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tv   Squawk on the Street  CNBC  November 29, 2022 9:00am-11:00am EST

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technology perspective >> even with the mean tweets >> the cycle in front of additional -- in front of their competition in terms of the position they're at from a cost perspective. >> all right >> and driving new technology. >> all right still got a $400 price target despite of the mean tweets we've got to go. make sure you join us tomorrow "squawk on the street" is next good tuesday morning welcome to "squawk on the street." david faber has the morning off. up 5% on hopes of reopening. oil, though, is higher we did get signs that european inflation may be moderating. chinese stocks headed for their best month since '03 elon musk picks a new tight with
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apple over ad spending and app store. and bob iger saying the company's hiring freeze will remain let's begin with the markets try ig to rebound following yesterday's massive drop markets in asia closing at session highs today as authorities reported an uptick in vaccination rates they will start targeting seniors. nursing centers using big data to identify those who might be eligible for something like that >> yeah. i find all the stories confusing. military called out. the big data, some people feel they have used big data to figure out who is -- the dissent. i was saying to becky just now, everybody tries to gain china every day. i think they can game the stock market, game how many people they say have covid. they can make up any number they
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want but they bring out the military. suddenly there is a down turn in covid. up in of it makes any sense. and i think it is a totalitarian country that can say what it wants. and i think for the most part they can get away with it. >> eunice had a tidbit yesterday that police are searching phones for foreign apps, instagrams of the world. >> this is a shutdown. it's a shutdown. it's interesting the stuff you can make with the new semis, i can create someone and i can create what they say can you imagine if you had a dissident and you decided to have that dissident say something. it looks like it is done with code not computer-generated imaging. they have that technology. i don't know you can literally try to find the footage. the reality is we don't know anything big country. don't know anything.
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>> it's not often you're stumped, right >> i am because i don't understand why anyone would pick a strategy that leads to a recession or decline in growth i don't know any world leader that ever were sacrificing growth they would have a five-year plan this is a plan to have less growth and it -- we all know we have the ability to stop what they're doing. so this idea he is backed into a corner, president xi no one is backd into a corner. all you have to say is you know what, we are going to have our own -- all they have to do is call china they reverse generated >> it's not about pride or trying to pretend like you need the west's help? >> no. it's just outright confusing almost as if that he wants the
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economy to shrink. and you know he doesn't. that's why i told becky, don't try to game this it is an irrational strategy there is no zero covid you can't. no one has immunity to covid there is no natural immunity so if you're with someone -- it's like people maybe aren't old enough but the measles one kid would come to class with the measles. then the next day everybody had the measles. we don't have anything like that anymore, but covid is the measles. >> you talked about that during the pandemic >> yeah. i remember the kid's name who came in with the measles and then the next day everybody had the measles. never liked the kid again. i know who had it. he knows too oil is up because of the same thing. we think xi is going to come to his senses what, because there was less dissent because there were five
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fewer cases? they were made up. why would they lock people down? this lockdown is the most serious. madrid had a huge lockdown if they caught you they put you in prison and made you pay a huge amount. it worked until you got a vaccine. i don't know what to say here. i mean, they have the vaccine. do they not care their economy is being -- i think what happens is president xi does not care. because he could end this tomorrow that's why oil goes up everyone says, well, he can end it tomorrow. >> there's also the budding fear that will be reintroduced to supply chain bottlenecks. >> right. >> because of moynahan saying possibilities. >> look, i think one of the things that president trump did was start the process of getting away from them and that's to some degree has worked we're not nearly hostage to the
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supply chains we once were and you can shift. and the companies that know how to pivot we keep coming up best buy they pivoted so well but cory barry is not a show person and say, look, i pivoted well supply chain requires a few things a shortage of supply and increase in demand show me what's more in demand than it was a year ago i can't find anything. the classic case of decking for your house had a huge decline in business it just shows you that all the real supply chains aren't as important. i mean, there's not a lot of stuff that has demand. we have very little demand >> had although apple of course at the center of all of this >> right apple is the exception >> the past five days, thank you, bespoke, the worst of the names back below the 50. >> people are starting to say
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that's the rollover. i continue to say own it don't sell it. obviously we have a great one to talk about later with musk and apple. but it is the last i have a whole folder every single day on apple. and today i've got -- i mean, it's just incredible today we have davis is saying bad things loop wolf with the technical. they don't like it this is the most rotten apple i have ever seen every morning ben soto gives me my apple final you watch the nfl. i'm thinking about switching to t-mobile and then going back to verizon to get my kid a 14 pro the demand is incredible but it doesn't matter. look at this wolf said 50 day got to sell it tim cook call tim just say, listen, you're below
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the 50 i'm sorry. i'm changing my view >> we are definitely going to get to the suggestions from elon musk about conflict there later on >> that guy is just fun. we have to have an elon musk show >> do we >> yeah. put it on youtube or something just endless things and getting reaction >> you can anchor that one >> are you kidding me? he would say that's completely untrue and you don't even exist and i've had it with you >> this is false >> good headlines. >> let's bring in eunice live from beijing overnight good morning, eunice >> reporter: good morning, carl. hey, jim the numbers that you guys were talking about, reported daily cases has dropped slightly so that was heartening investors today. even though it says it's going to continue to stick by the zero covid policy and mitigate some of the more excessive curbs, we have been hearing more cities
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making some concessions to be able to apiece the backlash we saw from the public. for example, just moments ago, jungjo, iphone city, said it will lift its current lockdown as of the 29th as planned. there had been some concern that the city might extend its lockdown but it says no longer. so this, as well as some of the other comments from the health authorities, has been heartening investors. health authorities said they have been able to make progress on their vac tphaeubgz pl-- vaccination plans. they didn't specifically comment on the protests, but they did say there were some complaints about the implementation of the covid curbs and that the implementation on a local level was the issue. but they didn't in any way admit
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the covid curbs themselves were the problem. however, all of that is adding to some hope that there could be a reopening. weather it's just wishful thinking at this point is still a big question mark. we don't know the time frame, in other words. guys >> eunice, thank you because wishful thinking, what happens overnight. we knew there were protests and there is no change in the policy the military comes out we hear the elderly can get the vaccine. and where apple is made opens up none of this makes sense to me the reason it doesn't make sense to me. the whole country can't change like this every 24 hours, can it >> no. but from a security standpoint, it's gotten quiet because the police presence has been pretty heavy here in beijing. i actually had just plopped out
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to drive around a bit. and the police presence is very, very help around some of the sensitive areas, such as tiananmen square that's true in other big cities. also protesters have alerted us as well as others that they have been contacted by the security so the silencing of the protesters i guess is something that we were expecting and continues to happen. >> all right can we just go back? you broke some news talking about what the bill could be for apple if the city is opened. because right now i've got seven analysts who tell me that there is nothing going on in the factories. that sounds like it's untrue >> well, jungjo is the entire city that will be lifting the lockdown i haven't spoken yet to foxconn but foxconn has been in a closed
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loop they haven't been affected by this decision. with jungjo itself, a lot of people had been complaining that the lockdown has been going on for quite some time. now it looks as though it will lift finally on the 29th >> finally, eunice, i took note this morning the chief of the imf said it was time for china to move away from lockdowns. is there anyone's opinion around the world that matters to xi >> reporter: i think his own and also the survival of the communist party. there is one thing that also popped up in the markets today and then i got on wechat and it has been passed around among investors, an unverified report that president xi may have -- again, unverified -- has had
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discussions with chief pr propaganda company and a draft of bf-8 that would come after bf-7, which is currently in beijing and that would be declared as somewhat like the flu and then the communist party could say it is victorious, it has been able to save 6 million lives and aren't they so wonderful for the -- and done a great job for the past three years. again, unverified. but that's the kind of story that needs to happen for president xi to be able to change this whole strategy away from zero covid in a face-saving way for the communist party and himself. >>er some. looking for offramps >> it's a big deal eunice is always out there getting the straight story >> makes ense. >> eunice, we will talk more this morning
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we appreciate it so much >> obviously, if they can kind a back door to save face, beginning with the elderly, which is the one -- that's the group that frankly we did not do a good job with. we just didn't do a good job he can say he did a great job with the elderly now he will do a great job with everyone else and become a national hero. makes sense. >> when we come back, we'll talk elon musk. going after apple on the several matters involving twitter. the premarket. data on the way as well. a little more fed speak. more "squawk on the street" in just a moment.
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internet customers. so boost your bottom line by switching today. comcast business. powering possibilities. elon musk taking on apple in a series of tweets claiming apple has threatened to withhold twitter from its app store but won't tell us why and calls the fees a secret 30% tax. "washington post" this week, jim, said apple was the biggest advertiser at least in q1. >> i've been involved with "squawk on the street" since 1991 always at odds once we got rolling whether we should do apple or not it was one of these things where you paid apple and you had a lot of subscribers and you had a lot of subscribers you could say, well, that's just unfair i said, hey, i would rather have subscribers than not this is always -- you know,
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there is always someone at a company who says i'm not paying the 30%. and that person is almost always wrong. in this case, apple, big advertisers, this is as wrong as you can get. he should look at the high quality people they come from apple if he wants to do this verification thing, does he know what he's doing at all >> he did get backup from the games yesterday. >> that's a lawsuit. >> yes >> and senator mike lee. the senate judiciary through the sub committee. >> california anti-trust law everyone's problem has been in the legal arguments do you want to do well which means you pay the piper or do you not want to do well which means you don't pay the piper. it is half a loaf situation. look, maybe you go behind the scenes and say, listen, i would like a better deal i can cut back your costs if you
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can cut back mine. maybe that exists. my experience with apple, maybe i ask for like a discount. but it's not -- that's like going into home depot and saying, i see a washer dryer for $2,000, i'm willing to pay you $1,700 today are you out of your mind this is home depot >> and the precedent regarding content moderation, mainly the battle with parlor back in the day. >> they were able to crush facebook crush it when they made it >> right >> they can crush anybody. but they're not -- they're good actors what apple has been trying to do is make it so the customer does better the most customer sent rick in the world, which is why i find anyone who thinks they have
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monopoly, they are good on trying to be a good citizen for you the customer it's what the customer wants i had a discussion with tim about how my daughter didn't like the new plug. initial he rebelled. and he said, well, she's a customer i wish we -- this is a better product. in other words, that's what he's about. >> sure. >> it's so true north. name me another company thinking about the customer >> morgan stanley adam jonas has a piece out today whether or not musk's involvement in twitter has not only fed negative sentiment on the stock but in his view and the survey view could drive down fundamentals >> i love that survey.
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this is much more valuable than tony's piece today that said i like it. i hate it. i like it. i hate it. $150 >> i say get to 150 and it's time to bring up the truck that's what jonas is saying. >> yes in the end, it's the company that makes the most money in ev. look, i -- i think that people are really trying to figure out a way -- when to get in front of tesla. what i thought about tony's piece, it's down 48% year to date that's one of the bad enterprise software companies 48%. it's not 23andme but ooh >> when we get back, cramer's mad dash a bunch of names to get to, including disney and snap and microsoft and ride more "squawk on the street" continues in just a moment
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things are about to heat up as the next several days bring us a ton of data obviously powell more fed rhetoric. there's a look at futures. a little bit split today we'll get some of the names in the dow that are hurting futures this morning opening bell in a few minutes. don't forget, always catch us any time anywhere. listen to us and follow the "squawk on the street" opening bell podcast back in a moment
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very thoughtful piece from morgan stanley today a bull or bear on boeing.
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what i really like about it is they are saying that there's been these defense risks defense has not beengood for them and the reason why numbers have come down it's so sloppy there's a misstep every day at boeing forget the missteps in defense this is a call to buy. even though it's called time to be a bull or bear. the answer is it's time to be a bull >> calhoun's last appearance with us he, for example, did the m meaculpa
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it would be something you didn't know they had that was a drop. berne thal not a lot of companies you wake up and some new thing went wrong. and boeing is one of those >> but this is not a play on commercial aviation demand long term bac backlog. >> they are saying 7:37 max orders but it is about -- there is just a shortage of planes is remarkable right now only two companies make them again, this idea that commercial benefits are going to improve. the price target is pretty bold. i think calhoun has to put together two quarters where there's something we haven't -- didn't know about that went well >> and then of course there's china, right >> china
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yeah but i think what i have been worried about. think about it you have a land war in ukraine a big land war i know this is aerospace there's a lot of things bo boeing -- whatever i'm waiting for the line that says calhoun did not screw up this quarter, this stock goes. it's not in there. but it's kind of in their but people don't want to hurt people's feelings in our business one reason is calhoun is incredibly nice. >> there's the opening bell. >> is bob iger nice? >> we will talk about disney in a minute at the big board, dow jones global etf the company is pledging equity to social impact work pre-ipo. >> oh, sounds like the marc
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benioff plan >> jim mentions disney a lot has been written about the iger down hall calling any notion of apple disney merger speculation. >> i like the pivot to profitability is great the quizzical thing was he recently listening to the music from hamilton. >> maybe "send in the clowns." that is going to make everyone dislike me whatever >> had but more speculation that he will have to trim >> they send in the clowns the numbers were -- it was just a giant black hole
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and i think if you go for profitability you can mine that considerable library now, one of the things that right now if i were bob iger i would be saying i wish jim cramer would shut up but i studied the company. there is too much money being spent and not getting a return if you run the thing for profitability, i'm talking about doubling down the whole thing. i like iger's work because i'm not saying he's going to get the job done. >> right >> i think he's a serious business person who cannot stand the losses he's not going to take that anymore. i think the narratives on the conference calls are no longer going to be, hey, everything is fabulous we're losing a fortune that's done. he owns up to it that is why it will be a joy >> guggenheim reiterates a buy
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>> done. buy. very strong. very well argued and i think this is a man who understands the value of the theme parks. understands the value of the library. would never tell scarlett johansson take a hike. the wrong take a hike. no one of the most beloved people no >> of the other big dow name is unh, jim analyst's meeting today. the 2023 guide a little bit tepid. >> oh, they do that. and then the quarter is much better people -- don't they know that game are you kidding me that's the unh game. that's what they do. i remember when i interviewed them at the conference they had done the same thing. in january, everybody is like, well, you know it turns out better than expected
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>> hey, biggest decline in the s&p is one of the great stories of today genrac the f-150 will hurt their sales. i said it to jim farley. this is one of the most amazing pieces ever. it says the business model is being called into question >> game changer. home electrification game changer. it is astonishing. >> he downgraded roku. no time like the present to downgrade it >> sector wait the company is between a rock and a hard place they're obviously having -- it
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was very zoomish, if not pelotonish >> connecting tvs. the list of problems it was like job. the loss of tv partners, contract disputes, advertising industry, sensitivity. pace of development digital video advertising. basically saying nothing is going right at roku. people are still playing games yeah, but they're not using -- there was a pandemic some companies did very well yesterday i got an add did you get the ad about peloton 180% off on their apparel. it was like the level of discount i was afraid it would arrive at my house without even ordering anything like they're fishing
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>> did you buy any peloton gear? >> no. i immediately went to lululemon and paid five times more to get the same thing >> activision, microsoft will at least offer concessions to the eu, including a licensing deal with sony. >> as with kroger and albertson's, it's not the eu it's khan. khan is an autocratic individual who was put in because president biden believes president obama approved too many mergers. it was under obama's watch you put some someone tha
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dictatorial. they could win in court. they will have to say, look, we will go to court to get this deal done. i'm not getting that feel. they are doc incredibly well very good hand lift. why do we like microsoft it's a commercial product, not a consumer product demand, very strong. this is not a piece about activision i don't think blizzard is important anymore. >> interesting you mentioned the white house, jim. and the president did call on congress to get involved in a potential rail strike before the cooling off period ends on the 19th >> 1992. two-day strike congress said get back to work president biden heavily involved with the actual contract to start. so he's backing himself. i have been saying this is the worst you're going to have as a '92 situation. and i think most of the rail
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companies, we have a couple of rail upgrades today. >> deutsche ups unp. reiterate buy. >> and that's csx. csx doing incredibly well. nor fox southern is doing incredibly well. >> they upped u.p.s. to buy. >> how do you like that? on margin expansion. raising margins when volumes are falling is hard to do. but they have operating leverage to do that and more. >> that's true look, i like the piece because i believe in thome i believe they have the possibilities of doing well. 3% yield but you buy it and then fedex comes out the next day and says things are worse than expected then what do you do? fedex is up $3 they have hurt themselves by their own forth right nature, which is to give you pretty much
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too much information they don't want you to buy -- the fedex people do not want you to buy it without knowing, hey, look, there's some reservations here i like the u.p.s. piece because it is -- u.p.s. has a lot of room to cut if they have to. big contract look, the stock went down off of guidance not off of the numbers and they could revise the guidance up if things go a little bit better. >> there the other big research call before we get to snap and some others is darden cuts to neutral, jim they argue a lot of the telltale signs for casual dining, home prices,s maybe employment are beginning to look wobbly >> home prices are more expensive than dining out prices i thought that darden piece was more of a victory lap. the guy liked it much lower. it was a good call a lot of people didn't think it was the right time to buy. i think they offer great value
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to people and people want to go out. anyone has been to any of the steak places, they are fantastic. both high end and low end. >> all the charts survive on a regular basis down three for the year is not bad. >> no. they're very good. i like darden, win stock, potello's. >> you mentioned wing. the journal piece yesterday on chicken price. >> they're killing it. a lot of the wing places are offering deals because they know -- the margins are incredible there's the chart you want that is not the chart of an enterprise software. it is vertical for wings that's an actual business. you go there, you get wings. what a business. what a business model. they make more money because wing prices went down. i don't want to hear there is an elongation, macro worries.
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i don't want to hear it is now so sweet you can't get a checkoff i don't want any of that >> snap, jim, the company confirming this 80/20 hybrid model in office starting i think in february. what did you make of that? >> what would really help is not how many days i went to work but getting business they can come to work six days a week and not have any business staff told to be in office four days to do what to do what play games they need business that's charlie the tuna. they want tuna that has good taste. i want business. these guys, i'm not saying -- mark zuckerberg is in town i don't know maybe zoom with andrew, his unbelievable conference, andrew
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ross sorkin. if facebook is not doing well, if they are not doing well, i don't want to buck the trend and start buying snap. much i think that is a cultural shift on their part. i think it's more of a desperate shift. >> interesting >> we haven't touched on crypto yet. we had the bankruptcy announcement yesterday exchange bit front shutting down according to reuters and, you know, hovering around the 16k level. >> someone is making a stand it isn't the usual ftx i think this is the height of speculation. i always wish it was down these days i don't want they will to say, uh-oh. bitcoin is moving up our job is not done. it is still up big they wouldn't turn the clock back to march of -- january 2020 >> yeah. >> and bitcoin has to go lower to fit that pattern. i really believe that somewhere
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within the fed there's a model that says if we can get the economy back to where prices were at the beginning of 2020, we're done but that's a really tall order for a lot of things. >> we had williams yesterday around noon time basically say -- well, he did telegraph potential cuts in '24. >> right >> but says we're a ways away from getting there and bullard revisiting the slide show a couple of weeks ago saying five to seven range >> it's just there for stops you can't get around it. go up to 40% if you get that return in cash, you really have to rethink how you feel about stocks. >> although people today pointing to gas prices national average $3.51, jim. the most common price is $3.39 gas buddy says maybe headed to
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3. that would help november cpi >> yes no, we're beginning to get -- barra told me, the ceo of gm, look, the chip problem is over a lot of supply coming and john deere called saying we're not supply constrained there's a lot of companies that are not supply constrained and azek talked about it and home depot a lot of things are going the fed's way. that's why i wish bullard would revise and say we're winning on some fronts. i don't think they want to declare victory anywhere they are very rigorous now this is 2018 >> the data is going to do what it does. the rhetoric will stay the same until it is overwhelming convincing >> that is exactly my thinking of what is going to happen and i think jay powell is right to do that last thing you want is a soft
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month and then a strong month. you will think, i didn't mean it bullard should stay up there that's the bear case wall street we have bear cases all the time he's giving us the bear case i think there is something about him i find charming. even though he would devastate the markets. i would lose my job. but five to seven. he's one of the guys who says, look, it's a three-year rebuilding process and then we will still be in last place don't worry about it >> onto cincinnati >> onto cincinnati the great belichick, formerly great belichick. the brady/belichick. >> 3960. let's get to bob pa sanny this morning. >> flattish open this is a tough market to figure out. it's what i call pocket picker market you don't have a lot of trends here take a look at the sectors yesterday what were the big decliners? energy stocks, metal stocks, semis were the big decliners
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health care was a relative outperformer the opposite is happening today? general outperformer, energy, metals, semis positive and health care is underperforming. it's sort of the opposite. it's a pocket picker market here if you look at the energy stocks, remember what happened everything, all the big players were down one, two, three, four percent. today they are all up, one, two, three, four percent. the long-term trend in oil is down we're at 52-week lows. stocks have been held up well on that there is a real rally going on in china stocks. it's been a little choppy. think about what's been going on here alibaba was $60 a month ago. it is 80 today the market seems to want to believe china is in a slow fitful reopening process that's what the market is kind of trying to believe at this point here two big days in a row up for china stocks here.
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powell is going to be the story this week. all sorts of notes in the last 24 hours all generally hawkish. they think powell is going to be hawkish. reiterate his hawkish position, say it's still too strong to be consistent with diminishing inflation. peak rate will be higher than we thought, higher than the fomc thought it was in september. higher for longer for the peak rate out there like bullard reiterated yesterday and bears are insisting he is not delighted about a lot of things he's seeing in the markets. the trend in oil is a good thing. down 9% this month 52-week lows but stocks and bonds not going in the same direction. 10% rally from the october low and bond yields declining. mortgage rates have come off their highs. obviously, still very high all of this has the perverse effect of creating an easing of
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financial conditions when the fed wants to do the opposite they want conditions to tighten. a lot of bears are saying he's not happy with the market rallying and he will be as hawkish as he possibly can this is the main reason why the bears think there is a ceiling to the rally look at where we are in 2023 earnings estimates they are at $230 expected to be up 5% an average historic multiple, 17 times. 17 times 230, you get to 3910. wait a minute, the s&p 500 is at 3960 right now to argue for a higher price right now, carl, you have to make an argument for essentially a soft landing you have to say earnings are going to be fine there's not going to be any serious recession. and just an average multiple is going to produce the average returns that we have right now so the bears have a good point you've got to really make a case for no serious recession to happen at all for next year.
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carl, back to you. >> thanks. bob posani. we will see how treasuries are faring some familiar levels the 10-year at 3.75. dow down 36. we're back in a moment if you wake up thinking about the market and want to make the right moves fast... get decision tech from fidelity. [ cellphone vibrates ] you'll get proactive alerts for market events before they happen... and insights on every buy and sell decision. with zero-commission online u.s. stock and etf trades.
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it's incredibly well run boy, is the stock extended i do fear that -- i think it goes up, you'll make some money but i wish the stock would go down beforehand so you don't feel like you're coming in at the top. >> coming in a little hot. >> oh, man that's the best retailer in america, other than lulu i think we have to pay attention to the fact there's so few great retailers. ulta is one of them. incredibly run. >> how about tonight >> emerson does something i really like. it makes things and does stuff and makes a profit and returns capital. so, it's the opposite of tech. >> at some point we'll have a discussion about industrials and whether -- >> we have to. look, i think one of the things great about emerson, reinventing itself, software venture, but a lot of companies we deal with,
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we have crowdstrike. great companies that report numbers that would send the stock up 20%, 30%. >> we are on the cusp of big earnings >> they're not like emerson. >> jim, we'll see you tonight. good work. "mad money" 6:00 p.m. eastern time after the break, a lot more on elon musk taking on apple as the markets have some moderate declines dow is down 75
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good tuesday morning welcome to another hour of "squawk on the street. i'm carl quintanilla with morgan brennan live at post 9 of the new york stock exchange. some moderate declines as we keep our eye on the earnings that are about to hit the street over the next few sessions and the continuing evolving story in china. consumer confidence out a couple of seconds ago rick santelli's got it good morning, rick >> yes, these are november read from the conference board. we're expecting 100 on the headline number. 100.2. that is the smallest since 95.3
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in july. if we look at the present situation at 137.4, that is the lightest level going back to, well, let's see. how about april of last year april of 2021. finally, on the expectations, 75.4, following 78.1 that is the lightest level since july of last year when we were at 65.6. these numbers are a bit of a disappointment all lower than last month even with slight revegss. morgan, back to you. >> rick santelli, thank you. we are 30 minutes into the trading session. laggard on the s&p 500 after jeffries downgraded to underperform from hold analysts writing, ev bidirectional charging is a game-changing technology that will disrupt the backup power
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space. shares are down 2%. silvergate is feeling the impact from the ongoing crypto fallout. that fell after blockfi filed for bankruptcy silvergate says it has minimal exposure you can see those shares are trading about flat now down 82%. roku getting a downgrade at keybank. analysts moving from sector weight to overweight saying outsized growth and tv advertising and a push to be critical platform have not yet manifested those shares are down 0.50%. we'll start with the covid lockdown in china. our eunice yoon reporting that
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the iphone city will not be continuing lockdown. >> reporter: moments ago guangzhou said it will lift lockdown in one hour's time. there was concern there could be an extension of the lockdown, but the city said it's going to lift everything so that, except if you live in a high-risk area, people can go outside again and that public transportation will resume so, foxconn, obviously, as we talked about many times, has that iphone facility there it's operating in a closed loop, so it wouldn't necessarily be affected at the facility itself. however, this could be helpful for the logistics to try to get a lot of those iphones out of that -- out of that plant. now, separately tonight, there had been another interesting development because the leadership has said that they held a meeting on social stability.
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and the leadership has said, of the communist party, said that china must crack down on what it described as hostile forces and illegal and criminal activities. they also said that the government must earnestly safeguard social stability now, this comment wasn't directly aimed at the protests however, the timing of it obviously is interesting given the fact that the past several days we've seen many protests. in fact, the security here in beijing as well as in shanghai and other cities has been beefed up because of the potential for more protests. the hope, though, because of those protests had been that the zero covid policy would be eased. in fact, today the authorities from the health sector had said that they had been making some changes in terms of the vaccination rate they said they have been able to
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make progress. that 65.8% of people over the age of 80 had received a covid booster shot this is up from 40% as of november 11th. they wanted to cite that to say they're ramping up their vaccination effort however, they didn't say they were going to put in place a mandate. that's something a lot of analysts had been saying china needs to do. now, in terms of any acknowledgment from the health officials about the problems that people have been having with covid curbs, they didn't acknowledge anything about the protests but they did say that the complaints were largely due to the empty mentation on a local level. >> balancing these two pieces of the puzzle, the quote, unquote safeguarding social stability
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versus maybe more vaccine rollout for the elderly and china, the market here, investors seem to be latching onto the latter. that vaccine rollout will happen and signaling more of a policy easing around this zero covid strategy is that right to think that right now or is it still too soon given the fact we're coming off a weekend of unusual and rare protests? >> yeah, i think it's a little difficult to say it's a little early. at least there is some signaling there. from an official level, the government says they are going to be sticking by the zero covid policy and that they're going to stick by what they said was this optimizing idea. that's the chinese government's way of saying they're going to be stopping some more egregious measures we've been seeing they are making some changes i think what's encouraging is they are trying to at least react somewhat to this pushback.
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the fact that guangzhou made this announcement or, for example, here in beijing, they said it's illegal to put a barricade in front of a building or a compound where the buildings have already been locked down. people are still going to be taken and kept in their homes, so that's not exactly ideal in terms of consumption, for example. at least they're trying to get rid of the idea that somebody would put up a barricade in front of the building gate >> yes, how generous of them, as peter bookmar said in his note this morning thank you, eunice. for more on what the unrest in china might mean for companies like apple, joining me, ameda. it sounds like your team does not believe beijing will give into protests or that the protests will last very long
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>> yeah, listen, i think from apple's perspective, at least, there's a business supply issue, bit of demand issue. but i do think our china assessment is, you know, these protests are not for an extended period, should not undermine demand in china. as long as that's true, i think whatever impact there is to places like apple should be more transient in the near term >> what do you make of the last five days, people drawing attention to going below the 50-day once again. is it your expectation that whatever supply is interrupted gets made up in the, say, first half of next year? >> i want to say that is 90% accurate, which is apple demand does not tend to get destroyed no one will buy a samsung or huawei i think that is fairly accurate.
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you have to stop thinking, if you can get your hands on the pro max you really wanted this holiday season, you say, i'll get the iphone 14 plus or the iphone 14, so almost the think a month ago is if people go up the model curve. i don't think demand gets destroyed for them, but i do wonder if compression might happen and people would get the phone they can get today rather than wait six months. >> to dig in a little more apple is such a brand. the images, the reports we've seen out of iphone city in the past week or so. does that do anything to dent the brand, to dent the imaging and the marketing of apple >> you know, the images are fairly jarring when you look at them, especially everything happening in the iphone city, dubbed iphone city, right?
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i'm not sure what it does to the brand. if you step back and think about it, we've seen instances in the past where they had these suicide incidents in shenzhen a while back, the quality of living issues. you've had these issues before and apple has been able to distance themselves from it and able to implement a better set of working conditions for employees over time. this historically, nothing of this magnitude has happened, apple's brand has been undamaged. the images are very jarring when you look at them >> how about this at least for now, this one-sided twitter fight by elon musk on twitter where apple concerns have brought up all kinds of question, including a long-standing one, which is 30%,
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quote, unquote, tax to be a part of the app store >> i really want to say i can't think who elon musk has not got into a fight with on twitter right now. it's almost a rite of passage if you haven't gotten into a fight with him the 30% tax in the app store, this has been widely debated for a long, long time. there's an epic lawsuit going on in the courts. apple's take has been, this is the cost of doing business, this is the cost of security and having access to 1.2 billion ios devices of the most affluent people in the world and this is what you have to pay for it. our take always has been that number will start to come down but it's still going to be in the 15%, 20% range my gut is this is more from apple's decision along with multiple other advertisers that
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are scaling back advertising on twitter right now. >> finally, quickly, we have nor tech names reporting after the bell, including a few you cover. your thoughts on enterprise tech >> generally speaking, enterprise tech has held up well cisco reported a couple of weeks ago as the bellwether. the take has been i.t. spending is holding up really well into year end the big debate will be what happens to '23 i.t. budgets. networking and storage should be relatively stable. i think where you start to see cracks in the system are pcs and servers. i think it will be more for '23 budget phenomena rather than '22. >> you covered a lot of ground we'll talk in the next few days as well. great to see you thanks >> thank you turn, to the broader market, stocks are on pace for a second straight month of gains, although you can see it's a mixed picture right now.
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basically around the flat line for the dow, s&p and nasdaq. joining us invesco's danny leavitt and yorvi. brian, the inversion of the yield curve. we're seeing more and more invert seems like there's a diverting or changing message coming out of equities versus bonds right now. your take. >> so, the deeper inversion of the yield curve suggests to me that the two-year rate continues to price in ever tighter fed policy while long rates are suggesting that nominal growth is starting to weaken. it's a bit of a tug of war between inflation, which is likely to come down pretty quickly, growth which is moderating and coming down versus a fed that continues to want to raise interest rates in what leading indicators suggest is a contracting environment it suggests that a recession is likely in the offing from my perspective, there's a lot of information in the
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ten-year it tells us nominal gdp is coming down and the fed will have to pause. >> we had two different fed speakers basically reaffirm the higher for longer narrative, talking about 2024, possibly, to hold rates higher. >> a variety of reasons. for one, just simple math. we've been doing 0.4% a month on average. you do that every month between now and the middle of the year, you're 3.2% on a year over year basis. the other is retailers appear to be oversupplied. the supply and the money growth is coming down pretty rapidly. rents are starting to come down. it's not to say we're going back to 2% or even sub 2, but inflation is coming down you look at break-evens. break-evens have been sub 3 across all maturities. >> you've been pretty clear you think the ten-year might have peaked at 4.25 and that it is
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bear market might have ended on october 12th at 3570. >> right >> i agree with brian on all the points he made about the yield curve. the yield curve is widely believed to be a great predictor of recessions, which it has been i think the real logic of how the yield curve inversion works is that the yield curve anticipates financial crises it basically says if the fed continue to raise short-term interest rates too much, we're going to see something break we've seen a lot of things break in the cryptocurrency market, the spac market and meme and ark stocks and yet we are not seeing an economy-wide credit crunch or a recession caused by an economy-wide credit crunch i agree with brian, what the yield curve may be anticipating is we're going to get a surprisingly sharp drop in the inflation rate i think we're definitely going to get that in durable goods i think we'll have durable goods
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deflation next year, which is more of a typical scenario for durable goods prices services will continue to be a problem. i look at the yield curve, i look at those two components what i see is two-year treasury notarizes faster than the band note, that's coincident with a peak in long-term interest rates and short-term interest rates. i think the yield curve is predicting we've already possibly seen a peak in interest rates. if that's the case, i think that's a good argument for making the case that we've seen a bottom in the stock market >> rosenberg was on the tape this morning cpi a year from now under 3, but unemployment over six. do you agree with one of those or both? >> i think we're going to see inflation moderate i think it's going to come down to 3% or 4% next year.
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usually the headline consumption deflator 3% to 4%, of course, would still be above the fed's 2% inflation target as long as we're making good progress on bringing inflation down next year going into 2024, i think the fed will conclude that all they have to do is keep interest rates at current levels or slightly higher levels. that will be restrictive enough to bring inflation down. i don't think we're going to have a hard landing recession with unemployment going to 6%. the labor market is just way too tight. i think we are going to be surprised in a happy way with productivity i think companies are going to respond to the labor shortages by increasing their productivity, by spending on technology >> so, brian, i'm just reading your notes you say this environment reminds you of 1980-1981 why? how does that make you position yourself as an investor right now? >> the parallels are striking. in 1980 you saw inflation peak
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in the early months of 1980. paul volcker continued to raise interest rates through the end of the year. you did have a relatively mild recession in 1981, peak to trough the market went down about 27%. associated with that recession if you invested when inflation peaked, you had some volatility along the way but you were pretty happy one, two, three years after that if you think of where we are now, inflation seems to have peaked around june powell still raising rates through the end of the year. most prognosticators think we'll have a relatively mild recession next year. peak to trough the market is down 26% i suspect if you invest when inflation peaked, you may have volatility along the way but you're going to tb quite happy over the next year or two. >> we'll leave the conversation there. brian levitt and ed, thank you for joining us. take a look at the road map. including highlights from iger's
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town hall with disney employees saying a hiring freeze will remain. crude commentary what do falling oil prices mean for production cut we'll take a look at possible pullback from opec. elon musk taking aim at the apple app store. we have more on the latest at twitter. "squawk on the street" is back after this
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folks, it looks like we're gonna have to land this big old bird earlier than expected because it's the xfinity black friday sale. get the fastest mobile service with xfinity mobile. yeah, we'll be cruising in to get the best price
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employee town hall since taking back the reins of disney our next guest remains bullish, raising his target to 121. michael, great to have you back. good morning. >> good morning. how are you? >> good. we talked after the news and you were fairly constructive did yesterday add to that? >> you know, yesterday wasn't anything mind-blowing for us, but i just like having bob iger back in that seat. we turned positive of the day of the announcement i just think he brings a realistic view of the business he's not afraid to share bad news with all of us. we need honest management teams to react to the reality on the ground i'm excited to see what he's going to do now that he's back at disney. >> walk me through the content road map you think he's going to lay out. if it's going to be about profitability over subs, is it also going to be about disney core over general entertainment or can we go that far yet?
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>> carl, that's one of the reasons why i've been before this move worried about disney you know, i think the original disney plus vision was really about delivering for the core disney fan either the family, marvel, pixar, lucas film fans as they got more and more subscribers, they started to expand their vision. i'm waiting to hear from bob, but i just think moving into general entertainment is not the good move for them it's a very low return idea. i would rather have them have less subscribers, higher revenue peruser and a higher margin and not stray from the core strength of disney. when bob gets into the numbers and looks at the strategy, we went back and looked at our models the past three years, they hit revenue numbers but their costs have been off the chart. i think bob chapin was trying to chase this target that was just not achievable i want them to go back to their first plan, bring back spending, look at the core business and
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hit the super fan cohort >> it speaks to this chase growth at all costs scenario that was playing out, started by netflix, repeated by other media companies, disney and now the shift to profitability, as we see the economic conditions begin to tighten as well so, i just wonder, you touched on it a little bit there, but how do you get to profitability for streaming if you are disney? is it a template that others can, i guess, look at and attach to as well >> i think disney has a unique set of properties. because they launched disney on quickly on the back of those strengths. to your question, within disney streaming there are four different businesses there's core disney plus, which i think could be a really profitable business because it plays to their strength. they don't have to tell you as a consumer what it stands for. then they have disney plus hot
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starts, which we would like them to come look at the business, maybe find a partner in india. india is a tough market. it's very competitive. a low revenue peruser market then they have hulu. people have debated whether or not hulu stays at disney or go back to comcast and create a jv. that's a low margin business and then hulu live channel business which is a terrible margin business. the higher key of disney, disney plus is probably the best business they have, the core disney plus. that could be a high-margin business it could be margins as good as netflix's. it's the other businesses they need to identify if they're core or not hopefully we'll hear from bob, they look at the other businesses and say, are these businesses we want to be in or not? again, under chapek we were not positive on the stock because we felt they were not taking the time to reassess their strategy. they were chasing subscriber targets at all costs, which is a reason why we were bearish
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>> we're reporting that he did talk about reedy creek and the battle with florida. sorry to see us dragged into that battle. i have no idea exactly what the ramifications are. we talk about iger mending relationships internally, with hollywood, but how do you think he mends them with politics? >> i think he doesn't -- basically go back to bob under the trump -- when trump was president. he spoke out and he stuck to, you know, the values of disney he didn't make it political. he didn't make it partisan he didn't go after people. he stuck to these are the principles we believe in he has this unique ability to ride over the political landscape by sticking to a script as you know, carl, he's a very good communicator. he speaks of core values i don't expect him to ever be broadened to the muck of what happened in florida. but he's going to speak to what disney stands for, which is exclusivity. another reason we like the
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stock. he just has this ability to communicate to all cohorts and to all kind of key constituents without bringing down the narrative to anyone, without creating a negative backlash we go back to what happened in charlottesville. he was one of the first people to condemn what happened in charlottesville, how trump dealt with that. i'm not worried about it at this point. i'm really not. >> speaking of florida, and lower locations, the theme park business, have we seen peak margins? what do you think happens there, both domestically and also in china, as we're having the conversation about zero covid and protests and uncertainties there? >> okay. so on the parks, you know, when we upgraded the stock last mismo monday, we didn't change our view on the park i've done this job a long time any time this consumer weakness, following consumer confidence, parks will get hit
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the company on the last conference call didn't call out parks. parks are really strong. that's continuing. i think you have to be mindful of where the park margins are. i would not be surprised that parks weaken in '23. the company gave guidance on the last call, but i do think their guidance may have been too optimistic in the ecosystem in terms of what could happen i think you have to expect parks to get weaker. bob has alluded in the past to not raising prices he wants parks to be accessible to a lot of different types of people i think our pricing is a question we have into '23. will they be as aggressive on pricing? probably not china and shanghai park has been a zero on profitability. covid has been a problem when the park shut down, they lost $60 million per month that is a swing factor as well the company didn't address that on the call about what they were assuming for '23, but if zero covid comes back and parks stay
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closed, that's another problem for '23. our upgrade did not attack the core issues on parks, which you brought up and we would be tilting towards being worried about the '23 outlook. but we thought at this point, the changes in streaming profitability and having bob come back overweigh those concerns, which are real >> yeah. shanghai temporarily closed beginning today to comply with some of those measures we'll be talking more as hopefully iger gives us more to chew on. thanks >> good to see you michael nathanson. elon musk calling out tim cook on twitter. that story is next
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the recent protests in china having an impact on the tech sector, obviously. joining us our own deidre bosa to shed light on on what we've seen in chinese tech traded names and u.s. stock exposure. good morning >> good morning, carl. you and i during "techcheck" we have been watching to adrs that
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that continue to rally on one hand, unrest is going to make business difficult in the short term but it could ultimately pressure beijing to relaxits policy to lead to a more significant lasting reopening. some say these are the first steps. that could be why jd.com, other chinese tech names are top nasdaq 100 gainers this morning. the chinese basket of stocks gaining 30%. it's far outperforming other markets. you can see zumo has been a major underperformer since the end of 2020. there are other forces at work, communist government weighing on homegrown tech apple is reminding investors of the risk of having so much supply chain dependent on china and the impact, of course, that will have on upcoming holiday sales. apple shares were moving the other direction. you can see slightly higher this morning. >> it's amazing because the
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kwebb is up 38%, almost 39% since the start of the month it seems a trade investors are latching onto any signs of a potential reopening and shift in that zero covid policy maybe given more fuel today, maybe just based on the vaccine news we got last night, which you laid out that being said, have we fundamentally seen a shift in some of these names, in some of the numbers and some of the consumer, for example, demand or weaker consumer demand they've been talking about this year has any of that actually changed? >> that's a great question the fundamentals have not changed all that much. alibaba still faces a lot of competition. its earnings wasn't as good as they have been in recent years the fundamentals haven't changed all that much. and then the beijing wild card, the thing investors have been worrying about for the last few years. that is, are they getting too big? how much data are they getting is that dangerous to beijing
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are they going to continue to clamp down on that that hasn't really changed maybe the government it looking at different things at the moment any bit of optimism investors are latching yoen to because i showed you that chart from the end of 2020. these names have been beaten down so much, valuations have become attractive if you have the risk appetite. key there, risk appetite investors latching onto any little thing even the fact that as there's so much uncertainty and unrest in the country itself, maybe that's going to lead to relaxation of policies we haven't gotten anything super concrete there either. we should note as well, though, foreign investors that were certainly burned in china over the last few years, they have started to come back this month. they've why you've seen the enormous gains looks like they're holding on for now. whether that blows up in their face, we don't know. that's the question with china it's very unprevious diktable. you do not know what beijing is going to do. a conversation we have with guests is they place ideology
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over economics that begs the long-term question, is that a place you want to be >> yeah, a lot of the motivations are confusing to some of us in the west apple at the center of the china production center. it that's not enough, now they've had the app store scrutiny reintroduced with musk's tweets about twitter. >> yes you and i are no stranger to this controversy it flares up, it feels like, every few months the so-called 30% tax, 15% in some cases it's not just elon musk and twitter upset about this you have tim sweeney at epic, spotify that have complained about this tax now elon musk has the mega phone of twitter there are some companies that have been more careful about sort of slamming, i guess, this app store tax because the iphone has given them this ecosystem, which is essentially what apple argues you have to wonder if the tide
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could change once again with elon musk being so public about it there's a question, is he losing money from apple in terms of advertising on twitter but he calls this, carl and morgan, a secret tax we know it is anything but in fact, lawmakers, regulators are already looking at this. it's unlikely up to elon musk here they could do more than he's able to. >> finally, talk about where you are this morning and what it's going to bring us later today. >> well, i'm in beautiful half moon bay i'm here for the wonder coast summit, a vc firm. it was famous for birthing quibi but it has gone on to invest in a number of other companies including robinhood, figma, which was acquired by adobe in a massive deal, some called the biggest indications in a difficult market also companies like airtable and
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databricks we'll hear from portfolio companies and founders all day about the state of vc, which has had a difficult year as you know, exits have been tough to come by, the ipo largely remains shut valuations in public and private spheres are falling. we'll talk to the to of them in "techcheck" to see what they're seeing at the moment. >> looking forward to that interview. deidre bosa, thank you. now for an cnbc news update with bertha coombs. nato secretary-general stoltenberg warns russia is using winter as a weapon of war against ukraine and that, quote, we must prevent president putin from winning he also expressed his belief that the country will become a member one day, saying nato's door is open virginia congressman donald mceischen died last night.
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he had struggling with health issues after a cancer battle in recent years the democrat had been serving in the u.s. how the of representatives since 2017 and just re-elected for a fourth term this month. mceachin's seat will be filled by a special election. a boil water order has been lifted in houston with the city saying the water is now safe to consumer and use officials had been urging residents to boil any water for drinking, cooking and bathing after a power outage impacted a water purification plant the situation impacted 2 million people and also closed some schools as well as restaurants yet. carl >> bertha, thanks. after the break with the recent decline in oil prices, will opec plus move to limit supply with crude back above 79 'lis morning wel talk about that when "squawk on the street" is back in two minutes cotland, technologists in india, and customers all on different systems. you need to pull it together. so you call in ibm and red hat
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welcome back to "squawk on the street." we're watching crude oil as protests in china over the zero
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covid policy fuel volatility in industrial commodities more broadly. wti is up 2%, 78.79. and we're going to keep an eye on that. other industrial commodities are also trading higher today, carl. based on some of these headlines we've seen out of china and it speaks to the push/pull of these protests, of the response or expectations of response and how that's going to play out with china and whether this is a bullish scenario or bearish. seems equity markets, investors are taking it more of a bullish scenario around the macro picture, the possibility of economic growth, the possibility of reopening and pushing forward in china and what that means for commodities and other markets. >> things got interesting when it went negative for the year. weighing china, weighing our own consumption demand, weighing russian price caps, opec plus. all of those things happening in energy. >> spr release there's all kinds of things
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swirling as we come into the month of december, which brian sullivan has been talking about pretty regularly, the potential for volatility we'll see how that plays out what it means for the fed and inflation data. >> huge implications at least for november cpi, which the stock market totally pins on luxury stocks rebounding on hopes of relaxed covid measures in china robert franks is watching that for us good morning. >> the luxury industry is highly dependent on china, accounting for more than 25% of its sales investors now betting on a quick reopening after all these lockdowns and a strong rebound in luxury spending lvmh, the leader in china, up 10%. kering up both they predict china's luxury spend will fully recover by this summer andgrow 6% to 8% in 2023 luxury executives talk about a return to the, quote, revenge
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spending of back in 2020 with surging sales of handbags, fashion and jewelry. but there are some risks to that thesis estee lauder and capri cutting outlook based on china's sale. you have china's slowing economic growth, rising youth unemployment andfinancial insecurity even among the affluent that could all reduce luxury spending going forward. china's common prosperity campaign, that's against the wealth gap, may also lead to a more quiet spending by the affluent bane cutting long-term projections for china's share of the total luxury market to half of all sales from 2025 to 40% of sales by 2030. carl >> robert, i'm curious whether we're looking at the chinese consumer on the world stage, whether we're looking at other high net worth buyers as well. how much -- do we know how much the strong dollar has affected
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sales at some of these luxury houses thus far this year, especially when you think about things like tourism in the mix >> that's a great point. what we saw for this summer and even throughout the fall was americans going to europe, taking advantage of that strong dollar and buying a lot of luxury goods in europe you had huge increases in luxury sales in europe, which were surprising to many of the companies itself, and europe going through its own crisis at the same time, it didn't really cannibalize sales in the u.s. with china weakening, the u.s. and europe have really kicked in to continue that growth. the question for next year is whether that strong dollar effect is still there, whether you'll get a recurrence of that european tourism, which you probably won't at the same level, and whether china truly starts to kick in as another engine of growth >> robert frank, thank you as we head to a break, a programming note all week long, do not miss a big
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lineup of cnbc pro talks yesterday we heard from ark's cathie wood. this afternoon it's tom lee. scan the qr code on your screen to join the conversation we'll be right back with the s&p slightly higher ghnorit w. 3971
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welcome back to "squawk on the street." we are going to turn back to energy now joining us on the phone with his take is capital founding partner john kilduff great to have you on i want to get your thoughts. there are so many different factors swirling what's going on in china is in particular focus how do you balance that against the meeting with opec this weekend? >> good to be on with you, morgan these headlines are more like haymakers that come at the market these days the way it's all going. it's a difficult balance particularly as it relates to china, which is really driving the bus here
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you know, this news over the weekend of the expanded lockdowns, and then all of a sudden the pivot yesterday and overnight to the point where if this is to be believed, china may be moving to a position where they're going to treat covid like the and discount it their chances. but reopen and let everybody go about their lives and, like i said, take their chances. that is a meaningful difference to the demand equation for crude oil if that were to occur. yesterday's sell-off was startling to the market. it was swift it built on recent losses. lowest price levels as you guys pointed out in 13 months, and giving back all the 2022 gains that certainly got the attention of opec, opec plus, saudis in particular, and there was some headlines, again a heymaker that hit the market that opec plus would be considering a production cut at the next meeting. now, beyond that, and why i'm
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not necessarily confident that opec plus will announce another cut at this meeting, is because the rubber is hitting the road in europe this month or in december regarding embargoing of russian crude oil first and then february, embargoing of russian refined products things are going to -- the crunch is coming, as i've been talking about. >> so, what does that mean in terms of key levels for crude here >> well, we've seen twice now that we've gotten when wti has gotten down around 75, it gets bought clear support. and we tested below it yesterday and when i look back on the chart and did work, it's clear that 60 will be almost impossible to break if things were to really deteriorate in china. i think really the upside narrative is the one that most in the market are seizing upon, it's most really i think likely scenario that we head back up,
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especially as we try to sort out this situation with what europe is going to be doing so the upside price risk back above 85, back towards 90 and probably triple digits as we get into the end of this year into early january i think a likely scenario at this point. >> okay. we're going to buckle our seat belts then john kilduff, thank you for joining us >> thank you, morgan. we have a big hour on "techcheck" as we mentioned. deirdre sitting down with jeffrey katzenberg we'll hear from the ceo of amazon web services as cloud week continues big show coming up "techcheck" begins at the top of the hour so stay with us go. go brain. no, not that one. go this one. go optimizing data. go efficiency. go results. emerson's plantweb digital ecosystem
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welcome back to "squawk on the street." i'm dominic chu. stocks are moving just slightly higher at this hour with about five sectors up and six down on the session so far the consumer discretionary sector is mixed right now with some of the outperformers in that group in the travel and leisure related names. check out the casino stock operators for one, extending gains from yesterday names like wynn, mgm las vegas sands firmly in positive territory this morning continuing that macao casino
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optimism amid china's easing lockdowns possibly other leisure names trying for gains, expedia, booking holdings and the cruise line operators as well keep an eye on travel and leisure and consumer discretionary. "squawk on the street" will be right back after this break. to adapt in the changing world, you could hire a professor of theoretical mathematics. we all know this equation, right? he'd crunched numbers day and night. that's it. to maximize profitability.
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welcome back to "squawk on the street." a new defense stock to watch leonardo drs has banned trading after merger with the israeli firm rada. the american subsidiary of the italian heavyweight. it's a, quote, unquote, mid-tier defense tech company which combined has a $2.7 billion in 2021 pro forma revenue makes air defense systems and power compulsion systems for nuclear subs, among other things it will ring the clossing bell at the nasdaq today. stock is jumping up 12.5% right now. speaking of defense, i'll be heading to california later this week for the reagan national defense forum speaking with key industry ceos and government officials this week.
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northrop grum man ceo and chairman kathie warden ahead of the unveiling of the b-21 bomber as well happening right here on "squawk on the street" come friday in the meantime a mixed picture for stocks but near the flat line for the major averages. that's going to do it for us here on "squawk on the street. "techcheck" starts now welcome to "techcheck. i am jon fortt with carl quintanilla and deirdre bosa live from the wndrco summit in california's half moon bay today, elon musk looking for attention taking aim at a new target, apple. more on that story in a moment plus, the status quo is gone for media at least according to disney's ceo bob iger. we will discuss that and more with wndrco founding partners sujay jaswa and jeffrey katzenberg that's not all, another star-studded day here as "techcheck" cloud week continues. don't miss my interview with amazon as adam selipsky and how he's handlin

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