Trump Trade Trouble, Key Cabinet Picks, Face-To-Face 11/18/24
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Join the club with jim's best deal of the year at C N B C D com slash club, like for friday terms of restrictions, supply i'm Frank collin and you're listening to C N B C E S worldwide exchange. Our show is live weekdays at five eastern listen in IT is five P M here C B C global headquarters welcome to worlwide exchange.

Here is your five and five trumpery troubled stocks coming off work session in two weeks as investors, they reevaluate post election excitement and possible policies. The president left out with a number of new cabinet pix while you one must waste in on the debate over the ominous for treasury. Among those picks, big energy CEO and climate change skeptic Chris right for energy secretary, while the current U.

S. Energy chief says backtracking on climate progress would be quote on quote, political male practice plus test this year, surging this morning on hopes of lesser regulation, and then later reports and videos. Blackwell wine well, and maybe running just a little too high. It's monday. Remember the eighteen, twenty, twenty four you're watching world at exchange right here on C, B, C.

Good morning. Thanks so much for being with us. I am fran collen.

Hope you have a great week and then pick off this out with the check of U. S. Dog futures taken the love.

The major average is coming off a rough week, trading down between one and four percent right now. You can see a bit of a mixed picture here. You see the S M. P. Fractions higher right now, up just about a point.

Look that out of looks like you would open about one hundred more or more points lower than asea, doing quite a be Better than that up just about a quarter percent or over sixty points. We also look at the bon mark and take a look at treasury. S I S.

Became with the benchmark ten year, not a lot of action when IT comes to the ten year. This is the action we saw last week. Remember, we just told you the major averages down between one and about four percent.

The Russell the heart to hit down about four percent. We want to go back to bonds just right now. Just for a second, we're going to begin with the benchmark, not a lot of action in the bond market.

Actually the ten year, the benchmark we're you're going to share you just a second. You promise pretty much the same level that was last week. Just move on a few bases points to the downside.

Similar story for the long bn after the CPI and ppi reports last week, holding steady from the levels that we saw friday, just taking just a few basis points OK. We also want to look at bitcoin. Of course, a lot of moves when IT comes to bitcoin and that so called trump trade.

Taking a look, bitcoin still above ninety thousand right now, just a tick below ninety two thousand. You can see right now trading IT about two and a quarter of percent. I remember bitcoin, this trades around the clock.

And we want to talk about a big money move over this morning, that is, tesla taken a look up big in the pre market on a bloomberg g report. The Young ing incoming trump administration plans to make a federal framework for fully soft driving vehicles, one of the transportation department's top priorities and one that would directly benefit tesla. Take a look at test the shares right now.

That's the headline from bloomberg. Test the shares against we said up in the premark er right now, up just about seven and half percent. This kind of a reversal from the accident we ve seen over the last week actually following us.

We've the trump take cool down just a bit. We going to talk about that in just a second that your morning money set up. Now we want to turn to the incoming trump administration as the search for key cafe members that continues.

The president elect reportedly expanding his options to lead treasury, reportedly adding former effect governor Kevin walsh and Apollo global cofounder mark grown into the short list. This is in line mush. There was a support behind kenner fitz elles CEO and trump transition share, Howard lta ck over headed fund mogul scope is sencer lta c will actually an act change. The president left owen naming big tech critic and project twenty twenty five co author branding car to head the fcc. But perhaps this trumps pick for energy secretary.

That's one of the most has this morning at least tapping liberty energy, CEO and climate change skeptic Chris, right? And a statement trump says right has been leading, has been a leading technologists and entrepreneur energy and will be a key leader driving innovation, cutting red tape and ushering in a new quoquo golden age of american prosperity and global peace. In a separate statement on ex, right says this focus would be on making american energy more affordable, reliable and secure, adding that energy is a life blood that makes everything in life possible.

Cnbc, y zone dammers phy joins us now from dubai with reaction from the current administration. Then good morning. Good to see you.

Frank. Good to see you as well in good morning to will energy secretary Jennifer ground home defending president biden's climate policies in our interview on friday at the cup twenty nine climate conference in baha grand home, pushed back when I asked her directly, has the united states just left the room when IT comes to climate policy now that trump is killing back to the White house? And SHE also urged president truman not to reverse those biden era climate commitments like pulling out of the paris climate agreement. Again, listen to this.

IT would be political male practice to undo those opportunities when people are just now getting hired. Four hundred thousand people have been hired so far just because of these two bills. Today is the third anniversary of the bay partisan infrastructure law, and he has has created an enormous difference across the country.

President electronic has sport fossil fuels at the center of his campaign agenda. He, of course, wants to unasked american oil and natural gas productive and and even scale back some of batten's flagship inflation or doctrine acct, which aims to code missions by investing in renewable energy, by promoting electric vehicles and tax incentives for clean energy as well. Exactly what the administration does there remains to be seen.

But the men tossed with executing on trust vision in the fossil fuel space is going to be the liberty energy founder and CEO Chris ride. As you say, he is trumps pick for energy secretary, who is not just an oil and gas executive, but a friend of the industry and a local skeptic of climate change. Remember though, Frank, the us.

Is already producing an average of around thirteen million bills of oil a day and production rose to a record high under the vide administration. That's not likely to slow down under trump, but grand home, of course, was more optimistic. He said. This clean energy transition that is underway will continue to happen regardless of who is sitting in the White house. Frank.

our dam, if you love to buy dan, always good to see you. Thank you very much. I want to turn attention out of south america. We're president by the chinese president. She's in how what could be the final face to face before the trump administration takes over in january.

The two speaking on the sidelines of the asian pacific economic CoOperation summit in peru, where he said beijing is ready to work with a new administration, but he caught in the incoming president without singling him out by name to make quote on quote wise choices and the state through an interpreter, he said, china is ready to work with a new U. S. Administration to maintain communication, expand CoOperation and management differences, so has destroyed for a steady transition of the china us.

Relationship for the benefit of the two people, another developing story that we're following this morning and for the first time, president biden authorizing ukraine I to use us supplied language missiles to strike deeper inside of russia. That's according to two us officials. The move Marks of major ship to U.

S. Policy and IT comes as north korea deployed thousands of troops to support russia and its war against ukraine. IT also means that key could initially target positions inside the current region, where russia, as a mass, more than fifty thousand troops.

These are two stories, will continue to follow here, more wide exchange, our turn, our attention now, backup home the markets losing some ground from that post elections bounce. The S M P five hundred coming off his worst week in the past ten, and the index is now raise ed sixty percent of its gains sense. Trump was elected to me now was ross mayfield, investment st.

Tragedies that bear ross, good morning. Great to have your own board. Good morning. Things have mean. So I think the first question we have to talk about is, you know, the trump trade, how are you seeing IT right now as we see lose just a bit of scheme? Bitcoin, obviously, of the exception bitcoin contains to move higher, but some of these other trades calling off a bit?

Yeah, I think I think that's right. So sentiment h got really aggressive animal spirits kind of return to markets, uh, in those couple of days post election, but a little bit of kind of a collection or consolidation period is to be expected. Um the market was on good footing entering the election.

IT remains on good footing now. But I do think that the market stepping back, taking a breather, evaluating a lot of moving pieces, including all those potential cabinet pigs um that you mentioned, makes us a sense that so we're still bullish h their season tel when you're in. But I think a consolidation here makes odda sense.

So a bit of accelleration makes sense. You I do want to talk to about just some of the sick calls and some of these sectors, at least there were part of that so called trump trade, or that was financial industrial. I personed up in eroes would be part of IT.

With the idea that were going to make more things in america, we going to show the chart of each of these sectors sense, election day, financial, industrial, big pop materials actually trading lower. In your mind, when we look at these so called trump trade sectors, do you see the rally continuing? And one of them particular is that one that you like Better. Do you see a turnaround and materials? I mean, what do you saying when you .

look at yeah I think I think the two that you mention that the top are the two that I think have legs throughout the administration, right? So financials, a clear deregulation story um a lot of potential ways that uh deregulation can can benefit that you get the lower interest strates potentially spring some capital markets activity um and then stock market at all time has good for the the wealth management portion of the business.

Industrial, plenty of secular tailwinds there in the bypass infrastructure, bill all the air space and defend spending um potentially, as you mention the reassuring story as well, building things in america, energy of materials, I think to get excited about them. It's difficult because you you're too tired to the commodity is underlying, I think. And I am not sure that we're entering that commodity super cycle that can spurs stocks tire.

I want to come full circle a bit. We're just talking about president biden, the chinese president. She's an ping meeting sheet pink talking about the incoming administration using the quote.

This is through an interpreter, just to be clear, but saying that the incoming industry tion should use should make, I should say, wise choices. I don't know that the friendly est waited to kind of describe how you want things to go between you and somebody that's coming into new position. I want to get your take on investing in china and the idea that he sian pink says that president like trop ese is .

to make on a wise choices yeah I think the choices are already made to an extent and that is not the friendly st policy towards china. Um the the terms there the first time around, we're pretty extreme. I think there will be a larger, broader and and targeted directly at china this time round.

So I don't know that it's necessarily to be a friendly administration, not necessary. The administration was all that um friendly towards china. So IT is a bit by partisan to be a bit more defensive between the us.

A relationship as well as investing there. I mean, the stock market there has been extremely volatile and and not a big total return a over the last twenty thirty years, quite Frankly. So the U.

S. Companies that are tied there, linked to the consumer is a lot more about what china is to stimulate that part of their economy. Is to the that will perform. But I think this relationship will be icy, and I don't think it's got a lot of room of proof.

Rose may feel great to see me a wise choice, have you on today. Thank you very much for more with driving the markets in the train day ahead. Had over the cbc pro, its cbc outcome slash pro for exclusive insights and analysis.

We do have a lot more to come here about exchange, including the one word that the investors have to hear today and the stock pic that every investor needs to know. But first, why you might, must, could be the surprising key to bring down high mortality, rich going up to here, that pieces coming up, plus how AI is helping local governments spite the growing threat of wildfires. And then later, much, much more, and present like transfer for energy and what he kit me for oil Prices in the month ahead. We have a very busy hour still ahead.

And what what exchange return.

Our goal is to empower you to be a Better.

best blue teachings. I was able to learn and become financially independent .

in my retirement. Jx C, N B C, dom, slash, club day, terms of restrictions, supply, walk back to the word exchange. Ella musk, vic roa swami's mission to eliminate government waste and reduce, regulate red tape that could pay dividends for the national deficit.

But it'd also help another part of the U. S. Economy that's really been hammed behind interests rates and even hire affordability standards as the housing market.

And according to my next guest, this could all pay off for you if you're trying to buy a house. Lawrence Young, jeff, economist of the national association realtors laws. Good morning. Great to have Young board the morning.

Thanks for having me. Alright.

so let's break this down, really. Crick, i'm i'm going to set you up here so your ideas that vid promise wai and elon mies, they could help housing cost, which is basically mortgage rates, if they reduced the national deficit. And that would lower bony els, I let you take you from there are .

the rest of the theses. Well, you know we have seen the federal reserve already cut rates by seventy five basis points, but the tenured treasury years has been rising. Uh, so the Better reserve is not lowering the mortgage way and the reason for that uh, could be that we have very high budget deficit, large deck to continue to grow by two trillion and a year.

So if somehow the government spending can be reduced because we know that president trump will extend his tax cuts. So the tax cut, uh, there will not be a possibility of a tax increase. So only way to reduce the debt is to reduce government uh spending. And h we have uh ella mask along with viva rama swam looking for wasted spending, reduce IT. So with less government borrows need, that means there will be private capital, including mortgage lending available in the market to bring down those products rates OK.

So there's a couple of eps in there. I think in all fairness, lawns, that a couple of things have to happen. But also, I think the important thing to point out, as you mention, the fed is cut, raise, but still we have seen the ten year go higher.

A lot of that has to do with investors and bonds and their reviews on some of the trump policies. One of them the deficit, other one is potential terrorist in the inflationary impact. So what happens if the ten year continues to go higher? Do you believe even if you on muslim vivra swami cut government spending on things and the ten year moves higher, does that still lower mortgage rates? Because they are not actually tied together. It's kind of they move together, but they are not directly tied together. So I just want to kind of spell that out again because I don't throw on a lot at you if you let us that okay, go head you get I apologize.

Uh well you know certainly uh terror uh, we have to wait and see uh what degree and how much uh a magnet de of an impact because he will be inflationary in the short term, uh, but if there is a long term credible plan. So it's not about reducing budget deficit in a single. Lier, but I credible plan to reduce deficit over time that will bring down the ten year treasury year.

Which concept will lower the mortgage rate? As you said, mortgage rates are much more tight to the ten year treasury. Now there is a little a misaligned between ten year treasury and thirty year fix rate mortgage at the moment. Historically, the spread between the two rates would be about two hundred basis point or even lower now is about two hundred and fifty basis point. So if the market become more confident about the direction of the economy, along with the budget deficit situation, I think there will be a narrowing in the spread between ten and mortgage rates, which also helps bring down that mortgage rates for consumers.

One of the thing I mentioned, I think you probably have the answer um and some of the data behind this, we have so much demand for housing here in the united states depending on the estimate where at a shortfall at least two million people continue to buy houses with these higher mortgage rates. How to supply demand player part of this if if i'm giving out mortgages, why would I lower the rates even if the ten year goes lower? If people keep buying houses.

uh, well, you know there is always the dream of the ownership of because we know that vans the present well between home owners and renters. So that demand will always be there is question up supply. So we need to assure supply continue to increase, uh.

And so anything to bring about more supply, whether turning a slice of Better land or more home building or whether reducing some regulation for home builders to get more active in two day marketplace, maybe consider changing the zoning law. So we have to consider supply. But at the moment, even at the elevated mortgage ways, we have buyers, but these are high income buyers.

We need more moderate income first time buyers to get into the market, and that's where mortgage rates play much important role. So we establish american report more of people all. We need to assure that mortgage rate steadily, uh h get slower and part of that is reducing the budget deficit.

More is great to see you. Thank you very much. You have a great day.

Thank you coming up robotic exchange rest off a deal with soft bank new reports this morning there in some cold water and ambitious as black low chips that are apparently running just a bit too hot we'll the story coming up small box tomorrow lifestyle icon Martha store a wide range interview about one hundred with book and business empire was robo ck CEO on the company's latest safety controls stay ahead of the market school box tomorrow C, N, C. Walk back to robot to exchange. It's been an usually strong wind biotech on in the northeastern U.

S. This fall and especially here in the new york metro area. In less installation of our AI impact series, our joy boston looks at how new technology is helping to fight the threat of wildfires.

Wildfires continue to ravage the country, causing the loss of thousands of lives and billions of dollars of damage. This year, over eight million acres have already burned after about three million acres burned last year and above the five and ten year averages. Now tech companies, public utilities and government agencies are using new artificial intelligence tools to fight back.

Panel A I is a starting that deploys cameras in high risk areas, charging fifty thousand dollars per year for one of its camera stations. IT software detects smoke and fires at the earliest stages. Sending notifications to local fire departments to drastically speed up response times is just .

not practical to build thousands of look out tower staff with humans, but is extremely practical to put up lights, camera systems and monitor them twenty four, seven with powerful AI combined with human intelligence to deliver the best of both worlds.

Portland general electric has become one of panel A S top customers. The utility company has deployed a dozens of cameras, saying in some instances it's helped fire departments respond to fires as much as six hours faster.

Notifying the fire agencies was all that happens in real time. You get such Better collaboration on helping minimize the impact the fires, not just from people in property perspective. Grid itself.

microsoft AI for good lap has also been developing A I to detect fires and respond in their aftermath in the wake of last year's mali wildfires, the labs A I was able to analyze satellite imagery to notify the red cross about local damage to best target response efforts.

This type of information is very critical for them. Some of these maps would have taken them weeks to to do without these tools. And now you can get information in.

there are plenty of headwinds and increase in the tonal number of fires because of climate change, and the country is struggling with a firefighter shortage. Plus, these tools can't necessarily prevent fires from starting, but A I can dramatically mitigate fires damage, hopefully easing the burden on first responders. For worldwide exchange. I'm really a borstein coming .

up your world wide .

exchange with the head of one of the largest hospital management companies here in the U. S. Thinks about R, F, K, junior in the future of health care, with him possibly in charge. Be right back after this break today with.

Will quickly become energy independent and we will frack.

frack, frack. And we will drill, baby, drill with Better. And I will cut twelve .

months from january twenty that the day we take office, I will cut your energy Prices by fifty five, eight percent, fifty pressure .

within one year. That was then candidate Donald trump on the campaign trail last month, lang out the energy agenda, if he returned to the White house, now present and elect tapping oil exact press right to make that vision now a reality, naming him for his pic as the secretary of the department of energy. Welcome back to world I exchange.

I am Frank HEllen coming up this half. Now we have BBC a lima rop. She's going to lay out with the right LED energy department could mean for the us.

Energy landscape. But first, to kick off this up, and I we're going to go to U. S. Stock futures taking a look right now. But if a makes picture, let's start with a downer here off of its los of the earlier, but still looks like you would open about one hundred and twenty point slower than as asking me the sp, still for actually now just two points moving very slightly than as I would be to watch, moving higher up just about eight third, eight percent.

And on that, no, we going to look at the biggest gains on the as deck one hundred right there near the top, the list that's tesla again, a bloomberg k report talking about sing a regulation helping in that stock this morning and see those shares are up more than eight percent, actually moving higher since we last talked about IT super micro in the lead up over ten percent. Follow by moderna P. D, D.

holdings. This is chinese equity. Also warned brothers discovery right here. The bottom of list, up one in three courses of a percent.

Some reports that inside the MBA could be licensed to e. sp. And help in that stock out in the pre market.

We're also look at the bond market this morning. Not a lot of movement there from friday. The benched market, four point four six, just move in a few basics points from the levels we saw on friday.

Similar story for the long bond. Follow the CPI and the ppi reports. And we want to take a look at oil on the back of present.

Like trumps energy secretary pic. We're going to have much more than that in the moment. But first looking at oil this morning, we're seeing wti, the U.

S. Benchmark moving about three quarters of percent higher in the premarket, still below seventy books a barrel, that's a key sentiment level. Also break rude below seventy five bucks a barrel right now, trading about seven one sixty five.

Burberry also, uh, just over three of a percent, nearly one percent in the premarket off the back of that news. And we can look a bit coin I still higher. We seen sense the election right now, still above ninety thousand right now, about ninety one thousand nine hundred and thirty.

You see it's up two and about a thirty of a percent right now. Sense present elect trump was elected. You can see bitcoin up over thirty. Huge surge that has continued since the election, right? That is your morning money set up.

Now we want to turn our attention back over to the trump transition and the options that the president elect is considering to lead the treasury department. They are reportedly expanding reports this weekends, suggesting the president like trump is that IT former federal serve governor Kevin wars and Apollo global cofounder mark growing to that list of candidates. Republican senator bill hagi is also allegedly in the running genter fits to al C E O and trump's ansip chair howlett and hedge fund mogul scope percent also be considered as top candidates for the job.

Elon musk wang in on the debate, writing in part on x. That percent is a business as usual choice, whereas a luttach will, in actually an act change, at least in the opinion of the on mosque. Meanwhile, president like trump naming liberty energy foundering and CEO Chris right as his pic for the energy secretary, speaking with our Daniel py at the cop twenty nine climate summer current energy secretary Jennifer grand home, sharing some strong words for the incoming administration.

IT would be political male practice to undo those opportunities when people are just now getting hired. Four hundred thousand people have been hired so far just because of these two bills. Today is the third anniversary of the bay partisan infrastructure law, and he has created an enormous difference across the country.

Ayman jaw's joins us now with more and trumps energy secretary pig, aye. Good morning. Good to see you yet.

Good morning to you, fran. Chris White is the CEO of denver based liberty energy, and he's a big pond of fracking. Such a big proponent that back in twenty nineteen, he went on camera with a group of employees to drink what liberties energy said, but cnbc can confirm, was fracking fluid. The demonstration by liberty was intended to prove fracking fluid is safe for humans. If IT gets in the ground water.

the longer lives and healthier lives of billions s of people around the world from oil and gas.

There you see the team they are saying to longer lives and healthier lives for billions of people from oil and gas. Now Donald trump has made fracking a key issue on the campaign trail. In pensylvania particular, he tried to portray communal Harris as an opponent of the oil producing process.

Now right will be in a position to ensure that fracking continues to play a key role as part of the U. S. Energy supply. Right also serves on the board of oko, a nuclear power start up backed by OpenAI CEO sam altman, trump s said right will now serve, uh, also on a new council of national energy, which will be LED by doug burgin, who is trump s choice for secretary of the interior.

Now, Frank, on the campaign trailers you played in that clip earlier, trump promised voters that he would cut energy Prices in half in his first year in office. Not clear here what steps you can take that would force oil companies to put so much new product on the market that Prices collapsed to that level. But that will be one of the chAllenges here for this new secretary energy effect of you.

So I think one of the big questions for you aim and um he asked to be confirmed by the senate. How's that process expected to play out? Are you hearing any senator speak up about the process?

Well, mean, one of the issues that we're looking at with all of these nominees, Frank, because the question of whether not we're going to see recess appointments, that's a process that the president could use a to sort of go around the senate. So there's some question about whether that we will see a batch of batch of appointments here that go through the recess process don't actually go through a the senate confirmation vote.

And that kind of up ends the typical calculus on the types of candidates that you can get approved in the senate. Typically, you d want some more establishment candidates, Frankly, than down. Thump is selected for a lot of these position so far, uh, but if you don't have to deal with the senate, maybe that's a way to get all of your nominees confirmed and in position for at least two years and that gives them running room through the mid term elections. We're see what happens .

are a lot more to come when IT comes to this story. Our aim in java, the very latest ayant great to see you for more and present like trumps energy secretary pick the spring in hillmen rhead of global commodity strategy at R B C capital markets and a cnbc contributor holie. A good morning. Good morning.

Frank. So let just play the know .

the hypothetical game. We if you would mind, I say Chris, right does get confirmed or there's some other way around the center confirmation process, whether it's a research pointman, whatever is as if he is the secretary of energy, what does that mean for U. S. Energy policy? And maybe for investors, most importantly, what does that mean for Prices, specifically for oil?

I mean, certainly that means a more permissive permanent environment. So we would expect going forward, less regulation is a permit. When we think about Allen giga, he's seen as a pioneer of the shale gas revolution. You know, we could expect to see that Allen g export permit pause, that president vide and introduced.

That would be wondering the first items I think that would get repealed, questions about what would happen with unspent I R A funds, questions about you know, he's not big fan of plan of subsides are expect those who potentially be rolled back. But I think the interesting question is now what is the path of reducing energy Prices? Five, fifty percent.

And you had CEO like exon staring woods on this network, essentially saying that it's not the regulator's environment that is coding back production. IT is know what shareholders want. Shareholders want capital discipline. So the question is, are we we're going to see a change in the boardrooms that permit more drilling? That's going to be, I think, the interesting question to the path of lower energy Prices.

right? In addition to the possible selection of Chris ride as the secretary of energy, there's lot of other issues for the trump administration coming in. I know one year you're looking at is the us. Iran relationship with the incoming administration. What could that potentially mean for investors?

Well, this is the really interesting question. Again, the past to fifty percent lower energy Prices, what does that mean for iran? Because they have signal, the incoming prompt in the signal that maximum pressure sanctions are back on the table. And iran, in oil exports under president I didn't have climbed to a five, mainly because of a less stringent enforcement of the existing sanctions.

And so the question is, if you have these sanctions rigorously enforce, do you see a significant drop in iranian oil exports? Now what is different now than in two thousand is that they basically all those exports are going to china. So what measures will the incoming administration bring in to basically incentivize china and not take those imports? Now there is a new legislation that the house is on, the senate of shift act, which would penalised foreign ts that take iranian barrow. Is that employee that change calculus of china when IT comes iranian oil imports, but again, less iranian oil on the market, you're gonna to make that up somewhere else if you want lower energy business.

So I want to come full circle with our demophoon. A earlier, he talked to the current administration official, geneva grand home share, basically saying that if the tram ministration just repeal the inflation reduction act, I will be basically shooting ourselves in the foot when IT comes to our energy policy, and also, of course, clean energy, which review on the idea that the inflation reduction that could be repealed, how does the impact the oil market? Other energy markets are no relationship with other countries, except just give us a kind of a wide ranging opinion on this one.

The position I don't ever grown home essentially saying was that a number of these projects are in red states. And so the political caucus of an incoming administration, when they look at where these projects are sensual, say, OK, let's keep these projects in place. What I think is the interesting question is going to be though there are significant to unspent I R A funds. And I think that is what is up and play initially is going to be, do you just simply redeploy those funds to other projects that are more along with their political agenda? So I think that's in the initial question is what happens the unspent I R A funds?

A lot of questions. Lima rop, always good to see you. Thank you very much.

Thank you for having way our .

coming up in a royd exchange pressure IT wins foreign dia had of his highly anticipate and earnings report this week details on those new troubles for one of its newest market products and what I exchange return. Second, look at the video share as are down two and half percent of the premarketing stay. Back the world exchange is on a quick market flash on nava can see here shares under pressure down just about two and a half percent.

The information reporting and as new black world chips are overheating when they're connecting together in servers as leading some customers to worry they won't have enough time to get their systems up and running. And the statement to readers and video says the engineering iterations are Normal and expected. Quote, quote, again, the video shares down just about two and half percent, aren't turning out to the dollar, rapid rise more than two half percent since the election bsp in kind of shrug off by the market.

But now some traders i'm speaking where they're raising some flags about what IT could mean for q four and twenty twenty five earnings back in twenty twenty two, a fast prizing dollar LED to a number of large multinationals warning of the dollar risk of their earnings. Those names included microsoft, Johnson and Johnson and nast laughter, among other high profile companies. Today, if you take a look at the chart, the dollar index is actually higher than IT was when microsoft issued its currency warning back in june of twenty two.

I spoken to a number of traders and strategies who are looking at q four earnings and beyond to consider the possible impact IT should give investors in multi national companies, which by definition is the S M P five hundred. Um some pause and some concern, but it's very, very difficult to model. Um and I think right now, for Better or worse, a lot of investors or are just sort of saying, you know will worry about IT when it's time to worry about IT.

But in my mind, that means IT is time to start at least thinking about IT. Well, then there's the Young Carry trade. So the end Spiked on friday and expectations of hawkish commentary from the bank of japan governor uta.

He actually spoke today, but say a bit, begg on the timing of the B O J S next great hike trader, say a possible hike, along with the rising dollar that could lead to a continued unwind that Carry trade work. Traders barrow yana a low interest rate and reinvest in higher eating assets in other markets. The problem that the yanky trade investor faces now is the possibility that they may raise rates with the bank of japan next month.

So they're selling their tag, they're selling their dollars and their pain back their yen before a higher interest street would impact the performance of that trade. So the yan is often used to buy the asat one hundred traders say that could continue to put pressure on tech. Um again, look at the next act.

One hundred over the last week done about two and half percent is high in the futures today. However, coming up in a world that exchange, we have the one that every investor has to hear today in the stock pic that every investor needs to know, plus helping in amErica under R, F, paid june or the c of one of the largest U. S.

Hospital managing companies. He here to wait in on what an r fk LED. Health department could mean for his company. And how does business will we write back here with. Walk back to or what exchange the nomination of rf k as the next secretary of health is facing increasing backlash is present like trump announcement last week that includes from within the republican party, at least according to political, which says the push back against Kennedy and a number of his views could own health care, could jeopardize his confirmation.

If he is confirmed, Candy will be test to implement many the trump health agents, including care access through market competition, deregulation and reversing binary policies, as well as the future of the affordable health care act for much more. In this spring, a mark Miller, president, CEO of universal health services, one of the largest hospital management companies in the us. market. morning. Thank you for joining us. Morning.

Frank. Good to see again are some mark.

We are Lucy to enough to talk to you before the election. You basically told us some periphrase, and you've able to work with any incoming administration. Does IT really matter who's in the White house.

There's the potential selection of r. fk. As the secretary of health human services. Does that change that scans at all?

I don't think so. I mean, we're obviously aware of everything that's been reported in the news. We ll see what happens with the confirmation hearings, but most of what he's discussed have to do with things outside of provider services.

So our business has been very strong this year. We continue to expect you to remain that way. Demand for our services uh is high um and people are choosing to come to to our hospital. So we don't think anything that would happen in H H S would necessarily affect that in the in the .

upcoming years, right? So mark, I do have to say and do not an analyst. You're not a stock in as by any means, but i'm looking at your stocks. Ince, the election is falling about four percent. The rest of the health sector is alone about three and a half percent. Why do you think investors and I know this is in your expertise, but why do you think investors think that your stock and health care sector is could potentially be hurt by this incoming administration? What are the policies that you think people are concerned about?

Yeah, I think there's been an overreaction. I think that there has been some premise that the health insures might do Better under this new administration, then the providers would um we don't necessarily scribe to that. I think I think that like I said earlier, we're in a very good position.

We've had strong um factors as far as demand. We expect that to continue. Our Operators are not a terrific job this past year in a pivoting as the market is pivoted.

And so we think that, uh, we have a lot of upside going for night. So I just think this is an overreaction to uh, a switch from the democrats to the republicans. Maybe some historical thoughts on that, but we're really not yeah.

by the way, important that you are. Shares are up about one percent. The premarket right now. I want to turn back to one possibility under r fk land department of healthy human services, the idea of the affordable health care act, I could be repeated or changed or you know, I guess, lessons in some way. How would that potentially impact your business?

I mean, the premise of the question, certainly something that's out there people been talking about, we we really don't believe this is something to worry about. We don't think that um a republic and lets senate and house um is interested in doing that right now. So while there are certainly issues and people are talking a lot about the H H S possible h just pick mr.

Kitty. We don't think that they're ggt na have the the the will um where the desire really to uh go after A C A right now. There are other priorities for the administration that they've told us. We've obviously been in communication with a lot of folks in washington, so we just don't think this is a primary focus for that.

I think a question on the other side of the coin here, mark, the idea of deregulation, some of the priorities of the incoming administration are near the tail winds for your business.

I think so I mean, I think as the administration comes into work to improve the business climate uh and obviously the economy overall, that can only um serve to help us as as well as other industries, you know, along with healthcare, but anything that they can do to ease regulation, making easier for businesses to work in in in the future climate would help us, and we're excited about that possibility. Mark Miller.

I see A U. H. S. Great to have you here. Thank you again for joining us. Really appreciate IT.

Appreciate IT coming up here.

What what exchange more in the trump trade in some potential big stock winners, including one ero space play the higher next guest way or take a look at this chart, this stock a since the election doubling year today, we're going to reveal IT coming up back to the break.

And if you haven't already to follow our pocket to in this world wide exchange, check us out on apple, spotify or other power stacks much more more wide to exchange coming up right up to this walk back to work life exchange. She's with a watch this week around to tell in the earning season, but which we have a number of big names reporting this week that includes walmart, target lows and invidia may be the highlight of this earning season. Then on the data front, we get housing starts, existing home sales and flat manufacturing and services.

PMI, turning back to the mark is looking to hit a bit of a reset. But and here the major average is coming off a top performance last week at the S, M. P.

And the asx suffered in their worst weeks since early september. Futures right now, a bit mixed without off of its loser burlier, but still looks like I would open up almost one hundred points lower, the S M. P fractions higher than asic, doing the best out of all of them, up over thirty percent.

Let's now bringing in Kevin moon, president in cio of hennion and walsh asset management. Kevin, good morning. Great at your on board. When we start with your word the day, how do you see today shaping up after a bit of a rough week last week?

So my word of the day is transition, not just as IT relates to the election, but also in terms of the interest rate environment as we transition from higher interest rates to lower interest rates over the next two years. The other area that's transitioning, of course, is the stock market raly beyond the max seven now into those non magnificent four hundred and ninety three other stocks.

As we know, Frank, last year, those max seven stocks account for sixty two percent of the total of the return of the us. And p five hundred through the first half of this year, still fifty nine percent. But here's the good news.

In the third quarter of this year, the only account for nine percent of the total of return of the stock market. And that's good. That's healthy. The continuation of this board market run.

you know this week, it's all about in via or not all about, I don't want to over exaggerate, but when I said that might be the highlight of the week, you do not as your head and affirmation. A lot of people look in ahead to the video. I want to ask about something when that comes to seven in all multi nationals, yes, the rising dollar dollar about two and half cents this election day.

How do you view that rising the dollar? Does that concern you at all? And when IT comes to q four earnings.

twenty twenty five earnings, there's a lot of things that concern me going forward about the potential for earnings growth from here. Fortunately, what we saw in q three about the earnings growth, right, blended over around five point three percent, the fifth consecutive quarter of year over year earnings growth. But obviously, a strong dollars going to away on multination companies and with respective in video, that's why I was not in my head. I think the video is going to remind investors once again that the AI revolution is a alive and well this week.

Lot of companies are you say, in beaten rays or just beat .

how much longer can they beat analyst expectations? But I think they are going to show continued strong demand for the blackboard chip. And then we know in twenty six and twenty seven and their coming out with a robot chip video is not resting.

I went into with a couple topics very quickly, though I still want to get to your pic. Investing in china after she's an ping gave the incoming administration of some advice to make quote, quote, wise choices. Yes.

i'm very dubious about making investments into china's a portal new manager right now. I see Better opportunities, quite Frankly, in the us, in other international developed markets. I like building a globally diverse portfolio, but china is not part of that mix for me right now.

Energy investing with the idea that Chris, right may be the secretary.

the department of energy, yeah, I think energy get to look into the multi national utilities that supply electricity, that supply natural gas and also nuclear energy. We need a multi pronged solution to these tremendous energy needs that we have in our country, including now the AI revolution and data centers.

Want to get to your pic. What is your pic for us today in life?

So I think you have to look at the error space and the fense sector. Two names. I like that one one loggie Morgan. But how about how met arrow space there? An ancelles benefactor of the increase in defence spending that I think is going to take place under trump at administration where there was momentum m already in the by administration. How much supplies the parts that help make lucky Martin, f thirty five fighter jet sore? Lucky Martin, of course, being the largest defence concern the world.

Whether we got to point out though, we're looking at lucky marn, we're looking at defense stocks, um big run ups this year. yes. Um in fact, you're pick helmet doubled so far, a lot of geology tensions. What's going to make IT move higher?

I think additional spending into the sera our country needs to where planisphere grade and modernized our military capabilities. There is going to be more defense spending into those areas, and that's going to allow these companies that continue to .

expand their you picked first to a lucky marden and helmet again, helmet doubling year day. That was our mystery chart. Come on.

IT is always good to see you. Thank you very much. Thank you.

As we closed them on the sixteen hour, here's a check, a few stories that we are checking at this hour, tracking at this hour. This began with shares of super micro spiking. Follow a barren report. The company hopes to simin a plan to I was remain on the as the I server maker has until to date to follow that plan that regain compliance with its financial reporting requirements. Or you could face a delisting shares, the super mico up double digits in the premarket, samsung closing up six percent in afghani today as investors cheery new seven buyback plan the company unveiled on friday.

Also, spirit airlines officially fine for bankrupcy, the budge airline, and says IT struck in agreement with bondholders to restructure its gets and raise money to help IT Operate doring bankrupcy that developing coming as a record number of americans are expected to travel over next week's thanksgiving day holiday that's going to do a for us and worlwide exchange. You ve been listening to c nbc's worldwide exchange. You can always catch us live weekdays at five m eater experiences the power of C N B C prose best deal of the year track your portfolio from every angle on one. Optimize the terms in.