The worlds biggest Investment Banks, what Goldman Sachs has in stores for some of its top partners it is thursday, august 5th and Worldwide Exchange begins right now. Lets go lets go all right, good morning, good afternoon, good evening, welcome. Im Brian Sullivan thank you for joining us on Worldwide Exchange. Here is the stock of the day the ticker may say work. But something isnt working at least for investors right now. Online messaging firm slack shares, theyre down 12 right now in the after hours market. First Quarterly Report as a Public Company disappoints well dig more into these numbers in a moment. First, to the overall markets, where stock futures are going the opposite way, rising, dow futures up a nice 238 now. This is a report says the u. S. And china are set to resume face to face high level trade negotiations next month with preliminary talks happening as soon as next week. As stock futures go up, bonds go down, a little bit benchmark ten year note yield 1. 51 . We are deinverted, i guess is the term 147, 151 what exactly can we possibly expect from these reported trade talks . Maybe the bigger question, will they happen . Welcome back in tracie potts who joins us live from washington with more. Good morning, tracie reporter the chinese are giving us a lot more specific details on when they might happen than were getting from the the u. S. Now on thursday morning, a phone call confirming that the talks are back on and that is something that wall street seemed to respond to given what we saw earlier in the week after those trade tariffs were imposed. So, this, according to the chinese, is what is happening. Later this month, in september, the two sides are going to get together, essentially to lay the ground work for when these talks will happen and what these talks will look like the u. S. Has not yet confirmed, but the chinese say that the actual trade talks will resume sometime in early october. And they will include the u. S. Trade representative and treasury secretary steve mnuchin. The tariff as you know rocked the markets on tuesday, which was the first trading day after they kicked in on sunday but yesterday the dow was up on news that it looks like the u. S. And china are ready to sit down and talk again to try to end this trade war. Stock futures up as well. Tracie potts, nbc, thank you very much. Trade is not the only big global story happening right now. The political and brexit drama continues in the uk. Prime minister Boris Johnson has been dealt another blow in his fight to deliver a brexit of october 31st after members of his own party turned against him. Willem marks joins us with more on this story. Willem reporter important to note this point that some of the former members of the conservative party are no longer members of the party after he stripped them of their Parliamentary Party membership what that meant last night when the Lower Chamber here at the house of commons tried to push through this piece of legislation to block a no deal brexit at the end of october is that the government lost a couple of hours later in response to that, the government tried to call for a fresh general election and they lost again. Because hundreds of opposition lawmakers abstained on that key vote they say that allowing Boris Johnson to pursue an election now is a poison chalice, he will use brexit as a cudgel with voters and they want to make sure the legislation gets the queens assent approval early next week before they even are willing to talk about potential elections. When should we expect this potential new election reporter that is a very difficult question to answer right now, brian what we know Boris Johnson would like to see one in the middle of october. A couple of days after the date hes looking for, the 15th of october, there say meeting of european heads of state, a council in brussels. That would be a moment he thinks where he could potentially rest some fresh concessions from the europeans over this brexit deal. And then, of course, it would be a matter of days until that october 31st deadline. The labor party in particular, the main opposition here in the uk saying they dont like that plan one bit they would like to make sure there is an election after that European Council meeting at which point there would in theory be an extension to that brexit deadline. Everybody can heave a sigh of relief willem marx outside of parliament in the uk where the it is tough to follow, but we appreciate the deal, thank you very much. Also happening right now, Hurricane Dorian wont just go away the storm has strengthened, now back to category 3 status. The Storm Force Winds hammered georgia and parts of the South Carolina coast that is where we find Nbcs Jay Gray who moved north to wilmington, North Carolina, ahead of that storm. Jay . Reporter hey, brian. What kind of staying power this storm has, it has been unbelievable to see this we started in florida, now all the way to North Carolina. And the storm still not exactly clear on where or when it may make that second landfall. Here in wilmington, we have seen some rain, some winds pick up overnight into the Early Morning, calm now. Thats all going to change as we move throughout the day and the storm gets closer. It is targeting this area for that second landfall and that would likely come sometime late tonight and into the Early Morning tomorrow winds are going to be an issue, we could see gusts of 100 to 120 miles an hour. But it is the rain, it is the storm surge that is the primary concern and flooding is going to be an issue along the coast. And it will likely continue to be this way until the storm, maybe sometime saturday, makes that big turn, gets back out into the atlantic. Right now we are bracing for what is going to be another hit from this monster storm. Is the storm still moving at that incredibly slow speed with which we saw over the bahamas . When this thing hits, it is not going to be a fast moving storm. It could pound this region and then move up north for days. Reporter no, youre right. And thats the big concern it is forecast to speed up right now it is moving at about 7 miles an hour. And it could linger once it gets over land. If it does that, the flooding is really going to dramatically increase we have already had a lot of rain over the last month in these areas. And then you had water to that from the storm and there is just nowhere for it to go except into places it is not supposed to be this is a region where you are that is still struggling with the aftermath of Hurricane Florence last year, we saw signs for the Cape Fear River and water overflowing gas stations they cannot get a break. Jay gray in wilmington, North Carolina, thank you very much. Much more on the storm coming up. We speak with South CarolinaPort AuthorityCeo Jim Newsome about how that major port and the entire Business Community of the region is prepping for dorians arrival also ahead, big changes for the upper echelons of Goldman Sachs. David solomon looking to cut down on the number of people earning a partnership and paycheck. Slack sinking, Company Executives learning the hard way what it is like to be a publicly listed stock that misses wall streets estimates but first, maybe called the winslow perspective, one top fund manager says he has a secret sauce to navigating the twists and turns of todays market, a busy hour still ahead when Worldwide Exchange returns. I can. The two words whispered at the start of every race. Every new job. And attempt to parallel park. electrical current buzzing each new draft of every novel. typing clicks the finishing touch on every masterpiece. newborn cries it is humanitys official twoword war cry. Words that move us all forward. The same two words that Capital Group believes have the power to improve lives. And that, for over 85 years, have inspired us to help people achieve their financial goals. Talk to your advisor or consultant for investment risks and information. Doprevagen is the number oneild mempharmacistrecommendeding . Memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. Welcome back good morning it is 5 11 dow futures up more than 200 points right now shares of Goldman Sachs, they have not rallied theyre down 15 over the past year now ceo David Solomon may be looking to trim the top ranks where several partners at the Investment Bank reportedly eyeing the exits rahel solomon has more. As many as a dozen partners at goldman or 15 could reportedly leave by the end of this year. Thats higher than the typical turnover wall street journal says theyre negotiating their exit from the bank report says that Senior Executives including chief Technology Officer alesha wiesel and steven strongen are in talks to step down senior partner Jeff Neeleman quit yesterday, this is less than a year after being named head of the stock Trading Group and marty chavez cohead of the Trading Division is retiring, according to a memo sent to employees on tuesday goldman is in the midst of a top to bottom review, launched by ceo David Solomon, who took over last october as the Company Looks to diversify its revenue streams. The journal says that management has been trying to make goldman more efficient by flattening organizational charts, eliminating old technology, and also shifting some staff to lower cost hubs. New data out today from industry analyst coalition shows that the worlds biggest Investment Banks have had their worst start to a year since 2006 with combined revenue down 11 through june. Shares of goldman are down 10 under David Solomon. Back to you. Thank you very much well see you in a bit. Back to the markets now, futures pointing to a sharply higher open on wall street but as investors learn the hard way in recent months, two good days does not a trend make next guest says he might have a secret sauce, what he calls todays wotiered market joining us now, justin kelly, chief Investment Officer at Winslow Capital and manager of the four star winslow large cap growth fund, up just 24 , only at 24 this year come on. Thank you for having me. Thank you for joining us. Thats a great return by the way. How have you done it what stocks worked this year and have you been able to identify the sauce or some kind of a trend and what has been a really kind of a crazy market. Right, so the market has had a big narrowing this year. There is fewer companies that are able to produce strong Earnings Growth and a slowing economy. The winslow philosophy is that Growth Companies make for the best longterm stocks and two type of Growth Companies in particular that make for great stocks the first is what we call the sustaining Growth Companies. Those are Companies Like visa, mastercard, costco, that have a growth rate today that is similar to what they had a few years ago. And importantly will still be growing at the same rates a few years from now never cheap stocks, but work on the compounding of the growth. Now, the second type of Growth Company that makes for a great stock is what we call the improving growth story that is companies where the growth rate is actually increasing over time and some recent examples of that would be intuit, ferrari is another example. Ferrari yes, you win both on the market underestimating the magnitude of growth and potentially even some valuation expansion. It is amazing given the trade fight, given hong kong, given brexit, all this talk about slowdowns and the u. S. Economy, there are companies that are increasing their earnings power. Exactly theyre doing it mostly through innovation you see that with ferrari coming out a number of new products, ini intuit. Are there Small Companies that are doing well and worth your clients money or is it the big companys you get a lot of megacaps and there is this steam growing that theyre the ones that could navigate and adjust and a Small Company simply cant do it. Right so there are two big trends that are defining the market today and will define the market over the next decade. Firstly that global gdt is grp s growing at a slower rate than it did in the past. More recently it has been growing at 3 and will likely grow slower than that Going Forward. Thats an important trend. Second trend is that every company is transitioning to the Fourth Industrial Revolution or retooling their business from the analog world to the digital world. The megacap companies, the tech companies, seem to be more on the front foot of this trend because they can use their scale and also Large Consumer companies, think about how nike is spreading its investments over a Large Customer base versus say under armour as an example which has to make the same types of investments for the digital world, but they dont have the scale to do so. Were seeing dow futures up 200 some points on reports that china and u. S. Rate trade negotiators may meet at some point. Were seeing the markets move on a report there is a possibility of a meeting maybe right what does that tell you about the health or lack of health of this market . Right, so we have been in a twotiered mark thet this year where some companies can grow through the slower Economic Times and are been favored and coupling with the rate there is a whole other part of the stock market which has not participated because theyre concerned about the earnings risk to the company. Those would be a lot of the manufacturing oriented companies. We can see the global pmi has now dipped below 50. Any easing of the trade war tensions would allow many of those companies to see better Earnings Growth trends Going Forward and it will help. If we get a deal of some kind, it should help. Yeah, it will help the Earnings Growth profile and the equity risk premium can decline for the companies and be good stocks again. Justin kelly, pleasure to have you on. Welcome to Worldwide Exchange, our tight knit but wonderful family here. Thank you. On deck, trade tensions as we just talked about they may be easing a bit your next guest says china is finding that life without america may be just fine and later on, guess who is coming to the white house today . President trumps mystery ceo revealed ive been a caregiver for 20 years. No two patients are the same. Predicting the next step for them can be challenging. Today were using the ibm cloud to run new analytics tools that help us better predict and plan a patients recovery. Ultimately, its helping thousands of patients return home. Return home. You should be mad at airports. Excuse me, where is gate 87 . You should be mad at nonseasoned travelers. And they took my toothpaste away. And you should be mad at people who take unnecessary risks. How dare you, hes my emotional support snake. But youre not mad, because you have e trade, whose tech helps you understand the risk and reward potential on an options trade its a paste. Its not liquid or a gel. And even explore whatif scenarios. Wheres gate 87 . Dont get mad. Get e trade and start trading today. Think you need to pay prestige prices for better skin results . Try Olay Regenerist. The rich, hydrating cream is formulated with vitamin b3 and peptides to plump skin cells, brighten, and visibly smooth wrinkles. In fact, just 1 jar has the hydrating power of 5 jars of the prestige cream. For visible results without prestige prices, try Olay Regenerist with a money back guarantee. And complete your routine with the olay eye collection. Brand power. Helping you buy better. All right, there you go. Welcome back it is 5 20 on the east 4 20 in chicago. Good morning wherever you may be lets get a check on the big stocks on the move today it is all about software and technology on this thursday. First up is slack. Hosting a smaller than expected loss in the second quarter, first reports going public in june revenue topped forecasts, but investors not impressed. Shares item s tumbling slowing sales growth in the second half the year slack shares down 12. 5 now. The slack ceo on squawk box at 8 00 a. M. Eastern. Softwaremaker adjusted results t