tv Worldwide Exchange CNBC April 13, 2021 5:00am-6:00am EDT
♪ you're so unbelievable ♪ ♪♪ applebee's irresist-a-bowls are back. dig in for just $8.99. ♪ you're unbelievable ♪ now that's eatin' good in the neighborhood. it's 5:00 a.m. in d.c. 5:00 p.m. in beijing here is the top five at 5:00 bubble fears overblown what bank of america has to say about the state of the market. beijing has a new message for one chinese tech giant shape up or ship out this as china's government sends war planes over taiwan and a message to washington. thought the spac surge was
slowing? think again. deal makers announce the biggest blank check merger to date. the vaccination boom rolls on as hospitalizations decrease in the country former fda commissioner is here to weigh in. and fallout over georgia's new voting laws. it's tuesday, april 13th, 2021 and you're watching "worldwide exchange" on cnbc. good morning i'm bertha coombs in for brian sullivan here's how your money and global markets are setting up the day stock futures indicating not much action at the open. the action follows this morning follows slight declines for the
major advantage adv averages ye. 400 of the s&p 500 are higher in april. nvidia up 14% this month after a big pop yesterday. let's check in with brian now. you worked out technical difficulties good morning, brian. >> technical difficulties, bertha i was outside getting the garbage ready. enjoying another 5:00 a.m. morning. normal stuff we do during the week yes, i got everything. i plugged it in. it worked. bertha coombs, thank you very much thank you for joining us on "worldwide exchange. sometimes things do that have you tried rebooting bertha hit the stock market. dow futures on the move. in the meantime, in bond land, big inflation data out today that could, could rattle the markets if it comes in a little
bit too hot. we will watch that as well we have some in the markets wondering if it is possible rates could rise sooner than expected it did not get a lot of attention, but fed official put on his health official hat and said that once vaccinations reached 75% of the population, it would be possible to begin talking about tapering whatever you think about his comments on that at the current pace, we might able to get to that point by mid-to-late summer it is possible, at least based on bullard's view, the fed is talking about raising rates later this year. interesting comments and did not get a lot of attention, but maybe should have. to the other top tuesday stories. credit suisse has cut bonuses for the staff by hundreds of millions of dollars all in the
wake of the archegos scandal and its related $5 billion loss. no comments from credit suisse as of yet. the magnitude of the cuts will be revealed next week with quarterly results. janet yellen will reportedly decline to name china a currency manipulator in her report due out on thursday. the move would allow the u.s. to side-step a flash point with beijing. this is a reverse from the previous stance of steve mnuchin. more economic fallout for georgia. that following the passage of the controversial voting law will smith is pulling the film production of "emancipation" out of the state and moving it instead to louisiana a slavery-era drama produced and financed by apple studios is the first major production to cite
the law specifically as a reason to leave the state remember, georgia offers generous tax incentives to hollywood productions. it has become a major hub or marvel and studio heavyweights. taiwan defense ministry says china sent 25 war planes into its air defense identification zone this comes a day after secretary of stating antony blinken said they were ready to defend taiwan taiwan is part othe sovereign territory. we will continue to watch this for you over the straits of taiwan staying with news from china. a developing story as the china crackdown on technology and alibaba. regulators calling on the ant group to revamp the business in
the wake of the multibillion dollar fine. we have more on this story with arjun. >> reporter: the ipo was pulled by the regulators over regulatory concerns and regarding financial technology of fintech ant group was asked to rectify the business we know what that looks like the regulators asked ant group to set up a separate financial holding company. they must also create more separation between alipay that it runs and the credit products. they need to increase data production and scale down a money market fund. at one point, this was the largest money market fund in the world. this comes after, as you mentioned, alibaba, the company faced a $2.8 billion fine over the anti-monopoly investigation
here in china. this is removed a source of uncertainty for investors in alibaba. we saw hong kong listed shares of alibaba higher yesterday. they are slightly lower this morning. this does clear the black clouds hanging over there are still a few concerns, i would say, going forward particularly around ant group. this company after the ipo would have valued over $300 billion u.s. dollars which is massive and now with the new regulations could hurt the valuation significantly. finally, the biggest question is the crackdown on jack ma's empire that is the question inn investors will look at that, brian, back to you >> arjun, ant group would have a
$300 billion u.s. valuation? it is that big >> reporter: it was huge, brian. mammoth. if they had gone to market in a dual listing as planned in november in hong kong and shanghai, that valuation would have been pegged at over $300 billion u.s. it is a huge company it has hundreds of millions of users using its alipay mobile wallet you use it at stores and you use it online. it is ubiquitous it is not just about mobile payments, but pushing heavily into loans and credit. many of these other areas which had very high margins for the company. that was one of the things that is concerning regulators a tech company like ant group is pushing into what banks would have traditionally done and the regulators are concerned about systemic risk that stems from that the other argument is the government wants to tighten the grip on the technology companies
that may feel have grown a bit too big for their boots. that is the other side of the equation lots at play the regulators are not just looking at alibaba and ant group, but widening the net on other companies here in china. the markets will watch closely as to what happens next. >> i guess the equivalent here, arjun, is amazon started a bank and a banking mobile app and everybody used that, but only with amazon. that would be a good rough analogy to what ant group is >> reporter: yeah, absolutely. given the scale of amazon. that is the scale we're talking about. bigger for ant group >> even bigger arjun, thank you very much big crackdown in china they are sending fighter jets over taiwan. a lot to watch there. a lot to watch here, by the way. when we come back, just when you might have thought the spac
trade was slowing down, investors brace for what might be the biggest deal yet in the spac space that could come as soon as today. later, blazing and scorching. sizzling how do you describe the red hot housing markets? the morning's rbi and how hot it really is. those stats are on the way [music: “you're the best” by joe esposito] [music: “you're the best” by joe esposito] [triumphantly yells] [ding] don't get mad. get e*trade and take charge of your finances today. everyone wakes up every morning to a world that must keep turning. the world can't stop, so neither can we.
all right. welcome back good morning or good evening. latest survey.a is out with the it is long, but some of the headlines from the report are this 66% of fund managers say the equity market is in a late-stage bull market. only 7% think it is in a bubble currently. among the top risks to the market, the bond market moving may be caused by inflation also concerns over higher taxes. you know what you don't see on the list covid and pandemic dropping off the top three risks. now of the most crowded trades 32% say it is long technology, but that is down from 80% worried that big tech trades were over hot in september to see if he agrees with this, joining us is the portfolio manager josh wynn. good morning
is a bond market shift like the one we saw a month ago, is that still the biggest risk >> i suppose it is i think it is more inflation and we're starting to talk about inflation more that offset in inflation and yield on the 10-year about a month ago, the market was not so sure. now as we march steadily higher and i think growth is winning the day. i don't see inflation as an enormous risk right now. i think we can talk ourselves into a frenzy as it relates to inflation and the resulting bond yields i don't see that as an enormous risk i think it is more the perception i think the fed telegraphed the idea of the elevation of inflation and tried to do a good
job there. i would look at taxes. i think taxes is something that is not fully appreciated >> and we're talking taxes negotiations continue on they look like we might see a jump in corporate rates or upper income individual rates. let's talk big tech. one of the names and you brought names for us which we love is a big tech company it is not one of the faang stocks unless we add "e. what do you like about e-bay >> it brought me back with b-to-b and b-to-c. the younger generation doesn't appreciate e-bay was the n nonfungible token. e-bay is quite relevant.
they divested their stubhub. in our growth fund, we look at return on capital and price to cash flow. strong returns on capital at roughly 50% and 16 times cash flow they're growing. gross merchandise volume has grown at a nice clip in the last 12 months. i think it issomething people forget about i think we all know what e-bay is and we wkind of forget >> it has shifted. i actually think i bought a pair of skis on e-bay in 1997 i'm not kidding. and oracle not a name we forgotten, but it doesn't get the attention because we have not heard from larry ellison in a couple of years. >> it is not ant financial exciting oracle has been doing their
thing in the database market and 30% share in the relational database market. again, it is holding in the large growth fund and strong returns on capital incredible free cash flow generation roughly 70% of the revenue is predictable and recurring. the support and maintenance with the company like oracle gets from customers i think investors wait for growth to return as more clients migrate to the cloud and more application-oriented services are offered to clients and accepted i think we get the up side in eve eventual growth. market and expansion and steady growth just as relevant now as ever >> amazing e-bay and oracle i have a picture of me at nasdaq in 1999. e-bay was $300 a share
i'll have to repost that picture not just for my haircut, but for some commerce. yahoo! josh wein, thank you very much there you go cmgi all of the companies josh, thank you. good stuff still on deck. where sonoma or wawa meets spacs. one wine maker's ambitions to go public and one woman's plan to take that route. >> announcer: today's big number 37%. the share of tech stocks that were unprofitable over the trailing 12-month period according to bernstein the second highest level after the dot-com collapse (it's a skirt... and shorts) the world is going hybrid. so, why not your cloud?
change is all around us. shaped by technology and human ingenuity, we can make it work for you and your business. not many companies in the wine business have gone public we've had a few and of the bigger ones have expanded into spirits or beers this could change. as one company is set to go public next month through, yes, a special purpose acquisition corporation, better known as a spac terry wheatley will go public via spac
the valuation of $690 million. terry, i don't know whether to say good morning or good evening. you are joining us from california we appreciate it by the way, i have paid for this interview many times over in br and cameron and brown. glad to have you on the program. why do the spac? why now? >> why now is the perfect time when you look at what is happened during the pandemic with a lot of smaller wineries struggling there's over 10,000 wineries in the u.s. and there was a recent study saying over half were willing to sell. accessing the public markets right now to bring extra capital in to be able to acquire because if you look at our track record, we have been able to acquire 20 companies in the last ten years. it is a perfect time to access public markets.
>> and is that the idea to use the proceeds people don't know vintage wine estates. they know the brands you have many others is the idea to continue to roll up and scale up other vineyards? >> absolutely. that's been our model for the last 20 years. as i said, 20 acquisitions in the last ten years what we see now is we can go and not only accelerate our organic growth, but we will have a 9% organic growth we will do that in the past and in the future. and then a rollup. we could have two tohree acquisitions a year. in the business model, we put in one. our track record says we can do more it is a rollup model >> you know, the wine business in particular, terry, without getting into it where you are --
my home state, california, it has had climate issues and wildfires. i know vineyards destroyed, but you also smoke tint on the grapes i have friends out there they say it doesn't have to burn it can still damage it is the wine industry in general changing are we seeing values move north? maybe oregon is the next sonoma? >> for us, that's one of our strength our diversification. we have prime vineyards in napa and sonoma and up in oregon and washington if there is a wildfire in the napa valley or sonoma, we are able to quickly go to the s central coast or northwest and fill what we need. diversity indication is absolutely critical in sourcing. diversification in the
distribution model if you look at our company, that's why we're so excited about the future we're positioned with a three-legged stool we have 30% of the business in the direct-to-consumer channel 41% in the traditional whole sale that is the big distributors another 29% in the b-to-b. that is a different model. diversification on sourcing. in the central coast or northwest and then pivot with an economic downturn. >> vintage wine estates. like bespoke, you have begin an whiskey. terry wheatley, we will let you go to bed.
terry on live this morning from california thank you very much. >> thank you you're very welcome. with that in mind, let's check on the other top headlines also welcome in somebody on a more humane time zone. nbc's frances rivera in new york with the latest. good morning, frances. >> good morning, brian we start with breaking news near minneapolis. police enforced a curfew on the second night of protests 40 arrests were made overnight officers were hit by debris and reports of looting at five businesses these protests are in response to the death of daunte wright who was shot by police his family is expected to speak out today at a press conference. one student is dead and police officer injured after the shooting inside the tennessee high school. the shooting happened at 3:00 in the afternoon in knoxville the police ordered the shooter
out of the bathroom. the sthooter was a student and died at the scene. there were two victims, including a police officer the campus is closed for the next two days as police investigate. president biden is planning to nominate the first female secretary of the army. christine warmuth was a former top policy official under the obama administration she joins other women including kathleen hicks. and anthony neyer completed the 7/10 split during the u.s. open semifinal match he is the first to make that move on tv and fourth person ever to make the 7/10 split during the televised game. he is called the ginger
assassin pretty impressive. >> two things. with that shirt, they should call him the fashion assassin. i don't know anything about bowling. the pin bounced off the back wall that's fine. you usually want to cut it however you do it, congratulations to the ginger an as assassin >> frances, when you and i finally start our whiskey brand. ginger assassin. >> he better get a trademark >> straight up frances rivera, thank you very much >> sure thing. from straight up to straight ahead. why johnson & johnson is getting blowback from the astrazeneca
vacc cce. dr. margaret hamburg is here with more on that. we're back after this. ♪ i wish that i knew what i know now ♪ ♪ when i was younger ♪ you need a financial plan that fits the way you want to live in retirement. a plan that can help grow and protect your money. now or in the future. with an annuity in your plan to help cover essential expenses, you can live the retirement you want. the right financial professional can show you how. this is what an annuity can do. ♪ ♪
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>> reporter: brian, grab is set to announce it is merging with altimeter. the public listing would value the southeast ride hailing startup at $40 billion reuters says it includes a private investment in public equity from a group of growth investors. virgin atlantic ceo is warning that business travel may face a long-term hit it may never fully recover speaking with the financial times, cy weis is planning for a reduction in corporate trips he expects a 20% drop compared to pre-pandemic levels in the next two years. australia announced it will not buy johnson & johnson's one dose covid vaccine j&j's treatment is similar to astrazeneca's vaccine which
australia has already contracted to buy the astrazeneca shot has faced mounting questions of blood clo clotting issues. dr. fauci says the astrazeneca vaccine is a good one from an efficacy standpoint if safety issues can be sorted out it might not be needed in the u.s. because of supply levels from other vac evencine makers. a few hiccups along the way, but considering a year ago, we were trying to figure out what this disease was. it is an incredible feat >> you know, i remember being back here in louisiana, with the first batch in december. bertha, i got emotional. i saw people get vaccinated. this is the beginning of the end. i still get the chills just now. it has been amazing. >> i got emotional when i
scheduled my shot. even getting that appointment was very emotional >> it's been hard in parts of the areas. it is emotional. bertha, thank you. let's stay there and talk more about the virus and vac ecine rollout. time for the covid vaccination update 22% of americans are fully vaccinated all americans. it is about half the people over the age of 18 that have received at least one dose of some kind of vaccine this follows a boom weekend for vaccinations the u.s. issuing jabs to 4.6 million people in the single day. most first doses a lot are the second or in the j&j, the only. despite the break neck pace, we are not out of the woods yet 8% rise in new cases in the past week much of that is skewed by
michigan and parts of minnesota. cases and hospitalizations overall are way down in america. in the united states, michigan anyway, a jump 39% of those cases are thought to be the british evolution of the bug. it is a little more contagious a new study in "the lancet" shows as the british variant is not more dangerous despite other stuff you might have read a couple of weeks ago. some good news from "the lancet" about the british variant. case counts in the u.s. are 70% below the highs of january sadly, globally, a different story. data compiled by fund stretch shows cases nearing all-time highs around the world specifically with india, brazil and chile. each reporting 150,000 new cases per day. that's about three times the u.s. average
to help navigate here and joining us is former fda commissioner and assistant director of the national association of infection diseases is dr. hamburg. the rollout a few months ago it is looking pretty good with the vaccinations do you still look at this as a good measure with the race against time >> the advent of exvaccine is a extraordinary event. we are in the position to get the virus under control. we are not there yet it is a race against continuing spread and continuing evolution of variants. we have to be mindful. we have to continue the public health intervention that we know make a difference. we have to push vaccine out and
make sure everyone who wants vaccine gets it in the united states and around the world. no country is safe until we get vaccine to all countries and really combat this coronavirus pandemic through the remarkable scientific advance >> it has been truly incredible with the thought the moderna vaccine was created in a weekend in late january of last year speaks wonders to the mrna technology that said, and i don't want to generalize across the united states, doctor, but i look at the data every day i have been out there a little more optimistically pumping the math and numbers behind it it looks like we're going to hit certain areas were hard to believe -- vaccine supply will o outstrip demand. >> that will be true in the united states. we have to think about this as a
global pandemic with global solutions. the fact we were able to go from the discovery of a novel coronavirus back in january of last year, the posting of the genome on january 10th by chinese sighcientists and vaccis ins arms of people in less than a year is extraordinary. it reflects the power of science and scientists working together across government and industry and academia and across borders. you know, the vaccine, both mrna technology and other vaccines that have been developed, were developed at unprecedented speed thanks to collaboration. it reflects investment in science over a period of decades. we can't forget that science and investment in science are driving the kind of advances that can help us to
combat coronavirus, but the other big challenges that loom before us. >> i'm embarrassed to admit this, doctor, i was standing around the other day and eavesdropping on a conversation. they were talking out loud a group of folks talking about what vaccine they had had. which one did you get? moderna. pfizer and talking about which one they prefer one of the people, i'm sorry to say i'm eavesdropping. one said i didn't want the j&j they were trying to choose the vaccine at that location should we be that choosey? would you take the j&j vaccine should people decide which one they want to take? >> right now, when vaccine supplies are still limited and the pandemic is still raging,
strongly recommend people take whatever vaccine they can get. these are a set of vaccines that are really extraordinarily safe and efficacious. there are a difference some prefer one and done others have been very impressed by the new mrna technology they are good vaccines and they will make a difference you should take which ever one you can get. i'm glad people are learning a lot about how vac ecines are developed and thinking about health choices in their lives. >> you know, listen, whatever people out there have different views on vaccines, i have friends that will not take it. i have friends in line the first day. i'm sure we all do whatever your decision, when people take it, especially my folks who i was able to see for the first time in over a year. the joy they feel like they will start to reengage with normal
life at least in parts of the areas where we are still really concerned about is heartwarming. dr. peggy hamburg, thank you for coming on the program. >> thank you all right. coming up, it is one of the most highly anticipated market debuts of the year. leslie picker. not the market debut we are anticipating leslie she will layout high stakes taking shape with oinbase direct listing dow futures up 34. they're up we'rba rhtft ts.e ckig aerhi ♪
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gold bond champion your skin today's most random, but interesting thing has to do with maybe everybody's favorite topic. not sports real estate. you are smart enough to watch and listen to cnbc, you know the housing market has been red hot. that may not be a strong enough description. blazing, scorching, sizzling listen to this random, but interesting stuff from redfin. pending home sales up 24%. average sale price is up 17% one reason the number of homes listed are down 42% nobody is selling their home because if they do, they have to
pay up to buy somewhere else if that is not enough, 59% of homes, that did go on the market, had an offer accepted in a week 42% of those, 42%, sold above the list price it is the perfect storm of demand from people moving to get out of cities and people needing more space for the home office super low interest rates and all that money sloshing from extra savings during lockdowns or entirely something else. however you look at it, real estate is on fire. hopefully not a long-term conflict random, but interesting. on deck, inflation earnings and the market's advisers. delano is here and the news he is telling his clients to make amid the data including one big tech name that he is red hot on.
if you have not subscribed, subscribe to our podcast check it out and go back to 'rba rhtft ks.id wee ckig aer this. 're planning for your future. maybe it's for kid number two. or employee number two hundred. maybe it's understanding the real value of your business. or ensuring that what you've built, will be taken care of for a long time. whatever you're planning, you don't have to do it alone. we'll make that part of your plan. you have a team who's been preparing for all kinds of futures for nearly 170 years. learn more at massmutual.com i hope the vaccine can get me one step closer to my fiancé. dance on stage. spin class! i can't wait for my patients to see my smile again. to hug my students. to give my parents a proper send off. to go salsa dancing. no. i can't wait for you to meet my mom. play my piano for my friends. to give high fives to our patients.
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worth is knowing why. ♪ ♪ principal. for all it's worth. coinbase set to become a public company in the most highly anticipated market debut of the year. that direct listing on the nasdaq is coming as cryptocurrency is hitting new highs. bitcoin doing so in last hour as so leslie picker has more now with the buzz surrounding coinbase. it's early rescue the show, leslie. >> reporter: bit doco is a good name tomorrow's debut of the exchange is a traditional exchange.
that is the nasdaq's first large direct listing all of the others in recent years went back to new york stock exchange direct listing have been an increasingly popular way of going public direct listings so far have not involved capital raising they will not set shares at an ipo price, but the price is determined by supply and demand in the market. nasdaq has the high stakes and it is important to show it can execute listings like the competitor nasdaq collects the same listing fees regardless of debut type. it needs to go where the money goes money is going to direct listings coinbase could be the largest ever direct listing by market cap. coinbase is valued at $90
billion. slack was a quarter of the size when it debuted. spotify was a third and roblox was half of that and coinbase could impact the volume of shares tomorrow. if all goes as planned, the deal could help the nasdaq break into future direct listings brian. >> is there anybody you are talking to, leslie, and areyou talking all day long i post aed a picture of me on wl street in 1999 everybody who you talk to says this is getting nuts or no >> reporter: one of the benefits is the listing and nobody has to say this is what we think the company is worth you go out and into the market and see what the market decides what it is worth i think when you have a company
like coinbase or other names, that was an attractive feature because they did not want to do the dance on the first day of trading of you gave money to investors and left money on the table for the company or vice versa. you were too greedy and the stock price went down on the fare first day of trieading. this is all supply and demand. this is up to the market to decide what the company is worth tomorrow >> you know, in '99, people forget i'm not comparing the two, but i am we had something called e-money. andrew klein wrote a book. tried to change the way we ipo we learned through google what a dutch auction was. the markets tend to be good at creative ways to do new things i would assume raise some fees in the process, leslie >> reporter: yeah. one of the other attractive
features of direct listings are they don't require as much in the way of fees for wall street. a lot of the renegade companies see that as another attractive feature. there are still hefty fees involved tens of millions of fees paid to bankers alone. they serve in an advisory capacity they are still there nothing like some of the larger deals which could take in hundreds of millions of dollars for the underwriters it is significantly less than that still, not cheap >> there will be fees. it's the new movie leslie picker. great stuff. coinbase leslie, have a great day thank you. >> you, too. thanks. check out bitcoin orb bitco bitcoin at $63,710 p0 and light
coin up. we have guidance starting to kick in this week. tomorrow, every major back or most of them coming out with the numbers. we're joined by delano, the founder at new street advisers delano, good to see you. do you think it is getting snuts nuts spacs and cryptocurrency do you feel like there is a frothy element >> i think bitco is a new company you formed to your point, brian, when you have the elements of breaking into something new, there are bits and pieces of that element that will seem frothy. we are breaking into something
new with cryptocurrency which has staying power. we know now institutional buy in the direct listing of coinbase which will change the sentiment of the investors you will see things that lose their value you and staying power. you mentioned everything changed things forever and do a lot of great good that is where we are right now on that precipice right now. >> okay. i bring this up because you brought us a stock pick which we love you will not like what i have to say, but yesterday we had the nuance and microsoft deal. they paid $56 a share. i put on the a picture of nuance and the stock was down over six years. $20 stock less than two years ago. microsoft. a five-year chart of nuance?
thank you. the point i'm trying to make, delano microsoft could have had it for $20 a share two years ago. you still obviously like the stock and convinced that they are making the right moves you don't sound like you are worried -- thank you, guys these companies are starting to overpay. you have to. >> yeah, yeah. you are right. with the microsoft deal. microsoft is very aggressive you saw the name thrown in tiktok bid they have been overaggressive. that is what management is seeing for what they are trying to drive with organic growth when you have a market with things going up and the back drop has been strong the reopening. the effective rollout of the vaccine. the market back drop has been strong that drives up bidding microsoft could have paid less for nuance communications and now paying a lot more.
a 25% premium on friday's close. we are having a situation. >> you are not scared off. they bought linkedin doesn't sound like you are worried. you still like the stock how come >> 100%. i like the way management is growing. nuance communications deal is great for them to get in the health care area nuance is great with the big software provider. that is great for microsoft to further diversify. the business they have is so diverse and doing well for investors and this is a great deal that technology, ai technology, can be applied in other areas for microsoft. that is a very good deal that we will see things come from in the future once we see this deal close. >> the deal there at $56 a share. nuance is still not at that price. you wonder where that may end
up quickly before i let you go. 20 seconds here. macro market you think we have gains left this year? >> i think we do i think it has been relatively quiet. that is interesting. >> delano, thank you very much got me all the choked up there we go. bitco. davenport, iowa insurance company. it's been around for 100 years i don't think that name is available. that does it for us on "worldwide exchange. we'll see you tomorrow "squawk box" is next
it is a big day for data we'll get you ready for the new read on inflation. coming up after that report we saw last friday finally. it finally came out. we will see that bitcoin surging to a new high we don't talk yearly highs it is always all-time with bitcoin. that comes ahead of the public listing for coinbase full rundown on that straight ahead. vaccinations hitting a record pace in the u.s the cdc director is urging michigan to shut things down it's tuesday, april 13th, 2021 "squawk box" begins right now. ♪ good morning welcome to "squawk