tv The Exchange CNBC November 11, 2022 1:00pm-2:00pm EST
got to face the music, bro >> the guys who are buying all the real estate are traders. ken griffin, dave tepper >> i want to know what field we're playing on >> jenny's final trade >> since i refuse to be put in a bull or bear camp, i'm giving you national retail properties 32 years of increasing the dividend >> great, excellent. veterans day thinking about you, bro. >> thank you >> that does it for us "the exchange," now. hello, everybody here's what's ahead on "the exchange." the day after investors still kind of processing thursday's massive rally. and now what comes next? plus, bigger than enron? the latest on the bankruptcy and some of the huge new numbers being revealed how did some of the world's most sophisticated investors miss everything and the china conundrum. they seem to be relaxing some of their strictest covid policies, but with an authoritarian in
charge, maybe forever, is it safe to invest there all of this ahead, but let us start with the markets and your money. bob pisani will call this the day after. remember that show from the '80s, but this is a much better version than that. >> yes, and it's a great day actually, a narrow range, brian, 2-1, advancing to declining stocks still on the upside. we've been trying to push towards 4,000 on the s&p and boy, we just fell back a little bit but we were headed in that direction. we're up 5% for the week on the s&p 500's two-month highs right now. the dow is lagging all the other major indices, up about 3% the reason is disney was a real drag on the dow this week and some of the more defensive stocks like merck, for example, johnson & johnson are down this week as growth is back nasdaq started weak today on word of that ftx bankruptcy that dents the risk-on appetite, but we rallied very quickly back up. that's the pig winner. the nasdaq is up about 7% this
week take a look at the sectors and again, you look at risk-on, risk-off, what's the appetite? very simple way to look at this. down at open and rallied very quickly up that's the big winner on the day, and on the week here, they're up about 12% for the week semiconductors also up about 13, 14%, so you see the risk on, really back, materials that are proxies for global growth having a good week. that's up about 8% health care and consumer staples, the defensive sectors are the ones that are really lagging. and you just see the risk appetite coming back here. why is this happening? remember what's happened in the last 24 hours. we've seen some progress on the three big macro issues that have been moving the market first on the fed and inflation from the cpi, covid lockdowns easing a bit in china, not going away, but clearly easing and then, of course, progress in russia, in the ukraine, rather, where the russians are retreating from the strategically important city of kherson, there are talks about
negotiations it's preliminary, but at least the news is going in the right direction for those watching the markets. take a look at what we've been seeing here in terms of the leadership you can see that in the s&p, how the news is affecting the markets here so there's wynn, las vegas sands up on the china story, freeport has been rallying on the china story, as well amd and so the risk-on, semiconductors are having a great week nvidia is up here. and even home building stocks are rally. anything related to home mohawk, lennar have had very good weeks in the last 24 hours what's not doing so well today you can see the news impacting the stock market it's defensive stocks that are down today on this news of what's going on in ukraine so these stocks have had great runs in the last few weeks, but they're the ones that are moving down today brian, back to you >> bob, thank you, have a great weekend, bob appreciate it. let's stay on the markets and your money on this friday. exactly what was yesterday just some kind of knee-jerk reaction to a slightly better cpi print and hopes for a fed
shift? or a real turn in sentiment to the upside let's bring in julianne salisbury, global head of goldman sachs asset management, which has over $2 trillion in assets i'm sure your phone, as the kids say, was blowing up with -- what was it what was yesterday just a one-off one-hit wonder. the market version of dexi's midnight runners >> look, i think it was -- we've seen over the last few months, really, that people have just been waiting for a light at the end of the tunnel and every time there's a sense that we may be seeing some moderation and inflation, we see these risk-on moves. and it was a particularly extreme version of that yesterday, given the data print combined with a couple of the other factors you talk about in china and the ukraine. i think it's hard to see this being a long-term sustained rally, though, until we start to see, you know, we start approaching, you know, until we really start seeing the light at the end of the tunnel on rates
and inflation. and i also see as people start getting more confidence around that, attention is going to then start turning to the earnings outlook. and what we're certainly hearing from our portfolio companies is that whilst they are expecting and sensing some moderation in earnings and pressure on earnings, that that's still yet to feed through. you may see a scenario that whilst people get more confident about the rate outlook, that we still have the worst to come in terms of some of the earnings income that's going dom through. until that's come through, it's hard to see a sustained rally here >> let's talk about individual groups the macro market, we can flip a coin and be almost just as right at this point. i want to talk about renewables. i do a lot of work on energy i mostly talk about the dinosaur juice, obviously, fossil fuels, but renewables will be a big part of the coverage going forward, as well we have the world in egypt right now talking about climate change the inflation reduction act, $300 billion being thrown in tax credits at a lot of these
renewable strategies i hate to use the term no-brainer when it comes to renewable investments, because that might make me sound like an ftx investor at this point, but it seems like there are a lot of tailwinds. >> this is one of the biggest secular themes to invest around over the next 10 to 20 years, absolutely word of caution, it was a huge theme back in the 2007, '8, '9 period you had a lot of money made by some of the earlier investors in renewable energy then. and people started backing a bunch of crazy science experiments that went wrong. it then went through a period of consolidation. and now you're seeing real inve investable, economic projects emerging and this is a huge secular trend to get behind, but given how apparently obviously it seems. some time ago you started getting more economic
opportunities around utility scale development, what was still lacking in terms of driving overall infrastructure rollout was some of the technology around batteries in order to manage the grid and the c congestion that was taking place. that's something that's also starting to reach a tipping point in terms of commercialization. >> any other sectors you like in a longer-term strategy >> within infra, this sustainable or renewable energy theme is clear and the general digitization theme is clear from a growth perspective, right now, like it feels a little bit like the baby's been thrown out with the bath water. wife seen huge value destruction. and more to come in private markets where some of the consolidation around pricing and valuations has yet to feed through. but i think we're going to be set for a period of consolidation here over the next 6, 12 months where what emerges
is still an amazing number of tremendous growth companies that can be backed. the valueses got completely out of whack last year the underlying trend and theme is still there >> good stuff there. longer macro, some ideas, and a lot of tail wind ed behind the renewable space. julianne salisbury, appreciate you joining us have a great weekend thank you. >> thank >> on deck, a huge takeout on the ftx collapse could it end up being bigger than enron it might be and we'll explain why. plus, how could so many so-called sophisticated investors miss all of what we are learning right now and then, is china really loosening up its covid policy qua we'll get a live report from the ground "the exchange" rolls on on a friday right after this.
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also the smartest guys in the room blew up because of, you guessed it, risky, highly levered bets that brought down some other companies, some of which ended up getting bought by ftx, a move that coin-based ceo armstrong said raised some red flags for him. now here we are again. the world's second largest exchange bankrupt, blockfi pausing customer recalls alameda research gone. voyager digital, who knows celsius, over. and currency teraluna, wiping out investors earlier this year. how did all of this happen we've got all the angles covered today. kate rooney with the very latest details on ftx c custodia bank ceo and bill cohen, puck founder, cnbc contributor and chronicler of wall street misdeeds on how this compares to other blow-ups let's begin with the facts, what we know right now, kate rooney with a story that every hour
seems to have some big, weird, and sometimes creepy new developments >> it's changing quickly, brian. and ftx, if you think back to monday, it was technically a $32 billion company. it fell into bankruptcy in the matter of about four days. ceo sam bankman-fried now stepping down, the 30-year-old will stay on through this chapter 11 transition. he tweeted this morning, we finally heard from him he said, i'm really sorry again that we ended up here. he says he was shocked to see things unravel the way they did earlier this week. this filing includes alameda research, as well as 134 affiliated companies, all over the world. places like nigeria, uganda, south africa, europe, hong kong and switzerland, as well the estimated liabilities at this point stand at between $10 billion and $50 billion. that number, i'm told could also change there are more than 100,000 creditors also listed in this paperwork. sam bankman-fried had been
bailing out others in the industry this year like you mentioned, brian, one of those companies pausing withdrawals overnight and two sources now tell me that department of justice is looking into ftx and sam bankman-fried all of this has been hitting crypto prices and sentiment. fund strategists out saying it's appropriate to wait for lower lows in terms of prices. there will be other casualties that could lead to more forced selling or at least headline risk and if we learned anything from the other credit crises this year, it's that sometimes it takes a little while to find out where the bodies are buried, as they put it. brian, back to you >> and there's going to be a lot of corporate bodies that are here, at least to your point, 134 and maybe rising kate, do we know where sam bankman-fried is right now or his hedge fund ceo, caroline ellison, who was reported also to be his girlfriend, sort of. >> i spoke to a source who is close with sam bankman-fried and the way they put it is that he
is ghosting some of his closest investors and confidants so they don't know where he is at this point. he is technically based in nassau, bahamas. we don't know if he is there right now. no word from him and radio silence is what i've been hearing from people who are close with him we don't know, but he did have a small tight-knit group that was based in nassau, a very young group of employees and that was seen as a good thing when we interviewed him back in august, he cited that as a reason as being lean, being more profitable and pointed to bigger -- what he called more bloated companies like coinbase. but in hindsight, people now say, he didn't have the manpower to be doing what he said he was doing in managing billions of dollars. >> okay, kate rooney, thank you very much. now let's turn to the potential contagion risk in the industry caitlin long, wall street and bitcoin veteran of custodia bank joining us now obviously, there have been a number of failures this year, this is the biggest and
obviously the highest profile. i don't think it's overstatement tv hyperbole to say, this is a critical time for the entire industry is it not? >> well, sure, it is, but for the grizzled veterans who have been around quite a bit longer than any of these new companies that have failed in the laundry list that you've provided, most of those companies were only a couple of years old, including ftx. the grizzled inadvertveterans hn this before and we're all saying, good riddance. there was way too much leverage applied to this industry to an asset that absolutely cannot be leveraged safely, ever, bitcoin. and you saw a lot of wall street mercenaries come in. a lot of people from quant trading, a lot of hedge fund trader who is wanted to ply their tools, their games to an unregulated asset class. i thought it was interesting
that one of the more prominent ones admitted that he didn't even know what a blockchain was when he started trading crypto that speaks volumes as to why the blow-ups occurred. >> and yet people gave these firms billions >> indeed. >> it's like, i don't know what a horse is, but i'm going to bet on the kentucky derby. and i'm going to bet $1 billion. and by the way, you have beautiful horses behind you. >> oh, thank you yep, seriously, a lot of reputations of previously respected venture capitalists and investors have been permanently impaired here. and they weren't listening to those of us who warned that these business models were inherently risky and in the absence of regulation and regulatory clarity in the u.s., what ended up happening is that a lot of scammers and outright criminals filled the void. and i'll give you an example
the offshore drerivatives platforms were offering 125 to 100, the onshore were not offering more than 2.5 times leverage so at 125 to 1 leverage, which is one of the products that ftx offered, that would have -- the house odds on something like that would have made the 1950s vegas mobsters blush, because they were 99% probability that the house won. but in an upward trending bull market, they were able to wrap in, i saw from your report with kate, 100,000 creditors -- >> that we know of >> a lot of people. >> what we know of >> right right. >> 134 subsidiaries that we know of in -- i looked at the list. they're all over the world some of them bizarre names who the health are they? we don't know. i want you to repeat what you said just a moment ago, for our
audience, for the people in the back, 125-to-1 leverage. >> yes yes. and by the way, there are still other offshore exchanges that offer that >> that's not -- >> those are 99% house odds contracts. they wouldn't be offered onshore in the united states they would not be allowed to be offered onshore. and yet these things were happening. and one of the challenges with that is that there hasn't been onshore regulatory clarity the good guys, so to speak, we've been blocked from getting bank charters, getting broker dealer licenses, because of the lack of clarity in the u.s so it's a mishmash of a lot of things that happened here, but there's one fundamental takeaway, which is that bitcoin itself should never be leveraged. it cannot be leveraged safely. and anyone who thinks that they can lever it safely is going to learn a very hard lesson that illiquidity is the same
thing as insolvency. there is no such thing as oh, i'm just suffering a temporary liquidity problem. and here's why no one is ever going to make more than 21 million bitcoins. is the moment that there are more claims to bitcoin -- there are only 19.2 million that have been mined and outstanding today. there are clearly a lot more than 19.2 million claims to bitcoin out there and all of these insolvent intermediaries that are going bust, and they're all claiming, i have a temporary liquidity problem. no, they don't, they're fundamentally insolvent. and they went insolvent the moment they started offering more than the 19.2 million claims to bitcoin. that means, because there's no lender of last resort, there is no clearinghouse to bail them out when they get into these liquidity crunches, that means that the insolvency that they had all along is being revealed. and good riddance to it all, because this leverage is not -- it doesn't have anything to do with bitcoin these market structure, wall street mercenaries that came in and started leveraging it up like crazy in the last few years
deserve to be flushd i don't wish ill on anyone, but for those of us who really do care about the technology and the signal other than the noise, the noise is the wreck -- the rubber necking that we're all doing on the wreck here's the signal elon musk yesterday announced that twitter is going to be offering peer-to-peer payments on the twitter platform. that is already integrated with bitcoin's lightning network. he could turn that on immediately today. that is using the real technology that is the signal through the noise. i know the rubber necking and the drama is more interesting, but those of us who are really building this technology, we're as positive as ever, and frankly, grateful that the grifter are being flushed out >> kaylin long, great take thank you very much. so just how big might the ftx disaster end up being? let's put what we know into
perspective. i want you to listen to this and listen closely the bankruptcy documents seen by cnbc says that ftx's liabilities are, quote, in the range of 10 to $50 billion first off, a range of $40 billion is simply insane it's one of the biggest that we have ever seen and do you remember the spectacular implosion of enron, the oil and gas trading firm that turned out to be largely a near-complete fraud? well, their bankruptcy liabilities were about $23 billion. and even adjusted for inflation in 2001 dollars, ftx may end up owing more than or even twice as much as enron. i want to bring in bill cohen, he's a founding partner at puck, he's a cnbc contributor, he's author of the new book "power failure: the rise and fall of an american icon," which sort of seems bizarrely apt and timely at this point in a different way. you've also written extensively about enron. a lot of pundits, myself
included, have said, oh, it's a lehman moment. i thought about it, it's not a lehman moment. that was kind of a slower burn at first this feels a lot more like en enron. >> well, brian, i think the shock of how quickly this occurred feels like enron. there's a difference, though, and of course, the liabilities could be in excess of enron, almost on par with the lehman brothers bankruptcy. but in some ways, it reminds me of the bear stearns bankruptcy and how quickly that disappeared in about a week. this was about the same time frame. the difference that i would note with regard to lehman, with regard to bear and even enron, those were real companies. those were, you know, u.s. domestically based companies with reputations that in some
cases with lehman brothers went back 150 years bear stearns has been around for 85 years >> thousands of employees. >> thousands of employees. fcc filings, brian >> what's that >> among friends, what's an filing "the wall street journal" made a very good point about the fed's responsibility in this if the fed had not had 13 years of zero interest rate policies, people wouldn't be looking around the world for easy get-rich-quick schemes and that's what bitcoin has become, i think, unfortunately really, it was based on a greater theory and i think all of crypto has been based on that and i think that's probably something that will save this from becoming too contagious because what did crypto do you can't really --
>> it took money from smart people and gave it to other people that somebodyhad apparently said was smart, because they went to m.i.t., so how could they not be smart. and i guess it feels maybe theranosian. is that a term elizabeth holmes -- we don't want to presume any liability or guilt here, but if you look into theranos -- >> theranosian >> yeah, i've coined that. you can hashtag that she was really good at putting really respected people on her board, right that if you sort of questioned certain things about the business, there was cover there. i think we're finding out that bankman-fried, whatever ends up happening, the ftx board had a former cftc commissioner on it he was a huge political donor. there were a lot of connections. you met sam bankman-fried. you did a documentary on him in your mind, bill, is he some genius who just screwed up or is
there something maybe more nefarious or socio-something about it >> well, of course, that's the $64 billion -- potentially $64 billion question right now he's young just turned 30 he was supposedly the wealthiest person under 30 last december when i interviewed him, he was 29 he sort of has this naivete about him, but also, you know, m.i.t. graduate, as you pointed out. both of his parents are stanford law professors clearly, was a james street capital trader obviously, quote/unquote, brilliant, right did he do this knowingly that's something that the justice department is going to have to get to the bottom of he was incredibly charming in his way, both with the media, with lobbyists in washington,
you know, you're showing the "fortune" cover story, which was just from last september literally on the cover of "fortune" and ask, is he the next warren buffett. i think we know the answer to that now he charmed a lot of people and one of the largest donors to president biden in the 2020 cycle, a big donor to democratic causes, philanthropic, effective altruism he was a very charming, engaging, entrancing guy, especially when he's the wealthiest person under 30 so a lot of people were -- i don't want to use the word "conned," but that'ssort of what it feels like we'll have to see whether this was fraudulent or not, brian >> we don't know, the courts will decide this, potentially a jury will decide this, the department of justice will decide this. but from a macro perspective, bill, and i'm not going to ask how old you are, because you're a handsome man, but i'm up there in age, i've got a 5 handle.
>> i've got a 6 handle, my friend >> well, you don't look it i'm not going to say i saw ftx coming, i did not, not at all. but i've been critical of crypto in may i did a little piece with terra luna and watch for the fallout and all of this stuff. and when you're of a certain age, you get people that come out and they're like, you're just old, you don't get it, bro. like old man yells at clouds it's not just ftx, this entire crypto industry, the you just question it a little bit, you just don't get it, you're too old, bro it provided the industry a lot of cover for what has been a crapstorm, for lack of a better term, the last year. you know what i mean, right? you can't even criticize it. >> absolutely correct. absolutely correct you can be quote/unquote canceled as an older adult for lack of a better term for questioning nfts, the
blockchain, cryptocurrencies, you just don't get it. and not unlike what happened, you know, if i may date myself, in '99, '98, '99, 2000, leading up to the internet 1.0 crash hey, man, you just don't get it. this is a new world order. but when you get to be my age and start in wall street in 1987, september, 1987, a month before the largest percentage crash in one day in history, you get wise very quickly to these kind of pavbehaviors. i've seen this pattern, i've written about this pattern and this inevitability that was coming obviously, we didn't see it, just like you couldn't see it at bear stearns but the risks that were being taken. the way the fed was making money so easy to be available to so many people, and they were just
going for it and all of these promise of revolutionary change, you know, maybe i'm too cynical. >> no. i was just starting out my career in '99. and remember when analysts started using the term revenue per eyeball? like, i haven't seen that in graham and dodd. but they were using it in investment banking then 2008, i did my 2007 special, subprime shock waves, i think you may have been on it, warning about these derivatives. you just don't get it. we're back there again whether it's a bunch of people with ivy league pedigrees, you just don't get it. by the way, in 15 years, there's probably going to be something else, right? it's going to be some new thing that we just don't get and you and i will sit there in del boca vista or wherever we are bill, look forward to you writing about it in puck, by the way. >> thank you, brian. i think you're absolutely right. this will be very healthy for everybody, though. so, hang on to your hats i think the good news is, this is not like lehman this is not like bear, this is
not a meltdown to the core of the financial system this is sort of on the periphery. the people who invested in that $1.8 billion in ftx over the last few years, they'll get hurt, but they probably deserve it >> by the way, all nyu, columbia, business school grads who somehow missed all of it, it's just insane bill cohan, we'll get you back on again soon. thank you. check out his new book, "power failure. all right, on deck, the tech rally rolls on with, despite ftx, at least for now. we'll try to figure out what is next next wear back in two minutes with the right balance of risk and reward. so you can enjoy more of...this. this is the planning effect.
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the markets are mostly in the green. nasdaq, nice little tech rally continues, up 1.8 percent. we're closing out a really big week the nasdaq is going to be up, what, i think like 7% on the week that is a big week all right, now let's go to tyler mathisen for a cnbc news update. >> brian, thank you very much. here is the update at this hour. rain wilson, known for his role on "the office" has changed his name to protest climate change he'll now go by rainfall heat wave extreme winter wilson and said on twitter that it is not a joke he said he wants to bring attention to climate issues while international parties meet at cop-27 in egypt in other climate news, the u.n. environmental program announced a new system that will track methane emissions from space. the methane alert response system or m.a.r.s. will take
satellite measurements to find the biggest emitters of greenhouse gas and plug those leaks. and the comedian galger has died he rose to fame with his slesle sledge-o-matic act where he would smash food and spray it into the audience. some people found this funny the comedian had nearly 3,500 live shows gallagher, the watermelon smasher was 76 brian? >> i guess you just wanted to be in the front row, and you would get a little bit of that watermelon >> you wear a rain climate change -- >> heat wave -- >> extreme coat >> let's do it tyler "always on fire" mathisen. still ahead, chinese leadership easing, eoti ttheoreti threcay, up on covid restrictions, but will the country ever get back to any
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strict covid zero policies but how impactful are the changes? eunice yuan is live in beijing with the key details for us. eunice, what's happening >> reporter: well, brian, china's leadership has yet to share with us what they want normal to look like. the government said that it's optimizing covid controls, and so that's the -- the market is reading that and you and i are reading that as meaning that it wants to ease. essentially, what the government is trying to do is make it more palatable for people like you or for an executive to come into china, so they're shortening the government quarantine from seven days to five days. now, if you come, you only have to take one 48-hour negative covid test, and then it should be easier to get a flight, because they've ended a policy that the u.s. airlines have thought is very unreasonable it's a circuit breaker policy that meant that they would suspend flights if there were cases on it.
here in china, they're also trying to get rid of some of the more excessive curbs, covid curbs. for example, now, they won't put into isolation the close contacts of your close contacts. instead, only the positive cases. and their close contacts and then, they're redefining the word "risk" for different risk areas. and so by doing that, they're trying to limit thenumber of people who would be put under lockdown finally, they're trying to get cities not to deploy a citywide mass testing, but it's a real big question mark exactly how all of this will play itself out on the ground, brian, and whether or not it's lael going to solve the problem of the uncertainty that zero-covid creates here especially when it comes to the economy. >> it's just incredible. and we're watching the video of the people online, head down, they just look defeated. mentally, emotionally crushed. we get one trip around this
rock it's been three years. covid's a scary thing, but you wonder what these people are feeling, what you're feeling, eunice, because we love you and we would like to see you in person again soon, eunice. >> one trip around this rock, folks. that's it. your next guest runs one of the biggest stock etf, which is up big 25% this month, despite the dramas playing out in china. joining us now is brendan ahern, chief development officer of ah aherns i don't know if we'll ever get a full reopening, because i think xi is having fun with it in some weird way. if we get a semblance of a reopening, has the money already been made this month on that >> no, not at all, brian we believe this that this incremental opening, that trend is not going to pull the proverbial band-aid on zero covid going away they renamed it dynamic covid. you'll see this incremental
dialing back and the positive there is that it's going to unleash domestic consumption that domestic consumption trends have been light due to citizens hoarding cash, due to the risks of them being quarantined. domestic consumption will be a big story for 2023 >> yeah, what do you think the story will be on domestic consumption? i agree that will be the story is it going to be a feel-good story or a story of woe and misery like the last three years. >> yeah, yeah. i think, you know, zero covid will go away incrementally and i think some of the measures that eunice pointed out are really geared toward the citizens in china. i think people have gotten very frustrated with the zero-covid policies, and so seeing it slowly dialed away is going to allow people to get out and about, we actually had an
economist from china visit us in new york this week and it shows that this opening up is going to happen it's not going to be a band-aid, it's going to happen incr incrementally and we think a lot of the ecommerce companies will be holding and beneficiaries of domestic consumption >> is there any sector you like better in domestic consumption travel, food, what airlines? >> i think all of the above. i mean, i think you can make a great, great argument for, you know, trip.com, but ecommerce plays, like alibaba and jd and pin duo duo. i think also just in general, as this opening up happens, your investors are going to really underweight to china and i think, you know, removing this potential risk on the economy that clearly they are doing this in order to get the economy going. you know, i think that really behooves a re-rating of chinese equities >> yeah. >> brendan ahern of crane shares, it's been a good month
see what happens overseas. brendan, thank you very much all right. coming up, something just happened in california and it's sending solar stocks higher on the week not today, but higher on the week can you name that mystery chart? we'll get the name and the we'll get the name and the story, next. now ports can know where every piece of cargo is. and where it's going. (dock worker) right on time. (vo) robots can predict breakdowns and order their own replacement parts. (foreman) nice work. (vo) and retailers can get ahead of the fashion trend of the day with a new line tomorrow. with a verizon private 5g network, you can get more agility and security. giving you more control of your business. we call this enterprise intelligence. from the network america relies on. is it possible the only thought that comes to mind is... ♪ finally? this is financial security. and lincoln financial solutions will help you get there. as you plan, protect and retire. ♪ at humana we believe your healthcare should evolve with
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welcome back solar stocks giving back a little bit of this week's gains, but the tan etf is still up more than 10% on the week part of the move coming as california regulators pulled a u-turn on a proposal to reduce credits given to some solar panel consumers. but the state is still looking to alter its subsidy program pippa stevens joins us now with more so i want to put solar panls on my roof in california, what does this all mean? >> this has been really a saga that's gone on for more than a year with a lot of different ideas around what california's solar subsidies should look like it all comes down to two sticking points.
whether solar customers should be charged monthly to hook up to the state's power grid and how much they are credited for the excess power they return to the grid these credits have been instrumental to solar's growth in the state, but utilities say it unfairly shifts expenses to those without solar. last december, the california public utilities commission issued a preliminary decision, which would have reduced consumer credits and implemented a monthly access fee it was met with a lot of opposition from solar advocates, including governor newsom. then, they withdrew that initial framework and released a new one. it still reduces the credits for excess power, but not as much as the prior proposal and it also scrapped the monthly hookup fee it could be voted on as soon as next month and other states looking to reform their subsidies are watching this decision closely now, both solar companies and utilities are still unhappy with the proposal, but we are seeing
a big response in solar stocks, with sun run, sunova and sun power all up about 30% this week brian? >> pippa stevens there big change by california thank you very much. all right, still ahead, tech's big turnaround, beaten downt stocks like amazon are extending yesterday's rally, up 10% in two days. is the all-clear in the growth tre fadorade this puppy gene munster up next if you have this... and you get this...
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welcome back, an understatement to say that tech was on tear. the nasdaq closed up 7% yesterday, since march of 2020 past two days, amazon, up 17%. meta up 12%. when was the last time we saw that alphabet, app and will microsoft rising 10% let's talk more about it with gene munster, loup ventures managing partner it's been a long week. we've had some bankruptcies. >> give me a break the notes say that you like meta, i'm like, that's clearly a
typo but you do. >> we do like it in part because we think this rally needs to be approached with some caution, and one way to avoid the caution is to invest in companies that have some downside protection, so we put meta and apple in a camp that has protection in it. the reason we like meta, there's a back story related to what we think is the fundamental question around the market nothing has really changed inflation is high. it's easy to get it from 8 to 5% getting from 5 to 3 is difficult. the second factor is getting below 3. when you put those two factors together you have to ask yourself a basic question about 2023, will there be a recession, and our belief is that there will be a recession. our belief is that powell is committed to a recession politically he can't say that, but i think he is committed to that so when you put those two together, we look at large cap
tech, all eight have increasing growth rates for 2023 top line, between 5 and 10%. meta happens to be the lowest of the growth rates and the lowest multiple, and so i think that, you know, this is one that still is based on potential. it doesn't have performance in the near term, but meta is one defensible name despite what we believe will be a broader pullback in the market after the relief starts to fade. >> after everything that's going on this week, you might have heard about the ftx thing just a little bit. >> a little bit. >> do you worry at all, i'm not comparing the two, but the metaverse is one of these things we talked about. if you're not all in, you're old and don't get it are you worried there's hype around the metaverse buzz it has a long way to go people pay real money for metaverse plots of land which
could, i don't know, could be just unlimited growth. >> well, i think the near term, the next 6, 12, 24 months, there is hype around this. if we go back and look at the bigger picture here. when it comes to meta, one of the questions that we ask ourselves is there a computing platform beyond mobile and if the answer is probably not, then there's no real reason for the metaverse. but most likely there will be something different. and then you can debate which those are. i would say the leading contender is that some form of the metaverse is going to be there. if you look at not only meta's now famous 10 million investment, apple is there too google is there. samsung, these companies are going to will this into reality, and i know it's obscure today and hypeish today, you fast forward six months, nine months when apple shows the mixed reality headset, the light goes
on that this is going to happen. >> gene munster, loup ventures, thank you very much. record high inflation putting pressure on almost every industry is art the place to invest we'll take about it next hi, my name is tony cooper, and i'm going to tell you about exciting medicare advantage plans that can provide broad coverage and still may save you money on monthly premiums and prescription drugs. with original medicare you are covered for hospital stays and doctor office visits but you
have to meet a deductible for each, and then you're still responsible for 20% of the cost. next, let's look at a medicare supplement plan. as you can see, they cover the same things as original medicare, and they also cover your medicare deductibles and coinsurance. but they often have higher monthly premiums and no prescription drug coverage. now, let's take a look at humana's medicare advantage plans. with a humana medicare advantage plan, hospitals stays, doctor office visits and your original medicare deductibles are covered. and, of course, most humana medicare advantage plans include prescription drug coverage. with no copays or deductibles on tier 1 prescriptions, and zero dollars for routine vaccines, including shingles, at in-network retail pharmacies. in fact, in 2021, humana medicare advantage prescription drug plan members saved an estimated $9,600 on average on their prescription costs. most humana medicare
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one more thing before we go, the ups and downs of the stock market, maybe art is the way to go turns out, it holds up pretty well in an inflationary environment. robert frank is joining us now it's real, pretty, you can look at it. >> yeah, it's fun to look at, brian. paul allen's art collection becoming the most expensive ever sold, 150 works selling for over $1.6 billion five paintings went for over a hundred million. selling for 149 million. the famous mountain landscape
went for 137 million, and gustav birch forest paul allen bought that for $40 million in 2006. it went for 104 million on wednesday. all the proceeds from this sale will go to charity now, the bids came from 19 countries. experts saying three of the top works, so the sara, and van gogh likely went to asian buyers. turning to art as a safer store of value at a time of rising volatility. >> the patience, the wherewithal and proper advice, you can actually build an asset in an art collection that is going to be relatively difficult to assail the winds of change really don't affect it to the degree that you find in other asset classes. >> and the sales roll on next weekend at southby's andy warhol's white car crash
estimated at $80 million brian. >> look forward to you going there. maybe, you know, seeing leo, as you call him leonardo to you. >> my buddy leo. >> what's eating robert frank. robert, th thank you very much that was a mu eovie reference that's it for us thank goodness "power lunch" starts now. i'm tyler mathisen, along with morgan brennan. here's what's ahead, stocks having a hard time figuring out what to do after the huge rally. is the fed going to take their foot off the brakes. are valuations cheap enough, especially in big tech, and the other shoe falls for that company called ftx probably not going to see that on umpire's shirts next year in major league
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