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tv   Worldwide Exchange  CNBC  September 28, 2022 5:00am-6:00am EDT

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it's 5:00 a.m. on cnbc, and here's your top "five @ 5. the stock futures point sharply to a loyer open. and attention seems to be solely focused on the fed today they will have their say and possibly dictate the market's next move ubs's spokesperson is here. and one member of biden's economic team is planning her exit those details ahead. plus the imf slamming the
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new measures laid out by the uk government amid fiscal policy. and now hurricane ian is gaining strength before making landfall. a live report from the gulf coast coming up. it's wednesday, september 28th, 2022 you're watching "worldwide exchange" right here on cnbc ♪ and good wednesday morning i am frank holland in for brian sullivan let's kick off your wednesday morning with a check on u.s. stock futures after a mostly lower day for the major averages with the dow and s&p hitting their lowest level since november of 2020 futures right now as you can see right across the board, the dow looks like it opens at 100 points lower and the nasdaq and s&p as well. want to keep an eye on the bond market hitting multi-year highs the five-year, its highest level since 2007 4.19
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also the ten-year, highest level since 2010 you see it this morning at 3.988, just bumping against that 4% yield, something the markets are certainly watching and the 30-year long bond, the highest since 2014 also along with bonds we have to check on the rates for the 30-year fixed mortgage, the mortgage that most of us have for our homes. it's above 7% for the first time in nearly 20 years we're also watching the energy market, of course, with hurricane ian in the gulf coast. oil, however, staying most ly steady we're seeing wti at 78 bucks a barrel ice brent, 86. also always watching crypto. we're seeing bitcoin and ether, both lower bitcoin, below 19,000. yesterday it was just a tick above 20,000. a very busy trading day shaping up in europe let's send it out to our london newsroom good morning. >> it's a good morning to you.
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certainly the negative sentiment has come through from europe you've gotten the sense that things haven't been quite good you made note of the imf earlier. the uk economy has certainly been a big question mark around the energy savings, those energy price guarantee, which the uk government has put together. indeed noting that it's going to try to savearound 60 billion pounds that's just in the next six months or so it could cost anything more than that over the next couple of months as well of course, you have the expanded tax cuts that are unfunded too worries around inflation, worries around a recessionary outlook as well, affecting the market's more than 1% across most european markets. only the health care sector finding some sense of positivity, up there 1%. 1.5% in italy following the italian elections. certainly falling into that
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market picture then the sterling has performed this is interest criticizing the uk's plan for tax cuts and calling on the government to, quote, re-evaluate the situation, the group warning that the $45 billion package which was announced by the minister last week could fuel levels of inflation. it's engaged with uk authorities and it is important that the fiscal policy quote does not work at cross purposes to monetary policies. so we are expecting to see a further hike -- excuse me -- interest rates by the bank of england. how much that will be is certainly the question at hand. >> arabile, thanks for the latest great to see you. let's get to the top stories. our bertha coombs is here. good morning, bertha. >> good morning, frank white house officials are
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reportedly preparingfor the potential departure of secretary janet yellen after the midterm elections. the process is still in the early stages, and the decision on yelin or other cabinet replacements have not been made. in addition to yelin, axios also says the national economic council director brian deese could also be departing as soon as next year. lyft says it's freezing hiring until next year, citing the economy. it decided in may to slow hiring and rein in costs. shares are down 60% this year alone and up to 80% since 2019 they released a proposal meantime to restrict stock ownership and trading by members of congress. the president and vice president as well as supreme court justices and other high-ranking
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officials. the bill could be introduced to the full chamber as soon as today, but any vote on the measure is uncertain at this time in addition to equities, the bill's restrictions also cover commodities, futures, cryptocurrency, derivatives, and options. frank? >> our bertha, thank you very much we'll see you later on in the show. back to broader markets, u.s. futures with stocks trading at their lowest levels of the year and we also have a flurry of fed officials appearing to do their best at dampening the appetite for risk assets. all of them striking hawkish tones, calling for more rate hikes and keeping them high even if the economy should falter joining me now is chief investment officer mark haf aly. mark, great to have you here this morning. >> thank you. >> mark, let's start out with bonds. you put out a note yesterday
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saying the 10-year hitting the 4% yield it may not reflect the risk facing the markets, and you also believe they run too far the 10-year and others hitting multi-year highs what do you mean by that a lot of people are going to the bond market for safety and kind of a place to hide. >> well, i think that's what we're saying, right, which is that given where the fed is on having moved and continuing to move, the bond market is going to continue together some are saying it's starting to bite and you could see rates level off or fall from here as some of this growth comes out of, say, the u.s. economy. >> we're definitely already seeing some of that growth coming out of the u.s. economy, especially as you mentioned the tina trades falling apart. there are those bonds that have
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become alternative the fed doesn't seem like it's going to change its mind about the direction it's going in, but a better-than-expected inflation report does that change the market meaning meaningfully, and how much butter does it have to be? >> i think the fed has to see several better reports before they even consider pulling back from this rhetoric of hiking and things because if they -- if they pull back now in the face of even some moderate weakness and some of the data, they're just fighting against themselves ultimately they want to pull that inflation in. they want to see some of an impact before they change their rhetoric and so, you know, for us, i think being positioned more on the defensive side in equities, more toward the consumer staples, more toward health care, that's the direction we've been going because as we set up
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for the next earning season, we do think that analysts' estimates remain too high and end of the year targets remain too high. >> as you know on wall street, a lot of people say you buy on the rumor and sell on the news is there any chance that a better-than-expected inflation report, at least one, might start the thinking that fed may turn more dovish in the future >> we've seen that, you're absolutely right one good data point, and we get these sharp bear market rallies, and so -- that in part says to us that there is still a lot of liquidity sloshing around out there, and some of that is going to have to get sopped up before this is really over. so what that means is the volatility is absolutely going to continue and there are still people who are going to chase it but i think for many investors looking through that a little bit and focusing on the companies that can do well in a high inflationary environment, that have pricing power, is
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probably a better strategy than trying to hit every one of these volatile bounces >> so obviously the fed has its own data points. one question for you why isn't the fed listening to fedex? you saw the ceo of fedex come out and say, hey, things are really slowing down, and we've seen that in the supply chain. one of the things that's been a contributing factor to inflation, the supply chain has certainly lowered when it comes to prices and volumes, so why isn't the fed responding to that at all >> just to add to that, the futures were actually up this morning until apple said it has weaker demand for the iphone and then they turned around as well. it's too early for the fed to respond to that because that wage -- the wage pressure remains, and that employment is so strong. and if you think about, you know, for the u.s. to have a recession and really see that this slower growth is helping to pull down inflation, it's very
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difficult given what we're seeing on the labor side so i don't think they're going to relent until they start to see it showing up in the labor market. >> all right mark haeferle, thank you. when we come back on "worldwide exchange," vice president harris raising the stakes with china during an overseas trip to the region. the response from beijing. that's coming up. plus hurricane ian preparing to make land fafl as a category 4 storm. that's a report from the ground. that's coming up. and elon musk and his plans to terminate his bid we have a busy hour when "worldwide exchange" returns
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welcome back to "worldwide exchange." vice president harris went on a trip to china. it's called disturbing actions by beijing in the pacific and also pledging to deepen unofficial ties with taiwan. eunice yoon joins us now if there beijing. eunice, what's the reaction by leaders there to the vice president's comments >> reporter: well, frank, the signals are not being lost on the chinese. vice president harris spoke at a u.s. naval installation near tokyo, sending an informal
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reminder of the u.s.'s massive military presence in the region. her speech also comes after president biden had said that u.s. military personnel could be used to defend taiwan, an island that beijing claims as its own the foreign ministry warned against any attempts, calling them doomed to fail. this comes after days ago when the foreign minister had told the secretary of state antony blinken that the u.s. is sending dangerous signals to taipei. from japan harris is going to head to south korea where she is going to be visiting the demilitarized zone with north korea and also meeting with the president. the two are supposed to be, according to u.s. officials, discussion several different issues, north korea, taiwan, as well as the economic alliance between the u.s. and south korea and more specifically the expectation is that she's going to talk about chips and the tax
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credits for ebs as part of the u.s. inflation reduction act the koreans see that program as discriminatory against south korean cars. frank? >> well, eunice, dating all the way back to the trade war, we've seen china make some harsh responses, i would say, to comments from u.s. officials does it appear china is tempering its responses to u.s. officials, especially this comment? >> reporter: well, with this comment it does seem much more muted, which is an expectation given the timing of everything by that, i mean we're only weeks away from a massive political reschauffele where president xi jinping is seen as taking a third term everything is seen as taking a turn toward stability, making sure the market's stable and making sure the tensions between the u.s. and china over the
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island are stable as well. in fact, we had president xi jinping appearing on state tv recently to kind of send the message he's still in power, he's here, he was walking around with all of his top leadership to make sure that there isn't any question about his position. >> all right, eunice yoon, we'll be watching your reports all day. we know you're on top of the story. great to see you as always. up next on "worldwide exchange," your top stories including mcdonald's rolling out a happy meal for those who are at least young at heart. you've got to see this one stay with us >> announcer: today's big number 87%. that's the share of companies that went public in the u.s. last year that are trading below their offering prices, according to data by deal logic. shares of those ipos have lost an average of 49% in that period as of friday's close
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welcome back to "worldwide exchange" "worldwide exchange. we'll take a quick look at the market the futures opening up at almost 300 points lower at this point i want you to check out this slow steady decline in futures over the past hours. take a look at this chart, as apple warns about slow apple demand we look at laggards as well as
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apple. also unitedhealth and microsoft down and also jpmorgan chase we're keeping an eye amazon down 2% one of the better performing stocks is netflix right now, only down half a percent you see google down half a percent as well. welcome back we want to get back to a developing story this morning. hurricane ian is moving north through the florida coast and is set to make landfall in just a few hours, and just moments ago, strengthening into a category 4 storm with maximum sustained winds near 140 miles per hour. ahead of the storm, amazon is temporarily closing warehouses while universal and walt disney world in orlando is temporarily shutting down and nasa is scrubbing its moon mission and putting its lockers back into storage. chris, i hope you're safe. but what are you seeing out
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there? >> reporter: yeah, frank over the last half hour or so, the rains have started to intensify. the rain is picking up quite a bit. we're still hours away from the storm. the good news for tampa bay is it looks like this storm is going to make landfall south of fort myers and sarasota. but, still, we're in the path as you mention. state officials say the time for preparation is over and now people are just bracing for impact overnight hurricane ian brought high winds and heavy rain to the florida keys and spawned several tornado warnings across south florida, state officials making one last plea before landfall. >> i implore, i urge everyone that is in an evacuation zone that has been asked to evacuate, the time is now. you must evacuate now. >> reporter: about 2.5 million
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floridians have been asked to evacuate at times they were bumper to bumper, the airport packed with people trying to get on the last flights out, although, not everyone was excited to leave their homes. >> you're not planning on leaving that house >> no way. >> why not >> because i like it there. >> reporter: others were happy to head to one of the many public shelters on higher ground state officials fear ian will bring down trees and power lines, flash floods an devastating storm surge to a wide swath of the state. >> we can rebuild property, fix infla structure, fix your home you don't get a mulligan when your personal safety is at risk. >> reporter: they're urging people in the storm's path not to make a fatal mistake. >> mother nature wins every single time. >> reporter: a monster threat now arriving and forecasters say this is not just a southwest florida problem. once this storm makes landfall later this afternoon or early
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this evening, it's expected to slow down even further, meaning that while there will be lots of storm surge where the storm hits and lots of rain as it moves inland to places like orlando, it's going to cause flash flooding there the ground is already saturated from summer storms leading up to this and then it will move to the eastern part of the state and even offshore off the east coast of florida forecasters say it could cause record storm surge in places like jacksonville and places off the atlantic. >> a very concerning storm i saw that this is the first time the storm has hit tampa bay for the first time in 100 years? people are more used to this, but first one in 100 years this time. >> reporter: yeah. i think by and large in my experience over the last few days, it appears that most people have gotten out or are ready for this they seem to be taking it very
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seriously. there are always going to be those who say i'm just going to ride it out. and if they're not in evacuation zones, they might be okay, but essentially state officials say, look, if you're not going to get out, there's going to be a point in the storm where we can do nothing for you if you call for help. >> chris, you're a trooper stay safe. thank you. straight ahead here on "worldwide exchange," with stocks on track for their likely seventh down day in a row, our jon najarian, he's here to break down the unusual "options action" and also talk the markets a bit. and also a reminder, the markets continue their volatility. right now the dow futures look like they're going to open about 300 points lower cnbc's delivering alpha. it returns today go to stay with us
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the selling set to continue. futures are pointing to a lower open heading for the exit new details on the biden administration reportedly racing for janet yellen to wrap up her time as the head of the treasury depart department and failure to take off. the names that are getting hit the hardest and where the opportunities may be in the sector it is wednesday, september 28th. you're watching "worldwide exchange" right here on cnbc ♪
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all right. welcome back to "worldwide exchange." i'm frank holland in for brian sullivan we want to point out the drop in the futures t dow almost 285, 300 points lower that's how it looks. it will open up 1% lower for the s&p and the nasdaq, half a percent lower. we want to watch the bond market the ten-year topping 4%, first time in 14 years at 4.005% we're also seeing still that yield curve inversion with the 2-year note at above 4.25. we also want to hit oil especially as hurricane ian is hitting the gulf coast and cutting production we're seeing pretty much the same levels. wti at 86 a barrel brent crude at 76. what we saw all day long and yesterday morning. >> some of our top stories, our
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bertha coombs is back with those. good morning again. >> good morning, frank congress making progress in avoiding a government shutdown with the clock ticking down to the deadline the senate voting last night to advance a stopgap funding bill, this after senate majority leader chuck schumer removed a highly contested energy permit provision that was being demanded by senator joe manchin. the bill, which will extend current government funding levels until mid-december now moves to final passage in the senate and will also need approval in the house before saturday's deadline. the biden administration is reportedly preparing for treasure secretary janet yellen's potential departure from the administration, that according to axios her exit would come after the midterm elections and would mark the first and most significant departure from the economic team axios adds in addition to yelin,
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national economic council director brian deese could also depart as soon as next year. and elon musk and twitter fighting over several matterses during tuesday ahead of their trial over musk's failed bid to take the company private among the issues raised. twitter claims musk's own data scientists did not support his claim that the number of fake accounts on the social media platform is, quote, wildly higher than the estimates. musk's legal team said they need time to respond to these new claims by twitter. this is going to be a very interesting trial to watch, frank, to say the least. >> bertha, all i can say is the saga continues thanks for the headlines. stocks are up against a roughly heavy trading day. again, we're seeing dow futures down about 270 points. overall the nasdaq looks like it will open a half a percent lower. with only a few days left, all
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indices facing a steep losses in what is generally historically one of the worst trading days of the year the dow down more than 7.5%. the nasdaq, 8% for more, let's bring in jon najarian great to have you here, jon. >> great to be with you, frank thank you very much. >> we're going to get to your option activity in a bit, but i want to talk about the breaking news the ten-year yield higher for the first time in four years >> yesterday kashkari was talking about he didn't say there needs to be more pain, which is what powell said after jackson hole, but certainly, he said, we're going to see more of the same action that the fed has already done, which is continued raising of interest rates to try to slow down inflation, and, clearly, the markets are not
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happy about that obviously this is something that impacts all borrowing from credit cards to mortgages to the government itself, and the government is the largest borrower, frank. >> one factor in the markets, though, the futures warning apple flag i phone demand. i don't want to focus on this too much, but do you see that impacting the market apple such a market indicator of the consumer and also a big mover and shaker when it comes to the supply chain, importing a lot of things from china >> exactly, and a lot of demand they would expect from china, not nearly as strong because of what's been going on with the lockdowns and so forth, frank. so apple is certainly a bellwether it's my single largest holding so i'm one of those folks who just kind of grits my teeth when i hear anything bad about apple. >> i think a lot of people get nervous when you start gritting your teeth a nice segue here, you're
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watching the moves on the fxi, and you're actually seeing some bullish call buying now. >> yeah. this one has been pretty much locked for the last ten days or so between, say, 26 and 27 dollars per etf. and somebody put on a really big bet yesterday, frank, one of the biggest we've seen 80,000 of the upside calls that gives them a lot of time because that's two full months into the future, but it's also a sign that perhaps china, somebody believes, is getting ready to unlock an perhaps open back up, and that would be a good thing for what you and i just discussed with apple but also puts a lot of demand on crude oil and a lot of the fossil fuels because they have been pretty much shut down for most of the last four months, maybe even six months, frank. >> yeah, definitely a factor when it comes to oil prices.
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your second options move that you're watching is if emb. this is around etf that follows emerging market bonds. what are the calls that you're seeing say about at least the sentiment in the emerging bond market >> yeah. when you see a bond etf down 29% year to date, which is what the emb, which is the market you describe, that is a huge move. here they're bet betting they're going to fall further still, frank. they were buying 20,000 of the december 75 put with the bond trading basically at 80. that's a considerable downside again from an etf that's already down 29% year to date. so that means people are betting against some of those emerging markets and saying, boy, the yields have to keep going up. >> you're also seeing some bullish buying you're going to have to walk me
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through this it does gas and natural gas. gas has been pretty much depressed. kind of explain this is this also another bet that china's going to reopen and oil demand is going to tick up as well >> yeah. yesterday we saw a turnaround in the crude oil contract and sin oh va and others would benefit from that. and they're buying it. as you've seen and talked about, with the turn in energy with china basically backing off and the recession fears certainly as high or going higher than any we've seen in recent history, this is one of the reasons we've seen a facility-off.
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and going into winter and china reopening, i think gas plays are pretty tasty at this level this would be one of the areas of the economy i'd really go into in a bigger way right now. >> i think a lot of people might be gritting their teeth with you with the futures looking the way they are coming up, your morning's big money movers, and what has shares of one japanese drugmaker surging in overseas trading. >> but first as we head to break, some of your top trending stories. we have to begin with mcdonald's, set to introduce an adult version of its very popular happy meal starting on monday, customers can enjoy a toy with a meal. cactus brand flea market yes, it's an adult happy meal. and a mansion in colorado selling for $69 million. marked as one of the most expensive sales in the state's
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vacation destination. and this is what i'm excited about. he's back. >> we've been working very hard on the next "deadpool" film for a good long time now i really had to search my soul for this it's been an incredible challenge to force me to reach down deep inside, and i -- have nothing. yeah completely oempty up here and terrified. but we did have one idea hey, hugh, do you want to play wolverine one more time? >> yeah, sure, ryan. >> ryan reynolds announced that hugh jackman will be reprising his role as the popular marvel mutant wolverine in "dead poole. he's really the only person who can do it. he marked his first appearance highly anticipated that movie will debut in theaters in december of 2024
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exchange." time now for our big money stocks apple is dropping plans to increase production of the iphone 14 this year after a surge in demand failed to materialize. apple aims to produce 90 million iphones this year.
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bloomberg also adds demand for the iphone 14 pro and the max is stronger than other models apple shares down 4% up next, eisai and biojen shares up after the companies say their experimental treatment for alzheimer's significantly slowed the progression of the disease in the large study the late stage trial has been anticipated after a drug last year also developed by ee sigh and biogen and the chip sector falling today following insider reports that most of the major clients except for apple, they've cut orders for next year this includes amd, nvidia, and qualcomm, cutting its revenue forecast for 2023. finally, blackberry, that stock is lower even though the company reported a smaller than expected
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second quarter loss. it also beat revenue forecast. revenue from its cybersecurity business fell as customers reined in spending due to economic uncertainty. time now for something random but interesting of course, for that, we send it out to our brian sullivan. >> in today's rbi, let's talk real estate because we know that housing has been slowing down in a lot of cities and towns across america, sometimes very quickly. the pandemic boom is petering out, but not everywhere, it would siege and here on cnbc, you know we always love to show you some eye-popping rey you can buy for tens of millions of particulars. that's what robert frank does best today we're going to go downscale a little bit to a very modest 1,660-square-foot house in cupertino, california that's apple's hometown. when we say modest, we mean in size, not price.
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the "san jose mercury news" notes that this little home that you're seeing just sold for -- wait for it -- $2.3 million. that's nearly 1,400 bucks per square feet, per foot. the paper notes the house was built in 1970 by a very popular design firm at the time. it's got a nice little backyard that they say is ready for some expansion if need by when it was built t house cost just $35,000, which probably seemed like a fortune to the buyer at the time, but it also turned out to be a one heck of an investment. think of it this way $30,000 in 1970 is the same as 270 today. the 2.3 million is 270% the s&p returned just 415% that's not including dividends, but it would still come out a likely winner. keep in mind both of those
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numbers are in today's dollar. on an inflation adjusted basis, including interest and tacks and maintenance, buying that little modest california home in 1970, an midterm dream, would make you a big time market dreamer. very rich. you could seep lchlt random but interesting on rae. >> thank you, brian, for this morning's rbi. turning our attention to the travel industry, facing a slow rebound when it comes to corporate travel bookings by companies we below precovid levels, telling their workers to actually scale back their hotels and their flights our seema mody joins us now with what that means for the industry good morning. >> good morning, frank yes, business travel is returning but slower than anticipated. corporate bookings are off 25% from precovid levels bookings in january were 65% off
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2019 highs all of this data according to trip end gregory miller at truist does not attribute the stall and demand due to a recession. he said it's driven by the zoom effect with more employees working from home. that's what he says is work behind what he sees in the numbers. corporate travel looks different than before the pandemic with smaller gatherings and a shorter booking window tyler morris, the third largest hotel operator in the u.s. telling me he's seeing it at his hotels, but it's giving him pricing power. that's the silver lining pricing at corporate bookings remains strong the big oeft drag is the tech sector google asking employees to cut back on travel expense however, a survey from trip actions found that engineers, marketing, and product executives aren't driving the share of business travel
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post-labor day frank? >> that's interesting. so any signs of a recession with hotel bookings with this kind of guidance from companies to guide things back? >> no, frank i spoke to a major hotel and real estate investment trust f he said occupancy at his hotel was above 90% last week and that's because we're in the midst of conference season we've got ours today, delivering alpha. the minute we start to see prices drop and cancellations increase, that, of course, could raise some concerns that the travel industry is starting to be hit by the economic concerns we're seeing right now frank? >> we know you're staying on top of it. thank you. on deck, on "worldwide exchange," another truf trading day taking shape why our next guest says your current picture and policy will mean stocks will be left to fend for themselves. first, cnbc is celebrating
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our teammates and contributors as we head to barack here's our chairman oscar munoz >> bias exists in america. always will. we just have to be honest about it i think for underrepresented minorities in particular, there's an old adage you have to work twice as hard to get half as far i believe we want to earn our place on this earth, on this planet, in our communities, and so, you know, if you look at the statistics, we're not just a growing community which everyone talks about, we're a growing economic environment we're voters we're purchasers to large amounts. the gdp is equal to the seventh largest nation in the world. that's how you want to look at us, as someone to market, someone to embra ce
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welcome back to "worldwide exchange." we have thomas barkin at 11:30 raphael bostic at 78:pa, james bullard at 10:10, jerome powell at 10:15, michelle bowman at 11:00 a.m., 11:30, thomas barkin, 2:00 charles evans and 2:25 esther george. the dow falling a bit lower from earlier in the show looks like it opened up 250 points lower at this time. the s&p and nasdaq about a percent lower as well. our next guest says he doesn't see a fed pivot on the horizon any time soon. scott, thanks for being here.
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>> hey, frank, thanks for having me. >> we're doing a lot of talk about the fed and the fed officials speaking i've got to say, a lot of what they've been speaking have been pretty dire, the job market, the expectations there will be job losses one of the things they're looking at is their preferred gauge. it's coming up on friday, but it's a lagging indicator i want to ask you, why aren't fed officials listening to companies like apple, their report's out about fall doing e panhandle and fedex and their dire warning about global supply and demand. >> look, to be perfectly honest, it's because the companies don't come under the mathematical models of the world. they rely heavily on the models and guide them as to what they're going to do. the problem with that as we're all sort of experiencing today, those models lead them to transitory inflation for too long the economy is undergoing demand
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construction, but they've held with keeping up their policies and restoring price stability at the price of a recession it's an outcropping of how they view the world really. >> i think the consensus is that even a much better than expected pce won't change their path, but we got some news today, the -yea topping 4% is that something the fed officials look at and consider. >> definitely. they're very attuned to how the market is pricing with inflation expectation. is the market get on board with the message? are they getting it? they're saying we're going to raise rates pretty high, keep them there for a long time, and price your assets accordingly. the last few weeks is the market's come to grips with that the most clear way we can see that, the 10-year is one way
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they've priced in three or four cut. right now those cuts are gone. the market has completely taken out any idea or pricing of the fed coming off of about 4.5% fed funds part of the entirety of 2023 that's the market ingesting this idea that the fed is going to stay high ore for longer and, really, you know, they're going to squash inflation and squash demand along with it. >> you say with the different moves when it comes to rates and inflation, the market is starting to treatment development markets like the u.s., like emerging markets. explain the thesis and how it's going to help or make the markets play out in the near term. >> i think a clear example right now is unfortunately what's happening in the uk. you know, markets, especially the bond and rate market, you know, they rely a lot on trust if you break trust as a government or fiscal responsibility and authority, the fx and the rate markets really punish the emerging marketsful what's going on in the uk right now
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they come out with the budget, fiscal stimulus and monetary stimulus on top of 8%, 9% inflation and they're saying what are you guys doing and they're punishing them we see the uk rates up you see what's happening with the pound. they say, we don't trust you we don't trust what you're doing right now. it drags together and change your policies and make them in line with reality. until you do so, we're going to punish your currency and rates and make it a challenge to implement the policies you're putting forth. >> you're watching the slides and fortunately currency the sterling down 20%, the eure euro down 25%. how does that shape the markets going forward because generally with the rate hikes, we're seeing the dollar continuing strengthen. >> no. absolutely true. you know, everybody's been talking about the top of the dollar for about a month we don't see it quite yet. we're not necessarily currency
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experts, but all the fundamentals are in place for the dollar to continue to strengthen or not weaken from here what d does for u.s. investors right now is puts a headwind on s&p earnings s&p earnings based on what's happening with the dollar so far are facing a headwind of about 10% and with how the market is treating earning and pricing earnings for next year, we don't think that's quite in there yet. we doily's some downward bias just based on what's happening with the dollar and the impact on us of the earnings through that channel. >> scott, we've got to get out of here. i give you one last word or phrase investment idea for today. >> staying through safety. don't try to time this thing if you have this, they're going to be some pretty attractive levels to buy. if you think you need the money in the next six to 12 months, you can do that. >> that does it for us on "worldwide exchange.
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"squawk box" is coming up next
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good morning futures pointing to more losses after the dow and s&p fell to their lowest level since november of 2020 we'll show you what let's moving this morning right now markets have been keying on fedspeak, and there's a lot more of it coming we have less than -- you know, more than half a dozen fed speakers, presidents with events today. lots of movement in yields also. and new in the last hour, hurricane ian has strengthened to a category 4. florida residents brace for a direct hit
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it's wednesday, september 28th, 2022 it's delivering alpha day 2022 and "squawk box" begins right now. ♪ good morning, everybody. welcome to skks here on cnbc we are live from cnbc's deliver ig alpha conference in new york city today i'm becky quick along with joe kernen andrew is on assignment today. we've got a huge lineup. we have roger ferguson, greg fleming, carson block, and r rostin


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