Bottom line at novo nordisk and shares moving in an interesting direction overseas. And looking at the u. S. And what jay powell said could give emerging markets a boost today it is thursday, may 2nd, 2024. You are watching Worldwide Exchange here on cnbc good morning and welcome to Worldwide Exchange. Were coming to you live from cnbc london. Lets get you ready for the trading day ahead. Wall street is waking up with whiplash after the rally that saw the dow surge 500 points higher and ending the day with marginal gains u. S. Stock futures are trying to build on the gains you see they are gleareen acros board. Dow opening at 120 points higher nasdaq off the highs from earlier, but up. 50 all this after jay powell ruled out the next move by the central bank which could be a hike my expectation is that we will, over the course of the year, see inflation move back down thats my forecast i think my confidence is that is lower than it was because of the data we have seen. It is unlikely that the next policy rate move will be a hike. I say it is unlikely you know, our policy focus is really what i just mentioned which is how long to keep policy restrictive. We are watching treasuries in the wake of the decision taking a look at the benchmark at 4. 61 yesterday during the show, it was 4. 68 the twoyear note moving to the downside right now, it is 4. 94 taking a similar move to the benchmark. The long bond is the read on Inflation Expectations right now at 4. 74 the tenyear yield is holding above 4. 6 yield we are seeing futures higher after the jay Powell Press Conference saying a hike is all but off the table, but it could take longer to get to the cut. The fed is continuing to look at inflation reports and inflation easing saying the First Quarter reports showed inflation was stickier than previously thought. Lets look at the big money movers this morning. The good, bad and ugly with the movers this morning. Lets start off with the good. Shares of carvana surging on the profit and better than expected revenue. That is the stock we talk about a lot here the return of growth marks carvanas best growth in history over efficiency gains. Carvana has been restructuring after nearly going bankrupt back in 2022. Shares are up over 35 right now. Now over to the bad. Doordash sinking as the company probe to profitability after the bigger than expected loss with record revenue up 22 year over year they will continue to invest in areas like grocery delivery. An area that Food Delivery Companies have talked about in recent years doordash shares down double digits falling 13 the ugly fastly plunging on fullyear revenue guidance it is pleased with the First Quarter and positive free cash flow, but not satisfied with the revenue outlook. Fastly plans to invest heavily in customer acquiacquisition. Now time for a look at what is going on in europe with silvia a maro here with me. Novo nordisk is reporting its results. Exactly lets take you across the equities at this stage as you see to my right, this is a mix picture in the trading session. We have been trading for two hours in europe. The ftse 100 is up. 30 . We are seeing positive moves over in italy and spain, however, if you look at the other boards, it is a negative picture that the stage this as investors are digesting corporate releases throughout the morning. Of course, this is also on the back of the Federal Reserve meeting. One of the most corporate stories this morning is novo nordisk. We have been reporting their results. They communicated a higher than expected revenue for the quarter and at the same time, they raised guidance for the year however, when you look at the share price reaction with the frankfurt listing, it is moving lower by 2 . Some traders believe the increased guidance was not significant enough to convince them if you are a bull and still looking at the stock and saying the demand is strong for weightloss drugs, this is an opportunity to buy this stock. All of that to give you context, frank, as we see the shares moving lower so far in the equity session. Silvia, thank you very much we will talk more about novo nordisk coming up on the show. After that report, novo nordisk shares down 2 great reporting. Thank you. Lets bring in the cross mayfiel to continue the conversation how does this impact what you say is a move to the cyclical sectors . Financials and industrials have o outperformed the last couple months. I think jay powell was down the middle if you had to pick a side, it leaned dovish only because he kept the rate hike conversation off the table which was the big tail risk or riskoff event if they brought that back into the picture with the stickiness that they are battling. You know, i know the riskoff move in the afternoon yesterday, but how it impacts the cyclical sectors we have seen pop the last couple months reinforces what we have seen. That is being driven less by rate cuts and the strong underlining economy. Ross, i want to ask Something ElseMohamed Elerian made comments about the fed decision yesterday saying in part he worries how reactive this fed is and it may end up too hawkish for the economic well being with the domestic and International Structures do you agree i think they could skew too hawkish. My take has been the last mile here with inflation is entirely about housing and part of the problem about housing is rates are too high if they play that wrong, they could end up too restrictive i think their history is staying hawkish too long and get aggressive when somethin breaks one more thing to bounce off you, ross, Jeff Gundlach had this to say. I want to get your opinion after this take. This is a pretty good environment. The type of strategy we have implemented will keep working and it has been working well for the past six months. That is, you know, you can get pretty good yields by investing in securities and fixed income market that arent that risky. Ross, your take quickly i would keep it high quality and high credit quality. You can get good yield on high quality corporates or treasuries at this point in the curve i would not be extending risk without tight credit spreads i agree with that statement. All right ross mayfield, great to see you. We have to keep it moving. Thank you for being here. We have more to come on Worldwide Exchange, and including the one word that investors have to know today, but first, more on powells post decision comments and why former vice chairman Roger Ferguson says they are setting themselves up for disappointment. And apple reports later today and we will look at the numbers coming up when Worldwide Exchange comes back. vo what does it mean to be rich . Maybe rich is less about reaching a magic number. And more about discovering magic. And theyre all coming . Those who are still with us, yes. Grandpa whats this . Your wings. Light em up gentlemen, its a beautiful. Day to fly. Welcome back to Worldwide Exchange. Novo nordisk reporting better than expected First Quarter rules. The danish drugmaker is looking to boost the weight loss drugs f ozempic and wegovy lets get more from the cio at the firm which offers the etf ticker hrts with novo nordisk being the top on the listing good morning good morning. We talked about the huge quarter for novo nordisk the stock is actually down in your mind after that quarter, why is the stock down . The expectation was really high going into the quarter and there were a couple of wiggles into the results there was a sales miss from wegovy which the market is questioning. The outlook is pretty bright back to wegovy. That is something we talked about here in europe wasnt it due to supply chain issues they could not make enough supply has been constrained you start on a smaller dose and it has been restricted novo nordisk has been opening this up since january. That is why the outlook for the year is bright. Okay. You say outlook is bright. I want to talk about the competition in the space we were talking off camera you think the drugs will take over the world eli lilly put out a report this week saying that they are testing drugs and the number of commercially covered patients for their drug has doubled over the last couple months february 1st was onethird of covered patients and now twothirds coverage is important what happens with coverage, it improves as the companies show Clinical Trial results for different diseases what is interesting is it shows a benefit in sleepapnea. These are the ways that novo nordisk and eli lilly are finding ways to pay for the drugs. Liver disease and kidney disease. That is why these drugs have a popular future. Amgen is doing the first human trials and expected to have results in june i want to talk about Something Else regulation you are shaking your head. In the u. S. , regulators accusing novo nordisk and a bunch of other drugmakers, to be fair, for having fake patented that wont hold up to scrutiny. How much of a risk is this it is typical for the ftc to put out a list of fake patent. The patents are massive. Many patents covering them i think this is really just a bit of nonnews. Nonnews . Doesnt it raise the risks of generics entering the market which would reduce price and take market share . When a drug gets approved, there are lots of patents. Typical patents are 100 to 150 covering formulation and how it works. Those are not being challenged here i dont think this brings a risk of generics. That will come in the 2030s. We need to watch out for the long term. That is why the pipeline is important. We had an analyst on yesterday that said just about everybody will be on them sooner or later. Current estimates are about 1 billion people in the world live with obesity that will rise to 1. 9 billion by 2035 there will be a long potential market. Yuri, thank you very much we appreciate it more to come on Worldwide Exchange, with qualcomm signaling a bounceback after a twoyear slump stay with us it should be called wiffle tennis. Pickle yeah, aw whoo these guys are intense. We got nothing to worry about. With e trade from morgan stanley, were ready for whatever gets served up. Dude, you gotta work on your trash talk. Id rather work on saving for retirement. Or college, since you like to get schooled. Thats a pretty good burn, right . Got him. Good game. Thanks for coming to our clinic, first ones free. Something amazing is happening here. Data is bringing creativity to life. Thats because cdw showed Animation Studios new ways to maximize their infrastructure, then built a flexible Dell Technologies data solution. More automation led to greater efficiency, which means creativity stays the star of the show. Make amazing happen. Dell technologies and cdw. Torstein Hagen in my simple world, there are only three things that matter in human beings. Make amazing happen. First, they have to be kind. Kind. Second, they have to be honest. And third, they have to be hardworking. Its very simple. Wherever you are in the world, when you come to a different culture, you meet people of very different backgrounds, but you find out that they have the same ambitions and the same fears just like yourself. Im so sure that travel is good for the world. Its really the best to engage with the locals and the destination. And i think travel helps broaden the human mind and makes us kinder. And thats fantastically valuable. For the merging market economies, we have not seen the kind of turmoil that was frequent 20 or 30 years ago and that is because many of them have much better policy frameworks they are navigating this pretty well this time that was fed chair jay powell yesterday touting the resill especially of International Markets in the face of the Central Bank Uncertainty we had guests come on laying out the bull case outside of the u. S. Joining me is malcolm who is the head of strategy at ex malcolm, your top pick with emerging markets is india india in this case is under performing the u. S what makes india attractive . Thank you forego having me, frank. India is the best structure story right now. This is the longterm horizon. We have nearterm with the Prime Minister reelection modi is looking at fiscal and economic continuity. India benefits from the amazing demographic back drop. Largest youth population in the world. Very well educated broadly you have a democratically elected system where they are looking for supply chain diversification in china and the combination of spending and reaching an inflexion point where we see a boost to disc discretionary spending. You say the elections in india make it more attractive to invest in india . That makes it a more attractive area of investment with the large democratic elections absolutely. I think a lot of people are comparing india to china and are getting a bit of comfort knowing india is coming from the democratically elected political system rather than in china where it is ccps way or the highway. That leads to a lot of black box views over what is going to happen beyond six months with the China Economic policies. In india, we know what election pillars the government is running on and what they delivered in the last two terms. We know what the goals are for the next few years you are looking at brazil this is interesting. According to the braz etf, brazil is down 9 on the year. Biggest export is soybeans it seems like the economy moves with the soybeans. I think brazil used to be the china beta play. It used to be about iron ore and how many cities china is building with the industrial output from there. Brazil has done a good job of diversifying it will be the fourth largest producer of energy in the world. Right up with the bigger opec countries. In addition to that, soybeans. Agriculture, broadly speaking, is helping diversify the Brazil Economy which has helped brazil do well during a difficult period you mentioned in the introduction of the segment of Monetary Policy. As we came out of covid, they hiked Interest Rates choked off inflation they were still able to let growth come through and letting gdp grow 2 plus a year. A lot of that was before i let you go, one more area to look at here are you you are bullish on china. There is upside there or is there some other reason . Im not broadly bullish on china for the whole market within it, there is an interesting contrarian play within the consumer. Consumer names are trading 50 below the historical average this is one area aligned with the ccp goals of doubling the middle class by 2035 breaking it down, i like chinas consumer as a contrary play. We have to leave the conversation there mal malcolm, thank you as we head to break, we will look at qualcomm shares of the Biggest Smartphone processors moving higher up beat forecast for sales and suggesting demand for handsets increasing after the twoyear slump. Much more Worldwide Exchange after this as a kid, i watched my mom struggle financially. Her sacrifice allowed me to pursue my dreams. To create generational wealth. Im partnering with sofi because they care about making your money work for your ambitions. Just like my mom did for me. Recognize a generational player. Join the official bank of the nba. Sofi. Get your money right. It is just about 5 30 a. M. In the new york city area and almost 10 30 a. M. Here in london here is whats still on deck Holding Steady the fed reserve is not pivoting yesterday as jay powell says it is a fight against inflation Roger Ferguson is standing by on when or if rates cuts are coming. And whipsaw action on the fed with jim cramer giving the all clear signal and Apple Earnings on tap is it a tough year well find out later today welcome back to Worldwide Exchange. Im Frank Holland coming to you from cnbc london we pick up the half hour check of the stock futures with the mixed session for stocks yesterday. The dow surged 490 points during the jay Powell Press Conference before ending the day with marginal gains the dow would open up just about 120 points higher. Nasdaq also higher with the nasdaq up in the premarket, lets look at the biggest gainers. We see cognizant tech up 4. 5 . Qualcomm with a strong Earnings Report with strong orders from chinese smartphone makers and then the trade desk in the fourth spot. Wti is the u. S. Benchmark and below 8 80 a barrel it is up 1 . Brent crude is up 1 lastly, bitcoin here is under pressure it is trading below 58,000. It trades around the clock 57,775 right now. That is the set up now lets turn back to the big story. The Federal Reserve and the decision to hold steady with Interest Rates the central bank noting the challenges in getting inflation to the 2 target in the press conference, jay powell saying the next movelike. We dont like to react to one or two months data this is a full yquarter. It is appropriate to take signal the signal is it will take longer for us to gain confidence we are on a sustainable path to 2 inflation for more on this, lets bring in Roger Ferguson. The former ceo and president of tiaa and cnbc contributor. Roger, great to see you. I want your take on the fed decision and the comment from jay powell did he close the door on all of the people that watch all of the reports . Did he finalize and say it is jobs and inflation is what we are watching and thats what determines it . First, i think they did obviously the right thing by signaling they were aware inflation has been stickier than