companies that the white house allegedly aided the chinese military also rallying today are shares offoxx, they signed a deal wit a carmaker to help produce its first vehicle. the suv expected by the first quarter of 2022. it marks a big push bay foxco into auto manufacturing.
sfla a . and nearly 200 top business leaders are calling on congress to certify joe biden's victory leaders from companies like goldman sachs, pfizer, jet plus among those signing the letter at least 140 house republicans and a dozen senate republicans are preparing to vote against biden's victory wednesday, a push to overturn the election results when congress will meet tomorrow to certify that contest. so with everything going on out there, the georgia senate race, the uk lockdown, iran rattling its saber, what is the most important thing or things for you to stay focused on let's find out michael sheldon is executive director at rdm financial at hightower and he is joining us thank you very much and happy new year >> likewise. >> you have that wall of worry that we pointed out when clients are banging your phone lines or
sending you the texts or whatsapp or whatever it is, what is the key things that you and your team are focused on right now? >> as we turn the corner into 2021, we're still going it dealing with the lingering effects of the virus in early 2021 and that will probably lead to weaker economic data. for example, this friday we have the jobs report out and we're likely to see an increase of about 100,000 in the payrolls. that is not such a bad number, but considering the fact that we've only regained about 60% of the jobs lost, we still have work to do i think in terms of looking out over the next several quarters, it is important to point out that if you look back at gdp data going back to the late 1940s, economic expansions typically last about six years or so while consideratitractiont much shorter so we have multiple vaccines, the fed is likely to keep rates
accommodative, we just had another fiscal package, so we think that the economic recovery remains on track as we head through the next several quarters >> i know you're not a day trader, but we did have one of the worst starts to a year ever for the s&p 500 yesterday. what do you think happened >> yesterday was certainly not the way you want to start a new year i think there were a couple things going on, as you pointed out, there were concerns ahead of the georgia election coming out later today. if the two seats in georgia go to the democrats, there is a greater possibility that we could see increased taxes and regulation there is also yesterday we also entered the new year of 2021, you could argue with valuations and sentiment levels maybe a little bit stretched and it could also be some concerns that the rollout of the virus, while it is very exciting and we've never deeped vaccines as quickly as we have in the past, the rollout of the vaccine
you can argue probably hasn't gone as smoothly as expected at least in the first few weeks >> yeah, search not, but we're getting there and we're actually one of the top countries on a per capita basis israel figured it out, they have about 12% of their population already vaccinated so with all those things, the market multiples maybe not at extreme levels but elevated, i won't say the market is priced to perfection, not my job, that is your, but we certainly are he will straighted enough where things have to go right. what is your biggest worry for the year from an equities perspective? >> well, there are a few things that could go wrong. one is obviously the vaccine rollout doesn't go as smoothly as expected. and there is a possibility that the georgia race doesn't go republican's way and we get increases in taxes our thinking is if the democrats do win the two senate seats in georgia, that the biden
administration has sort of signaled more of a centrist administration and our hope is that they will focus more on the economy in the first year as opposed to thinking about raising taxes. and if that were to be the case, maybe that is more of a 2022 event. the other thing is theifican naturaled that they will be accommodative. they could raise rates before the economy is ready for that, that could be a problem. and last i would just say that as we talked about valuation levels, they are pretty full right now. so we really need earnings to come through over the next few quarters to help support higher stock prices >> michael sheldon, appreciate you coming on cnbc have a great day >> thank you on deck, the uk back on a hard lockdown, residents told that they can only go outside to buy food, exercise or get
medical care but how long can that really go on we'll find out as well as we'll check back in with a vaccine recipient we talked to a couple weeks ago, see how he is doing. plus the pentagon issuing a warning to iran as they ramp up ukrainian enrichment and seize an oil tanker. and later on, your morning rbi, the record-setting run of money making its way back into the market and why more may still be ready to flow in, some big numbers ahead. dow futures up 61. say hello to y to ease stress. stress comfort. a gummy supplement with lemon balm plus saffron, to naturally boost your mood. stress comfort from nature's bounty.
welcome back beginning today gtsz if yif youn the uk, you can only leave your home to get food, go for a jog or seek medical care schools are closed with some good exceptio exceptions for the very young or essential workers. boris johnson calling it a pivotal moment for the nation. joumanna bercetche joining us. what do the new restrictions involve? >> yeah, well, it is essentially a stay-at-home order you are being told to stay at home unless you absolutely have to leave the house, whether that is to go for work or to buy groceries, medical assistance or to buy medicine. and you essentially are being told that unless you absolutely have to leave the house, you should be staying at home and
listen to the orders in the interests of public health so what that means, all nonbe essential shops have been closed now, pubs, restaurants, gyms, cafes, cinemas, the list goes on but pretty much anything in the hospitality space is closed down and this has been a big topic here in the uk, schools and universities have been told to close as well. they were open for business yesterday, but as of today, they have been told to shut down. the uk government was some would say dragging its feet a little bit in terms of coming to this decision and they very reluctantly did make this announcement yesterday the prime minister saying that they had to make this very difficult decision because of the huge jump in the number of cases. just in london alone, the positivity test is up at 17% and there is a risk that the nhs could get overwhelmed. >> how long is that scheduled to go on and how is the vaccine
rollout going so far in the uk >> well, i think that those two things go hand in hand because the government said yesterday that there is a bit of light at the end of the tunnel because there is a vaccine being roll out and distributed. what they said is that they are planning on rolling out the vaccine to all the top four priority groups, so that is the care home residents, everyone over the age much of 70, front workers, and in total, it adds up to about 14 million people. if you work at an average pace of about 2 million doses a week, then we're probably looking at the end of lockdown toward the end of february. but again, that is a highliay ambitious numbering number it will be a huge ask, but that is what the government has sorted hinted at or hoping to achieve by the end of february so perhaps we could be out of
this, but who knows, there are a lot of fs at plof ifs at play ae overall order is to stay home and save lives >> 1.42% of the population, same as the united states by the way. but still not enough but the new vaccines will hopefully help i know you're a new mom and you want to go for a walk, just get outside and hopefully we'll get out of this. it matters joumanna bercetche, we appreciate it. for more on the situation on the ground in the uk, we're joined now by paul johnston manager at the palmerston residential home and we spoke with him last month after he received his first dose of the pfizer/biontech vaccine good to see you again. have you gotten your second dose >> yes, on the 29th of december.
and today we're quite fortunate. >> and how are you feeling >> very well i did have a slight headache the day post-vaccine and a bit of a sore arm, but very normal things to expect after a vaccine. >> what does it mean for you and what does it mean for the residents of your residential home, what is the reaction to fielding i would imagine some -- you are not free certainly because you have to we are about others and your you loved ones, i get that, but from a personal perspective and for all the residents of your home, what does it mean for you guys? >> i think what it means for us, the staff and residents, that we're a bit safer than what we were
there are still risks, our families, ourselves, the community, the rise in the cases of covid but what it means to us is at least we know that we're vax naltsed and we're as safe as we can be and hopefully that life returns to normal. >> and you heard joumanna from a lockdown perspective, i know it is hard, probably different political views there like there are here how are you going to manage, how are your employees going to manage do you think that it is the right idea in the right time >> we've been through it also far and i do think that it will be a real challenge. i think that it will be de detrimental to people's mental
health and it can be a challenge with parents, food and hospitality closed, i think that it will be more difficult than what we've seen before. and i just hope as a country that we can get that you together throug it together in northern island >> paul johnston in belfast, a pleasure glad you've gotten your second shot and that you and some of your residents there at the home are doing better i know it is a tough time right now, but we can see maybe the finish line. paul, best to you and your happy new year still on deck, retail looking to bounce back after a devastating 2020 for much of the sector, we'll break down whether better days are ahead for all but the big five stores. today's big number
lights are at least on frances rivera not far from there in new york with the very latest kind of a lonely morning in times square >> yeah, as it is this time of morning. the country bracing for a surge of new covid cases on the heels of the holiday travel season adding concerns of the new strain detected in the united states, the latest in new york state. president trump supporters are planning to rally today and tomorrow to prepare for any possible violence, the mayor has mobilized the national guard the president continues to push baseless claims of election fraud. tania rob bherts is still alive. several had reported that she tied monday citing her long time publicist. the hospital later clarified that she was still al live roberts was hospitalized xhm ed
christmas eve after collapsing while walking with her dogs in california those are your headlines >> i'm glad to hear that she is alive. i hope she recovers. what a bizarre story that is around ms. roberts >> yeah, especially friends and family who found out that way, but pump the brakes, she is still alive. hopefully she will take a turn for the better >> all right thank you very much, weird story there. still ahead, president trump and president-elect biden on the ground in georgia ahead of the key senate runoff elections there. ylan mui will break it down. and if you are going out, getting in thear, cwhatever it may be, check us out on the cnbc app. that's why i take osteo bi-flex. it helps with occasional joint stiffness, while it nourishes and strengthens my joints for the long term. osteo bi-flex.
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it is tuesday, january 5, and this is "worldwide exchange." welcome back or welcome let's get to the markets and your money after monday's big tumbles across the board, futures flat to slightly higher. we are not in the red, dow futures are up 44, nasdaq up 14. let's call the markets stable. your investments likely took a hit yesterday. dow falling nearly 2%, the s&p 500 with its worst start to the year since 2021 and its third wofrt ever really y really you have a wall of worry for stocks number one, fears of higher taxes if democrats take the senate two, you got the uk, scotland on total lockdown and the virus
spike along with the new strain popping up in the u.s. and iran getting aggressive and enriching more uranium and seizing a south korean oil tanker more on that in a moment monday the big winner was fear, the vix up 20% on monday, a big pump for the vix, one of the biggest we've seen in a few months it is unchanged right now. bitcoin also a big winner yesterday, it is down right now, bitcoin had a wild 36 hours over the weekend before down a couple thousand, up a couple thousand, it ended higher, now down 830. and when people get nervous, they often buy gold and silver or at least the etfs they were on the rise as well yesterday. about 95% of the s&p 500 ended the day gold, goown, gold and sd rise and the big political story today is georgia's senate runoff elections. kelly loeffler and david perdue
are against democratic challengers raphael warnock and jon ossoff now, if the democrats do win both seats, and it is a toss-up, the senate will be split 50/50, that would give the tie-breaking vote to kamala harris and democrats ostensibly control of the senate ylan mui is joining us with a look at the companies and industries that have helped turn the special election into one of the most expensive senate races in history and you probably have friends there, i do, every commercial break, all three commercials is a political ad >> that's right. the numbers in this race are just mind boggling a record amount of money flooding into both of these senate races here are the latest fund raising totals from all four candidates. david perdue has raised $89
million. but his challenger jon ossoff a whooping $138 million. meanwhile republican senator shkreli leke left loeffler. and for democrats, the top sectors behind them are education, law firms and tech companies. for republicans, it is all about real estate companies and investment firms interestingly, the health care sector has been a major donor to both parties these numbers all represent money that the candidates have raised directly. there is also a whole separate barrage of outside money that is also coming into this race and that tells a slightly different story. most of that cash is being deployed on behalf of republicans. the national association of realtors has spent $2.8 million in support of cavdavid perdue, american bankers association in december unleashed a million dollars worth of ads for senator are perdue and of course there is the
georgia victory fund set up on behalf of senator loeffler, one of the major donors there is her husband, who runs the new york stoek and th stock exchange and that fund spent $18 million on the campaign so far. >> so many here to unpack. number one, i understand -- please correct me if i'm wrong on any of this stuff a lot of this is your area, not mine polls close at 8:00 p.m. i think it is. but they have already begun processing ballots i think there is 3 million early voters the idea being that they can verify signatures, do all that stuff now so when they start counting tonight, we may actually get a resolution tonight. is that what you are hearing >> i'm search certainly owning so, but we were burned election night when the process dragged on so we are hoping to find out tonight. but it could still take time for that dounts to happcount to hap.
but clearly the market is watching this because they know if democrats do get those two extra seats, they will then have control of some powerful tools that they can groo use to enact particularly tax legislation that could have a major impact on the markets sgrp ye >> yeah, the reconciliation process has been used as sort of an iron fist by both parties to get things through the tax foundation has estimated if the biden full tax plan were to go through, a nonpartisan tax foundation, that it would mean an 11% increase in taxes on those with income over $400,000. i know that is just a couple million filers, but it is a big part of the cnbc audience as well there are some big numbers on the tax side that the cnbc audience really needs to pay attention to here. >> yeah, and i think what is also important that sort of gets missed in this whole debate over
whether or not biden would raise taxes if the senate does turn blue is what is that legislation going to be paired with. if they enact some sort of tax hike, it won't be by itself especially if they are using that wonky reconciliation process. so what type of spending provisions are going to go along with that and might those spending provisions be something that is actually palatable to the business community such as infrastructure those things have been paired together for a long time so how will they balance the revenue raising with the government spending. and the mix of policies is what will be important for estimating the total economic cost or benefit to the country >> and again, those estimates assume all the ideas get through. and i know we have to go, not taking anything away from the importance of the election for the people of georgia or the nation, but you've had joe manchin, democratic senator from west virginia and i think there is susan dole linynn collins an
others, they may not get on board of any major sweeping tax hikes, so call packing of the sprooem supreme cour supreme court. so even if the democrats take both seats, there may still be a tougher road to get some of the sort of major and more, you know, very liberal or very progressive ideas through. >> yeah, they will require the unanimity within the democratic caucus and that will be constrained by the most moderate members really from both parties to enact any sort of deal in washington so you're right, the moderates will have a much stronger voice in this new congress >> social 12.5% tax, over $400,000, reduction of the exemption, and by the way a lot of rich democrats live in already high tax states. it will be an interesting day and night. ylan mui, thank you very much. now to a developing
geopolitical story iran's revolutionary guard seizing a south korean flag oil tanker in gulf waters yesterday. these pictures come from iranian media. latest news comes amid tensions between tehran and seoul over iranian funds frozen at south korean banks but because of u.s. sanctions. ali arouzi is joining us live from tehran. good evening >> reporter: good evening. that's right, iran seized the south korean investigational south korean vessel in the persian gulf yesterday adding to all the tension. initially they said that they took the oil tanker because of environmental reasons. they said that it was polluting the waters close to iranian territorial waters but in reality, this is a financial dispute. the revolutionary guards took that vessel and because south koreans had frozen about $7 billion worth of iranian money
in their central bank, those funds were frozen because of u.s. sanctions the iranians have been accused of hostage-taking, but iranian government spokesman this morning said that it was iran's money that is being taken hostage. but this is adding to a lot of tensions building up recently over the anniversary of the killing of qassem soleimani ira had made numerous threats. looking for revenge. thankfully those threats haven't materialized, but iran is piling on the pressure on the biden administration even before they are in the front door. yesterday iran announced that them start enriching uranium at 20% purity, the biggest breech of the nuclear deal so far and that set off alarm bells in europe and beyond. eu spokesman saying this is the biggest breach of the jcopa and
raises serious concerns about nonpre-liver race, and benjamin netanyahu also said that this is a clear sign that iran is seeking a bomb so a lot of moving parts in this neck of the woods. >> how do all these latest moves, and there is a lot going on, all factor into iran he's nuclear deal and the possible road forward >> reporter: it will kompgly indicate things infinitely there is certainly a political will from the biden administration to get back into the deal but these moves are going to make it very dinktfficult. enriching uranium at 20%, seizing international vessels in the persian gulf will make things very complicated. and also president biden has talked about adding on add-ons to the nuclear deal which iran has dismissed out of hand. so, yes, both sides want to get back into the deal, but given
the bad blood between the u.s. and islamic republic and all the open wounds, it will be a tricky path to navigate i think i've lost you on my ifb. >> that's okay, i can hear you thank you very much, we appreciate you being live on the ground in tehran with that important story. and certainly folks, something to watch coming up, we'll change gears entirely and talk about you, the consumer, and the strength of the consumer this year and retail plus your morning rbi, and this one all about cold hard cash and maybe just maybe pretty bullish case for stocks. but first, as we head to break, here where some of the other top headlines on this tuesday. the fda telling health officials not to change covid vaccine schedules. the agency says people need two full doses this is after some had suggested cutting doses in half or just
giving one in an attempt to stretch supply two, fed speak cleveland fed president saying that policy will stay accommodative for xwquite some time even if the economy approves post-vaccine rollout. but atlanta central bank suggesting that they could trim asset purchases if the vaccine does boost economic growth and nasdaq listed chinese platform dibilly billy planningt coare more than $2 billion in a sendy listing in hong kong
early christmas numbers are in for retail and they look pretty good. mastercard data reporting sales up 3%off last year, of course a lot of that due to the trend for online shopping and that could lead to a fourth quarter of 2020 same store sales bumps of maybe 7% year over year. for more on the holiday retail season and the trends here to stay, let'sbly in director of consumer research at refinitiv i guess with everything else going on, we should probably be pretty happy with a 6.9% or 7%
number year over year. >> absolutely. it reflects healthy u.s. consumer spending. what is interesting it despite the pained consu pandemic consumers still bought holiday gifts and the number one gift was gift cards. and what is interesting, gift card sales don't actually get reported when consumers purchase these but instead they get recorded once redeemed and consumers are notorious for carrying gift cards in their wallets for months so we might not see the sales reflected into the fourth quarter financial season but rather later in the year when consumers redeem them. for the holiday season itself, there was an uptick in do it yourself projects and as a result the home improvement sector is expected to post the strongest same story sale at 17.1%. and consumers houses have also
been turned into gyms and as a result the sporting goods sector is also expected to be strong. and when you dig deeper into the data, it is interesting because analysts are very bullish on dick's sporting goods, vista outdoor, and even positive price stock momentum in lululemon and nike so it is expected that the sporting goods sector will continue to do well in 2021. >> yeah, something to do, get out, ride a bike, have the kids play baseball, whatever it may be, it is something to do. going back to the gift cards, because that can be really bullish for retail, i learned something from bill simon former ceo of walmart u.s., i asked him how much more on average do consumers spend if you get a $100 gifts of card, nobody ever spends less.
and he said that it ends up being 20%, 30% more. socards could be a hugely bullish factor for a lot of retailers >> absolutely. and so that will increase their same store sales either in the first quarter or some consumers might even hold on to those gift cards until the economy starts to reopen and more brick and mortar stores reopen which means that we won't see those transactions reported until later. also what is important, a lot of those $600 checks are starting to come in which will also boost a lot of the u.s. economy for the beginning of 2021. and our research shows that lot of this money will actually be spent online because the amount of money consumers spend on ecommerce, online sales, is
growing significantly. for 2020, ecommerce accounted for about 14% of overall total retail sales and this is expected to continue to grow even further in 2021 to 16.3% according to our data. so as you can see, consumers have been conditioned to shop online for a safe and contactless way and fast and efficient way of shopping and this trend is here to say. 7 in 10 americans telling us that even as the economy is going back to a pre-covid time and the vaccines have become widely available, they still are gravitate to shopping online >> it is fast and convenient for us, i'm not sure it is so fast and convenient for the distribution centers and the u.p.s. and fedex drivers and the mail guy and recycling center guys hopefully small business will stilt be a part of our shopping trends especially as we get back out in the spring.
jarron, thank you very much. happy new year on deck, it is your morning rbi and don't worry, it is not about card board boxes, but it is about cold hard cash and a bullish stat that could get you very excited about the coming year for equities even with yesterday's big drop dow futures up 38. and if you have not already, is you been describe to our new podcast. if there is a day you can't see us live, tell your friends out west who are probably just going it bed right now, worldwi"worlde exchange" podcast. can get our best deal. really?! mom! at&t has the deal for new and existing customers! i will. so what'd she say? wrong person. guy named carl. but he's very excited and on his way. word-of-mouth advertising. it's what they did before commercials. it's not complicated.
money. because with all the attention to crypto, there is still a ton of cold hard cash floating around the world and it just might be the strongest bull case for stocks after yesterday's big drop according to data research firm emfr, nearly $15 billion went into stock funds in the last week of the year that marked the eighth straight positive week of inflows, the longest run since 2006 so can it continue it just might. because check this out, last year money market funds basically saving accounts in the u.s. took in nearly $1 trillion. that is money market funds. that is a million. why so much? because likely for high earners, the lockdowns meant that they did not spend money on commutes, trips or dining out and a lot of us saved money so consider this, even if a
small fraction of that trillion goes into stocks, orbit quoin, that asset class will probably go up in price ran democrat bdom but interesti. and joining us now is chief i think nvestment strategist li bell i thought that rbi is a perfect intro to you because you smart folks in finance talk about money on the sidelines and there it is, a trillion dollars maybe in money market accounts just waiting for something to buy >> yeah, i mean i think it was the perfect setup. i've been saying for a while now don't count out the consumer, they really have the strength that has supported the stock market up side throughout the
year of 2020, the year of the pandemic and so i really think that there is a lot of cash on the sideline, consumers are just champing at the bit to put to work not only in the stock market, but also in the economy general. you know, no one is more excited for the economy to reopen than the american consumer. and because of that, i do think that it will be a strong driver of economic growth in the year ahead. and because of that, i think that you will be able to see corporate earnings come in better than expected, ceos and corporate management teams become more competents as the year progresses. and thus the earnings per share for the s&p 500 could be a lot better than what we're expecting now. and by the way, we're expecting to get back to levels seen in 2009 so completely making up for what was lost last year 2019 sorry. >> i got a second rbi, i'll
quote lindsey bell on this one, we have fallen 1% or more on the s&p 500 to start the year ten times since 1950 and half of those times we ended higher and in fact some of those years we ended up 10% so according to lindsey bell of ally invest, if you heard of her, it doesn't necessarily mean things will be terrible. >> that's right. first day of trading, you shouldn't read too far into it you can look at the january barometer, but the first day of trading like you said, in ten times since 1950 when the market has been down aeeen down 1% or a up 10% or more for the full year also you have seen in three of those ten years the market declined 10% or more so really it is almost like a coin toss when you are going into the use and looking at the first day of trading so i wouldn't read too much into
it also you have to take into consideration what is going on, we have a lot to think about especially with the senate runoff races in georgia, the presidential transition and vote in congress tomorrow and then on friday, of course get the jobs report for december and we're expecting to see the deceleration that we've seen the past several months. so there is a lot on investors' minds as we enter the new year which by the way, we're entering it at stretch valuations and stretch prices in general. so i think investors are taking a bit of a pause here. today i know this morning the market is flat and we're in kind of wait and see mode especially until we get into earnings season i think for the fourth quarter and that is not going to be until later this month and we'll get to hear from ceos, cfos, about how business really is going on the ground
>> very quickly, with that, again, not getting political, i'll read you something related to georgia here, this is from a tax foundation paper october 22, in 2021 on a conventional basis, they analyzed biden's tax plan, top 1% would see their after tax incomes reduced by 11.3% due to hire taxes on income above $400,000, top 5% reduction about 1.3. i know those are fairly successful people already, but those are big numbers for our audience and your clients. how closely are you watching georgia? >> i think that we're watching georgia, it will make a difference in the makeup of congress and it is an important race. but at the end of the day, even if the republicans win -- excuse me, the democrats win both seat, you still have a 50/50 majority there. and i just think that,
you know, that the tax issue is not going to be the key issue for this year. especially in the first half of the year or first 100 days of a biden administration it will be about getting the economy back on their feet and that might include more stimulus or an infrastructure plan so i think taxes and regulations will be on the back burner >> lindsey bell, great to have you on happy new year, we'll see you again soon and it goes quick, doesn't it? that does it for us. du futu dow futures up 51 we'll see you tomorrow.
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futures pointing to a slight bounce after the s&p 500 suffered its first negative start to a year since 2016 politics and your money, georgians will vote for two senate seat today that will decide the balance of power in congress and new virus concerns, the faster spreading variant was discovered in new york state as the uk enters a national lockdown it is tuesday, january 5, 2021 and "squawk box" begins right now. >> welcome to "squawk box." i'm becky quick look with joe kernen and andrew ross sorkin. we'll start with the markets if you were watching yesterday, that was really something to see. stocks actually dropped to kick off the new year the do