china. plus sustainability becoming the new standard president trump says the u.s. will join the trillion tree initiative, and global business leaders continue to say there is growing demand for companies to do right by society. and we welcome back our own sara eisen live at the world economic for numb davos, joined by the chairman and ceo of u.p.s. later on this hour. futures are down aed has of the open the deadly virus outbreak in china is cooling globally as top business leaders meet in davos for the world economic forum the president touted the recent rally in the stock market as his impeachment trial in the senate gets under way in washington listen to what he said >> years of economic stagnation have given way to a roaring geyser of opportunity. u.s. stock markets have soared by more than 50% since my election, adding more than $19 trillion to household wealth and boosting 401(k)s, pensions and college savings accounts for millions of hard-working families >> a lot of headlines out of the president's address. jim, among them, negative rates "something i could get used to very quickly." love that. >> look, he still wants lower rates, i think he makes an exaggerating claim i know larry kudlow was telling a good story, he'd need lower rates to get up to 3% or tax deal i expected a scold i expected hey, listen, i finished china for the moment, and now i'm going to go after germany, and i am kind of blown away by a tape -- here's a statement you tiply don't make he was very statesman-like wasn't on twitter. it was done there, and i think he kind of took some people's breath away. if it weren't for this outbreak, i think that we would be up on his speech alone, because i think there was much -- he could have gone there andblasted away look, he's so much less acrimonious. i think that's important >> we're going to talk about esg in a moment, maybe the only collision thematically he had was with climate change. "we must reject the perennial profits of doom," referring to those who were saying we're on the cusp of some emergency globally regarding climate >> but there is -- he's been using these terms, there was a good article in the paper today, worried about some issues involving climate someday. i think he's trying to figure out how to reconcile whose position, with everybody else's position in the world, without being left behind. >> but what's been interesting of late, certainly, jim, and you know this, having spent time with satya nadella, corporate america globally, actually corporations moved in part perhaps by the shareholder base or the shareholder bases of the future are doing more than government at least in this country. certainly around the world we're talking about an administration to be fair still won't use the words climate change >> right >> that bans it basically from the lexicon in any of the agencies, rolled back environmental regulations across the board in many areas, so i don't know what he's trying to use or not use but it's clear in this country that corporate america is certainly more focused on the issue >> satya nadella laid out a plan by the way, his plan is so no nonsense it's going to be audited, and they can have, along with others, a real big change for what utilities are going to do. obviously they want to get rid of coal. the president is not like that they would like everyone to shift to more wind you can't do it on a dime. and they'd like to switch to more solar there's no doubt about it, when you have this carbon footprint rolled back, it can play a role, provided that you do the tree initiative a lot of people think this is all polyanna mark benihoff is talking about green initiative, a big green bond initiative, not green washing from bank of america a lot of momentum, regardless of what the president wants to do germany and china are the outliers, still putting up coal plants kind of strange. we don't put up coal plants in this country >> china committed to certain things and seemed to back off. >> they did. >> certainly in terms of coal. whereas in this country you made the point many times, coal is just, well not an economical -- >> no. >> -- way to create energy >> no, remember a coal plant lapses 240 40 yea s 40 xwreerz we were the saudi arabia of coal under president carter the plants are decommissioned, 40 years when he did it, '78-'79. this is a i can't recall evolution. everybody is closing coal plants, and in exchange, a lot of people would like to do wind and solar but they know natural gas has to be the base, but it still produces as bad as it is, it produces much less than coal. so i thought the president might have -- if he wanted to, he could have chide in china and germany on coal and didn't do it >> there's a part of paris, we're not. >> regarding xi, he said xi is for china and i'm for the u.s. and other than that, we love each other >> love each other i think is a strong term. [ laughter ] >> truthful hyperbole. >> i didn't read an article said we had a good trade deal maybe they didn't read the 110 pages. the 110 pages is really pretty amazing of the specificity a lot of the things that we got, we don't even make here anymore, but to say that the deal is a joke and to say the american consumer has been hurt, which is really the narrative i read in traditional media, doesn't make sense. we had very little cpi inflation, almost none, and i do believe that we're going to get a lot of what we wanted, particularly the companies that were at the press conference how about that press conference? was that, kept the chinese waiting. i know we love each other, but you mentioned everybody. >> it was unique >> was it? that's it! >> it was unique >> david always seizes on the right word that is not judgmental >> yes >> unique. >> it was unique >> speaking of socially responsible investing, esg is emerging as one of the main themes at ada santa rosa shis paul tudor jones on "squawk" addressing that >> if you had a blank sheet of paper and we were starting to maximize societal happiness and output and those five stakeholders shall shareholders, employees, customers, communities, the planet, would shareholders be the most important thing to manage companies around i don't think so >> comes on the heels of jim's interview with nadella of course last week, nadella had striking words about the threat of climate change bis has a piece on green swans, threats to climate that could triger in their words some kind of systemic financial crisis >> sat nana della, i made the joke to him off cam camera, you can't see out of your window to buy windows, and he was saying well look, let's -- it's not funny. it's not funny that's going to happen if we don't get our act together >> the announcement from them in terms of being carbon negative by 2050 in particular, in other words we're moving all the carbon they put into the atmosphere as a corporation since 1975 >> since it started? >> it was fascinating. i thought tudor jones' comments during "squawk box" were interesting. the point he continued to make which is not dissimilar from what we heard from the business roundtable some months ago but this idea that shareholder return is not necessarily paramount now, and we're seeing it reflected to a certain extent and at least the dichotomy of candidates and the democratic nominating process for president, certainly warren and sanders, it's just interesting that it continues to be a theme. >> oh, yeah. >> and it is coupled with of course the csg moesg move we'ved to highlight over the last few weeks and months >> big theme, green wash who is real and who isn't? satya made the point over and over again look, we are going to audit. we are going to make sure the scope, one is obviously his company but two are the vendors. boy, the vendors could be under pressure, it's such a big team there at microsoft you want their business and then he said the users. now i don't know how to compel the users. but this idea of this, of the earth as a stakeholder, originally brought up by mark benihoff would make it seem if they have a vote >> tudor jones making points about capitalism he's a capitalist, we all are, in the '60s in terms of gdp growth it was far higher even though profit margins were lower, a lot more profit was going back towards the worker, going back to the worker >> yes >> that's, i don't think he's a supporter of warren or sanders but it sounded more like something they would say >> i got to tell you, if i were the chinese, maybe this was behind the deal, they have a different attitude toward china. their attitude is to punish china because of coal. >> that is who >> sanders sanders and warren they are after china big so i think the long game said that it's only going to get worse for us, so because if the democrats win, they'll actually try to blockade us so to speak there isn't any sign they want to do more business with china, particularly because they care much more about the climate than our current president, who has a unique position on climate >> having spent another week at jpm healthcare obviously and in general, what is your sense of this movement towards a focus on sustainability by this corporation? today i think starbucks with an announcement as well >> yes >> about plant-based foods on their menu >> a year ago and a half ago if you asked about it, it would be oh, yeah now they bring it up as a second point after what they're doing and everybody. companies that don't have a big footprint, drug companies, but everybody wants to prove that they care, and it will be interesting to see what -- if you listen to the schlumberger call on friday they did not bring it schlumberger is maybe not going to get the price earnings global they have a good quarter, tremendous cash flow they didn't buy any stock back but things are really good only an oil stock was something people talked about, strictly forbidden. >> starbucks announcement now, it does involve expanding plant-based options, shifting from single use to reusable packaging, carbon reduction in here, regenerative ag practices, reforestation, free trade and coffee for years >> mark benihoff is adamant if we plant trees it would be great. hopefully they don't die which is what happened to bloomberg's tree initiative. >> some of the trees are still alive. >> that was bloomberg saying to people, listen, the key is not to plant but to plant and make them live. >> it's hard to make them live on a street in new york city it's a little easier in a park somewhere. >> the stinko ginkos could survive nuclear war. there's starbucks concerted effort i wonder whether dunkin' donuts will get rid of the styrofoam, that makes it so hot, right? pretty good. i wonder whether starbucks will get rid of the lines in the airport, the franchise ones. >> the packageing is a big deal. advocate people to bring in reusable is good >> clorox is trying hard >> typical wastebasket is flowing with starbucks >> not getting picked up by the sanitation >> is that really their job? >> yes >> it is >> yes >> okay. >> unique position you have. >> yes >> i'm using that "unique. it's better than ill-advised >> some ways >> you got to vary it a little bit. we'll get kr cramer's mad dash d the opening bell sara eisen will hit down with the head of the imf in a few moments. futures a little soft today. we'll get to some news on boeing, best buy there's some valuation calls on the banks, upgrades of intel ahead of earnings season, and week two, back in a minute this is excitement. we are literally going to hogwarts right now. this is unexpected. ahhhh! whoaaa! 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outperformance is at this point almost too good to be true. david, there is an element and people are talking about this, that it was a big squeeze, they have a german factory, put it up as fast as china they'll make the numbers. a note about gm, nobody likes these cars except for tesla in terms of electronic vehicles obviously it's more than just ev they have a lot of other things that people don't talk about enough so i mean, he joins one more chorus of people who says it's too late, and the stock doesn't seem to quit >> doesn't seem to stop, does it "the journal" talking about the german factory saying it's going to be highly unlikely they can put it up as quickly as they did in china >> because of the bats >> just a year a lot of different regulation. >> world war ii bombs, they have to clean the bombs elon he has defied a lot of people in terms of skepticism. >> people don't realize how hard he pushes in terms of getting things done. >> i don't know if i want to work for him >> not just tesla, some private companies you don't realize he's always pushing hard, hard, hard. >> now that he's not let's say squandering his time on twitter and really kind of castigating those who don't understand and focusing on work >> jim, this is a heck of a move at this point if you've been along maybe it's not a bad idea to take some profits >> yes, but remember, i'm more disciplined than the people on tesla. i think the right direction is going up growing into the market cap it's not there yet. tony's piece, you look at it, hold on, price was 325 what good is he? the answer is that this is a company that many people shorted and they never thought it would reach earnings and if it does, at $10 per share next year it's still expensive. >> the numbers are incredible. musk in for a big payday i believe right around this level. all stock. >> miracle worker. china ten months for that factory, tremendous demand in china for tesla. it is not just ev. it's fund, i like it >> we got a 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luxury goods, airlines ahead of the chinese new year look at the futures here, opening bell a few minutes away and don't go anywhere because we'll get early movers and an interview with the ceo of u.p.s. in a moment. dana-farber cancer institute discovered the pd-l1 pathway. pd-l1. they changed how the world fights cancer. blocking the pd-l1 protein, lets the immune system attack, attack, attack cancer. pd-l1 transformed, revolutionized, immunotherapy. pd-l1 saved my life. saved my life. saved my life. what we do here at dana-faber, changes lives everywhere. everywhere. everywhere. everywhere. everywhere. ♪ to challenge your thinking and test your execution. but great minds are driven to seek out the complex. they see what others don't, from an angle others won't take. they learn that embracing those challenges is what sets them apart. i am justin rose, and we are morgan stanley. shlgt the opening be shlgt. the opening bell is brought to you by nuveen, responsible investing. >> you're watching cnbc's "squawk on the street," opening bell in just about four minutes on a busy tuesday. we're going to cram a lot into a holly shortened week as we keep our eye on a new virus confirmed by china paul tudor jones had comments about this global rally we're in, essentially called it crazy town >> right, right. look, i think he's one of the guys and i love him, all right, but focus uniquely on what the fed's going to do and how there's a lot of liquidity i come back and say earnings, earnings, earnings, if the earnings justify the price-to-earnings multiple they'll be fine. the earnings are not controlled by the fed, they're much more controlled by the companies. he is a futures guy, not a stock guy. if the earnings come in, i won't feel like it's that dangerous. mrgen stanley reports a good number last week citi downgrades them ten times earnings, fairly valued it was a monster quarter there were no down days, that's why they are a completely different company. it meant nothing >> up 27% in three months. >> still sells at ten times earning. i mean, they're all up a lot what they did was far better than expected and they stayed in place. >> to your point, credit suisse ups target to 3600 they were 3425 based on eps growing 6.2. >> that i'm with the idea you say the fed the fed, the fed, i find that tiresome >> i want to highlight an activist play hit a few minutes ago. let's get to it before the bell. evergy the merger of great plains and weststar, regulated utility, kansas, missouri. >> right >> elliott owns 11.3 million shares, $760 million, about a $15 billion market value so you can do the math and figure out their percentage ownership what is kind of interesting about it is they want them to stop buying back stock and start investing more in the so-called system, the transmission lines, wind power, decommissioning coal plants elliott is not an esg activist at all >> that's the opposite of what you would expect >> yes, somewhat interesting here they say their low rate based growth, overreliance on share buy-backs created deep concerns among investors and its ability to create value after the share buy-backs are completed in mid 2020 they want them to actually, their coal plants until the end of their useful lives is uninspired, their intention of operating them and completely inefficient. lags behind to reduce carbon emissions by 70% to 80% by 2030o and achieve net zero by 2050 and a lot of their system is an area where the wind is a huge resource and want them to do more wind. this is not an esg play for elliott but it is an esg play. overall at least in what they're pushing here the stock is responding, nominating window doesn't open until march they did things on apparently on a government perspective. >> you'll get a lower price-to-earnings multiple >> this is traded fairly well given interest rates >> i know. >> however elliott underperformed its peer group. >> it's on fire. >> investors are rewarding the utility that are investing in the system >> aep, they have decided as much as they can, let's be environmentally friendly [ cheers and applause let's do what's necessary. naik aiknick akens are committed [ bell ringing ] they wanted to do a gigantic wind project voted down by the regulators that's ge, how about ge? >> doesn't like light bulbs that are energy efficient but anyhow it's an interesting point you make the utilities are rewarded that are focused on that and that seems to be where elliott's trying to push these guys. >> look at dominion, letter d. they have tremendously low cost for what they have, what they produce. that's been a hotbed of places to put data centers. maybe these guys should have more data centers if they were wind oriented. that's interesting by elliott. they're not esg. >> here is the long letter >> let me grab that and come back to you. >> brent is filling in negative. stereo taxis at the nyse, urovant focused on developing therapies for urologic conditions we'll see travel names to see if there is a downgrade of activity in the wake of this virus. >> the cruise lines have always been attack eed aggressively. obviously the casinos, people feel that the travelers will stay home, and those are the ones that are hit. by the way, glaxosmithkline has done more on vaccines, second would be merck and waiting to hear what they've come up with, where they are we don't know. i think this thing went people to people before people realized it look, am i scared? i think that i've seen this over and over again people sell. >> viruses and the human-to-human transmission, they can mutate quickly apparently but not as serious as sars was in terms of deadly. >> sars was 800 dead right now we've got six confirmed dead world health organization will hold an emergency meeting on wednesday, but to jim's point, las vegas sands, united leading the s&p lower. >> they have the ability to be able to track it marriott down, i thought arnie sorenson looks good, he was ill, congratulations to him anything travel related gets shot and comes back. the cruise ships have a good business out of china. i can tell you, from, i'll tell you from the health care conference, vaccines are hot but what's really hot is just ways to cure cancer, not just maintenance, cure cancer by full genetic, finding personalization vaccines, which is really amazing. our life time. >> it's funny, because ten years ago or 15 years ago, jim, we were talking about the drug industry not being particularly innovative things were, we'll extend the patent life by adding this, here is another medicine that will maybe be helpful for you that we hope you have to take every day but there's been a change. >> biotech companies >> yes, and also ten years out of the human genome being available fully decoded and available and cheaper and cheaper and cheaper in terms of the ability to use that, it appears that there is a wave of innovation taking place. >> it's very exciting. sequencing, sequencing the company's very committed to very high, lofty goals of what they can accomplish. i met with this company moderna. they're developing cancer vaccines cancer vaccines, this is incredible you're seeing illnesses, cancer illnesses that have killed people routinely they no longer kill people the flipside is that you didn't see much innovation away from cancer so you could argue that that's not possible there's an overabundance of companies working on cancer. it's a terrible disease, particularly lung cancer, not all smoking, and there's other illnesses that are just kind of not going, anything brain is not looked at. >> cures as opposed to just -- >> saving lives. saving lives, but there's not a lot against heart attack there's not a lot against they're doing some with rheumatoid arthritis >> as the wave of innovation continues does it start to mitigate some of the criticism of drug prices >> absolutely, great point i mean look, when you have a relative that's saved, over time, you're saying wow, wait a second by the way, gw pharma has done some amazing work with epilepsy and cannabis drive drug, gigantic quarter but lumped in with these, you know, afrias, marijuana stocks nobody cares about, tilray, moving up, probably going to drive it >> upgrades today we got a few, costco >> wow >> outperform. >> i spent the morning with costco, doing a big piece tonight on it. they are on fire galanti a great job as cfo, gelenik fantastic job as cfo they had kamus for about 70 bucks. they have a huge wine collection out there. they sold a piece of jewelry for $450,000 in that store that's a lot of money. but near their headquarters. they're on fire. by the way, china, they have won, they could put up a huge number in china. they have one they closed it after two hours because it was too crowded. they were angry at themselves. wall street says let's put them up no, we haven't figured out how to handle crowds but they are going to expand in china like you've never seen. it's going to be amazing they have 100 in canada. they can put easily 100 in china. it's going to be incredible. by the way, they like sea cucumbers in china >> smaller >> they brought them over. they brought a lot of different crackers over, chinese crackers. i don't know i like the lochs and bagels. the best i've ever had >> where was that? >> costco. people compare it to russ and dorf >> nothing is better than barney >> barney greengrass was slammed. david, this is international this is not national it's not local they had everything bagels >> just stop just stop. costco better than those just stop. >> fresher >> i'm sorry stop >> can you at least try it before -- >> no. >> jelenik doesn't do a lot of press. >> first time. nova just trading there buy nstr, that is not the nova i had. by the way, jenveggie cream che. >> i get you, sounds good. semis, intel, jeffries ups to hold. amd a couple price target bumps, cowan 47 to 60 >> oh, the pressure on lisa su, ceo of amd >> i'm aware of who she is, thank you. oh you were telling the viewers. >> remember it's a podcast, too, i have to do that. >> i forgot for a second >> by the way, intel, they've got -- bob swann has a package, a huge amount if the stock stays above 60 i think this s you know, interesting way, people are starting to reward a lot of ceos if the stock goes higher it's great >> tesla the most dramatic example. >> is he in that yet, carl >> i don't know. i need look back and remember. i no he's very close and i remember when it was announced at the time. we applauded it because he was not taking a large salary. it was a stock price went up so far beyond where the current price was that it seemed as though shareholders would be happy to give elon $1 billion. >> i agree he's so aligned with the stock >> elon? >> yes only axon, the old taser, they've got a similar situation where if the stock trades up big they'll make fortunes. people are buying zoetus, it has vaccines for animals is this animal based, the coronavirus? >> isn't it from bats potentially? sars was >> but zoetis is not -- >> but it's animal to human, then human to human. mutates all the time >> zoetis is a great company to presume they have something is taking a big leap of faith. they're a good company, too. >> boeing a couple pieces of news, a report from our airline reporter leslie joseph, they're in talk to borrow $10 billion or more amid the max costs, which we estimate are about $1 billion a month now. the head of airlease one of the biggest customers is advising them to drop the max name. says it should go down in history as a bad name for an aircraft >> it's not like new coke. i mean, hello. the president wanted to rebrand them >> held 320 on friday, did it not? >> it does borrow for five and borrow ten people like the new open boeing but there's another piece today about how in 2009, i mean the long knives are out for boeing, and at a certain point, no one paid any attention to that independent panel that said that they didn't snow the faa that was an independent panel. it wasn't owned by boeing. what's the word on calhoun, david? >> i think it's a little early >> too early >> too early >> i want him here, right here right now. >> too early >> no, i want calhoun right over there. i mean it. it's time that he just talks about what he sees, because this is fast track. they have to get this thing done they have to get this thing done now. why is it just -- is it software we don't even know if he comes here, the simulator was obviously a big deal >> probably more focused on trying to get stuff done and communicate later when he's gotten it done as opposed to talk about what you're going to do >> let's hear about it you think it's premature >> not that i want to discourage him from coming. >> i'm trying to do a get. >> the strategy would not be to communicate with us. >> david is doing something interesting saying you know what jim wants to get the guy on. jim, give that up. i'm not mike wallace, but you're mike douglas >> really quick. >> would you like to sit on the couch? cigarettes uber is back above the 200-day for the first time since august >> they did it >> get out of uber eats in india. you've been talking about this a long time. >> this stock is undervalued this stock is undervalued. as they get out of bad uber eats it's going to go higher. it's an ecosystem. mark is very, very good. he's really, you know, i think he is spot on, on this he comes in the san francisco bureau and listens, well, that was good the bureau in san francisco. >> i'm aware of it i was there last march >> yeah, for a day >> i was there for two days. >> two days, i'm sorry i didn't know it was that long >> i'd like to be there more often. if you invited me along i might join you carl would, too. >> david, you have said that many times you don't like to get up at 2:00 like i do. >> i don't >> wake-up call. >> at the same time. >> wake-up call. i went to a warriors game, again, this happened the wake-up call is the time that i'm up. i'd like this early morning wake-up call get up you're up. the warriors got crushed it was not the warriors of old >> next time -- >> wow >> my wake-up call is like 5:00 a.m. >> no, it's like you're already doing tea and getting made up. >> all right >> happy birthday to regina gilgan, she's about 30 >> we love regina. welcome to sara eisen back from maternity leave, three and a half months ago she and her husband matt welcomed their second on, harrison james levine into the world and right away off to davos live from the world economic forum sara, did you miss us because we sure missed you? >> of course i missed you guys and i feel right at home, being on strpt st"squawk on the streee boys at home, three of you guys on set and i just felt like i should ease back in to work by leaving my family for six nights to come to davos felt like very appropriate for me and my hard-working life. no, but seriously, didn't want to miss davos. all the newsmakers here. started fast with president trump and we have a fantastic line-up for you. i'll be very excited to see you guys back in studio, but happy to be back with you here >> so this week in davos and back on set starting on monday, right? >> starting on monday i will be back and i've got a very appropriate guest for my return from maternity leave here to kick things off, sitting here beside me is david abney, chairman and ceo of u.p.s. i was with him for lunch the day before labor nice to be back for my return. president trump kicked it off a mentioned with an optimistic beat, talking about america's economic achievements. do you share that optimism right now as you look out to 2020? >> we were certainly encouraged by the u.s./china phase one and u.s. mca in the last week, both of those getting approved we think is a step in the right direction. we think there's some positive momentum here and of course, we want to see that carry over into phase two. >> you were i believe at the signing of phase one >> i was, yes. >> what it is going to be the impact on u.p.s. of that deal? >> i think the immediate impact is that many of our customers, especially consumers are about to get hit with another tariff that was going to really increase the cost of goods we got that stopped, and then some of the other tariffs were reduced, so i believe we will immediately see some relief there, and then just encourage the two governments will find ways to reach agreements on some of these issues so that we can increase growth, trade both ways >> what are you expecting for trade volumes this year? because the uncertainty has lifted, but many of the tariffs are still in place >> they are, and all of those don't go away. we just think there's some positive momentum. we will see, i think that we will see a few more exports from china coming into the u.s., with some of that uncertainty taken away, but at the same time, chinese exports to other parts of the world we've seen increase so we'll see what the results here are >> what about the industrial sector of the u.s. economy you've got a pretty good feel for manufacturing, and it has been slow. >> yes, the last comments that i was able to make was after the third quarter. at that time, certainly we're seeing that it just wasn't picking up the way that we would have liked at the same time, the consumer was really carrying the economy, and then i'll be able to say more next week >> i know you're in quiet period so you're dancing around this. can you tell us about the strength of the consumer over the holiday season >> yeah, what we really saw is from an e-commerce standpoint, picked up maybe faster than what we thought and there was certainly some winners, some companies they came out much better than maybe some people would expect >> like who? >> we'll talk more next week >> mention a name for us was it seamless for you overall in terms of logistics? >> we knew it was going to be heavy because less days between thanksgiving and christmas right after thanksgiving there were a few days that were challenging, but we felt very good about how the network held up >> what about returns? >> returns are very busy this time of year used to be that christmas eve is when everything kind of slowed down now returns it carries on even through this week. >> because of the e-commerce and shopping online. >> and the return rate for e-commerce is so much higher than brick and mo are tar. >> globally people look at u.p.s. as a global economic bellwether as well what do you see as growth?downg. >> we move 3% of the world's gdp so we have a pretty good view what is going on in the present time we aren't a leading indicator, we can't tell what's going to happen in the future and sorry, next week, i'll be able to talk more about how we see global trade looking. >> your stock had a pretty good year, up more than 20% your chief rival fedex though is down more than 10% for the year. how do you look at that divergence that played out >> i think what has worked for us has been that we six, seven years ago really concentrated an e-commerce we could see it coming, and we started making the investments and started developing the technology, and i just think that we are further ahead from that regard, and now e-commerce has absolutely lived up to our expectations, and it will continue, so we have to continue to transform our company, and continue to stay ahead of the needs of our customers >> i would say that's been one of your signature efforts, right, transforming the company into an e-commerce world you've been there for six worlds how do you think about your future and u.p.s.'s future and what you have to do? >> we've had a great past and our present was still good and it has been. we just knew that we needed to transform the company, if the future was going to be even more positive than our past so embracing technology, embracing e-commerce, embracing global markets, and that's where we made the moves with the company. >> david abney thank you for joining me >> thank you, sara >> chairman and ceo of u.p.s guys, we'll talk to the new managing director of the imf in the next hour. >> it's great to have you back on our air, our own sara eisen let's get a check on where things stand as we kick off today's trade. holiday shortened week dow action down 25 not as bad as the futures might have expected. back in a minute he wanted a man cave in our new home. but she wanted to be close to nature. so, we met in the middle. ohhhhh! look who just woke up! you are so cute! but one thing we could both agree on was getting geico to help with homeowners insurance. yeah, it was really easy and we saved a bunch of money. oh, you got it. you are such a smart bear! call geico and see how easy saving on homeowners and condo insurance can be. with a nation-leading $150 billion commitment to infrastructure, we're creating state of the art, 21st century transportation hubs, constructing new bridges, bringing high-speed internet to every corner of the state, and committing to low-cost clean energy. with infrastructure built for the future, the companies of tomorrow can thrive here today. see your future at esd.ny.gov. some pictures of davos this week there's a lot more to come from the world economic forum in the coming days including executives of nestle, philip morris, sales force, jpm and more. dow down 40, stock trading with jim in a moment. ♪ some things are too important to do yourself. get customized security with 24/7 monitoring from xfinity home. awarded the best professionally installed system by cnet. simple. easy. awesome. call, click or visit a store today. let's get to jim and stock trading. >> i want to talk about facebook for a second facebook when i was out there is the company where people are just saying you want to sell your goods, instagram. i can't tell you how many off the record said you use instagram, including companies you would be quite shocked, who don't really want to admit that instagram is the place to go, but uniformly tells me penetration isn't nearly as much, it can go higher. >> meanwhile, jim, "jeopardy" clue on friday night, the answer, of course, was "mad mone money" >> yeah. they didn't know they didn't know it was kind of like, guys, give me a break. >> they didn't know. >> alex trebek was like -- >> please, come on. >> yeah. it was kind of disappointing, 15 yea years, they didn't know. i'm obviously just a recognizable figure, not any more than that. >> i am surprised at that. >> you were a contestant. >> it wasn't the champions round. >> he's a contestant maybe if dave was a contestant i could do well. they didn't know they were all blank. >> i might have come up with it. >> a $200, usually that easy. >> what is tonight, jim. >> i was crushed by it i didn't tell anybody i was crushed. i keep it to myself. logitech, that's the way to do gaming, brack and darrell. >> a prayer interview he doesn't talk about lox and bagels. >> that's amazing. looking forward to that. >> you'll love the interview, my most exciting out west they are killing it. >> kimg lling it. >> jim, great to have you back at the desk. >> geez, can i stay home for a while? >> after the break, sarah sits down with the head of the imf. you don't want to miss that. dow is down 37 we're carvana, the company who invented car vending machines and buying a car 100% online. now we've created a brand new way for you to sell your car. whether it's a year old or a few years old, we want to buy your car. so go to carvana and enter your license plate, answer a few questions, and our techno-wizardry calculates your car's value and gives you a real offer in seconds. when you're ready, we'll come to you, pay you on the spot, and pick up your car. that's it. so ditch the old way of selling your car, and say hello to the new way-- at carvana. obama barac welcome back to "squawk on the street." sarah eisen is back and live with us from the world economic forum in davos, switzerland, where she has some big interviews coming up this hour, including managing director of imf as all eyes are on the trend of the economy dow is down 32, busy morning as trying to confirm the new virus. senate trial begins, davos, we said, earnings round two tonight with netflix and ibm let's get to sarah eisen in davos and talk about thematically what we're hearing this year. hi, sarah. >> reporter: the president, president trump, really set the tone this morning. he made his speech a victory lap, an i told you so, without explicitly saying that to an audience of people that were skeptical. when president trump came two years ago he talked a lot about america first, the idea of multi-lateralism today he said my policies are working and listed off a long list of economic achievements. here is how he characterized u.s. economy now. >> today i'm proud to declare that the united states is in the midst of an economic boom, the likes of which the world has never seen before. we've regained our stride, rediscovered our spirit and reawakened the powerful machinery of american enterprise. >> it was optimistic and really spoke to trade deals, phase one u.s.-china, usmca and how those we're the ways of the future he also didn't miss the opportunity to bash the fed, not as aggressively as he does on twitter but still criticizing their policy listen to this. >> these great numbers are many things, and it's despite the fact that the fed has raised rates too fast and lowered them too slowly >> and david, courtney and carl, as far as what investors care about here, he did say that the tariffs with china would remain in place during the phase two negotiations but also sounded pretty optimistic about that, too, saying the u.s. and china are in a very good place in their relationship, that his relationship with president xi is extraordinary it was a lot more friendly, positive tone to the president's overall speech, even though he did say he encouraged other countries economies and leaders to act in the interest of their nation and their citizens like he was definitely had that america first feel from the president as usual, guys. >> all right meanwhile, sara, andrew's column this morning suggests corporate executives really from all around the world have come around to trump's style of management in ways that we might not have been able to predict a couple years ago maybe, he argues, because of the alternatives we're starting to see especially on the lefts. >> absolutely. two of people on the sidelines or find themselves in the discussion, senator elizabeth warren and senator bernie sanders. while the theme here is climate change and corporate responsibility for esg policies and making the world a better place, i think there is certainly some fear that that policy goes too far when it comes to criticisms around capitalism and some of the tax plans out there. so certainly president trump may be more popular than he was here two years ago. he certainly got a very generous introduction from the head of the world economic forum, a figure that has really stood for this idea of stakeholder capitalism multi-lateralism, global institutions, many things that stand in contrast to president trump's policies the other difference, as you say, carl, the president definitely has things to show for his attitude, the signing of the two trade deals and a long list of achievements of the u.s. including very low unemployment, millions of jobs created under his watch, higher wages. the list goes on and on. so coming here to say that, i do think he gets a lot more credit and fans than he would have a few years ago at the beginning of his presidency. whether they are hoping, i don't know they would go that far but the left is more extreme this is a more centrist crowd when it comes to the politics of the u.s. >> sara, thank you we'll be seeing you again very shortly. speaking of the crowd there at davos, of course, responsible investing certainly becoming a big theme. here is paul tudor jones on "squawk box." >> if you had a black sheet of paper and trying to maximize happiness and output, those five stakeholders, shareholders, customers, employees, communities, the planet, would shareholders be the most important thing to manage companies around i don't think so. >> we've got with us now henry fernandez, chairman and ceo of mci which today is urging the industry to integrate into the process. how are you? assets with management's with esg threshold have grown dramatically over the last two or three years one key is how to measure corporations effectively, within their peer groups, because the metrics are hard to find tell me about the metrics and is it all going to actually help in that effort? >> our announcement is an urgent calling by msci to investors worldwide toss embrace more fully and make change more significant and esg integration into their portfolios. the reason is the demands of society, for better social justice, social inclusion, protection on the environment, better governance of institutions and the like have been heard by this slow progress it is not at the pace that is required in our case, it is not on the pace that is required to protect financial assets in portfolios of our clients around the world. we are sounding the alarm bells that if you're an investment institution, and you are not embracing this and taking it into your own account, it's at your own peril because your portfolios are going to underperform dramatically because there's a common repricing of financial assets and common reallocation of assets around the world according to the criteria, especially climate change. so msci has been a provider of tools to address those for more than two decades we and our companies, and we have tools and are building even more so. the question is the pace of adoption of those tools. >> tell me, what are you actually offering now you weren't previously that's going to help with this adoption >> first of all, we rate 15,000 issuers, stocks and bonds, criterias. we're the largest rating agencies according to esg in the world. secondly, we take those ratings and incorporate them into esg indexes. we weigh the stocks of an index based on the ranking they have on the ratings based on the rates. that has been very popular around the world then extensive research when a company says i want to exclude the following companies, not exclude, not a lot of pure plays, a lot of gradations of gray so we have enormous research to be able to describe what those exclusions should be and we build risk models, performance and risk of portfolios and the like so we've done that inequities, fixed income, real estate and private asset classes, particularly private equities. >> how about these companies that are doing business all around the world are your standards going to be different based on each country? how are you really evaluating the standards are you taking the company's word for it. >> first of all, all universal values ask to violate local law in a particular instance and a lot of laws that say, you know, you can go ahead and pollute a river so it's the opposite there are a lot of laws to protect the environment, for example. there are a lot that describe governance of companies. the problem is they are not adhered to many times. the universal values, we're going to apply them all over the world to every kind of company, issue we are of bonds, real estate, every kind of private company or anything like that. so that is what goes into the tools that we make available to institutional investors worldwide. this is not a national phenomenon, this is a global trend we need to incorporate. >> but to courtney's point, the reporting of your sustainable packaging efforts, it's not uniform. so when does that come along in the meantime, do we just have to believe them they did what they said they are going to do. >> we have huge extensive data we collect half of the data is company reported. >> 10k. >> the description and websites and things like that we don't take the company's wofford only they aren't going to say we discriminate women, pollute rivers half the data from ratings is obtained through third party sources. for example, we're one of the largest uses of information that comes out of courts of law in order to understand any kind of lawsuit in a particular company and regulatory agencies like environmental agencies. >> an accurate representation of a corporation's carbon footprint? is that possible >> eventually it will be we're beginning to go in that direction. for now a directional concept and eventually will become very metrics driven it's an evolution. >> what do you say to those that think it's a fad, point to announcements like you today or from black rock, little more than window dressing making you look good. >> this is one of the things we point out in principle this is a permanent change in the way capitalism works by the way, we're doing this to protect capitalism otherwise government intervention is going to come, socialism is going to come and the like it's not against capitalism, it's about dealing with the externalities that are created in capitalism. so this is a trend it's a trend that is not only in companies, not only in issuers, it's in every institution, whether religious, governmental, whether it's political or media, there is a trend that society is making all these institutions accountable to their behavior. a lot of it is driven by the transparency of information that is coming out. society hasn't changed you would have been intolerant of transgression 100 years ago except you didn't know it. it was not prevalent today you can find out very quickly if somebody is doing something wrong and therefore society's tolerance towards that is very limited. >> henry, thank you. it's an issue we're following closely. we certainly appreciate you joining us today. >> thank you thank you for having me. still to come this morning, mark fields will join us post nine we'll talk all things auto including the run at tesla that continues today. first off sara has a look at what's ahead this hour sara. >> carl, global growth and the projection for 2020, one of the hot topics in davos, switzerland. when we come back the new m's managing director of imf krystal inna georgieva (live bookkeeper) you're all set up! 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(vo) get set up right with a live bookkeeper with intuit quickbooks. looking to get your business off to a fast start in the new year? it's go time! switch to comcast business and get fast internet on the nation's largest gig-speed network. plus, complete reliability with 4g lte backup. and, cloud-based security to help protect the devices on your network. greenlight your business in 2020 with fast internet and voice for $64.90 per month. switch now and get a $100 prepaid card when you add comcast business securityedge. call today. comcast business. beyond fast. the street" where i'm live in davos, switzerland trimming the 2020 forecast just this week. joining me now managing director of imf kristalina georgieva. nice to see you. >> thank you very much for having me here. >> i mentioned the trimmed global outlook what was the reason behind the outgrade. >> let me state we're in a better place today than we were in october the trimming down is because of india, abrupt slowdown in one country, and a little bit of unrest in hong kong, chile, colombia. >> so it doesn't say anything about the overall. >> three things better today number one, trade and industrial seem to be bottoming out two, we have been success foreign minister with synchronized cutting of interest rates that helped the world economy. and three, china-u.s. phase one deal. >> what did you think about that deal did it go far enough >> obviously if there is a phase two, that means phase one hasn't gone far enough. >> were you disappointed the tariffs remain >> the important thing is we now have a capacity to cooperate between two countries that are very critical for global growth. we would like to see more. we would like to see more predictability because the fact they hold this growth down, anything that can be done to reduce uncertainty is good for growth. >> what do you see for china's economic picture as a result of phase one trade deal their economy got hurt harder than u.s. >> they were more impacted by downside of tension and benefiting from the upside of an agreement. we actually upgraded forecast by nine 1.2% as a result of this predictable of less tensions in the area of trade. china is going through a position from high speed to what they call high quality of growth this downward path is nature of reaction to that transition but of course our projection was 5.8 in 2020 and now up to 6% that helps china it helps asia, it helps the world. >> what about the u.s. there seems to be a lot of optimism in the air not just from trump but a lot of ceos. we were talking a few months ago there were concerns we were going into the recession, watching the yield curving and slowdown in manufacturing. what's changed >> the u.s. economy is doing well unemployment is record low, 50 years record low growth above potentials second year in the row. the fact that trade tensions are now less spreading and dragging investors down, things are getting -- well, they are actually in good shape good status for u.s. economy, good for the rest of the world what we see is consumer confidence being very strong and it is driven by wage growth. we also see that investment confidence seems to be swinging upward but all of this will depend on sustaining a positive relation with the other big economy over time, and it would depend on how u.s. is going to handle the fact that the tax cuts impact is going to slow down one good thing for the whole world economy was the active monitoring policy. we calculate that half a percentage point of growth last year and this year is a result of synchronized cuts 49 central banks, 71 cuts. problem is, we can not rely on monetary policy forever. >> i was just going to ask, do you think that's over, that cycle. >> we expect an accommodative policy to continue some countries, u.s. in that category, still have some more space. >> rather than -- >> our recommendation is please do concentrate on fiscal policy, don't rely on monetary policy alone. >> what did you think of the president's speech this morning, president trump? >> it is an optimistic speech. very good to have president trump here with a large delegation of secretaries engaging with their partners, it adds to this picture of we work together for a stronger world economy. >> back to the central banks for a moment you said you're expecting some easing to come from around the world. there are questions as to how much power central banks have left in places like europe and japan to prop up the economy. >> not many. we also have to recognize that prolonged periods of low interest rates, that's got unintended consequences. two of them we watch very carefully. first, the build up of debt. now we're at $188 trillion households, businesses, governments are all going into more debt because it is cheap to do so. if there is any reversal of interest rates, that would cause trouble. second, appetite for risk. when you are pursuing yields, you go for higher risk investments. that especially borrow for nonbanking with higher yield and higher risk. >> are you saying the stock market looks overvalued to you right now given economic fundamentals >> what we see is that low interest rates have pushed more money into equities. that is logical. it is to be expected. >> all right kristalina georgieva, thank you so much for joining me nice to see you. >> thank you. >> that is imf managing director first interview with her since taking over three months ago, i think. come coinciding with having a baby. >> congratulations. >> congratulations to you both thanks, sara as we go to break, markets close to session lows, dow down 100 a couple minutes ago as a reminder you can also watch us live on the go, on the cnbc app. make sure you download that today. "squawk on the street" back in a moment fights cancer, repairs shattered bones, relieves depression, restores heart rhythms, helps you back from strokes, and keeps you healthy your whole life. from the day you're born we never stop taking care of you. welcome back to "squawk on the street" now. for our etf spotlight taking a look at the retail sector, xrt under a bit of pressure, down about a percent today. one name in the group bucking the trend is best buy. late friday best buy confirmed its board is looking into an allegations of mernl misconduct by ceo cory berry. an inappropriate romantic relationship between barry when she was chief financial office who has since left the company they confirm they are investigating the matter but declined to comment any further. in 2012, then best buy ceo brian dunn was ousted a month after allegations surfaced of a relationship with a subordinate female ceo ultimately dunn fired for viola violating rules. barry has been a key architecture of the key strategy in her current and previous conditions but i've spoken with many who say there has been some relief realizing if the investigation ends, let's say with termination hubert joly is chairman, has an office next to barry. he could theoretically step back in another capable leader could be a fit for the top job as well. his name had been floated initially as a potential successor before barry was named. she's only been in that job since june a lot of questions still remain about this company and about potential of the future. the last investigation, as i mentioned, took about a month from the time we initially heard until mr. dunn was ultimately ousted. >> so parallel to mcdonald's easterbrook seem slim. >> it's unclear if there's a policy that prohibits sbroif relationships. from whether or not we understand, this occurred while she was chief financial officer and the other executive was a senior vice president. so unclear if you would consider that a subordinate but judgment comes into question even if there isn't a policy that directly prohibits this. >> courtney, thanks. let's get back to headquarters now. sue herera has a news update at this hour. sue. >> indeed i do thank you, david good morning, everyone here is what's happening at this hour president trump commenting on his impeachment trial on his way to give the opening comments at the world economic forum in davos, switzerland he was asked why it's better for him to be in davos than in washington. >> meeting with world leaders, biggest, most important people in the world, it's important the other is a hoax. it's the witch hunt that's been going on for years frankly, it's disgraceful. >> prince harry arriving in canada last night to join his wife meghan and son archie he flew from london to vancouver where he stepped off a plane accompanied by security guards and got into a waiting car before leaving, though, he admitted he was taking a leap of faith after stepping back from royal duties. and your palm may be your next credit card "the wall street journal" says amazon is developing a palm scanner that can link back to a person's credit card information. the company has reportedly begun working on this with visa in testing that concept so all you have to do is wave. i'll send it back downtown to you guys that's the news update court, back to you. >> i know these developments are cool but they kind of freak me out a little bit. >> it does. >> i'm not ready for that. >> how much do they really find out about you? that's another story. >> i think -- i was going to say i think we just don't know thank you, sue after the break, back to davos and hear from the co-ceo of carlyle group. "squawk on the street" returns in two minutes ♪ ♪ before we talk about tax-s-audrey's expecting... new? -twins! ♪ we'd be closer to the twins. change in plans. at fidelity, a change in plans is always part of the plan. now you can, with shipsticks.com! no more lugging your clubs through the airport or risk having your clubs lost or damaged by the airlines. sending your own clubs ahead with shipsticks.com makes it fast & easy to get to your golf destination. with just a few clicks or a phone call, we'll pick up and deliver your clubs on-time, guaranteed, for as low as $39.99. shipsticks.com saves you time and money. make it simple. make it ship sticks. welcome back to "squawk on the street" where i am live here from the world economic forum in davos, switzerland joining me now is glenn youngkin, carlyle group's co-ceo nice to see you. >> good afternoon. >> just looking at the market here, off about 100 but still hovering near record highs i know you just talked on a panel about the u.s. trajectory. where do you see us in terms of the market cycle now >> i think it's clear that the u.s. is in a period of sustained growth it's not what everybody would want but it's sustained growth that has been, i think, underpinned from a market standpoint by the recent trade deal we've got clarity on brexit, usmca. we've just had the first phase of china-u.s. trade. i think the market is anticipating that really one of the challenges to the economy over the last two years has been international trade. with all these developments, i think the market is anticipating international trade is going to recover and therefore economies should actually grow faster than it has. >> even though we're in an 11-year economic expansion. >> i don't think economic expansions die of old age. they die of excess we don't see excess to any major material degree in the economy so we think it can continue to grow it's not going to grow as fast as people would like but steady, slow growth is fine. >> what does that mean for you at carlyle and what you see as far as investing opportunities now. >> actually steady, slow growth is not so bad for us environment will stay low, assets high. that's a challenge you have to work awfully hard to fin things to invest in. one of the things we strongly believe in is when you have specialists and lots of experts inside a firm you can find good things to invest in. slow growth, divest, disruption, capital to grow. governments that may not have as much surplus cash as they want means they need private capital to invest in airports and other infrastructure so i think one of the great benefits of being in a firm the size of carlyle is we have a lot of talent. the talent is specialized and helping us find interesting things to invest in. >> there's what, more than $1 trillion wall of crash sitting on the sidelines in private equity >> that is true. that is true more than we've ever seen in the industry but i think counter-balancing that is the fact there's been a big shift from capitalization from public markets to private markets, so there's far more private companies today. companies are very happy staying private for a long period of time so again while it's not easy, we continue to find good things to do. >> your stock has done remarkably well, i think more than doubled last year. >> thank you for noticing. >> so many of these private equity firms, obviously quirt ly converted into a corporation how much do you think? >> i think the meaningful portion is the conversion. the other part is we performed very well. the conversion was important i think for many years we suffered from oh, we're good at what we do, you should buy our stock. what we recognized is we, in fact, need to come up with ownership security that was actually more shareholder friendly i think it really does reflect the broad view of who we work for. we work for our investors and funds, our shareholders, our employees and our communities. as a result this redefinition of carlyle's ownership, and i think we came up with a pretty unique structure, went all the way to a full corporation everybody has the same share, there's great transparency and investors have really supported us. >> so you're kind of getting at this bh this whole theme of stakeholder capitalism front and center. what are you hearing from your investors on that? >> the great thing is we have vocal sets of investors, one is a public company also the ones that have supported us for over 30 years these topics are incredibly important. it's not just making money but it's actually taking care of companies the right way, their communities. many of our investors like for us to report back to them the progress we're making on esg because every company has an esg plan that howholistic approach is fa more than norm but we've run to it started initiatives about four years ago and found ourselves very well placed making a difference in the portfolio companies we own, driving esg initiatives, and as a result creating value from it that's actually quite reinforcing. >> some wonder if it's a bull market phenomenon. as long as the economy is doing okay and going up, it's fine we all want the world to be a better place what happens in a downturn >> i will tell you, sara, one of the things we've firmly embraced because it happens to be true is that when you're making good decisions wholistically at a company level, not only do you drive economic performance because oh, by the way, if you bring your energy footprint down, if, in fact, you have a much better supply chain, reformulate your ingredients, have better packaging, guess what, you're going to sell more of your product and have a better economic outcome. they really are reinforcing. we've also found that on the talent front that while a lot of people talk about diversity and inclusion, i think if you start from the point better diverse thought results in better outcomes and drive from better outcomes under the circumstances a better workforce we've really been on this for years. we're seeing a lot of progress half of aui is managed by women. >> which surprises me. >> it shouldn't. this is part of the workforce that will get the best answers i think this trend, which is getting a lot of air time here is one that a lot of companies like carlyle have really been pressing for a while. >> another trend and what we're trying to figure out is how the political landscape evolves. a lot of leaders facing election private equity, are you guys bracing for attacks from the left >> bracing is a strong word. we recognize what we do and how we do it isn't holistically understood, private capital and how we not only drive transformation of companies, take good choice and make them great, all the answer later supply chains and communities and we have not done a good job helping people fully understand that i think we're doing a better job now. i look at what we're doing in new york around jfk. by the time we're done at jfk, we'll have created 5,000 incremental jobs, we'll have trained up a whole community to run the airport and created a sustainable workforce. >> you're getting a sweet deal on taxes what are your expectations if we do see an elizabeth warren or bernie sanders or really any -- a lot of the leading candidates have plans to tax you higher. >> they won't just pick on us. i think the whole tax code will come under some scrutiny and adjustments. i think holistically if we do end up with bernie sanders or elizabeth warren and a majority in congress that we'll see some changes to the tax code. it's okay. we don't work to save taxes. what we do, we work to actually create value we'll pay taxes, whatever the tax is due. >> thank you co-ceo of carlyle group. send it back to you, david. >> okay, sara. i'm going to send it right back to you now and revive an old tradition by asking you what is coming up on that very exciting show that you also anchor called the closing bell >> i know you've missed that moment of the show where you ask me that question today we keep the big hitters coming from davos, the world's biggest food and beverage company nestle, mark snyder seeing his stock trade at a record high. we'll talk about consumer trends, what he's seeing from the economy and a whole lot more including their new plant-based burgers. back to you guys. >> that's going to be interesting, looking forward to that sara, thank you. tesla continuing its strong start to the year. the stock is up roughly 30%. that's since the beginning of the year former ford ceo mark fields is going to join us next. he's going to talk about tesla, perhaps about the carlos ghosn escape, the future of autonomous driving. i can think of so many things. don't go anywhere. - at southern new hampshire university, we believe in education built for all people. - [woman] snhu was the best experience of my life. - [man] without snhu, i wouldn't be the leader i am today. - [woman] i graduated high school 19 years ago. i still finished. - [man] in the military, you feel that sense of accomplishment. that's what snhu is. - you will march from this arena and say to the world.. i did it. - [woman] you did it. i love you. - [graduate] i love you too. between what is hoped for and what can be, there's a bridge. between endangered and protected, there's a bridge. between chaos and wonder, there's a bridge. there from the beginning to where we stand today. one company. one promise. if you can imagine it, we will build the bridge to get you there. cisco. the bridge to possible. housing stocks are on fire in the early start to the year, and a few choice names could be building an even bigger breakout find o wchuthi ones they are on trade g na trading nation at tradingnation.cnbc.com more "squawk on the street" coming up. tesla surging behind several wall street upgrades does initiate a new target of 800, new street high for tesla stock has doubled over the last six months for more on tesla and the market at large joined by former president and ceo now capital adviser markfields at post nine. good to see you. >> thanks for having me. >> tesla a new high. what's your sense the world of electrification and the way he managed to pound the shorts. >> it's the future of the industry the question is, what's the payoff and adoption rates. if you look at what tesla has done, they have created a really kind of iconic brand for electrification. he's done a good job with his organization creating an aspirational brand for electric vehicles investors now are saying big macros, electrification is coming they have a good brand, ramping in china right now they are building a plant in europe i think also beyond just an automotive maker they have solar business, energy storage. all that wrapped together, investors are getting very excited. the question, though, is can they consistently be profitable. we'll see that in next quarter's results. >> is the bigger story adoption or cost efficient manufacturing? at least in the tesla case. >> i think, you know, for the whole industry with the electrofied models showing up this year, the question is will customers the same degree for tesla. for me it's around the demand factor from a cost standpoint, yes. it's still more expensive than internal combustion engines and consumers are very pragmatic over the next four or five years, that cost differential will go away the question is will there be natural demand for mass adoption and tesla has done a good job on early adopters and creating that brand. >> you think they are buying teslas to buy teslas, not because of ev. >> you talk to most tesla customers they are buying it for the brand. added factors, we can be cool and help the environment because it's electrofied as well a lot of discussion of tesla's challenges of ramping up and becoming a mass manufacturer, which are a lot of challenges they are working through what's not talked about electrofied product, there's lots of software management in that they have a big advantage over oems they are just now introducing electric products and it's yet to be seen can they master that. i thought it was interesting ceo of vw in an internal meeting said, listen, we're far behind on software and we need to up our game that's a really interesting comment coming as they are launching id 3, are they having issues as they ramp and master the software skills necessary? who knows. speaking of software, autonomous is also again part of the investment case for tesla where a lot of people who are positive on the company's prospects believe it has an opportunity to dominate. when you're at ford we are talking about autonomous that's starting to rearview mirror, be in the rearview mirror how many years before we're starting to see these vehicles why is it more difficult than some optimists thought >> initially there was a lot of optimism around this clearly you have to, whenever you're introducing new technology, you can get 90, 95% of mastery of what you need. it's the last 5% that's really hard in the case of autonomous vehicles, your designing for rules of the road but then you also have to design for unwritten rules of the road. so i think that is pushing out some of the time lines in the case of tesla, i think what some are thinking, listen, they have been on the road they collect a lot of data from their cars they do over there updates if and when ads come -- avs co pass, which they will, will they have an advantage for network users and will they use that for a car service and things of that nature. >> rhyme thinking about did he planned for electric vehicles. we've spent a lot of time today and previous days talking about the focus on esg and world economic forum is more focused on that. we talk about millennials and again xers caring a lot more about what they are buying and what the company stands for. does that at all translate into electric vehicle demand? >> sure. first off, it helps the brands of oems. interesting, when you look at technology innovations over the years, it's very generational. you go back to atms. atms were invented in the mid-60s. they didn't become ubiquitous where people were comfortable using them all the time until probably the late 80s, early mid-90s type of thing. i think the same thing applies to electrification you have a whole generation of folks used to combustible engines. millennials, they place a lot of importance on esg. they are getting experience with electrofied products i think over time you'll see that accelerate as that generation kind of matures. >> mature as the generation matures. >> have you ever seen a story like carlos ghosn? >> it's an interesting story with an capital i. >> it's yet to be seen where there are financial disclosures. i worked in japan four years and ran mazda. very familiar with the market. in this case you can do press conferences and wave your hands and talk about the japanese justice system it is what it is you know going in it is what it is in the case of renault who knows legally if there will be a trial and shown from that. i think nissan was getting nervous and japan was getting nervous hearing rumors about the smaller less profitable renault wanting to merge and nissan not being a japanese controlled company. that's a big deal. with this whole thing it caused embarrassment for japan and nissan saving face is very important and they will want to go very strong on this >> important market for ford, when you ran it and gm and tesla. what do you see for demand there? >> you're seeing demand off. the actual market contracted after decades of double digit growth in china, it is a developed market what people are missing, well, it's the impact of the trade wars and things of that nature >> no. it's the economy they reduced some tax incentives about a year and half ago. the market contracted. last year they reduced incentives for new energy electrified vehicles that market was down year-over-year and contracted high double digits in the last couple of months i think you're seeing the economy as they pivoted it more towards customer-based economy towards export, you're seeing implications it will come back but probably another year of flat to down sales. >> i wish we had another half hour thanks good to see you. let's go to tessa brewer with a market flash on gaming stocks >> officials have confirmed 209 cases of the coronavirus, ahead of the most important holiday in china, the lunar new year, next week and stocks getting hit hard are airlines and hotels. you have wynn off by 5%, los angeles off by 5%. melco down by 8%, the most focused hong kong-based casino companies. with all those facilities, they're getting hit hard that this will cut down on visits for new year very important holiday for china it >> is. it is. so is the new year >> hi, courtney. >> we have the key numbers to watch and spacex intentionally blowing up one of its rockets. why we're closer to 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and keep an eye on those stocks and companies, a big indicator of industry. back to you, carl, at the new york stock exchange. >> thanks. when we come back, do not ko ecuveare xeti cri lam. dow is down 94 but we're also a company that controls hiv, fights cancer, repairs shattered bones, relieves depression, restores heart rhythms, helps you back from strokes, and keeps you healthy your whole life. from the day you're born we never stop taking care of you. - [narrator] at southern new hampshire university we're committed to making college more accessible by making it more affordable. that's why we're keeping our tuition the same for all online and campus programs through the year 2021. - [woman] i knew snhu was the place for me when i saw how affordable it was. i ran to my husband with my computer and i said, "look we can do this!" - [narrator] take advantage of some of the lowest online tuition rates in the nation. find your degree at snhu.edu. good morning it's 5:00 p.m. at the world 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