Falling back boeing is providing an advance for the dow inlyft customers cancelling orders this year in light of the pandemic. It is up 5 as we speak, 59 minutes left on this session coming up, kyle bass will be with us to talk about the Election Results and how president elect biden will navigate americas complicated relationship with china. Plus an interview you will not want to miss we will hear from carlos ghosn whose scrape from japan to lebanon Drew International attention. We will hear his side of the story,i his thoughts on what will happen to his former colleague and the men who helped him pull off his escape. Lets get straight to thesters we are watching mike santoli tracking the Market Action josh lip ton with the highlights from todays afternoon apple evenly joining us to talk about apple and the broader tech selloff is dan ives mike santoli tell bus the trend. Into value out of growth, into small out of large, and really out of defensive into cyclical thats been the team the s p 500 is basically being held stationery by the opposing currents at the moment it is almost in ball an as it affect the broad benchmark here. Yesterday you had a pop up to a record high, reversal lower to close below the previous high. Struggling at the top end of this range maybe consequence of the fact that it was a little bit of a false breakout strong breadth numbers we have had the past couple days should minimize the damage of downside. Here we are still trading a little bit below the Early September high lets look at the nasdaq 100 versus the small caps. Thats pretty much opposite ends of the pole. This is on a week to date basis. Thats a good spread when you are both talking about groups of u. S. Equities. You see it just about 9 or Something Like that, nine Percentage Points dividing those. This is not of qual value to the overall market in terms of market value apple alone has a greater market value than the russell 2000. Momentum against value is another way of slicing the rkt mo this is over three months here this is a three machine month chart. A typical romcom, going in opposite directions and at the enthey meet almost exactly we will see where it goes from here it is kinds of a see saw thing not everything is moving in one direction. We saw this in september selloffn the gig growth names, the market absorbed it then it gave way a little bit and came out okay. Only you would compare to it a romcom. Thats what i wanted to know, which is can the overall market, and the economy for that matter continue to rally and perform if the biggest most powerful tech stocks that have led us higher for so many years are not participating . For a time, yes, it can it is difficult. The math gets tough but i think you have to decide what you are herring here the s p 500 might not be able to make much progress if you look at the equally weighted version, sure it does fine mid cap stocks they have been in a good place if you want to talk about sectors like banks and other value names they can make progress i think we have a bit of a instability problem if they really end up urgently for sale the big Growth Stocks and there isnt a place for that money to go and you are whipping around the indexes and that raises the volatility level if in fact the rest of the market cant withstand that pressure. I for one look forward to the annual christmastime viewing of love act actually. We need multiple lines here, wilf we do, but there was a happy meeting back in september. Then they went apart again i think it was a great comparison. I am going to go work on the script right now. We will discuss the markets throughout the show with mike. Apple unveiling a new lineup of macs today. Josh lip ton has the latest. The news with the line of mac is they are power by a new pain processor thats designed by apple instead of intel it is a new integrated chip that apple calls the m 1. The m 1 chip is by far the most powerful chip that we have ever created it makes these macs dramatically faster, provides all new capabilities with extraordinary battery life, and enables the mac to run more software than ever this is exactly why we are transitioning the mac to apple silicone. The new macs kplu the new macbook air which apple says is faste than 9 of pc laptops told in the last year. The price, 999. They introduced a new mac minute ear, it is a smaller version, it cost 699. And they unveiled a 13inch macbook pro. Longest party life ever in a mac. Studio casualty mics revenue dropped 30 to million in apples fiscal Fourth Quarter on macs. For more on todays apple eechblts lets bring in dan i s ives dan great to see you as josh mentioned this product is already hot this year are you fearful despite these upgrades, despite the features they are announcing today that a lot of demand for things like lap tops and ipads has already been brought forward it is a great question. There has been some pull forward. I think overall if you look at todays announcement it is more control over their ecosystem it is a shot across the bow at intel and others it is important because it is the biggest productcycle in five or six years. Ic macs could surprise some on the street Going Forward it speaks to what i view right now as a super cycle but really across the board i think it continues to be innovation in at cupertino. Wasnt the super cycle supposed to be the iphone, though, dan . Isnt that what the stock is going to be moving on and what the performance is going to be driven by . No doubt. This is all super driven to see a 150, 175 stock. Over the last week, all of our checks show orders over 2x over its predecessor. And tracking 80 Million Units for launch which would be a jaw dropper you look at the other products, mac, eipad, airpods. Thats why we continue to be uber bullish on apple, especially as they have more and more control over their ecosystem with the m 1 announcement. How worried but the multiples of apple and some of the other tech stocks if next year we are in a world where the tenyear is above 1 and rates are rising. You definitely see valuations a bit stretched. But i believe the fundamental stories i believe it is a golden age for rotation. This rotate out of tech into value is shortlived i still think tech stocks are over 20, 25 over the nextier because of these secular fundamental drivers. I think right now it is going to be a bit of a knife fight between bulls and bears. I think as we go into year end you will see a rally in tech. When you say tech, which ones do you think are buys on the selloff we have been seeing over the last days and broadrily speaking as the value rotation played out on large cap, i specifically look at apple and microsoft. Microsoft continues to be our best way to play the cloud you look at cloud, Cyber Security is going to be a massive theme. Z scale and cyber arc or veronis. Broadly, taking a step back, the broader ev market, tesla is going to continue to outperform. Faang names continue to lead this market higher despite some of the rotation that we have been seeing post election. Dan, great to see you, as always thank. Still to come, heymann Capital Management founder kyle bass who has been an outspoken critic of china of course and supporter of President Trump he will join us to discuss what these markets will do moving forward. Youre watching closing bell on cnbc. At fidelity, youll work with an advisor to help you build a flexible wealth plan. Youll have access to taxsmart investing strategies, and with brokerage accounts online trades are commission free. Personalized advice. Unmatched value. At fidelity, you can have both. Sir, what dues to the americans who are anxious over the fact that President Trump has yet to concede and what that might mean for the country well, i just think its an embarrassment quite frankly. How do you expect to work with republicans if they wont even acknowledge you as president elect . They will. That of course was president elect biden just moments ago. Lets discuss a little bit further what all of this means with kyle bass with heymann Capital Management good afternoon good to have you back with sthus good to be here. Over the weekend since you last joined us, nbc news and others have declared biden as president elect. Do you think President Trump needs to acknowledge that . Have you acknowledged that you know, i have absolutely no expertise in politics were operating under the assumption that President Biden will be our next president and that republicans will hold the senate thats a great investment environment for us to talk about. On the investment environment point does it make sense to you to see this severe rotation we have seen in the last couple of days out of the sort of stayathome tech winners and into the recently underperforming value names . Yeah, the way i look at sit wilfred we get to a vaccine that has about a 90 efficacy rate. It is producing antibodies, more than a normal person produces post recovery from the flu many call it basic economy industrial names are the ones rallying it makes sense to me again, this is temporary i think the tech names got lets say they got ahead of themselves a bit but in the end what matters is there is going to be 3. 5 trillion worth of new deposits in the u. S. Did you to the feds money printing we are going to get to a vaccine. It is going to be widely distributed through the first half of next year. I dont think we can allow rates to move higher we are going to have a very low rate, high Energy Environment where we are under a industrial recovery on top of the tech stocks doing well. I think 2021 is going to be an interesting good year. You are saying allinclusive rally for growth and value. Next year is going to have both look at the globe Central Banks. I dont know how many times you have heard the words tea party in the last four years, i havent heard them very many times. I think what the central bank taught investors is that deficits dont matter, and that we are going to see more and more stimulus and we are going to have to hold rates low n. That environment the wealth gap is going widen, stocks are going to go higher and asset prices will go higher i think thats going to continue. Are you still betting against, kyle, the hong kong dollar or the chinese currency because if the last few days are any indication, chinas currency has been doing quite well on the expectation that biden would be a lot more tame or at least negotiate more when it comes to the trade relationship with china. Yeah, i think first i havent had a position in the chinese currency in a couple of years. In the hong kong currency, look, its the most levered develop ed Banking System in the world at. 5 times their gdp. Er and in the middle of a pandemic depression. And by the way their legal system is now being usurped by china. I think hong kong is a structural anomaly as far as the world is concerned i think hong kong is going to have its problems while the rest of the world does better next year. Whats the risk of that outlo outlook, bullish on all types of stocks i think we have the bank of japan to look towards. You know, the bank of japan owns more than 125 of gdp of its debt it monetized more than 100 of gdp of its debt and they own 80 of every etf listed in japan is owned by their central bank. You know, if the path that we see forward for the globe Central Banks is to print and purchase clearly thats the path of all of the developed nations then the risk is rates moving higher. What the boj taught us is they wont let the rates move higher. Ie, they bought every bond in the market look, i think thats where we are all headed i dont think we can given the amount of debt we have laid on to sovereign Balance Sheet including here in the u. S. I dont think we can allow rates to move higher we are never going to let rates move much higher from here ever again, because we cant. I get, kyle, the bullish view on the divided government, which we have seen in the past, on the fact we could be on the precipice of a economic recovery thanks to a vaccine. But in the near term it doesnt look that certain. First of all the stimulus factor is a giant wild card, whether we will get any, how much, and whether it will come in time to prevent a wave of bankruptcies and Small Business failures and long term unemployment, which is already happening by the millions to me, the bearish case is that there is more permanent damage to be done here as a result this covid19, which is still very much not under control in this country. And its not like the vaccine is coming next week and certainly not for the broader public before next year. Agree with you i think we are going to see look, we all know many restauranteurs and gym owners and smaller businesses are actually going to go bankrupt and go out of business and thats kind the price that our country is going the pay for the disease that emanated out of china. But i think Going Forward what our central bankers understand is they must inject liquidity and our lawmakers understand remember preelection it was somewhere like a trillion, 1. 4 trillion bid by republicans and 2. 3 trillion offered by the democratic somewhere between 1 trillion and 3 trillion its going to happen every one knows it has to happen i know there is uncertainty but things have to happen. The problem is the wealth gap is only going the widen under the scenario i talked about. Societal friction is only going to continue from here even though we are celebrating a biden victory, our country will be more unified, i believe, but i also believe that the wealth gap itself is going to be a problem in the coming years. Are there any markets kyle around the rest of the world that you are attracted to more than u. S. Equities no. Truthfully, i like our rule of law. And i like our spirit of entrepreneurship and look, we have the best educational system in the world. I think we have the best scientists in the world. We have the best i think the u. S. Is the place to invest. If you start thinking about europe, where they dont have a central taxing authority and the euro is still a big experiment you dont want to think about china where there is no real rule of law. I dont know where else you want your core Investment Capital other than in the u. S. All right then. Didnt think you were going to say china. Kyle, thank you. Always good to hear from you. Thank you, press lure. Kyle bass. 40 minutes left of trade look another skrep me, the dow surging and the nasdaq down 1. . Rotation continues the three underperforming sectors in the market, technology, consumer discretion father and Communication Services. After the break former auto executive turned international fumetive carlos ghosn speaking out on the record about everything, from his escape from japan to the future of the Auto Industry the first part of our exclusive interview next. Check out shares of adidas lower after Third Quarter sales fell and the company warned of a dollar deline in the Fourth Quarter. The ceo saying a worseeing of the pandemic in many areas of the world is again requiring our patience and support 60 of their stores in europe are closed because of shutdows. S they have underperformed puma and nike for the quarter well be right back. Needles. Essential for sewing, but maybe not for people with certain inflammatory conditions. Because there are options. Like an unjection™. Xeljanz. The first and only pill of its kind that treats moderate to severe rheumatoid arthritis, psoriatic arthritis, or moderate to Severe Ulcerative Colitis when other medicines have not helped enough. Xeljanz can lower your ability to fight infections. Before and during treatment, your doctor should check for infections, like tb and do blood tests. Tell your doctor if youve had hepatitis b or c, have flulike symptoms, or are prone to infections. 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But i had to ask him if he thought covid19 would have a Lasting Impact on the Auto Industry well, yeah, it will have an impact it is going to accelerate the consolidation of the industry. I think clearly a lot of car make remember going to have a very hard time they already hada hard time last year. They are going to continue to have a hard time because covid even if they find a vaccine immediately is going to take probably one year before things start to come back to normal and a lot of company are going to be struggling they are going to be suffering obviously the weakest one are the one with no vision or very weak vision or distorted vision in my opinion are going to collapse that doesnt mean they will be bankrupt they will probably be acquired by one of the stronger car makers and so consolidation is going to continue it is going to be accelerated. Car is always going to be here obviously we are going to have more electric cars we are going to have more autonomous cars. The direction is very clear, its going to continue into this direction. But mobility will continue to develop in the world no matter no matter the covid is here for one year or three years. You also called 2020 in your book the year