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tv   Fast Money Halftime Report  CNBC  January 6, 2016 12:00pm-1:01pm EST

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faired the worst early on in the year, but we know the nasdaq was the only major average to he wanted up positive at the end of is a. >> before we go we want to congratulate one of skauk alley's best and brooits. our producer david who just got engaged for his partner james robinson. d-man, congrats to both of you. that's it for us here. let's get back to headquarters. scott whopner and the half. >> thanks so much. welcome to the halftime show. let's meet our starting lineup for today. jim leventhal is here. for the full hour is mr. wonderful, kevin o'leary, and also here independent macrostrategist paul richards. the breakdown in the stock means to your money from one of the few analysts who actually called the selloff in those shares. the north korea question, the urasia group on what the u.s. should do about that country's h-bomb test. we begin with, of course, the
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markets and whether it's that disappointing pmi number in china overnight or that north korean news. investors are in a sell first mood yet again today. stocks dropping right from the get go. remaining under pressure. you see now the dow is down some 200 points. 1.25%. each of the major averages under significant pressure today. dr. jay, i go to you first. >> i mean, people are making a big deal about north korea and the impact that ago on the market. >> the nuclears test, stooefb just tweeted out a great chart about it. people should take a look and see what the reaction has been after north korea has tested nukes. nonetheless, people did -- perhaps china and what's more interesting to me, scott, is
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earnings. the earnings season just about promised. that is far more of a driver than a one day event like we're seeing right here. in other words, fed and the north korea both full of bluster. not going to matter. trok at the 20-year -- or the 30-year rates. take a look at ten-year rates. >> kevin o'leary, you are a buyer. >> i fwrae. north korea is in -- everybody is throwing sanctions on forever. i hate to say this, but they don't really matter other than they give you the opportunity to enter big names that get volatile when they do this test. >> we've seen this movie before. >> this year just screaming out for attention. this is a child that's starving to death. it's really tragic it's happening to its people, but when it does -- while it -- you can get big names, large cap names selling off 3% to 5%, and if you go back historically, 90 days later, well rewarded for doing it. you have to hold your notices.
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>> what kind of names are you buying? are you buying names that are specific to the european and asian markets more so than here in the united states? >> look, i'm a rule-based buyer. i said -- this case it's etf company. today we loaded up on samsung, toyota, west farmers. added more today. these are large asian names. they're not necessarily hong kong. they're australian. could be singapore. the point is the whole region got really kicked yesterday. the only difference this year is i'm going in unhedged. i am going in naked. that means the american dollar is peaked out. >> steve weiss. >> i agree that some other regions are as attractive as the u.s. we've increased our position in europe. we were about 25% at the end of the year. as of january 1, we're now about 3 a5% in europe.
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>> our managers all did well despite the euro stock 50 auto being down 6.7%. the reason is they're not playing the big names. they derisk for a chinese standpoint as much as they can. they're in the -- you are seeing real growth there. last weekend a bunch of european entertainers came out, and they were pretty much all positive. for the u.s. we're focused internally. we don't want to play big multi-nationals because to me china is the biggest concern. >> a devalued yuan. i'm worried about china. i think it's just a house of cards. one more, scott, because i know you love these factoids. >> i do. i do. >> their debt load is more right now than their industrial profits, and their debt actually exceeds mexico's entire gdp. >> i want to stay on sort of what -- how u.s. investors
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should be reacting to what is taking place in china. a note from you caught my attention a couple of days ago when the manufacturing pmi came out. you said don't sell risk based on that number. the services pmi is more important. that disappointed. >> it disappoint. fortunately it was about 50. >> china becomes the real focus. i had two speculators call me, and they're loading up on the short side. investors like these guys are saying i like this dip. someone is going to win this game. i actually -- the fact that i don't want to upset my colleagues here, but here they're going to be right. we've seen this movie before. it's the first week of the year. toipt see -- if that number comes in at 200, we know the u.s. order is fine. fisher is telling us it's fine,
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and then i think the european data will equally back that up. >> you think the longer betting people are going to be right? >> i do agree, but i have a concern here. the wall of worry is forming here for all the things that we've talked about, including north korea, which is going to be a short-term blip. the problem is the stock market doesn't seem to be climbing the wall of worry. i agree i do think companies are doing really quite well. >> you are looking for some sign of life. some sign that the stock market can overcome this wall of worry. i do think it's going to happen, but the longer it takes, the more concerned i get. >> it indicates besides laub, there isn't that much driving this economy. >> proof is in the pugged, too. if you look at the date wra from our partners at kenshow, it does show you that when you have this
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kind of unrest or concern about what's taking place in north korea whether from gold, oil, high yield, after that fact, the market does sent to brush it off. that's what this -- >> the more we'll ask our managers to increase their net long position. right now they're a little lower. about 40% or so. i would like to see them up 50%. markets don't go up unless there's something to worry about. when they do start going up, because of euphoria, that's when you want to run and hide. >> most expectations are that dividend growth is going to slow to single digits this we're in the united states. is that one of the reasons why you find attractiveness elsewhere? >> i look at overall pe's first, and right now i think what's going to happen this year.
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>> it's nothing. it's flat. had you mined for the growing dividends last year, you got 3.2% expert juice. 320 basis points that nobody else got. i love dividends, and di denned i trust. in cash i believe. i think that's going to be the same issue. i have less fall you'll have more returns. stick with dividends. you don't have to just own utilities. lots of companies have shareholders like me howling at the moon saying give me return of capital. heats what i want.
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zou tell us about that. >> exactly, scott. let me just go through what the guys were just saying. fisher agrees that fujdzly the u.s. economy is okay. hooin is an issue, which is uncertainty. it won't derail the fed. if the weakness spreads, it's something worth watching, as was north korea. he thinks the u.s. is doing just fine. he agree with o'leary on the issue of the dollar. the dollar cannot fall forever. he is with the stabilization in the dollar in year, and he agreed with me when i said, you know whashg the sep, the fed's own forecast calls for four rate hikes this year. is that your view, i asked him. here's what he said. >> those numbers are in the ballpark.
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>> otherwise, we could meet in january and close down shop until a year later. we have to react to incoming events, and we will react to them. >> we got some things that happened today, guys. if you take a look at our cnbc rapid update calculated by moody's.com, which is the tracking of growth. we got the trade deficit numbers in today, and we're tracking down again. now at 1.4%. a really wide range of economists for the past quarter. the fourth quarter there. you can see the high end 12.3. morgan stanley, 0.4. goldman sachs at 1.7%. that offsets some of the weakness we've had. 257,000 jobs announced by adp for the private sector. we'll see if that number comes in strong. that's certainly something that's going to propel the fed. scott, i had to guess, i think the fed would give pause in january and if the economy can gather some steam and these tracking numbers look more towards 2% on the first quarter,
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that the fed could go again in march. >> the interview everyone is talking about today. steve liesman, thanks so much. steve live for us down in d.c. see you back at hq. thank you for joining us. much mosh with the gang. how low can apple go. >> virtually reality headset kicking off just an hour ago. can you get your hands on one? that is the question. we're going to ask that of the ceo live from the consumer electronics show. and drowning in oil. brent crude now at an 11-year low. energy stocks plunging yet again. how to trade that. you're watching cnbc first in business worldwide.
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>> wir back. the rocky road for apple continues thus far in 2016. that stock falling deeper into correction territory. is the stock a buy now, or does it have further to fall? we have two bulls on the desk, and our next guest has been consistently bearish on this name. ian is the co-head of equities joining us live from l.a. welcome back where. >> thanks for having me, scott. >> you have been pretty much dead on in this move. how low does apple go, or is this it? >> i think it takes out that flash crash low in 1992. i've been telling people tactically to cover one-third of the short here. you can put it out a little higher if it trades back up. strategically i think it's a
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core short. >> what's the deal? is it fundamentally an issue or technically broken or a little bit of both? >> i think it's more fundamental than technical. i tend not to look at technicals too much. fundamentally i think you have lapped peak margins, peak earnings, peak refr new growth and probably peak iphone shipments, and you still have a situation where china is a big unknown and getting worse as we saw this morning. >> you take out the cash? it's cheaper than, what, cisco oracle, microsoft, ibm. is it a question whether it's a value stock or not? >> i think that's exactly what we're arguing over. ultimately a lot of that cash is overseas to begin with, and second, you've got based on analyst estimates, which i would argue are too high, you have
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high single digit earnings growth and revenue growth for the next couple of years. is nine or ten times earning that cheap for a stock like that? >> i agree sometimes things can look leak a value trap, and maybe that's what you are saying about apple. the thing that has me enthusiastic here is the amount of cash that's both on the balance sheet, and i do understand that's overseas, but the amount of cash that it generates. i think scott's point is that if you strip out the net cash, net of debt, this thing trading at nine times earnings, well, that cash is real. that's almost about 30% of the market cap. isn't there a point at which the cash just becomes too attractive to ignore? >> yeah, i think there is. that point is probably around $90 or $85. >> it's definitely a great -- >> it should be about 40% then. >> that's okay. it's a tech stock that was a growth stock that still has a market cap of $600 billion. it's not like you're buying a stock that ultimately has all this growth in front of it.
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you are buying a stock that where the best days are over. it's a tech stock. you know, value stocks and tech do not work in my experience. >> you do have a pretty good battle developing over this name. the app store had a holiday season for the record books, apple says. two weeks he believeding january 3rd. customers spent over $1.1 billion on apps and in app purchases. are people just getting too haywire negative on a name like apple? >> i would say this. you still have 85% of the analysts who cover the stock have a buy on it. now, they've cut their estimates. they've cut their iphone estimates. at the end of the day everybody is still loving the story and thinks it's a stock you have to own. that's actually still pretty built in, and it's the same thing i'm hearing at 100. some bulls are on every day saying i can't take it anymore.
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i'm actually downgrading the stock. then i think you have an opportunity to get more bullish on it. >> good luck with that. >> exactly. >> we'll see you soon. >> thanks, scott. >> ian over at wedbush. >> i tripped this name on a rule base last september on this cash issue because the company is flush with cash. unfortunately, it's 40% away from you overseas. >> when i started to see that happen, that's deterioration even though it sounds per volunteers a balance sheet, and we exited the name in september and loaded up that position in microsoft. >> we talked about it. it occurred that week. you don't always get it right, but this one is really worth it for us because microsoft has outperformed dramatically. apple's problem, i think from the fundamental point of view, is i love a name with this much cash.
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it will have to issue debt, which will make its balance sheet look worse and worse over time. then the other thing which is a ces kind of situation is i talked to guys in this name, and they're starting to talk about apple as a consumer electronics company. you don't want to be there. that's when you really get pe compression. that's when you start talking about trading at seven times. i'll be back in this name at 85, 82, 83 because it's not going to -- i got to wait for that, and i think we're going to get there. i'm sorry. >> i think there's another issue here, and that is if you take a look at that recent product announcement, what they've done, going back to apple radio, apple music, it's really not done anything. it's not set the world on fire.
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>> it's been disappointing on every, every -- >> what did you think? it was going to sell as many of the iphone? >> that wasn't my expectation. it wasn't that it will continue on the market. >> it's not going to be nearly as high as most other apple products. >>. >> i can't get active pulse. i can't -- it's a pain in the neck. i wouldn't use it. >> i liking to back to this whole cash issue. you're right. this is what he was saying. the cash is overseas can't be repatriated without being tied. good word for it, by the way. >> it's unfair really. >> it is what it is. >> they're taking to task that issue. >> here's the point i really want to make. i think that this gets the wrong spin the whole debt issuance. really what they're doing, you could say that they're issuing debt because they can't access the cash overseas. what i look at it as is they're issuing debt at 2% so they can buy back their shares, which are yielding on an earnings basis around 11%. that's actually smart. i like that. do that all day long. trick the share count.
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i believe the last one standing. >> is apple going to be closer to 75 or closer to 125? >> i'll take 125, but with one cavat. this close to 100, and you know i'm not a technical trader. >> close to 100. >> it does want to suck down. >> it's going to be several hundred. it's going to be near 85, and then it's going to have guys like me looking at it. by the way, who gets the financial engineering these days? nobody. that's the problem. i agree with your strategy. the market does not reward you for that. >> we've taken our -- >> when they came to dif depped share buyback, it didn't help the stock. that's not what people own their stock for. >> more bad news for the energy bulls. gasoline prices surge. we'll head to the futures pits for the trade. here's a look at some energy names hitting 52-week lows today. eog resources, marathon, murphy, and hess. back right after this.
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good afternoon. initially that draw in crude oil
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inventories, a lot of the traders thought it would be bullish, and we've had a negative reaction. anthony, break that down for viewers today. really understand what's happening in the crude trade here. >> yeah. last night when that number did come out, we did actually show a little positive numbers in crude oil. once north korea tested that weapon, that was it. the markets sold off. it's valuing equities right now, and you pointed out that gas supply, they took crude oil and turned it into gasoline, and nobody bought it. you saw a five million draw in crude oil and ten billion at gasoline sfli. no one is use this right now. >> a lot of reasons for crude to sell off right now, including worries about china as well. what's going to happen to the crude oil trade here? a lot of the traders i speak to are talking about that two handle again. >> yeah. they are, jackie, and certainly, you know, anthony talks about the demand where they turn the gas on and no one really bought it, and so you see that weakness. you see any commodity based countries like brazil, like
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canada, australia. their currencies are weak, and then you get the trade data from china that makes matters worse that shows globaling demand is sort of weak here for oil, and i think that's why you are seeing oil trade at the down side. you are seeing volatility tick up in oil. we're making lower highs, higher lows, that is new york the oil volatility index. $30 oil like i talked about earlier in 2016 is certainly a possibility. maybe coming sooner rather than later. >> okay. we'll be watching, swre. thank you so much. >> we'll be there. thank you so much. >> how do you view energy stocks here? >> i've been wrong on this. last time i said he was going to -- then invest in canadian energy plays. sun core is a good example. very interesting play going on there. they're acquiring a competitor kyled canadian oil sands. i was hoping to get a piece of that.
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>> you look historically. it's still correlated to the commodities. it's like leverage. it goes up, and the canadian dollar goes up. that's why i -- not working yet. i'm still going to ask the position. here's what i'm thinking. we don't talk about this. let's assume oil goes to $8. my goodness, if we have an economy with zero costs, i want to be there. so i'm thinking to myself, where don't we ever think of the up side of this? you have that for energy, guys. good for everybody else. anybody have that answer? >> i can't disagree. if your input costs are going down, you have more money in your pocket, then you'll spend it, right? that's going to drive the economy. if we can get that done and be able to repatriate dollars that
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are overseas and put it into the economy, it's set. >> it's an election. >> i'm busy. >> north korea adding to market jitters today. the country claims it tested ehud genbomb. we're separating fact from fiction and what it means to your portfolio coming up. and next, facebook's big virtual reality bet. the ceo of occulus joins us with his outlook as the company's headsets go on sale today. here at td ameritrade, they work hard. wow, that was random. random? no. it's all about understanding patterns. like the mail guy at 3:12pm every day or jerry getting dumped every third tuesday. jerry: every third tuesday. we have pattern recognition technology on any chart plus over 300 customizable studies to help you anticipate potential price movement. there's no way to predict that. td ameritrade.
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hello. i'm sue her air wra. here is your cnbc news update for this hour. >> iranian meeting his counterpart in tehran. afterwards he told the news conference that saudi arabia's actions were provoking tensions in the region. and were from a position of weakness. washington nationals ryan zimmerman and philadelphia phillies ryan howard have filed defamiliaration lawsuits against al jazeera. the two were linked to allegedly using performance enhancing drugs during an undercover report by al jazeera late last
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month. >> after tar sold $after it was released in december of 2009. at a starbucks barista out of a job after a confrontation with a customer goes viral. it shows the customer driving up to a window. sh accused the barista of stealing her credit card information and using it at a nearby grocery store. the company fired the worker and issued an apology. >> that's a great endorsement. i'll go see it. >> sue, thanks. let's shift gears to the tech sector now. the long awaited virtual reality head sed seth from facebook occulus is finally going on sale today. john fort is live at the
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consumer electronics show with that company's ceo. in a first on cnbc interview. take it away, john. >> thanks, scott. brandon, ceo of occulus. thanks for joining us. okay. so how many of these can you make? the preorders have opened up. people are trying to snap them up fast. thousands? hundreds of thousands? >> many tens of thousands into the hundreds of thousands. no problem this year. we're going to be really ramping up production. >> it's really super imersive and a comfortable experience. you can use it for an extended period of time, and it comes bundled with everything you see here. it comes with an xbox one controller, a sensor that tracks the position. it allows you to navigate and
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kind of go through the experiences in a very simple and intuitive way. if you are not a gamer. for nongamers that don't know the xbox one game pack, they can use this, and it's p very simple and easy to use. >> this is a high-end pc that will be needed to make this work. you'll sell a bundle for just shy of $1,500 that includes this and the pc that has the specs you'll need to use it. you do need a pc to connect this to. it doesn't come with a pc. >> the oculus rift is $599 as one box, one box unit. without the pc. and then you do need a pc with a fairly higher end gaming gpu, graphics processor in it, and those pc's, typically, start around $1,000. they may go up to 1,500, $2,000. we have a bundle with $599 headset plus the pc that meets our recommended specs starting at $1499 with our partners.
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there will be different categories. different levels of pc, if you want to spend more and get a higher end regular. all in, you can go out the door with a rift and a pc. >> now, gamers and geeks are going to get this off the bat. your average consumer might say why do i need this? >> i tried this after the latest version, and after a couple of minutes i was blown away, hooked. >> are you putting those relationships in place? are you going to do it yourself? this is something you have to see to believe, like you did. you're maybe a little skeptical before. you have heard of e.r. in the past. it hasn't really worked. now it does, and it works in an
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incredible way. you have to see it to really believe it, and we feel like once you see it, you're going to want it. getting it into retail, getting it into broad retail around the world is going to be very important to the success of vr and to the success of oculus and the rift, and we're working on that as we speak. we're going to be in retail starting in april. >> you have a question for becky? >> this is scott. i have one, and kevin o'leary has one. my first for brendan is can you speak at all to some of the reported website issues that you guys have been having today? are you still having problems with people trying to get their hands on these devices? >>. >> we've had an incredible amount of traffic hit our site. this is the most traffic we've ever had. a lot of people want to preorder the rift. we're working through all those issues now. we're still getting preorders as we speak. we're getting through those issues. it's because of a lot of traffic. we should be fine over the next few hours. >> but you are -- but you are still having some issues it sounds like. >> we have a lot of traffic
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coming through the site. we are working through those. we want to make sure that there's no fraud attempts on credit cards, things like that, and so, yeah, we're navigating those, but people are buying as fast as they can. >> i've got shark tank's kevin o'leary here with me, and he has a question for you as well. >> brendan, last year on "shark tank" we have an it rags of your product. it was actually a commercial version for military training inside a giant sphere. i got in it and put on the headset. i immediately got sick. i got motion sickness. the operator told me later there was a latency. what percentage of people are going to put on these glasses won't be able to deal with the motion sickness that i experienced? is that a problem for you? >> so that's been a problem that's plagued vr for decades, and it's something that we've really focused on addressing, especially with the consumer rift. i'm not sure if that exact experience. the developers can always make
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things incorrectly. they can always add too much latency and add a lot of loco motion and movement. if you do everything right and make comfortable experiences, you should be able to use the rift for an extended period of time. i'm very sensitive as well, and i have been able to use the rift for up to two and a half hours straight playing one of the games, lucky's hill, that we're bundling with the rift at launch. >> i'm wondering how soon we're going to be able to see commercial experiences outside of gaming that third party developers create on this? i feel like real estate is one great potential example. if you can give me a walk through of a dozen potential homes that i don't have to drive out to all of them, i can narrow it down ahead of time. maybe car interiors too. how soon will you be able to get this into the hands of those p kind of people so they can track experiences using vr? >> we're shipping a large number
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of developer kits. we've had almost nearly 200,000 developer kits that have gone out over the life of oculus. those aren't just all game developers. the majority are. we're focused on game development. that will be the majority of the predominant use of rift. at least the first generation. it's going to be gaming and entertainment. there's a broad enterprise use and professional use for virtual reality. like you said, there's architecture. there's automotive. i think you're going to see the rift throughout a lot of automotive show indications. different destinations will start featuring this. yeah, there's a huge range of applications. medical. >> i should have asked how long before you are able to support that? it's complicated, i guess, for a lot of these businesses to drive that themselves. at what point will you be able to drive that and how important is that to you? >> we're focussing on supporting all developers. the entire developer ecosystem. we want to make sure that thrives. there are thousands of
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developers. more are signing up every day. people are kind of -- they've been working in mobile and pc and console for a long time, and they're jumping over to vr as fast as it can. it's so exciting. it's a whole new category, industry. >> you're telling me we got to go. i would love to try this out. >> thanks so much. we do have another biggest from ces tomorrow. former twitter ceo dick costello will join us on the halftime show. >> north korea claims to have created an h bomb. as we head to break, we'll look at some of the names hitting a52-week lows today. they include hog, harley, nordstrom, american express, and carmax.
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at ally bank no branches equals great rates. it's a fact. kind of like ordering wine equals pretending to know wine. pinot noir, which means peanut of the night.
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coming up at the top of the hour on "power lunch" a new brick in wall street's wall of worry. north korea and its nuclear ambitions. how big a threat is it? we speak with a former ambassador who was head of the u.s. delegation of the six-party
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talks that were aimed at ending north korea's nuclear program. also, a slew of big exclusive interviews today. the ceos of underarmour and at&t mobility, and the ceos of marathon, pbs, and diamondback energy. so many ceos coming on the show, and of course, the latter ones will talk to us about where this he see oil prices going from here. plus, we have the release of the minutes of the latest fed meeting which could also add to the wild trading you're seeing at the moment. it's a huge show. back over to you. >> great stuff. see any about 15. global markets are in selloff mode again today. north korea claims to have successfully conducted its first h-bomb test. if confirmed, it would mark north korea's first nuclear test since 2013, and it would violate continuing u.n. sanctions. joining us with more is ian bremmer. the president of the urasia group. welcome back.
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>> the size of the explosion is about the same as the last test heave had, which implies probably not an h-bomb. no one going to believe it until they offer proof. they never offer proof. when i think is more relevant is it's going to be kim jong un's birthday, and they use large candles there. have you to have a celebration, and you are going to do it before the birth day because frequently these explosions fizzle, and if you get the first one wrong, you have to have time to get the second one right. i'm sure that president obama will say that in strong terms, and then we're going to forget all about it. >> the chinese have condemned it, of course. who has a larger role to play here in whatever solution diplomatic or otherwise takes place? china or the united states? >>. >> whooin e china is the only
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company with the ability to constrain the north koreans because they're providing the lion's share of north korea's aid, both food and energy, but even there the chinese have been very upset with a lot of north korean action over the past years, and i would say that their capables are more limited. to the extent the americans and chinese have talked fairly openly with each other, including the summit that obama and xi ping had. they're both frustrated. the russians, of course, recently met with kim jong un, and declared a year of friendship. probably not the best timing on that right now. i don't expect the russians are going to give sort of -- read the riot act to kim jong un. putin doesn't feel like using political capital that way. seriously. we've got clines all over the place calling. we've got the media calling, if the south koreans markets are down and -- this is a buying
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opportunity. this is not something that is going to lead to escalation with other countries. thankfully this is not the middle east. no one out there wants to really buy in and escalate against the north koreans for their one-off tests. >> i'm glad you went to the middle east. that's where i wanted to go before i let you run. saudi arabia and iran, the significance of it and what happens if those tensions grow worse? >> well, that's the real issue. the saudis pretty much everything that could be going wrong for them is. oil prices, of course, very low. their economy constrained. they've announced austerity measures. even reducing energy subsidies, which is unheard inform that country. there is a fight with the king's son that wants to become real fast before his dad dies, and he is really unpopular internally, and they're losing a lot of influence in their region as iran becomes more powerful. they chose to escalate this conflict weeks before the wraits and allies i want mremt the nuclear deal, which means the
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timing was bad. it means the allies in the west were going to be very upset with them, and they didn't care. it's because they're under a lot of pressure. when i look going forward as to what it is that legitimatizes the saudi regime, i don't find an awful lot. if they're not going to be writing the big checks they used to, that's dangerous. it's dangerous for them, and, of course, it makes it so much harder for anyone to try to make progress in dealing with the war in syria, with the expanding capabilities of isis in the region and more broadly and the proxy wars that the iranians and saudis have been fighting against each other now and will be fighting more intensely rsh. >> it seems to be the issue that's most on the mind of u.s. investors this week especially. we in the midst of a hard landing or not? >> i don't think we're going to see a hard landing in china. we'll see that the chinese will be writing outlandish size checks when nobody else is. both to stimulate their internal economy when they have a market
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downturn, and also to support international infrastructure. it's going to get a lot of countries aligned with them. also, as we see lots of volatility in the chinese markets. it's not going to bring xi engining ping down. it won't lead to major instability in china, but it is going to have palpitations on markets around the world as we saw in the united states on monday. that's -- we're just in the beginning of that china -- the chinese market is only getting bigger, and the impact of that volatility, of course, will therefore grow on western financial markets. >> appreciate the time. talk to you soon. >> ian bremmer. coming up, chipolte gets serve and a activist turns up the heat even more on yahoo. those moves and the trades are just ahead in the blitz. are you watching cnbc, first in business worldwide.
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it's time now for the trader blitz. four trades on four stocks making news. first up chipotle subpoenaed over the norovirus. >> stock hits a new low, $4.28. i thought this one could see significant upside around eventually that will be right, but it might be for much lower levels and certainly being subpoenaed is one of the reasons that it will go lower. >> weiss, val yaent has a new interim ceo. >> he's probably a better guy to run the cap interim basis than a pharma guy. i'd still avoid the stock.
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wouldn't go anywhere near it. >> name dropping, town dropping. do you want to drop some local restaurants. >> it's what i usually do in threes. >> yahoo! getting another letter from starboard, the activist sti firm saying significant changes are needed. >> this is more of the same. a lot of pillorying of marissa mayer, the spending on acquisitions and parties. i think at this point the momentum is headed towards her having to do something dramatic with her own career or breaking up the company. the fact that it's up today does mean to me at least somebody is giving credence that the starboard letter will gain some traction. >> kevin, auto nation, great sales. they were boosted though by big discounts. >> fantastic. i'd call for this being really a proxy of gdp growth. zero cost to capital for the last two years. the stock has had a fantastic result because of it. >> auto sales off the charts. >> i get all that. if you're going to put a
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position on now, this is not where i'd do it. i think you may get another couple rate hikes that will hurt in terms of the cost of capital. if we are all going to be in the sub-2% gdp growth, you will see it in car sales. >> you hear people talking about peak auto. >> if you were in this trade, you made a lot of money and now it's time to take a little off the table. >> coming up, the markets close in just over three hours and some final thoughts from kevin o'leary coming up next.
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. welcome back. kevin o'leary is just getting warmed up because tonight he's going to be on "mad money" 6:00 p.m. eastern with jim cramer. i can't wait for that. that is going to be fun. that is going to be fun. >> it's going to be a "shark tank" event. >> i want to show you shares of netflix. they are up 6% as we are on the air right now. reed hastings as we speak is speaking out at ces in las
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vegas. apparently investors liking what he has to say. among the things mr. hastings has told that audience out there in the fourth quarter people watched 12 billion hours of netflix. that is up 8.25 billion -- or up from 8.25 billion from one year ago. they have reached almost half of all u.s. households, 70 million homes globally. doc? >> judge, we 25utalked about it monday and said it seemed like a fool's errand to sell this thing just because the tax consequences. now look at it. right back almost to the exact level it sold off from thursday of last week, right around $114 or so. you incurred all that 60% tax, 55%, 60% tax and now the stock is right back and you can't buy it back because, of course, that's a wash sale rule. you would have broken the reason you sold it in -- don't get me started. >> what's your view? >> this is the amazon of streaming. it doesn't have to make money in
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international countries. it's a market share grab. the volatility is crazy. everywhere i go and every country in europe and canada, anywhere you go there's five competitors launching into this thing, and yet they're getting the benefit of the doubt that they're going to be the one that survives. this is going to be a viciously competitive space. oh, my goodness, and by the way, they don't pay a dividend in case anybody noticed. >> figured you'd mention that. lastly before rerwe run, ubs wi commentary i thought was interesting. says stocks will reach a top in the second quarter before falling as much as 30% later in the year or early 2017. more in the late stages of a bull market instead of being at the beginning of a new breakout? >> that was the technical analyst and last time they said that, they were dead wrong. i think the market is up another 30% from their last sky is falling call. >> jimmy? >> i don't know how you make a call on a bear market. something exogenous has to happen, something to send the u.s. into a recession to have that magnitude of decline.
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we have been building this wall of worry. we need to see the market climb it. it's not happening today, maybe tomorrow it will. >> they say the bull market will last until the end of the decade. it's been great having you here. have fun on "mad." thank you for watching, as well. "power lunch" begins now. thank you very much, scotty. this is "power lunch." i'm mandy drury along with tyler mathisen. >> it is a day of worry for investors and noninvestors alike. the dow showing big losses, more than 200 points, 214, 215 at this hour. nasdaq is off about 1% as well and the s&p did owe that, down 21, a little more than 1%. >> this after this woman in north korea told the world her country designated a hydrogen bomb. they are 450 times more powerful than the nagasaki bomb in japan. >> a short time later japan call

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