Transcripts For CNBC Squawk Box 20170512 : comparemela.com

Transcripts For CNBC Squawk Box 20170512

In europe, things have barely budged in most of the major markets. Cac is flat. Dax is up 0. 1 . The ftse up almost 0. 2 . Crude oil prices continued to climb yesterday. This morning giving back just eight cents. But there is a thought that with supplies in the United States experiencing an unexpected draw down, and with more countries looking like they may support saudi arabia in terms of continuing that production cut, we have seen prices that have stabilized well above the lows weve seen earlier this week. Wti trading at 47. 76. Some big corporate stories. Retail wreckage continues. Department store chains taking a major hit. Nordstroms posting better than expected earnings and revenue, but the stock dropped on a samestore sale miss. Theyre the latest Department Store to get hurt by a slump in clothing because of online shopping. Macy shares dropped 17 yesterday during the trading session after Quarterly Results missed. It was the worst day for macys shares since 2008. Well get another schanapshot o the retail space this morning as jcpenney posts results before the opening bell. Its struggled and struggled for so long. That chart is just one part of a very long and tortured story. No a coincidence that bezos is worth 81 billion as this is going on . Consumer lab by thabits have. I would be ecstatic if i had a tenth of that. 8 billion. Or a tenth of that, 800 wait, i would be ecstatic with a tenth of that and a tenth of the next thing. The scientific notation . Hes like four places ahead of anything we can ever you know what . Are you back to that whole wealth tax thing all over again . No, i just thought now, you were looking me in the eye, which i warned you before the show, to stop dont talk to me. Dont look me in the eye. Dont walk and talk. Dont come to my dressing room. Dont come to my makeup room. Didnt are we cohosting the show with steve harvey . Thats what will be hard if were cohosting the show. It seems like we have to people, if you didnt see the steve harvey letter. Theres a letter in the papers today. Was it today . I thought it was yesterday. Steve harvey sent out to his staff, dont talk to me. Stop looking me in the eye. Dont go near the dressing room or any of those things. Dont even speak to me unless you are requesting it in writing to say hello in the mornings. Thats what i want from you. Nbc universal property. There is some economic stuff going on. Everybody at home is now look at their tv and looking at me. I havent given them i bet they would be glad not to look at me. Its okay. Please look at me. April retail sales, and cpi will be released at 8 30 a. M. Eastern. Followed by may Consumer Sentiment and march business inventories at 10 00 a. M. A pair of fed officials are speaking. Chicago fed president Charles Evans and philly fed president , patrick harker. Po poli to politics. Donald trump explaining his decision to fire james comey to lester holt. Hes a showboat, hes a grandstander. The fbi has been in turmoil. You know that, i know that. You look at the fbi a year ago it was in virtual turmoil. Less than a year ago. It hasnt recovered from that. Monday you met with the Deputy Attorney general, rob rosenstein, did you ask for a recommendation . What i did, i was going to fire comey, my decision. You made the decision before they came into the room . I was going to fire comey. Theres no good time to do it, by the way. Because in the letter you said i accepted their recommendation. Yeah. But you had already made the decision . I was going to fire regardless of recommendation. He made a recommendation, highly respected. Very good guy. Very smart guy. The democrats like him. The republicans like him. He made a recommendation, but regardless of recommendation, i was going to fire comey. President trump also said comey told him on several different occasions that he was not under investigation in regards to russia. We may hear more about this, because there are reports that comey has been asked to testify before the Senate Intelligence committee next week. We may hear more of his side of the story. I dont know. I thought that was an amazing interview that lester did. Really nice job with that. Maybe you can get comey to be the independent prosecutoprosec. Bring him back as the independent prosecutorment. You guys . You guys who . Like you guys. Like you guys that i thought wanted to fire him after what he did to hillary, then after they fired him, then you didnt im so confused by this. Trust me, im confused. Im very confused. I heard. After the weiner gait lgate i thought you wanted to fire we havent seen each other the past couple of days. Its all coming out now. Were you hyperventilating, you and don lemon and everything . Chris cuomo. I thought he would have a heart attack on the set. I was afraid to turn on cnn because somebody would die. Its just the way it happened. I know. You cant be happy with the explanation. Dont tell me what i cant be happy about. I was happy i was on a golf course, not here. If democrats if theres fire where theres smoke, which is the fervant desire of every democrat. If there isnt, i dont understand. Im waiting for the leaks. Where are the leaks on russian collusion. I will not dispute for a second the hypocrisy of the Democratic Party in saying that he had no credibility and then saying that he needed to be in the job. Having said that we talked about that with the congressman who was here. The rationale for why he was fired and when he was fired has raised at least serious questions that probably deserve answers. I can tell you something about donald trump, loyalty is paramount. He doesnt give a doubt how he does things. Clearly. The great thing was, he fired him and met with lavrov the next day. He doesnt care. He doesnt care about percept n perception. Though he did not let American Media in, and was upset that the Russian Media leaked photos. When things like this happen, whether right, wrong, gaffes, whatever it is, whether it takes oxygen out of the room, for all the policy stuff these guys are here for and care about, the way the investors care about where the economy is going yesterday, in i cant control what people im with, i cant control what they watch. They were watching squawk box. So i had to watch you even though i wasnt here. I was like cant you turn on morning joe or soimething ugh. You cant support your own show . I was looking at the numbers, for a constitutional crisis, it doesnt look like the market thinks were quite there yet, watergate. Coverups are worse than the crime. This is all the hyperbole that im hearing, and im waiting for more than 20 points down on the dow to see something. Even if it delays tax reform and obamacare, would think the market would go down. With nixon, agnew, jerry ford, when that was happening, we were worried about democracy Going Forward in the United States. The markets suffered greatly. A huge relief when some guy like jerry ford got in. I dont know. Neighbor is gets there. I doubt it. Im not saying a lot of people are. Breathlessly, hoping. I was with people last night who were asking what do you think the chances are of him getting impeached no the people you were with were like what do you think the chances are . Can it happen, andrew . Will it happen . Only if i sort of okay. Lets get you some other Washington News this morning. We have some guests this morning. Oh, yeah. As it happens. Their times up. The United States and china reaching new trade agreements. The plan is aimed at increasing access to china for beef producers, electronic Payment Providers and gas exporters. The tenpoint deal was announced by wilbur ross, and he will join us at 7 00 a. M. Eastern time. Lets talk markets. Swroe se joseph . Yes. Jason pride is here and cliff. Lets not even delve into the worst case scenario. Talk about whether this makes passing things legislatively more difficult and why isnt the market which supposedly is trading higher on anticipation, why is it not pulling back on this . Its funny. I was siding there with a handful of investors the other day, in the knowledge through a group of people. Theres a debate among that group as to how much the market that actually risen on this. Versus just underlying fundamentals. Ra reality is that earnings are up 12 , maybe 13 , First Quarter weve seen this in two years. The economy behind that is actually some what decent. Not just a u. S. Story. The numbers, the revisions weve seen overseas have been pretty monstrous compared to the past five, six years in terms of earnings. So theres an underwhelming or underlining fundamental surge occurring at the same time as all this political occurrence. So theres a debate thats going on, you know, people said we actually think the market is basically expecting nothing out of this administration at this point in time. And what the surge has been is actually on a fundamental basis. You got deregulation, the fed at zero basically. Up a little, but very slow going now. Money still cheap. You have a lot of deregulation and corporate corporations doing well already. Its that simple . I think just adding on to that, we have for the first time in seven, eight years a synchronized Global Recovery that the market is buying into. I think go figure, fundamentals matter a bit. Given trumps frequent tweets, maybe theres a callousness, a callous nature to the way the market is thinking about this noise and news. Unless where theres smoke and fire, maybe not, because theres going to be a lot of smoke with trumps tweets. Easy money. Lets talk about that. We have the potential evolution out, away from the fears from the last seven, eight years, yet money is easy across the globe. It is. Some numbers much higher than 50 of developed Government Debt is below 20 . Its not going to change quick. Economy recovering, still easy money. Low rates, thats a recipe for low vol. On monday, taye25year low e vix does that give you pause . Thats been a big topic for us and discussion for us. Typically at this point in the economic cycle, we seem to see vix get down to this level or volatility of stocks. Vix has not been around that long. It does tend to happen. What we havent seen is have it hit these lows. This is really extreme. About half the magnitude of the average point at this point in the economic cycle. But it may be just a representation of how much liquidity has been pumped out by the federal reserve. There is an extreme amount of dollars tracking less assets than what it wants to have. Thats maybe created some complacency in the markets that they cant see actually going away until that liquidity goes away. I dont know if that liquidity is going away any time soon. We have a 4. 2 trillion plus Balance Sheet at the fed. You can look at other Central Banks higher. Ecb, japan. The fed told us theyre telegraphing that theyll be really slow about pulling that Balance Sheet away. Thats the likely path. At least in our view. So youll have easy money for quite awhile supporting assets. Thats part of the equation were dealing with. This is one spot where were hearing some differences in opinions. Some theres some marginal increases in opinion that the fed is actually going to have to start tamping down harder. Were seeing numbers, you see the inflation gauge from the atlanta fed, you see the Wage Inflation numbers. You look at unemployment numbers, actually below natural rate of unemployment. Were getting to the point now where inflation does creep into the system. The fed seems to be pointed in that direction. That could put them on a path of actually tightening a little bit more than this market is expecting. I think the market now is thinking about a 50 50 chance of three rate hikes this year. I would probably put odds on favorite is what it should be, three. Yet its prigsi ingpricing in 5 chance, and they may take it further than that because of that inflation build up. They may have to tamp down harder. Theyre not alone. Ecb is also starting to talk this direction. Will that hurt stocks . Will it come because the economy is rising the way we need it to rise . I dont know if were at the point where that hurts stocks. It could hold us back a bit. I dont know if its at the point where it could hurt stocks. But anything can happen. Theres a range of expectations around that. Could they overstep a bit and take it too far within the next year or two years . Thats in the carts. I wouldnt put it as the base case, but its in the cards. Guys, thank you. Jason, cliff, thanks. Is that a new place where you are . Where did you used to be . Same place, joined up with an international firm. So insight. Where were you before . Cutwater asset management. You do stuff like that, you know, i was confused. Did you realize is this the first time you had this new second time. Second time. Fixed income specialist with over 600 billion in assets under management, leader in global fixed income. Making more money . The firm is making money. No, no did you get a raise . Was it a step up . Was it a lateral step . Well do a Job Interview during the break. Coming up, startups are looking to disrupt traditional lenders. Future fuel took the prize in the personal Education Finance portion. The founder joins us to talk about student debt in a moment. What are you doing . Getting your quarter back. Fountains dont earn interest, david. You know i work at ally. I was being romantic. You know what i find romantic . A robust annual percentage yield thats what i find romantic. This is literally throwing your money away. I think its over there. That way . Yeah, a little further up. What year was that quarter . What year is that one . 98 thats the one. You got it nothing stops us from doing right by our customers. Ally. Do it right. Lets get out of that water. Welcome back to squawk box. The annual fin tech awards were held yesterday. The winner of best educational personal finance platforms is on the set. They do a great awards ceremony and they look at fun fintech companies. Laura taylor is founder of fuel education. You give out these cool awards. How did she win . They built a great product to help with loans for people. We celebrate innovation at fintech, this company is on the cutting edge to pow er the consumer. What do you do. We exist to crush student debt. Simply put. To crush it. How . We empower the private sector to solve their chief concern which is the acquisition and retention of top talent. Theres a critical discorrect between the benefits employers are offering today and related desperate needs of our emerging work force, which are student debt, even before 401 k . But take us a little higher, 30,000 feet so we understand. How does the product itself crush the debt. So we are a btob, so we move the money and administer student debt as repayment, so students can turn it on light a light switch. Lets say i just graduated from school. Im in deep. Youre in deep. Im in deep. Whats the average student debt . The National Average is supposed by 35,000, in our platform, its 68,000. So im graduating. Im in deep. I have 68,000 in debt. Im going to go get a job where . That will be hooked up with you that will help me. Today 4 of employers are offering student debt repayment. This is a new normal. Its a new category were launching. Projections will be 40 . Options in the future will be much greater. The idea is its another benefit. When Companies Look to differentiate themselves, its another benefit, you can be a part of our program, well help you pay loans, pretax, after tax. What kind of companies are doing this thus far . Companies across industry verticals from tech, healthcare, travel, Financial Services, retail. Can we name some names . Sure. In case theres some graduates out there trying to look at companies that want these benefits. Two companies that asked me to talk about them this morning because they are hiring engineers, data scientists. Two companies, one call assurance, they use ai to optimize Life Insurance products real time. Another Company Called future x, a Machine Learning ai company to determine predictive outcomes in the economy. If i take a job there. Ill get a salariment. Salary. A great salary. And health benefits, and what . Theyll crush the debt. How . Every month theyll offer between 200 to 1531 1500 a mo directly to the student loan. On top of the base salary, theyre offering an additional student loan payment. Is there a tax payment . Today theres no tax benefit. But there are a number of bills that we have high hopes actually having a shot at coming to fruition, which would create incentives for employers to offer student debt repayment. And the product itself that youre selling is to the consumer. Were sorry, to the business. To the business. This is a back end enterprise product that would work to or benefits website. Exactly. Just wanted to get the whole thing. This is one of theres over 400 companies that applied to the Fintech Awards this year, this is one of them. They got over 100,000 votes. Everybody says they want to remain independent, is your business ultimately a business that would do better inside a larger, benefits tech nol swnol company . Or is this the beginning of a platform wore you platform . Our primary go to market is a white label to existing hr benefits and payroll providers. I wouldnt be surprised if we have offers in the future for an acquisition. Well see. Tell us about the deal. Come on back. Can you give us an exclusive here . Were thrilled, jason, thank you for the opportunity, 1. 5 trillion, exploding at 100 billion annually, as entrepreneurs we have to make our way out of this mess. Fintech innovation empowers consumers. We take the power back. Thank you. Thank you. Before we head to break, check out this viral video. Rescue crews out in Southern California used a helicopter to hoist a horse. Pretty cool. Its believed the horse and its rider fell 300 feel down a steep hillside. I dont know. Apparently the rider is okay, too. The horse were talking about the horse. The guy went to

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