Transcripts For CNBC Worldwide Exchange 20240711

And it is beginning to look a lot like a socially distant christmas as the rock center tree lights up and as we all mask up and get in line. It is thursday, december 3, this is Worldwide Exchange. Good morning, good afternoon or good evening and welcome from wherever in the world that you may be watching. Im Brian Sullivan thanks for joining us. Here is how your money and Global Markets are setting up their day. Futures not giving us a lot of clues. Were pretty much mixed. We had more gains for the s p 500 yesterday. Yes, another record. Your 28th of the year if you are counting at home the nasdaq 100 also hitting a new record today though, we also focus squarely on oil. Opec and its allies meeting today to try to hammer out a deal to extend production cuts through march. They could not get a deal done on monday. Today rush 1sia and other natio join the talks if no deal is made or they reduce the cut instead of extending the entire thing, oil prices and stocks could take a big hit, that meeting kicking off at 8 00 a. M. Our time. Well have more later on in the show and all day here on cnbc. Speaking of us a tree heaus the opec, we saw hang seng rise, shanghai was down, europe is down across the board, but the losses arent that big slight losses in germany, theu and france overall of course, it has been a very strong few months for equities the best november in decades if not 100 years for the s p 500. And the momentum has carried over into this month and Credit Suisse says it is not done yet the firm raising its target price on thes p 500 to 4050 indicating they think that it could rise another 12 in 2021 joining us now is patrick palfrey, senior equity strategist patrick, what are the primary motivations behind that fairly bullish call the real driver behind that bullish call is the fact that were returning to a more normal world. And the goal in trying to figure out where well end 2021 is trying to figure out what the world will look like in 2022 and as we look ahead over the next 12 to 18 months, we see something where covid is hopefully beginning to fade as vaccines get rolled out and we are returning to a more normal environment. The Economic Activity is continuing to move forward, although we are beyond the bounce at that point, we are still continuing to have good economic momentum. And those two ideas should carry equities higher as we once again return to that more normal world that we used to live in. And we will get there, it will be a tough couple months. But weve been talking a lot when the idea of the roaring 21st a2 2 and 22 and i think 2022 could be one of the great consumer led economies in hisser to as we bust out and pent up frustration. But does that necessarily mean stocks will follow because isnt the run were seeing right now pricing so much of that already in well, it is a good question and i think the run that were seeing now is pricing so much of that in for cyclical sectors so right now what were seeing is when we have days where we have positive vaccine news or for example janet yellen nominated for head of treasury secretary, that cyclical rotation is incredibly pronounced leadership is energy in financials, and those are the two groups along with industrials and others that benefit from this positive backdrop but many of those sectors, energy, financials, industrials, materials, are beginning to assume this normalcy into their estimates. And our expectation is actually to see leadership from technology throughout much of the year because in reality, that is where the opportunity is for those companies to continue to grow their businesses the cyclical rotation is already being baked in we would still continue to have people look at Technology Even though they look expensive now, their businesses are just so robust so that is where we think leadership is going to be. If you look at consumer spending, good spending is very high right now as many people remain at home i think that well see a big shift to services spending, you think about restaurants and other forms of entertainment hopefully over the next 12 to 18 months that tends to be less positive for the market because many of those are Small Businesses think of your restaurant on the corner so well see a huge move in consumer spending. Whether or not that is directly impactful to the market i think needs to be seen because services tend to be less equity sensitive. Who cares what the suddenly vans do, but sullivans have already booked a number of trips for next year. And there are other factors at work i understand that covid and the vaccines get all the attention as they should, yesterday really was lifechanging news in many ways but weve got Interest Rates, weve got a potential stimulus package, we have broader fiscal stimulus, maybe an infrastructure bill. How do the financials look to Credit Suisse . Because they have been laggards, they have been a bust and frustrated many investors now for years. Yeah, and i think financials is the one area in that pro cyclical group, financials along with energy, materials, industrial, financials is the one area where you have that opportunity. The Economic Activity has been so powerful, so industrials and materials has really rerated, has really come up higher because activity has been so strong Interest Rates havent risen nearly as much as they should have and we think that they will continue to move higher over the next 12 months and the backdrop will improve. And so that will drive profitability for the Financial Sector and banks specifically. So financials is really your opportunity within that pro cyclical group to continue to find areas where it is going to work and that is where we would encourage investors to look is within financials as opposed to the industrials and materials complexes, which have already really rerated on the back of the optimism around some of the stimulus packages which you just mentioned. Are any sectors of the market that you dislike ones that maybe have made a little bit of money . Like you made the money, sell the stocks, move to somewhere else like the financials defensive sectors and they are typically your utilities, your staples, your reits, those are areas where you have you often own those stocks because you like the dividends yield if Interest Rates continue to move higher, you just have a better relative opportunity within many other sectors in the market and were actually underweight many of those traditionally defensive sectors. So that is where we encourage investors to maybe sell and move into areas like financials or perhaps technology for those people who have a longer time horizon. Overall though, a bullish view of the market s p 4050 by the end of next year, a 12 gain patrick, thank you very much well see you soon when we come back here on Worldwide Exchange, is a stimulus package getting closer . And there may be bipartisan support growing on one plus i have my reservations about taking it yet given the shorts time frame that has been undertaken in terms of testing britain celebrating the vaccine new, but cautiously. But rightfully Julianna Tatelbaum taking to the streets with that news and is google spying on its rks . Woer the feds seem to think so. [ whispering ] whats this . Oh, are we kicking karly out . We live with at t. It was a lapse in judgment. At t, we called this house meeting because you advertise gigspeed internet, but we cant sign up for that here. Yeah, but im just like warming up to those speeds. Youve lived here two years. The personal attacks arent helping, karly. Dont you have like a hot pilates class to get to or something . [ muffled scream ] stop living with at t. Xfinity can deliver gig to the most homes. Welcome back here is a look at some of the other big stories on this thursday vaccines are on the way and they could not get here fast enough because more than 100,000 people in america are currently hospitalized with covid. We reported more than 2700 deaths as a nation yesterday, setting a grim new record. Many countries in europe are seeing similar spikes in cases and hospitalizations on capitol hill, nancy pelosi and Chuck Schumer are endorsing the 908 billion stimulus plan. The two lawmakers are urging Senate Majority leader Mitch Mcconnell to use the bipartisan package as the base for relief talks, but mcconnell quickly shot down the proposal after its release on tuesday standing by his 500 billion plan. Staying with congress, the house has approved a bill that would ban shares of Chinese Companies from u. S. Stock exchanges if they continue to deny regulators access to their audits under the measure, Chinese Companies would have three years to comply with the inspections before a trading prohibition would take effect. The bill now heads to President Trump who is expected to sign off on it. Still on deck here, the potential economic wind fall for the uks progress on the vaccine. Well speak with one Business Owner will what it will mean for her business bottom line. Todays big number 1. 57 trillion that is the total amount of outstanding federal student loans, more than twice its level tial a decade ago according to naon student loan data system ca Academy Sports outdoors started as a tireshop in San Antonio Texas in 1938. Our vision is to be the best sports and outdoornretailer in the country with a mission to provide fun for all through strong assortments, value, experience over the years, weve given customers not just great products, but outstanding experiences. We cant wait to have customers natiwide have fun out there. Welcome back. It is the news that might have just changed the world the uk approving a vaccine yesterday, millions may soon be able to take it and hopefully get their lives back to a semblance of normalcy. Still, it is a big reason to celebrate, albeit a little cause hisly. Julianna tatelbaum has hit the streets of london to find out what people are thinking im not kidding, i got a little emotional inside because i thought we can see the finish line, a ways to go, some people are skept skrepts cal scepticae it what are people saying i think the message from the British Public is that we are optimistic, were hopeful, and we feel relieved that is what i heard when speaking to people last night in a bustling part of Central London we heard from Boris Johnson last night and he praised the scientists, but he urged the public to continue to be cautious it will be a long few months before the bulk of the population is vaccinateded, before even the bulk of the most vulnerable are vaccinated. Take a listen to what members of the public had to say when i asked them how they were feeling. Im just very pleased for everybody. And just doing these christmas tours around and other cab drivers have been doing the same thing just to make some money. Seeing the children obviously from a distance, but nice to see peop people you see a lot of people around, everyone wearing masks, so well done we also have our masks here. But you can feel the joy people are very happy because weve been all very limited. So people clearly happy to have a vision where they can picture a return to normality to some degree. And it is worth mentioning that the big news yesterday came gist as the country emerged from our second full lockdown so our world looks a little bit different today with the retail shops reopen fogts first timer e in several weeks, but still facing heavy restrictions in much of the country. And what does this then mean for Business Owners and restrictions that have impacted their shops . You said that there was a reduction of the lockdowns yesterday, but youre still not out of the woods thats right. So the full National Second lockdown lifted yes, but now we have entered this three tier system where areas of the country have been bucketed into three different groups and the bulk of the company is in the two groups with the most severe restrictions here in london, were in tier two, so right in the middle. Which means that nonessential shops have reopened. We also have hairdressers and gyms reopening but still restrictions on meeting with other house holds for example. You can only meet with people up to six people and it has to take place outdoors so still not allowed to mix with other households indoors it is still a very different world to what were used to. And as we heard from the Prime Minister last night, it is going to be like this for quite some time the deputy chief medical officer last night speaking along side the Prime Minister urging that uptick is of critical importance this vaccine is only as useful as people are willing to take it, so urging the public to take the vaccine when given the opportunity. But it is raining so some things do remain fairly consistent Julianna Tatelbaum, thank you very much. T have the umbrella ready, chap. Lets talk to a Business Owner, Alexandra Miller is founder of eat, live and nourish. They have beautiful pink wall, delicious sweets and believe it or not, i took my wife and kids there is a few years ago to one of your locations. So it is a pleasure to have you on gorgeous shops by the way. Were showing some video right now. You are a Business Owner, eight locations. One outside london you have been struggling like so many what does this vaccine news mean to you i think that the vaccine will definitely build confidence for the public back up occurring the first lockdown in the uk, people were much more fearful of the virus as it was a complete case of the unknown now fast forward to the second lockdown and things have been slightly different while of course people are still careful, london in particular has been slightly busiest in terms of foot fall and increase in sales which is great. So we were quieter than usual, but we had a positive about the line but i think the vaccine will be helpful in instilling some confidence back into people to be able to go out and just enjoy life again and your lockdowns have not been nearly as string gentd entm of ours. Here in the northeast, businesses were mandated shuts down by the government for months how have you stayed afloat over these difficult 6 to 9 month period, what are some tips that you can offer other businesses here . Because we probably have a few months still to go obviously this has been an incredibly challenging year for all industries, particularly f and b. And the lock down also has brought us great opportunities that we were able to leverage on as a business. Even during such an uncertain period, we were fortunate to be going through an aggressive expansion. So like any other business, our ongoing costs had to be controlled we put measures in place to be sure we coukocould operate safey we were able to streamline our menus and the labor line and we were able to negotiate rent with landlords. But i think what has been paramount and really key for us has been our digital platforms we have over 500,000 social media followers and a 5 million reach. So as a brand, it was really important for us that we use our digital platforms to operate and push ourselves online. We have a merchandise line throughout the lockdown which replaced a large sum of our total Sales Revenue precovid. And to allowed us to operate while the cafes were closed. Were actually showing some by the way videos of cakes, im so hungry right now looking at this stuff it looks so delicious. Please ship some in your pink packaging this way when you look in your crystal ball, is there a date which because the vaccine news, you are able to say i think, you know, on whatever it is, march or june or august, that we will be fully, quote, back to normal . Do you have any kind of visibility on that at the moment, no i think everyone is really skeptical of what is happening and where the vaccine will take us but were still quite confident. I think that this has been such a challenging time for all of us, that we can no longer pl predict what will happen in the next hour let alone the next month or two i did say to a friend of mines other day that someone did ask me, you know, five years ago where did you think your life would be in five years and im pretty sure that ive got this one wrong. So i just choose not to look into a chris al ball and just have hope and faith that we all come through the trying an ted testing time and you are not the only one. I think most people did not necessarily see this coming. I mean, so what are your plans then the next few years . There are businesses as im sure you know some business own, especially a very competitive world of your, of coffee and sandwiches and snacks, that are not going to survive that will not make it through. Empty store fronts is there a part of you that thinks youll be able to grow and expand out of this weve been really lucky throughout the lockdown period, we made a decision to completely restrategize our expansion model. So now we will be continuously opening sites in the uk with a Franchise Partnership model for businesses overseas. Luckily weve been extremely successful in negotiating and identifying National Partners so open up over a scheduled Development Period of around four years so hopefully for us 2021 will be a big year for the brand and were just trying to keep pushing forward and think, you know, limitlessly here about what we could do within the business so fingers crossed well, listen, the one thing i do know, and i dont know much, is that 2021 will happen we will get there. I dont know if it is too early to say merry christmas, happy holid holidays, but ill say it anyway look forward to getting back to the beautiful pink and see you guys in london best to you and your team. Thank you very much. Thank you didnt that such just look delicious, everybody even at 5 30 in the morning. Dont you now just want to take a giant cake and gorge on it maybe that is just me. Still on deck, is facebook about to be sued by some states for antitrust . There is talk it could be. And that story is ahead. Bitcoin up 236, futures mixed. Tech stocks, higher. Were back after this. Its down to the wire, the teams been working around the clock. Weve had to rethink our whole approach. Were going to give togetherness. Logistically, its been a nightmare. Im not sure its going to work. Itll work. I didnt know you were listening. Will today bring more new records for stocks tech futures are on the rise once again america getting ready for its own vaccine rollout and one big issue is security. Could organized crime try to steal the vaccine . There is very real concern they might. Plus, it is beginning to look a lot like christmas in new york, kind of. Americas most famous tree was lits lit on nbc last night, but there are rules. Because 2020 it is december 3, and this is Worldwide Exchange right here on cnbc. Rock n around t rockin around the Christmas Tree at the Christmas Party hop welcome or welcome back, everybody. And good thursday morning, im Brian Sullivan here is how your money and investments look as were halfway through the 5 00 a. M. Hour stock futures are mixed. Down a skosh, a whisker . Nasdaq futures are higher. No clear indication of which way the markets want to go today but we know that there were more new records yesterday. And it was the s p 500s 28th record high of 2020. The nasdaq 100 also closing at a fresh record high on wednesday making headlines outside of the markets right now, the u. S. Labor board is accusing google of spying on its own workers and firing multiple people in retaliation for attempting to unionize the company has until december 16th to respond and then the nlrb plans to hold a hearing on the case in spring mean time a group of u. S. States reportedly planning to file a lawsuit against google next week. New york would lead the group which accuses the social media fwooi giant of antitrust violations. Reuters say more than 40 states plan on to sign on to the lawsuit. And three former president s are volunteering to get their covid vaccines done on camera of course once approved by american regulators barack obama, george w. Bush and bill clinton all say they want to help promote the vaccines safety surely would get them a nice place in line. Speaking of the covid19 vaccine, the uk now just five days away from its first expected general public inoculations with joint fiz erz biontech vaccine here back home, Americans Still holding their breath when it comes to vaccine authorization two key dates to watch december 10 and december 17. That is when the fda meets to consider the pfizer and moderna vaccines with possible approval coming within days of those discussions. And then once approved, distribution beginning shortly thereafter but one growing area of concern and one flagged by interpol yesterday, the safe and secure transport and delivery of the finite number of vaccines currently available around the world. According to one report, last year saw more than 5,000 pharmaceutical counterfeiting, illegal diversion and theft incidents. Nearly 1,000 more than the year before one company on the front lines of this fight using technology, is tracelick joining us is their cofounder good morning and welcome people had poopooed the idea that this could be a very real think, but think about it, a truckload or plane load of vaccine could be worth tens or hundreds of millions of dollars. How are you helping to protect it good morning. So weve been involved in the securing of supply chain specifically the pharmaceutical splooin supp supply chain for over a decade now. What weve done is built the largest track and Trace Network in the world for pharmaceutical drugs. It has over 280,000 entities on it from over 50 different countries. Currently today there is over 20 billion units that have been manufactured and are being tracked through our network. And on a monthly basis, we have a billion new pharmaceutical drugs being added to our network. You have the challenge as well of refrigeration. Some people said what is the risk of this stuff of course tampered with or stolen because the Pfizer Vaccine has to be kept incredibly cold, moderna slightly less so organized crime im sure would fully have the capability to buy its own freezers and cryogenic transportation, would they not i mean this is not a couple of guys with pistols, you know, saying stick em up. I mean, these are complex and well organized global organized crime rings. Youre absolutely correct organized crime views this as a massive opportunity and has so for decades. So they have been counterfeiting pharmaceutical drugs for decades, they have been introducing it into the pharmaceutical supply chain and they have also been diverting it out of the pharmaceutical supply chain. And unfortunately, they have also been counterfeiting pharmaceutical products. So in the days when you are actually taking a vaccine, oftentimes you dont even know if it is real. And organized crime can make the labels and all the packaging look exactly the same as the packaging coming from a legitimate pharmaceutical company. And so when you are talking about refrigeration, they may not even do any of that and you might just be getting water in your vaccine and what are some of the challenges then that you and the tracelink team face when you look at the complexities of all this, what did you come down to, what are some of your biggest concerns still well, i think first and foremost, there have been laws that have been passed in the eu and u. S. Toestablish tracking and tracing of pharmaceutical drugs. Those laws are currently in place. We anticipate that those laws will be used in order to track and trace legitimate pharmaceutical drugs and most important thing is that it has to be pervasively adopted. Because there are vulnerabilities at every link in the supply chain and obviously you are only good as how well you secure your weakest link so our approach has been to really create a network, a complete Digital Network that goes end to end from pharmaceutical companies through distribution into the pharmacy and at the dispensing point to be able to scan and verify the unique i. D. That is placed on them to make sure that it is a legitimate pharmaceutical product. And what is the weakest link right now . Well, it is usually in the middle of the supply chain now, there are weak links all along. Weve seen counterfeiting and diversion occur at the pharmacy level. Weve seen it occur at the transportation level weve also seen it occur at the wholesaler level so from the point obviously pharmaceutical companies produce good legitimate product, but then it is in the distribution and the dispensing that you see all these corruption going on and what are some of the top as the vaccines roll out globally, what are some of the countries that you are most concerned about, where is that weakest link on a national level, if you will well, it is everywhere. When you mentioned that there were 5,000 pharmaceutical crime incident that occurred in 2019, over 40 of them were in north america. However, when you also are looking from a global perspective in emerging markets, there is, you know, effort under way under the world bank to distribute 2 billion units next year and so there is weak nls beinne all country, the rich countries, poorer countries where products that are distributed get diverted out of those countries into richer countries. So unfortunately, there is no safe harbor for anyone we have to be vigilant lentd iny country. And have you been told i guess the news that we all care about. I dont know how much youve been told. Any concept of the time lines here when are we going to ghets it, th get it, that is all we want to know any indication of the very real time line we might have . You know, i watch the news like you and im tracking it like everyone else. So im not privy to anymore information than you are well, that is too bad i sometimes watch the news sometimes i say the news as well and ill volunteer, i just want to throw that out there on global television, i will happily volunteer. Thank you very much for joining us appreciate it. Thank you very much coming up, this mornings other big stocks to watch including some upbeat news from a retailer but as we head to break, some other pieces of big news right now, as set managers dial capital and al Rock Partners are reportedly in stocks to combine and go public. A very complicated deal involving a spac whats new wall street journal said it would value it at about 13 billion. Nestle the latest to say that it will invest to fight climate change, planning to spend 3. 5 billion on the efforts. And no package for you u. P. S. Reportedly told some drivers not to pick up boxes from some big retailers, they are simply overwhelmed with demand, had to put temporary restrictions on a number of large retailers this week. Shippers and stores trying to deal with the flood of online orders so u. P. S. Told those drivers to stop picking up packages from Companies Like gap and nike on monday, but those restrictions will ease soon its been a tough year. And now with q4 wrapping up, the north pole has to be feeling the heat. Its okay santa, lets workflow it. Workflow it. . Just picture it. With the now platform, well have the company you always imagined. Efficient, productive, seamless. Ok, im in whatever your business is facing. Lets workflow it. Servicenow. Should auld acquaintance be forgot and never brought to mind should auld acquaintance be forgot and Auld Lang Syne well take a cup of kindness yet for Auld Lang Syne next customer please. Verizon 5g is next level. E 5g americas been waiting for. Unlimited plans start at just 35, with entertainment the whole family will love. Switch now and save 700 on galaxy s20 plus. Only on verizon. There is Rockefeller Center lit up the only thing not lit up of course is that big Beautiful Tree it will be later on today. You got to sign up to see it, you have to wait in line of course a lot of restrictions because 2020 but still, hopefully get you a little bit in the spirit all right. Time now for your big three money stock stories. Stock number one, snowflake. Shares are down 3 , reporting its first Quarterly Results since going public the Data Warehousing Software Maker showing a lot of 1. 01 cent a share revenue jump a gain from last year, but down year over year growth from the prior quarters stock number two, crowdstrike surging. Topping estimates with its Third Quarter results, adjusted earnings a share of 8 cents, the companys Fourth Quarter outlook also topping estimates that stock up 13 . And finally, stock three, pvh also getting a boost on stronger than expected Third Quarter results. It is the home to brands you know like calvin klein reporting 1. 32 adjusted earnings revenue more than 2 billion beating the street and making positive comments to sxwrim jima money last night. Lets get a check on some of the other top headlines. Phillip mena is in new york with those. Good morning. Attorney general bill barr is feeling the heat from the white house this morning sources tell nbc news that President Trump isnt ruling out firing his attorney general after barr said on tuesday that the Justice Department has seen no widespread evidence of Election Fraud those comments flying in the face of the president s barrage of false claims that the election was rigged. New Court Filings reveal that the president s daughter ivanka was deposed by attorneys claiming that her fathers Inauguration Committee misused donor funds. Washingtons attorney General Office filed a lawsuit that accuses the committee of making more than a Million Dollars in improper payments to the president s hotel in the Nations Capital a lawyer for the Trump Organization says that ivanka trumps only involvement was kepgtsing t connecting the parties and instructing the hotel to charge a fair market rate which the hotel did. And finally this morning, the Rockefeller Center Christmas Tree has officially been lit it was of course missing its usual crowd this year because of the coronavirus pandemic, but it till featured performances from some of musics biggest names. The 75foot norway spruce will be lit from 6 00 a. M. Until midnight every day through early january. So the Christmas Season is fi officially under way and were less than 15 minutes away from it lighting up for this thursday phillip, where is the suggestion box here is what i suggest, because youre anchoring an early show, i want to look at that tree in the commercial breaks. How can we bump it up to 5 00 a. M. From 6 00 a. M. . You and i. Lets try to get this youve got some sway. I was talking actually with cohost on early today, frances rivera, about that 12 00 p. M. To 6 00 a. M. When were here, it is rarely on. So im with you, cosigning on bumping it up by an hour i know they want to save on the electric bill, but plugging that baby in at 5 00 a. M. Makes us happy and everybody watching early todaying and worldwi iae exchange filled with joy. Right there with you. Lets plug that baby in. On deck, lets also make a daily or watch oil prices opportunity bell opec in the very real hot seat in virtual vienna today. Well talk about it. And today cnbc degree involve is breaking downs transformation of the media landscape amid the pandemic and lockdowns. Join us and big media execs, whether Companies Need rethink and rework their entire business model. You can register at cnbc events. Com evolve live stream. For skin that never holds you back dont settle for silver 1 for diabetic dry skin 1 for psoriasis symptom relief and 1 for eczema symptom relief gold bond champion your skin gold bond at cdwwell weve made our happy,office pet friendly. S. [ bleat ] [ cooing ] maybe a little too pet friendly. Well you know cdw can design a Mobility Solution with light powerful devices from lenovo to make your people more productive in or out of the office. Anyone have any questions before we go . Thats great cause i really need to get out of here. Snake people are freaking me out. Hey sheryl, you have a sec . Nuh, uh. For work place productivity you need lenovo, and it orchestration by cdw. People who get it. On the 5g americas been this holwaiting for. Hone 12 this new iphone plus verizon 5g is incredible. announcer unlimited plans start at just 35, and now iphone 12 pro max is on us when you switch. This is 5g from americas most reliable network. Opec plus plroducers set to meet today as they failed monday to agree on an extension of the existing production cuts deal. For more on where we go from here and where the opportunities may be, lets bring in Portfolio Manager of the Commodity Fund at vonta bell what do you expect, do you believe the group will get a deal done to extend the cuts by 1. 9 Million Barrels a day for three more months . Hi, brian good to see you. When we headed into the weekend, it was clear that everyone in the market was expecting that we would expand the production for another quarter. On monday of course some divisions popping up and i think today this morning we saw some leakage to the press that in the coming afternoon sessions they are working to find a compromise and probably increase production by half a Million Barrels starting this january. What happens there is always a thought around opec, dont worry, they will get the deal done, they will posture, there will be some disagreement, but they will get it done. Guess what, march, they did not. It sparked a short but painful price war from which the world is still recovering. Are you confident that they will get this done, and what happens if they dont . Well, if they dont, the market of course already anticipating that they would prolong the production into the First Quarter into 2021. So we have seen a strong rally of oil prices in the last three, four weeks oil up by more than 25 . So it would become really a shocker in they couldnt find an agreement. Saudi arabia has shown strong discipline and that plains why the emirates are a bit on the wrong foot here. They also did adhere to the strong quarter, but the other members like iraq and some smaller opec members didnt comply that much Going Forward i think that they really need to learn from the First Quarter huow the market responds to the activities and we see that oil markets are really set up for a strong global demand, to rebound in the Second Quarter next year, and i think that that could put opec in a much better position to lift the quotas. Because in the next summer, we see the results coming from the vaccine, well probably see a pickup in jet flight activity. So everything is set up for stronger Commodity Markets in 2021 and that would give opec a better understanding on that we have shown this i dont know if it was yesterday or the day before that, because all the days in some ways kind of blend in together here as well as probably there these commodities, copper, coffee, cocoa, steel, lumber, corn, if you name the commodity outside of oil, it is probably at or near record highs. Do you think that is going to continue, is inflation going to run hot in 2021 . Yeah, we are on that same pace all the commodities you mentioned are not as sexy to discuss like the tech stocks as you indicated, all are up plus 25 or 20 year to date, reflecting that we are seeing supply shorts happening for example on the precious metal side and also demand stocks especially from asia where they are hoarding came mommoditiecom. And in europe, the u. S. , we are still facing strong lockdowns, the situation in asia is totally different. Here we see Strong Demand for commodities. The chinese are unloading a program where they want to halt commodities the next five years. But the end consumers are setting up for a strong commodities rally. I think investors are really underappreciating the potential that commodities have in the next five years. Also the dollar weakness is playing a part but so far, the equity rally is gaining most of the attention. But on the background we see commodities will make a strong comeback in the second half of next year. Particularly what do you see opportunities in, just a broad basket of commodities or are there is a couple that you are honed in on . Within our organization, we invest across all commodities. Currently we have a higher overweight in the metals rally esg story is in play, and that means appetite for power grids, meaning more corporate demand. And not just europe, but also in the u. S. , also in china. All in all, this brings us to aer to where we are in a transition to renewables, but it doesnt mean that appetite for today modities will fall apart so it means more demand for copper, nickle, cobalt and all of these commodities havent seen massive investment the last five, ten years due to lets say the lack of attention, the lack of price movements. So we are foreseeing that for that reason in the next five years that this supply and demand will structurally imbalance. Michel, it could be 2021 could be the year of the commodity. And making money is sexy, doesnt matter whether you are talking facebook or cobalt youre making money. Thank you very much for joining us and until fortunately, no time for the old rb ichli todayt tomorrow well have an exclusive insider stok bck buyin ingmen i. That does it for us here squawk box is picking up the coverage nex t. [ whispering ] whats this . Oh, are we kicking karly out . We live with at t. It was a lapse in judgment. At t, we called this house meeting because you advertise gigspeed internet, but we cant sign up for that here. Yeah, but im just like warming up to those speeds. Youve lived here two years. The personal attacks arent helping, karly. Dont you have like a hot pilates class to get to or something . [ muffled scream ] stop living with at t. Xfinity can deliver gig to the most homes. Good morning the u. S. Hitting more ggrim mile for new cases in coronavirus cases. And democratic leefrd leads cutting the price tag for their stimulus proposal. Andtesla shares are surgin after Goldman Sachs said electric car adoptions, thats nice, is happening faster than expected it is thursday, december 3, 2020 squawk box begins right now. Good morning, everybody. Welcome to squawk box. Im becky quick along with joe kernen and andrew ross sorkin. After the s p got another record yesterday, you will see that this morning there is a little bit of a give back, s p down by about 2 points, dow by about 40. And the nasdaq i