Transcripts For CNBC Squawk Box 20240714 : comparemela.com

Transcripts For CNBC Squawk Box 20240714

The nasdaq up by 19. Lets look at what happened overnight in asia. The nikkei was up by 1. 2 . Hang seng was up sharply it was up by 1. 4 . The shanghai was up by 0. 7 . In europe, the early trading thats taking place there, you will see a mixed picture the cac and the ftse both down by a third of a percentage point. Dax is flat. Stocks are higher in italy and weaker in spain. Then in the treasury market, if you want to check things out, the tenyear actually staying at 2. 045 President Trump arriving in osaka, japan moments ago just as the wall street journal came out with a report suggesting that progress on a trade deal Kayla Tausche is there on the ground she joins us with the latest this morning andrew, its President Trumps third g20 summit as president. His third visit to japan as president. And perhaps the highest stakes yet as he holds several bilateral meetings, not the least of which with president xi jinping where we learned that the wall street journal is reporting according to chinese officials that president xi plans to present terms to possibly settle the trade dispute going on between the two countries for more than a year interesting those headlines hit as President Trump is arriving at osaka, stepping off air force one where hes heading to a dinner with australias Prime Minister where you can be sure china will come up australia is reliant on business with china but will likely offer a word of caution to President Trump as it has tried to become less reliant on china havent yein recent years that meeting will take place on saturday it will take about 90 minutes. Thats how much time is allotted in the schedule for what President Trump has called an extended meeting between the two leaders. Heres what else is onthe schedule for President Trump at this g20 osaka summit. Four working sessions with leaders for all 20 countries hes going to be having eight bilaterals not only with president xi, but with president erdogan of turkey, Prime Minister abe, chancellor merkel from germany and president putin from russia just to name a few then theres the question about the joint communique the white house says President Trump is likely to sign that consensus document though it left some room hope for hopen f change his mind. Kayla tausche, well check back in with her throughout the morning. Interesting on this journal report just out saying heres some of the terms xi will be looking for. They want the punitive tariffs dropped, which is no surprise. We knew that was coming. They also want huawei inserted into this. They want the ban lifted on huawei that brings up the question we asked question a lot of times, if this is a security issue or not, how do you solve that issue . Its been firmly wrapped up in the trade talks. President trump had referred to this in the past and said it would be on the table potentially. President xi now putting it front and center, which will lead to difficulties when we heard from so many government officials. If you end up reversing course, youll have the entire sort of security complex saying what gives here. I should say deeper in the context of this wall street journal report is that president xi is not expected to take a confrontational tone. Some of these issues being onerous, particularly the huawei ban being lifted the dow futures have dropped down to about 31 points below fair value after being positive earlier this morning i noted just before this came out futures were up by 45 points or something but hes not expected to take a confrontational tone the journal article says china will sketch out areas where they could help the United States, too, including with both north korea and iran thats important to consider the Security Issues that go with that we will see what happens. We are also following a developing story this morning. We want to tell you about boeing during simulator tests last week the company and the faa discovered a new Software Glitch on the 737 max plane that could keep it grounded for longer. Reports say it involves a Software Glitch related to a procedure that pilots can use in the event of an emergency. Nbc news says boeing traced the issue to a microchip and believes it can fix the problem with a software upgrade. But theres a chance that boeing would have to replace the chip in all 500 max planes that have been built or delivered. That could further delay the aircrafts return to service the u. S. Airlines including american, united and southwest pulled that 737 max from their schedules through labor day. Lets show you whats going on with boeing shares they are down a little over 1 on that news but perhaps the larger issue is theres some contention between boeing and the faa all over again over this issue. Originally boeing effectively telling the faa that the opportunity for Something Like this or catastrophic and fatal to happen was so minimal that it good luck with that argument. The faa saying no and that creates a trust issue if boeing it pushing back at any point on any of these issues and is not the first one to say well fix this before anything goes back into service, that i think creates not just problems with the faa but also with the public i would say good for the fa asha for pushing on this, if they had not all the other regulators around the globe who normally follow the fshaas lead would n be doing so. Where was sully not our sully captain sullenberger. Right he was before congress he said unless youve been in that position where you a catastrophic situation . You have the controls with all these people riding behind you, you have no idea what the feeling of a when something appears to be going badly, you cant describe the terror and the panic. And you should not be in a position where thats likely at all where the new engine, wherever you put the engine puts you in a position where thats more likely. Two unusual catastrophic events happening on this model and evidence of it happening more than once you physically have trouble pulling up the Software Glitch or whatever it may be, i think that had similar situations where it was bringing the nose down i cant imagine lets talk about the wild ride in bitcoin in the last 24 hours for the last ten days really it soared well above 13,000 yesterday, then news hit that the website of the Popular Exchange coinbase was down briefly. That sent bitcoin tumbling all the way back down below 12,000 it moved 1700 in 15 minutes its been in choppy trade every since a coinbase spokesperson told cnbc that the site was down for a short time due to high volume down below 12,000. Well talk much more about bitcoin at 8 45 with crypto backer Mike Novogratz. Amazon is announcing a partnership with riteaid. Its called counter it will allow people to pick up amazon packages at stores the program is launching in 100 stores with expansion to 1,500 stores by the end of the year. Amazon said there will be no retail data sharing. Shares of riteaid plunging after the Company Posted a quarterly loss of 14 cents a share. That was 6 cents worse than the street was expecting we should point out that riteaids stock is down more than 80 for the last year its market cap has fallen below 4 400 million check it out this morning, shares down more than 11 . This deal with amazon sounds similar to the kohls situation. You can pick up your packages, and with kohls you can return them there for kohls, this actually helped customer sales were up about 8 in the stores where they started allowing that. Before 6 10, we have some early outs lately. This is long for this week. This week its been usually 6 06. Coming up, much more on the breaking trade news that crossed the wires. President xi will reportedly present President Trump with terms to end the trade war the potential Market Impact next. And later, highlights from the democratic debate. Well show you what candidates said about business, the economy and more a lot of people today just theres another one tonight, right . Theres other candidates, right . As we head to break a look at the biggest premarket winners and losers in the dow. Johnson johnson is a baby company. But were also a cancer fighting, hiv controlling, joint replacing, and depression relieving company. From the day youre born we never stop taking care of you. Recapping some news that just broke dow jones reporting that president xi is going to present President Trump with terms for a deal and among those conditions lifting the u. S. Ban on huawei china also wants the u. S. To remove punitive tariffs and the terms will reportedly be discussed on saturday. I was going to try to start this in spanish i know good day. You saw that part, right yeah. Did you see the look on some of the other people on the stage . Cory bookerment. Did you see cory bookers face and Elizabeth Warrens face i did i did. Did you it was kind of interesting. They didnt know what was happening either did it help betos cause it wasnt aimed at me i wouldnt understand it do you think it was just aimed at the spanish thats what theyre trying to do what do you think he was trying to do it for a specific reason to show he can speak spanish and appeal he was trying to speak to people who speak spanish as well they had subtitles on the tape i watched this morning re really . Subtitles in english . Yes which helped me i was im not going to be able to do this. Joining us now to talk about the Market Impact of a potential trade deal i cant do that and we have mike santoli here. What is on your radar today . We hit the top end of things, now i dont know kind of sliding sideways here holding near the highs the interesting thing yesterday maybe its a preview is just very indeck lev index level boring day all the cyclical stocks were up. Semiconductors, transports, and then the safer things like utilities and staples got hit. It seems the market is Spring Loaded that a bet on something getting settled or moving forward with trade talks the sectors you mentioned are tied in with that. Its gotten very stretched in the opposite direction so the defensive quality stocks have done well were coming to the end of the month and the quarter. Its a natural time to rebalance. You had micron earnings, fedex earnings were excuses to do that i do think even banks did okay its one day but that was the reaction. I think the market is hungry for a sign that there will be an excuse out of the trade talks to say fine, we can overlook the fact that maybe it will be a sloppy Second Quarter earnings season you, eric, listening to mike, my first question to him, youre there, arent you, with the high end of something you think fully valued having trouble making advances nearterm . At the index level. The key message is whats going on beneath the service the market internals are masking huge divergence. From an index level standpoint were fading this rally into the g20. We dont think there will be earth shaking news out of this meeting. In fact we think indexes keep going sideways with the volatility we see a lot of opportunity underneath that to take advantage of the shift in the market internals you see the difference between large cap and small cap. S p is up. Russell 2000 is down any time you get that divergence, theres an opportunity to take advantage of that divergence and play more attractively valued stocks that can still benefit from the extension of the cycle we had other guests this week say avoid International Stocks do you think emerging markets are not to be avoided, but only because theyre cheap. Thats not a good enough reason on its own. However we expect the dollar to soften from here its been ten years since we experienced a fed cut. We forgot how impactful that is on certain areas of the market the dollar is off, but pro cyclical currencies are up bitcoin is up. We expect further softening of the dollar that will create interesting opportunities in local currency bonds and em stocks. The internationals outperformed the u. S. For the last couple of weeks its been a very short per iod f time yesterday the china etfs were more than the u. S. Index can we talk about the instant reaction to this wall street journal report. The dow is looking down 90 points, it was up, not a major move, but the knee jerk reaction was hes coming with settlement terms, maybe we get something sooner than later, but you read the terms and its a high bar to jump over. They may be 90 done on a deal but the last 10 is big you think what are the u. S. Administrations incentives, they want to stimulate rate cuts they dont have a lot of incentive to get a deal done before july 31st, the next fed meeting. I think this continues on for a while. The best possible outcome is to delay further tariffs and an agreement to keep talking and hold off on tariffs. A lot of that is priced in i wonder if the call off the dogs on huawei is the thats the stickler if we said its a National Security issue, how do you just turn around and roll over . Now that we didnt do that with zte. Thats the issue. We did it with zte given the stance today, its difficult to see now that you will go there first. Theres language. Its a nuance. Its not all or nothing in the past weve said look, this is a real problem do you think huawei is going out of business and never doing anything again thats probably not going to be the end result no, i think you declare something a National Security problem i could see how it could be a National Security issue. You couldnt before but now you think you said theres no evidence. There is no evidence as of this moment you shouldnt worry about it. Eric joe no dont end the conversation there. You either have to decide you know the negotiation tell me what the nuance is. Its always been a negotiating tool always been a negotiating tool thats terrible in a perfect world. With a country that people describe as dangerous. The secretary of state sits here next to us, looks you in the eye and says its a Dangerous Company and you say its fine to be a nengsi innegotiating tactic im saying theres a way to make it less of a security risk. Tell me how that works. I dont know the exact details of how you do that we have not found one guest on this show i asked that question for the last three weeks, any guest, thread the needle, show me how you can you know enough about the details. I do. You dont think theres any way at this point we can i think you either declare it a National Security problem or not. Then there will never be a deal i dont understand how you can get there. There never will be one can we look at boeing shares . Theyre down 6 . Thats whats adding the pressure to the dow. I saw the dow up 80 at one point. Were looking at boeing shares down trying to look for anything new. There is something hitting the wires talking about how the iata, the airlines, remember forcing their calls for safety regulators to cooperate on returning boeing the International Airport Transportation Association is calling on max Pilot Training requirements to be added on to this that would add longer to the timeframe before you could see the 737 max back in the air. This is something to watch closely today too. 355 at this point thats just do the math we would be up we were up 80. Now down about 80. You could say its trade talks, but if you look specifically its boeing one easy way to put it in context, s p futures are flat. Thats where we are. Right which is about right. Eric and mike, thank you both thank you. More on squawk ahead new details on two activist campaigns, one a major oil company. The other a giant pharmaceutical and Chemical Company both stocks on the move. We have details after the break. Is where people first gathered to form the stock exchangeee, which brought people together to invest in all the things that move us forward. Every day, invesco combines ideas with technology, data with inspiration, investors with solutions. Because the possibilities of life and investing are greater when we come together. I felt completely helpless. Trashed online. My entire career and business were in jeopardy. I called reputation defender. They were able to restore my good name. If you are under attack, i recommend calling reputation defender. Vo theres more negativity online than ever. Reputation defender ensures that when people check you out, theyll find more of the truth, not trash. If you have search results that are wrong or unfair, visit reputationdefender. Com or call 18778668555. Welcome back boeing shares dropping sharply futures down by 78 points. Booing is down so much it would drag the dow down 175 points itself boeing shares down 6. 83 phil lebeau joins us from chicago. He has some of the reasons behind this big drop there are a couple right first of all, you talked about the new 737 max software issue, which came out late in the day yesterday. You have to really look at why that came out. Why it was leaked out. The fact it was leaked out indicates theres some separation between boeing and the faa as they look towards recertifying this plane, making sure everything is working as it should be on the 737 max thats one issue that started this why this is accelerated, the iata statement regarding when this plane is finally certified by the faa, which everybody expects will eventually happen, then the question becomes what are the requirements for training pilots . Internationally theres a feeling not only among airlines but also among regulators that perhaps there should be more stringent testing and training with pilots that may include simulator time the reason thats important is because if you add simulator time as a requirement for testing and training for pilots of the 737 max, youre talking about tens of millions of dollars. Much costlier for airlines much costlier for boeing and it drags out the potentia

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